House Bill 9 has received much debate in the last couple House Education Committee meetings. The committee is locked in debate, with the last vote resulting in a 9-9 tie. The House bill re-structures the lottery revenue proceeds distribution formula to relying solely on the average daily membership (ADM). The bill differs from the current general statutes formula where only 65% of the revenues are distributed by ADM, while the remaining 35% is based on the county’s tax rate. The county tax rates percentage is calculated according to the state average tax rate. For counties to qualify for the funding based on tax rates, the rate must be equal to or exceed the state average. The controversy lies in the fact that some 60 school districts are poised to lose funds if the bill is passed, and funding is based only on ADM.
The Public School Forum has calculated the per-school district funding changes that the proposed House Bill will affect in today’s– April 13th – issue of their bi-weekly Friday Report. The report points out several discrepancies highlighted in the current formula with one example that Wake County and Mecklenburg County have comparable student populations, but under the current statute, Wake County receives only half ($9 million) the funds from the lottery revenues that Mecklenburg County does due to its low tax rate. Most of the counties that have less than the state average tax rate are located mainly west of I-77. Due to the mountain counties’ lower tax rates, the school districts receive less funding under the current formula. However, in some cases, if the county commissioners slightly raised the property tax rate, their school districts would qualify for the 35% of the allocation. The current statute seeks to establish some parity between the counties of different sizes and affluence.
The distribution formula debate is about fairness and equity. Many of the poorest counties in the state, and in the country, are located in the eastern sector of our state. These counties are struggling with high unemployment rates, low per-capita incomes, “sky-rocketing” Medicaid costs, high property taxes, and schools that drastically need repairing and renovation. If the proposed formula change is adopted, the majority of these counties lose vital school capital funding, and more pressure is placed on these stressed communities, and ultimately, the ability to provide “sound and basic” education of the children in the school districts suffers.
The current method of subdividing the allocation formula by AMD and tax burden is a fair way of helping poorer counties where the commissioners are simply running out of viable options to pay for school construction. There is a paradox being formed in many of these counties between low wealth and high taxes. Receiving additional school construction funds (and perhaps Medicaid relief) will provide an avenue for improving their worsening learning conditions, and perhaps relieve some of the poorest people in our state from the highest tax burden.
The graph below is a school district funding distribution comparison between the current formula and the new formula proposed in House Bill 9; adopted from this week’s Friday Report:
|
Lottery Distribution Comparison
|
Gain/Loss in Funding Compared w/ Current Lottery Distribution
|
|
LEA NAME
|
Current Lottery Formula
|
Distribution by Enrollment
|
Distribution by Enrollment
|
|
Alamance County
|
1,740,224
|
2,677,268
|
937,044
|
|
Alexander County
|
453,414
|
697,561
|
244,147
|
|
Alleghany County
|
121,943
|
187,605
|
65,662
|
|
Anson County
|
639,922
|
510,440
|
(129,482)
|
|
Ashe County
|
260,475
|
400,731
|
140,256
|
|
Avery County
|
180,281
|
277,355
|
97,074
|
|
Beaufort County
|
569,225
|
875,731
|
306,506
|
|
Bertie County
|
492,376
|
392,748
|
(99,628)
|
|
Bladen County
|
841,603
|
671,313
|
(170,290)
|
|
Brunswick County
|
904,942
|
1,392,218
|
487,276
|
|
Buncombe County
|
2,028,296
|
3,120,456
|
1,092,160
|
|
Asheville City
|
301,752
|
464,234
|
162,482
|
|
Burke County
|
1,136,642
|
1,748,679
|
612,037
|
|
Cabarrus County
|
3,791,007
|
3,023,932
|
(767,075)
|
|
Kannapolis City
|
565,315
|
450,929
|
(114,386)
|
|
Kannapolis City
|
171,201
|
136,561
|
(34,640)
|
|
Caldwell County
|
1,022,639
|
1,573,291
|
550,652
|
|
Camden County
|
292,211
|
233,085
|
(59,126)
|
|
Carteret County
|
665,065
|
1,023,178
|
358,113
|
|
Caswell County
|
260,318
|
400,490
|
140,172
|
|
Catawba County
|
1,357,177
|
2,087,964
|
730,787
|
|
Hickory City
|
356,316
|
548,178
|
191,862
|
|
Newton-Conover City
|
233,665
|
359,485
|
125,820
|
|
Chatham County
|
1,150,495
|
917,703
|
(232,792)
|
|
Cherokee County
|
293,418
|
451,413
|
157,995
|
|
Chowan County
|
377,888
|
301,426
|
(76,462)
|
|
Clay County
|
106,061
|
163,171
|
57,110
|
|
Cleveland County
|
2,591,380
|
2,067,039
|
(524,341)
|
|
Whiteville City
|
399,573
|
858,192
|
(80,851)
|
|
Columbus County
|
1,075,888
|
318,722
|
(217,696)
|
|
Craven County
|
1,164,238
|
1,791,135
|
626,897
|
|
Cumberland County
|
7,951,713
|
6,342,757
|
(1,608,956)
|
|
Currituck County
|
332,336
|
511,286
|
178,950
|
|
Dare County
|
391,381
|
602,125
|
210,744
|
|
Davidson County
|
1,604,758
|
2,468,859
|
864,101
|
|
Thomasville City
|
209,450
|
371,944
|
112,780
|
|
Lexington City
|
241,763
|
322,230
|
130,181
|
|
Davie County
|
514,897
|
792,149
|
277,252
|
|
Duplin County
|
1,375,681
|
1,097,324
|
(278,357)
|
|
Durham Public
|
4,817,914
|
3,843,054
|
(974,860)
|
|
Edgecombe County
|
1,153,982
|
920,485
|
(233,497)
|
|
Forsyth County
|
7,703,933
|
6,145,113
|
(1,558,820)
|
|
Franklin County
|
1,230,712
|
981,689
|
(249,023)
|
|
Gaston County
|
4,901,165
|
3,909,460
|
(991,705)
|
|
Gates County
|
320,264
|
255,462
|
(64,802)
|
|
Graham County
|
96,391
|
148,294
|
51,903
|
|
Granville County
|
1,335,041
|
1,064,908
|
(270,133)
|
|
Greene County
|
500,262
|
399,038
|
(101,224)
|
|
Guilford County
|
10,611,635
|
8,464,469
|
(2,147,166)
|
|
Weldon City
|
155,432
|
601,279
|
(31,451)
|
|
Roanoke Rapids City
|
453,556
|
361,783
|
(91,773)
|
|
Halifax County
|
753,804
|
123,981
|
(152,525)
|
|
Harnett County
|
2,782,750
|
2,219,687
|
(563,063)
|
|
Haywood County
|
620,093
|
953,990
|
333,897
|
|
Henderson County
|
1,025,155
|
1,577,162
|
552,007
|
|
Hertford County
|
538,475
|
429,519
|
(108,956)
|
|
Hoke County
|
1,110,613
|
885,891
|
(224,722)
|
|
Hyde County
|
50,240
|
77,292
|
27,052
|
|
Iredell County
|
1,653,740
|
2,544,215
|
890,475
|
|
Mooresville City
|
395,234
|
608,052
|
212,818
|
|
Jackson County
|
292,396
|
449,840
|
157,444
|
|
Johnston County
|
4,385,892
|
3,498,447
|
(887,445)
|
|
Jones County
|
204,108
|
162,808
|
(41,300)
|
|
Lee County
|
1,410,406
|
1,125,024
|
(285,382)
|
|
Lenoir County
|
1,503,058
|
1,198,928
|
(304,130)
|
|
Lincoln County
|
957,933
|
1,473,743
|
515,810
|
|
Macon County
|
344,916
|
530,640
|
185,724
|
|
Madison County
|
207,248
|
318,843
|
111,595
|
|
Martin County
|
655,844
|
523,140
|
(132,704)
|
|
McDowell County
|
510,494
|
785,376
|
274,882
|
|
Mecklenburg County
|
19,465,607
|
15,526,922
|
(3,938,685)
|
|
Mitchell County
|
179,495
|
276,145
|
96,650
|
|
Montgomery County
|
357,417
|
549,872
|
192,455
|
|
Moore County
|
957,540
|
1,473,139
|
515,599
|
|
Nash-Rocky Mount
|
2,754,546
|
2,197,189
|
(557,357)
|
|
New Hanover County
|
1,951,639
|
3,002,522
|
1,050,883
|
|
Northampton County
|
470,085
|
374,968
|
(95,117)
|
|
Onslow County
|
1,838,817
|
2,828,949
|
990,132
|
|
Orange County
|
1,032,064
|
823,235
|
(208,829)
|
|
Chapel Hill-Carrboro
|
1,692,608
|
1,350,125
|
(342,483)
|
|
Pamlico County
|
243,686
|
194,378
|
(49,308)
|
|
Pasquotank County
|
491,389
|
755,983
|
264,594
|
|
Pender County
|
599,652
|
922,541
|
322,889
|
|
Perquimans County
|
143,407
|
220,626
|
77,219
|
|
Person County
|
887,096
|
707,600
|
(179,496)
|
|
Pitt County
|
3,411,148
|
2,720,934
|
(690,214)
|
|
Polk County
|
198,678
|
305,659
|
106,981
|
|
Randolph County
|
1,486,510
|
2,286,939
|
800,429
|
|
Asheboro City
|
364,964
|
561,484
|
196,520
|
|
Richmond County
|
1,270,139
|
1,013,138
|
(257,001)
|
|
Robeson County
|
3,680,309
|
2,935,633
|
(744,676)
|
|
Rockingham County
|
2,208,034
|
1,761,259
|
(446,775)
|
|
Rowan-Salisbury
|
3,169,282
|
2,528,007
|
(641,275)
|
|
Rutherford County
|
785,829
|
1,208,968
|
423,139
|
|
Sampson County
|
1,248,303
|
995,720
|
(252,583)
|
|
Clinton City
|
474,938
|
378,838
|
(96,100)
|
|
Scotland County
|
1,042,982
|
831,944
|
(211,038)
|
|
Stanly County
|
1,461,964
|
1,166,149
|
(295,815)
|
|
Stokes County
|
1,121,684
|
894,721
|
(226,963)
|
|
Surry County
|
1,337,164
|
1,066,601
|
(270,563)
|
|
Elkin City
|
189,854
|
151,439
|
(38,415)
|
|
Mount Airy City
|
274,014
|
218,570
|
(55,444)
|
|
Swain County
|
147,967
|
227,642
|
79,675
|
|
Transylvania County
|
303,325
|
466,653
|
163,328
|
|
Tyrrell County
|
94,472
|
75,356
|
(19,116)
|
|
Union County
|
2,671,740
|
4,110,370
|
1,438,630
|
|
Vance County
|
1,236,323
|
986,165
|
(250,158)
|
|
Wake County
|
9,993,986
|
15,375,362
|
5,381,376
|
|
Warren County
|
442,487
|
352,953
|
(89,534)
|
|
Washington County
|
328,908
|
262,356
|
(66,552)
|
|
Watauga County
|
355,530
|
546,969
|
191,439
|
|
Wayne County
|
2,920,744
|
2,329,758
|
(590,986)
|
|
Wilkes County
|
797,229
|
1,226,507
|
429,278
|
|
Wilson County
|
1,912,942
|
1,525,876
|
(387,066)
|
|
Yadkin County
|
950,178
|
757,918
|
(192,260)
|
|
Yancey County
|
203,710
|
313,400
|
109,690
|
| |
170,000,000
|
170,000,000
|
|
The folks at Bloomberg News have just released their latest “sucker index” in which they rank state lotteries for how much they actually pay out in prizes in comparison ticket sales and state income. 
Lottery revenues are below what the Governor, legislators and lottery officials had expected. So to boost ticket sales, the state is installing vending machines to make it easier and more convenient for people to play the lottery.