Reslice lottery pie, says Easley

Reopening a debate, the governor thinks more money should go to his signature preschool program

Gov. Mike Easley is proposing a reordering of what North Carolina's new lottery pays for, spending less on school construction and college scholarships and more on his signature program for pre-schoolers.

Easley, a Democrat, included the spending changes in his budget proposal for the next fiscal year. His plan is uncertain, however, because it reopens the long debate over how lottery money should be used. Legislators in 2005 fought long and often over how to divvy the proceeds and decided by slim votes to create the games of chance.

Dan Gerlach, Easley's senior fiscal adviser, said paying to include more children in the More at Four program would pay off in years to come. Easley started the effort after taking office six years ago.

"Nobody else is going to help these 4-year-olds but us," Gerlach said. "There are kids who need to be covered in those pre-kindergarten years ... and it helps make a difference on the graduation rates later."

Word of Easley's plan is only now filtering out -- indeed, many who closely follow the details of state budget work were unaware of it. Easley did not speak out on the issue last week as he released his $20 billion budget proposal. His budget documents do not highlight the proposed changes.

Current law prescribes that specific percentages of lottery proceeds go to specific programs. But no change in the law is needed. Easley's budget would instead suspend the portion of the lottery law that apportions money. If passed, the budget takes priority because it would be the newest law on the subject, said Gerry Cohen, director of bill drafting at the General Assembly.

Easley's plan would:

* Spend about $43 million less on school construction across the state, a 24 percent reduction from what would be spent if no changes are made.

The exact effect in each county is not known. The amount of lottery money going to Triangle area schools is only supplemental; under current law or Easley's new plan, it is not enough to build even one elementary school.

Still, the Easley plan would likely mean roughly $7 million from the lottery would go for school construction in the next fiscal year in Wake County instead of a planned $9 million this fiscal year.

Durham County would likely drop to $3.5 million in receipts instead of $4.6 million.

* Set aside about $33 million for college scholarships for the needy. That is about $10 million less than what would be specified under current law.

No one has yet received a lottery scholarship, which is designed to plug gaps in aid for needy students. Roughly 30,000 students are expected to get scholarships in the next academic year, but the amounts will vary based on need. Some might receive $100, others more than $2,000.

Steven Brooks, who heads the scholarship program for the state, said Thursday he was unaware of Easley's plans. But he added that the governor's budget includes $50 million in new scholarship money for needy students and expansions of other grant programs.

"It's not like he's turning his back on the needy," Brooks said.

* Spend about the same on teacher pay used to keep class sizes small in the lowest grades -- a total of about $127 million.

* Give a greater percentage and spend more on More at Four.

Easley wants to spend $144 million on More at Four next year. That's up from about $87 million that would be set aside for the program under current law.

Easley has made no secret of his desire to boost spending on More at Four. In his televised State of the State speech last week, he said he wanted to add 10,000 children to 18,000 already in the program. More at Four gives preschoolers exposure to teachers and a curriculum that aims to keep them from falling behind once they start school.