In August 2005, Gov. Mike Easley signed into law the North Carolina State Lottery Act (H. 1023) and the 2005 Appropriations Act (S. 622) which established the North Carolina Education Lottery.
100 percent of the net proceeds of the North Carolina Education Lottery go to education programs. The overall use of each lottery dollar as assigned in the lottery legislation is broken down below:
The breakdown of the North Carolina Lottery net proceeds to education flow as follows:
5 percent goes to the Education Lottery Reserve Fund to be used when lottery proceeds fall short of target. The Reserve Fund may not exceed $50 million.
The commission shall distribute the remaining net revenue of the Education Lottery Fund in the following manner:
50 percent of the total remainder shall be used for reduction of class size ratios in early grades to 18 children per teacher and for prekindergarten programs for at-risk four year olds who would not otherwise be served in high-quality settings. http://www.ncpublicschools.org/
40 percent of the total remainder shall be used for school construction. Roughly 65 percent of this total shall be distributed to each county based on total school enrollment. The remaining 35 percent of this total shall be distributed to each county with average effective county property tax rates above the state average based on total school enrollment. http://www.schoolclearinghouse.org/
10 percent of the total remainder shall be used for college scholarships for students who qualify for the federal Pell Grant. These scholarships can be used at North Carolina public and private universities and community colleges. http://www.ncseaa.edu/