1. Cover Sheet Page 1 2. Table Of Contents Page 2 3. Introduction Page 3 4. The Beginning Page 4 5. Distribution Page 5 6. Gambling Page 6 7. Public Education in America Page 7 8. The Robin Hood Theory Page 8 9. Conclusion Page 9 10. Work Cited Page 10
Introduction
The debate over the education lottery is an ongoing debate with supporters saying it is a big help to the economy and opponents saying it is still gambling and hurting the already poor people. There was a lot of controversy surrounding the decision to create the North Carolina Lottery. North Carolina was one of the last states on the East coast to get a state lottery. A big part of this reason was that NC is located in what is called the Bible Belt. Everyone argued that the lottery would just be a tax on the poor. Many people felt that it would hurt the already poor people in the state because they would be purchasing tickets in hopes of winning and ending all their money struggles. One of the arguments used was that people would spend money needed for bills, medication, or food on lottery tickets therefore making for an even worse hardship on families. The supporters in turn argued that North Carolina residents were spending over $400 million on ticket sales in other bordering states[9]. Supporters continued their point saying that the money could be spent in our home state and put to good use.
The proposal for the lottery was to fund education, including K-3 teacher’s salary, school construction, some college financial aid, and pre K for at-risk four year olds.
The Beginning
The very first education lottery was started in New Hampshire in 1964. It has generated over 538 million dollars during these 49 years. Rick Wisler, executive director of the New Hampshire Lottery in 1998 stated that hard work and from the staff has made the education lottery an efficient operation. [4]
The North Carolina Lottery State Lottery Act was signed in 2005 by then Governor Mike Easley. There was an outline that specified how the money would be used. Revenue distributions would be distributed as follows: 50% paid out in prizes, 35% transferred into the education fund, 7% to be paid to the merchants who sold lottery tickets, and 8% cost of sales. [10]
The lottery proposal was approved on August 31. 2005 but the sales did not begin until March 30, 2006. The first ticket was sold in Raleigh to State Board of Education Chairman Howard Lee as a ceremonial sale. Scratch off tickets was the only things sold at first. It was sort of a wait and see thing, if these sales were good then they would try other instant win games. Power ball would not be available until May of that year.
Distribution
The North Carolina Education Lottery has a website where the public can go and see where the funds are used. According to this website over 7 billion dollars has been raised for education over the past 7 years. While the overall numbers sound good, there still has been a short fall of money in the school systems. Many jobs have still been lost and programs have been cut. One problem came about when then Governor Beverly Perdue withheld money from the lottery to cover short falls in the North Carolina budget. She depleted the $50 million reserve and withheld $38 million from school construction budget. This move impelled Lawmakers to call for a bill to have education removed from the lottery name [10] [8].
Gambling
Another issue being brought up along with the lottery is gambling. Some see purchasing lottery tickets no more than gambling. Gambling can be a mild issue if done in moderation. Some people though go beyond the occasional ticket purchase. Some people have been known not to play responsibly. Many have the get rich quick frame of mind and forego responsibilities such as bills and other necessities. That is when lottery ticket purchases can become a gambling addiction. Gambling is sometimes looked at as a morality issue, one that creates conflict over principles or basic values [11]. Many opponents refer to concerns about the degenerating nature of lotteries stating that lotteries’ poor odds of winning and promise of get rich quick scheme fool many buyers especially the poor that may be already depressed over finances.
Public Education in America
Public education is dependent on the education lottery. The education lottery allows many college students the luxury of attending college where in many situations this would be impossible. The lottery fills in gaps that student loans and/or Pell grants do not cover. When given in the form of grants and scholarships the funds do not have to be repaid. Lottery funds also help further train teachers with professional development, keeping them current with up to date skills needed to run an efficient classroom. The education lottery also helps build new structures. Many old schools in North Carolina are old, outdated, and not up to code with mold and asbestos. The lottery helps make the process of getting new structures more quick.
The Robin Hood Theory
I have heard it said that the lottery is a guaranteed method to lose money over the long-run. Poor people are far more likely to buy tickets. Poor people are 25 percent more likely to play for money, rather than fun [12]. Per capita lottery sales are highest in North Carolina's poorest counties which is what the opponents have been saying would happen if the lottery was passed. Even though states fund many low income programs, at the same time they are seemingly robbing the poor and deprived with these empty dreams of hitting it big. Most of these people are just looking for a way out, a way to a better life and are willing to spend their last dime on these get rich quick tickets. The odds of winning are not even worth the purchase of a ticket. The games are fine for occasional fun but when you are spending every dime you get on a chance to win it is time to reevaluate our life choices and/or maybe seek some help.
Conclusion
In conclusion while the Education lottery is helpful in ways, it can also be a problem if not handled responsibly. The idea that was set forth with the lottery is well meant. Helping with the education is all the lottery should be used for. The governor or anyone else should not be able to use these funds for anything other than education. Educational cuts are the last thing that should be cut. Well trained teachers are very valuable. Keeping the class sizes small is also a plus if the lottery is used correctly. The child/teacher ratio makes a difference in the classroom. Classroom supplies, books, and nutritious meals are also important to the school system.
On the other hand the gambling side of the lottery is not healthy either. More programs should be readily available to educate these people that may have gambling addictions. Many probably don’t even know they have a problem. Interventions should be set up when a pattern is noticed by merchants and/or family members.
All in all the idea of the lottery is great as long as all funds are allotted correctly. The education lottery puts money back into the economy.
Works Cited 1. Borg, Mary O., and Paul M. Mason. "The Budgetary Incidence of A Lottery To Support Education." National Tax Journal 41.1 (1988): 75-85. Business Source Complete. Web-NCLive
2. Spindler, Charles J. "The Lottery And Education: Robbing Peter To Pay Paul?." Public Budgeting & Finance 15.3 (1995): 54-62. Business Source Complete Web-NCLive
3. Jones, Calvin. "The Lottery and Its Financial Contribution to Public Education in America." ProQuest LLC (2011). ERIC. Web-NCLive
4. "Nation's Oldest Lottery Marks 35 Years In Business." New Hampshire Business Review 21.8 (1999): 6. Small Business Reference Center, Web-NCLive
5. Goda, David. "Lotteries For Education." Journal Of The Royal Statistical Society: Series A (Statistics In Society) 174.3 (2011): 842-843. Business Source Complete. Web- NCLive
8. General Assembly of North Carolina session 2009 http://www.ncga.state.nc.us/Sessions/2009/Bills/House/PDF/H518v1.pdf 9. http://www.lotterypost.com/news/131516
10. http://en.wikipedia.org/wiki/North_Carolina_Education_Lotte 11. Ferraiolo, Kathleen. "Is State Gambling Policy 'Morality Policy'? Framing Debates Over State Lotteries." Policy Studies Journal 41.2 (2013): 217-242. Business Source Complete. Web- NCLive 12. http://www.businessinsider.com/lottery-is-a-tax-on-the-poor-2012-4?op=1
