North Carolina's Lottery Revenues for Education Funding Declining: Why?

NC Lottery Revenues for Education Disappearing

North Carolina’s state auditor, Dave Boliek, recently raised concerns about a troubling financial trend: despite rising lottery revenues, the amount allocated to public education has dropped significantly. At the same time, nearly $3 billion in COVID-19 relief funds remain untouched. These findings have sparked questions about how state resources are managed and whether public expectations are being met.

The North Carolina Lottery was created with a clear purpose: to generate funds that support public education. Voters expected that as lottery revenues increased, so would the contributions to schools. Yet, the latest audit reveals the opposite.

• Lottery revenues increased from fiscal year 2024 to 2025.

• Despite this growth, contributions to public education fell by $20 million compared to the previous year.

• This decline raises serious questions about the lottery’s financial management and priorities.

  
  

State Auditor Dave Boliek emphasized that his office has been working closely with the lottery for several months to understand the reasons behind this decrease. The audit results suggest that the lottery is not meeting its intended goal of supporting education as effectively as voters anticipated.

Public schools in North Carolina rely heavily on lottery funds for classroom resources, technology upgrades, and teacher support initiatives. A reduction in funding can have direct consequences:

• Fewer resources for students and teachers.

• Delays in implementing new educational programs.

• Increased pressure on local school budgets to fill the gap.

  
  

Educators and parents have expressed concern about the shrinking lottery contributions, especially as schools continue to recover from the disruptions caused by the pandemic.

Alongside the lottery funding issue, the audit revealed that nearly $3 billion in COVID-19 relief funds allocated to North Carolina remain unspent. These funds were intended to help the state manage the public health crisis and support economic recovery.

Boliek explained that releasing the audit was meant to inform the public about the status of these funds and to assure them that the state is monitoring how the money is used. Still, the large amount of untouched funds raises questions:

• Why has such a significant portion of COVID-19 relief money not been deployed?

• Are there bureaucratic or logistical barriers delaying the spending?

• Could these funds be redirected to urgent needs, such as education or healthcare?

The concerns raised by the state auditor highlight the importance of transparency and accountability in managing public funds. North Carolina residents expect that lottery proceeds and emergency relief money will be used efficiently and for their intended purposes.

Key points for improving trust and effectiveness include:

• Clear reporting on how lottery revenues are allocated each year.

• Regular updates on the status and use of COVID-19 relief funds.

• Open communication between state agencies, lawmakers, and the public.

• Swift action to address any delays or mismanagement.

For taxpayers and voters, these findings serve as a reminder to stay informed and engaged with how state resources are handled. The lottery was designed to benefit public education, and COVID-19 funds were meant to support recovery efforts. When these goals are not met, it affects communities directly.

Residents can:

• Follow updates from the state auditor’s office.

• Reach out to local representatives to express concerns.

• Support initiatives that promote financial transparency.

• Advocate for timely and effective use of public funds.

The state auditor’s report is a call to action. North Carolina must address the gap between lottery revenues and education funding and find ways to put COVID-19 relief money to work. This will require cooperation among state agencies, lawmakers, and the public.

By focusing on clear priorities and accountability, North Carolina can better support its schools and communities during this critical time.

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