Scratch-offs, scholarships, and school debt

The North Carolina Education Lottery (NCEL) has surpassed $1 billion in revenue for the third consecutive year — a financial phenomenon with ripple effects in Burke County Pre-Ks, college scholarships, and school development debts.

Since its first fiscal year (FY) ended in 2007 — 2006 — the NCEL has seen a steady incline in income. Starting at approximately $62.3 million, the earnings have continuously grown, producing more than $1.09 billion in 2024.

With $1.07 billion rolling in during the 2024-25 fiscal year that ended in June, the NCEL reported that more than $12 billion has been raised since the commission’s development.

To put it in perspective, the sports business news site Sportico valued the Carolina Panthers at $5.76 billion in 2025. The cumulative NCEL funds could have bought the 2025 Panthers twice, with enough money left over to pay each of the 53 active roster players almost $9.06 million apiece.

The impact on education reverberates through communities across a variety of networks. From Pre-K funding to scholarships for college students, NCEL allocations create opportunities for students and faculty alike.

PRE-K & COLLEGE SCHOLARSHIPS

These factors aren’t managed by Burke County Public Schools (BCPS) but are applied through avenues such as FAFSA applications and Burke County Smart Start.

NCEL Brand Communications Specialist Katie Spigner said, “Lottery proceeds were the primary state funding source (39.5%) in FY24, according to the fiscal research division. $542,254 in lottery funds covered 157 NC Pre-K slots for Burke County children in that year.”

The NCEL provided nearly a quarter of the $148 million in scholarships given last year, according to Spigner.

“That accounts for 66,789 awards and a total of $34,058,419 statewide; 466 scholarships went to Burke County residents thanks to $218,161 in lottery funds, according to (North Carolina State Education Assistance Authority),” she added.

QUARTERLY ALLOCATIONS TO BCPS

BCPS Finance Officer Keith Lawson broke down how BCPS is impacted.

Lawson said the disbursed NCEL funds are allocated quarterly to an account from which Burke County can draw. While the money doesn’t necessarily come in labeled as “lottery funds” for most uses like staff income and transportation, it does funnel into a general budget from the North Carolina Department of Public Instruction.

“We don’t know where that money comes from, per se, and what pots — if it’s general budget or if it’s corporate taxes or if it’s lottery,” Lawson said. “The only thing that I see, or the county sees, that’s lottery-specific, is about $900,000 a year that we receive that we apply toward debt service for Patton and Draughn high schools.”

DEBT SERVICE ON SCHOOL CONSTRUCTION

Debt service is a set of funds that satisfy principal and interest payments on outstanding debts of the state.

With a combined remaining total of over $2.8 million, Patton High School and Draughn High School — built in 2007 and 2008, respectively — receive and administer the majority of these funds toward paying off the initial development costs of both institutions.

Other types of funds are also used for paying debt service.

“We have articles 39, 40, and 42 — sales tax funds that are just different parts of what makes a total sales tax,” Lawson said. “Those funds are earmarked for school use. [NCEL funds] just sort of goes in the harbor with that.”

BCPS Public Relations Officer Cheryl Shuffler explained that debt service on the two high schools is almost finished.

“They will pay off next year, and we will utilize it toward debt service on Mountain View (Elementary),” Shuffler said. Mountain View was built in 2018 and has a remaining balance of nearly $1.6 million. Lawson said there are approximately 14 years left in debt service on the elementary school.

“We use it on debt service because that’s one of the allowable uses,” Lawson explained. “The other is improvement to schools. But, if you have debt service, that’s the simplest thing to apply it to, because if we use it for projects, we have to submit all the projects for pre-approval before we utilize the money for that purpose.”

The ways lottery funds can be used shift with legislative decisions, with the state budget and final allocation model published each year. One of the largest recurring allocations is for school construction, which accounted for 52% of available funds in FY 2024—totaling $566,532,925 statewide.

In 2024, BCPS attained a needs-based grant of $42 million, which is being directed into the development of a new elementary school to replace Hildebran and Icard elementary schools.

While the grant won’t cover all of the $55 million in construction costs, the remaining $13 million will be covered by other means.

Lawson said, “We have a capital fund balance to pay that. So, we will build the eastern elementary school without any debt.”

Two BCPS Board of Education meetings are being held in the coming weeks to discuss the new school. The first is Tuesday, Sept. 30, in the Icard Elementary Gym, and the second is Thursday, Oct. 2, in the Hildebran Elementary Gym. Both meetings begin at 6 p.m.

For more information on distributions in Burke County, go to https://nclottery.com/EducationCounty/Burke.