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Lottery payback? That's a gamble

My column today:

Good morning. This is the North Carolina Lottery Commission.

Hello. I'm calling for some information about my son's college scholarship.

Hold, please. I'll connect you with that office. ...

Scholarships office. How may I help you?

Hi. I'd like to know what I'm going to get to help pay my son's tuition. I need to plan my budget for next year.

I'm sorry, we may not be able to provide that information.

You can't provide that information? Isn't some of the lottery money supposed to go into a tuition fund?

Yes, sir, that is correct. A portion of lottery revenues is to be set aside for college scholarships to the extent practicable.

To the extent practicable? What does that mean?

Oh, that's just technical language in the lottery law.

Well, how much will I get for my kid?

First it must be determined whether you meet eligibility guidelines. The scholarships are reserved for students with demonstrated financial needs.

In other words, I have to be poor?

Not necessarily. You could have a moderate income but incur substantial expenses.

I'm spending a lot of money on lottery tickets, if that counts.

I don't think so.

Well, suppose I am eligible. How much will we get then?

There are still variables to consider. For example, the maximum grant allowed by law is $4,000 a year. But that would include any funds received through the Pell Grant program.

Meaning what?

That, if your son had a Pell Grant for $2,000, then the most he could qualify for under our scholarship would be another $2,000.

This sounds like the more you need, the less the state will give you.

We think it will even out.

OK, as long as we get our $4,000 one way or another.

Again, sir, I'm afraid that's not necessary the case.

Why not?

Because scholarships are subject to the net income available from lottery proceeds.

That shouldn't be a problem, should it? I mean, the lottery's going to rake in hundreds of millions of dollars a year.

It is projected to do so. But, in the event of revenue shortfalls, the law establishes allocation priorities.

What are those?

The first is to support academic prekindergarten programs for at-risk 4-year-olds who would otherwise not be served in a high-quality education program in order to help those 4-year-olds be prepared developmentally to succeed in school. The second is to reduce class size. The college scholarship program is only the third priority.

Wait a minute. What are you telling me? My kid doesn't get his scholarship unless there's enough money to send every 4-year-old to preschool first?

Possibly. And also enough to reduce class sizes in the early grades to 18 students.

I see it all slipping away. Can you tell me the breakdown on where this lottery money is going?

Well, half goes to winnings ...

Not so I can tell. If I won half my money back, maybe I could afford to pay college tuition myself.

I assure you, sir, that someone is winning. Eight percent goes to administration and advertising, 7 percent to retailers and 35 percent to education.

What share does the scholarship fund get?

Let's see. Ten percent of 35 percent ... It comes to 3.5 percent of total revenue ... if practicable.

Wait. Eight percent goes for administration and advertising compared to 3.5 percent for scholarships?

Yes, sir.

Is that 8 percent for administration and advertising "if practicable," too?

Oh, no, sir. That's guaranteed.

Well, what are these administrative expenses?

Salaries for Lottery Commission employees, and other costs.

Your salary?

Yes, sir. Thank you.

You're welcome, I think. Look, I'm frustrated by this. I was counting on getting some help for those college tuition bills. Now I'm not so sure the state is going to deliver what it promised. What can I do?

Just keep buying those lottery tickets. If you hit the jackpot, your son won't need a scholarship.

Comments (2)

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John Appel said:

"In other words, I have to be poor?

Not necessarily. You could have a moderate income but incur substantial expenses.

I'm spending a lot of money on lottery tickets, if that counts.

I don't think so."

Thanks for the laugh this morning, Doug.

Doug said:

Thanks, John. I think the way our lottery is set up is a joke.

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