One of the first bills filed by the Senate was a bill to change the way the state allocates lottery funds for school construction.
Four senators from western North Carolina want to eliminate the “high tax bonus,” that is, the additional lottery funds given to counties that have an effective tax rate above the state average rate. If passed, this bill would allocate lottery funds based solely on the number of students enrolled in each school system. Right now, only 65 percent of the funds for school construction are allocated in this way.
Last year, I recommended changing the formula in a similar manner. Our largest school systems have needs that warrant a greater share of lottery funds for school construction. (Of course, some large counties make out well under the current formula.) In addition, the state should not reward counties that have an above average tax rate.
