By John Peters
Editor

The North Carolina Education Lottery has already had its first Powerball winner, a Halifax County woman who recently claimed more than $36 million in winnings from a Nov. 29 drawing.

As the lottery approaches its first anniversary in North Carolina, that winner would no doubt tell you it’s been a huge success, but local schools and retailers offer a mixed reaction to its affects on store sales and proceeds for school systems.

The lottery began on March 27, 2006, when it started selling chances in the semi-weekly Powerball drawing. The Powerball drawing is a large lottery with 29 participating states, and two other localities, according to Alice Garland, spokesperson for the North Carolina Education Lottery.

She said players must match six different numbers drawn at random to win the jackpot, but various levels of winnings below that are available that offer players prize winnings starting at $200,000 and going all the way down to $3.

In addition to the Powerball drawings, a number of scratch-off games can be played by purchasing tickets costing from $1 to $5, with prizes as high as $150,000 or as low as winning another lottery ticket, and there are daily Pick 3 and Cash 5 drawings.

According to state statute, at least 50 percent of the lottery money has to go into prizes, 7 percent of each sale goes back to the retailer, then what’s left pays for the cost of administering the lottery, with the rest going to local school districts across the state.

That money is set aside for local school districts based on a complicated formula that considers school attendance in the county, the local tax rates, and other factors.

And, while that money is set aside in a fund, it is not automatically disbursed to each local school district.

Pat Draffin, public information officer for Warren County schools, said his school district has to submit projects for which the money will be spent, then request the funds.

“We don’t actually receive any funding from the lottery unless we apply for it,” he said. “We are earmarked for the funds, but until we have a capital project to use them, we don’t actually get them.”

He explained that local school districts can only access their portion of the money if they have a capital project of some sort approved by both the local school board and the county commissioners.

Then the local school district has to submit a request for its money, with the money going to that particular project.

“Right now, Warren County is only getting about $100,000 a quarter,” Draffin said, which doesn’t buy a lot in terms of construction or renovation work.

“We have not applied for anything yet, I think we’re going to try to build up our pot a little bit,” Draffin said.

Keith Hoggard, public relations officer for Halifax County schools, said his school system is taking the money as it is available.

He said the county is due $133,745 from the current lottery allotment, and has not yet collected about $168,000 from the last allotment.

“Most of our work (for lottery money) is for renovations,” he said. “It’s a big help. We’ve got 16 schools and that requires a lot of upkeep and renovations. The work we’re going to be doing (with lottery money) are things that would have had to have been done.”

With the lottery money, Hoggard said some renovations projects will be done sooner than they otherwise would have been tackled, and with all the lottery money projects, he said the school system, and ultimately the students, benefit. He explained that many of these projects would have used general fund money, but now more of that can go toward educational programs.

At least two local retailers have said having lottery tickets has increased traffic in their store, though not everyone knows it overall sales have increased.

Ali Aleh, owner of Scooters on North Carolina Highway 903, said traffic in his store has jumped considerably since he began selling lottery tickets.

“It’s been good,” he said as he points out a “stellar seller” plaque awarded to his store by the state lottery office. “We’ve had a big increase. We’ve had some people who come in here just for the lottery tickets, but we have others who come in for the tickets and buy other things, too.”

Aleh said he expects traffic to pick up even more as the weather warms and the part-time and summer residents come to the lake.

Billy Matthews, owner of Piggly Wiggly, said his store sells tickets more as a service to its customers than a way to bring in more folks. He explained that with convenience markets selling the tickets, not to many people dash into his store solely to purchase the tickets.

“I think it’s beneficial for our customers, to have lottery tickets here. They can buy them while they are already here shopping.”

Matthews also said he believes area lottery players still go into Virginia rather than purchase tickets in North Carolina. After 20 years of having to cross into Virginia, he said many of them still buy their tickets there while working in Virginia or visiting for other reasons.

He points to the sales at another Piggly Wiggly further away from the border as evidence of his belief.

“We have a store in Southern Nash County, we do six times the amount of lottery sales as we do here.”

Cindy Lane, manager at New Dixie Mart in Littleton, said traffic in her story increased considerably after lottery tickets went on sale, but overall store sales haven’t increased dramatically.

She said while some lottery ticket buyers do other shopping in the store, most come in strictly for the tickets.

Officials with the Parade mart in Littleton declined to comment for the story.

action to its affects on store sales and proceeds for school systems.

The lottery began on March 27, 2006, when it started selling chances in the semi-weekly Powerball drawing. The Powerball drawing is a large lottery with 29 participating states, and two other localities, according to Alice Garland, spokesperson for the North Carolina Education Lottery.

She said players must match six different numbers drawn at random to win the jackpot, but various levels of winnings below that are available that offer players prize winnings starting at $200,000 and going all the way down to $3.

In addition to the Powerball drawings, a number of scratch-off games can be played by purchasing tickets costing from $1 to $5, with prizes as high as $150,000 or as low as winning another lottery ticket, and there are daily Pick 3 and Cash 5 drawings.

According to state statute, at least 50 percent of the lottery money has to go into prizes, 7 percent of each sale goes back to the retailer, then what’s left pays for the cost of administering the lottery, with the rest going to local school districts across the state.

That money is set aside for local school districts based on a complicated formula that considers school attendance in the county, the local tax rates, and other factors.

And, while that money is set aside in a fund, it is not automatically disbursed to each local school district.

Pat Draffin, public information officer for Warren County schools, said his school district has to submit projects for which the money will be spent, then request the funds.

“We don’t actually receive any funding from the lottery unless we apply for it,” he said. “We are earmarked for the funds, but until we have a capital project to use them, we don’t actually get them.”

He explained that local school districts can only access their portion of the money if they have a capital project of some sort approved by both the local school board and the county commissioners.

Then the local school district has to submit a request for its money, with the money going to that particular project.

“Right now, Warren County is only getting about $100,000 a quarter,” Draffin said, which doesn’t buy a lot in terms of construction or renovation work.

“We have not applied for anything yet, I think we’re going to try to build up our pot a little bit,” Draffin said.

Keith Hoggard, public relations officer for Halifax County schools, said his school system is taking the money as it is available.

He said the county is due $133,745 from the current lottery allotment, and has not yet collected about $168,000 from the last allotment.

“Most of our work (for lottery money) is for renovations,” he said. “It’s a big help. We’ve got 16 schools and that requires a lot of upkeep and renovations. The work we’re going to be doing (with lottery money) are things that would have had to have been done.”

With the lottery money, Hoggard said some renovations projects will be done sooner than they otherwise would have been tackled, and with all the lottery money projects, he said the school system, and ultimately the students, benefit. He explained that many of these projects would have used general fund money, but now more of that can go toward educational programs.

At least two local retailers have said having lottery tickets has increased traffic in their store, though not everyone knows it overall sales have increased.

Ali Aleh, owner of Scooters on North Carolina Highway 903, said traffic in his store has jumped considerably since he began selling lottery tickets.

“It’s been good,” he said as he points out a “stellar seller” plaque awarded to his store by the state lottery office. “We’ve had a big increase. We’ve had some people who come in here just for the lottery tickets, but we have others who come in for the tickets and buy other things, too.”

Aleh said he expects traffic to pick up even more as the weather warms and the part-time and summer residents come to the lake.

Billy Matthews, owner of Piggly Wiggly, said his store sells tickets more as a service to its customers than a way to bring in more folks. He explained that with convenience markets selling the tickets, not to many people dash into his store solely to purchase the tickets.

“I think it’s beneficial for our customers, to have lottery tickets here. They can buy them while they are already here shopping.”

Matthews also said he believes area lottery players still go into Virginia rather than purchase tickets in North Carolina. After 20 years of having to cross into Virginia, he said many of them still buy their tickets there while working in Virginia or visiting for other reasons.

He points to the sales at another Piggly Wiggly further away from the border as evidence of his belief.

“We have a store in Southern Nash County, we do six times the amount of lottery sales as we do here.”

Cindy Lane, manager at New Dixie Mart in Littleton, said traffic in her story increased considerably after lottery tickets went on sale, but overall store sales haven’t increased dramatically.

She said while some lottery ticket buyers do other shopping in the store, most come in strictly for the tickets.

Officials with the Parade mart in Littleton declined to comment for the story.