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But Easley's efforts to pass a statewide lottery could have hit another roadblock as a coalition of prominent state figures formed to oppose the governor's efforts.

In order to fund several education initiatives that will begin his second year in office, Easley has included $300 million in his biennial budget from a state lottery.

Easley spokesman Fred Hartman said funding from a statewide lottery, estimated at $300 million, will be used to reduce kindergarten through third grade class size and start a pre-kindergarten program. "It's going to take a lot of money to fully complete the job, and without the lottery that money isn't there yet," he said.

Hartman added that Easley is confident revenue generated from a lottery would be sufficient to fund his education projects. "Georgia pulls in hundreds of millions of dollars every year, and there would be no reason that North Carolina could not do the same."

The lottery must first win approval in the General Assembly and possibly from state voters in a May 2002 referendum.

Hartman said Easley is sure it will be passed by the General Assembly and voters. He said the legislature has few other appealing options to generate needed revenue. Hartman added that polls show strong public support for a lottery.

But the lottery lacks the support of several influential residents, who have banned together to fight Easley's proposal in an organization called Citizens United Against the Lottery.

The bipartisan coalition, organized by former Republican gubernatorial candidate Chuck Neely, includes former governors Jim Martin, Bob Scott and Jim Holshouser, former UNC-system presidents Bill Friday and C.D. Spangler and former UNC basketball coach Dean Smith.

Neely said he decided to create the diverse coalition after talking to Friday and other members. He said he discovered a general sense among them that the lottery does not represent N.C. values.

"We are trying to make an umbrella organization to oppose and beat the lottery through mobilizing citizens to contact their representatives and speak out against it," he said.

Spangler added that the coalition will also talk to journalists and directly lobby legislators.

He said he joined the coalition because he believes state government should not be in the business of sponsoring gambling.

"It's important that education be supported in an appropriate way," Spangler said. "And it's inappropriate that public education be provided for by a lottery."

Spangler added that past North Carolina governors have always been able to fund education through normal sources of income without resorting to a lottery and that Easley should be no different. "Before turning to a lottery to balance the budget, legislators should consider reducing the size of government."

But Hartman said Easley welcomes Citizens United Against the Lottery to the debate about the lottery.

"The lottery is just one idea," Hartman said. "Governor Easley welcomes the opposition to provide alternative ideas."

But Neely said the legislature, not private citizens, should generate ideas on the budget. "Our group is not responsible for coming up with ideas on how to fix the budget," he said. "We are here to oppose the lottery."

The State & National Editor can be reached at stntdesk@unc.edu.

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