Lottery Gets Mixed Reviews From BOG

The governor's proposal, which was included in the budget that he submitted to the N.C. General Assembly last week, called for a statewide lottery to provide $66 million in enrollment growth funding for the UNC system. All told, Easley expects the lottery to provide about $250 million in revenue for the state during the next fiscal year.

The BOG approved tuition hikes in March of 8 percent for in-state students and 12 percent for out-of-state students to fund about half of the UNC system's enrollment growth needs -- a total of $33 million.

Lottery proposals are nothing new to North Carolina, having been debated several times in the state legislature over the past decade.

But no governor has lobbied as hard as Easley for the educational benefits that may arise from such a lottery.

Nevertheless, many leaders from across the state have criticized the governor's plan in the last week and are concerned about the effectiveness of the lottery.

Robert Warwick, a member of the BOG and a vocal proponent of the tuition increase approved by the BOG in March, said he does not support Easley's proposal.

"I do not believe that enrollment growth should be funded through a nonexistent revenue source," he said. "The lottery is on the governor's wish list but has not yet been approved by the legislature."

When the BOG approved the increases, it was operating under the assumption that the money would be used to fund additional enrollment.

But through his budget proposal, Easley does not plan to use the tuition increases to fund enrollment.

His plan calls for a state lottery to fund the full $66 million, a move that Warwick opposes.

"I believe that the lottery is an unstable source of revenue," he said.

"In my opinion, the governor should have honored our request. We approved the increase with the understanding that the revenue would be used specifically for enrollment."

But BOG member H.D. Reaves said he supports Easley's actions.

"I'm happy with Governor Easley's lottery proposal," he said. "It's irrelevant how the state chooses to raise the money for additional enrollment.

"Our main priority should be to ensure that our universities are accessible to as many people as possible."

The BOG included a provision in its tuition plan that stated that if the legislature raises more than $33 million for enrollment, the increases would be scaled back proportionally.

But both Warwick and BOG member Ray Farris, who was one of only a handful of BOG member to vote against the tuition increase, said they do not expect the tuition increase to be scaled back even if the lottery is approved.

The University Editor can be reached at udesk@unc.edu.