Governor Unhappy With Lottery Budget Provision

Tuesday, June 13, 2006 posted 11:05 AM EDT

RALEIGH, N.C. -- A budget provision being debated in the state House this week has the governor concerned about how officials will track lottery proceeds being spent for education.

The speaker of the House agrees with the governor.

The House budget totals $18.9 billion. A small part -- $3 million -- of lottery profits are earmarked for the Smart Start early education program.

Gov. Mike Easley's office said the appropriation will make it harder to tell how lottery money is being spent and that it might replace tax dollars. His office said the state must be extremely clear about where lottery proceeds are spent

Now, Speaker Jim Black said those earmarked funds won't be in the bill when it reaches the House floor.

State law sets aside half of the estimated $425 million in lottery revenues expected this year for class reduction and a voluntary kindergarten program. The rest goes to public school construction and college scholarships.

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