North Carolina lottery debate heats up again

Gary D. Robertson

Tuesday, June 4, 2002 | 9:47 a.m.

RALEIGH, N.C. -- Lottery supporters say North Carolinians already play the lottery in other states and should start one of their own for education. Opponents call gambling predatory and an inefficient revenue source.

These positions have been staked out each time a lottery has come up for debate in the General Assembly, and this year's no different.

But an altered fiscal and political landscape may have some legislators thinking twice about their votes this time around. A historic state budget shortfall, South Carolina's new lottery and an election year have renewed prospects for passage.

A lottery bill author hopes that, with pressure from Gov. Mike Easley and maybe Speaker Jim Black, a measure can finally get through the House, where similar efforts have stalled for years.

"I can't count the 61 to get it done" right now, said Rep. Bill Owens, D-Pasquotank, referring to the majority of votes required for bill passage, but prospects are "much better than last session."

Anti-lottery forces said Monday at a news conference that few lawmakers will change their minds now.

"This is not a new issue," John Hood, of the conservative-leaning John Locke Foundation, said. "They've heard the arguments and they don't seem to be fazed by the current fiscal situation."

The severity of the budget crisis that surfaced earlier this year, with a shortfall reaching $1.5 billion in April, has more people talking about a lottery to generate needed revenue.

Easley placed a yet-to-be-approved lottery in his budget proposal for the second year in a row. He made an education lottery a pillar of his 2000 campaign.

This year his projected net lottery proceeds of $250 million would help accelerate class size reduction in the public schools and expand the More at Four program for at-risk 4-year-olds.

Citing the deep shortfall, Easley earmarked about 80 percent of a lottery's proceeds to pay for ongoing education programs -- including ABC bonuses for teachers and enrollment increases.

Lottery opponents said the spending plan appears to contradict Easley's commitment that lottery revenues would only be used for class-size reduction and More at Four.

A co-chairman of the House Finance Committee, where the first key lottery vote would be taken, said using proceeds for traditional general fund programs could be damaging to Easley.

"That may cost the lottery a key vote or two," said Rep. Paul Luebke, D-Durham, a lottery opponent. "I think some legislators are bothered by that."

Easley remains committed to language in a lottery bill or the state constitution limiting lottery money to specific education programs, spokesman Fred Hartman said Monday. This budget crisis is an exception, he said.

"This would be a one-time use," Hartman said.

Lottery boosters may have a friend in Black, who as speaker has been personally opposed to a lottery. But statements in recent weeks that he may now vote yes for on a lottery referendum bill will help its chances in the chamber. Support for the lottery historically has been stronger in the Senate.

Lottery supporters predict North Carolinians will spend at least $250 million this year on lottery tickets in Georgia, South Carolina and Virginia. Hood disagreed and said the three states received only $71 million in net revenues when prizes and administrative costs were taken out.

Owens said lottery supporters last year counted at least 50 "yes" votes for a statewide lottery referendum, reaching 59 -- two short of a majority -- before the contentious budget and redistricting debate prompted some Republicans to withdraw support.

A vigorous anti-lottery effort at the Legislature also helped neutralize Easley's lobbying. The House held a public hearing in October but no votes were taken.

Pro-lottery forces are confident this year's campaign will tilt the legislative balance in their favor.

"I think you're going to see some lawmakers change their minds," Mark Erwin, chairman of the North Carolina Lottery for Education Coalition, said last week.

The coalition will try to sway legislators through personal contact and media buys, and by contacting their constituents back home -- who will decide whether to re-elect the lawmakers in November. Polls have consistently shown strong support for a lottery in North Carolina.

The governor has been promoting his message by traveling the state since late March, visiting every major media market at least twice, Hartman said.

Some speakers at Monday's anti-lottery news conference criticized Easley for pushing a lottery for education when children are taught in schools that gambling is illegal.

"We say no to peer pressure," Raleigh activist Octavia Raney said. "Are you giving in to peer pressure from South Carolina and Virginia?"