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5 <br />Statutory Requirements of Lottery Legislation <br />In accordance with N.C. Gen. Stat. § 18C-164(b)(1), the State plans to distribute <br />fifty percent of net Lottery proceeds to the Public School Building Capital Fund' <br />for appropriation to counties "to increase the level of county spending for public <br />school capital outlay purposes". "School capital outlay purposes" include <br />construction costs, land acquisition, site preparation, and school debt service <br />incurred on or after January 1, 2003. It is important to note that N.C. Gen. Stat. § <br />18C-164(b)(1) further mandates that "a county must continue to spend for <br />public school capital outlay purposes the same amount of money it would <br />have spent for those purposes if it had not received the monies <br />appropriated under this subdivision." In other words, Lottery proceeds must <br />be used to increase the level of county spending for public school capital outlay <br />purposes, and such proceeds may not be used to supplant funds the County <br />would have allocated to school related capital projects. <br />Further, the Public School Building Capital Fund statute under which Lottery <br />proceeds will be distributed to the County contains the following requirements: <br />• No county shall have to provide matching funds <br />• A county may use monies in this Fund to pay for school construction <br />projects in local school administrative units and to retire indebtedness <br />incurred for school construction projects incurred on or after January 1, <br />2003 <br />• A county may not use monies in this Fund to, pay for school technology <br />needs. <br />• "Public School Buildings" includes only facilities for individual schools used <br />for instructional and related purposes, and does not include central <br />administration, maintenance, or other facilities. <br />Schools Adequate Public Facilities Ordinance (SAPFO) <br />The Board has repeatedly and consistently made education related funding its <br />top priority in expenditures for both day-to-day school operations and capital <br />infrastructure needs. With regard to day-to-day operations, Orange County's per <br />pupil funding is consistently higher than any other county in the State. On the <br />capital infrastructure side, the Board is pro-active in ensuring that sufficient new <br />seats are available for students by joining forces with town and school partners <br />and enacting the Schools Adequate Public Facilities Ordinance (SAPFO). In <br />brief, SAPFO requires that the County's long-range capital plan include funding <br />school projects at a level necessary to accommodate anticipated student <br />membership in future years. In accordance with SAPFO, the Board has <br />programmed new schools into its annual CIP since 2003. <br />'The Public School Building Capital Fund is governed by N.C. Gen. Stat. § 115C-546.2.