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<br />House Bill 2212 requires the committee to examine whether the. <br />educational purposes for having the Lottery are being met, such as <br />ensuring that proceeds from the Lottery are designated as additional <br />education funds rather than supplanting already existing resources. In <br />addition, the oversight committee will also monitor the operations, <br />budgeting, and spending of Lottery proceeds through the review of <br />quarterly and annual reports from the Lottery Commission. While the <br />Lottery Commission has full authority over the Lottery, the Lottery <br />Oversight Committee would act as a check on the commission's activities <br />that could prompt lawmakers to modify the Lottery Act. The Lottery <br />Oversight Committee also has the responsibility for studying any Lottery <br />matters that the committee deems necessary and reporting within fifteen <br />days of each convening regular session of the General Assembly on its <br />oversight of the Lottery. <br />• The Local Government Commission (LGC) remains, cautious about Lottery <br />funds citing the fact that the General Assembly could change the <br />disbursement formula in the future. General guidance from the LGC is to <br />"conservatively estimate proceeds "until sufficient time has passed that a <br />more reliable estimate of the revenue levels expected on an annual basis <br />can be determined." For all financing applications that involve Lottery <br />revenue, the Commission plans to require counties to have contingency <br />plans in the event that Lottery revenues are insufficient. In other words, <br />should Lottery revenues "come up short", the County must pledge to take <br />actions necessary to make up the difference. On a promising note, the <br />Commission has recently approved local financing plans that pledge <br />Lottery revenues for a significant portion of debt service. Rockingham <br />County's plan was the first approved LGC plan. <br />C The Lottery is still in its infancy in North Carolina, and there is no history <br />on which to base solid revenue projections. For example, while initial <br />revenues generated by Lottery ticket sales were healthy and revenue <br />streams were on target with original State projections, recent reports have <br />indicated that ticket sales appear to be slowing somewhat. It is also <br />important to note that just this week, as the General Assembly reconvened <br />in Raleigh, two Lottery related bills have been introduced - both bills <br />suggest changes to the distribution formula. It is difficult to project how <br />strong or how slow future years sales, legislative changes and resulting <br />revenues may be at this time. <br />Conclusion <br />The major factors that complicate how the Board can appropriate Lottery <br />proceeds center on supplantion and SAPFO. In essence, Orange County is <br />victim of the Board's past diligence in funding education. While other counties <br />have funded education at lower levels than Orange County, the Board has have <br />been diligent in ensuring that school capital needs have been on the forefront. <br />The Board has ensured that students in the Orange County public schools have <br />5