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NCACC /1 Hr <br />ICZ�7ZS3GSI}i <br />Raleigh, NC 27602 -1488 <br />Tel: (919) 715 -2893 <br />Fax: (919) 733-1065 <br />E -mail: ncacc@ncA c grg <br />NCACC E -News Updates <br />Sept. 1, 2005 <br />Estimated lottery proceeds for school construction <br />Page I of 5 <br />O <br />The NCACC Board of Directors considered the lottery issue at its Feb 23, 2005, <br />meeting and voted to support local option lotteries with a substantial portion of the <br />proceeds to be dedicated to local school construction We are pleased that the <br />General Assembly has recognized the need for additional school construction funding <br />- the Association's third highest legislative priority - and has pledged substantial lottery <br />proceeds for school capital projects Please note that the county allocation mechanism <br />was devised solely by the General Assembly <br />Please find below the distribution method for the lottery's net revenues and an <br />estimate of lottery proceeds for school construction by county. Our many thanks to the <br />General Assembly's fiscal research staff for providing these projections. Please note <br />that the projections are based on current effective tax rates and ADM counts. <br />Net revenues (after expenses and prizes) from lottery receipts distributed as follows: <br />1 5 percent to lottery reserve fund until fund reaches $50 million <br />2 Remaining net revenue distributed as follows: <br />0 50 percent to support early grade class size reduction (1:18) and <br />academic pre - kindergarten for at -risk 4 year olds <br />0 40 percent to Public School Building Capital Fund <br />o 10 percent to fund college and university scholarships <br />Public School Building Capital Fund lottery monies allocated as follows: <br />1 65 percent allocated to counties on an average daily membership (ADM) basis <br />2. 35 percent allocated to counties whose effective tax rate is greater than the <br />state average effective tax rate <br />o County effective tax rate = actual county tax rate x 3 -year weighted <br />average of county sales /assessment ratio <br />*Allocation mechanism devised solely by General Assembly. <br />Public School Building Capital Fund lottery monies to be used as follows: <br />1 School construction projects, including renovation and repair <br />2 School construction indebtedness incurred on or after Jan. 1, 2003 <br />3 No county matching funds required <br />4 Funds cannot be used for school technology needs <br />Distribution of Projected Lottery Proceeds for School Construction <br />Method: 65 percent by ADM, 35 percent by ADM to counties with above State Avg <br />Effective Tax Rate <br />Total $161,500,000 $158,080,000 $174,860,000 $186,960,000 $196,320,000 <br />little / /www.iicacc, org/e- iiewstipdates htrnI 9/9/2005 <br />