The scrutiny on how lottery funds are distributed to public schools has intensified with the latest audit report on the North Carolina Education Lottery. As ticket sales keep climbing, the cash for schools isn't getting the expected bump. In fact, the percentage of revenue designated for education is on a noticeable decline. The released audit, for the fiscal year ending June 30, 2025, reveals that while the total annual revenue has jumped to $6.6 billion, the amount that's been funneled into the Education Lottery Fund for schools has dipped to $1.05 billion from $1.07 billion the year before, according to the official website of the North Carolina Office of the State Auditor.
State Auditor Dave Boliek isn't taking these numbers lightly and is looking to deeply understand why more money isn't making its way to the students. "North Carolinians have a reasonable expectation that if the Education Lottery’s ticket sales go up, money going toward our public schools would increase as well. At first glance, these numbers raise a lot of questions. Over the last three years, total revenues have increased by a total of over $3 billion, while contributions to public education have been flat," he said in a statement acquired by the North Carolina Office of the State Auditor. Concerns have risen as the percentage of lottery revenues given to education has fallen from 23% in fiscal year 2023 to 16% in fiscal year 2025, despite an overall revenue increase of over $3 billion in three years.
This isn't just an academic exercise; the financial maneuverings have real impacts on classrooms across the state. To dig deeper into the matter, the State Auditor's Office has initiated its first performance audit of the Education Lottery since 2008, which has been ongoing for the past three months. This probe aims to examine every aspect of the Lottery’s operations and financing, with the aim of getting to the bottom of the educational fund's stagnation in the face of increasing revenues.
The complexity of the issue is not lost on the audit team or the public eye. Boliek is committed to providing clear answers for North Carolinians and the schools that ought to benefit from these funds. "These numbers led to the initiation of a performance audit designed to take a deep dive into all aspects of the Education Lottery’s finances and operations. North Carolinians deserve answers to some tough questions so that we all have a better understanding of the return public schools are getting from the Education Lottery," he shared in his message to the public, as mentioned on the official website. The full financial statement audit can be accessed by anyone looking for more in-depth financial details, and Boliek has ensured that Education Lottery management had the opportunity to add their own commentary on the findings.
