By definition, the lottery is a gamble. There’s no guarantee of winning, no assurance that you’ll look back on your ticket purchase without regret.

Sure, it can pay out big sometimes, but you could just as easily come up empty. And in North Carolina, for the school districts the education lottery helps fund, it turns out the story of what happens to that money might be much the same.

For the last five years, regulations on what can be done with lottery money have been pretty strict. But with state and local budgets in crisis, the General Assembly last year lifted some of those strictures, allowing schools to pay other expenses that were losing state funding with lottery money; a consolation prize for losing the big pot. So many districts started clutching money they once spent freely, fearing state budget cuts that are just over the horizon and wondering if they’d made the right choices with lottery money given to them in the past.

SEE ALSO: GOP may loosen rules on lottery proceeds

In Swain County, lottery money has always gone to debt service, paying down notes taken out for school improvements. County Manager Kevin King said that’s what they’ll continue to put those dollars toward for the foreseeable future. The same is true for Macon and Jackson counties.

In Haywood County, however, they’ve taken fuller advantage of what the funding rules allow. The way lottery money allocation works today is pretty simple: school districts get a percentage funding based on their ADM, average daily membership, which is basically how many students are attending their schools. Districts used to get extra money based on their property tax rates, which put western counties with historically low rates at a disadvantage. However, after years of lobbying by school officials, the General Assembly removed that inequity during its last session.

Lottery money ‘icing on the cake’

But regardless of where it comes from, lottery funds have, in the past, been earmarked only for capital improvements. That means new buildings, repairs to existing facilities and, as in Swain County, debt service for similar projects that have already been paid for.

Back in Haywood County, they decided to use their funds to install artificial turf on their sports fields, a project that’s taken their yearly lottery funds, which average about $600,000 annually, since they started receiving them.

After last year, though, when the extent of state budget woes became increasingly clear, Assistant Superintendent Bill Nolte said they started saving as much of that money as they could, aware that the state would have to find $3.7 billion dollars in cuts somewhere, and schools might be first on the chopping block.

“You … want to save the lottery money because it’s the only source that you have as an emergency source,” said Nolte, noting that, after paying the remaining two turf payments that are still outstanding, Haywood’s lottery fund balance would leave about $600,000 to fund teaching positions or address liability issues and emergency facility needs, which is as low as he’d like to see the fund get.

“We’re down pretty close to a pretty uncomfortable level of having a reserve there,” Nolte said.

But when asked whether, retrospectively, the turf still seem like a sound decision, Nolte defended the choice. He said the school system used the money for one of the few things it was allowed to spend it on.

“It [lottery funding] was never intended for emergency crises, it was never intended to pay for teachers, it was never intended to buy paper. That [capital expense] was the only thing we could spend it on at the time. It was a very logical expenditure,” said Nolte. “If we had a crystal ball and we knew that two to three years later we would be in an economic crisis, we may have not done that project.”

But, as Nolte points out, crystal balls were in short supply, and in what seemed like a healthy economy, they would have been decried for saving the money then.

“Back when we did the fields, there was no opportunity to spend the funds in another manner. If we had saved those funds back then, people would have said, ‘what are you saving for?’” said Nolte. “At the time that we made those expenditures it was a very popular decision.”

Now, however, there is no decision more popular than holding onto what you’ve got, in case things continue to decline.

Hold on tightly

That’s the opinion voiced by several commissioners at a recent Haywood County Commissioners meeting, where they expressed concern about what’s happening to the county’s lottery money.

Commissioner Bill Upton, who was formerly a principal and superintendent in the Haywood County school system, questioned school officials on the wisdom of using lottery funds to fix decrepit bleachers instead of saving the money in case it’s needed for teacher positions next year. Commissioners eventually approved the bleacher repairs, which had been flagged as a safety hazard by the school’s insurer for several years, but their reluctance to dole out lottery money on non-essentials was clear.

“The ballgame’s changed and that’s my big concern,” said Upton in an interview. “In the past, you know, you had to use lottery monies for projects and all. I think that’ll change.

“The unknown is what bothers me, and you hate to make decisions that will come back and hurt you this summer [when the state budget is set].”

According to North Carolina State Superintendent June Atkinson, a lot of districts around the state are thinking along the same lines. She said that few chose the option to use lottery money for teacher funding or other non-traditional uses last year. There were more hoops to jump through, including extra scrutiny at the local level, and there was still some federal funding available that gave many districts a buffer for state losses.

But this year, said Atkinson, those federal appropriations will be long gone, to the tune of $1 billion statewide, and the $3.7 billion hole at the state level is going to hit schools hard. This year, she expects many more districts to take the General Assembly up on any offer of unrestricted lottery funding they choose to make.

“In the leadership in our schools, people are making a concerted effort to stretch every dollar as far as they can go. When those federal dollars dry up, I’m sure school districts will be looking at those lottery funds,” said Atkinson.

However, she doesn’t think the lottery will ever become a staple to school funding — no matter how many restrictions are removed — because it’s just not enough to make up for what’s being lost.

“The lottery really is just icing on the cake,” said Atkinson, “because it is an unstable source of dollars. It changes based on the whims of people that buy lottery tickets … the percentage of the lottery dollars is such a small amount of money in comparison to the total amount [needed for school funding].”

And, just as in other retail sectors, those ticket-buying whims have been severely curtailed by the economy. Lottery revenue saw about a $44 million drop last year, and if those patterns continue, schools will have even fewer dollars to deal with.

But as for the money that’s left, Atkinson said she’s confident that lottery funding in the future, at least in the short-term, will surely be re-routed to needs other than capital projects, which would leave the state’s school facilities languishing.

Feeling the budget squeeze

Nolte said they’re already experiencing that squeeze in Haywood County.

“We swallowed very hard and did not do a building replacement at Waynesville Middle because we knew we might need that fund for schools or teachers,” said Nolte. That decision, he added, was pretty unpopular.

But they’ve been told to brace for a 10 to 15 percent cut from the state this year, so they’re hanging onto what they’ve got.

Nolte said he knows people might look at Haywood’s past lottery decisions as questionable, but would counter that argument by pointing out that the school system has long been recognized as fiscally responsible, running every project on time and on budget.

“I know that people want to make the arguments of bleachers versus teachers, or they want to make the argument of athletics versus academics, or they want to make the argument of don’t do anything to buildings, just keep people in jobs,” said Nolte. “But I hope people understand that we make the best decisions we can make with the information we have at the time.

“It’s real easy to second guess, and I just hope that people understand that we’ve got a long history of making very good decisions when it comes to capital expenditures. We’re taxpayers too, so we want to be very prudent with the revenues that are allocated to the school district.”

Statewide, Superintendent Atkinson hopes that lottery funds will help schools survive, but concedes they are a band aid on a hundred bullet wounds, and schools will have to shore up for a hard hit that’s coming soon, prioritizing student success over all else in the face of a bleak financial future.

“We’re at the point where we can’t make cuts without harming students. North Carolina ranks about 42nd in the nation as far as school funding. We’ve mad a lot of progress, and I just hate to see our not being able to continue that progress,” said Atkinson. “Money does matter.”

Staff Writer Quintin Ellison contributed to this report.

With the GOP takeover of the state General Assembly, lottery money and how schools use what they’re given will come under new scrutiny.

“I wouldn’t have voted for a lottery, but it is the law now and it needs to be done properly,” said Jim Davis, an incoming freshman Republican senator from Franklin.

Davis unseated Democratic incumbent Sen. John Snow in November, helping Republicans — for the first time in more than a century — take control of the House and Senate.

“I think the research will show the poor counties have a higher per-capita lottery purchase, and those people can’t afford (to play the lottery),” Davis said. “But it is here now.”

Davis, a former longtime Macon County commissioner, is an unwavering, unapologetic supporter of local control. Though Davis said he finds Haywood County’s decision to use lottery money for football stadium upgrades difficult to rationalize, “if the school board wants to do that and commissioners OK the choice, they ought to be able to do that.”

Incoming state senator Ralph Hise, R-Spruce Pine, said he would support allowing schools to use their lottery funding for items other than capital improvements again this year.

“I wouldn’t just limit that to lottery funding,” Hise said. “I think that we have to give local school boards more options in using their funding. We know the level of cuts, and as we get more specific information, we hope to be able to give as much flexibility to state departments and others with their own budgets.”

That would be a welcome change to Macon County Schools Superintendent Dan Brigman.

“I would love to have more lottery dollars,” Brigman said. “The formula definitely needs to be revised.”

Money from the North Carolina Education Lottery is divided among school districts based on enrollment. Counties with a higher tax rate used to get a higher percentage of lottery money, meaning Western North Carolina with its historically low tax rate got penalized. That was changed by the General Assembly two years ago.

— By Quintin Ellison and Colby Dunn

This fall, while Haywood County students are focused on homework, football, the opposite sex and the many other preoccupations of youth, their teachers and administrators are mapping a plan to make them more successful and competitive when they leave Haywood’s hallowed halls of learning.

2010 is a year for Long Range Strategic Planning in the school system, and if you gave only a cursory glance to the state of schools in North Carolina, you’d think they have their work cut out for them.

Haywood County Schools alone have seen $5.2 million in funding cuts since January 2009. Instead of increasing teacher assistants as planned, they are losing them left, right and center to lack of funding, struggling to keep hold of the 68 that remain. Meanwhile, the economy outside the school budget has worsened as well, and more than half of Haywood County students are now eligible for free or reduced lunch, a measure the school uses to gauge poverty levels among its students.

But Assistant Superintendent Bill Nolte said he doesn’t look at it like that. He knows that the increase in poverty and need among students and the decrease in funding is — and will continue to be — a challenge.

“We know our population is changing,” Nolte said “We know that our free and reduced lunch rate has changed about 10 percent in the last 11 years.”

But he’s also optimistic that the changes that have happened since the last long-range planning sessions in 2005 have not all been for the worse.

“The world really is different,” Nolte said. “I mean we’re changing at a very rapid rate. It’s just amazing. When these recommendations were made (in 2005) I had dialup at my house and could not get cable. I hope the (new) recommendations are different, because we don’t want recommendations for 2010, we want people to think about ‘OK, what’s it going to be like in 15 years or 17 years and what should we be striving for?’”

To do that, Nolte and his team have identified five areas they want to plan for, and then called on the community to help them map out the steps to get there in the long term.

The school system asked anyone who was interested — parents, community leaders, business people and just interested residents — to volunteer for committees that would spend anywhere from weeks to months suggesting what they think schools and students need to be doing in the future.

They try to stay within the state objectives and keep the school’s mission statement in mind, but Nolte said school administrators try to give the committees free-rein in dreaming up their recommendations, hoping to stir up innovation and creative thinking that wouldn’t happen under strictly-imposed guidelines.

But Knox Hardin, the school system’s testing director and co-chair of the committee tasked with producing globally competitive students, said that the state of affairs in the county, state and nation has put something of a damper on how far recommendations can go.

“Five years ago, we were not in the economic situation that we’re in now,” said Hardin, who co-chaired a similar committee during the 2005 planning process. “We have been asked to try and at least give half of our recommendations that we make that would not be dependent on funding. Five years ago, we could look pie-in-the-sky.”

Besides wholesale changes in the economy and the system’s funding base, this year’s plan will likely be vastly different from 2005 because the school system itself is moving in a new direction. Just over two years ago, the system adopted a new mission that places passion and productivity at the heart of all they do. And Nolte hopes that the committees will keep this in focus when they’re looking into the future.

“One of the things we talk to (the committees) about is as you’re developing recommendations, please remember our missions,” said Nolte. “Is this something we would fight for, lobby for, advocate for, spend for? Is it a productive way to do it? Does it promote student success in some objective measure that we have for students?”

Looking back at the 2005 recommendations, some did clearly fit those criteria. Out of 20 recommendations that the school system adopted, it only fully achieved nine, which included a major reduction in dropout rates, gym remodels at both Pisgah and Tuscola high schools, and beefing up technology education, both in quantity and quality.

Two of the recommendations — increase teacher assistants in grade K-3 and build an additional middle school — weren’t met at all. In fact, they actually lost teacher assistants and are struggling to keep the ones they have, although Nolte said this is simply a matter of money, or the lack of it.  

Of the other nine goals, all were met partially, but to varying degrees. Some, like activity bus replacement, were halted with the budget drop. Others, such as computer, router and server replacement have been nearly met, with a good computer replacement cycle in place with only a lag in server replacement.

Still others, however, were sort-of met but lack a good bit before they could credibly be called successful. For example, the directive to provide staff development focusing on the Spanish-speaking population included only one summer “staff development” and a 30-minute refresher course, with a few “scheduled meetings” tacked on for good measure.

Hardin said that now, when the committees meet, they look back at these, assessing where they succeeded, where they failed and what failures should be tackled again.

“The ideal goal is to come up with suggestions that can help improve academic performance and have future-ready graduates that are ready to go into the workplace or ready to go into the next step beyond high school,” Hardin said. “We need to have our kids prepared to do the best at whatever they do when they leave school.”

Nolte echoes this sentiment, saying that he hopes the plan will provide a path towards making all of Haywood County’s schools better in what may continue to be very tough times.

“The recommendations are a real, tangible guiding beacon. They give real direction to your decision making,” said Nolte. “We really do believe that everything’s important. We really do believe that you’re not a great school system if you only do one or two things well and other things are really crummy.”

Thanks to a collaborative project called WNC EdNet, high-speed Internet will become a reality for all public and charter school classrooms in Cherokee, Clay, Graham, Jackson, Macon and Swain Counties, along with the Qualla Boundary.

WNC EdNet recently got the go-ahead to connect The Highlands School — the last remaining school to join the regional network.

As late as 2000, schools in Western North Carolina could only transmit 1.5 megabyte per second. Now, schools with fiber can enjoy 100 megabyte per second connections.

Once these high-speed connections are in place, star pupils from far-flung schools can join together in a virtual classroom to take advanced courses that aren’t normally offered at their own schools. Live video will allow for face-to-face interaction between students and teachers.

“It’s not like an online class,” said David Hubbs, CEO of BalsamWest FiberNET, which implemented the WNC EdNet project. “You’re speaking to or interacting with a teacher in real time.”

Linking up to the state network creates access to The North Carolina Virtual Public High School, which already offers 72 courses including Advanced Placement and world language classes.

The widespread reach of fiber across North Carolina to even the most rural schools holds the promise of creating a level playing field for students, according to Bob Byrd WNC EdNet project manager.

“That’s our big push now, to narrow that digital divide,” said Byrd.

Moreover, fiberoptic technology makes professional training more readily available for teachers. Once colleges are hooked up to the statewide K-12 network, student-teachers at Western Carolina University or other colleges may observe teachers in actual classrooms without interrupting lessons.

Being on the same fiber network also decreases overhead for school systems, which only have to pay one Internet bill for all their schools, Hubbs said.

Jumping hurdles

The WNC EdNet project has traveled down a long road to get to where it is now.

Nearly 60 schools have been hooked up to their central office in the county via a fiberoptic line, which makes broadband Internet possible and also provides an important backbone for communication between the school district office and individual schools.

A separate project by a nonprofit called MCNC is in turn connecting these school district offices to a statewide fiber network, the North Carolina Research and Education Network. Now, MCNC is also working on linking colleges up to the state network.

WNCEdNet piggybacked onto the larger BalsamWest project, which has installed hundreds of miles of fiber underground to promote economic development in the Western North Carolina.

The mountainous terrain was a major obstacle BalsamWest had to overcome while installing equipment underground.

“The very things that we love about our rural area create challenges for technology,” said Hubbs.

Constructing in the remote area between Cashiers and Highlands was another challenge. BalsamWest had to speak individually to every property owner to get permission to build.

“We had more private easements between Cashiers and Highlands than we did everything else put together, over 300 miles,” said Hubbs. About 15 grant applications had to be submitted to lock down funding for the $6.1 million WNC EdNet project. The project was partly funded by the Golden LEAF Foundation, which chipped in $2.2 million, and the Cherokee Preservation Foundation, which contributed $1.7 million.

Even with 12 different partners — including Southwestern NC Planning & Economic Development Commission, the Western Region Education Service Alliance, seven school districts and three colleges — WNC EdNet was smoothly coordinated.

A similar project in eastern North Carolina had failed due to infighting, according to Leonard Winchester, chairman of the WNC EdNet technology committee.

WNC EdNet coordinators were asked to come to Raleigh and explain how their particular project ended in success. Winchester said cooperation was key.

“We had a group of people that trusted each other,” said Winchester. “That trust, you can’t give to somebody else.”

This deserves emphasis, given the central role that public education plays in North Carolina political debate: our schools have vastly more resources to work with than they did a generation ago.

By Bill Rhodarmer

I read with interest a recent column in a local news publication concerning the high cost of a college education and the debt often incurred by students and families — up to $50,000 for a four-year degree. In the column, the editor indicated that the only way to lessen the high cost and associated debt was for the state and federal governments to become more involved in controlling costs and providing more student aid.

I don’t bash public schools. My wife’s a teacher, my children have gotten a great education at these schools, and we’ve been able to solve every major problem that ever arose with a teacher.

By Michael Beadle

Central Elementary School capped its 10-year anniversary as an A+ school Friday, May 19, with students, parents, county leaders, school officials and school alumni joining in the celebration.

By Michael Beadle

When Lori McLeod first started teaching English as a Second Language at Tuscola High School in Haywood County, she had two students. They didn’t constitute enough to make a class, so she would pull them out of classes for tutoring.

By Sarah Kucharski • Staff Writer

They’ve said they want to strengthen the economy. They’ve said they want to help bring in higher paying jobs. They agree that doing it will require local schoolchildren to get the best education possible.