Staff Report. January 26, 2012. RALEIGH – The N.C. Education Lottery (NCEL) has made its second transfer of lottery revenues to the state for fiscal year 2012, providing for education an additional $111.6 million, the agency reported on Thursday.

The transfer, made today, brings the total amount earned for education during the 2011-2012 fiscal year to $226.5 million, and the total to the state since the lottery started on March 30, 2006 to more than $2.2 billion.

This transfer includes money earned from ticket sales and from unclaimed prizes in the second quarter of the year, Oct. 1, 2011 through Dec. 31, 2011. As of Dec. 31, lottery ticket sales for the first six months of the fiscal year were $748.5 million, up 11.4 percent compared to the same time period in fiscal year 2011.

Alice Garland, executive director of the N.C. Education Lottery, said if the strong sales continue in the second half of the fiscal year then the lottery will be on track for another record year in sales and for the contribution it makes to education programs.

Garland attributed the increase in sales to growing popularity of lottery games as North Carolinians become more familiar with them and to an increase in the number of lottery retailers. The number of lottery retailers passed the 6,700 mark in the second quarter as Ingles, a popular grocery store chain in Western North Carolina, began selling lottery tickets at 92 of its retail locations.

“Strong performance from our instant tickets, the continued growth in retailers who want to sell lottery tickets and the addition of a mid-day Carolina Pick 4 drawing were keys to our growth,” said Garland. “It all adds up to more money for teacher salaries, more school construction money, more money for college scholarships and financial aid, and more money to give four-year-olds a strong start at school. Those are all good causes for us to serve.”

Legislators decide how lottery dollars are distributed. This year, based on the state budget for fiscal year 2012, 51.9 percent of the money will go to teacher salaries in grades K-3, 23.5 percent to counties for school construction or repair projects, 14.8 percent to prekindergarten programs for at-risk four-year-olds, 7.2 percent for college scholarships based on financial need and 2.5 percent for the UNC Need-Based Financial Aid program.

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NCEL net proceeds are used for prekindergarten programs for at-risk four-year-olds, reduction of class size in early grades, school construction and need-based college scholarships. For prizes of $5,000 and greater, 25% federal tax and 7% state tax are automatically withheld.

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