Catawba County schools to get $1.5 million in lottery funds

School systems in Catawba County recently learned they would be given a combined $1.5 million for two quarters of lottery proceeds.

Some of the money is funding the state withheld in February. Gov. Bev Perdue withheld second-quarter lottery proceeds, to ensure there was enough money in the state's reserves to pay state operating expenses and for payroll during the budget crisis.

"We didn't know when we'd get that money," said Rodney Miller, finance director for Catawba County. "On Friday, we got the second-quarter lottery funds. We were actually a little surprised, because the second-quarter funds were higher than what we were told (the state) was holding."

About 30 percent higher for each system. Newton-Conover City Schools will receive $94,088 for the second quarter, and $76,074 for the fourth quarter, which the state released to school systems on-schedule.

Hickory Public Schools will get $156,463 for the second quarter and $126,506 for the fourth quarter.

Catawba County Schools will get $583,138 for the second quarter and $471,488 for the fourth quarter.

The school systems are allowed to spend the money they receive from the lottery only on school construction. The state keeps the lottery money earmarked for the school systems until they have eligible projects, Miller said.

Tim Markley, superintendent for Catawba County Schools, said the school system's share of the lottery money would be used for projects that have already been completed.

"The funds were designated for prior projects," Markley said. "The county covered the projects, and the funds are being used to retire the debts for these projects at the high schools."

Catawba County Schools recently completed additions at Bunker Hill High, costing about $8.2 million; Bandys High, for about $6.1 million; Fred T. Foard High, for nearly $5 million and St. Stephens High, for about $700,000. In all, the renovations and expansions totaled nearly $20 million.

Newton-Conover City Schools hasn't decided what the lottery money will be used for. School system Superintendent Barry Redmond said there had been some discussion with county government that the money was to be used solely for debt retirement.

Miller said that hasn't been decided.

"That decision has not been made," he said. "The money is larger than expected. We haven't made plans for excess revenues."

Redmond said there are ways the system could use the money — the tennis courts unexpectedly needed some repair work.

Randy Isenhower, board chair for Newton-Conover City Schools, said although the board hasn't discussed any plans for the money yet, the middle school the system is planning to build is another capital need.

Hickory Public Schools Superintendent Lillie Cox said she would need to consult with County Manager Tom Lundy on what capital outlay projects the money could be used for.

Previous lottery funds have been used for renovation at Hickory High School.

Miller said Catawba County will continue to budget its money for schools cautiously, particularly in light of the state withholding one quarter's proceeds for several months.

"We're concerned that since it has happened once, it could be repeated, which is why we're cautious and don't obligate funds until we see them," he said.

However, he's happy Catawba County received more lottery money this year than expected. He credits N.C. Rep. Ray Warren as part of the reason.

"Rep. Warren really championed getting an influx of money to counties with an effective tax rate," Miller said.

The lottery penalizes counties with lower tax rates, giving higher allocations to counties with higher tax rates, Miller said. During the 2008-09 year, the General Assembly approved a one-time allocation to counties with effective tax rates at or below the state average to receive additional funds based on per-student allocations.