By Sarah Campbell
scampbell@salisburypost.com
SALISBURY — More than 600 Rowan-Cabarrus Community College students could be looking for a new source to fund their education.
The House-drafted state budget proposal would eliminate lottery scholarships for community college students, shifting that money to counties for school construction.
Lisa Ledbetter, the college’s director of financial aid, said 625 students received a total of $576,733 in lottery scholarships his academic year.
“These funds are distributed to needy students that are not eligible for a significant amount of federal grant funds,” she said. “It certainly would be missed.”
Gaye McConnell, vice president of enrollment management and student services, said the loss of the scholarships would likely force students to take out loans, leaving them in debt.
“With the move to student loans, our community college students will need to have increased financial literacy to understand the impact of student loans on their overall credit rating,” she said. “Students will also have to be aware of the repayment plans and the impact on their student loan ceiling, should they transfer to pursue a bachelors degree.”
McConnell said the RCCC Foundation is working to increase scholarships to students, but the number available by this fall will not be able to offset the funding lost by the elimination of the lottery scholarships.
“All in all the loss of this funding has a very negative impact on the community college students,” she said.
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Despite the House move to eliminate community college lottery scholarships, local school construction would still get just 23 percent of the lottery revenues.
Counties were originally promised a 40 percent slice of the pie for school construction, but lawmakers have tinkered with the formula. Last year, counties received 25 percent.
Rowan County Manager Gary Page said the county received $2.6 million in lottery funds in 2009-10. Although Page expected to receive the same $2.6 million in 2010-11, the county actually received $1.7 million in lottery revenue after Gov. Bev Perdue shifted the money to save teacher jobs.
“The county had to use $900,000 of fund balance money because we still owed the bank the money for the debt on the buildings,” he said.
Rowan County uses all of its lottery money for school construction to pay bond debt.
The $77 million in bonds that taxpayers approved in 2002 paid for the construction of Carson High School and Millbridge, Koontz and Shive elementary schools.
The county budget for 2011-12 includes $1.7 million in lottery revenues, but the proposed House budget would allocate about $1.4 million, Page said.
Page said there are several options to deal with that $300,000 difference. Commissioners can increase property taxes, Page can cut an additional four or five positions from the county payroll or the money can be taken from the county’s fund balance.
“I’ve got three options, but none of them are good,” he said. “In the beginning, the money was supposed to go to education, but systematically the governor and the legislators have used it to balance the budget.
“If it’s going to be a state lottery, they need to call it a state lottery and stop calling it an education lottery.”
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Page said he has sat down with Rep. Fred Steen, R-Rowan, and Rep. Harry Warren, R-Rowan, to discuss how the proposed House budget will impact the county.
“We need to try to be partners with them and try to figure out solutions as we go forward with budgeting,” Steen said Friday. “We hear them loud and clear and we’re trying to take care of it.”
Steen said he hopes Senate leaders will be able to come up with a way to get the lottery formula closer to its original form, which called for half of net proceeds to go to fund teacher salaries to help reduce class size, 40 percent to local school construction and 10 percent to need-based college scholarships.
“The pie was cut up perfectly when it started,” he said. “Now, counties have got this debt, they have allocated money and they have counted on that money and we are pulling the rug out from under them.
“I voted against (the lottery) because I felt like it would be somebody’s slush fund and that’s what it has turned into.”
Rep. Tim Moore, R-Cleveland, who proposed the elimination of community college scholarships to support school construction, has said he didn’t realize the potential harm to community college students until after the budget vote. He expects some changes in the Senate version of the plan.
The Associated Press contributed to this report.
Contact reporter Sarah Campbell at 704-797-7683.