Controversy Surrounding North Carolina State Lottery

MARCH 24, 2006 -- There's more controversy surrounding the North Carolina lottery. Smaller counties say they're getting short-changed when it comes to potential profits.

A tax formula is keeping 40 counties from receiving full profit from the state's education lottery. Pender, Brunswick and New Hanover counties fall in that category.

It's all based on something called an effective tax rate.

Even though full lottery profit would not cover everything needed in Pender County Schools, officials say they will lose a significant amount of money because of this tax figuration.

They want this formula re-evaluated. Many counties are petitioning their legislators hoping they'll get the tax formulation changed.

Reported by Nicole Ferguson