While many citizens have become familiar with the games offered by the S.C. Education Lottery since its Jan. 7, 2002, launch, it is even more important that South Carolinians become familiar with how their lottery dollars are being distributed throughout the state’s education system. Since its inception, about $379 million in lottery proceeds have gone to South Carolina education.

The S.C. General Assembly has appropriated, in the budget for fiscal year 2004, $215 million of lottery proceeds for education-related expenditures, to be spent in these ways:

• Lottery-funded K-12 programs. These make up $72.5 million of the total lottery funds distributed for the current academic year. This appropriation includes increased funding for the Education Accountability Act and will include money to make needed repairs and replacements to our state’s aging school bus fleet.

Most importantly, the General Assembly provided funding for much-needed enhancements to our state’s K-5 academic programs by working to improve teaching and student achievement in mathematics, reading, science and social studies.

Some of the programs funded, for example, will employ literacy, mathematics and science coaches, or work to increase K-5 teacher knowledge of subject matter in areas of mathematics, reading, science and social studies.

Additionally, every school district in South Carolina is granted $40,000, plus $100 for every student who is enrolled in K-5 academic programs during the current fiscal school year. The General Assembly also provided for school districts to receive additional funding based on the number of grade levels that measured below average during the previous school year.

• Lottery-funded scholarships. An educated workforce is the key for establishing South Carolina as a focal point for industry and commerce in the 21st century. The General Assembly established a total of $93 million for scholarship and grant money for college students. Three scholarships are funded by the lottery. They are the HOPE, LIFE and Palmetto Fellows.

These already have become highly competitive and apply to all public and private institutions in South Carolina. Additionally, lottery funds provide free education to students at our state’s technical colleges and student loan repayment for our troops in the National Guard. More than 100,000 students are attending college on lottery scholarships.

• The endowed chairs program. The endowed chairs program was created for South Carolina’s three research universities: Clemson, the Medical University of South Carolina and the University of South Carolina. The $30 million program will assist our state in meeting its economic development and research goals. This endowment requires matching funds be raised by the universities.

The creation of these endowed chairs should attract and retain the best talent at our research institutions. This foundation will work to help develop South Carolina into a true engine of the high-tech research and technology-based economy.

• Local libraries. The General Assembly has appropriated about 37.3 cents per person in our state to go toward cooperative efforts to improve technology with libraries, schools, local colleges and universities as well as local units of government. This will further nurture the development of education.

• SCETV digitalization. The General Assembly was faced with a number of difficult decisions regarding the lottery during the year of its inception. It also was faced with the possibility of ETV shutting down because of not having the capital for digital conversion of its television network. This lack of funding would cut off access to education programming in our state’s classrooms. The lottery and our General Assembly were able to work together to provide the funding to save educational opportunities for the education community in South Carolina.

Since the lottery was created, the amount of money directed toward education has increased steadily. The distribution of those funds is decided solely by the General Assembly, when it faces the task each year of writing our state’s budget. The lottery commission and its staff are dedicated to providing the necessary revenue to fund the education programs and initiatives that are so badly needed in our state.

Mr. Smith is chairman of the S.C. Education Lottery Commission.