Options Exist for Increasing Lottery Proceeds for Education. Our Charge
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1 Options Exist for Increasing Lottery Proceeds for Education Jim Horne, Principal Program Evaluator 1 Our Charge Evaluate whether the Lottery is providing the maximum benefit to the State Operations Existing revenue-generating strategies Opportunities to reduce costs Report p. 2 2
2 Summary: Findings 1. NC Lottery s performance is slightly above average 2. Expanding retailer network could increase revenue 3. Reducing compensation paid to retailers could yield additional revenue 4. Additional options to increase revenue include authorizing VLTs and ilottery games online 5. Improved methods could help the Lottery measure influence of advertising expenditures on sales 3 Summary: Recommendations 1. Require Lottery to establish targets for retailer growth and to annually report on its achievement 2. Direct Lottery to examine retailer compensation structure and consider developing alternatives 3. Direct Lottery to provide business case for options to increase lottery ticket sales 4. Require Lottery to annually report on effectiveness of advertising expenditures on ticket sales 4
3 Meeting Current Standards for School Nurses Statewide May Cost Up to $79 Million Annually Sara Nienow, Principal Program Evaluator Our Charge Analyze the need for school nurses and determine how nurses are funded Current staffing levels Roles and responsibilities LEA and state funding Focused on traditional public schools; excluded charter schools and private schools Report p. 2 6
4 Summary: Findings 1. School nurse duties have increased in scope and complexity 2. North Carolina neither met the State Board of Education s recommended nurse-to-student ratio by its target date of 2014 nor is it meeting the current recommendation of one nurse per school 3. The two state-funded school nurse programs are only accessible to schools and districts that meet certain criteria 4. North Carolina s Medicaid program pays for nursing services provided in schools, but most LEAs do not seek reimbursement for Medicaid-eligible students 5. The State s education budget subsidizes health care costs when school personnel other than nurses perform health care services 7 Summary: Recommendations The General Assembly should direct 1. The State Board of Education to update the school nurse staffing standard 2. DHHS and DPI to prepare a plan to combine state-funded programs and implement acuity models 3. DHHS to examine the Medicaid rates for school nursing services 4. DHHS to request a Medicaid State Plan amendment to authorize Medicaid reimbursement for services on IHP or 504 Plans 8
5 Local Education Funding Dispute Resolution Process Is Effective and Economical, but Litigation Could Be Eliminated Sean Hamel, Principal Program Evaluator Our Charge Evaluate the process for resolving education funding disputes between local boards of education and boards of county commissioners Use Cost Alternatives Report p. 2 10
6 Overview: Findings 1. The dispute resolution process is used infrequently and seldom reaches the litigation phase 2. The process does not favor either party and may serve to improve future budgeting efforts 3. The cost of the process represents a fraction of total county funding for local boards of education, but litigation is costly and time-consuming 4. Opportunities exist to replace litigation with a default funding mechanism 5. Local boards of education maintain relatively large unencumbered fund balances 11 Overview: Recommendations The General Assembly should consider: 1. Revising state law for settling local education funding disputes to replace litigation with a default funding mechanism and 2. Establishing a working group to develop and recommend statutory parameters for fund balances maintained by local boards of education 12
7 Reducing Off-Season Crossings, Adjusting Fares, and Using Partnerships Can Improve Ferry Division Efficiency Chuck Hefren, Principal Program Evaluator Our Charge Evaluate the Ferry system with a focus on operations, savings, and fee structure optimization Cost savings Revenue enhancements Governance structure alternatives Contribution to the State s strategic transportation goals 14
8 Summary: Findings 1. The Ferry Division can save over $1.5 million annually by reducing the number of crossings on routes during periods of lower use 2. Annual fare collections on currently tolled routes can be increased by $1.7 million without adversely affecting area commuters 3. Using partnerships with other government entities and the private sector can reduce state funding requirements and improve the effectiveness of the ferry system 4. Development of a long-range plan provides an opportunity to take a systematic approach to identifying the most costeffective contribution of ferry transportation services toward achievement of the State s strategic transportation goals 15 Summary: Recommendations The General Assembly should direct DOT to: 1. Produce a long-range plan for the ferry transportation system to include: Consideration of alternative fare pricing and appropriate governance structures for ferry system activities Utilization of grant from the Golden LEAF Foundation for necessary support services Establishment of an executive team to oversee the process 2. Evaluate the schedule of crossings for each ferry route to ensure services cost-effectively meet the needs of both area residents and tourists 16
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