Since the adoption of Georgia's HOPE (Helping Outstanding Pupils Educationally) scholarship program, seven additional Southeastern states have adopted similar merit-based financial aid programs, most of which are also funded by state lotteries. This study examines why North Carolina after adopting a state lottery in 2005 did not allocate its…

This study analyzes the policy process through which two states determined education beneficiary programs of newly adopted state lotteries. Tennessee, in 2003, followed the regional pattern of allocating all lottery proceeds to merit-based college scholarships. North Carolina, in 2005, bucked this trend by allotting no lottery revenue for merit…