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EDEN - As Superintendent Rodney Shotwell left his seat Monday night to address the Rockingham County Board of Education about school construction projects, board member Elaine McCollum said, "When he stands, he's getting serious."

Indeed, it was a serious, if not grim, moment for board members as they heard Shotwell tell them they could not build four new schools because of the loss of a key funding source: lottery funds that Gov. Bev Perdue took to help balance the state budget.

"We can't build anything," Shotwell told the board.

Perdue took $50 million from the lottery reserve fund and another $38 million provided to counties for school construction to help eliminate a $2.2 billion state budget deficit. The lack of these revenue streams cripples Rockingham County Schools' efforts to repay debt on old construction projects and start new ones anytime soon.

"So, really, we don't have an educational lottery, per se?" board member Steve Smith asked Shotwell.

Adding to the problem, Shotwell said, are two bills recently introduced in the state Senate that could make things more difficult for the Rockingham schools.

Senate Bill 2 seeks to have lottery proceeds distributed based on average daily membership. Those funds are now allocated based on membership and the county's effective tax rate, a formula Shotwell said benefits poorer districts such as Rockingham County.

Senate Bill 386 would temporarily allow for all state corporate income tax revenue to support the general fund.

Board members were upset not only over Perdue's decision to take the lottery funds but also how they say she handled it.

Smith said he was at Draper Elementary School on Friday, where the news had filtered down to staff. Draper is one of four schools that district officials planned to renovate or rebuild . "They communicated poorly," Smith said.

"You don't want to know what I've got to say about it," board member Tim Scales said.

The board voted 7-4 to send a letter to Perdue, the legislature and the N.C. School Boards Association detailing its displeasure over the seizure of lottery funds.

Draper Elementary Principal Tammy Heath said she had hoped to hear when her students and staff could expect a new building.

"We felt like that it was our time," she said.

Contact Jonnelle Davis at 627-4881, Ext. 126, or jonnelledavis@news-record.com