The North Carolina State Lottery was established in August 2005 when the North Carolina State Lottery Act and the 2005 Appropriations Act was signed into law. The North Carolina Lottery Commission was created to initiate, supervise and administer the education lottery through a 9-member commission team. Of the proceeds generated by the North Carolina State Lottery, 100% of the net proceeds go toward education expenses, to reduce class sizes in early grades, academic prekindergarten programs, school construction, and scholarships for needy college and university students. Of each dollar spent on lottery in North Carolina 7% will be given to retailers as commission for selling tickets. As much as 8% will goto administrative expenses. Of the remaining money at least 50% will be paid out in prizes and as close to 35% will be given to the Education Lottery Fund at the Office of State Budget and Management.