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THE NAKED REALITY OF POLITICS: Much of politics is about money. But it's rare to see it so plainly stated in black and white: "We didn't give them money because we liked them," sweepstakes operator William George told the Associated Press. "We just knew they were powerful people up in Raleigh and they could get done what we wanted to get done. You give them your money and they're supposed to do what they say they're going to do." (More on the story below.)

TODAY IN POLITICS: The current State Board of Elections meets for the final time at 9 a.m. today before Gov. Pat McCrory's new appointees take office Wednesday. The board had planned to launch a formal investigation into the gambling money -- received by the governor, top GOP legislative leaders and some Democrats. But board members backed off the idea now that they are lame ducks.

AT THE STATEHOUSE: A House committee will consider a bill to limit pre-K programs, in part to children under the federal poverty line. The full House meets at 2 p.m. and will consider a controversial firearms bill to allow guns in restaurants and bars that serve alcohol. The UNC system is also opposed because it allows guns in cars on college campuses. The Senate will meet at 2 p.m. On its calendar is a measure to require a parent to report a child missing after 24 hours -- it is named after Caylee Anthony. Gov. Pat McCrory is attending two feel-good events Tuesday in Charlotte, first a YMCA prayer breakfast and then a Wells Fargo "Reading Above Par" event.

***More on the sweepstakes money, arrests at the legislature and Jamie Hahn death investigation below in today's Dome Morning Memo -- the place for North Carolina political news and analysis.***

The debate on a bill to neuter the state lottery hinged on one question Wednesday as a House panel considered the measure. "Do you really think the people of North Carolina are dumb?" state Rep. Mickey Michaux asked. "What you are trying to do here is regulate people's actions."

Michaux, a Durham Democrat, meant it as a serious question and Republican Paul "Skip" Stam said he considered it a good one. "It's variable," said Stam, a lead sponsor. "Even the smartest person given false information will act in a different way."

The measure -- dubbed "The Honest Lottery Act", or HB156 -- is aimed at limiting the N.C. Education Lottery's advertising and games, which the bill sponsors consider misleading. Stam agreed to remove a provision to change the lottery's name to the N.C. State Lottery because it would cost $6 million to rebrand.

McCRORY TO SIGN MEDICAID BILL, THREE OTHERS: Much like the bill to cut unemployment benefits, Gov. Pat McCrory will hold a private signing at the Capitol for a bill to block the expansion of Medicaid health care coverage to roughly 500,000, the majority of which are uninsured. The measure also blocks a state-based health insurance exchange and generated a heated debate in the N.C. General Assembly, where it passed largely along party lines. McCrory said the state is not ready for either part of the federal health care law at this point. The Republican governor will also sign the possum drop bill (HB66), a funding fix for group homes (SB4) and a measure to impose great penalties for protests that disturb military funerals (HB19) at 4:30 p.m.

TODAY AT THE STATEHOUSE: A House Judiciary subcommittee looks at a bill (HB156) to limit the N.C. Education Lottery's ability to advertise and offer new types of games, as well as take the word "education" from its official name. The issue is likely to split Republicans and Democrats, much as the original lottery vote did. Another House subcommittee will consider a measure to open campus police records held by private colleges to public inspection. The Senate Education Committee will take up two bills related to digital learning. Both chambers convene at 2 p.m. McCrory and state officials are participating in a hurricane drill Wednesday morning.

***Thanks for reading the Dome Morning Memo -- a must-read to start any day in the North Carolina political world.***

THIS WEEK IN POLITICS: The action at the legislature will resume full-speed this week with more intra-party fighting among the GOP on a bill to sweep clean state boards. An amended version is before the House for final approval and then goes to a reluctant Senate, setting up negotiations in conference committee. House Speaker Thom Tillis will hold a news conference Tuesday to outline plans for a voter ID bill, despite mixed messages that such a measure would not require a photo ID. Gov. Pat McCrory will make an economic development announcement Monday in Charlotte and Tuesday will host metropolitan mayors at the governor's mansion, a group close to his heart as the former Charlotte mayor. On Friday the N.C. Mining and Energy Commission meets amid legislative changes to speed the fracking timetable in North Carolina.

***Thanks for reading the Dome Morning Memo. This is Severe Weather Awareness Week, so declared by the governor, so go get a disaster kit. Send tips and items to dome@newsobserver.com***

THE MOST IMPORTANT POLITICAL STORY IN N.C.: The legal fight about the new political boundaries drawn by Republicans in the redistricting process is headed to court this week. A three-judge panelwill hear the arguments Monday and Tuesday after Democrats and groups fighting the maps filed suit contending they were unlawful. The new boundaries seal Republican power in the state legislature for the next decade and Democrats need a judicial reversal to regain strength.

TODAY AT THE STATEHOUSE: The House will focus on education this week, with local school superintendents from across the state invited to meet with lawmakers. House Speaker Thom Tillis will hold a 3 p.m. press conference to discuss "education week." The House and Senate convene Monday evening for skeleton sessions. No votes are expected.

***Good Monday morning. Thanks for reading the Dome Morning Memo. Find more political news and a weekend headline wrap below. And find out more information about the N&O's new iPad app, available for download now. (Programming note: Dome is not available on the app at the moment. Look for an upgrade later.)***

COLUMNIST -- CAN'T BAN POOR FROM THE LOTTERY: You got any dreams? We want them, too. That’s what comedian Richard Pryor swears his wife’s attorney asked him when they showed up in divorce court. That’s also what State Rep. Paul Stam is saying to welfare recipients in North Carolina by proposing a measure that would prevent them from playing the lottery.

***This is the Dome Morning Memo -- a digest of the political headlines and upcoming news in North Carolina. Click below to read more. ***

State lawmakers are discussing draft legislation that would prohibit lottery retailers from knowingly selling tickets to customers who receive public assistance, such as food stamps, or are in bankruptcy, Pat Gannon at the Insider reports. "We're giving them welfare to help them live, and yet by selling them a ticket, we're taking away their money that is there to provide them the barest of necessities," said Rep. Paul "Skip" Stam, R-Wake. He acknowledged it would be difficult for lottery clerks to know whether players get government help. But he suggested that in obvious cases, such as when customers pay for groceries with food stamps, they shouldn't be allowed to buy lottery tickets at the same time.

Former House Speaker Newt Gingrich opened his North Carolina presidential primary effort Wednesday, saying he planned to focus much of his attention in the coming weeks on a state that rescued the career of Ronald Reagan in 1976.

Faced with increasing calls for him fold his tent, Gingrich said he planned to stay in the contest in the hope of forcing an open convention in Tampa in August. "Romney is clearly the front-runner, but he has not locked down the nomination," Gingrich said in an interview, referring to former Massachusetts Gov. Mitt Romney. "North Carolina could play the same role of turning things around that it did in 1976 for Reagan." More here.

In other headlines:

--Gov. Bev Perdue called on a N.C. Central University crowd to call lawmakers to demand better funding for all levels of education.

--Medicaid payments for personal services will continue after the federal government gave the state more time to comply with rules.

Thanks to the addition of new games and more retail locations, the N.C. Education Lottery saw a 2.8 percent sales increase during the last fiscal year. Sales have increased each year since the lottery began five years ago.

Despite a steep decline in sales over the first five months of the year, March and the months following hit new sales records. Best sales week, best sales month and best sales quarter all fell during the past several months.

Ticket sales for the 2011 fiscal year, ending June 30, generated $446.9 million for state education programs and local governments.

“This success, during a tough economic year, can be tied directly to our determination to do the best we can for the cause we serve, education in North Carolina," Alice Garland, executive director of the Educated Lottery said in a statement.

Here's why writing North Carolina's budget is a little bit like that carnival game, Whack a Mole: just when you think you've solved one crisis, another pops up.

Last week, a last minute floor amendment to the House budget changed how the lottery funding would be divvied up. The amendment would eliminate the category called "Scholarships for Needy Students," worth $34.6 million, and move that money to public school construction.

But that scholarship category includes half of all state financial aid for community college students, said Scott Ralls, president of the community college system. "It creates a huge challenge for us because so much of our need-based financial aid has come through this source," he said.

And, Ralls said, if the amendment moves forward, "then community college students specifically would have zero access to the scholarships that come through the lottery program."

Another lottery scholarship category specifically for UNC system students would remain, but would be reduced.

The amendment, introduced by Rep. Tim Moore, a Kings Mountain Republican, passed by a large margin.

Community college tuition is considered a bargain in this state, Moore pointed out, and students can find other sources of financial aid.  But counties face a dire situation, he said; some won't be able to make debt payments on school buildings because of budget cuts.

"The impact would be more severe on the counties, frankly, in terms of their debt service obligations and ultimately in terms of school construction, if we don't protect that," Moore said.

So, in the ongoing Whack a Mole game, Moore said he hopes lawmakers can restore some of the scholarship money for college students while helping counties.

"I tell you," he said, "it's just a matter of just bad choices this year all the way around."