Merit Aid in North Carolina: A Case Study of a “Nonevent”

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 proceeds for a merit scholarship program. This in-depth case study considers the explanatory power of a revised multiple streams model and the integrated diffusion model by analyzing data collected through elite interviews and archival documents. The study findings suggest that internal determinants, such as North Carolina’s educational and economic context, trumped regional diffusion trends and that the multiple stream model’s “black box” influences, such as political tactics and gamesmanship, provide the most conceptually compelling explanation for why merit aid became a “nonevent” in North Carolina. Indeed, by considering decisions and nondecisions, researchers may capture a broader array of state-level characteristics that influence policy adoption.