The HOPE (Helping Outstanding Pupils Educationally) Scholarship program has been called the state’s brightest jewel, most valuable gem and its most unique treasure. The scholarship is a tool that helps attract Georgia’s best and brightest students to in-state colleges. It is a vital economic development tool and it is necessary to keep Georgia’s post-secondary education competitive with the rest of the nation. This is why we are diligently working to craft a sustainable solution to the funding problems currently threatening the program.
The HOPE program is funded entirely by the proceeds from the Georgia Lottery Corporation. According to the Georgia Student Finance Commission, HOPE expenditures will exceed lottery funds by $243 million in 2011 and by $317 million in 2012. The program’s financial distress coupled with the state’s economic struggles is a recipe for disaster unless we act now.
There are several reasons for the timing of this crisis. The HOPE program has been underfunded by the Georgia Lottery Corporation for years, college tuition has dramatically increased, and the number of participants in the program has grown. State law suggests that 35 percent of lottery proceeds go to funding the program but the law also allows some flexibility if this threshold is impractical with respect to that year’s proceeds. The Lottery Corporation has sole discretion over what it considers to be practical. Last year, only 24 percent of lottery funds were contributed. The corporation argues that the program is so successful because the majority of lottery funds go back to the players as prize money.
I believe it’s time to reign in an organization that has, intentionally or unintentionally, taken advantage of its independence. Currently, Georgia lottery players buy more tickets than almost any other state in the Union. We are 2nd in the country in total sales. Inversely, we are 34th in the country in the amount of revenue which is deposited to its intended cause, in our case, HOPE. The Georgia Lottery is held to high expectations set by the people of Georgia and it’s time the corporation is made accountable to those expectations. Increasing transparency, accountability and oversight are all options that we’ll look at as we move through the legislative process.
Surging tuition prices have also placed a huge burden on the HOPE program. From Fall 1999 to Fall 2010, the tuition rates have increased by about 94 percent. Because HOPE pays for the entire cost of tuition, any increase is a major factor in the program’s financial crisis. The largest drain on HOPE resources is the increasing number of participants. In 2000, awards were handed out to over 300,000 but the projected number of awards for 2011 is 580,000. Increased eligibility and awards, together with the country’s economic recession, have led to tremendous jumps in enrollment and participation in the scholarship program.
As Chairman of the Senate Higher Education Committee, I called a meeting to facilitate the understanding of these complex issues for the members of the committee. Testimony was heard from stakeholders regarding their thoughts and suggestions for a sustainable solution. We heard from several of my colleagues in the State Senate, representatives from the University System of Georgia, the Georgia Student Finance Commission, the Technical Schools and also the President of the Independent Colleges of Georgia. While the suggestions differed, the goal was the same: to keep helping high-achieving students and their families afford college.
Many different ideas were discussed and these ideas will facilitate the drafting of forthcoming legislation. The important thing is that we are involving the interested parties and asking their help in forming legislation, and including them in every step of the process. Something must be done to save this scholarship program not just for next year, but for generations to come. We will be successful in this endeavor. Our success will require looking at every angle and considering every option on the table. Also, I’ll work diligently to ensure we keep the essence of the program in tact. I’ll continue to update you as any legislation is introduced and we analyze them in the Higher Education Committee.
Please don’t hesitate to contact me if you have any questions or concerns regarding HOPE, the budget or any other issues. As always, I’m honored to serve you, the 50th Senate District, this session and all year round.
Sen. Jim Butterworth serves as chairman of the Higher Education Committee. He represents the 50th Senate District which includes Towns, Rabun, Habersham, Stephens, Banks, Franklin, and Hart counties along with a portion of White County. He can be reached by phone at 404.651.7738 or by email at jim.butterworth@senate.ga.gov.
COLUMN
For Immediate Release:
February 4, 2011
For Information Contact:
Kallarin Richards, Deputy Director
Katie Wright, Communications Manager
katie.wright@senate.ga.gov
404.656.0028