Lottery-funded scholarships would increase under proposal
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The measures sponsored by Sen. Steve Cohen would direct more money from state lottery revenues to the two programs.
Similar measures have passed the Senate before, but the previously hesitant House has indicated a willingness to go along this year, said Cohen, D-Memphis.
The HOPE scholarship measure would increase the award for full-time students at four-year schools from $3,300 to $4,000, and from $1,650 to $2,000 for full-time students at two-year schools.
The overall cost for the scholarship increase is estimated at about $30 million in the first year and $36 million after that.
Since starting in 2004, the lottery has raised more than a half-billion dollars for college scholarships, pre-kindergarten classes and after-school programs.
To qualify for a lottery scholarship, Tennessee high school graduates must have a 3.0 GPA or a 21 on the ACT.
Last year, awards for students at four-year schools increased by $300 to $3,300 and by $150 to $1,650 for students at two-year schools.
The other Cohen bill would direct unclaimed lottery prizes to after-school programs.
“The after-school program is a winner … ,” Cohen said. “It has proven to not only be excellent at educating the kids, but also keeping them off the streets after school.
“The alternative is to have the money to go for prizes for tickets that people buy and scratch off,” he said.
The bill was amended to set a maximum amount of unclaimed winnings that could go to the program.
“The concern was raised that what happens if a significant prize goes unclaimed … ,” state Comptroller John Morgan told the committee. “What would happen is an extraordinary amount of money would go into the after-school programs, but in the following year we wouldn’t expect that amount of money to go.”
The committee agreed to set an $18 million cap for the annual amount of unclaimed winnings that could go to the program, with the remainder slated for lottery reserves.
“That guards against the unintended consequence of a huge prize that goes unclaimed,” Morgan said.
Cohen sponsored the original legislation to create the state’s lottery and lottery scholarships.
The House has already passed the after-school measure, but would still have to approve the cap, while the companion bill to the HOPE hike has reached the House Finance budget subcommittee.