Sen. Tracy welcomes governor’s consideration of direct distribution of lottery reserves for K-12 schools

(Nasvhille, TN, January 11, 2008) – State Senator Jim Tracy (R-Shelbyville) said today he pleased that Governor Phil Bredesen is moving toward a more direct method of distributing lottery excess funds for K-12 school construction and capital outlay.  Tracy was the prime sponsor of legislation in the State Senate last year creating a system of grants for schools for K-12 construction from excess lottery funds. The governor had previously called for the money to be put in a pool and used as collateral to improve the credit ratings for K-12 construction loans.

 “I am looking forward to working with the governor to find a system that will provide a more direct access to meet the needs of growing school districts like those in our county,” Tracy said.  “I believe we can come to a consensus that will greatly benefit our school construction needs.”

The legislation sponsored by Tracy would require any funds that remain in the lottery account at the end of each fiscal year over $250 million to be deemed excess lottery funds and transferred to the special account for the purpose of K-12 construction.  All lottery funds deposited into the special account each year would then be available as capital outlay grants to each school district.  Tracy won approval of the bill in the Senate Education Committee and it is now pending action in the Senate Finance Committee. 

“My first priority is protecting the integrity of our lottery scholarship program for higher education,” Tracy added.  “We can protect and expand opportunities for students receiving the scholarship and still fulfill the purpose which is set out in the constitutional amendment that set up our state’s lottery.”

The constitutional amendment implementing the lottery made three provisions for use of funds.  Besides creation of a lottery scholarship fund, the people of Tennessee also approved the use of these dollars for K-12 construction, new Pre-Kindergarten classes and after school programs.  Tracy said K-12 construction was the only facet of the 2002 Constitutional Amendment creating the Tennessee Education Lottery yet to be enacted. 

“This would be a win-win scenario for the people of  Rutherford, Moore and Bedford Counties,”  he added.  “These lottery excess grants for K-12 schools would be a tremendous boost to help bring many schools in Tennessee into the 21st century.”

###