Senate Finance Committee approves plan to provide more scholarship opportunities for Tennessee students with excess lottery funds

(NASHVILLE, TN, May 7, 2008) -- Approximately 13,254 students would receive more opportunities to receive lottery scholarship funds under legislation sponsored by Senate Education Chairman Jamie Woodson (R-Knoxville) and approved by the Senate Finance Committee.  The bill, which passed by a vote of 7 to 3, would extend the 2.75 GPA requirements for students to maintain the HOPE Scholarship through the end of their junior year.  It also provides scholarship opportunities to non-traditional students, military veterans and dependents, those who are dually enrolled in college and high school, and foster children.

Currently, there is $461.8 million in the lottery reserve account, of which $50 million must be kept in savings under current law.  The General Assembly also benefits from ongoing net revenues of an estimated $11.4 million more than is needed to continue the current programs funded by lottery proceeds.    

“I am very pleased that we have been able to put together a fiscally responsible package that will help over 13,000 students receive scholarship money,” said Woodson.  “We spent many hours looking at the best way to distribute these dollars to affect the most students and this plan meets the high standards we set out to achieve.  It by far impacts the most students with the dollars that we have available to us.”

The bill would set aside $349.5 million to create an interest bearing endowment fund, which together with the $11.4 million will fund all the proposals in the bill, including one for TSAA need-based grants.  TSAA is Tennessee’s primary need-based student assistance program.  Almost all of these students, or 90 percent, have family incomes below $30,000.  The endowment fund would provide $10 million to issue these grants. 

“The grants for non-traditional and need-based students are key provisions in this legislation,” Woodson added.  “Tennessee's educational attainment ranking is 43rd in the nation.  We cannot catch up with the national average by serving traditional students alone.  We must reach out to non-traditional students which will enable Tennessee to supply a workforce capable of attracting businesses and enhance economic development.” 

Some of the other highlights of the plan includes:

• Continues funding of $25 million for Pre-K

• extends the 120 credit hour-limit to five years in order to accommodate any hours lost due to transfer, change of major, or in cases of majors requiring more than 120 hours of credit

• removes home school requirement of two years

• allows dependents of religious workers who are from the state but who are temporarily overseas to claim Tennessee for scholarship purposes

• gives students attending two-year institutions with housing the four-year award

• provides Civic Education Scholarships for exemplary students

• establishes a Laptop Pilot Program to help students access more online course opportunities

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