NASHVILLE — Tennessee lawmakers broke a two-year impasse over lottery-funded college scholarships late Wednesday, approving an ambitious $28.1 million plan that makes it easier for students to maintain their HOPE scholarships while expanding opportunities to thousands of others.

The House voted 92-2 and the 33-member Senate voted unanimously to approve a conference committee report hammered out over two days by legislative leaders. The legislation now goes to Gov. Phil Bredesen for his consideration.

“Almost 12,000 students will be given opportunities through this,” said Senate Education Committee Chairman Jamie Woodson, R-Knoxville, who played a key role in fashioning a compromise.

Some lawmakers questioned whether leaders are relying on overly optimistic projections in lottery growth and interest earnings on some $350 million in excess lottery funds.

“It’s the growth I’m concerned about ... as gas prices remain high they’ll buy less lottery tickets,” said Rep. Phillip Johnson, R-Pegram.

But Rep. Eric Swafford, R-Pikeville, and Rep. Brian Kelsey, R-Germantown, were the only ones among 132 lawmakers who voted against the legislation.

In other action, lawmakers worked into the night to conclude their legislative session. Senators voted 32-1 to pass an estimated $27.7 billion state budget for 2008/2009. With revenues plummeting, the appropriations bill cuts Gov. Phil Bredesen’s original spending plan and slashes the state’s work force by 2,011 people.

For complete details, see tomorrow’s Chattanooga Times Free Press.