Georgia's popular lottery-funded HOPE Scholarship is struggling to keep its finances in the black, and it is certainly headed for cuts this legislative session, according to lawmakers.
Both Tennessee's and Georgia's lottery-funded HOPE scholarship programs are struggling to make ends meet as lottery ticket sales slow and education expenses steadily increase. Tennessee's program appears more financially sound as lottery sales grew this year.
But Georgia, with a much older lottery, still faces hurdles and almost certain cuts this year. The education programs pay for college tuition, prekindergarten, technical college tuition.
"We've got all these potentially growing demands, but there are only so many HOPE dollars that are going to be there," Rep. John Meadows, R-Calhoun, speaking a recent roundtable with Times Free Press reporters and editors. "It's either going to be spread thinner or you've got to restrict it."
In 2011, Georgia's HOPE Scholarship is projected to have a $270 million shortfall if changes aren't made and the deficit could grow even larger in future years. Estimates show the state depleting its HOPE reserves by 2012.
The situation is so dire, legislators may be forced to cap college and university scholarships, the signature portion of the HOPE program, for the first time since the lottery's inception in 1993.
"You've got to restrict the grant somehow," said Sen. Charlie Bethel, R-Dalton. "That is going to be part of this year's budget process. You've got to do all you can to preserve HOPE."
Earlier this month, in his first State of the State address, Gov. Nathan Deal warned that the HOPE scholarship and pre-K program could deplete the lottery's $521 million cash reserves by 2012 if legislators don't find more revenue or make benefits harder to obtain.
"HOPE is now on an unsustainable course," Deal said.
For complete details, see tomorrow's Chattanooga Times Free Press.