Tennessee’s lottery scholarship program is now sending out more money than it’s taking in. Higher education officials are discussing the possibility of basing the HOPE scholarship on more than just academics.
At Governor Bill Haslam’s budget hearings, he asked the heads of the state’s university systems what to do about the lottery scholarship’s projected $17 million* shortfall. The chancellor of the Tennessee Board of Regents pointed out many of those who receive the $4,000 awards could afford to pay full-price for tuition.
Governor Haslam says something has to be done.
“At some point in time, either the revenue has to change, more revenue has to come in from the lottery or we change the formula. They mentioned a needs-based program. I don’t think we’re ready to go there yet. Let’s get another year or two to see if we need to react in a way like that.”
As for changing the lottery scholarship formula, lawmakers have talked about raising the GPA and ACT test score requirements. The legislature lowered the qualifications in 2008.
*The original version of this story incorrectly stated the projected lottery scholarship shortfall at $86 million, which is actually the funding need of the Tennessee Student Assistance Award, a separate need-based grant program. WPLN regrets the error.
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