HOPE students’ book money may be cut

HOPE scholarship students could soon see their book money dwindle. State officials predict the cost of the HOPE and pre-kindergarten programs may exceed lottery revenue to pay for them in fiscal 2010, which begins July 1.

When that happens, a 2004 law will kick in, forcing the state to reduce — and eventually eliminate — the $300 grant for books that HOPE beneficiaries receive.

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“There may be a train wreck when expenses and revenue come together,” said state Sen. George Hooks (D-Americus), who sits on a lottery oversight committee.

A bill that would likely preserve the book grants, at least for a while, is expected to be debated Thursday in the state House. A similar measure passed last session, but was vetoed by Gov. Sonny Perdue.

It isn’t like HOPE and pre-kindergarten are broke.

The programs have mushroomed since the lottery was instituted in 1993 to pay for them.

HOPE has more than 200,000 recipients this year. The program also pays for about 80,000 children to attend pre-kindergarten classes.

HOPE provides tuition, book and fee money to university students with at least a “B” average. It also gives similar benefits to students at technical colleges.

The state runs one of the most successful lotteries in the country. The program has more than $960 million in reserve accounts.

But while the lottery continues to grow, expenses for HOPE and pre-kindergarten are skyrocketing.

Next year, for instance, Perdue is projecting a $55.8 million increase in HOPE and pre-kindergarten costs. During the first six months of this fiscal year, the lottery provided less than $4 million more to the state for education programs than it did during the same period in fiscal 2008.

Fearing that expenses would outpace revenue, lawmakers in 2004 passed legislation that said if the state has to dip into reserves to pay for the programs, the book allowance to students would be cut in half.

If it happened again, the book allowance would be wiped out. The third year, payments for fees would be cut.

Students could begin feeling the pinch in the fall of 2011, state officials said.

Georgia Tech student Sharon Pamperin of Cumming said she’d be “pretty disappointed” to lose her HOPE book money. Pamperin, a biomedical engineering major, spends as much as $400 a semester on texts. “Even one book might be $120,” she said.

Expenses are rising because more Georgians are attending colleges and technical schools. Some are attending because they can’t find a job and/or are choosing to update their skills.

In addition, universities and technical colleges are expected to raise their tuition this year to keep up with enrollment growth, and to make up for state budget cuts.

House Appropriations Chairman Ben Harbin (R-Evans) said the state shouldn’t be so quick to take book and fee money away from students.

Harbin has sponsored a bill that would trigger reductions in the book allowance only if lottery revenues fell substantially below the cost of the programs.

Harbin, whose similar bill was vetoed by Perdue last year, said he hopes this version will pass quickly to keep current law from kicking in next year.

“We’ve got to do something to try to soften the blow,” Harbin said. “Unless it’s a true emergency, we’ve got plenty of money in reserves. We don’t need to start snatching fees back from students.”

However, his legislation, even if it’s passed, may only provide a temporary solution.

Georgia Lottery CEO Margaret DeFrancisco told lawmakers Wednesday that while lottery sales continue to inch up even as the recession intensifies, it’s getting harder every year to raise more money.

She said during the first quarter of fiscal 2009, which began July 1, most of the 43 lotteries in the country saw sales drop or remain flat.

“Lotteries aren’t recession proof,” she said. “I don’t have any more $100 million silver bullets. We are at the apex of what we can do.”

The lottery board is considering a proposal to put video lottery terminals in a new redevelopment project at Underground Atlanta.

But nothing is assured, and Harbin said lawmakers have to hope ticket sales remain strong.

“We need people to go play the lottery,” he said.