HOPE will continue, but it won't resemble the college scholarship students and their families have come to expect.
Gov. Nathan Deal is expected to sign House Bill 326 next week. What was once a simple concept -- earn a 3.0 and get all tuition covered -- gets more complicated.
Q. Will HOPE cover all tuition?
A. Not for most students. Only for valedictorians, salutatorians and those who graduate high school with at least a 3.7 GPA and a 1200 SAT (math and verbal sections only) or 26 ACT score will see all tuition covered at public colleges. They must maintain a 3.3 in college to keep the award. About 10 percent of HOPE recipients would be eligible, Deal said.
Students with at least a 3.0 will still get HOPE, but the amount will vary each year. The award would be tied to lottery revenue, not tuition rates. For this fall the award will cover 90 percent of current tuition rates, meaning it won't take into account the double-digit tuition hikes expected at some campuses.
For example, HOPE students attending the University of Georgia this fall could expect $6,363 for two semesters -- 90 percent of today's tuition. If tuition increases by 16 percent, as it did this year, the scholarship would only cover 78 percent.
With tuition increasing annually, critics worry HOPE may only cover half in 10 years. Supporters say the percentage could increase, depending on how the lottery performs.
Q. What about money for books and fees?
A. It's gone. This money was going to start disappearing July 1 anyway because of earlier action lawmakers took to cut costs if reserves got too low.
Q. What happens to students on "fixed for four" tuition?
A. "Fixed for four" guaranteed students they'd pay the same tuition for four years. The state Board of Regents stopped this program in April 2009 because of cuts in state funding, but they grandfathered in students who were already on it.
Of the nearly 45,000 students who will be on it next fall, about 11,920 are expected to receive HOPE. All their tuition will be covered because 90 percent of current rates exceeds what they're charged. They won't keep the extra money. The bill says the award can't be more than tuition.
Q. Why won't lawmakers grandfather in current HOPE students?
A. They considered a grandfather clause but rejected it because it would cost about $180 million, said Rep. Doug Collins, R-Gainesville, one of the bill's sponsors.
Q. What about college students on HOPE who meet the Zell Miller Scholarship criteria?
A. Those students would see all tuition covered, but they would lose the money they used to receive for books and mandatory fees.
Q. Can students regain HOPE if their grades drop?
A. Yes, but they have one chance to lose and regain it. They used to have unlimited chances.
Q. What happens to students attending private colleges?
A. The $4,000 award drops to $3,600. Students who qualify for the Zell Miller Scholarship get the full $4,000.
Q. What happens to students in the Technical College System of Georgia?
A. They face the same changes to HOPE, but also have new requirements. They will have to earn at least a 3.0 in college to keep HOPE. They don't have a grade requirement currently, although in practice students must maintain a 2.0. About two-thirds of HOPE students in technical colleges have a 3.0.
Also, students who already have a post-secondary degree would be ineligible for the HOPE grant. About 2 percent of students on the grant have a bachelor’s degree or higher.
Q. Why do they have to change HOPE?
A. It's going broke. The scholarship is funded by the Georgia Lottery and revenues have been fairly flat. The state spent nearly $150 million out of $1 billion reserves to cover HOPE in the 2010 fiscal year and, if no changes are made, will need to spend more than $500 million from reserves for this fiscal year and next.
Q. How does the bill change pre-k?
A. It doesn't include pre-k because it is not a statutory program. Deal's latest plan would cut the pre-k school year from 180 to 160 days and add 2,000 seats.
Q. Will HOPE cover remedial classes?
A. Not for students in the University System of Georgia. It will for the Technical College System of Georgia.
Q. Why must high school students take certain courses to get HOPE?
A. Since the scholarship won't cover remedial courses in the university system anymore lawmakers want students to be better prepared by taking more rigorous classes in high school. The classes are: advanced math (trigonometry, math III, advanced algebra, etc.), advanced science (chemistry, physics, biology II, etc.), advanced foreign language or Advanced Placement or International Baccalaureate courses in core subjects.
This requirement starts with incoming high school freshmen, the May 2015 graduating class. They will have to take at least two of these courses. Those who graduate in 2016 will need to take at least three and the class of 2017 will need at least four.
Q. Why don't they order the lottery to give more money to education?
A. Critics say more needs to be done here. The Georgia Lottery typically awards more than $2 million a year in employee bonuses. The bill says bonuses can't exceed 1 percent of the net increase over the prior year's deposit into education accounts. Also, there can't be bonuses if there was no net increase in deposits.
In the 2010 fiscal year the lottery deposited $884 million to education accounts, according to financial reports. That's a $12 million increase over the previous year, so under the bill bonuses would be limited to $120,000. The bill decreases the commission paid to lottery retailers from 7 percent to 6 percent.
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