Sen. Chance: HOPE, Pre-K to take hits in tight budget

State Senator Ronnie Chance (R-Tyrone).

Local families depending on the state’s HOPE scholarship program will have to kick in a little bit more for their college students starting this fall under a proposal to shore up Georgia’s lottery-funded education programs in the midst of declining revenue.

The bipartisan legislation, announced Tuesday by Gov. Nathan Deal, also calls for a reduction in the state’s Pre-K program from a six-and-a-half-hour day to a four-hour day. This will be accomplished in part by removing “rest time” which is one of the eliminated hours, according to Sen. Ronnie Chance of Tyrone, one of Deal’s floor leaders in the Senate.

The proposal calls for the HOPE scholarship to cover 90 percent of each students’ tuition, whereas the program previously covered all of tuition for those maintaining a 3.0 grade point average. Also, HOPE funds will no longer cover books, fees or remedial classes.

The legislation was crafted to create a 100 percent HOPE tuition coverage for students who maintain a 3.7 grade point average or higher. Such students will be designated as Zell Miller Scholars, an honor named after former Gov. Miller, who was the creator of the HOPE Scholarship program.

Also the legislation will trim the sales commission paid to lottery retailers and cap bonuses given to lottery employees.

To help fill the gap created by the decrease in HOPE payments, the state is creating a low-interest loan program for students that will allow for the student loans to be forgiven if the student becomes a certified teacher and teaches in a public K-12 school in the field of science, math or engineering.

The legislation contemplates setting aside $10 million for those loans with the state securing another $10 million in funding.

Critics of the HOPE and Pre-K cuts are calling them “drastic” but Chance said that’s not the case, particularly since if the cuts aren’t made, the programs would cease to exist.

“The only thing that’s drastic is we have to save it,” Chance said. “... We’re trying to stretch HOPE so we don’t have to go through this again in a few years.”

Furthermore, the Pre-K changes will allow the state to create room for 5,000 more students, Chance said. That will cut the statewide waiting list by more than half.

“We’ve got to get to these kids early,” Chance said of the importance of the Pre-K program. “If we don’t get them in Pre-K, they’ll never be a HOPE recipient or a Zell Miller Scholar.”

“In 2010 the lottery gave more than almost $350,000 to its five highest-paid employees,” Chance said. “The lottery gives about $2 million in bonuses and we can’t sustain that. That’s absolutely crazy.”

Retailers who sell Georgia Lottery tickets will also feel some of the pain, as their commission on gross sales will drop from an average of 7 percent to a maximum cap of 5 percent.

“By just reducing that 1 percent saves $30 million,” Chance said.

Deal’s legislation also would limit the bonuses offered to Georgia Lottery employees to no more than 25 percent of their base compensation, and bonuses would be conditioned on an increase in net proceeds from the prior year that were transferred to the Lottery for Education account.

Chance said the bonuses and salaries paid to Lottery employees had been a significant concern of his, but he thinks the governor’s bill will address those problems.

Chance said he was particularly pleased that the bill has bipartisan support, as long-serving Rep. Calvin Smyre was one of several Democrats to support the changes along with House minority leader Stacey Abrams.

roundabout
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Are fees taxes.........

........is adding everything to sales tax that we don't tax now taxes?

After all, the percentage of tax stays relatively the same, we just apply it to everything we pay for!

Saw where the Georgia government is seriously considering adding what the sales tax applies to to just about everything we now don't pay taxes on.

All services and labor for instance. I'm not sure about doctors, hospitals and eye implant devices!

Have the TEAS and the right wing all died? Or, are they hoping we won't notice?

bad_ptc
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Declining revenue? John, check your source

Sales FY 2001, $2,193.8
Sales FY 2002, $2,400
Sales FY 2003, $2,600
Sales FY 2004, $2,710
Sales FY 2005, $2,922
Sales FY 2006, $3,177
Sales FY 2007, $3,421
Sales FY 2008, $3,520
Sales FY 2009, $3.663

"The Georgia Lottery began operating in 1993, setting a record at the time as the most successful startup lottery ever. It has followed up by increasing revenues in subsequent years."

http://www.lotteryinsider.com/lottery/georgia.htm

roundabout
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Another mis-understanding of math!

Eighteen years and a apples and oranges comparison!

Where are the total COL numbers for that 18 years?

How much more does it now cost to go to UGA than in 1993?

How much more of the sales now go to administration and other places than in 1993?

And on and on!

Just give the lady a million dollar bonus and then fire and hire another one. They move from place to place until the go to the Cayman's permanently!
Gambling is a hell of a way to support schools anyway.

Davids mom
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VISIONARIES
Quote:

Furthermore, the Pre-K changes will allow the state to create room for 5,000 more students, Chance said. That will cut the statewide waiting list by more than half.
"We’ve got to get to these kids early,” Chance said of the importance of the Pre-K program. “If we don’t get them in Pre-K, they’ll never be a HOPE recipient or a Zell Miller Scholar.”

Cutting education, regardless of program, is detrimental to the growth of our country and state - but at least the above quote gives me hope that our leaders in Georgia understand the importance of having an educated workforce. Some states/DISTRICTS have cut PRE-K.

Chris P. Bacon
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The Sad Decline of HOPE Scholarships

In 1993, the Georgia General Assembly issued the following directive:

Georgia General Assembly wrote:

It is found and declared by the General Assembly:
(1) That net proceeds of lottery games conducted pursuant to this chapter shall be used to support improvements and enhancements for educational purposes and programs and that such net proceeds shall be used to supplement, NOT SUPPLANT, existing resources for educational purposes and programs;

(emphasis added)

That was then.

This is Governor Nathan Deal's take on things (Jan 12 "State of the State" address)

Governor Nathan Deal wrote:

“With regard to our State budget, it must be adjusted to reflect the financial realities of today. My 2012 budget does not authorize HOPE expenditures beyond what the lottery produces; therefore, we must act now to maintain the Georgia jewel known as HOPE.”

One of the best programs to ever come out of the Georgia Legislature falls by the wayside....

Spyglass
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I agree Bacon...

The changes proposed will be tough on the kids who are Seniors/Juniors in High School.