“Measured Approach” Needed on Lottery Scholarship Tweaks: Haslam

Governor Bill Haslam says the state should tread cautiously when it comes to raising the bar for lottery scholarships. Some lawmakers are considering tightening student eligibility standards to save costs.

Right now the lottery scholarship program is running at a deficit, and if nothing changes it will run dry around 2024. Lawmakers are looking at requiring higher test scores or GPAs to qualify, while Haslam says the state should take a quote “very measured approach.”

“We are spending more than we’re bringing in, and we can’t keep doing that and kicking the can down the road, as they say. So I do think we should begin to come up with a way to address that sooner. I think having that savings account if you will – the rainy day fund – allows us to work toward getting one that is in balance.”

Haslam says his administration is looking at various possibilities, and is comparing Tennessee’s approach to peer states.

Democratic Senate Minority Leader Jim Kyle has argued (pdf) given the weak economy it’s senseless to make getting scholarships harder.

Both Haslam and a legislative task force expect to finish assessments by the time lawmakers convene early next year.

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Possible alternatives to scholarship cuts would be raising lottery revenues by allowing debit card purchases of lottery tickets, or by trimming reimbursements for vendors who sell lottery tickets.

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