New chancellor warns HOPE scholarship may need more cash soon

By

Posted 4:28PM on Wednesday, June 5, 2002

ATHENS - The HOPE scholarship is draining Georgia lottery funds and soon will need cash from the state's general fund, Georgia's higher education chief warned Tuesday. On his first formal visit to Athens, University System Chancellor Tom Meredith said the lottery-funded scholarships are in higher demand every year, while lottery revenues aren't growing as quickly. Meredith predicted other state money will have to be used to continue the scholarship, which covers tuition, fees and books for Georgia students with a B average or better. ``It's not very far away,'' Meredith told the Athens Banner-Herald. ``We are already seeing some effects of this.'' The annual cost of HOPE has soared from $21.4 million in 1993 to $277.2 million last fiscal year, according to the Georgia Lottery Corp. This year, state leaders have scaled back lottery funding for some technology purchases an area that, along with construction, has received some $1.78 billion from the Georgia Lottery since 1993. Lottery support for training professors in new technology was reduced from $4.82 million in the current fiscal year to $2.67 million next fiscal year. The reductions, Meredith said, show state money managers are preparing for the day when HOPE absorbs an even larger share of lottery revenues. ``The technology money has now been pulled back, so there is an impact that's coming,'' he said. ``Either the legislature appropriates additional money to supplement HOPE or you have to start restructuring HOPE.'' A tuition hike passed this spring will further drain the HOPE fund. For students who don't pay their own tuition, the 4 percent to 6 percent increases essentially will be paid by the lottery. Gov. Roy Barnes said he's prepared to use general funds to cover the difference. In an interview with The Associated Press last month, Barnes said the scholarship is so good for the state that it should be continued even at a higher cost. ``This is a good news-bad news story. The bad news is, at some time I don't think it's imminent you're going to have to go into the general fund to fund some of HOPE or pre-K. But what's happened is and this is a good thing we have more and more kids that are going to school on HOPE and more children in the pre-K,'' he said.