In early July, Lt. Governor, Casey Cagle, announced that I will chair a special study committee to investigate and eventually recommend ways additional revenues can be supplied to Georgia’s HOPE Scholarship Program. Officially titled the “Senate Preservation of the HOPE Scholarship Program Study Committee,” our objective is to look at alternative ways Georgia students can continue to receive substantial technical and university tuition awards for years to come.
A major challenge to our HOPE Scholarship Program is the sharp increase of college tuition. According to College Board, which is a not-for-profit organization that connects students to higher education opportunities, in-state tuition to attend a public, four-year university in Georgia has increased 46% in five years, from the 2009-10 academic year to 2014-15. Despite the increase, College Board reports that in Georgia, tuition and fees still remain below the national average.
For example, the University of Georgia ranked 10th in the nation on Kiplinger’s “Best College Values” for in-state tuition, released in December of 2014. It is also worth noting that the Georgia Institute of Technology ranked 17th in the nation for in-state tuition on that same list. Georgia Tech was also named the Top-Ranked Public University, based on the Return on Investment (ROI) in the Southern United States by BestValueSchools.com. Georgia’s colleges and universities are top-notch and remain a great value.
The secondary challenge to HOPE was the recent economic downturn that hit individual wallets, as well as the state budget. As applications for HOPE continued to pour in, while revenues were declining, the responsibility fell on lawmakers overseeing our state’s finances to make adjustments to many programs. Because Georgia must pass a balanced budget every year, state leaders have had to make some tough choices regarding the HOPE Scholarship, as well.
In 2012, requirements to receive the HOPE Scholarship and Hope Grant were raised. This included the creation of the Zell B. Miller Scholarship, which covers the full tuition of the recipient and has strict qualifications. Although these changes allowed the program to continue for several more years and ultimately will help more Georgians participate in higher education or Georgia Pre-K in the long-term, HOPE will need more attention in the next few years to ensure it remains solvent.
Even after the adjustments to the higher education portions of the HOPE Scholarship Program, Georgia still ranked 3rd in the nation for state grant aid per undergraduate student in 2012-13, according to a survey by the National Association of State Student Grant and Aid Programs. That report estimates that Georgia spent $1,440 per Full-Time Equivalent (FTE).
The Georgia General Assembly is constantly working on ways to keep the tax burden low on Georgia citizens. With that in mind, the committee will study how to utilize the state taxation of casino gaming and pari-mutuel wagering on horse racing to supplement the funding for the HOPE Scholarship and Georgia Pre-K programs. This is not an idea we are considering lightly. The committee is also charged with studying the social and economic issues pertaining to those activities.