Lottery Funds Support Georgia Pre-K & HOPE Scholarship

Georgia’s lottery funds are constitutionally dedicated to support education and are accounted for separately in the budget. Lawmakers appropriated $1.4 billion from lottery sales to fund and administer education programs. Pre-K funds grew by $43 million, 10.7 percent, with nearly half of that increase going to fund $2,000 salary increases for certified teachers and assistant teachers.

Lawmakers made several important policy changes to lottery-funded programs in the FY 2024 budget.

• HOPE Scholarships total $875 million for USG and $91 million at private institutions, and HOPE Grants amount to $81 million at TCSG.

• The HOPE Career Grant award amount increased from $1,000 to $1,250 to meet the projected 100% for students in Commercial Driver’s License and Law Enforcement programs at the Technical College System of Georgia.

• HOPE Grants and Scholarships now cover 100 percent of the prior year’s tuition at all TCSG and USG colleges and universities. In contrast, the Zell Miller Scholarship will cover the current year’s tuition rate at all TCSG and USG institutions.

• Increasing HOPE Scholarship coverage to 100 percent of the prior year’s tuition, according to the Georgia Student Finance Commission, will impact at least 50,000 students. USG’s four research institutions—Augusta University, the Georgia Institute of Technology, Georgia State University and the University of Georgia—will experience the greatest benefit due to the policy change.

• The FY 2024 budget increases funds for private HOPE and Zell Miller award amounts. HOPE private awards increased from $2,977 to $2,985 and the Zell Miller award increased from $2,282 to $2,946, totaling $91 million for the FY 2024 budget for HOPE and Zell Miller awards at private institutions.

• Tuition Equalization Grants (TEG) provide grant aid to Georgia residents who attend eligible private postsecondary institutions. Funds from the Engineer Scholarship program were transferred to Tuition Equalization Grants to increase the award amount from $900 to $1,000 per year, totaling $24 million in FY 2024.

• The Inclusive Postsecondary Education Grants (IPSE) program was established with a total budget of $955,830 to provide financial aid to students with intellectual and developmental disabilities who are currently enrolled in the IPSE program at a postsecondary institution in Georgia.

Post-Secondary Affordability Barriers

Lottery-supported programs provide students in Georgia with assistance to prepare and complete their post-secondary goals; however, college affordability for Georgians has remained a challenge. The Board of Regents decided to keep tuition flat for the 2023-24 academic school year for the University System of Georgia, but data shows students require additional resources.

By the year 2000, the USG higher education formula covered 75 percent of the college costs in Georgia. The state’s share now covers just 57 percent, leaving students responsible for 43 percent of the cost of college. As such, Georgia ranks third in the nation for average student loan debt per borrower. Although lawmakers voted to fund HOPE at 100 percent of the prior year’s tuition rate, there is room for improvement to ensure that students have access to post-secondary options, beginning with need-based financial aid.

College Completion Grants

Georgia is one of two states that does not offer comprehensive need-based financial aid that would support students financially in the first year of college. To address this issue, in 2022, lawmakers passed HB 1435 to establish College Completion grants, a $10 million transfer from Student Access Loans that began rollout in the fall of 2023. The College Completion grants budget remains flat at $10 million for FY 2024.

Under the new program, institutions across the state were allotted various amounts of College Completion grants to disburse as needed. Students experiencing need and who complete at least 80 percent toward their postsecondary credentials at USG and TCSG are eligible for College Completion grants of up to $2,500.

During the 2023 Legislative Session, the General Assembly passed HB 249 to increase the award amount from $2,500 to $3,500. In addition, the eligibility toward degree completion requirement decreases from 80 percent to 45 percent for students enrolled in two-year programs, and from 80 percent to 75 percent for students enrolled at four-year colleges.

HB 249 was vetoed by Governor Kemp. Although $10 million remains for College Completion grants, $2 million was disregarded for FY 2024. The stated reason for the veto was that the College Completion grants were established in FY 2023 and have not had a full year of activity to assess usage and need.

College Completion Grant First Year Highlights

• In FY 2023:

• A total of 4,808 College Completion grants invoices were requested across USG and private institutions.

• The average award amount for all institutions was $1,150.

• Out of the $10 million budget, $5.5 million was spent to serve 4,254 students.

• Within TCSG and USG, most institutions utilized the College Completion grants, except for Augusta Technical College, Savannah Technical College, Gordon State College and Savannah State University.