Gov. Sonny Perdue isn't waiting for the General Assembly to decide whether to eliminate book and fee payments to HOPE scholars: He has already cut the money out of next year's budget.

Perdue's HOPE scholarship funding proposal for fiscal 2005, which begins July 1, would put less money into the program for the first time because he doesn't include the $125 million that was expected to be spent to provide fee and book money to scholars. The governor supports eliminating such payments as part of a plan to preserve the program.

If the budget proposal is passed, the change would affect students this fall, costing some HOPE scholars more than $1,000 per year.

Dan McLagan, the governor's communications director, said Perdue made the move in anticipation that the change would be approved during the 2004 session.

"We're confident the Legislature is going to act responsibly and make those adjustments," McLagan said.

Lt. Gov. Mark Taylor, who opposes cutting book and fee money from HOPE, was disturbed by the move.

"It guts the HOPE scholarship program," said Taylor, a Democrat. "It takes the very best public policy decision this state has made in the past 50 years and brings it to its knees.

"He has changed it to a tuition-only program with the stroke of a pen."

If changes aren't made, officials have estimated that HOPE and the pre-kindergarten program -- which also is funded through the lottery -- will begin dipping into financial reserves during the 2006-07 budget year. However, Perdue's budget projection estimates the shortfall would occur in the upcoming fiscal year if the Legislature decides not to cut book and fee money.

Currently under HOPE, students with a B average or higher receive full tuition, mandatory fees and money for books to attend a Georgia public college. Technical school students also are eligible, and students at Georgia private colleges can receive a $3,000 annual grant.

Cuts would offset tuition costs

Perdue's budget plan, which will be reviewed by lawmakers next week, cuts the HOPE budget from $441.3 million this year to $374 million next year because of the elimination of book and fee money. HOPE tuition costs just for public college students would jump $50 million, but that's not enough to offset the reduction in book and fee funds.

Senate Higher Education Chairman Bill Hamrick (R-Douglasville) and House Higher Education Chairman Louise McBee (D-Athens) say they plan to file legislation that includes the recommendations of the HOPE study commission. Among those recommendations is the elimination of book and fee money starting this fall.

Perdue, Taylor at odds

Taylor has called on the University System of Georgia Board of Regents to freeze tuition and fees for three years. Rising tuition and fees have helped increase the cost of HOPE since its inception in 1993. Perdue opposes the idea.

"The lieutenant governor's plan is nonsensical and bankrupts HOPE in 2006, and Sonny Perdue is not going to let him get away with it," McLagan said.

But Taylor said cutting benefits isn't necessary because lottery revenues which pay for HOPE have continued to climb, although Perdue is projecting a decline next year.

"This is just the governor jumping the gun to impose draconian cuts to the HOPE scholarship fund when it's not necessary," Taylor said.