HOPE book, fee payments likely saved — for now

By JAMES SALZER
The Atlanta Journal-Constitution
Published on: 03/04/04

State Republican lawmakers on Thursday backed away from proposals to eliminate HOPE scholarship payments for books and fees.

Instead, the Republican-led Senate Higher Education Committee approved a plan that will protect the money, at least for the next school year. The funds still could be cut in the next few years if the scholarship program's financial position continues to worsen.

Committee approval of the new proposal was the first movement this legislative session on bills to preserve the popular scholarship, which could, if nothing changes, begin running out of money in a few years. The original legislation would have eliminated HOPE book and fee money starting this fall, and Gov. Sonny Perdue did not include those payments in his proposed fiscal 2005 budget.

The new measure was developed because of strong opposition by leading Democrats — including Lt. Gov. Mark Taylor, Speaker Pro Tem DuBose Porter (D-Dublin) and House Rules Chairman Calvin Smyre (D-Columbus) — to ending the book and fee payments.

Under the new plan, pushed by Republican Senate leaders including Sen. Bill Hamrick (R-Carrollton), chairman of the Higher Education Committee, no changes would be made in fee and book payments until the program's year-end balance drops. State analysts project that that will happen in fiscal 2006, which begins July 1, 2005.

The next year, fee payments, which top $1,000 a year at some universities, would be capped at $500. The second year it happens, fee payments would be eliminated. The third year, HOPE scholars no longer would receive money for books.

The plan could go to the full Senate for a vote next week, when a House committee is expected to consider a similar proposal.

Perdue spokesman Dan McLagan would not say whether the governor will put the book and fee money back into the budget. But he said Perdue would look favorably on any legislative plan that preserves the HOPE scholarship, which is funded by the state lottery.

Senate Appropriations Chairman Jack Hill (R-Reidsville), however, said the governor is "fully on board" with the Senate plan and he expects Perdue to restore the $125 million for HOPE book and fee payments.

But Taylor objected that payments for books and fees still would be eliminated eventually. "If we begin cutting benefits like books and fees, what is next?" the lieutenant governor asked. "They are paving the way for higher tuition and forcing extra costs onto the students and their families."

Senate Majority Leader Bill Stephens (R-Canton) asserted that accusing Republicans of gutting HOPE is more important to Taylor than fixing its financial problems. Taylor is expected to be a candidate for governor in 2006.

"Mark Taylor is politicizing the HOPE scholarship . . . for his own political gain in his campaign for governor in 2006," Stephens declared.

Positive lottery revenues have eased concerns that the program was in immediate financial danger.

Neither party wants to be blamed for trimming HOPE, which has paid tuition and fees and provided book money to hundreds of thousands of Georgia public college and technical school students over the past decade. Changes are being considered because state analysts project that the program will begin eating into reserve funds in a few years.

The bill approved Thursday by the committee includes most key elements of the original legislation proposed in the House and Senate.

It would make a minimum 3.0 grade-point average a requirement for the scholarship, a tougher standard than the current numeric equivalent used to determine a qualifying B or better average. Further, the Student Finance Commission would check the grades of HOPE college students sooner, to make sure they were maintaining the required average. That change could cause poorly performing students to lose scholarships faster.