XLS: Press NO Fiscal

XLS: Press Summary Lottery Sub.

NASHVILLE — The Bredesen administration and Senate Republicans appear closer to a compromise on lowering the cumulative grade-point averages Tennessee’s college students need to retain lottery-funded scholarships, but some Democrats are balking over plans to phase in the proposed change.

The administration proposes to reduce the GPA needed for a HOPE scholarship from 3.0 to 2.75, with the new twist being it would be phased in over three years at a cost of about $17.9 million.

A GOP-backed plan calls for extending the 2.75 standard through students’ junior year at a cost of about $7.2 million. But it would leave future actions on reducing the GPA for seniors and fifth-year students dependent on later increases in lottery funds.

“The administration is certainly supportive of eventually making the retention standards 2.75 for all students,” said Patrick Smith, an adviser to the governor. “Because of the available recurring revenues, our proposal as amended would have phased it in.”

Under current law, students must have at least a 2.75 GPA during their freshman year to keep their $4,000-a-year HOPE scholarship through their sophomore year. Students now must maintain a 3.0 GPA in subsequent years to retain scholarship eligibility.

Republicans initially objected to lowering the retention GPA. But a GOP-backed plan presented in the Senate Education Committee on Wednesday would let students earn a 2.75 GPA in their sophomore year and retain the HOPE scholarship through their junior year.

Students would have to maintain a 3.0 in their junior year to keep the scholarship as a senior.

The GOP-backed plan is part of a $22.8 million lottery expansion proposal presented before the Senate Education Committee.

“It doesn’t mean we won’t eventually get there,” Senate Finance Committee Chairman Randy McNally, R-Oak Ridge, said of the plan.

A vote on the proposal was not held.

Senate Democratic Caucus Chairman Joe Haynes, of Nashville, questioned increases in some of the other benefits in the GOP-backed package. They include more than $5 million to help “non-traditional” older students as well as a $400,000 provision dealing with home-school students.

“The other stuff that’s being considered is sort of nickel and dime, if you want to know the truth of the matter,” Sen. Haynes said.

Senate Republican Caucus Chairwoman Diane Black, R-Gallatin, said in a later statement that Sen. Haynes’ comments “were insulting to the 6,000-plus students that would be affected by this carefully crafted proposal.”

The package included a proposal by Sen. Andy Berke, D-Chattanooga, and two other lawmakers to create the Tennessee Quality Teacher Fellowship program. It would authorize, among other things, a fifth-year, $10,000 scholarship for students preparing to become teachers. The teacher program would cost an estimated $4.15 million when fully implemented.

“There are numerous good proposals in this amendment,” Sen. Berke said. “And our goal is to find $50 million of good ideas in that $22 million budget.”

House Education Committee Chairman Les Winningham, D-Huntsville, and House Majority Leader Gary Odom, D-Nashville, said they favor the lower GPA retention standard, but not the proposal to phase it in.

“I think we set it at 2.75, and we keep it there,” Rep. Winningham said.