Lamwkers seek changes to lottery scholarships

By The Associated Press

Lawmakers on Thursday called for expanding the amount of lottery-funded scholarships that will be available to students already in college after Arkansas’ higher education chief said the law right now caps it at $2.6 million.

Arkansas Department of Higher Education Director Jim Purcell told the lottery’s legislative oversight panel that the state law setting up the lottery funded scholarships lumped students who are already in college with non-traditional students. The law had set aside up to $8 million from the lottery for non-traditional students, and Purcell said $2.6 million of that would be for students already in college.

Lottery officials predict the games will raise $100 million annually for scholarships.

Members of the lottery oversight committee said they didn’t realize that they had lumped the current college students in with nontraditional students. Sen. Mary Anne Salmon said a new category should be created setting aside lottery money for current students.

“While the money’s coming in good on the lottery, we need to take care of those students,” said Salmon, D-North Little Rock. “And in three years, the last ones will be out. Those are kids who are already in, and if you talk to any college president, the main reason kids drop out in their last year is money.”

Arkansas launched its lottery Sept. 28 with the sale of scratch-off tickets, and the state will begin selling Powerball tickets Oct. 31. Voters approved the lottery last year to raise money for college scholarships.

Lawmakers will decide next year what amounts to set for the scholarships. By Nov. 1, the legislative panel overseeing the lottery must recommend award amounts and number of scholarships to be funded by the estimated lottery proceeds.

The law setting up the lottery commission left most of the details on scholarships up to lawmakers, but includes a suggested sliding scale. The suggested scholarship amounts range from $2,500 to $6,000, depending on the lottery’s net revenues.

Rep. Barry Hyde, the committee’s co-chairman, suggested that $8 million of the lottery revenue be set aside for the current college students.

“I don’t think we can meet all the demand in that group, because it’s so large, so we’re going to have to make a judgment call somewhere,” Hyde said.

Purcell cautioned lawmakers that they shouldn’t set aside too much money for the current students.

“I’m OK with the separate pot. I just don’t want it to be so large that it would inhibit students coming right out of high school,” Purcell said.