HOPE program needs immediate attention

There is no doubt that there is trouble ahead for Georgia’s Hope scholarship program. The program has been hit by the perfect storm – an increase in students attending college, years of increasing tuition costs and reduced income from the lottery. The result is that the Hope program is running out of money and fast.
Rep. Len Walker summed it up this way. “This is not a train wreck about to happen. The train wreck has happened.” Projections show a $244 million shortfall this fiscal year and a $317 million shortfall in 2012. These shortfalls will greatly diminish the $1 billion reserve in two short years. There is no doubt something must be done to halt the red ink while we preserve the very best of the popular and successful program.

Our representatives under the Gold Dome in Atlanta are keenly aware of this problem and are scared. They have every reason to be. The Hope scholarship program is wildly popular. It is argued to be the most successful scholarship program in the country. This is from a state not known for its academic prowess.
There are several trains of thought (excuse the metaphor) on how to preserve the program. All have merit and all have potentially severe long-term consequences. Here are a few of the ideas circulating:

• Means Testing – this is perhaps the most logical on its surface. The original program capped eligibility at incomes above $66,000 then rose to $100,000 and then subsequently the cap was lifted in its entirety. While this solution may seem like a no-brainer it will cost the state dearly in the long term. One huge benefit of the no cap Hope is the profound ability for the state to retain it very best and brightest students. Yes, these students will go to university with or without Hope. However, time has shown that they will overwhelmingly attend universities with better reputations outside of the state. University of Virginia, UNC- Chapel Hill, etc. come to mind.

The dramatic rise in stature of Georgia’s universities, especially the flagship UGA and Georgia Tech is astonishing in academic circles. University reputations take decades, if not generations to take hold. Our universities are experiencing meteoric rises in stature due in large part of Georgia keeping its very best and brightest students. This has profound positive long term benefit to the state’s economy as the students graduate and stay in our state.
Most political pundits say this approach will not pass due to the popularity of the current program. Given that reality, other approaches are needed.

• Fixed Scholarship amounts – This idea is to fund a fixed portion of the tuition rather than the entire tuition. This is easy to implement and retains the entire pool of eligible students. Education tuition keeps rising much faster than inflation. This is due in part because so many students do not pay tuition. Who cares if tuition goes up? Hope will pay for it. An unintended consequence of Hope is it has weakened the checks and balances need to ensure economic efficiency. I think this approach has two drawbacks. One, it will disproportionately hurt the poorer students. Secondly, it is a slippery slope that will gradually result in less and less of tuition being covered by Hope. Once the entire tuition goal is tamperered with, it is only a matter of time as tuition rises and the scholarship amount falls. Keep the state’s feet to the fire to ensure the integrity of the program.

• Eliminate Re-eligibility – Eliminate the second chance provision in the program. Only 46 percent of students who start with Hope are eligible at the 30 hour mark (1 year for most students). This option says that once you lose Hope eligibility you cannot regain it. Under this solution, all qualified students have a chance at a world class college education in our state. Everyone has to work harder in today’s world. There is no reason our students cannot do the same. I support Maureen Downey, from the Atlanta Journal-Constitution when she states “demanding more merit from the scholars rather than more money from their parents seems a better tack.”

These will be difficult choices. Time is running out. Our politicians will wait until after the Fall elections to address the problem. No one wants to open that can of worm weeks before they are up for election. Hopefully, they will put this time to good use and find a solution that preserves the best Hope has to offer while recognizing the painful economic realities. I for one think the eliminate re-eligibility option preserves the best of the current program while bending to the current economic forces.

Published in LaGrange Daily News 8.12.10