HOPE awash in lotto funds

Georgia's lottery is continuing on a record pace again this fiscal year, increasing sales more than $200 million over the same period last year.

That's good news for the lottery-funded HOPE college scholarship, which has again become an election year rallying point for Democrats and Republicans wanting to sell themselves as the program's champion and protector.

Lt. Gov. Mark Taylor, a Democratic candidate for governor and longtime promoter of HOPE, said Monday he will propose a constitutional amendment that would force lawmakers to get voters' approval for any cuts in the program, including changes in benefits. Taylor's amendment would also keep lawmakers from spending lottery proceeds on anything but HOPE and pre-kindergarten classes, similar to a proposal already put forth by Republican Gov. Sonny Perdue, who is seeking re-election.

"If I run into any opposition on this proposal, I think I am looking at somebody who plans to cut the HOPE scholarship in the future," Taylor said.

The Georgia Lottery Corp. reported sales of $1.53 billion in the first half of fiscal 2006, which ends June 30. The lottery returned almost $400 million of that to the state for education programs. The rest went to prizes and expenses.

Lottery officials have seen their sales continue to soar the past few years despite warnings in 2003 and 2004 of a slowdown that could endanger the HOPE scholaship program, which is funded exclusively by lottery proceeds. Lawmakers toughened HOPE requirements for the fast-growing program because of concerns officials would have to dip into reserves to pay for all the scholarships.

However, lottery sales set a second-quarter record from October through December, and no end to the current run is in sight. Instant games, which make up more than half of all ticket sales, surged from $783 million to $974 million in the first half of fiscal 2006.

Most other games also saw sales increases.

Margaret DeFrancisco, president of the Georgia Lottery Corp., said sales were strong for special promotions, such as the King Kong game and holiday instant plays. In addition, payouts were increased for Fantasy 5. Sales often increase when prizes are increased.

"We try to offer something for everybody and anybody who wants to play," DeFrancisco said.

"We're working on a lot of different fronts to keep up with sales."

Despite the program's strength, politicians are vowing to make sure HOPE is protected. It's a natural political issue because so many voters have benefited from HOPE since the first scholarship was awarded in 1993. As of October, about 913,000 HOPE scholarships or grants had been awarded, worth nearly $3 billion.

Taylor accused Perdue of cutting the program in 2004, when the governor signed a bill capping payments for student fees and limiting the number of credit hours technical school students could take through HOPE.

The fee cap means HOPE students pay more out of their own pocket when the Board of Regents approves fee increases.

If approved, Taylor's measure would prevent HOPE funding from being cut unless it is significantly cutting into reserve funds, and only if two-thirds of the General Assembly and voters approve it.

Taylor faces Secretary of State Cathy Cox in the Democratic primary for governor. Cox has not announced a new HOPE proposal, but a spokesman said she would keep the program viable.

Taylor called Perdue's proposed amendment "a fraud" because it doesn't protect HOPE from future cutbacks.

Perdue spokesman Dan McLagan said he hopes Taylor will support the governor's initiative, which ensures lottery money is spent on HOPE and pre-kindergarten classes. Asked about Taylor's comments, McLagan said, "It's a campaign year. We're governing."