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Tennessee Gov. wants to spend lottery reserve

Tennessee LotteryTennessee Lottery: Tennessee Gov. wants to spend lottery reserve

Excess money would be distributed to school districts

Tennessee Gov. Phil Bredesen said Thursday the state lottery's huge cash reserves need to be distributed.

Bredesen, a Democrat, has abandoned last year's proposal to create a $100 million pool that would have served as collateral to improve credit ratings for school districts, he told The Associated Press in an interview Thursday.

"The legislature wanted to spend it, they didn't want to put it aside to enhance credit," Bredesen said. "They wanted to write checks."

The lottery has about $400 million stored up in its reserves. The constitution restricts lottery money to scholarships, early childhood education and K-12 school building projects.

"The reserves are vastly in excess of what we need in the lottery and ought to be distributed out," Bredesen said.

The governor did not detail the mechanism for how he'd like to see the money distributed or how much he would prefer to spend.

House Republicans proposed distributing about $150 million last year in lottery reserves among the state's 136 school districts on a per-student basis.

The governor said he wants to target the distribution of lottery money to encourage school districts to use the money as a supplement — and not a substitute — to their existing construction and maintenance efforts.

"I was hoping to do it in a somewhat more directed way than just writing checks for what would be relatively small amounts of money after you distribute it to 1,600 schools," he said.

Bredesen said he will detail his plans for spending lottery money at his state of the state address this month. The speech will include ideas for tweaking lottery scholarships, he said.

Bredesen said he'd like to find ways to improve retention rates for the $4,000 lottery scholarships, especially because poorer students are likely to suffer most from losing them.

Scholarships examined

Students must currently earn at least a B-minus average in their first year at college, and a B average after that to keep their scholarships. There is no provision for earning back the grant once it is lost.

"When that happens, it hurts people who are poorer, because they don't have somebody to just step in and pay the tab for them," Bredesen said.

Democrats in the legislature have put forward proposals to lower the required grade point averages to maintain a scholarship. Republicans have balked at that idea but agree there should be a way to earn back a lost scholarship.

Bredesen said the lottery scholarships could move beyond being solely a merit-based program because not enough help is available for students who need financial help to go to college.

One area where Bredesen said he expects to make little progress is in resurrecting last year's failed proposal to offer free community college tuition for any high school student with a C average.

"There was strong opposition to that in the Senate Education Committee, and for that reason I don't have any great hopes for it this year," he said.

AP

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10 comments. Last comment 9 years ago by JAP69.
Page 1 of 1
tnlotto1's avatar - logo
nashville
United States
Member #49896
February 18, 2007
1181 Posts
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Posted: January 11, 2008, 8:01 am - IP Logged

thanks for putting up this story Todd i dont know why bredesen is trying to do this and i hope he loses support. just because the reserves are in excess doesnt mean the governer needs to hurry up and find a way to spend it.

    nobie23's avatar - squiz

    United States
    Member #3009
    December 12, 2003
    2065 Posts
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    Posted: January 11, 2008, 8:24 am - IP Logged

    thanks for putting up this story Todd i dont know why bredesen is trying to do this and i hope he loses support. just because the reserves are in excess doesnt mean the governer needs to hurry up and find a way to spend it.

    The governor wants to use that money to pay for the remoeling of the mansion

      four4me's avatar - gate1
      MD
      United States
      Member #1701
      June 18, 2003
      8360 Posts
      Offline
      Posted: January 11, 2008, 11:39 am - IP Logged

      So Rebecca Hargroves statements in previous press releases that ball drawings cost to much to run. Was just another smoke screen. Apparently they have sufficient funds to conduct live ball drawings. I am still wondering whether or not they stopped having ball drawings because they couldn't get the people behind the scenes to do the job at hand.

      Actually there is no reason why they have the drawings aired on every TV station in Tennessee's they could only use one station for the official drawing and flash the numbers briefly on other stations like they do in other states.

      Somebody needs to take a look at their whole operation from top to bottom.

        spy153's avatar - maren

        United States
        Member #28409
        December 15, 2005
        1198 Posts
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        Posted: January 11, 2008, 12:19 pm - IP Logged

        "Bredesen said the lottery scholarships could move beyond being solely a merit-based program because not enough help is available for students who need financial help to go to college.

        One area where Bredesen said he expects to make little progress is in resurrecting last year's failed proposal to offer free community college tuition for any high school student with a C average."

         

        Spending the money on the merit-based college tuition and c average students' college tuition are the best ideas here.   More needs to be available to kids to go to college.  The scholarships set up right now don't pay enough to do any good.  More than just the tuition could be covered.  When I play the lottery, I expect my money to be going to the schools in this respect and to assure the schools have the supplies they need (books !  Lab necessities!  Computers! )  I don't like to hear things like "our budget caused the drama program to have to raise funds to run the show."  The funds should have been in place with the amount the lottery receives from Tennessee lottery players.

        voir-vous dans mes reves!Cool

          Captain Lotto's avatar - CaptLotto
          Jefferson City, MO
          United States
          Member #55250
          September 20, 2007
          97 Posts
          Offline
          Posted: January 11, 2008, 3:51 pm - IP Logged

          To clarify, Four4Me, they have too much in proceeds, not extra money in the operating budget.  That money is set aside for education needs, but the programs they have defined to benefit are not using all of the assigned funds.  That's why they are looking for additional programs. 

          Captain Lotto

          "Every day is a good day!"

            time*treat's avatar - radar

            United States
            Member #13130
            March 30, 2005
            2171 Posts
            Offline
            Posted: January 11, 2008, 4:27 pm - IP Logged

            Roll Eyes didn't really need to read further than "Bredesen, a Democrat"...

            In neo-conned Amerika, bank robs you.
            Alcohol, Tobacco, and Firearms should be the name of a convenience store, not a govnoment agency.

              tntea's avatar - Lottery-059.jpg

              United States
              Member #5344
              June 30, 2004
              23641 Posts
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              Posted: January 11, 2008, 4:47 pm - IP Logged

              "Bredesen said the lottery scholarships could move beyond being solely a merit-based program because not enough help is available for students who need financial help to go to college.

              One area where Bredesen said he expects to make little progress is in resurrecting last year's failed proposal to offer free community college tuition for any high school student with a C average."

               

              Spending the money on the merit-based college tuition and c average students' college tuition are the best ideas here.   More needs to be available to kids to go to college.  The scholarships set up right now don't pay enough to do any good.  More than just the tuition could be covered.  When I play the lottery, I expect my money to be going to the schools in this respect and to assure the schools have the supplies they need (books !  Lab necessities!  Computers! )  I don't like to hear things like "our budget caused the drama program to have to raise funds to run the show."  The funds should have been in place with the amount the lottery receives from Tennessee lottery players.

              Spending the money on the merit-based college tuition and c average students' college tuition are the best ideas here.   More needs to be available to kids to go to college.  The scholarships set up right now don't pay enough to do any good.  More than just the tuition could be covered

               

              I agree, more money should be spent toward post secondary education especially those students in the C average range.  There are a lot of bright young people in high school who maintain a C average who could benefit from community college to learn a worthwhile trade.   Some of our students at high school age are working parttime to help cover living expense at home, thereforth their grades do suffer.  If maintaining a C average is the best they can do, then allowing them apply for college with lottery funding would be a great way to add back.

              The grading system in TN is very tough...  74 is a "D" in TN...  90 is a "B".. When I was in school. 74 was a "C" and 90 was an "A".

                   OLD/Vtrac   Lottery Bible         Double Warnings      Thumbs Up TN F34/F44

                four4me's avatar - gate1
                MD
                United States
                Member #1701
                June 18, 2003
                8360 Posts
                Offline
                Posted: January 11, 2008, 5:26 pm - IP Logged

                To clarify, Four4Me, they have too much in proceeds, not extra money in the operating budget.  That money is set aside for education needs, but the programs they have defined to benefit are not using all of the assigned funds.  That's why they are looking for additional programs. 

                Exactly in her previous statements she said she switched drawing types so more money could be allocated for education. As we can see they cant even distribute all of it. So there is money to conduct live ball drawing . Proceeds are what's left over after all the expenses are paid.

                It's not the peoples fault they cant utilize the money it's the governments fault for not getting a hold of things.

                Hargrove said her goal is to make as much money for education as possible. If they cant use the money for education purposes properly they they should find another cause to fund like the elderly.

                Better yet shovel some of that money into hiring employees that could dedicate themselves to running live ball drawing and not RNG.

                  JAP69's avatar - alas
                  South Carolina
                  United States
                  Member #6
                  November 4, 2001
                  8790 Posts
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                  Posted: January 11, 2008, 5:40 pm - IP Logged

                  Politicans froth at the mouth when they see surplus funds laying around.

                  So what happens if the state lottery starts to have a shortfall of revenue to put in the fund if the surplus is spent.

                  The way this country is going people will not be able to play the lottery if a depression hits.

                  WHATT

                    JAP69's avatar - alas
                    South Carolina
                    United States
                    Member #6
                    November 4, 2001
                    8790 Posts
                    Offline
                    Posted: January 11, 2008, 5:50 pm - IP Logged

                    Spending the money on the merit-based college tuition and c average students' college tuition are the best ideas here.   More needs to be available to kids to go to college.  The scholarships set up right now don't pay enough to do any good.  More than just the tuition could be covered

                     

                    I agree, more money should be spent toward post secondary education especially those students in the C average range.  There are a lot of bright young people in high school who maintain a C average who could benefit from community college to learn a worthwhile trade.   Some of our students at high school age are working parttime to help cover living expense at home, thereforth their grades do suffer.  If maintaining a C average is the best they can do, then allowing them apply for college with lottery funding would be a great way to add back.

                    The grading system in TN is very tough...  74 is a "D" in TN...  90 is a "B".. When I was in school. 74 was a "C" and 90 was an "A".

                    Some of our students at high school age are working parttime to help cover living expense at home, thereforth their grades do suffer.

                    They should be looking for ways to help these students get more study time to upgrade their scores.

                    Do you really think gym class is necessary when that time could be used for study time.

                    Or whatever unnecessary acticites schools have today. Hit the books not art class , home ec , shop classes. etc, etc,

                    There are not many around anymore but I went to a one room schoolhouse up to fifth grade. That is when they built the huge consolidated school.
                    My time was spent more on being taught and studying the books while I was in school for the day while going to the one room school house. Did not have all those unneccesary classes.

                    WHATT