Governor links lottery lease to scholarship plan

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BY PATRICK GUINANE
pguinane@nwitimes.com
317.637.9078 | Thursday, August 14, 2008 | (4 comment(s))

INDIANAPOLIS | The Hoosier Lottery is back on the auction block, this time as a way to bankroll income-based college scholarships for high school graduates.

The Democratic-controlled Indiana House rejected a lottery lease last year, when Gov. Mitch Daniels pitched it as way to fund university research endowments and merit-based college scholarships for top students willing to stay in Indiana following graduation.

On Wednesday, the Republican governor repackaged lottery privatization as way to pay for a college affordability plan he proposed in April.

He says a 30-year lease would generate enough to offer students from low and middle income families $6,000 each to cover two years tuition at Ivy Tech Community College or put a dent in the cost of attending state universities, both public and private.

"Too many of our kids don’t believe they can go to college. Yet the jobs being created in the 21st century require skills and knowledge beyond a high school education," Daniels said Wednesday. "We seek to assure each Indiana high school graduate, as far up the income scale as we can reach, the chance to go to college for at least two years."

The governor, who is running for re-election, said he is also willing to consider keeping the lottery under state control and bonding against its future revenues. His "Hoosier College Promise" scholarship initiative, if fully implemented, would cost about $50 million a year.

Daniels said he would set the family income cap on the scholarships at $60,000 a year, which would make about 24,000 high school graduates eligible for the program each year. Recipients would have to maintain at least a "C" average.

In April 2007, the Daniels administration said at least two firms were willing to pay more than $2 billion up front and another $200 million a year for a 30-year deal to run the Hoosier Lottery and collect its profits. Daniels now says a such a lease would draw a lump payment of at least $1 billion.

"When (the lottery) was created, Hoosiers were told it would be dedicated to education," Daniels said. "It’s time to finally do just that, by putting part of our lottery proceeds in trust for college aid. We believe we can lower our high school dropout rate and increase our college attendance rate."

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whatever wrote on Aug 13, 2008 2:48 PM:

" Too bad they just couldn't fund colleges a little so everyone can benefit instead just few. There's always those kids who fall through the cracks because the parents make just above the bar. Those same parents are the ones taking on second jobs to be able to pay their taxes and other bills they don't get any sort of break on. It creates yet another incentive to work less to be given more. Meanwhile those busting themselves with work fund such programs for others while their own children suffer because they cannot afford to pay tuition for them. "

NUMBERS DONT ADD wrote on Aug 13, 2008 1:51 PM:

" let's see the lottery earned 789 million last year with a profit of 216 million. If numbers stay stagnant then for 30 years the lottery will have earned 23.6 billion dollars and a profit of 6.48 billion. If we 'lease' it then we will get 2 billion upfront and only 6 billion over 30 years. Is my math wrong or are we set to lose about 20 billion over 30 years. They will reduce the amount paid to retailers thus increasing their bottom line. Another toll road fiasco coming "

Wet Hen wrote on Aug 13, 2008 1:41 PM:

" Mitch,
If these firms can offer that much money then your people need to a better job of running these games.
Of course they didn't tell you that they will install an hourly Keno game to help them get rich and laugh at you for being dumb, just like the toll way bandits are after they did it to you.
Next scheme, turn the Mansion into a Bed and Breakfast. Might as well, you don't seem to be using it too often. "

dvl wrote on Aug 13, 2008 1:37 PM:

" Is there any thing this man will not sell? "

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