After some controversy at its beginnings in 1993, the Georgia Lottery has proved wildly successful at generating revenue for the HOPE Scholarship. Gov. Brian Kemp announced on Tuesday that the scholarship just hit the $15 billion in aid, going to more than 2.1 million students in the last 31 years.
“After three straight years of record-breaking economic development, Georgians have more opportunity than ever before,” said Governor Brian Kemp. “The HOPE Scholarship has been essential to that growth by preparing a generation of students for success. This milestone reminds us of that incredible impact and the lasting legacy of former Governor Zell Miller.”
According to the World Lottery Almanac (which is a thing), Georgia ranks second across the country in per capita returns to its beneficiaries. For lotteries like ours, the trick is basically balancing the payouts to players with the money sent to HOPE. According to Georgia Lottery officials, if you decrease payouts, revenue will see a corresponding decline – less incentive to play – and HOPE would suffer as well. Other states have attempted this, with the resulting decrease in revenue. Texas attempted it in 1997 as the legislature mandated a decrease in prize payouts, the result was a 40 percent decrease in instant sales – more than $1 billion – over a two year period. The percentage returned to students increased from 31.6 percent to 35 percent but the actual dollar amount declined by more than $155 million.
“I applaud Governor Kemp and members of the Georgia General Assembly, whose steadfast support of the HOPE Program helped to make this $15 billion milestone possible,” said Georgia Student Finance Commission President Lynne Riley. “The tremendous growth in utilization of the HOPE programs over thirty years illustrates the value of the many opportunities for our students to learn and succeed right here in Georgia.”
In that first year, HOPE awarded some $21 million to more than 42,000 students. This past year, the program awarded $841 million to more than 178,000 students. The lottery operates on one percent of its revenues, which includes marketing and advertising. In the last year, retailers earned a six percent sales commission on each ticket sold – retailers without lottery sales are leaving a lot of money on the table. HOPE is now an umbrella program of sorts, it now includes the HOPE Scholarship, Zell Miller Scholarship, HOPE Grant, Zell Miller Grant, HOPE Career Grant, and the High School Equivalency Examination Grant Program. There are 79 public and private colleges and universities that accept some form of scholarship from the HOPE program.
“We’re excited to celebrate the milestone of $15 billion in HOPE awards to Georgia’s college, university and technical college students,” said Georgia Lottery President and CEO Gretchen Corbin. “It’s an honor to work each day for Georgia’s HOPE and Pre-K students and their families. The Georgia Lottery is grateful for Governor Kemp, the Georgia General Assembly, and all who have worked diligently to make this achievement possible.”
