Lawmakers Question Use Of Scholarship Money
Last updated Thursday, October 30, 2008 9:12 PM CDT in News
By John Lyon
THE MORNING NEWS
LITTLE ROCK -- Legislators reviewing the state Department of Higher Education's proposed budget for the next two years questioned Thursday whether the state is making the best possible use of scholarship money.
The department has agreed to accept an executive recommendation that calls for a small decrease in the agency's funding for operations over the biennium.
Several lawmakers raised questions about scholarship spending.
Rep. Barry Hyde, D-North Little Rock, noted the department has a carryover of just more than $11 million for the Arkansas Academic Challenge Scholarship and Arkansas Governor's Scholars programs.
"How is it that we have over $11 million left over in our scholarships?" Hyde asked. "Do you not have enough ... qualified applicants?"
State Higher Education Director Jim Purcell said the carryover amount was left after scholarships were awarded to all qualified applicants. The department expected to have leftover money, he said.
"We've had occasions where there was a promise given for kids to go to college and there wasn't enough money in the fund," he said. "So there's always been a movement to have enough funds there in case there was a bad legislative year, there would be funds there."
Hyde said the Legislature probably assumed the money it appropriated would all be spent.
"I've always felt like your money ought to be out working for you. It doesn't look like this money's out working for us," he said.
Rep. Johnnie Roebuck, D-Arkadelphia, pointed out the department ended the past fiscal year with a scholarship fund balance of nearly $52 million and is projected to end the current fiscal year with more than $31 million unspent.
She also said the Legislature provided $11.2 million for the GO! Opportunities Grant Program, but only $1 million in grants have been awarded.
Part of the problem is the eligibility requirements for scholarships are too limiting, Roebuck said.
"Are you looking at expanding the criteria so we get more of this money (to students) and we don't have a fund balance of almost $52 million when we have students that need the money to go to school?" she asked.
Purcell said the department is working on that. He said later expanding eligibility criteria for scholarships is one of the department's goals for the 2009 legislative session.
"We've submitted some proposed legislation to the governor's office to do that, increasing the income maximum and also the amount. Since tuition has gone up, we want to expand the number," he said.
Purcell said that since 2000, state financial aid for Arkansas students has increased by 17 percent, but during the same period tuition has increased by 81 percent.
State-funded financial aid is "microscopic," he said.
The department also wants to consolidate some of its 21 different scholarship funds and do more to make students aware of them, he said.
In his presentation to legislators, Purcell said state law allows colleges to spend up to 30 percent of tuition and state appropriations on scholarships. A more reasonable cap would be 15 percent, he said.
Using tuition money to award scholarships is driving up tuition costs, Purcell said.
The situation is "great for students receiving scholarships but expensive -- very expensive -- for those who do not receive the scholarships," he said.
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tootsie wrote on Nov 3, 2008 6:12 AM: