Representative Stacey Abrams
Representative Stacey Abrams

HB 326 - HOPE Legislation

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2011 HOPE Legislation

  • The projected shortfall for the HOPE program in Fiscal Year 2012 is $316, 895, 804.

 

  • In FY 2000, there were 302, 858 HOPE Awards for all HOPE programs and in FY 2011 there will be over 580,000 HOPE Awards for all HOPE programs.

 

  • Due to declining lottery revenues, cuts to education and skyrocketing college fees and tuition, HOPE faces a $243 million budget shortfall and cash reserves are projected to run out by 2013. Bottom line: If we do nothing, HOPE continues to lose money and more students will lose scholarships.

 

  • House Democrats agreed to support the framework introduced by Gov. Nathan Deal in order to preserve the HOPE for students who would be eliminated from the HOPE program all together or who would otherwise not be able to make up the difference in tuition on their own. Bottom line: Negotiate or lose HOPE for thousands of students who have no alternatives.

 

  • House Democrats secured the following changes to HB 326 (this bill does not address Pre-K):
  1. Preserved remedial courses for our technical colleges (adds back $13 M)
  2. Protected the Tuition Equalization Grants for proprietary schools with a long history of serving our students (affects more than 5,000 students at a cost of $5.6M)
  3. Made available a 1% low-interest loan ($10M – 20M available and students may borrow up to $10,000 during course of education).
  4. Students may receive HOPE, the Pell Grant, the Perkins Loans, Stafford Loans, PLUS Loans and the 1% loan to cover costs of education.
  • Other Democratic legislators proposed amendments, which were defeated by Republicans in the Rules Committee. Among these amendments were an income cap, grandfathering in existing participants in HOPE and eliminating the “rigorous courses” component. These items were in opposition to the Governor’s proposed framework and not expected to pass; however, Democratic leadership offered the amendments at the request of the members and the public.

 

  • The current legislation honors the agreement between House Democrats and Governor Deal to protect students facing a severe loss under HB 326.
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