Monday, February 1, 2016

Financial Aid and Lottery Dollars in the Governor's Budget Proposal

| By Susan Perkins Weston | 

The Kentucky Higher Education Assistance Authority (KHEAA) will be able to offer almost $251 million in FY 2017 financial aid if Governor Bevin's budget proposal become law. 

Here's a breakdown for the programs included in the KHEAA budget, with yellow shading for cuts and green shading for increases and a new workforce training and development program.
Counting the workforce proposal as a lottery funded effort, this plan honors the state law that calls for nearly all lottery dollars to flow to postsecondary education. 

However, that also means overriding the legal provision calling for the College Access Program and the Tuition Grant Program to receive 55 percent of those dollars.  Those two needs-based programs will receive $35 million less than promised in statute, with those dollars moved to the workforce initiative and to KEES scholarships awarded based on grades and test scores.  The chart below shows the available dollars and compares the statutory approach to the one the Governor proposes.
Source note: The dollar figures above reflect the 2016-18 Executive Budget released by the Office of State Budget DirectorKRS 154A.130 sets the rules for allocating lottery proceeds, with $3 million annually committed to literacy development and the rest divided between 45 percent to KEES and 55 percent to CAP and Tuition Grants.

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Updates and data on Kentucky education!