TICUA Policy Update

March 11, 2005

Bredesen Releases New Budget:   Cuts TSAA

Governor Bredesen released new budget figures this week which reflect what would happen if the TennCare reforms do not take place.  Higher Education would lose $77 million.  Currently, this is being interpreted as a 7% across the board cut.   This could translate to a $2.8 million reduction to the already flat funded Tennessee Student Assistance Award.

Time to Mobilize Students and Parents!

NOW is the time to mobilize students and parents benefiting the Tennessee Student Assistance Award!  Encourage students to go to www.ticua.org/action_center and click on Policy Action Center to write their notes of thanks and appeal for the TSAA program.

The Action Alert was launched early this week and so far we have had 40 notes already sent.  The web-based Action Center is conveniently open to students 24 hours a day 7 days a week.  Mobilize your student and parents to write notes today!

Lottery Oversight Fails to Review Bills

The Joint Lottery Oversight Committee met for what was to be a three hour meeting to hear brief reports from Rebecca Paul and Dr. Brian Noland and then take action on the numerous bills affecting the lottery’s administration and scholarship programs.  Instead, they heard the reports and then adjourned due the lack of fiscal notes on some bills and the loss of quorum.  

This means that the Committee will have to reconvene to consider the bills before they can move into the respective chamber committees.  The General Assembly website has yet to post the time for the next meeting.  THEC staff, however, assured committee members that they would attempt to have all the fiscal notes attached to the scholarship bills by week’s end.

Governor Bredesen and Pre-Kindergarten

Governor Phil Bredesen’s staff met with TICUA staff yesterday to discuss his desire to take $25 million from the lottery funds for 2005 -2006.  The staff was quick to point out that ongoing funds used from lottery revenues would be evaluated on a year-to-year basis.  The intention is, however, to take $25 million from the lottery each year for at least the next three years, provided the funds are available.  Staff also stated that they were neutral on any increases related to the scholarship programs.

TICUA encouraged the Governor’s staff to draft a letter to TICUA member presidents that would succinctly state their position and clarify their ongoing funding objectives.  TICUA also made it clear that the scholarship program was our number one priority and that it was critical to not add program stress to the lottery revenue that might jeopardize the purchasing power of the scholarship in the long term.