By John Lyon
Arkansas News Bureau
LITTLE ROCK — The House Rules Committee today endorsed legislation that would set the amounts of lottery-funded college scholarships, though disagreement over eligibility remains, while the Joint Budget Committee rejected much of Gov. Mike Beebe’s plan to fund state projects through the end of the fiscal year.
The lottery bill would provide $5,000 scholarships for students attending four-year schools and $2,500 for those attending two-year institutions. After about 45 minutes of debate, the rules panel in a voice vote sent the measure to the full House, where 97 of the 100 members are co-sponsors.
Members of the budget committee balked at Beebe’s request to use nearly $10 million allotted from the state surplus for legislators to fund capital projects in their home districts.
“The little dab of money that I’ve got to take back to my community, a $1,000 is like $5,000 to people down here, a $100, it just means a lot to them, and I want to take it all back, not just 95 percent,” said Rep. Curren Everett, D-Salem.
The scholarship amounts are based on a forecast of $112 million in net proceeds from the state lottery, House Speaker Robbie Wills, D-Conway, told the panel.
In addition to funding scholarships for incoming freshmen, the bill would set aside $41.5 million to fund scholarships for students already in college and $12 million for nontraditional students.
The bill includes a provision that some House members have criticized regarding students who graduate from schools identified by the state as ones that inflate grades. It would amend the 2009 lottery law to state that students graduating from grade-inflation schools would not have to meet higher eligibility standards than other students until 2011.
Rep. Jonathan Dismang, R-Beebe, who is not on the House Rules Committee, spoke against the bill and later told reporters he may propose an amendment that would leave the language in the 2009 lottery law regarding grade inflation unchanged, so that students at grade-inflation schools would have to meet higher eligibility standards starting this year.
Rep. Rick Green, R-Van Buren, was the only member heard voting “no” on the bill. He later told reporters he believed lawmakers were moving too quickly on the measure.
“I don’t know why we have to go at this 90 miles an hour,” Green said.
Legislative leaders have said they hope to complete the session’s business this week. Green said he is not convinced the session needs to end that quickly.
Lottery ticket sales began in September in Arkansas. The first lottery-funded scholarships are to be awarded for the 2010-2011 school year.
Beebe has proposed $9.2 million from the Legislature’s General Improvement Fund and $3 million from his portion of the fund, which captures unallocated state revenues, to fund a variety expenses between now and the end of the fiscal year, including $7.2 million to counties for housing state inmates awaiting bed space in overcrowded prison units.
The budget committee approved the use of GIF for county jail reimbursement, and $1.6 million for the Department of Community Correction, but rejected plans to use the remaining $3.4 million in requests for reapportionment, the state Division of Youth Services, school defibrillators and the Health Department’s information exchange.
Several lawmakers complained the governor wanted to use the Legislature’s allotment when other sources of revenue were available.
“If there is other sources of money he could borrow from, why ours?” Everett asked.
Sen. Terry Smith, D-Hot Springs, suggested the proposal by the governor was creating a precedent that governors may want to use in future sessions.
“This is a good plan to get rid of (legislative) GIF money from now on,” Smith said.
Rep. Bruce Maloch, D-Magnolia, a committee co-chairman, said the governor’s plan was the fairest way to pay the necessary expenses. He noted that the money would be reimbursed if state revenues are above forecast at the end of the fiscal year.
Sen. Gilbert Baker, R-Conway, said the governor’s proposal is not dead since the budget bills could be amended later to add the appropriation source.
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Reporter Rob Moritz contributed to this report.
