Dedicating Portion of Lottery Proceeds to OHLAP


Regina Birchum, Media Specialist
Oklahoma House of Representatives
405.557.7499
Contact: State Rep. Randy Terrill
Capitol: (405) 557-7346
Moore: (405) 476-6766


Rep. Terrill Proposes Dedicating Portion of Lottery Proceeds to OHLAP

OKLAHOMA CITY (Jan. 19) -- If the Legislature commits a
dedicated funding source to a struggling state scholarship program, Rep.
Randy Terrill believes Oklahoma could significantly increase its number
of college graduates, resulting in better economic conditions for the
state.
Legislation filed today by Terrill, R-Moore, would devote a
portion of the lottery revenue already earmarked for higher education to
the Oklahoma Higher Learning Access Program (OHLAP).
The program, which provides in-state college tuition grants to
qualifying high school students from lower-to-middle income families,
has been struggling to meet its obligations let alone plan for increased
participation.
"OHLAP is an excellent program," said Terrill. "It could
accomplish dramatic things for this state if we fund it properly." He
said OHLAP has operated without a dedicated source of revenue since its
inception in 1996. The state Regents for Higher Education recently
reported a $4.1 million shortfall this year as a result of unstable
funding sources.
House Bill 1357 would establish a steady source of income for
the program by securing revenue from the new state lottery. The
legislation would amend the distribution of lottery proceeds originally
established by the Oklahoma Education Lottery Trust Fund, which was
created when voters approved State Question 706 during the Nov.
elections.
The trust fund is intended to assure that lottery proceeds are
directed toward educational purposes. Under its provisions, for the
first two years of operation at least 30 percent of the lottery's net
proceeds are to be used for educational purposes and programs. In the
third year of operation the fund will receive at least 35 percent of net
proceeds, a level that will be maintained thereafter.
Of the amount received by the trust fund, 45 percent is
earmarked for various higher education expenses, including tuition
grants and scholarships. Under HB 1357, a portion of those funds would
be set aside exclusively for OHLAP. Beginning July 1, 2007, five percent
of higher education's portion would be directed to OHLAP, increasing a
year later to a total of 10 percent.
The state Regents claim that 94 percent of Oklahoma's high
school students expect to pursue a college education, yet only 56
percent actually attend. Terrill said many students feel a college
education is out of their reach after examining the cost of tuition.
Oklahoma places below the national average for bachelor's
degrees earned, something Terrill said is directly related to the
state's low ranking for per capita personal income. "There is a clear
link between educational attainment and earnings," he said.
According to Chancellor Paul G. Risser, no state with a low
proportion of bachelor's degrees has a high per capita income, and
conversely, no state with a high proportion of degrees has a low per
capita income.
"It is a proven fact that graduation translates into increased
earnings," said Terrill. "If we increase the number of college graduates
in Oklahoma, not only will graduates enjoy a better quality of life, but
they will earn higher incomes, which translates into more tax revenue
for the state." In addition, the freshman lawmaker said a supply of
college graduates will attract quality businesses to the state.
"Oklahoma needs more college graduates, and the state should do
what is reasonably necessary to achieve that goal," said Terrill.
Although enrollment into OHLAP is steadily increasing, only 17
percent of all high school students are participating in the program.
Associate Vice Chancellor Bryce Fair said based on Census data, 60
percent of Oklahoma families meet income requirements. "There is quite a
bit of room for growth."
Terrill said after establishing a source of funding that can
support the program's growth, the next component to expanding
eligibility is to include more students. Under HB 1357, students who
receive home-based education and score at or above 22 on the ACT would
be able to participate in OHLAP, provided the students meet all other
requirements.
Terrill said although home-schooled students are enrolled in the
program, they have not been eligible to receive grants. He and co-author
Rep. Bill Nations, D-Norman, have included an emergency provision in the
bill so that if it becomes law, it will deliver assistance to
approximately 100 enrolled home-schooled students scheduled to graduate
this spring.
"We should encourage as many kids as possible to attend
college," Terrill said. He also said students should be required to
continue to meet certain criteria as a condition of receiving tuition
assistance.
HB 1357 would make compliance with an institution's code of
conduct a continuing requirement for program recipients. Examples of
"good conduct" include refraining from alcohol and drug abuse and
avoiding criminal or delinquent acts.
Terrill said he does not expect his proposal to conflict or
interfere with a recently announced plan to use state lottery proceeds
to finance a $500 million higher education bond issue.

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