Lottery Dollars vs. Outcomes: Questions That Need Answers

1. Lottery Dollars vs. Outcomes:Questions That Need Answers

2. Today’s Objectives • Prepare you for the debate • Raise issues for the future of lottery programs • Share Voices’ recommendations • Enlist your support

3. Informing Lottery Budget Decisions: HOPE and Pre-KGSU Fiscal Research Cntr • Dr. David Sjoquist & Dr. Mary Beth Walker • Funders: Voices, GPEE, UW, Blank Fndn. • Community Advisory Committee • Education Commissioner Interviews • Study Report • Legislative Intent • History, budgets, participants • 69 studies reviewed • “…how different allocations of lottery revenue between the Pre-K and HOPE programs might affect the achievement of the objectives of these two programs”

4. Lottery Funds History YR. PRE-K% HOPE-College HOPE-Tech # Budget % # Budget # Budget • 94 8,700 $37M64% 24,443 $16M 16,971 $ 5M • 97 57,000 $20558% 70,636 $121 56,056 $ 30 • 00 62,000 $225 52% 78,462 $166 69,128 $ 41 • 03 65,900 $25341% 99,915 $262 113,317 $ 98 • 06 74,000 $29040% 104,811 $332 108,319 $102 • 07 76,600 $30941% 107,464 $354 100,414 $ 96 • 08 78,000 $32542% 99,422 $353 103,601 $105 • 09 79,000 $33739% 102,691 $392 114,288 $129 • 10 82,000 $34235% 109,869 $453 138,982 $183 • 11 84,000 $35532% ?? $536 ??? $206

5. Changes in $$ Per ChildThere was a dramatic reduction in the allocation per child when Georgia PreK lifted the income limitations in FY96. There is no consistent annual increase in the amount. The $4,136/per child in 1996 is the equivalent of $5,818 today. Studies suggest that real quality costs $5,000+ to $11,000/child. FY 1993 750 slots $ 4,000 FY 1994 8,700 slots $ 4,253 FY 1995 15,500 slots $ 5,032 FY 1996 44,000 slots $ 4,136 First year of Universal Eligibility FY 1997 57,000 slots $ 3,596 FY 1998 60,000 slots $ 3,500 FY 1999 61,000 slots $ 3,541 FY 2000 62,000 slots $ 3,629 FY 2001 62,500 slots $ 3,664 FY 2002 63,500 slots $ 3,732 FY 2003 65,900 slots $ 3,839 FY 2004 68,200 slots $ 3,812 FY 2005 72,000 slots $ 3,833 FY 2006 74,000 slots $ 3,919 FY 2007 76,600 slots $ 4,034 FY 2008 78,000 slots $ 4,167 FY 2009 79,000 slots $ 4,266 FY 2010 82,000 slots $ 4,171 FY 2011 84,000 slots $ 4,226Current Year

6. Voices’ Conclusions of GSU Study • What’s the impact of PreK? • In GA? We don’t know • No longitudinal research • 2 of 34 studies examined were on GA PreK • In USA? Significant contributions • 40 years of research • Improved K-12 outcomes; life outcomes • Tax savings over time; $4+ saved for $1 invested • Conclusion: Refine GA PreK to achieve educational and investment results

7. Voices’ Conclusions of GSU Study(continued) • What is the impact of scholarships/grants? • In Georgia through HOPE? • Higher HS grades but not more academic courses • More high school grads starting college in GA • More high achievers attending college in Georgia • Some impact on grades; also on course selection • Nationally? • Reducing tuition increases participation • Graduates tend to stay in states where they go to college • Conclusion: Refine HOPE to motivate learning, not grades, and completion, not just attendance

8. Advocacy Agenda for Lottery • For FY12, minimize changes to PreK and HOPE • Create Commission on the Future of Lottery Programs – deliver recommendations by end of 2011 • Set 10 year objectives for PreK and HOPE • Charge education agencies to develop guidelines to achieve the objectives • Set aside annual budget for longitudinal research and evaluation • Voices’ Goal for Lottery-Funded Programs: Open the Doors to Education! • PreK: Get all kids ready for kindergarten • HOPE: Increase higher education graduation rates of GA high school grads

9. PreK Questions for the Commission • Per Child allocations for Georgia PreK today are about the same as 1997. What is the real cost of providing quality PreK? • The waiting list for Georgia PreK in Nov. 2010 was almost 10,000 children. Where are these children and what do we lose by not serving them? • About 35,000 4-year olds are not in Georgia PreK, in Head Start, or on the waiting list. Will they be ready for kindergarten next year?

10. HOPE Questions for the Commission • The U.S. is declining in international comparisons of % of population with college degrees. After 17 years of HOPE, has the college graduation rate in GA improved? • 60% of recipients lose HOPE during their college program. What is the profile of these students and how many were working while in school? • 70% of students in Tech schools receive HOPE grants. What % of these students enroll in programs that support Georgia’s targeted industries for economic growth?

11. Call to Action on Georgia Lottery • Speak up to preserve programs in FY12 • No cuts in per child dollars for GA Pre-K • Preserve 84,000 slots • Join Voices in calling for a Commission on the Future of Lottery Programs • Ask your legislator: What are the best outcome for Georgia from lottery-funded programs? • Call for accountability – provide annual funds for longitudinal research and evaluation • Open the Doors to Education! • Prepare all kids for kindergarten • Increase higher ed grad rates among Georgia students

12. www.georgiavoices.org