$10 million needed to fully fund scholarship grants for students
Are computerized drawings hurting sales? Will the Tennessee Lottery bring back real ball drawings? Why is Powerball always blamed for poor financial showing in Tennessee?
The state of Tennessee probably will have to pull about $10 million from reserves to keep lottery scholarships fully funded this year, budget officials said after reporting a revenue shortfall last week.
State Budget Director Bill Bradley said the state will fall short by an additional $3.2 million of the $266 million needed to fund the scholarships. Gov. Phil Bredesen already had requested $6.6 million from reserves to cover a projected shortfall in the scholarship fund. The full amount is likely to come from the $381 million lottery reserve fund.
About 88,000 lottery scholarships were awarded in 2008-09.
Although lottery ticket sales are slightly higher than they were at this point last year, the state has also paid out more prizes, as players chose games with higher chances of winning. Powerball revenues also declined due to the lack of a jackpot in the range of $200 million-$300 million, a figure that typically draws more players.
"The difference in not having a $300 million Powerball jackpot is as much as $25 million (to the state)," said Rebecca Hargrove, president of the Tennessee Education Lottery Corp.
The state probably will have to take out more from reserve funds next year, when the cost of the lottery scholarships is expected to rise to $276.5 million as students remain eligible for the money and others get scholarships for the first time. At the same time, the lottery corporation does not expect revenue to increase next year.
Last year legislators lowered the grade-point-average standards and expanded eligibility for the state's HOPE scholarship, which gives $2,000 to students at two-year schools and $4,000 to university undergraduates.
The state spent $225.8 million on about 76,300 scholarships the year before the standards were changed, according to the Tennessee Higher Education Commission.
Expansion is in doubt
The shortfall probably means the end to requests from lawmakers to expand the lottery scholarship program this year.
Despite the lower revenue, Rep. Gary Moore, D-Joelton, expects the legislature to pass a bill expanding a grant program created last year for Iraq and Afghanistan war veterans.
Last year $439,200 of the fund's maximum amount of $750,000 was used for the grants.
"The money was set aside for that purpose, and it's the only reason we have the money there to do it," Moore said.
He was doubtful, however, that a separate bill for $33,000 in grants for firefighters in training would make it through the legislature.
Thanks to four4me for the tip.
From what I've read from other Tennessee players online here at the Lottery Post, Players not only need to feel like they have the chance to win, they must also experience the win; no matter what the prize size. Sustainability does not come from some a state lottery figure-head telling everyone how great and wonderful computer generated numbers are, it comes from the players themselves; through their actions that generate revenue. When someone feels they can't win by chance and experience the satisfaction of a reasonable win, they tend to not play. Hence, the drop in sales. Now their may be those who would like us to believe it's some other reason why they have failed to convince us computer generated numbers are the real deal, but that is the just same-old, same-old. As long as lottery players feel they have no chance of winning, by chance and actual experience, then the revenues will continue to be low.
In Ohio the drawing are shown on TV stations around the state take between one anad two minutes and that includes a lotto ad.
What the State of Tennessee ought to do, is take the 10 million dollar shortfall out of
Mrs. Hardnose's salary, this way they can kill two birds with one shot.
That would get rid of her, and the computerized drawing would surely follow her home...
Adios sin-or-eta. Have a nice trip, see ya next fall....!
The reason I stopped playing the Tennessee Lottory is due to the lack of transparency. Today, the officials go into a little windowless room, press the enter key on a computer, walk out and then annouce what the winning numbers were. What goes on in that room is anyone's guess. My guess is they chose the combination that will result in the least amount of payout in each game.
Until they return to ball draws and show the balls dropping, I will continue to spend my lotto dollars in Illinois and Georgia.
When lottery players don't win, they don't SPEND!!
Thats what RPAUL ALWAYS SAYS "ITS Powerball sales" she is insane,thats not true at all and she knows it...its all the other TN online games that TN messed up when they brought in RNG and did not even tell the players of the change..change in drawbreak times,lucky sum...its not even on the Tn cash 3 or cash 4 playslip,they should have printed new slips by now,the scratches??????
Bring back the ball drawings NOW!!! C2
Did you read the big Pauly?Little hit it ,cause thats all we can hit in TN!C2
If you check the "Related Stories" box above, you'll see another article from 2008 where she blamed Powerball also. I guess when you're looking for cover, it always helps to blame someone else!
This is the best solution to the problem that I've read,yet!
Todd,
Thats funny Iwas just telling the old lady the same thing RPaul said the same thing last time there was a problem,as u said, or i SAID, UH??
C2
"Last year legislators lowered the grade-point-average standards and expanded eligibility for the state's HOPE scholarship,"
When there is an expansion to make more students eligible to use up the funds it will come back to bite you when their is a shortfall of funds.
Computerized drawings back home roosting on Hargrove's head.
The irony of it all. 
Totally agree with both littleoldlady and JAP79. Both are route causes.