Lottery Proceeds Top $1 Billion for Scholarships
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Chip Polston, Kentucky Lottery, (502) 560-1675LEXINGTON,
Ky. (Oct. 2, 2008) − Some 10 years after lottery proceeds in Kentucky started
going to college scholarships and grants, these programs have reached an important milestone.
More than $1 billion in scholarships and grants paid for by Kentucky Lottery proceeds have now
been awarded.
Kentucky Lottery dividends started being transferred away from the General Fund on a gradual basis in fiscal year 1999. Through fiscal year 2008, more than $1.16 billion has gone to fund need-based grants and merit-based scholarships. This has provided more than 900,000 financial awards to Kentucky high school students. The awards are distributed by the Kentucky Higher Education Assistance Authority (KHEAA).
Lottery proceeds started shifting from the General Fund to the scholarship and grant programs in FY ’99. By FY ’06, 55 percent of lottery revenue funded the need-based College Access Program (CAP) and Kentucky Tuition Grants (KTG), while the remaining 45 percent went to the Kentucky Educational Excellence Scholarships (KEES) scholarship program. This type of balance between need-based and merit-based scholarships is unlike any other program offered in the country.
Prior to 1999, the number of students attending college in Kentucky had remained flat for several years. However, since the start of the Kentucky Lottery-funded scholarship and grant programs, college attendance in the Commonwealth has jumped 34 percent. At the same time, KEES data indicates more of Kentucky's best and brightest students are staying in Kentucky to attend college.
"Kentucky's future depends upon the education of our youth. It's essential that our greatest hope and future leaders have access to a solid education," said Gov. Steve Beshear. "Kentucky Lottery proceeds have made it possible for hundreds of thousands of students in the Commonwealth to receive the postsecondary education necessary to compete for jobs in the 21st century. With this assistance, we are making important strides to ensure that our children have a bright future right here in Kentucky."
"The Kentucky Lottery has opened the doors to higher education for hundreds of thousands of students over the past nine years by funding awards for the state's need- and merit-based student aid programs," said Edward J. Cunningham, KHEAA executive director/CEO. "It's clear that the lottery's investment is changing lives by making a tremendous impact on Kentucky students' ability to pursue college or technical training."
University of Kentucky President Lee T. Todd Jr. joined Beshear and Cunningham at the announcement on the University of Kentucky campus today.
"As exciting as it is to celebrate the Kentucky Lottery hitting the billion dollar plateau, I am more pleased with what those dollars represent," said Todd. "Kentucky Lottery-funded awards and scholarship programs provide students across the Commonwealth an opportunity to earn an education from one of Kentucky's prestigious institutions. The programs help make a college education more affordable and accessible to our next generation of leaders, while providing Kentucky with a better opportunity to retain our best and brightest young minds."
All unclaimed Kentucky Lottery prize money goes into the KEES Reserve Fund to help maintain the financial stability of the organization. Around $8 million a year is projected to go into this fund.
The first $3 million in Kentucky Lottery proceeds each year go to the University of Kentucky’s “Read To Achieve” program and the Collaborative Center for Literacy Development, with a total of $27 million going to these programs since inception.
In the 2009-2010 state budget, the first $3 million in lottery proceeds will continue to go to these literacy programs. 78 percent of proceeds will to go to the scholarship and grant programs. The remaining 22 percent, according to HB 406, “shall remain in the General Fund to be used to support restoration of higher education funds."
“The challenges facing the Kentucky Lottery as we begin our 20th year are quite frankly unparalleled in our history,” said KLC President and CEO Arch Gleason. “Economic trends make it clear our work is cut out for us. However, we know Kentucky’s young people are counting on us, and we’re up to the challenge.”
Kentucky Lottery dividends started being transferred away from the General Fund on a gradual basis in fiscal year 1999. Through fiscal year 2008, more than $1.16 billion has gone to fund need-based grants and merit-based scholarships. This has provided more than 900,000 financial awards to Kentucky high school students. The awards are distributed by the Kentucky Higher Education Assistance Authority (KHEAA).
Lottery proceeds started shifting from the General Fund to the scholarship and grant programs in FY ’99. By FY ’06, 55 percent of lottery revenue funded the need-based College Access Program (CAP) and Kentucky Tuition Grants (KTG), while the remaining 45 percent went to the Kentucky Educational Excellence Scholarships (KEES) scholarship program. This type of balance between need-based and merit-based scholarships is unlike any other program offered in the country.
Prior to 1999, the number of students attending college in Kentucky had remained flat for several years. However, since the start of the Kentucky Lottery-funded scholarship and grant programs, college attendance in the Commonwealth has jumped 34 percent. At the same time, KEES data indicates more of Kentucky's best and brightest students are staying in Kentucky to attend college.
"Kentucky's future depends upon the education of our youth. It's essential that our greatest hope and future leaders have access to a solid education," said Gov. Steve Beshear. "Kentucky Lottery proceeds have made it possible for hundreds of thousands of students in the Commonwealth to receive the postsecondary education necessary to compete for jobs in the 21st century. With this assistance, we are making important strides to ensure that our children have a bright future right here in Kentucky."
"The Kentucky Lottery has opened the doors to higher education for hundreds of thousands of students over the past nine years by funding awards for the state's need- and merit-based student aid programs," said Edward J. Cunningham, KHEAA executive director/CEO. "It's clear that the lottery's investment is changing lives by making a tremendous impact on Kentucky students' ability to pursue college or technical training."
University of Kentucky President Lee T. Todd Jr. joined Beshear and Cunningham at the announcement on the University of Kentucky campus today.
"As exciting as it is to celebrate the Kentucky Lottery hitting the billion dollar plateau, I am more pleased with what those dollars represent," said Todd. "Kentucky Lottery-funded awards and scholarship programs provide students across the Commonwealth an opportunity to earn an education from one of Kentucky's prestigious institutions. The programs help make a college education more affordable and accessible to our next generation of leaders, while providing Kentucky with a better opportunity to retain our best and brightest young minds."
All unclaimed Kentucky Lottery prize money goes into the KEES Reserve Fund to help maintain the financial stability of the organization. Around $8 million a year is projected to go into this fund.
The first $3 million in Kentucky Lottery proceeds each year go to the University of Kentucky’s “Read To Achieve” program and the Collaborative Center for Literacy Development, with a total of $27 million going to these programs since inception.
In the 2009-2010 state budget, the first $3 million in lottery proceeds will continue to go to these literacy programs. 78 percent of proceeds will to go to the scholarship and grant programs. The remaining 22 percent, according to HB 406, “shall remain in the General Fund to be used to support restoration of higher education funds."
“The challenges facing the Kentucky Lottery as we begin our 20th year are quite frankly unparalleled in our history,” said KLC President and CEO Arch Gleason. “Economic trends make it clear our work is cut out for us. However, we know Kentucky’s young people are counting on us, and we’re up to the challenge.”