Tennessee Looks To Divert Sports Wagering Taxes To Promise Completion Grants
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The Center Square [By Jon Styf] –
A proposal aimed at helping low-income students complete their degrees through the Tennessee Promise scholarship program will soon be heard in the Tennessee Legislature.
Rep. Mark White, R-Memphis, explained that a bill that would direct 5% of taxes collected from sports gambling in the state toward completion grants was aimed at improving student retention for low-income students.
Tennessee Promise is a scholarship, which started in 2014, to help students obtain an associate degree, credential or diploma free of tuition and mandatory fees.
It’s a last-dollar scholarship, meaning it will cover costs after other scholarships are factored in at community colleges, or it will fund up to the $4,000 average community college tuition mark for associate degree programs at four-year schools.
White said data showed just 33% of low-income students in the program return for a second year. But, when coaching and grants to pay for the additional expenses of being a student are paid for, that 82% of those students stay to complete their degree.
An amendment to House Bill 2184 capping the annual 5% going to the program at $5 million annually was added on Monday and the bill will be heard by the Tennessee House Higher Education Subcommittee soon as part of a committee calendar devoted to Lottery for Education bills.
The bill will make what was previously a pilot program for grants into a permanent program. A fiscal note on the bill estimates that it will initially divert $4.2 million annually into the completion grant account.
The Tennessee Sports Wagering Council collected $83.6 million in sports gambling privilege tax in calendar year 2023.
Tennessee collected $82.1 million in privilege tax on mobile sports wagers last fiscal year with $78.8 million projected this fiscal year and projections of $82.7 million next fiscal year before reaching a projected $86.9 million in taxes the following fiscal year.
About the Author: Jon Styf, The Center Square Staff Reporter – Jon Styf is an award-winning editor and reporter who has worked in Illinois, Texas, Wisconsin, Florida and Michigan in local newsrooms over the past 20 years, working for Shaw Media, Hearst and several other companies. Follow Jon on Twitter @JonStyf.
