The proposed flat rate for the Lottery Success Scholarship will mean more money for many students, advocates of the bill say.
Legislation before the state Senate Education Committee would set a flat rate for the scholarship instead of paying the cost of tuition.
The money would be placed in an account in the student's name, allowing him or her to use the award to pay for tuition, fees, books or other expenses charged by the university.
Families could claim the cost of tuition on their federal taxes under the Hope Credit.
That means families get more money in the long run, said Letitia Chambers, executive director of the Commission on Higher Education.
"They're going to get $1,500 in their family income that can be used to cover the cost of attendance," Chambers said. "That's a trade-off I'd take any day."
Get content from The Daily Lobo delivered to your inbox
Under the Hope Credit, families can claim up to $1,500 in tuition and fees for the first two years of college.
The Lifetime Learning Credit allows families to claim up to $2,000 in tuition and fees, but it cannot be used at the same time as the Hope Credit.
Low-income families would not qualify for the credits if they do not pay taxes. Chambers said families who earn around $20,000 a year or less would generally not qualify.
According to a study published in November, 70 percent of those who have received the lottery scholarship at UNM from 1998 to 2003 came from higher-income families, those that made more than $40,000 a year.
The study was written by UNM economics professors Melissa Binder and Philip Ganderton.
However, Chambers said other legislation would cover those students.
"No one is going to be a net loser," she said.
The proposed College Affordability Act would provide $15 million in need-based scholarships to New Mexicans.
Chambers and Elizabeth Guiterrez, the governor's education adviser, said the change to the lottery scholarship would keep more money in New Mexico.
Both Chambers and Guiterrez said more than $6 million would stay in the state instead of going to the federal government.
That much money could make a big difference for a small state like New Mexico, Chambers said.
The Senate Education Committee passed the act on Friday. The committee did not take action on bills relating to the lottery scholarship.
According to the committee schedule, it will hear the flat-rate proposal, Senate Bill 651, today during its 2:30 p.m. meeting.
Senate Lottery Bills
Senate Bill 651 would set a flat rate for the Lottery Success Scholarship instead of linking the award to tuition. The Legislature would determine the rate each year. Next year, scholarship recipients at UNM, New Mexico State University and the New Mexico Institute of Mining and Technology would receive $1,400 a semester.
Senate Bill 385 would expand the lottery scholarship to those attending private colleges in the state and students who attend college within two years of college graduation.
Senate Bill 121 would give students a second chance to regain the lottery scholarship if they stay in school.
Senate Bill 822 would expand eligibility to all full-time resident students who maintain a 2.5 grade point average.
Senate Bill 122 would allow a "stop out" period in which students who take off up to two consecutive semesters could return to college and receive the scholarship if they met all other requirements.
Senate Bill 707, as amended in the Senate Education Committee on Friday, would prohibit students at four-year institutions who take remedial classes from receiving the lottery scholarship.
Senate Bill 37 would expand eligibility to students who do not attend college the semester after they finish high school or obtain a graduate equivalent diploma.
