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New Mexico Legislative Lottery Summit 2013

Photo by Jimmy Emerson.

Photo by Jimmy Emerson.

New Mexico Legislative Lottery Summit
April 27, 2013
Fidel Center, New Mexico Tech Campus, Socorro, New Mexico 

Attendees: Bernadette Montoya, Janie Merchant, Judy Bosland, and Melody Munson-McGee

Lottery Update
Tom Romero, New Mexico Lottery Commission

  • 100% of the net proceeds from the Lottery Commission go to the Legislative Lottery Scholarship.
  • Over its history, $560 million has been raised for education by the Lottery Scholarship; there have been 82,000 recipients of the Lottery Scholarship and 34,000 Lottery Scholarship graduates.
  • The return of Lottery proceeds to education has improved, and last year set a record.
  • The Lottery is required to send 30% of proceeds to the fund. Recent changes related to this requirement have reduce retailer and employee incentives. The Lottery Commission reduced employment from >100 employees to only 55 today; advertising and prizes were also reduced.
  • 10-20% of the ad budget goes to beneficiary awareness. Jackpots and specific games are also targets of ad campaigns. 

Tracy Hartzler-Toon, Principal Analyst, Legislative Finance Committee

  • High school graduation rates are flat (~19,000 students/year). The number of students within the White and Native American demographic groups will be flat, but the number of Hispanic students are greatly increasing. We are seeing a gap between young people with post-secondary education and older people. We are not replacing college education credentials in older generations.
  • New Mexico students have $15-16,000 average debt compared to $26,000 nationally.
  • FY 14: $9.8 million was added to Lottery Tuition Fund by the Legislature.  The Higher Education Department will have an estimate of how much tuition this will cover in late Spring.
  • State-wide goal: we want more degree holders at all ages and more students to complete. We would like to increase rates amount broader range of income levels, ethnicity, etc.
  • National conversation on where aid should go is focusing on need plus basis: students should demonstrate a need for the funds PLUS they should be making progress toward degree attainment.

Travis Dulany, Legislative Education Study Committee

  • The Legislature amended Lottery Scholarship eligibility to add those serving in the military, veterans, and people with disabilities. Military dependents are eligible for the Lottery Scholarship if they earn a New Mexico high school diploma.
  • Questions: Should the Lottery Scholarship pay for developmental work? Pay for only 6 hours of developmental course work? Should there be a limit on the number of credit hours the scholarship will pay for? Should we limit eligibility for GED recipients to those 24 years old or younger? Should we allow year-round Lottery Scholarship support?

Judy Bosland, NMSU Institutional Analysis

This talk addressed three questions:

1. Are more students pursuing higher education at NMSU because of the Lottery Scholarship?

  • There is an increase of Lottery recipients across all ethnicities, especially Hispanics.
  • There is a higher percentage rate of students with the Lottery Scholarship if those students have higher income or are more prepared for college.

2. Does the Lottery Scholarship make a difference in student success at NMSU?

  • Graduation rates are higher for students that receive the Lottery even for just one semester. This is true regardless of ethnicity, income, or preparation scores.

3. Who will be affected by changes to the Lottery Scholarship at NMSU?

  • Some of last year’s proposed changes would make Hispanics, other minorities, and lower income students less likely to receive the Lottery Scholarship.

Bottom Line: There are no easy answers. But we should seek to understand the Legislature’s purpose of the scholarship.

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