Governor's plan for Hoosier lotto would allocate $1 billion toward scholarships

Gov. Mitch Daniels' plan to privatize the Hoosier Lottery and use the money to fight Indiana's 'brain drain' will be heard this legislative session, said Daniels' press secretary Jane Jankowski.\nThe money from the sale of the state lottery to a private operator could yield $1 billion up front and $200 million a year. Under Daniels' plan the proceeds would go to scholarships for college students who stay in Indiana and for out-of-state scholars and researchers to come to Indiana. \nOf the initial $1 billion earned from the sale, $600 million would go to the Hoosier Hope Scholarship fund, according to Daniels' proposal. The fund offers $5,000 scholarships a year to students who attend college in state and remain in Indiana for three years after graduation.\nThe remaining $400 million would be used for the World Class Scholars Program to encourage experts and researchers to come to Indiana's public universities. The money would assist colleges by creating endowments to cover salary and startup costs.\nIU Director of Media Relations Larry MacIntyre, said IU President Adam Herbert supports the proposed scholarship programs.\nHerbert said in a press release that the plan will foster an intellectual economy for Indiana and make university campuses more accessible to students.\n"This creative plan will … expand educational opportunity and encourage more of our best students to remain in Indiana," Herbert said in the statement. "The program will enable us to attract even more of the world's most outstanding scholars to Indiana." \nThe new session of the general assembly began Jan. 8. Lawmakers will consider privatizing the state lottery as just one of three privatization proposals made by Daniels, Jankowski said.\nJ.T. Forbes, assistant IU vice president and executive director for state relations, said that the scholarships could make IU especially attractive to local companies, especially companies studying life sciences.\n"We know our work in life sciences would go a long way in diversifying the economy and will go a long way in providing jobs for hoosiers," Forbes said. "Funding IU's plan would make Indiana an even more attractive place for companies that depend on university-based research."\nThe plan was met with mixed opinions when Daniels made the announcement at a press conference Dec. 14. \n"I would say to those who have questions about it, what's your plan? What is your plan to lift us over the next 10 years to a position we really must have?" Daniels said in a press conference video provided by the Governor's office.\nIncome generated by the state lottery currently funds teacher, fire department and police pensions and alleviates excise taxes on motor vehicles, according to a press release from Daniels' office. Indiana House Speaker, B. Patrick Bauer (D-South Bend), raised concerns about future funding for those causes if state lottery money is used for scholarships. \n"I would like to think that any proposal would ensure that excise tax relief and pension programs get the same levels of support as in the past, but the devil is in the details and this administration does not have a good track record in backing up its claims," Bauer said in a statement.\nRegardless, Bauer and representatives from Daniels' office said the General Assembly will hear the plan in the new session.