All news

Lottery slump forces Tennessee to shelve tech college scholarships

Technical college students must wait another year for supply funding as lottery revenues continue to slide.

The Tennessee Lottery District Office in Memphis.
The Tennessee Lottery District Office in Memphis. Photograph credit to Google Maps.
Samantha Herscher

Tennessee's declining lottery revenue has put Governor Bill Lee's scholarship expansion for technical college students on hold. The $12.1 million initiative aimed to help students cover essential equipment and books beyond existing tuition assistance.

While most Tennesseans can attend technical colleges tuition-free, many potential students still face financial barriers. The current scholarships don't cover the complete cost of attendance, including expensive supplies and additional fees that quickly accumulate.

These extra costs prevent numerous qualified individuals from enrolling in technical programs.

State of affairs

Governor Lee included the $12.1 million scholarship plan in his February budget proposal, intending to fund it through lottery proceeds. Lottery revenue currently supports several state scholarship programs, including Tennessee Promise and the HOPE Scholarship.

However, game revenue has declined significantly, dropping by over $70 million in fiscal year 2024, according to state data. Tennessee Education Lottery Corp. collected $501.3 million for lottery-funded education programs during fiscal year 2024, which ended last June.

The corporation projects continued to decline during the 2025 fiscal year, with revenue potentially falling below $475 million.

Multiple factors might contribute to the revenue loss, including inflation, grocery costs, and fuel prices. However, lottery officials attribute the decline primarily to legalized sports betting, which Tennessee approved in 2019.

Sports betting revenue that previously supported lottery-funded scholarship programs has been redirected to K-12 school improvements as part of Lee's voucher plan, enacted this year.

Tennessee Promise participation climbs

Despite funding challenges, Tennessee Promise continues to see strong student interest. The scholarship program recorded 67,593 high school senior applications this year—setting a new participation record in 2024.

This represents an increase from last year's 66,939 applicants, according to the state's higher education commission.

The program, launched in 2015, was the first statewide scholarship of its kind for community and technical colleges, sparking similar initiatives across the country. Tennessee Promise was designed specifically to increase college attendance rates and develop a more educated workforce.

The impact

Technical colleges serve as crucial engines for Tennessee's workforce development. A specialized Tennessee College of Applied Technology facility is currently under construction alongside Ford's major manufacturing plant in West Tennessee to prepare future employees.

TCATs provide education in essential fields, including manufacturing, auto repair, nursing, construction, and mechatronics.

Tennessee currently lacks sufficiently trained workers to fill available positions, with most businesses reporting workforce shortages.

Looking ahead

The governor's office maintains its commitment to the scholarship plan despite the temporary setback.

Tennessee Governor spokesperson Elizabeth Johnson said:

Governor Lee will continue working in partnership with the General Assembly to establish the Tennessee Works Scholarship. As we continue to monitor lottery revenues, we have full confidence that these dollars will continue to be an important resource in funding Tennessee's educational priorities.

Comments

0
Loading comments

Related articles

Antonio Robertson, Corporate Account Sales Manager for the South Carolina Education Lottery (left), with Michael Martin, VP, Retail Solutions.
South Carolina to adopt new retail technology

 Buying scratch-offs in South Carolina stores will be a whole new experience.

Halley Bondy profile pic

Halley Bondy

The Texas Lottery Commission during a meeting.
Texas Lottery Commission votes unanimously to ban online couriers

The state's lottery commission banned courier services, but their problems are just beginning.

Halley Bondy profile pic

Halley Bondy

"Lucky" symbols like four-leaf clovers or the number is 7, over a white background.
Signs you're destined to win the lottery (or at least think you are)

Some call it luck, others call it delusion — either way, these signs will have you feeling hopeful.

Todd Betzold profile pic

Todd Betzold

Texas State flag and the U.S.A. flag
Courier showdown: Texas Lottery faces lawsuit over recent service ban

Lotto.com says it played by the rules and now the TLC pulled the plug without warning.

Todd Betzold profile pic

Todd Betzold

Recent articles

View All
QuikTrip, located at 16791 Market Street in Parker.
After months of waiting, Colorado Lotto+ gets a jackpot winner

It's the first Lotto+ jackpot win since November 2024, with the winner from Parker getting $12.45M.

Todd Betzold profile pic

Todd Betzold

Antonio Robertson, Corporate Account Sales Manager for the South Carolina Education Lottery (left), with Michael Martin, VP, Retail Solutions.
South Carolina to adopt new retail technology

 Buying scratch-offs in South Carolina stores will be a whole new experience.

Halley Bondy profile pic

Halley Bondy

The Colleton County Detention Center.
Man charged after allegedly turning stolen lottery tickets into cash

Police say his $148 payday came from stolen tickets tied to two gas station break-ins.

Todd Betzold profile pic

Todd Betzold

The Oregon State Capitol where the Oregon State Senate meets.
Oregon lawmakers pass bill to hide all lottery winners from the public

Backers claim it's for privacy. But does this open the door to shady ticket sales and tax dodges?

Todd Betzold profile pic

Todd Betzold