Listen to “Legislators Appear to Have a Deal on Hope Scholarship” on Spreaker.
Sources close to the process say a deal has been reached on the House Finance–originated bill that would place various levels of restrictions on the Hope Scholarship beginning in fiscal year 2027. Thursday’s happenings should confirm whether that understanding holds.
As the agreement currently stands, there would be no substantive changes to the Hope Scholarship for the upcoming program year. The only adjustment would be a cash-flow management change, shifting payments from two distributions per year to four quarterly installments.
NEWS from Dave Wilson: Future of bill making changes to Hope Scholarship remains uncertain
A good deal is one where every party gains something and leaves something behind. By that definition, this appears to be a good deal.
Hope Scholars and their families would not have to navigate new eligibility rules or restrictions, or lose any amount of funding already promised for the coming year from a proposed cap. Even small rule changes this close to a program year create uncertainty, and avoiding that disruption is beneficial. Quarterly payments may be less convenient for some families, but they should not create material hardship.
Legislators concerned about rising enrollment — more so the financial obligations that follow — have raised legitimate fiscal questions. Those concerns are now formally on the record. With another full year of participation data ahead, lawmakers will have clearer enrollment projections before revisiting the issue. One consistent refrain during debate has been: wait until we have better numbers. This agreement does exactly that, preserving the ability to reconsider the program’s fiscal impact next year.
The originating bill also appears to have served another purpose: leverage in the broader budget negotiations quietly underway between House and Senate leadership. By introducing potential Hope changes, the House created political space for Senate members to prioritize protecting the scholarship program over supporting the governor’s proposed tax cut.
NEWS from Brad McElhinny: The House bakes its version of the budget bill and adds some spice
Fiscal conservatives skeptical of the governor’s budget — particularly the proposed 10 percent personal income tax reduction — secured something significant in return. Medicaid and most Hope Scholarship spending are now positioned within general revenue funding, relying on tax dollars reasonably expected to materialize rather than surplus dollars that may or may not appear. That aligns with the fiscal best practice of funding ongoing obligations with general revenue dollars. Combined with leaving some general revenue unallocated for contingency, this approach reflects a more cautious fiscal posture. Spending every dollar allocated – general or surplus – without a cushion is NOT fiscally responsible.
Fiscal policy aside, however, the manner in which the budget process is unfolding raises concerns.
During Wednesday’s budget presentation from the floor, House Finance Chairman Vernon Criss noted that while Governor Patrick Morrisey appeared in his committee – unusual for a governor – during Hope Scholarship discussions, the governor has not met directly with him or Vice Chairman Clay Riley regarding the budget itself.
It’s no secret that Criss and Morrisey have a strained relationship. Personal chemistry is not required for governing, but communication is. The absence of direct outreach to key House Finance leaders has puzzled lawmakers and reinforces concerns about the governor’s ability to build the legislative relationships necessary to advance his agenda.
As one legislator privately observed this week: “If I were governor, I’d be up here every day working with legislators to get buy-in. He doesn’t do that.”
Nothing is final until a budget bill is passed and signed.
The expectation inside the Capitol is that the Legislature will ultimately pass a budget, however, early enough in the session to allow time for overrides of any line-item vetoes the governor may issue.
It remains to be seen how the politics of the budget process will or will not affect the upcoming Republican primary campaigns… betting it will is not unsound.