FRANKFORT, Ky. – As Kentucky lawmakers begin to put together another two-year budget for the state, higher-education advocates want them to stop what the advocates say is a troubling trend – taking state lottery funds away from need-based scholarships.
For years, lawmakers have swept lottery profits earmarked by law for financial aid into the state's general fund.
Ashley Spalding, a research and policy associate with the Kentucky Center for Economic Policy, says the problem is causing the state to miss out on an important investment.
"Financial issues are really a key reason that students might not enroll and certainly that they wouldn't finish their degree – that they might have to leave college in order to work," she states.
Spalding says since 2009 the amount of lottery profits taken from scholarships designed to help low-income students has steadily increased – reaching $34 million this year.
Under state law, after $3 million is given to literacy programs, 55 percent of the remaining lottery profits are supposed to pay for need-based financial aid and the other 45 percent for merit-based scholarships.
Eliza Jane Schaeffer, a senior at Henry Clay High School, is heading to college next fall. She says pulling money from need-based scholarships creates an inequity.
"I will not qualify for need-based aid, but I think it's unfair that I might have more options than some of my peers who have similar ambitions," she states.
Schaeffer is one of 80 middle school through college students on the Prichard Committee for Academic Excellence Student Voice Team.
That student group is part of the public outcry over lawmakers raiding lottery funds to plug holes in the state budget – a move Spalding says amplifies the problem.
"Every year, thousands of students are turned away from these scholarships,” she stresses. “In 2015, more than 62,000 students who were eligible for need-based financial aid didn't receive it due to a lack of funds."
Spalding says if need-based scholarships had gotten all of their lottery money, another 15,000 students would have received help.
While Gov. Matt Bevin wants all of the lottery money to go to education, he has added another wrinkle to the debate, by proposing that some of the money go to workforce development scholarships.
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Connecticut education advocates feel Gov. Ned Lamont's 2026-2027 budget proposal continues a history of underfunding education. While the new budget increases special education spending by $40 million, some feel it's not enough as Connecticut is in the third year of a statewide teacher shortage.
Kate Dias, president of the Connecticut Education Association, said education funding must change to benefit the whole system.
"What we tend to do is say, 'The costs were 260 million, we'll budget 160', without realizing districts across the state have to absorb $100-million in expenses," she explained.
She added that if special education needs $260 million in funding, that's what should be included in the budget. Another issue includes reviewing the Education Cost Sharing formula which hasn't kept up with the rate of inflation. She said adding more dollars to school districts can help retain educators and expand a dwindling workforce.
Underfunding of education left Connecticut with larger class sizes and lower wages for all educators, making it harder to recruit new teachers. A 2024 survey finds 97% of educators are concerned about burnout because they're wearing many hats. But Dias said proving there's a problem is a challenge to get more education funding.
"One of the challenges we face is, ironically, our educators do a really good job of overcoming some of these barriers. We have teachers who put their own money back into their classrooms. As a result our test scores, our national ranking if you will, has not gone into the toilet," she continued.
This comes as federal education dollars are imperiled by President Donald Trump's agenda. Beyond executive orders initiating a total federal funding freeze, his plans to dismantle the Department of Education worry Dias, who believes as Connecticut's budget planning continues, the state of the federal government lurks in the back of her mind.
"Connecticut's not going to be able to cover for the federal government. It will be a loss of services to families and children, and that's the bottom line. In the education space, the loss of federal funds is a reduction in school lunch. We're not going to be able to provide school lunches," she concluded.
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An effort to increase students heading into high-demand jobs from North Carolina's community colleges is receiving a "boost." The N-C Community Colleges Boost program has received more than $35 million from the philanthropic organization Arnold Ventures to launch a new pilot in the state supporting students.
Patrick Crane, vice president for strategic initiatives with the North Carolina Community College System, which announced the program, said there are eligibility requirements.
"We see Boost really as a workforce development strategy for North Carolina. And so, one of the eligibility requirements for students is that they are enrolled in a program that leads to a high-demand job or a transfer pathway leading to a high-demand job," he said.
The program is launching in 8 community colleges this year and seven in 2026. NC Community Colleges Boost is modeled after a similar program in New York. North Carolina's program is also ensuring rural community colleges can participate. Crane says the goal is to run the program statewide after the initial pilot.
The Boost program is designed for students with the greatest needs. It includes a $100 stipend for meeting with advisors on a regular basis and $600 for textbooks. Boost also ensures smaller student-to-advisor ratios than the average, at 150 students to one advisor. Crane says structured pathways are another crucial element, and students in the program must attempt to take at least 24 credits per year.
"What we've seen in New York, Ohio and other places is that when students receive these financial supports and these personnel direct services from their advisors and others, it helps them take more credits and therefore accelerate to completion," he continued.
Crane added that students have to make a commitment to be in the program.
"If they're willing to do that, we're willing to support them because we know when they get out the other side, they're working a great job, they're going to be contributing to the state. So, we really see this as a partnership between students, colleges and the state," he explained.
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In rural Mississippi, where education disparities run deep, community leaders are stepping up to fill the gaps left by limited resources and geographic isolation.
Mississippi has one of the highest child poverty rates in the nation, with one in three children living below the poverty line.
Yolanda Minor, state director of Save the Children Mississippi, is at the forefront of efforts to improve education outcomes for children in some of the state's most underserved areas.
"Some of the barriers are poverty, lack of access to high-quality early education, teacher shortages," Minor outlined. "One of the biggest ones is geographic isolation."
Many families lack access to high-quality early education programs, and teacher shortages leave some students with long-term substitutes instead of certified educators. Simply getting to a school or learning center presents a challenge in many areas.
One solution has been to partner with churches and school districts to create tutoring hubs in Quitman County, where students can receive extra academic support outside of school hours.
Advocates stressed early learning investments are crucial for long-term academic success.
Nick Carrington, managing director of community impact for Save the Children, noted children who attend preschool and other high-quality early learning opportunities are more likely to enter kindergarten ready to learn. He also mentioned the early advantages often contribute to stronger reading proficiency by third grade.
"We're currently working with 25 rural communities across eight states and what's now a national network," Carrington explained. "We're learning from them and they're learning from each other to strengthen their work."
Minor pointed out making simple adjustments, such as adjusting school bus routes to bring students to different locations, has also helped increase participation.
"By having the churches act as tutoring hubs and revising the bus routes to make services more accessible to those children that may not have transportation," Minor noted.
Despite the efforts, advocates said rural education in Mississippi still lacks the funding and infrastructure needed to ensure every child starts school on equal footing. A report last year by the National Rural Education Association ranked Mississippi as one of the states most in need of increased funding to support students in rural districts and help schools attract and retain qualified teachers.
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