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Local Lobbying for State Grants: Evidence from Georgia's Hope Scholarship

John Charles Bradbury

University of the South

Noel D. Campbell

North Georgia College & State University

Georgia's HOPE Scholarship is a merit-based aid program intended to provide educational resources for qualified Georgia residents who attend college within the state. The sole determinant of HOPE eligibility is high school grade point average (GPA), which may differ by school district (county). The subjective nature of GPAs gives localities the ability to increase the consumption of education subsidies by lowering academic standards. Consistent with this analysis, the authors find systematic differences in grade assignments across counties, and proxies for local interest group pressure for grade manipulation are associated with greater HOPE eligibility.

Key Words: HOPE Scholarship • merit-based aid • public education funding • fiscal commons • state lotteries

Public Finance Review, Vol. 31, No. 4, 367-391 (2003)
DOI: 10.1177/1091142103031004002
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