HB 789 - SB 1151
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
March 6, 2025
Fiscal Analyst: Laura Moore | Email: laura.moore@capitol.tn.gov | Phone: 615-741-2564
HB 789 - SB 1151
SUMMARY OF BILL: Deletes the requirement that a student eligible for the Tennessee
STEP UP Scholarship must be enrolled no later than 16 months after completing high school.
FISCAL IMPACT:
STATE GOVERNMENT
EXPENDITURES Lottery for Education Account
FY25-26 & Subsequent Years >$99,000
OTHER FISCAL IMPACT
Recurring funding estimated to exceed $99,000 beginning in FY25-26 and subsequent years, will
not be available for transfer from the Lottery for Education Account to the Tennessee Promise
Scholarship Special Reserve Account.
Assumptions:
• The Tennessee STEP UP Scholarship is a program designed to assist students with
intellectual disabilities who have completed high school and enrolled in an individualized
program at an eligible postsecondary institution.
• According to the Tennessee Education Lottery Scholarship Program 2024 Annual Report,
an estimated 101 students received the STEP UP Scholarship in FY23-24, for a total of
$423,025 in expenditures from the Lottery for Education Account.
• Deleting the 16-month enrollment after high school requirement is estimated to increase
the number of students who will qualify to receive the scholarship.
• The Tennessee Student Assistance Corporation provides that based on the average number
of eligible students currently enrolled at eligible institutions, an estimated 22 additional
students will be eligible for the scholarship in FY25-26 under the proposed provisions.
• The STEP UP award provides an annual $4,500 for freshmen and sophomores enrolling in
a 4-year postsecondary institution and up to $5,700 per semester as a junior and senior.
• The recurring increase in state expenditures from the Lottery for Education Account is
estimated to exceed $99,000 (22 students x $4,500 award) in FY25-26 and subsequent years.
HB 789 - SB 1151 2
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director