BusinessTN

Supporters of the newly established Tennessee Lottery are quick to focus on the educational opportunities the program provides. Much has been made of the HOPE scholarship program and its benefits for college-bound high school seniors. Thanks to HOPE, students with B averages or better will be eligible for tremendous amounts of financial-aid to attend in-state colleges and universities. Without a doubt, the potential upside to the business community that accompanies an expanded pool of college-educated youth is substantial, if somewhat theoretical.

But the lottery program carries with it a lesser-known educational component—one that promises to have a much more immediate impact on Tennessee’s workforce.

The Wilder-Naifeh Technical Skills Grant will allow students in pursuit of a diploma or certificate to attend a Tennessee technology center free of charge. The grant has no age, GPA or standardized test requirements. Employees need only fill out a Free Application for Federal Student Aid (FAFSA) form—available in most schools’ financial aid office—to be eligible for the grant.

The immediate benefits of the program are obvious. Employers will be able to develop employee skills without bearing the costs. According to Bill Young, executive director of the Tennessee Associated General Contractors, employees who complete the training programs offered by the state’s technical centers are “the cream of the crop.”

There are some drawbacks. As one might expect, given how cheaply Wilder-Naifeh can enhance an employee’s worth to an employer, the program is expected to be popular. Those who sponsor workers can expect a waiting period before the employee can begin classes. Waiting lists for some of the more popular programs are already soaring above five hundred people. With so many people trying to get into the programs, those at the bottom of the list can expect to wait a year or more. Officials are working to correct this problem but warn that things probably will get worse before they get better.

This delay will be exacerbated by the fact that there are fewer available institutions for training than one might think. The grant applies only to publicly funded tech centers, and many of the technology centers in the state are actually privately owned. Nashville Auto Diesel College is owned by Lincoln Educational Services Corp., a New Jersey company, for example. Nonetheless, there are still 27 schools from which to choose throughout the state.

One larger, more troubling issue looms, however. The flood of new students means an increased burden on the resources of the institution being attended. Georgia, which served as the model for the Tennessee Lottery Scholarship program, has a grant program that is the equivalent of Wilder-Naifeh. Since its introduction, Georgia tech schools have experienced a 7% increase in enrollment. To help higher education cope with the flood of new students caused by the program, Georgia allocated $230 million in additional funding to the schools affected. Compare this to Tennessee, which not only failed to provide any additional funds but recently cut funding by 9%. With 80% of their funding coming from state appropriations, Tennessee tech centers will not be able to afford to increase capacity for any of the programs. As a result, while the grant might be a comfort for employers, the inevitable surge in enrollment is a potential nightmare for educators.

“We could handle a 7% increase in enrollment,” says James King, vice chancellor of Tennessee technology centers. “Beyond that, I’m not so sure.” Educators fear the stress this and other grants will place on the infrastructure of higher education, and are bracing for the impact.

Still, despite possible cracks in its foundation, the Wilder-Naifeh Grant offers an exciting opportunity to employers and employees alike. Over time, the free—well, lottery ticket buyer-funded—training should improve the quality of Tennessee’s workforce. So even the employer unable to get an employee past the waiting list today can anticipate a better-trained field from which to choose tomorrow.