CHEYENNE -- State lawmakers are considering changes to the Hathaway Scholarship program, but critics warn that the state-funded scholarships are on the verge of becoming an entitlement.

The 2-year-old program offers tuition assistance to Wyoming high school graduates who meet academic standards set by the Legislature last year.

More than 1,850 students in 2006-07 qualified for Hathaway awards, which are funded with a $400 million endowment created largely with surplus state mineral revenue.

The House and Senate have already endorsed Senate File 21, which would allow college students who lose their Hathaway eligibility to regain their awards by taking remedial steps.

On Friday, the House attached a last-minute amendment that would give students the opportunity to increase the size of their scholarship awards if they excel in their college courses over time.

For example, students whose high school grades earned them an $800 scholarship could double that amount in college if they earn a 3.4 grade point average for two straight academic years.

Supporters of the amendment say it provides an incentive to succeed, but others insist the amendment is inconsistent with the intent of the program.

“This is a high school scholarship program designed to go to graduating seniors,” said Sen. Hank Coe, R-Cody, chairman of the Senate Education Committee, who opposes the amendment. “It’s not an entitlement program.”

One of the chief concerns is cost. Hathaway is relatively new, and it's unclear how many students will qualify for the program over the long term.

There are also some indications that the $400 million endowment, which should be fully funded by April, is earning less than was originally estimated.

It may be imprudent to make big changes before some of those variables are worked out, said Rep. Del McOmie, chairman of the House Education Committee.

“This is in its infancy,” McOmie added. “We don’t know how it is going to perform.”

The amended bill has the potential to be a bookkeeping nightmare for colleges, said James Rose, executive director of the Wyoming Community College Commission.

He noted that colleges and the University of Wyoming are already responsible for tracking students who lose their scholarships.

If the amended bill becomes law, the colleges and UW would be required to track students who regain their scholarships and those who qualify for additional money.

Hathaway scholarships have contributed to increased student enrollment, but the colleges and UW receive no money to administer the program, Rose said.

“When you add these other elements, it compounds the complexity,” Rose said. “I have some unease solely from the administration of it.”

Rep. Sue Wallis, R-Recluse, the amendment sponsor, said about 178 community college students today earn high enough grades to qualify for the increased scholarships under the amendment.

All of those students already receive at least $800 per semester in Hathaway scholarships. Increasing the amount for a relatively small group of high achievers won't cost the state that much, she said.

“I’m all about providing the most opportunity to the Wyoming students who are willing to work for it,” Wallis said.

Another supporter of the amendment, Rep. Matt Teeters, R-Lingle, noted students can lose their scholarships under the current program, but they can’t get them back. They also have no way to earn more if they worker harder.

“I think this will incentivize kids to achieve in college,” said Teeters, who added that the increased costs won't be a burden for the state.

During House debate Friday, Rep. Debbie Hammons, D-Worland, said the bill is an important milestone for the Hathaway program.

“Today is the completion of the full dream that we had, and that was to pay the full tuition for kids who work hard,” Hammons said.

Rep. Steve Harshman, R-Casper, urged lawmakers to be cautious about Hathaway in the future.

He said the amendment, which he supported, is not perfectly in line with the original intent of the Hathaway program, which was to reward hard-working high school students.

“I would caution you not to go any further,” he said.

SF 21 now goes to a House-Senate conference committee, where senators will have a chance to protest Wallis’s amendment.

If it fails, Wallis -- who sponsored a similar amendment last year -- said she’ll be back next year to try again.

“I’ll keep plugging away,” she said.

Reach capital bureau reporter Jared Miller at (307) 632-1244 or at {M3jared.miller@trib.com.