Lottery, Scholarships and Programs - As introduced, creates two special accounts in the state treasury, the K-12 lottery capital outlay special account and the early learning program account, for excess lottery funds; requires the comptroller of the treasury to develop and administer a program to provide grants from such accounts to local education agencies to be used for capital outlay projects for K-12 educational facilities and for new or existing pre-K programs. - Amends TCA Title 4, Chapter 51; Title 8, Chapter 4; Title 9 and Title 49.

HB 966 creates two new state treasury accounts to redirect excess lottery funds: a "K-12 lottery capital outlay special account" for school facility projects and an "early learning program account" for pre-K programs. Any lottery funds exceeding $250 million annually are split equally between these accounts, with funds required to supplement - not replace - existing education funding. The comptroller will administer grant programs for local schools to use these funds for capital projects (like building repairs) or pre-K program expenses. The accounts carry forward unspent funds and interest annually, ensuring continuous support for K-12 facilities and early education.