Republican Indiana Gov. Mitch Daniels has proposed a plan to stop the state's "brain drain" by providing college students with an academic scholarship in exchange for a commitment to work in the state for three years following graduation.

Daniels' spokesperson Jane Jankoski said the governor wants to offer $20,000 scholarships over four years for students who choose to attend any Indiana-based university, including both public and private schools.

While it would have to be officially decided by legislation, Jankoski said scholarships would be based on merit — specifically, grade point average and standardized test scores. In college, students would be required to maintain a certain grade point average to keep the scholarship.

Jankoski said Daniels suggested such a plan because a significant number of students leave the state after graduating.

"Fifty percent of our students in Indiana who choose to leave the state to work following graduation never return," Jankoski said. "We have more graduate exports [who leave the state] than graduate imports, and we are looking to turn that trend around."

Jankoski said Daniels' "Hoosier Hope Scholarships" would jumpstart Indiana's stagnant economy and move toward a state with "homegrown talent" in the life sciences.

Daniels hopes the funding for the scholarships could come from delegating the funding from its own lottery system to private corporations, Jankowski said. Giving up the lottery to corporations in exchange for $1 billion would allow the governor to devote 60 percent to student scholarships and the other 40 percent to faculty benefits and grants.

John Schorg, media relations director for the Indiana House Democrats, said Democrats are supportive but are skeptical of placing some of these programs in the hands of private sector.

"Scholarship programs should be funded with general funds rather than privatization," Schorg said.

Schorg added the Democrats also have a general concern for keeping the cost of tuition down as well as a need for a plan for increased financial aid.

"Our concern is scholarships need to be available to keep the funds more affordable so even students who do not have the best grades can still attend college," Schorg said.

A Wisconsin state commission also proposed a plan aimed to retain UW graduates in-state. The plan, proposed by Mark O'Connell, executive director of the Wisconsin Counties Association, would offer students four years of free tuition at a UW System school if students commit to living and working in Wisconsin for 10 years after graduating.

Matt Canter, spokesperson for Democratic Gov. Jim Doyle, said in a previous interview with The Badger Herald that the governor is open to considering any idea giving Wisconsin students more access to higher education.

"[The governor] wants to make it clear that in Wisconsin, you should be able to go as far as your talent will take you," Canter said.

Canter added that this type of proposals are a "win-win situation for the state" because they "ensure long-term" state growth.

Besides Indiana and Wisconsin, according to the Education Commission of the States, 15 other states offer general merit-based scholarships programs.

— Tom Schalmo contributed to this report.