State Auditor Crit Luallen told a panel studying college affordability Thursday that Kentucky should reconsider its merit-based college scholarship program.

Luallen says Kentucky cannot afford to give money to people who don't need it.

Gov. Steve Beshear announced last month Kentucky's state revenue is on pace to fall short nearly $300 million in the current fiscal year that expires June 30. That's on top of an already austere two-year $19 billion budget that included spending cuts in numerous areas including social programs and higher education.

The merit-based scholarship program was created in 1998 as a way to get more Kentucky high school students to go to college and to keep the best students in the state.