Sec. 8. (a) Except as provided in this chapter, a scholarship is equal to the lesser of the following amounts:
(1) The balance of the student's total cost of attendance for the academic year.
(2) Four thousand dollars ($4,000).
(b) If the total of all scholarships awarded under this chapter exceeds the amount available for distribution in a state fiscal year, the amount to be distributed to each applicant shall be proportionately reduced so that the total reduction equals the amount of the excess based on the financial need of each eligible applicant.