Group says tobacco settlement must go to health programs

Brendan Riley

Wednesday, April 7, 1999 | 9:51 a.m.

CARSON CITY - A citizens lobby group says Nevada's cut of tobacco settlement funds should be spent only on health programs - and not partly for scholarships as proposed by Gov. Kenny Guinn.

The Progressive Leadership Alliance of Nevada called a news conference Tuesday, a day ahead of a hearing on the Republican governor's proposal to spend half the settlement money on "Millennium Scholarships" for Nevadans university or community college students.

A rival plan from Democrats in the Legislature would spend a quarter of the money on scholarships. Two-thirds would go for health programs and the rest would be put in a trust fund.

But Bob Fulkerson of PLAN said Nevada "is on the verge of a health care crisis." He added the state ranks 50th per capita on health care spending and "this is a national disgrace."

Jan Gilbert of PLAN added it's not too late for the 100 percent effort despite the competing proposals from Guinn and the Democrats. She added the lengthy dialogue over the measures will give PLAN a chance to get its views across.

Gilbert and Fulkerson also said there's no argument about the value of a scholarship program- it's just that the funding source should be something other than the tobacco money which is supposed to be used for health care programs.

They were joined by representatives of the Nevada Disability Forum, Nevada Women's Lobby, Nevada Empowered Women's Project and other groups - all members of PLAN.

Also, Fulkerson said leaders in 20 other states are advocating that the tobacco money be used to improve health care.

But a few key PLAN members weren't part of the 100 percent effort - including the state AFL-CIO, Culinary Workers and the Nevada State Education Association.

Guinn press secretary Jack Finn said that while the governor's plan would use half the settlement money for seniors' health services, education also ties in with health.

In any case, he said Guinn is pushing ahead with his proposal, a highlight of his state of the state address in January.

The settlment with tobacco companies calls for $1.2 billion to be paid to Nevada over the next 25 years followed by annual payments in excess of $48 million to be paid indefinitely.