Democrats reveal plan for tobacco settlement money

Thursday, Feb. 18, 1999 | 11:27 a.m.

CARSON CITY -- Assembly Democrats today unveiled their plan for spending the $48 million a year from the tobacco settlement money and it includes a college scholarship plan similar to one presented by Gov. Kenny Guinn.

But the Democrats said their plan has accountability, something the governor's proposal lacks. They suggest spending 25 percent or $12 million a year for scholarships with the rest divided among health programs.

Majority Leader Richard Perkins, D-Henderson, said the Democrats were "enthusiastic" about the concept of the Guinn program "but we believe a critical element was missing from the skeleton proposal we heard: accountability.

"We are also concerned that Gov. Guinn did not put forth a plan for using the tobacco settlement funds to improve the health care of all Nevadans -- the intent of the settlement," Perkins said.

The release of the plan by the Democrats comes one day before Guinn is planning to hold a press conference with officials of the University and Community College System announcing their support for the governor's proposal.

Guinn would provide scholarships of up to $2,500 to every Nevada high school graduate with a "B" average who wanted to go on to the university or the community college.

The plans by Guinn and the Assembly Democrats both run counter to the advice of Attorney General Frankie Sue Del Papa who says the money should be used solely for health programs.

She has also recommended the money not be spent until it is resolved whether the federal government is entitled to part of Nevada's share.

The money, gained from the settlement with the major tobacco companies, is the only so-called "free" funds available this session for discretionary programs. Budgets for state agencies are trimmed, and there are no pay raises planned for state workers, school teachers or university faculty.

Democrats want conditions attached to the scholarships. Children of wealthy would not be eligible; funding could not be used to supplant other scholarships the student received; the student, once in the university or community college, would have to maintain a C average and funding could be used only for tuition, books and other educational expenses.