Out-of-staters get tuition benefit

Friday, July 16, 1999 | 11:38 a.m.

CARSON CITY -- Alumni of Nevada universities and community colleges who live out of state are now eligible to participate in the state's saving program for their children's education.

The year-old program had previously been restricted to Nevada residents only.

The board of directors of the state's pre-paid college tuition program approved the change Thursday.

But the board rejected a proposal to extend the plan to people who live in communities just outside the Nevada border.

Under the program, parents, relatives and friends can pay upfront the cost of tuition for a child at the state's universities or community colleges at a guaranteed rate.

About 2,900 residents signed up last year in the first enrollment. An estimated 1,500 are expected to join this year. Enrollment is Aug. 30 through Nov. 16.

The issue to expand the program to out-of-state residents was raised at a prior meeting of the board, which is headed by Clark County Treasurer Laura Fitzpatrick.

State Budget Director Perry Comeaux, a board member, said he favored allowing alumni who live out of state to enroll their children. He said that would be a "point of courtesy" to those who attended Nevada schools and then relocated to other states.

Expanding the prepaid program might be a "good marketing" tool, said board member Larry Spitler of Las Vegas, a former assemblyman. But he was worried it would be detrimental in the long run when it may not be able to deliver what it promises.

The board voted 3-1, with Spitler dissenting, to allow out-of-state alumni to contribute for their children.

Comeaux objected to extending the program to cover out-of-state residents who live near the Nevada border. He said Nevada residents are "footing the bill for infrastructure" at the universities and community colleges. The out-of-state students who enroll in Nevada's colleges don't contribute anything toward the building needs at the universities and community colleges, he said.

Already the state allows students from counties adjoining Nevada to receive a break on tuition, a policy that rankles Comeaux.

"I'm appalled we have a good neighbor policy," Comeaux said.

State Treasurer Brian Krolicki, a board member, pushed for allowing residents of adjoining counties to join in the Nevada plan. He said if it proved detrimental, it could be ended in a few years. But he didn't persuade the other board members.

Under the schedule for this year, the lump sum payment for a newborn would be $6,793 to guarantee the tuition at UNLV or the University of Nevada, Reno. Parents or relatives could also choose a five-year option of $136 a month or pay $59 a month for 210 months to cover the future tuition.

For a first-grader, the lump sum would be $7,669; for the five-year plan, $154 a month and for the extended program $84 for 138 months. Payments can start for children up until the ninth-grade. But the amounts escalate as the child grows older.

A contract for a two-year community college prepaid tuition would cost $2,114 in a lump sum at birth. For a first-grader, it would rise to $2,294 for a single payment; $47 a month for the five year plan or $26 for 138 months.

This program guarantees only the tuition costs at a Nevada university or community college. If students enroll in out-of-state schools, the prepaid plan would reimburse only the Nevada cost.

Board members stress this program goes hand in glove with Gov. Kenny Guinn's Millennium Scholarships, which would give a scholarship to every Nevada high school senior who graduates with a B average. The scholarship money could be used for other purposes such as books.