Grads with B averages to get state scholarships

Thursday, June 17, 1999 | 11:03 a.m.

CARSON CITY -- The state will start giving out money next year to Nevada high school graduates who achieve a B average.

Those going on to UNLV or the University of Nevada, Reno are eligible for up to $2,500 a year and those heading for the community colleges can receive up to $1,250.

But this "Millennium Scholarship" program, a cornerstone of Gov. Kenny Guinn's administration, has led some to wonder whether the state's college prepaid tuition plan, begun two years ago, is still needed.

State Treasurer Brian Krolicki, however, says the prepaid tuition plan dovetails nicely with the Millennium Scholarships.

There are other expenses that the prepaid plan can cover, such as room and board, he said. Also, he said, the plan would cover students not academically eligible for the Guinn scholarship. Also, he noted, the Millennium Scholarships will not help students who want to attend college out of state.

Peter Ernaut, Guinn's chief of staff, said an estimated 1,000 students will qualify in the first year of the Millennium Scholarships.

Prepaid tuition was started two years ago by Gov. Bob Miller and then-treasurer Bob Seale. It allows families to set aside money for future tuition costs. It signed 2,790 contracts for children in its first enrollment period last year. As of Tuesday, the state had collected $5.964 million to pay for future educational costs.

This year's enrollment will probably open some time around Labor Day and run through mid-November. The goal is 1,500 new children.

Eventually, this is supposed to be a self-supporting program with the interest earned from the investments paying the operational costs.

The J.P. Morgan Co. has been hired to invest the prepaid receipts starting in July. Until now it has been retained with other money in the state treasury, drawing interest on such things as government bonds. But the J.P. Morgan Co., will be able to put at least half of the fund into the stock market.

Nevada is one of 44 states and the District of Columbia that have pre-paid or college savings plans, according to Kathy Tyson of the National Association of State Treasurers. The pre-paid plan, she said, locks in a guarantee to offset the future tuition. The savings plans are like mutual funds but don't ensure the amount down the road will cover the rising cost of tuition, she said.