Finance Committee approves scholarship program

Friday, May 21, 1999 | 12:04 p.m.

CARSON CITY -- Gov. Kenny Guinn's proposed Millennium Scholarship program took its first step forward in the Legislature Thursday.

The program, defined in Senate Bill 496, would use a percentage of the $48 million in annual state receipts from the national tobacco settlement to fund college scholarships for high school graduates.

By a 5-2 vote, the Republican-controlled Senate Finance Committee approved and sent to the floor SB496 along with its companion bill, Senate Bill 370, which would set aside $10 million a year of tobacco money to subsidize senior citizens who buy insurance policies to cover nursing home care costs.

Scott Scherer, legal counsel for Guinn, told the committee that negotiations were under way with Assembly Democrats who have submitted a rival plan calling for a fixed 25 percent of the annual tobacco funds for college scholarships and the remainder for health programs.

Assembly Majority Leader Richard Perkins, D-Henderson, said there has been "tremendous movement" in talks with the Guinn Administration. But he said there has been no agreement on whether 50 or 25 percent of the tobacco money should go for the scholarships.

He said he expected a compromise next week.

The finance committee approved an amendment to SB496 presented by Scherer that would require of students who get the scholarships to maintain minimum grades while in college. In their freshman years, the students would need to maintain a 2.0 average and in their later year a 2.5 average.

Assembly Democrats have insisted there must be accountability in giving out this aid and students must keep their grades up. The Democrats also want scholarships to go to those pursuing education or health care careers.

To qualify for the scholarship, which provides up to $2,500, a Nevada high school student must have a "B" average or better.

Scherer told the Finance Committee he had no objection to a Democratic suggestion that the scholarship money must only go to non-smoking students. But he said that would be hard to enforce.

Also provided from the tobacco money would be $6 million to help seniors pay for prescription drugs. The state would negotiate with a private insurance company to provide policies for this coverage. The maximum insurance subsidy would be $1,200 a year. The state would put up a maximum $480 a year to help pay for the policy.

Scherer said $6 million to $7 million a year will be set aside for program to help people quit smoking or to prevent them from starting. That amount of money, however, will vary, depending on how much is left after the other programs are funded. In some years, it could be as low as $4 million. Sen. Bob Coffin, D-Las Vegas, objected, saying there should be a set amount.

The bill also provides a one-time appropriation of $5 million to put toward a health science center in Las Vegas.

Coffin and Sen. Joe Neal, D-Las Vegas, voted against both bills.