Panel supports Guinn plan for tobacco money, scholarships

Friday, May 21, 1999 | 5:10 a.m.

But the 5-2 vote Thursday in the Finance Committee on SB370 and SB496 doesn't signal an agreement with Democrats. They say negotiations are continuing over the use of the tobacco windfall expected to bring $1.2 billion to Nevada during the next 25 years.

Senate Finance Chairman Bill Raggio, R-Reno, said it's time to move the measures over to the Assembly for consideration. The Legislature must adjourn by May 31 and how the tobacco money will be spent is a major issue that remains unresolved.

Guinn proposed using half of the tobacco money, which will come to Nevada by June 30, 2000, for the scholarship program.

High school students who graduate with a B average or better would be entitled to receive money to attend schools in the University and Community College System of Nevada.

Students attending a community college would receive $40 per credit, while those attending UNLV or the University of Nevada, Reno would receive $80 per credit. The maximum allowable scholarship would be $10,000 over four years.

Assembly Democrats countered with their own Nevada Scholarship plan, which would direct 25 percent of the money to high school graduates to attend college. Democrats also want to prevent students from wealthy families from receiving scholarship money. Guinn opposes any restrictions because he says they would unnecessarily complicate the scholarship program.

Democrats also are interested in directing more money to health care and tobacco prevention efforts, which some argue was the intended purpose of the settlement money.

Assembly Majority Leader Richard Perkins, D-Henderson, said negotiations continue over the use of the money. Some amount between 25 percent and 50 percent may be allocated for the scholarships, he said.

"Our argument will be to reduce the amount of money for scholarships," Perkins said. "We can always come back and revisit it once we have some history to show how it will be used."