Accord near on tobacco money

Thursday, May 27, 1999 | 11:44 a.m.

CARSON CITY -- Gov. Kenny Guinn and Assembly Democrats were close to a compromise agreement today on how to spend the $48 million a year coming to the state from the national tobacco settlement.

Guinn wanted 50 percent to fund college scholarships for Nevada high school students with a "B" average or better. Democrats suggested only 25 percent.

Assemblywoman Barbara Buckley, D-Las Vegas, the key negotiator for the Democrats, said an agreement has been reached to put 40 percent in the scholarship program. She said that will ensure enough money for every student who qualifies.

The program will be reviewed in four years to see if 40 percent is too much or not enough money.

Pete Ernaut, chief of staff for Guinn, said the agreement is "very close," and could come later today. Buckley said there were one or two minor details to be ironed out.

The remaining 60 percent of the money will be spent on health programs for seniors, children and the disabled.

The scholarships will be for $2,500 for a student going to the universities and $1,250 for the community college. There was a suggestion by some that only nonsmoking students could qualify. But that restriction has been dropped.

The compromise, according to Buckley, will create an endowment fund using 10 percent of the yearly proceeds. That would be used for permanent funding for scholarships and health care programs.

She said there would be money set aside for anti-smoking, anti-drug and anti-alcohol abuse programs.

In his proposal, the governor wanted to spend the remaining 50 percent on health care needs for senior citizens. Assembly Democrats proposed 25 percent.