Deal made on spending tobacco money

Friday, May 28, 1999 | 11:39 a.m.

CARSON CITY -- Gov. Kenny Guinn says the compromise on how to spend $48 million a year from the national tobacco settlement is a "giant step for this state."

Assemblywoman Barbara Buckley, D-Las Vegas, who negotiated the agreement with Guinn's staff, called it "a great day for students, parents, senior citizens, individuals with disabilities and all Nevadans who care about improvement to our health care system."

The plan, unveiled Thursday, calls for 40 percent of the money to go for college scholarships for every Nevada high school student who graduates starting next year with a "B" average. It will provide $2,500 a year for those at the universities and $1,250 for those attending the community colleges.

Guinn wanted 50 percent for the scholarship. Democrats proposed 25 percent. Both Guinn and Buckley said there is enough money to make sure every student who qualifies gets a scholarship.

And the program will be reviewed in four years to see if too much or too little money has been set aside for the scholarship. There were initial proposals that these students must be nonsmokers and would get priority if they were going into education or health care. But those suggestions were junked in the compromise.

Buckley said the regents of the University and Community College System of Nevada will develop the criteria for scholarships and will include requirements for keeping a certain grade average. Preference will be given to the student based on need.

Guinn said the Millennium Scholarship Program is "one of the most profound things I have been involved in my last 34 years." He outlined the plan in his State of the State message in January.

Assembly Democrats quickly proposed their own version. The compromise was worked out during the past few days between Buckley and Guinn's Chief of Staff Peter Ernaut.

And 60 percent will be going to a variety of health plans.

Fifteen percent of the health money will be used to help low-income senior citizens buy prescription drugs.

Ernaut estimated there may be more than 19,000 eligible, based on the property tax rebate program for the elderly. Medicare generally does not cover prescription drugs.

Another 15 percent will be spent on an "Independence for Seniors" Health care program. Seniors, who buy insurance policies that cover cost of long term care, would be eligible.

Ten percent would be spent for health care programs for children and people with disabilities; 10 percent for tobacco, drug and alcohol prevention programs and 10 percent into a health care trust fund to handle future costs.

There will be one-time appropriations. Public television stations in Las Vegas and Reno would receive $2 million to convert to digital and in return would run anti-smoking public service announcements, aimed at children.

Ernaut said there would be $5 million for a Health Sciences Center in Las Vegas on land donated by the city at Cheyenne and Tenaya.

The tobacco money will match other private donations, and it will serve as a training center for health care professionals such as doctors and nurses.

There will be $5 million to establish housing and rehabilitation services for the disabled, and $5 million is set aside for cancer research, Ernaut said.