Governor, lawmakers work out Millennium Scholarships

Brendan Riley

Friday, May 28, 1999 | 9:33 a.m.

CARSON CITY - Assembly Democrats and Gov. Kenny Guinn worked out a compromise Thursday on spending $1.2 billion in tobacco settlement money that Nevada expects over the next 25 years.

Under the plan, 40 percent of the money, averaging about $46 million a year, will go to Guinn's Millennium Scholarship program. Initially, he wanted half, and Assembly Democrats proposed 25 percent.

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

There are no restrictions on who gets the scholarships. Democrats at first also want to prevent students from wealthy families from getting scholarship money, but Guinn opposed any restrictions, saying it would unnecessarily complicate matters.

Democrats succeeded in getting more money to health care and tobacco prevention efforts, which some argue was the intended purpose of the settlement money.

Under the compromise, worked out by Guinn chief of staff Pete Ernaut and Assemblywoman Barbara Buckley, D-Las Vegas, 30 percent of the money will go to various senior services, including a prescription drug proposal advanced by Guinn. Meals on Wheels program also would get some of the funds.

Another 10 percent would go for antismoking public awareness programs, 10 percent would go for services to children and disabled Nevadans, and the remaining 10 percent would go into a trust fund for health care programs.

A panel made up of three senators, three Assembly members and three administration representatives would determine which programs in the various health services categories would get a cut of the money.

As part of the deal, one option for the disabled funding would be an expansion of services aimed at keeping people in homes or homelike settings rather than going into institutions.

Separate, one-shot appropriations of $2 million for antismoking television spots, $5 million for cancer research and $1 million for rural telemedicine services also are in the compromise.

The settlement with tobacco companies calls for $1.2 billion to be paid to Nevada over the next 25 years followed by annual payments in excess of $48 million to be paid indefinitely.

"This is a great day for Nevada's parents, students and senior citizens," Ernaut said after the compromise was reached. "The tobacco money has allowed us to do something truly historic for many, many people."