Tobacco settlement money approved for state programs

Friday, April 14, 2000 | 9:50 a.m.

The Legislature's Interim Finance Committee has accepted $32.3 million in tobacco settlement income to operate the Millennium Scholarship program for the next two years.

State Treasurer Brian Krolicki told the panel Thursday that 6,500 students from this year's senior class from Nevada high schools are expected to accept Millennium Scholarship money and enroll in the University and Community College System of Nevada in the fall.

The committee also approved the creation of 2 1/2 positions in the treasurer's office to administer the program, which begins with the class of 2000. The administration is budgeted to cost $423,000 over the next two years.

These are the final actions required by the state to get the scholarship program going.

The program, proposed by Gov. Kenny Guinn and approved by the 1999 Legislature, will use 40 percent of the tobacco settlement money, expected to total $1.2 billion to the state over the next 25 years. Nevada graduates with a grade-point average of B or better are eligible for the scholarships.

Lawmakers also authorized the Department of Human Resources to use tobacco funds to fill 2 1/4 positions for the prescription drug program for senior citizens.

The positions and related expenses will cost the tobacco fund $1.7 million this year and next.

Charlotte Crawford, director of the agency, said the plan is to begin offering the drug program in October.

The program will be established by the state entering into a contract with a private insurer to provide prescription drug insurance coverage to people age 62 and older. Eligible seniors will receive funds from the state to subsidize the cost of the insurance, based on income.

A senior citizen with a household income of less than $12,700 a year would receive a 90 percent subsidy of the cost of the prescription drug insurance from the state. An income of $21,500 would mean a 10 percent subsidy in the cost of the insurance. The program is aimed at seniors who are not eligible for Medicaid.

The final tobacco money-related action by lawmakers was to direct 10 percent of the funds, $3.8 million, into a trust fund.