Tuesday, July 18, 2000 | 11:49 a.m.
Estate taxes have become a big component of Nevada's higher education funding in the past decade, providing $55 million in the current two-year budget for various programs.
Members of the ad hoc Committee on Estate Tax said Monday that with last week's Senate vote to repeal the death tax by 2010, plans should begin to compensate for the possible loss of revenue.
The federal tax repeal legislation, already passed by the House, would cut the top 55 percent estate tax rate in 2001 and then gradually phase out all other rates over the next decade.
President Clinton has vowed to veto the measure, but members of the regents committee said they still should prepare for the potential loss of income.
Committee Chairman Douglas Hill said it's time to set a policy that would conserve part of the estate tax as a permanent endowment providing financial support to the university system over the long term.
The policy finally agreed upon by the committee would set $100 million aside as a permanent endowment, with half of any future estate tax collections being added to it. The endowment would also be funded to at least the level of inflation each year so that its spending power would not be diminished.
The policy, which will go the full Board of Regents at its meeting in August, also says that any part of the estate tax money that is spent should go for programs and needs that are beyond the normal operating expenses of the campuses.
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