Tobacco stock holdings concern regents

Jennifer Knight

Monday, April 23, 2001 | 10:42 a.m.

Despite public concern over the university system's investment in tobacco and nuclear power, regents had a short and unproductive debate over whether to divest themselves of such controversial stocks.

"The students have been talking about this issue on campus at great length," said Regent Howard Rosenberg during an investment committee meeting on Thursday. "I don't know what to do. I don't know that ethically anybody knows."

The Sun reported in February that a portion of the University and Community College System of Nevada's $42.9 million endowment had been invested in Philip Morris, one of the nation's leading tobacco companies. An additional $60 million in partial holdings may be invested in other leading cigarette firms, as well, according to investment reports.

By the same token, the higher education system benefits through the Millennium Scholarship from tobacco settlement money that the state receives from a class-action lawsuit by several states to get reimbursed for cancer patients who ran up state Medicaid bills.

The tobacco investments were brought up by Regent Steve Sisolak Thursday.

"I have a concern with tobacco stocks," he said. "I have received a number of calls from students over this issue."

Dan Miles, vice chancellor of finance, said he researched the issue and contacted one of the state's biggest employers to see how it dealt with the issue.

"They've had this debate a number of times, and their board has never opted to employ social screening, because they felt there was no place to draw the line," Miles said.

Regents agreed that it is too difficult a decision to make and chose not to plan further discussion on it.