Friday, May 11, 2001 | 10:49 a.m.
Rather than cut funding to the proposed state college in response to a cash flow problem, the Board of Regents decided Thursday to dip into a savings account set aside for the future of higher education.
Without additional funding, $5.1 million worth of programs would have faced cuts.
For example, funding for UNLV's law clinic is needed for the school to obtain full accreditation. Great Basin needs money to expand its bachelor's degree program, and the dental program needs additional funding if it is to grow, officials say.
The higher education system faces cuts of $36.8 million to its two-year budget. That has left UNLV, the Community College of Southern Nevada, Truckee Meadows Community College in Reno and Western Nevada Community College in Carson City with serious shortfalls and no infusion of extra dollars.
Yet the state college proposed for Henderson remains in the running.
"The press has certainly been asking and so have many of you, 'Can we afford in this climate to fund the Nevada State College,' " Jane Nichols, chancellor of Nevada's higher education system, told the Board of Regents Thursday. "We are in a peculiar situation because the cutting of that program does not assist the other institutions (in trouble)."
One suggestion was to take $6.9 million budgeted for the state college and redirect it to fund faculty raises and other programs at colleges in universities throughout the state.
UNLV President Carol Harter said her No. 1 priority was finding a way to get the $1.4 million needed for the law clinic.
"We already have a gift waiting in the wings, but only if the program gets funds from the Legislature."
Regent Tom Kirkpatrick moved to cut the state college proposal altogether, blasting the idea as ill-conceived.
"I am begging you people to reconsider this idea, because it is a bad one," Kirkpatrick said. "How can we hold our head high and look at the good people of this state and tell them we are spending money we don't have on something we cannot justify the need for?"
The idea of doing away with the state college failed in a 9-2 vote; Regent Linda Howard voted with Kirkpatrick. But regents voted 8-3 in favor of taking $14.6 million from an estate tax savings account to help defray the governor's recommended cost of living increase.
Estate taxes are collected after the death of wealthy estates owners, and half of Nevada's portion helps to fund higher education. Because that money may fade in 10 years if a congressional bill passes, university system officials have endowed a portion of the money in hopes that it will eventually generate income.
In the meantime, the system can still make up for the dip into their so-called "emergency account" if revenues from estate taxes go up next year, said Dan Miles, vice chancellor of finance.
But the system faces more problems than simply meeting the budget. A spending deficit caused because a sufficient amount of money is not generated through another investment source could prompt more cuts. That deficit could make the system unable to pay for scholarships and augment certain faculty positions.
Still, the state college was hailed by supporters as a way to save the system money in the face of other shrinking funding sources.
The universities and community colleges who share that fund are deciding what they will do with less money from that account.
Because of lower tuition rates, backers of the Nevada State College believe the state would pay $2.5 million less per year than they would if the same group of students attended UNLV.
"I think the Nevada State College is not only a good idea, it's a great idea," said Regent Jill Derby.
"We're not going to do it for less money. We're just kidding ourselves," Kirkpatrick said.
Estimates from a BLM land application filed by the city of Henderson showed the cost for the college could reach $1.3 billion over 16 years.
The board voted unanimously Thursday to partner with the city of Henderson to pursue the acquisition of more than 500 acres of BLM land. They also accepted an additional 230-acre donation by the city.
"This was on the fast track from the beginning, but as far as I'm concerned it wasn't fast enough," said Regent Mark Alden.
Regent Doug Hill commended the city for its efforts in working with the college system.
"I'm almost jealous of what you have down here and, by golly, I wish we had it where we are."
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