Legislative panel puts funding for state college on hold

Wednesday, Sept. 26, 2001 | 11:06 a.m.

CARSON CITY -- Nevada legislators balked Tuesday at the prospect of loaning $700,000 to the Nevada State College at Henderson.

The Legislative Interim Finance Committee on Tuesday delayed until November a request from the University and Community College System of Nevada to dip into estate tax funds to finance the upstart institution. The money would have been used to hire staff members to develop programs and curricula for the school, which is scheduled to open next year.

The committee in part was concerned about the state's uncertain financial future. But lawmakers also noted that Henderson college officials have so far failed to raise startup money through private sources.

Senate Majority Leader Bill Raggio, R-Reno, told university officials that the 2001 Legislature was told it would "be very easy to raise $10 million to $20 million to $50 million."

"It was represented the money is out there and ready to be pledged," Raggio said.

"I'm assured by community leaders the money will be there," Jane Nichols, chancellor of the university system, said.

Sen. Bernice Mathews, D-Reno, questioned how Henderson college officials would raise money in the wake of a nationwide economic downturn. "You couldn't get it before, how are you going to get it now?" she asked.

Nichols said she believes a lot of people would be willing to donate money to the new school, but she conceded that she had nothing in writing.

"It doesn't look very good," Assemblyman Morse Arberry, D-Las Vegas, said. "If you can't get $700,000, how are going to get $10 million?"

The $10 million goal represents private donations needed to match the state's $14 million commitment to construct the first building on the Henderson campus.

The Legislature allocated $4 million for next fiscal year to start classes, and the school expects 500 students in its first year. But a bill to allocate $1 million for planning failed to gain approval.

Nichols in June said that the school would have to raise the planning money from private donations. But during the summer she said she became convinced that the state would have to come up with the funds.

She said the school's foundation board is beginning to work to raise money.

According to new state policy, Raggio noted, public funds for the building won't be released until $10 million in private funding is in the bank.

About $350,000 has been raised for operations to pay the school's president, Richard Moore, and his small staff. Moore earns $160,000 a year. He attended the finance meeting, but sat in the back of the room and did not speak.

Nichols said donors have shied away from the college because of uncertain support from the Legislature, which didn't pass the $1 million allocated for planning.

But Raggio said the Legislature allocated $14 million for a building and $4 million to open the doors next year.

Regent Chairwoman Thalia Dondero of Las Vegas urged the finance committee to approve the loan, which would be repaid in about five years. She said a majority of the regents have "unwavering support" of the proposed school, which will help produce teachers and nurses, which the state needs.

But Regents Tom Kirkpatrick and Linda Howard, both of Las Vegas, were less supportive of the loan. Kirkpatrick said the state was facing a "serious financial crunch" because of the uncertain economy.

The university system will be asked to curtail spending, and he suggested that lawmakers delay any funding for the state college until the 2003 Legislature. That could save more than $14 million. Kirkpatrick also said no money should be allocated until the private donations are realized.

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