Scholarship program solvent through 2010

Wednesday, Feb. 27, 2002 | 11:02 a.m.

CARSON CITY -- Gov. Kenny Guinn's Millennium Scholarship program should be able to meet all of its obligations through 2010, but the program's future beyond that is uncertain, state Treasurer Brian Krolicki says.

A possible limit to the scholarship program, which provides up to $10,000 in costs for Nevada high school graduates with a B average or better, appeared to surprise some school board members and state officials, but a high school counselor said it never came with any guarantees.

The scholarship, created by the 1999 Legislature, is funded through Nevada's share of a settlement in a class-action lawsuit brought by 46 states against the tobacco industry. Nevada expects to receive $1.26 billion through 2025 in payments now averaging more than $40 million a year.

But Krolicki, whose office administers both the scholarship and the tobacco fund, said Monday the settlement money "is a finite resource" subject to many variables.

Krolicki said he was "comfortable" that the state will be able to fulfill its commitments to students for the next 10 years. But because of those variables, he didn't want to make predictions beyond that.

Among the variables that could affect the long-term future of the Millennium Scholarship:

A "worst-case scenario" predicted by Moody's Investors Services is that Nevada could receive only $800 million, the treasurer said.

Given those uncertainties, Krolicki said he didn't know if the program could be continued in its present form with the same benefits and qualifications for students after 2010.

The program gives qualifying students eight years to claim their benefit.

Clark County School District Board President Sheila Moulton said Krolicki's assessment concerned her, especially if it turns out to be true.

The program "has been a wonderful opportunity for young people to stay in the state," said Moulton, whose 17-year-old son is a junior at Las Vegas High School.

But Basic High School counselor Mike Bair said the possible 2010 limit on scholarships didn't surprise him.

"When it first came out, we were told that there's no guarantee beyond the 10-year point," said Bair, the scholarship counselor at Basic. "It's unfortunate that it can't last forever, but of course there is a time limit."

Bair added that one of his daughters was currently a Millennium Scholar at the University of Nevada, Las Vegas and was able to earn higher grades than her siblings who had to hold part-time jobs to finance their studies.

"Her brother and sister are real jealous, because I made them work their way through college," Bair said.

If the fund dries up, informing students early on will be crucial, said District Trustee Mary Beth Scow, who has four children ranging in age from a high school senior to a third grader in Clark County schools.

"We have to make sure that students know exactly what money is left," she said. "I just hate to have it come upon them."

Her daughter, who will graduate from high school this year, plans to attend college out of state, Scow added.

Regent Thalia Dondero suggested the state should start preparing now. "I would hope we could start planning to put a little away in an interest-bearing account" to allow the program to continue in its present form, she said.

The Legislature could make the money last longer by changing the standards, Krolicki said.

For instance, instead of a high school "B" average to qualify for the four-year $10,000 scholarship, the grade could be increased. Or instead of the"C" average required in the university to continue to receive the scholarship, that grade might be raised.

Or the $10,000 could be lowered. But those decisions will be up to the legislators or the regents, Krolicki said.

Sun reporter Mathis Winkler contributed to this report.