Declining revenue may force Millennium cuts

Thursday, April 22, 2004 | 11:08 a.m.

CARSON CITY -- The Millennium Scholarship program, which helps students attend Nevada universities and community colleges, might have to be tightened because of declining revenues, state Treasurer Brian Krolicki said Wednesday.

The state was notified Tuesday that it will receive $37.9 million from the master tobacco settlement this fiscal year, 8.4 percent less than forecast.

"I suspect the Millennium will need further tweaking or overhaul," said Krolicki, who oversees the money. The changes would be due not only to the reduced money from cigarette makers but also to the success of the program in getting students into higher education, he said.

Krolicki said his staff and the staff of Gov. Kenny Guinn have been meeting to find answers "to maintain the Millennium Scholarships in light of the trend."

The 2003 Legislature approved new restrictions on these scholarships to allow the program to continue further into the future. Those changes were expected to carry the program through 2010.

The 2003 Legislature required students who gain Millennium Scholarships must maintain a 2.6 average, up from the previous 2.0. High school students who graduate in 2005-2006 must have a grade point average of 3.1, up from the present 3.0. And those who graduate in 2007 or later must achieve a 3.25 average or better in high school to qualify for the scholarship.

The tobacco companies, under a master settlement, agreed to pay Nevada $1.26 billion through the year 2025. That was averaging more than $40 million a year but it has been dropping due to people smoking less.

If the trend continues Nevada will lose more than $100 million over the life of the agreement, the treasurer said.

"The valuable programs funded with this money are so successful that any diminishment in payments will cause substantial stress," he said.

Besides the scholarships, the money is used for such programs as stopping smoking, paying for prescription drugs for low-income seniors, helping with independent living and the disabled.

Krolicki estimates that as of February 13,650 students were using the scholarship to attend college in Nevada. More than 21,600 students statewide have benefited from the program since its inception, representatives for the treasurer said.