Krolicki softening stand on Millennium program

Thursday, Feb. 3, 2005 | 9:44 a.m.

CARSON CITY -- State Treasurer Brian Krolicki is softening his stance on a plan to bail out the financially troubled Millennium Scholarship program and he is proposing additional restrictions on the students.

Krolicki initially proposed, and Gov. Kenny Guinn agreed to, a $100 million bond issue to shore up the scholarship system that is now supported by declining money from the tobacco settlement.

Krolicki said Wednesday he would go along with the plan of some state legislators to put up $100 million in cash, rather than the bond issue. If the legislators want to infuse cash, "that works for me," he said.

When he developed his proposal the big surplus in state money was not known, he said.

The scholarship program is "on the brink of insolvency," said Krolicki, who is drafting a bill to be introduced in the Legislature that opens next Monday.

He will appear next Wednesday before the Assembly Ways and Means Committee to discuss the Millennium Scholarship program that is administered by his office.

Nobody wants the program to fold but several legislators have suggested using the big surplus to help. Instead of giving a $300 million tax rebate, some have proposed part of that cash go to the Millennium program.

The scholarship provides up to $10,000 to help a student get through college.

The state would have to pay more than $46 million in interest on a 20-year bond issue. The bonds would be paid off by excess revenues in the state's unclaimed properties account.

Krolicki and the governor have also suggested that a student not receive any scholarship money for summer school. And they are recommending that once a student drops out of college, that his or her scholarship could not be reinstated.

To tighten the program further, Krolicki wants to require all applicants have a Social Security number to would prevent foreign students from receiving any help.

He said he wanted students to check a box whether they were United States citizens. But he said he was advised by the state Attorney General's Office it would be illegal to make that inquiry.

Under Krolicki's proposal, a student would have to sign a federal form that identifies all sources of available scholarships. That form requires a Social Security number.

A student without the number would not qualify for the money. Krolicki said the scholarship is to further the education of those who are going to stay in this state and country and work.

In addition, students would be able to see other scholarships that might be available and apply for that money before trying to join the Millennium program.

The treasurer would also restrict scholarship money being available for remedial classes at the universities or community colleges.

The program, until now, has been supported by 40 percent of the money coming to the state from the tobacco settlement fund. But that money is shrinking as people are smoking less.

About 20,000 students have qualified for program.

The 2003 Legislature passed a bill to require students, once in college to maintain a 2.6 grade point average, rather than the 2.0 initially required. It also required high school student to have higher grade point averages to qualify for the fund.