$4.2 million transfer shores up Millennium Scholarship program

By Cy Ryan

Wednesday, July 21, 2010 | 2:27 p.m.

CARSON CITY – An estimated 24,000 students at Nevada’s universities and community colleges will continue to get the full allotment of their Millennium Scholarships.

The Legislative Interim Finance Committee agreed unanimously Wednesday to transfer $4.2 million from a college savings trust to shore up the Millennium Scholarship finances to honor all payments to students through this fiscal year.

But there were warning signs the program might be trimmed during the 2011 Legislature.

Senate Minority Leader Bill Raggio, R-Reno, said lawmakers must take a “serious look at perpetuating the millennium program” at its present level. That also includes higher education.

Sen. Bob Coffin, D-Las Vegas, who won't be returning to the Legislature because of term limits, said the 2011 session is going to have to “tighten” the scholarship program.

Their comments came after student leaders from various campuses urged the finance committee to approve the transfer of money. In some cases, the students were the first in their families to attend college, they told legislators.

Without the additional money, one speaker said 4,000 students would be turned away from the College of Southern Nevada.

Senate Majority Leader Steven Horsford, D-Las Vegas, said the goal is to preserve the program and to “fund it properly.”

The Millennium Scholarship program has been financed from tobacco settlement funds the state receives from the federal government. In 2009, the state received $19 million, but then it dropped to $16.5 million this fiscal year and is expected to fall to $15.6 million next fiscal year.

The program has been shored up by an annual $7.6 million from the state’s unclaimed property fund. But the state took that away to pay for general operating expenses during this fiscal downturn.

The $4.2 million transfer going to Millennium Scholarships comes from the College Saving Trust.

Steve George, chief of staff for the state treasurer’s office, said the money transfer will get the program through this fiscal year and then the Legislature can make decisions on its future.

Raggio said the 2011 Legislature faces a $3 billion deficit in the state budget. He added those politicians who are urging “cut, cut, cut” in the state spending are not “realistic.”

He said this decision Wednesday makes it tougher for the lawmakers in the future.