The joint meeting of the Senate Committee on Finance and the Assembly Committee on Ways and Means was called to order by Chairman William J. Raggio, at 8:15 a.m., on Wednesday, April 7, 1999, in Room 1214 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. Exhibit B is the Attendance Roster. All exhibits are available and on file at the Research Library of the Legislative Counsel Bureau.

SENATE COMMITTEE MEMBERS PRESENT:

Senator William J. Raggio, Chairman

Senator Raymond D. Rawson, Vice Chairman

Senator Lawrence E. Jacobsen

Senator William R. O’Donnell

Senator Joseph M. Neal, Jr.

Senator Bob Coffin

Senator Bernice Mathews

Mr. Morse Arberry Jr., Chairman

Ms. Jan Evans, Vice Chairman

Mr. Bob Beers

Mrs. Barbara Cegavske

Mrs. Vonne Chowning

Mrs. Marcia de Braga

Mr. Joe Dini

Mr. David Goldwater

Mr. Lynn Hettrick

Mr. John Marvel

Mr. David Parks

Mr. Richard Perkins

Mr. Robert (Bob) E. Price

ASSEMBLY COMMITTEE MEMBERS ABSENT:

Ms. Chris Giunchigliani

STAFF MEMBERS PRESENT:

Millard Clark, Committee Secretary

OTHERS PRESENT:

Kenny C. Guinn, Governor, said:

The Governor said he had a very busy schedule and must leave. He said his staff would stay to answer any questions. He said, "With your approval, I would like to excuse myself and allow you to hear in great detail the answers to any of your questions as you move through the proposal on the Millennium Scholarship." The Governor said he believes the Millennium Scholarship Program "is the most important thing we can do for the state of Nevada since Nevada’s statehood."

Senator Raggio thanked the Governor for his presentation on the Millennium Scholarship Program.

Scott Scherer, General Counsel, Governor’s Office, asked whether he should go through S.B. 496 section by section. Senator Raggio replied that it would be helpful to give committee members an understanding of the bill. The senator mentioned that if the Governor’s Office is proposing any amendments to the bill, this is the time to relate that information.

Mr. Scherer said it is important to know that in the definitions there is a distinction between an academic scholarship and a vocational scholarship. He said the Governor wanted to make sure opportunities are provided both for students who were seeking a 4-year academic degree from the universities but also for those who might be seeking a community college degree in a vocational or technical field. He pointed out that the bill does make provision for a separate core curriculum for students seeking one of these two scholarships.

Mr. Scherer stated that S.B. 496 creates the Millennium Scholarship Trust Fund in section 8, page 2 of the bill. He noted that the state treasurer is to administer the fund and the fund will consist of 50 percent of the money from the tobacco settlement plus any gifts or grants that are contributed to the fund by the private sector.

Mr. Scherer said the one key amendment that the Governor’s Office wants to suggest is to section 8, subsection 3 on page 2 as shown on Exhibit C, a one-page handout titled "Potential Amendments to S.B. 496." Mr. Scherer said this amendment would allow the state the potential of bonding against the stream of revenue from the tobacco money. He noted there were some other states looking at bonding against that stream of revenue and this is language received from the treasurer’s office and from bond counsel which will accomplish the goal of allowing the state the option of issuing bonds. This language does not require that bonds be issued, it simply makes it optional and would give the authority if at a later point it was decided it was "the best way to go." Mr. Scherer stated these bonds would not be general obligation bonds and only the revenue from the tobacco settlement could be used to pay the obligations in the bonds.

Mr. Scherer pointed out that line 26 on page 2 included a requirement that no more than 2 percent of the amount of money in the trust fund which is awarded in Millennium Scholarships each year can be used for administration. He noted that the amount spent on administration will grow as the number of scholarships grows but at no time could exceed 2 percent of the amount of scholarships awarded. He said it is important with that limitation to make sure the program is as simple to administer as possible, and that is what was attempted in this bill.

Mr. Scherer said section 9 creates the Millennium Scholarship Board. He commented that this board has been called a new board but, in effect, it would be actually composed mostly of people already involved in the education process. He said the board consists of the Governor, the State Treasurer, three members of the Board of Regents, one member appointed by the Senate Majority Leader, and one member appointed by the Assembly Speaker. Mr. Scherer commented these two members would really be the only new members of the board. He stated that item No. 2 in Exhibit C removes these two members if the Legislature would prefer no legislative appointees on the board, but it was assumed the Legislature should have some input on this board. Senator Raggio commented these members would not be legislators; they would be legislative appointments but not legislators. Mr. Scherer said that is correct. He mentioned that during discussions with LCB staff a concern was voiced about separation of powers if legislators were on the board.

Mr. Scherer called attention to section 9, paragraph 4, line 10, on page 3, which would allow the board to request assistance from the Chancellor’s Office and the Board of Regents. He said it has been suggested the prepaid tuition staff may also be able to provide assistance to the Millennium Scholarship Board if the Legislature feels this would be appropriate. Mr. Scherer explained that the board for the prepaid tuition program has staff, which does a lot of marketing of the prepaid tuition program. He said the thought was that they could also assist in marketing the Millennium Scholarship Program to ensure that high school juniors were aware of the program. Mr. Scherer commented this would provide some incentive to strive for a 3.0 grade point average and to meet the core curriculum to qualify for the scholarships.

Mr. Scherer stated that the Governor’s Office tried to keep the scholarship program as flexible as possible and let the experts from the University and Community College System of Nevada, the Board of Regents, and elsewhere help fill in the final details of the millennium scholarships working within parameters provided by the Governor’s Office. He noted that section 10 of the bill requires the proposed board to adopt regulations which will establish the core curriculum to qualify for both the academic scholarship and the vocational scholarship. He commented the board would have the ability to waive those requirements during the first 2 years after the regulations are adopted. He explained this would allow students who have already reached their junior year, and for whom it is too late to make the changes needed, to meet the core curriculum requirements to request a waiver from the board.

Mr. Scherer noted the bill identifies the requirements for a student who starts on a vocational scholarship to transfer into an academic scholarship. He said the thought was that a student might start out intending to follow a vocational or technical track and possibly complete the degree at the community college level, then decide instead to continue his or her academic education. He said the Governor’s Office wanted to make sure there was a way for that to happen insofar as qualifying for a millenium scholarship.

Mr. Scherer pointed out that section 10, paragraph 1, subsection c, provides for the home-schooled, general equivalency diploma (GED), and nontraditional students, and those who did not graduate from a public or private high school in Nevada. The students have the ability to qualify for the scholarship by meeting a minimum score on a standardized test. The Millennium Scholarship Board will decide what that score must be.

Mr. Scherer said section 10, paragraph 1, subsection d allows the board to set the minimum number of credits that a student must maintain in each academic year to maintain eligibility for a millennium scholarship. He said the Governor’s Office left this requirement open between 6 and 12 semester credit hours in each of the fall and spring semesters. He explained this was done because they were told that many of the community college students do not take 12 credits each semester. He said many students, even with this assistance, will still have to work and may not be able to carry a full academic load. He commented the Governor’s Office did not want to exclude these students but did want to encourage full-time attendance and it is left to the board to decide what the appropriate semester credit hours should be.

Mr. Scherer explained that section 10, paragraph 1, subsection e, requires that the board determine the criteria for establishing whether a student is making satisfactory academic progress toward a degree or certificate. He stated, "You cannot simply be taking classes and maintaining an acceptable grade point average and keep getting the scholarship; you must actually be making progress toward a particular degree or certificate to satisfy this provision." He said the university already has some definitions for what satisfactory academic progress is. The university has requirements which must be met when a student is placed on academic probation and the Governor’s Office did not want to reinvent the wheel, so it was decided to use existing guidelines. He stated this provision allows the student up to 8 years to complete his or her education. He said this was done for a number of reasons. Mr. Scherer commented there will be students who have family emergencies or something that necessitates taking a year or two off, others will go into the military once the are out of high school, some may go on a church mission, and others may have to work before beginning their education. He said it frequently takes 5 or 6 years for many students to complete their education.

Mr. Scherer pointed out that section 10, paragraph 1, subsection f requires the board to set the amount by which the millennium scholarship will be set off against other financial aid received by the student. He said the Governor’s Office does not see itself as the experts in financial aid but think that the members of the Board of Regents and the chancellor and university staff can help provide the assistance to the millennium board it needs to decide which financial aid should be an offset and which financial aid should not be.

Mr. Scherer noted that section 10, paragraph 1, subsection g identifies the term for repayment of a millennium scholarship for any semester in which the student fails to meet the requirements of the scholarship. He said the idea is not necessarily that there would be a loan indebtedness, with students coming out of school with a debt hanging over their heads. He noted the Governor has said in the past that Nevada has one of the highest student loan rates in the country. Mr. Scherer said this means Nevada has more of its students graduating "deep in debt" than other states do. He said the Governor’s Office did not want students coming out of school deep in debt. He commented the Governor did want an incentive for the students to meet the requirements.

Mr. Scherer said section 10, paragraph, 1, subsection h allows the board to determine which expenditures may be eligible for the millennium scholarship. He said the Governor’s Office did not want to limit the scholarship to fees and books because if a student has participated in the prepaid tuition they will have their fees paid but will need to pay for room and board. A single mother returning to school may need to pay childcare. He pointed out it was intended there be some flexibility so as long as the expense is truly directed towards allowing the student to further their education, it would not hamper their ability to use the money to do that.

Mr. Scherer stated that section 10, paragraph 2 allows the millennium board to determine whether summer semesters should be included and what the criteria should be. He noted that the grade point average (GPA) in some counties is weighted for honors classes. He said this would allow the board to determine what weight, if any, those honors classes should be given when calculating the GPA for the purpose of this program.

Mr. Scherer explained that section 11 of S.B. 496 provides for the actual awarding of scholarships. He repeated that to be eligible for a scholarship the student must graduate from high school after May 1, 2000, and begin college after August 1, 2000. He reiterated that the student must achieve a 3.0 GPA and must pass the proficiency exam. He said there has been concern about grade inflation but it must be remembered that this is an ongoing effort to raise standards in Nevada. He stressed that to qualify for the millennium scholarship the student must reside in this state for at least 2 years before obtaining a high school diploma. He stated:

Mr. Scherer pointed out that another way to qualify for the scholarship is to complete at least 30 semester credits at a university or community college with at least a 3.0 GPA.

Mr. Scherer drew attention to section 11, paragraph 3 on page 5 of the bill. He said this section allows for disputes with regard to eligibility to be determined by the board.

Senator Raggio said it is his understanding the eligibility would apply only to students enrolling in the University and Community College System of Nevada. Mr. Scherer replied that is correct. Senator Raggio asked where that language is located in the bill. Mr. Scherer replied it is on page 5, line 9 of the bill. Senator Raggio asked whether the word "system" is included in this section. He said, "We do want to make it clear that the students must attend the University and Community College System of Nevada." Mr. Scherer said this bill is a proposed amendment to Chapter 396 of the Nevada Revised Statutes (NRS). He said in Chapter 396 is the word "system."

Mr. Scherer said section 11, paragraph 4 would provide for the actual scholarships. He said when a student is enrolled in community college, he or she could receive a scholarship of $40 for each credit the student is enrolled in. He or she may receive $80 for each university credit enrolled in. Mr. Scherer said this would total about $1,250 a year while the student is attending a community college and about $2,500 a year while he or she is attending the university, depending on the number of credits. He stated that no student is eligible for more than 125 credits or more than $10,000.

Mr. Perkins asked whether there are any provisions for a student who gets a 2.9 GPA but has encountered "some personal hardship." He asked whether there was any way to appeal to the board to receive the scholarship because of some unique circumstance. Mr. Scherer replied there is not, for the millennium scholarship. However, later in the bill there is a provision for the Board of Regents to redirect existing scholarship funds to students who are at risk, who do not meet the requirements but have some other unique circumstance. He noted the millennium scholarships would free up much the existing scholarship funding for use in targeting unique circumstances.

Mr. Scherer noted section 11, paragraph 5 states that "the board shall certify a list of eligible students to the state treasurer." It further states, "The state treasurer shall disburse a millennium scholarship for each semester on behalf of an eligible student directly to the community college or university in which the student is enrolled." He noted that if the student had prepaid the tuition or other funds were already paying the tuition fees, the money could be used for other education-related expenses.

Mr. Scherer discussed section 12 of S.B. 496. He said this section says that the Board of Regents "shall develop a plan to direct a significant portion of other available financial aid to culturally disadvantaged or at-risk students, and students who graduated from high school before May 1, 2000."

Mr. Scherer explained that section 13 required there be a biennial report to the Legislature which must contain the number of students that received millennium scholarships, the median GPAs of students upon entering college, the median GPAs of recipients in college, and an evaluation of how well the program is working. The report to the Legislature must also include a report from the state treasurer on the financial status of the trust fund, and an actuarial on the program.

Mr. Scherer said section 14 of the bill would provide that the board of trustees of each school district and each public or private high school shall cooperate with the millennium scholarship board by providing reports of the projected numbers of students they think will be eligible for the millennium scholarships and shall develop a program to certify whether graduating seniors meet applicable eligibility requirements. He said the Governor’s Office wants to keep the process as simple as possible and have only a one-page application. He commented that once the board had the student’s name, date of birth, and high school attended it could determine eligibility without requiring a lengthy process and application form.

Mr. Scherer commented that sections 15 and 17 of this bill set forth the effective dates and when the appointments to the board need to be made. Section 16 is an appropriation of $100,000 for the first year of the program to allow for planning to be done to set up the program.

Senator Raggio noted there was not absolute certainty as to when the tobacco funds would be received or the amount of those funds. He asked when the Governor’s Office thought the funds would be received and how much would be received. Mr. Scherer said the settlement agreement provides that the funds will be paid by June 30, 2000, or when 80 percent of the states reach "state-specific finality." He said 80 percent, in terms of the dollar amounts involved, have not reached state-specific finality yet. He pointed out the settlement agreement provided that the funds will be paid by whichever date is earlier. He commented it may be possible to receive the funds earlier but certainly by June 30, 2000.

Senator Raggio asked, "Within these expectations, when would the earliest opportunity be for students in the school systems now to be eligible?" Mr. Scherer replied it would be in the fall of 2000. Senator Raggio asked what year of school these students are in now. Mr. Scherer replied they are juniors.

Mr. Perkins asked why the $40 community college cap and the $80 university cap were put on the per-credit allotment for the scholarship. He noted that a number of other expenses were discussed which the scholarship funds could be used for. He said his concern is that as tuition fees increase they will, over time, exceed the maximum amounts allowed. He asked why there was a reference to a dollar limitation in the bill. Mr. Scherer replied that the dollar amounts could be removed from the bill, leaving the amounts to the discretion of the board. He said it is hoped there will be sufficient money to increase the amounts available as fees increase but that is one of the reasons for the actuarial studies and the financial reports to be provided to the Legislature each biennium. He stated that with these reports the Legislature could consider whether there was sufficient money available. He stated the Governor’s Office also wanted to make sure of the projected enrollment group. Senator Raggio said he thought the maximum amount for each student would be up to $1,250 a year for community college enrollees and up to $2,500 each year for university enrollees and asked whether these amounts are correct. Mr. Scherer replied yes. He said that in talking to a number of university officials it was determined that a payment amount for each credit was a better way of computing the amounts to be paid.

Senator Neal said the information he has seen regarding the problems seem to suggest the dropout rate is a much greater problem than that of individuals wanting to go to college and not having the means to do so. He asked in what way the millennium scholarship relates to the dropout problem. Mr. Scherer said it is hoped the Millennium Scholarship Program will provide an incentive for those students who do want to go on to college but who see no hope of being able to afford the cost of college. He said the Millennium Scholarship Program would provide a way for these students to attend college. These students would not drop out, thinking that attending college is hopeless because of the cost. Mr. Scherer said students who have dropped out of high school but have gone back to get a GED or adult education diploma will still be eligible for the scholarship program as long as they meet the requirements.

Senator Neal asked whether this program was "rolling the dice" hoping it would cure the dropout problem. Denice Miller, Senior Policy Director, Governor’s Office, replied the only state that has a comparable program is Georgia. She said Georgia recently completed a study on how the program has worked in that state. She pointed out that one of the things Georgia found was the dropout rate is holding constant but standardized test scores have risen dramatically.

Ms. Evans asked about item No. 1 in Exhibit C. She asked what the suggested amendment does and what it really means. Mr. Scherer replied this amendment would allow for bonding against the stream of revenues from the tobacco settlement for the Millennium Scholarship Program. He said there are some states which talk openly about bonding against that stream of revenues, and there are a number of financial experts who have looked at this possibility and have determined that it is in fact feasible. He said this would allow the board to fund the scholarship program by issuing bonds if the board determined that bonds were the best way to implement the program. He stated the bill is written so the bonds will not be general obligation bonds and only the revenues from the tobacco settlement can be used to pay these bonds. There is no risk for the State of Nevada other than committing 50 percent of the tobacco settlement funds, he said.

Mr. Scherer said the state treasurer would like to wait to see whether other states actually issue bonds against the tobacco settlement funds, how it works for them, and what their experience is when they take the bonds to the market. He said the state treasurer would like to have the authority to issue the bonds because there is a potential that issuing these bonds will be a very beneficial thing to do but Nevada should not be the first state to issue these bonds. He noted that is why the amendment is written to give the millennium board the authority to issue bonds but does not require that they issue bonds.

Ms. Evans said that usually when the state issues bonds it incurs debt for some purpose, most typically for capital improvements. She asked, "Why do we need to issue bonds when we will have the money? What would we accomplish by issuing bonds?" Mr. Scherer replied that one of the advantages of issuing these bonds is to shift the risk. He noted there has been some talk that possibly the tobacco settlement payments will not continue as projected, that maybe the "gray market" in cigarettes will reduce the amount of payments. He said that by bonding, "the risk is shifted, we get the money in the bank now and we know that the program will continue uninterrupted by some unforeseen potentiality."

Ms. Evans pointed out the state would have to pay interest on the bonds and asked whether the tobacco settlement money would be used to pay that interest. Mr. Scherer replied, "Yes, it would be paid from the money generated by selling the bonds." He explained that selling the bonds would create a pool of money which would earn interest. He commented it is possible that the money earned from the revenue generated by selling the bonds would pay the interest expense for the bonds sold. He reiterated that the objective of selling bonds would be to shift the risk.

Ms. Evans noted that section 10 of S.B. 496 makes reference to "the governing board shall set forth regulations regarding the high school core curriculum that a high school student must complete in order to be eligible" and said that sounds like an indictment of the current core curriculum in Nevada’s high schools. She asked whether the governing board "will be telling K-12 folks what their expectation is." Mr. Scherer said this was not an indictment of the current core curriculum. He said Georgia initially did not require a core curriculum but later went back to require the core curriculum because it helped to address the concerns about potential grade inflation. He said Georgia feels that how the students performed in the core curriculum is one of the greatest predictors of success in college. He explained this bill attempts to build upon the core curriculum requirement, not to indict it or change it, unless there is a need to do so. He said Nevada university officials feel the state needs to build on the existing core curriculum and use it and not try to reinvent the wheel.

Ms. Evans said, "So higher education will really be directing K-12 and saying this is what we now expect of you." Mr. Scherer replied, "No, I do not think that is true. They will simply be saying this is what is required to be eligible for the millennium scholarship." He said it is his understanding this will be done by looking at the current core curriculum, not by trying to reinvent the wheel. He said it is important to remember that this board has a number of other members: the Governor, the treasurer, and two people appointed by the Legislative Branch. The board would not simply be directed by the university system. Ms. Evans said, "It does sound like this will allow quite a bit of authority of higher education over secondary education."

Ms. Evans further stated, "In section 12 of this bill and in your remarks you mentioned that the universities will be directed to use other financial aid, and of course we know that the University and Community College System of Nevada has quite a number of scholarships and financial aid available." She asked how much latitude the universities have in awarding these scholarships. She said she asked this question because her experience in this field is that not all but most, benefactors who give scholarship money or endow scholarships, place restrictions in terms of the recipient. Because of these restrictions, she said, the universities do not have complete freedom or latitude in the money they are awarding.

Ms. Evans asked, "Have you calculated the actual amount of need at each institution – because they have financial aid available – and the estimated amount of students who will be enrolling?" She said, "We are talking about a great deal of money" and she wondered whether there was any connection between what would be made available and what the actual need level would be. Mr. Scherer replied that what the Governor’s Office is actually trying to accomplish is to get the students who are not currently enrolled to go on to college, "so it is difficult to assess the need of those who are currently students and say that is the amount we need." He said the goal is much grander than that; it is to get many more Nevada high school students to go on to college and to raise Nevada’s last-in-the-nation college participation rate from 37 percent up to the national average of 65 percent. Ms. Evans said she hopes that with the millennium scholarship there will be a commitment to the universities for support for building new facilities, hiring new faculty, and handling the increase in enrollment. She stated Nevada is not doing that currently.

Richard S. Jarvis, Ph. D., Chancellor, University and Community College System of Nevada, said the University and Community College System of Nevada Board of Regents has met and considered the millennium scholarships and has indicated their strong support for the program.

Dorothy S. Gallagher, Elko, Board of Regents, University and Community College System of Nevada, said she thinks the millennium scholarship is one of the better things Nevada can do for its students. Ms. Gallagher said that for all of the years she has been a regent, scholarships have been one of her big concerns. She said that even with the support the university has received from the Legislature, the state has ranked at the bottom among the states that give financial aid to students. She said the millennium scholarship will help Nevada create a workforce that is better prepared and will also help promote diversity within the state. She said the Board of Regents very strongly supports this bill and will do anything possible to help implement the program.

Senator Raggio asked whether anyone could address Ms. Evans’ question about evidence that there is a need for this type of program. Ms. Evans explained that she was trying to discern the level of need: How much money is involved? How many students will be helped with this program? Jane Nichols, Ph. D., Vice Chancellor, Academic Research and Student Affairs, University and Community College System of Nevada, said the university has been working very hard to get estimates based upon a number of factors. She said the number of high school graduates with a 3.0 grade-point average (GPA), the number of students in the university and community colleges who have a 3.0 GPA, and the continuation rates of these students were all considered to estimate how many students would be receiving the millennium scholarship.

Dr. Nichols said she could estimate the number of students who would take advantage of the scholarship beginning in 2000 and going to 2011. She noted that one very important variable in developing the estimates is the "college-going rate." She said the assumption is that the college-going rate will continue to rise. Dr. Nichols commented that with the Millennium Scholarship Program it is hoped the percentage of part-time students will decline and more students will become full-time students. She said it is known that statistically, full-time students are more likely to finish and complete a course of study.

Dr. Nichols said the current college-going rate for the year 2000 is 1,473 full-time students and 61 part-time students, for the university. She said the college-going rate for the community colleges is 373 full-time students and 608 part-time students for the year 2000. She said if the college-going rate is increased in the way the regents believe it will increase, "we will be looking at almost 14,000 students eligible for the millennium scholarship program in the year 2010." She noted this is a tremendous increase in eligible students over where the state is now.

Dr. Jarvis explained that the college continuation rate is the state’s biggest deficiency, "the lowest performance that we have in higher education in Nevada." He said it has been increasing during the past 4 to 6 years by about 2 percent a biennium, "but, unfortunately," so has the national rate so we are not gaining." He commented that Nevada and Alaska rank at the bottom, nationally, and there is a clear gap between these last two frontier states and the rest of the states. Dr. Jarvis noted that following a suggestion from this committee 2 years ago, a survey was conducted of all high school students in the state asking their ambitions, their feelings towards college, and what they wanted to do. He said the problem is the perception of costs.

Dr. Jarvis commented the difficulty is that Nevada is keeping tuition about as low as possible. He stated that Nevada is a low-tuition state, low in the West, well below the Western average, and cannot control the cost any more than it has. He pointed out that the state-funded financial aid has been increasing during the past two bienniums. He said the key is that any program to address the college going rate must recognize the reality of today’s Nevada students. He asserted:

Dr. Jarvis said Nevada must tailor a program that recognizes first-generation college students and part-time students, and then "change those behaviors." Accordingly, he said, one of the key things about this bill and the Millennium Scholarship Program is that the message is as important as the money. He stated, "Keeping it simple is absolutely critical to changing behaviors. This program sends as strong a message as the Legislature and the Governor can send about the importance of this project."

Senator Raggio said he would reiterate that one of the reasons the Executive Branch and the Legislature embarked upon the difficult task of reforming education in this state was that only 37 percent of graduates from Nevada high schools go on to college or universities. He commented this was compared to about 67 percent nationally. "Nevada is still at the bottom, and anything that we can do to provide an incentive to improve upon this percentage should not be discarded," he remarked. The senator commented that the other statistic which "drove the mission" was that of the 37 percent that go on to colleges or universities, almost half must have remedial courses. He remarked that "this tells us about the standard of education in Nevada." He said this was the reason the Legislature embarked upon a mission to increase standards. Senator Raggio stated:

Ms. Gallagher said that with the advent of the millennium scholarship some of the young people who could never set their sights on further education will try harder. Senator Raggio said it may also motivate parents to try harder to see to it that their children are eligible for these scholarships. They may see to it that their children stay home and study so they do not have to finance their children’s higher education.

Mr. Marvel asked how many of the 37 percent of Nevada high school graduates went to a university or community college in Nevada. Dr. Jarvis replied that about 64 percent of these students attended a school in Nevada. Mr. Marvel said many of Nevada’s good students continue their education out of state. He said if there is some way to induce these students to stay in Nevada it would be good for Nevada.

Senator Coffin remarked, "Bone-head English was a term to describe the fear we all had in the early ‘60s when we came into the university." He said he was not sure that term was still used and "maybe there is some politically correct term," but he said it is probably still a problem. The senator said perhaps "one of the answers to some of the questions which is more readily attainable" is the number of people who still have to attend bone-head English. He asked how many students took this class 30 years ago and how many students are taking the class currently. He commented that this would tell a lot about whether or not the educational system has really changed over the last 30 years or whether basically people are still the same as they were and "we just think it’s the ‘good-old days’ that have gone bad today." He said the "old-timers" in the English departments at the campuses could answer that question fairly quickly.

Dr. Nichols replied that the university does not have tracking information on the last 30 years. She said the university could gather some general information but the thing that is important to keep in mind is that the state has changed a lot in 30 years. She remarked, "With that change our universities have changed and our community colleges are now an important part of the college-going rate of Nevada students." She stated that more students have to go to college to be able to get good jobs and earn good wages. Dr. Nichols stated that not to go to college is simply to sentence the students to a lifetime of low wages.

Senator Coffin said the university must call the remedial English, or bone–head English, something else today and asked whether it was still offered. The senator asked for the numbers of people who enroll in this class today and the numbers for 10, 20, and 30 years ago. He stated, "We could get an idea about what our problem will be because even some people with a 3.0 GPA graduating from high school, may or may not be literate but may be skillful in certain other areas." He said the university has the data but may not have tracked it as a part of the work of the Chancellor’s Office. However, he said, each campus could report how many people were enrolled in the remedial English class. Dr. Nichols replied the university will do its best to collect the requested data. She noted the Legislature has the university report for this year and added, "We will see what we can do to gather the additional data requested."

Joseph Crowley, Ph. D., President, University of Nevada, Reno, University and Community College System of Nevada, said he would like to emphasize certain aspects of this bill which he believed were of particular importance in regard to the Millennium Scholarship Program. Dr. Crowley expressed his gratitude and a commendation for the bipartisan interest in this program. He said there have been comments on the college-going rate and what an impact this program would have on that rate, but he wished to add a footnote to those comments. He commented that it is in part a cultural issue and explained, "That is we have established a culture in this state, for whatever reason, that is not encouraging of going on to college." He said part of that has to do with simple economics. Dr. Crowley mentioned that Nevada measures every year, through a national survey, the character of the freshman student population. He said it is known that more Nevada students than the national average come from less privileged economic backgrounds and are more dependent on earning their own income than is the case with the national average. He noted that because of this, Nevada students are more likely to be working students and therefore carrying a smaller number of student credits. He stated that the impact on that aspect of the culture, "the economic realities of our state," will be tremendous with the Millennium Scholarship Program.

Dr. Crowley said the university interest is in a level of support to encourage full-time enrollment, or at least a commitment to as many credits each semester and as rapid a journey through the institution as possible. He said this was good for the students, the institution, and the state. He commented the $2,500 each year will be a big help with this. He noted that the university Presidential Scholarship Program, which is a major scholarship program, was for many years at the 4-year $10,000 level. He commented that this scholarship has been increased during the past few years but the $10,000 is a substantial sum of money. He said he believes it will help many students already in Nevada’s institutions, as well as those that will be coming, to move towards accomplishing a greater number of credits each semester and thereby graduating sooner. He said he echoed the thoughts of others on the desire for as simple an administrative structure for the Millennium Scholarship Program as possible in order to save costs. Dr. Crowley commented it is important to understand that there is a good deal of capability and capacity in the institutions to provide financial aid.

Senator Raggio noted that one of the questions asked referenced section 12 of S.B. 496, where there is not a directive but a suggestion that the regents develop a plan to direct other available financial aid that may exist to culturally disadvantaged or at-risk students, and the question was deferred until now. The senator asked whether or not there is sufficient other financial aid that could be so directed and whether or not this impacted or freed up financial aid. Dr. Crowley said a fair amount of aid that the university deploys is based on need in one measure or another. He said he believes the regents would welcome the opportunity to develop a plan to provide that aid. Senator Raggio said part of the question indicated some concern whether or not there is some flexibility in this type of aid that would allow it to be directed. The senator commented there is a significant amount of state money that is provided for scholarships.

Shannon Ellis, Ph. D., Acting Vice President for Student Services, University and Community College System of Nevada, said there is also a significant amount of federal money for this very population. Dr. Ellis said that while these funds are nearly exhausted currently, "we would find that by having the millennium scholarships there would be more money available without increasing the funding to award to students."

Dr. Crowley said the university is very supportive of the notion of the academic core curriculum that is set forth in this bill. He noted the regents for the universities have long since established a core curriculum as a condition of admission and passed this curriculum along to the high schools with a phase-in period to allow them to gear up to meet the requirements. He said there is a core curriculum already in place for the universities which would be utilized for the purposes of the Millennium Scholarship Program.

Ms. Evans said the university system receives money from the state for scholarships each biennium. She asked whether the university believes the state funding for scholarships should continue with the advent of the Millennium Scholarship Program or whether the university is no longer requesting the state scholarship funding. Dr. Crowley replied the university would continue to request the state funding for scholarships.

Carol C. Harter, Ph. D., President, University of Nevada, Las Vegas, University and Community College System of Nevada, said she believes the Millennium Scholarship Program is a revolutionary concept for Nevada. Dr. Harter said this program has the qualities of the GI (government issue) bill from after World War II and the programs that first made federal money available in the form of loans to a broad number of people. She said this scholarship program is wonderful in terms of what it can do for higher education and the citizenry of Nevada. Dr. Harter said a high school survey recently completed indicated that 51 percent of all students who plan to go to college said it was too expensive. She said 70 percent of those who had no plans to go to college said it was too expensive. She commented it seems the perception of how expensive college is even in a low-tuition state could be greatly mitigated by the scholarship program. She remarked that some people drop out of high school because they believe they have no prospects to be able to afford higher education. She stated the Millennium Scholarship Program could change that perception in a revolutionary way.

Dr. Harter said all of us see the GPA requirement as having tremendous effects on motivating students and their parents to succeed. She said, "I think it means that we will keep some of the best and brightest students in Nevada who now go to institutions in other states." She noted that when a student comes to Nevada and stays for college the probability of the student’s staying as a productive citizen is also increased. She said this is a twofold potential benefit: (1) it would benefit the student during the college years and, (2) after college it would provide productive workers in the state.

Dr. Harter said another issue is the entire controversy about whether the tobacco money should be used primarily for health-related antismoking programs. She said that higher education is indirectly an antismoking program. She said the university recently contacted the Centers for Disease Control (CDC) to get data on smokers relative to higher education. The CDC data indicated that 37 percent of the non-high school graduates are smokers whereas only 17 percent of university graduates are smokers. She said it seems that higher education is really an antitobacco health program in an indirect way. She commented the scholarship program is really fulfilling the spirit of the tobacco settlement dollars in providing scholarships that help educate people not to smoke. She stated this is a very important point.

Dr. Harter pointed out that part of the university’s excitement about the scholarship program is that the university will be able to redirect the state-provided financial-need-based aid, not necessarily the private scholarships, to those students who may not qualify for the millennium scholarship for a variety of reasons but who also have strong financial need. She said it seems the university will be able to go after every population that is unable to attend the university because of the cost of higher education.

Glen G. Arnodo, Lobbyist, Culinary Workers Union, said his union represents 50,000 hotel and casino workers in Las Vegas. Mr. Arnodo said the scholarship program was very important to the union members and their families. He said thousands of the Culinary Union Workers’ children, the sons and daughters of waiters, waitresses, cooks, maids, and dishwashers, will have, for the first time, an opportunity to attend college.

Myrna Preciado, Culinary Workers Union member, said she works as a waitress at the New Frontier Casino in Las Vegas. Ms. Preciado said she is a single mother with two children "and a grandmother." She stated that she never had the opportunity to attend college. She started working when she was 17 years old. She commented she immigrated to this country from Mexico and that her life has not been an easy one. Ms. Preciado commented that she feels as though she is living the American dream. She said she has a good union job with excellent health benefits and a pension when she retires.

Ms. Preciado said it was through her union activities that she learned the importance of being politically involved. She said the Culinary Workers Union encouraged her to become a citizen of this country, and since becoming a citizen she has never missed an opportunity to vote. She stated being able to vote is also part of her American dream. Ms. Preciado said the last part of her American dream is to see her children "do better than their mom did." She said it is probably too late for her older daughter to go to college. At the time this daughter was in high school, Ms. Preciado could not afford to send her to college. She said when the Governor announced the Millennium Scholarship Program she was overwhelmed. She felt that because of the scholarship program, the last part of her American dream was about to come true and she would be able to send her younger daughter to college. Ms. Preciado said there were thousands of culinary workers just like her, single mothers who work hard every day cleaning rooms, washing dishes, and serving food. She said that after working long, hard hours, she goes home to take care of her family. She said, "Please, I urge you to make our American dream come true, Please support the Millennium Scholarship Program for our children."

Madeline Sifford, Culinary Workers Union, said she has worked at the Excalibur Hotel and Casino for the past 8½ years as a carousel attendant and she is a proud member of the Culinary Workers Union Local 226. Ms. Sifford said her family is what would be called middle class. She commented that she and her husband own their own home, they both have automobiles, and they are financially secure. She noted that because of their financial status, they are caught in the middle; they earn too much for significant educational loans but not enough to save for their daughter’s college education. She commented that her daughter talks about going to college, what she will major in, and what her goals are after graduation. Ms. Sifford said that without scholarships, it would be difficult, if not impossible, for her daughter to attend college because of Ms. Sifford’s financial status. She said that sometimes it seems that it is better to be either poor or rich because, "if you are in the middle class, you do not get the tax breaks or the governmental assistance." Ms. Sifford said the Governor’s scholarship program helps those in the middle class who want the opportunity to send their children to college. She stated that she urges the Legislature to support the Millennium Scholarship Program.

Andy Anderson, Lobbyist and President, Nevada Conference of Police and Sheriffs, said that when he became a police officer in the early 1970s, most of the officers who were going to college were taking advantage of the GI bill. Mr. Anderson said the GI bill was the reason he could attend college. He commented that over time he has noticed the educational level of the new officers has steadily increased and he has observed that a lot of these new officers are from out of state. Mr. Anderson said he thinks this scholarship program may encourage some of the local citizens to attend the Nevada colleges and become stronger candidates for future police officer positions. He said the scholarship program is a great incentive to stay in Nevada to attend college and then enter the workforce in Nevada. He said the scholarship program would have assisted him in sending both of his children to college and is a great program.

Danny L. Thompson, Lobbyist, Nevada State AFL-CIO, said he came from a very large family and the Millennium Scholarship Program would have been very much appreciated. He said the millennium scholarship is a great opportunity for Nevada’s children to attend college.

Elaine Lancaster, Lobbyist and President, Nevada State Education Association, said she is a first-grade teacher on leave of absence to serve in her position with the association. Ms. Lancaster testified in support of S.B. 496 and commented that she had previously distributed her written testimony to the Legislature but would highlight a couple of the areas included in Exhibit D, a one-page handout titled "Preparing Students for a Bright Tomorrow." She emphasized the Nevada State Education Association (NSEA) opposes the creation of any new commission to oversee the scholarship program. She commented, "We should also make certain that the program does not require the use of funds beyond the tobacco settlement money." She said the NSEA, for that reason, urges both the Governor and the Legislature to balance the amount available to each student against the ongoing commitment to all students. It would be unethical and unfair to promise what cannot be delivered, she asserted.

Senator Raggio asked whether NSEA was in support of S.B. 496 or was proposing an alternative. Ms. Lancaster stated that NSEA is in favor of the millennium scholarships and hopes both bodies of the Legislature can work out the details and get the program in place. Senator Raggio said he did not understand the portion of Exhibit D that discusses a scholarship bonus for students who are preparing to enter the teaching profession. Mr. Lancaster replied the NSEA hopes there would be some extra consideration for students going into education and staying in Nevada to teach. Senator Raggio commented S.B. 496 proposes that half the tobacco settlement money be used for scholarships and asked whether NSEA has a position on this proposal. Ms. Lancaster replied no.

Senator Raggio noted that James Richardson, Ph. D., Lobbyist, Nevada Faculty Alliance, submitted Exhibit E, titled "Comments on A.B. 652 and S.B. 496 Concerning Use of Tobacco Settlement Funds for Scholarships," supporting S.B. 496 and the Millennium Scholarship Program.

Kelly Josten, Private Citizen, said he was testifying on behalf of the junior class of Carson High School. He noted the junior class would be the first class to be able to take advantage of the Millennium Scholarship Program. He commented this program would help "the great state of Nevada" to keep the students in Nevada by giving them an opportunity to get a college education. He said, "At times, many students in high school see no way of getting a higher education for reasons of family affairs or funding." He commented that for students to have an actual fund that they know about and can qualify for is a chance of a lifetime.

Senator Raggio asked how many students in Mr. Josten’s junior class he thinks will take advantage of the Millennium Scholarship Program if the opportunity is available. Mr. Josten replied, "Everyone who has the B average." Senator Raggio noted there is a provision, within the first 2 years, to take into consideration other factors if a student does not have a B average. He asked whether most of the students in Mr. Josten’s junior class see this scholarship program as a real opportunity. Mr. Josten replied yes. Senator Raggio asked whether there are students who would not otherwise go on to college who will use the Millennium Scholarship Program. Mr. Josten replied, "The students will take this opportunity because when they were freshmen and sophomores, they saw no possible way of getting to college because of funding or family affairs." He commented now that the students see there will be a scholarship program, they will get the B average needed to qualify for the scholarship.

Pat Josten, Private Citizen, said it was a great privilege to be present to support Governor Guinn’s Millennium Scholarship Program. She commented that her son Kelly has been very active at Carson High School. He is currently the junior class president and has been elected to a student body office for his senior year. Ms. Josten said that in addition to being very active in this area Kelly has maintained a 3.3 GPA and participates in sports, drama, choir, leadership at Carson High School, the church youth group, and many other service organizations throughout the community. She said her other two sons have followed in Kelly’s footsteps to be good students and good citizens and she attributes these characteristics to their love for education. Ms. Josten said the Millennium Scholarship Program can only impact in a positive way her children’s continued success in high school and the community as well as setting the stage for their success in higher education. She said, "If students know there is funding available to them for college without causing financial stress to their family, it will encourage high school students and their parents to work harder in high school and thereby be eligible for the millennium scholarship." Ms. Josten said the legislative support for the Millennium Scholarship Program would most certainly open the door to the future of Nevada. She said she believes that "children are our greatest natural resource, and with the Millennium Scholarship Program we cultivate that resource to the fullest extent."

Abby Terrobias, Private Citizen, said she is the Class of 2000 president at McQueen High School. Ms. Terrobias said her parents, teachers, and family have encouraged her and stressed the importance of doing her best and earning good grades so she can extend herself to a higher level and become whatever she strives to be. She said the ever-increasing tuition cost is always at the back of her mind. She said with Governor Guinn’s Millennium Scholarship Program students like her all over Nevada can take another look at the possibility of getting a college degree. She commented that with a B average in high school students will automatically be able to get an education at the University of Nevada, Reno, the University of Nevada, Las Vegas, and any of the community colleges in Nevada. She said this will give the students a great incentive to focus even more on the studies in high school. She said the work of the Nevada Legislature and state government is not usually a topic of much consideration in the halls of Nevada high schools, but with Governor Guinn’s Millennium Scholarship Program that has changed.

Ms. Terrobias said the Governor is making college education a much more attainable goal for the high school students everywhere. She commented that in the long run this will be beneficial for everyone because young people are the future and need to be given the best possible education so they can do what is best for society the way the committee members do every single day they come to work. Ms. Terrobias said, "Please support the Millennium Scholarship Program."

Senator Raggio asked what year Ms. Terrobias is in at McQueen High School. Ms. Terrobias replied she is a junior. Senator Raggio asked whether she thought the majority of her junior class would be interested in the millennium scholarship. Mr. Terrobias replied, "I know I am. I plan on staying in Nevada and will definitely take advantage of the scholarship program."

Senator Jacobsen asked, "What is uppermost in the minds of young people today: athletics, sports, the world situation, your future?" Mr. Josten replied, "As a student and teenager having fun is uppermost for most of us. Our world is high school, it is where we spend most of our time." Ms. Terrobias said the most important thing on her mind is her future; she wants to excel in the best way possible and give back to society.

C. Edwin (Ed) Fend, Lobbyist, American Association of Retired Persons, West Region Office, said he represents over 200,000 Nevada citizens, most of whom have grown up in the age when smoking was thought to be good. Mr. Fend said, "We smoked all of our lives." He noted the money for the Millennium Scholarship Program is significant. He said he does not oppose the Millennium Scholarship Program but he does oppose the amount of money that is being put into it because there are many health care and long-term care needs, and funding is needed for other programs that are essential to Nevada’s citizens. Mr. Fend pointed out the state already spends more than 50 percent of its budget on education. He said, "Maybe we should find out what we are doing wrong in education so that we can provide students to fill up the scholarship program." He commented he would love to see that happen. Mr. Fend said he has not heard one word about how much money from the tobacco settlement that may or may not be received, would be directed towards problems in long-term care and home health care.

Mr. Fend said he has gone on record with American Association of Retired Persons (AARP) as being in support of A.B. 652 and a previous bill that provided 10 percent of the tobacco settlement to public health. He stated, "We need to cooperate and look at this as a package." He commented the scholarship program is wonderful and he does not want to "put it down," but there is a lot of money being directed in just one direction which already takes more than 50 percent of the state budget. He suggested and encouraged that the Legislature come up with a satisfactory agreement which would provide scholarship money, maybe 30 percent of the tobacco settlement agreement, and redirect more of the money into the health care program. He stated, "We cannot use this money as a substitute for required, existing programs; it must be in addition to those programs." Mr. Fend encouraged the legislators to work together and get an agreement so this money can be put to use. He commented, "We may not get the tobacco settlement money, and that is a real possibility; and it is certainly a real possibility that we will not get the money ad infinitum as has been suggested." He further commented that many of the cigarette companies may go bankrupt, and there are not many smokers left.

Mr. Fend said, "Think about where the tobacco money accumulated; think about the fact that 34 percent of the people in long-term care now are there because of smoking-related illnesses." He said he thinks every student who signs up for the scholarship program should be required to sign a statement saying "I am tobacco-free." He asserted this would not require much and he did not propose that there be any checking done to confirm the statement. "We should take their word that they will honestly abide by something they have signed," Mr. Fend stated.

Scott J. Watts, Lobbyist, President, Nevada State Council of Senior Citizens, said 50 percent of the tobacco settlement money is a lot of money. Mr. Watts said his organization would like to see more of the tobacco settlement money going to senior citizens. He said senior citizens are the people who contributed the money to the tobacco companies. He commented that he lost his mother and father 24 years ago because they were both chain-smokers, and after that he quit smoking. Mr. Watts said the Nevada State Council of Senior Citizens supports the Millennium Scholarship Program but not the amount of money it will cost. He said more money should go into health care for senior citizens.

Brian L. Lahren, Ph. D., Truckee Meadows Human Services Association, said the association is a coalition of more than 50 nonprofit human services and health care providers in northern Nevada. Dr. Lahren said he wants to make sure it is clear that he was not here to oppose S.B. 496. He said that like a lot of people, he lost both of his parents to cigarette smoking. He commented that he went through college on a scholarship which he had to repay when he graduated, but he would not have been able to attend college without the scholarship. Dr. Lahren said it is quite clear the context for the discussion today is that the scholarship program is the point, but the counterpoint is health care. He commented that if he understood the statistics discussed earlier correctly, 14,000 people attending college in the year 2010 at a cost of more than $3,000 each year would add up to more than the total value of the tobacco settlement funds for that year. He remarked he was pleased that S.B. 496 indicated 50 percent of the tobacco settlement money is the limit to the scholarship program and he thought that was a reasonable limit under the circumstances. He said he knew that many in the health care community would like more of this money, but he felt the proposed funding split at least guarantees a balance because the pressure will be increasing to make the scholarships "more costly" over time.

Dr. Lahren said the human services community agrees that both scholarships and health care are critical to the future of a stable economy and a stable society in Nevada. He said as the citizens watch the debate and try to understand what is occurring, it is clear that "we are all concerned about the decisions we make regarding this tremendous opportunity we have with the tobacco settlement money." He said these decisions must not be driven by political partisanship. He said that whatever is decided on S.B. 496, the balance of the tobacco settlement money should be decided by bringing together the best minds the state has to offer, both inside the political scene and outside it, to frame a comprehensive proposal for the use of the tobacco funds.

Dr. Lahren said he is aware that another bill, Assembly Bill (A.B.) 263, considers establishing a trust fund that would be a place to store the tobacco settlement funds while it is decided how to disperse them.

Dr. Lahren called attention to what he called the excellent example of nonpartisan review of health care issues that was established by Senator Rawson in the interim study committee on health care. He commented that an interim study committee or commission would be something that might be a valuable way to approach a longer-term solution to the problem of how best to spend the tobacco settlement money. He commented that scholarships should be available to anyone who could potentially benefit from them. Dr. Lahren commented that his parents could not afford to send him to college; they contributed $148 to his 16-year college education. He said he could not have attended college without the loan he received and he was not opposed to repaying the loan, and he was pleased that his education was not a cost to his parents. He commented he did not see anything wrong with a program where if a student takes the money and stays in Nevada for 5 years after graduation, the entire value of the scholarship is given to the student. Dr. Lahren said the idea of the scholarship is to try to educate Nevada students to benefit Nevada business and to strengthen the state economy making it better able to deal with sophisticated business and diversifying the state’s economic base. He commented it would be reasonable to have a provision for repayment of the scholarship in the event a recipient does not stay in Nevada after graduation. He said this could create a pool of funds that could benefit more low-income students in the future.

Dr. Lahren commented that "we should look at the C students in high school." He said the Millennium Scholarship Program would benefit B students but wondered how many of the C students could be B students and asked, "Is there something that we can do to help increase the likelihood that more students become B students over time?"

Dr. Lahren said all of the health care proposals seen so far seem to be "from an outside perspective," less comprehensively strategic than the health and human services community would like to see. For example, he said, home health care is important to almost every disability group, and it is important to ensure it is included as a health component of these discussions. Additionally, he said, the tobacco money could be used "very wisely" to leverage Medicaid dollars. He noted Nevada draws in less Medicaid money than any state in the nation on a per capita basis. He said Medicaid money is a tremendously powerful engine for building a health and human services infrastructure in the state, and "we do not take advantage of this resource." He commented, "As we think about what we are going to do with the tobacco money, let’s think about how we can solve some of the basic infrastructure problems in the most cost-effective and most leveraged way possible that does not unfairly burden Nevada taxpayers." He said that hopefully this process will be a nonpartisan debate and remarked, "We are all depending on the Legislature to ensure that is the way the process is completed."

Dr. Lahren said it is acceptable if all of the decisions are not made right now and that "We can slow down, have an interim study to look at how this could be accomplished and return to the Legislature with their recommendations." He commented the money will not be received until June of 2000. He suggested it could remain in the bank for 6 months for the study to be completed and the Legislature could wait for the next legislative session to solve some of the health care issues. He commented that hopefully the debate will include all of the community and bring the state’s best minds together to reach the solutions.

Jan Gilbert, Lobbyist, Progressive Leadership Alliance of Nevada, said her group recommends 100 percent of the tobacco settlement money be used for health care. Ms. Gilbert said this does not mean the Progressive Leadership Alliance of Nevada is opposed to the Millennium Scholarship Program, because no one could be opposed to the "wonderful concept" of scholarships for the students. She said her group feels the tobacco money was intended for the health care needs of individual states. Ms. Gilbert said her group urges the Legislature to address the needs of the communities. She said the committee knows the needs of the state and knows the waiting list of people waiting for health care services. She stated the statistics of Nevada are "severe; we are usually last or in the bottom 10 percent of health care services." She said the tobacco settlement money is a gift being given to the state of Nevada to change those statistics. She said, "We could make a real impact and have health care for everyone in the state of Nevada, at least allow them the opportunity."

Ms. Gilbert said she received statistics that show 20 to 39 of the other states are considering using the tobacco settlement money for health care needs of their communities. She noted the governor of Alaska wants the tobacco settlement money to go to health care for uninsured children and pregnant women, and in Colorado the attorney general is proposing the tobacco settlement money be used for children’s health programs and smoking prevention programs. She said that in Florida funding was approved for an outreach program for high-risk pregnant women, children’s antismoking program, and a healthy families/child welfare program. She noted that in Massachusetts the governor wants to create a trust fund dedicated to health care for children, low-income adults, and the elderly. She commented Nevada has a couple of proposals for trust funds for health care.

Continuing, Ms. Gilbert said three states, New Jersey, South Dakota, and Wisconsin, are using tobacco funds to enable state workers to obtain health insurance. She noted Nevada has a problem with state workers’ health insurance also. She urged the Legislature to allocate 100 percent of the tobacco settlement funds to health care. She commented there are a number of foundations around the state that would contribute to the Millennium Scholarship Program. Ms. Gilbert said there is a possibility the revenue will increase this session and the increase could possibly fund the Millennium Scholarship Program. She stated the Progressive Leadership Alliance of Nevada feels the tobacco settlement money was intended for health care and should be put into health care.

Roberta Gang, Lobbyist, Nevada Women’s Lobby, emphasized she does not oppose S.B. 496. Ms. Gang said the Nevada Women’s Lobby wants to suggest the money from the tobacco settlement be directed towards the health care needs of the state. She commented the health care needs in Nevada are great. She said the Nevada Women’s Lobby has come before the Legislature many times through the years asking for various types of government funding for health care programs and the group’s priorities are well-known. She stated, "The health care for women and children has been foremost in our minds." She noted long-term care for seniors is also at the top of the lobby’s priority list. She said she knows this is going to be a difficult and long-debated topic for this legislative session. She urged the Legislature to listen to recommendations from both sides, the opponents as well as the supporters, to come up with a bill that will be in the best interest of Nevadans of all ages.

Ms. Gang stated the Nevada Women’s Lobby supports the concept of scholarships but would like to see them need-based and directed to students who are going into a health-related field. She encouraged the Legislature to leverage the tobacco money by putting it into programs that can receive matching federal funds or from other private sources. She said the Nevada Women’s Lobby has a list of health care needs that is compiled from its 1999 agenda booklet that has been distributed to the Legislature, Exhibit F, a four-page handout titled "Testimony Regarding S.B. 496."

Mr. Perkins voiced support for S.B. 496. He said he is encouraged there are some additional accountability measures in S.B. 496 that have been added because of previous testimony. He said it is his wish that both parties of both houses and the administration work together to find agreement to put together legislation that not only the Legislature can be proud of but Nevadans can be proud of. He suggested there are more similarities than differences in the Assembly and Senate bills discussing the use of the tobacco settlement money.

Senator Raggio adjourned the meeting at 10:25 a.m.

RESPECTFULLY SUBMITTED:

Millard Clark

Committee Secretary

APPROVED BY:

Senator William J. Raggio, Chairman

DATE:

Assemblyman Morse Arberry Jr., Chairman

DATE: