“What measures are you proposing to the Legislature this session to deal with the projected shortfall in funding for the Millennium Scholarship Program?”
The Millennium Scholarship Program has been more successful than we ever dreamed. More than 41,200 Nevada high school graduates have qualified for this program in the five years since its inception, with over 28,000 students initiating use of the scholarship and 1,905 students earning associates degrees, baccalaureate degrees or certificates.
Nevada’s economy has always relied heavily on our successful tourism and gaming industries. Events in recent years, however, have shown that the prudent course of action for the long-term economic health of the state is to diversify the economy. And while Nevada has a very favorable business climate, which has attracted record growth in the state, the challenge has been to provide the educated workforce necessary to ensure businesses are successful.
To determine if the Millennium Scholarship was reaching its goal of keeping the best and brightest in-state for college, in 2003 the state treasurer’s office, along with the Senator Alan Bible Center for Applied Research, conducted a baseline study. After just three years, the statistics showed the scholarship was having the desired results. Of those who responded to the survey:
57.1 percent said the availability of the Millennium Scholarship increased the amount of effort they put into their schoolwork;
Almost 70 percent of parents reported they used the Millennium Scholarship to encourage their children to do well in school;
58.3 percent said they would not have been able to attend college without the scholarship;
36.3 percent would have attended school out-of-state.
In addition, the percentage of Nevada college-going students attending college out-of-state decreased from 36 percent in 1994 to 24 percent in 2002.
However, sometimes good news brings unexpected challenges, and the Millennium Scholarship is no exception. When the program was introduced in 1999, the intent was to use an extraordinary stream of revenue to make this concept a reality. Nevada was about to begin receiving its annual share of the Tobacco Master Settlement Agreement, the result of litigation between 46 states and the four largest tobacco companies. Nevada’s share was expected to be $1.2 billion over the next 25 years. The Legislature voted to give the Millennium Scholarship Program 40 percent of these funds. The funds have come in about 2 percent less than forecast each year, and when combined with the program’s enormous success, the funds have run out sooner than expected.
The solution agreed to by the legislative leadership will fund the Millennium Scholarship through at least 2017. It will consist of a one-time appropriation of $48.7 million over fiscal years 2006 and 2007, and then an ongoing annual appropriation of $8 million. The $8 million consists of money that will come from the Unclaimed Property Trust Fund. The Unclaimed Property program, which is also administered by the state treasurer’s office, receives all abandoned cash and property that is turned over to the state for safekeeping. The office first looks for the rightful owners or heirs – in fiscal year 2004 the program returned over $7 million – and then, as required by statute, turns over excess money to the state. The $8 million is a portion of this surplus.
Even with this new funding source, some additional changes will need to be made to the requirements for both attaining and retaining the Millennium Scholarship. I have proposed several changes that will be included in a state treasurer’s bill during this session of the legislature. These changes would serve to reduce the Millennium Scholarship payments by approximately $10 million annually. The changes include: paying a flat rate of only 12 units at a university or state college and six units at a community college; not being allowed to use scholarship funds to pay for any remedial coursework; and, what I refer to as the “tough love” provision, which would not allow students to regain the scholarship if they lose eligibility for any reason.
Ultimately, it is up to the legislators to decide which changes to make; however, it is my hope that as they make these changes they adhere to the spirit of the scholarship and continue to make it available to as many students as possible and not increase required grade-point averages to the point where most students do not qualify.
I believe that continuing the Millennium Scholarship Program will prove vital to ensuring Nevada’s economic strength and competitiveness, and it is my hope that it will now be funded for many years to come.
