Members of the Legislature's Interim Finance Committee this morning approved tranferring $4.2 million from the state's College Savings Plans program to the Gov. Guinn Millennium Scholarship program.
At an earlier IFC meeting, committee members asked the Treasurer's Office about how the transfer might impact the College Savings Plans and the Nevada Prepaid Tuition programs. Committee members were informed the transfer would not affect the Nevada Prepaid Tuition program's current funded status of approximately 100 percent, nor would the transfer adversely affect individual Nevada College Savings Plans account holders.
The transfer will ensure the scholarship will last through June 30, 2011.
A funding gap of approximately $4.2 million for Fiscal Year 2011 existed following lower than anticipated funding from Nevada's share of the tobacco master settlement agreement (which was not known until the state received its payment in mid April) and a total of $32.8 million in available funds being removed from the scholarship trust fund by the State Legislature for other purposes.
Treasurer Kate Marshall said the transfer will not adversely affect Nevada Prepaid Tuition contracts.
"Per state law, payments made by contract holders must be held in a separate account (Higher Education Trust Fund) and deposits into these individual accounts are not state revenue and cannot be used to pay for any expenses other than tuition payments."
The Nevada Prepaid Higher Education Trust Fund is currently funded at approximately 100 percent.
