Regents look at plans to offset end of estate tax

University regents can read the handwriting on the wall - the days of the state getting a share of the federal estate tax are numbered.

Congress is considering abolishing or phasing out the tax, and Republican presidential candidate George Bush is pushing that in his platform.

If the proposal should pass, the loss of revenue could put a dent in the budget of the University and Community College System of Nevada, prompting regents to consider a transition plan to wean themselves off the estate tax revenue.

The 1999 Legislature authorized the university to spend $55 million from the fund for the present biennium. The university has $115 million left in the fund, which is replenished as wealthy Nevadans die.

The Legislature also uses the fund to pay part of the bill for class-size reduction in the primary grades.

''It's been a great boon for the system,'' says Regent Douglas Hill of Reno, chairman of the regents' subcommittee on the estate tax.

To replace the funds, Regent Mark Alden of Las Vegas has proposed setting aside $100 million that can't be touched. The interest earned on the $100 million would be split, with half returning to the fund to build it up and the rest going to the university system.

Most of the $55 million this biennium is going for continuing programs and for staff. Among the expenditures, $11.7 million was set aside to close a funding disparity between UNLV, the University of Nevada, Reno and the community colleges. About $7.8 million is being spent for positions in technology and $8.4 million is going for student financial aid.

The fund also is spending $2 million to bring gender equity to athletic programs at UNLV and UNR, and Great Basin Community College is getting $1.5 million to expand to four-year programs. Several million dollars is allocated for community colleges to hire more full-time faculty.