Panel OKs formula for college funding

Thursday, June 22, 2000 | 11:17 a.m.

CARSON CITY -- A new formula to end two years of complaints that UNLV and the Community College of Southern Nevada have been shortchanged in the distribution of state funds, has been approved by a legislative committee.

Regent Steve Sisolak, a major critic of the present spending pattern, said the new allocation is a "giant step toward ending the disparity." Senate Minority Leader Dina Titus, D-Las Vegas, said the formula will create a level playing field for UNLV.

Titus, a professor at UNLV, said the University of Nevada, Reno, would not be hurt initially because of a guarantee it will not receive less money than it is presently receiving.

The change in the formula doesn't mean more money for the system. It is just moving the money around. The formula is based on the University and Community College System of Nevada receiving 19.5 percent of the state's general fund budget, which is expected to grow 4.3 percent a year.

Interim Chancellor Jane Nichols said the 4.3 percent increase in tax collections by the state was conservative. She is to present the system's proposed budget to the regents at a meeting in Elko Friday. And university sources say she will recommend about a 10 percent increase.

"I'm going to propose a budget that is larger than 19.5 or 20 percent of this dollar amount based on the hope the state revenues will be greater than this very conservative rate (4.3 percent)," Nichols said. But she declined to say how much.

But she said the regents must also have a plan ready in case the higher revenues don't materialize.

The early budget of the university system called for 28 percent. That prompted criticism from Guinn who has directed his state agencies to come in with flat budgets for the next two years. Guinn said he was "both displeased and disappointed" to hear the regents are considering a budget of $1.1 billion. He said this was unacceptable.

Nichols and Guinn have met since then. And the proposed spending program for the university has been trimmed.

Nichols, who headed a working group that devised the new distribution formula, said the money allocations are very close to the present formula, which is nearly 15 years old.

This new formula, she said considers equity, equipment needs and student disabilities. Starting salaries at similar institutions will be the same.

And it adds a new wrinkle. Two percent of the money allocated to the university system would be set aside to allocate to the schools that show high performance in such things as graduation rates, keeping freshmen in school; and the amount of grants a school receives.

The new system will give the community colleges a bigger share of the budget in the future. At present, the two universities receive 66.2 percent of the money. By the year 2007, that will drop to 62 percent. And the rapidly growing community colleges will be getting bigger shares.

Community colleges now receive 33.8 percent and that share would rise to 37.9 percent in 2007.

There are still questions about the creation of the state college in Henderson. It would start in fiscal 2003 with a budget of more than $6.6 million, if the Legislature approves. Some committee members fear that will drain funds from existing schools.

Titus said her backing does not indicate support for Henderson. "That does hurt our funding," said Titus, pointing out there will be the same pie of money but it would have to be sliced thinner.

"The message that has been given to us is real unclear as to how much the state college will dip into the pie," she said.

Sisolak expressed the same concerns about dividing the pot in more pieces. Adding in Henderson, the dental school and the proposed pharmacy school would mean less money available for the established schools. "Clearly Nevada State (Henderson) is going to drag down the percentage," that each school will receive, he said.

By changing the complicated formula and all things being equal next year, UNLV should receive 2.3 percent more money while UNR will get an increase of only 0.83 percent.

The Community College of Southern Nevada, under the projections, would not receive a bigger share of the budget for the next several years. Nichols sought to adjust the formula so CCSN would realize an increase. Senate Majority Leader William Raggio, R-Reno, agreed to a minor change so that CCSN would not receive a smaller share but blocked the move to increase its part.

Nichols, in talking about the projection of Guinn that tax collections will increase only 4.3 percent, said it will be very difficult for the system, which is experiencing higher growth rates in students. There will be more students but a smaller growth in percent of dollars.

She said if that continues, the system may have to limit students.

The 1999 Legislature, heeding the complaints about inequities, agreed that $12 million should be spent to make the schools more equal.