Editorial: Money should go back to the state

Friday, April 13, 2001 | 9:29 a.m.

State agencies that overestimate their caseloads typically must return excess money to the general fund to help eliminate wasteful spending. If this were not the case, we fear many agencies would purposely fudge their estimates, leading to bloated budgets. The real losers would be other agencies that had to serve more customers than initially calculated, leaving them starved for needed funds.

In order for the state to maintain sound budgetary policies, we believe the University and Community College System of Nevada ought to return $9 million to the general fund. This surplus was generated for students that never entered the system. Sun reporter Jennifer Knight informed us that the miscalculation was based on old enrollment figures. More specifically, there was lower-than-expected turnout for a union apprenticeship program at the Community College of Southern Nevada, as well as a reduction in free classes that were counted toward enrollment. The result was a decline of about 2,000 students.

There is no question that higher education could use the excess money for salaries or other programs. But allowing universities and community colleges to keep money based on overestimated student enrollment figures would be unfair to other state agencies that return money to the general fund based on similar miscalculations.

It would set a dangerous precedent for our system of higher education to keep the $9 million because other agencies are sure to take note and overestimate their caseloads if they know they would not get penalized.