State’s higher education system faces deficit in account

Thursday, Feb. 1, 2001 | 11:17 a.m.

The state's higher education system took a beating in the stock market last year, leading to a $3.1 million deficit in one of their reserve accounts.

The reserve account dropped from $202 million in January 2000 to $187 million by year's end. The university and college campuses get 6.4 percent of that balance each month for their operating budget. The percentage budgeted for the schools was supposed to be less than the return on the principle.

However, because of the slumping stock market the schools are spending money faster than the account is earning, according to an investment report released this week.

"This is ridiculous. We're guaranteeing a payout that we're not meeting, and as far as I know, this deficit will continue," said Regent Steve Sisolak, at an investment committee meeting.

Even though the market fluctuates, higher education institutions are guaranteed a fixed amount. That, said Sisolak must be looked at closer.

The committee will decide on April 18 whether to lower the percentage that schools will get from this fund.