Las Vegas Sun

March 29, 2024

Regents approve $1.2 billion budget

CARSON CITY -- While facing financial problems this year, the University and Community College System of Nevada is looking to increase its spending during the next two years by 24.7 percent to $1.2 billion.

But school officials say they probably won't get that amount from the Legislature.

The board of regents Thursday approved the biennial budget that will be submitted to Gov. Kenny Guinn, who will whittle it down and present it to the 2003 Legislature.

Dan Miles, the vice chancellor for finance who developed the budget, said, "We don't know what will happen. We probably will not get everything."

Regent Tom Kirkpatrick said, "This will not be all approved. ... Higher education doesn't get everything they want."

Miles noted there was a governor's task force studying a revamping of the tax system and nobody knows what it will recommend for more tax revenue.

No money is included in the system's budget for the recommendation from the regents to raise faculty salaries by 4 percent next fiscal year and 3 percent the following year. The budget does not include inflation factors for insurance and utilities.

Miles told the regents the governor decides on the pay raises and how much inflation should be included.

The budget doesn't include the $55 million proposed for enhancements such as equipment for the UNLV dental school, athletic fee waivers in the gender equity program and more technology money.

The overall budget request calls for an increase of $254 million, of which $143.7 million is attributable to a 6.1 percent growth in student enrollment.

The budget proposes a major shift in the spending pattern. The university has built up money received from the estate tax. The Legislature, with the concurrence of the university system, has used that money to support ongoing programs in the system.

But the estate tax is being phased out by the federal government. The university wants to convert that to an endowment fund, using only $2.5 million a year gained from interest to finance programs.

The regents want the Legislature to pick up $61 million over the next two years to replace the money from the estate tax.

If that estate tax shift is approved, the state will be paying $991.7 million during the biennium, an increase of 38 percent. Student fees will also be going up 23 percent to chip in $255 million towards the budget. Other miscellaneous revenue sources will make up the rest.

The regents in April approved a tuition increase. A credit hour now costing $79 will go to $85 next fiscal year and $91 the following year at the universities for undergraduates. The fee for the community colleges will rise from $45 to $47.50 next year and $49 the following year.

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