$2.9 million OK’d to correct error in CCSN budget

Wednesday, June 19, 2002 | 10:27 a.m.

CARSON CITY -- The Legislative Interim Finance Committee Tuesday authorized more than $2.9 million to correct an error in the budget of the Community College of Southern Nevada and to help pay malpractice insurance premiums for the medical school.

Jane Nichols, chancellor of the University and Community College System of Nevada, told the committee there was a technical error discovered in the budget at the 2001 Legislature that shorted the community college about $2.5 million.

She said the error involved classifying the classes at the community college and how much money the classes were entitled to. The Legislature was not informed of the mistake and it had no chance to correct it, she said.

At the time, CCSN was in "some disarray" because of a change in presidents and the death of the financial officer, she said.

CCSN President Ron Remington told the committee this "will bring CCSN to the level of funding at other institutions."

The finance committee also approved $388,108 to the medical school for insurance for 415 physicians and interns whose coverage with St. Paul Cos. expires June 30.

Interim Dean Stephen McFarlane told the committee that a group of 11 persons evaluated the proposals from six insurance carriers and chose Doctors Company of California. The yearly premium is $2 million, up from the $1.2 million being paid St. Paul Cos.

He said Doctors Company, which had provided coverage for the medical school for 13 years in the past, was the "best fit" for the medical school.

The medical school is paying 46 percent of the increased $800,000 premium and the hospitals and other groups will contribute the rest.

He said Doctors Company was chosen because it had agreed to cover 10 percent more physicians at no extra cost. The money for CCSN and the medical school will come from the estate tax fund managed by the university system. By the end of the next fiscal year June 30, 2003, the fund is expected to have $81.4 million and these allocations will decrease it to $77.7 million.

The finance committee also allowed the universities and the community colleges to use the fees they collected during this school year from the extra students that showed up on campus.

Nichols said classes were added to handle the unexpected increases at the university campuses in Las Vegas and Reno, at the Western Nevada Community College in Carson City and at the law school at UNLV.

She said the extra fees amount to $1.4 million, but much more than that was spent accommodating these students.

Nichols was questioned by lawmakers whether the system will help the state through its financial crunch. "UCCSN stands ready to do our part with the state's problem," she said.

The system will return $1.4 million of its budget next year to the state treasury. But, she said, the system faced increased enrollment.

She said the governor "has spared" the university and community colleges any reductions for this fiscal year, which ends June 30.