Nevada educators fear further funding cuts

Thursday, Feb. 13, 2003 | 11:25 a.m.

Nevada educators are decrying President Bush's plans to cut reimbursements to schools that educate children of military personnel, arguing that the Silver State is already being shortchanged when it comes to its fair share of federal education money.

Clark County has seen its share of what the federal government calls "payment in lieu of taxes" drop from $2 million five years ago to $375,000 last year. Under the new proposal, Clark County will see its payment drop to $80,000.

"It's certainly very troubling," said Walt Rulffes, deputy superintendent of operations for the Clark County School District, which stands to lose about a quarter of a million dollars in federal funds. "It may not be the most significant chunk of our budget, but we know every little bit adds up."

Because the federal government doesn't pay property tax, which is one of the primary funding sources for public education, the government gives school districts money to help make up for the lost revenue that might otherwise have been collected.

Currently school districts receive federal impact aid in exchange for teaching children of military personnel, regardless of where they live. Under the new formula, only children living on military installations or other federal land would be counted.

About 1,000 Clark County students live either on federal land in the area or on Nellis Air Force Base, according to district records. An additional 2,600 students are from military families living elsewhere.

The Office of Management and Budget has argued that people living off base are already paying property tax so the government shouldn't have to pay twice.

Rep. Shelley Berkley, D-Nev., this morning called the proposed change "an outrageous attack on the public education system of this country." Berkley said she would vigorously fight the proposal when it comes before Congress in the coming months for approval.

The proposal was particularly upsetting given the possibility of America waging war on Iraq, Berkley said.

"At a time when we're calling up our reservists the president wants to decimate funding for their children's schools," Berkley said. "I find that unconscionable."

Impact aid funds have been steadily declining, said Terry Lizotte, director of the federal programs office for the Clark County School District.

"Five, six years ago we were getting upwards of $2 million," Lizotte said. "Now we get about $500,000, which is tough because it's not like we have fewer kids to serve."

The reimbursement rate for children living on base was $118.92 per pupil in 2000, the most recent figures available, Lizotte said. Reimbursements for children off base was 20 percent of that, or $23.78 per pupil. Additional funds are given for special education students.

Clark County's share of the funds has shrunk in part because of the school district's overall soaring growth, said John Forkenbrock, executive director of the National Association of Federally Impacted Schools.

Impact aid is calculated using both the number of students who qualify and what percentage they make up of a total school district enrollment. As the nation's sixth-largest -- and fastest-growing -- school district, Clark County has seen its overall enrollment swell to 255,800, while the number of children of military personnel has stayed steady at about 6,200, Forkenbrock said.

"You're growing like crazy out there," said Forkenbrock, who is based in Washington. "But 6,200 kids is just 3 percent of your total enrollment, and that's not a whole lot as far as the federal government is concerned."

By comparison Churchill County -- which serves families at Fallon Naval Air Station -- has 4,300 students and 30 percent are from military families, Forkenbrock said.

Churchill County receives about $1 million a year in impact aid and stands to lose $165,000 if children of military personnel living off base are excluded, said Don Lindenman, assistant superintendent of operations for the school district.

"In a district our size, that's a significant amount of money," Lindenman said.

Funding for schools comes largely from three revenue sources -- property, motor vehicle and sales taxes. Because people living on federal land are exempt from property taxes, impact aid is supposed to replace the money schools would have otherwise collected, Forkenbrock said.

But other families living off base also are already getting tax breaks that ultimately mean less money for schools, Forkenbrock said.

In Nevada most active duty military personnel are also exempted from paying motor vehicle privilege taxes. Additionally, many military families do their shopping on base where prices are lower and no sales taxes are collected.

"Schools are already losing out on those two lucrative sources of revenue," Forkenbrock said. "Clearly, there's an impact regardless of the military family's home address."