Schools face loss without tax hike

Cy Ryan and Emily Richmond

Monday, Feb. 24, 2003 | 10:54 a.m.

The Clark County School District will have to shave its budget by $75.8 million next year if the Legislature does not approve Gov. Kenny Guinn's budget or an alternative tax plan.

"It's a terrifying prospect," School Board President Sheila Moulton said Friday. "We're not going to stop lobbying to keep this from happening, but we're bracing ourselves for some very scary times ahead."

Jack McLaughlin, state superintendent of public instruction, has sent guidelines to the state's school districts for preparing their budgets for the next fiscal year, which begins July 1. He said the 17 districts face $126 million in reductions without new tax revenue.

"This is a big bomb," McLaughlin said Friday in Carson City. Even if the governor's budget and new taxes are approved, some districts may still have to reduce their planned spending, he said.

Only direct classroom instruction will be protected from the potential chopping block, Walt Rulffes, deputy superintendent of operations for the Clark County schools, said. Everything from administrators' cars and cellular phones to after-school activities and bus transportation for high school students must be considered for cuts, Rulffes said.

Clark County has already cut $90 million from its $1.2 billion annual budget in the last three years. If the steep cuts predicted by McLaughlin are necessary, the district may have to reduce its Gifted and Talented Education program, delay new school openings and increase class sizes, Rulffes said.

The School District will seek public input on proposed cuts at a series of town hall meetings beginning March 5, Rulffes said.

"We want to ensure we get a cross section of public feedback," Rulffes said. "If we end up having to cut days from our summer school calendar or eliminate transportation at the high school level, parents need to be prepared for it."

The school districts must present their tentative budgets to the state departments of Education and Taxation by April 15. Public hearings must be held by May 21, and June 8 is the deadline for adoption of the final budget.

But the districts have until 30 days after the adjournment of the Legislature, slated for June 2, to amend the final budget.

McLaughlin, in his advice to the districts, said local education officials "will want to advise their constituents of the potential effects if the additional revenue is not provided."

"School districts should be aware that even if the governor's budget is approved as it was proposed, some will still be required to make reductions in order to balance their budgets," McLaughlin said.

For instance, he said, school districts with declining enrollment would lose money. There is a "hold harmless" provision that a district would get its full allocation, even if it has lost students for two years. That extra benefit would be available for only one year of declining enrollments.

"While we are hopeful that additional revenues will be generated through the legislative process, there are no guarantees," McLaughlin told superintendents Friday.

Other school districts that would be hit hard would be Washoe County, which could lose $17 million; Elko County, which stands to lose $6.1 million; and Lyon County, which has $5.8 million at stake.

Guinn's plan for a $1.1 billion tax increase is expected to be introduced this week. Mike Hillerby, assistant chief of staff, said employees in the governor's office and the Legislative Counsel Bureau worked through the weekend tying up loose ends.

McLaughlin is scheduled to speak Tuesday to the Senate-Assembly education budget subcommittee to detail the governor's plan for $960.3 million in support to local school districts next fiscal year and $1 billion in following year.

The current fiscal year's school aid package is $750.3 million.

The governor estimates there will be about 372,000 students statewide next fiscal year, a 4 percent increase in enrollment, and 384,900 students the following year, an estimated 3.5 percent annual increase. That works out to 27,600 additional students over the two years, with most of that growth in Clark County.

The budget includes a 2 percent pay raise for teachers in July, to fulfill a promise made in 2001.

Guinn's plan also calls for an extra $50 per student for the purchase of books and a $3,000 bonus for teachers in math, special education, English as a second language and psychologists.

The budget incorporates an annual $2,000 bonus for teachers who remain in at-risk schools, and $24 million is set aside to start a full-day kindergarten program beginning with at-risk schools.

The budget also continues a $2,000 signing bonus for teachers who sign up at Nevada school districts.

The education budget crisis comes at a time when the state is already struggling with new federal requirements.

The Senate Finance Committee introduced a bill Friday to bring the state into compliance with the federal No Child Left Behind Act. It requires more testing of students, evaluations whether there is an improvement of the achievement of students and upgrading the qualifications of teachers in certain areas.

Senate Bill 191 provides $6,000 to principals and assistant principals at schools that are deemed to need improvement; $3,000 for the teachers; and $1,000 for support staff.

Senate Majority Leader Bill Raggio, R-Reno, said he has asked the legislative staff to do an analysis of the federal law to make sure money is available for the testing and assessments ordered by the act.

Last week Sen. Harry Reid, D-Nev., said many of the sections in the bill do not carry money to pay the state for carrying out the plan, but Sen. John Ensign, R-Nev. said there will be $75 million more for the state and there were no "unfunded mandates." If the federal government does not provide the money, the state does not have to do the testing, Ensign said.