Higher education could be hit with major cuts

Cy Ryan and Jennifer Knight

Thursday, Feb. 27, 2003 | 11:20 a.m.

CARSON CITY -- Capped enrollments, layoffs throughout the university system and severe program cuts will be a likely outcome if legislators do not support Gov. Kenny Guinn's budget for higher education, university system officials told legislators Wednesday.

Guinn's proposed $1.2 billion budget for the University and Community College System of Nevada rests precariously on a plan to increase taxes -- a plan that many legislators have not warmed to.

Chancellor Jane Nichols told the Senate-Assembly budget committees Wednesday that rising enrollment would force reductions if Guinn's budget is not approved and spending levels stay the same.

"Loss from the governor's recommended budget would be equal to the entire Community College of Southern Nevada and the Truckee Meadows Community College combined," she said. "Closing the Desert Research Institute, Great Basin College (in Elko), Western Nevada Community College (in Carson City) and the Nevada State College (in Henderson) would not cover the shortfall."

The Guinn plan includes money from proposed higher taxes. If revenue is not increased, Nichols said, there would be cancellation of class sections, layoffs, capped enrollment, program elimination, off-site campus closures and elimination of financial-aid dollars.

Nichols said the governor's budget covers the cost of increased enrollments. It finances 86 percent of a longstanding formula used to fund the system, she said. In the last Legislature the university and college system was funded at 80.2 percent of the formula.

Students have complained about too few classes. Since the governor ordered a 3 percent budget cut last year, the schools have not been able to hire enough full-time instructors, she said.

Senate Majority Leader Bill Raggio, R-Reno, questioned the increase over the 2001 budget, saying of the current request, "This is an enhancement."

Nichols said the system has not been able to sustain many areas.

Other lawmakers were more receptive to Nichols' budget plan, but two Las Vegas senators questioned the $7.8 million for the Nevada State College at Henderson. Though funding for all other institutions is based on a formula, the Henderson campus is not.

"That throws up red flags," Sen. Barbara Cegavske, R-Las Vegas, said.

Sen. Bob Coffin, D-Las Vegas, added, "It's not formula-driven, it's politically driven."

Regent Mark Alden this morning defended the new college's funding. "You're blowing $14,000 (per student) at a university when it can be done cheaper at the community college and the state college," he said.

If there is no extra money, Nichols said, the university system would have to institute enrollment limits, meaning that students would be turned away. In addition, reductions would have to be made in high-cost programs like nursing, and the university would be unable to increase research capacity.

The $1.2 billion budget includes $890.6 million from the state; $281.3 from student fees and other revenue collected by the system; and $91 million from the estate tax.

The estate tax will be eliminated entirely in 2005 due to federal tax changes. University officials asked committee members to guarantee that the state will make up the loss of those estate funds.

Dan Miles, vice chancellor for finance, said over the past decade, estate tax revenue has ranged from $2.5 million to $41 million a year. He said 275 full-time positions are financed from the estate tax funds.

"If the estate tax revenues come up short, we don't have a fall-back solution," said Miles.

Raggio told Miles, "Your proposal is to shift the risk to the state."

"Yes," Miles replied. "It's a way to protect UCCSN from a shortfall."

The Associated Press

contributed to this story.