Guinn plans more school money

Wednesday, Dec. 8, 2004 | 11:03 a.m.

CARSON CITY -- Gov. Kenny Guinn said today that the budget he will propose for the coming two years will include more money for elementary schools and an increase in the Nevada's "rainy day" fund, which currently stands at $120 million.

Guinn also said he does not know yet whether Nevada can afford pay raises for state workers, university officials and public school teachers.

Although teachers may not get a raise, Guinn, a former Clark County schools superintendent, said he will continue to make education funding a priority.

On Tuesday, the Board of Examiners, of which Guinn is chairman, allocated more than $7 million to 127 schools to help students improve achievement levels.

Guinn said today he wants to improve the way the money is distributed and to see that the schools get the funds earlier rather than next February.

The governor has started budget meetings to prepare a spending program to be presented to the 2005 Legislature.

The budget is based on the Economic Forum's forecast of tax revenues of $5.7 billion, a 14 percent increase over the the revenues forecast for the current biennium.

The governor also said there is a $220 million hole to be filled immediately in the upcoming budget. The state is losing its share of the estate tax that is being phased out by Congress. And Guinn and the Legislature used about $70 million of the state's surplus last session to fund programs.

The rainy-day fund was drained of $135 million to pay government expenses in 2003. A strong economy has replenished it by $120 million. The governor said he is "absolutely" going to add more money to that figure.

If the money had not been taken out, Guinn said, the fund would have been $160 million or $175 million because of interest and other things. "That's still not a lot," he said of the fund used to meet emergencies.

"Look how fast it went. As we get bigger and we get more diverse and the environment the nation is in, we have to be prepared to live with it."

There is an estimated $300 million in surplus that the governor can use in addition to the money forecast by the Economic Forum. Guinn wants a trust fund for education to help schools in need.

He said there are 137 schools on the failing list and another 120 school that are on the warning list.

He added that some money must be allocated to schools to prevent them from winding up on the failing list.

Asked if there is enough money for pay raises this coming two years, Guinn said, "I'm trying," and added, "I hate not to. We're looking at what the future holds."

The governor said he met with officials of the University and Community College System of Nevada this week about the budget. Asked if there might be enough money for construction of the first building at the Nevada State College in Henderson, the governor said he did not know.

The governor also said he wants to see the university system prepare schoolteachers to teach the courses required in the public schools.