Property tax cap leaves school district budget a bit shaky

Thursday, May 19, 2005 | 10:02 a.m.

The Clark County School Board approved a tentative $1.75 billion operating budget Wednesday but acknowledged that the unfinished work of the state Legislature leaves some sizable holes in the equations.

The 2005-06 budget was based on the assumption that Clark County will receive $4,310 per student, slightly less than the projected minimum per pupil guarantee of $4,490. The district expects more than 295,000 students for the coming academic year, an enrollment increase of about 5 percent.

Clark County typically receives 96 percent of the minimum guarantee as the state's formula factors in the extra funds the schools receive from its share of property tax revenues, said Walt Rulffes, deputy superintendent of operations for the School District.

But if the new cap on property taxes eliminates that additional revenue, there's no way of knowing if the state will make up the difference, Rulffes said.

Thanks to soaring home values, the district has seen a windfall of extra cash from its share of property tax revenue. That money has been used to expand the district's capital improvement plan, renovate additional older schools and replenish emergency reserves.

Clark County School Board member Sheila Moulton said she's frustrated that the district's students aren't getting the funding they're entitled to receive.

"Our needs are as great or greater than the rest of the state," Moulton said.

The district is also closely watching a proposed bill to eliminate the governmental services tax, which could shave $58.7 million from the operating budget and $28 million in capital funds, Rulffes said.

"We've assumed that money is going to be there (for the 2005-06 budget)," Rulffes said. "That bill is critical to us."

Legislation to fund full-day kindergarten programs could also force the district to revise its budget although that's one batch of paperwork Rulffes said he would be delighted to handle.

"We don't discount the value of getting additional state funding at any level," Rulffes said.

While educators have lobbied heavily this session that lawmakers fund full-day kindergarten classes for all students, it appears more likely that only at-risk schools would see state dollars for the program. Clark County currently uses federal Title I funds to pay for full-day kindergarten programs at schools with the highest percentage of students coming from low-income households.

If lawmakers choose to fund full-day kindergarten only at the poorest schools, Clark County would no longer be allowed to use Title I dollars for those classes, said Agustin Orci, deputy superintendent of instruction. School districts are prohibited from using federal funds to pay for programs or services already paid for by states.

The district would likely shift those Title I dollars to early education programs for 4-year-olds, Orci said. The number of full-day kindergarten classes for at-risk students would probably remain the same.

Another concern is the ongoing impact of 2003 legislation that required public employers to increase contributions to retiree health care costs. The bill was mistakenly passed without seeking fiscal notes from school districts, creating an unfunded mandate.

Doug Thunder, deputy superintendent of administrative and fiscal services for the state Education Department, said both houses of the Legislature support additional funding to help school districts cover the contribution requirements.

The Clark County School Board has 15 days after the close of the legislative session to file an amended budget. A final version must be submitted to the state's Department of Taxation prior to Jan. 1 of next year.