School, union officials back bill on school construction

By Cy Ryan

Friday, Feb. 18, 2011 | 2:46 p.m.

CARSON CITY – School officials, contractors and union representatives lined up Friday to back a bill that would allow school districts to use more money for construction.

Assemblywoman Debbie Smith, D-Sparks, said the money could be used to rehabilitate and make aging schools more safe. Voters in school districts across the state approved bonds for school construction and that money “was never intend to solve the budget problem,” she said.

Gov. Brian Sandoval wants to draw down the money in the reserve accounts to be put into the daily operation of schools.

Assembly Bill 183 would permit school districts to lower their reserve accounts kept as backup to pay construction bonds. School districts, once the money is freed up, could decide whether to spend it on construction projects. Administration officials say this could create a $400 million hole in the Sandoval budget plan.

The only opposition heard during a Friday meeting of the Assembly Government Affairs Committee came from Republican members John Ellison of Elko and Peter Livermore of Carson City.

Ellison said he feared this use of the money for construction “would create a big black hole” in the executive budget. Livermore said he would rather see the money used for teachers rather than construction.

Assemblywoman Marilyn Kirkpatrick, D-North Las Vegas, the chairwoman of the committee, said a vote could possibly be taken next week.

Joyce Haldeman of the Clark County School District, said the district gives “strong support” to the bill but that it probably wouldn't use the funds for 5-10 years.

Haldeman said this is “enabling legislation” and it would help rural school districts. In addition, voters approved these bond issues for school construction and that’s where the money should remain, she said.

In Clark County, one-third of schools are 40 years or older and there are $4.9 billion in needs for rehabilitation in the next 10 years, officials said.

Smith said Clark County is worried about reduced property tax valuations and a loss of revenue to county coffers. She said the school district wants to be sure it has the reserves needed to pay off the bonds if necessary.

The bill would allow school districts in Clark and Washoe counties to lower their backup reserve account to 25 percent of the money needed for paying off bonds. It would be lowered to 50 percent in rural counties.

The bill was introduced as a Democratic measure to allow more construction on schools and to put workers back on the job.

Support for the bill came from the Nevada Taxpayers Association, the Nevada State AFL-CIO, the Sheet Metal Workers Union of Southern Nevada, the Nevada Contractors Associations and a number of school representatives.