News

Chancellor says budget cuts threaten education system

By Benjamin Spillman
LAS VEGAS REVIEW-JOURNAL
Posted: Jan. 27, 2011 | 10:36 a.m.
Updated: Jan. 28, 2011 | 7:39 a.m.

CARSON CITY -- Nevada's colleges and universities face "staggering" cuts that threaten to undermine the state's beleaguered education system, Dan Klaich, chancellor of the Nevada System of Higher Education, told state legislators Thursday morning.

Klaich said a proposal by Gov. Brian Sandoval to cut state general fund money for higher education by $162.4 million, ratcheting revenue back to $395 million in 2013 and returning funding to 2003 levels despite a 30 percent increase in enrollment since then.

Klaich testified before the Legislative Commission's budget subcommittee to legislators seeking to understand the potential human and economic cost of enacting Sandoval's proposed $5.8 billion budget for the biennium, based on the governor's promise not to raise taxes.

For colleges and universities, slicing away another $162 million translates to a 73 percent tuition increase, 1,850 jobs, widespread elimination of academic programs and institutions, or some combination of those choices.

"I don't care how you do the math, these are staggering numbers" Klaich said.

The $162.4 million figure is the difference between current general fund support of $557.9 million in fiscal year 2011 for Nevada's eight colleges and universities and Sandoval's proposed general fund outlay of $334.7 million in 2013, plus another $60.8 million in property tax diversions from Washoe and Clark counties, which would go to University of Nevada, Reno and University of Nevada, Las Vegas or community colleges.

Klaich walked legislators through a 155-page document that detailed funding and enrollment trends and how the cuts might affect the quality of education.

The document highlighted proposed 5 percent pay cuts for employees, health insurance benefit reductions and the elimination of retirement health benefits for new workers.

During previous rounds of cuts, tenured faculty were protected from the imposition of furlough days. Last year the Board of Regents changed governing rules to make it possible to apply Sandoval's salary cuts across the board.

"Things like this severely impact our ability to recruit and retain the best faculty," Klaich said. Later, he added: "Our best, most entrepreneurial faculty are up for plucking right now."

Afterward, Sandoval senior advisor Dale Erquiaga said Klaich "glossed over" the property tax diversion, which he said represents the first time in Nevada history such a revenue stream has been dedicated to higher education.

Erquiaga said the property tax diversion coupled with Sandoval's proposal to give colleges and universities more autonomy to set tuition and fee rates and spending priorities will benefit the system over the long haul.

"For us the reform in education goes hand-in-hand with the unfortunate budget situation," Erquiaga said. "We recognize you just can't take that money out of the education system. You have to change the system as well."

Erquiaga said Sandoval would support the flexibility measures Klaich mentioned during the meeting such as giving the higher education system authority to transfer funds between accounts.

He disputed characterizations of the proposed cuts as evidence Sandoval is unwilling to invest in education as a means to improve the economy.

"We only have so much money," Erquiaga said. "To try to raise additional money through taxes will only make the economy worse. "

Senate Majority Leader Steven Horsford, D-Las Vegas, has vowed to fight against major education cuts Sandoval has proposed. "What would be the incentive for students in state or out of state to choose UNR or UNLV?" if such drastic cuts are imposed, he said.

After the meeting Horsford was asked whether the $5.8 billion in spending Sandoval proposed over the next two years was adequate to cover education and pay for the increased demand on social services.

"I don't believe that it is," Horsford said, suggesting higher taxes or some form of new revenue is in order. "What we can't do is expect improved results when you are gutting education at the level proposed by the governor."

Sen. Ben Kieckhefer, R-Reno, who is on the Education Committee worried about the grim picture Klaich painted.

"I'm worried we are not making the investment needed to ensure there are options for people who want to become well trained (members) of our new work force," he said.

Kieckhefer is considered a moderate and potentially one of three GOP senators who could help Horsford get the 14 votes needed for a tax increase. But Kieckhefer said he thinks there is enough existing revenue to support education.

Contact Benjamin Spillman at bspillman@review journal.com or 775-687-3900.

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  1. n7v.blogspot.com Jan. 28, 2011 | 5:56 p.m. Report Abuse

    The public sector is NOT supposed to be a place to get rich. That's what the *private* sector is for.

    NSHE, with its slew of $300K+/y bureaucrats and $400K-1M/y coaches is in actuality just another one of those crooked Democrat non-profits. The income (gross sales), which is donated in the expectation that it will reach those in need (the sales pitch), gets bled off by juicy perks and overhead, leaving little or nothing for the supposed beneficiaries.

    Nevadans should NOT be paying higher taxes to fund public charities where insiders get rich. Taxpayers might have *other* priorities for their money -- like making THEMSELVES rich.

  2. bghs1986 Jan. 28, 2011 | 1:52 p.m. Report Abuse

    @hdstmf ..."The people who really benefit from sports programs are the coaches, assistant coaches and their support staffs. Very few student athletes receive a useful education for the real world." Let's look at that for a second. Without even addressing the impact sports has on a university, let's just look at how UNLV's sports department has impacted Las Vegas. How about the impact of the UNLV wrestling program? This was the program that first brought Dennis Finfrock to UNLV as coach. This wrestling coach has been credited with bringing more than a billion dollars into the Southern Nevada economy. I would say that benefits far more that the a few coaches.

  3. n7v.blogspot.com Jan. 28, 2011 | 12:52 p.m. Report Abuse

    You probably feel a sense of moral outrage when you see a guy who begs for charity getting rich off the institution he represents. Think of Televangelists, United Way executives, and (closer to home) NSHE Officials.

    The guys who run NSHE -- or for that matter UMC, the state cancer institute or any other so-called benevolent society -- are supposed to be motivated by a sense of civic obligation, not personal enrichment.

    The new philanthropy.

  4. n7v.blogspot.com Jan. 28, 2011 | 12:26 p.m. Report Abuse

    I oppose BIG Government and the high taxes necessary to pay for it, However if the Legislature wants BIG public education (K-16) then so be it. The only fair way to pay for it is to charge tuition (user fees) to the students who attend. Why should 21 dealers pay higher sales taxes to subsidize a loafer who wants to study Sociology? Why should childless couples pay higher property taxes to subsidize someone else's kids' high school drama class? Charge CCSD parents $12,000/kid and UNLV liberal arts majors $800/credit.

    That "No new taxes!" pledge is for the birds. New taxes (user fees) to pay for BIG government is *absolutely* the way to go. No OLD taxes! New User Fees!

  5. CindyH Jan. 28, 2011 | 11:25 a.m. Report Abuse

    Here's a thought, kids. Boycott. Start with a one semester boycott -- across the country -- and, if that doesn't work, go for two semesters. Doesn't work? Go for three, four, etc. Look, you have a lifespan of 90 years so what is one or two years of your life doing something else until they fix the problem? Join the Peace Corps, strap on a backpack and visit Europe, Australia, etc. How about staying at home an extra year and doing community volunteer work? College can wait and you can gain by setting it aside for a short period of time. Parents? You have a say in this also if you are footing the bills.

  6. CindyH Jan. 28, 2011 | 11:08 a.m. Report Abuse

    August 7, 2009 LVRJ: (RE: UNLV President Smatresk) He'll earn a salary of $289,120 the first year and $246,426.84 the second year. He'll also get an annual allowance of $8,000 for a car, $18,000 for housing expenses and a $5,000 hosting account, as well as a supplement from the UNLV Foundation of $58,800 in the first year and $101,573.16 in the second year. And the 3rd, 4th, 5th, etc. year???? Update, please.

  7. hdstmf Jan. 28, 2011 | 9:57 a.m. Report Abuse

    College catalogs list what professor will be teaching a given course. Most of my graduate courses were actually "taught" by graduate students. The professors usually showed up for the first class and maybe the last. Beyond that they were rarely seen.

  8. hdstmf Jan. 28, 2011 | 9:44 a.m. Report Abuse

    The people who really benefit from sports programs are the coaches, assistant coaches and their support staffs. Very few student athletes receive a useful education for the real world. Well maybe a few who use the experience to pad their political resume. For instance Tarkanian's little boy.

  9. rascal Jan. 28, 2011 | 9:31 a.m. Report Abuse

    Governor Sandoval is absolutely right. When the students can't find part time jobs, raise the tuition. Gibbons, please come back we are sorry. The students will beoout in force at the Grant Sawyer Building, then maybe the gov will get the message.

  10. hdstmf Jan. 28, 2011 | 9:30 a.m. Report Abuse

    Clean out the UNLV (and other) Diversity Departments. Repace them with a supervisor and a couple of clerks. They would be so busy filling out paperwork demanded by state and federal agencies, they wouldn't have time to involved with such causes as the gay agenda.

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