Deadline on budget worries educators

The budgeting impasse paralyzing the Legislature has Clark County School District officials worrying about the worst-case scenario.

If the partisan divide isn't bridged by the July 1 start of the fiscal year, would the state's largest school system have to shut down, wondered School Board President Carolyn Edwards on Wednesday.

"I seriously doubt this Legislature can get it done by June 6," said Edwards, referring to the end of the regular session. "It puts us in some jeopardy. We need to be thinking about what our options are if we get to July 1 with no money."

Democratic legislators want a $7 billion state budget for 2011-13, which would include proposals to raise $571 million in new taxes and postponement of the June 30 expiration date on about $626 million in existing taxes. However, Republicans support a $6.1 billion budget proposed by GOP Gov. Brian Sandoval, who came into office promising to oppose tax and fee increases.

Neither side has the votes needed to make their proposals a reality.

At the board meeting, Super­intendent Dwight Jones assured Edwards that school staff members are "looking at those scenarios and certainly having those kinds of conversations."

Jones did not detail how the district would function without approved state funding, which accounts for a third of the district's operating budget.

Chief Financial Officer Jeff Weiler declined to discuss hypothetical situations after the School Board reluctantly and "under protest" passed a final budget for 2011-12 that includes a $407 million funding shortfall and requires 1,800 job cuts.

The budget will have to be revised later when a state budget is approved. However, the board had to pass a budget to meet a state deadline.

If the district honors its employee contracts, it would have to spend about $2.2 billion next year when it anticipates having only about $1.8 billion in funding. That compares to a current budget of $2.1 billion.

The 2011-12 budget also assumes that the district will get about $167 million in concessions from employee unions in the form of furlough days, pay-raise freezes and increased employee contributions to pension and health insurance costs.

An additional 2,500 employees would have to be laid off if no concessions are made by the four employee unions. Jones stressed that "substantial job losses and severe" consequences could occur after July 1 if the concessions are not granted.

About 500 support staffers are already getting notices that they will be laid off or "reduced in force" next year, said Bill Garis, the district's acting director of human resources.

Because of staffing reductions, about 1,000 teachers at this point do not have jobs for next year, but retirements and employee turnover are expected to mitigate that.

The district is largely reducing staff by raising class sizes by three students in the elementary grades and by two students in grades 6-12.

Because of improving economic conditions, district officials anticipate having an additional $69 million in state funding for next year.

That money was not formally included in the budget, because the numbers are still being verified.

The district's budget also assumes it will not take $90 million from the debt service fund to pay for operational expenses as Gov. Brian Sandoval has recommended.

That idea has proven unpopular with Democratic lawmakers, who hold the majority in both chambers of the Legislature.

If the governor's recommendation should become law, the $90 million would be used to offset the $407 million shortfall. The district has made rolling back class-size increases its top priority should additional revenues become available.

The district might also get $35 million from a room tax that is being diverted into the state's general operating budget and an additional $85 million from a local sales support tax if the Legislature is able to extend it past July 1, when it is scheduled to sunset.

School Board member Erin Cranor thought it was "poetic" that the $90 million from the district's debt service fund is roughly equal to the amount of revenue generated by the local schools support tax, should that be kept at its current rate of 2.6 percent.

The tax, however, is scheduled to go back to 2.25 percent on July 1.

While the governor has taken a firm stand against tax increases, Cranor argues that a current tax isn't an increase.

"My personal opinion is that it doesn't feel like a tax increase," Cranor said.

School Board member John Cole urged the public to chastise lawmakers for not reaching an accord.

Ruben Murillo, president of the Clark County Education Association, which represents district teachers, compared the budget battle to Cher's retirement tour: "It keeps going on and on."

Contact reporter James Haug at jhaug@reviewjournal.com or 702-374-7917.

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Comments

Note: Comments made by reporters and editors of the Las Vegas Review-Journal are presented with a yellow background.

1. overhere May 20, 2011 | 5:11 p.m. Report Abuse

   I think this will be the time that this state will be sued for NOT funding education. Jones, you will not succeed because it is the teachers who are the front lines. My sister has said many times that there are many administrators in the district and making over 100k per year. IS THIS TRUE JONES? Stop the money going to people who don't work with kids.

2. Slam Dunk May 19, 2011 | 8:58 p.m. Report Abuse

   Superintendent Jones is Sandoval's boy. He wants teachers to take paycuts, so he does not have to do his job. Bad news Jones, no one is taking paycuts and so start working buddy. Try arbitration and the teachers might get more than are being paid now. How about more cuts Mr. Jones? See how that will play.

3. Bob_Realist May 19, 2011 | 11:45 a.m. Report Abuse

   Amen Honestly. The LVRJ hasn't been given permission by the CCSD to describe the two as totally different entities which is why we got a headline about educators that didn't interview any educators. This is just another reason why the educators are so worried, the LSM seems to think the CCSD is about education when it has proven time and time again CCSD will fire educators and hire non educators at four times the cost. They even hire unqualified personnel and pay them six figures. I wonder what the tax break was for CCSD hiring two minorities to the top posts in CCSD because of their race and not their credentials. Apparently it's worth more to the school board than our kid's education, that's for sure.

4. Honestly May 19, 2011 | 9:52 a.m. Report Abuse

   I'm confused by the headline. I read the whole article and did not see any "Educators". I saw bureaucratic Administrators and elected officials, none of whom educate students. And then there was the hapless Union leader who wants to make jokes about a situation that is likely to crush his members. Write another article when you actually talk to the educators.

5. Mac May 19, 2011 | 8:14 a.m. Report Abuse

   Boo hoo. I feel SO sorry for them.

6. Bob_Realist May 19, 2011 | 7:05 a.m. Report Abuse

   He rarely comes out from under his desk but when he does he provides us this, Dwight Jones assured Edwards that school staff members are "looking at those scenarios and certainly having those kinds of conversations."
   
   All talk and no action Jones assured the person who allows him to speak, and hired him, that the school staff are talking about it. I guess the administration at CCSD is waiting for the conversation to end before they start "talking" about it. Just like the President of the United States, nothing like waiting for the deadline to pass, wait a little while longer and then make a decision. I wonder if they are related. The school board, sadly, will have to make the decisions for Sir Jones because when they hired him they knew he would keep quiet as long as he received his status symbols and didn't need to live near the children.