Press Release: Public Schools Shouldn't Be Used to Sell More Data Centers

This is not a pro-public education executive order. Public education is being used to provide political cover for a data-center growth policy. Governor Lombardo should stop inventing data-center-dependent approaches to school funding.

Nevada educators are not asking for more data centers with better branding. Nevadans are raising serious concerns about the industry’s impact on our water, power grid, utility bills, and communities. They are also concerned about continued cuts to public education while hundreds of millions in revenue have been lost through data center tax abatements approved by Governor Lombardo’s administration. Nearly 60% of Nevada voters oppose data centers being built in or near their communities.

While the order stops abating the Local School Support Tax for new and pending applications, that is less than a half measure. Data centers can still qualify for other tax abatements, including personal property tax abatements of up to 75 percent. And the order does nothing to address previously approved agreements or the hundreds of millions in public revenue Nevada has already lost through data center tax breaks. At a time of drastic cuts to public education, continuing to give away hundreds of millions in desperately needed revenue harms Nevada’s students.

Attorney General Aaron Ford has proposed a much simpler approach: stop new data center tax abatements and review the tax breaks already on the books. If state leaders want data centers to support public education, end all abatements and make them pay their fair share.

Nevada already has a roadmap to optimally fund our public schools through the Commission on School Funding. The Commission has identified property and sales tax reform as the primary revenue sources capable of moving Nevada toward optimal funding. These reforms can be supplemented by the elimination of data center abatements. Instead of throwing another data center scheme at the wall and hoping it will stick, state leaders should follow the roadmap Nevada already has.

Seriously, Pass the Plan.