With the news from the Economic Forum, it’s a Rainy Day once again. However, Nevada has the resources to stop education cuts and to Pass the Plan offered by the Commission on School Funding.
The Economic Forum found Nevada’s economy has been heavily impacted both by the trade war as well as the immigrant detentions and hostilities toward other nations. The meeting resulted in a $191M reduction in projected General Fund revenue for upcoming biennium, along with a $160M reduction to the State Education Fund. While this is very bad news, the Economic Forum was optimistic that there would be a resolution to the trade crisis this summer, and revenues would begin to increase in FY27.
Meanwhile, Nevada is sitting on over $2 billion in reserves. These funds can and should be used to backfill any cuts resulting from decreased revenues. The Education Stabilization Account can be used to backfill cuts and cover increases called for in the Plan from the Commission on School Funding. The Commission calls for a $604M increase in education funding for the upcoming biennium to continue the work from last session to improve our schools. In addition to the shortfall projected for the Education Fund, the legislature should move $764M from the Education Stabilization Account to the Education Fund for the upcoming biennium. NSEA believe this is the most responsible budget action that could be taken, as those funds are intended for just this purpose.
Even after record increases to education funding last session, Nevada still trails the national average by more than $4000 per student. The Governor’s proposal of just $2 per student would mean education in Nevada would fall back to where we were before last session. Given inflation, rising costs, and a 3.5% PERS increase coming in July, Gov rec will mean difficult cuts for Nevada schools.
Since launching our Pass the Plan campaign, NSEA has championed the $604 million investment recommended by the Commission for the upcoming biennium along with addressing Nevada’s revenue structure for the future. This means passing long-term revenue solutions starting this session, including AJR1 and AB453. Without bold action this Session, Nevada will fall further behind in its responsibility to adequately fund public education. This was corroborated by Commission Chair Guy Hobbs in The Nevada Independent on Sunday. He said without these changes, he doesn’t see the state meeting the commission’s 10-year funding plan. "There probably needs to be some attention given to the way that we generate revenue in the state if we're going to be able to make a meaningful impact on education funding," Hobbs said.
It’s easy to do the right thing when times are good. The question of commitment to Nevada’s schools is best answered when things are more difficult. It’s once again a Rainy Day in Nevada. The Legislature must be prepared to use those reserves to maintain momentum and keep Nevada on track and ensure the best possible education for Nevada students.
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