CCSD’s budget projects $37.8M decline in operating revenue

The Clark County School District is projecting a $37.8 million decline in operating revenue as a result of the COVID-19 crisis, according to a 2020-21 budget blueprint set to be presented to the school board Monday.

The budget estimates a $130 million drop in local sales tax revenue used to fund schools — a figure derived in part by applying recession-era losses of 11.5 percent to Nevada Department of Taxation revenue projections issued before the COVID-19 state of emergency. The district also expects a 10 percent reduction in governmental services tax revenue levied on vehicle registration, or about $8.6 million.

The district expects the impact of those shortfalls to be offset in part by increases in funding from the state’s Distributive School Account of about $82 million, as well as increased revenue from property taxes of about $19 million, according to the budget presentation.

All told, the presentation shows the district’s total operating revenue declining from the $2,482,888,000 estimated in the tentative budget to $2,445,108,000 in the current budget.

Superintendent Jesus Jara said at a town hall Tuesday that the district has not yet heard from the Nevada Department of Education on how much spending it will be asked to cut. Gov. Steve Sisolak last month told state agencies to prepare for 4 percent to 14 percent cuts over the next two years.

“At this point, we’re looking at individual schools that have done their strategic budget, but not as an entire district for next year,” Jara said in response to a question about the budget.

Nevada’s colleges and universities approved a budget-reduction plan last month that would see $124 million in cuts in a worst-case scenario.

Budgeting amid confusion

Kenneth Retzl, director of education policy at the nonprofit Guinn Center for Policy Priorities, said there’s still lots of uncertainty surrounding the state budget.

The Distributive School Account, the education funding mechanism in Nevada that functions in tandem with local taxes to provide a baseline amount to public schools, is targeted for $104.8 million in reductions, according to a Guinn Center policy brief. However, it states that the Department of Education is facing the smallest percent decrease of all departments at 5.6 percent.

Asked whether it’s possible that the Legislature would reduce the state’s contribution to the so-called basic support guarantee, Retzl noted that a special session of the Legislature did just that in 2008, reducing the Distributive School Account by 4.4 percent.

“It is possible (and history suggests) that we could see a relatively immediate term budget impact from COVID-19, as well as one that plays out for several years — depending on how severely the economy is impacted and for how long,” Retzl said by email. “However, it is also worth noting that there is a significant amount of uncertainty surrounding the budget currently — the governor has recommended budget cuts that could affect education — but we will have to see to what extent they are operationalized.”

The district is also counting on federal Coronavirus Aid, Relief, and Economic Security Act funding, though district representatives did not reply to a question about how much CCSD is expected to receive and whether any of that funding has already been distributed. Overall, Nevada is set to receive approximately $117 million for its K-12 schools from the CARES Act.

District representatives likewise did not respond to a request for more information on the budget presentation.

CCSD will present its budget Monday, with an amended final budget due in December that takes into account actual revenue and appropriations.

Contact Aleksandra Appleton at 702-383-0218 or aappleton@reviewjournal.com. Follow @aleksappleton on Twitter.