We've been following the Washoe County School District's budget struggle, as officials work to fill a $30 million deficit for the next fiscal year.
Superintendent Traci Davis and District Chief Financial Officer Tom Ciesynski came on this week's Face the State to explain the situation.
Both said it's not an easy fix, and it's also not a new issue. The district has been dealing with a deficit every year since the recession, and has been filling the gap using savings. Now, the savings are gone, so they're looking to other options, and that is provoking some negative feedback from the public.
When asked for a response to those who say depleting the savings account is irresponsible, Davis responded, "Well, my answer to that is, well, that would be a question we might [ask] because we weren't here a long time ago when they started using the savings account."
Increasing class sizes, cutting administrative costs, and changing transportation options are all on the table to balance the budget.
Why is there a deficit in the first place in a growing economy? The district is funded predominately from sales and property taxes. Those revenues logically go up when the economy is healthy, but that doesn't mean more funding for the district.
It turns out, the district gets the same amount of money regardless of how well the economy is doing. School districts in Nevada get a designated per-pupil amount of funding. Sales and property taxes make up the bulk of that funding, and then the state fills in the rest to get the total up to the cap. If local sales and property taxes go up, the part of the budget that comes from the state just goes down, thereby guaranteeing a stable amount of funding in a bad economy, but also limiting funding in a growing one.
"You would think, just as you stated, if sales taxes are coming in better, that's going to help us," Ciesynski said, "but the way the state per-pupil funding works for all 17 counties in Nevada, increased sales taxes just reduces the state's responsibility. So that doesn't help our situation."
The district is hoping to change that policy in the legislature. WCSD is asking for an increase in the per-pupil funding. If that gets denied, then WCSD is asking for the option to increase class sizes in grades 1-3, or for loosened restrictions on categorical funding earmarked for specific programs.
WCSD can't use the funding generated from the ballot question WC1 to close the deficit, since that is earmarked for capital improvements, like school buildings. It also can't use the categorical funding provided during the 2015 legislative session, since that is earmarked for specific programs, like Special Education or English Language Learners.
The district's largest expense is teacher salaries, but at this point in time, Davis said they are not considering any layoffs.
To see the full interview, tune in for Face the State. It airs Saturday at 4:30 a.m. and 4:30 p.m., and on Sunday at 6:30 a.m. and 4:30 p.m.
Episodes are also posted here after they air.
