CCSD’s projected budget shortfall targeted by Nevada lawmakers

Nevada Gov. Joe Lombardo, left, stands next to Nevada State Senate Majority Leader Nicole Canni ...

Nevada lawmakers will explore the Clark County School District’s potential budget shortfall despite “record” public funding.

The possible deficit to the central budget — recently estimated at roughly $11 million — was nearly half of the $20 million that district officials projected in September.

Gov. Joe Lombardo had called on the Nevada Legislature to expand an ongoing performance audit of CCSD to include the potential shortfall, examine how the district allocates funding to individual schools and determine how those processes might have broken down.

Additionally, the governor asked the Nevada Department of Taxation to evaluate the budget crisis.

Senate Majority Leader Nicole Cannizzaro and Assembly Speaker Steve Yeager responded to Lombardo in a letter of their own Monday.

The lawmakers noted that the audit might not be completed until after the 2025 legislative session wraps up.

“While we appreciate the Governor’s interest in the on-going audit, we think it is unwise to wait so long to seek answers as to why, despite record State funding, the Clark County School District seemingly found itself surprised by an unforeseen budget deficit for the 2024-2025 academic year,” the letter said.

The letter announced that a mid-December Interim Finance Committee’s Subcommittee on Education Accountability will conduct a public hearing on the issue.

“This hearing will both provide a public accounting and assist us in identifying potential solutions for consideration in the 2025 Legislative Session that would prevent future recurrences of significant financial issues within the Clark County School District,” the letter said.

CCSD wrote that it welcomes the inquiry.

“Our budgeting process review and refinement continues, and our findings and adjustments will be shared publicly,” a statement said. “We remain steadfast in ensuring the public’s trust in our financial management and continuing to report our finances transparently.”

Also on Monday, the district released a lengthy response from Interim Superintendent Brenda Larsen-Mitchell to a budgetary inquiry made by Jhone Ebert, superintendent of public instruction with the Nevada Department of Education.

Ebert had asked for “all policies and procedures, assumptions, and methodologies used by CCSD in handling new information received” after Jan. 15, the deadline CCSD has to send schools estimates of the dollars they will receive for the next school year.

“Based on current information and understanding, the District does not have processes and procedures to adequately manage new information received after January 15,” Larsen-Mitchell wrote. “As the District works collaboratively with District leaders and principals, these processes and procedures will be developed and implemented.”

CCSD blamed the central budget shortfall of $10.9 million on costs related to cybersecurity and litigation.

Larsen-Mitchell said the district had blown past its $30 million earmarked for litigation, going $23 million over. The district also had spent nearly $15 million on cybersecurity costs for a data breach a year ago, she said.

Interim Financial Officer Diane Bartholomew said earlier this month that the budget was still being developed and the number could change.

Separate from the potential central budget deficit, the district learned that its administrators had not accounted for 8 percent negotiated salary increases for licensed professionals in its budget, leaving many schools with operating budgets higher than their budgets allowed. Schools have had to adjust their budgets, leading to cuts to staff, programming and supplies, according to a presentation.

Cannizzaro and Yeager said CCSD administrators would be invited to the public hearing.

“The issue is affecting students, families, teachers, and staff now, and it demands more immediate answers,” their letter said.

Contact Ricardo Torres-Cortez at rtorres@reviewjournal.com.

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