More education money found

Senate Minority Leader Dina Titus said today that an unexpected $12 million windfall in sales tax revenue to the public schools will allow for an increase in teacher pay in the first year of the budget to cover increases in retirement contributions.

Teacher raises in the first year will hit 2.375 percent instead of just 2 percent.

The money will flow to the schools budget because one of the projects originally thought to be included in the sales tax exemption for green building construction, the Fontainebleau project on the Strip, will not qualify for the benefit under the new green measure on its way to approval this session. The revised green construction tax break takes away the sales tax benefit for all but a few projects. The Fontainebleau was originally thought to be one of those that would continue to receive the exemption.

But Titus said legislative fiscal staff have determined that the project will not be eligible. As a result, sales taxes that would not have been collected on the project will now flow to the schools, she said.

Senate Democrats proposed using the money for teacher raises, and Republicans are supporting the idea, Titus said.

The additional money for teachers makes the proposed public schools funding measure, expected to be introduced in the Assembly on Thursday, much more palatable to Senate Democrats, who Tuesday balked at the education funding deal.

"Senate Democrats now feel good about not signing off on the deal," Titus said. "We kept saying we should look for more money for public education."