FUNDAMENTAL ISSUES WITH K-12 FUNDING IN NEVADA

FUNDAMENTAL ISSUES WITH K-12 FUNDING IN NEVADA NOVEMBER 16, 2018 Nevada Association FUNDAMENTAL of School Boards ISSUES WITH K-12 FUNDING IN NEVADA 1 2 3 4 The Education Funding System Pits Students Against Teachers, Benefiting Neither Property Tax Abatements are Disparately Impacting K-12 School Funding Weighed Student Funding Absent Adequate System Funding, Simply Takes Money From Regular Students The Nevada Plan is Designed to Limit the Transparency of Education Funding 1

1 2 3 4 The Education Funding System Pits Students Against Teachers, Benefiting Neither Property Tax Abatements are Disparately Impacting K-12 School Funding Weighed Student Funding Absent Adequate System Funding, Simply Takes Money From Regular Students The Nevada Plan is Designed to Limit the Transparency of Education Funding Nevada State Legislature Passes a Biennial Budget K-12 Funds Are Distributed to the 17 School Districts Each District Negotiates with Unions Pursuant to NRS 288 2

Nevada Revise Statutes 288 Relations Between Governments and Public Employees If the parties to a negotiation pursuant to this section have failed to reach an agreement after at least eight sessions of negotiation, either party may declare the negotiations to be at an impasse 3

A determination of the financial ability of a school district must be based on: (a)all existing available revenues as established by the school district and within the limitations set forth in NRS 354.6241, with due regard for the obligation of the school district to provide an education to the children residing within the district. Average Teacher Salaries $90,000 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 U.S. Average $58,353 $56,943 $0 SD MS OK WV ID CO NM AZ KS NC MO TN AR AL SC FL LA ND ME IN VA MT NE TX KY WA WI GA IA OH NH UT MN NV HI WY VT DE OR IL MI PA RI MD AK NJ CT MA CA NY Source: National Education Association 4

Teacher-Student Ratios 30 25 20 15 U.S. Average 15.9 10 5 0 VT NJ ME ND MO WY NH VA NY CT NE MA AK SD MT KS IA WV TN MD PA RI DE MN WI TX SC AR NC MS NM GA AL OH LA FL OK CO IL HI KY IN MI WA ID OR CA UT AZ NV Source: National Education Association Average Teacher Pay per Pupil $7,000 $6,000 $5,000 $4,000 U.S. Average $3,670 $3,000 $2,000 $1,000 $0 AZ NV ID UT MS OK CO WA IN OR SD NM AL FL KY LA NC AR WV SC TN KS TX HI CA GA OH MI WI MT IL MN IA MO DE NE VA ND ME RI PA NH MD WY AK VT CT NJ MA NY Source: National Education Association 5

1 2 3 4 The Education Funding System Pits Students Against Teachers, Benefiting Neither Property Tax Abatements are Disparately Impacting K-12 School Funding Weighed Student Funding Absent Adequate System Funding, Simply Takes Money From Regular Students The Nevada Plan is Designed to Limit the Transparency of Education Funding Total Property Tax Collections Clark County Billions $3.0 $2.5 $2.0 $1.5 $1.0 $0.5 $0.0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Source: Nevada Department of Taxation Redbook 6

Total Property Tax Collections Clark County Billions $3.0 $2.5 1.2 1 $2.0 $1.5 $1.0 $1.32 $1.51 $1.38 $1.09 $1.00 $0.91 $0.89 $0.95 $0.99 $1.00 $1.05 0.8 0.6 0.4 $0.5 $0.97 $1.05 $1.02 $0.81 $0.74 $0.69 $0.69 $0.72 $0.75 $0.78 $0.80 0.2 $0.0 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 CCSD Property Tax Revenue Property Tax to Other Entities Source: Nevada Department of Taxation Redbook, Clark County School District Total Property Tax Collections CCSD Billions CCSD Students by Year 308,554 311,039 309,335 309,749 308,237 311,029 314,636 318,040 319,712 320,523 323,380 $1.2 $1.0 $0.8 1.2 1 0.8 $0.6 $0.4 $0.97 $1.05 $1.02 $0.81 $0.74 $0.69 $0.69 $0.72 $0.75 $0.78 $0.80 0.6 0.4 $0.2 0.2 $0.0 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 CCSD Property Tax Revenue Source: Nevada Department of Taxation Redbook, Clark County School District 7

Total Property Tax Collections CCSD Billions CCSD Students by Year 308,554 311,039 309,335 309,749 308,237 311,029 314,636 318,040 319,712 320,523 323,380 $1.2 $1.0 325000 320000 $0.8 315000 $0.6 $0.4 $0.97 $1.05 $1.02 $0.81 $0.74 $0.69 $0.69 $0.72 $0.75 $0.78 $0.80 310000 $0.2 305000 $0.0 300000 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 CCSD Property Tax Revenue CCSD Students Source: Nevada Department of Taxation Redbook, Clark County School District Property Taxes per Student CCSD $4,500 $4,000 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0 $3,145 $3,376 $3,296 $2,605 CCSD Students by Year 308,554 311,039 309,335 309,749 308,237 311,029 314,636 318,040 319,712 320,523 323,380 $2,391 $2,214 $2,200 $2,256 $2,356 $2,421 $2,470 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Source: Nevada Department of Taxation Redbook, Clark County School District 8

Property Taxes per Student CCSD Adjusted for Inflation (2018 Dollars) $4,500 $4,000 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0 $3,647 $3,772 $2,890 CCSD Students by Year 308,554 311,039 309,335 309,749 308,237 311,029 314,636 318,040 319,712 320,523 323,380 $2,599 $2,372 $2,320 $2,376 $2,450 $2,465 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Source: Nevada Department of Taxation Redbook, Clark County School District Property Taxes per Student CCSD Adjusted for Inflation (2018 Dollars) $4,500 $4,000 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0 $3,647 $3,772 $2,890 CCSD Students by Year 308,554 311,039 309,335 309,749 308,237 311,029 314,636 318,040 319,712 320,523 323,380 $2,599-37.1% $2,372 $2,320 $2,376 $2,450 $2,465 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Source: Nevada Department of Taxation Redbook, Clark County School District 9

Property Tax Abatements Clark County Billions $2.5 $2.0 Property Tax Abatements $4.6 Billion Since 2008 $1.5 $0.92 $1.0 $0.41 $0.09 $0.06 $0.06 $0.11 $0.28 $0.43 $0.56 $0.62 $0.5 $1.05 $1.02 $0.81 $0.74 $0.69 $0.69 $0.72 $0.75 $0.78 $0.80 $0.0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 CCSD Property Tax Revenue Total Abatements Source: Nevada Department of Taxation Redbook 1 2 3 4 The Education Funding System Pits Students Against Teachers, Benefiting Neither Property Tax Abatements are Disparately Impacting K-12 School Funding Weighed Student Funding Absent Adequate System Funding, Simply Takes Money From Regular Students The Nevada Plan is Designed to Limit the Transparency of Education Funding 10

Spending Per Pupil Elementary Schools Per-Pupil Funding Difference from Average +25% or More +15% to +25% +5% to +15% -5% to +5% -15% to -5% -15% or Less Bozarth ES W. Williams ES Average CCSD Elementary School $9,382 Least-Funded: Bozarth ES $6,817 Major Highways Most-Funded: Wendell Williams ES* $16,735 * Excluding rural CCSD schools Source: Nevada ReportCard, Applied Analysis Spending Per Pupil Middle Schools Per-Pupil Funding Difference from Average +15% or More +8% to +15% +3% to +8% -3% to +3% -8% to -3% -8% or Less Major Highways * Excluding rural CCSD schools Canarelli MS Orr MS Average CCSD Middle School $6,956 Least-Funded: Canarelli MS $5,795 Most-Funded: Orr MS* $9,090 Source: Nevada ReportCard, Applied Analysis 11

Spending Per Pupil High Schools Per-Pupil Funding Difference from Average +10% or More +4% to +10% 0% to +4% -4% to 0% -10% to -4% -10% or Less Major Highways * Excluding rural CCSD schools Valley HS Coronado HS Average CCSD High School $6,820 Least-Funded: Coronado HS $5,660 Most-Funded: Valley HS* $7,474 Source: Nevada ReportCard, Applied Analysis 1 2 3 4 The Education Funding System Pits Students Against Teachers, Benefiting Neither Property Tax Abatements are Disparately Impacting K-12 School Funding Weighed Student Funding Absent Adequate System Funding, Simply Takes Money From Regular Students The Nevada Plan is Designed to Limit the Transparency of Education Funding 12

Total Public K-12 Operating Expenditures Projected Outside Local Revenue Guaranteed Regular Basic Support Guaranteed Regular Basic Support Cost of Additional/ Special Programs Total Required Support 13

Total Required Support Projected Inside Local Revenue Total State Share Total State Share Misc. State Revenue State General Fund Obligation 14

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State General Fund as a Percentage of Education Funding 50% 45% 40% 35% 36.6% 30% 25% 20% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Source: Legislative Counsel Bureau Fiscal Analysis Division 17

Education Expenditures as a Percentage of Total General Fund Expenditures 40% 38% 36% 34% 32% 30% 28% 26% 24% 22% 20% 37.8% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Source: Legislative Counsel Bureau Fiscal Analysis Division 29.1% FUNDAMENTAL ISSUES WITH K-12 FUNDING IN NEVADA NOVEMBER 16, 2018 Nevada Association FUNDAMENTAL of School Boards ISSUES WITH K-12 FUNDING IN NEVADA 18