LAS VEGAS (KTNV) — The Clark County School District provided an update on the budget shortfall during Thursday's board meeting.
While the focus was supposed to be the budget issues, a heated discussion between Board President Evelyn Garcia-Morales and Trustee Isaac Barrón took center stage.
During the meeting, Barrón wanted to get clarity on how the possible central budget deficit went from $20 million to $10 million.
"We are still today closing out FY24... We are still, you know, adjusting POs, we are still putting expenses where we need them. We are always updating and refining the books, right," said Deputy Chief Financial Officer Diane Bartholomew before being cut off by Trustee Barrón.
"But I haven't heard an answer yet," said Barrón.
"I am trying to explain to you, sir," said Bartholomew.
"I expect that this conversation takes place in a respectful tone and manner," said Board President Garcia Morales, who stepped in while Barthalomew was providing her response. "You[Barrón] won't hijack this board meeting, okay. There's still a lot of work to be done."
A few minutes later, Barrón once again tries to get clarity into the emended potential central budget deficit.
He asks district leaders why they are not showing their work.
"There was supplemental information that was provided to us at the last board meeting, and this was simply an update," said Garcia Morales.
"Answer the question, please," responded Barrón.
"And I am also answering it for you," said Garcia Morales.
"No, I am asking the staff. This is not a question I am asking the board president," said Barrón. "This is a question that I am asking to staff."
"I am not answering them. I am reminding you that you are here—," said Garcia Morales.
"Are you going to let them answer or are you not," said Barrón.
CCSD said it is facing two separate budgetary challenges.
One of the issues at hand is at the district level, and the other budget dilemma is at the school level.
According to school officials, no school budgets were impacted by the potential deficit at the district level.
Interim Larsen-Mitchell said the potential budget deficit at the district level is due to unanticipated expenses related to litigation and cybersecurity.
She said the district plans to use the "ending fund balance" to absorb the potential central budget deficit. The ending fund balance is money left over after the district pays all its bills.
"We are looking at absorbing that centrally using the unassigned ending fund balance. And we also working collaboratively with chiefs to review some things that we are able to cut centrally. Again, avoiding any impact to schools," said Larsen-Mitchell.
The district said that the inaccurate calculations of At-Risk funding caused the budgetary issues at the school level. .At-risk funding is extra money schools get from the state for Special Ed students or kids who just need extra help meeting academic standards.
"The potential central budget deficit did not in any way impact what was allocated to school nor what it is costing school to purchase positions or services. Plain and simple. What they are experiencing is the result of the incorrect allocation of At- Risk funds in the spring. In some cases, schools budget an amount of money they should not have been allocated. They were, in some cases, over-allocated in January. That number was trued up in the fall, so they are experiencing that as a budget cut, for sure, but the reality is those dollars should not have been allocated in the first place," said a CCSD official.
Many schools have eliminated vacant positions or reduced extra contracted hours, and some schools have eliminated filled positions due to school-level budget issues. Employees in eliminated positions will participate in surplus processes according to the aligned bargaining agreement.
District leaders said 36 licensed professionals and 41 support staff will be reassigned through the surplus process due to budget adjustments in the normal strategic budget process. This is the second-lowest number of licensed professionals in the surplus process in the past 10 years, according to the presentation.
CCSD said they are looking at what process silos they could set up that could help prevent this from happening again.
The district is also getting help from different organizations including a subcommittee created Wednesday after CCSD met with the department of taxation to help them with their budget.
"We shared information and had discussions with the committee yesterday, on October 23. The committee offered the support of a subcommittee," said Interim Superintendent Brenda Larsen Mitchell.
Last week, the Nevada Department of Education sent a letter to CCSD to show their work in determining and mitigating budgetary shortfalls amid district issues. On Monday, the school district responded and according to the CCSD interim superintendent, Dr. Brend Larsen-Mitchell, these mistakes were preventable.
According to Dr. Larsen-Mitchell, all of these budget issues are due to two "root causes" in the district she labeled as "insufficient process documentation and communication" and "organizational and process silos."
A handful of community members also shared their frustrations over the budget issues.
"I just sat there for an hour and 45 minutes listening to something we never got answer on," said the community member. "Barrón asked a question that never got answered— that's an embarrassment.
"I am speaking tonight about this budget crisis our district has been facing. Since there was budget shortfall reported last month, the public, state lawmakers,and governor have been asking the same question: how did this happen? How id this happened when we have received more funding than in the history of this district. When pressed for answers by the department of Education, state lawmakers, or the governor, CCSD has listed off a number of reasons. Whether it's a miscalculation of At-risk funds, they didn't project accurately the new cost of educators, over spent on legal fees or cybersecurity issues, but what has been absent in all this discourse is the cause. What caused these miscalculations? It comes down to mismanagement," said a representative from CCEA.
