LAS VEGAS (KTNV) — Gov. Joe Lombardo is calling on more state resources to address the ongoing budget issue in the Clark County School District.
Channel 13 has covered this situation extensively since the termination of CCSD's CFO Jason Goudie was suddenly announced last week.
On Friday morning, the governor sent a letter to State Senate Majority Leader Nicole Cannizzaro to request an audit of the district's budget.
Then on Friday afternoon, Lombardo called on the Nevada Department of Taxation's Executive Director, Shellie Hughes, to place CCSD's budget concerns on an agenda item for discussion and consideration during the next Committee on Local Government Finance meeting.
"I’m concerned that CCSD’s current budget issues will result in a budget shortfall for the school district. Reports are already surfacing about releasing teachers, eliminating staff positions, and funding reductions for resources at individual schools. Given last session’s unprecedented increase in funding for education, this scenario is wholly unacceptable," Gov. Lombardo said in his letter.
The call for more state resources from the governor's office also follows Nevada Department of Education Superintendent Jhone Ehbert's letter to CCSD demanding questions of accountability and updated budget information.
CCSD must provide the information to state officials by Oct. 3, 2024.
What can the Department of Taxation do in this situation?
The Nevada Department of Taxation is the chief organization in charge of collecting state revenue through taxes and fees.
A primary function of the Nevada Department of Taxation is to review budgets and audits of local governments. They also act as advisers to local governments on Budget Act compliance and financial management.
This is what Gov. Lombardo is calling on them to do.
In the governor's letter, he cited the Department's authority under Nevada statutes NRS 354.655 through NRS 354.725.
The first is merely a series of definitions outlying the context of the Department of Taxation's scope.
Under NRS 354.655, without limitation, the Department can provide local governments with technical financial assistance through budget development, contract reviews, cost allocation analysis, debt management, and analyses on feasibility and revenue forecasting.
Union leaders have already expressed to state officials that this kind of assistance is what the district needs and the problem goes deeper beyond Goudie's termination.
This statute also lists that a local government can be placed on a "fiscal watch." In severe cases, this would allow the Department to take over the management of the school district. However, certain conditions must be met.
Another authority given to the Department is the ability to create a severe financial emergency fund, but it would have to be repaid by the local government and follow strict conditions.
Gov. Lombardo has already stated he is evaluating multiple avenues to address CCSD's budget crisis — and the Department of Taxation is one such avenue.
CCSD has addressed they are experiencing budget issues, but an investigation to confirm a budget deficit is still underway.
Channel 13 will continue to provide updates as they are made available.
