LAS VEGAS (KTNV) — News of the termination of the Clark County School District's chief financial officer provoked calls for further accountability from the union that represents the district's educators.
I would like to provide an update on recent challenges related to the release of school strategic budgets and apologize for any confusion and time taken away from supporting students and staff. A potential central budget deficit was identified during the district’s regularly scheduled accounting year-end close-out process, which typically concludes by mid-October. Although progress has been made, we are still unable to confirm whether a central budget deficit exists. As a team, we will make every attempt to absorb any confirmed deficit centrally with minimal impact to students and staff
School strategic budgets were delayed, allowing time for confirmation, impact analysis, and corrected allocation calculations. Schools experienced changes to their strategic budgets due to enrollment changes and salary increases, including an approximate $5,700 increase to the average salary of licensed employees that was not reflected in the increases included in the Spring 2024 strategic budget allocation. Nevada state law prohibits the District from holding or directing schools’ carry forward funds. WE have consistently communicated with principals who cannot absorb the changes that every effort will be made to provide assistance to those schools.
As we continue to analyze the budget systems and processes, we are actively working to identify and resolve all issues as quickly as possible. Meanwhile, District leadership continues working closely with principals, including principal meetings with me today, September 20, 2024. I remain committed to ensuring the stability and management of the systems to provide support to schools during their budgeting process.
Speaking to members of the press on Friday morning, the Clark County Education Association argued the district should not be allowed to make now-former CFO Jason Goudie a "scapegoat" for what union leaders say is a much larger problem.
Watch: Teachers' union asks CCSD not to pass on budget error to teachers and students:
The school district shared news of Goudie's departure just before 6:30 p.m. on Thursday with a statement noting he "no longer serves" as the deputy superintendent of business administration and chief financial officer.
"The District remains committed to ensuring the stability and management of its finances," officials wrote in part. "Immediate efforts will focus on increasing collaboration, communication, and effective systems to provide support to schools during their budgeting process."
In the interim, Goudie has been replaced by deputy chief financial officer Diane Bartholomew, officials noted.
The district did not cite any reason for Goudie's departure. Union leaders argued it stemmed from "a significant problem" around the district's budget.
What was the issue?
According to CCEA executive director John Vellardita, Goudie failed to account for a second year of teacher salary increases as agreed upon in contract negotiations between CCSD and the union in December.
What that ultimately meant, Vellardita says, is the budget that made its way down to individual principals and schools "was wrong."
In a statement released Friday evening, Interim Superintendent Brenda Larsen-Mitchell confirmed "a potential central budget deficit" had been identified.
"Although progress has been made, we are still unable to confirm whether a central budget deficit exists," Larsen-Mitchell wrote.
Union leaders are pressing the district to not pass on the burden of accounting for that lack of accounting to individual schools, students, teachers or staff. Vellardita argued the school district has the money to make up for the mistake.
"Had this not come to light, what we would have seen is the district's effort to cover up this problem by having schools try to make ends meet," Vellardita said, adding that "there is not a school we've heard from where it doesn't mean reduction in staff and larger class sizes."
In her statement to school staff, Larsen-Mitchell said "we will make every attempt to absorb any confirmed deficit centrally with minimal impact to students and staff."
"We have consistently communicated with principals who cannot absorb the changes that every effort will be made to provide assistance to those schools," she added.
What happens next?
"We think the problem goes deeper than what we have seen," Vellardita said, calling out by name the current interim superintendent, Larsen-Mitchell, and Evelyn Garcia-Morales, president of the CCSD Board of School Trustees.
Vellardita cited a number of previous reports, including reporting by Channel 13 chief investigator Darcy Spears, as evidence of what he characterized as a "systemic problem of incompetence and mismanagement that's going on in CCSD."
He also raised the recent issue of Katie Williams' resignation from the Board of Trustees after an investigation found she no longer lived in Nevada. (That's according to a court filing obtained by Channel 13 last week.)
"Every parent that's out there that has students in these schools should be asking, how did this happen?" Vellardita said. "We encourage every parent to contact not just their trustees, but to make very loud and clear their concern over this situation."
CCEA took its concerns to Gov. Joe Lombardo to ask for his support of "an intervention," Vellardita said, up to and including more oversight of the nation's fifth-largest school district and "an investigation as to how deep does this problem go."
In a statement to Channel 13 on Friday afternoon, the governor's spokesperson wrote that Lombardo is "concerned by the recent operational and fiscal issues" within CCSD and its Board of Trustees.
"To address these concerns, Governor Lombardo will use all of the state's authority to investigate the school district's budget and help determine corrective next steps," his spokesperson stated.
For her part, Larsen-Mitchell says the district is working to resolve all issues as quickly as possible as it continues to analyze its budget, adding that she met with principals on Friday to discuss address their concerns.
"I remain committed to ensuring the stability and management of the systems to provide support to schools during their budgeting process," she wrote.
