CCSD lowers potential budget deficit estimate to $12M

The Clark County School District has reduced the projection of its potential budget deficit from $20 million to $12 million, according to an agenda item for Thursday’s board meeting.

Previously, the district had projected a $20 million central budget deficit. Also on the board’s agenda is the possible approval of a $50,000 audit from the Council of the Great City Schools, an outside group that has conducted reviews of other large school districts in the past. Gov. Joe Lombardo has already called on the Legislature to expand an audit of CCSD in the wake of the budget deficit.

In a presentation to go before trustees Thursday night, the district clarified that the issue of the school budget adjustments was separate from the potential budget deficit and that no school budgets were affected by the potential central budget deficit.

The district has blamed the central budget deficit on cybersecurity and litigation costs. Also on the agenda is a possible $3.5 million payout to the victims of Jonathan Cronin, who pleaded guilty to a child abuse charge in February of 2020.

Schools were, however, affected by the school budget adjustments, which had initial errors, according to the presentation. On Sept. 15, principals determined that inaccurate data had been used for At-Risk funding for schools, which it recalculated the next day. On Sept. 17, the payroll data for positions with salaries did not include the 8 percent increase in pay for licensed professionals, which it also updated later.

As a result, operating costs for many schools were far higher than anticipated. Upon learning the news, principals around the district re-evaluated their strategic budget plans — cutting staff, programming and supply funding.

The presentation also provided a history of employees’ surplus history, the term used for unassigned employees. Numbers were higher this year than last year, with 37 licensed professionals, 45 support professionals and five administrators being surplused. But in the years before that, numbers were generally higher, specifically among the amount of licensed educators, according to the presentation.

Solutions

The presentation also laid out solutions. Short-term solutions include school support and meetings with principals, as well as using money from its unassigned ending fund balance.

District Policy 3110 requires the district to maintain an ending fund balance of 2 percent of total General Fund revenue. According to the presentation from last spring, that amount hovers around $160 million.

In the long term, the district said it will “increase broad understanding and visibility into the allocation of dollars across schools.”

The amended final budget will be presented to the board for approval on Dec. 12.

This is a developing story. Check back for updates.