Governor to investigate CCSD’s budget

Gov. Joe Lombardo will investigate the Clark County School District’s budget in the wake of budget woes that could lead to faculty cuts and overcrowded classrooms.

“Governor Lombardo is concerned by the recent operational and fiscal issues within the Clark County School District and Clark County School District 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,” a spokesperson for Lombardo said in a statement Friday afternoon.

The Clark County Education Association called for the state to investigate what the union called a systemic problem of mismanagement in CCSD in a press conference Friday morning.

CCEA criticized the district for its message to schools earlier this week warning of a potential budget deficit, as well as district administrators’ failure to account for a previously agreed-upon 8 percent salary increase for licensed professionals in its budget. The union said many schools are now faced with operating costs higher than their budgets allowed.

“Once again we find ourselves before you due to CCSD’s failed leadership,” CCEA President Marie Neisses said.

Executive Director John Vellardita said he has asked the state to provide more oversight to CCSD. He said he has spoken to both Lombardo and Superintendent of Public Instruction Jhone M. Ebert, whom he said are both taking the issue very seriously. Vellardita said he is leaving it up to the governor to decide how exactly to intervene.

Ebert could not be reached in time for publication.

Budget deficit

The district has not responded to repeated requests for details about the projected deficit and what role failing to budget for the raises will affect the situation. But Jason Goudie, who said he was fired without explanation as the district’s chief financial officer Thursday, told the Review-Journal the potential budget deficit was a separate issue from the salary increases.

Goudie said that the district had sent a message to schools on Sept. 16 of a potential budget shortfall — something he said former Superintendent Jesus Jara had anticipated might be an issue last year. Neither he nor the district disclosed the size of the potential shortfall. Goudie said the district is still preparing the overall budget.

Goudie said the district realized shortly after its initial message that its budgeting system had not been updated with data reflecting the 8-percent increase.The previous cost for each employee, including salary and benefits, was around $115,000. The raise made it around $120,700, according to Goudie, who said that while the raises would have no effect on the initial projected budget shortfall, it would mean schools would face increased operating costs as they looked to adjust budgets to meet the deficit. Goudie said that the updated costs had been included in the Sept. 16 message to schools.

The district has not responded to questions regarding specific schools, and Goudie said that the level of impact would depend on the school. Schools with more teachers, for instance, would have higher operating costs.

Goudie, who held the position of CFO and deputy superintendent of business administration, was hired in 2017 and is one of the administrators who received a last-minute pay raise from Jara before he left the district. The 24 percent raise of $51,000 brought his salary up to $265,000, according to a Review-Journal investigation.

Details on any possible severance package that may have been given to Goudie upon his termination were not disclosed by the district.

Call for investigation

Vellardita accused CCSD of covering up mismanagement by framing it as part of its typical operations. He questioned why there would be a deficit at all, given the fact that CCSD got more funding in the last legislative session. Vellardita said the state might be hesitant to fund the school in the future given the mismanagement it sees. Auditors have previously flagged widespread mismanagement across the district, according to an investigation by the Review-Journal.

The CCEA said Goudie is a scapegoat for what it called a systematic problem of incompetence and mismanagement. The union blamed Interim Superintendent Brenda Larsen-Mitchell and Board of Trustees President Evelyn Garcia Morales for the problem.

“Dr. Brenda Larsen-Mitchell failed her first test, and this is yet another example of why we need stronger leadership and we must it reconfirmed why we believe that Dr Larsen-Mitchell is not qualified to be the next superintendent,” Neisses said.

Neither the district nor Garcia Morales responded to a request for comment in time for publication.

Vellardita said the district knew of the salary increases after its agreement with CCEA in December 2023, meaning that for them not to be included in the budget crafted in the months prior is a “miscalculation of gross proportions.” Goudie, meanwhile said that the district began working on the budget prior to the agreement and used preliminary numbers. He said it is typical to adjust the real numbers later.

Vellardita has called on the district to cover the costs of any deficit itself using its money as opposed to letting the burden fall on individual schools, which he said will undoubtedly mean faculty cuts and overcrowded classrooms.

He pointed to the $258 million in carryover dollars — unused dollars from the previous year — as well as the $150 million in the unassigned ending fund balance, half of which the district is allowed to use. He also cited the money set aside for licensed professional positions that have yet to be filled.

“Not one school should have to find and make decisions if they have a deficit as a result of the error on the part of the school district when there’s these available resources,” Vellardita said.

Goudie said that the law gives schools autonomy over their own budgets, and schools have different amounts of carryover dollars they can use.

Vellardita encouraged parents to call trustees and ask how this happened, and said he was proud of the principals who made the public aware of this issue, noting CCSD’s history of attempting to cover up issues.

“Kudos to the whistleblowers on the front lines,” he said.

Contact Katie Futterman at kfutterman@reviewjournal.com.