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NSHE seeks $57.5 million to cover prior cost-of-living adjustments; lawmakers probe sustainability and distribution
Summary
The Nevada System of Higher Education asked the Assembly Ways and Means Committee for a one-time $57.5 million appropriation to cover previously awarded cost-of-living adjustments (COLAs) that institutions had absorbed; lawmakers questioned ongoing fiscal impact and how campuses covered prior shortfalls.
The Nevada System of Higher Education asked the Assembly Committee on Ways and Means for a one-time appropriation (presented as part of the governor’s amended budget) to cover cost-of-living adjustments (COLAs) awarded in prior fiscal years and now carried in institutions’ budgets.
Chancellor Patricia Charlton and NSHE CFO Chris Fatone told the committee the request restores funding for salary adjustments already applied in FY 2024 and FY 2025 and helps stabilize institutional budgets without shifting further costs to students. Fatone said the requested amounts were calculated to bring certain state-funded budget accounts to roughly 80% of fully funded salary levels for those accounts.
Members asked whether the funding would be ongoing or one-time. Charlton said the request was for ongoing costs because the payments were already realized in FY 24 and FY 25; Fatone explained the request covers the portion of COLAs applied to state budget accounts and that campuses used a mix of measures — a 5% student fee increase, a three-month employee pay deferral and campus budget adjustments — to cover the immediate impacts when the COLAs were implemented.
Legislators probed whether other budget increases in the governor’s recommendation could be repurposed; NSHE staff said those funds largely reflect inflationary increases in fringe benefits and other operating costs and do not replace the specific COLA funding requested.
Faculty, students and alumni groups called the committee in support, saying the COLAs are necessary to retain faculty and maintain course offerings. Testimony described program cuts and vacant positions that resulted when institutions absorbed the unfunded portion of COLAs, and urged the committee to use general fund resources — not additional student fees — to stabilize faculty pay.
No committee vote took place at the hearing; the request will be considered during the budget process and work sessions.
