Joint finance panels approve K-12 subcommittee recommendations, move $242.6 million from education stabilization account

CARSON CITY/LAS VEGAS — The joint Senate Finance and Assembly Ways and Means subcommittee on K‑12 and higher education closed its review of K‑12 budget accounts and its recommendations were approved by the full joint committees after debate and an amendment.

The committees approved subcommittee recommendations that reduce General Fund appropriations by $93.7 million in fiscal year 2026 and $30.2 million in fiscal year 2027 compared with the governor’s recommended budget, and that authorize two permanent transfers from the Education Stabilization Account to the Pupil‑Centered Funding Plan: $126.9 million in FY 2025 and $115.7 million across the 2025–27 biennium — a combined $242.6 million. James Malone, LCB Fiscal, detailed the figures during the presentation, including the transfers and updated enrollment and revenue assumptions.

The transfers were recommended to maintain the statewide base per‑pupil amounts the governor proposed as amended: $9,416 in FY 2026 and $9,486 in FY 2027. The subcommittee recommended total funding for the Pupil‑Centered Funding Plan of $5,724,000,000 in FY 2026 and $5,761,000,000 in FY 2027, down from the executive recommendation after updated enrollment projections and technical adjustments.

The subcommittee did not recommend approving the governor’s proposed new salary‑adjustment tier within the funding plan ($287.9 million general fund over the biennium). Instead it recommended transferring $249.9 million over the biennium for a school‑district salary adjustment program into the Nevada Department of Education’s Other State Education Programs accounts, and it did not include the governor’s $38 million proposal to include charter school personnel in the salary adjustment program.

The panel recommended approving established funding methodologies and several program details: food service and transportation costs calculated from a four‑year district average ($903.6 million each year across the biennium), local funding to support pupils with disabilities ($599.8 million each year), and weighted funding for English learners (0.45), at‑risk pupils (0.35) and gifted and talented pupils (0.12). The subcommittee also recommended retaining the use of the “grad score” from Infinite Campus to identify at‑risk pupils unless the State Board of Education adopts a contrary regulation.

Lawmakers also directed the department and the Commission on School Funding to review the methodology used for the local special education tier within the funding plan and to study budgeting options for the salary adjustment program. The subcommittee recommended letters of intent directing reconciliation and semiannual reporting for the Nevada Teacher Advancement Scholarship Program and the Teach Nevada Scholarship Program to the Interim Finance Committee.

Debate before the vote focused on how the transfers affect the Education Stabilization Account and on charter school teacher raises. Senator Titus asked staff for the account balance before and after the transfers; Malone said the balance was estimated at $845,800,000 in FY 2025 prior to the $126.9 million transfer and estimated to be $639,600,000 after the transfers if interest earnings of $9.2 million are realized. When asked whether there is a statutory limit on transfers from the stabilization account, Malone said, “There is no statutory limitation.”

Assembly member Monroe Moreno moved to approve the subcommittee report with an amendment affecting the Account for State Special Education Services. Moreno’s motion combined two actions: to eliminate a 2% “roll up” funding approach that would have financed merit salary increases for special education personnel (reallocating $14.4 million to local education agencies proportionally based on budgeted special education pupils under the targeted 0.46 statewide multiplier) and to place that $14.4 million in a reserve category requiring the Nevada Department of Education to submit a work program to the Interim Finance Committee before distribution. The motion was seconded by Senator Heidi Seevers Gansert (registered in the record simply as “Senator Oh” at the mic).

Assembly member Sarah Peters and several other members voiced support for the overall budget package and the amendment’s accountability provisions; Senator Buck and Senator Titus announced they would vote no, citing concerns about charter school teacher pay and other unresolved issues. Senator Buck told the committees, “I will be a no today.” Majority Leader Nicole Cannizzaro urged approval, saying the package supports special education, teacher raises and other priorities.

At voice vote, committee leadership asked members to raise their hands for recorded nays. The chair identified six members as voting no: Assembly member Hafen; Assembly member Dickman; Assembly member Hibbits; Senator Buck; Senator Titus; and Senator Stone. The motion passed.

During the public comment period, representatives of charter schools, regional professional development programs, the Nevada Association of School Superintendents and the Clark County School District thanked lawmakers for the subcommittee’s work and said they supported the amended funding recommendations and the committee’s intent to continue work on teacher salary equity for charter schools.

The committees issued letters of intent and several budget amendments to implement the subcommittee’s recommendations and requested further technical adjustments and follow‑up reports to the Interim Finance Committee.

A full list of the subcommittee’s recommended adjustments, transfers, and the committee’s amendment is in the official closing report presented to the joint committees.