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Legislators question funding and carryover for Nevada Teacher Advancement Scholarship

2714596 · March 20, 2025
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Summary

The Joint Subcommittee heard that uncertainty about carryforward rules and budget classification is complicating liabilities and future awards for the Nevada Teacher Advancement Scholarship; department staff said roughly 200 educators have benefited but fiscal reconciliation and possible reversion rules may require a budget amendment.

The Joint Subcommittee on K‑12, Higher Education and CIP heard detailed questions about the Nevada Teacher Advancement Scholarship (budget account 2622) on the first day of budget hearings, including whether unspent prior-year appropriations will revert to the general fund and what amount the department needs to reserve to meet future 25% completion payments.

Megan Peterson, deputy superintendent for the Nevada Department of Education (NDE), told the subcommittee that the account “provides funding for teachers who have completed their master’s degree and have served three consecutive years within the Nevada teaching position within a public school,” and that the governor’s recommended budget includes enhancement E140 of roughly $323,000 per year to cover the 25% holdback paid after the three‑year service obligation is met.

The department’s director of educator licensure, Jeff Brisky, told the panel “so far we’ve had nearly 200 educators that were able to benefit from this program.” He said applications increased — 866 for FY25 versus 294 in the program’s first year — and that demand could draw down available funds. Brisky and other department staff described reconciliation complexity: provider institutions report awards and the department must reconcile each scholarship line by line at fiscal year close to determine final liabilities.

Committee members pressed the department on carryforward and reversion. Assemblymember Backus said the package originally provided $2 million per year in one‑time funding and asked whether unspent balances revert under AB 400. Brisky said his understanding was that prior‑year funds did not revert, but later acknowledged he would need to recheck. NDE fiscal staff reported there is currently about $500,000 in a 25% reserve. According to the department’s reconciliation for FY24, the state board awarded $1.5 million and approximately $971,000 was expended; the department estimated the FY24 25% liability at about $243,000 and a provider award liability that together would produce an approximate total FY24 liability of $433,000 if every educator completes the program.

Several members said the uncertainty creates a need for a budget amendment if those prior appropriations do indeed revert. Brisky said, “if that is the case then we would need an amendment to cover our future liability.” Peterson agreed and said the enhancement request aims to ensure funds are available in the next biennium to meet obligations; she told the committee the department is working with fiscal staff to determine whether an amendment is needed.

Members also questioned why the governor’s recommended budget limits new general‑fund support for this scholarship in the 2025–27 biennium. Peterson answered that the recommendation reflects the state’s current budget balance and that uncertainties about carryforward and future liabilities affect how much recurring funding is proposed.

No formal action or votes were taken on the account during the hearing. Department staff said they will review reversion rules referenced by committee members and, if necessary, pursue budget amendments and provide additional reconciliations to the committee.

The subcommittee moved on after committee members asked for follow‑up on reversion language and for NDE to provide further reconciliation of liabilities and carryforward assumptions.