Senate closes University System budget

After a brief discussion of whether they should eliminate funding for Nevada State College at Henderson, the Senate Finance Committee voted Monday to close the university system's $1.26 billion budget.

That is $238.1 million more than the current two-year budget for the system -- an increase of 23.2 percent. Of that increase, $173.3 million will come from the state's general fund. The rest of the increase is in student fees, estate tax, grants and other revenues.

The biggest change from Gov. Kenny Guinn's proposal is the decision to have the state general fund guarantee a total of $90 million in estate tax revenues built into the budget for the next two years.

In the past, if estate tax revenues fell short, the university system had to find some way to make up the deficit.

The vote Monday gives the university system the best of both worlds. If estate tax revenues fall short, the state will cover the difference. But if they come in above projections, the universities keep the extra.

The Henderson college issue was raised by Sen. Bob Coffin, D-Las Vegas, who said $7.8 million over the coming two years seems like too much money for a college that has only 146 students.

Senate Majority Leader Bill Raggio, R-Reno, admitted he hasn't been the school's biggest supporter. But he said the school was started two years ago, has teachers in place and is expected to grow significantly. He said the number of students is projected to double next year.

Sen. Ray Rawson, R-Las Vegas, said the school "fills several niches" and is expected to provide both nurses and teachers -- two professions in short supply in Nevada.

"I'm still troubled because we are going to have to vote on about a billion dollars in taxes," said Coffin.

Sen. Bernice Mathews said that school will only provide about 80 nursing slots.

"I don't think it's going to be significant enough for the cost," she said. "We're not getting bang for the buck."

Mathews said it would have been cheaper and more effective to add four-year programs to Nevada's community colleges to provide teachers and nurses.

She and Sen. Barbara Cegavske, R-Las Vegas, voted to eliminate Henderson college.

Six of seven senators on the committee voted to support the full budget. The lone dissenter was Sen. Sandra Tiffany, R-Henderson, who said she disagrees with the estate-tax decision, putting general fund money into UNR's Fire Science Academy and the overall growth of the system budget, given the state's financial situation.