Chancellor: Budget cuts would gut higher ed

Gov. Brian Sandoval's budget proposal would return higher education to 2003 funding levels and cut

$162 million from the state's community colleges and universities, the head of Nevada's higher education system said Thursday.

Chancellor Dan Klaich, testifying before the Legislative Commission's budget subcommittee, said making up the shortfall by raising tuition and fees - an option the governor said would be up to the Board of Regents - would increase student costs 73 percent and make higher education unaffordable for many.

As an example, he said undergraduate per credit fees would need to jump from $156.75 to $220.79 next year, and to $270.45 the following year.

"I don't care how you do the math, these are staggering numbers and they are numbers that cannot be filled by tuition and fee increases," Klaich said.

Sandoval has recommended general fund support of $406 million in 2012 and $395 million in 2013. At the same time, he's proposed diverting property tax money from Clark and Washoe counties to higher education institutions and giving universities more autonomy over their tuition and fees. The overall cumulative decrease amounts to roughly 10 percent.

But that doesn't account for the loss of federal stimulus dollars, which when added brings the decline closer to 24 percent, Klaich said.

Since 2008, Klaich said the system has already eliminated 24 programs, closed centers, imposed hiring freezes and increased class sizes.

To close the gap by layoffs would entail getting rid of more than 1,800 employees and one-fifth of all graduate and teaching assistants, he said.

Sandoval has proposed a $5.8 billion general fund budget and said he will not support raising taxes. Thursday's hearing was a precursor to more detailed budget reviews that will begin once the Legislature convenes Feb. 7.

Dale Erquiaga, the governor's senior aide, said Sandoval knows education is an investment that promotes economic development.

"But you have to have money to invest money," Erquiaga told reporters. "And when you don't have that, you have to make your money work harder.

"This budget does that," he said.

Klaich said restructuring Nevada's tax system, which is heavily reliant on sales and gaming revenues, should be part of the discussion.

"I think the people of Nevada want a good solid education system and I believe they are willing to pay for it," he said.

Erquiaga said a tax debate is welcome and necessary - but the governor won't budge.

"The public has a right to hear both sides of this debate," he said.