Existing law creates the State Education Fund as a special revenue fund for the purpose of supporting the operation of the public schools in this State and identifies the sources of revenue for the Fund. (NRS 387.1212) Existing law requires the Superintendent of Public Instruction, on or before the first day of every month, to apportion the State Education Fund among the several county school districts, charter schools and university schools for profoundly gifted pupils in amounts approximating one-twelfth of their respective yearly apportionments. (NRS 387.124) Existing law requires the State Treasurer, on or before the first day of every month, to pay all money due each school district, charter school and university school for profoundly gifted pupils according to the monthly apportionment made by the Superintendent. (NRS 387.185) Existing law also: (1) creates the Education Stabilization Account as a reserve account within the State Education Fund; (2) authorizes the transfer of money between the Account and the Fund for certain purposes, including if the collection of revenue in any fiscal year will result in the Fund receiving 97 percent or less of the money authorized for expenditure from the Fund; and (3) provides that the balance in the Account must not exceed 15 percent of the total of all appropriations and authorizations from the Fund, excluding the Account, for the immediately preceding fiscal year. (NRS 387.1213) Section 5 of this bill authorizes the Superintendent to request, and the Interim Finance Committee to approve, a temporary advance from the Education Stabilization Account to the State Education Fund for the payment of all or part of the money due each month to each school district, charter school and university school for profoundly gifted pupils if the Superintendent determines the amount due exceeds the amount of money which is available in the Fund because of a delay in expected receipts. Section 3 of this bill similarly authorizes the Superintendent to request, and the Interim Finance Committee to approve, a temporary advance from the State General Fund to the State Education Fund for the same purposes as described in section 5, if an advance requested pursuant to section 5 will not provide adequate funding to address the shortfall. Sections 3 and 5 require any such money which is temporarily advanced to be paid back by August 31 following the end of the fiscal year in which the temporary advance is made. Section 5 also: (1) removes the 97 percent threshold for transferring money between the Education Stabilization Account and the State Education Fund, thus authorizing transfers for any decrease in revenue in the Fund; and (2) increases the authorized balance in the Account from 15 percent to 20 percent of the total of all appropriations and authorizations from the Fund, excluding the Account, for the immediately preceding fiscal year. Sections 1 and 4 of this bill include the proceeds of certain additional sources of revenue in the State Education Fund. Sections 2 and 6 of this bill change the rate of inflation for purposes of determining the statewide base per pupil funding amount to be the average percentage of increase or decrease in the Consumer Price Index during the immediately preceding 3 calendar years, instead of during the immediately preceding calendar year. (NRS 387.1214, 387.12455) Sections 2.3 and 2.5 of Senate Bill No. 124 of this session made certain changes relating to the Education Stabilization Account and to certain money appropriated from the State Education Fund. Senate Bill No. 124 of this session became law on February 27, 2023, and sections 2.3 and 2.5 of Senate Bill No. 124 of this session apply retroactively from and after June 30, 2020. (Section 6 of Senate Bill No. 124) For technical reasons and to show the changes made by Senate Bill No. 124 of this session which are currently existing law, sections 5 and 6 of this bill further amend NRS 387.1213 and NRS 387.1214, respectively, by amending sections 2.3 and 2.5 of Senate Bill No. 124 of this session.

Statutes affected:
As Introduced: 387.1212, 387.12455, 555.470, 387.1213, 387.1214
As Enrolled: 387.1212, 387.12455, 555.470, 387.1213, 387.1214
BDR: 387.1212, 387.12455, 555.470, 387.1213, 387.1214