Existing law creates the State Education Fund for the purpose of supporting the operation of the public schools in this State and requires that certain tax and fee revenues of the State be deposited in the Fund. In addition to these revenues deposited in the State Education Fund, existing law requires support for the State Education Fund to be provided by direct legislative appropriation from the State General Fund in an amount determined by the Legislature to be sufficient to fund the operation of the public schools in this State for the next ensuing biennium for the population reasonably estimated for that biennium. (NRS 387.1212) Existing law requires the Governor, to the extent practicable, to ensure that in the proposed executive budget an amount of money in the State General Fund is reserved for transfer to the State Education Fund in an amount not less than the amount transferred in the immediately preceding biennium: (1) plus the greater of the increase in revenue collected for general, unrestricted uses as projected by the Economic Forum or the combined rate of inflation and the growth of enrollment in the public schools in this State in the previous biennium; or (2) decreased by an amount not greater than the rate of decrease for the revenue collected by the State as projected by the Economic Forum. (NRS 387.12455) This bill removes the requirement for the Governor to ensure that, under certain circumstances, the proposed executive budget include an increase in the amount of money proposed to be transferred from the State General Fund to the State Education Fund. Instead, this bill requires the Governor to ensure that the proposed executive budget includes a total amount of money in the State Education Fund, excluding the Education Stabilization Account, that funds increases in the amount of money in the State Education Fund, excluding the Education Stabilization Account, when such an increase is required. This bill: (1) maintains the requirement that if the Economic Forum projects that revenue collected by the State for general, unrestricted uses will decrease, the amount of money transferred in the proposed executive budget from the State General Fund to the State Education Fund may decrease by not more than the percentage decrease projected by the Economic Forum; and (2) provides that, under such circumstances, the Governor is not required to ensure that the proposed executive budget satisfies requirements for including an increase in the amount of money in the State Education Fund. Existing law requires the Legislature, in funding the public schools in this State, to determine the statewide base per pupil funding amount for each fiscal year of the biennium, which is the amount of money on a per pupil basis determined to be sufficient to fund the costs, with certain exceptions, of all public schools in this State. (NRS 387.1214) Existing law requires the Governor, as part of the proposed executive budget, to include recommendations for the statewide base per pupil funding amount, which must be equal to the statewide base per pupil funding amount for the immediately preceding biennium increased by an amount not less than the combined rate of inflation and the growth of enrollment in the public schools, unless the amount of money contained in the State Education Fund, excluding the Education Stabilization Account, decreases from the immediately preceding biennium, in which event the Governor must recommend a proportional reduction of the statewide base per pupil funding amount. Additionally, the Governor is also required to recommend a proportional reduction of the multiplier for each category of pupil which must not be less than the multiplier for the immediately preceding biennium, unless the amount of money in the State Education Fund, excluding the Education Stabilization Account, decreases or increases in an amount that is insufficient to fund the multiplier for each category of pupils. However, existing law authorizes the Governor to provide recommendations which deviate from these requirements if the Governor determines that it would be impracticable to prepare the proposed executive budget in this manner. (NRS 387.12455) This bill continues the requirement for the Governor to include, as part of the proposed executive budget, a recommendation for the statewide base per pupil funding amount and the multiplier for weighted funding, but eliminates provisions which prescribe how the Governor's recommendations must be calculated. If the Governor makes recommendations for the funding of public schools which deviate from the prescribed methods for preparing such recommendations, on the basis that using such methods would be impracticable, existing law requires the Governor to make recommendations for legislation to improve the method by which funding for public schools is determined. (NRS 387.12455) This bill eliminates the requirement for the Governor to make this recommendation.

Statutes affected:
As Introduced: 387.12455
BDR: 387.12455