Nevada governor proposes state worker raises, major boost to K-12 in budget he’ll hand to Lombardo

Gov. Steve Sisolak has designed a budget that proposes 10 percent raises for state employees in the coming fiscal year and 5 percent in the next, although his Republican successor, Gov.-elect Joe Lombardo, and the Legislature will be able to make their own changes to the proposal.

Sisolak is also proposing more than doubling the amount of money going to public schools, from about $3 billion last biennium to about $8.2 billion in the coming biennium, adding that “it may be possible for districts to offer a substantial increase in educator pay” with the revenue boost.

The outgoing Democratic governor announced highlights of the proposal on Thursday, less than two weeks before he leaves office. He said the significant proposed raises for state workers intend to offset 4 percent increases in employees’ retirement contributions, and 6 percent for public safety workers.

The state’s Economic Forum projected earlier this month that the state will bring in $11.4 billion in tax revenue to the general fund in the next two-year budget cycle, which begins in mid-2023. Tax collections have soared in recent months during a period of high inflation and relatively strong consumer spending.

“I am especially proud of the work we’ve done to help increase education funding to unprecedent[ed] levels – almost a 150 percent increase and it’s my strong desire these funds get down to teachers and students,” Sisolak said in a statement, noting that the budget has been in the works for the past year and a half and crediting “smart choices made by the State to protect the economy in the aftermath of the COVID-19 pandemic” for the revenue increase.

In a statement earlier this month, Lombardo said he saw no need for any new taxes in the coming biennium and “I look forward to making my administration’s budget priorities fit within these projections while still acting fiscally responsible and saving money for a rainy day.”

On Thursday, Lombardo's spokeswoman, Elizabeth Ray, said the incoming governor "will take this budget proposal under advisement and give it due consideration.”

This story was used with permission of The Nevada Independent. Go here for updates to this and other stories.
Governor Sisolak releases 2023-2025 budget highlights

CARSON CITY, NV – Today, Nevada Governor Steve Sisolak released highlights from the 2023-2025 budget. The Economic Forum recently finalized the revenue projections the Governor must use in developing the Executive Budget for the next biennium. The Governor’s administration has been working diligently over the last year and a half on the budget.

“I am grateful to the Governor’s Finance Office, our State agencies and my team for their diligent work to prepare an executive budget that will help improve the quality of life for all Nevadans,” Governor Sisolak said. “This budget includes investments in our state’s future including capital project construction, record education funding, tools to protect our state’s natural resources, and a pay raise for the State employees who serve constituents daily. I am especially proud of the work we’ve done to help increase education funding to unprecedent levels – almost a 150 percent increase and it’s my strong desire these funds get down to teachers and students.”

The budget prepared by the Sisolak administration will be handed off to the incoming administration at the end of the Governor’s term on January 2. The new administration will be responsible for submitting a final budget ahead of the 2023 Legislative Session.

The following is a look at some of the current budget highlights:
The Governor is putting forward an approximate 10 percent raise for State employees in the first year of the biennium, with an approximate 5 percent raise in the second year. The significant salary increase put forward by the Governor is intended to offset the 4 percent and 6 percent (public safety) PERS increases set to start next year. The item will go a long way toward helping close the gap between State employees and their counterparts in the private sector and other government entities. Additionally, all employees will receive a $1,250 retention benefit each year of the biennium under the Governor’s proposed budget.

Due to record taxes collected as a result of smart choices made by the State to protect the economy in the aftermath of the COVID-19 pandemic, a historic amount of money is included in the budget for Nevada’s K-12 pupil centered formula funding. The latest figures approved by the Economic Forum project $8.2 billion being available over the biennium, more than doubling the approximately $3 billion from the last biennium. While the funding formula signed into law by Governor Sisolak in 2019 gives individual school districts the ability to determine how to spend the dollars, it is the Governor’s hope and desire that school districts will use funding to invest in educators by raising salaries for existing teachers and offering higher starting salaries for new educators. With this level of funding, it may be possible for districts to offer a substantial increase in educator pay, raise the hourly wages for staff who make school run, including employees like bus drivers and cafeteria workers, and lower the average class size to manageable levels.

Additional education investments of more than $18 million including funding for education nonprofits like Spread the Word Nevada, workforce training at Nevada’s community colleges, funding to enhance the medical school programs at both University of Nevada, Reno and University of Nevada, Las Vegas, and additional financial assistance for graduate assistants across the Nevada System of Higher Education.

Funding is also included to strengthen programs housed in the Governor’s Office of Workforce Innovation, including funding over the biennium for Teacher Externships – which allow public school teachers to shadow in-demand careers to better understand the jobs their students should be considering and funding for a LifeSkills Student Summit to help increase soft skills among Nevada’s youth, such as financial literacy, career pathways and educational opportunities, social networking and communications. Funding will cover program support such as transportation and facilities for statewide reach and marketing.

The Governor’s recommended budget also includes additional investments in the Millennium and Promise scholarship programs, which help lower the cost of college and increase access for more Nevadans to continue their studies.

Building upon the $500 million Home Means Nevada program, the Governor’s recommended budget includes funding for more than half a dozen additional affordable housing projects which were unable to be funded under the original program. The Governor’s budget also includes the creation of a $100 million affordable housing revolving loan fund, which mimics and enhances a small existing program at the Nevada Housing Division.

Through tax revenues and significant bond authority, Governor Sisolak was able to prioritize almost $1 billion worth of significant capital improvement projects. These investments will help provide safe, efficient and productive work environments for State employees and up-to-date and welcoming spaces to serve Nevadans. The budget includes planning dollars for new University and community college buildings, funding all requested state agency deferred maintenance projects, new training facilities for the Nevada National Guard, and enhanced infrastructure across our beautiful state parks.

To ensure that Nevada families can access the mental and behavioral health care they need, the recommended budget includes investments to the State’s mental health facilities, including $30 million to develop the master plan at the Southern Nevada facilities to include crisis stabilization centers and $20.3 million for the Northern Nevada facility to build additional supportive housing units.

Ensuring there is an adequate network of providers is vital to the health of Nevadans and a rate increase for some Medicaid provider types is included in the recommended budget. This funding will help to support the cost of providing the service. Some provider types included in the increase are nursing facilities who are often the primary payor for long term care in Nevada and home healthcare workers who care for some of our most vulnerable community members.

In recent years federal funding from the Office for Victims of Crime has decreased nationwide, impacting the ability of providers to respond to the emotional and physical needs of crime victims, and support eligible services including shelter housing, behavioral health support for children and adults, and outreach to communities. The budget includes substantial funding over the biennium to be allocated to community organizations providing direct services.  

The budget as proposed by Governor Sisolak will also include funding to support child welfare efforts in Clark and Washoe counties. Over the biennium, more than $157 million is proposed to increase foster care rates, support specialized homes to care for children with autism/intellectual and development delays (autism/lDD) and Commercially Sexually Exploited Children (CSEC). Additionally, funding is earmarked to extend adoption subsidies for certain youth and support a Commercially Sexually Exploited Children (CSEC) unit. 

An allocation of $5 million to the Governor’s Advisory Council on Education Relating to the Holocaust for an educational campaign to fight antisemitism.

A monumental investment for additional support for the Nevada Clean Energy Fund. These resources will support NCEF as it works to secure funds available to state green banks through the Inflation Reduction Act Greenhouse Gas Reduction Fund. These funds will help NCEF become self-sufficient.

To ensure those in need have access to nutritious meals, the Governor’s recommended budget includes a $2 million allocation to Catholic Charities of Southern Nevada for its Meals on Wheels program and a $1 million allocation to Catholic Charities of Northern Nevada for the same program.

Go here to see the highlights released by the Sisolak administration.

— This story was used with permission of The Nevada Independent. Go here for updates to this and other Nevada Independent stories.