Education stimulus a maze of conflicts and requirements

Lawmakers Tuesday tried to work through a maze of conflicts and requirements in the way of claiming federal stimulus money for education.

Superintendent of Education Keith Rheault told a joint subcommittee of Senate Finance and Assembly Ways and Means that $324 million for education is available to Nevada. But getting that money will require Nevada first to restore university system funding to at least fiscal 2006 levels.

According to the budget division, that means putting $265 million back into the higher education budget " more than two-thirds what Nevada would get in stimulus " leaving little to restore funding cuts in K-12 education.

The way around that, Rheault said, is to get a waiver from the federal government allowing the state to get the $324 million. That way the state gets the entire pot of money without having first to pump more state funds into education.

In that case, Rheault said, the money would be divided proportionally according to the shortfalls between higher education, an estimated $400 million, and K-12, $200 million. Higher education still would get about two-thirds of the total.

Rheault and Director of Administration Andrew Clinger said the problem is that the federal legislation gives "very little guidance" on how to apply for and get that waiver.

Clinger said the application for a waiver would be sent within the next few days.

Rheault said, however, the budget probably will have to be built without considering the waiver because the administration and lawmakers won't know whether they will get it until late in the session.

Assembly Speaker Barbara Buckley, D-Las Vegas, said lawmakers haven't decided yet how to divide the stimulus money up in either event.

To further complicate the situation, the committee was told the state will have an $18 million to $20 million shortfall in its special education budgets to make up before it can claim the education money.

Deputy Superintendent of Education Jim Wells said the state can fill that shortage using the stimulus cash. It would have to come off the top of the $324 million total.

Buckley said it's critical lawmakers find out whether Nevada can get that waiver as soon as possible so they can build the budget.

Buckley has said lawmakers can't take all that funding for higher education because some of it is badly needed to restore health and human services programs that have been cut under the governor's budget.

She urged the administration to get that letter requesting a waiver in the mail to the federal government as soon as possible. Until Nevada gets and answer, she said, the state should build its budget without the stimulus cash, then add it to the mix after questions about the waiver and how the money must be allocated are answered.