Revises provisions governing budgeting for public education. (BDR 34-1160)

EXEMPT

S.B. 471

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SENATE BILL NO. 471–COMMITTEE ON FINANCE

(ON BEHALF OF THE OFFICE OF FINANCE
IN THE OFFICE OF THE GOVERNOR)

MAY 15, 2025
____________

Referred to Committee on Finance

SUMMARY—Revises provisions governing budgeting for public
education. (BDR 34-1160)

FISCAL NOTE: Effect on Local Government: No.
Effect on the State: Executive Budget.

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

AN ACT relating to education; revising the manner in which the
Governor is required to prepare the proposed executive
budget with respect to the support of the operation of
public schools; and providing other matters properly
relating thereto.
Legislative Counsel’s Digest:
Existing law creates the State Education Fund for the purpose of supporting the 1
operation of the public schools in this State and requires that certain tax and fee 2
revenues of the State be deposited in the F und. In addition to these revenues 3
deposited in the State Education Fund, existing law requires support for the State 4
Education Fund to be provided by direct legislative appropriation from the State 5
General Fund in an amount determined by the Legislature t o be sufficient to fund 6
the operation of the public schools in this State for the next ensuing biennium for 7
the population reasonably estimated for that biennium. (NRS 387.1212) 8
Existing law requires the Governor, to the extent practicable, to ensure that in 9
the proposed executive budget an amount of money in the State General Fund is 10
reserved for transfer to the State Education Fund in an amount not less than the 11
amount transferred in the immediately preceding biennium: (1) plus the greater of 12
the increase in revenue collected for general, unrestricted uses as projected by the 13
Economic Forum or the combined rate of inflation and the growth of enrollment in 14
the public schools in this State in the previous biennium; or (2) decreased by an 15
amount not greater than the rate of decrease for the revenue collected by the State 16
as projected by the Economic Forum. (NRS 387.12455) This bill removes the 17
requirement for the Governor to ensure that, under certain circumstances, the 18
proposed executive budget include an increase in the amount of money proposed to 19
be transferred from the State General Fund to the State Education Fund. Instead, 20

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this bill requires the Governor to ensure that the proposed executive budget 21
includes a total amount of money in the State Education Fund, excluding the 22
Education Stabilization Account, that funds increases in the amount of money in 23
the State Education Fund, excluding the Education Stabilization Account, when 24
such an increase is required. This bill: (1) maintains the requirement that if the 25
Economic Forum projects that revenue collected by the State for general, 26
unrestricted uses will decrease, the amount of money transferred in the proposed 27
executive budget from the State General Fund to the State Education Fund may 28
decrease by not more than the percentage decrease projected by the Economic 29
Forum; and (2) provides that, under such circumstances, the Governor is not 30
required to ensure that the proposed executive budget satisfies requirements for 31
including an increase in the amount of money in the State Education Fund. 32
Existing law requires the Legislature, in funding the public schools in this 33
State, to determine the statewide base per pupil funding amount for each fiscal year 34
of the biennium, which is the amount of money on a per pupil b asis determined to 35
be sufficient to fund the costs, with certain exceptions, of all public schools in this 36
State. (NRS 387.1214) Existing law requires the Governor, as part of the proposed 37
executive budget, to include recommendations for the statewide base per pupil 38
funding amount, which must be equal to the statewide base per pupil funding 39
amount for the immediately preceding biennium increased by an amount not less 40
than the combined rate of inflation and the growth of enrollment in the public 41
schools, unl ess the amount of money contained in the State Education Fund, 42
excluding the Education Stabilization Account, decreases from the immediately 43
preceding biennium, in which event the Governor must recommend a proportional 44
reduction of the statewide base per p upil funding amount. Additionally, the 45
Governor is also required to recommend a proportional reduction of the multiplier 46
for each category of pupil which must not be less than the multiplier for the 47
immediately preceding biennium, unless the amount of mone y in the State 48
Education Fund, excluding the Education Stabilization Account, decreases or 49
increases in an amount that is insufficient to fund the multiplier for each category 50
of pupils. However, existing law authorizes the Governor to provide 51
recommendations which deviate from these requirements if the Governor 52
determines that it would be impracticable to prepare the proposed executive budget 53
in this manner. (NRS 387.12455) This bill continues the requirement for the 54
Governor to include, as part of the pro posed executive budget, a recommendation 55
for the statewide base per pupil funding amount and the multiplier for weighted 56
funding, but eliminates provisions which prescribe how the Governor’s 57
recommendations must be calculated. 58
If the Governor makes recomm endations for the funding of public schools 59
which deviate from the prescribed methods for preparing such recommendations, 60
on the basis that using such methods would be impracticable, existing law requires 61
the Governor to make recommendations for legislatio n to improve the method by 62
which funding for public schools is determined. (NRS 387.12455) This bill 63
eliminates the requirement for the Governor to make this recommendation. 64

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. NRS 387.12455 is hereby amended to read as 1
follows: 2
387.12455 1. Except as otherwise provided in subsection [5,] 3
2 or 6, for the purpose of establishing budgetary estimates for 4

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expenditures and revenues for the State Education Fund as 1
prescribed by the State Budget Act, the Governor shall, to the extent 2
practicable, ensure that [an amount of money in the State General 3
Fund is reserved in ] the proposed executive budget [for transfer to] 4
includes an amount of money in the State Education Fund , 5
excluding the Education Stabilization Account, which is sufficient 6
to [fully] fund [: 7
(a) If the Economic Forum projects that the revenue collected by 8
the State for general, unrestricted uses will increase by a rate that is 9
greater than the combined rate of inflation and the growth of 10
enrollment in the public schools in this State in the immediately 11
preceding biennium, ] an amount of money in the [State General 12
Fund for transfer to the ] State Education Fund for the subsequent 13
biennium which is not less than the amount of money [transferred 14
to] in the State Education Fu nd [from the State General Fund for ] , 15
excluding the Education Stabilization Account, for the 16
immediately preceding biennium increased by [an amount not less 17
than] the lower of: 18
(a) The rate of increase for the revenue collected by the State 19
for general, unrestricted uses as projected by the Economic Forum 20
[.] ; or 21
(b) [If the Economic Forum projects that the revenue collected 22
by the State for general, unrestricted uses will increase by a rate that 23
is not greater than the ] The combined rate of inflation a nd the 24
growth of enrollment in the public schools in this State in the 25
immediately preceding biennium . [, an amount of money in the 26
State General Fund for transfer to the State Education Fund for the 27
subsequent biennium which is not less than the amount o f money 28
transferred to the State Education Fund from the State General Fund 29
for the immediately preceding biennium increased by an amount not 30
less than the combined rate of inflation and the growth of enrollment 31
in the public schools in this State. 32
(c) If the Economic Forum projects that the revenue collected by 33
the State for general, unrestricted uses will decrease, an amount of 34
money in the State General Fund for transfer to the State Education 35
Fund for the subsequent biennium which is not less than the amount 36
of money transferred to the State Education Fund from the State 37
General Fund for the immediately preceding biennium decreased by 38
an amount not greater than the rate of decrease for the revenue 39
collected by the State as projected by the Economic Forum.] 40
2. Except as otherwise provided in subsection [5, as ] 6, the 41
Governor shall ensure that the amount of money included in the 42
proposed executive budget for transfer from the State General 43
Fund to the State Education Fund is not less than the amount of 44
money appropriate d from the State General Fund to the State 45

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Education Fund for the immediately preceding biennium unless 1
the Economic Forum projects that the revenue collected by the 2
State for general, unrestricted use will decrease. If the Economic 3
Forum projects that the revenue collected by the State for general, 4
unrestricted use will decrease: 5
(a) The amount of any decrease in the amount of money 6
transferred in the proposed executive budget from the State 7
General Fund to the State Education Fund must not exceed the 8
rate of decrease for the revenue collected by the State for general, 9
unrestricted use as projected by the Economic Forum; and 10
(b) The Governor is not required to ensure that the proposed 11
executive budget includes an amount of money in the State 12
Education Fund that complies with the provisions of subsection 1. 13
3. As part of the proposed executive budget, the Governor shall 14
[, to the extent practicable,] include recommendations for [: 15
(a) The] the statewide base per pupil funding amount [, which 16
must be equal to the statewide base per pupil funding amount for the 17
immediately preceding biennium increased by an amount not less 18
than the combined rate of inflation and the growth of enrollment in 19
the public schools in this State unless the amount of money 20
contained in the State Education Fund, excluding the Education 21
Stabilization Account, decreases from the immediately preceding 22
biennium, in which event the Governor must recommend a 23
proportional reduction to both the statewide base per pupil funding 24
amount and the multiplier for each category of pupils pursuant to 25
paragraph (b);] and 26
[(b) The] the multiplier for weighted funding for each category 27
of pupils . [, which must not be less than the multiplier for the 28
immediately preceding biennium unless: 29
(1) The amount of money contained in the State Education 30
Fund, excluding the Education Stabilization Account, decreases 31
from the immediately preceding biennium, in which event the 32
Governor must recommend a proportional reduction to both the 33
statewide base per pupi l funding amount pursuant to paragraph (a) 34
and the multiplier for each category of pupils; or 35
(2) The amount of money contained in the State Education 36
Fund, excluding the Education Stabilization Account, increases 37
from the preceding fiscal year but in an amount which, after 38
recommending the statewide base per pupil funding amount 39
pursuant to paragraph (a), is insufficient to fund the multiplier for 40
each category of pupils, in which event the Governor must 41
recommend the remaining money in the State Educati on Fund, 42
excluding the Education Stabilization Account, be used to provide a 43
multiplier for each category of pupils which is as close as 44
practicable to the multiplier for the preceding fiscal year. 45

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3.] 4. When determining the amount of money to [reserve for 1
transfer from the State General Fund to ] include in the State 2
Education Fund in the proposed executive budget pursuant to 3
subsection 1, the Governor shall consider the recommendations of 4
the Commission, as revised by the Joint Interim Standing 5
Committee on Education, if applicable, for an optimal level of 6
funding for education and may [reserve] include an additional 7
amount of money [for transfer] to the State Education Fund that the 8
Governor determines to be sufficient to fund any recommendation 9
or any portion of a recommendation that the Governor includes in 10
the proposed executive budget. 11
[4.] 5. As part of the proposed executive budget, the Governor 12
may recommend to the Legislature a revision to any appropriation 13
made by law pursuant to NRS 387.1214 , including, without 14
limitation, the statewide base per pupil funding amount, the adjusted 15
base per pupil funding for any school district, the multiplier for 16
weighted funding for any category of pupils or the creation or 17
elimination of a category of pupils to receive additional weighted 18
funding. The Governor may recommend additional funding for any 19
recommendation made pursuant to this subsection. 20
[5.] 6. If the Governor determines that it would be 21
impracticable to prepare the proposed executive budget as described 22
in subsection 1 or 2, the Governor may instead include in the 23
proposed executive budget a recommendation for such funding for 24
the public schools in this State as he or she determines to be 25
appropriate. [If the Governor includes in the proposed ex ecutive 26
budget recommendations pursuant to this subsection, the 27
recommendations must be accompanied by such recommendations 28
for legislation as the Governor determines to be appropriate to 29
improve the method by which funding for the public schools in this 30
State is determined. 31
6.] 7. As used in this section, “rate of inflation” means the 32
average percentage of increase or decrease in the Consumer Price 33
Index for All Urban Consumers, West Region (All Items), as 34
published by the United States Department of Labor for the 35
immediately preceding 3 calendar years or, if that index ceases to be 36
published by the United States Department of Labor, the published 37
index that most closely resembles that index, as determined by the 38
Governor. 39
Sec. 2. This act becomes effective on July 1, 2025. 40

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