Nevada's education system consistently ranks at or near the bottom for quality and results. Now Nevada Governor Jim Gibbons is proposing a cut of 22% from the state budget, including education. Here is an analysis of what impact these kinds of drastic cuts could happen.

1. Budget Impacts
A 22 percent cut in General Fund
appropriations (effective 3/1/2010)
equates to a $37 million cut in FY 2010
and a $110 million cut in FY 2011
for NSHE.
f NSHE
Cutting NSHE budgets by an additional
Cutting NSHE budgets by an additional
$110 million in FY 2011 would result in a
cumulative percent cut of 29.4 from
p
FY 2009 Legislative approved amounts.
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2. Budget Impacts
Cumulative Impacts for Fiscal Year 2010
Cumulative Impacts for Fiscal Year 2010
General Fund Appropriations
Budgets for the current
FY2009 Actual
Actual fiscal year have already
fi l h l d
FY2010 Percent
Leg Approved Reduction been reduced 13.4%
$683 million $91 million $592 million* ‐13.4%
Potential Additional cuts in this
FY2009 Additional year could result in an
FY2010 Percent overall cut for FY2010 of
overall cut for FY2010 of
Leg Approved
L A d Reductions
Reductions
at 22% 18.7 percent
$683 million $38 million $556 million* ‐18.7%
* Includes $92 million in stimulus funds received under the American Recovery and Reinvestment Act of 2009 2

3. Budget Impacts
Cumulative Impacts for Fiscal Year 2011
General Fund Appropriations
Potential
FY2009 FY2011 Additional
Additi l
FY2011 Percent
Leg Approved Leg Approved Reduction
at 22%
$683 $592
$592 $110
$110 $482
$482 ‐29.4%
‐29 4%
million million* million million*
* Includes $92 million in stimulus funds received under the American Recovery and
$
Reinvestment Act of 2009
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4. Budget Impacts To Date
Actions Already Taken (since FY 2008)
Actions Already Taken (since FY 2008)
Programs eliminated;
Centers and units closed;
Hiring freezes and furloughs; and
Facility maintenance deferred.
Student Impacts
Fee increases & surcharges;
Fee increases & surcharges;
More students;
Larger course sections; and
g
Most services for students reduced or
eliminated. 4

5. Budget Impacts To Date
Our institutions are changing and not for the better.
In years to come we will see the dramatic impacts of
these cuts in terms of fewer enrolled students, greater
time to degree for those student who are enrolled,
and further declining graduation rates – resulting in
d f h d li i d i li i
long term impacts to our state’s economy. We will not
meet the demands of employers in building the new
meet the demands of employers in building the new
knowledge‐based economy Nevada needs to come
out of this recession.
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6. Budget Cut Options
Statewide budget reductions of
Statewide budget reductions of
$110 million annually could be met by:
Scenario #1 Scenario #3
Close CSN Close NSC
Close NSC Close GBC, TMCC, and WNC
Close UNR Athletics
Scenario #2 Close UNLV Athletics
Close GBC Close the Agricultural
Close TMCC Experiment Station (UNR)
Close DRI
Cl
Close the Law School
Close the Dental School
Close the Medical School
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7. Budget Cut Options
$110 million cut through pay reductions,
$110 million cut through pay reductions
furloughs and layoffs ‐ 3 difficult choices:
Approximately 20 percent pay cut across the
Approximately 20 percent pay cut across the
System;
At least an additional 5 furlough days per
At l t dditi l5f l hd
month;
6 furlough days per month total
6 furlough days per month total
Significant impact on productivity
Net reduction in work hours to .74 FTE
Net reduction in work hours to .74 FTE
At least an additional 1,290 layoffs. 7

8. Financial Exigency
All of the previously
All of the previously
mentioned scenarios
would require the
Board of Regents
Board of Regents
to declare
financial exigency. 8

9. Budget Cut Options
Fill the $110 million Cut with Student Fees:
$
2010‐11
Percent
Percent
Approved New Rate
Increase
Reg Fee
Universities ‐
$
$156.75* $
$232.09 48%
undergrad
d d Assumes
Universities – current
$239.50 ** $345.61 48%
graduate enrollment
State College
ll $113.25*
$ * $167.68
$ 48% levels
Community
$69.25* $102.53 48%
Colleges
*rate includes 2010‐11 surcharge of $14 for university (undergraduates
only), $10 for NSC , and $6.25 for community colleges (lower division)
** no surcharge for graduate students 9

10. Budget Cut Options
Presidential Projections if Institutions take
Presidential Projections if Institutions take
$110 million cut:
Approximately 15,750 students unable to enroll
Approximately 15 750 students unable to enroll
(14 % of fall 2009 students)
Approximately 7,600 fewer FTE generated
Decrease in Full Time faculty and staff of
approximately 1025
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11. Budget Cut Options
Presidential Projections if Institutions take
Presidential Projections if Institutions take
$110 million cut (continued):
Elimination of operating, travel, student wages,
library support, closure of remote campuses
Elimination of about 70 academic programs, centers,
and departments
and departments
Increase in Part‐Time instruction
…. 11