Bill would establish fund to fix ailing schools

CARSON CITY - Flanked by school officials from around the state, Assemblywoman Chris Giunchigliani asked Nevada lawmakers Thursday to help school districts repair or replace crumbling, dilapidated buildings.

AB597 would create a state fund to help the districts finance repair efforts - something the state currently doesn't do.

"There's over $1 billion in deferred maintenance needs throughout this state for K-12," Giunchigliani, D-Las Vegas, told the Ways and Means Committee.

Her bill would use part of the interest earned by the state's $130 million "rainy day" and $5 million disaster relief funds to build an account that schools could use for repairs and construction.

Supporters say they'd like to see at least 2 percent of the interest from the existing accounts dedicated to the school repair fund. The interest would only have to be deposited into the new fund until it was large enough to sustain itself through investments, grants and donations.

The money would be available to schools with emergency repair problems and to those trying to avoid crises through early maintenance projects.

Supporters offered an amendment defining emergency conditions: condemned buildings, structural defects, environmental hazards, "life and safety hazards," or students who simply don't have a school.

Also, a declining local tax base or a tax base already set at the maximum rate would qualify districts for access to the fund. Districts whose renovation costs exceed 40 percent of the costs to replace the old buildings could also qualify.

The committee seemed generally sympathetic to the plan despite murmurs about the tight budget lawmakers are wrestling with this year.

"If this is going to be meaningful, you're going to have to get some cash into that fund. One or 2 percent isn't going to get you there," said Assemblywoman Jan Evans, D-Sparks.

Cash-strapped rural counties would love to see the state finally pitching in and have complained previously about the severe physical deterioration of their schools to state lawmakers, with little success.

The Nevada Legislature has generally left the job of capital improvements to individual districts since turning over to counties the power to levy property taxes 20 years ago.

But administrators are warning of possible lawsuits against the state if the Legislature doesn't do something to improve Nevada's worst K-12 campuses.

"Nevada is one of only two states in the United States that does not participate in school construction; and in our (state) constitution, we have to provide a uniform system of public education," said state schools chief Mary Peterson.

Currently, only two of the state's 17 school districts would be eligible for the funds proposed under AB597 - White Pine and Lincoln counties.

Due to lack of classroom space, White Pine sends about 70 of its children to school in nearby Utah, and an elementary school in Lincoln County is so structurally damaged that district officials may close it at the end of the school year.

Under AB597, the counties would have to prove to state officials that they've exhausted every other possible funding option before getting money from the proposed account.

If a district can get its project past officials from the state Department of Taxation, Department of Education and the state Public Works Board, its project would go to the top of a capital improvement projects list.

Supporters also proposed an amendment to allow school districts levy a 0.8-cent sales tax to pay for "extraordinary maintenance and repair."

While no final action was taken, lawmakers were skeptical and said it may not be constitutional for a school board to impose taxes absent a public vote or approval from county governing boards.

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