Democrats advance schools bill that would leave $300 million hole in Sandoval’s budget

By Cy Ryan

Published Wednesday, March 23, 2011 | 1:41 p.m.

Updated Wednesday, March 23, 2011 | 4:12 p.m.

CARSON CITY – Senate Democrats pushed through a bill Wednesday to permit school districts to use money from a reserve account to build more classrooms, but it leaves a $300 million hole in the proposed budget of Gov Brian Sandoval.

Within hours of passage, Sandoval issued a statement saying he will veto the bill “because it creates a hole in the budget with no plan to replace that money.” The bill, he said, “would harm education by taking money out of the classroom and away from teachers and children.”

By an 11-10 vote, the Senate approved Assembly Bill 183, which would lower the amount school districts must keep in reserve to pay off construction bonds. That extra money from the reserve account, under the bill, would be able to pay off additional bonds for more school construction.

“This is putting people back to work,” said Sen. Valerie Wiener, D-Las Vegas. “And it’s putting children in safe schools.”

She said the only school districts likely to use it are Washoe and Lyon counties. She said the Clark County School District likely wouldn't use it because of its tight financial situation.

The governor wanted to siphon money from these reserve accounts to pay for day-to-day operation of school districts, not to finance additional construction.

Sen. Greg Brower, R-Reno, said the bill “creates a giant hole” in the budget of the governor. It is “dangerous and premature” to approve this bill before the full budget picture is known, he said.

He complained the bill was being rushed, eliminating a chance for compromise.

Senate Majority Leader Steven Horsford, D-North Las Vegas, said the process wasn't rushed. The Legislature has 120 days to complete its business, and Wednesday was the 45th day.

Weiner said all school districts supported the bill, including the Clark County School District, even it has no plans to use the reserve account to issue more classroom construction bonds.

Democrats said voters approved taxes to finance school construction bonds, and voters want the money in the reserve account to support additional construction.

The bill permits school districts in Clark and Washoe counties to lower their reserve account to pay off bonds to 25 percent -- and in the smaller counties, 50 percent -- of the amount needed to make bond payments in the next fiscal year.

Sen. Barbara Cegavske, R-Las Vegas, complained there was nothing in the bill that calls for money to be paid back. She called it a “pot of gold.”