Thursday, Dec. 5, 2019 | 7:30 p.m.
Over the course of Thursday’s Nevada System of Higher Education Board of Regents meeting, one topic seemed to repeatedly come up: money.
The board, which is looking ahead to the budget-making process for the 2021 Nevada legislative session, approved an agreement with NV Energy to receive a substantial incentive over the next few years. The contract with NV Energy will bring at least $1.5 million over three years into the system’s coffers in exchange for sticking with the company. It’s being touted as another step toward the system’s goal of transitioning to 100% renewable energy.
“Because we are approaching this decision as one system, we will see $1.5 million added to NSHE’s budgets that will benefit our institutions,” Regents Chair Jason Geddes said in a statement.
NV Energy, in order to keep NSHE as a customer, will give the system $500,000 annually through 2021.
NV Energy will present an “optional pricing program rate” — a plan that would offer NSHE a long-term fixed rate for renewable energy — by 2022. The agreement states that NSHE must negotiate “in good faith” and enter into said agreement if it is approved by the state Public Utilities Commission.
“This opportunity not only best meets the energy needs of our institutions and pursues the renewable and sustainable energy goals of the Board of Regents, but it also comes with a significant financial benefit,” Geddes said in a statement.
If the plan is not available by 2022, NV Energy has agreed to pay $500,000 more in 2022 and 2023.
Outgoing Chancellor Thom Reilly, making good on a recommendation earlier filed by his office, suggested directing the funds to student success initiatives.
“I am recommending the Board of Regents use the $1.5 million in incentive payments from this contract for student success initiatives,” Reilly said in a statement. “Over the past three years the Board of Regents identified those initiatives and programs that have worked to improve graduation and persistence rates at our institutions. By using this funding for corequisite support, I believe Nevada will see the uptick in student success we have been striving for at our degree-granting institutions.”
NV Energy recently entered a similar agreement with the Clark County School District, in which CCSD will receive at least $4.5 million from the company.
The board also began the process of tackling the budget-making process ahead of the next legislative session.
Andrew Clinger, the chief financial officer for NSHE, said officials this fall visited campuses in the system to discuss issues such as deferred maintenance requests and compensation that need to be considered when forming a budget. Some of the concerns heard during the visits were staff compensation, such as cost-of-living-adjustment funding and merit payment increases, state support for community college summer school, and more resources for advisers and faculty.
Clinger said the Legislature approved $160.7 million in new funding for the system in 2019, mainly in the form of $80.3 million in caseload and other enhancement funding.
There will be three more meetings over the nearly yearlong process of finalizing the budget request to the governor’s office. The final meeting in the process will be held on Aug. 21.
