LAS VEGAS (KLAS) — The Nevada System of Higher Education (NSHE) met Friday, May 8 to review budget reduction scenarios requested by the Governor.
On April 3, Governor Sisolak issued a directive asking all state agencies, including the Nevada System of Higher Education (NSHE), to submit budget reduction proposals for the fiscal year 2019-20 and fiscal year 2020-21.
For fiscal year 2019-20, the Governor directed all state agencies to submit budget proposals
for a 4% reduction in state funding. The Governor also requested state agencies to provide three
different budget reduction scenarios for the fiscal year 2020-21 of 6%, 10% and 14%.
The NSHE states in their budget report that it is in the best interests of this state to preserve higher education to the extent possible.
Significant cuts will significantly reduce the ability of the Nevada System of Higher Education to produce college graduates to meet the state’s workforce needs, including in the areas of healthcare, engineering, teaching, business and technology, and to perform research that improves the lives of Nevadans and beyond.
The Chancellor and the Council of Presidents in consultation with faculty and student leadership have put together budget reduction scenarios that minimize the impact on students and attempts to protect NSHE’s ability to deliver on its higher education mission.
NSHE considered multiple options for reducing budgets, and ultimately institutions implemented a hiring freeze along with operating and other reductions totaling $35.7 M before looking to the NSHE professional staff and students to share in the burden of making budget reductions.
While multiple cost-saving measures are recommended as part of the budget reduction scenarios, the CARES Act funding, professional staff furloughs, and a temporary student surcharge are all
recommended uniformly across the system.
Coronavirus Aid Relief and Economic Security (CARES) Act created the $14 billion Higher Education Emergency Relief Fund. 90% of the Higher Education Emergency Relief Funds are allocated directly to institutions of higher education using the following formula.
(A) 75 percent according to the relative share of full-time equivalent enrollment of Federal Pell Grant recipients who are not exclusively enrolled in distance education courses prior to the coronavirus emergency; and
(B) 25 percent according to the relative share of full-time equivalent enrollment of students who were not Federal Pell Grant recipients who are not exclusively enrolled in distance education courses prior to the coronavirus emergency.
On April 9, 2020, the U.S. Department of Education, Office of Postsecondary Education, posted the allocations to each institution of higher education for this section of the CARES Act. The act requires institutions of higher education to use no less than 50 percent of these funds to provide emergency financial aid grants to students for expenses related to the disruption of campus operations due to the coronavirus.
Under this section of the act, the Nevada System of Higher Education will receive the following amounts. Please review entire budget reduction scenarios below: