There’s a reason some lottery winners go bankrupt. Simply having money — even a lot of it — doesn’t guarantee it will be spent wisely. Consider the Clark County School District.
Many district schools have budget problems. Vicki Kreidel, president of the National Education Association of Southern Nevada, claims that most elementary schools face shortfalls ranging from $750,000 to more than $1 million. A major cause of the red ink appears to be faulty projections of teacher costs. Individual schools control much of their own spending. When teacher salaries ended up higher than projected, schools encountered deficits. There was also an issue with funding for at-risk students.
The predictable result: calls for more money from Carson City. Before considering the merit of such pleas, let’s look at how district finances have evolved.
For the 2012-2013 school year, the district’s enrollment was slightly more than 300,000 students. Its amended final budget included at least $1.88 billion in state and local tax revenue for operations. That was more than $6,200 per student. Including the general fund and special education, the district spent $1.29 billion on salaries and wages and another $512 million on employee benefits.
Total spending was much higher after accounting for capital projects and debt service. Counting all items, the district’s total fund requirements were $3.94 billion, which included an ending fund balance of $528 million.
For the current school year, the district’s enrollment has dropped below 290,000. Despite serving fewer students, the district’s amended final budget is much higher. It’s projected to receive at least $3.3 billion in state and local tax revenue for operations. That’s more than $11,400 per student. Including the general fund and special education, the district is projected to spend $2.17 billion on salaries and another $1.05 billion on benefits.
Once again, total spending is much higher when all expenditures are accounted for. The total fund requirements are $9.01 billion, including an ending fund balance of $1.5 billion.
There are many ways to calculate per-pupil spending. Spending on capital projects and debt services is expensive and complicated to account for. Those dollars are supposed to help kids over decades.
Yes, inflation under Joe Biden. But however you slice and dice the numbers, the district’s per-pupil spending has soared over the past 12 years. Yet enrollment is falling or flat. Test scores are down. Fewer than 40 percent of third graders are proficient in reading. In math, proficiency is just 41.5 percent.
Schools do face financial pressures, as does virtually every private- or public-sector enterprise. But the idea that more money will solve the district’s woes isn’t borne out by historical reality.