COMMITTEE TO STUDY A NEW METHOD FOR FUNDING PUBLIC SCHOOLS (SENATE BILL 11, 2011 LEGISLATURE) Friday, April 20, 2012, 9:00 a.m. Grant Sawyer State Office Building 555 East Washington Avenue Las Vegas, Nevada Room 4401 Videoconference to: Legislative Building 401 South Carson Street Carson City, Nevada Room 4100 STATE OF NEVADA LEGISLATIVE COUNSEL BUREAU LEGISLATIVE COMMISSION (775) 684-6800 INTERIM FINANCE COMMITTEE (775) 684-6821 STEVEN A. HORSFORD, Senator, Chairman DEBBIE SMITH, Assemblywoman, Chair TAMMY GRACE, Acting Director, Secretary Rick Combs, Fiscal Analyst Mark Krmpotic, Fiscal Analyst CARSON CITY OFFICE: Legislative Building, 401 S. Carson Street Carson City, Nevada 89701-4747 LAS VEGAS OFFICE: Fax No.: (775) 684-6600 555 E. Washington Avenue, Room 4400 TAMMY GRACE, Acting Director (775) 684-6800 Las Vegas, Nevada 89101-1049 BRENDA J. ERDOES, Legislative Counsel (775) 684-6830 Fax No.: (702) 486-2810 PAUL V. TOWNSEND, Legislative Auditor (775) 684-6815 BRIAN L. DAVIE, Legislative Services Officer (702) 486-2800 DONALD O. WILLIAMS, Research Director (775) 684-6825 MEETING NOTICE AND AGENDA Name of Organization: COMMITTEE TO STUDY A NEW METHOD FOR FUNDING PUBLIC SCHOOLS (S.B. 11, 2011 LEGISLATURE) Date and Time of Meeting: Friday, April 20, 2012, 9:00 a.m. Place of Meeting: Grant Sawyer State Office Building Room 4401 555 East Washington Avenue Las Vegas, Nevada Note: Some members of the committee may be attending the meeting and other persons may observe the meeting and provide testimony through a simultaneous videoconference conducted at the following locations: Legislative Building Room 4100 401 South Carson Street Carson City, Nevada If you cannot attend the meeting, you can listen to or view it live over the Internet. The address for the Nevada Legislature website is http://www.leg.state.nv.us. Click on the link “Live Meetings – Listen or View.” Note: Please provide the secretary with electronic or written copies of testimony and visual presentations if you wish to have complete versions included as exhibits with the minutes. A G E N D A Note: Items on this agenda may be taken in a different order than listed. Two or more agenda items may be combined for consideration. An item may be removed from this agenda or discussion relating to an item on this agenda may be delayed at any time. A. ROLL CALL. B. PUBLIC COMMENT. (Because of time considerations, the period for public comment by each speaker may be limited, and speakers are urged to avoid repetition of comments made by previous speakers.) 1 For C. APPROVAL OF MINUTES OF THE MARCH 2, 2012, MEETING. Possible Action D. REPORT FROM STAFF ON PROPOSALS SUBMITTED BY PROSPECTIVE CONSULTANT(S) TO ASSIST THE COMMITTEE IN THE STUDY OF A NEW METHOD OF FUNDING PUBLIC SCHOOLS IN NEVADA. For E. DISCUSSION AND SELECTION OF A CONSULTANT(S) TO ASSIST THE Possible COMMITTEE IN THE STUDY OF A NEW METHOD FUNDING PUBLIC SCHOOLS Action IN NEVADA AND AUTHORIZATION OF STAFF TO NEGOTIATE A CONTRACT(S). F. REVIEW OF TIMELINE FOR CONDUCTING THE STUDY. G. PUBLIC COMMENT. (Because of time considerations, the period for public comment by each speaker may be limited, and speakers are urged to avoid repetition of comments made by previous speakers.) H. ADJOURNMENT. Note: We are pleased to make reasonable accommodations for members of the public who are disabled and wish to attend the meeting. If special arrangements for the meeting are necessary, please notify the Fiscal Analysis Division of the Legislative Counsel Bureau, in writing, at the Legislative Building, 401 South Carson Street, Carson City, Nevada 89701-4747, or call the Fiscal Analysis Division at (775) 684-6821 as soon as possible. Notice of this meeting was posted in the following Carson City, Nevada, locations: Blasdel Building, 209 East Musser Street; Capitol Press Corps, Basement, Capitol Building; City Hall, 201 North Carson Street; Legislative Building, 401 South Carson Street; and Nevada State Library, 100 Stewart Street. Notice of this meeting was faxed for posting to the following Las Vegas, Nevada, locations: Clark County Government Center, 500 South Grand Central Parkway; and Grant Sawyer State Office Building, 555 East Washington Avenue. Notice of this meeting was posted on the Internet through the Nevada Legislature’s website at www.leg.state.nv.us. 2 2 I:\Interim 2012\New Method of Funding Public Schools SB 11\April 20 2012 meeting\K-12Funding_Agenda_4-20-2012_3-28-12.docx MINUTES OF THE MEETING OF THE COMMITTEE TO STUDY A NEW METHOD FOR FUNDING PUBLIC SCHOOLS Senate Bill 11, 2011 Legislature March 2, 2012 The second meeting of the Committee to Study a New Method for Funding Public Schools was held at 9:00 a.m. on Friday, March 2, 2012, at the Grant Sawyer State Office Building, 555 East Washington Avenue, Room 4401, Las Vegas, with videoconference to the Nevada Legislative Building, 401 South Carson Street, Room 4100, Carson City, Nevada COMMITTEE MEMBERS PRESENT IN LAS VEGAS: Assemblyman Marcus Conklin, Chair Senator Moises Denis, Vice Chair Assemblywoman Marilyn Dondero Loop COMMITTEE MEMBERS PRESENT IN CARSON CITY: Senator Greg Brower Assemblyman Ira Hansen COMMITTEE MEMBERS ABSENT: Senator Shirley A. Breeden (Excused) STAFF: Mark Krmpotic, Senate Fiscal Analyst, Fiscal Analysis Division Rick Combs, Assembly Fiscal Analyst, Fiscal Analysis Division Julie Waller, Senior Program Analyst, Fiscal Analysis Division Eileen O’Grady, Chief Deputy Legislative Counsel Kristin Roberts, Senior Principal Deputy Legislative Counsel Mindy Martini, Senior Research Analyst Becky Lowe, Committee Secretary EXHIBITS: Exhibit A Meeting Packet and Agenda. Exhibit B Excerpt from the Federalist Papers provided by Knight Allen A. ROLL CALL. Chairman Marcus Conklin called the meeting to order at 9:16 a.m. The secretary called roll; all members were present except Senator Breeden who was excused. 3 B. PUBLIC COMMENT Mr. Knight Allen presented the members with an excerpt from the Federalist Papers Number 78 written by Alexander Hamilton (Exhibit B). He thought the ideas in the excerpt applied to what the Committee was considering. Reading from the excerpt, he said “The judiciary has no influence over either the sword or the purse; no direction either of the strength or of the wealth of the society; and can take no active resolution whatever.” Mr. Allen said that legislators have a passion for education and want to be up-to-date in terms of funding for education. He said the Legislature created the Committee to Study a New Method for Funding Public Schools, and the Committee would meet and be presented with information about education within the state. The Committee would then look for an outside view, which was an almost fatal error in judgment. He said the question of equity always returned to the issue of funding. He expected the report to conclude that the state did not adequately fund education, even to the point of perhaps violating the constitution. He said that report would be presented to the full legislature, which would pass any recommendations, political realities being what they are. Mr. Allen said at that point people with a real passion for education, who do not like the Legislative Branch of government, would go to court and find a friendly judge to decide that the state was not living up to its responsibilities, and take control of education funding in the state. Mr. Allen predicted that decision would be appealed in the Nevada Supreme Court, which was also quite hungry to grab the power of the purse away from the Legislature. The Supreme Court would rule that the state was not funding education properly, and seize the power of the purse from the Legislature. He said this was not a “Nostradamus” type prediction. He noted that Washington State recently lost its legislative power of the purse, as well as New Jersey, Kansas, Texas and several other states. Mr. Allen said Agenda Item E, which proposes to contract with an outside consultant for a study will provide those that do not like the Legislature with the necessary ammunition to take the power of the purse away from the Legislature. He said the Committee cannot let that happen. He said there was more than enough talent to perform such a study within Nevada. As an alternative, he suggested that the Brookings Institution and the Nevada Policy Research Institute testify before the Committee on the topic of school funding at the same meeting, and take questions from the Committee members. Mr. Allen quoted from a newspaper article saying that according to the U.S. Department of Education, Nevada ranked 39th in funding, with $10,377 in support per student in 2010. He noted that was not in agreement with the statement that Nevada ranked 50th with about $6,000 in support per student. He did not know how the federal government could rank the state 39th, while others in the state ranked Nevada 50th. Mr. Allen said these questions have to be answered by people in Nevada. He urged the Committee 2 4 not to encourage those whose ultimate goal and objective was to get the courts to say “you will do what we tell you to do” when it comes to financing education. Mr. Allen said the power of the purse was with the Legislature. The only check on the Legislature’s authority to decide what is equitable and adequate in Nevada was the Executive Branch veto, which could be overridden. If the Legislature loses that authority, as has happened in other states, the system of government would not be what it is supposed to be. C. APPROVAL OF MINUTES OF THE JANUARY 24, 2012, MEETING. SENATOR DENIS MOVED TO APPROVE THE MINUTES OF THE JANUARY 24, 2012, MEETING OF THE COMMITTEE TO STUDY A NEW METHOD FOR FUNDING PUBLIC SCHOOLS.