MINUTES OF THE SENATE COMMITTEE ON EDUCATION Seventy-Eighth Session March 17, 2015 The Senate Committee on Education was called to order by Chair Becky Harris at 3:34 p.m. on Tuesday, March 17, 2015, in Room 2135 of the Legislative Building, Carson City, Nevada. The meeting was videoconferenced to Room 4412 of the Grant Sawyer State Office Building, 555 East Washington Avenue, Las Vegas, Nevada. Exhibit A is the Agenda. Exhibit B is the Attendance Roster. All exhibits are available and on file in the Research Library of the Legislative Counsel Bureau. COMMITTEE MEMBERS PRESENT: Senator Becky Harris, Chair Senator Scott Hammond, Vice Chair Senator Don Gustavson Senator Mark Lipparelli Senator Joyce Woodhouse Senator Moises (Mo) Denis COMMITTEE MEMBERS ABSENT: Senator Tick Segerblom (Excused) STAFF MEMBERS PRESENT: Todd Butterworth, Policy Analyst Risa Lang, Counsel Jan Brase, Committee Secretary OTHERS PRESENT: Caleb Cage, Director of Military and Veterans Policy, Office of the Governor Constance Brooks, Vice Chancellor, Nevada System of Higher Education Evan Gong, Nevada Youth Legislator, Nevada Youth Legislature, Senate District 5 Kyle Walker, Nevada Youth Legislator, Nevada Youth Legislature, Senate District 20 Kate Marshall Senate Committee on Education March 17, 2015 Page 2 Paula Berkley, Food Bank of Northern Nevada Ruben Murillo, Jr., Nevada State Education Association Phyllis Gurgevich, President and Executive Director, Nevada Bankers Association Kim McNair-Styles Teresa Yeoman Kelsey Blotter Mary Wherry Tray Abney, The Chamber Mike Randall, Vice President, COO, Silver State Schools Credit Union David Byerman Sonia Anderson, CEO, Founder, Andson, Inc. Anthony McTaggart, COO, Co-founder, Andson, Inc. Brenna Marlene Ailes Brandon Mendoza Jennifer Gaynor, Nevada Credit Union League Zhan Okuda-Lim, Nevada Youth Legislature Foundation Valerie Weiner, Chair, Nevada Youth Legislature Board of Directors and Foundation Sam McMullen, Las Vegas Global Economic Alliance; Nevada Bankers Association Ray Bacon, Nevada Manufacturers Association Nicole Rourke, Clark County School District Scott Baez, Washoe County School District Dale A. R. Erquiaga, Superintendent of Public Instruction, Department of Education Lauren Hulse, Executive Director, Charter School Association of Nevada Seth Rau, Nevada Succeeds Chair Harris: We will open the hearing on Assembly Bill (A. B.) 76. ASSEMBLY BILL 76 (1st Reprint): Makes various changes relating to the education of veterans and their dependents. (BDR 34-296) Caleb Cage (Director of Military and Veterans Policy, Office of the Governor): Assembly Bill 76 is Governor Brian Sandoval’s veterans’ education bill with three major provisions. Section 1 requires the Department of Education (NDE) to share aggregate data on military dependent children with the Interagency Council on Veterans Affairs on an annual basis. Section 2 requires Senate Committee on Education March 17, 2015 Page 3 the Nevada System of Higher Education (NSHE) to gather and share pertinent data annually. Section 4 extends provisions of higher education tuition to 5 years, rather than the currently mandated 3-year period. To be clear, section 1 relates solely to aggregate data, information we can use to identify trends and other useful material for providing services to veterans. This recommendation originated with the Governor’s Veterans Suicide Prevention Council. Our hope is to be able to make educated judgments in allocating resources and services to Nevada’s military members and their families. The Student Veterans Advisory Council requested provisions of section 2 as a means of assessing outcomes for student veterans within our system of higher education. The proposed legislation would also provide a measure of the effectiveness of recommended policies. Both data components will be part of an annual report required by the Interagency Council on Veterans Affairs. Assembly Bill 76 is one of three bills requested by the Governor’s Office related to data sharing, two of which have educational components. Assembly Bill No. 260 of the 77th Session provided a 2-year exemption from NSHE tuition charges to honorably discharged veterans. The Veterans Access, Choice and Accountability Act of 2014 requires exemption from tuition charges for up to 3 years. Section 4 of A.B. 76 proposes to extend this period to 5 years within NSHE. I have submitted an outline of my testimony (Exhibit C). Constance Brooks (Vice Chancellor, Nevada System of Higher Education): The NSHE supports A.B. 76. SENATOR WOODHOUSE MOVED TO DO PASS A.B. 76. SENATOR DENIS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. ***** Senate Committee on Education March 17, 2015 Page 4 Chair Harris: I will close the hearing on A.B. 76 and will open the hearing on Senate Bill (S.B.) 220. SENATE BILL 220: Requires instruction on financial literacy in public middle schools and junior high schools. (BDR 34-654) Senator Joyce Woodhouse (Senatorial District No. 5): I have submitted my written testimony (Exhibit D). Evan Gong (Nevada Youth Legislator, Nevada Youth Legislature, Senate District 5): As a high school student who is working to make a difference in our community, I will graduate, a product of Nevada public schools, with necessary skills in English, mathematics, science and social studies. I feel much less confident about my education in personal finance and preparation for the real world including knowledge needed for balancing a checkbook, filing income taxes, obtaining a loan or investing in the future. These are the practical skills necessary to all students regardless of their career choice. Everyone benefits from personal finance education. Financial illiteracy is a major burden in our State. During the recent recession, the Nevada economy suffered more than any other state in the Country. According to a study conducted by the University of Nevada, Reno, our State holds the highest personal bankruptcy and home foreclosure rates in the United States. Moreover, the national average for credit card debt is nearly $16,000. I have seen these struggles firsthand. As an intern for a small financial advisory firm, I was shocked to see clients who were scrambling to save 10 years before retirement age. I wonder how my generation can avoid these long-term challenges, or the short-term problem of understanding student loans. We strongly advocate for age appropriate financial literacy education starting at the middle school level. Students should gain exposure to the concepts, and teachers should have sufficient time to teach these concepts. Ideally, this course of study would be taught in the mathematics curriculum, allowing students to apply their knowledge of math concepts to real world applications. Students would understand the usefulness of the study of mathematics. Senate Committee on Education March 17, 2015 Page 5 Most importantly, we support teaching financial education effectively and not in a 2-week time span just before graduation as part of a government class. Well-planned financial literacy classes can teach students budgeting, savings, understanding a paycheck and taxes, and planning for the future. Students can be prepared to recognize and avoid the dangers of credit card debt and identity theft which can lead to lifelong consequences. Kyle Walker (Nevada Youth Legislator, Nevada Youth Legislature, Senate District 20): I am a senior at Advanced Technologies Academy in Las Vegas where I study engineering. I have been accepted to and expect to attend Embry-Riddle Aeronautical University and will study aerospace engineering. Over the past 2 years, I have taken eight advanced placement courses and am in the top 10 percent of my graduating class. According to my high school, I am college ready. My achievements are a credit to the Clark County education system and to the State. In 3 months, after graduation, I will be thrust into adulthood and will be expected to survive. I have been taught everything I need to know to be effective in post-secondary education, but not the things I need to know to be successful in life. I know nothing of taxes, debt management or financial protection. Many students who do not have the advantage of a fiscally responsible support system must rely on a 2-week course wedged into the final months of their senior year of high school. This is a time when most students have given up and stopped caring about school. According to “WalletHub,” an online resource committed to promoting fiscally responsible decision making, Nevada ranks forty-ninth in the United States in financial literacy. The Nevada State College reports 43 percent of all Americans spend more than they earn. According to the Nevada Society of Certified Public Accountants, on average as a Nation, we spend 22 percent more than we earn. I helped craft S.B. 220 because I am terrified of this reality and because I want to help prevent future generations from being robbed of the education they need. Kate Marshall: I support S.B. 220. I have submitted a research paper, “Improving Student Financial Knowledge: A Pilot Study” (Exhibit E). We adopted age-appropriate curriculum for 4,700 students in Clark County, ninth graders in 16 high schools and students in 3 middle schools. We administered pretests and posttests which consisted of 50 questions. The research received national attention and was Senate Committee on Education March 17, 2015 Page 6 presented to the U.S. Department of Treasury. The goal was to understand the effectiveness of financial literacy education. The average pretest score was 39 percent. The average posttest score was 60 percent. We found students understood paychecks, but did not know much about compound interest or saving for major purchases or retirement. They expect to simply make minimum payments on credit cards and do not understand the financial consequences. They do not understand delayed gratification, how college loans work or how to manage a bank account. I urge support for this bill and understand the goals must align with the curriculum. The pilot financial education program described in the study was age appropriate.