Higher education, enduring earlier spending limits, braces for more

In Nevada's higher education circles, Jan. 22 is the dividing line.

Before that date, higher education leaders thought the state's colleges and universities would be forced to endure more cuts, perhaps 6, 8 or 10 percent. Those cuts would be on top of 12.5 percent cuts last year and smaller cuts the year before.

It would be difficult, but the state's colleges and universities would survive.

But on Jan. 22, it became clear that Nevada's budget situation is a lot worse than anyone thought. After that the higher education officials faced a much bleaker possibility of additional cuts of 20 percent or more.

"It's certainly the most critical time in the history of the system since at least 1983," said Chancellor Dan Klaich, who has been with the system for 27 years. "As a matter of fact, nothing even comes close."

Higher education leaders have been saying for more than a year that they have "cut to the bone" already. They have eliminated classes, imposed hiring freezes, offered buyouts and raised tuition.

Now, they say, if the state Legislature and the governor impose cuts to state agencies across the board to make up for revenue shortfalls, amputations will be required.

Rumors swirl about hundreds of layoffs, enormous pay cuts, a reworking of the system's fundamental structure, more tuition increases, caps on enrollment, maybe even the closing of an entire college.

No one will deny those rumors now that the system's $810 million budget could be cut by 20 percent or more.

On Jan. 22, state leaders announced that revenues would be nearly $1 billion less over the next biennium than they had planned for, even after cutting the budget last year.

Because more than half of the state's budget goes to education, some cuts are inevitable. If cuts are imposed uniformly across state government, it would mean cuts of 22 percent everywhere.

Gov. Jim Gibbons is expected next week to call a special session of the Legislature to deal with the revenue shortfall.

James Dean Leavitt, chairman of the higher education system's governing Board of Regents, called last week for more taxes, although he called them "revenue enhancements."

"We can't do it on the backs of the students," he said.

In a memo sent to the media on Friday, Regent Ron Knecht noted that the higher education system took a harder hit in earlier rounds of cuts than other state agencies.

"Other parts of the state budget that have actually been increased or have been decreased proportionately less than (the higher education system) should bear more of the burden this round," he wrote.

College and university presidents have been holding a series of town hall meetings to answer questions from faculty, staff and students on the impending cuts. Hundreds have shown up at these meetings, many asking questions about what the cuts would mean to them, and to the students.

If the cuts are as high as they could be, higher education officials say, it will almost certainly mean:

• Another tuition increase -- The system's Board of Regents will consider tuition and fee increases on top of the 10 percent increase the board approved last year, and another 10 percent increase that is set to go into effect next year.

• Layoffs and pay cuts -- The board cannot just lay off most employees because faculty and professional staff are under contract. But the board could declare financial exigency -- akin to bankruptcy. If the board does that, they'll be able to legally negate contracts and start firing people. They'll be able to reduce salaries and impose furloughs. Payroll costs account for more than 80 percent of the higher education system's budget.

• Enrollment caps -- Fewer employees means fewer classes. Fewer classes means fewer students. Though enrollment caps are not officially in effect yet, they have become a reality anyway because classes have been cut so much there is not enough room for all of the students who want to go to college.

At the College of Southern Nevada, for example, 5,000 students were turned away last semester because there was no room for them. Enrollment systemwide grew last year by more than 3 percent, virtually all of it at the three community colleges and the state college. Most agree that the system, which has 114,000 students, will be smaller next year.

The Board of Regents is set to meet Tuesday to talk about what they might do to deal with the cuts, including these and other options.

Patty Charlton, CSN's vice president of finance, told a crowd at a town hall meeting last week that the largest cuts would put the institution where it was in 2002.

"This is a time to be angry," Klaich told that crowd. "This is a time to be outraged. This is a time to be vocal. This is a time to be talking to your legislators."

At another town hall meeting at Nevada State College, Klaich was asked about rumors that the college would be shut down entirely to save money.

The college, which enrolls about 2,500 students, was established in 2002. The college's entire state-supported operating budget of about $16 million is 2 percent of the system's overall state-supported operating budget for 2009-2010.

Klaich did not say if the board would consider such a drastic move as closing the college. But he didn't say they wouldn't do it, either.

In an interview later, the chancellor said he and the board will rule nothing out yet.

He said their priority is to preserve the system's mission, which is to educate students. The further away from that central mission a program is, the more likely it is to be cut.

He and other higher education leaders consistently say that this is a critical time in Nevada. They say higher education can lead the state out of the recession and diversify the economy.

They say it is a critical time for Nevada. Decisions being made right now will affect the state for decades.

Should the state keep taxes low, make cuts across the board, and depend heavily on the gaming and services industries, as it always has?

"That's not my vision of the future," Klaich said. "But these are the choices we're making right now."

Instead, he said, maybe the state should invest more in higher education to train a future workforce that will focus on high-tech jobs. It should embrace a knowledge-based world and rely less on the hospitality industry.

If that were to happen -- if the higher education system was spared the very worst of the cuts and escaped damaged but in repairable form -- things might not get so bad here the next time the national economy goes sour.

"In 10 years, we should have a significant and thriving research university that is the heart and soul of Las Vegas," Klaich said. "It should be the intellectual and social hub of this community. It should reach out to every aspect of this community and serve the community."

There should be a growing community college, too, that trains workers for new jobs in a new economy.

Klaich said the system should account closely for how it spends tax money. It should be sure to accommodate underrepresented groups. It should give everyone the same opportunities everyone else has, he said.

"If in 10 years we have that, I'll look back on this time with some real pride."

Contact reporter Richard Lake at rlake@reviewjournal.com or 702-383-0307.