Retirement increase puts dent in school budget

A $1.2 million increase in Public Employee Retirement benefits, the largest in 40 years, was included in the 2023-24 tentative budget approved by Douglas County School Board trustees on April 11.

Trustees conducted a public hearing on the district’s $65.8 million budget at Whittell High School in Zephyr Cove.

“We have seen an increase in PERS,” said Douglas County School District Director of Business Services Sue Estes said. “We have seen increases over the years, but not this substantial of an increase.”

Every other year, a tentative budget is built based on Gov. Joe Lombardo’s recommended budget.

In the past, the PERS cost has been split between the district and its employees.

As part of its negotiations with its employee associations, the district will cover the increase with some of its ending fund balance.

“The budget is allowing us to actually pay the full portion of that PERS so that they are not hit with any kind of increase starting in July,” said Estes. “We’re trying to show some real due diligence.”

The agreements include a 2 percent pay increase.

That means that the district will cover 33.5 percent of PERS for every employee without the employee’s salary decreasing.

“Ultimately the $1.2 million dollar increase is what the district pays for employees in July for the upcoming 2023-2024 school year,” said Estes.

The district must hold a public hearing on the final budget in May. With the Legislature in session, it’s possible that the district’s revenue will be altered after that approval.

Nevada school districts are supported by a 75-cent property tax. In Douglas County, there is also a 10-cent property tax specifically for capital improvements.