With Nevada facing a two-year deficit of up to $3 billion, Gov. Jim Gibbons wants state agencies to tell him by Wednesday what they'll do to cut their budgets in the next two-year budget cycle. The Nevada System of Higher Education's Board of Regents has effectively said, "No."At a special meeting Friday, regents instead proposed a budget that would increase state spending for higher education. The overall budget plan, which includes higher fees and more state money, would increase by 3 percent to nearly $1.2 billion.
Chancellor Dan Klaich said the demand for budget cuts was "premature," coming nearly six months before the start of the Legislature. Regent Ron Knecht, the lone dissenting vote, said expecting an increase "would be the height of self-absorption." It does put higher education system right in the middle of debate, but that's not a bad thing. In fact, it should help the state by forcing a discussion on the role of higher education in Nevada.
"Anyone who understands what's happening in politics and economics today knows we're in a fight for the heart and soul and future of Nevada," Klaich told the Las Vegas Sun's David McGrath Schwartz this week.
Indeed. It's not just education. The Legislature is going to have to decide what services state government will provide. Education, though, plays a unique role and is crucial to the state's economy.
Many supporters of higher education say that the system could serve as an engine for economic development, as universities and colleges across the nation do. Studies have shown the benefits of a quality education system. For example, regions with higher academic achievement levels do better than other areas of the country economically.
Unfortunately, Nevada hasn't done a good job funding education and, as a result, the state's schools do not compare well with other states, and that harms efforts to bring new business to the state.
Part of the problem is that for years, governors and lawmakers have put off the tough choices and haven't made an adequate investment in education.
Nevada is seeing the result of that now. After a few years of budget cuts, there isn't much left to cut in the university system's budget without talking about its mission and its size.
Improving education and making it an incubator for higher education will cost money, and with the recession, it will be difficult to make a case for the increase. It will take more than making a statement. Regents will have to show the Legislature and the public why it's important to fund education.
Education is part of the foundation of the economy. For Nevada to come back from this recession and diversify the economy, education will have to be a priority.

Copyright 2010 Las Vegas Sun