Assembly Bill 191, which would establish collective bargaining for NSHE professionals in state law, is making steady progress through the 83rd session of the Nevada Legislature. Following the first hearing in the Assembly's Government Affairs Committee on Tuesday, March 4th, the bill will advance through a series of hearings before reaching the full Assembly.

With only slight updates, this measure is similar to AB224, the bill that passed with bipartisan support during the previous legislative session but was vetoed by the Governor at the end of the session in 2023. As with the previous session, this bill would codify the right of NSHE faculty (and graduate students) to collectively bargain, as well as provide us with access to resources like the Employee-Management Relations Board (EMRB) that other public employees, including classified staff at NSHE, enjoy.

NFA representatives, working with the bill sponsor, Assemblymember Natha Anderson, see this as a necessary step to ensure that NSHE faculty have a shared foundation and guarantee for what we can start to negotiate in collective bargaining. For institutions that already have collective bargaining agreements, passing this bill means that the next time they negotiate a new contract, they’ll be able to include a step to resolve grievance appeals through arbitration. The EMRB will also be available to resolve contract disputes. Faculty at institutions that don't already engage in collective bargaining will have a well-defined process if they choose to organize into a bargaining unit in the future.

In advocating for this bill again this session, NFA officers emphasize that faculty working conditions are student learning conditions, and that faculty, administrators, and students all benefit when faculty have an effective say in the policies and processes that guide our important educational work:

• Having mutually agreed upon rules and expectations between faculty and management means better faculty retention;
• Retention contributes to higher quality of education and focus on our students;
• Faculty ability to speak for and advocate for ourselves and students without fear of retaliation;
• Clear and consistent policies mean conflicts can be addressed efficiently and fairly–letting us focus our resources on education and research and not on navigating workplace grievances.

The Nevada Graduate Student Workers/UAW, who have organized graduate student assistants at UNR, UNLV, and DRI, have joined NFA's efforts. They’ve been part of updates to the bill, ensuring that graduate students employed by NSHE can form communities of interests for the sake of collective bargaining. Currently, the Board of Regents policy that allows collective bargaining–not substantially updated since 1990–does not include graduate students at all.

NFA's AB 191 Fact Sheet describes the provisions of the bill.

We encourage NFA members to reach out to their Assemblymember or Senator to let them know you are in support of AB 191.

Collective Bargaining may be new to you, but it's not new to higher education, or the NFA. Below are the questions we get asked most frequently. If you have more questions, please direct them to your NFA Chapter!

What’s collective bargaining?

Collective bargaining is the process of workers coming together to negotiate a contract with their employers. A collectively bargained contract sets the terms of employment within the confines of the law. It can address issues like health and safety, pay, benefits, leave time, and how problems will be dealt with when they inevitably come up.

Collective bargaining isn’t something that happens to you…it’s something that happens WITH you, where your issues and concerns are brought together with those of your peers to address problems. To learn more, you can read here: https://aflcio.org/what-unions-do/empower-workers/collective-bargaining

Do I have a collective bargaining agreement (CBA)?

If you’re an academic or (non-managerial) administrative faculty member at TMCC, or academic faculty member at WNC or CSN, you are covered by a collective bargaining agreement. You’re represented by your campus NFA chapter. You can find current CBAs here: https://www.nevadafacultyalliance.org/page-1464388

Who is NFA?

NFA is the Nevada Faculty Alliance, it’s been the independent association of faculty since 1983. We are an organization AT the universities and colleges of the NSHE system but not OF them. That means NFA answers to no one but our members: not the Deans, not the Presidents, not the Regents, not the Governor. We advocate for faculty at all chapters, and bargain collectively for them at TMCC, WNC, and CSN.  The NFA is the Nevada affiliate of the American Association of University Professors and the American Federation of Teachers. 

Ok, I’m on board, how do we get a collective bargaining agreement?

If you’re at TMCC, WNC, and CSN, you have a CBA. Get involved by attending an NFA meeting and volunteering!

If you’re at Nevada State University, there is a push for a CBA right now! Contact your NFA chapter to get involved and learn about next steps.

If you’re at GBC, UNLV, or UNR, you don’t currently have a CBA. We know from our internal polling that more than 75% of faculty are interested in pursuing a CBA on these campuses. Regardless of whether we pursue a CBA at present, the NFA is fighting for faculty on every campus, and we need you. One of the things we are working on is making it EASIER to form a CBA, and have that CBA be respected, if a majority of faculty want it. More details on that below.

Is it worth joining NFA if my campus doesn’t have a CBA yet?

Absolutely! NFA fights for faculty regardless of CBA status. We maintain an active presence at the legislature and give public comment at the Board of Regents. We fight for COLAs, higher ed budgets, better working conditions, protecting PERS and PEBP, and academic freedom across the state. Our legal defense services help faculty facing issues related to their jobs.

Perhaps most importantly at this moment is our affiliation to the American Association of University Professors (AAUP) and the American Federation of Teachers (AFT). AAUP is at the forefront of fighting overreach from the current federal administration (and any future administration that wants to hamstring academic freedom). From the courts to the streets, AAUP is organized to stop the assault on academic research, with successes to show for it.

I'm at a campus without a CBA. How are my worker's rights protected?

That depends, on a lot. Different institutions have their own practices and places where policies live. Some academic units have bylaws with some policies, while other policies live in administrative manuals or other rule books (names of these things vary by campus). Depending on the structure of the institution, you might have department bylaws, college bylaws, university bylaws, AND all of the NSHE Board of Regents Code and Policy rules and regulations on top of other policies and requirements from your institution's administration. Depending on how frequently any of these are updated, they might conflict or need extra interpretation (typically by the President, Chancellor, or their (legal) designee).

We know that these processes can have varying impacts. We know that some grievance processes have failed faculty at some institutions. NFA works with faculty at EVERY campus, but without the protections of a contract, we can’t guarantee that we can be by your side (for instance in a disciplinary meeting). That would require a CBA to enforce what are called Weingarten Rights.

What’s the difference between forming a union and getting a collective bargaining agreement?

Forming a union is a right, protected by the US constitution, as well as domestic and international law. Unions are a vehicle for speech, peaceful assembly, and petition, all First Amendment rights. Public sector unions are recognized in Nevada law, and many public sector employees in Nevada enjoy collective bargaining rights (including teachers and law enforcement).

Forming a union is NOT the same as having a collective bargaining agreement, or contract, however. That requires both the workers and the employers to agree to terms. Currently, faculty in the NSHE system have a limited right to collectively bargain. It’s given to us by our employers, and has been in NSHE Policy since the 1970s (although the first bargaining unit to form was in the early 1990s at TMCC). This is the basis on which our three collective bargaining chapters have their contracts.

Most public sector workers in Nevada (most city, county, and state workers like firefighters and law enforcement and our Classified staff colleagues at NSHE) have their rights in statute (law). Not only is that a higher level of protection (management can’t pull the rug out from under them) but it also authorizes things that NSHE policy cannot. These workers can take issues to the Government Employee-Management Relations Board for final decisions. Under our current system, the final decision is with the Regents. Public sector workers can also use tools like arbitration if they reach an impasse with management. If faculty reach an impasse the decision goes to…you guessed it, our bosses!

That’s why the NFA is working to enshrine a right to collectively bargain in Nevada statute. Right now, our Collective Bargaining Bill is going before committees in the Nevada Legislature. If it passes and is signed by the Governor (big if, he vetoed it last time) professional, unclassified workers (basically, faculty, LOAs, and graduate assistants) would gain the right to collectively bargain in statute. Our rights would be more secure, with better outcomes both for chapters that already collectively bargain, and those who might want to in the future. 

What about ‘Right to Work’ I thought that meant there are no unions in Nevada?

Not only does Nevada have unions, it has had a higher percentage of unionized workers than the US average for over 30 years! Nevada is a union state in many ways. Right to Work is a fairly narrow law. It states that workers can’t be compelled to pay union dues, or make union membership a requirement of employment. Often times, this means unions have to protect workers whether they pay their dues or not. Of course, we’d always rather workers see the value of their union and pay their dues willingly. Right to work laws have no impact on your right to gather together with your colleagues to make improvements in your workplace.

The NFA will continue its decades-long advocacy at the Legislature in the 2025 session that began on February 3rd, as the independent voice for faculty and other professional employees of Nevada's public colleges and universities.  

Here are our highest priorities as approved by the NFA State Board, first the legislative bills we are supporting followed by budget priorities:

Legislation

For Better Higher Education Management: Collective Bargaining Rights! (AB 191)

• Provide collective bargaining rights for NSHE professionals. The 7,200 NSHE rank-and-file faculty are the largest group of public employees in Nevada without collective bargaining regulations in state law.
• Three community colleges have organized to collectively bargain and graduate student workers have rallied support for unionizing.
• Under the current system, management at NSHE dictates the terms of bargaining. NSHE employee associations should have the right to use the Employee-Management Board like other public employees in Nevada.
• The ability to have a say in working conditions leads to better teaching, better student outcomes, and more effective shared governance. Faculty working conditions are student learning conditions!

For Better Higher Education Governance: Mandatory Board of Regents Training!

• Require training for Regents on policy, budgets, open-meeting laws, nondiscrimination, student life, and shared governance to improve Regent knowledge and decision-making.
• While voters retained the Board of Regents as the constitutional higher education governing body, training will promote effective governing and oversight.
• Nevada requires training for K-12 Trustees. NSHE Regents should be equally responsible and accountable to citizens.

Benefits for State Employees Now AND When They Retire: Restoring Retiree Health Benefits! (AB 188)

• Restore retiree health benefits for state employees hired after 2011 and make benefits for Medicare and non-Medicare retirees equitable.
• Nevada state employees who were hired after the Great Recession deserve the same benefits as those hired in good economic years.
• Retiree health benefits for state employees are needed to compete with other Nevada public employers. Reward state public service with retiree benefits.

Budget Priorities

Invest in Campus Safety

• NFA supports NSHE’s ask for both one-time and ongoing funding for critical security to keep our campuses open and serving the public. We must update safety and security so that senseless violence may never again shatter our community. GovRec funding is 72% below what NSHE estimates is necessary.

New Funding Formula

• NFA welcomes changes to the funding formula to support wrap-around services to students, with phased-in implementation to ensure no institution takes a budget cut in the transition.

Full Funding of Cost-of-Living Adjustments for State-Supported NSHE Budgets

• Prior to 2019, NSHE COLAs were funded at 80% (as most other state agencies), but were funded at about 64% since then.
• The cost that isn’t covered by the state is largely covered by student fees--lower state funding means shifting the burden to students or having fewer faculty and course sections to support their education.

5% + 3% Cost-of-Living Adjustments for State Employees

• To maintain current take-home pay after the retirement contribution increase (1.75% on 7/1/2025) and inflation running over 2.5%, COLAs for state employees of 5% FY2026 and 3% in FY2027 are required.
• The purchasing power of salaries for NSHE faculty continues to fall, which means losing top-quality faculty to other states that invest in higher education professionals.

Contact: Kent Ervin, NFA Director of Government Relations, Kent.Ervin@NevadaFacultyAlliance.org

Contributed by Ian Hartshorn, Ph.D., UNR-NFA

The Nevada Faculty Alliance notes with concern the decision of the new administration to freeze all meetings, travel, communications, and hiring within the National Institutes of Health (NIH) until approved by new political appointees.  These actions have a chilling effect on vital academic research that not only serves to protect the health of the American people but generates significant economic benefit to our state.

The NIH is a part of the US Department of Health and Human Services and serves as the nation’s medical research agency. The agency has an annual budget of more than $47 billion dollars and runs multiple programs important to academic training and research across the country.

The Nevada System of Higher Education (NSHE) is the largest recipient of NIH Grants in Nevada. NIH awards exceed $30 million in the state, supporting 977 jobs and generating over $200 million in economic activity. A politicized slow-down of these vital funds will harm researchers, universities, and our state.

Early reports suggest that the Trump Administration may seek to use NIH funding as a bargaining chip for other desired reforms of the country’s higher education system. The NFA rejects further politicization of academic research. Grants from the NIH undergo a rigorous review process, a process now halted for political intervention. Grants should be funded by scientific merit, not by a political litmus test.

The Nevada Faculty Alliance calls on our Nevada Congressional delegation to exercise their responsibility of budget oversight, and our Senators’ constitutional obligation of advice and consent on presidential appointments to ensure that the new administration’s decisions align with the NIH mission and broader goals of academic integrity and freedom.

The NFA stands with any researchers impacted by these decisions, and encourages campus administration, the NSHE regents, and state leaders to do all they can to encourage a timely resumption of vital NIH programs. We encourage education professionals to register their objections with the White House, and your representatives in Congress.

We urge all NFA members who might be impacted by the NIH activity suspensions, or who are aware of their effects on peers and students, to share their experiences and the extent of these impacts by submitting impact statements to their NFA Chapter Presidents. This information is vital for our NFA representatives to effectively communicate the adverse effects and repercussions of the NIH suspensions to our federal and state officials, as part of our ongoing advocacy efforts for our faculty and NSHE institutions.

Sources

https://www.science.org/content/article/trump-hits-nih-devastating-freezes-meetings-travel-communications-and-hiring

https://www.unitedformedicalresearch.org/nih-in-your-state/nevada

https://www.aaup.org/news/statement-aaup-president-todd-wolfson-national-institutes-health-freeze

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UPDATE:  The PEBP Board voted to retain the current HMO/EPO plan option and plan design, at least for FY2026.  They also accepted the bid for the Southern HMO plan from Health Plan of Nevada, the incumbent provider, contingent on successful contract negotiation.  Thanks to all members and other state employees who gave public comment!

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At the Thursday, January 23, meeting of the Public Employees' Benefits Program Board, the Board will consider PEBP staff's recommendation to eliminate the HMO/EPO plan options.  The southern-Nevada HMO (Health Maintenance Organization) option has been chosen by over 3000 state employees. The northern Nevada EPO (Exclusive Provider Organization) is option used by another 3000 employees.  The HMO/EPO plan options provide certainty in copays for health services in exchange for higher monthly premiums, compared with the high-deductible and low-deductible plan options, that are borne entirely by the employee with no additional state contribution.  NFA's written public comment opposing the elimination of the HMO/EPO is copied below.

To object to the elimination of the HMO/EPO, participants may provide public comment by telephone at 9:00 am on Thursday, Jan. 23, using the instructions in the agenda:

There are two agenda items designated for public comment. If you wish to provide verbal public comment during those agenda items, please follow the instructions below:

Option #1 Join the webinar as an attendee https://us06web.zoom.us/j/87092730987 This link is only for those who want to make public comment. If you are just listening to the webinar, please use the YouTube Link located in the “Video Conferencing” field above.

Option #2 Dial: (669) 900-6833. When prompted to provide your Meeting ID, please enter: 870 9273 0987 then press #. When prompted for a Participant ID, please enter #.

Participants that call in will be muted until it is time for public comment. A moderator will then unmute callers one at a time for public comment. To resolve any issues related to dialing in to provide public comment for this meeting, please call (775) 684-7016 or email jcrane@peb.nv.gov 

NEVADA FACULTY ALLIANCE
840 S. Rancho Dr., Suite 4-571
Las Vegas, Nevada 89106

Date:   January 20, 2025

To:      PEBP Board Members

From: Kent Ervin, Director of Government Relations, Nevada Faculty Alliance

Subject:   HMO/EPO plan options

We have reviewed the Segal presentation on “EPO and HMO Considerations”.  We appreciate the response to some of the Board’s requests for additional information on the EPO and HMO plans and possible modification to the low-deductible PPO plan. Unfortunately, the presentation is extremely one-sided and biased. It argues for a certain outcome, the elimination of the HMO and EPO plan options, rather than providing balanced information for the Board’s consideration.  Among the issues with the report:

• The decline in EPO enrollment is provided, but the HMO enrollment trend –which is relatively stable—is missing (page 3).
• Projecting high future cost trends for the HMO (much higher than the self-funded plans) without reference to the actual bids from the recent Request for Proposals (page 5).
• Comparing the High-Deductible, Low-Deductible, and EPO plans but not the HMO plan or blended HMO/EPO plan (pages 8-11).
• Comparing plan design with other states but not with other public employers in Nevada, with whom the State competes for employees (pages 13-19).
• For the PPO 1 and PPO 2 options, no estimates of the total rate or employee premiums in comparison with the High-Deductible, current Low-Deductible, HMO, EPO, or blended HMO/EPO plans (pages 21-23). The “cost savings” appear to come mostly from decreased payments on participant claims and the high projected trend for the HMO. 
• ·       No estimates of total rates or employee premiums for Plan Year 2026, which should be possible for all options since the recent release of the Executive Budget with PEBP subsidies per employee (pages 24-25). What is the savings in total rate or employee premiums with the addition of a $500/$1000 deductible in PPO option 2 compared with PPO option 1 or the current Low-Deductible PPO?

The best solution is continuing the three current plan options for Plan Year 2026, with further study of plan design after open enrollment and after the legislative session.Alternatively, a decision should be deferred to the March rate-setting meeting with presentation of full rates and premiums for all options for the Board’s consideration.

My comments submitted on January 7, before the canceled board meeting on January 16 and release of the Segal report, are still valid and are repeated here:

As you consider plan design changes this month, the Nevada Faculty Alliance would like to emphasize the importance of the HMO/EPO plan option to many of our participants. 

• The HMO/EPO plan provides certainty in out-of-pocket costs, which some participants are willing to pay for through higher monthly premiums.
• The southern HMO especially includes network providers who are essential to the health and well-being of their patients, including mental and behavioral health, and the productivity of employees. Disruptions to provider access must  be avoided. Are providers within the various networks actually accepting new patients?
• Because the employer contributions (state subsidies) are identical for all three plan options, PEBP has no extra costs to provide the HMO/EPO option other than administrative oversight.
• Because the high-deductible plan, the low- (or zero-) deductible plan, and the EPO option are underwritten as a single risk pool, migration between the self-funded options should not affect overall costs or the viability of individual options.
• We are not privy to the HMO Request For Proposals results, but actual competitive bids are more reliable than consultant projections. Ideally, a cost-effective statewide HMO with a broad network would be chosen.
• Major plan design changes should be deferred to Plan Year 2027, after the legislative session and to see how enrollment trends stabilize several years after the introduction of the low-deductible middle plan option.

We surveyed all rank-and-file faculty at the seven NSHE colleges and universities in November, with a stellar 40% response rate (survey results on benefits questions). Our faculty rate lower out-of-pocket costs for health care as slightly more important than lower monthly premiums.  While access to the low-deductible plan option is most popular (88% rate it as somewhat or very important), 65% of respondents say the availability of HMO/EPO is somewhat or very important.  

Retain the HMO/EPO option. Thank you for your consideration.

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The Nevada Faculty Alliance is the independent statewide association of professional employees of the colleges and universities of the Nevada System of Higher Education. The NFA is affiliated with the American Association of University Professors, which advocates for academic freedom, shared governance, and faculty rights, and the American Federation of Teachers/AFL-CIO, representing over 300,000 higher education professionals nationwide. The NFA works to empower our members to be wholly engaged in our mission to help students succeed.

Governor Lombardo’s recommended Executive Budget for FY2026 and FY2027, known as “GovRec”, was issued with his State of the State Address on January 15, 2025. The budget outlook for NSHE colleges and universities and NSHE employees is . . . mixed.

The Good

GovRec increases the overall NSHE budget from $2.48 billion in the 2023-2025 biennium to $2.86 billion for 2025-2027, a 15.1% increase for the biennium or 7.3% annualized. Student fees and other revenues are projected to increase more (18.0%) than state appropriations (13.8%). The fraction of the total NSHE budget funded by state appropriations will decrease from 69.1% to 68.4%. The increases primarily go to fund inflation in personnel costs and utilities and enrollment growth, not new programs, improved staffing ratios, or enhancements.

NSHE Overall Budget [1]
Year	General Fund Appropriations	Student Fees & Other Revenue	Total Revenue
FY2024 actual	$816,736,844	$378,039,730	$1,194,776,574
FY2025 budget	$898,940,295	$387,835,109	$1,286,775,404
FY2026 GovRec	$979,845,771	$440,554,453	$1,420,400,224
FY2027 GovRec	$972,202,485	$463,198,572	$1,435,401,057
Biennium-over-Biennium Change
2025-27 vs 2023-25	13.8%	18.0%	15.1%

For the main state-supported instructional budgets [2] of the seven NSHE colleges and universities, state appropriations increase 15.9% overall biennium-over-biennium, ranging from 7.3% at GBC to 25.8% at WNC. The variation among the institutions results from differential enrollment growth and the partial implementation of the new NSHE funding formula.

State Appropriations for NSHE Instructional Operating Budgets
Institution	FY24 actual	FY25 budget	FY26 GovRec	FY27 GovRec	Change 2023-25 to 2025-27
UNLV	$233,991,397	$253,973,037	$292,207,372	$288,094,171	18.9%
UNR	$160,582,630	$173,121,548	$192,367,866	$191,207,189	14.9%
NSU	$32,863,186	$38,814,685	$39,015,309	$38,960,218	8.8%
CSN	$117,591,040	$125,133,833	$133,786,731	$133,143,032	10.0%
GBC	$17,101,283	$18,105,687	$18,780,503	$18,996,114	7.3%
TMCC	$39,918,718	$42,777,073	$51,638,274	$51,415,387	24.6%
WNC	$16,053,002	$19,333,255	$22,148,208	$22,374,812	25.8%
TOTAL	$618,101,256	$671,259,118	$749,944,263	$744,190,923	15.9%

The recommendations of the Ad Hoc Committee on Higher Education Funding are partially implemented in GovRec, phased-in over the two years of the biennium. The enhancements for each institution are shown in the table below (including the additions to the Small Institution Factor for GBC and WNC). The two comprehensive universities are held harmless; otherwise, funding would shift from them to the community colleges. NSHE estimated that  the full implementation of the new formula would cost $21.1 million per year.  The formula implementation figures represent a phase-in with 20% implementation in year 1 and 40% in year 2 of the calculated amounts for the small institution factor update and the new funding distribution formula, except without offsets for UNLV and UNR [3].

Formula Funding Enhancements in GovRec
Institution	FY2026	FY2027
UNLV	$0	$0
UNR	$0	$0
NSU	$963,120	$2,177,813
CSN	$1,991,237	$4,326,348
GBC	$492,355	$1,047,741
TMCC	$626,826	$1,279,916
WNC	$472,048	$908,700
Total	$4,545,586	$9,740,518

Other mostly good items:

GovRec funds the already-awarded cost-of-living adjustments (COLAs) of 12% in FY2024 and 11% in FY2025 at 80% for 2025-2027. The COLAs for NSHE were not fully funded by the 2023 legislature, with funding at only about 65%, versus the 80% funding level for most state agencies. NSHE had to come up with the balance through a combination of budget cuts, increased student fees, and a three-month delay for faculty COLAs in FY2025. GovRec adds the funding back at the 80%, although as an enhancement item not in the base budget.

The funding of enrollment growth measured by Weighted Student Credit Hours (WSCH) is adjusted for the COLAs, increasing the per-WSCH amount from $173.29 to $208.99. In the past, the enrollment growth maintenance item was usually funded without an increase to the per-WSCH amount.

Modest funding for campus safety improvements is included in GovRec, with a one-time appropriation of $11 million. NSHE requested $38 million in one-time funding and $7 million per year in ongoing funding. GovRec thus underfunds campus safety and security improvements requested by NSHE by 72% and makes no provisions for continuing funds for the Southern and Northern Commands of University Police Services..

The nursing education expansion funded in 2023 was continued with one-time appropriations of $10 million per year.

The UNLV School of Medicine expansion funded with one-time appropriations in 2023 was continued as part of its base budget.

The budgets include increases for inflationary utilities costs and for fringe benefits including PEBP and retirement contributions.

The Bad

The Governor has not recommended any COLAs for state employees in FY2026 or FY2027. Because mandatory retirement plan contributions will increase by 1.75%, take-home pay will decrease. With inflation running at 2.5% or higher, COLAs of 5% in FY2026 and 3% in FY2027 are needed to avoid declines in real take-home salaries.

No NSHE capital improvement projects are included in GovRec, not even planning funds. Deferred maintenance is funded at only $15 million statewide, which is totally inadequate. In 2023, no NSHE building projects were funded but $50 million in one-time funds was allocated to deferred maintenance.

Graduate Medical Education is funded at $25 million per year, which should be a good thing but it is one-time funding, explicitly for 2025-2027 only, with non-state funds through the Governor’s new Public Health Authority and therefore does not provide for a sustainable increase in capacity.

The Public Employees’ Benefits Program is being moved into the new Public Health Authority along with Medicaid and the American Care Act Insurance Exchange. PEBP is an employee benefit program, not a public health program; it belongs with human resources and benefits. PEPB is currently a semi-autonomous agency under the state Department of Administration supervised by its own board appointed by the Governor.

Many one-time appropriations from the 2023 session were not continued in GovRec.

The Ugly

Upon release of the Governor’s Executive Budget, Assembly Speaker Steve Yeager expressed concern that the budget is not balanced: “It looks like ongoing expenditures are more than revenues. The budget that was brought to us actually has a structural deficit.” The statewide general fund total appropriations in GovRec is $12.769 billion for the biennium. In December 2024 the Nevada Economic Forum forecast revenue of $12.433 billion. That implies a deficit of $335.4 million for the biennium ($233.3 million in FY2026 and $102.1 million in FY2027). Because state law requires a balanced budget based on the Nevada Economic Forum forecast (the final forecast is in May 2025), the legislature will have to resolve this discrepancy. We will be interested to hear explanations from the Governor’s Finance Office at its presentation to the Legislative Commission Budget Committee on Tuesday, January 21.

Also ugly:

The work program budgets for FY2025 in GovRec, which are used as the base budgets for the next biennium, do not include the full 12%+11% COLAs already awarded to NSHE employees. Although GovRec includes the COLAs as an enhancement funded at 80%, other state agencies apparently have the actual salaries for employees including past COLAs automatically included in the base budgets.

GovRec funds PEBP claims assuming medical, prescription drug, and dental inflation will be 3.55% in FY2026 and 3.50% in FY2027, lower than the trend projection from PEBP’s actuary of 6.75% for medical and prescription drugs and 3.0% for dental. That virtually guarantees future deficits.

[1] “FY2024 actual” represents actual revenue received in fiscal year 2024 from the annual NSHE State Operating Budget Budget-to-Actual Comparison Report. “FY2025 budget” represents expected revenue for fiscal year 2025 from the annual NSHE State-Supported Operating Budget. “GovRec” is Governor Lombardo’s recommended budget in the 2025-2027 Executive Budget as proposed in January 2025 to the 2025 Legislature. All revenues in GovRec are matched by budgeted expenditures.

[2] State-Supported Operating Budgets include the main instructional budgets of the seven NSHE colleges and universities. There are a total of 31 state-supported NSHE programs that are separately budgeted by the State, including the educational institutions, professional schools, Desert Research Institute, System Office, statewide programs, and other entities, with restrictions against transferring funds between the separate budgets. There are also many Self-Supporting Budgets funded by student fees, user fees, sales, and other revenue, without any state funding.

[3] Phase-in information updated 1/20/2025 per information from NSHE.  The new formula shifts from 100% WSCH (weighted student credit hours) to 75% WSCH, 10% student enrollment attributes, and 15% outcome-based factors. Additional information on the new funding formula.

Prepared by Kent Ervin, Director of Government Relations, Nevada Faculty Alliance. Corrections or amplifications are welcome. Contact: Kent.Ervin@NevadaFacultyAlliance.org, 775-453-6837.

Inflation and Retirement Contribution Increases Reduce Value of Take-Home Pay

Mandatory retirement contributions for state employees including NSHE faculty are slated to increase on July 1, 2025, by 1.75% for the employee and 1.75% for the employer.  Inflation is running at 2.5 to 3.0%. Just to maintain the purchasing power of our current salaries, the Nevada Faculty Alliance is advocating for a 5% cost-of-living adjustment for 7/1/2025 and a 3% COLA for 7/1/2026 for all state employees. The COLAs for NSHE should be fully funded by the state to avoid further burdening students with increased registration fees.

At the December 17, 2024, meeting of the Interim Retirement and Benefits Committee, Kent Ervin submitted a statement on behalf of Nevada Faculty Alliance members regarding the Public Employees Retirement System and the contribution rate increase:

At the Public Employees' Benefits Program, a dozen-year record of generating excess reserves has ended with a deficit in the mandatory reserves of tens of millions of dollars, health care costs especially prescriptions drugs are rising more rapidly than state funding, and PEBP is threatening to eliminate the Health Maintenance Organization (HMO/EPO) plan option.  The Governor's executive budget needs to replenish the reserves and maintain plan benefits without increasing employee premiums.  In the meantime, legislative threats to PEBP are on the horizon.

At the December 17, 2024, meeting of the Interim Retirement and Benefits Committee, Kent Ervin submitted the following statement on behalf of Nevada Faculty Alliance members about the Public Employees' Benefits Program: