LAS VEGAS (KLAS) — The Clark County School District estimates it is $20 million short, partly due to lawsuit payouts and salary increases.

The number comes from a letter Interim Superintendent Brenda Larsen-Mitchell sent to the Nevada Department of Education on Thursday.

In a statement last week, the district said the shortfall was due to cybersecurity costs, an unexpected change in enrollment and salary increases. The entire 2023-2024 budget is $3.4 billion — last school year the district had an ending funding balance of $160 million.

Last month, Republican Nevada Governor Joe Lombardo announced he would investigate the CCSD’s budget issues. Last legislative session, lawmakers approved a record $12 billion investment in state schools — with CCSD receiving a large portion of that money.

CCSD is the fifth largest school district in the country, serving the Las Vegas Valley. CCSD leaders continue to emphasize all efforts to avoid a direct impact on school budgets.

Full CCSD statement:

“The Clark County School District (CCSD) has identified a potential central budget shortfall due to unexpected increases, such as litigation and cybersecurity costs, during the regularly scheduled fiscal year-end closing process, which typically runs through mid-October. The potential shortfall did not impact school budgets in the fall, but we did notify principals so they were aware. The district will make every effort to address any identified central budget shortfall to avoid impacting school budgets.

Student registration is confirmed each fall. There are changes between the budget estimates schools received in January 2024 and the actual fall budgets they received in September 2024. Changes in enrollment, salary increases and an allocation correction resulted in some schools unexpectedly receiving both less money and higher labor costs. The estimated salary increases communicated to principals in January 2024 were corrected in the fall 2024 budgets, including an increase of approximately $5,700 for teachers and other qualified employees. In addition, the data used to calculate risk funding for schools in the January 2024 budgets was corrected in the fall budgets.

Our commitment to serving and supporting schools transparently has led us to work with school principals throughout the process. We have kept principals informed of the issues that have been discovered and addressed, and we have worked closely with principals to support those who are experiencing significant difficulties in balancing school budgets for this school year.

If a central budget deficit is confirmed at the end of the budget cycle, we will keep our employees, families and community informed and make every effort not to impact school budgets. We are also fully analyzing school allocation procedures to ensure we can improve estimates and accuracy, and we will share our progress along the way.”

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