Former CCSD CFO explains problems using rainy day funds to escape budget deficit

LAS VEGAS, Nev. (FOX5) - The Clark County School District is facing a $20 million budget deficit, but the Las Vegas Valley is waiting to see what happens next.

FOX5 has more on the options CCSD can take, according to the person who used to oversee the budget, former Chief Financial Officer, Jason Goudie.

Despite the seemingly high budget deficit, the district still has money in the bank. But touching it could lead to more problems, according to Goudie.

His recent firing was how the budget blunder came to light.

He explains why the current state of CCSD has a lot to do with the state in which the district is located.

"By all measures, we are significantly underfunded in K-12 education in the state of Nevada," Goudie said. He adds Nevada is underfunded by more than $2 billion dollars.

But in our area, CCSD recently identified a potential central budget deficit of around $20 million.

Goudie explains the district has options to dig itself out of the hole, like cutting costs and tapping into the $150 million dollar central reserve fund.

But doing that could hurt the district's bond rating. Think of it like tapping into your 401(k) early.

"There's a possibility that they get dinged," Goudie said. "When I first got here in 2017 the district did dip into some reserves, and ultimately some challenges were experienced from a bond rating perspective."

FOX5 wanted to know what the budget deficit means for teachers and students.

FOX5 recently obtained a letter from CCSD about a shakeup at Robert and Sandy Ellis Elementary School in Henderson telling families six teachers will be impacted and shuffled around to teach at a different grade level, while others will have the opportunity to move to other schools in the district.

Class sizes will get bigger because of it by three students, but the principal is confident overall class sizes will remain smaller than previous school years.

Despite the changes, Goudie had this to say about what happens to CCSD teachers.

"There shouldn't be any teachers that don't have a job. There's enough vacancies. It's a matter of whether certain schools can retain the number of teachers they have or not, and then distribute them, and then other teachers be available for those schools that have significantly more vacancies," Goudie said.

FOX5 has reported on several CCSD staffers getting shuffled around because of the budget cuts.

Goudie explains why. "There may be some schools that have a larger budget challenge than others, and they may not be able to afford all of their staff based off the funding that's provided," Goudie said.

He says that's a principal's decision based off their budget and how they manage it.

CCSD says the district is set to complete its fiscal year 2024 report by Nov. 1, and the amended final budget for next year in mid-December.