The Nevada Department of Education (NDE) reported to the Commission on School Funding on legislative changes, staff additions and cash‑flow moves that will shape how the state pays districts under the pupil‑centered funding plan.

Deputy Superintendent Megan Peterson said the department secured eight of 17 requested positions to support the people‑centered funding work and related operations, and that the department will soon post recruitments it had to delay while systems were locked during a cybersecurity incident. "We submitted 17. We were approved for 8," Peterson said. "We were awarded a budget analyst to support our people centered funding plan team. They will help with revenue projections, processing the monthly payments, modeling scenarios for the commission."

Why it matters: the additional positions are intended to speed modeling and monthly payment processing, a shortcoming NDE identified during the most recent budget cycle. The department also described a one‑time transfer from the education stabilization account this fiscal year to preserve a modest per‑pupil increase approved by the legislature.

Key changes and implementation notes

- Staffing: Peterson said NDE will add a budget analyst and two auditors for pupil enrollment and attendance audits; administrative positions were also authorized and are in recruitment. Melissa Willis, the state education funding manager who presented model details later in the meeting, said several hires are in classification and HR queues and expected to post soon.

- Cybersecurity: Peterson described a ransomware event that caused NDE to lock systems temporarily. "As part of the mitigation efforts, all systems were locked down to prevent any spread or removal of additional information," she said. The department said the attack did not appear to have compromised files but did delay access to systems used for year‑end reconciliation and payment processing.

- Stabilization account and transfers: Peterson and Willis explained the legislature approved a transfer from the education stabilization account to hold up the statewide per‑pupil amount for fiscal year 2026. Peterson said the transfer preserved a modest increase; Willis described closing a temporary account and returning roughly $31 million to the stabilization fund, reducing the net permanent transfer to about $95 million. Peterson warned that NDE routinely borrows for cash flow and that the timing of revenue receipts and monthly payouts requires careful near‑term management.

- Reporting and statutory changes: NDE said SB 81 removed a duplicate ‘‘minimum expenditure’’ report and that publication requirements moved from printed newspapers to websites to reduce district costs. The department also said multiple bills changed class‑size reporting frequency and that the details are still being reconciled with legislative counsel.

- Compensation and categorical grants: Peterson said legislation made the school employee pay raises a formulaic, monthly categorical payment for districts and provided $38 million for charter school raises one biennium behind. She noted the commission will review how those categorical funds should be incorporated into the funding model in future work.

- Capital funds and small counties: Peterson said AB 224 created a new capital program and included a $100 million appropriation for districts in counties with fewer than 15,000 people; NDE will publish application details once program rules are finalized.

- Special education adjustments: Willis described a new targeted reallocation in the state special education account (category 22) that adds $5 million in FY26 and $10 million in FY27 to bring several local per‑pupil special education weights closer to the statewide average. She said four large LEAs (including Clark) had been below the statewide weight and will see increases under the reallocation.

What NDE will deliver next

Peterson said NDE will circulate written materials and the department’s implementation plan for the session’s education bills. She asked commissioners to expect revised slide decks and follow‑up briefings as systems come fully back online; Willis said the office will post the handout and associated tables showing how each commission recommendation aligned with bills passed this session.

Quotes from meeting participants

"We submitted 17. We were approved for 8," Megan Peterson, deputy superintendent, said of NDE's staffing requests.

"We can now more timely and effectively model what the recommendations are so we can see what those impacts are before we make those final recommendations," Peterson said, describing the expected effect of an added budget analyst.

Context and next steps

NDE said it will continue to provide the commission with modeling updates, will post job recruitments for the new positions, and will present data and draft rules needed for commission workstreams in upcoming meetings. The department plans to share its performance addendum and the at‑risk metrics analysis ahead of the commission’s next meeting so commissioners can review the materials in advance.

Ending note

Commissioners thanked NDE staff for their work and patience during the systems outage and emphasized that modeling speed and cash‑flow clarity are priorities for the commission’s next interim work.