For Immediate Release: March 4, 2010

GOVERNOR PROPOSES SWEEPING CHANGES

TO MODERNIZE HIGHER EDUCATION
Gibbons Seeks Autonomy and Independence for Universities & Community Colleges

“Throughout my years in public service, above all, my philosophy has been shaped by one overriding principle
– Education First. As a graduate of Nevada public schools and universities, I am committed to ensuring
quality education in our K-12 and higher education systems. Education is the intellectual infrastructure of
Nevada’s future.

It is difficult to balance my commitment to education with my duty as Governor to recommend budget

reductions to all state agencies, including education, in these unprecedented and challenging fiscal times.
However, consistent with my fundamental beliefs I am proposing reforms that will help build a more solid
base for our education system as we emerge from this crisis. I have previously released my plan for education
reform in our K-12 public schools, and today, I ask the Legislature and Nevadans to consider a new plan --
indeed, an entirely new way of thinking about higher education funding.

I believe in the years to come that this state will ask higher education to become more self-sustaining, that is,
less dependent on state resources. If, as a state, we ask higher education to be more self-sufficient, it is right
and reasonable that we give them the tools to effectively meet that challenge. Today I am proposing a series of
reforms that will allow the Nevada System of Higher Education (NSHE) to function in a more autonomous,
flexible, and entrepreneurial manner.

1. Control over Student Fees and Tuition. Higher education in Nevada today is not only excellent, but it is a
bargain. In the future, it is fair to ask our students to bear a greater share of the cost of education through
increased tuition and fees. However, as we do that, it is also reasonable for them to see their dollars return to
the campus. I propose that control over 100% of future increases in registration fees and out-of-state tuition
be retained on the campus generating that revenue.

2 . Staffing. Classified employees within NSHE, the non-teaching positions who contribute so greatly to its
success, should be integrated completely into the System. I propose that all such classified employees be
moved directly under the System and out of the state classified personnel system.

3. Capital Projects. Higher education should be exempted immediately from the supervision and control of
the State Public Works Board. The Board should continue to accept buildings upon completion, but need not
impose another layer of bureaucracy and cost during the design and construction of our public higher
education buildings. The State Public Works Board will retain audit authority over the project upon
completion.

Daniel Burns Communications Director - (775) 684-5667

Office of the Governor. 101 North Carson Street . Carson City, NV 89701 . Fax: (775) 684-7198
Grant Sawyer State Office Bldg . 555 East Washington, Suite 5100 . Las Vegas, NV 89101 . Fax: (702) 486-2505
4. Flexibility. This will be a tough one for some, but we must give the Board of Regents and its officers the
ability to spend the state dollars we appropriate in the manner in which they see fit. This means that we
should stay out of their business. Autonomy requires accountability, and the System should be required to
maintain transparent procedures and fully account to the Governor and the Legislature for the expenditure of
taxpayer dollars. Accountability must extend beyond finances, and it is my expectation with this greater
autonomy that each campus will set measurable goals for improvement in quality, and in particular, an
increase in the number of graduates.

5. Efficiency and Effectiveness. The System should be encouraged to spend the money we appropriate
wisely. That is not the case now, where dollars saved are simply reverted to the state general fund at the end
of each fiscal year. I propose that the System be allowed to retain 25% of unspent general funds each year. I
also encourage the System to immediately undertake a process much like the SAGE Commission I appointed
for state government to review its structure and processes, to eliminate waste and redundancy, and to
reinvest those savings into providing higher quality education for Nevadans.

6. Stability. We are all suffering from the fatigue of the declining economy and the continual adjustments
that we have had to make to our budgets. I want higher education to look inward, to plan diligently, and to
serve this state to the best of its ability. This cannot be accomplished with fluctuating state appropriations.
It is my recommendation that we guarantee a certain appropriation to higher education for the remainder of
this biennium and for the upcoming biennium. I realize that one legislature cannot bind another, nor can I.
But we can set this as our goal. I pledge to do my best as we emerge from this recovery to return higher
education funding back to its historical level.

I would like to stand before you today as Governor and tell you that I can and will increase funding to higher
education, which I believe is critical to our future and our economy. Unfortunately, we simply do not have the
revenues today to allow me to make that promise. However, just as I worked with the Legislature in this past
Special Session, I pledge to continue that work with the Legislature to maintain funding to education as high
as is reasonably possible. Working together as we develop an agenda for the next Session of the Legislature in
2011, the Legislature and I have the power to undertake the actions outlined above, and we should move
forward on these reform initiatives. I am asking my staff to work with the Board of Regents and legislative
staff to identify necessary bill drafts to effect these changes.”

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Daniel Burns Communications Director - (775) 684-5667

Office of the Governor. 101 North Carson Street . Carson City, NV 89701 . Fax: (775) 684-7198
Grant Sawyer State Office Bldg . 555 East Washington, Suite 5100 . Las Vegas, NV 89101 . Fax: (702) 486-2505