LAS VEGAS (FOX5) — The Clark County Education Association is proposing a plan that would require data centers to pay more toward public education.
The proposal would also address concerns about water, power and the environment.
CCEA, the largest teachers’ union in the state, says data centers are a trillion-dollar industry controlled by billionaires who can afford this. The change would require a new bill from the state Legislature.
CCEA says Senate Bill 170 provided sales and property tax abatements to attract large industry to the state.
“But the thing about that is there were no regulations that surrounded data centers,” CCEA President Kristin Nigro said. “And so now for over 16 years, we have given away over 350 million dollars that could have went to education. That’s a pretty big number.”
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Eight-point plan
CCEA has created an eight-point plan. One measure would end the Local School Support Tax abatement for data centers.
“It’s part of the sales tax,” CCEA’s Executive Director John Vellardita said. “So, any kind of point of transaction in the state of Nevada, whether it’s you, the consumer, going to Target, or it’s a business selling a product or a service like data centers, that’s a tax that’s paid.”
CCEA proposes that tax abatement be eliminated for data centers and that they pay it. Officials call the Local School Support Tax one of the principal revenue streams for K-12 education.
“The minimum the state could capture is 500 million dollars for K through 12,” said Vellardita.
That would be each year.
FOX5 asked what the plan would mean for parents with kids in school in southern Nevada.
“Our response to that question, to the mom that’s out there, to the kids that go to Matt Kelly, you’re going to have resources, you’re going to have more teachers, you’re going to have after-school programs, you’re going to have mental health, you’re going to have good safety, you’re going to have pre-K, because now we’re going to have the resources to pay for that. That’s the answer to that,” said Vellardita.
Other key points to CCEA’s proposal
The plan includes additional measures:
- Local control: Communities would have a say in whether a data center should be built and where.
- Water: If data centers draw water from Nevada, that water must be returned to Nevada.
- Power: Data centers must build their own power and cannot draw on the state’s power grid. CCEA says NV Energy should not pass any rate increase on to ratepayers.
- Environment: Mandatory transparency, with audits to ensure the industry is in compliance with the state and communities.
- Property tax abatements to be reviewed: Revenue going to universal pre-k and special education.
- Data center revenue must also be used to for workforce development and funding to address retraining opportunities for jobs displaced by artificial intelligence.
CCEA says it continues to communicate with state lawmakers from both parties, as well as the Governor’s Office and the data center industry.
FOX5 has reached out to local data centers and the Governor’s Office and is waiting to hear back.
The Clark County School District responded to FOX5.
“CCSD appreciates all of our partners who advocate for increased funding for public education, especially given that Nevada’s per-pupil funding is about $4,000 below the national average. CCSD is in the process of creating our legislative priorities and will review this plan and its potential impact on our students, employees, and school communities,” said the district.
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