1. The board of trustees of each school district shall reserve for each fiscal year, for the purposes of the program of performance pay and enhanced compensation established by the board of trustees pursuant to NRS 391A.450, an amount of money sufficient to provide an increase in base salaries, not including monetary benefits, for not less than 5 percent of the teachers and administrators employed by the school district. The amount of the increase must not exceed 10 percent of the annual base salary of each teacher and administrator to whom the increase is paid.

2. After making the reservation required by subsection 1, the board of trustees shall provide written notice of its action to the Department and the State Board, with information about the amount of money reserved and the increase in salaries to be paid. The State Board shall review that information at a meeting of the State Board.

3. Except as otherwise provided in subsection 4, the money reserved by the board of trustees pursuant to subsection 1:

(a) Must be accounted for separately by the school district.

(b) Is not subject to negotiations with an employee organization for the purposes of chapter 288 of NRS.

(c) Must be used only to pay an increase in salaries in accordance with this section and NRS 391A.450 and not to increase the salaries or monetary benefits of other employees of the school district.

4. Any money reserved pursuant to subsection 1 for a fiscal year that remains in the account established pursuant to subsection 3:

(a) At the end of that fiscal year does not revert to the general fund of the school district, but must be carried forward to the next fiscal year.

(b) At the end of the next fiscal year reverts to the general fund of the school district and may be expended by the board of trustees of the school district pursuant to the provisions of chapter 288 of NRS.

(Added to NRS by 2015, 3820)