Gov. Jim Gibbons signed a bill Wednesday that makes Nevada eligible to apply for President Barack Obama’s Race to the Top federal education grant.

Nevada was the only state ineligible to compete for the grants because of a law that banned student tests scores from being used in teacher evaluations. Gibbons had threatened to veto the bill because of concerns it didn't go far enough to remove the prohibition and ensure the state's application would be competitive.

“(Our district staff) have been working diligently and many long hours analyzing this grant and basically what this signifies is with everything coming our way in public education, we have embarked on a new era,” Washoe County School Board President Estela Gutierrez said late Wednesday.

The grant offers a total of $4.35 billion for states that show how they would embrace reform and accountability by implementing new strategies. These could include adopting standards and assessments that prepare students for college or career, recruiting and developing effective teachers and principals or building data systems that better monitor students’ individual progress and improve the lowest-performing schools.

“This is certainly going to help,” Gutierrez said. “Whether or not we were going to get this Race to the Top … we were still on this road of reform. We need to raise the bar. We need to start making changes.”

The Washoe County School District took the lead in writing Nevada's grant application. The application requires 600 hours for 300 pages divided into two sections. Awards are based on a 500-point system for applications that discuss district accomplishments as well as the district's plans for using the money.

Washoe missed the first round of grant eligibility in January but will be eligible to try for the June deadline.

School board trustee Scott Kelley said the district and board are still discussing how to best use the grant.

“The signing of that bill is a very positive development,” he said. “There will be a lot of discussion on the best ways of using that money, whether it’s plugging holes or funding programs. And it’s a federal grant, so I’m sure we’ll have some rules or regulations, but every dollar really helps.”

After the recent special session of the Nevada Legislature, school districts in the state are facing 6.9 percent in cuts. Kelley said despite that, parent and community support has always remained high and will be crucial as the district makes its decisions on final cuts.

Gibbons signed the bill, SB2, in a ceremony at Elaine Wynn Elementary School in Las Vegas.

Gibbons also signed two other education bills Wednesday. AB4 and AB5, which temporarily relax class size mandates and waive textbook spending requirements for public schools.

The Associated Press contributed to this report.