MINUTES OF THE
SENATE Committee on Finance
Seventy-First Session
May 22, 2001
The Senate Committee on Financewas called to order by Chairman William J. Raggio at 8:32 a.m., on Tuesday, May 22, 2001, in Room 2134 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. Exhibit B is the Attendance Roster. All exhibits are available and on file at the Research Library of the Legislative Counsel Bureau.
COMMITTEE MEMBERS PRESENT:
Senator William J. Raggio, Chairman
Senator Raymond D. Rawson, Vice Chairman
Senator Lawrence E. Jacobsen
Senator William R. O’Donnell
Senator Joseph M. Neal Jr.
Senator Bob Coffin
Senator Bernice Mathews
STAFF MEMBERS PRESENT:
Gary L. Ghiggeri, Senate Fiscal Analyst
Bob Guernsey, Principal Deputy Fiscal Analyst
ElizaBeth Root, Committee Secretary
OTHERS PRESENT:
Don Hataway, Deputy Director, Budget Division, Department of Administration
Chairman Raggio:
Let us look at Senate Bill (S.B.) 194 before we discuss differences between the Senate and the Assembly on various budget accounts.
SENATE BILL 194: Makes changes pertaining to interstate compacts for supervision of offenders. (BDR 16-107)
Chairman Raggio:
We heard this bill on May 15, 2001. Mr. Ghiggeri this is the bill that does not become effective until 35 states agree to be bound, is that correct?
Gary L. Ghiggeri, Senate Fiscal Analyst, Fiscal Analysis Division, Legislative Counsel Bureau:
That is correct, Mr. Chairman. Currently, 19 states have adopted this bill. Two states are awaiting their Governors’ signatures, 21 states are pending and 14 states have taken no action.
Chairman Raggio:
If this bill becomes effective, there is a fiscal note, is that correct?
Mr. Ghiggeri:
It would become effective on July 1, 2001 or upon ratification by the 35 states. Testimony provided by the Division of Parole and Probation (P&P), Department of Motor Vehicles and Public Safety, indicated the annual cost would be approximately $30,504. Of that amount, $25,000 would be the estimated annual dues for the association or the compact. Approximately $3,200 would be related to a trip for the annual meeting and approximately $2,284 would be for costs related to the seven members that would be appointed to the board.
Chairman Raggio:
If we process this bill, how do we allow interested parties to come to the Interim Finance Committee (IFC) to request funding?
Mr. Ghiggeri:
That could be done by the agency. For example, P&P is funded via the General Fund. The committee’s intent could be indicated by a Letter of Intent. If 35 states ratify this and it becomes operational, approximately $30,000 would be required per year.
Chairman Raggio:
This would be a worthwhile endeavor in the event the needed number of states ratifies similar bills. I would entertain a motion to do pass with a Letter of Intent to the Division of Parole and Probation to authorize them to access interim funding in the event the necessary number of states agrees to be bound.
SENATOR RAWSON MOVED TO DO PASS S.B. 194 WITH A LETTER OF INTENT TO THE DIVISION OF PAROLE AND PROBATION TO APPROACH THE INTERIM FINANCE COMMITTEE FOR FUNDING, IF NECESSARY.
SENATOR JACOBSEN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR NEAL WAS ABSENT FOR THE VOTE.)
* * * * *
SENATE BILL 232: Provides for collection of information on economic background of child referred to system of juvenile justice and requires division of child and family services of department of human resources to determine whether children of racial or ethnic minorities and children from economically disadvantaged homes are receiving disparate treatment in system of juvenile justice. (BDR 5-573)
Chairman Raggio:
This bill was heard on May 4, 2001. The committee heard the testimony of Senator Valerie Wiener, Clark County District No. 3. At the time, there was a fiscal note on the bill. However, now I understand Senator Wiener has proposed an amendment that would remove the fiscal note and request the counties accept financial responsibility.
Mr. Ghiggeri:
It is my understanding the amendment would shift the data collection responsibility from the state to the county. I have an email from Kirby L. Burgess, Director, Family and Youth Services, Clark County, indicating the county can live with this. Washoe County has reviewed this bill and indicated they concur with the amendment to this bill.
Chairman Raggio:
The proposed amendment to S.B. 232 has been handed out (Exhibit C). What would the committee’s pleasure be?
SENATOR RAWSON MOVED TO AMEND AND DO PASS S.B. 232.
SENATOR O’DONNELL SECONDED THE MOTION.
Chairman Raggio:
Let us make sure the record indicates that the major counties, Clark County and Washoe County, have indicated they will work in cooperation together to collect that data without cost to the state.
THE MOTION CARRIED. (SENATOR NEAL WAS ABSENT FOR THE VOTE.)
* * * * *
SENATE BILL 241: Revises provisions relating to determination of whether certain offenders constitute menace to health, safety or morals of others. (BDR 16‑435)
Chairman Raggio:
We heard S.B. 241 in hearing on April 18, 2001.
Mr. Ghiggeri:
There was no opposition to this bill. This legislation was drafted as a result of an audit performed by the Legislative Counsel Bureau, Audit Division. This sets in statute specific qualifications for members of the panel. If the committee chooses to approve this legislation, it does require an amendment to appropriate approximately $12,860 in each year of the biennium to the Department of Prisons and approximately $9,051 in each year to the Division of Mental Health and Developmental Services to perform the required services.
Senator Coffin:
Is this bill likely in this biennium to result in any earlier releases from prison of any prisoners?
Mr. Ghiggeri:
I do not believe this bill was intended to provide for early release of prisoners. This bill was intended to provide greater accountability and uniform application by the panel that reviews the inmates prior to their being reviewed by the Parole Board for release on parole.
Senator Coffin:
If this bill did result in early release for inmates, it would be my intention to advise the committee there may be a “work impact” on P&P requiring additional funding.
Mr. Ghiggeri:
The budget for the Division of Parole and Probation has been approved by both the Senate and Assembly. The budget provides for no additional staff to P&P. There is no intention, that I am aware of, in this bill to provide for early release.
SENATOR RAWSON MOVED TO AMEND AND DO PASS S.B. 241 AND, STATED THE AMENDMENT WOULD ADD THE NECESSARY APPROPRIATION.
SENATOR O’DONNELL SECONDED THE MOTION.
THE MOTION PASSED UNANIMOUSLY.
* * * * *
SENATE BILL 277: Requires posting of sign in food establishments in which alcoholic beverages are sold that warns of dangers of drinking such beverages during pregnancy. (BDR 40-24)
Chairman Raggio:
We heard S.B. 277 on April 13, 2001, and again on May 9, 2001. I believe we had an indication that the Nevada Chapter of the March of Dimes would provide the necessary funding for the signage. However, we do not yet have that in writing. Mr. Ghiggeri, do we have a proposed amendment to this bill?
Mr. Ghiggeri:
I have a proposed amendment discussed by Senator Wiener on May 9, 2001, which removes the General Fund appropriation and provides for specific locations of the signs. The amendment indicates the Health Division, Department of Human Resources, can solicit and accept donations for the signs. This was discussed in the committee meeting on May 9, 2001.
Chairman Raggio:
I do not mind if we process this bill as “amend and do pass,” but, for the record, I would like to have a letter from the March of Dimes stating they will assume the cost of the signage. We will not process this bill on the floor until we receive a letter from the March of Dimes.
SENATOR RAWSON MOVED TO AMEND AND DO PASS S.B. 277.
SENATOR COFFIN SECONDED THE MOTION.
Senator Rawson:
The March of Dimes did send me a letter that indicated their obligation to pay for these signs.
Chairman Raggio:
They sent a response by electronic mail, but I want a letter to place in the file for reference.
THE MOTION PASSED UNANIMOUSLY.
* * * * *
SENATE BILL 477: Makes appropriation to Department of Employment, Training and Rehabilitation for Independent Living State Client Services Program. (BDR S-1413)
Chairman Raggio:
What is the status of S.B. 477? Mr. Hataway are we still looking at the potential for modification to the Governor’s “one-shot” appropriations?
Don Hataway, Deputy Director, Budget Division, Department of Administration:
Yes, but this bill is not one of them.
Chairman Raggio:
This proposed amendment to S.B. 477 (Exhibit D) would direct the funding to the Independent Living Program of the Department of Employment, Training and Rehabilitation. Do you agree with this amendment, Mr. Hataway?
Mr. Hataway:
That is correct, Mr. Chairman.
SENATOR RAWSON MOVED TO AMEND AND DO PASS S.B. 477.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION PASSED UNANIMOUSLY.
* * * * *
SENATE BILL 139: Revise manner in which administrative assessments are distributed. (BDR 14-515)
Mr. Ghiggeri:
The committee approved S. B. 139 yesterday, which amended the allocation from the courts. Upon further review of that bill, we have determined that bill should be effective July 1, 2001, instead of upon passage and approval. If the committee would agree, we can do a floor amendment on that bill.
Chairman Raggio:
I will take a motion to add an amendment to S.B. 139 to make its effective date July 1, 2001.
SENATOR RAWSON MOVED TO AMEND AND DO PASS S.B. 139.
SENATOR O’DONNELL SECONDED THE MOTION.
THE MOTION PASSED UNANIMOUSLY.
* * * * *
Senator Neal:
Is there going to be any action taken on S.B. 193?
SENATE BILL 193: Makes various changes concerning department of prisons. BDR 16-311)
Chairman Raggio:
Committee staff indicates they will have information on this bill tomorrow morning. I believe there were problems in that bill dealing with training aspects. Committee staff needs additional time gathering information on that bill.
Chairman Raggio:
We should review the differences between the Senate and Assembly regarding closing of accounts (Exhibit E) before we attend our joint meeting.
Office of the Governor – Budget Page ELECTED-1 (Volume 1)
Budget Account 101-1000
Mr. Ghiggeri:
The first budget that reflects a difference is the budget for the Office of the Governor. The Assembly appears to have eliminated the funding for the Family Resources Program in decision unit M-201. The Assembly has also eliminated the funding for the Office of Science, Engineering and Technology in decision unit E‑275.
Decision unit M-201 provides for the creation of the Family Resources Program. There is approximately $157,112 recommended in FY 2002 and $145,530 in FY 2003. Included in that recommendation are 2 new positions, 1 Family Resources Coordinator and 1 Executive Assistant. Additionally, the Assembly eliminated the funding for the Office of Science, Engineering and Technology in decision unit E‑375. The Senate has reduced the funding for the Office of Science, Engineering and Technology by $50,000 per year as recommended by the Governor in his suggested reductions to the budget.
Chairman Raggio:
Has the Assembly eliminated the Office of Science, Engineering and Technology altogether?
Mr. Ghiggeri:
Yes, it appears so, Mr. Chairman.
Chairman Raggio:
So, where does that leave that office?
Mr. Ghiggeri:
I am not sure.
Mr. Hataway:
It leaves that office at zero funding and, therefore, not existing.
Chairman Raggio:
The Assembly action did two things. It eliminated the General Fund appropriation to the Governor’s office for the Family Resources Program and eliminated the Office of Science, Engineering and Technology. There is no money in the budget of the University of Nevada Community College System for that program, which is where the program was located before it was transferred to the Office of the Governor. Committee, that is one account we should “hold” on.
Senator Coffin:
Is the position unfilled?
Mr. Hataway:
Yes, it is unfilled until the position receives revenue.
Senator Rawson:
Could we ask Mr. Hataway about the Family Resources Coordinator?
Mr. Hataway:
The initial purpose of that position was to conduct a review of all funding, including federal and state grants, contracts and interlocal agreements the state has with local providers, to gain an understanding of funding revenues and cost allocation. Once that is established, the Governor can start making recommendations for a better allocation process.
Senator Rawson:
Is this something we could do without? I understand the position could be beneficial, but is it something we need to “stand”on?
Mr. Hataway:
We are going to fight for this position. For the first time in FY 2001 we are requiring all agencies to track all of this information on a Microsoft Excel spreadsheet and the agencies will electronically download the information to the Budget Division, which will evaluate that data.
Chairman Raggio:
If the Assembly restored the funding for the Office of Science, Engineering and Technology and we approved the Family Resources Coordinator, would that solve this problem?
Mr. Hataway:
I would have to state that the Governor is in support of both of those programs.
Chairman Raggio:
What about the Governor’s Mansion maintenance? I believe Senator Jacobsen, who stepped out of the room, has information on that account.
Gov, Office of Consumer Health Assistance - Page ELECTED-13 (Volume 1)
Budget Account 101-1003
Mr. Ghiggeri:
The next account would be the Office of Consumer Health Assistance. The Assembly did not approve the transfer and consolidation of that office with that of the Office for Hospital Patients.
Chairman Raggio:
The Senate combined those two offices?
Mr. Ghiggeri:
Yes, the Office of Consumer Health Assistance was consolidated with the Office for Hospital Patients in S.B. 573, which will be heard tomorrow in this committee.
SENATE BILL 573: Transfers office for hospital patients from department of business and industry to office of governor. (BDR 18-1545)
Senator Rawson:
It makes sense to consolidate those two offices.
Chairman Raggio:
Yes, it does and that bill was just introduced. Is there a savings to consolidation?
Mr. Ghiggeri:
I do not know whether there is a savings and I would have to defer to Mr. Hataway on that issue.
Mr. Hataway:
There is not a savings, per se. It is a better service to the customer. It is not that the Office for Hospital Patients has not been doing a good job. It just makes more sense to have a single entity serving that area, rather than two.
Chairman Raggio:
Was that decision a result of the review by the Governor’s Steering Committee to Conduct a Fundamental Review of State Government (fundamental review)?
Mr. Hataway:
Yes, that was a decision from fundamental review. However, the idea was really borne during the last stages of the 1999 Legislature when the Legislature privatized the Employers Insurance Company of Nevada (EICON) and created the Office of Consumer Health Assistance. This was a leftover feature of that process that we are trying to clean up.
Controller’s Office – Budget Page ELECTED-76 (Volume 1)
Budget Account 101-1130
Mr. Ghiggeri:
The next difference is in the budget for the Controller’s Office in decision unit M‑202. The Senate provided funding, as requested by the Controller, to add a Management Assistant I position for debt collection. The Controller indicated that the position would be utilized for clerical assistance throughout the office, but would be used primarily in the area of debt collection.
Chairman Raggio:
We just processed a bill authorizing the agencies to utilize the Controller’s Office for their debt collection process. It would not be prudent to eliminate this position.
Secretary of State – Budget Page ELECTED-81 (Volume 1)
Budget Account 101-1050
Mr. Ghiggeri:
Regarding the Secretary of State’s budget, the Senate approved all 18 new positions, as recommended in The Executive Budget, and two unfunded positions for the Elections Division, for a total of 20 positions. The Senate did not approve any funding in FY 2002 for the software maintenance contract and approved $170,000 in FY 2003 for the software maintenance contract. I believe Senator O’Donnell was in discussions with the Secretary of State’s office on that issue.
Chairman Raggio:
We approved it only for the second year of the biennium?
Mr. Ghiggeri:
Yes, only the second year of the biennium. The Assembly approved $140,000 for FY 2002 and $170,000 in FY 2003. The Secretary of State informs me he is willing to give up 8 positions if the Assembly would approve funding of one position for the office’s Elections Division. That approval would fund 12 positions of the 20 positions requested by the Secretary of State. One of those could be placed in the Elections Division and one would be an Information Specialist III.
State Treasurer – Budget Page ELECTED-88 (Volume 1)
Budget Account 101-1080
Mr. Ghiggeri:
The next item is in the budget of the State Treasurer in decision unit E-720. The Assembly eliminated $15,000 for the file server, and the Senate reduced the price by $2,819. I believe the Assembly’s action was predicated upon the State Treasurer’s office purchasing a file server two years ago.
Proficiency Testing – Budget Page K12ED-32 (Volume 1)
Budget Account 101-2697
The next difference is in proficiency testing. The Senate did not approve the additional funding for the development and implementation of alternative assessments discussed during the closing.
Chairman Raggio:
I believe the additional funding for the development and implementation of alternative assessments was not in The Executive Budget.
Mr. Ghiggeri:
Assembly Bill 319 remains in the Assembly Committee on Ways and Means.
ASSEMBLY BILL 319: Makes various changes to provisions governing education. (BDR 34-784)
Chairman Raggio:
Assembly Bill 319 is a bill with a lot of other provisions in it. Committee, this bill provides for two different kinds of diplomas. If a person cannot pass the high school proficiency test that person gets a “standard” diploma. A person who passes the test gets a “master” diploma.
Mr. Hataway:
I believe a student that passes the exam receives a “master” diploma; a student that passes an alternate assessment process, receives a “standard” diploma; and a student that does not pass either receives a certificate. That is the way A.B. 319 is written.
Chairman Raggio:
It is my observation that is completely watering down what the Legislature accomplished with the Nevada Education Reform Act of 1997. I hope this committee would not agree to that.
W.I.C.H.E. Loan and Stipend – Budget Page WICHE-1 (Volume 1)
Budget Account 614-2681
Mr. Ghiggeri:
The next account is the W.I.C.H.E. Loan and Stipend. The Senate concurred with the Governor’s recommended funding level in each year of the biennium. Additionally, the Senate approved $225,000 of increased balance forward from FY 2001 to FY 2002 to fund professional slots in the fields of nursing, teaching, and mental health. My information indicates that would be a total of 15 slots in each year of the biennium at approximately $75,000 in FY 2002 and approximately $150,000 in FY 2003. The Senate did not approve the deletion of the physical therapist slots and the Senate approved a reserve of $50,000 in FY 2003.
Chairman Raggio:
The Assembly deleted the physical therapy slots, but added some nursing slots.
Mr. Ghiggeri:
That is correct.
Chairman Raggio:
We will have to discuss that in our full meeting.
Budget and Planning – Budget Page ADMIN-1 (Volume 1)
Budget Account 101-1340
Mr. Ghiggeri:
The Assembly did not fund the new Public Service Intern position recommended by the Governor in decision unit E-275. The Senate did fund this position. The Joint Subcommittee recommended elimination of that funding and when the Senate Committee on Finance considered the subcommittee recommendation, the committee reinstated funding for that position.
AGRI, Nevada Junior Livestock Show Board – Budget Page AGRI-84 (Volume 1)
Budget Account 101-4980
AGRI, High School Rodeo Association – Budget Page AGRI-87 (Volume 1)
Budget Account 101-1341
Mr. Ghiggeri:
As to both of these accounts, the Assembly denied funding for the maintenance of a web site for each agency’s program. The information that became available to me, subsequent to the closure of these budgets, indicates the revised cost, based upon the Department of Information and Technology cost allocation, would be $909 in the first year and $1,116 in the second year of the biennium.
Chairman Raggio:
So, it is a little less than what the Senate had budgeted.
Mr. Ghiggeri:
Yes, it is less than half in each of these accounts in the second year.
Nevada Magazine – Budget Page ECON DEV & TOURISM-30 (Volume 2)
Budget Account 530-1530
Mr. Ghiggeri:
In the budget for the Nevada Magazine, the Senate funded the budget as recommended by the Governor, which mirrored the in-state and out-of-state travel at FY 2000 and FY 2001 work program levels. The Assembly reduced the travel.
HR-DIR, Community Based Services – Budget Page HR ADMIN-40 (Volume 2)
Budget Account 101-3266
Mr. Ghiggeri:
The Senate provided funding to increase the hourly wage for the personal service attendants to approximately $17 per hour, which aligns that with the current Medicaid rate. The Assembly did not.
High Desert State Prison – Budget Page PRISONS-73 (Volume 3)
Budget Account 101-3762
Mr. Ghiggeri:
In this budget, the Senate approved the position of the Maintenance Repair Specialist II and the Assembly did not.
DEP, Waste Mgmt and Federal Facilities – Budget Page CNR-27 (Volume 3)
Budget Account 101-3187
Mr. Ghiggeri:
The Senate concurred with the Governor’s recommendation in this budget to allow the division to use 13 special use categories. The Assembly did not.
Chairman Raggio:
Please explain what that means.
Mr. Ghiggeri:
The agency used special categories with this budget account to track program funding, instead of the traditional out-of-state travel, in-state travel, and historical operating categories.
Chairman Raggio:
Why does that cost more money?
Mr. Ghiggeri:
It does not cost additional money. It is a re-alignment of categories from the historical procedure.
Mr. Hataway:
Mr. Chairman, the basic issue is whether to track costs by out-of-state travel and in-state travel, or to track costs by program. As you can see, there is a whole myriad of federal funds, primarily, that the agency gets for specific purposes. The agency thought it made sense to categorize these accordingly. It is a nightmare to try to track what these various grants contribute to out-of-state travel, for example.
Chairman Raggio:
Mr. Hataway, are you going to be available to offer comments on these accounts?
Mr. Hataway:
Mr. Chairman, I will be there.
Chairman Raggio adjourned the hearing at 9:05 a.m.
RESPECTFULLY SUBMITTED:
_________________________
ElizaBeth Root
Committee Secretary
APPROVED BY:
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Senator William J. Raggio, Chairman
DATE:
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