MINUTES OF THE ASSEMBLY COMMITTEE ON WAYS AND MEANS Sixty-eighth Session January 24, 1995 The Committee on Ways and Means was called to order at 8:06 a.m., on Tuesday, January 24, 1995, Chairman Morse Arberry, Jr. presiding, in Room 352 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. Exhibit B is the Attendance Roster. COMMITTEE MEMBERS PRESENT: Mr. Morse Arberry, Jr., Chairman Mrs. Jan Evans, Vice Chairman Ms. Sandra Tiffany, Vice Chairman Mr. Dennis L. Allard Mrs. Maureen E. Brower Mrs. Vonne Chowning Mr. Jack D. Close Mr. Joseph E. Dini, Jr. Mr. Thomas A. Fettic Ms. Chris Giunchigliani Mr. Lynn Hettrick Mr. Bob Price Mr. Larry L. Spitler COMMITTEE MEMBERS ABSENT: Mr. John Marvel (Excused) STAFF MEMBERS PRESENT: Mr. Mark Stevens, Fiscal Analyst Mr. Gary Ghiggeri, Deputy Fiscal Analyst MUSEUMS, LIBRARY AND ARTS ADMINISTRATION - PAGE 393 Chairman Arberry recognized Ms. Joan Kerschner, Director of the Department of Museums, Library and Arts. Ms. Kerschner stated the department was part of Governor Miller's reorganization and now includes the Division of Museums and History, the Division of State Library and Archives, the State Historic Preservation Office and the Council on the Arts. Ms. Kerschner reported the Museum, Library and Arts Administration budget includes the director's position and operating funds. For the last year the department focused on planning, resulting in a cohesive budget for the entire agency. She indicated Mr. Jere Schultz, Budget Analyst for the Department of Administration, Budget and Planning Division, and the directors of each individual department were in attendance and would present information about specific budgets. Ms. Kerschner commented the department was allowed to submit a number of one- shot appropriations totaling $881,999, which they had worked on cooperatively. An important part of this total was a one-time appropriation recommended for data processing equipment for department networking and to allow public access to departmental publications. She distributed a sheet entitled "One-Shot Appropriations" (Exhibit C) to explain how the one-shot appropriation was developed for a total of $203,721 over the biennium. Ms. Kerschner explained the Division of Libraries and Archives has invested substantial time, energy and money since 1980 in automating their computer system, resulting in an extensive network connecting all librarians in the state. The newly joined department began planning to share resources and to catalogue and reference collections in all departments at the same level as the State Library and Archives and to upgrade access to administrative computing. She said the State Library is a federal repository and most material currently purchased or received is in data base form or on CD ROM. Equipment requested in the appropriation is needed so the many unique resources, such as the Nevada Historical Society, collections at the museum and railroad museums and elsewhere are available to the public. Ms. Kerschner continued another important part of the $881,999 one-shot appropriation was a remodel of the basement in the new State Library and Archives. She said unfinished space in that building totaling 17,000 square feet was originally planned for a parking garage; however, this did not prove to be cost effective and the parking area was put in a different location. The Division Master Plan was to build a records center elsewhere in the capitol complex; however, the basement is available and can be remodeled for an estimated $316,000. This would allow collections from all over the state, some of which are currently in rental storage, to be placed in one location. She called attention to a handout (Exhibit D) detailing demand for records storage by state agencies and also identifying some costs for current rental storage. Ms. Kerschner stated she believed the $316,000 could be amortized over the biennium in what agencies currently spend in rental costs; however, the facility would probably not be opened in the first year of the biennium. She indicated records would be brought in as quickly as possible as there was an extensive waiting list (see Exhibit D). Ms. Kerschner commented this would be an efficient use of that space as it would not be rehabilitated to a high level and would not require temperature or humidity controls as these records were kept temporarily and then destroyed. Chairman Arberry asked, assuming the $316,000 remodel was done, how soon additional space would be needed. Ms. Kerschner responded she hoped the remodel would provide sufficient storage space for many years. The state was gradually converting to electronic records storage and the amount of paper to be stored should not grow as quickly as it has in the past. She did say the amount of paper would continue to grow because state government was not yet paperless. However, it was planned to cycle records through the storage area, destroying them as soon as the records life was ended, so the area should be sufficient for five to ten years. Chairman Arberry asked how extensive the remodeling would be and if the $316,000 figure had come from the Public Works Board. Ms. Kerschner replied the building architects designed the storage area and this design was reviewed by the Public Works Board. She indicated the figure had actually been lowered because it was felt the original architectural plans were more extensive than needed. She added the Public Works Board had reviewed this figure and agreed with it. Chairman Arberry asked if the Public Works Board had copies of the plans, requesting Ms. Kerschner provide copies of the plans and figures to the committee. She indicated she would do so and would also provide building plans if the committee wished. Mr. Allard asked how many square feet were in the space. Ms. Kerschner responded the entire basement area was 17,000 square feet. He asked what the price was per square foot. Ms. Kerschner said she did not know the figure but would have it calculated. Ms. Giunchigliani inquired if state agencies were reviewed to see if records were being retained unnecessarily. Ms. Kerschner said their records management program provided information to agencies regarding how long records should be kept. She indicated this would be better controlled when the records were brought into central storage; the records manager would notify agencies when records no longer had to be kept, and records would be automatically destroyed unless there was a special reason to keep them for a longer period of time. Ms. Giunchigliani asked if record retention requirements were different for specific agencies; for example, Payroll might need to keep records for a different period of time than Welfare. Ms. Kerschner said over a four year span an extensive records schedule had been prepared for every agency; however, this schedule did need to be updated. Ms. Giunchigliani asked if the large volume of SIIS records would be brought in. Ms. Kerschner indicated they would. Chairman Arberry asked Ms. Kerschner to continue her discussion of one-shot appropriations. She said the other one-shot appropriations related more directly to the Historical Society, the Division of Historic Preservation and the Railroad Museum and the directors would explain those appropriations. Ms. Kerschner referred to page 393 of the Executive Budget. She reported this budget contained department operating monies and the director's position and a request for two positions. Ms. Kerschner explained as a result of last biennium's reorganization she also holds the position of State Librarian and has done so for several years. No additional staff members were hired when she became Director of Museums, Library and Arts so clerical, public relations and fund-raising functions have fallen on clerical and accounting staff at the State Library and Archives. This has not been a satisfactory situation as those staff members were already overextended, making it necessary to use volunteers who have provided inconsistent support. The budget recommends a clerical position, a Management Assistant I, E125 on page 394. Ms. Kerschner discussed the recommendation to transfer a Public Information Officer from the Division of Museums and History to the Department of Museums, Library and Arts, to assist the director in fund-raising (Program Transfers on page 394). She stated this position is funded by tourism funds. Ms. Kerschner noted the department coordinates or is involved with 30-60 events a year, many of which require closer coordination and wider advertisement. The Public Information Officer would work closely with the Commission on Tourism to increase attendance, both local and tourist, at various department facilities and events. Ms. Giunchigliani asked why no operating funds were budgeted for the new positions. Ms. Kerschner explained the new positions would operate out of the existing department operating budget. Office furniture was available through the State Library and Archives and the positions would be housed in Ms. Kerschner's office. Ms. Giunchigliani confirmed with Ms. Kerschner that operating money for the new positions was in the base budget. She also confirmed that Ms. Kerschner had requested the Public Information Officer's salary from the General Fund but the Governor recommended the transfer of agency funds from the Tourism Commission. Mr. Close asked Ms. Kerschner if fulfilling both responsibilities as State Librarian and as Director of Museums, Library and Arts was a realistic organization of the department. Ms. Kerschner replied she did not object to the heavy work load but felt both the department and the State Library and Archives would each eventually require a full time position. Ms. Kerschner indicated she did not request funding for the State Librarian position at this point but did not want that position to be lost because it was the one position invested in the statutes with all the powers and duties of the State Library and Archives and would need to be filled eventually. Mr. Allard asked the purpose of a three-quarter ton pickup truck listed in one-shot appropriations. Ms. Kerschner responded the State Museum and Historical Society in Las Vegas used it, deferring to Mr. Scott Miller, Administrator of the Division of Museums and History. Mr. Miller said the pickup truck was used for transporting exhibition material, artifacts and other items. Mr. Allard asked if the department currently had a pickup truck. Mr. Miller replied the department had a pickup truck which was acquired in 1982. Mr. Allard pointed out a $1,350 appropriation for a camera and fax machine, indicating this seemed very expensive for a fax machine. Mr. Ronald James, State Historic Preservation Officer, indicated this request was for the Comstock Historic District Commission and the cost of the the fax machine was provided by State Purchasing. Mr. Allard questioned a $5,000 appropriation for paint for ADA. Mr. Miller explained the $5,000 was to purchase paint for Nevada State Museum building annexes which had not been painted in 18 years. The actual work of painting would be done by staff members. The ADA portion of the appropriation was for equipment to allow deaf and blind patrons to better understand museum exhibits and schedules. Chairman Arberry directed a question to the Budget Office. He referred to pages 394 and 395 where a total of two positions appear and asked why a transfer position did not appear. Ms. Janet Johnson, Budget Analyst, said the way the budget was built mechanically did not allow for transfers of positions except in the base budget. She said in order to not confuse the base budget with reorganizations or decisions that would change it substantially, position transfers were shown in a separate decision unit. As a result, the FTE counts in the base budgets where positions resided originally have remained the same. The value of the position is shown as a plus or minus in an E900 decision unit and if that action is approved, at budget closing the position would then be physically moved. Ms. Johnson indicated the Fiscal Analysis Division would review each of these transfers. Ms. Kerschner commented the recommended transfers would also appear in the Archives and Records budget and in the Division of Museums and History budget. Mrs. Evans expressed her concern over the lack or inadequacy of the entire Division's performance indicators. She called attention to the new location of performance indicators at the front of the budget, stressing that should also indicate their relative importance. Mrs. Evans commented the performance indicators provided showed mostly output while the committee was more interested in process, stating the committee would expect to see radical revisions in two years. Ms. Kerschner said the performance indicators were not revised because they had never been developed for the Department of Museums and History. She said she understood some agencies had been selected as pilot projects to develop new performance indicators; however, the department would definitely work on performance indicators for the next budget cycle. Mrs. Evans pointed out the interim committee on studying methods of establishing a legislative budget office, working with the Budget Office, did focus on eleven pilot agencies; however, a memorandum was sent to all department heads throughout state government asking that every effort be made to improve performance indicators for this budget cycle. MUSEUMS AND HISTORY - PAGE 397 Chairman Arberry recognized Mr. Scott Miller, Administrator of the Division of Museums and History. Mr. Miller indicated Dr. Peter Bandurraga, Director of the Nevada Historical Society, and Mr. Renny Ashleman, Chairman of the Board of Museums and History, were present in the audience and available to answer questions. Mr. Miller discussed the Division of Museums and History. The Division encompasses a total of six state sponsored institutions in Overton, Ely, Reno, Carson City and Las Vegas with a seventh currently being developed in Boulder City. The Division focuses primarily on collection, preservation, research and education from the collected objects representing the history of the State of Nevada, its prehistory and natural history. Preservation efforts are aimed at documenting the society and environment of the state for future generations. Mr. Spitler referred to page 397 of the Executive Budget, asking if the $32,966 agency transfer was from the Commission on Tourism. Mr. Miller replied it was. Mr. Spitler pointed out the work program column showed that money was spent; however, the base budget narrative indicated the position was never filled and he questioned where the money was spent. Mr. Miller said the position became vacant at the same time budget cuts were made and the Assistant Administrator for Railroad Operations within the same budget account took over the job of Public Information Officer (PIO), performing the duties of both positions. As a result, the PIO position was never filled and remained unfunded. Currently the position of Assistant Administrator for Railroad Operations is funded in the base budget while the Public Information Officer position was transferred unfunded to the new department, as described by Ms. Kerschner. Mr. Spitler asked if the person who took the position was already being paid in another budget category. Mr. Miller replied that person was paid from the General Fund but the actual dollars he was paid were reverted as part of budget cuts, with the difference funded from the transfer of Tourism dollars. Mr. Spitler confirmed the money was taken from Tourism to pay the General Fund. Mr. Allard commented that the agency was requesting more money even with a drastic drop in the number of visitors. He wondered what promotional efforts were being made to draw more visitors. Mr. Miller explained a public relations firm had been hired to advertise and promote the two southern museums and it was planned to do this for all of the state museums. Mr. Miller ascribed some of the drop in visitors to Las Vegas's promotional campaign and increased tourism in that city. He said the Lost City Museum in Clark County, traditionally one of the most stable in attendance, had seen a dramatic drop in visitors. Mr. Allard asked how much was currently being spent on promotion and why it was not reflected in the budget. Mr. Miller said the trustees had decided to pay for promotion with private money from donations. Mr. Allard asked if promotion would increase the number of visitors, to which Mr. Miller responded that not advertising would certainly result in a further decrease in numbers of visitors. Mr. Price asked if consideration had been given to promoting museums through tour bus agreements with casinos. Mr. Miller said this was currently being explored with the Peppermill Casino. Mr. Close referred to E475 on page 398 of the Executive Budget which establishes an in-state travel budget for museum board members and staff, asking if the board members met last year when funds were cut. Mr. Miller indicated they did meet, either at their own expense or through the use of the previously mentioned private money. Mr. Close asked if the board met six times in the last two years. Mr. Miller said they did not. Four meetings were scheduled for this year, as a change in the law last session allowed the number of yearly meetings to be reduced. During the period of reorganization from what was then the Department of Museums and History to the Division of Museums and History, the number of meetings was reduced in an effort to save money. Mr. Miller indicated this issue was addressed in the Division's Expanded Program Narrative (Exhibit E). Mr. Miller discussed a one-shot appropriation for $280,000 for a compact shelving system at the Nevada Historical Society. Half of the shelving system was installed several years ago and greatly improved the institution's efficiency and reduced the need for additional space. Mr. Miller indicated this was very cost-effective when compared with constructing new buildings to increase space. Mr. Miller indicated the Division is composed of three employees and is currently authorized for four. It is recommended the fourth position, the Public Information Officer, be transferred into the new department. The other three positions include the Administrator, the Senior Accountant and the Assistant Administrator for Railroad Operations. Mr. Miller said the E475 decision unit requested operating funds for the board of trustees and travel expenses for board members and senior Division staff to attend board meetings. He referred to the Expanded Program Narrative (Exhibit E) which contains a breakdown of travel expenses. Mr. Spitler asked if board members were compensated and if so, where that appeared in the budget. Mr. Miller responded they received $60 for each meeting and this amount was reflected in the base budget. Mr. Miller said the enhancement also included operating expenses which had been eliminated as part of the budget cuts. The Division was able to absorb those costs to some extent because the Administrator, Senior Accountant and Assistant Administrator were all housed in the State Museum. The Division requests $2,200 in operating for each of the next two years. STATE MUSEUM, CARSON CITY - PAGE 401 Mr. Miller distributed and referred to a "Memorandum," (Exhibit F), addressed to both committee chairmen regarding an error in the base budget. The memorandum requests a decrease in the General Fund appropriation and an increase in the revenue section for Gifts, Grants and Donations in the base budget for Position Number 0037, Curator II. Mr. Miller said despite the reduction in museum attendance over the last two years, the Division has been able to reach its admissions target each year and collections gathering has been on schedule. Mr. Miller referred the committee to the Expanded Program Narrative (Exhibit G) for more information than contained in the Executive Budget. He discussed the M100 inflationary decision unit which is primarily for postage and indicated the M200 Demographics and Caseload decision unit for $95 is also for postage, stating while attendance at the door has dropped, communication via mail has increased. Mr. Miller referred to the M300 decision unit, indicating this was primarily due to an occupational study Personnel conducted during the interim which resulted in salary upgrades and associated increased fringe benefits. Mr. Miller discussed E475 which recommends a new position, Curator I (zoologist), to care for the collection of mammals, birds, reptiles, amphibians, fish and invertebrates. The museum is a repository for federal and state governments and currently has no staff member with the ability to care for this collection. Other costs in this decision unit include $960 for in-state travel to board meetings and for 22 employees to travel to other institutions in the state where they are expected to provide expertise. Another request in this decision unit is for $2,500 for the Exhibit Program, which is the foundation of the public education function served by the museum. Money is also raised from private sources to bring in exhibitions; however, this is an unstable funding source. Vice-Chairman Evans referred to performance indicators, asking why visitor counts fluctuated. Mr. Miller said attendance was expected to exceed 1994 figures. The 110,000 visitors projected on page 401 matched the previous year's number and closely approximate the previous three or four year's counts. In 1995, the number of visitors has dropped, a trend which is expected to continue. In light of this, projections were lowered. Mr. Miller indicated he did not expect the 1995 projection of 120,000 visitors would be met, although he did expect to exceed the 84,592 visitors in 1994. Mrs. Evans asked who did the projections and when Mr. Miller said he did, she asked why a projection was made that was not considered realistic. Mr. Miller said the 1995 projection was made two and a half years ago. Mrs. Evans confirmed that Mr. Miller had since revised that projection. She asked if income from admission fees was being calculated based on the revised projections. Mr. Miller responded yes; projected visitors for 1996 were 90,000 with projected admission fees of $140,633. He indicated as a result of the last legislative session, admission fees were raised to $3 for adults 18 years of age and older, a recommendation that was part of the budget package. A large proportion of visitors are school age children who do not pay admission fees; the projected admission fees have been adjusted for this. Mrs. Evans asked if admission fees had been adjusted for visitor count throughout the budgets. He said yes. Mr. Dini recommended improving marketing strategies. He suggested an agreement with tour bus companies whereby the bus would stop at the museum first. Mr. Miller agreed with this strategy, but said an agreement of this type required the museum to be open seven days a week and tour bus companies will not book tours for a facility that is closed two days a week. It was calculated that two more museum attendants would be required to open the museum seven days a week. This would not be cost effective as estimates showed the additional two days a week would generate $15,000 to $20,000 in additional revenue a year, far less than the costs of the two positions. Mr. Dini asked if privatization had ever been considered. Mr. Miller said privatization of the Railroad Museum had been discussed at great length. However, there were several obstacles: the mission of the agency was to collect and preserve and it was unlikely a private organization with similar interests could be found; private museums were not usually financially sound unless they were heavily endowed; and, the museum was in theory here in perpetuity to collect and preserve the State's history to be passed from one generation to another, which private museums typically do not do. Mr. Allard asked why, with the drastic drop in numbers of visitors, the agency required additional funds when state money was not used for promotion. Mr. Miller said the number of visitors was only one measurement of the museum's success. The need to continue other basic activities, such as collection and preservation, was as great as it ever had been. He referred to the Expanded Program Narrative (Exhibit H) which discusses other indicators of the success of a museum. Mr. Allard referred to the measurement indicators on page 401, pointing out that none of the indicators seemed to be increasing drastically, referring to Measurement Indicator 5, which shows 970 actual research requests filled compared to 900 projected in 1994. Mr. Miller responded the 900 projected was probably 200-300 higher than 1993. The balance of other efforts, such as collections and numbers of research patrons, has grown continually over the years. Mr. Allard mentioned Measurement Indicator 7, the number of new historic collections acquired, projected 190 with actual of 75. Mr. Allard asked if some of the collections could be stored when visitorship was down rather than maintaining them in expensive displays. Mr. Miller reported approximately only 9% of the total collections was on exhibit at one time. Vice-Chairman Evans pointed out that Mr. Allard's questions showed the Division's performance indicators needed extensive revision as they were not depicting the work being done. Vice-Chairman Evans recognized Mr. Renny Ashleman, Chairman of the Board of Trustees. Mr. Ashleman said the Division had gone from no admission fees to charging admission fees and then raising admission fees. The number of visitors dropped with the increase in fees, but income earned went up. He pointed out the Historical Society has expended considerable effort over the last four years in an attempt to locate better facilities at no cost to the state. A great deal of private endowment and other funds have been spent on promotion and it is proposed to increase that amount; however, there is a risk involved as the cost of fund-raising itself is great in comparison to the relatively small endowment. Mrs. Brower asked how long the public relations firm mentioned by Mr. Miller had been working for them and if they projected an increase in visitors. Mr. Miller responded the firm began working in September, 1994. An increase in visitors had already been seen in the Las Vegas Museum and attention was now being focused on the Lost City Museum. Mr. Spitler pointed out several of the budgets did not include an inflationary factor for utilities. Referring to the Utilities line item on page 401 and inflationary factors listed on page A19, Mr. Spitler indicated these were not factored in throughout this budget. Mr. Miller deferred to Mr. Jere Schultz, Budget Analyst. Mr. Schultz responded in many cases, museum utilities had been paid out of private funds and some enhancement packages included utilities, but this particular budget did not. Mr. Spitler said he wished to cite a question on page 401 which repeats itself on page 402, on page 403 and throughout these budgets. He indicated those inflationary increases alone could raise this budget 7% higher in those line items. Mr. Spitler asked for either a revision to be done and be brought before the committee or for assurance that the budget office was comfortable with the figures. Mr. Schultz indicated this would be done. Vice-Chairman Evans said this approach caused problems for the committee as they expect the completed budget to be correct with all calculations done; the committee would prefer not to have responsibility to augment the budget. NEVADA HISTORICAL SOCIETY - PAGE 407 Mr. Miller indicated the inflationary requests under the M100 decision unit were for postage. The M300 decision unit covers recommended upgrades from an occupational study done by the Personnel Department. Within the E475 decision unit, one position is recommended for a Curator of Photography; this position has been vacant for four years. The Nevada Historical Society houses and manages the largest single collection of historic photographic material in the system, one of the largest in the state. This position would allow for the proper care and use of those photographs, by researchers, scholars and University personnel, as well as the long-term preservation of the photographs. This decision unit also reflects travel and operating expenses generated by this position. A request for $4,000 is for exhibits rented from other institutions, such as the Smithsonian. The recommendation for Conservation is an addition of $1,500 to the existing base budget. This would provide for care of the oldest and most fragile artifacts in the collection, such as maps, books and the original state flag. Proper conservation care can only be conducted in a few places and these funds are used to pay professional conservators. Chairman Arberry referred to the agency transfer on page 407, stating the Governor recommended less, and asked for an explanation. Mr. Miller said the agency recommended a swap of two positions; a Custodian moved from this budget account to the Railroad Museum account and an Accounting Specialist position moved from the Railroad Museum budget to the State Museum where the position actually did the work. He deferred to the Budget Office for an explanation of the exact dollar amounts. Mr. Schultz indicated he would research the question and report back. Dr. Peter Bandurraga, Director of the Nevada Historical Society, responded this question had been a point of confusion with the Budget Office for some time. This line item is used to fund three part-time positions with private funds. When the statutes were revised in 1989, the ability to hire people outside the state system was lost. The Historical Society has authority for four part-time privately funded positions; currently three are filled. He indicated some of the confusion is that two of the part-time positions are filled by one person and there is some discrepancy in accruing benefits. He said this money has never come into the budget; one position has been vacant for three years and he would like to fund that position. Chairman Arberry asked if the Governor's recommendation of $51,000 would be sufficient when the agency had requested $60,000. Mr. Bandurraga responded the Governor's recommendation would be sufficient for the positions. He indicated the request was based on the requirements of all four positions; however, when the budget was balanced the Historical Society agreed with the Budget Office a reduction in those numbers would be appropriate. He indicated no state money was involved, only the authority to use private money in the budget. Chairman Arberry asked Dr. Bandurraga to provide calculations on how this was done. Dr. Bandurraga indicated Mr. Schultz would provide them. Ms. Tiffany referred to the measurement indicators on page 407, requesting an explanation of projected numbers and asking what impact charging a fee has had on admissions. Dr. Bandurraga responded the count of 58,641 visitors was before the Historical Society began charging admission on July 1. He indicated through the first six months the number of visitors has been approximately half of that; projections have been reduced accordingly. He said national statistics show museum attendance dropping to 50%-60% when admission is charged. Approximately 6,000-7,000 school children tour the museum annually and are not charged admission. In an attempt to allow for this and not to overestimate revenue from admissions, the projections were reduced. Ms. Tiffany suggested in the future, measurement indicators include a breakdown between children and adults. Ms. Giunchigliani asked Dr. Bandurraga what statute was changed that allowed state employees to be hired and paid for by private funds. Dr. Bandurraga replied NRS 381, the organizing statute for what was then the Department of Museums and History. Ms. Giunchigliani asked the Budget Office if any other state employees were paid from private funds. Mr. Schultz responded yes, deferring to Mr. Miller, who said the Lost City Museum had two Career Aide positions; the Nevada Historical Society had four positions; the Nevada State Museum had five positions; the Archeological Services Division in Douglas County had one and the Railroad Museum had one-half position paid from private funds. Ms. Giunchigliani expressed concern over this practice, indicating it jeopardized those individuals if private dollars did not materialize. Were those individuals out of employment or was the State obligated to make up the difference? Dr. Bandurraga indicated the positions were similar to "soft money" State positions and would disappear if there was no funding. He said nationally this was a common practice in museums, as most museums were moving toward a balance of private and public funding. Ms. Giunchigliani questioned the contractual arrangement with those employees. Mr. Ashleman indicated they had been kept on private contracts, which was about 30% cheaper; however, the Legislature insisted they be put on the State payroll. Mr. Spitler referred to E710 on page 409 of the Executive Budget, asking if this equipment was in addition to what was requested in one-shot appropriations or if this was a duplicate request. Mr. Miller indicated it was in addition to the one-shot appropriations and there was no duplication. NEVADA STATE RAILROAD MUSEUM - PAGE 411 Mr. Miller indicated he would discuss only the maintenance and enhancement sections of this budget unless there were other questions. Chairman Arberry yielded to Mr. Gary Ghiggeri, Deputy Fiscal Analyst, who discussed performance indicators. He explained the Department was not able to change their performance indicators, so the projected performance indicators reflected in the budget throughout the Department of Museums, Libraries and Arts are the performance indicators that were projected prior to the `93 Legislature, which results in the discrepancies between what is projected for `95 based upon the `94 actual and what is projected for `96 and `97. Mr. Close questioned why the Department was unable to change their performance indicators. Mr. Ghiggeri indicated that question should be referred to the Budget Office which controls printing of the budget document. Mr. Schultz said the performance indicators projected for `94 and `95 were from the previous biennium. He said the pertinent performance indicators are the actuals for `94 and the projected for `96 and `97. With two sets of projected numbers, the Budget Office chose to use those from the previous budget. Mr. Close observed this made the Department look bad because the committee needed that information to make decisions. He felt an addendum should have been done to provide the proper projections, and he hoped this would not permeate the remainder of the budget document. Ms. Janet Johnson, Deputy Administrator for Budget, responded this would permeate the budgets. She said the Budget Office took the stance that the original projections for performance indicators made two years ago during the budget process and again displayed in `96 and `97 were the projected numbers. She indicated new projections could be provided if the committee wished; however, the Budget Office's concern was that projections could be anything to make numbers look good and changing the indicators to more closely match reality did not say anything either. Mr. Price asked if it wouldn't be more accurate and fairer to the citizens and the Legislature if projections were made on an annual basis. Mr. Miller said anything which prevented comparisons between two bienniums worth of data would make things easier to comprehend. Vice-Chairman Evans suggested to Ms. Johnson in the future to include a column called "Revised" in addition to "Actual" and "Projected" columns. Ms. Johnson indicated this was an excellent idea and the Budget Office would incorporate that suggestion. Mr. Allard suggested projections be based on previous history and trends while taking into consideration any stimulus injected into the system, such as raising the visitor admission fee. Mr. Miller returned to a discussion of the Nevada State Railroad Museum budget. He indicated the M300 decision unit contained increases resulting from the curator's occupational study. E475 requests the increase of two positions from half-time to full-time, a Grounds Keeper and a Custodian. He explained maintenance was more than half-time positions could handle with thirteen acres of grounds and 40,000 square feet of building within six different facilities, eleven restrooms and a large lawn area. He said $1,000 is requested for Exhibits in each of the two years. It is requested the Rail Car Restoration Program be reinstated after it was reduced during budget cuts in 1991. The Utilities budget was not expanded over the years as buildings were added, with the result that donations money was used to pay $8,772 in electric and gas during the past year. The budget requests compensation for that and an increase in the Utilities budget to reflect actual costs. E900 recommends a custodial worker be transferred into the State Railroad Museum from the State Museum. E901 requests an Accounting Specialist be transferred from the State Railroad Museum to the State Museum as that position conducts work for all the agencies in Carson City and it would more appropriately be under the State Museum budget and more properly reflect the work being done. Vice-Chairman Evans asked if the Department was trying to open seven days a week. Mr. Miller said that was not anticipated as the two additional positions needed would cost more than the revenues that would be generated. RAILROAD DEPOT - EAST ELY - PAGE 415 Mr. Miller said the Railroad Depot was created in 1989 by virtue of the State taking over control and possession of two historic structures on the grounds of what was the Nevada Northern Railway in Ely. A curator was hired in 1992. Vice-Chairman Evans indicated the only item the committee was concerned with was repairs and renovations and asked for the status of the renovation request. Mr. Miller said there were two buildings, a freight barn and a depot which contains the museum. Approximately $123,000 in capital improvement funds have been used for stabilization of the depot; it is stable and is currently being used. The freight barn is unusable from a public standpoint as the roof is in very poor repair and the building will be lost within five years by public works estimate. Funding for that project was requested but was not received. STATE MUSEUM - LAS VEGAS - PAGE 419 Mr. Miller said the M100 inflationary decision unit was for postage. The M300 decision unit reflects fringe benefit adjustments and the cost of occupational study recommendations. The E475 decision unit contains a recommendation for a Curator of Manuscripts. This position had been authorized in 1991, but it was never filled. He pointed out the agency continued to receive documented and printed history of Las Vegas and, as the only state museum in Las Vegas, was the only repository. A person was needed who knew the proper preservation techniques to handle these historic documents. Ms. Giunchigliani asked the Budget Office what salary was projected for the position. Mr. Schultz indicated the salary was $26,239 the first year, $27,480 the second year without benefits. Ms. Giunchigliani asked if someone could be hired for this salary to run the Museum. Mr. Miller indicated this was not the Director's position; the director's position was in the unclassified service and would appear in a separate bill. Ms. Giunchigliani asked what salary was recommended for that position. Mr. Miller replied approximately $50,000 with benefits. Ms. Tiffany questioned an error in the performance indicators. Mr. Miller said projected for `94 should be 42,000 visitors, not 4,200 as printed. Ms. Tiffany requested a better breakdown between children and adults in the future as numbers of visitors appeared to have increased while revenues have stayed the same. She asked Mr. Miller to discuss this discrepancy. Mr. Miller indicated promotional efforts were directed to the public at large. An exhibit which opened last October was on bats and attracted more children than adults; the numbers of children could not really be projected. The numbers could be tracked but it was very difficult to predict before the fact how many children would visit. Admission was not charged for anyone under 18 years of age. Mr. Allard asked if concessionary items were sold at the museums. Mr. Miller replied there was a museum store at each location except Ely. Mr. Allard asked where these revenues were reflected. Mr. Miller responded all revenues from the stores were declared by statute in 1989 to be private funds; they were put back into the private budget and spent through an expenditure budget approved by the trustees. He indicated each expanded program narrative contained a projection for private revenues; expenditures would not be set until the trustees meet at the end of the fiscal year. Mr. Allard asked how much museums had made from the stores in previous years. Mr. Miller said the gift shops varied widely. The Railroad Museum and the State Museum would net anywhere from $40,000 to $60,000 a year. The balance of revenues came from a variety of other sources such as gifts, grants and donations and restricted endowments. Those monies are invested by the trustees in a variety of instruments where there is a return on investments, constituting another segment of private money. The bulk of earned revenue comes from the gift shops. Vice-Chairman Evans referred to M100 on page 420, asking why only $301 of the $5,150 request was recommended by the Governor. Mr. Miller deferred to Mr. Schultz who said the operating expenses of $301 included postage and insurance. Vice-Chairman Evans indicated there was a large disparity between the requested amount and recommended amount. She requested Mr. Schultz meet with Fiscal Analysis staff to discuss this matter. Ms. Tiffany returned to a discussion of the Railroad Depot in Ely, noting this year was a good time to request additional money, and asking Mr. Miller to provide an estimate for a new roof on the freight barn. He indicated he would do so. Mr. Close, referring to the State Museum in Las Vegas, mentioned the difference between what was requested in Personnel Expenses and what the Governor recommended, and asked if that figure would be sufficient. Mr. Miller replied the difference was in the manner fringe benefits were calculated and the amount was adequate. LOST CITY MUSEUM - PAGE 423 Mr. Miller referred to the maintenance items on page 424. Under M100, operating expenses are for postage and insurance. M300 includes salary increases related to occupational studies involving curator positions. The E475 decision unit contains a $6,527 increase in personnel expense which is actually private revenue, not general fund, to increase the current position from 75% time to 100% time. In-state travel requests $497 for travel between Overton and Las Vegas and for the Curator to attend board meetings in Carson City or Reno. He indicated the utility category had been underfunded for the last two years and the figures shown in E730 would pay the agency's electrical bill for the next two years. Mr. Spitler questioned the CIP for adobe. He asked if the CIP would stop the deterioration of adobe or if it would simply bring the adobe up to standard for a time before deterioration continued. Mr. Miller indicated adobe was made to deteriorate and it was possible these repairs would need to be made every two to three years for as long as that building stood. The actual composite material in that adobe had never been located and different types of adobe do not mesh well. Mr. Spitler indicated this matter might be considered in CIP's as the dollar amount would be extensive. COMSTOCK HISTORIC DISTRICT - PAGE 427 Mr. Ronald James, State Historic Preservation Officer, testified in his capacity as Comstock Historic District Commissioner. He introduced Bernadette Francke of the Comstock Historic District and indicated Andrea Daley, Chair of the Comstock Historic District Commission, was in the audience. Mr. James distributed a handout (Exhibit I) of corrected measurement indicators. He discussed the District's one-shot appropriation request in the amount of $1,350, indicating $1,300 of the request is for a fax machine and $50 of the request is for a Polaroid camera to be used in site documentation. Mr. Fettic asked who generated the figure for the fax machine. Ms. Bernadette Francke, Inspector Clerk to the Comstock Historic District Commission, reported State Purchasing provided this figure based upon the proposed purpose and use of the fax machine in the one-person office. Mr. Allard commended the agency for rising performance indicators and decreasing general fund allocations. HISTORIC PRESERVATION/ARCHEOLOGY - PAGE 431 Mr. James indicated the Chairman of the Board of Trustees, Dr. Bandurraga, was present in the audience. Mr. James pointed out a typographical error in the performance indicators, stating indicator number 8 should read "Number of" rather than "Percentage of." He said in the 1994 federal fiscal year the district reviewed 691 federal undertakings within the state of Nevada while in 1984, the district reviewed 124 federal undertakings, a growth of 557%, with virtually no change in staff over those years. Through permission of the Interim Finance Committee, a new 100% federally funded staff person was hired to help address this growth. The budget for the State Historic Preservation Office requests an additional person to replace the secretarial position lost during the last round of budget cuts. He reported the position was lost in addition to the percentage each agency was required to cut when the incumbent accepted a promotion after the budget cuts were made, and the position was frozen. Mr. James reported even with the additional staff person, Nevada has the smallest State Historic Preservation Office in the nation. He indicated the small staff works efficiently and well together and he felt one additional person would blend into this group. The additional position will handle clerical duties and also address the Historic Marker Program, unfunded in the last biennium due to budget cuts. There are 251 historic markers throughout the state, many of them in serious need of repair, and some stolen by vandals. The Governor's budget recommends $1,000 to help rehabilitate the markers. Ms. Tiffany commended the agency for normally asking for less than they really required; however, she indicated this might be the time to ask for complete repairs of the markers, possibly a one-shot appropriation, as Nevada is a tourism state and people pay attention to the markers. She requested Mr. James provide information regarding the total number of markers, what repairs were needed and what that cost would be. Mr. James said the original request was for $10,000, for which an estimated 10% of the markers could be rehabilitated, with each marker addressed every ten years. He indicated $1,000 would allow work to continue with the Boy Scouts, a program which ended with budget cuts, whereby paint and supervision are provided and the Boy Scouts do the actual refurbishing. Mrs. Chowning indicated her distress at the lack of funding for the historical markers, saying the agency really needed more than the $1,000. She asked why $10,600 in information services was not recommended and she asked what had been planned for that money. Mr. James indicated that was part of the Department's one-shot appropriation and he understood it was recommended. Mrs. Chowning asked where in the budget a request for brochures appeared. Mr. James said that request had been in the Comstock Historic Division budget last biennium; once again the agency requested funds for reprinting those brochures but that item was not recommended. He indicated the brochures were for walking/driving tours of the Comstock Historic District. Last biennium 10,000 brochures were printed, they were distributed to people interested in spending time on the Comstock, and were very well received. Mr. James said he had probably 100 brochures remaining. Mrs. Chowning asked how much it would cost to reprint the brochures. Mr. James replied $12,000 was the estimate to reprint 10,000 copies. Ms. Giunchigliani said last biennium the District was on a four-year cycle for reprinting and confirmed that cycle was four years off schedule. She asked how long 10,000 brochures would last. Mr. James reported that number of brochures could be stretched to three or four years as brochures were given only to people who expressed genuine interest. Ms. Giunchigliani asked if the $10,000 requested for historic markers would add any new markers or only rehabilitate existing markers. Mr. James gave some background on the Historic Marker Program, saying it was instituted in 1964 in celebration of the Nevada State Centennial; the philosophy of State Parks at that time was to create as many markers as possible. He said this has proven to be a liability as a marker damaged by vandals creates a worse impression than no marker at all. Ms. Giunchigliani asked, in addition to the information requested by Ms. Tiffany, if an outline of a cycle for additional markers could be included. She also asked when the program with the Boy Scouts was instituted, suggesting a program also be developed with Girl Scouts. Mr. James thought the program was developed during the 1987 session. Mr. Spitler asked exactly what could be done with $1,000. Mr. James said $1,000 would buy paint for use by the Boy Scouts and Girl Scouts and would possibly install two bronze markers that were never installed because of budget cuts. He said the topic of new markers was important as some sites existed that should be marked; an additional one to two markers a year would be a good target number. Some sites should not be marked as they have proved very vulnerable to vandalism. In prior years aluminum and steel markers, which are very vulnerable to the environment, had been transformed into bronze markers, either mounted on a building or on a concrete pedestal, like the one in front of the Capitol. These are low maintenance as long as they are not placed in high vandalism areas. Mr. Spitler confirmed the $1,000 would take care of cosmetic repairs and seating two markers. Mr. Spitler said in the past Prison Industries had been involved with the creation of the markers and asked if they were still involved. Mr. James said they were not as the program was inactive. Mr. Spitler asked if the program were reactivated, would Prison Industries become a part of it again. Mr. James said yes, and indicated Prison Industries had produced the aluminum and steel markers but did not have the capability to produce concrete and bronze markers. NEVADA STATE LIBRARY - PAGE 435 Ms. Joan Kerschner, State Librarian, discussed measurement indicators on page 435. She indicated the number of reference questions answered would be static, primarily because staff losses sustained two years ago resulted in only one person at a time manning the reference desk with people now advised to come into the library. Projections for `96 and `97 are lower than the projection for `95. However, a balancing statistic is the number of people actually coming in to the library to do research: when there were two full-time reference librarians in 1994, 15,000 people came to the library; now with only one librarian on staff, 19,000 people came to the library. Other performance indicators include circulation figures for the blind and handicapped, a program expanded through the use of volunteers, projected at 42,900 for 1994 with an actual count of 73,557. Ms. Kerschner mentioned the M100 decision unit for increases in inflation and postage. M200 represents the return of some staff lost in the previous budget cuts; nine and a half positions were lost originally. The return of half-time students and Public Service Interns is recommended at a very low cost. In the past, these positions handled clerical duties and materials management, leaving the librarians free to help people with research questions. Ms. Kerschner discussed E250. She indicated previous funding in this category was used to purchase the statewide catalogue on CD ROM, seen in virtually every library in the state. This program has been phased out in favor of on-line services. This recommendation will allow the upgrade of telephone lines that connect the libraries to digital lines to increase the capacity of people who can dial in and use the collections from home, offices and other libraries. Ms. Giunchigliani questioned a piece of equipment for the blind or hearing impaired from last session. Ms. Kerschner replied two enhancements were made last time relating to the blind and physically handicapped in the ADA Program; one was an ADA coordinator position who helps with translations for people who need information from other agencies. She said brailling is also provided as is access with TDY's. Some equipment was also provided. Ms. Giunchigliani confirmed that no new equipment for handicapped patrons was requested. Mr. Spitler referred to E325, asking how the federal money to be replaced by general fund money was to be utilized. Ms. Kerschner said prior to the 1993 budget, federal money throughout this budget was expended in category 12, grants to local public libraries. Because of budget cuts, a $151,000 book budget was requested which was all in revenue earned. She expressed her appreciation to the committee for their help in restoring some of that funding last session. The Governor recommends the budget be fully restored and included category 12 to be regranted to public libraries. Basically, money was used to subsidize some of the general fund budget that formerly was expended on behalf of public libraries. Mr. Spitler asked Ms. Kerschner to determine where that federal money was reflected. She agreed to provide documentation. Ms. Kerschner said restoring the student positions and restoring book funding were the only items of interest in this budget. Chairman Arberry asked if the increase in the book budget was comparable with that recommended for the libraries at UNR and UNLV. Ms. Kerschner responded there was only a very small increase in the book budget. She stated the book budget authorized by the Governor and this committee in 1992 was $182,000; this book budget is $153,000. Mr. Schultz said there was virtually no change in the book budget; in 1994, the budget was $153,000 with approximately $140,000 actually spent. He said the decision unit includes an extra $5,000 to enhance the book budget but that is only to bring it back to previous levels. Chairman Arberry asked what inflationary increase was provided for the book budget. Ms. Kerschner said no such increase was reflected in this budget, and Mr. Schultz said there was no inflationary increase for the book budget. Chairman Arberry asked then about the gap between the State Library's book budget and the inflationary factors given to the UNR and UNLV libraries. Mr. Schultz indicated he did not know what inflationary increases were given to the University book budgets but he would research this information. Mrs. Evans asked where the position for the Director for the State Library appeared. Ms. Kerschner indicated she requested the position remain on the books but she did not request funding for it. Mr. Schultz added the position was still listed but was unfunded. Mrs. Evans asked the Budget Office how long that could be expected to continue, stating that Nevada has always had a State Librarian, a new facility has been opened and the Department has been expanded. She said the performance indicators reflected the problems involved in having one person act as State Librarian and as Director of Museums, Libraries and Arts, and leaving the State Librarian position vacant was contrary to what had been accomplished with building a new State Library. Mrs. Evans indicated this also impacted the work of the Legislature as the State Library was a primary source of information. She expressed concern about the crippled State Library under present conditions and hoped this issue would be revisited in terms of funding the position of State Librarian. ARCHIVES - PAGE 441 Ms. Kerschner discussed performance indicators, explaining the projected number of records received was based on a survey to find out how many records needed to be transferred to the new building. Actual figures are lower because those records have not been transferred to the new building due to staff cuts and space limitations. She said some of that would be addressed in this budget if the one- shot remodel appropriation is approved; those records would be brought in and actual figures would come up to the projection. Ms. Kerschner indicated prior to budget cuts there were fifteen employees in this budget; there are now five. To offset this cut, the Archives Research Room was closed five hours a day and is now open four hours a day. This budget recommends two positions, an Archivist and an Archives and Records Assistant which would allow the Research Room to reopen nine hours a day. She indicated this would also improve the department statistics because there would be better access to both records and archives through the Archives Research Room. E125 requests funding for furniture, equipment and operating to support the two new positions and the increased time the Research Room would be open. E475 includes a recommendation for funding for the State Historical Records Advisory Board. This was omitted last biennium and that board has been traveling on their own. This also includes operating costs. Staff would travel on the out-of-state travel budget and use these operating expenses as well as the advisory board. Chairman Arberry requested further information on the travel budgets, asking if the advisory board would be using out-of-state travel. Ms. Kerschner explained the narrative should read "This recommendation provides funds for the State Historical Records Advisory Board in-state travel and staff in-state and out-of-state travel." She said the out-of-state travel was primarily done by staff as members of professional organizations. She said their staff was considered to be expert in imaging and microfilming and records storage, and they tried to stay state-of-the-art by attending professional conferences. Staff had not been able to do that on this budget before. In-state travel is for the board. Chairman Arberry asked where staff traveled out-of-state. Ms. Kerschner replied a list of all activities was included in the original budget submission and she would provide that information. She said the travel would be nationwide, depending on where the national conferences were held. Chairman Arberry indicated he would like a list of the potential travel destinations. Ms. Kerschner continued E476 was an increase in the amount of photocopy and other records search costs based on the fact that the Records Research Room would be open more hours. E477 is an anticipated grant from the National Historic Preservation Records Commission for review of the status of records keeping and preservation in the State. The board does administer this grant which was provided ten years ago. A status report was provided to NHPRC and they have requested another study be done in Nevada, and it is anticipated NHPRC will fund it. Ms. Kerschner discussed a recommended program transfer of the State Micrographics equipment and personnel to State Archives. This transfer also appears in the State Printing budget. A list of the staff that would be transferred was distributed (Exhibit J). She explained at the present time the Micrographics Lab was being operated under interagency agreement from the State Printing Office. The recommendation is to move it into the Archives budget. She pointed out Nevada was the only state where micrographics was not aligned with records management. The building was designed to include this area; however, it was not feasible to make the physical move until now. Mr. Spitler asked if E477 was a federal grant to be provided to the Historic Records Advisory Board who would then fund a study from the federal grant. Ms. Kerschner confirmed this. He then questioned the difference between $40,100 listed for Historic Records Advisory Board in the budget summary for Archives and $38,995 listed for the Historic Records Advisory Board in E477. Ms. Kerschner indicated she believed some of the revenue was in another part of the budget for board travel. Mr. Spitler asked who would actually get the grant. Ms. Kerschner said the Nevada State Library and Archives would be the fiscal agent. She indicated the agency was eligible for this grant because there is a State Historic Records Advisory Board to develop the project, monitor it and write the grant and the Board would continue to do that. Mr. Spitler requested Ms. Kerschner provide more detail regarding the grant. She indicated she would do so. Chairman Arberry referred to the Archives budget, questioning whether Micrographics should be a separate budget and if this had been considered during discussion with the State Budget Office. Mr. Schultz responded when the merger was considered in September, it was understood Micrographics would be part of the Archives budget. However, as the budgets have been developed it was decided Micrographics should be one separate budget and Archives another. Chairman Arberry stated the budget accounts did not reflect this and asked if a revision would be forthcoming. Mr. Schultz said a revision would be done if necessary. He indicated the numbers would not change at all, but for accounting purposes it was felt a separate budget would be more effective. Chairman Arberry indicated it was necessary to see a revision reflecting the two separate budget accounts. Mr. Schultz said his office would provide this information. NEVADA STATE LIBRARY - LITERACY - PAGE 447 Ms. Kerschner indicated Danny Lee, Chairman of the Advisory Board for Libraries and Literacy, was present in the audience. She said previously there were two separate boards; however, combining the two has made both more effective. Ms. Kerschner distributed new measurement indicators for the Literacy budget (Exhibit K) as there were some typographical errors in the Executive Budget. She pointed out the number of students served by the Literacy Project is calculated for the entire Literacy Coalition (for all units providing volunteer services or ABE programs). They are projected to go down slightly because money from the State Legalization Impact Assistance Grant was running out. This money provided for aliens to obtain their citizenship. The loss of this money will not allow as many classes for that population as were held in the past. She discussed the rising number of volunteers who are trained as tutors to provide one-on-one tutoring. The number of hotline calls denotes those calls referred to other programs at the state level. There are currently about 200 literacy providers in the state. Ms. Kerschner indicated adjustments to the base budget are due to the fact that salaries for the one and a half positions have been on general fund money. The program had been operating on Title VI federal literacy money which was out of the library program. That money has been eliminated so the budget recognizes that and provides $10,000 for operating in the General Fund budget. It also recommends an existing half-time position be expanded to full-time to assist with bi-lingual programs, a major part of the program. It is anticipated that all operating will be from two discretionary grants which have been applied for. She indicated these grants have been received each time they have been applied for. One is a teacher training grant from the ABE program which allows for tutor training statewide; the other is the National Literacy Act which allows for development of a resource center for the use of all 200 programs statewide. NEVADA STATE LIBRARY - CLAN - PAGE 451 Ms. Kerschner indicated this was no longer the Central Libraries Automated Network but was now Cooperative Libraries Automated Network because the network was not central anymore; the network crosses the entire state. Five counties have been added to this budget: Elko, Eureka, Lander, Humboldt and White Pine. Ms. Kerschner reported this entire budget account was from revenues generated by each of the local counties. This budget operates the automation system which statewide has grown radically. The numbers of circulations and clients served has grown steadily with the new populations. The Network is linked to all libraries in the state to provide these services. There being no further business, Chairman Arberry adjourned the meeting at 11:00 a.m. RESPECTFULLY SUBMITTED: Deborah Salaber, Committee Secretary Assembly Committee on Ways and Means January 24, 1995 Page