MINUTES OF THE ASSEMBLY COMMITTEE ON WAYS AND MEANS Sixty-eighth Session April 12, 1995 The Committee on Ways and Means was called to order at 7:06 a.m., on Wednesday, April 12, 1995, Chairman Jan Evans 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: 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. Morse Arberry, Jr., Chairman (Excused) Mr. John Marvel, Chairman (Excused) STAFF MEMBERS PRESENT: Mr. Mark Stevens, Fiscal Analyst Mr. Gary Ghiggeri, Deputy Fiscal Analyst ASSEMBLY BILL 34 Makes appropriation to budget division of department of administration to reimburse legal division of legislative counsel bureau for expenses involved in preparing bill drafts requested by state agencies. Mark Stevens, Fiscal Analyst, reported there had been questions concerning charging non General Fund agencies for bill drafting services during the Legislative Session. He indicated bill drafting services could be charged through the Statewide Cost Allocation Plan to capture those non General Fund dollars. No attempt has been made at this time to bring in the non General Fund dollars; however, if the committee wished, work could be done to lower the General Fund appropriation. Mr. Stevens said A.B. 34 provides a traditional one-shot appropriation as has been done for many legislative sessions. Ms. Giunchigliani inquired whether the committee's intent relative to future handling of charges for bill draft services should be addressed. Mr. Stevens responded a letter could be written to the Budget Director asking that bill draft services be included in the Statewide Cost Allocation Plan. ASSEMBLYWOMAN GIUNCHIGLIANI MOVED DO PASS ON A.B. 34 WITH THE INCLUSION OF A LETTER OF INTENT THAT IN THE FUTURE COSTS FOR BILL DRAFTING SERVICES WILL BE PART OF THE STATEWIDE COST ALLOCATION PLAN. ASSEMBLYMAN SPITLER SECONDED THE MOTION. Mr. Hettrick questioned the equity of including bill drafting services in the Statewide Cost Allocation Plan. He also asked whether entities outside of state government, such as counties, would be charged for bill draft requests. Mr. Stevens said the Legal Division of the Legislative Counsel Bureau records the amount of time spent drafting bills for each agency; this information would be used to develop costs assessed to each agency through the Statewide Cost Allocation Plan. Mr. Dini indicated this issue was raised several sessions ago because the Legislature's budget kept increasing as a result of the time spent on bill draft services for the Executive Branch. Mr. Hettrick observed that if agencies are currently being charged based on the time spent on each agency's bill drafts, perhaps no change should be made. Perry Comeaux, Director of the Department of Administration, said the $125,000 appropriation comes from General Fund and currently there is no allocation. If bill drafting costs are included in the Statewide Cost Allocation Plan, part of that cost would be absorbed by agencies funded through federal grants and fees. The allocation for 1997 would be based on the number of bills requested in 1995. Mr. Hettrick expressed his agreement with allocating costs based on an agency's use of bill drafting services. Ms. Tiffany asked when agencies were required to have bill drafts submitted to the Legislative Counsel Bureau. Mr. Comeaux responded Executive Branch bill draft requests must be submitted to the Department of Administration in August or September and to the Legislative Counsel Bureau by September or October. Ms. Tiffany then inquired when the budget is finalized. Mr. Comeaux said the budget is completed by the end of December or first of January but noted it takes several months to put the cost allocation plan together which is why two year old data is used. Mr. Stevens reiterated the Legal Division does track the number of bills and the time spent drafting those bills so that information is available to be included in the Statewide Cost Allocation Plan. Chairman Evans asked whether the net effect of inclusion in the Statewide Cost Allocation Plan would be worth the additional bookkeeping that would be necessary. She added it would be simpler to handle bill draft service costs through a one-shot appropriation. Chairman Evans reiterated the motion on the floor was Amend and Do Pass on A.B. 34 to include a letter of intent. Chairman Evans called for a vote. THE MOTION CARRIED UNANIMOUSLY. (ASSEMBLYMAN CLOSE WAS NOT PRESENT AT THE TIME OF THE VOTE.) **************** ASSEMBLY BILL 71 Increases balance on motor vehicle revolving account. Mr. Stevens explained A.B. 71 increases the motor vehicle revolving account from $20,000 to $50,000. The account provides cash for each Department of Motor Vehicles office for cash transactions. Mr. Stevens said $10,000 of the increase would be held in reserve for the Henderson office which has not yet been approved in the Capital Improvement Program. If approved, it will take 1-2 years to build and the agency could request additional funds in 1997 if needed then. Staff recommends that $10,000 be eliminated from A.B. 71 which would change line 3 to $40,000 and in line 6 the appropriation from the Highway Fund would be changed to $20,000. Chairman Evans noted the motor vehicle revolving account has not been increased since 1987. ASSEMBLYWOMAN GIUNCHIGLIANI MOVED AMEND AND DO PASS ON A.B. 71 TO CHANGE LINE 3 FROM $50,000 TO $40,000 AND LINE 6 FROM $30,000 TO $20,000. ASSEMBLYMAN HETTRICK SECONDED THE MOTION. Ms. Tiffany asked whether change for all agencies is normally handled in this manner. Mr. Stevens explained the Board of Examiners has the authority to authorize change funds for state agencies up to approximately $2,000-$3,000. The amount in A.B. 71 is much larger and falls outside the Board of Examiner's authority so must be handled through statute. THE MOTION CARRIED UNANIMOUSLY. (ASSEMBLYMAN CLOSE WAS NOT PRESENT AT THE TIME OF THE VOTE.) ***************** ASSEMBLY BILL 80 Revises provisions governing certain grants of financial assistance made by commission for cultural affairs. Mr. Stevens explained A.B. 80 would authorize up to $20 million in general obligation bonds. Grants from those bonds could not exceed $2 million per year and bonds could be sold all at once or in segments. The 1993 Session authorized $2.5 million for bonds which were sold and grants were made. Ms. Giunchigliani questioned page 2, section 1, subsection 5. Mr. Stevens explained $20 million in bonds are authorized over a 10 year period, or $2 million per year. Page 1, line 6 indicates $2 million per year can be expended. Ms. Giunchigliani inquired what the impact would be. Mr. Stevens said general obligation bonds could impact the property tax rate; whether this would happen would depend on what is approved in the Capital Improvement Program. The Governor's budget for capital improvements would not increase the current property tax rate that is imposed for bonding at the state level. Ms. Giunchigliani observed there had been some concern regarding how grants were awarded. Mr. Stevens cited current law which states "the Commission for Cultural Affairs may in establishing a program for awarding financial assistance award financial assistance to governmental entities and non profit corporations for educational and charitable purposes including without limitation the preservation or promotion of cultural resources, establish the conditions an applicant must satisfy to receive an award for financial assistance..." Ms. Giunchigliani indicated the language may need to be strengthened. Mr. Spitler recalled in 1991 a board was established to ensure resources were more equally allocated throughout the state. That board does not report back to the Legislature. If A.B. 80 is passed, strengthening the language would merit further discussion in terms of providing for Legislative input concerning distribution of resources. Mr. Allard asked whether funding would be used for special events or buildings. Mr. Stevens responded historically it has been used to restore or improve buildings. ASSEMBLYWOMAN GIUNCHIGLIANI MOVED DO PASS ON A.B. 80. ASSEMBLYMAN DINI SECONDED THE MOTION. Mr. Dini commented last session there had been considerable discussion relative to statewide distribution. The board took into consideration the fact that there are probably more historic structures in northern Nevada than in southern Nevada but several projects were completed in southern Nevada. He expressed support for the program and its ability to help preserve Nevada's culture. Chairman Evans called for a vote. THE MOTION CARRIED UNANIMOUSLY. (ASSEMBLYMAN CLOSE WAS NOT PRESENT AT THE TIME OF THE VOTE.) **************** ASSEMBLY BILL 176 Establishes formula for determining mobility of pupils. ASSEMBLY BILL 275 Makes appropriation to department of education for distribution to county school districts for reimbursement of expenses related to transient pupils. Assemblyman Doug Bache, Assembly District 11, said A.B. 176 establishes a formula for student mobility or transiency rate. The information would allow student mobility to be tracked within one school district, from one school district to another within the state or from one state to another. Mr. Bache said A.B. 275 provides an appropriation of $150,000 for each year of the biennium to assist those schools and school districts with high transiency rates. It is also hoped the information will be useful to the State Department of Education to more accurately track students who have dropped out and those who have transferred to another school district. Chairman Evans requested explanation of the importance of tracking the movement patterns of students. Mr. Bache explained schools with high turnover rates experience a financial impact through loss of books and the movement in and out of students. Ms. Giunchigliani observed high transiency rates also affect a school's test scores. Mr. Bache noted the information would enable more accurate comparison of student test scores. Ms. Giunchigliani questioned language in the bill referring to "summer" because many schools hold classes year around. Mr. Bache said the term "summer" refers to the time between the end of one school year and the beginning of the next and added that language might need clarification. Ms. Tiffany asked whether the fiscal note included development of a computer program for the collection of data and generation of reports. Mr. Bache said the fiscal note was only the appropriation and did not include specific direction regarding computer systems. He added most school districts already keep student records on computers. Mr. Spitler asked whether consideration had been given to a breakdown for replacement of books or training of teachers relative to the allocation requested in A.B. 275. Mr. Bache indicated the State Department of Education would establish criteria for application for those funds by the school districts. He added the $150,000 would not be sufficient to meet the needs of every school district but is intended to serve as a starting point. Mr. Spitler asked whether future consideration would be given to including this funding in operating budgets. Mr. Bache responded affirmatively. Mr. Hettrick inquired how this appropriation related to the $11.2 million one-shot request for the Smart System and whether the Smart System could perform the tracking desired in A.B. 176. Mr. Bache responded he had no information relating to the Smart System. Ms. Giunchigliani noted the State Department of Education should be contacted to determine whether a program was already in place to accomplish what is included in A.B. 176. Mr. Bache said during testimony before the Education Committee, Mary Peterson, Superintendent of Public Instruction, indicated the information from sections (a), (b) and (d) of A.B. 176 is being collected. Ms. Giunchigliani indicated appropriate data may not be available to allow any funds to be appropriated during this biennium. Mr. Allard requested explanation of language in A.B. 275 referring to reimbursement of related expenses such as replacement of textbooks, library books and equipment. Mr. Bache said when students leave a school they often take textbooks and library books and there is no real means to recover those books. Funds would be targeted to schools based on how many students leave and the corresponding loss of books and equipment. Chairman Evans noted there is some sentiment to add a second count day because some schools are adversely impacted when the school year begins with a modest enrollment which sets the level of funding and in succeeding months many additional students enroll. Ms. Giunchigliani noted a second count date would be a great benefit to many schools and might help address the fluctuation in costs. Chairman Evans called for public testimony. Keith Rheault, Deputy Superintendent, Department of Education, read from prepared testimony (Exhibit C). Dr. Rheault also distributed copies of the Department of Education's formula for calculating transiency rates (Exhibit D). He noted data already being collected and reported by school districts is very similar to that required in A.B. 176 with the exception of subsection 1(a) including the number of late entries or transfers because the Department's transiency formula is built on the September count day. Because the data is so similar the school districts already have a reporting system in place to calculate transiency rates. The accountability report includes a rate for every school in the state which is published in March and would be ready for a formula at the beginning of this year. Dr. Rheault said the transiency rate of the 284 schools in the state ranged from 7 percent at Eureka High School to 66 percent at a school in Carson City. If the intent of the bill is to serve schools with the highest transiency rates, some definition of what constitutes a high transiency rate needs to be established. Mr. Fettic inquired how many schools are open year around and whether that number would impact the formula. Dr. Rheault responded transiency rates are already reported for year-round schools. Ms. Giunchigliani asked if the Smart System is used to gather the transiency rate information Dr. Rheault had discussed. Dr. Rheault said the Smart Program was a student accountability plan that would put a computer and network from every school in the district to the State Department of Education to collect individual student records. It is requested in Senate Bill 204. Ms. Giunchigliani observed schools already had a computer that performed these functions. Dr. Rheault said various degrees of the network are already in place and will track federal vocational money and special education money as well as attendance, transiency and test scores. Mr. Allard asked what other types of expenses are incurred as a result of high mobility rates. Dr. Rheault said there had been no specific study concerning this information. Mr. Allard observed perhaps school districts should be required to itemize losses and to request replacement funding, rather than developing a formula for costs that do not appear to be readily identifiable. Dr. Rheault responded making an itemized list for every school in the state would be very time consuming. Chairman Evans noted there were many questions regarding A.B. 176 and asked Ms. Giunchigliani and Mr. Fettic to work with Assemblyman Bache, Dr. Rheault and Ms. Jeanne Botts, Program Analyst, to resolve the issues. Mr. Spitler referred to lines 5 and 6 of A.B. 275 which relate to training of teachers to address problems unique to transient pupils and asked whether training is available now or if it would have to be developed. Dr. Rheault answered he was not aware of any specific training for teachers to deal with students moving in and out. Chairman Evans called for further testimony. There was none. ASSEMBLY BILL 426 Makes supplemental appropriation to committee to hire the handicapped of department of employment, training and rehabilitation for personnel expenses in Las Vegas office. John Orr, Assistant Director of the Department of Employment, Training and Rehabilitation (DETR), reported in February the Interim Finance Committee was informed of a deficit in budget 3156, the budget account for the Governor's Committee on Employment of Persons with Disabilities. It was believed that budget deficit would lead to staff layoffs and DETR was asked to work with the Budget Office to develop a supplemental appropriation to avoid those layoffs. The result is A.B. 426, requesting $4,500 to resolve the budget deficit. Chairman Evans asked whether the funding was in the budget. Perry Comeaux, Director of the Department of Administration, indicated the funding was not included in the supplemental appropriations requested in the Executive Budget; however, the funding requested in A.B. 426 was submitted as a recommended adjustment to the budget on February 28, 1995. Mr. Orr added the Executive Budget request for the coming biennium would have included another serious deficit if staffing levels remained the same and DETR submitted an amended budget request. The Budget Office, the Governor's Office and DETR recommend the Governor's Committee on Employment of Persons with Disabilities be transferred to the Department of Business and Industry. Chairman Evans inquired why the transfer was being requested. Mr. Orr explained both money committees expressed the view that the Governor's Committee could serve an important purpose working with Business and Industry on issues of disability management and compliance with the Americans with Disabilities Act. The Executive Order which created the Governor's Committee was amended in 1993 to focus on employment issues and serve as an advocate with the business community. Chairman Evans asked how the transfer is being handled. Mr. Orr said the Governor's office is coordinating the transfer. Chairman Evans inquired whether the $4,500 is part of the revised budget. Mr. Orr said in February there was a $9,000 deficit in budget account 3156 current year. The joint money committees directed DETR to prepare a supplemental appropriation request for $9,000 to continue full staffing through the end of June. Income reduced the deficit to $4,487 which would have led to staff lay-offs on April 19. The requested $4,500 would solve the deficit and avoid lay-offs. Additional income to date of $1,350 would allow the bill to be amended; however, that is not recommended. Any additional revenue generated as a result of a contract the Governor's Committee has with the Bureau of Vocational Rehabilitation will be spent first and any remaining portion of the $4,500 supplemental appropriation will revert. Chairman Evans indicated the bill would be amended to represent the best figure available at the time. Ms. Giunchigliani expressed support for the appropriation to avoid lay-offs. She indicated the need for clarification concerning the best way to handle the transfer of the Governor's Committee. Mr. Orr said authority for the Governor's Committee exists in Executive Order, not in statute, and Ms. Giunchigliani suggested the transfer could be accomplished through budget closings. Mr. Orr indicated the best figure available is $3,150. Ms. Giunchigliani confirmed if there are any changes, the effect would be to reduce the figure. Chairman Evans indicated the Department should work with staff regarding how best to handle the transfer of the Governor's Committee. Mr. Dini observed the bill should be expedited to avoid potential layoffs on April 19. Chairman Evans called for further testimony. Assemblywoman Saundra Krenzer spoke in support of A.B. 426. The Governor's Committee's primary responsibility is to create job opportunities for disabled and injured workers, taking them off public assistance and making them self-sufficient taxpayers. The appropriation would allow the Committee to operate uninterrupted until the next fiscal year. Chairman Evans called for further testimony. There was none. She indicated the chair would accept a motion for amend and do pass at $3,150. ASSEMBLYMAN DINI MOVED AMEND AND DO PASS ON A.B. 426 BY CHANGING THE AMOUNT OF APPROPRIATION TO $3,150. ASSEMBLYMAN FETTIC SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. (ASSEMBLYWOMAN CHOWNING WAS NOT PRESENT AT THE TIME OF THE VOTE.) * * * * * * * * * Chairman Evans called for a committee introduction of BDR 27-1211, an act relating to State Purchasing requiring the chief of the Purchasing Division of the Department of Administration to establish a supplemental food program making an appropriation. ASSEMBLYMAN DINI MOVED TO INTRODUCE BDR 27-1211. ASSEMBLYMAN FETTIC SECONDED THE MOTION. THE MOTION CARRIED. (ASSEMBLYWOMAN CHOWNING WAS NOT PRESENT AT THE TIME OF THE VOTE.) *************** Chairman Evans called for a committee introduction of BDR R-1935, an Assembly Concurrent Resolution directing the adjustment of sums of money from the issuance of certain state general obligation bonds previously authorized for expenditure for certain purposes related to the protection and preservation of natural resources. ASSEMBLYWOMAN GIUNCHIGLIANI MOVED TO INTRODUCE BDR R-1935. ASSEMBLYMAN DINI SECONDED THE MOTION. THE MOTION CARRIED. ASSEMBLYMAN ALLARD VOTED NO. ************** Chairman Evans announced the committee would first close a number of budgets and then would hear budgets for the Nevada Junior Livestock Show Board and the High School Rodeo. Mr. Stevens explained a number of items affecting all budget accounts traditionally have been adjusted by staff based on actions taken by the Senate Committee on Finance and the Assembly Committee on Ways and Means. These include changes in rates for state-owned building rent; cost allocation changes made by the Budget Division which would not be included on the closing sheets for each budget; internal cost allocations. There may be some fringe benefit changes that would affect every budget in the Executive Budget. He suggested staff be authorized to make technical changes that are necessary to re-balance the budget; otherwise, every budget would have to be reopened, adjusted and reclosed. WASHINGTON OFFICE - PAGE 9 Mr. Stevens explained this budget does not increase from the work program level of $230,478. It is financed from Economic Development, Tourism and the Department of Transportation. ASSEMBLYWOMAN GIUNCHIGLIANI MOVED TO DELETE THE WASHINGTON OFFICE. ASSEMBLYMAN ALLARD SECONDED THE MOTION. Mr. Dini expressed opposition to the motion and his support of the Washington Office as did Mr. Price. Ms. Giunchigliani observed the office is infrequently used, no real benefit from having the office has ever been proven, and the $500,000 would be better used in the Economic Development budget. Mrs. Chowning expressed her support for the Washington Office. Chairman Evans called for a vote. THE MOTION FAILED. ASSEMBLYMEN BROWER, CHOWNING, CLOSE, DINI, EVANS, FETTIC, HETTRICK, PRICE AND TIFFANY VOTED NO. ASSEMBLYMAN SPITLER WAS NOT PRESENT AT THE TIME OF THE VOTE. ************* ASSEMBLYMAN DINI MOVED TO CLOSE THE WASHINGTON OFFICE BUDGET AS RECOMMENDED BY THE GOVERNOR. ASSEMBLYMAN HETTRICK SECONDED THE MOTION. Ms. Giunchigliani asked whether $6,000 for travel was to allow the Washington Office staff travel to other parts of the country for various meetings. Mr. Stevens responded Mr. Penne travels to Nevada at times but could not specifically identify how all of the travel funding was utilized. THE MOTION CARRIED. ASSEMBLYWOMAN GIUNCHIGLIANI AND ASSEMBLYMAN ALLARD VOTED NO. (ASSEMBLYMAN SPITLER WAS NOT PRESENT AT THE TIME OF THE VOTE.) BUDGET CLOSED. ************** ETHICS COMMISSION - PAGE 13 Mr. Stevens reported this budget includes the reclassification of a Computer System Technician II position, grade 28, to a Program Officer, grade 31, in the base budget. The funding recommendation in decision unit M200 would allow the Ethics Commission to increase its meetings to 18 per year. The recommended budget also includes additional office space. ASSEMBLYWOMAN TIFFANY MOVED TO CLOSE THE ETHICS COMMISSION BUDGET AS RECOMMENDED BY THE GOVERNOR. ASSEMBLYMAN CLOSE SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. (ASSEMBLYMAN SPITLER WAS NOT PRESENT AT THE TIME OF THE VOTE.) BUDGET CLOSED. **************** ATTORNEY GENERAL SPECIAL FUND - PAGE 31 Mr. Stevens pointed out the base budget includes $18,995 for telemarketing litigation and decision unit E850 includes a duplicate request for $18,995 for legal costs. A letter from the Budget Office indicates that amount should be eliminated. General Fund appropriation on page 36 of the Executive Budget in the amount of $88,953 is provided to the Attorney General for unknown litigation costs. Legal costs reflect $86,919. Those two figures should match; staff recommends the General Fund appropriation be reduced. ASSEMBLYWOMAN GIUNCHIGLIANI MOVED TO CLOSE THE ATTORNEY GENERAL SPECIAL FUND BUDGET AS RECOMMENDED BY STAFF BY REDUCING THE GENERAL FUND APPROPRIATION FOR LITIGATION COSTS BY $2,034. ASSEMBLYWOMAN TIFFANY SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. BUDGET CLOSED. **************** EXTRADITION COORDINATOR - PAGE 61 Mr. Stevens reported the base budget contains the reclassification of a Program Officer I to a Program Officer III. Although agencies request reclassifications in their budgets, it does not mean the positions will automatically be reclassified. The committee could send a letter to State Personnel indicating the budget has been approved but that position classification is the decision of State Personnel. Mr. Stevens referred to out-of-state travel on page 61 which provides $947 in each year of the biennium for the Program Officer to attend the National Association of Extradition Coordinators meeting. Decision unit E175 on page 63 includes $947 in the first year of the biennium for the support position to also attend the National Association of Extradition Coordinators meeting. Ms. Tiffany requested confirmation that staff recommended a letter be sent to State Personnel indicating when funding is approved for reclassification changes in any budget, the decision to reclassify rests with State Personnel. ASSEMBLYWOMAN TIFFANY MOVED TO CLOSE THE EXTRADITION COORDINATOR BUDGET AS RECOMMENDED BY STAFF. ASSEMBLYMAN HETTRICK SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. BUDGET CLOSED. *************** MUNICIPAL BOND BANK REVENUE - PAGE 99 ASSEMBLYMAN DINI MOVED TO CLOSE THE MUNICIPAL BOND BANK REVENUE BUDGET AS RECOMMENDED BY THE GOVERNOR. ASSEMBLYMAN FETTIC SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. BUDGET CLOSED. ************* MUNICIPAL BOND BANK DEBT SERVICE - PAGE 101 ASSEMBLYWOMAN TIFFANY MOVED TO CLOSE THE MUNICIPAL BOND BANK DEBT SERVICE BUDGET AS RECOMMENDED BY THE GOVERNOR. ASSEMBLYMAN DINI SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. BUDGET CLOSED. *************** PUBLIC EMPLOYEES RETIREMENT SYSTEM - PAGE 2043 Mr. Fettic disclosed for the record he is a member of the Public Employees Retirement System, however, as the budget did not address any benefits he might accrue he would participate in voting. Mr. Stevens explained the Public Employees Retirement System budget includes adjustments to reflect Statewide Cost Allocation and Attorney General Cost Allocation as provided by the Department of Administration; an increase in the actuarial contract by $10,000 and $14,000 over the Governor's recommendation in each year of the biennium respectively; the addition of an Auditor II position effective 10/1/95 and associated operating, in-state travel, equipment and computer costs; the adjustment of out-of-state conference travel for three rather than all five members of the Police/Fire Advisory Committee to travel to that national conference. Mr. Stevens indicated decision unit E805 provides for reclassification of an Investment Analyst to an unclassified Administrative Analyst which would add $14,500 in each year of the biennium. This budget includes funding for unclassified pay increases in excess of the 4 percent and 3 percent recommended by the Governor for two positions: the Operations Officer is recommended for 8.5 percent and 5.5 percent increases in the first and second years of the biennium respectively; the Investment Officer is recommended for 6 percent and 3 percent increases in the first and second years of the biennium respectively. Unclassified salaries of the Public Employees Retirement System are recommended by their board and must be approved by the Interim Retirement Committee which is appointed by leadership at the end of the session. Mr. Stevens said in addition to the Auditor II position, the agency requested additional out-of-state travel funds so retirement board members could each attend two out-of-state national education conferences in each year of the biennium. Ms. Tiffany requested explanation of the $15,000 pay increase for the reclassified employee. Mr. Stevens explained the duties of that position are being changed from those of an investment analyst to an administrative analyst. The committee expressed its intention to hold the budget and Chairman Evans indicated any additional questions should be raised so staff could respond. Ms. Tiffany expressed concern with approving pay raises for unclassified employees above what the Governor has recommended for classified employees. Mr. Stevens said the pay increase resulted from a western states survey comparing PERS positions to counterparts in other states. Mr. Allard referred to decision unit E800 and suggested pay raises for the Investment Analyst be tied to portfolio performance. NEVADA JUNIOR LIVESTOCK SHOW BOARD - PAGE 927 Frederick Dressler, Chairman of the Junior Livestock Show board, introduced Liz Williams, Program Coordinator, and Sue Hoffman, Show Manager. Ms. Hoffman explained the Nevada Junior Livestock Show Board encourages participation in educational opportunities in applied life skills through use-oriented livestock programs. These events teach sportsmanship, leadership, citizenship, responsibility and provide current information relating to the agricultural industry. Through youth education, the Board also promotes growth, maintenance and development of Nevada livestock industries. Ms. Hoffman said the budget requests funding for maintenance and inflationary increases. Through a contract agreement with the University of Nevada, Reno through Nevada Cooperative Extension a half-time employee, Liz Williams, is retained who is responsible for all correspondence and record keeping. The Board also provides opportunity for the sale of more than $130,000 of livestock for youth in Nevada. Ms. Hoffman referred to a one-shot appropriation on page A38 in the Executive Budget and indicated this request has now become Assembly Bill 251 which requests $5,040 for gate panels for hogs. Silver State Industries is working on the design and manufacture of the gate panels. Chairman Evans asked who received the overtime pay on page 928 of the Executive Budget. Ms. Hoffman indicated Ms. Williams would receive that overtime pay for her work during the Nevada Junior Livestock Show which frequently requires significant overtime. Ms. Giunchigliani inquired how long the Nevada Junior Livestock Show board has been in existence and how long the Board has received state funds. Ms. Hoffman responded the 56th annual show will be held in 1995 and state funding has been provided for most of the life of the Board. Mrs. Brower asked where the livestock show has been held. Ms. Hoffman said the Nevada Junior Livestock Show will be held May 11-14, 1995 at the Reno Livestock Events Center, where the majority of shows have been held. Ms. Tiffany asked whether funding sources other than state General Fund were available. Ms. Hoffman indicated state funding is augmented by a commission on the animals sold and by donations. Donations average $3,500-$4,000 per year. Ms. Tiffany expressed her concern at using taxpayer's money to fund the program. Mr. Price expressed his support for the Nevada Junior Livestock Show Board as did Mr. Dini who observed the program is a worthwhile investment in Nevada's youth. Mr. Allard expressed his support for the Nevada Junior Livestock Show Board and inquired what would happen to the program if funding from the state was not forthcoming. Ms. Hoffman said the program would not retain a part-time employee, would be forced to rely on more volunteer assistance and a statewide show might not be held. Mr. Allard asked how many young people participate in the program. Ms. Hoffman said through the livestock show, the state 4-H show and various other educational programs and judging contests, approximately 1,000 young people participate each year. Mr. Close asked whether the show had ever been held in southern Nevada. Ms. Hoffman responded negatively because the majority of participation has been from counties in the northern portion of the state. Mr. Fettic expressed his support for the Nevada Junior Livestock Show Board. Stephanie Licht expressed her support for the Nevada Junior Livestock Show Board and the benefit provided to young people. HIGH SCHOOL RODEO - PAGE 931 Assemblywoman Marcia de Braga, Assembly District 35, introduced Tennille Horn, reigning Nevada High School Rodeo Queen, Jack Gardner, Nevada High School Rodeo President, and Samme King, Nevada High School Rodeo Vice-President. Ms. de Braga said the Nevada High School Rodeo Association began in the late 1940's and now has more than 400 members. During the course of a year, 24 rodeos are held throughout the state. Points are counted throughout the year with state finals held at the end of the year; winners for the year go to the Silver State International Rodeo in Fallon and the top four places and the queen go to the national finals. Funding provided by the state helps young people who could not otherwise afford to attend the rodeos. Ms. de Braga noted the $17,000 requested is only slightly more than the cost of incarcerating an individual in a detention center for a year. Samme King from Battle Mountain, Jack Gardner from Winnemucca, and Tennille Horn from Deeth expressed their appreciation for the committee's support of the Association. Mr. Dini commended Mrs. de Braga for her work with the high school rodeos and expressed his support of the program. Mr. Close asked whether any funds other than state General Fund are provided for the program. Mrs. de Braga said the $17,000 is used entirely for travel to the National Finals. Parents also provide supplementary travel funds. Individual clubs use profits from their rodeos to help participants travel to the National Finals. Mr. Close confirmed no funding is received from cities or counties. Mrs. de Braga said the Nevada High School Rodeo Scholarship Program provided eighteen $500 scholarships last year. Mrs. Brower asked how many of the 400 members are active. Mrs. de Braga said between 200 and 275 members participate in rodeos. Mr. Price asked if the National High School Rodeo Association is incorporated as a nonprofit. Mrs. de Braga said the organization is an international nonprofit corporation and each state club and each local club within the state are incorporated as nonprofit organizations. Chairman Evans commended Mrs. de Braga for her longtime efforts with the program. Chairman Evans submitted for the record a letter, attached as Exhibit E, from former Assemblyman Tom Collins of North Las Vegas who strongly endorses the National High School Rodeo budget. Chairman Evans called for public testimony. There was none. MUSEUMS AND HISTORY - PAGE 397 Mr. Stevens explained the adjustment to the Museums and History budget is to reflect the correct number of board meetings from six to four per year. Board salaries have been reduced by $1,560 and in-state travel by $3,396. ASSEMBLYMAN HETTRICK MOVED TO CLOSE THE MUSEUMS AND HISTORY BUDGET AS RECOMMENDED BY STAFF. ASSEMBLYMAN FETTIC SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. (ASSEMBLYMEN ALLARD AND TIFFANY WERE NOT PRESENT AT THE TIME OF THE VOTE.) BUDGET CLOSED. ***************** STATE MUSEUM, CARSON CITY - PAGE 401 Mr. Stevens explained adjustments to this budget include: reduction in General Fund appropriation of $29,374 and $38,031 in the first and second years of the biennium respectively to correct the funding source for a Curator position (50 percent General Fund and 50 percent private funding) and to increase admissions revenue and reduce General Fund per agency correspondence; utility inflation increases; correction to the M300 decision unit of $496 and $1,034 in the first and second years of the biennium respectively to charge proper funding sources for position costs. Mr. Stevens indicated staff has delayed hire dates for new positions until October 1, 1995, which more accurately reflects the time required for a recruitment; however, the positions are included in the Executive Budget effective July 1 and the committee can make that policy decision. Chairman Evans observed the committee might consider using the October 1, 1995 hire date unless an agency informs the committee of a compelling reason to fill a position before that time. ASSEMBLYMAN FETTIC MOVED TO CLOSE THE STATE MUSEUM, CARSON CITY BUDGET AS RECOMMENDED BY STAFF. ASSEMBLYWOMAN TIFFANY SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. BUDGET CLOSED. *************** NEVADA HISTORICAL SOCIETY - PAGE 407 Mr. Stevens indicated changes to this budget include adjustments of $638 and $1,297 in the first and second years of the biennium respectively for utility inflation increases; correction to the M300 decision unit to charge appropriate funding sources for position costs; decision unit E475 delays hiring one new position until October 1, 1995. Mr. Spitler referred to decision unit E710 and asked whether the agency had responded to the committee's request to include that equipment in the $880,000 one-shot appropriation. Mr. Stevens explained any of the items in decision unit E710 could be included in a one-shot appropriation but indicated no response had been received from the agency regarding moving those items into the one-shot appropriation. Mr. Spitler requested the budget be held until the agency was contacted regarding moving the items requested in decision unit E710 into the one-shot appropriation. Chairman Evans confirmed the committee agreed to hold the budget pending the requested information. Mr. Close questioned a $4,425 salary increase requested for the unclassified Director which was not recommended by the Governor. Mr. Stevens said the decision regarding unclassified salaries is normally made late in the session and historically staff has been given the authority to make necessary adjustments at that time. NEVADA STATE RAILROAD MUSEUM - PAGE 411 Mr. Stevens noted adjustments to this budget include reducing duplicate funding for group insurance for two positions; increase for utility costs; correction to the M300 decision unit to properly charge correct funding sources for position costs. ASSEMBLYWOMAN TIFFANY MOVED TO CLOSE THE NEVADA STATE RAILROAD MUSEUM BUDGET AS RECOMMENDED BY STAFF. ASSEMBLYMAN FETTIC SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. BUDGET CLOSED. *************** RAILROAD DEPOT - EAST ELY - PAGE 415 Mr. Stevens said the only adjustment to this budget is to increase utilities by $108 in the second year of the biennium. The committee had requested information regarding the cost of replacing the roof of the freight barn at Ely; testimony from the Public Works Board indicates that structure is in jeopardy if the roof is not replaced. Staff estimates $20,000 would make repairs necessary to stabilize the freight barn. Mr. Stevens pointed out this item could be transferred to the CIP Subcommittee for review. Mr. Hettrick asked whether the freight barn would be eligible for a portion of the $2 million General Obligation bond funding for cultural preservation in the state. Mr. Dini observed there were fairly strict requirements to apply for those funds and it is not likely the freight barn would qualify. He noted the freight barn housed a great deal of equipment and expressed his support for approving the repairs. Mr. Dini requested staff obtain additional information on the railroad at Ely. Mr. Stevens indicated the information would be forthcoming. Ms. Giunchigliani requested the information also include fees charged and revenue generated. Chairman Evans indicated any potential funding approved for repairs to the freight barn was outside of this budget. ASSEMBLYMAN DINI MOVED TO CLOSE THE RAILROAD DEPOT - EAST ELY BUDGET AS RECOMMENDED BY STAFF. ASSEMBLYWOMAN TIFFANY SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. BUDGET CLOSED. ************** STATE MUSEUM, LAS VEGAS - PAGE 419 Mr. Stevens explained adjustments to this budget include an increase for utility inflation and delaying the start of a new position in decision unit E475 until October 1, 1995. A salary increase is requested for the unclassified Director which was not recommended by the Governor and will be decided at a later date. ASSEMBLYMAN SPITLER MOVED TO CLOSE THE STATE MUSEUM, LAS VEGAS BUDGET AS RECOMMENDED BY STAFF. ASSEMBLYWOMAN TIFFANY SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. BUDGET CLOSED. *************** LOST CITY MUSEUM - PAGE 423 Mr. Stevens said corrections to this budget include deletion of group insurance for two positions not eligible for insurance; adjustment for utility inflation increases; correction to decision unit M300 to properly charge funding sources for position costs. ASSEMBLYMAN ALLARD MOVED TO CLOSE THE LOST CITY MUSEUM AS RECOMMENDED BY STAFF. ASSEMBLYWOMAN BROWER SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. BUDGET CLOSED. *************** COMSTOCK HISTORIC DISTRICT - PAGE 427 Mr. Stevens noted a minor adjustment for utility increase in this account. There had also been discussion regarding funding of $12,000 to reprint 10,000 copies of the Comstock Tour Brochure; options would include funding the entire amount, partial funding or consideration of using funds generated by Tourism. Chairman Evans noted if it is important for the District to have those brochures available, funding needed to be approved. ASSEMBLYMAN DINI MOVED TO CLOSE THE COMSTOCK HISTORIC DISTRICT BUDGET AS RECOMMENDED BY STAFF WITH THE ADDITION OF $12,000 FROM TOURISM FUNDS TO REPRINT THE COMSTOCK TOUR BROCHURE. ASSEMBLYMAN FETTIC SECONDED THE MOTION. Mr. Spitler observed the District has testified to the need for $1,350 to purchase a Polaroid camera and a fax machine. ASSEMBLYWOMAN GIUNCHIGLIANI MOVED TO AMEND THE MOTION TO INCLUDE $1,350 OF GENERAL FUND FOR A FAX MACHINE AND POLAROID CAMERA IF THOSE ITEMS ARE NOT CONTAINED WITHIN THE DISTRICT'S ONE-SHOT APPROPRIATION. ASSEMBLYMAN HETTRICK SECONDED THE AMENDMENT. THE AMENDMENT CARRIED UNANIMOUSLY. THE MOTION CARRIED UNANIMOUSLY. BUDGET CLOSED. HISTORIC PRESERVATION/ARCHEOLOGY - PAGE 431 Mr. Stevens said decision unit M300 is recommended as 100 percent General Fund; however, the costs will actually be allocated 40 percent to the General Fund and 60 percent to the Federal Historic Preservation Grant which results in reduction in General Fund of $9,900 and $11,131 in the first and second years of the biennium respectively. Mr. Stevens said there had been considerable committee discussion regarding providing additional funds for the historic marker program. The agency requested $10,000 per year; the Executive Budget recommends $1,000 per year. The agency has indicated 200 markers are in need of some repair; the estimated cost for the entire project is $100,000. Chairman Evans observed $10,000 would repair 20 markers. Mr. Dini inquired whether a one-shot appropriation could be used to provide funding for repair of the markers. Mr. Stevens indicated a one-shot appropriation could be done with Tourism funds. ASSEMBLYWOMAN BROWER MOVED FOR A ONE-SHOT APPROPRIATION OF $10,000 IN EACH YEAR OF THE BIENNIUM FOR REPAIR OF HISTORIC MARKERS. ASSEMBLYWOMAN GIUNCHIGLIANI SECONDED THE MOTION. Mr. Close noted the agency had indicated service clubs and volunteer organizations could help with restoration of the markers. Mr. Dini suggested a letter of intent directing the agency to seek public participation for saving the markers might be considered. Mr. Hettrick suggested a program be started similar to the "Adopt a Highway" program as a means of encouraging public involvement. THE MOTION CARRIED. ASSEMBLYMAN CLOSE VOTED NO. The budget was held pending clarifications of the committee's questions. With no further business to come before the committee, Chairman Evans adjourned the hearing at 11:10 a.m. RESPECTFULLY SUBMITTED: Deborah Salaber, Committee Secretary Assembly Committee on Ways and Means April 12, 1995 Page