MINUTES OF THE ASSEMBLY COMMITTEE ON WAYS AND MEANS Sixty-eighth Session May 29, 1995 The Committee on Ways and Means was called to order at 8:08 a.m., on Monday, May 29, 1995, Chairman John Marvel 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 Mr. John W. Marvel, 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: None STAFF MEMBERS PRESENT: Mr. Mark Stevens, Fiscal Analyst Mr. Gary Ghiggeri, Deputy Fiscal Analyst Ms. Debbra King, Program Analyst Mr. Larry Peri, Program Analyst ASSEMBLY BILL 225 Makes appropriation to department of education for development and implementation of computer system for licensing of teachers. Mary Peterson, Superintendent of Public Instruction, reported the original fiscal note for A.B. 225 was $150,000, including $50,000 for business process re- engineering and $100,000 for hardware and software costs. The Department of Information Services has since revised those figures. Robert Lawton, Chief of Planning and Research, Department of Information Services (DIS), reported DIS recommends that A.B. 225 be amended to increase the budget from $150,000 to $375,000. Mr. Lawton distributed a sheet entitled "AB 225 Teacher Licensing System Estimate", attached as Exhibit C. Chairman Marvel inquired whether this information had been provided to the Budget Division and, if so, whether any comment had been received. Ms. Peterson said the Budget Division had been provided with the information but no comment had been received. Mr. Lawton explained the original estimate of $150,000 was based on business process re-engineering of $50,000 and hardware and implementation of $100,000. The Department of Education expressed concern with that estimate and requested DIS review the estimate. Based upon that review, on May 9 the estimate was raised to $250,000, excluding hardware. The estimate of $50,000 for BPR was still considered to be a valid estimate. The development portion was divided into six major business functions in an effort to further define the Department's needs; the estimate was revised to $160,000. Expenses for travel between the various school districts in the amount of $21,000 was included. In order to put all districts on-line, $19,000 was estimated. Mr. Lawton noted the development cost could be significantly reduced if an alternative system is chosen. Ms. Tiffany asked whether the teacher licensing system could be tied in with the SMART System. Ms. Peterson responded that option had been discussed and would be possible if the SMART System is funded. She noted the automation of teacher licensing is imperative and expressed concern that moving teacher licensing into the SMART System, which has not yet been funded, may adversely affect the function of automated teacher licensing. Ms. Tiffany questioned the amount required to fund automated teacher licensing and whether that function could be performed in another way. Mr. Lawton agreed the cost seemed extremely high. The Department of Education in Utah developed a teacher licensing system which could possibly be adapted for use in Nevada. At the time that system was developed, the cost to the state of Utah was between $175,000 and $200,000. Mrs. Brower asked for a summary of how the automated teacher licensing system would benefit the Department of Education. Ms. Peterson explained the current system in the Office of Teacher Licensing is very antiquated. There are two offices for teacher licensure, one in Carson City and one in Las Vegas. The system is basically a paper system and very little information is computerized. Chairman Marvel requested Ms. Tiffany work with the Superintendent of Public Instruction and the Department of Information Services to find a more workable solution for automated teacher licensing. ASSEMBLY BILL 424 Requires certain persons to conduct studies to determine certain statistical disparities and report results to legislature. Assemblyman Morse Arberry, District 7, spoke in support of A.B. 424 which would require state government, the University System, and public utilities to conduct studies on disparity in race and sex in hiring practices, promotion and solicitation of bids. The studies would be completed by January of 1997 and reported to the 69th Legislature for its review. Mr. Arberry stressed A.B. 424 is an important step in ensuring state government complies with equal opportunity practices. It would direct all branches of government to collect statistical data and requests a report so the Legislature may evaluate utilization of women and minorities in state government work force. Chairman Marvel asked whether all businesses would be required to perform a study. Mr. Arberry responded only utilities, the university system and state government would be required to perform disparity studies. He added that utility companies have already collected some disparity data. Chairman Marvel inquired what the cost of the study would be. Mr. Arberry responded he did not know. Mr. Price expressed support for the concept proposed in A.B. 424 but asked what assurance could be provided that the figures produced by internal studies within the utilities, university system and state government would be valid. Mr. Arberry said the validity of the figures provided would have to be determined by the 69th Legislature. Mrs. Chowning asked what time period the disparity studies would be required to report. Mr. Arberry indicated he would prefer the language in A.B. 424 reflect "from this day forward". He noted exceptions might need to be made for some of the smaller rural areas so costs of the study would not be prohibitive. Chairman Marvel asked whether A.B. 424 would apply to rural electric systems. Mr. Arberry responded affirmatively. Mr. Spitler observed a disparity study can cost in excess of $150,000 and questioned the fiscal note. Mr. Arberry said the fiscal note related to costs for the Legislative Counsel Bureau to compile the information for the next legislature. Mr. Spitler asked how much funding would be required for the university system to perform the study and questioned whether budget adjustments would have to be made for the costs of such a study. He noted the costs could be significant because these studies are performed by outside consultants. Mr. Dini questioned why state government and public utilities are included in the same directive and noted the costs of the study would be passed on to utility customers. Mr. Arberry agreed the costs might be passed on to customers but said the benefits to be gained through more equal hiring and bidding practices would offset those costs. Mr. Close inquired whether other states have performed similar studies. Mr. Arberry said he would obtain that information. Mrs. Brower pointed out that Clark County had performed a disparity study in the recent past and some of those figures might be pertinent to the studies provided in A.B. 424. Chairman Marvel called for public testimony. Scott Craigie, representing Sprint Central Telephone and Sierra Pacific Power Company, noted all the utility companies shared the concerns of Mr. Arberry and the other sponsors of A.B. 424. Utility companies are committed to providing full opportunity for employment to women and minority candidates, have aggressive affirmative action programs, and actively recruit, train and advance candidates. In addition, the companies are committed to purchasing from women and minority owned enterprises. Sprint Central Telephone in 1992 put in place a supplier diversity program and has doubled the amount of materials purchased from women and minority owned businesses. Southwest Gas purchased more than $11 million in goods and services in 1994 in the state of Nevada from minority and women owned enterprises. Mr. Craigie said utility companies make numerous filings to various federal agencies and the Public Service Commission similar to information to be included in the disparity study. The utility companies are concerned the studies provided in A.B. 424 would be duplicative and expensive. Research indicates there have been 65 major disparity studies to date, all government oriented, with a cost of from $150,000 to $1 million. For the major utilities, the overall cost to the state would be in excess of $1 million which would eventually be paid by rate payers. Mr. Craigie said the major difficulty with the expense of the studies is for the smaller utility companies in the state. Nine telephone companies in the state have fewer than 20 employees. Mr. Craigie suggested the Legislature, either in this session or the next session, hold a hearing on the hiring practices and purchasing practices of public utilities. He requested that if A.B. 424 did move forward, utility companies be removed because the bill is duplicative and would hurt small utility companies. Mr. Price suggested a limit be set regarding the size of companies required to perform studies. Chairman Marvel called for further public testimony. There was none. SENATE BILL 216 Makes appropriation to department of employment, training and rehabilitation for development disabilities program. Steve Shaw, Administrator of the Rehabilitation Division, spoke in support of S.B. 216 which makes an appropriation to the Nevada Council on Developmental Disabilities. The $227,000 state appropriation would be used to leverage federal dollars and would potentially bring in $13 million. Mr. Shaw explained $80,000 of the appropriation would be used as match to fund the submission of four United States Department of Housing and Urban Development supportive housing applications. Each application, if funded, would generate 25 units of accessible, affordable housing for very low income persons with physical disabilities. For each project, the agency would receive approximately $3 million in construction costs and $80,000 annually for operation costs. Ms. Tiffany asked how changes in the U.S. Department of Housing and Urban Development would affect the state. Mr. Shaw responded the housing program would not be discontinued; if HUD no longer funded the program, it would be transferred to another department. Ms. Tiffany asked whether any other state agency is implementing similar types of housing projects. Mr. Shaw responded no other state agency is providing low income housing for people with severe physical disabilities. He noted the program saves money because individuals with physical disabilities are able to live in apartments rather than in nursing homes where care is very costly. Ms. Tiffany inquired whether any other states have similar programs. Donny Loux of the Office of Community Based Services explained several states have implemented similar programs for supported accessible housing for individuals with physical and neurological disabilities. The major provision of S.B. 216 is that it provides personal assistance in an apartment setting, making those apartments accessible to individuals who otherwise would not be able to live independently. Ms. Tiffany requested a list of other states with similar programs be provided and also asked for a copy of the study which indicates the need for the program. Ms. Loux indicated the information would be forthcoming. Mrs. Evans referred to a document distributed by Mr. John Chambers, Chairman of the Nevada Opinion Leaders Forum on Disability, (Exhibit D) and requested an explanation of a summary of past performance. Mr. Shaw said four projects have been funded thus far, each for approximately $3 million. Each project is a 28 unit apartment complex with a shared personal care assistant. Rent subsidies are provided of up to $78,000 per year and housing is provided for approximately 102 people with disabilities. Ms. Loux explained the Developmental Disabilities Council provides seed money for projects that are then expected to continue beyond the 1-3 years of funding provided by the Council. The Assistive Technology Project attracts $600,000 per year to the state for assistive technology centers. Camp Lots-of-Fun and the Traumatic Brain Injury Center were originally funded by the Council for Developmental Disabilities. Any applicant for funding from the Council must guarantee the project will continue after funds from the Council for Developmental Disabilities terminate. Mrs. Evans asked whether local participation is expected to continue. Ms. Loux responded affirmatively and noted the Nevada Housing Division has indicated willingness to work with the Council on future projects. Ms. Loux noted many individuals with disabilities live with family members in low income non-accessible housing with high costs for personal assistance. Many live in abusive or neglected situations with friends or in mobile homes and some of the individuals in mobile homes literally are not physically able to leave the home. Mrs. Chowning expressed appreciation to Ms. Loux and Mr. Shaw and asked whether it would be cost-effective to purchase HUD or VA repossessed properties and how many people can be served through the new apartment units and housing. Ms. Loux said 102 people would live in the apartments currently planned. Another application is in process for an apartment complex in Elko. Consideration was given to converting existing housing; however, many of the properties were in districts with high crime rates and limited transportation and the cost of making existing housing accessible is extremely high. It was decided to place developments in safer districts, close to transportation, banks and shopping facilities. Chairman Marvel called for public testimony. John Chambers, Vice-chairman of the Developmental Disabilities Planning Council, spoke in support of S.B. 216 and the funding it would provide which would enable disabled people to remain in the community and to live independently. Reggie Bennett spoke in support of S.B. 216 and noted there is a great demand for supported housing in the southern part of Nevada. Bob Hogan, Director of the Nevada Community Enrichment Program, spoke in support of S.B. 216. The lack of affordable housing has been a major barrier to re- entering the community for individuals who have been rehabilitated through the Traumatic Brain Injury Program. Mr. Arberry asked how much institutionalization would cost. Ms. Loux indicated institutionalization costs between $36,000 and $60,000 per person per year depending on the level of care required. Chairman Marvel called for further public testimony. There was none. ASSEMBLY BILL 630 Requires reimbursement of legislative counsel bureau for drafting legislation for certain entities. Assemblyman Lynn Hettrick, District 39, reported funding for printing bills is currently charged to the Legislature; however, most bills are requested by other entities. A.B. 630 would assess $500 for each bill draft after the first five requested by an entity. Ms. Tiffany asked whether lobbyists would be included. Mr. Hettrick responded lobbyists request bills through entities entitled to requests bills and those entities would be charged $500 each after the first five bills. Mr. Arberry asked whether legislators would also be charged. Mr. Hettrick said legislators, legislative committees, state agencies, officers of the executive branch of government or justices of the Supreme Court and judges of District Courts are exempt. Mr. Close pointed out Assembly Bill 279 also proposes to limit bill draft requests and would allow the Legislative Counsel Bureau to charge for bill drafts according to the amount of time and effort spent on an individual bill. ASSEMBLY BILL 217 Makes appropriation to division of child and family services of department of human resources for vehicles, equipment, supplies and building maintenance for northern and southern child and adolescent services. Larry Peri, Program Analyst, distributed a document regarding the provisions in A.B. 217 (Exhibit E). Mr. Peri explained the appropriation is divided between Northern Nevada and Southern Nevada Child and Adolescent Services. Attachment #1 of Exhibit E provides a detailed itemization of proposed equipment and repairs. The agency has either submitted revised estimates or confirmed earlier estimates. Recommended changes listed in Exhibit E involve costs for carpet replacement, wood fascia replacement, patio cover replacement and patching, sealing and painting buildings and would result in reductions of $35,518. Mr. Peri indicated the General Fund appropriation in A.B. 217 could be reduced from the original figure of $235,485 to $199,967. Mr. Peri also noted Exhibit E contains a listing of repairs at the Southern Nevada Childrens' Home facility in Boulder city requested by the Volunteers of America, totaling $74,439. The Division of Child and Family Services was requested to provide information on what repairs the division would be willing to make and what repairs the Volunteers of America would be willing to make. A memorandum from John Sarb, Administrator of the Division of Child and Family Services, indicates negotiation regarding distribution of repair costs has not yet occurred. The contract with the Volunteers of America expires June 30, 1995, and negotiation of a new contract has not yet begun. Ms. Giunchigliani noted the contract in Exhibit E states the lessee is responsible for repairs and maintenance and asked why the Division is requesting state funds to make those repairs. Mr. Peri said Mr. Sarb's response indicated difficulty in defining the difference between a repair (responsibility of the lessee) and an improvement (responsibility of the lessor). Ms. Giunchigliani requested information be provided regarding the amount of rent specified in the lease for the Boulder City facility. Mrs. Evans observed the new contract with the Volunteers of America should outline the division of responsibilities in more detail. She expressed concern that contract negotiations have not begun when the contract is scheduled to expire in one month and requested the Division of Child and Family Services provide progress reports before the Legislature adjourns. Chairman Marvel requested Mr. Peri relay that information to Mr. Sarb. Mrs. Chowning expressed her concern with proceeding with A.B. 217 until the responsibility for repairs is clarified. Mr. Close concurred with Mrs. Chowning's and Mrs. Evans' comments and agreed he also would be uncomfortable proceeding with A.B. 217 until the committee's questions have been answered. Mr. Spitler noted the list of requested repairs from the Volunteers of America includes some safety items, such as fire alarms, that were not included in the one- shot appropriation and seemed to be much more critical than patio covers. Mr. Peri explained the Southern Nevada Children's Home and the funding in A.B. 217 are not related. Mr. Sarb had indicated he might try to use some of the funding from A.B. 217 to make the repairs to the Southern Nevada Children's Home. A.B. 217 includes funding for Northern Nevada and Southern Nevada Child and Adolescent Services. Mr. Arberry suggested a letter be sent to Mr. Sarb requesting that answers to the committee's questions be provided within three days. Chairman Marvel stated action on A.B. 217 would be held until Friday, June 2. Mrs. Chowning asked whether the revised costs for patio covers were appropriate. Mr. Arberry responded affirmatively. Ms. Giunchigliani requested information be provided regarding costs of the Volunteers of America running the program versus costs when the state ran the program. ASSEMBLY BILL 218 Makes appropriation to division of child and family services of department of human resources for vehicles, computers and miscellaneous equipment. Mr. Peri distributed a document (attached as Exhibit F) and explained the committee had requested information regarding potential federal participation toward the purchase of the recommended items. The majority of the recommended items are for the Division's administrative account with a few items for the Child Care Services Bureau. Those items are detailed on Attachment #2 of Exhibit F. Attachment #1 reflects adjustments suggested by the Fiscal Analysis Division. The requested items are grouped into computer hardware and software, replacement vehicles, and miscellaneous equipment. Mr. Peri said the Division indicated federal participation of 75 percent could be obtained for the first grouping of 20 personal computers on Attachment #1 with the purchases being linked to the Statewide Automated Child Welfare Information System. Software and 20 printers could be allocated which would reduce the General Fund contribution from 100 percent to 25 percent. Mr. Peri explained the second grouping of five computers on Attachment #1 could be cost allocated under the current funding mechanism. Staff recommends a change in the number of laptops and software from 30 to five because there was insufficient support and justification for 30 laptops. Mr. Peri pointed out the largest item in A.B. 218 is the replacement of 27 vehicles. A federal requirement on the purchase of capital acquisitions costing more than $5,000 states that those items cannot be directly cost allocated but must be depreciated; it would take four years of the vehicles' proposed useful life to recover the federal portion. Staff suggests the General Fund provide money for the initial vehicle purchase and A.B. 218 could include a requirement that as the federal portion is recovered over the next four fiscal years, it be paid back into the General Fund. Ms. Tiffany questioned how the agency could be certain what computer hardware and software would be required before the business process re-engineering, which is in process, is finished. Mr. Peri said the agency had been asked that question and responded this computer hardware and software is needed now. Mr. Arberry questioned whether one of the Division's buildings had been recently remodeled and whether that was the Carson City Office which the Division has indicated may relocate after the 1995-97 biennium. Mr. Stevens responded the Northern Nevada Children's Home Campus was remodeled approximately two years ago. Mr. Peri said the office possibly slated for relocation is on East John Street in Carson City. Mr. Arberry observed it might become necessary to build another state office building in the northern part of the state to bring state agencies into one building and avoid paying rental costs. Ms. Giunchigliani requested staff obtain information regarding the state's policy on vehicle replacement. Chairman Marvel stated action on A.B. 218 would be held until Friday, June 2, 1995, pending answers to the committee's questions. Mr. Hettrick requested verification of costs for cellular phones listed in Exhibit F. ASSEMBLY BILL 219 Makes appropriation to department of museums, library and arts for enhancement of computer system and improvement of various functions of state library. Mr. Stevens distributed a document regarding the requested appropriation in A.B. 219 (attached as Exhibit G). An amendment could be made reducing the General Fund appropriation by $6,550. A.B. 219 includes $316,000 to remodel the library basement and could potentially be transferred to the CIP if sufficient funds remain. Joan Kerschner, Director of the Department of Museums, Library and Arts, reported A.B. 219 contains all of the Department's requested one-shot appropriations. Ms. Tiffany asked whether the Department has a microcomputer specialist on staff. Ms. Kerschner responded there are two individuals with microcomputer expertise; however, the Department of Information Services will monitor the library's network. Ms. Tiffany asked how many PC's there will be. Ms. Kerschner said there will be approximately 60 PC's. Ms. Tiffany expressed concern that there would be no one person dedicated to provide microcomputer services to the Department. Ms. Kerschner said there is one full-time staff computer person allocated through the CLAN budget but agreed the Department would have to rely more on DIS for computer service. Ms. Tiffany asked how the problem should be addressed. Ms. Kerschner said the SPIRIT plan would address the problem in the long term; unfortunately that did not materialize in time for this Legislative Session. Ms. Tiffany requested information regarding the cost of a half-time microcomputer specialist be provided. Mrs. Chowning asked how service in the State Museum and Archives has been provided until now. Ms. Kerschner explained when the Department was formed through consolidation, it was discovered there was very little computer equipment in the agencies except for the State Library and Archives. The State Museum has three or four isolated microcomputers that are not able to communicate. All of the agencies have a wealth of information that should be accessible to the public. This project will allow the collections in all the libraries throughout the state to be put on-line. The project will form the basis for providing library information to homes throughout the state. The funding in A.B. 219 will provide the basis for a match to draw federal funding. Mr. Hettrick asked why the Railroad Museum needed a Pentium computer. Ms. Kerschner explained the Railroad Museum designs and redesigns locomotive engines to be as historically correct as possible through computer design programs. The Railroad Museum also hopes to raise enough money to put together a computer network and the Pentium would act as the file server. Ms. Tiffany pointed out no drafting software was included in the request and asked whether redesigning engines was in the job descriptions of those individuals performing that function. Ms. Kerschner responded the job descriptions are to redesign and reconstruct locomotives and other pieces of rail equipment. Ms. Tiffany questioned why several Pentium computers were needed and when Ms. Kerschner explained a computer was needed in each building to provide information where the employees were working, Ms. Tiffany wondered whether a network would be less expensive. Ms. Tiffany requested information be provided regarding what software is used at the Railroad Museum, how much each work station is used and whether a network would be more efficient. Mr. Hettrick referred to the Railroad Museum budget and asked whether two years of operating costs for the data line to NSM in the amount of $2,650 should be included in a one-shot appropriation and requested justification for the color scanner with transparency adapter. Relative to the Museums, Library and Arts Administration budget, he inquired whether the biennial line cost of $2,400 and the State Museum budget data lines two years operation of $5,300 should be included in a one-shot appropriation. Ms. Kerschner indicated all the costs were for the first year of operation and that the narrative was incorrect. ASSEMBLY BILL 220 Makes appropriation to budget division of department of administration for development of requirements for integrated financial system. Mr. Stevens explained A.B. 220 would provide a one-shot appropriation of $165,000 to the Department of Administration for developing the requirements for an integrated financial system. He noted State Controller Darrel Daines had expressed the opinion at a previous hearing that the appropriation should be made to his office rather than the Department of Administration. ASSEMBLYWOMAN TIFFANY MOVED DO PASS ON A.B. 220. ASSEMBLYWOMAN EVANS SECONDED THE MOTION. THE MOTION CARRIED. ASSEMBLYMEN DINI AND ALLARD WERE NOT PRESENT AT THE TIME OF THE VOTE. *************** ASSEMBLY BILL 317 Makes various changes related to juvenile courts, sentencing, crimes and punishments. Mr. Stevens distributed suggested amendments to A.B. 317 provided by the Governor's Office and Washoe County (Exhibit H). He noted the effective date of A.B. 317 should be July 1, 1995. Ms. Tiffany confirmed that the two senators and two assemblymen would be one from each party. Mr. Hettrick observed one legislator should represent a county with a population less than 100,000. ASSEMBLYWOMAN GIUNCHIGLIANI MOVED TO AMEND SECTION 17 OF A.B. 317 BY REMOVING ALL REFERENCES TO "VOTING" AND "NON- VOTING" THROUGHOUT AND BY NAMING TWO MEMBERS WHO ARE SENATORS, ONE FROM EACH PARTY APPOINTED BY LEADERSHIP AND TWO MEMBERS WHO ARE ASSEMBLYMEN, ONE FROM EACH PARTY, APPOINTED BY LEADERSHIP. ASSEMBLYWOMAN CHOWNING SECONDED THE MOTION. Mr. Fettic asked why three voting members from the Assembly had been proposed. Mr. Arberry said two members would have been from each party and one member would have been from a county of less than 100,000 population. ASSEMBLYMAN HETTRICK MOVED TO RETAIN LANGUAGE SPECIFYING ONE REPRESENTATIVE BE FROM A COUNTY OF LESS THAN 100,000 POPULATION. ASSEMBLYMAN FETTIC SECONDED THE MOTION. THE MOTION FAILED. ASSEMBLYMEN SPITLER AND PRICE AND ASSEMBLYWOMEN TIFFANY, GIUNCHIGLIANI AND CHOWNING VOTED NO. ASSEMBLYMEN DINI AND ALLARD WERE NOT PRESENT AT THE TIME OF THE VOTE. *************** Chairman Marvel called for a vote on Ms. Giunchigliani's amendment. THE MOTION CARRIED. ASSEMBLYMAN DINI WAS NOT PRESENT AT THE TIME OF THE VOTE. *************** ASSEMBLYWOMAN GIUNCHIGLIANI MOVED AMEND AND DO PASS ON A.B. 317 BY CHANGING THE EFFECTIVE DATE TO JULY 1, 1995. ASSEMBLYMAN HETTRICK SECONDED THE MOTION. THE MOTION CARRIED. ASSEMBLYMAN DINI WAS NOT PRESENT AT THE TIME OF THE VOTE. *************** BUDGET CLOSINGS Ms. Tiffany presented the report of the Joint Subcommittee on General Government on the Department of Administration. JOINT SUBCOMMITTEE ON GENERAL GOVERNMENT REPORT TO ASSEMBLY COMMITTEE ON WAYS AND MEANS DEPARTMENT OF ADMINISTRATION BUDGET AND PLANNING The subcommittee recommended closing the budget for the Budget and Planning Division (page 462, account 101-1340) without approving several of the decision units recommended in The Executive Budget. Specifically, the subcommittee did not recommend the following decision units: ? Module E-128, form an in-house business process re-engineering (BO+PR) team. ? Module E-128, clerical staff for BPR team. ? Module E-425, funding for Commission on Sentencing felons - the subcommittee did not recommend this module pending the outcome of final passage of A.B. 317 and/or S.B. 416, both of which would impact whether this module is needed. The subcommittee recommended approval of the grants and project analyst included in decision unit E-127. However, the subcommittee does recommend a letter of intent to report quarterly to the Interim Finance Committee on the number and amount of grants received as a result of this position. The subcommittee also recommends the Department of Administration develop a strategic plan to expand the identification of alternative funding methods. INTERNAL AUDIT The subcommittee recommended closing the Internal Audit budget (page 473, account 101-1342) at the Governor recommends level pending the outcome of Assembly Bill 24. If A.B. 24 is not passed, the portion of this budget account which deals with the internal audit function will need to be eliminated, but the pre- audit activities will need to continue. BENEFIT SERVICES FUND The subcommittee recommended several changes to the revised budgets for the Risk Management Division which were presented to the committee on May 8, 1995. First, the Executive Director for the Committee on Benefits position was not approved. As an alternative, the subcommittee recommended the committee be provided with oversight authority for the Risk Manager position with approval of the Director of the Department of Administration. This adjustment eliminated the need for the new Committee on Benefits account (budget account 625-1337). The subcommittee also recommended a letter of intent be issued to have the Committee on Benefits develop organizational policies and work with other self- insured organizations to develop operational policies and objectives of the Committee on Benefits. The subcommittee recommended a number of adjustments to the Benefit Services Fund (page 481, account 625-1338). These adjustments reflect technical and mechanical adjustments necessary to correct The Executive Budget and implement the changes recommended in the revised actuarial report. As a result of the revised actuarial report, the state recommended contribution per employee was decreased from $253.09 per month in FY 96 and $274.50 per month in FY 97 to $236.69 in FY 96 and $247.34 in FY 97. The revised actuarial report includes a reserve entitled "Reserve for Rate Stabilization". The actuary indicates this reserve is necessary to buffer the account against unexpected increases in medical inflation rates, thereby buffering employees against unexpected benefit cuts or dependent premium increases. The subcommittee also recommended establishing a separate category for claims payments and transferring operating costs from the self insured program costs category to the operating category. The subcommittee recommended the staff in module E-150 of the Benefit Services Fund be changed to include three program assistants for the Member Services Unit, rather than two program assistants and one Group Benefits Administrator. The subcommittee also recommended the decrease in the co-insurance level, from $10,000 to $7,500 be funded through the reserve since the contribution level recommended in the revised Executive Budget was not sufficient to fund the benefits increase from current premiums. STATE EMPLOYEES WORKERS COMPENSATION The State Employees Workers Compensation account (page 488, budget account 715-1329) was closed with technical adjustments to match revenues and reserves to the level of funding recommended in The Executive Budget. The subcommittee recommended approval of the transfer of the two staff members who perform this function into this account from the Benefit Services Fund. The subcommittee also recommends a letter of intent to have the agency develop a report on the impact of having state agencies pay workmen's compensation premiums based upon the agency's safety record. INSURANCE AND LOSS PREVENTION In the Insurance and Loss Prevention account (page 495, account 101-1347), the subcommittee did not recommend approval of module E-805 which funds an upgrade of the Insurance and Loss Prevention Specialist. The subcommittee recommended the agency approach the Interim Finance Committee if the upgrade is approved. The subcommittee also recommends the Insurance and Loss Prevention Specialist provide a report to the next Legislative Session on the number of construction contracts reviewed for insurance information and the impact of the review on the state construction costs and property losses. VICTIMS OF CRIME The subcommittee recommended adjustments to the revenue levels of the Victims of Crime program to better reflect the growth in revenues which are related to demographics. The subcommittee recommended a decrease in the court assessments received by this account to decrease the level of the reserve which has been generated. The subcommittee also recommends a letter be sent to the program manager commending him for the cost-cutting measures which have been implemented. DEFERRED COMPENSATION The subcommittee did not recommend the half-time secretary included in module E-150 of the Deferred Compensation account (page 665, account 101-1017). Instead, the committee recommended funding for a contract secretary to take minutes and perform board support. STATE PRINTING OFFICE The subcommittee is recommending an increase in printing sale revenue authority of $277,526 in FY 1996 and $316,945 in FY 1997. The additional revenue authority will allow for increased statewide cost allocation expenses of $63,586 each year per revisions from the Budget Division, as well as an additional $154,638 each year for projected increases in the cost of raw materials. The adjustments also increase the reserve category by $55,031 in FY 1996 and $90,737 in FY 1997 to allow sufficient expenditure authority for anticipated cost of living increases recommended in The Executive Budget. The subcommittee also reviewed correspondence from the Budget Division which lists state agencies that may be affected by proposed printing rate increases of 17.5 percent in FY 1996 and an additional 4.2 percent in FY 1997. The subcommittee agreed to allow the Fiscal Analysis Division to individually review and analyze the agency budget accounts and where appropriate, make any necessary adjustments. MOTOR POOL In this account, the subcommittee recommended that a total of $160,000, recommended in The Executive Budget for the purchase of computer software, installation and training for an automated reservation system, be removed from data processing and placed in the reserve category until more reliable information on prices and availability of applicable hardware and software could be obtained. The subcommittee found that the Department of Information Services had been unable to locate software which would provide all the functionality required by the Motor Pool. Due to this uncertainty, the subcommittee recommended that the Motor Pool approach the Interim Finance Committee during the 1995-97 biennium when more definitive information is obtained regarding the proposed reservation system. The committee should also note that this budget will need to be adjusted when final action is taken on Assembly Bill 246, a general fund one-shot appropriation for the purchase of additional Motor Pool vehicles. The Executive Budget did not contain revenue or expenditure authority in this budget to collect for the rental of the additional vehicles or to provide for operations costs such as fuel, maintenance and insurance. When a firm number of new vehicles to be purchased through Assembly Bill 246 is obtained, this account will be adjusted accordingly. ADMINISTRATIVE SERVICES DIVISION In this account, the subcommittee made several technical adjustments in state- owned rent and also decreased maintenance agreements for personal computers by $2,000 in FY 1996. The subcommittee also agreed to allow the Fiscal Analysis Division to adjust the administrative charge assessment in all of the affected budget accounts which support this budget. Permission is similarly requested from the full committee to make the necessary administrative charge adjustments. The following budget accounts were closed at the Governor recommended level with technical adjustments: ? Merit Award Board - page 479, account 101-1345 ? Supplemental Fund - Indigents - page 491, account 628-3244 ? Indigent Accident Account - page 493, account 628-3245 ? Hearings and Appeals - page 581, account 101-1015 ? Workers Compensation Hearings Reserve - page 587, account 101-1014 ? Retired Employee Group Insurance - page 489, account 101-1368 ? Printing Office Equipment - page 508, account 741-1331 ? Motor Pool Vehicle Purchase - page 526, account 711-1356 ? State Purchasing - page 528, account 718-1358 ? Commodity Food Program - page 534, account 101-1362 ? Purchasing Equipment - page 540, account 718-1364 ? Surplus Property Program - page 543, account 101-1367 The general fund impact of the subcommittee's recommendations would be a decrease of $258,862 in FY 1995-96 and $287,630 in FY 1996-97, compared to amounts recommended by the Governor. If the positions related to the Sentencing Commission are approved, the subcommittee's actions would result in a general fund savings of $110,150 in FY 1995-96 and $127,465 in FY 1996-97. Ms. Giunchigliani observed there had been problems in the State Printing Office with hiring practices. The Office has now indicated it will post all open positions; however, statutes allow the Director to appoint employees to those trade positions. Ms. Giunchigliani indicated consideration should be given to placing Printing Office employees under the Personnel Act. Mrs. Evans asked whether it would be legal to move trade union employees from State Printing to the State Classified System. Ms. Giunchigliani responded affirmatively. Ms. Giunchigliani also noted the subcommittee had not yet received requested policy information regarding replacement vehicles from the Motor Pool Division. Ms. Tiffany expressed her appreciation to fiscal staff for their work on the Department of Administration budgets. Mrs. Chowning requested that the Motor Pool policy regarding alternative fuels also be obtained. Mr. Spitler questioned whether several state-owned alternative fuel vehicles had been returned. Larry Peri, Program Analyst, responded six GMC pick-up trucks were defective, had been returned to the factory and the state had been reimbursed for the purchase price plus the cost for rental vehicles during the time the GMC trucks were out of service. Ms. Giunchigliani pointed out one problem with alternative fuel vehicles is that appropriate fuel is not readily available in many areas. Mr. Stevens observed the committee would need to revisit the subcommittee's action of eliminating the two Budget Division positions involved with the Sentencing Commission, depending on the ultimate decision regarding A.B. 317. Mr. Ghiggeri added the fiscal note for A.B. 317 indicates that if the two Budget Division positions are eliminated, the Department of Prisons would then require one additional position. Chairman Marvel called for a motion to accept the subcommittee report. ASSEMBLYMAN ALLARD MOVED TO ACCEPT THE REPORT OF THE SUBCOMMITTEE ON GENERAL GOVERNMENT ON THE DEPARTMENT OF ADMINISTRATION. ASSEMBLYMAN HETTRICK SECONDED THE MOTION. THE MOTION CARRIED. ASSEMBLYMAN DINI WAS ABSENT AT THE TIME OF THE VOTE. *************** DEPARTMENT OF HUMAN RESOURCES - ADMINISTRATION - PAGE 987 Mr. Peri reported staff suggested this budget account be approved as recommended by the Governor. However, additional funding had been located in the Title XX Social Services Block Grant program. A portion of that additional funding is recommended by the Budget Division to be considered as an enhancement to this budget account to develop and implement a process and framework for allocating, evaluating and obtaining input from the community on the Title XX Block Grant as well as other future block grants awarded to the state of Nevada. The proposal is estimated to cost $84,055 in each year of the biennium and would be distributed as follows: $50,000 for a contractor's salary; $23,771 for travel and per diem; and $10,284 for operating costs. Ms. Giunchigliani confirmed the decision is whether to hire an independent contractor to design procedures for proper allocation of block grant funds and questioned whether it would be necessary to hire an outside contractor for that purpose. Mrs. Evans observed the Senate did not approve this enhancement with the major objection being to using Title XX dollars for this purpose. She questioned whether there was another way to accomplish the goals of the enhancement with existing staff. Mr. Spitler said a better alternative might be to distribute more Title XX dollars to community based groups to deliver direct services. ASSEMBLYWOMAN EVANS MOVED TO CLOSE THE BUDGET AS RECOMMENDED BY THE GOVERNOR WITH THE INCLUSION OF A LETTER OF INTENT REGARDING ALLOCATION TO NON-PROFIT ORGANIZATIONS FOR POTENTIAL RECONFIGURATION OF DISTRIBUTION OF UP TO 10 PERCENT FOR NON-PROFIT ORGANIZATIONS. ASSEMBLYMAN ALLARD SECONDED THE MOTION. Mrs. Evans suggested the Director of the Department of Human Resources be asked to attend a committee hearing to provide information regarding Title XX funds. THE MOTION CARRIED. ASSEMBLYMAN DINI AND ASSEMBLYWOMAN TIFFANY WERE NOT PRESENT AT THE TIME OF THE VOTE. BUDGET CLOSED. ***************** HEALTH RESOURCES COST REVIEW - PAGE 995 ASSEMBLYMAN ARBERRY MOVED TO CLOSE THE HEALTH RESOURCES COST REVIEW BUDGET AS RECOMMENDED BY THE GOVERNOR. ASSEMBLYMAN HETTRICK SECONDED THE MOTION. THE MOTION CARRIED. ASSEMBLYMAN DINI AND ASSEMBLYWOMAN TIFFANY WERE NOT PRESENT AT THE TIME OF THE VOTE. BUDGET CLOSED. ***************** PURCHASE OF SOCIAL SERVICES - PAGE 997 Mr. Peri explained this is a Title XX block grant account. An additional $308,933 of revenue in FY 1996 and $292,590 in FY 1997 had been identified due to unanticipated carry forward from the current fiscal year and higher than anticipated grant authority. Adjustments relate to transfers out of this budget account into various state agency budget accounts. Mr. Peri noted this budget is out of balance by $131,000 and $115,000 in the first and second years of the biennium respectively. Options available to the committee include: 1) adding $84,055 to the Director's Office; 2) adding residual revenue of approximately $45,000 in FY 1996 and $39,000 in FY 1997 to the non-state agencies expenditure category; 3) funding cost-of-living increases for state positions that are funded in their entirety by Title XX block grant funds. Mrs. Evans requested this budget be held to give the Director of Human Resources an opportunity to address this issue and to provide additional information. COMMUNITY SERVICES BLOCK GRANT - PAGE 999 ASSEMBLYMAN HETTRICK MOVED TO CLOSE THE COMMUNITY SERVICES BLOCK GRANT BUDGET AS RECOMMENDED BY THE GOVERNOR. ASSEMBLYMAN ARBERRY SECONDED THE MOTION. THE MOTION CARRIED. ASSEMBLYMAN DINI WAS NOT PRESENT AT THE TIME OF THE VOTE. BUDGET CLOSED. **************** PUBLIC DEFENDER - PAGE 1003 Mr. Peri explained recommended technical adjustments include: 1) moving $14,820 in the base budget from state owned rent to non-state owned rent to provide for the Carson City Office's planned relocation to leased office space; 2) a new enhancement module, E-127, to accommodate an interlocal agreement the Public Defender has entered into with Clark County to provide indigent defense services in conflict cases. Decision unit E-127 would be funded in its entirety with fees from Clark County, $450,000 in each year of the upcoming biennium, and would add seven FTE new employees. ASSEMBLYWOMAN GIUNCHIGLIANI MOVED TO CLOSE THE PUBLIC DEFENDER BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS. ASSEMBLYWOMAN CHOWNING SECONDED THE MOTION. THE MOTION CARRIED. ASSEMBLYMEN DINI AND HETTRICK WERE NOT PRESENT AT THE TIME OF THE VOTE. BUDGET CLOSED. ************** INDIAN COMMISSION - PAGE 1009 Mr. Peri reported technical corrections include adjusting vacancy savings by $290 in the first year of the biennium. A more significant recommendation is in the M200 decision unit and involves reducing the Board and Commission pay by $800 in each year of the biennium. The Executive Budget recommended a total of $2,400 for Board and Commission pay for a total of six meetings. The recommendation to reduce the number of meetings to four is based on the fact that three meetings were held in FY 1994 and year to date in FY 1995 only $880 has been expended, roughly the equivalent of two meetings. Decision unit E-125 would accordingly reduce the recommended in-state travel to the equivalent of four Commission meetings. The Executive Director position has been vacant for some time and the Education and Information Officer has been fulfilling the duties of both positions; decision unit E-805 would delete the Education and Information Officer position and combine the duties of both positions into the Executive Director position and would increase the Executive Director's salary from $40,000 to approximately $44,538 per year, the salary of the current Education and Information Officer. ASSEMBLYWOMAN GIUNCHIGLIANI MOVED TO CLOSE THE INDIAN COMMISSION BUDGET AS RECOMMENDED BY STAFF. ASSEMBLYMAN ALLARD SECONDED THE MOTION. THE MOTION CARRIED. ASSEMBLYMAN HETTRICK WAS NOT PRESENT AT THE TIME OF THE VOTE. BUDGET CLOSED. *************** There being no further business to come before the committee, Chairman Marvel adjourned the hearing at 11:00 a.m. RESPECTFULLY SUBMITTED: Deborah Salaber, Committee Secretary Assembly Committee on Ways and Means May 29, 1995 Page