MINUTES OF THE ASSEMBLY COMMITTEE ON WAYS AND MEANS Sixty-eighth Session June 2, 1995 The Committee on Ways and Means was called to order at 1:38 p.m., on Friday, June 2, 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 Mr. Lynn Hettrick Mr. Bob Price Mr. Larry L. Spitler COMMITTEE MEMBERS ABSENT: Ms. Chris Giunchigliani STAFF MEMBERS PRESENT: Mr. Mark Stevens, Fiscal Analyst Mr. Gary L. Ghiggeri, Principal Deputy Fiscal Analyst Larry L. Peri, Program Analyst Chairman Marvel opened the hearing on A.B. 571. ASSEMBLY BILL 571 Revises provisions governing operation of certain regional facilities for children. John Carpenter, Assemblyman, District 33, introduced Mike Nannini, Shellie Griggs, and Marcia Bandera. He explained Elko County was in the process of building a new combination juvenile detention facility and treatment center for juveniles, and it was difficult to procure the funding for the project. The construction funds came from county and private sources in Elko and Eureka Counties. The bill was introduced late in the session because it was important to assure the legislature that the funding would be available. The money was in place, and the facility will be completed in approximately January or February of 1996. Assemblyman Carpenter noted that all rural counties, except Clark County, contribute to China Spring. Because of the lateness in introducing the bill, Assemblyman Carpenter did not want to request that the money budgeted for China Spring from the four counties be redirected to the northeast Nevada facility. The four counties of Eureka, White Pine, Lincoln and Elko would continue to pay into China Spring for the next two years. The reason for the appropriation to Elko County is because the Elko County facility will take the load off China Spring and the Nevada Youth Training Center (NYTC). Assemblyman Carpenter introduced a letter from Judge Stringfield (Exhibit C) in which the judge states, "I could commit Elko County to eliminate the usage of China Spring." The judge further states he will be able to reduce the number of children sent to NYTC by six to nine, and the Elko facility will thereby free beds at both China Spring for use by counties in western Nevada and NYTC for use by the rest of the state. Chairman Marvel noted the bill requests $125,000 in each year of the biennium, but the facility would not come on line until January or February 1996. He inquired why the amount was the same for both years of the biennium. Assemblyman Carpenter stated money would need to be available for training of staff. The county is prepared to take care of what is called the normal detention facility. The request includes money for staff training, group therapy, individual therapy, family therapy, some materials and an after-care program. Mr. Allard expressed support for A.B. 571. He inquired if the fiscal note which states, "The effect of this bill is to eliminate Douglas County from participation in the cost of the operation of China Spring Youth Camp" was correct. Assemblyman Carpenter stated he felt it should be Elko County and the other three counties. Mr. Dini asked if six more long-term beds were needed at the present time. Assemblyman Carpenter responded the testimony from the Committee on Judiciary indicated there was a need for extra beds. John Sarb, Administrator, Division of Child and Family Services, pointed out the NYTC facility and the Caliente Youth Center (CYC) facility operate consistently at 8% to 10% above capacity and there is a need for beds. Chairman Marvel inquired how many additional beds were needed. Mr. Sarb responded an estimate would be difficult to provide. The need for beds was moderated by the use of parole. NYTC ran 15 over capacity and Caliente ran 12 over capacity, 8 of which were boys, for a total of 25 beds over capacity at any given time. Ms. Tiffany asked if the bill would be a one-time appropriation or would provide for on-going expenses. Assemblyman Carpenter commented it would be an ongoing expense. The present facility is outdated and small. The new building will have classrooms and space to provide a complete program of rehabilitation like NYTC and China Spring. Ms. Tiffany inquired if the new facility would serve four counties. Mike Nannini, Elko County Commissioner, indicated it would serve the counties of Lincoln, White Pine, Eureka and Elko. When Ms. Tiffany queried if the facility would be co- educational, Mr. Nannini replied yes. Mrs. Evans inquired what the state's role would be in terms of the new facility. Assemblyman Carpenter indicated the four counties would like the money they send to China Spring Youth Camp to be directed to the new facility after the current biennium. It is hoped a formula will then be devised where the new facility would receive funding from the state much the same as China Spring. Mrs. Evans noted the detention portion of the mixed facility would be the responsibility of the counties, and asked if the request was for funding from the state for the six to eight long-term beds. Assemblyman Carpenter answered yes. Mr. Close asked if the plan included tamper-proof locks on the doors. Mr. Nannini indicated the architect was providing a state-of-the-art facility. Mrs. Evans inquired who would provide the schooling. Marcia R. Bandera, Superintendent, Elko County School District, explained the district currently offers a program for the temporary juvenile facility. The district has committed $100,000 to help build the facility plus approximately $200,000 for two instructional areas, one in the detention portion and one in the alternative education classroom. Shellie Griggs, Chief Juvenile Probation Officer, Elko County Probation Department, stated the main reason for the new facility was to bring the children closer to the parents so the department could work with the family in returning the children to the community. Chairman Marvel called for further testimony regarding A.B. 571. There being none, Chairman Marvel closed the hearing on A.B. 571 and opened the hearing on A.B. 662. ASSEMBLY BILL 662 Makes appropriation necessary to effect salary increase for certain classes of state educational personnel. John Carpenter, Assemblyman, District 33, introduced Bob Jones and Gaylen Christean, NYTC teachers, and Gary Yoes, union representative. Assemblyman Carpenter explained the teachers at NYTC teach year round yet receive the same pay as public school teachers who teach 180 days per year. The children at NYTC are not ordinary children and require staff who have the dedication to provide an education. Gary Yoes, Political Action Coordinator, SEIU, Local 1864, read from prepared testimony which is attached as Exhibit D. Bob Jones read from prepared testimony which is attached as Exhibit E. Chairman Marvel inquired how large the teaching staff was at NYTC. Mr. Jones replied there were 17 teachers. Mr. Allard asked if the same inequities existed at other youth correction programs. Mr. Jones explained the teachers at Caliente Youth Center were paid through a county contract. Chairman Marvel commented NYTC was unique in that it had its own in-house school system. Assemblyman Carpenter pointed out Independence High School was integrated with the other schools in the district. Mr. Yoes noted there were 14 academic teachers and 4 vocational instructors at Independence High School. Mrs. Brower inquired what the percentage of salary increase was. Mr. Yoes said if a teacher who works 9 months was paid for 12 months, he or she would make $4,000 more than the NYTC teachers at the top step. An increase of two pay grades represents the $4,000 difference, or 10% more than they are currently making. Mr. Price noted the youth at Independence High School were the toughest in the state. Mr. Christean read from prepared testimony which is attached as Exhibit F. Chairman Marvel inquired if the teachers at NYTC were in the step and grade system as classified employees. Mr. Christean responded affirmatively. Mr. Christean read a letter from David Anderson, Independence High School, which is attached as Exhibit G. Mr. Close asked what the average class size was at NYTC. Mr. Christean replied 10 to 18 students. Mr. Close inquired if the bill was in addition to the salary increase recommended by the Governor. Mr. Yoes indicated the bill was a salary adjustment. Mrs. Evans suggested it would be appropriate to provide for the summer months as had been done for China Spring. Robert Gagnier, Executive Director, State of Nevada Employees Association, spoke in favor of A.B. 662. He pointed out the benchmark midpoint in the State of Nevada Employee Survey which was the furthest out of line was the academic teacher. Teachers are behind at midpoint by 26.44% and at the top step by 33.37%. The greater disparity was to compare the 1992 survey with the 1994 survey. In 1992 the survey said the academic teachers were 15.85% behind at midpoint and 21.48% behind at the top. The disparity in two years had grown by nearly 12%. Mr. Fettic inquired if the academic teachers were behind state employees. Mr. Gagnier responded the survey indicated other teachers not working for the state. Mr. Gagnier asked why state employees did not gain additional pay as they gain additional credentials as did teachers. The state did not have just one compensation plan, and a separate pay schedule could be set up for the teachers who work at NYTC. Mr. Fettic inquired what the role of the Department of Personnel would be. Mr. Gagnier indicated the Department of Personnel would have no choice but to implement the law. If there was a different compensation schedule for the NYTC teachers to recognize additional training, the Department of Personnel would be required to implement it. Ms. Tiffany asked if teachers were paid a 9-month salary but they work 12 months. Mr. Gagnier explained under the state compensation schedule, teachers were paid biweekly at salary grade for 12 months of the year. Ms. Tiffany inquired if a teacher's 9-month salary was spread over 12 months. Mr. Gagnier noted it was his understanding of the salary survey that the state-employed academic teachers were judged to have a 12-month year as opposed to 10 months for local government. Mr. Yoes indicated the NYTC teachers were 21% behind their counterparts in Elko County. They work 12 months per year and make the same as the other teachers who work nine months per year. Mr. Gagnier noted a two-pay-grade adjustment was approximately 9%. Mr. Christean noted the pay difference was 27% based on the statewide average. The difference in pay is 21% in Elko County at 8 hours per day for 12 months, or 229 to 235 days. Other teachers work 180 to 186 days at 6.5 to 7 hours per day. Chairman Marvel called for further testimony regarding A.B. 662. There being none, Chairman Marvel closed the hearing on A.B. 662 and opened the hearing on A.B. 217. 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. Chairman Marvel requested Mrs. Evans to address some of the questions which had been raised during the subcommittee hearing. Mrs. Evans noted questions were raised during subcommittee regarding the lease with Volunteers of America for the Southern Nevada Children's Home in the areas of responsibility for maintenance and repairs of the facility. A determination was unable to be made of the contractual agreement between the state and Volunteers of America, which was not part of A.B. 217. She requested information on where the state was in terms of negotiation on the lease. John Sarb, Administrator, Division of Child and Family Services, explained there were two leases for the Southern Nevada Children's Home property with Volunteers of America. The original lease was for two cottages and a subsequent lease for the balance of the property. Both leases end June 30, 1995. The contract for service and the lease were part of the same document. The language in the current leases has the state responsible for alterations and improvements, and the Volunteers of America is responsible for maintenance. There was some grey area regarding whether something may be maintenance or an alteration. Volunteers of America had a high sense of integrity, sense of fair play and commitment to service, and when questions arose, they were resolved between the agencies. For instance, Volunteers of America had replaced two air conditioning units at the facility. Chairman Marvel asked how much Volunteers of America was charged for the use of the facility. Mr. Sarb stated the rent was $189,853 for one year. Chairman Marvel inquired if the lease arrangement was rather loose. Mr. Sarb noted the lease arrangement specifies how much is to be paid per square foot at fair market value for rent, and the state pays for the care of the children. The arrangement is if an item would qualify as a CIP or a one-shot, the state ought to be responsible. If it was an item that would fit into an operating budget, the Volunteers of America would be responsible. Mr. Sarb noted State Lands has requested the contract for service be separated from the lease for the property. The language agreed to by the Volunteers of America would make them responsible for alterations, improvements and maintenance. Chairman Marvel inquired when the new lease arrangement would become effective. Mr. Sarb replied from July 1, 1995, forward. Chairman Marvel asked if the new lease was enforceable. Mr. Sarb commented that given the history, if anything, Volunteers of America would be more assiduous about repairs than the state. Mrs. Evans inquired if there was anything outstanding in terms of a state obligation at the present time. Mr. Sarb remarked there were three items which had previously been negotiated and included an offset to rent in FY 1995, so the sprinkler system could be repaired, as well as roof repair and fire code upgrades. Mrs. Evans asked what the cost of the previous negotiations would amount to. Mr. Sarb commented an estimate for the roof and fire code upgrades could be provided by Public Works, but a working estimate was $20,000 to $23,000 for the sprinkler repairs. Mrs. Evans queried if the figure in the bill of $235,000 was adequate. Mark Stevens, Fiscal Analyst, Legislative Counsel Bureau, provided a memo to the committee members and explained the recommended amount in the bill could be reduced from $235,485 to $199,967 based on updated bids received from Child and Family Services but does not address any items at the Southern Nevada Children's Home and would be an add to the number. Mr. Sarb stated he was not sure how the Southern Nevada Children's Home got joined to the discussion of A.B. 217. Mr. Stevens noted when the bill was originally heard there were questions regarding the Southern Nevada Children's Home. When the bill came up for closure by the committee, those questions reappeared. Mr. Spitler noted there was in excess of $50,000 for the Southern Nevada Children's Home based on the memo and inquired when a request would be made for that amount. Mr. Sarb explained he asked the Volunteers of America what needed to be done, and he noted the items he felt were in the maintenance range. When Mr. Spitler asked what the Volunteers of America would be responsible for, Mr. Sarb indicated they would be responsible for everything except the roof repairs, fire code and sprinklers. Mr. Spitler questioned whether that totaled $50,000 and would be addressed through a one-shot appropriation. Mr. Sarb indicated the sprinkler system would be an offset to rent for FY 1995. He offered to request that the roof repair and fire code items be included in the Public Works Board program. Mr. Allard asked if any of the money in A.B. 217 was going to the Southern Nevada Children's Home. Mr. Sarb stated that was never the intent. Mr. Allard inquired what amount was going to Southern Nevada Child and Adolescent Services. Mr. Stevens explained A.B. 217 was for Northern and Southern Nevada Child and Adolescent Services, which is not the Southern Nevada Children's Home. Mr. Allard inquired about the patio cover and carpet. Mr. Stevens stated those items were unrelated to the Southern Nevada Children's Home. Chairman Marvel opened the hearing on A.B. 218. ASSEMBLY BILL 218 Makes appropriation to division of child and family services of department of human resources for vehicles, computers and miscellaneous equipment. Larry L. Peri, Program Analyst, Legislative Counsel Bureau, explained A.B. 218 was previously heard in the Committee on Ways and Means at which time questions arose regarding the appropriateness or the relatedness of computers listed in the one-shot appropriation request to the Statewide Automated Child Welfare Information System (SACWIS) proposal. A memorandum was provided to the committee members (Exhibit H) with attached itemized expenditures on pages 4 and 5. Legislative Counsel Bureau (LCB) staff requested responses to questions from the previous hearing, which are pages 7 and 8 of Exhibit H. Page 9 is a memo regarding the questions from the previous hearing and page 10 is the response. Mrs. Evans expressed concern regarding the answer listed on page 9 which states, "Verbal approval has been received for 20 computers, software and printers into the SACWIS which will allow for 75% federal funding. These expenditures will be incorporated as part of Phase II and final approval will not be received until then." The subsequent memo states, "The hardware and software requested in A.B. 218 were not related to the SACWIS project." She inquired what happened during the two-week period between memos. Mr. Sarb noted A.B. 255 was also considered during the previous hearing and was a general fund one-shot appropriation connected with SACWIS, but projections were not available for the bill. Mr. Sarb stated Mr. Arberry asked during the meeting if there was a possibility of federal participation in some of the computers connected with the bill. Mr. Sarb said he responded the federal government gave verbal approval for 20 computers. The federal participation money was credited to 20 of the 25 computers that were listed in A.B. 218 and which might not necessarily be connected to SACWIS. It did not matter to the federal government whether the participation in the computers came through A.B. 218 or A.B. 255. Mrs. Evans inquired how much should be deducted from $629,000 as a result of the federal participation. Mr. Sarb stated Mr. Peri made the adjustment in A.B. 218. Mr. Peri noted page 3 of Exhibit H addressed all the items contained in the one-shot appropriation. The original cost is itemized for each group of 20. The 20 computers would be split among general fund and Federal IV-E at a 75/25 cost distribution. The deductions to the bill are summarized on the bottom of page 3. Mr. Marvel inquired if the revised schedule included general fund dollars at $349,720. Mr. Peri responded yes, plus another $84,764 for the replacement of 27 vehicles. The total after staff adjustments is $434,484 for the general fund. It is proposed that federal authority be included to allow for the collection of federal funds and to consider adding a general fund payback provision to the bill to address the recovery of federal funds for the vehicles. Ms. Tiffany noted the purchase was for the purpose of automating the clerical staff. She inquired who was going to create the network, was a discount provided on the hardware, and what type of license agreement was made. Mr. Sarb stated the questions would more appropriately be addressed by the Department of Information Services. Some of the support cost would be part of the agency's operating budget, whereas the one-shot would be the hardware and software. It is not assumed the 25 computers are going to be networked. If they are to be networked, that would be part of the SACWIS recommendation. Mrs. Evans requested information be provided on how the offset to rent for the sprinkler system would impact the budget and how the roof repairs and the fire code work would be paid for. Mr. Close requested information be provided to the committee on who provided authorization for an offset on some of the services provided by the Volunteers of America and who provided final approval of the contracts. Mr. Sarb stated the lease provides for an offset of rent, which he was responsible for, and the lease and contract are approved ultimately by the Board of Examiners. Chairman Marvel adjourned the hearing at 3:01 p.m. RESPECTFULLY SUBMITTED: Jonnie Sue Hansen, Committee Secretary Assembly Committee on Ways and Means June 2, 1995 Page