MINUTES OF THE ASSEMBLY COMMITTEE ON WAYS AND MEANS Sixty-eighth Session June 7, 1995 The Committee on Ways and Means was called to order at 7:42 a.m., on Wednesday, June 7, 1995, Chairman 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. Jeanne Botts, Program Analyst Mr. Brian Burke, Program Analyst Chairman Marvel requested bill introductions. The first was for a supplemental appropriation to the Division of Child and Family Services for the cost of placing certain children in intermediate care facility for mentally retarded in Utah. MR. ARBERRY MOVED TO INTRODUCE A BILL FOR A SUPPLEMENTAL APPROPRIATION TO THE DIVISION OF CHILD AND FAMILY SERVICES FOR THE COST OF PLACING CERTAIN CHILDREN IN INTERMEDIATE CARE FACILITY FOR MENTALLY RETARDED IN UTAH. MRS. CHOWNING SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. MR. ALLARD, MRS. EVANS, MR. DINI, AND MR. HETTRICK WERE ABSENT FOR THE VOTE. * * * * * Chairman Marvel stated the second bill introduction was for a supplemental appropriation to the Department of Prisons for certain costs related to medical care. MR. ARBERRY MOVED TO INTRODUCE A BILL FOR A SUPPLEMENTAL APPROPRIATION TO THE DEPARTMENT OF PRISONS FOR CERTAIN COSTS RELATED TO MEDICAL CARE. MS. TIFFANY SECONDED THE MOTION. Mr. Spitler asked what the amount of the supplemental appropriation was. Mr. Stevens said the amount was $958,000. THE MOTION CARRIED UNANIMOUSLY. MR. ALLARD, MRS. EVANS, MR. DINI, AND MR. HETTRICK WERE ABSENT FOR THE VOTE. * * * * * Chairman Marvel said the next bill introduction was to revise provisions governing disposition of commission for collecting vehicle privilege tax. MRS. CHOWNING MOVED TO INTRODUCE A BILL TO REVISE PROVISIONS GOVERNING DISPOSITION OF COMMISSION FOR COLLECTING VEHICLE PRIVILEGE TAX. MR. ARBERRY SECONDED THE MOTION. Mr. Stevens noted this bill was being introduced pursuant to budget closings. THE MOTION CARRIED UNANIMOUSLY. MR. ALLARD, MRS. EVANS, MR. DINI, AND MR. HETTRICK WERE ABSENT FOR THE VOTE. * * * * * SENATE BILL 76 Authorizes temporary advance from state General Fund for certain authorized expenses of state Department of Conservation and Natural Resources. Mr. Pete Morros, Director, Department of Conservation and Natural Resources, explained S.B. 76 was requested by the department to pay for outstanding bills associated with fire suppression activities. He explained bills issued by the department to the federal government and to the railroad for fire suppression had remained unpaid for several months, necessitating the department to request a loan from the General Fund to pay invoices from its suppliers. He explained relations with suppliers were becoming strained due to the length of time it takes the department to pay them. Mr. Morros reported he had the assurance of the U.S. Forest Service it would pay the department $322,000 by June 15, 1995. SENATE BILL 202 Makes appropriation to state Controller for equipment and computer enhancements and remodeling of basement of capitol annex. Mr. Ken West, Chief Deputy Controller, testified S.B. 202 was a one-time appropriation bill to fund replacement and new equipment. He noted the Controller had previously provided a detailed list of that equipment. MR. DINI MOVED DO PASS S.B. 202. MRS. BROWER SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. MR. ALLARD, MR. HETTRICK, AND MS. TIFFANY WERE ABSENT FOR THE VOTE. * * * * * SENATE BILL 220 Makes various changes to provisions relating to expenditure of money for state parks. Mr. Wayne Perock, Acting Administrator, Division of State Parks, reported S.B. 220 would authorize a one-time appropriation to fund capital improvement projects for the coming biennium as well as new and replacement equipment. The bill would also authorize a slight adjustment in the 1990 Park and Wildlife bond issue by transferring acquisition money to the master plan feasibility study. He distributed a list of the capital improvement projects to the committee (see Exhibit C). MR. DINI MOVED DO PASS S.B. 220. MRS. EVANS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. MR. ALLARD, MR. HETTRICK, AND MS. TIFFANY WERE ABSENT FOR THE VOTE. * * * * * SENATE BILL 221 Makes appropriation to Division of Water Resources of State Department of Conservation and Natural Resources for equipment. Mr. Michael Turnipseed, Nevada State Engineer, distributed to the committee copies of a list of one-time appropriations which are part of the division's 1995-97 budget (see Exhibit D). MR. DINI MOVED DO PASS S.B. 221. MRS. BROWER SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. MR. ALLARD, MR. HETTRICK, AND MS. TIFFANY WERE ABSENT FOR THE VOTE. * * * * * SENATE BILL 222 Makes appropriation to Division of State Lands of State Department of Conservation and Natural Resources for equipment. Ms. Pam Wilcox, Administrator, Division of State Lands, testified S.B. 222 would authorize one-time funding for new and replacement equipment included in the agency's budget (replacement computer equipment - $18,825; new field and office equipment - $4,525; and storage cabinet for flammable materials - $1,000). Chairman Marvel asked Ms. Wilcox to submit an itemized list of the equipment to the committee. She agreed to do so. MRS. BROWER MOVED DO PASS S.B. 222. MR. DINI SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. MR. ALLARD AND MR. HETTRICK WERE ABSENT FOR THE VOTE. * * * * * SENATE BILL 469 Revises provisions of Assembly Bill No. 387 of this session concerning approval of lease of state water rights. Ms. Pam Wilcox, Administrator, Division of State Lands, explained the division had been notified by the Public Service Commission that the lease of water rights for the new Nevada Army National Guard facility at Stead had to be with the municipality rather than with the water purveyor. S.B. 469 was introduced as a rider to the prior legislation to make that correction. She noted the change had been made in the lease. Chairman Marvel asked if this was an emergency measure. Ms. Wilcox stated it was not an emergency. MR. PRICE MOVED DO PASS S.B. 469. MR. SPITLER SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. MR. ALLARD AND MR. HETTRICK WERE ABSENT FOR THE VOTE. * * * * * BUDGET CLOSINGS PUBLIC WORKS BOARD ADMINISTRATION - PAGE 547 Chairman Marvel presented the report of the Subcommittee on Capital Improvements. He noted the recommended budget closures to be presented would result in a reduction of General Fund appropriation to the Public Works Board Administration budget by approximately $784,000 over the 1995-97 biennium. Chairman Marvel stated the committee would note a number of adjustments to the base and various decision units for this budget which are technical in nature. An attempt was made to align costs with the budget account where positions are funded and to eliminate certain one-time costs from the base budget. He explained offsetting adjustments would be noted in the Public Works Board Inspection budget. In addition, the agency requested consideration of the subcommittee for the following, which are recommended in the closing document: 1. Acquisition of a lap top computer for the Manager. 2. Additional office space for the Las Vegas office (expansion from approximately 1,200 square feet to approximately 1,800 square feet). The agency also suggested a realignment of staff and related costs between this budget and the agency's inspection budget. The staff and related costs that were recommended for transfer are staff the agency has identified as being directly project related. All architects, engineers, drafters, and inspectors will be funded in the inspection budget, which is supported via assessments against projects. The agency advised this will allow them to "staff-up" when they have large CIP programs and to reduce staff when CIP programs are small. Testimony provided by the agency indicated the inspection management fee will not require adjustment in the recommended Capital Improvement Program (CIP) for the 1995-97 biennium; however, an adjustment may be required to fund the increased cost of the construction management (inspection) budget in the 1997-99 biennium. PUBLIC WORKS BOARD INSPECTION - PAGE 552 Chairman Marvel continued the subcommittee report. Similar to the Public Works Board Administration budget, the recommended adjustments to this budget provide for: 1. Alignment of costs with the budget account where positions are funded. 2. Additional office space for the Las Vegas office. 3. Realignment of staff and related costs between this budget and the agency's administration budget. Additionally, due to the size of the recommended capital improvement program for the 1995-97 biennium, six positions are added to this budget that were not included in the Governor's recommended budget. The Public Works Board recommended CIP program was approximately $161 million. The Governor recommended a program of approximately $203 million. The estimated cost of the new staff is $202,664 in Fiscal Year 1996 and $283,092 in Fiscal Year 1997. This cost will be funded via assessments against projects, and as was noted previously, the staff will be reduced when the size of the CIP program is smaller. Ms. Giunchigliani asked if the six positions were required as the result of the difference between the agency request and the Governor's recommendation. Chairman Marvel responded affirmatively. He noted the positions would be project related. Mr. Ghiggeri explained the Capital Improvement Program had increased from the time the Public Works Board had originally prepared its budget to the time of the Governor's recommendation. The agency testified before the subcommittee that the increased size of the program necessitated additional staff. He noted the Capital Improvement Program would probably be expanded further based on recommendations of the subcommittee which have not yet been finalized, including expansion of the Lovelock Correctional Center and the Nevada Women's Correctional Center. Hopefully, additional staff would alleviate some of the current backlog. Ms. Giunchigliani questioned whether this had been past practice. Chairman Marvel explained the process had been streamlined by matching staff to the projects. Ms. Giunchigliani asked if there would ever be a commensurate reduction in staffing. Chairman Marvel stated that was how the subcommittee had attempted to structure the program. Mr. Ghiggeri said what was envisioned was a shift of all project related staff from the administrative budget to the inspection budget in order for the agency to increase or reduce staffing levels according to work levels. He reiterated the staff costs would be funded from project assessments over the life of the project. The funding would disappear if the project disappeared. Ms. Giunchigliani asked if the Capital Improvement Program had been finalized. Chairman Marvel answered it had not. Mrs. Evans supported increasing staff to deal with backlogged projects. MR. FETTIC MOVED TO ADOPT THE SUBCOMMITTEE RECOMMENDATION. MR. SPITLER SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. MR. ALLARD AND MR. HETTRICK WERE ABSENT FOR THE VOTE. BUDGETS CLOSED. * * * * * ADMINISTRATIVE SERVICES MAIL ROOM - PAGE 514 Mr. Arberry continued the report of the Capital Improvement Program Subcommittee. He stated in this account the subcommittee approved the Executive Budget recommendation to consolidate state mail services. The subcommittee made several adjustments to the consolidation proposal based on updated information and revised implementation schedules. The Executive Budget recommends the remodeling of the older portion of Fremont School (Project 95-C14 at a cost of $424,778) to serve as the new location for the consolidated mail services operation. The remodel is estimated to be completed by the end of January 1996, with the move of the current mail room to the new facility scheduled for February 1996 and operations beginning in March 1996. The state- owned building rent is increased by $5,016 in Fiscal Year 1996 and $15,872 in Fiscal Year 1997 to accommodate the revised timeframes. The subcommittee also approved the addition of $562,440 in mail services charges in Fiscal Year 1996 and $694,800 in Fiscal Year 1997. The increased revenue is primarily to address postage costs for the Department of Motor Vehicles, which were not included in this budget account, and to provide for a 20-year General Fund payback of $21,239 in each year to repay the anticipated costs of the Fremont School remodel. The subcommittee also agreed to add a new Mail Clerk position, effective March 1, 1996, which is necessary for the operation of a new mail inserter machine for the Welfare Division's NOMADS project, which was not contemplated in the Executive Budget. Also recommended is the purchase of the new inserter machine at a cost of $140,000 and the upgrade of an existing machine for $45,700, which will be used as a backup. The subcommittee also recommended the delay in the transfer of two positions from the Employment Security Division and one position from the State Industrial Insurance System until Fiscal Year 1997 to reflect the phasing in of the consolidation proposal. The Executive Budget recommended that the positions be transferred in at the beginning of Fiscal Year 1996. BUILDINGS AND GROUNDS - PAGE 559 Mr. Arberry reported the subcommittee made several technical adjustments in this account, including increasing the statewide cost allocation amounts by $83,952 each year based on revised figures from the Budget Division, and reducing the transfers to the Capitol Police budget account by a total of $14,483 over the biennium, which were provided as assessments to be paid to the Department of Administration. As the Executive Budget recommended that the Capitol Police be transferred to the Department of Public Safety, the Department of Administration assessments are not necessary. The subcommittee also increased contract services by $98,405 and utility costs by $70,295 over the 1995-97 biennium to provide for custodial services, heating and air conditioning services, buildings and grounds maintenance, and utility costs that were not included in the budget for the remodeled Fremont School to be occupied by the Department of Education, the older portion of Fremont School to be occupied by the State Mail Room, and the New Department of Motor Vehicles express office currently under construction in Las Vegas. The additional costs are partially offset by additional building rent revenue of $48,134 in Fiscal Year 1996 and $62,748 in Fiscal Year 1997 for the Department of Motor Vehicles express office and the State Mail Room. The subcommittee also recommended several adjustments in the building renovation category resulting in the reduction of proposed projects by $13,087 in Fiscal Year 1996 and $31,414 in Fiscal Year 1997. The reductions are due to revised amounts recommended for carpet replacement in the Kinkead Building, standardized amounts recommended for state parking lot sealing and striping projects, and the removal of amounts recommended for projects that were recently completed in Fiscal Year 1995. Additionally, costs for the remodel of Building 107 at the Stewart Facility have been removed as those improvements will be accomplished through the recommended Capital Improvement Project in the Executive Budget for that building (CIP 95-M2). The recommended adjustments result in new totals of $180,480 in Fiscal Year 1996 and $128,555 in Fiscal Year 1997 in the building renovation expenditure category. Mrs. Evans asked when the Department of Education would be occupying the remodeled Fremont School. Mr. Ghiggeri said the Department of Education would move into the Fremont School in late June or early July 1995. MR. DINI MOVED TO ADOPT THE SUBCOMMITTEE RECOMMENDATIONS. MR. SPITLER SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. MR. ALLARD, MS. GIUNCHIGLIANI, AND MR. HETTRICK WERE ABSENT FOR THE VOTE. BUDGETS CLOSED. * * * * * DISTRIBUTIVE SCHOOL ACCOUNT - PAGE 171 Chairman Marvel asked for the report of the Subcommittee on K-12 Education. Mr. Hettrick reported the revenues available for funding education have been reprojected in light of the estimates made by the Economic Forum. The projected growth rates used by the Economic Forum for sales tax were applied to both the local school support tax (LSST) and the LSST collected on out-of-state sales which is deposited to the Distributive School Account. New estimates of the state's assessed valuation were received and revenue from the $.75 property tax rate for school district operations was recalculated. The Gaming Control Board supplied new estimates of revenue from annual slot tax, and the amounts contained in the Executive Budget were reduced. General Fund appropriations were not reduced for savings in expenditures or increased estimates of revenues earmarked for schools. Although General Fund appropriations could have been reduced by $14,160,783 in Fiscal Year 1996 and $12,173,285 in Fiscal Year 1997 as a result of increases in revenues earmarked for schools and for reductions in expenditures, General Fund support was retained at the level recommended by the Governor. The additional funding is recommended to be used as follows: increases in the starting salaries of newly hired employees, increases for inflation and for one-time funding amounting to $4.7 million in Fiscal Year 1996 for computer hardware and software. The opening of Phase II of the Lovelock Correctional Center is deferred until July 1, 1997; therefore $256,396 recommended by the Governor to expand the prison education program in Pershing County in Fiscal Year 1997 is deleted. The retirement contribution is recommended to increase by 0.53 percent, and salaries are decreased by one-half of the amount contributions were increased. These decreases amount to $2,625,735 in Fiscal Year 1996 and $2,965,597 in Fiscal Year 1997. Starting salaries of licensed employees were increased to equal the actual average new-hire salary in Fiscal Year 1995. The starting salaries of non-licensed employees were increased from 65 percent to 75 percent of the average salary of existing employees in each class. The increased starting salaries amount to $6,579,755 in Fiscal Year 1996 and $9,394,893 in Fiscal Year 1997. The Governor's budget included funding to cover the cost of school district employees' salary increments for additional years of service or training and the amount necessary for the various school districts to grant in Fiscal Year 1996 a salary increase that is approximately 4 percent greater than the average salary in Fiscal Year 1994. State and local funding for salary increases for licensed instructional personnel (teachers) was based upon a 4 percent increase over the average salary of a teacher reported in the Nevada Department of Education's survey of the salaries of each licensed employee employed by a school district on October 1, 1994, as required by NRS 391.120. Funding for an additional salary increase for school district employees of approximately 3 percent is included for Fiscal Year 1997. The actual percentage increase received by an employee is determined by the school district's financial situation and the outcome of contract negotiations with employee groups. CLASS-SIZE REDUCTION - PAGE 177 Mr. Hettrick reported the Class-size Reduction budget provides funding to Nevada's school districts to hire additional teachers to reduce pupil-teacher ratios in the primary grades. The Executive Budget recommended $42,589,532 in Fiscal Year 1996 and $47,521,713 in Fiscal Year 1997 to maintain pupil-teacher ratios of 16 to 1 in selected kindergartens and grades 1 and 2 and provide "rollup costs" of 3 percent each year and salary increases of 4 percent in the first year and 3 percent in the second year. In addition, the Governor recommended $20,683,985 to hire 597 teachers to reduce the pupil-teacher ratio to 16 to 1 in third grade in Fiscal Year 1997; however the subcommittee recommends $7,308,405 be provided to hire 195 class-size reduction teachers for third grade. Flexibility in how the additional funding for third grade is used is also recommended. Estate tax revenues will provide $15,720,248 in Fiscal Year 1996 and $16,603,589 in Fiscal Year 1997 for the class-size reduction program, while General Fund appropriations of $27,725,925 in the first year and $39,109,870 in the second year cover the remainder of the program's costs. Earlier in the session, the Budget Division informed the Fiscal Analysis Division of an error in the Governor's budget whereby the cost of maintaining the 23.5 class- size reduction teachers in at-risk kindergartens was accidentally left out of the totals. The Budget Division recommended an increase in the program costs of $856,641 in Fiscal Year 1996 and $883,341 in Fiscal Year 1997, with General Fund appropriations to be increased by corresponding amounts to balance the revised budget. Based upon recent information received from the Budget Division, however, there should be sufficient estate tax revenue to fund the kindergarten program in the second year of the 1995-97 biennium. If additional funding is available, the Senate Finance Committee and the Assembly Ways and Means K-12 Education Subcommittee discussed the need to add funding for the following needs: an evaluation of the class-size reduction program, training teachers to work more effectively in teams or with small class sizes; and proficiency testing for second grade pupils. The Class-size Reduction budget also provides $130,680 each year of estate tax funds to continue providing 45 scholarships of $1,452 each at the University of Nevada, Reno, and 45 scholarships at the University of Nevada, Las Vegas, to qualified students pursuing teaching degrees. This is the same level of funding provided since 1988-89. OCCUPATIONAL EDUCATION - PAGE 233 Mrs. Evans continued the subcommittee report. She indicated the apprenticeship program would be transferred from the Occupational Education budget account to the School Improvement budget account to avoid permanently increasing the state's maintenance of effort for federal funding for occupational education. The General Fund appropriations, plus federal Carl Perkins grant funding in the first year of the biennium, maintain funding for the Apprenticeship Program at $320,000 each year. SCHOOL IMPROVEMENT - PAGE 181 Mrs. Evans reported the number of elementary school counselors funded by the School Improvement budget account will double. Twenty-three counselors in elementary schools were initially hired, pursuant to Assembly Bill 268 of the 1991 legislative session to develop programs to prevent drug abuse and reduce the number of dropouts. Approximately 50 counselors would be funded. Money would be distributed to all school districts based upon each district's elementary school enrollment; however, each district would receive at least one counselor. The subcommittee recommended the General Fund appropriations of $565,000 budgeted each year for "seed money" to create Family Resource Centers be handled through Senate Bill 405. The Family Resource Centers would be located in the service areas of 38 public K-12 schools in Nevada. PROFICIENCY TESTING - PAGE 243 Mrs. Evans stated funding totaling $22,875 in Fiscal Year 1996 and $17,625 in Fiscal Year 1997 is recommended for Nevada's participation in the National Assessment of Educational Progress (NAEP). An increase in the hourly rate of pay for teachers scoring students' writing samples in the Nevada Proficiency Examination program is included in the budget. The cost of this decision unit is $7,554 per year. The honorarium paid to teachers, which was cut by 20 percent in Fiscal Year 1991 due to budget shortfalls, will be restored. TEACHER EDUCATION AND LICENSING - PAGE 251 Mrs. Evans reported fees from educators' licenses, which are currently deposited directly into the state General Fund, will be deposited in the Teacher Education and Licensing budget account to help support the cost of the licensing program. If pending legislation passes which would increase teacher licensing fees, license fee revenue would reduce General Fund support of this office. Fees collected in excess of budgeted levels would revert to the state General Fund. To assist with the backlog in the Teacher Licensing offices, staff is increased by 3.25 full-time equivalent positions. The subcommittee recommends hiring three new licensing positions on July 1, 1995, rather than on January 1, 1996, because the busiest time for licensing teachers is August and September. Mrs. Evans noted the changes in all education budgets recommended by the subcommittee represent a cost to the General Fund of $185,691 in Fiscal Year 1996 but a savings of $13,958,611 in Fiscal Year 1997. Ms. Giunchigliani disclosed she is a public school teacher on unpaid leave of absence. She noted she would be voting on these budgets pursuant to a decision of the Ethics Commission. Ms. Giunchigliani stated she appreciated the work of the subcommittee; however, many holes remained in this budget. She expressed the hope that as other budgets were closed, if additional revenue was located, the committee would consider providing additional funding to these budgets to cover costs associated with growth. Mr. Hettrick noted all the members of the subcommittee made a commitment to revisit this budget if additional funds were located. Mrs. Evans explained the subcommittee struggled with this budget because the year which was used as the base budget (i.e., Fiscal Year 1994 rather than Fiscal Year 1995) placed the budget one year behind. Therefore, the budget was starting from a deficit position. She acknowledged growth had been underfunded, but under the circumstances the subcommittee did the best it could pending other budget considerations remaining to be determined. She urged the committee to keep an open mind regarding additional funding which may become available for K- 12 education. Mrs. Evans noted there appeared to be a lack of understanding regarding the one- time funding for computer hardware and software. Mr. Stevens explained $4.5 million was added in the first year of the budget for one-time funding for computers. The funding would not be included in the budget in the second year and would not be considered part of the base budget in developing the 1997-99 budget. Mr. Spitler expressed appreciation for the work of the subcommittee but noted there was a need to study the method of funding education in general. He suggested the University and Community College System was being improved at the expense of K-12 education. He inquired whether the subcommittee had considered a study to determine how best to fund K-12 education. He suggested if the state was to continue having outstanding higher education systems, it would also have to realize higher education students were the product of the K-12 system. Mr. Spitler asked if the teachers who received scholarships to UNR and UNLV were remaining in Nevada to teach. Ms. Jeanne Botts, Program Analyst, Fiscal Division, responded to her knowledge there had been no data collected on whether teachers remained in Nevada. Mr. Spitler suggested the scholarship program should help teachers who would be staying in Nevada. Mr. Spitler asked how the Family Resource Centers would work. Mrs. Evans stated testimony heard in committee from the Governor's office reflected a feeling that there was a need to work with and support the entire family system of troubled youngsters. Mr. Spitler questioned what the role of teachers would be in Family Resource Centers. Mrs. Evans stated she could not answer the question. Mr. Spitler said he asked the question because greater demands were being made on teachers without providing them with adequate resources. While he supported the concept of Family Resource Centers, he was concerned that this program would overburden teachers. Mrs. Evans said it was her understanding the additional funding would pay for additional staff and services rather than placing more work on existing teachers. Mr. Hettrick noted testimony heard on this issue had been very positive. It was not intended teachers would be integrally involved in this program. It was intended to serve as a resource center for teachers to direct students and their families to additional services. Testimony also indicated the program would not require ongoing support. Mrs. Chowning stated more funding should be provided for teacher training and growth related costs. She noted students were suffering and would continue to suffer because supplies were not available. She reiterated the commitment of the joint subcommittee members to look for other possible resources for education. Ms. Giunchigliani suggested issuing a letter of intent regarding a survey of scholarship recipients. She also suggested the formula for per pupil funding should be reevaluated. Chairman Marvel asked Ms. Giunchigliani to draft an appropriate bill. Mrs. Evans noted there were a number of education related issues which remained to be resolved and it was appropriate and timely for the Legislature to look at those issues. She supported Ms. Giunchigliani's suggestion. MR. DINI MOVED TO ADOPT THE SUBCOMMITTEE RECOMMENDATIONS, INCLUDING ISSUANCE OF A LETTER OF INTENT REGARDING A SURVEY OF SCHOLARSHIP RECIPIENTS. MRS. CHOWNING SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. BUDGETS CLOSED. * * * * * Chairman Marvel commended the subcommittee members and fiscal staff for their efforts. EMPLOYMENT SECURITY SPECIAL FUND - PAGE 1433 Mr. Stevens noted no action had been taken on this account at the time of the subcommittee recommendations. There was some question whether or not to retain outside legal representation at a cost of $100,143 in each year of the biennium. The Governor initially recommended that private legal counsel not be retained. Subsequently, the Budget Division indicated the funding should be included in this account. The subcommittee denied the agency's proposal to retain outside counsel. MR. SPITLER MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS, RETAINING FUNDING FOR OUTSIDE LEGAL COUNSEL. Mr. Spitler noted the agency's argument for outside legal representation had been compelling. MRS. EVANS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. BUDGET CLOSED. * * * * * BUREAU OF ALCOHOLISM AND DRUG REHABILITATION - PAGE 1451 Mr. Stevens stated this budget had been closed in the subcommittee but it was not included in the subcommittee's recommendations to the full committee. The subcommittee recommended increasing aids and grants to treatment providers by $650,000 in General Fund revenue in each year of the biennium to reduce the waiting list of clients seeking services. Ms. Tiffany noted this issue was not approved unanimously in the subcommittee. She indicated she would be voting against this recommendation because it was unknown how the money would be spent and if the program was successful. She suggested if the funding was approved, a letter of intent be issued requiring the agency to report how much waiting lists were reduced as a result of this allocation and what programs utilized the funding. Mr. Brian Burke, Program Analyst, Fiscal Division, noted the agency had indicated the additional funding would allow it to reduce the waiting list by approximately 685 clients. The current waiting list was nearly 2,000 clients. Ms. Giunchigliani pointed out funding to reduce case backlogs had been included in several budget accounts. This funding simply represented additional revenue to operate the program; it would not be funding any new programs. She noted a case had been made in subcommittee hearings for the need for this funding. She also pointed out this program was an integral component of the Governor's proposed crime policy. Mrs. Brower stated she was convinced there was a need for this funding and that it would be spent on programs already in progress. She agreed it was important to issue a letter of intent directing that the money be accounted for. Mr. Close asked how much of the funding would be spent on juvenile drug abuse. Mr. Burke stated that issue was not specifically addressed. Currently juveniles represented approximately 20 percent of client caseload. Mr. Close expressed the opinion prevention should be focused on clients with the greatest potential for rehabilitation, i.e., juveniles. Mr. Allard noted he was opposed to the increased funding in the subcommittee recommendation because there was no structure to the program and no empirical data had been presented indicating drug treatment helps reduce crime. Therefore, it is impossible to determine the return on investment. He noted he would continue to vote against this recommendation. Mrs. Chowning stated research indicated recidivism rates were reduced from 80 percent to 20 percent when alcohol and drug rehabilitation was instituted. She expressed support for the additional funding. She agreed a letter of intent should be issued. Ms. Giunchigliani noted no funding had ever been provided in this account to track program results. She pointed out this was not a new program and it had been working successfully. The purpose of the additional funding was simply to reduce the waiting list. She said she would not support requiring the agency to direct a specific percentage of services to juveniles since the committee did not know what an appropriate percentage would be. She suggested the letter of intent simply recommend that as much of the funding as possible be directed to juvenile clients. Mr. Dini suggested the committee members make field visits to see the program in operation. He attested to the success of the program. MS. GIUNCHIGLIANI MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH SUBCOMMITTEE RECOMMENDATIONS, AND TO ISSUE A LETTER OF INTENT DIRECTING THE AGENCY TO TRACK EXPENDITURES RELATED TO CASELOAD REDUCTION. MRS. BROWER SECONDED THE MOTION. THE MOTION CARRIED. MR. ALLARD, MR. CLOSE, MR. SPITLER, AND MS. TIFFANY WERE OPPOSED. BUDGET CLOSED. * * * * * COLORADO RIVER COMMISSION - 1861 Mr. Stevens noted legislation was pending regarding the Colorado River Commission. Fiscal staff recommended closing the budget accounts. If later adjustments were required, they could be handled by the Interim Finance Committee. He noted there were no state funds in this account. Chairman Marvel recommended the committee take action on the Colorado River Commission budget accounts. Mr. Dini noted the pending legislation was very significant, and the committee may be acting prematurely in closing the budget accounts. MR. HETTRICK MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS. MR. ARBERRY SECONDED THE MOTION. THE MOTION CARRIED. MR. DINI WAS OPPOSED. BUDGET CLOSED. * * * * * Mr. Spitler asked if a two-thirds vote was required to reopen a budget. Chairman Marvel stated the committee rules required a two-thirds vote to reopen a budget. Chairman Marvel asked if there were any issues of major significance associated with these budget accounts. Ms. Botts stated the pending legislation was the most significant issue. The measure would provide for the Southern Nevada Water System to be transferred to the Southern Nevada Water Authority, effective January 1, 1996. The commission would have to operate under these budgets until then, at which time it would have to present revised budgets to the Interim Finance Committee. CBC FEDERAL PUMPING AND TRANSMISSION FACILITIES - PAGE 1867 CBC RESEARCH AND DEVELOPMENT - PAGE 1869 POWER MARKETING FUND - PAGE 1873 FORT MOHAVE DEVELOPMENT FUND - PAGE 1875 ALFRED MERRITT SMITH WATER TREATMENT PLANT - PAGE 1877 MS. TIFFANY MOVED TO CLOSE THE REMAINING COLORADO RIVER COMMISSION BUDGET ACCOUNTS IN ACCORDANCE WITH STAFF RECOMMENDATIONS. MR. ARBERRY SECONDED THE MOTION. THE MOTION CARRIED. MR. DINI WAS OPPOSED. BUDGETS CLOSED. * * * * * BOARD OF CONTRACTORS - PAGE 2081 Mr. Stevens indicated there were no staff recommendations for this account. Mr. Allard disclosed he is a contractor but this vote would not affect him. Therefore, he would vote on this budget. MR. ALLARD MOVED TO CLOSE THE BUDGET AS RECOMMENDED BY THE GOVERNOR. MS. GIUNCHIGLIANI SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. BUDGET CLOSED. * * * * * BOARD OF PSYCHOLOGICAL EXAMINERS - PAGE 2143 Ms. Giunchigliani noted legislation was pending which would authorize substantial fee increases in this budget. She suggested closing this account, keeping in mind the fee structure may need to be reviewed at a later time. Mr. Stevens stated he had no comments on this budget account. MS. GIUNCHIGLIANI MOVED TO CLOSE THE BUDGET AS RECOMMENDED BY THE GOVERNOR. MS. TIFFANY SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. BUDGET CLOSED. * * * * * Mr. Stevens stated the committee would be considering the State Industrial Insurance System (SIIS) budgets soon. He indicated staff required guidance from the committee on those budgets. Mr. Hettrick noted the SIIS legislation was still pending. He stated he was not aware of anything about that legislation which required delaying closure of the budgets. Ms. Giunchigliani suggested the Attorney General workers' compensation fraud unit be reviewed to determine whether staffing could be reduced. There being no further business, the meeting adjourned at 10:55 a.m. RESPECTFULLY SUBMITTED: Dale Gray, Committee Secretary Assembly Committee on Ways and Means June 7, 1995 Page