MINUTES OF THE JOINT MEETING OF ASSEMBLY COMMITTEE ON WAYS AND MEANS AND SENATE COMMITTEE ON FINANCE Sixty-eighth Session June 16, 1995 The joint meeting of the Assembly Committee on Ways and Means and the Senate Committee on Finance was called to order at 8:00 a.m., on Friday, June 16, 1995, Chairman Morse Arberry presiding in Room 119 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. SENATE COMMITTEE MEMBERS PRESENT: Senator William J. Raggio, Chairman Senator Raymond D. Rawson, Vice Chairman Senator Lawrence E. Jacobsen Senator William R. O'Donnell Senator Dean A. Rhoads Senator Bernice Mathews Senator Bob Coffin ASSEMBLY COMMITTEE MEMBERS PRESENT: Mr. Morse Arberry, Jr., Co-Chairman Mr. John W. Marvel, Co-chairman Mrs. Jan Evans, Vice Chairman Mrs. 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: Dan Miles, Senate Fiscal Analyst Mark Stevens, Assembly Fiscal Analyst Robert Guernsey, Principal Deputy Fiscal Analyst Gary Ghiggeri, Principal Deputy Fiscal Analyst Yhvona Martin, Committee Secretary Dee Crawford, Committee Secretary Copies of the 1995 Legislature Joint Committee Budget Action Difference Closing Report, dated June 14, 1995, were distributed to the committee members and a copy of which is included in the meeting minutes as Exhibit B. Chairman Arberry opened the meeting and asked Mr. Stevens to review the first budget listed on the closing sheets (Exhibit B). LIEUTENANT GOVERNOR - PAGE 19 Mr. Stevens apprised the committee the Assembly Committee on Ways and Means had closed the Lieutenant Governor's budget by providing an increase in General Fund dollars for equipment, which was requested by the Lieutenant Governor. It was Senator Raggio's recollection that over the years the legislature had attempted to expand the role of the Lieutenant Governor by involving that position in the critical areas of economic development and tourism. Since Lieutenant Governor Lonnie Hammargren has expressed a desire to play a more dominate role in this respect, Senator Raggio said the Senate Committee on Finance had agreed to fund the Education Outreach Program. Ms. Giunchigliani said she was prepared to make a motion which would provide one-half of the funding being proposed by the Senate Committee on Finance for the Education Outreach Program. Speaking in favor of the Education Outreach Program, it was Mrs. Chowning's belief this funding would not only provide an excellent outreach between business and education, but would assist the local school districts in concert with the occupational education programs as well. MS. GIUNCHIGLIANI MOVED TO REDUCE IN HALF THE FUNDING FOR THE EDUCATION OUTREACH PROGRAM AND THEN TO CONCUR WITH THE ACTIONS OF THE SENATE COMMITTEE ON FINANCE. MR. DINI SECONDED THE MOTION. THE MOTION CARRIED WITH MR. ALLARD, MR. FETTIC AND MS. TIFFANY VOTING NO. * * * * * * * * * * SENATOR COFFIN MOVED TO CONCUR WITH THE ACTIONS OF THE ASSEMBLY COMMITTEE ON WAYS AND MEANS. SENATOR JACOBSEN SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY BY VOICE VOTE. BUDGET CLOSED. * * * * * * * * * * LEGISLATIVE COUNSEL BUREAU - PAGE 157 Mr. Stevens noted the differences between the closings of the two money committees relates to Senate Bill 224, which involves the implementation of a Legislative Budget Office and a Federal Mandates Analyst. Senator Raggio indicated the Senate would be referring S.B. 224 to the Assembly today, along with Senator Coffin's amendment, which designates the membership of the Interim Finance Committee as the Budget Subcommittee. Chairman Arberry suggested holding LCB's budget until the Assembly Committee on Ways and Means has had the opportunity of hearing S.B. 224. Senator Raggio expressed concern about delaying the completion of the budget bill. Mr. Stevens said he did not believe holding LCB's budget would delay the closing process because this budget did not have to go through the executive Budget Division's computer system. In providing a brief overview, Senator Raggio pointed out S.B. 224 incorporates the recommendations that were made by the Senate Concurrent Resolution 46 (1993 Legislative Session) interim subcommittee, with one exception, instead of a separate division within the LCB, the Fiscal Analysis Division will be renamed the Legislative Budget Office. The S.C.R. 46 interim subcommittee was chaired by Assemblywoman Jan Evans. Three new professional positions, plus an analyst who will deal primarily with the cost of federal mandates, will be added to the Legislative Budget Office. In addition, the legislative Budget Subcommittee will commence having meetings with state agencies regarding biennial budget requests before the election occurs, with the end product being a legislative budget in similar format to that of the Executive Budget. Mr. Close wanted to know whether the development of a legislative budget would facilitate the closure of the agency budgets. Senator Raggio apprised the committee the legislature would not have to wait until the legislative session begins to start dealing with major budget issues. In addition, when developing guidelines for a Legislative Budget Office, the S.C.R. 46 Subcommittee emulated the actions taken in more progressive legislatures throughout the country so the Legislature's budget will not be perceived as a "rubber stamp" for the Executive Budget. Also, there should be an improvement in the review of the Executive Budget during the legislative session which should reduce the length of the session. Senator Raggio also felt the legislature would have time to prepare a meaningful budget and not just react to the Executive Budget as it has done in the past. SCHOOL OF MEDICAL SCIENCES - PAGE 305 Mr. Stevens apprised the committee the only difference in this budget was the addition of $1 million in FY 1996 and $2 million in FY 1997 by the Senate Committee on Finance for the Residency Program. Senator Rawson expressed concern that two programs would be dismantled if the Residency Program were not adequately funded. One of the programs, the Geriatrics Education Center, had been funded at $300,000 per year. During discussions with the Center, Senator Rawson said he had been advised the Center would need $120,000 over the biennium; otherwise, it would have to layoff the Director and the Assistant to the Director. Regarding the second program, the Southern Nevada Area Health Education Center (AHEC) Program, Senator Rawson recommended keeping the Director position which will cost $150,000 in the second year of the biennium. To respond to Senator Rawson's comments, Mr. Marvel said the Assembly Committee on Ways and Means had not yet closed the School of Medical Sciences' budget. Mr. Marvel suggested states might have more than three years to phase into the Residency Program because many of the major medical schools were resisting the transition from the 50 percent hospital to the private sector. Mr. Marvel agreed with Senator Rawson that eliminating the Geriatrics Program and the Southern Nevada AHEC Program would constitute a radical move because he thought the two programs had been a valuable educational tool for the doctors and nurses in Nevada. Mr. Dini asked Senator Rawson to describe what would happen to the two programs if the Residency Program were not funded. Senator Rawson said a decision had already been made for the University Medical School to transition to a Medicaid managed care program. Currently, the Medical School is serving somewhere between 17,000 and 20,000 patients annually; however, there is no fee to fund the education programs under Medicaid managed care. It was Senator Rawson's opinion that some of the residency programs could be closed down during the course of the biennium, requiring students to go elsewhere to finish their medical training. If this should occur, the Medical School would lose its accreditation. Mr. Marvel recounted that he and Co-Speaker Hettrick had met last week with Dr. Robert Daugherty, Dean of the University School of Medicine, and it was his understanding the funding for the Residential Programs was not critical during the biennium because a three-year phase-in period was expected. Mr. Hettrick confirmed Mr. Marvel's understanding and also said he would agree with Chairman Arberry's previous comments that the Assembly Committee on Ways and Means closed the Medical School budget without being aware of a funding need for the Residency Program. It was Ms. Giunchigliani's position the Assembly Committee on Ways and Means had closed the budget for the Medical School based upon available information. In addition, she thought the Residency Program should be self sustaining and not continually enhanced by General Fund dollars. She also reminded the committee that when the grant money goes away the program should go away, yet two bills had been introduced this session to supplement different programs in the School of Medicine. Ms. Giunchigliani suggested these programs need to be examined over the biennium to determine whether they are working satisfactory and whether the legislature should continue providing funding for them. Senator Rawson suggested putting the budget to a vote because he did not believe anything would be resolved by further discussion. After considerable discussion, Senator Coffin noted all seven members of the Committee on Senate Finance had supported the $3 million appropriation over the biennium for the Residency Program. In order to keep the Geriatrics and Southern Nevada AHEC Programs alive, Senator Coffin said he would strongly recommend the Assembly Committee on Ways and Means compromise with the Senate Committee on Finance by approving an appropriation of $270,000 for the biennium. SENATOR RAWSON MOVED TO CLOSE THE SCHOOL OF MEDICAL SCIENCES BUDGET BY ELIMINATING AN APPROPRIATION FOR $1,000,000 FOR FY 1996 AND $2,000,000 FOR FY 1997 FOR THE RESIDENCY PROGRAM, AND INCLUDING $120,000 IN FY 1996 AND $150,000 IN FY 1997 FOR THE GERIATRICS EDUCATION PROGRAM AND THE SOUTHERN NEVADA AHEC PROGRAM. Before voting on the motion, Senator Raggio said he wished to go on record as stating that the University Medical School was not seeking additional funding. Senator Raggio reminded the two money committees that an agreement had been reached a number of years ago to utilize the Residency Program to help deal with the state's spiraling Medicaid costs, especially in southern Nevada. Senator Raggio called for a vote on the question. SENATOR COFFIN SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. BUDGET CLOSED. * * * * * ** * * * MR. MARVEL MOVED TO CONCUR WITH THE RECOMMENDATIONS OF THE SENATE COMMITTEE ON FINANCE. MR. HETTRICK SECONDED THE MOTION. THE MOTION CARRIED WITH MS. GIUNCHIGLIANI, MS. TIFFANY AND MR. SPITLER VOTING NO AND MRS. EVANS ABSTAINING. BUDGET CLOSED. * * * * * * * * * * ADVOCATE FOR INSURANCE CUSTOMERS - PAGE 731 Mr. Stevens advised the Assembly Committee on Ways and Means had closed this budget reinstating the Advocate for Insurance Customers Program by funding it through the Verification of Insurance budget account 4731. Mr. Miles indicated the Senate Committee on Finance had taken no action to restore the Advocate for Insurance Customers budget. MS. TIFFANY MOVED TO CONCUR WITH THE RECOMMENDATIONS OF THE COMMITTEE ON SENATE FINANCE. MR. MARVEL SECONDED THE MOTION. As Co-Chairman of the Assembly Committee on General Government, Ms. Giunchigliani reminded the committee that the area of automobile insurance received more complaints than any other; thus, she thought it would be remiss to eliminate a consumer advocate for those individuals. Ms. Giunchigliani recalled that a message had been sent to the Director of the Department of Business and Industry that a true advocate was needed in this position. If this budget is not funded, Ms. Giunchigliani said the consumers would not have access to anyone to advocate for them regarding the area of automobile insurance and automotive repairs, among others. No General Fund dollars are required to fund this budget. Rather, the program will be funded through DMV. It was Ms. Giunchigliani's belief the committee would be sending the wrong message to the consumers of Nevada if it were to deny funding for an automotive advocate. Since he agreed with Ms. Giunchigliani on the importance of an automotive consumer advocate, Mr. Close said he would be interested in learning why the Senate Committee on Finance had chosen not to fund the budget for the Advocate for Insurance Customers. After considering the budget at length and because no performance indicators were provided, Senator Raggio said the Senate Committee on Finance had concurred with the Governor's original recommendation that the position was not necessary. Ms. Giunchigliani said the Assembly Committee on General Government had received the same information as the Governor. She said, however, although the position was first crafted in 1991 to deal primarily with insurance rates, the Director of Business and Industry had since agreed to rewrite the job description so that it would become a true advocate for automotive issues to address public concern. THE MOTION CARRIED, WITH MS. GIUNCHIGLIANI, MRS. CHOWNING, MRS. EVANS, MR. CLOSE, MR. PRICE AND MR. SPITLER VOTING NO. PURCHASE OF SOCIAL SERVICES - PAGE 997 Senator Raggio suggested there was room for compromise in this budget. Senator Raggio said the Committee on Senate Finance would concur with the Assembly Committee on Ways and Means, providing $131,743 in FY 1996 and $115,202 in FY 1997 in the Adjust Transfer to Non-State Agencies Category. In addition, $50,000 will be transferred from the Reserve Category into the Adjust Transfer to Non-State Agencies Category in FY 1996, and any unexpended funding in this category, up to that level, will be utilized for that purpose. Senator Rawson directed the committee's attention to the top line on page 4 (Exhibit B), which indicates $194,000 was Balanced Forward in FY 1995. To respond to a question from Senator Raggio, Mr. Stevens noted the Fiscal Analysis Division staff had been advised by the Department of Human Resources of the availability of $61,000 that had not been included in budget closings which could be augmented in the first year of the biennium and included in the Non-State Agencies Category. Mr. Stevens also indicated additional Title XX dollars have been available in the past either through additional federal funds due to population increases or because all funds were not expended each fiscal year. In responding to Ms. Giunchigliani's inquiries, Mr. Stevens said that if the Senate Committee on Finance were to add $50,000 to $81,743 in FY 1996 in the Non- State Agencies Category, it would bring the Senate closing in line with the Assembly Committee on Ways and Means. An additional $61,000 could be allocated to the first year of the biennium, increasing the $81,743 to $142,743. If the committee so desires, any additional funding received either through additional federal fund allocations or unexpended moneys potentially could be directed to the Non-State Agencies Category, but not to exceed $500,000 over the biennium. In reviewing the entire Title XX issue, Ms. Giunchigliani said the Assembly Committee on Ways and Means discovered that the legislature had been supplementing dollars which should have been going to direct delivery. Because there are agencies that are operating marginally at the present time, Ms. Giunchigliani expressed concern about funding for the second year of the biennium. To respond to Ms. Giunchigliani's concerns, Senator Rawson said he thought additional funding would be available in the second year of the biennium because of the demonstrated growth in Nevada. Senator Rawson also noted there was a strong sense on the Senate side that General Fund dollars should not be used as substitute dollars. Mrs. Evans said it would be her hope the Senate Committee on Finance might consider joining the Assembly Committee on Ways and Means in a Letter of Intent asking state agencies to look at an incremental mechanism over several biennia to bring the level of Title XX funding, which is currently about 3.8 percent, up to 10 percent. The 1997 Legislature would then be able to review the plan and make a determination on how best to incrementally reach that 10 percent over several biennia. Senator Raggio thought the Senate Committee on Finance would be agreeable to Mrs. Evans' proposal. Since he had not had the opportunity to speak to counsel regarding a possible conflict of interest on this budget, Mr. Hettrick said he would be abstaining from voting. After expressing his appreciation to the Senate Committee on Finance for having recognized the need for a larger percentage of funding for community based organizations, Mr. Spitler said he would support this funding request as long as the Welfare Division is required to submit work program changes to the Interim Finance Committee for a public hearing. Mr. Spitler said he had been disappointed in the past because more representatives from community based organizations had not testified before the Interim Finance Committee to demonstrate a public need for the distribution of those funds. SENATOR RAWSON MOVED TO APPROVE THE TRANSFER OF $50,000 FROM THE RESERVE CATEGORY TO THE ADJUST TRANSFER TO NON- STATE AGENCIES CATEGORY, TRANSFER UNEXPENDED TITLE XX FUNDING TO THE NON-STATE AGENCIES CATEGORY UP TO A TOTAL AMOUNT OF $253,055, WHICH IS THE DIFFERENTIAL TO ACCOMPLISH THE ULTIMATE GOAL OF $500,000, AND TO INITIATE A LETTER OF INTENT ASKING STATE AGENCIES TO SUBMIT A PLAN TO THE 1997 LEGISLATURE ON HOW BEST TO INCREMENTALLY REACH THE GOAL OF 10 PERCENT TITLE XX FUNDING OVER SEVERAL BIENNIA. SENATOR COFFIN SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY BY VOICE VOTE WITH SENATOR RHOADS BEING ABSENT. BUDGET CLOSED * * * * * * * * * * MR. MARVEL MOVED TO CONCUR WITH THE SENATE COMMITTEE ON FINANCE. MS. GIUNCHIGLIANI SECONDED THE MOTION. THE MOTION PASSED BY VOICE VOTE WITH MR. HETTRICK ABSTAINING. BUDGET CLOSED. * * * * * * * * * * RURAL CLINICS - PAGE 1055 Mr. Stevens noted the only difference between the two committees was the Assembly's addition of funding for the Silver Springs office in April of 1996. While he agreed the opening of the Silver Springs office was necessary, Senator Raggio noted rural clinics ought to be considered in other remote areas in the state, in particular, Mesquite. It was Senator Raggio's understanding a study was going to be undertaken to consider the necessity for rural clinics in some of the other remote areas. Mr. Stevens recalled the Assembly Committee on Ways and Means had closed this budget with a Letter of Intent to Rural Clinics requesting a review of services in rural areas particularly in southern Nevada that may not be receiving services at this time for potential inclusion in the next Executive Budget. Mr. Allard submitted that if there was a need for a rural clinic in Silver Springs, there was a similar need in Mesquite, because Mesquite was a farther distance from medical care than Silver Springs and was growing in a geometric rate. Mr. Allard said he intended to meet with Dr. Carlos Brandenberg, Administrator, Mental Hygiene and Mental Retardation Division, in the interim in order to discuss the feasibility of devising a plan to locate a rural clinic at Mesquite which could be presented to the 1997 Legislature. Mr. Price said he wished to lend his support to Mr. Allard's efforts to locate a rural clinic at Mesquite. SENATOR O'DONNELL MOVED TO CONCUR WITH THE ASSEMBLY COMMITTEE ON WAYS AND MEANS BY ADDING THE FUNDING IN DECISION MODULE 130 FOR THE SILVER SPRINGS OFFICE AND INITIATE A LETTER OF INTENT TO REQUIRE THE MENTAL HYGIENE AND MENTAL RETARDATION DIVISION TO STUDY THE NEEDS OF MESQUITE AND OTHER RURAL AREAS FOR RURAL CLINICS. SENATOR JACOBSEN SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY BY VOICE VOTE. BUDGET CLOSED. * * * * * * * * * * CHILDREN'S HEALTH SERVICES - PAGE 1113 The only difference between the closings between the two money committees, Mr. Stevens noted, is the OB Access Project--Community Health Centers in Southern Nevada (CHCSN) under Base Budget. Chairman Arberry said the Assembly Committee on Ways and Means had received a letter from CHCSN requesting $50,000 for an OB Access Project and he hoped the Senate Committee on Finance would agree to fund the program. Senator Raggio questioned structuring the funding in the Children's Health Services' budget, but suggested the Senate Committee on Finance would support placing the funding in a separate appropriation bill. SENATOR RAWSON MOVED TO CONCUR WITH THE ASSEMBLY WAYS AND MEANS COMMITTEE WITH THE EXCEPTION THE SENATE COMMITTEE ON FINANCE HAS MADE THE COMMITMENT TO SUPPORT A SEPARATE APPROPRIATION BILL IN THE AMOUNT OF $50,000 TO FUND AN OB ACCESS PROJECT AT CHCSN. SENATOR O'DONNELL SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY BY VOICE VOTE. BUDGET CLOSED * * * * * * * * * * MR. SPITLER MOVED TO CONCUR WITH THE SENATE COMMITTEE ON FINANCE. MR. HETTRICK SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY BY VOICE VOTE. BUDGET CLOSED. * * * * * * * * * * DMV AUTOMATION - PAGE 1751 Mr. Stevens cited the difference between the two money committees was in the Decision Module 200 area. Although the Assembly Committee on Ways and Means approved $84,000 in FY 1996 and $771,643 in FY 1997 for a document imager and computer equipment upgrades, Mr. Stevens said the committee felt the money should be reserved until the Department of Motor Vehicles and Public Safety (DMV&PS) has completed the Business Process Re-engineering (BPR) and submitted a plan on how those funds would be utilized, at which time DMV&PS can approach the Interim Finance Committee. SENATOR O'DONNELL MOVED TO CONCUR WITH THE ASSEMBLY COMMITTEE ON WAYS AND MEANS. SENATOR RAWSON SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY BY VOICE VOTE. BUDGET CLOSED. * * * * * * * * * * BICYCLE SAFETY PROGRAM - PAGE 1809 Mr. Stevens directed attention to the line items following the last double line on the Difference Closing Report (Exhibit B). The difference between the Senate and Assembly closings in this budget involves the expenses related to the position funded by this budget. The Assembly Committee on Ways and Means eliminated the position and placed the funding into grants for local agencies; however, the Senate Committee on Finance retained the position. Mr. Spitler recalled that the Assembly Subcommittee on Public Safety, Natural Resources and Transportation had spent days deliberating on this budget. The central issue was the expenditure of over $12,000 in training over the biennium for one position. Because the program has had considerable success, Mr. Spitler said he was prepared to support the Senate's closing if a sunset could be included in the motion requiring the program to be re-evaluated in depth during the 1997 Legislature. SENATOR JACOBSEN MOVED TO CLOSE THE BICYCLE SAFETY PROGRAM AS RECOMMENDED BY THE SENATE COMMITTEE ON FINANCE WITH THE PROVISO THE PROGRAM BE RE-EVALUATED IN DEPTH IN 1977. SENATOR RAWSON SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY BY VOICE VOTE. BUDGET CLOSED. * * * * * * * * * * MR. SPITLER MOVED TO CONCUR WITH THE SENATE COMMITTEE ON FINANCE. MR. FETTIC SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY BY VOICE VOTE. BUDGET CLOSED. * * * * * * * * * * HIGH LEVEL NUCLEAR WASTE - PAGE 1893 The Assembly Committee on Ways and Means has closed this budget based on the figures listed on page 8 of the Difference Closing Report (Exhibit B), Mr. Stevens advised. Since Assembly Bill 130 is currently pending in the Senate Natural Resources Committee, it was Senator Raggio's opinion that there was now basis for agreement between the two money committees on this budget. The Senate Committee on Finance is prepared to concur with the request to transfer the High Level Nuclear Waste Agency to the Governor's Office and A.B. 130 will evenly distribute the membership on the legislative committee and will require the Agency to report to the legislative committee. In addition, the funding listed on page 8 (Exhibit B) will be authorized in A.B. 130. To respond to an inquiry from Mr. Dini, Senator Raggio said A.B. 130 would require the Agency to provide any information requested by the legislative oversight committee to ameliorate the perception that there has been a lack of communication. MR. MARVEL MOVED TO CONCUR WITH THE SENATE COMMITTEE ON FINANCE AND TO CLOSE THE HIGH LEVEL NUCLEAR WASTE BUDGET. MS. TIFFANY SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY BY VOICE VOTE. BUDGET CLOSED. * * * * * * * * * * SENATOR RAWSON MOVED TO RECOMMEND THE AMENDMENT TO A.B. 130 AS PREVIOUSLY PROPOSED BY SENATOR RAGGIO AND TO AUTHORIZE THE EXPENDITURES LISTED ON PAGE 8 (EXHIBIT B). SENATOR COFFIN SECONDED THE MOTION. THE MOTION CARRIED BY VOICE VOTE. BUDGET CLOSED. * * * * * * * * * * FORESTRY HONOR CAMPS - PAGE 1943 Mr. Stevens directed attention to page 10 of the Difference Closing Report (Exhibit B) which displays the major difference which involves adding 10 crew supervisors. Mr. Stevens said he would be happy to review a letter from the Nevada Division of Forestry (NDF), which proposes a compromise in this particular area, if the committees so desires. As the primary sponsor of this program many years ago, Senator Jacobsen said he would admit he was overprotective of the Forestry Honor Camp Program because he thought it was one of the best programs within the prison system today. He said he would agree with the compromise being proposed by NDF, that if additional Assistant Camp Supervisors were needed, approval could be sought from the Interim Finance Committee. He said, however, if a prison crew were in a fire mode it would not be possible to ask Interim Finance Committee for an Assistant Camp Supervisor if one was needed. Over the last five years, Senator Jacobsen noted the Stewart Honor Camp had earned $645,000; Silver Springs Honor Camp, which houses women and which has only been operational for three years, had earned $183,000 and Indian Springs, in southern Nevada, had earned $131,000. Although Jean Honor Camp in southern Nevada is being converted to a women's facility, Senator Jacobsen noted that the facility had operated 54 programs with six crews in one year. While acknowledging the Honor Camp Program has been viewed as primarily assisting the rural citizens of the state, Senator Jacobsen reminded the committee members that 70 percent of the prisoners come out of Clark County. If the Honor Camp Program were to ever be abolished, it would affect the budgets of the Nevada Department of Transportation (NDOT), Nevada State Parks, Wildlife Division, Buildings and Grounds Division, the two national cemeteries, senior citizens and many others. To clarify some of the concerns expressed by committee members, Chairman Arberry asked Mr. Stevens to review for the record the compromise being proposed by NDF and a copy of which is included in the meeting minutes as (Exhibit C). Mr. Stevens outlined the proposal being offered by NDF as follows: (1) Crew Supervisors will not be added to any of the 10 conservation camps until population figures have been verified and a determination made on the financial impact this may or may not have on the revenue the camp produces; (2) NDF will assign a crew to the Assistant Camp Supervisor as a daily responsibility which, in may cases, may involve an in-camp crew at a particular camp; however, this would not preclude the Assistant Camp Supervisor from actually taking a crew into the field; and (3) Legislature will provide a Letter of Intent authorizing NDF to approach the Interim Finance Committee, as necessary, for additional positions and accompanying funding should the population situation in the conservation camps drastically change and a project revenue potential is adversely impacted. NDF to provide appropriate documentation and statistics to substantiate the need for additional positions. After listening to NDF's proposal, Mr. Allard said he would be supporting the funding request. Under the compromise, Ms. Giunchigliani wanted to know whether NDF would be required to provide documentation as to the necessity for having a full crew before approaching the Interim Finance Committee for additional positions. It was Mr. Stevens interpretation that NDF is not assuming all of the conservation camps will be filled and whether there will be a sufficient number of inmates physically able to work 100 percent of the time; thus, it would expect to provide justification to the Interim Finance Committee for additional positions. Ms. Giunchigliani recalled that during the previous joint closings, the Director of Prisons had testified there was going to be more of a focus on reclassifying inmates who are eligible for conservation camps so the camps were not filled with the "sick, lame and lazy." She also indicated that consideration would be given to making one camp for the "sick, lame and lazy" so the other camps produce revenue. Although he shared Ms. Giunchigliani's concern, Chairman Arberry said he could not buy the idea of having one camp for "people to hang out." Senator Raggio thought it would be inadvisable for the committees to place certain criteria into a Letter of Intent. Ms. Giunchigliani said she was not recommending criteria for a Letter of Intent, but rather was simply recalling that it had been agreed upon during committee hearings the Department of Prisons would submit reports on the types of classifications that would be eligible for the conservation camps prior to requesting additional personnel. Mr. Spitler expressed his satisfaction that the Department of Prisons had formed a committee to evaluate the classifications for the conservation camps. MR. ALLARD MOVED TO CONCUR WITH THE PROPOSAL OUTLINED BY THE FISCAL ANALYSIS DIVISION STAFF. MRS. BROWER SECONDED THE MOTION. THE MOTION CARRIED BY VOICE VOTE WITH MS. GIUNCHIGLIANI VOTING NO. BUDGET CLOSED. * * * * * * * * * * SENATOR JACOBSEN MOVED TO ADJUST THE CLOSING ACTIONS OF THE SENATE COMMITTEE ON FINANCE TO CONCUR WITH THE ASSEMBLY COMMITTEE ON WAYS AND MEANS. SENATOR RAWSON SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY BY VOICE VOTE. BUDGET CLOSED. * * * * * * * * * * ADMINISTRATION - STATE PARKS - PAGE 1979 Mr. Stevens noted the differences between the two committees were in two areas: (1) Decision Unit E-451, add a nine-month seasonal Park Aide for the Morman Fort State Park and (2) Decision Unit E-452, an additional Park Ranger involving the boat ramp at Washoe Lake State Park. Since closing this budget, Mr. Marvel recalled that the Assembly Committee on Ways and Means had received additional information from the Division of Parks and he recommended concurring with the Senate. MR. MARVEL MOVED TO CONCUR WITH THE SENATE COMMITTEE ON FINANCE. MR. HETTRICK SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY BY VOICE VOTE WITH MS. GIUNCHIGLIANI BEING ABSENT. BUDGET CLOSED. * * * * * * * * * * PUBLIC EMPLOYEES RETIREMENT SYSTEM - PAGE 2043 Mr. Stevens cited three differences between the closings of the two money committees. The Assembly Committee on Ways and Means closed the budget with funding for one out-of-state trip for PERS members with the Senate Committee on Finance providing funding for two out-of-state trips. In addition, on Decision Unit E-800, the Assembly Committee on Ways and Means has reduced the Operations Officer and Investment Analyst to a 4 percent and 3 percent pay increase over the biennium. While realizing that the PERS Board recommends and the legislative Interim Retirement Committee approves the ultimate salaries for those two positions, the Assembly Committee on Ways and Means felt it was appropriate to indicate its recommendation of a 4 percent and 3 percent increase. Mr. Miles noted there were three lines items which describe the differences between the two closings which are as follows: additional Board and Commission pay, out-of-state travel and the increase in dues and registration. To respond to Senator Rawson's question, Senator Raggio pointed out that since the legislative Interim Retirement Committee sets the salaries for the PERS, the money committees can only recommend salaries. SENATOR RAWSON MOVED TO CONCUR WITH THE ASSEMBLY COMMITTEE ON WAYS AND MEANS. SENATOR RHOADS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY BY VOICE VOTE. BUDGET CLOSED. * * * * * * * * * * STATE INDUSTRIAL INSURANCE SYSTEM - PAGE 2049 After directing attention to page 13 of the Difference Closing Report (Exhibit B), Mr. Stevens provided a copy of a handout entitled "State Industrial Insurance System Budget Closings," a copy of which is included in the meeting minutes as (Exhibit D). It was Mr. Stevens' understanding that Assembly Co-Speaker Hettrick, who is familiar with the pending SIIS bills, wished to discuss the proposed changes based on a compromise that was reached on the SIIS legislation. The numbers listed in Exhibit D would replace those numbers pertaining to Decision Unit E-276 listed on the closing report. According to Mr. Stevens, the major difference between the two sets of figures is a $4 million change in each year of the biennium in the operating line item of Decision Unit E-276, resulting in a negative $2,142,410 in FY 1996 and a negative $2,143,303 in FY 1997. There would also be corresponding reserve and balance forward adjustments based on those differences. Since he had questioned the $9,861,000 increase in premiums in each year of the biennium (Exhibit D), Co-Speaker Hettrick apprised the two money committees that he had called SIIS yesterday to verify the numbers and had been told that Senate Bill 458 included some exemptions which SIIS felt would affect premium income as well as delinquency charges. Co-Speaker Hettrick also questioned whether the adjusted numbers had included the impact of group self-insurance and he was assured by SIIS of the accuracy of the numbers; thus, he recommended that the budget be closed accordingly. To respond to a question from Ms. Giunchigliani, Co-Speaker Hettrick advised that the $4 million negative change in operating resulted from a typographical error. Chairman Arberry said he would accept a motion based on the proposed changes. MR. MARVEL MOVED TO ADJUST THE CLOSING ACTION BY REPLACING THE EXISTING AMOUNTS LISTED UNDER DECISION UNIT E-276 WITH THE NUMBERS LISTED IN EXHIBIT D. MR. HETTRICK SECONDED THE MOTION. THE MOTION CARRIED BY VOICE VOTE WITH MS. GIUNCHIGLIANI VOTING NO. BUDGET CLOSED. * * * * * * * * * * SENATOR RAWSON MOVED TO CONCUR WITH THE ASSEMBLY COMMITTEE ON WAYS AND MEANS. SENATOR COFFIN SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY BY VOICE VOTE. BUDGET CLOSED. * * * * * * * * * * For those members not serving on the Assembly Subcommittee on Higher Education and Capital Improvements, Ms. Giunchigliani wanted to know whether a report would be provided on the actions taken during the joint budget closings. Mr. Stevens said a report would be available in the near future. Senator Raggio wanted to know whether the members of the Senate and Assembly money committees who were assigned to the BPR project had had a chance to meet. Ms. Giunchigliani said she had not been able to get back formally with the Senators, but she had prepared a written list based upon her discussions with Senator O'Donnell, Ms. Tiffany and Mr. Hettrick. Regarding suggestion number 3 (Exhibit E), it was Ms. Giunchigliani understanding that Mr. Weller, Director, DMV&PS, believes the funding for the study could be derived from federal funds. If federal funding can be obtained, Ms. Giunchigliani thought this was the avenue to pursue. Since the BPR for the Secretary of State's office will be funded separately, Ms. Giunchigliani said she had not included it in her list. A copy of the suggested BPR's prepared by Ms. Giunchigliani is included in the meeting minutes as Exhibit E. Senator Jacobsen suggested the CIP report should be made available to those money committee members in both houses who do not sit on the Joint Subcommittee on Capital Improvements so they could be afforded similar information. There being no further business to come before the committee, Chairman Arberry adjourned the meeting at 9:50 a.m. RESPECTFULLY SUBMITTED: Yhvona Martin Committee Secretary mn6-16.wm.jt Joint Subcommittee Assembly Committee on Ways and Means and Senate Committee on Finance June 16, 1995 Page