MINUTES OF THE SENATE COMMITTEE ON FINANCE Sixty-eighth Session January 25, 1995 The Senate Committee on Finance was called to order by Chairman William J. Raggio, at 8:03 a.m., on Wednesday, January 25, 1995, in Room 223 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. Exhibit B is the Attendance Roster. COMMITTEE MEMBERS PRESENT: Senator William J. Raggio, Chairman Senator Raymond D. Rawson, Vice Chairman Senator Lawrence E. Jacobsen Senator Bob Coffin Senator William R. O'Donnell Senator Dean A. Rhoads Senator Bernice Mathews STAFF MEMBERS PRESENT: Dan Miles, Fiscal Analyst Bob Guernsey, Principal Deputy Fiscal Analyst Sue Parkhurst, Committee Secretary OTHERS PRESENT: Joan Kerschner, Director, Department of Museums, Library and Arts Janet Johnson, Budget Analyst, Budget Division, Department of Administration Robert van Straten, State Records Manager, Archives and Records, Department of Museums, Library and Arts Dr. Peter L. Bandurraga, Director, Nevada Historical Society Scott Miller, Administrator, Nevada State Museum, Department of Museums, Library and Arts Ronald M. James, State Historic Preservation Officer, Department of Museums, Library and Arts Bernadette Francke, Inspector Clerk, Comstock Historic District Guy Louis Rocha, State Archives and Records Administrator, Department of Museums, Library and Arts Museum, Library and Arts Administration - Page 393 In a brief opening statement about the Department of Museums, Library and Arts (DMLA), Director Joan Kerschner noted the department was created as part of the Governor's reorganization of state agencies in the last budget cycle. It includes the Division of State Library and Archives, the Division of Museums and History, the State Historic Preservation Office and the State Arts Council. Ms. Kerschner then provided a review of her agency's budget requests. Ms. Kerschner said the department administration budget includes just the director's salary and some small operating costs. When the department was developed no staff was included except the position of director; as a result, most of the clerical and accounting work has devolved onto the office staff of the Division of Library and Archives, which was already minimally staffed. The administration budget therefore includes a request for a clerical position for the director in the enhancement budget (E- 125, Accessible, Flexible Responsive Government). The Governor has recommended funding this position. Regarding E-900, Program Transfers, Ms. Kerschner said the department is requesting transfer of a previously funded position, the Public Information Officer (PIO) that was previously in the Division of Museums and History, to the departmental level. The rationale was that the department has found it can make a major savings in time, staff and efficiency if its events are publicized in a unified manner through coordination of newsletters, mailing lists and so forth. Ms. Kerschner noted that increasing the agency's efficiency through this kind of coordination was one of the charges given the department. In the planning processes, the agency's staff recommended the PIO be moved to the department level and shared statewide. Senator Raggio inquired if the PIO position was proposed to be funded from Commission on Tourism funds. Ms. Kerschner replied yes. In justifying the position request Ms. Kerschner said the funding had previously come from the commission and "continues to be recommended in that way." She said her agency would be working very closely with the tourism agency in planning the program transfer because this particular PIO would be very involved in publicizing events (DMLA publicizes between 30 and 60 events per year, department wide) and publicizing the availability of the department's facilities and events. Ms. Kerschner noted this is directly related to the "Other Nevada" tourism rather than "casino-level tourism." Senator Raggio asked Ms. Kerschner if she would continue to perform the functions of both the director of the department and the State Librarian under the Executive Budget. Ms. Kerschner responded yes. She said that after discussing this with the Governor, she agreed not to submit a request for a State Librarian position in this budget; however, she has requested the position remain on the books because she believes it is vital to fill the position sometime in the future. Ms. Kerschner said it is not fair to either the department or the state library and archives division to have a part-time person as director; in addition, all of the powers and duties of the Nevada Division of State Library and Archives are vested in the State Librarian, and at this point her true title would therefore be acting State Librarian. She reiterated this is a vital position that should remain in the system, whether or not funded, and said she would return to the Legislature in 2 years requesting the position be filled if it is not filled during the current session. Ms. Kerschner then reviewed the one-shot appropriations requests outlined in Exhibit C. She said the automation request represented a major part of the one-shot appropriations and was the first major project the agencies within the new department had worked on together after finishing the department's master plan and discussing coordination of all public information duties. Ms. Kerschner said the personnel in DMLA discovered in working together that the state library and archives has an extensive computer network and is able to share its information resources statewide. However, the information resources in the rest of the department have not been organized and catalogued. This needs to be done, and the resources need to be shared with the public. Ms. Kerschner stated the indexing of these resources would greatly improve the efficiency of the staff. In addition, Ms. Kerschner continued, improvement is needed at all levels of the department with respect to access to administrative computing. The department staff had therefore worked with the Department of Information Services (DIS) to create a plan to upgrade the system statewide and to "tie together all [entities of the department] like the libraries are tied together." That is the heart of the automation request, Ms. Kerschner said. The request had originally been included within the individual budgets, which is how it is presented in the Executive Budget. Although the automation could be done in increments, it is one major project and was therefore submitted as a one-shot appropriation. Senator Raggio inquired if the proposed plan would provide the public with good access to all DMLA agencies. Ms. Kerschner replied yes, elaborating that the department has been able to greatly enhance the libraries' on-line computer systems with Federal Library Services and Construction Act (FLSCA) funds over the last 2 years so that within the next few months the public will be able to dial in from home to access all of the agency's resources. The automation request would extend this department-wide. The FLSCA funds can only be spent on public libraries. Senator Raggio requested Ms. Kerschner address the one-shot appropriation of $881,999, which includes the $203,721 for Data Processing Equipment previously discussed. Ms. Kerschner directed the committee's attention to the memorandums regarding remodeling of the state library's basement for records storage (Exhibit D). She reminded the committee the basement has been left vacant since the original plan to make it into a parking garage was found to be less cost effective than purchasing adjacent land for parking, which would accommodate 200 cars vs. the 60 cars that could be housed in an underground parking facility. In the meantime, the master plan of the capitol complex had included a plan to construct a records facility that would provide inexpensive storage. The one-shot request offers the department an opportunity to remodel the basement, at a very low cost, for use in records storage, rather than having to construct or rent a facility for this purpose at another location. Senator Raggio asked which records would be stored in the remodeled facility. Ms. Kerschner said the records would be the kind that do not require long-term storage for permanent preservation. They are records that have been scheduled to be destroyed over a relatively short period of time, from 3 to 10 years, and are currently stored in facilities throughout the state. There is a long list of agencies from Las Vegas wishing to transfer records to Carson City. The facilities are costing the state because they are rental facilities. They are usually unprotected and unorganized, making them difficult to retrieve for audit purposes. If the records were at the state library they would be properly organized, easily retrieved, centrally accessible to the state's Audit Division and in a safe environment. Additionally, it is believed the cost of the basement remodeling could be amortized over a 2-year period. Senator Raggio asked if the basement remodeling would alleviate the problem the archives division has and whether there would be archive records stored in the proposed facility. Ms. Kerschner said the archives section would continue to be on the second floor, which it currently shares with the records section. The remodeling would enable the entire second floor to be used to house the archives because the records would be moved to the basement. Noting the problem with storage of records in some of the state agencies in southern Nevada (for example, the southern regional office of the State Industrial Insurance System, or SIIS), Senator Raggio inquired if there is space in southern Nevada for some of these records. Ms. Kerschner said the only space available in the southern region is rental space. Certain minimum standards must be met, which makes it more difficult to obtain the storage space. Senator Raggio requested the agency representatives provide a review of the state's established policy on records preservation with respect to how it is determined which records are to be kept and for how long. Ms. Kerschner deferred to Robert van Straten, State Records Manager, to respond. Mr. van Straten stated there is an established way to appraise records. This involves first doing a physical inventory of the records, after which they are appraised for four values: administrative, fiscal, legal and archival value. Not every record has those values. The administrative value deals with the functions of the office: Does the record perform the functions for which it was intended? Fiscal value deals with the accounting, auditing and budgeting functions of an agency. Legal value concerns the rights of the public and the obligations of the state. The archival, or historical, value is subdivided into three different values: (1) evidential value, which deals with the functions of the office and usually deals with the correspondence of the director's office and the program sheets; (2) informational value, which usually consists of records from outside sources that documents interaction of the agency with others and reveals a great deal about society in general; and (3) intrinsic value, which is the value of the record because of some item in it, the age of the record, the way the record was created, or as an artifact, for example, the signature of a major historical figure. In further explanation Mr. van Straten said that after the values have been established, state and federal laws are checked to determine if there is a minimum period of time for which the records must be kept; since there usually is not, the other values are used to determine the length of time for which the records should be kept. After that a records retention schedule is established. This represents the legal authority of an agency to either dispose of or keep a record, or to transfer it to the state archives. The process is done in an orderly and legal fashion; hence, if the record is destroyed and court action ensues, the state is protected as are state employees and the rights of individuals. Responding to a question from Senator Raggio whether some records are periodically purged to eliminate unnecessary records storage, Mr. van Straten replied affirmatively. He said the goal is to keep the retention of a given record to the minimum period of time allowed, although those records that will eventually be sent to state archives are kept for a longer period of time before being transferred to the archives. The reason for minimizing the records retention, Mr. van Straten noted, is that it costs too much to keep them. Senator Raggio remarked on the cost ($65,000) of storing over 6,000 boxes of SIIS records in Las Vegas and questioned the long-term value of the records. Mr. van Straten said the records would not have archival value, but do have long-term legal value and must be retained for about 45 years. Senator Jacobsen asked Mr. van Straten if his agency has examined the Stewart facilities in Carson City for possible storage use. He noted there is an empty 5,000- square-foot gymnasium building at Stewart that has been unused for 10 to 12 years and has a cement floor which would accommodate a forklift. He voiced the opinion the facility would be ideal for records storage purposes. Mr. van Straten replied he has seen the facility many times and it would make a good records center, except that a great deal of work would be required to bring it up to the national fire protection code; it is not in a good state of preservation. Ms. Kerschner pointed out that one of the benefits of the proposed basement remodeling is the stability of the state library building and its location in the same physical facility as Archives and Records. The agency's major plan is to have a continuum of the record once it arrives at the library building. A related one-shot appropriation request would provide micrographics as part of this particular operation, as it is in every other state in the Union; this would enable all aspects of records processing, from shredding to microfilming and so forth. Also, Ms. Kerschner noted, the building is 17,000 square feet and should suffice for many years. Senator Coffin inquired how many cubic feet of storage would be provided by converting the basement space into a records storage facility. Mr. van Straten replied the facility would hold between 31,000 and 39,000 cubic feet of records; this would be the net storage space available. The facility would meet national standards of fire protection and would be in compliance with the Americans with Disabilities Act (ADA) with respect to access. The one-shot appropriation would include money to improve the fire system by providing water-flow meters that would cause an alarm to sound if any water flow is detected; this would enable instant response to flood conditions, bursting pipes or other such potentially damaging situations. Senator Coffin asked if the records currently waiting for transfer to the state records center (Exhibit D) have already been through the retention cycle. Mr. van Straten replied yes. He said his office continually reviews retention schedules in an attempt to reduce the retention period and noted that last session the retention period for records such as those in storage for the SIIS southern regional office was reduced from 65 years to 45 years. In reply to a query from Senator Raggio as to the agency's ability to locate stored records, Mr. van Straten indicated the records can easily be located with the computer program being used by his agency. He said he could inventory the contents of the storage boxes "down to the file level" and cited the prison inmate case files as an example of the system's effectiveness. Regarding the compact shelving item in the one-shot appropriation request for the Nevada Historical Society, Senator Raggio asked if the Legislature had not recently provided such shelving. Dr. Peter L. Bandurraga, Director, Nevada Historical Society (NHS), was asked to speak to this request. Dr. Bandurraga said the 1989 Legislature provided the first phase of the compact shelving project, which was needed to accommodate the society's manuscript and photograph collections. The current request was for the second phase of the shelving project, which would provide a different kind of shelving to accommodate library collections (primarily books, journals, federal and state documents, and newspapers) that are currently housed partly on the floor and partly wherever space allows. The proposed project would add 10 ranks of shelving and would put everything onto carriages. Dr. Bandurraga said the manuscript shelving had increased the holding or storage capability by nearly 100 percent. The capability provided by the Phase II shelving would be increased by somewhat less than that but would solve one of the major problems regarding the library collections. Dr. Bandurraga assured Senator Raggio no third phase was planned. Senator Raggio inquired what the historical society's plans are for the future with regard to its facilities. Dr. Bandurraga said the society has been seeking space for its galleries and gift shop due to insufficient space for work, for storage and for exhibition space. There is no meeting room in the current facility, which requires clearing out the tables in the library for functions requiring more space. The historical society owns the building and rents the land for $1 per year from the university. Dr. Bandurraga said the historical society plans to move the galleries to a location in the downtown area of Reno if space becomes available; however, the reference and storage functions would remain where they are because their location on the university campus is excellent for research purposes. University departments such as political science and economics make good use of the NHS, Dr. Bandurraga remarked. Nevada Historical Society - Page 407 Senator Raggio inquired as to the decrease in the number of visitors by more than 28,000. Dr. Bandurraga attributed the decrease to the fact the historical society began charging admission of $2 on July 1, 1994. Until that point, for FY 1994, NHS had experienced its second highest attendance since it has been keeping records; there were 58,000 visitors in FY 1994. The numbers for the first half of FY 1995 dropped by 40 to 50 percent on a monthly basis. Dr. Bandurraga said he has heard people walk in and say, "Two dollars? I'm not going to pay it" and walk out again. He explained this is a normal occurrence nationally, with respect to museums charging admission. Initially attendance will drop off for a period of time. NHS has begun marketing, using private funds for paid advertising. No admission is charged for the libraries or for evening functions. Dr. Bandurraga discussed the small increases in the budget for conservation work and for exhibition work. He said one way NHS has been successful in the past in attracting visitors is through bringing in different exhibitions into its changing gallery throughout the year; there is an increase of approximately $4,000 in the budget request which would pay for "a couple of Smithsonian or other shows." The conservation work is very delicate and requires great expertise, and the prices for such work keep rising. Dr. Bandurraga said the other increase in the NHS budget is for restoration of one of three professional positions lost by the agency during the recent budget cuts and freezes; this request would restore the Senior Curator/Photography position. NHS has the largest photo collection in the state, consisting of about 350,000 images, and it currently receives only part-time care; this is insufficient, Dr. Bandurraga indicated. Senator Raggio inquired if the photo collection is catalogued in such a way that NHS would generally be able to respond to a request from a person wishing to obtain a photograph taken on a given date at a given location in the state. Dr. Bandurraga replied affirmatively, stating the basic cataloguing is by county. Division of Museums and History - Page 397 Scott Miller, Administrator, Division of Museums and History, presented the budget for his agency. He noted the agency's request to transfer the budget for the Marjorie Russell Clothing and Textile Conservation Center on Arrowhead Drive in Carson City to the budget for the Nevada State Museum, the entity which operates the facility. Mr. Miller directed attention to the materials he had given the committee, including a memorandum to the committee (Exhibit E), a program statement and expanded narratives for each of the budget accounts (Exhibit F) and a review of the agency's performance (Exhibit G). He first discussed the contents of the memorandum (Exhibit E), which concerned a change in the base budget in the revenue section. Regarding the agency's loss of operating and in-state travel funds for the current biennium, Senator Raggio asked how the travel had been handled. Mr. Miller said it was paid for out of the dedicated funds for the trustees' travel to board meetings. State Museum - Page 401 With reference to the M-300, Occupation Studies/Fringe Benefit Adjustments decision units, Mr. Miller told the committee this particular museum has quite a few curator- level positions. During the interim an occupational study was conducted by the Department of Personnel which recommended changes in grade for several of those positions. The increases in salary and benefits are reflected in the agency's budget request. Senator Raggio inquired if the net amount recommended by the Governor in that category resulted from the occupational study. Mr. Miller replied yes. The senator requested edification from Janet Johnson, representing the Budget Division, regarding the significant differences between the agency request and the Governor's recommendations (M-300, page 402). Mrs. Johnson explained as follows: The M-300 [decision unit] consists of three different areas. The reason that there is any number at all in the agency request is because of one of those areas. In this particular budget, all three are represented. The first thing is the merit salary increases, the second is occupational studies and the third is the fringe [benefits] changes. The merit salary situation... We built that into the agency request in order to reflect what that change was before it was impacted by anything else. There was a question at the time that we put it in whether or not we could fund the total amount. If there was going to be any portion of that funded rather than 100 percent of it, we wanted to be able to reflect to you the difference. As it turned out, 100 percent of that change was recommended, and so it really is kind of a moot issue at this point. Continuing his presentation of the budget for the Nevada State Museum, Mr. Miller offered justification for the requested Curator I (Zoologist) position in E-475, Management of Cultural Resources (page 403). Mr. Miller said the museum, as a repository for both the federal and state wildlife agencies, receives many materials of a zoological nature. The museum has had no one with expertise in the field of zoology for 6 years. A person with such expertise is desperately needed to prepare and preserve specimens and to handle the work of making them available for public access and use. Mr. Miller said the in-state travel funding is for the professionals on the agency's 22- member staff to travel to other institutions in the division and the department to provide assistance with everything from maintenance to exhibit preparation. The agency's request for the exhibit program for $2,500 per year would be used for the museum's changing gallery, Mr. Miller stated. The amount of money being requested is approximately 50 percent of the cost involved in changing the exhibits during the year, the balance of which the museum attempts to raise from private sources, grants and any other sources available. These efforts have been very successful, and it is anticipated the museum will be able to continue to raise the additional funds this way. Pertaining to the Utilities request under E-730, Maintenance of Buildings and Grounds, Senator Raggio asked if the utilities expenses were previously paid out of private donations. Mr. Miller replied there have been considerable shortages in the utilities budgets of three of the agencies within the division for the last 2 years, and the differences have been made up from private funds, due to limited state revenues. The division is requesting funding of the actual amount being expended on utilities; the request represents the amount actually spent for utilities during the last fiscal year. Senator Raggio referenced a letter from Mr. Comeaux in the budget office indicating the inflationary costs within the museum's budgets had been inadvertently deleted (Exhibit H). Fiscal Analysis Division staff were requested to make the necessary adjustments to these budgets. Senator Raggio requested explanation of the various position transfer requests in M- 900 and M-901, Program Transfers. Regarding the proposed transfer of a Custodian position to the Railroad Museum, Mr. Miller observed this agency has been experiencing significant growth in recent years, but currently has only a half-time custodian for the facility. During the last year the custodian has been sent to the Railroad Museum from the staff at the state museum on a regular basis "just to keep up." (See the Expanded Narrative, Exhibit F.) The Accounting Specialist has actually been operating out of the state museum, where the agency's accounting is centralized; the transfer would more appropriately reflect the position's actual work station. Senator Raggio inquired as to the most recent report received by the committee on outside funding for the agency. Mr. Miller said the most recent report was received by the committee January 19. It was a full report of all outside funding and the use of the funds. The senator asked if there are currently any staff totally supported by outside funding. Mr. Miller replied there are several: two Career Aid positions (50 percent time and 75 percent time) at the Lost City Museum; several part-time positions at the Nevada Historical Society, consisting of a museum attendant, two archive and research positions occupied by one individual and a program assistant; at the Nevada State Museum, one part-time museum attendant, one half-time gift shop operator (which position is split with the Nevada State Railroad Museum), a program assistant at 80 percent time, another one at slightly under 80 percent time, a half-time curator position, and a full-time position for the archeological site file records under a separate grant. Mr. Miller offered to provide the committee with a written list of these positions. Senator Raggio asked if persons in the above-listed positions qualify for the usual fringe benefits. Mr. Miller said they do because they are employees of the state. Nevada State Railroad Museum - Page 411 In the enhancement section (E-475, Management of Cultural Resources), the agency has requested that two positions currently state-funded at half time be increased to full time. These are the Grounds Worker and Custodian positions. Mr. Miller said a half-time grounds keeper simply cannot keep up with the work any longer; there is a tremendous amount of square footage devoted to the public access area. Senator Raggio inquired where the museum's rolling stock is kept and how many items of rolling stock are accommodated in the budget. Mr. Miller said the rolling stock in the worst condition, as well as the stock in very good condition, is stored in the main storage facility, the large metal building originally built for the Division of State Parks in the seventies. The balance of the stock is stored outside, behind the museum building. The funding in the budget accommodates 72 bona fide vehicles that would be classed as rolling stock. Senator Raggio asked about the restoration schedule for the rolling stock and how many items have been restored. Mr. Miller replied the restoration budget was eliminated during budget cuts and the agency has not had official restoration projects sanctioned through the General Fund; however, some maintenance and repair work has been done with funds the museum has been able to raise or with in-house labor and extra material lying around the building. The only true restoration the museum is currently engaged in is that of Locomotive #27 which was in Virginia City for a number of years and is often referred to as the Governor's locomotive. It is anticipated that a supplemental appropriations request will be brought before the committee before the end of the session. The agency is attempting to work out an agreement whereby the locomotive would be restored to operation and then returned to Virginia City. This project is the only one the agency has had on the books for the past 2 years. Senator Rawson requested explanation of E-999, Unfunded Decision Units. Mr. Miller said the original request included funding for machinery, specifically data processing equipment; however, much of the original request in this budget will be picked up by the one-shot appropriation for the department as a whole. Railroad Depot, East Ely - Page 415 Mr. Miller explained this facility, a museum, is composed of two state-owned structures. One is the original depot for the Nevada Northern Railway; the other is known as the freight barn and was formerly used to house freight coming and going via railroad to the community of Ely and parts outbound from there. The facility has officially been under the division's jurisdiction since 1989; however, it was not opened until 1992 when a curator was hired to begin work on the collections. The museum was described by Mr. Miller as "an extraordinary collection of artifacts" that controls the entire documented history of the Nevada Northern Railway and much of the Kennecott Copper Corporation as it existed from the day it was founded until the day it was closed. As such, he continued, it constitutes a record that is unparalleled elsewhere in this state and possibly anywhere else because "they threw absolutely nothing away," and as a result "probably the premier turn-of-the-century industrial complex is documented in this state to the nines; we could not possibly have any more information on it if we tried." Mr. Miller told the committee the buildings themselves are in need of attention, although they are not in the Capital Improvements Program (CIP) budget. The freight barn in particular needs salvage work because it has deteriorated substantially due to the harsh winter weather conditions in Ely. Senator Rawson commented on what appeared to be a low number of visitors (2,421 in FY 1994 as shown in the measurement indicators on page 415) to the museum. Mr. Miller indicated the actual number of persons having contact with the museum is easily quintuple that number, but the museum operator is very particular about what constitutes an actual visitor. He indicated the entire Nevada Northern Railway complex probably attracts a minimum of 25,000 visitors per year, and he estimated ridership on the train at about 18,000 people during the last season. Noting the proposed budget does not include funds for stabilizing, restoring and renovating the buildings, Senator Rawson asked what it would take to address these needs. Mr. Miller said he would provide the committee with this information. Regarding the request for a new clerical position and the fact it was not recommended by the Governor for funding, Mr. Miller noted the entire budget is funded from a transfer from the Commission on Tourism. In past years the appropriation was considerably more, Mr. Miller continued, but the agency refrained from filling positions to save money in the tourism budget. He stated: Our request this year did include a secretarial position to assist so we could be open on the weekends and just simply to give the curator someone to help. But under the circumstances, considering the source of the money, it was deemed that that was not within our purview as a [Commission on] Tourism-funded agency, so it did not get pursued. There has been commotion made over whether or not it is even worth saving, certainly from...the Commission on Tourism's point of view... Senator Rawson voiced the opinion this was very shortsighted; Mr. Miller said he has expressed similar concern to the commission. Senator Jacobsen inquired if any inmate labor from the honor camp is being used. Mr. Miller said yes, it is used every year, all the time, and the inmates are generally paid with private funds. State Museum, Las Vegas - Page 419 Mr. Miller noted the Governor has recommended the requested Curator of Manuscripts position for this facility (see E-475, Management of Cultural Resources, page 420). It is a professional position that the museums division is anxious to have because the records collection function of this agency "seems to be doing the best of all aspects of what we are responsible for there." The manuscript curator would be a significant addition to the agency's staff, Mr. Miller stated. Additionally, the agency has a one-shot appropriation for a three-quarter-ton pickup truck; the one purchased in 1982 has worn out. Senator Rawson asked if the division ever utilizes surplus property. Mr. Miller stated he currently has a crew in Utah that managed to obtain a $150,000 rail-tamping machine for $6,000. He said the railroad relies heavily on surplus property, and purchases from this source are made as often as possible. Some of the division's vehicles have also been obtained as surplus property. Lost City Museum - Page 423 Under E-475, Management of Cultural Resources (page 424), Mr. Miller called attention to the recommendation for the requested travel funds for museum staff to go to the archeological site and to Las Vegas for supplies, and the one to increase the Museum Attendant II position from three-quarters to full time with the use of private funds. The travel funds are mostly for transportation mileage. Senator Rawson inquired if the walls of the museum have been stabilized. Mr. Miller stated money had been set aside in the CIP budget for the current biennium that allowed for examination of the facility. Mr. Miller said the money being recommended in the current CIP budget for maintenance, which in this instance basically means putting more adobe on to replace the adobe that is sloughing off, will probably be an ongoing request because of the nature of the material used in the adobe mix. He said the problem may not be solvable "beyond putting a giant bubble over [the museum facility], literally" (to prevent it from getting wet). There was further discussion on possible solutions. Senator Coffin remarked he had visited the Lost City Museum in August and noticed the adobe was not in terribly bad shape; he was impressed with the care being given to the facility. The senator suggested the locality in which the museum is situated, and which benefits from its existence, could set up a cultural affairs project for continuous adobe maintenance. He noted this is done in many communities in New Mexico, where church groups maintain 300-year-old adobe structures. Mr. Miller commented the suggestion was excellent. Senator Rawson said it was very practical. Comstock Historic District - Page 427 Ronald M. James, State Historic Preservation Officer and member of the Comstock Historic District Commission (CHDC), introduced Bernadette Francke, Inspector Clerk, Comstock Historic District, and briefly stated the purpose of the commission before reviewing the agency's budget requests. Mr. James said the Comstock Historic District Commission is mandated to coordinate with residents of the Comstock district to encourage the preservation and promotion of its cultural resources. He expressed pride in the accomplishments of CHDC and indicated there has been a noteworthy improvement in the relationship between the district and the commission, which he described as "a real success story." A new program was initiated by CHDC with the assistance of the University of Nevada, Reno and with Mr. James' office, and without the use of state funds, which establishes an annual archeological field school on the Comstock and is scheduled to begin in early June 1995. Mr. James called attention to the corrected figures for the measurement indicators in the CHDC budget that he had provided the committee (Exhibit I). He noted the commission was requesting a one-shot appropriation for $1,300 for a facsimile machine and $50 for a backup Polaroid camera. Senator Raggio inquired if the commission currently has any restoration projects underway. Ms. Francke said most of the buildings in Virginia City are privately owned, and some individuals are beginning to restore some commercial buildings on C Street. Responding to queries from Senator Coffin regarding whether or not the Sutro Tunnel is within the Comstock Historic District and, if so, what the current status is, Ms. Francke said the core area, where the townsite and the tunnel entrance are located, is within the district. The underground portion is not within the district; however, it was Ms. Francke's understanding the Bureau of Land Management (BLM) is currently doing some site surveying on the area. Mr. Coffin further inquired if the state has the opportunity to obtain possession of part of the underground tunnel portion and whether that would be desirable. Mr. James replied it would be a management concern for the state to take on that property, and his agency would look to the Legislature for guidance on this matter. He said it would be a tremendous undertaking to obtain and maintain the Sutro Tunnel and the Sutro grounds, and he noted there is, at best, an arrested state of decay throughout the Comstock. Historic Preservation/Archeology - Page 431 Ronald M. James, Administrator, State Historic Preservation Office, noted this office was formerly within the Department of Conservation and Natural Resources but is now within the new Department of Museums, Library and Arts. He highlighted the agency's request for a Program Assistant, which would replace the secretarial position lost during the budget cuts. The position would "serve double-duty," providing clerical and accounting backup and, more importantly, managing the Historical Marker Program. Mr. James said this program desperately needs attention because the markers throughout the state are in a steadily worsening state of disrepair and are an embarrassment to the state. The program was completely eliminated during the budget cuts. Senator Raggio inquired if the recommended $1,000 per year would do much to alleviate the problem. Mr. James said it would be better than nothing and would enable the work to begin. The senator asked what the larger amount ($10,000 per year) requested by the agency would have accomplished with the Historical Marker Program. Mr. James estimated it would have enabled his agency to address, annually, 10 percent of the 250 markers; every 10 years or so each marker could thereby be given attention, which was the basis for the agency's request. Nevada State Library - Page 435 Joan Kerschner, State Librarian, reviewed the state library's measurement indicators in the budget. Ms. Kerschner said the library expects to do about the same number of reference inquiries over the next 2 years as it has done during the current biennium; however, a statistic not shown in the measurement indicators is the number of people who are doing their own research at the library. Few people did research on the premises of the old state library building because it was not conducive to this activity, and the library staff did virtually all research over the telephone. Although the number of reference staff has been reduced due to the previous budget cuts and there is currently only one reference librarian on duty at any time, the state library has been able to continue to help people because they are now able to come in and do the research themselves. The number of library users increased from 15,000 for the first year of occupancy in the new building to nearly 19,000 for the most recent year, and the agency projects the numbers will continue to grow. Ms. Kerschner stated the library offers two tiers of service: one for government and business clients, who generally prefer to get information via telephone or fax; and the general public, constituting the largest group of users, who often come in to use the facility. Senator Raggio asked if the agency can measure the response time to verbal and written requests. Ms. Kerschner answered there is a way to do so; however, the response time varies radically, depending on the nature of the request. Some responses take as little as 10 minutes while larger research problems may take several days. The library attempts to categorize how many of each type of request it has. Regarding the statistics relating to the services for the Blind and Physically Handicapped (BPH) in the measurement indicators, Ms. Kerschner said the library staff very aggressively promotes this program. She noted the increase in number of circulation transactions by the BPH program from a projected 42,900 for FY 1994 to an actual of 73,557. Volunteers are used in this program, which is managed by 1.5 staff positions. Ms. Kerschner offered justification for the proposed new positions requested in M-200, Demographics Caseload Changes. She pointed out the proposed budget would restore some of the 9.5 positions lost in previous budget cuts. The positions are five part-time Student Worker positions. Ms. Kerschner said the positions have been absolutely critical to the agency in the past because they are able to do all of the clerical and organizational work that has devolved onto the librarians over the last year or so, resulting in a lower level of personal service by the research staff. The request recommended by the Governor would enable the agency to provide better public service by those who are paid to do so and have the necessary education to do so. Concerning the enhancement budget, Ms. Kerschner stated, "...this is the previous category that the Legislature and the Governor had authorized for us to spend in behalf of other public libraries." She said the library had in the past used the funds to produce a statewide catalog on CD ROM so libraries in very remote areas could see the holdings of the university, the state library, and the libraries in Clark and Washoe counties, giving them an automated catalog even though they could not afford the telephone lines to connect the small libraries. Over the last 2 years the state library has been phasing this out because of budget cuts. It is proposing the telephone lines be upgraded to digital with the requested funds, thereby enabling the library to provide better service, with greater capacity, to the outlying areas. The statewide catalog has been phased out, and it has been possible to put "almost everybody" (except the very remote libraries, which continue to dial in) on-line. Senator Raggio inquired if this cost would be ongoing. Ms. Kerschner replied affirmatively, stating it has been a permanent category in the past. Senator Raggio asked if the amount requested ($16,790) was for maintenance or installation. Ms. Kerschner said the amount includes installation and some equipment; the ongoing costs of the digital lines will not be $56,725 (see E-999, Unfunded Decision Units, total expenditures) in the future. The senator asked why the amount for the second year is comparable to the amount for the first year. Ms. Kerschner responded the upgrade project is being phased in over 2 years. Senator Raggio asked if the budget request provides for activities beyond the upgrading of the communications and the circuits. Ms. Kerschner said the amount includes a membership of $5,000 that is paid to a bibliographic utility, a company that provides cataloging records which are shared statewide by all public and university libraries in the state. Ms. Kerschner discussed E-251, Quality Education Opportunities (page 438), which contains the budget requests for bookmobile services. It is already an expenditure within the 1995 budget but shows up in this category as an enhancement. This results from the fact that Elko did not use its funds in FY 1994, but the funds will be expended in FY 1995 to bring the funding up to the $96,000 (including matching federal funds) the state has been providing. Senator Raggio asked if this amount would be adequate to support the bookmobile program at the desirable level. Ms. Kerschner explained the bookmobile services actually cost more, and the funding is actually a subsidy of a greater or lesser amount, depending on the area. While the amount of funding does not fully support the bookmobile services, it is the amount that has been given by the state for the past 6 years. Senator Rhoads asked why Elko County did not use its bookmobile funds in FY 1994. Ms. Kerschner replied the county had taken its bookmobile out of service for over 3 months to have it refurbished and therefore did not have all of the operating expenses that otherwise would have been incurred. With respect to E-325, Business/Government Environment (page 438), Ms. Kerschner told the committee this unit is the heart of her agency's budget request. She said the most important thing to the agency in this budget is to enable the state library to restore its book budget to "a decent level" and to provide stable funding for book acquisition. Ms. Kerschner noted the Governor's recommendation still does not bring the agency up to the level of 1992, at which time the book budget was $182,000. The state library will continue its fund-raising efforts to make up the gap, but the requested funds are very important to this budget, Ms. Kerschner stated. Senator Raggio inquired if the proposed increase is in line with what is being proposed in the budgets for other libraries funded by the state. Bob Guernsey, Deputy Fiscal Analyst, Fiscal Analysis Division, said the fiscal staff would obtain this information for the committee. Archives - Page 441 Ms. Kerschner, State Librarian, presented the first portion of the agency's testimony on this budget. She said the base budget reflects the fact that the number of employees within the budget has been reduced to five. She noted that during the period when the special records management program was in operation, the program had a staff of 15. In a survey of the western states it was learned that Nevada has the lowest number, by far, of staff in this program; many states, including Wyoming, may have as many as 30 people in this particular program. Approval of the budget request in E-125, Accessible, Flexible Responsive Government (page 443), would enable the addition of two positions to restore to 9 hours the period of time Archives and Records is open each day. For the past 2 years the repository has been open only 4 hours, as reflected in the performance indicators (page 441). Ms. Kerschner explained the indicators reflect the results of the surveys done by Robert van Straten regarding the number of records the agency can accept. The unavailability of the basement space has resulted in a much lower number being received by Archives and Records. Ms. Kerschner said the larger figures projected should be more realistic for the year, if the requested additional staff and space are provided. Ms. Kerschner said the request in E-475, Management of Cultural Resources (page 443) provides funds for salaries and travel for the State Historical Records Advisory Board. Board members have served with no salary for the last 2 years because the funding was not provided. Senator Raggio asked how board members are appointed. Ms. Kerschner replied they are appointed by the Governor. The board was created under both federal and state law and has dual authority. The senator inquired as to how salaries have been paid in the past. Ms. Kerschner said the advisory board is paid from federal funds for travel, but salary is not allowed; however, state statute does allow for salary. It was pointed out the E-475 narrative should include operating expenses for staff as an item funded in this category because the out-of-state travel is not for the board, but for the staff. Ms. Kerschner emphasized these personnel are the state's experts on imaging, records management and archival preservation, and attendance at conferences and professional meetings is necessary to keep them up to date. Regarding E-477, Management of Cultural Resources (page 443), Ms. Kerschner deferred to Guy Louis Rocha, Administrator, State Archives and Records, for an explanation of the Federal Historical Preservation and Records Grant and how the funds were to be used. Mr. Rocha told the committee his agency had submitted a grant proposal to the National Historical Publications and Records Commission (NHPRC), which has asked Archives and Records to submit the proposal in the next federal fiscal cycle. This would allow the state to conduct a statewide needs assessment and subsequently submit a planning grant. Such a study was done over 10 years ago, and the resulting report provided a snapshot of how records programs were operating, both in the public and private sectors, throughout the State of Nevada. Mr. Rocha said the grant would provide a new strategic planning document. He and Dr. Bandurraga would be responsible for oversight of the grant project. The plan is contingent upon what Congress does with regard to many of the state's federally funded projects. It is possible the NHPRC will be eliminated when Congress cuts programs. Mr. Rocha stated the grant proposal will be resubmitted on the assumption an appropriation from this source will still be possible. Senator Raggio asked Mr. Rocha if the proposed budget would allow Archives and Records to make some progress, despite its tremendous backlog. Mr. Rocha said some progress would be made, and this is a first step toward regaining ground lost after reaching "a pinnacle" in 1991. The senator commended Archives and Records for the job it does in responding to requests. Nevada State Library, Literacy - Page 447 Referencing a sheet of measurement indicators that were distributed to the committee (Exhibit J), Ms. Kerschner called attention to a correction in the measurement indicators shown for this budget. Nearly 23,000 students were served in FY 1994 in various programs coordinated by the Nevada Literacy Coalition (NLC). A slight decrease is projected due to the loss of federal funding from the State Legislation Impact Assistance Grant (SLIAG), which had been available for expenditure in behalf of persons wishing to become U.S. citizens. Ms. Kerschner said the program will continue to grow, however. The funding in this budget helps the agency maintain the levels of activity in the various areas of service. Regarding the adjustments to the base budget, Ms. Kerschner stated these are primarily due to loss of federal Title VI Library Services and Construction Act (LSCA) funds, which were the source of revenue for operating expenses and travel cost for the literacy program. Additionally, the National Literacy Act (NLA) is being targeted for elimination. The Governor has recommended the program be continued with state funding for the operating expenses and travel cost. Ms. Kerschner said that in M-200, Demographics Caseload Changes, the request to make the half-time Management Assistant a full-time Program Assistant to assist with bilingual programs is based on the expected increase in the number of people to be served and the fact the SLIAG money will no longer be available to accommodate the increase. The request would allow the agency to better communicate with the largest constituency in this program, those persons who speak Spanish as their first language. Ms. Kerschner further stated the other funding for this program, which pays for consultants, tutors, trainers, printed materials, library resources, and so forth, comes from two federal programs: (1) the National Literacy Act and (2) a teacher training grant that is funded through the Adult Basic Literacy Education program (ABE) by means of a transfer from the Department of Education. The Nevada Literacy Coalition does much of the training for the ABE and the volunteer tutors in cooperation with the Department of Education. Senator Raggio inquired if it is likely the federal funds will continue. Ms. Kerschner replied, "We feel more positive about the National Literacy Act and the ABE money. We certainly know that the LSCA literacy money is going away." The senator asked what would happen if the funding disappears. Ms. Kerschner said there would be an office with a staff and the materials used in the past, and the coalition would keep the program going at a very minimal level; however, the staff would not be able to conduct tutor training. Nevada State Library, CLAN - Page 451 Ms. Kerschner noted five counties have been added to the Central Libraries Automated Network (CLAN) system. She said the agency is very proud of this system, which is totally self-supporting by the constituent libraries. The only General Fund money in the budget is for the state library's costs, a transfer of about $20,000 into the system. This does not include the cost of the space and utilities provided by the state library for operating the system. Ms. Kerschner described the CLAN system as "the bargain of the century for the state and...for all of the members, because most members do not pay a lot more for the basic operating costs than $20,000 to $25,000 per year." She said the system continues to add members and cited the U.S. Geological Survey and the State Fire Marshal Division as examples of entities that have recently joined the system. Members are added "carefully and judiciously," at a rate that enables continued growth but helps lower costs because they are shared. Ms. Kerschner said the LSCA grants, which have enabled the agency to purchase and maintain CLAN system equipment, will fund the capital improvements in this budget. Senator Rawson asked if Nevada has made any progress, in comparison with the rest of the nation, as a result of tying the state's libraries together in a network. Ms. Kerschner expressed the opinion Nevada will be an information-poor state for the foreseeable future; however, she said, the network is obviously advantageous because it allows the constituent libraries to share information and also links the state to the other states. Senator Mathews took issue with the word "information-poor," stating, "I guess I don't like [it] because poor is forever, and I don't like that. I'd like to think that we're going to be `information-broke' for awhile. And since...we have this information highway, we have access to the nation, so we shouldn't be that [deficient in this area]." Ms. Kerschner agreed and acknowledged the situation has radically improved for the state. Referring to the measurement indicators for "number of titles residing on the database," Senator Coffin asked if the number is limited only by the length of time required to index or add titles to the database. Ms. Kerschner said there is a great overlap in the titles on the database that are held by the libraries in the system, which may make the number appear lower than it actually is. The senator inquired if inclusion of the state's large libraries in the CLAN system would be desirable. Ms. Kerschner replied the large counties have their own systems, which have been tied into CLAN. The Nevada State Library is working to ensure ready access to information regarding holdings in any library in the state, including those in the university system. Senator Coffin asked how one obtains access to the list of titles on the database and whether such information can be accessed through one's personal computer at home. Ms. Kerschner answered, "We're getting very close to that. As a matter of fact, in the Las Vegas/Clark County library district they already allow people to dial in from home. There is a limited number of people who are dialing in at Washoe [Library], and we'll be bringing that up very shortly for the CLAN libraries." Senator Coffin requested the committee be apprised of further developments in this area. Prefacing his remarks with the observation there are a multitude of information services available in this modern age, Senator Raggio asked Ms. Kerschner to comment on the importance of purchasing actual book volumes, duplication between libraries and so forth. Ms. Kerschner voiced the opinion it will be a long time before people want to stop reading books as we know them, because they like to hold them and carry them from place to place. She said the information world enables the provision of computerized information "on screen," but it is doubtful people will want to stop checking out books from the public libraries in the foreseeable future. Noting the state library recently canceled a number of subscriptions to "hard copy" periodicals and journals due to lack of funds, Ms. Kerschner said these were substituted with a full- text, on-line database containing over 800 magazines for about what it had cost for fewer than 100 hard-copy publications. While changes will continue to occur, and service improve, due to changing technology, libraries will continue to be important as the provider of materials and resources. Ms. Kerschner affirmed the statement by Senator Raggio that "information services will provide a much wider base [of service]." Ms. Kerschner introduced several people to the committee: Emmy Bell, literacy coordinator for the Nevada Literacy Coalition; Danny Lee, chairman of the Council for Libraries and Literacy; and Kerin Putnam, coordinator for the Talking Books program. The meeting was adjourned at 10:03 a.m. RESPECTFULLY SUBMITTED: Sue Parkhurst, Committee Secretary APPROVED BY: Senator William J. Raggio, Chairman DATE: Senate Committee on Finance January 25, 1995 Page