MINUTES OF THE MEETING OF THE JOINT SUBCOMMITTEE ON GENERAL GOVERNMENT ASSEMBLY COMMITTEE ON WAYS AND MEANS AND SENATE COMMITTEE ON FINANCE Sixty-eighth Session March 21, 1995 The meeting of the Joint Subcommittee on General Government of the Assembly Committee on Ways and Means and the Senate Committee on Finance was called to order at 7:42 a.m., on Tuesday, March 21, 1995, Chairman Tiffany presiding in Room 321 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. Exhibit B is the Attendance Roster. ASSEMBLY SUBCOMMITTEE MEMBERS PRESENT: Mr. Dennis L. Allard Mrs. Maureen E. Brower Mrs. Jan Evans Mr. Bob Price Ms. Chris Giunchigliani Ms. Sandra Tiffany, Chairman ASSEMBLY SUBCOMMITTEE MEMBERS ABSENT: None SENATE SUBCOMMITTEE MEMBERS PRESENT: Senator William R. O'Donnell Senator Lawrence E. Jacobsen Senator Bernice Mathews SENATE SUBCOMMITTEE MEMBERS ABSENT: None STAFF MEMBERS PRESENT: Mr. Robert Guernsey, Principal Fiscal Analyst Mr. Brian Burke, Program Analyst Chairman Tiffany indicated the Department of Employment, Training and Rehabilitation (DETR) budgets had been heard previously and said this hearing would be to find answers to specific questions. She requested explanation of the restructuring of the Director's office which involves increasing the number of staff members from four to 11. Carol Jackson, Director of the Department of Employment, Training and Rehabilitation, explained the restructure would move the Public Information Officer and an Internal Auditor into the Director's office to provide better access to all Divisions within the Department. Chairman Tiffany asked what duties the internal auditors would perform. Ms. Jackson said internal auditors would be assigned to special projects and would also be available to examine issues raised by Department employees. Chairman Tiffany asked whether the auditors would also work on obtaining additional federal funding to reduce the amount of General Fund support for these budgets. Ms. Jackson responded that was not necessarily within the scope of duties of internal auditors and would more likely be performed by financial management. Chairman Tiffany inquired what responsibilities were assigned to DETR's Chief Financial Officer (CFO). Ms. Jackson responded DETR's CFO, Mr. Maynard Yasmer, is an expert relating to cost allocations and federal programs, regulations and procedures. His main focus is to ensure programs function according to financial parameters. He also works with the Department of Administration on DETR's executive budget and ensures all state and federal rules and regulations are followed. DETR's total federal budget is $95 million. Ms. Jackson pointed out 93 percent of DETR's budget is funded from sources other than state General Fund. Chairman Tiffany observed cost allocations appeared to be different than they had been previously and asked whether federal approval had been obtained. Ms. Jackson responded formal approval from the federal government could not be requested until the Executive Budget is closed; however, Mr. Yasmer and a consultant, Mr. Ed Perry from David M. Griffiths and Associates, both concurred that there should be no difficulty receiving federal approval. Chairman Tiffany confirmed that other states have taken an administrative portion out of the federal funding. Ms. Jackson indicated several other states are going through a massive reorganization similar to Nevada. Mrs. Evans requested a report of what federal grants DETR receives, how much of each grant is allowed for administration and the amount actually used for administration. She expressed concern that funding go for direct services rather than administrative costs. Ms. Jackson responded DETR is also concerned with funding direct services. Mr. Yasmer indicated the majority of DETR's grants have approximately a 5 percent cap for administrative costs. Administrative staff or cost has not been increased since 1991 and the 1994 audit revealed no findings against the Department. He indicated a report of federal grants and administrative costs would be provided to the committee. Ms. Jackson distributed revised measurement indicators attached as Exhibit C. Chairman Tiffany referred to the Department's organizational structure prior to reorganization and inquired why those divisions which had traditionally functioned with fewer financial, personnel and data processing services now required additional services when the intent of reorganization was to save money and increase efficiency and communication. Ms. Jackson said her goal had not been to reduce personnel but to improve effectiveness and efficiency within the department. Without a financial management department large enough to serve all the agencies, there is a risk of losing some federal programs. Chairman Tiffany questioned whether 28.5 fiscal staff members are required. Ms. Jackson responded they were, given the large amount of funding and number of programs the Department handles. Ms. Jackson indicated she would like the opportunity to review staffing levels in two years to see if levels are appropriate. Chairman Tiffany confirmed that performance indicators will track staffing levels relative to work load and production. She asked whether a reduction in General Fund would be possible. Ms. Jackson responded this issue could be investigated and if there is a way to reduce General Fund dollars, it will be recommended. Chairman Tiffany pointed out 67 staff members have been assigned to the new Information Services Division and 11 staff are requested to perform contract services. The divisions where these staff members previously worked would now be charged for the services provided. She inquired whether the federal government would approve this type of arrangement and whether the responsibility would ultimately fall to the General Fund. She also asked who currently pays for the 11 staff requested to perform contract services. Mr. Yasmer explained cost allocation and charge-back methods would be used initially but the department would be looking into a fee-for-service based system so that Information Services staff time would be charged directly. A fee-for-service based system has been used for some time at the Department of Information Services. The Department is committed to developing this system during the coming biennium. In response to the second portion of Chairman Tiffany's question, Mr. Yasmer indicated DETR's General Fund is approximately $5 million of a $95 million budget; the majority of General Fund dollars also earn federal dollars through match and maintenance of effort. The Department will not take money out of program services. In response to the third part of Chairman Tiffany's question, Jim Hanna reported the 11 contract staff members are funded by the Bureau of Labor Statistics through a contract with DETR for the production of virtually all labor force statistics for the state. Chairman Tiffany noted the contract pays for all costs associated with these 11 individuals and inquired whether the contract must relate to labor statistics. Mr. Hanna said the Bureau of Labor Statistics contract is ongoing and will not change. There is also another type of contract. Contract research has generated $350,000 annually for the past two years to provide various services to federal and state agencies. If the money is not available for these contracts, the jobs funded by the contracts disappear. There are two or three individuals on this type of contract. Funding comes from various federal agencies and some state agencies. Chairman Tiffany asked whether information was available to track these individuals relative to funding sources and revenue production. Mr. Hanna responded affirmatively. Chairman Tiffany referred to Vocational Rehabilitation and Services to the Blind and inquired why the in-kind certification match is being replaced with state General Fund match. Mr. Yasmer reported through the 1991 Session the Legislature has always equally or more than matched federal revenue at approximately 4:1 federal to state. Following the 1991 Session, General Fund money was reduced significantly and some was replaced with certified match. Thus far, no significant exceptions have been noted in audits. Mr. Yasmer added this was an intermittent activity during an economic crisis that is now over. When General Fund money is available, the risk of using certified match is too great and all DETR programs directly or indirectly alleviate Welfare so the state money is more than recovered. ALCOHOL TAX PROGRAM - PAGE 1459 There was no testimony regarding this budget. BLIND BUSINESS ENTERPRISE PROGRAM - PAGE 1487 Chairman Tiffany requested background information regarding this program. John Orr, Assistant Director, Department of Employment, Training and Rehabilitation, explained the business enterprise program grew out of the Randolph-Shepherd Act which sought to create a degree of economic self-sufficiency among blind individuals by extending to them a priority to operate vending stands on federal and other property. NRS 426 extended that priority to state and other properties owned, leased or occupied by the state or any political subdivision thereof. The purpose remains to create opportunities for people who are trained and licensed by the Bureau of Services to the Blind to operate their own businesses and to generate a self-sufficient income from the proceeds of that business. NRS 426 also created a contingent fund whereby each of the blind vendors pays a percentage of their profit into the contingent fund to support the program and the expansion of the program so additional individuals can benefit. The contingent fund pays the salaries of 3.5 staff members; repairs to any equipment used in the businesses; meetings of the federally required Nevada Committee of Blind Vendors; and expansions and remodeling of existing facilities. Currently two dozen facilities provide employment for two dozen business owners and 140 additional individuals, about half of whom are also disabled. Nevada's program is the only one that includes no state tax dollars. Chairman Tiffany requested discussion of items in decision unit E850 relating to funding for the Hoover Dam Visitor Center and the Juvenile Family Courts building remodel. Mr. Orr said in 1966, Congress approved a visitor center to be built at Hoover Dam but appropriated no funding for it. Since that time, the Bureau of Services to the Blind established three different businesses at Hoover Dam run by three different blind operators. Five years ago the Bureau of Reclamation wanted to relocate at least two of those businesses into the visitor center so Services to the Blind engaged an architect to participate in the entire design phase of the visitor center to ensure the businesses were put into commercially favorable locations and that their interests were protected. As the result of those architectural plans, it is expected the Bureau's cost of relocating those two businesses into the visitor center will be $600,000. Chairman Tiffany asked whether detailed project cost allocation information was available and asked how using business enterprise money on these projects is justified. Mr. Orr responded the three major items that keep the Nevada business enterprise program self-sufficient are the set-aside payments that go into the contingent fund from those three locations and the $600,000 investment will be recaptured in a very short time. He added that further detail regarding the project would be provided to the committee. Mr. Orr said when an agency plans to remodel, acquire or construct a building, statute provides that Services to the Blind should be included from the start of the design phase in order to ensure appropriate space is allocated for a vending facility if appropriate. At the Juvenile Family Courts building in Las Vegas, it is believed that the number of on-site staff and the numbers of visitors to that building will support a cafeteria style snack bar. Previous experience has shown that scope of operation will cost roughly $125,000 to equip and staff. Chairman Tiffany requested written justification and cost detail be provided for the Department of Motor Vehicles snack bar, the U.S. Department of Energy relocation, the Federal Court House machine located in Reno and the post office remodel in Las Vegas. Mr. Orr said the information would be forthcoming. Mrs. Brower requested the information also include what type of service will be provided at each location. Mr. Orr explained the account must include a reserve because there is no source of money other than the contingent fund. The reserve has been built up over the last five years in anticipation of the major expenses at Hoover Dam. Services to the Blind has initiated a federal arbitration with the Department of the Interior and if that arbitration is lost, it will be at considerable expense to the vendors at Hoover Dam and will result in an expense to the contingent fund. Until that arbitration is resolved, it is critical to retain a sizeable reserve. Steve Shaw, Administrator of the Rehabilitation Division, testified the Blind Business Enterprise Program draws administrators from around the country who want to determine how the program works so well and can be run without tax dollars. DISABILITY ADJUDICATION - PAGE 1503 Chairman Tiffany noted the Executive Budget includes a request for five new positions and asked what factors contributed to the need for new staff. She also requested explanation of "medical determination costs." Steve Shaw, Administrator of the Rehabilitation Division, explained disability adjudication involves determining whether an applicant is eligible for social security disability benefits. That determination is based on federal guidelines. The requirement for additional staff is caseload driven; Nevada is the fastest growing state in the nation and the disability population is increasing by 10 percent per year. This budget is funded completely from the federal government. Two disability adjudicators are requested during both years of the biennium and a physician is requested to review medical records to determine whether medical information is adequate to substantiate a claim. Chairman Tiffany asked the amount of the physician's salary. Mr. Orr responded the salary for a senior physician is $95,695 per year with $25,995 for fringe benefits. She inquired whether this function could be handled by contract with an outside physician's group. Mr. Orr said the Bureau of Disability Adjudication spends medical costs by contracts with independent physicians. There are also in- house staff physicians to work as part of the disability team. Two determinations are made: the presenting evidence must be matched against the federal standards for eligibility; and, a medical determination must be made. Social security requires medical capability be included as part of the decision team. There are currently two staff physicians and two staff psychologists and one is being added because of increased caseload. Chairman Tiffany asked how many claims the new physician would be able to process. Mr. Orr said the Bureau receives 13,000 claims per year of which Social Security pays for approximately 11,000. Each of the three staff physicians would process one-third of those claims. Chairman Tiffany requested performance indicators be provided regarding the backlog of claims, how many claims each physician processed during the last year, and justification for adding another position. Mr. Orr said the backlog is reflected in the mean processing time of 100 days. Chairman Tiffany asked whether the physician would impact the mean processing time. Mr. Orr responded affirmatively. Chairman Tiffany indicated there was insufficient information to prove that the additional physician would significantly reduce processing time. Mr. Orr said the four adjudication positions and the physician working as a team would reduce mean processing time from 107.5 days in FY 94 to 95 days at the conclusion of FY 96. Mr. Shaw said the increase is based on a federal projection that the number of applicants will increase by 10 percent per year. Nevada ranks second or third in the nation for production per work year. Mean processing time has in the past been as high as 120-140 days. COMMUNITY BASED SERVICES - PAGE 1527 Chairman Tiffany asked why an outreach program is associated with this account when it is not possible to provide service to the number of clients already identified. Mr. Shaw said this program has reverted small amounts of federal dollars for a number of years because service could be accessed only in Reno and Las Vegas. The service delivery system has been changed so that nearly all communities in the state can access these funds if there is an eligible client. The program saves money by keeping people out of institutions and allowing them to function independently. Mrs. Evans said information provided by staff indicated the federal Independent Living Grant would not be sufficient to meet anticipated demand for services in FY 96 and FY 97. She inquired whether the grant decreased or whether the caseload has grown. Mr. Shaw reported the federal grant amount of $283,000 remains static. The federal grant is allocated on total state population; there are three levels and Nevada receives the lowest level of funding. Growth has resulted from the way service is delivered and from the state's rapidly expanding population. Mrs. Evans noted that with the federal grant amount remaining static and the expected continued growth in the population to be served, the state would need to expect to continue to increase funding for this program. Mr. Allard questioned a measurement indicator in Exhibit C which reflected the number of independent living cases closed successfully and asked for clarification. Mr. Shaw indicated he would provide the answer at a later date. Chairman Tiffany questioned the impact on the program if the General Fund portion is not approved. Mr. Shaw responded less clients would be served. To respond to reduced funding, an order of selection according to level of disability would be set up and the most severely disabled clients would be served first. Mrs. Evans referred to the E275 decision unit and asked how the funding ratio of 40:60 was determined. Mr. Yasmer said support for the telephone surcharge which provides relay services and TDD (Telephone Device for the Deaf) services for the deaf was divided between Community Based Services and the Hearing Devices Program. Mrs. Evans confirmed the Coordinator of Deaf Services is a new position. Mrs. Evans also confirmed that resource centers for the deaf were closed during budget cuts and asked how those clients have been receiving services. Mr. Shaw said one of the major purposes of the deaf resources centers was to provide interpreters for businesses. He noted the deaf community had requested the position of a Coordinator of Deaf Services who will make decisions regarding the TDD, work with the Deaf Advisory Board and investigate other sources of federal funding. Mrs. Evans inquired whether there are any plans to bring back deaf resources centers or whether services are being adequately handled in other ways. Mr. Shaw said the coordinator position would be a great help, but there are no immediate plans to request reinstitution of a deaf resource center. Mr. Allard asked if any figures were available to show whether the program has helped individuals become independent. Mr. Shaw said a cost benefit analysis was being performed. A recent survey showed that: assistance resulted in decreased dependence on family members which allowed family members to work rather than remaining home to care for these individuals; clients relied less on personal assistance service; health problems were improved; the risk of physical harm was decreased; the negative effects of disability and chronic illness were decreased; the need for institutional care was greatly reduced. Mr. Allard noted measurement indicators should reflect the amount of money saved by the program. Mr. Shaw responded figures showing cost savings would be provided as soon as they were available. Senator O'Donnell commended the program for the excellent job it has done over the years and expressed frustration that more could not be done to assist the program. He noted this budget has always received a great deal of scrutiny and added perhaps it was time to stop scrutinizing it so closely. Mrs. Brower noted it might be helpful to have a performance indicator that reflected during a given time period how many people applied for the program and how many people are successfully living on their own. She asked how close the state is to attaining the population necessary for the second level of federal funding. Mr. Shaw responded Nevada is far from attaining the second level. Chairman Tiffany noted the Governor's budget contains $6,000 in FY 96 for travel and materials to develop a sign language as a second language program at the high school level. She questioned why the agency has requested that amount be split equally between each year of the biennium. Mr. Orr said it was felt the funds would be more effectively used if $3,000 was allocated for each year. Chairman Tiffany called for public testimony. Jack Mayes, Executive Director of the Northern Nevada Center for Independent Living, read from prepared testimony, attached as Exhibit D. John Butterworth, President of Nevada Technologies, a private sector organization started by Community Based Services, said the organization provides a statewide information and referral service through a toll free hotline, a bi-monthly newsletter, a foundation which grants up to $500 every three years for assistive technology, and a television program in the Reno area. Mr. Butterworth said Community Based Services provided money for his van to be modified and he is able to live at home because of assistance that was provided. He said without some of the things provided by Independent Living, the state would be paying $3,500 a month for him to live in an institution. Mr. Butterworth distributed a document entitled "Fact Sheet on Assistive Technology," attached as Exhibit E. John Chambers, Chairman of the Legislative Task Force of the Nevada Opinion Leaders Forum on Disability, distributed prepared testimony, attached as Exhibit F, and a document entitled "Legislative Issues Report to the Sixty-Eighth Session of the Nevada Legislature," attached as Exhibit G. He noted his organization works very closely with Community Based Services and supports their budget. David Daviton presented written testimony (Exhibit H) in support of the Community Based Services budget. Mr. Daviton presented his testimony in American Sign Language, which Diana Callahan interpreted for the committee. Mrs. Evans asked Mr. Daviton for clarification of a portion of his testimony relating to the loss of $110,000 in funding lost four years ago. Through his interpreter, Mr. Daviton responded that recently $110,000 per year was divided between deaf resource centers in northern and southern Nevada; because of budget cuts, there are currently no services in either the north or south. EMPLOYMENT, TRAINING AND REHABILITATION DIRECTOR'S OFFICE - PAGE 1361 Chairman Tiffany requested explanation regarding the General Fund impact of the director's office portion of the proposed reorganization. Mr. Yasmer and Ms. Jackson indicated they would work with Brian Burke and Paula Steinbauer of the Budget Office and the information would be provided. Chairman Tiffany noted $25,000 was requested for potential ADA (Americans with Disabilities Act) accommodations which the Budget Office did not recommend. Ms. Jackson said the Budget Office did not recommend the funding because there was insufficient historical information to justify the request. Costs will be monitored and next biennium a request would be based on two years of actual costs. Ms. Giunchigliani requested the Department determine how many disabled individuals are currently employed within the Department and ensure they are properly accommodated before deciding to hold the funding request until the next biennium. Ms. Giunchigliani asked whether using the Attorney General's Office rather than private counsel was expected to save $25,000. Ms. Jackson responded the Budget Office has recommended DETR fund 2.25 attorneys general for 1996 and 1997 at a cost of $228,000 in 1996 and $243,000 in 1997. Potential savings would be calculated and provided to the committee. DETR ADMINISTRATIVE SERVICES - PAGE 1367 Chairman Tiffany asked how many of the 28.5 positions requested for Financial Management will be devoted to departmental accounting. Mr. Yasmer said the reorganization created three new budget accounts that layer on top of the other work load performed with cost allocation and it cannot be predicted at this point how many of the positions will be required for departmental accounting. Chairman Tiffany noted the committee would look at how the positions are used with respect to accounting, budget preparation and grant management. Ms. Jackson said detailed questions were difficult to answer because there is no historical information as a total department. Chairman Tiffany noted the organization seemed somewhat top heavy and asked how the number of positions was decided upon. Mr. Orr said 1.5 positions came from the State Job Training Office, one account clerk came from the Nevada Equal Rights Commission, 13 positions came from Rehabilitation and the balance of the 28.5 positions came from Employment Security. It is possible some positions may be relocated over the next two years as the effects of reorganization stabilize. Ms. Giunchigliani asked whether performance indicators had been developed to measure the effects of reorganization. Ms. Jackson responded some of the changes associated with reorganization would reflect outcome, such as the one- stop career centers and the co-locations which involve the agency being more accessible to the community. Performance indicators (blue book) reflect four co- located community service centers in 1995 which have already been accomplished. Co-located service centers are projected at 10 for 1996 and 15 for 1997. Other measurable indicators will include input from customers, employers and legislators. Ms. Giunchigliani asked whether co-location with other family resource centers is contemplated. Ms. Jackson reported co-location with Welfare and other state agencies in Winnemucca is being discussed. Ms. Giunchigliani asked whether DETR has always had an internal personnel department and requested explanation regarding what services an internal personnel department could provide that state personnel could not. Ms. Jackson said state personnel allowed the Department to perform some position reclassifications, do some testing within the agency, add a training section and hire an EEOC officer for the Department. Mr. Allard asked what was required to develop the eligible list referred to in the measurement indicators for Personnel and Training in Exhibit C. Mr. Orr said this indicator evaluates the efficiency with which the personnel unit functions. Ms. Jackson explained when a position becomes vacant the manager notifies the personnel officer of the vacancy. The personnel officer ensures the position is vacant and that money is available to fill it. A job announcement is prepared and any required testing is performed. The process of compiling and ranking a list is very time consuming and the department plans to expedite this process by ensuring all internal personnel paperwork is completed in a timely fashion. DETR INFORMATION AND DEVELOPMENT PROCESSING - PAGE 1373 Chairman Tiffany asked how the agency was able to justify changing the job duties and descriptions of four programmers without the approval of the Interim Finance Committee. Mr. Hanna explained two years ago there were six systems programmers in the Employment Security Division who worked on mainframe applications. When DETR and Information and Development Processing were formed, four vacancies were created because of transfers. At the same time, it was decided to use the Department of Information Service's processor which eliminated the need to fill those four positions with mainframe programmers. The direction of the computer environment has changed from mainframe to local area networks and wide area networks. The six positions now consist of one working supervisor, two positions who support the application development staff, two positions who support the network and one vacancy which is being reclassified to a microcomputer specialist. Mrs. Evans asked whether the Department of Labor had approved the many position transfers taking place within DETR. Ms. Jackson responded she had met with the administrator of Region IX which oversees the Employment Security Division and he saw no problems with any of the reorganization. Mrs. Evans inquired whether Employment Security will continue to pay for the positions being transferred out or whether the General Fund will eventually need to support those positions. Mr. Yasmer reported a plausible cost allocation system has been set up for Information and Development Processing with the concurrent commitment in writing that the agency will carefully work on the cost allocation system over the next two years to improve it and will most likely move toward a fee-for-service concept similar to DIS's methodology so those agencies that require specific services will pay for them. EMPLOYMENT, TRAINING AND REHABILITATION ADMINISTRATION - PAGE 1443 Ms. Giunchigliani requested explanation of the funding request for a Public Service Intern. Mr. Shaw explained the agency is required by the Rehabilitation Act amendments of 1992 to examine the issue of diversity in the state and will be ranked on the issue of diversity. The Public Service Intern will help develop strategies to attain a better representation of minority clients. It is hoped to recruit a disabled minority candidate from a historically black or Spanish college or university with a master's degree in vocational rehabilitation to help evaluate the system. A graduate student who is working on his dissertation in rehabilitation administration will be examining Nevada's data. Ms. Giunchigliani asked that performance indicators be developed showing what percentage of clients are minorities so there will be a basis for justification should the agency request the position be made permanent. Mr. Orr said the request is for a Public Service Intern slot that interns will rotate through. There is no intention to ever turn this into a state position. ALCOHOLISM AND DRUG REHABILITATION - PAGE 1451 Ms. Giunchigliani requested explanation of the elimination of several federal grants and asked whether this program could be offered to prison inmates and whether consideration has been given to consolidating all the drug programs in the state. Mr. Shaw said the agency does work with Prisons and funds their DUI program. The agency is working with Probation and Parole to develop their life skills program and with the Department of Education for drug free schools. Alcoholism and Drug Rehabilitation is privatized and does not provide direct services. Ms. Giunchigliani confirmed the budget needs to be augmented to reflect a grant award of approximately $6.3 million when the Governor's budget reflects $6 million. Ms. Giunchigliani asked what effect losing the federal HIV grant would have on the program. Mr. Shaw said the HIV program can continue but some funds from the federal Substance Abuse Prevention and Treatment (SAPT) grant will be used to compensate for the loss of that funding. Ms. Giunchigliani expressed concern regarding coordinating all the different funding coming into the state for treatment of drug and alcohol abuse. Ms. Jackson agreed it is difficult to know which programs receive federal funding for treatment of drug and alcohol abuse. The agency has requested the federal government provide information regarding which state programs receive funding so that the programs can be coordinated. Mr. Shaw added that focus is on prevention and treatment. He referred to measurement indicators which project an annual decrease in the recidivism rate for Juvenile Justice of 50 percent. Mr. Allard asked why the number of youths served per day, measurement indicator number 1 under Output, is projected to decrease from 1242 to 960. Mr. Shaw responded this results from a loss of federal funding for the drug free school program in the amount of $400,000 and other grants totaling $500,000, both of which will result in a decrease in the number of clients that can be served. DRUG COMMISSION - PAGE 1461 Ms. Giunchigliani asked whether the Drug Commission could be deleted. Ms. Jackson responded negatively but deferred to Julie Payne-Starke, Coordinator of State Substance Abuse Programs. Ms. Payne-Starke reported the Drug Commission provides a report to the Governor each year regarding prevention, law enforcement, treatment and education. The Drug Commission also takes public testimony relative to the need for services and forwards this information to the Governor and department managers. Senator O'Donnell requested a copy of the Drug Commission's report be provided. Ms. Payne-Starke agreed to do so. He indicated he also had questions regarding this budget and asked whether any progress had been made in the war on drugs. Ms. Payne-Starke responded there is an increase in substance abuse and that emphasis on the national level has been to provide services to the hard core drug user. Mrs. Evans pointed out this budget does not have performance indicators. She asked when Edward Byrne Grant funding through the Department of Motor Vehicles will end. Mr. Yasmer said the support to the coordinator is scheduled to expire on June 30, 1995. However, approximately $8,000 in support for the Drug Commission will continue through the Edward Byrne Grant. Mrs. Evans confirmed that to compensate for this loss of funding, Substance Abuse Prevention and Treatment funds from the Bureau of Alcohol and Drug Abuse will be transferred. Mrs. Evans asked whether those funds could be better used for direct services. Mr. Yasmer said they could go for treatment services, however there are provisions in the set-aside for prevention services and the services provided by the drug coordinator's office would perform would be classified as prevention. Mrs. Evans noted it is important to maximize direct services and expressed concern about taking money from prevention and treatment to support another budget. Mr. Yasmer said the alternative would be to request General Fund support. Ms. Jackson said all areas had been explored for continued funding of the Drug Commission and that an area of the SAPT grant allows for funding of the Drug Commission. She noted different performance indicators will be instituted for this budget. VOCATIONAL REHABILITATION - PAGE 1467 Chairman Tiffany requested explanation of the Rehabilitation Act federal basic support grant and asked whether General Fund is required. Mr. Shaw said extended services cannot be provided by Title I money from the Rehabilitation Act. They must be state funding or non-Rehabilitation dollars. A mistake was made in the budget process which previously reflected a match. Chairman Tiffany asked what the dollar value of federal match in decision unit M515 would be. Mr. Yasmer indicated the calculation would be 78.7 percent of $56,160, or $44,198. Chairman Tiffany inquired whether certified funds could be used. Mr. Yasmer responded negatively. Chairman Tiffany asked whether the $44,198 needed to be added to the total General Fund request. Mr. Orr said the General Fund included in this budget is sufficient. The mistake was made in the Budget Office and is merely a technical correction requiring no funding adjustments. Mr. Orr added the critical issue is not the level of match but rather the demand and dollars necessary to meet that demand. In 1992, the Rehabilitation Act was amended which greatly changed the definition of those eligible for the vocational rehabilitation program. In 1994, it was expected to have 1,500 people eligible for the program and there were in fact 2,000. In the coming biennium, 2,500 eligible people are expected. Federal rules require more people be determined eligible which implies a responsibility to provide resources to help those individuals get back to work. SERVICES TO THE BLIND - PAGE 1477 Chairman Tiffany noted a position is requested for an Orientation and Mobility Instructor and asked why the position is needed. Mr. Shaw said Orientation and Mobility Instructors are difficult to find. The process of taking a blind or severely visually impaired person through the rehabilitation process takes 13 months and that process could be expedited by a Mobility Instructor. Chairman Tiffany asked where the position will be located. Mr. Shaw said the one position is in the south; there is already a mobility instructor in the north. Mr. Orr pointed out there are currently two Orientation and Mobility Instructors, one in the northern district office and one in the southern district office. The intention is to add an additional instructor to the Las Vegas office to serve the four southern Nevada counties, based on caseload. Mrs. Evans referred to the program statement which refers to "programs that focus on assessment, training, treatment, placement in employment" and asked how this agency functioned differently from vocational rehabilitation. Mr. Shaw said the funding and federal rules are the same; however, the clientele served is different and has been deemed to require a specialized service. Mrs. Evans indicated she had no quarrel with the need for specialized service; however, the measurement indicators reflect only a few hundred clients served and the budget reflects 30 employees required to serve this clientele. She questioned why these services could not be a part of Vocational Rehabilitation to eliminate duplication of administrative costs and added this seemed to be a logical part of the reorganization of DETR. Mr. Shaw said this combination has been attempted three times and has been unsuccessful. He added that every state with separate agencies is considering combining the two and every state with combined agencies is considering separating them. However, blind clients feel whenever the two agencies are combined, services to the blind suffer. Reorganization accomplished consolidation of many employment and training programs that were scattered through the state agencies and Vocational Rehabilitation and Services to the Blind have essentially identical vocational rehabilitation programs. Strictly from a management efficiency standpoint, the two agencies could be combined. Mr. Allard said performance indicators reflect the agency serves 80 clients per counselor and noted the projection is 66 clients per counselor. Mr. Shaw said he would correct the error. SOCIAL SECURITY ADMINISTRATION - VOCATIONAL REHABILITATION - PAGE 1495 Mr. Shaw pointed out the Drug Abuse and Alcohol Program is run by Social Security and said the agency became involved in this program to ensure that an individual addicted to drugs or suffering from alcoholism did not receive public assistance without participating in a treatment program. The federal government would like to significantly expand this program and the potential impact on Nevada would be to require funding to be raised from $100,000 to nearly $1 million. The program also would become more punitive. The private sector operates this program in more than 30 states and the agency has determined Nevada would be better served by allowing the private sector to provide these services. This information was not available at the time the budget was built so the budget does need to be adjusted to account for this program being taken over by the private sector. DEVELOPMENTAL DISABILITIES - PAGE 1511 Chairman Tiffany requested explanation of the one-shot appropriation in Senate Bill 216. Mr. Orr read the enactment from the bill and added the appropriation is to support the Developmental Disabilities program's most recent efforts in the development of affordable housing initiatives coupled with the supportive housing concept whereby people with disabilities would have on-site access to assistance with the activities of daily living. Mr. Shaw said this would help capture federal dollars. In Las Vegas, property was being donated by either the city or county and a 28 unit apartment complex will be built and will subsidize rents for 20 years. Complexes for Reno and Carson City and a second complex in Las Vegas are planned. This will bring $1.2 million in federal housing funds to be leveraged per apartment complex and will total approximately $12 million overall. FINANCIAL ASSISTANCE TO THE PHYSICALLY DISABLED - PAGE 1517 Chairman Tiffany asked why the state has the responsibility to provide employees of United Cerebral Palsy with a pay raise and medical benefits. Mr. Shaw said United Cerebral Palsy pays those employees with money granted from the program which provides in-house support up to 28 hours per week to enable people to remain out of institutions. Mr. Shaw said the program has saved more than $8 million since 1986. The pay increase and medical benefits will allow the agency to be competitive with entry level casino positions in southern Nevada. Employees in northern Nevada are already at that level. Chairman Tiffany expressed the opinion that using General Fund to subsidize pay raises and medical benefits appeared to be inappropriate. TRAUMATIC HEAD INJURY PROGRAM - PAGE 1519 Ms. Giunchigliani noted the budget reflects a continuation of the program at 1993- 94 actual levels. Mr. Shaw concurred and noted this is another program offered through the private sector which saved a large amount of money in Medicaid and SIIS dollars. Ms. Giunchigliani inquired whether this program included respite care. Mr. Shaw responded it includes day care but does not provide respite care. HEARING DEVICES PROGRAM - PAGE 5123 Chairman Tiffany asked how cost allocation would be performed for the coordinator for deaf services position. Mr. Yasmer said the cost allocation would take place in budget account 3266, Community Based Services, on the basis of the FTE total divided on a percentage basis between the budgets. With no further business to come before the committee, Chairman Tiffany closed the hearing at 10:58 a.m. RESPECTFULLY SUBMITTED: Deborah Salaber, Committee Secretary Joint Subcommittee on General Government Assembly Committee on Ways and Means and Senate Committee on Finance March 21, 1995 Page