MINUTES OF THE SENATE COMMITTEE ON FINANCE Sixty-eighth Session April 5, 1995 The Senate Committee on Finance was called to order by Chairman William J. Raggio, at 8:00 a.m., on Wednesday, April 5, 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 Jeanne L. Botts, Program Analyst Marion Entrekin, Committee Secretary OTHERS PRESENT: Gary Crews, Legislative Auditor, Audit Division, Legislative Counsel Bureau Tim Brown, Chief Deputy Legislative Auditor, Legislative Counsel Bureau Peter G. Morros, Director, State Department of Conservation and Natural Resources Mike Alastuey, Assistant Superintendent for Business, Clark County School District Henry Etchemendy, Executive Director, Nevada Association of School Boards R. Michael Turnipseed, State Engineer, Division of Water Resources, State Department of Conservation and Natural Resources Brenda J. Erdoes, Legislative Counsel, Legal Division, Legislative Counsel Bureau Freeman K. Johnson, Chief Personnel Manager, Technical Services, Department of Personnel Senator Raggio requested introduction of the following bill draft request (BDR). BILL DRAFT REQUEST S-1831: Makes supplemental appropriation to department of administration for personnel expenses of office of internal audits. SENATOR RAWSON MOVED TO INTRODUCE BDR S-1831. SENATOR RHOADS SECONDED THE MOTION. THE MOTION CARRIED. (SENATORS MATHEWS AND O'DONNELL WERE ABSENT FOR THE VOTE.) * * * * * Senator Raggio opened the hearing for discussion of Amendment No. 202 to Senate Bill (S.B.) 220 which was heard in the Senate Committee on Finance on March 27, 1995, and amended and do passed on March 30, 1995. He explained Amendment No. 202 will amend the bill as a whole by renumbering section 1 and section 2 and adding a new section. SENATE BILL 220: Makes various changes to provisions relating to expenditure of money for state parks. Dan Miles, Fiscal Analyst, Fiscal Analysis Division, Legislative Counsel Bureau (LCB) said Amendment No. 202 will modify S.B. 220 for improvement to Nevada's state parks. He pointed out the Question 5 bond statute reflected in section 1 was changed to allow the Division of State Parks to expend an additional $14,000 for the preparation of plans and feasibility studies, and deletes $14,000 from the acquisition portion of the bond issue. Instead of a lump-sum appropriation of $1 million, Mr. Miles explained section 1 has also been amended to break out the $1 million appropriation for disbursement (by the Division of State Parks) to seven parks within the state, and for the purchase of new and replacement equipment for the state parks. Senator Rawson asked if Amendment No. 202 changes the original priorities set out in S.B. 220. Jeanne L. Botts, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, responded there was a reduction in the number of firearms approved for use by the Division of State Parks amounting to approximately $17,000. In general, Ms. Botts reported the original intent of S.B. 220 has not been changed. She said she has a chart reflecting the original projects under the jurisdiction of the Division of State Parks including all of the changes that have been made to date. She said she will furnish an updated version of the chart to the committee. Senator Rawson asked if the amendment will provide additional latitude to the Division of State Parks to use the $1 million appropriation for a project of their choice. Ms. Botts responded in the affirmative and commented the amendment also provides authority for the division to substitute projects. Mr. Miles said section 3 of S.B. 220 clarifies how park projects will be closed at the end of the biennium, and section 4 contains a provision to allow the Interim Finance Committee to move funds for park projects or broaden the scope of a new project if funds are saved from an existing project. Senator O'Donnell arrived for the meeting at 8:17 a.m. Senator Raggio invited Gary Crews, Legislative Auditor, Audit Division, Legislative Counsel Bureau (LCB) to review Exhibit C, Legislative Audit Report on the Division of Forestry. (Exhibit C: On file in the Research Library.) Mr. Crews provided testimony to the committee by reading from pages 1 - 2 of Exhibit C. He introduced Tim Brown, Chief Deputy Legislative Auditor, Legislative Counsel Bureau, who highlighted the major points contained in Exhibit C as written on pages 10 -18. Senator Mathews arrived for the meeting at 8:25 a.m. Referring to a list of inappropriate billings shown on page 18 of the exhibit, Senator Raggio asked if any of the lost revenue is recoverable by submitting corrected billings to the federal agencies involved to recover the lost funds. Mr. Crews responded the division has already started a recovery action. Mr. Brown continued coverage of Exhibit C by highlighting pertinent information as written on pages 18 - 21. Senator Raggio asked if the Interim Finance Committee authorized adjustments to the Division of Forestry's budget at some point. Mr. Crews pointed out the adjustment was authorized in Fiscal Year 1994 - 1995, but the audit report being discussed today refers to Fiscal Year 1993 - 1994. Mr. Brown concluded his presentation from written text reflected on pages 22 - 28 of Exhibit C. He pointed out page 32 provides a list of seven audit recommendations, and page 31 is a copy of the division's response reflecting their acceptance of all seven recommendations. Peter G. Morros, Director, State Department of Conservation and Natural Resources, reiterated the division has accepted all of the findings and recommendations outlined in the audit report (Exhibit C). Senator Raggio asked what plans are underway to implement the recommendations. Mr. Morros distributed Exhibit D, Audit Correction Plan, Fiscal and Fire Business Management, dated March 27, 1995, and stated the division is working on this plan on a daily basis to accomplish the recommendations made by the Audit Division. Senator Raggio noted the first part of the audit dealt with inappropriately submitted billings to the federal government. He asked what portion, if any, can be recovered by the use of corrective billing action. Mr. Morros responded the division will attempt to collect as much lost revenue as possible. He stated, "We will aggressively pursue collection action, and I anticipate the division will have substantial success." Senator Raggio asked the target date the division has set to complete the recovery action, and Mr. Morros replied within the next 3 months. He said new financial management staff will be on duty by April 15 to assist in the collection endeavor. He pointed out financial management in the Division of Forestry had been carried out in the past by inexperienced personnel such as fire fighters, law enforcement personnel, and fire management individuals with no training or background in accounting or budget management. Senator Raggio asked why the division did not recognize the problems that started as far back as 1971 and ask for assistance from the department. He opined somebody should have understood they were not capable of handling the financial management aspects of the division. Mr. Morros replied it is difficult for him to respond to conditions that existed prior to his taking over as the director of the department in 1990. He agrees the establishment of financial management staff in the division should have been aggressively pursued. He explained 2 years ago the problem was called to his attention, but as a result of budget cuts and budget balancing, the division lost an Assistant Forester position and a Management Assistant II position the division could not replace with additional accounting personnel. Senator Raggio asserted due to the amount of revenue involved, someone should have spoken to the Governor or the Budget Division. Mr. Morros affirmed it was discussed with the Budget Division. Senator Raggio noted concerns regarding the length of time it has taken the division to reimburse vendors and the delay in reimbursing (fire fighting) crews have been brought to the attention of the committee members. He asked what immediate plans are underway to resolve these concerns. Mr. Morros responded one of the reasons the division requested the passage of Assembly Bill (A.B.) 129 for a supplemental appropriation is to hire additional staff before the start of the 1995 fire season. He assured Senator Raggio the division intends to have controls in place by the time the 1995 fire season starts to provide for timely billing payments and the payment of wages due fire fighting crews. ASSEMBLY BILL 129: Makes supplemental appropriation to state department of conservation and natural resources for additional staff and equipment for state administrative offices. Senator Raggio asked if the positions have been recruited and will be on duty by April 15, 1995. He also asked if the individuals will have the qualifications necessary to process billing payments and wages due fire-fighting crews in an expeditious manner. Mr. Morros reiterated the division intends to have the positions on line by April 15, 1995 and they will be qualified to address Senator Raggio's concerns. Senator Raggio remarked, "This is one of the worst audits I have seen from the time I have served on the Senate Committee on Finance. Particularly the invoice splitting that violates the clear law of the state." He asked Mr. Crews if the Audit Division has reviewed the Audit Correction Plan (Exhibit D) submitted by the division. Mr. Crews answered in the affirmative. He explained there is a refined plan due in the Audit Division in 60 days and in another 6 months, the Department of Administration will be required to determine if the recommendations have been implemented. Senator Raggio requested the Audit Division to monitor the recommendations given to the Division of Forestry, and be of assistance to them if necessary. He urged the Audit Division not to delay reporting any deviation to the division's Audit Correction Plan to the Interim Finance Committee (IFC). Mr. Morros interjected the financial management of the Division of Forestry will be moved to the director's office under the supervision of the department's chief administrative officer. Senator Coffin noted one of the major defects determined by the audit was the division's failure to properly bill the federal government. He inquired if anything is being done at the federal level to ease the burden of states with paperwork problems that ensue during the fire season when the priority is given to combating fires and not to processing paperwork. He pointed out there must be other western states who have the same problems during the fire season. He remarked, "I cannot imagine they would not have the problem unless they are overstaffed." Mr. Morros replied personnel from the Division of Forestry are meeting today with representatives of both the United States Bureau of Land Management and the United States Forest Service. The federal representatives will be given a copy of the audit report (Exhibit C) to inform them of the division's collection efforts for past services provided in the areas identified as being deficient. Mr. Morros also wished to point out the division will be more aggressive about reviewing, on a yearly basis, their financial- management plan with the federal agencies. He said the division sent one invoice to the United States Forest Service for $58,000 reflecting a 37 percent overhead charge suggested in the audit report (rather than 18 percent charged in the past) and it was paid. Senator Coffin asked if there is a contingency plan in place to be used by the division to address problems that may arise during the fire season. Mr. Morros answered the division is looking into contracting financial personnel to assist during the 6-month fire season. He said when a major fire starts the division's payroll increases from 20 to 500 personnel, and this requires financial control and support. Senator Jacobsen suggested the personnel within the Division of Forestry be kept informed regarding the status of the division's compliance to the recommendations set forth in the audit report. Mr. Morros responded the department is providing regular feedback to the Division of Forestry regarding compliance to the Audit Correction Plan. Senator Raggio opened the hearing for discussion of Senate Bill (S.B.) 243. SENATE BILL 243: Revises provisions governing orders for payment of money belonging to school district. Mike Alastuey, Assistant Superintendent for Business, Clark County School District, testified S.B. 243 was requested by the Clark County School District to authorize a local school board to establish procedures to streamline the payment of goods and services to the districts. The current law requires payments to be approved by a majority of the board and signed by the board's president and clerk or by a majority of the board. He said it is not always possible to delay payment until the board approves the payment and the board's president and clerk are available to sign the cumulative voucher sheets. There are some instances in which payment must be made immediately. Mr. Alastuey said in the interest of making certain all possible constituencies are satisfied, he asked that action be withheld on S.B. 243 until the Clark County School District has an opportunity to receive direct input from the Nevada Taxpayers Association to be certain all aspects of the language provides for proper accountability. Henry Etchemendy, Executive Director, Nevada Association of School Boards, said S.B. 243 will have the support of the association because the bill is permissive and the present process, where the cumulative voucher sheets are approved each time, might be workable in many of the districts. Therefore, when the procedures are ratified the districts need only adopt the procedures of the current law and continue with the present process, Mr. Echemendy said. Senator Raggio closed the hearing on S.B. 243 and opened the hearing for discussion of Senate Bill (S.B.) 77. SENATE BILL 77: Requires state engineer to establish program to map water rights. R. Michael Turnipseed, State Engineer, Division of Water Resources, State Department of Conservation and Natural Resources, testified S.B. 77 provides an appropriation of $110,000 to map water rights on a geographic information system, giving first priority to water rights in the Truckee River. The appropriation may only be used in the first year of the biennium, Fiscal Year 1995 - 1996. Exhibit E, a geographic map, Truckee River Claims 113 and 114, was distributed to the committee and highlighted by Mr. Turnipseed. Mr. Turnipseed said the $110,000 appropriation would continue a program which began in September, 1994, when the IFC authorized the Division of Water Resources to accept $110,000 from the Carson-Truckee Water Conservancy District to develop Truckee River Water Appurtenance Maps. The grant was to provide $35,000 in each of 2 years (Fiscal Year 1994 - 1995 and Fiscal Year 1995 - 1996) to employ an Engineering Technician III for 2 years to be assigned to Washoe County. In addition, $40,000 was to be passed through the Division of Water Resources to Washoe County to purchase computer software and hardware. Mr. Turnipseed stated it will take about 2 years to complete the project. Senator Rawson suggested a detailed-projected budget should be established for the program to map water rights. Mr. Turnipseed replied at this point the $110,000 is a one-shot appropriation to match the funding provided by the Carson-Truckee Water Conservancy District. He also pointed out a current personnel turnover is taking place with the technical staff, but once the equipment is purchased and the individuals are trained, an additional appropriation should not be necessary. Senator Rawson noted, if approved, S.B. 77 will appropriate the funding required to complete only a portion of the water rights program. However, he is concerned with the scope of the project over the next 5 or 6 years in terms of the ultimate cost to the state. Mr. Turnipseed answered the $110,000 is a one-shot appropriation to purchase equipment, and train one Engineering Technician III who will train other technicians. The $110,000 provides $35,000 in each of the next 2 years to employ the Engineering Technician III, and through attrition the department will assimilate the employee into the department's normal budget, and no additional funding will be required. Ms. Botts recalled Mr. Turnipseed came before the IFC in September, 1994 and received the authority to accept a $110,000 grant she understood would cover the salary of the Engineering Technician III for Fiscal Year 1994 - 1995 and Fiscal Year 1995 - 1996. She pointed out he is now requesting a one-shot appropriation to fund the salary for 2 years. She indicated her confusion about the years being funded and said S.B. 77 has a reversion date of 1996. Mr. Turnipseed responded the $110,000 grant from the Carson-Truckee Water Conservancy District was used to hire the Engineering Technician III who is being trained in Washoe County at the present time. The $110,000 one-shot appropriation proposed by the passage of S.B. 77 will allow the department to hire an additional individual to complete the Washoe County program in 2 years. Senator Raggio closed the hearing on S.B. 77 and opened the hearing for discussion of Assembly Bill (A.B.) 31. ASSEMBLY BILL 31: Repeals state forester firewarden's revolving account. Mr. Morros stated the passage of A.B. 31 will repeal Nevada Revised Statutes (NRS) 472.045 which authorizes the state forester firewarden to maintain a revolving account of $5,000 to pay temporary labor hired to fight fires or for other obligations requiring prompt payment in connection with emergencies. Mr. Morros said the account is no longer needed since it is now possible to promptly pay temporary labor and vendors utilizing the same procedures as those by which other claims against the state are paid. Also, the amount of funding available is not sufficient to cover expenses related to fires or other emergencies. Mr. Morros pointed out the account has not been utilized for over 1 year and has been closed. The $5,030.92 balance in the revolving account was transferred to the Forest Fire Suppression budget account and then placed in the General Fund at the end of the 1993 - 1994 Fiscal Year. Senator Raggio closed discussion of A.B. 31 and opened the hearing regarding Assembly Bill (A.B.) 32. ASSEMBLY BILL 32: Makes appropriation to legislative counsel bureau for reproduction of older Nevada Reports. Brenda J. Erdoes, Legislative Counsel, Legal Division, Legislative Counsel Bureau, testified passage of A.B. 32 will appropriate $45,000 for the cost of reproduction of older Nevada reports that are currently not in stock. She said Nevada Revised Statutes (NRS) 345-025 requires the LCB to produce, warehouse and sell Nevada reports which are volumes containing the cases decided by the Nevada Supreme Court. Historically, a biennial appropriation is provided to print the volumes which are in short supply or out of print. The cost of producing and selling the volumes is recovered through the sale of those volumes with the proceeds deposited for credit to the state General Fund. Senator Coffin asked the purchase price for a report. Ms. Erdoes replied the cost for an older volume is $13.50, and a newer volume is $26. Senator Coffin asked if the LCB investigated the cost of printing constitutional debates and proceedings, and Mrs. Erdoes replied in the affirmative. She stated the cost will be $9,170 to print 300 copies. She stated the $9,170 is committed revenue from a previous biennium's appropriation approved by the Legislature. Senator Coffin asked if a cost estimate was obtained from the University of Nevada Press, and Ms. Erdoes replied this source will be investigated. Senator Raggio closed the hearing on A.B. 32 and opened the hearing for discussion of the review of the Department of Personnel Occupational Studies. Freeman K. Johnson, Chief Personnel Manager, Technical Services, Department of Personnel, stated he would respond to any questions the committee may have regarding the conduct of occupational studies. Senator Jacobsen opined there are many unqualified individuals presently working in some of the state agencies. He asked if the Department of Personnel oversees the selection of qualified candidates. Mr. Johnson replied it is not the responsibility of the Technical Services Division to review the qualifications of individuals selected for placement in a state job. Instead, the division assists in the development of minimum qualifications and standards for the positions housed in the various agencies. The division develops position descriptions and class specifications. Senator Jacobsen remarked it is difficult to determine if a salary increase or position upgrade is granted because the responsibility for the particular position has increased, or the qualifications for the position have increased. Mr. Johnson responded there are occasions when upgrades are the result of an increase in responsibility due to technology and changes, or reorganizations that occurred within the organization. Senator O'Donnell recalled a situation that developed in the Employment Security Division (ESD) involving four Systems Analyst positions that, due to attrition, were deleted creating four vacancies. The ESD transferred their mainframe operation to another division, but the four positions remained open and four "computer experts" were subsequently hired to perform functions which were not in the current job descriptions for those four positions. He asked if the Technical Services Division is responsible for correcting job descriptions when the duties of the position change. Mr. Johnson stated the division is required to conduct periodic reviews of position classifications specifications as part of an occupational study process that was mandated by the Legislative Audit Committee in 1982. In terms of an ongoing oversight of the utilization of those positions allocated to the various agencies, the division engages in periodic occupational studies to confirm that position relationships to one another and to similar positions within the state service remain on par to preserve the parity that exists. Mr. Johnson said the division recently completed a data processing occupational group study, and distributed Exhibit F to the committee reflecting the outcome. Senator O'Donnell believes the four individuals recently hired to fill the positions at the ESD were hired at a higher salary level than necessary. He asked that a review be made of the four positions to assure their salary levels are in accordance with the requirements of the position descriptions. Senator Raggio asked how a determination is made to ascertain which occupational group should be studied. Mr. Johnson responded when the process of occupational studies was first implemented, the recommendation was to conduct them on a rotational basis according to a schedule. He referred the committee to Exhibit G, Overview of Occupational Group Classification Studies, reflecting the frequency of occupational reviews conducted. Museums and History - Page 397 Bob Guernsey, Principal Deputy Fiscal Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, pointed out many of the budgets that will be discussed today contain technical corrections requiring adjustments for items such as utilities and fringe benefit costs, and the adjustments will be reflected in the remarks portion of the respective Budget Closing Action Sheet (Exhibit H). Mr. Guernsey referred the committee to page 1 of Exhibit H denoting a correction in the number of board meetings to be held each year from six to four. The resulting budget adjustment was made to reflect two less board meetings and staff travel to the two meetings amounting to $4,956 for each year of the biennium. SENATOR RAWSON MOVED TO CLOSE THE BUDGET AS ADJUSTED IN ACCORDANCE WITH STAFF RECOMMENDATIONS FOR BUDGET PAGE 397 OF EXHIBIT H. SENATOR O'DONNELL SECONDED THE MOTION. THE MOTION CARRIED. (SENATOR MATHEWS WAS ABSENT FOR THE VOTE.) * * * * * State Museum, Carson City - Page 401 Mr. Guernsey said an adjustment not contained within the Budget Closing Action Sheet in Exhibit H involves recommended new positions. He explained some of the analysts in the Budget Division started new positions for Fiscal Year 1995 - 1996 on October 1, but the start date recommended for positions reflected in the budgets exhibited in Exhibit H is July 1. Mr. Miles reminded the committee in 1993 the Budget Division and the Legislature agreed to fill new positions commencing on October 1. He stated there are occasions when a critical position may need to be filled by July 1, and this can still be accomplished if necessary. Senator Raggio suggested the staff's recommendation that all budgets provide for positions to be filled by October 1 be adopted unless a critical position is required to be filled earlier. He reiterated as the budgets are closed, the October 1 date for filling of positions will be understood. Mr. Guernsey continued testimony by referencing items 1 - 4 of Exhibit H. Mentioning item 2 of Exhibit H, Senator Raggio noted the budget director furnished the committee with a list of the inflationary utility costs for all of the budgets. He asked if the list has been incorporated into the budget closings. Mr. Guernsey said all of the inflationary utility costs have been included unless an error was detected, in which case an annotation was made on the budget's closing action sheet. Senator Rawson asked if a running total has been maintained reflecting the savings in position costs for positions filled on October 1 instead of July 1. Mr. Guernsey said he will furnish the committee with the amount of savings generated due to the change to October 1 for filling of most positions. He stated he will keep the committee apprised of positions filled on July 1 due to critical need. SENATOR RAWSON MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS ON BUDGET PAGE 401 OF EXHIBIT H. SENATOR O'DONNELL SECONDED THE MOTION. THE MOTION CARRIED. (SENATOR MATHEWS WAS ABSENT FOR THE VOTE.) * * * * * Nevada Historical Society - Page 407 Mr. Guernsey reviewed items 1 - 2 of the budget closing sheet with the committee. He pointed out item 3 is for the edification and consideration of the committee when the unclassified pay bill is discussed. He clarified the agency requested special salary adjustments for the administrators of the historical society and the Las Vegas museum. SENATOR RAWSON MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS REFLECTED ON BUDGET PAGE 407 OF EXHIBIT H. SENATOR JACOBSEN SECONDED THE MOTION. THE MOTION CARRIED. (SENATOR MATHEWS WAS ABSENT FOR THE VOTE.) * * * * * Nevada State Railroad Museum - Page 411 Mr. Guernsey provided an explanation to the committee of items 1 - 3 of Exhibit H, page 4. SENATOR RAWSON MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH STAFF PROPOSALS ON BUDGET PAGE 411 OF EXHIBIT H. SENATOR O'DONNELL SECONDED THE MOTION. Senator Jacobsen requested that a letter of intent be included for inmate participation for grounds maintenance. THE MOTION CARRIED. (SENATOR MATHEWS WAS ABSENT FOR THE VOTE.) * * * * * Railroad Depot - East Ely - Page 415 Mr. Guernsey said the only adjustment that is required for the budget pertains to the utility increase for Fiscal Year 1996 - 1997 in the amount of $108. The utility adjustment was included for Fiscal Year 1995 - 1996. Senator Rawson expressed his concern regarding the railroad depot. He said the accumulation of railroad equipment housed at the East Ely site is probably one of the oldest and most complete collections in the country. He believes revenue should be appropriated to maintain the collection for future generations to enjoy. He suggested the state perform a survey of the site and develop a 10-year stabilization plan. Senator Raggio stated budget action will be held pending a report regarding the maintenance of the railroad museum site. Senator Jacobsen suggested inmate crews could utilize a portion of the railroad museum facility for a work area on the days tourists are not visiting the site to perform maintenance work on the grounds and equipment. Senator Raggio concurred inmate crews would be of tremendous value, and asked Senator Jacobsen to arrange for the inmate crews to work at the site. State Museum, Las Vegas - Page 419 Mr. Guernsey highlighted the suggestions reflected on page 6 of Exhibit H with the committee. Senator Rawson asked if the Las Vegas museum is understaffed. Mr. Guernsey replied the director of the Division of Museums and History indicated all state museums are understaffed, but the director's main concern is to see that the museum director's are adequately compensated. Senator Coffin recalled decision module E-475 indicated the agency requested two positions. He asked Mr. Guernsey to explain the purpose of the new positions. Mr. Guernsey responded the additional staffing the agency requested is a half-time Administrative Aide for clerical support and a full-time Curator for Earth Science. The positions were not recommended. SENATOR RAWSON MOVED TO CLOSE THE BUDGET AS RECOMMENDED BY STAFF ON BUDGET PAGE 419 OF EXHIBIT H. SENATOR RHOADS SECONDED THE MOTION. THE MOTION CARRIED. (SENATOR MATHEWS WAS ABSENT FOR THE VOTE.) * * * * * Lost City Museum - Page 423 Mr. Guernsey reviewed the budget closing action sheet reflecting technical corrections and adjustments from page 7 of Exhibit H. SENATOR RAWSON MOVED TO CLOSE THE BUDGET AS PROPOSED BY STAFF ON BUDGET PAGE 423 OF EXHIBIT H. SENATOR O'DONNELL SECONDED THE MOTION. THE MOTION CARRIED. (SENATOR MATHEWS WAS ABSENT FOR THE VOTE.) * * * * * Senator Jacobsen recalled the Lost City Museum was a favorite project of the late Senator B. Mahlon Brown and suggested a plaque be installed at the museum in his memory. Senator Raggio agreed the suggestion should be pursued. Comstock Historic District - Page 427 Mr. Guernsey stated the agency requested $12,000 each year as a General Fund appropriation to reprint approximately 10,000 copies of the Comstock Tour Brochure, but the Governor has recommended no funding be approved for this project. Mr. Guernsey suggested the agency may want to consider funding half the cost, or $6,000, to print approximately 5,000 brochures and charge a sufficient amount to offset the remainder of the printing costs. Mr. Guernsey also suggested a funding source may be the Division of Tourism budget. Senator Raggio asked what is the likelihood of the public purchasing the brochures. Mr. Guernsey replied the brochure is a good one that should sell at a minimum charge to offset the printing costs. Senator Raggio stated the budget will be held in order to include an adjustment for revenue and an offsetting adjustment for the expenditure. He asked that a copy of the brochure be obtained for the committee's review. Historic Preservation/Archeology - Page 431 Mr. Guernsey stated there were no adjustments made for the budget, but alerted the committee there may be possible future adjustments for the Statewide Cost Allocation and final State-Owned Building Rent. Senator Coffin noted there has been considerable discussion regarding decision module E-475 in which the agency requested $10,000 each year to repair approximately 10 percent of the statewide historic markers. The Governor recommended only $1,000 be appropriated. The agency said there are 250 markers and 200 require repair. Senator Coffin supported the agency's request in the amount of $10,000 each year to repair the markers. Senator Raggio referenced a memorandum contained in Exhibit H from Mr. Ron James, State Historic Preservation Officer, dated January 24, 1995, regarding the historical marker program in which it was indicated approximately $100,000 will be needed to complete the repair work. Mr. Guernsey said $100,000 would restore 200 of the markers that are in serious need of repair, but $10,000 per year would assist the agency in starting the repair project to about 20 markers. Senator Raggio agrees the historical markers are in need of repair. He suggested the Division of Tourism budget may be a source from which to draw $10,000 per year to begin the project. Senator Rawson suggested repair to the markers can be done by the prison industries program. He feels a long-term project should be established with prison industries for repair and maintenance of the state's historical markers, and recommended $10,000 be allocated from the Division of Tourism budget to begin the project. Senator Raggio asked Senator Rawson to determine if the marker repair project can be implemented at the Nevada State Prison. SENATOR RAWSON MOVED TO CLOSE THE BUDGET AS RECOMMENDED BY STAFF ON BUDGET PAGE 431 OF EXHIBIT H, THE TRANSFER OF $10,000 IN EACH YEAR OF THE BIENNIUM FROM THE DIVISION OF TOURISM BUDGET TO DECISION UNIT E-475, AND THE DELETION OF $10,000 FROM THE GENERAL FUND. SENATOR O'DONNELL SECONDED THE MOTION. THE MOTION CARRIED. (SENATOR MATHEWS WAS ABSENT FOR THE VOTE.) * * * * * Senator Raggio opened the meeting for discussion of Bill Draft Request (BDR) 18- 1796. BILL DRAFT REQUEST 18-1796: Combines commission on economic development with commission on tourism. SENATOR RAWSON MOVED TO INTRODUCE BDR 18-1796. SENATOR JACOBSEN SECONDED THE MOTION. THE MOTION CARRIED. (SENATOR MATHEWS WAS ABSENT FOR THE VOTE.) * * * * * Senator Raggio adjourned the meeting at 9:50 a.m. RESPECTFULLY SUBMITTED: Marion Entrekin, Committee Secretary APPROVED BY: Senator William J. Raggio, Chairman DATE: Senate Committee on Finance April 5, 1995 Page