MINUTES OF THE JOINT MEETING OF SENATE COMMITTEE ON FINANCE AND ASSEMBLY COMMITTEE ON WAYS AND MEANS Sixty-eighth Session April 17, 1995 The joint meeting of the Senate Committee on Finance and the Assembly Committee on Ways and Means was called to order by Chairman William J. Raggio, at 10:00 a.m., on Monday, April 17, 1995, in Room 119 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. Exhibit B is the Attendance Roster. SENATE COMMITTEE MEMBERS PRESENT: Senator William J. Raggio, Chairman Senator Lawrence E. Jacobsen Senator Bob Coffin Senator William R. O'Donnell Senator Dean A. Rhoads Senator Bernice Mathews ASSEMBLY COMMITTEE MEMBERS PRESENT: Mr. John W. Marvel, Chairman Mrs. Jan Evans, Vice Chairman Ms. Sandra Tiffany, Vice Chairman Mr. Dennis L. Allard Mrs. Maureen E. Brower Mrs. Vonne Chowning Mr. Jack D. Close Mr. Joseph E. Dini, Jr. Mr. Thomas A. Fettic Ms. Chris Giunchigliani Mr. Lynn Hettrick Mr. Bob Price Mr. Larry L. Spitler SENATE COMMITTEE MEMBERS ABSENT: Senator Raymond D. Rawson, Vice Chairman (Excused) ASSEMBLY COMMITTEE MEMBERS ABSENT: Mr. Morse Arberry, Jr., Chairman STAFF MEMBERS PRESENT: Dan Miles, Fiscal Analyst Mark Stevens, Fiscal Analyst Bob Guernsey, Principal Deputy Fiscal Analyst Gary Ghiggeri, Principal Deputy Fiscal Analyst Judy Jacobs, Committee Secretary Jonnie Sue Hansen, Committee Secretary Senator Raggio announced the meeting was being held to consider differences in budgets which have been closed by the two committees. He noted many of the budgets depicted on the closing report (Exhibit C. Original is on file in the Research Library.) dated April 16, 1995, have already been closed by the respective committees. He asked the joint committee to consider the first item in which concurrence has not been achieved. Office of Extradition Coordinator - Page 61 Mark Stevens, Fiscal Analyst, explained there are two positions in the account, a program officer and a support position, and $947 is included in the base budget in each year to allow the program officer to attend the national meeting for extradition coordinators. He pointed out an additional $947 is included in the first year of the biennium to allow the support position to attend the national meeting. He said the Assembly Committee on Ways and Means felt it was appropriate for the program officer to attend, but not the support position. SENATOR COFFIN MOVED TO CONCUR WITH THE ASSEMBLY COMMITTEE ON WAYS AND MEANS. SENATOR O'DONNELL SECONDED THE MOTION. THE MOTION CARRIED. (SENATOR RAWSON WAS ABSENT FOR THE VOTE.) BUDGET CLOSED. * * * * * Committee on Postsecondary Education - Page 279 Dan Miles, Fiscal Analyst, reported the Senate Committee on Finance has moved to close the budget by the removal of $1,600 for maintenance charges on computers in the first year of the biennium. Mr. Stevens stated the Assembly Committee on Ways and Means closed the budget by removal of $1,600 in each year of the biennium. He explained the committee has determined the action is appropriate to attempt to save expenses by pooling maintenance funds for all personal computers in a central pool rather than providing maintenance for each individual computer in each budget. Mr. Stevens reported the committee recognizes a number of changes in each budget will be required to pool the maintenance for computers and decided to send a letter of intent to the Executive Branch to include a personal computer maintenance pool in the plan for the next biennium. Mr. Stevens said the Assembly Committee on Ways and Means has not made a determination as to whether maintenance costs for new personal computers should be approved. Senator Raggio pointed out the maintenance charge will be covered during the warranty period under the one-shot appropriation to purchase new computers. Mr. Marvel stated the budget should be held until a consensus regarding future maintenance contracts is achieved. Senator Raggio agreed to hold the budget. Nevada State Museum - Page 401 Mr. Miles reported the Senate Committee on Finance reopened the budget earlier in the morning and increased the admission revenue and decreased the General Fund revenue by a like amount. Senator Raggio and Mr. Marvel agreed the two committees have each closed the budget in accordance with the other. BUDGET CLOSED. * * * * * Historic Preservation & Archeology - Page 431 Mr. Miles indicated the Senate Committee on Finance added funding for the Historical Marker Program in the amount of $10,000 in each year of the biennium using a transfer from the Division of Tourism as a funding source. Mr. Stevens reported the Assembly Committee on Ways and Means reduced the General Fund by $9,900 in the first year of the biennium and by $11,100 in the second year of the biennium by utilizing a federal Historic Preservation grant to fund its share of decision unit M-300. He noted the Executive Budget recommends an appropriation of 100 percent from the General Fund for the M-300 decision unit which can be split with 60 percent federal funding and 40 percent state funding. He stated the committee received a letter from the agency which shows that is permissible. Mr. Stevens said $1,000 was eliminated in each year of the biennium from the Historic Marker Program and the Assembly Committee on Ways and Means recommends that $20,000 from the General Fund be provided in a one-shot appropriation for that program. Senator Raggio asked if the M-300 information was provided to the Senate Committee on Finance. Mr. Miles affirmed the letter has not been provided to the Senate committee. Senator Raggio inquired if the Assembly action increases the federal grant by the respective amounts because there are additional federal funds available for Historic Preservation, and if the action reduces the General Fund. Mr. Stevens confirmed the query. Senator Raggio stated the Senate has agreed some meaningful attention should be given to the Historical Marker Program rather than just a token approach, but without the necessity of committing General Funds. He noted the committee feels the use of tourism funds is justified for the program. Mr. Price asked if the transfer of $10,000 from tourism is due to the proposed combining of the two commissions. Senator Raggio answered, "No." Ms. Giunchigliani said the one-shot appropriation is being proposed because the funding for the markers is needed as soon as possible. She suggested the new-found federal funds will equal the proposed funding from tourism, making no additional impact on the General Fund. She declared a transfer from the Division of Tourism may necessitate an offset in their budget. Senator Raggio responded the Senate action results in a net reduction of $20,000 in the General Fund, whereas the Assembly action requires additional funding. Tourism funding, he said, should be adequate. He suggested the Senate concur with the Assembly on the maintenance unit 300 if the Assembly can agree to support the Senate enhancement unit 475. MR. MARVEL MOVED THAT THE TWO COMMITTEES CONCUR WITH EACH OTHER. MRS. EVANS SECONDED THE MOTION, Ms. Giunchigliani interpreted the motion to mean the project will not be funded immediately through the one-shot appropriation in order to start the project. She suggested the appropriation proposed by the Senate be funded for 1 year rather than for both years of the biennium. Senator Raggio restated the suggestion to appropriate $20,000 out of the Division of Tourism for the first year of the biennium. He declared that would be acceptable. He called for the vote by members of the Assembly Committee on Ways and Means. THE MOTION CARRIED. (MR. ARBERRY WAS ABSENT FOR THE VOTE.) * * * * * SENATOR O'DONNELL MOVED TO CONCUR WITH THE ASSEMBLY WITH RESPECT TO MAINTENANCE UNIT 300 AND TO ADJUST THE GENERAL FUND ENHANCEMENT ITEM 475 TO APPROPRIATE $20,000 IN THE FIRST YEAR OF THE BIENNIUM FROM THE DIVISION ON TOURISM AND TO DELETE THE ONE-SHOT APPROPRIATION. SENATOR COFFIN SECONDED THE MOTION. THE MOTION CARRIED. (SENATOR RAWSON WAS ABSENT FOR THE VOTE.) * * * * * MR. MARVEL MOVED THAT THE TWO COMMITTEES CONCUR WITH EACH OTHER ON THE ACTION. MR. PRICE SECONDED THE ACTION. THE MOTION CARRIED. (MR. ARBERRY AND SENATOR RAWSON WERE ABSENT FOR THE VOTE.) BUDGET CLOSED. * * * * * Administration - Personnel Division - Page 653 Mr. Miles indicated both committees have closed the budget similarly. He called attention to two notes added by the Assembly Committee on Ways and Means, both of which the Senate Committee on Finance has discussed. According to Mr. Miles the second note indicates the assessment rates for the division may need to be revisited after the final closing action. He reported the Senate agrees with the assessment made by the Assembly. Mr. Miles stated the Assembly proposes to remove business process reengineering (BPR) funding from all budgets. Senator Raggio declared the Senate has been closing all budgets with the understanding the assessment rate may be changed. He said the committee also has agreed not to process special bills for BPRs. He proposed the two committees meet to determine for which budgets BPR funding be appropriated. He stated that should not affect the present action. Mr. Marvel agreed. With that understanding, Senator Raggio declared there is no difference in the budget closings, and actions taken by the two committees are consistent with one another. BUDGET CLOSED. * * * * * Office of Military - Administration - Page 2031 Senator Raggio announced the Senate took additional action on the budget earlier in the day. Mr. Miles reported the Senate reopened the budget and removed the increased utilities line item in the Base Budget and then reduced the General Fund and federal funds appropriately. He stated maintenance unit 200 and maintenance unit 425 are in alignment with the Assembly, but there remains a difference in enhancement unit 850. Mr. Stevens explained E-850 involves charges for computer maintenance and the Assembly Committee on Ways and Means wants to review the pooling issue just as for the similar item in the Committee on Postsecondary Education budget. He suggested the committees may wish to hold the item until the pooling issue is resolved. Senator Raggio agreed. Public Employees Retirement System - Page 2043 Mr. Miles stated the actions taken by both committees are the same in the Base Budget. He said the Senate Committee on Finance added additional funding for Out-of-State Travel in E-125 for the Public Employees' Retirement System (PERS) board as requested. He indicated that will affect the line-item for additional board and commission pay for the days they will be on duty as well as cause an increase for dues and registrations. Senator Raggio recalled the consensus that there will be no effect on the General Fund for dues and travel. Mr. Stevens said the Assembly Committee on Ways and Means noted a 49 percent increase in the Governor's recommended budget over what was expended in Fiscal Year (FY) 1993-1994 in Out-of-State Travel. Only three of the five members of the Police and Firemen's Retirement Fund Advisory Committee traveled to out-of-state conferences in each year of the biennium, he said, so the committee eliminated $3,464 from the category. He noted the action places the Out-of-State Travel category at a 31.7 percent increase over and above what was actually expended. He acknowledged earlier in the day the committee determined if additional funds are appropriated as requested by PERS after the budget was printed it would provide an increase of 86 percent in Out-of-State Travel, which the committee agreed was excessive. Mr. Stevens said the E-800 request for salary increases for an Operations Officer and an Investment Analyst are being reduced to 4 percent and 3 percent respectively as recommended by the Governor. Senator Raggio pointed out the item comes under the province of the Interim Retirement Committee according to the statutes. He questioned whether the two committees have jurisdiction over the matter. Mr. Stevens responded the Assembly committee acknowledged the salaries are set by the Public Employees' Retirement Board with the concurrence of the Interim Retirement Committee, but felt it appropriate to make a recommendation. Senator Raggio proposed to hold the item. In the absence of further business to come before the committees, he closed the joint meeting at 10:30 a.m. RESPECTFULLY SUBMITTED: Judy Jacobs, Committee Secretary APPROVED BY: Senator William J. Raggio, Chairman DATE: Assemblyman John W. Marvel , Chairman DATE: Senate Committee on Finance Assembly Committee on Ways and Means April 17, 1995 Page