MINUTES OF THE SENATE COMMITTEE ON FINANCE Sixty-eighth Session April 24, 1995 The Senate Committee on Finance was called to order by Chairman William J. Raggio, at 8:07 a.m., on Monday, April 24, 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 GUEST LEGISLATORS PRESENT: Senator Ernest E. Adler, Capital Senatorial District STAFF MEMBERS PRESENT: Dan Miles, Fiscal Analyst Bob Guernsey, Principal Deputy Fiscal Analyst Steve Abba, Program Analyst Judy Jacobs, Committee Secretary OTHERS PRESENT: Mike Meizel, Chief, Buildings and Grounds Division, Department of Administration Judge Terrance P. Marren, Presiding District Judge, Family Division, Department A, Eighth Judicial District, District Courts Patricia R. Justice, Lobbyist, Clark County Judge Charles M. McGee, Department 2, Second Judicial District, District Courts Mary Henderson, Government Affairs Director, Office of the County Manager, Washoe County J. Marty Howard, Deputy Attorney General, Office of the Attorney General Carol Hanna, Executive Director, Private Investigator's Licensing Board, Office of the Attorney General Kathryn A. McClain, Lobbyist, Clark County John Orr, Assistant Director, Department of Employment, Training and Rehabilitation Maynard Yasmer, Chief Financial Officer, Financial Management Section, Department of Employment, Training and Rehabilitation John P. Comeaux, Director, Department of Administration Pamela B. Wilcox, Administrator and State Land Registrar, Division of State Lands, State Department of Conservation and Natural Resources Monte C. Fast, Executive Director, Friends in Service Helping Wayne Perock, Acting Administrator, Division of State Parks, State Department of Conservation and Natural Resources Robert Malin, Fleet Call of Utah, Inc. Maxine Zimmerman, President, Silver Lake Water Distribution Company Eugene V. Foster, Special Programs Coordinator, Department of Employment, Training and Rehabilitation Joan G. Kerschner, Director, Department of Museums, Library and Arts Senator Raggio asked the committee to consider amendment No. 281 to Senate Bill (S.B.) 334 heard on April 12, 1995. SENATE BILL 334: Transfers duty to pay certain costs related to purchasing warehouse building in Reno, Nevada, from purchasing division to buildings and grounds division of department of administration. Dan Miles, Fiscal Analyst, explained S.B. 334 transfers the responsibility of repaying the General Fund for the cost of the purchasing warehouse in Reno from the Purchasing Division to the Buildings and Grounds Division. He pointed out the Executive Budget calls for the Buildings and Grounds Division to take over the warehouse in order to put it to greater use. According to Mr. Miles, only the construction cost was transferred in the original bill, but in later sessions expansion and renovation costs associated with the building with repayment requirements were enacted. He said the amendment includes those items in the repayment responsibility. Mike Meizel, Chief, Buildings and Grounds Division, Department of Administration, offered approval of the proposed amendment. SENATOR JACOBSEN MOVED TO AMEND AND DO PASS S.B. 334 WITH AMENDMENT NO. 281. SENATOR O'DONNELL SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * In order to accommodate those testifying, Senator Raggio opened the hearing on S.B. 366. SENATE BILL 366: Increases number of judges of family court in eighth judicial district. Judge Terrance P. Marren, Presiding District Judge, Family Division, Department A, Eighth Judicial District, District Courts, stated the bill provides for additional family division judges in Clark County. He noted a promise of support has been received from Clark County for two additional family court judges to run for office in November 1996 and take office in January 1997. He said the addition has the support of the family division judges, the district court and the county. Judge Marren asserted the family division court is the busiest court in the west, if not in the entire nation. He reported the national average caseload per family court judge is 800 to 1,000, while each judge in Clark County has a caseload of approximately 2,500, as depicted in a booklet he distributed (Exhibit C. Original is on file in the Research Library.) He said each judge sits on the bench from 7 to 7.5 hours per day, versus a national average bench time of 4 hours. He stated night court and other long hearings are frequently held, which is taking a toll on the judges. Senator Raggio requested a description of the family court jurisdiction. Judge Marren said the authorization is contained in Nevada Revised Statutes (NRS) 3.223 and includes typical problems such as divorce, paternity, child support enforcement, adoption, termination of parental rights, guardianships, commitment of the mentally ill, and some unique provisions including right-to-life and right-to-death. Judge Marren said a trade was made 2 years ago to give the general courts compromise of minor's claims while family court took over commitment of adults and minors. Other than that, he said, the jurisdiction is very similar to what it was 2 years ago. Judge Marren conjectured the addition of two new judges will not substantially reduce the caseload of the present five judges due to the "staggering increase in population," but it will help the public by cutting down on the backlog of cases waiting for hearings. Judge Marren stated there are six departments in Clark County, one of which is assigned to juvenile matters. He said the judges handle an average of five cases per hour on law and motion days, meaning each family receives just 10 minutes of justice on the law and motion calendar. Judge Marren asserted it is very difficult not to be able to give more time to families and work closer with them. He complained, "Right now we're processing chicken." He told Senator Raggio the five courts are located in a new complex at the intersection of Bonanza and Pecos Streets in Las Vegas, to be formally opened June 2, 1995. Senator Raggio asked if the Eighth Judicial District utilizes referees or masters for domestic issues. Judge Marren affirmed they are used to some extent. He explained when the family court was created the Assembly indicated a preference that the use of masters and referees be minimized as much as possible, although three juvenile masters are still utilized. He said there is a child support enforcement officer to hear child support cases and one more may be added next year because the position is 90 percent federally compensated. He added there is a mental commitment master who specializes in commitments to the West Charleston Boulevard facilities, a guardianship commissioner who also handles discovery and domestic violence, and part-time people. Senator Rawson told of a recent meeting dealing with child placement issues in Virginia in which the Nevada family court was cited as an exemplary system. Judge Marren said the district court judges occasionally assist the family court judges while others are on vacation, but he declared those judges have a large backlog of cases too. He stated the caseload inches up day by day, but though it seems overwhelming, the judges are handling the situation. Patricia R. Justice, Lobbyist, Clark County, iterated the support of the county commissioners and county manager for S.B. 366. She indicated lines 6 and 7 of the measure should be deleted in their entirety to change the election and term dates. She assured the committee the county commission intends to provide financial assistance and facilities for the addition of two judges. Judge Marren offered support for the addition of family court judges in Washoe County. Judge Charles M. McGee, Department 2, Second Judicial District, District Courts, explained his court is committed to family court matters. He proposed an amendment be made to S.B. 366 to add one true family court judge to the Second Judicial District with the same provisions as are proposed in the rest of the bill. Judge McGee said the retiring Washoe County Commission had indicated approval at the time a new courthouse was constructed. He acknowledged the present commission is not as firmly behind the proposal, but a workshop is scheduled for May 9, 1995, to make an additional assessment. Judge McGee stated the family court in Washoe County handles approximately 30 percent of the county's legal issues. He asserted, "I don't think it could exist in Washoe County had it not dedicated Department 2, in effect, to the family court, because of the burgeoning work load that exists there." He said there are over 1,100 cases on the contested calendar, not including the numerous hearings for the Uniform Reciprocal Enforcement of Child Support Act (URESA), the Crisis Pregnancy Center (CPC) and appeals from the juvenile division. Judge McGee surmised the county commissioners want to determine if extra help is available from other district court judges before making the decision to fund facilities for a new family court judge. He affirmed many of the district court judges have taken over divorce cases involving partnership issues. Judge McGee opined the district court judges will be fully occupied with other matters by 1997 and he requested conditional approval of an amended form of S.B. 366 to add a judge in Washoe County. He said he does not believe the district will be able to handle the caseload without a third family court judge. Judge McGee agreed to make the final approval of the additional family court judge for Washoe County conditional upon a consensus from the Washoe County Commission. He emphasized the family court is based upon a one-court, one-family concept. He suggested the occasional use of district court judges for family matters works against the purpose of the family courts. In response to a query by Senator Raggio, Judge McGee confirmed the use of masters and referees. He declared a third full-time master, devoted exclusively to URESA cases, will be employed in Washoe County within a month. He said the new courthouse should be completed by the first of 1996 and it will include facilities for a third district court judge position plus a number of masters courts on the third floor. He indicated there is a plan to move the justice court judges into the old district court premises. Senator Raggio declared the Legislature will not provide for new judges unless the respective counties guarantee financial support for the facilities. Mary Henderson, Government Affairs Director, Office of the County Manager, Washoe County, confirmed the position of the county commissioners as stated by Judge McGee. She explained the commissioners wish to explore the caseloads of the other departments, but she acknowledged the caseload of the family court has grown dramatically and deserves support. Ms. Henderson stated the proposal to add a court is on the agenda for the commission meeting slated for May 9, 1995. She acknowledged the commission has held informal discussions regarding completion of an additional courtroom, but no formal presentation has yet been made. She requested the committee delay action until after the commission hearing. Senator Raggio agreed to delay processing of S.B. 366 until after Washoe County responds as to whether it will authorize and approve the necessary financial commitment for a new court. A letter (Exhibit D) was put into the record in support of S.B. 366 from the Office of the Attorney General. There being no further testimony, Senator Raggio closed the hearing and opened the hearing on S.B. 2. SENATE BILL 2: Revises provisions governing licensing of private investigators and related occupations. J. Marty Howard, Deputy Attorney General, Office of the Attorney General, testified the purpose of the measure is to provide for the change of the executive director position of the Private Investigator's Licensing Board from classified to unclassified for Carol Hanna. He stated the board made a unanimous recommendation for the change. He provided the committee with the minutes of the board meeting and an outline of her present duties (Exhibit E. Original is on file in the Research Library.) Mr. Howard asserted Ms. Hanna is a hard worker who performs varied duties, and he requested approval of the proposal. Senator Raggio pointed out there may be some difficulty because unclassified position salaries are set under a separate bill and the wording in S.B. 2 calls for the board to establish the salary. Mr. Howard responded an amendment could be provided that the board will make a recommendation to be approved by the Legislature. Mr. Miles suggested there may be some confusion over the wording. He explained similar statutes use wording such as, "The executive director of the commission is in the unclassified service of the state." Senator Raggio declared the Legislature appreciates recommendations, but it cannot be bound by the recommendation. Senator Coffin asked if members of the board are aware that they will have no control over the salary. Carol Hanna, Executive Director, Private Investigator's Licensing Board, Office of the Attorney General, replied, "They are now." She said she has notified all the board members of the situation. She acknowledged an awareness that the change will remove certain protections offered classified positions. Ms. Hanna explained the Department of Personnel suggested the position be made unclassified because there is no classified position for the director of a licensing board in the classified series. She pointed out the director positions of the rest of the occupational boards are unclassified. She said the salary will be elevated from $38,000 to $48,000 per year, comparable to all the other licensing boards. In the absence of further testimony on S.B. 2, Senator Raggio closed the hearing and opened the hearing on S.B. 238. SENATE BILL 238: Makes appropriation to Clark County for expenses related to acupuncture program of treatment for abuse of drugs. Kathryn A. McClain, Lobbyist, Clark County, reported Judge Jack Lehman from Clark County wished to address the matter. She made a request that the bill be held for his testimony, which Senator Raggio granted. SENATE BILL 387: Makes supplemental appropriation to department of employment, training and rehabilitation for personnel and operating expenses. John Orr, Assistant Director, Department of Employment, Training and Rehabilitation, testified in support of S.B. 387 in order to manage the cash flow in the federal account for the Nevada Equal Rights Commission. Maynard Yasmer, Chief Financial Officer, Financial Management Section, Department of Employment, Training and Rehabilitation, stated at the end of March a shortfall of over $81,000 was calculated, but later a federal grant in the amount of $22,500 was found which left a shortfall of $59,419 through June 30, 1995. In response to a query by Senator Raggio, Mr. Yasmer confirmed the federal funding is based upon the number of completed cases. He stated through March 30 the agency completed 499 cases, a number representing 54.4 percent of the contract for the 6-month period. He declared, "They are managing consistent with the federal contract or a little better. The difficulty arises from a change in the federal contract for Fiscal [Year] 1995 in that we were not allowed to submit an advanced draw request for the April-June quarter." He explained the funds are available only as reimbursements. Mr. Miles concurred S.B. 387 will require reimbursement of the supplement. Senator Raggio noted funds from the General Fund have historically been loaned to the account with reimbursement from the federal government, contingent upon meeting certain contractual thresholds. John P. Comeaux, Director, Department of Administration, confirmed the situation is primarily a result of the federal contention that advance funds are not available and collection is only available on a reimbursement basis. He said the Budget Division is in accord with the supplemental appropriation. He offered a copy of a memorandum of explanation on the matter (Exhibit F). Mr. Yasmer commented the agency has taken measures to improve work performance standards to accomplish 15 acceptable closures per month per investigator. He declared once that goal is achieved it should resolve the reimbursement problem. He protested the situation is taking more time than is desirable. Mr. Orr interjected the compliance investigators have been provided with extensive training through the Office of the Attorney General and through the Hearings Division of the Department of Administration. He said a rapid resolution unit has been established in the Las Vegas office, but since it has only been in operation for about 3 months, it is too early to effectively evaluate its performance. Senator Raggio requested that periodic reports be made regarding improvement of the department. Mr. Orr responded reports are being made to the Interim Finance Committee (IFC) on a quarterly basis. In the absence of further testimony, Senator Raggio closed the hearing on S.B. 387 and opened the hearing on Assembly Bill (A.B.) 387. ASSEMBLY BILL 387: Makes various changes concerning sale, lease or exchange of state land. Pamela B. Wilcox, Administrator and State Land Registrar, Division of State Lands, State Department of Conservation and Natural Resources, stated the bill will make a change to the statutes to authorize the IFC to approve leases during session. At the present time, she said, all leases must be approved by the State Board of Examiners and the IFC if they extend beyond 1 year. She explained the IFC statutes do not give the authorization for IFC approval during the legislative session. Ms. Wilcox said A.B. 387 gives direct legislative authorization for six leases and one sale pending at the present time in lieu of IFC approval. She acknowledged all the leases are important to those who have requested them, and she expressed thanks to those who have helped expedite the measure. She said those items which have not yet been approved are on the agenda for the State Board of Examiners' meeting on Friday. In response to a request by Senator Raggio, Ms. Wilcox highlighted the items for the committee's consideration. She called attention to the items in section 2, subsection 1 on the second page of A.B. 387. She explained only a portion of the warehouse cited will be used by the state. Ms. Wilcox said the second lease listed will enable treatment presently being performed in Utah to be ministered within Nevada. Problems with vandalism at the Washoe Lake State Park will be abated by placement of a mobile home at the park for a resident caretaker as provided by the third lease listed. She noted the fourth item will lease land to a commercial communications firm at the Jean Correctional Camp for an automated equipment shelter for an antenna to be placed on the site. Ms. Wilcox stated four residences at the Stewart Indian School will be leased to Friends in Service Helping (FISH) to be used as transitional housing for the homeless. She said a federal Housing and Urban Development (HUD) grant will be used for that purpose by FISH instead of by the state. The sixth lease will lease water rights to provide water service for the maintenance shop and armory at the Nevada Army National Guard facility at Stead, and the seventh transaction is the sale of the Employment Security Department (ESD) building in Las Vegas along with a parking lot, with an appraised value of $940,000, at a competitive sale. Senator Ernest E. Adler, Capital Senatorial District, remarked he has been involved in the lease negotiations for FISH with the Stewart Indian School. He explained the state once had a program for mentally ill homeless males and invested in the cottages. After the Rural Clinics pulled out of the program, he said, "that left a $70,000 payback from the state to HUD for the refurbishing of the buildings." He said FISH agreed to take over the grant and the liability to use the cottages for homeless families. Senator Adler declared FISH needs the approval of the Board of Examiners and the Legislature to assume the grant by Friday. Because of the delay in transferring the grant, he stated, FISH may be assessed fines and penalties of $4,000 per month if the switch is not accomplished by the end of the month. He urged the committee to expedite action. He noted FISH has, in essence, already saved the state $70,000 by assuming the liability. Senator Adler described the assistance offered by FISH, including food service, dormitories for men and housing for families, and help in finding jobs. Ms. Wilcox explained the state accepted the funding from HUD approximately 5 years ago to renovate the buildings and now owes a payback of $70,000 unless someone else picks up the grant and completes the project. The buildings were originally assigned to Rural Clinics which have vacated the premises. She said FISH is willing to assume that obligation. Ms. Wilcox declared fair market value is not a consideration in the FISH lease because the buildings are in a historic district and cannot be leased on the open market. She pointed out they are encumbered with the HUD grant, and the lease is being offered at a price the Buildings and Grounds Division has indicated is what they need to maintain the complex. She said the lease comes to approximately $150 per house per month for a total of $600 per month for all four houses. Ms. Wilcox said the occupant pays the utilities, although some of the utilities are central at the Stewart Indian School. The Buildings and Grounds Division bills for the utilities. FISH will take over the grant, she said, and the state will no longer have any obligation. She admitted, "There is a clause in the lease that provides if the state prevents them from completing the grant, that the obligation will return to the state. But except under that sole circumstance, under all other circumstances they will be responsible for the completion of the grant program." Ms. Wilcox indicated the term of the lease is 5 years with options to renew, and there are 15 years remaining on the original 20-year program. Monte C. Fast, Executive Director, Friends in Service Helping, distributed copies of the latest letter from HUD (Exhibit G) summarizing the obligations and negotiations. He voiced his concern because Friday is the last business day of the month, and the letter indicates the state response is already 15 days overdue. Mr. Fast declared the federal officials have been very cooperative and have changed national regulations to accommodate the Nevada budget, and "they have bent over backwards to assist the state of Nevada in maintaining this program and the grant and also to help our private agency become associated with the federal government." He urged swift action. Senator Raggio noted the bill did not reach the Senate until April 19 even though it was introduced on March 23. Ms. Wilcox interjected she had received a call from HUD on Friday to confirm their expectation that the bill will be signed by the end of the month. Mr. Meizel pointed out the lease calls for the tenant to take responsibility for all maintenance both inside and outside the buildings. He called it a "pretty good deal for us." Mr. Meizel related he had negotiated with Washoe County to lease space in the portion of the warehouse that was no longer being used by the state. He stated warehouse space in Washoe County leases at 20 to 25 cents per square foot, and the lease with Washoe County is at 23 cents, to be renegotiated every 2 years over the life of a 10-year lease. He added Washoe County has a first option on additional space, should it become available. He acknowledged security measures are not difficult to accomplish with Washoe County, whereas they may have been more difficult if the space had been leased to a private entity. Mr. Meizel pointed out the lease commenced on January 1, 1995, and if it is approved Washoe County will pay rent as of that date. He said the warehouse contains 60,000 square feet, of which Washoe County is leasing 11,600 square feet, and the state retains the primary amount of space. In the absence of anyone else to describe provisions of the lease to Benchmark Behavioral Health System of Utah for the cottage at the Nevada Mental Health Institute (NMHI), Ms. Wilcox offered to do so. She said the building is presently vacant and is being renovated to provide a half-way facility to treat adolescent offenders who have been undergoing more intensive treatment in Utah. The teenagers will reside in the cottage and attend public schools before being returned to their families. She said the facility will be limited to a maximum of 15 youngsters at any one time. The term of the lease is for 3 years with an option to renew, Ms. Wilcox said, at a rental rate of 65 cents per square foot, or $3,404.05 per month. She explained the rental was based upon a survey of fair market value. In response to a query by Senator Raggio, Ms. Wilcox said the lease includes indemnification for the state, and the lessee is required to maintain insurance during the term of the lease. Senator Raggio asked if the facility will house male adolescents who have had sexual problems. Ms. Wilcox affirmed the query and reported they are presently being treated in Utah where more intensive treatment is available, and that treatment program will remain there. The NMHI space will provide a step-down transition program to enable moving the adolescents back to Nevada prior to returning them to their families. Senator Raggio inquired if Benchmark Behavioral Health System of Utah, which will have jurisdiction over the individuals, has approved the move. Ms. Wilcox responded it has. She explained the youths have been treated under a contract with the Division of Child and Family Services and the contract will continue in effect. She said the City of Sparks approved the move after their police department inspected the facility for security, which they found satisfactory. Senator Raggio requested the City of Reno be consulted, too, since the facility is so close to the city line. Turning to the third lease listed in A. B. 387, Wayne Perock, Acting Administrator, Division of State Parks, State Department of Conservation and Natural Resources, stated the Washoe County Parks and Recreation Department made a proposal to the state to lease a portion of the Washoe Lake State Park in the vicinity of their boat ramp on the northeastern section of the lake. He explained there has been excessive vandalism and the county wants to use just under an acre to house a caretaker. The site will include a septic system, while utilities will be provided from off-site. Senator Raggio remarked he has heard talk of the state taking over a portion of the Washoe County facility. Mr. Perock replied there is a bill draft request (BDR) regarding the matter which impacts the adjoining area. He indicated the state land adjoins the county boat ramp, and the county is proposing to give 15 acres to the state. He declared the two are separate issues and there is no conflict between the BDR and A.B. 387. Senator Raggio requested an explanation of the lease to Fleet Call of Utah, Inc., regarding land at the Southern Nevada Correctional Center. Robert Malin, Fleet Call of Utah, Inc., responded the lease is for the construction and maintenance of an equipment shelter and antenna on a piece of land 50 feet by 50 feet on the northwest corner of the property. He described the proposed shelter at 10 by 20 feet with a 100-foot tower and antenna for a two-way transmission system. He said the site will enable his company to tie in with the California border and the City of Las Vegas. Mr. Malin said the radio dispatch system has cellular capabilities and the customers are those who once used the old trunking system for two-way radios, such as emergency services, contractors and security companies. He acknowledged it has nothing to do with the correctional system. Mr. Malin stated the particular site is in the middle of the area in the line-of-sight between California and Las Vegas to cover Highway 15. He reported prison system officials have indicated there are no plans for future use of the particular parcel and his company has agreed to allow the state to use the communication platform for their own use if needed. Ms. Wilcox interjected the rent will be at $250 per year, and the term is for 5 years, to be reevaluated. Senator Raggio asked why the state should rent a piece of land for $250 per year for a commercial enterprise. Ms. Wilcox said the Department of Prisons made the decision. She explained the Department of Information Services (DIS) has permission to tie into the system, should there be the desire to do so. In response to a question by Senator Raggio, Mr. Malin replied the lease provides for the removal of all improvements. Senator Raggio declared, "I really fail to see what value there is to the state to tie up even a 50 by 50 foot piece of land for $250 a year." He invited response. Mr. Malin said, within the terms of the lease, the state will have the opportunity to use the transmission platform, which will cost between $75,000 and $100,000 to build. Ms. Wilcox said DIS showed interest in future use of the platform. Senator Raggio asked for more information to demonstrate the benefit to the state. Ms. Wilcox declared the lease is extremely restricted because it is on a prison facility. Mr. Malin interjected it has an 8-month termination clause. Mr. Malin said the tower will be 105 feet high and will provide a view inside the walls of the prison. He stated the tower will be secure, the prison has approved the perimeter fencing and the site is within view of the prison security towers. Senator Coffin expressed concern it may make the prison vulnerable. Mr. Malin responded the tower will be atop a round pole, not a lattice-type structure. In response to a query by Senator O'Donnell, Mr. Malin replied the site is 600 feet away from the fences around the prison. Senator Raggio turned to item six regarding the Silver Lake Water Distribution Company. According to Ms. Wilcox, the military was unable to expand its Nevada Army National Guard facility at Stead without providing water. Since water is a state asset, and the area is a designated water basin, she said, the water rights will be leased to the facility as long as it is there. Senator Raggio inquired about the terms of the transaction. Ms. Wilcox responded the state will provide the water rights to the facility. She said the state acquired the water rights from Sierra Pacific Power Company in order to provide them to the military facility. She acknowledged the state must pay for the lines and pay regular fees as a customer. Maxine Zimmerman, President, Silver Lake Water Distribution Company, explained the state is leasing the water rights to her company at no cost, and the state will pay for the water lines from the source of supply to the facility. She said her company will charge the state the rate approved by the Public Service Commission of Nevada (PSC) for usage as determined by meters at a rate of $49 per month for meter readings and $1.50 per thousand gallons of water used. Senator Raggio asked if the state is leasing excess water rights or only the amount needed for the purpose. Ms. Wilcox said the state will lease only the amount needed and only for the purpose stated. The item referring to the sale of the DES office building in Las Vegas was discussed next. Senator Coffin asked if the minimum bid will be $940,000 for the building. Ms. Wilcox responded the initial appraisal, which will have to be updated, was $940,000, and the law provides that the minimum bid must be the appraised value plus the cost of the sale. Eugene V. Foster, Special Programs Coordinator, Department of Employment, Training and Rehabilitation, estimated the two lots at approximately 100 by 200 feet each. Ms. Wilcox said the description from the appraisal states there are two separate parcels of land at 100 feet by 140 feet each, approximately 14,000 square feet each for a total land area of 28,000 square feet. She read, "The building is a two-story office building constructed in 1928 consisting of approximately 24,222 square feet of gross building area." Senator O'Donnell asked if the building contains any asbestos. Mr. Foster replied there is a minimal amount in the heating system only. Senator Raggio declared it will not be possible to process the bill until further information is received. He acknowledged concern with the fourth item regarding the land at the correctional center, which he indicated can be deleted if necessary. He repeated his request for approval for placement of the male adolescents at the NMHI facility from the City of Reno prior to processing the bill. Senator Raggio noted the earliest the committee will be able to act is at the next meeting scheduled for Wednesday. He said at that time it will be recommended for do pass to go to the floor, and it will not gain final action until Monday. Ms. Wilcox responded FISH may then be punished by HUD and will lose money out of the grant. Those present discussed how to avoid the problem. Senator Raggio offered to strip the items causing concern from the bill. Ms. Wilcox responded that could cause other problems. Senator Rawson suggested the other items could be stripped from the bill, and they could be authorized under a new BDR to be dealt with later. Senator Raggio pointed out the bill will still have to be amended. Ms. Wilcox interjected letters of approval may be obtained later in the day, but that may not resolve the FISH lease problem. Senator Raggio reiterated his request for an explanation from the Department of Prisons regarding the lease of the corner lot. Ms. Wilcox determined the best course would be to obtain the answers to the questions posed by Senator Raggio. Senator Raggio agreed to process the measure on Wednesday, and, if necessary, make it an emergency measure. Senator O'Donnell wanted to know how much FISH will be penalized through delay. Ms. Wilcox responded the initial warning had been that FISH would be penalized starting on April 1. No penalty has been imposed yet, but FISH believes they will be penalized by the day starting on May 1. She acknowledged everyone has been very cooperative, but concerns with HUD have to do with the changing situation in Washington, D.C. and the fear the entire commitment may be lost if action is not taken right away. Senator Raggio called attention to a bill draft request. BILL DRAFT REQUEST S-2000: Makes appropriation to Nevada Appellate and Postconviction Project, Inc. He reminded the committee the BDR was requested to authorize $300,000 to provide defense counsel in capital cases. SENATOR RAWSON MOVED FOR COMMITTEE INTRODUCTION OF BDR S- 2000. SENATOR COFFIN SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * Senator Raggio called for action on S.B. 387. He asked if there were further comments. Senator O'Donnell stated the subcommittee feels the measure is warranted. He opined the outstanding receivables will be corrected and S.B. 387 will provide a stopgap for cash flow problems. SENATOR O'DONNELL MOVED TO DO PASS SENATE BILL 387. SENATOR COFFIN SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * Senator Raggio turned to budget closings for the Health Division and the Aging Services Division. Office of State Health Officer - Page 1093 Steve Abba, Program Analyst, reported on technical recommendations. He said indirect cost-allocation funding has been identified as attainable through various division federal grant program salary costs. He pointed out those will reduce the General Fund appropriation. Mr. Abba stated there is also an increase proposed in order to pay for the Information Systems Specialist, although the position was recommended in the Executive Budget for transfer to DIS. He said the joint subcommittee on general government has recommended against the transfer, but the salary was not included in the original budget and requires a General Fund addition whether it is retained in the Office of the State Health Officer or transferred. Mr. Abba said the subcommittee approved two positions, a Personnel Specialist and an Accounting Technician position, both recommended for increase in the divisions' programs. SENATOR RAWSON MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE SUBCOMMITTEE RECOMMENDATION. SENATOR O'DONNELL SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * Vital Statistics - Page 1099 According to Mr. Abba, the subcommittee found additional federal grant money available to the division. He noted reimbursements from the Social Security Administration for allowing the federal agency to use death certificate information were not included in the budget. Additional savings will come from action taken by the IFC, he said, which will allow for personal computer (PC) access of the birth records instead of access through the mainframe. He stated reductions reflect all three actions. Mr. Abba declared the committee approved a fireproof vault modification and approved an Account Clerk position, which will add to the expenses. Senator O'Donnell asked the source of savings for systems programming. Mr. Abba responded the Vital Statistics program presently has mainframe access to records which they must access during the busiest and most expensive part of the day. He said the savings will result from the IFC approval to allow for a PC mechanism which is forecast to save $750 per month. Senator Rawson pointed out New York recently had a fire in which all their vital statistics records from the 1800s through the 1970s were lost. He declared it is important to protect records in the fireproof vault. SENATOR RAWSON MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATION OF THE JOINT SUBCOMMITTEE. SENATOR O'DONNELL SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * Cancer Control Registry - Page 1103 Mr. Abba reported the closing actions reflect the reduction of General Fund appropriations recommended for state rent since the expenditure for rent has been absorbed within other programs. He noted a new grant approved by IFC, called the National Program of Cancer Registries, includes funding for rent costs. Mr. Abba stated the Cancer Control Registry program currently abstracts data from hospitals and other institutions. Once the grant is fully implemented, he said, the institutions will do the work and the state will merely provide oversight, instituting a change of emphasis for the program. SENATOR O'DONNELL MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATION BY THE JOINT SUBCOMMITTEE. SENATOR MATHEWS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * Health Facilities - Page 1107 Mr. Abba indicated 11 new positions over the biennium are included in the budget request, eight for health facility surveyors and three for clerical support staff, as recommended in the Executive Budget. He said the primary funding will come from Title XVIII Medicare funds and a fee increase in the industry. The compelling factors in the proposal for new staff are a result of caseload, complaint investigations and statutory requirements not being met. Mr. Abba noted the subcommittee approved the new staff and support as well a move into Reno from Carson City in order to provide a satellite office. He pointed out the expenses for a move into a larger non-state-owned office from the Belrose Complex was omitted from the original budget due to an oversight and is now included. According to Mr. Abba, outfitting costs for new staff were overstated and technical adjustments are allowed by applying the standard budgeting rules for inflation. Senator Coffin reported two assemblymen raised objections to the increase in staff during the subcommittee meeting, although they were outvoted. He stated the remainder of the subcommittee felt the new staff will be necessary due to the projected increase in the number of beds. Mr. Abba said concern was expressed over the time the Health Division has allowed to lapse in its oversight of health facilities regarding regulation of the industry. He stated the Health Division has set up a schedule to review regulations and federal standards. Senator Rawson asked if the Health Division will be required to report to IFC or the health care committee. Mr. Abba replied in the past the results of reviews have been reported to the State Board of Health. Mr. Miles interjected any activity involving the Nevada Administrative Code (NAC) is reviewed by the Legislative Counsel Bureau (LCB) to ascertain it is in compliance with the laws. SENATOR RAWSON MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE SUBCOMMITTEE'S RECOMMENDATION. SENATOR RHOADS SECONDED THE MOTION. THE MOTION CARRIED. (SENATOR MATHEWS WAS ABSENT FOR THE VOTE.) * * * * * Maternal Child Health Services - Page 1113 Mr. Abba pointed out modifications are technical adjustments made to the medical consumer price index (CPI) rate used to construct the budget for the Maternal Child Health Services (MCH) program. He stated the program pays Medicaid rates, but the medical CPI was far higher than the Medicaid rates from the Medicaid budget. As a result, he said, the adjustments will bring the CPI rates in line with Medicaid rates and result in a significant reduction in General Fund appropriations and in MCH block grant revenues. He noted the block grant funds will be used for operations of the program and will further reduce the General Fund appropriations. Mr. Abba reported the subcommittee approved the Governor's initiative to establish a Perinatal Substance Abuse program in which the Health Division will serve as an umbrella network for all state agencies dealing with the issue. Two staff positions have been recommended for the program, he said, with a minor adjustment to delay hiring new staff for 3 months. Senator Raggio asked if the Budget Office has any objection to the change in use of the medical CPI. Mr. Comeaux answered, "No." SENATOR RAWSON MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATIONS OF THE SUBCOMMITTEE. SENATOR O'DONNELL SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * Special Children's Clinics - Page 1121 As described by Mr. Abba, the only adjustment recommended for the budget will retain $4,000 for moving expenses because the original $10,000 appropriation for moving and remodeling was reduced by $6,000 when the landlord agreed to perform the modifications in exchange for a long-term lease. He noted the subcommittee recognizes there may be some impact on the clinics if reimbursements are reduced under Medicaid managed care. He explained, "Under managed care, the clinics will be exempt as far as their diagnostic services that they provide Medicaid eligible children's AFDC (Aid to Families with Dependent Children), CHAP (Child Health Assurance Program) and Child Welfare recipients, but not for treatment services that they currently provide." Mr. Abba iterated the impact is unknown. He declared the clinics are attempting to contact all health maintenance organization (HMO) providers that might be bidding on managed care contracts to develop contractual relationships. Because the revenues are unknown, the committee took no action. Mr. Abba stated the subcommittee approved five new positions as recommended to help with insurance billings and collections from private insurers, and approved additional square footage for the Las Vegas Clinic. The recommendation includes a General Fund appropriation of $143,325 each fiscal year to replace federal Chapter I funds that will no longer be available. This will allow both clinics to maintain physical and occupational therapy at the present level, he said. Mr. Abba noted the subcommittee endorsed a 10-year lease arrangement for the Las Vegas addition, which was due to expire in Fiscal Year (FY) 1997. Senator Rawson stated the Special Children's Clinics have developed a specialized treatment capability for those with distinctive handicaps which the subcommittee felt should not be disrupted and which should be considered in all negotiations with managed care organizations. He acknowledged there will be no way to predict the outcome during the transition. SENATOR RAWSON MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE JOINT SUBCOMMITTEE RECOMMENDATIONS. SENATOR MATHEWS SECONDED THE MOTION. Senator Raggio pointed out the motion will make an adjustment in the General Fund appropriation for rent, to provide new staff, and to add building space, but with the understanding managed care may have an impact later at which time adjustments may have to be made. THE MOTION CARRIED UNANIMOUSLY. * * * * * Community Health Services - Page 1127 According to Mr. Abba, additional travel enhancements were built into the budget, but overstated, to allow for increases in in-state travel by community health nurses in the rural areas, and those have been recommended for reduction by the subcommittee. Also, he said, Maternal Child Health (MCH) block grant funds can be used to offset General Fund appropriations in maintenance and enhancement decision units for training and equipment. SENATOR RAWSON MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATION MADE BY THE JOINT SUBCOMMITTEE. SENATOR O'DONNELL SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * Laboratory and Research - Page 1133 Mr. Abba reported in light of significant testimony, the subcommittee reserved the option to reopen the budget depending upon the outcome of the one-shot request by the Health Division to outfit the new addition to the laboratory with replacement equipment and the addition of new equipment to enhance the testing capabilities for the Safe Drinking Water program. He said additional staff recommended in the budget for the testing will not be necessary if the one-shot appropriation is not approved. Mr. Abba noted the committee approved additional utility funds required for the expanded facility and additional laboratory operating supplies as recommended for the testing, but the laboratory has indicated those will be needed to maintain present levels of service because no raise for inflation has been taken into consideration. He added the subcommittee approved the replacement of federal Sexually Transmitted Disease (STD) and Safe Drinking Water funds no longer available from the federal government with state appropriations to enable the laboratory to continue public health testing when either no fee or a reduced fee is levied on indigent clients. Mr. Abba reported the subcommittee approved the historical use of funds from the budget for replacement equipment in the laboratory. He said the budget provides for additional funding for emergency maintenance and repairs which the division feels will be elevated with the expansion of the laboratory, but which the subcommittee reduced by $15,000 each year after a review of potential need. Senator Rawson recalled during the original hearing it was proposed that a reserve account be set up for the budget, but no discussion of the matter took place during the subcommittee meeting. He asked if a reserve account would be beneficial. Mr. Abba responded the Health Division already has the ability to borrow from the General Fund for cash flow purposes, which is typically done for the laboratory and for several other accounts. SENATOR RAWSON MOVED TO CLOSE THE BUDGET ACCORDING TO THE JOINT SUBCOMMITTEE RECOMMENDATIONS. SENATOR JACOBSEN SECONDED THE MOTION. Senator Raggio pointed out the inherent right to reopen the budget, depending upon action taken on Senate Bill 212. SENATE BILL 212: Makes appropriation to health division of department of human resources for various equipment. THE MOTION CARRIED. (SENATOR O'DONNELL WAS ABSENT FOR THE VOTE.) * * * * * Sexually Transmitted Disease Control - Page 1139 Mr. Abba stated the adjustment in Fiscal Year 1996 reflects a recent supplemental grant award for the HIV (Human Immunodeficiency Virus) Prevention Program from which the Health Division intends to disseminate all but approximately 10 percent to local health districts and community-based organizations. SENATOR RAWSON MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH SUBCOMMITTEE RECOMMENDATIONS. SENATOR MATHEWS SECONDED THE MOTION. THE MOTION CARRIED. (SENATOR O'DONNELL WAS ABSENT FOR THE VOTE.) * * * * * Family Planning Project - Page 1143 SENATOR RAWSON MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE GOVERNOR'S RECOMMENDATIONS. SENATOR COFFIN SECONDED THE MOTION. THE MOTION CARRIED. (SENATOR O'DONNELL WAS ABSENT FOR THE VOTE.) * * * * * Communicable Disease Control - Page 1147 Mr. Abba said one recommended minor adjustment will allow the bureau chief to travel out-of-state. He pointed out there is an increase in funding for purchase of medications for tuberculosis (TB) in line with an increase approved by the IFC. He explained the IFC approved an increase of $319,000 in FY 1994 and $330,000 in FY 1995 to supplement the TB program's drug suppression activities, and the subcommittee recommendation will continue that funding, provide for population adjustments, and provide additional funding for residential care services. He explained concern arose in 1994 when four patients had to be turned away from receiving residential care services due to lack of funding. Mr. Abba added there is an enhancement in medical funding to allow for the purchase of second-line drugs for TB patients who have developed a resistance to more common medications. SENATOR RAWSON MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATION OF THE JOINT SUBCOMMITTEE. SENATOR COFFIN SECONDED THE MOTION. THE MOTION CARRIED. (SENATOR O'DONNELL WAS ABSENT FOR THE VOTE.) * * * * * WIC Food Supplement - Page 1151 Mr. Abba said the subcommittee recommended the budget be adjusted for inflation at the same rate as that used in other budgets. He indicated a position is being recommended for transfer to the Department of Information Services (DIS), and while the subcommittee approved the overhead charges for DIS, it failed to increase transfer costs. He said that will add approximately $20,600 in FY 1996 and $15,200 in FY 1997 to the line item for DIS systems programming charges. SENATOR RAWSON MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATIONS OF THE JOINT SUBCOMMITTEE. SENATOR MATHEWS SECONDED THE MOTION. THE MOTION CARRIED. (SENATOR O'DONNELL WAS ABSENT FOR THE VOTE.) * * * * * Health Aid to Counties - Page 1157 Mr. Abba explained the closing proposal will increase the transfer from the motor vehicle pollution control budget by a proportionate increase as was recommended for the General Fund increase in the budget. SENATOR RAWSON MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATION MADE BY THE JOINT SUBCOMMITTEE. SENATOR RHOADS SECONDED THE MOTION. THE MOTION CARRIED. (SENATOR O'DONNELL WAS ABSENT FOR THE VOTE.) * * * * * Immunization Program - Page 1159 According to Mr. Abba, mathematical errors were made in the application of the medical CPI increase for vaccines funded by the state. He said the subcommittee voiced concern that the price of some vaccines has remained stable, yet the way in which the budget is being funded could have an impact at the federal level. He explained there have been changes in the way immunizations are administered and more costly immunizations are being purchased. He noted the subcommittee took the changes into consideration and approved the state fund appropriation with technical adjustments. Mr. Abba said the committee requested that a letter of intent be transmitted to the Health Division indicating that prior to the inauguration of any new vaccine regimen the program justify its actions, especially with a new vaccine for chicken pox that may be recommended by next year. SENATOR RAWSON MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATIONS MADE BY THE JOINT SUBCOMMITTEE. SENATOR COFFIN SECONDED THE MOTION. THE MOTION CARRIED. (SENATOR O'DONNELL WAS ABSENT FOR THE VOTE.) * * * * * Emergency Medical Services - Page 1163. Mr. Abba pointed out a contemplated reduction for installation costs for a proposed computer. He explained the installation costs included in the budget are higher than the amount for the computer purchase. He said the staff that remains in the health officer's budget should be able to provide the service free of charge. Mr. Abba declared the budget includes a new clerical support position for licensing and certifying ambulance attendants, which was approved by the subcommittee. He said additional in-state travel funds were approved for the rural staff that makes up the emergency medical services and which has historically been underfunded. SENATOR RAWSON MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE JOINT SUBCOMMITTEE'S RECOMMENDATIONS. SENATOR RHOADS SECONDED THE MOTION. THE MOTION CARRIED. (SENATOR O'DONNELL WAS ABSENT FOR THE VOTE.) * * * * * Consumer Protection - Page 1167 Adjustments were recommended, Mr. Abba said, to reduce General Fund appropriations as a result of an analysis of plan review fees. He explained the increase in the Safe Drinking Water grant funding reflects increased costs for a position approved and filled by the IFC in November. He explained a position is being deleted because the division does not anticipate receiving the Department of Energy (DOE) grant. Mr. Abba stated the subcommittee approved two new staff positions for the state to implement the federal Safe Drinking Water program rules regarding lead, copper, arsenic, radon and disinfection of water supplies. SENATOR RAWSON MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATION OF THE JOINT SUBCOMMITTEE. SENATOR MATHEWS SECONDED THE MOTION. THE MOTION CARRIED. (SENATOR O'DONNELL WAS ABSENT FOR THE VOTE.) * * * * * Radiological Health - Page 1173 Mr. Abba called attention to two changes in revenue through adjustment by a general ledger number used to conform to the requirements of the Office of the State Controller. He stated other adjustments are technical in nature. He explained standby salary costs are built into the base budget and then moved into a decision unit with a recommendation for funding, but the costs in the General Fund in the base are not deleted, resulting in a recommendation to remove $12,000 in each fiscal year. Mr. Abba pointed out since the approval of the vault modification for the Vital Statistics budget, the Radiological Health program will have to move out of the Kinkead Building. There will be additional costs for rent which are not included in the Executive Budget, as well as moving costs. He said those costs will be funded by a transfer from the Radioactive Materials Disposal Trust Fund. SENATOR RAWSON MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE JOINT SUBCOMMITTEE RECOMMENDATIONS. SENATOR RHOADS SECONDED THE MOTION. THE MOTION CARRIED. (SENATOR O'DONNELL WAS ABSENT FOR THE VOTE.) * * * * * Radioactive Material Disposal Trust Fund - Page 1179 Mr. Abba explained the adjustments to the budget reflect actions taken in the previous budget to pay for moving and additional rent costs. SENATOR RAWSON MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE JOINT SUBCOMMITTEE RECOMMENDATIONS. SENATOR MATHEWS SECONDED THE MOTION. THE MOTION CARRIED. (SENATOR O'DONNELL WAS ABSENT FOR THE VOTE.) * * * * * Aging Services - Page 1259 Mr. Abba acknowledged the subcommittee made a number of adjustments. He stated the Executive Budget recommended three new positions for community ombudsmen administered by the agency to bring the program to the Reno area and enhance it in Las Vegas, and to add staff to the Elko area in the second year of the biennium. He said the program is funded through the General Fund. He explained the subcommittee also approved a proposal initiated by the Taxicab Authority to transfer the Senior Ride Program to the Aging Services agency, which will include two staff persons and operations. He declared there should be very little disruption in the service because of the transfer of staffing. As reported by Mr. Abba, the subcommittee approved funding to continue the state transportation program. He explained: This program, in previous years, has used $50,000 each fiscal year in stripper well petroleum rebate monies to transfer to rural senior centers for those centers to use as match for federal Department of Transportation monies to either purchase vehicles or to use as grant monies for their rural senior transportation programs. That money was thought to be nonexistent for the upcoming biennium. Mr. Abba added there is approximately $7,300 in petroleum rebate funds that will be available in FY 1996 that will be used for some of the funding for the state transportation program. The subcommittee also approved $50,000 each year in other funds, primarily from the General Fund and some Title III administrative funds, he said, that were not included in the budget and that are anticipated to fully fund the state transportation program. Senator Raggio asked where the $50,000 for the Local Project Share Program appears in the budget. Mr. Abba responded the total General Fund requirement amounts to $4,216 in FY 1996 and $22,587 in the second year of the biennium which appears in the first line item in Adjustments to Expense. He pointed out the designation is Increase Local Project Share Program. Mr. Abba stated the actions taken by the subcommittee included delaying the staff by 3 months for the community ombudsman program to offset operational costs which will result in some savings that are being applied to additional costs for maintaining the state transportation program. He acknowledged the remaining funds will come from a transfer from the petroleum rebate funds and from the Taxicab Authority. SENATOR RAWSON MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATIONS OF THE JOINT SUBCOMMITTEE. SENATOR RHOADS SECONDED THE MOTION. THE MOTION CARRIED. (SENATOR O'DONNELL WAS ABSENT FOR THE VOTE.) * * * * * Senior Services Program - Page 1267 Mr. Abba reported reductions reflect an analysis of how the Purchase of Service costs were developed, those provided for homemaking services and attendant care to elderly people to maintain them in their homes rather than in nursing homes. He said the Executive Budget includes medical CPI increases that were far higher than Medicaid CPI increases. He pointed out Medicaid funds the program. He explained the Aging Services Division approved modifications to reduce the medical CPI increase included in the budget in order to make it consistent with Medicaid CPI increases and to increase the per-unit number of hours that are provided to seniors for an average month. Mr. Abba stated the recommended number of cases included in the Executive Budget was not changed, although the program recommends an increase in the number of cases served from approximately 7,500 now to 8,800 in the first year of the biennium and 9,300 in the second year of the biennium. Mr. Abba reported the subcommittee recommends the funds for care giver training be enhanced. He noted prior to budget reductions in FY 1992 and FY 1993, care giver training, a state-funded appropriation, is being held to $50,000, and later reduced to $10,000. He explained the subcommittee heard testimony regarding the value of the training. He said the $20,000 included in the budget will provide only for training in the urban areas, so the subcommittee recommends appropriation of an additional $25,000 in state funds per fiscal year to be used in the rural areas, for care giver kits and for training in the Washoe County/Carson Valley areas. SENATOR RAWSON MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATION OF THE JOINT SUBCOMMITTEE, INCLUDING A LETTER OF INTENT SPECIFYING HOW THE ADDITIONAL FUNDING IS TO BE USED. SENATOR MATHEWS SECONDED THE MOTION. THE MOTION CARRIED. (SENATOR O'DONNELL WAS ABSENT FOR THE VOTE.) * * * * * Railroad Depot - East Ely - Page 415 Bob Guernsey, Principal Deputy Fiscal Analyst, recalled the committee held the budget at the request of Senator Rawson who contacted Scott Miller, Administrator of the Division of Museums and History, concerning a plan to stabilize the collection of the East Ely Railroad Depot. He noted subsequent conversations indicate the concerns are being addressed. Senator Raggio inquired if there is a problem as to who owns the equipment at the East Ely Railroad Depot. Senator Rawson responded the equipment is owned by a private group of citizens in the area and they are reluctant to transfer title. Senator Raggio suggested there may be a problem if the state is being asked to provide more funding. Senator Rawson proposed the budget be closed since there is not much interest on the part of the citizens for the state to join in any action if title must be transferred. He noted there is a possibility prison crews may perform some maintenance work on the property. SENATOR RAWSON MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE STAFF RECOMMENDATION. SENATOR MATHEWS SECONDED THE MOTION. THE MOTION CARRIED. (SENATOR O'DONNELL WAS ABSENT FOR THE VOTE.) * * * * * Nevada State Library - Literacy - Page 447 Mr. Guernsey declared the budget reflects an overstatement of insurance expenses for one additional employee which has not been recommended. He stated, "There was considerable discussion last time concerning the literacy budget in reference to the state General Fund taking over the loss of Title VI federal funds." He noted within the expenditure of approximately $10,000 per year under E-250 is $2,000 for out-of-state travel. Mr. Guernsey called attention to details attached as Exhibit H delineating the appropriation requests. He noted a request for the unclassified position of Literacy Coordinator to be moved into the classified service at a grade 39, but which the Budget Division chose to retain in the unclassified service. He explained the classified position will be paid more than the unclassified position salary, teachers have historically filled the position, and when they discover the pay is for 12 months rather than for 9 months, they leave. He noted there has been a turnover of six employees in the position in the past 5 years due to the salary issue. Joan G. Kerschner, Director, Department of Museums, Library and Arts, testified literacy funding is more problematic than other problematic areas due to the reliance upon three grants which are tentative. She explained Title VI originally was recommended for recision by the federal government, but there is the chance it will be reinstated. In response to a query by Senator Raggio, Ms. Kerschner acknowledged Title VI has paid for out-of-state travel in the past, but she is concerned the funding may not be provided at all. Ms. Kerschner pointed out the other source of funding for operations comes from the State Literacy Resource Center which also has been recommended for elimination by the United States House of Representatives, as may be done with funding from Adult Basic Education (ABE). She declared past policy has used the state General Fund for salaries, while Title VI funding has been used for operating expenses, State Literacy Resource Center funding provided books and materials, and ABE funded tutoring costs. Ms. Kerschner acknowledged the source of all the funding is tentative. She suggested the General Fund be accessed to keep the office open and allow the staff to be resourceful if other sources are eliminated. Senator Raggio asked what is the necessity for the travel. He pointed out the $2,000 for travel each year, formerly paid from Title VI funds, could be approved from federal funding if it comes about. Ms. Kerschner replied the trips are used to assist the staff who in turn train everyone else in the program throughout the state. She declared one or two of the trips are essential. She stated a needs assessment has been made which indicates the status of literacy in the state is "frightening." She noted the staff trains approximately 1,000 volunteers each year, and the program serves nearly 20,000 people each year. Senator Raggio voiced the opinion the General Fund should not be used if it is not necessary. Mr. Guernsey interjected it may be possible to succeed with $1,000 funding in each year for out-of- state travel. Senator Raggio suggested $1,000 be authorized from the General Fund and $1,000 from federal funding. Senator Coffin proposed $2,000 be authorized from the federal funding and $1,000 from the General Fund along with a letter of intent to instruct that federal funds be used and the General Fund appropriation be reverted if the federal funds become available. SENATOR COFFIN MOVED TO CLOSE THE BUDGET WITH THE AMENDMENT AS PROPOSED. SENATOR RAWSON SECONDED THE MOTION. THE MOTION CARRIED. (SENATOR O'DONNELL WAS ABSENT FOR THE VOTE.) * * * * * In the absence of further business, the meeting was adjourned at 10:43 a.m. RESPECTFULLY SUBMITTED: Judy Jacobs, Committee Secretary APPROVED BY: Senator William J. Raggio, Chairman DATE: Senate Committee on Finance April 24, 1995 Page