MINUTES OF THE JOINT SUBCOMMITTEE MEETING OF SENATE COMMITTEE ON FINANCE AND ASSEMBLY COMMITTEE ON WAYS AND MEANS Sixty-eighth Session April 25, 1995 The joint subcommittee meeting on Human Resources/K-12 of the Senate Committee on Finance and the Assembly Committee on Ways and Means was called to order by Chairman Raymond D. Rawson, at 7:40 a.m., on Tuesday, April 25, 1995, in Room 352 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. Exhibit B is the Attendance Roster. SENATE COMMITTEE MEMBERS PRESENT: Senator Raymond D. Rawson, Chairman Senator William J. Raggio Senator Bob Coffin Senator Dean A. Rhoads ASSEMBLY COMMITTEE MEMBERS PRESENT: Mr. Lynn Hettrick, Chairman Mrs. Jan Evans, Chairman Ms. Sandra Tiffany Mr. Dennis L. Allard Mrs. Vonne Chowning Mr. Joseph E. Dini, Jr. STAFF MEMBERS PRESENT: Dan Miles, Fiscal Analyst Mark Stevens, Fiscal Analyst Larry L. Peri, Program Analyst Cristin Buchanan, Committee Secretary OTHERS PRESENT: John Sarb, Administrator, Division of Child and Family Services, Department of Human Resources Christa Peterson, Deputy Administrator, Division of Child and Family Services, Department of Human Resources Sherry Blackwell, Budget Analyst, Budget Division, Department of Administration David F. Bash, III, Chief, Youth Parole Bureau, Division of Child and Family Services, Department of Human Resources Annette Swainston, Administrative Services Officer III, Division of Child and Family Services, Department of Human Resources May Shelton, Director, Washoe County Social Services Children and Family Administration - Page 1273 Larry L. Peri, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, reviewed the Budget Closing Action sheet for this budget (pages 1-2, Exhibit C). Mr. Peri pointed out the problems the division is having collecting court ordered support payments has prompted the division to submit a proposal (pages 3-6 of Exhibit C) to increase collections. The Fiscal Analysis Division recommends the use of collection agencies as opposed to hiring a state employee to perform the collection duties. In addition, the division has submitted requests for full- service offices in Battle Mountain and Pahrump. Mr. Peri indicated the Fiscal Analysis Division has scaled down the requests (handwritten adjustments to pages 7-13, Exhibit C) and is recommending funding accordingly. For the Battle Mountain office, the division requested three full-time employees; however, the Fiscal Analysis Division recommends funding for one full-time Social Worker and a half-time Program Assistant. Senator Rawson reminded the committee that when the budget is recommended to be closed, the motion should contain a provision to allow the committee to reopen the budget to revise the funding, should that be necessary, once the Business Process Reengineering (BPR) effort has been completed. Senator Rhoads asked what the total amount will be for funding the Battle Mountain and Pahrump offices. Mr. Peri drew the committee's attention to the top of pages 8 and 11 of Exhibit C, which shows the total revenue needed for each office. Ms. Tiffany questioned if the BPR for the division is related to the BPR currently being conducted in Health and Human Services. Replying in the negative, Mr. Peri stated the BPR for the division is separate and was approved by the Interim Finance Committee (IFC) in June of 1994. Realizing that the recommendation to put court ordered support payment revenue in the budget may be approved, Mr. Peri advised the committee that statutory revisions to Nevada Revised Statutes (NRS) 210.180 and 210.580 will be necessary. The statutes currently direct the superintendents of the training centers to deposit court ordered support payments directly into the General Fund. SENATOR COFFIN MOVED TO RECOMMEND CLOSING THE BUDGET IN ACCORDANCE WITH STAFF PROPOSALS ON PAGES 1 AND 2 OF EXHIBIT C, INCLUDING THE SCALED DOWN FUNDING FOR THE BATTLE MOUNTAIN AND PAHRUMP OFFICES, THE COURT ORDERED SUPPORT PAYMENT AUGMENTATION AND A REQUEST FOR A BILL DRAFT REQUEST. MR. HETTRICK SECONDED THE MOTION. ASSEMBLY: THE MOTION CARRIED. (MR. DINI WAS ABSENT FOR THE VOTE.) SENATE: THE MOTION CARRIED UNANIMOUSLY. ***** Youth Community Services - Page 1287 Mr. Peri reviewed the recommended adjustments to the budget as outlined on pages 14 and 15 of the Budget Closing Action (Exhibit C). Highlighting a potential abuse of general funds, should Title XIX Medical expenditure authority remain in this budget, Mr. Peri indicated that the committee may want to transfer the expenditure authority for the Title XIX Medical to the Welfare Division. Senator Rawson asked if a separate category will have to be created within the Welfare Division budget if the Title XIX Medical expenditures are to be administered by that division. Mr. Peri answered in the affirmative. Mrs. Evans asked for feedback from the division if a separate medical payment category is created within the division's budget to continue to administer the medical expenditures. John Sarb, Administrator, Division of Child and Family Services, Department of Human Resources, indicated the division desires to retain the medical expenditure authority in its budget for two reasons. "To completely display just how much these children cost...the other was accountability...We wanted it in our budget so that we could get a handle on those costs," he stated. Senator Rawson stated his preference will be to create a separate category within the Welfare Division budget, and asked, "Is that something you feel you can live with?" Mr. Sarb expressed his perplexity at what advantage transferring the medical expenditure authority to the Welfare Division will yield. He commented, "I ask that in the expectation that I am going to be expected to deliver on that advantage, and I cannot see one." Senator Rawson explained should the medical expenditure authority be completely expended, then both divisions, the Child and Family Services Division and the Welfare Division, will have to come before IFC and give a complete and detailed report as to why more funding is necessary. Mr. Sarb declared, "My fear is that just as we have gotten away from...that situation, where one agency is responsible for another agency's activities, we are creating that same dynamic by doing that [transferring medical expenditure authority to the Welfare Division]." Senator Rawson responded, "We need to get a handle on our whole welfare budget...By separating them out, we tend to lose track of how much our welfare spending is." Mr. Sarb questioned if the General Fund match portion of the medical expenditure will also be transferred into the special account in the Welfare Division. He stated, "That is currently in our budget...Do you want to leave that in our budget and take the federal portion back to welfare?" Senator Rawson answered in the affirmative. Mark Stevens, Fiscal Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, clarified the state General Fund match will remain in the Child and Family Service Division budget, but the federal funds will be administered through the Welfare Division. Agreeing with Senator Rawson's proposal, Mr. Sarb suggested that the Welfare Division split the medical expenditure category into two subcategories, one for mental health payments and the other for primary health care payments. Mr. Peri referenced the possibility of increasing Federal Title IV- E revenue in the budget and referred to the schedule on page 16 of Exhibit C, which summarizes the major revenue items in the account. Senator Rawson commented it may be necessary to revisit the budget since federal funding can be altered or cut at any time. Mr. Sarb clarified that some IV-E funding will be replaced by IV- AEA funds. He stated, "I cannot imagine that IV-E can or should remain the same percent...it was in 1994. We have got a significant new funding source in there that replaces that in part." Senator Rawson asked if the IV-AEA funding will accomplish the same thing as IV-E funding. Answering in the affirmative, Mr. Sarb asserted, "Accomplish the same thing and...replace former IV-E collections. Same amount of money generated federally, just in a different source, given that IV-E cannot remain the same percent of the total that it was in 1994." Senator Rawson indicated the attempt to increase federal funds is to free-up General Fund revenue. Asserting his understanding, Mr. Sarb said, "My point would be that you cannot do it on both sides, you cannot do it on IV-E and IV- AEA. You can do it on one or the other." Senator Rawson reflected, "If you take the two of those in 1994, whatever the product of those two were, we ought to be able to reach the same product percentage now." He reminded the committee that when a motion is made, it should include giving the Fiscal Analysis Division the ability to modify the budget, if necessary, to carry out the substitution of the federal funds. Ms. Tiffany inquired whether the Fiscal Analysis Division is going to pursue more discussions on breaking up the medical payments expenditure. Senator Rawson answered, "That depends on the motion. It would be my preference to set up a special spending category." Ms. Tiffany declared by breaking out the medical payments, it will be easier to track those expenditures. She stated, "...Let us get those numbers accumulated so we can use them in the future." SENATOR RAGGIO MOVED TO RECOMMEND CLOSING THE BUDGET IN ACCORDANCE WITH STAFF PROPOSALS ON PAGES 14 AND 15 OF EXHIBIT C, WITH THE UNDERSTANDING THAT A SEPARATE MEDICAL PAYMENTS EXPENDITURE CATEGORY BE CREATED FOR THE CHILDREN'S DIVISION IN THE WELFARE DIVISION BUDGET, AND THAT AN APPROPRIATE ADJUSTMENT BE MADE FOR TITLE IV-E FUNDS. MS. TIFFANY SECONDED THE MOTION. ASSEMBLY: THE MOTION CARRIED. (MR. DINI WAS ABSENT FOR THE VOTE.) SENATE: THE MOTION CARRIED UNANIMOUSLY. ***** Victims of Domestic Violence - Page 1295 Mr. Peri indicated the Fiscal Analysis Division has no recommended changes to the budget. MR. HETTRICK MOVED TO RECOMMEND CLOSING THE BUDGET AS RECOMMENDED BY THE GOVERNOR. MRS. EVANS SECONDED THE MOTION. ASSEMBLY: THE MOTION CARRIED. (MR. DINI WAS ABSENT FOR THE VOTE.) SENATE: THE MOTION CARRIED UNANIMOUSLY. ***** Child Abuse and Neglect - Page 1297 Mr. Peri reviewed the adjustments to the budget, as shown on page 18 of Exhibit C. Mr. Sarb explained the division is concerned that it may not be able to earn the IV-AEA funds in order to pay the salary of the Nurse Case Manager. He clarified if the division can retain the ability to expend funds in one budget account, that were earned in another budget account, the division has no problem with the recommended changes to the budget. Senator Raggio asked at what point would the division know whether the Nurse Case Manager has generated enough funding for her position. Mr. Sarb surmised it will be 6 to 9 months into the fiscal year before the division will know whether the federal funding will be sufficient to pay the salary of the position. SENATOR RAGGIO MOVED TO RECOMMEND CLOSING THE BUDGET IN ACCORDANCE WITH STAFF PROPOSALS ON PAGE 18 OF EXHIBIT C. MRS. EVANS SECONDED THE MOTION. ASSEMBLY: THE MOTION CARRIED. (MR. DINI WAS ABSENT FOR THE VOTE.) SENATE: THE MOTION CARRIED UNANIMOUSLY. ***** Child Welfare Trust - Page 1301 Referring to page 19 of Exhibit C, Mr. Peri reviewed the recommended adjustment to the budget. Senator Raggio asked whether the budget "is an account which only receives funds for children's benefits used to reimburse the Division of Child and Family Services for the costs of care provided to the children." Answering in the affirmative, Mr. Peri stated the adjustment to the budget will complete the existing transfer to the child welfare budget. SENATOR RAGGIO MOVED TO RECOMMEND CLOSING THE BUDGET IN ACCORDANCE WITH THE STAFF PROPOSAL ON PAGE 19 OF EXHIBIT C. MS. TIFFANY SECONDED THE MOTION. ASSEMBLY: THE MOTION CARRIED. (MR. DINI WAS ABSENT FOR THE VOTE.) SENATE: THE MOTION CARRIED UNANIMOUSLY. ***** Children's Trust Account - Page 1303 Mr. Peri asserted the Fiscal Analysis Division has no recommended adjustments to the budget. MS. TIFFANY MOVED TO RECOMMEND CLOSING THE BUDGET AS RECOMMENDED BY THE GOVERNOR. SENATOR RAGGIO SECONDED THE MOTION. ASSEMBLY: THE MOTION CARRIED. (MR. DINI WAS ABSENT FOR THE VOTE.) SENATE: THE MOTION CARRIED UNANIMOUSLY. ***** Northern Nevada Child and Adolescent Services - Page 1305 Mr. Peri explained the adjustments the Fiscal Analysis Division recommends for this budget, as outlined on page 21 of Exhibit C. Senator Raggio asked whether an adjustment will need to be made in the Purchase of Social Services budget and whether it has been closed. Mr. Peri assured Senator Raggio the Purchase of Social Services budget has not been closed and will be augmented, if needed, at the time of closing. Christa Peterson, Deputy Administrator, Division of Child and Family Services, Department of Human Resources, pointed out the Contract Psychiatric Services, Enhancement 275 Consumer Treatment (E-275), is 100 percent federally funded. Senator Rawson questioned, "Are you suggesting you might want some leeway to use those federal funds?" Mr. Peri clarified Ms. Peterson does not want to lose the authority to expend those federal funds. Ms. Peterson explained her concern stems from the fact the recommendation to cut the Contract Psychiatric Services is based on past history regarding use of the psychiatrist, which may not accurately predict the future use of the psychiatric services. She declared, "Since these are federal funds that are available, I would like to have the opportunity to use them for that purpose." SENATOR RHOADS MOVED TO RECOMMEND CLOSING THE BUDGET IN ACCORDANCE WITH STAFF PROPOSALS ON PAGE 21 OF EXHIBIT C, WITH THE EXCEPTION THE DIVISION HAS THE AUTHORITY TO USE THE ADDITIONAL FEDERAL FUNDS SHOULD THE NEED ARISE. MRS. EVANS SECONDED THE MOTION. ASSEMBLY: THE MOTION CARRIED. (MR. DINI WAS ABSENT FOR THE VOTE.) SENATE: THE MOTION CARRIED. (SENATOR COFFIN WAS ABSENT FOR THE VOTE.) ***** Senator Rawson commented, "...As I understand this action, we have left you the authority to still recover that federal money...." Mr. Peri requested clarification of the vote and asked, "Do we want to leave the amount, as recommended by the Governor, to not hinder the agency in the ability to collect those federal funds, but restrict it to that category...?" Senator Rawson responded that is his understanding. Mr. Peri stated, "It is federal...block grant funds that if we do reduce it, it would just be that much less money the agency could get. So that suggestion by Ms. Peterson is a good one. We could leave it at the amount recommended...." Senator Rawson added, "By leaving it at Governor Recommends, it allows you [the division] to purchase services in that category." Realizing the focus of the discussion, Mr. Peri clarified: The way we have recommended that this be closed would not affect the authority to collect that mental health block grant. What we are suggesting...is that the original request...for $30,868 in each year...be reduced to $9,810 to provide for Contract Psychiatric coverage. In doing that, we would only incur expenditure authority of $9,810, which would free up the difference between the $30,868 and the $9,810. Our recommendation is that that revenue be left intact, but [the] General Fund be offset by the difference of $21,058...We would propose that the difference be utilized to reduce the General Fund, which means their federal authority would be maintained. Mr. Sarb interjected: There is a maintenance of effort requirement on that block grant. This is effectively a reduction in that maintenance of effort in this category and would be seen as such by the [Comprehensive Mental Health Service] CMHS monitors...If we had to have increased psychiatric contract services...we could not use block grant for it at that point. We would have to use General Funds. It would effectively take us out of using block grants for this purpose in the future, if you reduce it now. That is my fear. Senator Rawson directed the Fiscal Analysis Division to consult with the agency regarding potential problems that may arise by reducing funding in the Contract Psychiatric Services category. Mrs. Evans suggested that the agency discuss any potential problems with the CMHS monitors immediately, and if there is a problem, bring it back to the committee for additional discussion and consideration. Southern Nevada Child and Adolescent Services - Page 1313 Mr. Peri testified the Fiscal Analysis Division has no recommended changes to the budget. He indicated there is a potential that both this budget and the Northern Nevada Child and Adolescent Services budget may be able to obtain additional mental health block grant awards. Mr. Peri requested the committee to provide the Fiscal Analysis Division the option of revising the budgets to offset General Fund revenue, should additional mental health block grant revenue become available. Senator Rawson asked if Mr. Peri is requesting the committee to refrain from closing the budget for a couple of weeks. Mr. Peri answered in the negative and clarified he should know if additional mental health block grant revenue is available prior to the full joint committee meeting to close the budget. Senator Raggio pointed out that the action the subcommittee takes on any budget is simply a recommendation. If an adjustment to a budget is needed, it can be done, as long as it is prior to the Senate Committee on Finance and Assembly Committee on Ways and Means meeting jointly to close the budgets. Mr. Hettrick requested an explanation on why the Governor Recommended $92,342 in the Base budget for Maintenance of Buildings and Grounds when the agency only requested $17,894. Sherry Blackwell, Budget Analyst, Budget Division, Department of Administration, indicated, "That adjustment was moving the buildings and grounds related contracts out of category 04 to properly reflect them in the respective category." Senator Rawson clarified it is a transfer rather than an increase. SENATOR RHOADS MOVED TO RECOMMEND CLOSING THE BUDGET AS RECOMMENDED BY THE GOVERNOR. MRS. EVANS SECONDED THE MOTION. ASSEMBLY: THE MOTION CARRIED. (MR. DINI WAS ABSENT FOR THE VOTE.) SENATE: THE MOTION CARRIED. (SENATOR COFFIN WAS ABSENT FOR THE VOTE.) ***** Child Care Services - Page 1323 Mr. Peri reviewed the changes recommended to the budget (page 23 of Exhibit C). Senator Raggio questioned how the division interacts with counties on the licensing and monitoring of child care facilities. Mr. Sarb explained that cities and counties may elect to do their own child care licensing, as long as the local ordinances are not less stringent than state law. He said the division licenses 14 counties while Washoe County and Carson City perform their own licensing. He indicated that Clark County licenses unincorporated areas of the county, Las Vegas licenses child care facilities in the city municipality and the division licenses Mesquite, Boulder City, Henderson and North Las Vegas. SENATOR RAGGIO MOVED TO RECOMMEND CLOSING THE BUDGET IN ACCORDANCE WITH STAFF PROPOSALS ON PAGE 23 OF EXHIBIT C. MRS. EVANS SECONDED THE MOTION. ASSEMBLY: THE MOTION CARRIED. (MR. DINI WAS ABSENT FOR THE VOTE.) SENATE: THE MOTION CARRIED. (SENATOR COFFIN WAS ABSENT FOR THE VOTE.) ***** Youth Corrections Services - Page 1327 Reviewing the recommended adjustments to the budget, Mr. Peri referred to page 24 of Exhibit C. Senator Rhoads asked if the Elko facility is discontinuing its program and whether that will affect the budget. Mr. Sarb answered in the negative and clarified the Elko facility is budgeted in the Youth Alternative Placement budget. SENATOR RHOADS MOVED TO RECOMMEND CLOSING THE BUDGET IN ACCORDANCE WITH STAFF PROPOSALS ON PAGE 24 OF EXHIBIT C. SENATOR RAGGIO SECONDED THE MOTION. ASSEMBLY: THE MOTION CARRIED. (MR. DINI WAS ABSENT FOR THE VOTE.) SENATE: THE MOTION CARRIED. (SENATOR COFFIN WAS ABSENT FOR THE VOTE.) ***** Youth Alternative Placement - Page 1331 Mr. Dini joined the meeting at 8:50 a.m while Mr. Peri was reviewing the adjustments recommended on page 25 of Exhibit C for the budget. Senator Rhoads asked for clarification, "Is Elko considering leaving...or...can they...get out of the program?" Mr. Sarb replied: Judge Stringfield [Thomas L., Fourth Judicial District]...would like to...start a new regional facility in Elko County, the region encompassed being Elko, White Pine, Lincoln, and Lander counties. Their allocations, which currently feed China Spring [Youth Camp] would go to this facility in Elko...If the state participated in the Elko facility to the same extent it participates in China Spring [Youth Camp], then the state's increase would be about $56,000 each year of the biennium. Mrs. Evans inquired if the Elko facility will come on-line during the coming biennium. Mr. Sarb indicated according to Judge Stringfield's estimate, the facility will be completed January, 1996. Senator Raggio asked where and when the facility is being built and what is the source of funding. Senator Rhoads reflected the facility is currently under construction in Elko and the funding is coming from a joint venture between Eureka County and Elko. Senator Raggio questioned if youths will be sent to the new facility in Elko instead of going to the China Spring Youth Camp. Mr. Sarb responded his understanding "is that they are going to build the detention facility and a part of that would be for a longer term, six beds...it is going to be a multi-use [facility]." Senator Raggio requested clarification whether the facility is to be used for placement after hearings. Mr. Sarb stated, "It is going to be both. It will be both a detention facility and then some portion of it, six beds, long- term." Senator Raggio queried how six beds for long-term use can accommodate the number of placements coming from the China Spring Youth Camp. Mr. Sarb agreed the six beds will not entirely accommodate the number of placements from China Spring, however, the location of the facility will accommodate some of the eastern counties. Senator Raggio affirmed: I understand that, but the fact of the matter is that with respect to the 16 other counties, there has to be a place for placement, not just detention. Detention is the period from arrest until court hearing...If this is going to be primarily a detention facility with only six beds for placement for the counties that have been identified, I do not see where that is going to be adequate and therefore we should not remove the funding or the assessment with respect to China Spring [Youth Camp]. Senator Rawson suggested Judge Stringfield may have a facility in mind for more than detention purposes. Mr. Sarb surmised Judge Stringfield is not implying funding for the China Spring Youth Camp be reduced in any way. The new facility will be an additional expenditure for the counties and the state. Mrs. Evans requested a copy of the information concerning this issue that Judge Stringfield forwarded to Mr. Sarb. SENATOR RAGGIO MOVED TO RECOMMEND CLOSING THE BUDGET IN ACCORDANCE WITH STAFF PROPOSALS, INCLUDING ADDITIONAL FUNDING OF $20,000 IN EACH YEAR OF THE BIENNIUM FOR THE CHINA SPRING YOUTH CAMP SUMMER SCHOOL PROGRAM. MR. HETTRICK SECONDED THE MOTION. ASSEMBLY: THE MOTION CARRIED UNANIMOUSLY. SENATE: THE MOTION CARRIED UNANIMOUSLY. ***** Probation Subsidies - Page 1335 Mr. Peri advised the committee no adjustments are recommended for this budget. SENATOR RAGGIO MOVED TO RECOMMEND CLOSING THE BUDGET AS RECOMMENDED BY THE GOVERNOR. MRS. EVANS SECONDED THE MOTION. ASSEMBLY: THE MOTION CARRIED UNANIMOUSLY. SENATE: THE MOTION CARRIED UNANIMOUSLY. ***** Nevada Youth Training Center - Page 1337 Mr. Peri discussed the revisions recommended in the budget as contained on page 33 of Exhibit C. SENATOR RAGGIO MOVED TO RECOMMEND CLOSING THE BUDGET IN ACCORDANCE WITH STAFF PROPOSALS ON PAGE 33 OF EXHIBIT C, WITH RESTORATION OF THE PRINCIPAL PSYCHOLOGIST POSITION TO THE DIVISION. MR. HETTRICK SECONDED THE MOTION. ASSEMBLY: THE MOTION CARRIED UNANIMOUSLY. SENATE: THE MOTION CARRIED UNANIMOUSLY. ***** In discussion prior to the vote, Mr. Dini questioned whether the agency has worked with the order of the Rite of Passage to place the more violent offenders in a program designed to fit their crimes. David F. Bash, III, Chief, Youth Parole Bureau, Division of Child and Family Services, Department of Human Resources, affirmed he has been in contact with the administrators of the Rite of Passage and is currently trying to negotiate a contract. Senator Rawson stated the budget may need to be revised according to a proposal which will be presented to the committee at a later date; however, the joint subcommittee can still recommend closure of the budget. Mr. Bash commented: That is what I was going to request, that the items already recommended be approved and...closed, but that the option be left open for a presentation by the Governor's Office. Clearly, there is a need for additional bed spaces for juveniles. Our question is what type and what kind of program and where. There are so many bills currently affecting juvenile justice that are pending that they will have a substantial impact on those types of beds and the programs needed. The Governor's Office and the division are currently meeting with the stake holders...county chief probation officers, juvenile judges, and legislators..., to develop a plan to present to this body, which would be available within 7 to 10 days, so we would like to ask for a portion of the budget to be left open. Senator Raggio expressed concern that perhaps the boot camp proposal should not be contained in this account. He pointed out the contracting services should be located in the Youth Alternative Placement budget. Another concern Senator Raggio expressed is whether the Rite of Passage program is directed towards serious offenders. Mr. Dini interjected the Rite of Passage program is under direct supervision of the courts. Senator Raggio conceded, "That would be appropriate, then. If it is not an offender program, I do not think I would want to participate in referring serious offenders to something other than some place where they get a message." Senator Coffin asked whether Edwin C. Burgess, Superintendent, Youth Training Center, Department of Human Resources, requested an electrician in his budget request to the Governor and whether a follow-up to that request has been made. Mr. Sarb commented he cannot locate where the request for an electrician is in the original budget request submitted by Mr. Burgess. Annette Swainston, Administrative Services Officer III, Division of Child and Family Services, Department of Human Resources, pointed out that she, too, does not show that an electrician was requested by the division. Senator Coffin questioned whether the division contracts out for electrical services and if it would be more cost effective to have an electrician on staff. Ms. Swainston stated, "I do not know the answer to your question." Mrs. Evans requested clarification on the motion, as made by Senator Raggio. Senator Raggio stated his motion encompassed deleting the boot camp and adding a Principal Psychologist position. He clarified: My comment was that if they want to come back with a proposal for transferring some money from out-of-state placements into Rite of Passage or somewhere else, that is in the other budget where we now fund out-of-state placements, it should not be in this budget. Mrs. Evans expressed her concern: Given Mr. Bash's request to come back to us with a proposal, it could be that it would require some expenditure. We have $200,000 set aside for juvenile offenders and if we simply vote with the motion, it looks like we are wiping out that $200,000...Then there would not be anything if...there are expenditures with their proposal.... Senator Raggio indicated, "The proposal included construction...at the training center and I can tell you right now, nobody there wanted it and so we are not deleting anything that affects this program by deleting that boot camp." Mrs. Evans said: I am not arguing for the boot camp, I want to make that clear. I am arguing that we have some money that has been set aside for juvenile justice, wiping that out, and if they come back with another proposal, saying...we do not have any money to do that, because we do.... Senator Rawson assured Mrs. Evans when the executive branch makes the presentation "they will have the money there and we just have to be careful what we are plugging into other parts of the budget. We will save enough out of this budget, though, to be able to handle that." Ms. Tiffany recalled Assemblyman Spitler's concern over spending $1.6 million in a one-shot appropriation on an old facility and asked whether it is worth investing more funds. Senator Rawson suggested the $1.6 million is a reasonable sum, given the size of the facility. Senator Raggio stressed the facility is well maintained despite its age. Senator Rhoads commented the condition of the facility has been overstated, that the building is in good condition and is well maintained. He voiced his support for the $1.6 million appropriation for the facility and indicated the funds will be put to good use. Farm Account - Youth Training Center - Page 1341 Mr. Peri pointed out the Fiscal Analysis Division has no recommended changes to the budget. SENATOR RAGGIO MOVED TO RECOMMEND CLOSING THE BUDGET AS RECOMMENDED BY THE GOVERNOR. MS. TIFFANY SECONDED THE MOTION. ASSEMBLY: THE MOTION CARRIED UNANIMOUSLY. SENATE: THE MOTION CARRIED UNANIMOUSLY. ***** Chapter I and II Education Programs - Page 1343 Mr. Peri indicated there are no recommended adjustments to this budget. SENATOR RAGGIO MOVED TO RECOMMEND CLOSING THE BUDGET AS RECOMMENDED BY THE GOVERNOR. MR. ALLARD SECONDED THE MOTION. ASSEMBLY: THE MOTION CARRIED UNANIMOUSLY. SENATE: THE MOTION CARRIED UNANIMOUSLY. ***** Caliente Youth Center - Page 1347 Reviewing the recommended adjustments to this budget, Mr. Peri referred to page 39 of Exhibit C. Senator Rawson commented the committee should consider, in addition to the Administrative Aide, adding a maintenance position to this budget. He stressed the facility has expanded and maintenance responsibilities are increasing. Senator Raggio inquired if all the units at Caliente are utilized and Mr. Sarb answered in the affirmative. MRS. EVANS MOVED TO RECOMMEND CLOSING THE BUDGET IN ACCORDANCE WITH STAFF PROPOSALS ON PAGE 38 OF EXHIBIT C, INCLUDING ADDING AN ADMINISTRATIVE AIDE POSITION AND A MAINTENANCE POSITION. MRS. CHOWNING SECONDED THE MOTION. ASSEMBLY: THE MOTION CARRIED UNANIMOUSLY. SENATE: THE MOTION CARRIED UNANIMOUSLY. ***** Chapter I - Special Education Project - Page 1353 Mr. Peri stated the Fiscal Analysis Division recommends closing this budget pursuant to the Governor's recommendation. SENATOR RAGGIO MOVED TO RECOMMEND CLOSING THE BUDGET AS RECOMMENDED BY THE GOVERNOR. MR. ALLARD SECONDED THE MOTION. ASSEMBLY: THE MOTION CARRIED UNANIMOUSLY. SENATE: THE MOTION CARRIED UNANIMOUSLY. ***** Mr. Peri advised: ...The Division of Child and Family Services...has experienced tremendous growth in out-of-state placements. This budget...has a plan within it to bring back a considerable number of kids from out-of-state. We [the Fiscal Analysis Division] would like the committee to know the recommendations you [the committee] have reviewed and approved today, keep that plan intact...This is a critical issue and a letter of intent could be considered by the committee to have the division report to the IFC, quarterly, to give that committee [IFC] progress reports on how those projected number of kids, being returned to Nevada, is progressing, how staff, that are proposed to be hired and trained by certain dates, is progressing and so on. If you could consider giving the Fiscal Analysis Division the authority to put together a letter of intent for review by the full committees when these budgets are closed and final, that would be our [the Fiscal Analysis Division] suggestion. Mrs. Evans indicated she has received correspondence and telephone calls from constituents regarding Project Crisis and requested an overview of the Project Crisis program. Mr. Sarb recalled Project Crisis is a federally funded grant program, whose funding is scheduled to end October 1, 1996. Ms. Peterson replied due to increased occurrences of abuse and neglect of small children, Project Crisis was started to provide intensive home-based crisis services to children and their families in an attempt to decrease the need to permanently remove children from their homes to be placed in foster care. Mrs. Evans asked if a plan exists to continue funding the program. Ms. Peterson answered in the negative and added the program may be partially federally funded through Medicaid; however, additional funding will be needed to continue the program. May Shelton, Director, Washoe County Social Services, appeared before the committee in support of state funding of Project Crisis. She commented: This is a really cost-effective program. It only costs about $847 per case...If we are trying to keep children in the home, and out of placement, and safe, I think this is a really good program. This program needs $200,000...for southern Nevada, about $120,000 and $97,000 for northern Nevada.... Mr. Peri explained when the federal funding expires 3 months into the second year of the coming biennium, the proposal is to continue the program for the remaining 9 months in FY 1997 in both Northern Nevada Child and Adolescent Services and Southern Nevada Child and Adolescent Services budgets. Although it had been requested by the division, it was not recommended by the Governor. The agency, in response to specific questions, has provided estimates that mirror the decision units in the budget which continue these particular programs. He emphasized: Specifically, Northern Nevada Child and Adolescent Services...maintenance decision unit, M-508...that request, $97,217...is requesting that all General Fund be utilized...This request before you...seeks to add an additional half-time Program Assistant II. So it goes...beyond simply continuing the program...It also asks for...equipment...that is not in the program...In reviewing the responses that we received from the agency and the questions that we posed, conceivably this could be funded 50 percent General Fund, 50 percent either Title XIX Medicaid or IV-A ADC federal revenue...Keep in mind this would continue the program through the remainder of FY 1997...then in the next Executive Budget, you would have to reconsider it...for continuation for the following 2 years.... Senator Raggio asked where in the Base budget are the existing federally funded positions and if there is a reduction in positions. Mr. Peri recalled those positions are located in the Chapter I - Special Education Project budget, under Crisis Nurseries category, which decreases in the second year of the biennium. Senator Raggio commented, "I think we need an analysis of this to even give it any thought. This is not the way to review it." Senator Rawson instructed the Fiscal Analysis Division to provide the committee with further information on Project Crisis in addition to drafting the letter of intent as recommended by Mr. Peri. The meeting was adjourned at 9:35 a.m. RESPECTFULLY SUBMITTED: Cristin Buchanan, Committee Secretary APPROVED BY: Senator Raymond D. Rawson, Chairman DATE: Assemblyman Lynn Hettrick, Chairman DATE: Assemblywoman Jan Evans, Chairman DATE: Senate Committee on Finance Assembly Committee on Ways and Means Joint Subcommittee on Human Resources/K-12 April 25, 1995