MINUTES OF THE MEETING OF THE JOINT SUBCOMMITTEE ON GENERAL GOVERNMENT ASSEMBLY COMMITTEE ON WAYS AND MEANS AND SENATE COMMITTEE ON FINANCE Sixty-eighth Session April 27, 1995 The meeting of the Joint Subcommittee on General Government of the Assembly Committee on Ways and Means and the Senate Committee on Finance was called to order at 7:47 a.m., on Thursday, April 27, 1995, Chairman Tiffany presiding, in Room 321 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. Exhibit B is the Attendance Roster. ASSEMBLY SUBCOMMITTEE MEMBERS PRESENT: Ms. Sandra Tiffany, Chairman Mr. Dennis L. Allard Mrs. Maureen E. Brower Mrs. Jan Evans Ms. Chris Giunchigliani Mr. Bob Price ASSEMBLY SUBCOMMITTEE MEMBERS ABSENT: None SENATE SUBCOMMITTEE MEMBERS PRESENT: Senator Lawrence E. Jacobsen Senator Bernice Mathews SENATE SUBCOMMITTEE MEMBERS ABSENT: Senator William R. O'Donnell, Chairman (Excused) STAFF MEMBERS PRESENT: Mr. Bob Guernsey, Deputy Fiscal Analyst Mr. Brian Burke, Program Analyst Mr. Ronald Steele, Program Analyst BUDGET CLOSINGS DEPARTMENT OF EMPLOYMENT, TRAINING AND REHABILITATION Chairman Tiffany noted Ms. Carol Jackson, Director, Department of Employment, Training and Rehabilitation, was unable to attend due to illness and would be represented by Mr. John Orr, Assistant Director. Chairman Tiffany asked Mr. Burke to present an overview of the department budget. Mr. Burke explained the effect of the department's planned reorganization on the budget accounts. Staffing in the Director's Office would be expanded from four to eleven positions made possible through the transfer of existing staff. An Administrative Services Division would be created for financial and personnel services, and an Information Development and Processing Division would be created for applications development and research. He explained the overall General Fund impact of the reorganization was minimal, i.e., approximately $41,000 in Fiscal Year 1996 and $35,000 in Fiscal Year 1997. Mr. Burke noted all of the budget closing decisions made by the subcommittee would impact the departmental cost allocations throughout all department budget accounts. He suggested it would be necessary to make mechanical adjustments based upon the subcommittee decisions made at this meeting. Mr. Burke stated discussion had been held regarding the potential merger of the Welfare Division JOBS program with the Department of Employment, Training and Rehabilitation. He said the subcommittee might wish to issue a letter of intent directing that a study be completed during the biennium, with a recommendation to be put forth before the 1997 Legislature. The subcommittee might also wish to require quarterly reports to the Interim Finance Committee. Chairman Tiffany suggested the study look at all state agencies which had a jobs component (i.e., placement, training, classification, qualifications, etc.) Ms. Giunchigliani agreed with Chairman Tiffany that would be the best approach. She stressed looking at education facilities at least through the community college level in order for agencies to network to achieve the best possible use of resources and facilities. Senator Mathews noted much of that networking was already taking place in the community colleges. In addition, the community colleges had already gathered data. She suggested looking at possible areas of duplication before implementing a new study. Mr. John Orr, Assistant Director, Department of Employment, Training and Rehabilitation, indicated the department would welcome a letter of intent. He indicated he had already initiated discussions with Western Nevada Community College and Truckee Meadows Community College about placement. He explained job placement should be the responsibility of the department rather than the community colleges so community college resources could be directed toward education. MS. GIUNCHIGLIANI MOVED TO ISSUE A LETTER OF INTENT PURSUANT TO STAFF RECOMMENDATIONS. MRS. BROWER SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. MR. ALLARD AND MR. PRICE WERE ABSENT FOR THE VOTE. * * * * * SENATOR JACOBSEN MOVED TO CONCUR WITH THE ASSEMBLY MOTION. SENATOR MATHEWS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * DIRECTOR'S OFFICE - PAGE 1361 Mr. Burke reported that staff recommended technical adjustments to the budget to reflect increased Deputy Attorney General salary reimbursement costs allocated to each agency in the department. Chairman Tiffany asked Mr. Burke to discuss policy issues associated with this budget. Mr. Burke stated as part of the department's proposed reorganization, agency oversight within the Director's Office would be expanded. Seven existing positions would be moved from other agencies to the Director's Office, including an Internal Auditor, three Management Assistants, and one Administrative Services Officer IV. Mr. Burke said fiscal staff concurred with this change. MRS. BROWER MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS, INCLUDING APPROVAL FOR EXPANSION OF THE DIRECTOR'S OFFICE STAFF. MS. GIUNCHIGLIANI SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. MR. ALLARD AND MR. PRICE WERE ABSENT FOR THE VOTE. BUDGET CLOSED. * * * * * SENATOR MATHEWS MOVED TO CONCUR WITH THE ASSEMBLY MOTION. SENATOR JACOBSEN SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. BUDGET CLOSED. * * * * * ADMINISTRATIVE SERVICES DIVISION - PAGE 1367 Mr. Burke stated no technical adjustments were required in this account. He pointed out the agency was proposing to transfer 44.5 existing positions into the Administrative Services Division to create the division. These are primarily financial services positions. Mr. Burke said the policy decisions to be made by the subcommittee were whether or not to approve creation of the new division and the staffing level within the division, if created. Chairman Tiffany suggested the subcommittee should provide the agency with some incentive to downsize, i.e., including vacancy savings in the budget. She suggested eliminating 20 of the 44.5 positions. She asked what the agency would recommend for downsizing. Mr. Orr said he would not recommend eliminating 20 positions. He suggested staffing levels could be analyzed once the various financial management positions were brought together within the next two weeks. He expressed confidence that at that time efficiencies and opportunities for savings could be recognized. He noted the agency had consistently told the subcommittee of its intention to downsize the top of the organization and direct resources to the field to help people get jobs. He expressed the hope that vacancy savings would not result in the agency reducing the top of the organization without benefitting the bottom. Chairman Tiffany asked Mr. Orr what number of positions he felt could be funded in vacancy savings. Mr. Orr suggested 5 percent vacancy savings would be comfortable in the 28.5 financial management positions. Ten positions were devoted to office services. He was not certain there was any savings capability in that area. He explained possible vacancy savings for three equivalent positions had been discussed in meetings with fiscal staff. Senator Jacobsen asked how personnel were evaluated to determine which positions were unnecessary. Mr. Orr responded strategic planning was needed to identify the division's mission and objectives and goals to achieve that mission. In looking at the entire operation, some areas would be identified that could be streamlined. MRS. BROWER MOVED TO CLOSE THE BUDGET INCLUDING FUNDING FOR SIX POSITIONS IN VACANCY SAVINGS. MS. GIUNCHIGLIANI SECONDED THE MOTION. Ms. Giunchigliani asked, for clarification, if Mrs. Brower meant to move 6 of the 44.5 positions to vacancy savings, and allow the agency to determine where vacancy savings were appropriate. Mrs. Brower responded affirmatively. Chairman Tiffany noted the six positions represented approximately $225,000 in vacancy savings over the biennium. THE MOTION CARRIED UNANIMOUSLY. MR. ALLARD WAS ABSENT FOR THE VOTE. BUDGET CLOSED. * * * * * Senator Mathews asked if the Assembly motion referred to three positions in each year of the biennium. Chairman Tiffany replied the motion included six positions over the course of the biennium. Senator Mathews asked Mr. Burke if his discussions with the agency had addressed vacancy savings for three positions. Mr. Burke said he had discussed vacancy savings for two or three positions with the agency. Senator Mathews inquired what depletion of six positions would do to the department. Mr. Orr responded the agency would make the division work with whatever positions it was allocated. He suggested vacancy savings for six positions was a strong incentive for the agency to downsize. He noted it was the Director's intention to return to the Interim Finance Committee in December 1995 with a complete restructuring plan for the department. He said the department would appreciate the subcommittee deferring start of vacancy savings until January 1, 1996. Chairman Tiffany suggested the motion be amended to defer vacancy savings for three months. Ms. Giunchigliani suggested the amendment include a letter of intent directing the agency to report quarterly to the Interim Finance Committee. MS. BROWER MOVED TO RESCIND HER EARLIER MOTION. MS. GIUNCHIGLIANI SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. MR. ALLARD WAS ABSENT FOR THE VOTE. * * * * * MS. BROWER MOVED TO CLOSE THE BUDGET WITH SIX POSITIONS IN VACANCY SAVINGS, EFFECTIVE OCTOBER 1, 1995, AND FOR THE COMMITTEE TO ISSUE A LETTER OF INTENT DIRECTING THE AGENCY TO REPORT QUARTERLY TO THE INTERIM FINANCE COMMITTEE. MS. GIUNCHIGLIANI SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. MR. ALLARD WAS ABSENT FOR THE VOTE. BUDGET CLOSED. * * * * * SENATOR MATHEWS MOVED TO CONCUR WITH THE ASSEMBLY MOTION. SENATOR JACOBSEN SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. BUDGET CLOSED. * * * * * INFORMATION DEVELOPMENT AND PROCESSING - PAGE 1373 Mr. Burke stated staff recommended technical adjustments to this budget account. The first change was to correct anticipated contract revenue by reducing it to $500,000. In addition, the statewide cost allocation required adjustment pursuant to the Budget Division's new schedule. Chairman Tiffany explained policy decisions to be made included whether or not to approve the creation of this new division and whether or not to take action regarding four Systems Programmer positions recommended to be eliminated by the Department of Information Services' Strategic Plan for Information Resources and Information Technology (SPIRIT). Chairman Tiffany suggested incorporating salary savings equivalent to the personnel costs of the four Systems Programmer positions into the budget, issuing a letter of intent requiring the agency to eliminate equivalent data processing positions and report the status of the position eliminations to the Interim Finance Committee, and not to include the four positions in the base budget for the 1997- 1999 biennium. Mr. Burke explained the SPIRIT document recommended elimination of four specific Systems Programmer positions because the agency was consolidating its mainframe computer with the mainframe computer at the Department of Information Services. The agency had provided substantial information showing those four positions have been redirected to local area network support, wide area network support, PC support, etc. An option to eliminating those four positions specifically was to place vacancy savings equivalent to the costs of the four positions into the budget and require the agency to report quarterly to the Interim Finance Committee on the status of specific equivalent positions that had been eliminated. Ms. Giunchigliani asked if the four positions were currently filled. Mr. Burke replied affirmatively. He explained the recommendation would allow the agency to determine which positions were most critical to its mission rather than to target four specific positions for elimination. MS. GIUNCHIGLIANI MOVED TO CREATE THE INFORMATION DEVELOPMENT AND PROCESSING DIVISION, PLACE THE VALUE OF FOUR SYSTEMS PROGRAMMER POSITIONS INTO VACANCY SAVINGS, ISSUE A LETTER OF INTENT REQUIRING THE AGENCY TO REPORT QUARTERLY TO THE INTERIM FINANCE COMMITTEE ON THE STATUS OF STAFF REDUCTIONS, AND NOT TO INCLUDE THE FOUR POSITIONS IN THE BASE BUDGET FOR THE 1997-1999 BIENNIUM. MRS. BROWER SECONDED THE MOTION. Mrs. Evans asked the status of SPIRIT. Chairman Tiffany explained the only reason SPIRIT was being referred to was that was where the suggestion to eliminate the four positions emanated. It was not proposed those four positions be absorbed by the Department of Information Services when the mainframe computers of the two agencies were combined. Mrs. Evans asked Mr. Orr for his comments on this matter. Mr. Orr said his understanding of the subcommittee recommendation was that vacancy savings would be incorporated in the coming biennium's budget equivalent to the personnel costs of the four Systems Programmer positions. It would be the agency's responsibility to determine where reductions could be realized. He committed to reducing the size of the operation to accomplish the subcommittee's intention. The difference in this recommendation and the recommendation for the Administrative Services budget was that the four positions would not be placed into the base budget for the 1997-1999 biennium. New positions requested by the agency would have to be displayed as an enhancement item to be discussed as a policy issue in the 1997 legislative session. Mr. Orr commented the agency had invited the authors of SPIRIT to come before this subcommittee, the joint committees, and the Interim Finance Committees to explain their rationale for eliminating the four positions. They have refused to do so. He explained the agency was willing to fully cooperate with the subcommittee. He said he was convinced the staffing cuts could be made and the agency could continue an efficient operation. Mr. Price recommended the subcommittee invite the authors of SPIRIT to testify on this matter. THE MOTION CARRIED. MRS. EVANS WAS OPPOSED. MR. ALLARD WAS ABSENT FOR THE VOTE. BUDGET CLOSED. * * * * * SENATOR JACOBSEN MOVED TO CONCUR WITH THE ASSEMBLY MOTION. SENATOR MATHEWS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. BUDGET CLOSED. * * * * * STATE OCCUPATIONAL INFORMATION COORDINATING COMMITTEE (SOICC) - PAGE 1381 Mr. Burke explained this budget account would be transferred to the new division. The budget required technical adjustments to reflect cost allocation adjustments. Chairman Tiffany stated there were no policy issues associated with this account. SENATOR JACOBSEN MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS. SENATOR MATHEWS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. BUDGET CLOSED. * * * * * MRS. BROWER MOVED TO CONCUR WITH THE SENATE MOTION. MR. ALLARD SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. BUDGET CLOSED. * * * * * STATE JOB TRAINING OFFICE - PAGE 1387 Mr. Burke reported there were several cost allocation modifications to be made in this account. He noted the Subcommittee had previously acted to shift staff from non-state owned buildings to state owned space, requiring an adjustment in state- owned and non-state owned rent. Computer hardware expense was reduced to reflect equipment purchased in Fiscal Year 1995 with funds allocated by the Interim Finance Committee. He noted this account reflected the Governor's recommendation for Job Training Partnership Act revenue. There was currently ongoing discussion at the federal level about this revenue, but staff had no information on which to base any changes at this time. Chairman Tiffany stated no policy decisions were required on this account. MS. GIUNCHIGLIANI MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS. MRS. EVANS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. BUDGET CLOSED. * * * * * SENATOR MATHEWS MOVED TO CONCUR WITH THE ASSEMBLY MOTION. SENATOR JACOBSEN SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. BUDGET CLOSED. * * * * * OFFICE OF EQUAL RIGHTS - PAGE 1395 Mr. Burke explained technical adjustments to be made to this account. Staff recommended reducing the General Fund appropriation in both years of the biennium to reflect a correction in caseload calculations and associated travel and operating expenses. Staff also recommended cost allocation modifications. Chairman Tiffany noted there were some policy decisions to be made in this account. First, the subcommittee would have to decide whether or not to approve three new positions. She noted the positions were not included in the Governor's recommendation. She expressed concern that while new management was in place at the agency, operations would continue in the same manner. She suggested the subcommittee discuss whether or not new positions could alleviate the backlog in caseload. Mrs. Brower questioned whether the new positions were justified at this time. She suggested allowing the new management to analyze the need and come back to the committee at a later time to request additional staff, if needed. Chairman Tiffany noted the Director had requested that the committee issue a letter of intent encouraging improved staff performance. She suggested this was not a legislative responsibility but a management responsibility and the letter of intent should not be issued. Ms. Giunchigliani supported Chairman Tiffany's statement. She noted staff should not be in jeopardy of losing their positions for failure to achieve standards imposed by management since cases varied substantially in level of difficulty to resolve. She pointed out this agency had consistently been understaffed and the state was losing federal money by not handling cases timely. She suggested approving two new positions and allowing the agency to report to the Interim Finance Committee on the effectiveness of the positions. She noted legislation was pending which could streamline case handling. Chairman Tiffany noted new staff was apparently working at higher standards and perhaps management could encourage other staff to improve. Mr. Orr stated efficiency was both a management and a staffing issue. He noted from January through March 1995 two-thirds of the staff met or exceeded expectations for production. New employees were among that group. He suggested inadequate performance should be grounds for discipline and termination. Senator Mathews cautioned against terminating staff on that basis since each case was different. She noted she would also question the performance of a staff member who was producing substantially more cases than were expected as well as one who was producing less than expected. Mr. Allard noted previous testimony had indicated many cases were frivolous complaints. He asked if there was a strategy for dealing with frivolous complaints. Mr. Orr stated a rapid resolution process had been implemented which included identifying cases with no probable cause and removing them from the system. Compliance investigators have been trained to recognize what does or does not constitute probable cause. He noted this strategy would not eliminate the current backlog without additional staff, however. Senator Jacobsen noted there had been problems with this agency for several sessions and these problems had to be resolved. He suggested the subcommittee issue a letter to the director indicating correcting problems within this agency be a high priority. Mr. Orr assured Senator Jacobsen the director was aware this matter was a priority. Ms. Giunchigliani said it appeared the agency was now turning the backlog around. She questioned why the Governor did not recommend additional staff in this budget. Ms. Paula Steinbauer noted when the agency originally requested six new positions, there was a concern about management. Therefore, the request for new positions was rejected. Subsequently, the Budget Division reviewed the agency's new risk management, measurement indicators, employee morale, and the backlog. The backlog was evaluated on the basis of the new measurement indicators. The Budget Division then adjusted its recommendation to support the addition of three new positions. It was believed the three positions could address the backlog as well as caseload growth without overextending the state's commitment. She noted caseloads would be increased further if HUD cases were added. Mrs. Evans questioned whether the agency could address the backlog without additional positions. Mr. Orr answered, "no." Senator Jacobsen noted the original agency request indicated caseload projections were inaccurate. He questioned whether the second Budget Division determination was made from inaccurate figures. Ms. Steinbauer stated when caseload numbers were reevaluated caseload projections were adjusted. The Budget Division was confident the caseload projections and backlog numbers are accurate and achievable by staff. Senator Jacobsen asked the difference between the inaccurate and accurate figures. Mr. Orr explained there had been a problem with the original arithmetic. The agency had now gone to a weekly reporting system to improve statement balances. MS. GIUNCHIGLIANI MOVED TO CLOSE THE BUDGET INCLUDING THREE NEW POSITIONS, REQUIRING THE AGENCY TO REPORT QUARTERLY TO THE INTERIM FINANCE COMMITTEE REGARDING CASELOAD, FEDERAL FUNDING GENERATED FROM CASE CLOSURES, AND HUD CASES. Mr. Orr noted the agency had prepared a fiscal note for $150,000 annually on pending legislation which would require the Nevada Equal Rights Commission to handle housing discrimination cases as well as employment discrimination cases. It was estimated one additional Compliance Investigator position would be required to handle housing discrimination cases. The position could be diverted either from the three new positions or from existing positions. MS. GIUNCHIGLIANI REVISED HER MOTION TO REMOVE THE REPORTING REQUIREMENT REGARDING HUD CASES. MRS. EVANS SECONDED THE MOTION. THE MOTION CARRIED. MRS. BROWER WAS OPPOSED. BUDGET CLOSED. * * * * * SENATOR JACOBSEN MOVED TO CONCUR WITH THE ASSEMBLY MOTION. SENATOR MATHEWS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. BUDGET CLOSED. * * * * * EQUAL EMPLOYMENT OPPORTUNITY - PAGE 1401 Mr. Burke explained technical adjustments recommended by staff. He noted the agency had requested a loan of $59,500 in Fiscal Year 1995. Legislation passed in the Senate would provide that loan. During Fiscal Year 1995 the agency will not be able to pay its statewide cost allocation plan assessment of $14,973. Therefore, in Fiscal Year 1996 the agency will be required to repay that amount as well as the $59,500 loan (if approved by the Assembly). Chairman Tiffany stated the subcommittee would have to make a policy decision on whether or not to merge the Office of Equal Rights budget with the federally funded Equal Employment Opportunity Commission. She asked Mr. Burke to explain the issues. Mr. Burke said traditionally the Office of Equal Rights and the Equal Employment Opportunity budget accounts have been separated. The Equal Rights account is funded 100 percent from the General Fund. The Equal Employment Opportunity account is funded with federal reimbursement revenue. Both budgets perform the same function, however. In the past, the committee had attempted to encourage maximizing federal reimbursement revenue by keeping the two accounts separate. Now, as the result of cash flow problems, the Governor recommended a $240,000 General Fund appropriation to the Equal Employment Opportunity budget. This appropriation would be a loan. That loan would not be necessary if the two budget accounts were merged. MS. GIUNCHIGLIANI MOVED TO MERGE THE OFFICE OF EQUAL RIGHTS ACCOUNT AND THE EQUAL EMPLOYMENT OPPORTUNITY ACCOUNT AND REQUIRE THE AGENCY TO REPORT QUARTERLY TO THE INTERIM FINANCE COMMITTEE ON THE USE OF FUNDING AND STATUS OF FEDERAL REIMBURSEMENT REVENUE. MRS. BROWER SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. BUDGET CLOSED. * * * * * SENATOR JACOBSEN MOVED TO CONCUR WITH THE ASSEMBLY MOTION. SENATOR MATHEWS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. BUDGET CLOSED. * * * * * NEVADA COMMISSION FOR NATIONAL AND COMMUNITY BASED SERVICES - PAGE 1407 Mr. Burke stated the technical adjustments recommended by staff reflect Americorps grant revenue not included in the Governor's recommended budget. MS. GIUNCHIGLIANI MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS. MRS. EVANS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. BUDGET CLOSED. * * * * * SENATOR JACOBSEN MOVED TO CONCUR WITH THE ASSEMBLY MOTION. SENATOR MATHEWS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. BUDGET CLOSED. * * * * * EMPLOYMENT SECURITY DIVISION - PAGE 1413 Mr. Burke reported in addition to cost allocation adjustments, staff recommended a technical adjustment to non-holiday overtime pay of $250,000. He explained there were no vacancy savings incorporated in this budget account. An adjustment to personnel expenses was recommended in Fiscal Year 1996 to reflect replacement of funding for a Mailroom Supervisor position proposed to be transferred to the State Mailroom in Fiscal Year 1997. Mr. Burke noted staff had reviewed enhancement decision units in the Executive Budget. Staff was in agreement with the Governor's recommendation for decision units E-125, E-126, E-127, E-175, E-710, and E-720. Mr. Burke stated other technical adjustments were associated with the department reorganization previously approved by the subcommittee. Chairman Tiffany stated the policy issues to be decided were 1) whether or not to approve the conversion of 61.4 full-time intermittent positions to permanent status; 2) whether or not to approve the transfer of six audit personnel from the Taxation Department in addition to one new Auditor for the Employment Security Division and provide funding to pay the Department of Taxation to continue to perform a limited number of combined audits; and 3) whether or not to approve the funding necessary to provide staff and associated support to add a pilot one-stop service center in Reno. Mr. Burke explained the 61.4 full-time intermittent positions functioned as permanent positions for all intents and purposes. The Governor proposed converting the positions to permanent status at no cost to the agency. Chairman Tiffany noted the agency indicated it would retain a pool of 40 intermittent positions. She questioned whether those 40 positions would be in addition to the 61.4 positions. Mr. Burke stated those 40 positions would remain from the existing pool and would continue to handle the seasonal workload for the agency. Ms. Giunchigliani said she believed the Auditor positions should be moved back to the agency and allow the Department of Taxation to do a limited number of combined audits as appropriate. Mrs. Brower stated from discussions she had heard it appeared the combined audits had not been successful. She questioned why the program should be continued. She suggested limiting Taxation Auditors to tax audits. Chairman Tiffany asked for subcommittee discussion on policy decision 3. Mr. Burke explained the agency was proposing to add 10 new positions in Reno at Neil Road consisting of one unclassified One-Stop Coordinator, six Employment Specialists, and three Program Assistants. He noted the Director had indicated she was willing to forego the unclassified position and one Program Assistant, reducing the request to eight positions. Chairman Tiffany asked what would happen to the one-stop center if federal Job Training Partnership Act (JTPA) funds disappeared. Mr. Burke stated the current proposal was to fund the program with JTPA transfer funds. Status of federal funding was presently unclear after 1996. Chairman Tiffany questioned whether changes at the federal level would remove barriers to existing staff working on each other's programs or to working at the one-stop center. Mr. Burke said he understood from agency testimony that there were only four positions in the department which could cross funding borders, and those four positions were not available for transfer to the one-stop center. Mr. Burke noted the agency was also attempting to obtain grant funding for the one-stop center. The first phase of the one-stop grant award was not approved but the agency was seeking funding from the second phase. Chairman Tiffany asked how long the department had worked on the one-stop center concept. Mr. Orr stated the department was created on October 1, 1993. The director was appointed October 6, 1993, and she convened a strategic planning conference in early December 1993 at which time the concept of one-stop service delivery was developed as part of the strategic plan for the department. He noted this activity was independent of actions being taken at the federal level. He explained the one-stop concept represented a leap ahead of other state or federal programs. The key to the program was the generalist positions which were not tied to specific funding sources. Mr. Orr noted, in response to Chairman Tiffany's concern about the loss of JTPA funding, that JTPA revenue came into the state from two separate titles of the act to fund several programs. Two of those programs--both youth programs--were in jeopardy in Congress. Loss of this revenue would not affect funding for the one- stop center from the dislocated worker and disadvantaged worker programs. Ms. Giunchigliani inquired why the Neil Road site was selected for the program. Mr. Orr answered the Reno/Carson City area was selected because of the proximity to administrative offices so there would be close administrative involvement in the development of the pilot program. Carson City was eliminated because it lacked the client diversity and demand available in Reno. The Neil Road area was recommended by the City of Reno as the most appropriate site to reach a diverse group of clients. Ms. Giunchigliani questioned whether Reno had the level of diversity of Las Vegas. Mr. Orr agreed Reno was not as diverse as Las Vegas but the community surrounding Neil Road was largely Hispanic. It bordered on Black and Asian communities and was close to retail businesses and potential employers. Most importantly, Neil Road was the focus of City of Reno community projects. Ms. Giunchigliani asked if there was any plan for a similar project in Las Vegas. Mr. Orr stated the second one-stop center would be located in Las Vegas. Ms. Giunchigliani inquired how this program would fit into the jobs study previously voted on by the subcommittee. Mr. Orr stated the original intent of government reorganization was to bundle employment and training programs in order to identify and eliminate inefficiencies, overlap, and duplication. Ms. Giunchigliani asked if the center would provide Welfare assistance in addition to career training. Mr. Orr replied the center would serve anyone who needed job related services. Ms. Giunchigliani questioned whether there would be networking with the Welfare Division and other agencies from the Neil Road site. Mr. Orr said there was no plan to co-locate with Welfare or any other social service agency at Neil Road. But clients would be referred to the proper social services. Staff would be able to assist clients in filling out applications for services, i.e., food stamps. Ms. Giunchigliani asked what it would take to open a center in Las Vegas. Mr. Orr stated the department wanted to prove the model prior to expanding to Las Vegas. It was anticipated it would take six months to perfect the model in Reno. A new neighborhood center could be opened every quarter thereafter until centers blanketed the state. The director wanted to establish 35 one-stop centers to completely replace the existing service delivery system. Ms. Giunchigliani inquired about rent expenses for the centers. Mr. Orr said minor increases in rent expenses for several centers would be offset by bringing services directly to the clients' neighborhoods. Chairman Tiffany said she liked the concept of the one-stop centers but she did not understand the need to add staff. She questioned why the program could not be operated with existing staff. Mr. Orr responded staff consisted of 880 people. Most of those positions were tied to a particular funding source. Only four or five Employment Counselors statewide were available to serve anyone. The agency requested authorization from the Veterans Administration to redirect some of the 14 staff members dedicated to serving veterans and the request was denied. He suggested this problem would be remedied with the new block grant concept being proposed in Congress. Chairman Tiffany asked if the one-stop center was approved without staff how the program could be implemented. Mr. Orr said there could be no one-stop center without new staff. Rather, dedicated staff could co-locate in the same office, each serving their specific clients. He said that was inefficient use of staff. He promised if this proposal was approved, the agency would not request additional staff for the 34 additional centers. The agency was relying on the federal government to make changes in program restrictions which would allow existing staff to work in the additional centers. Chairman Tiffany suggested waiting six months to start the pilot program in order to allow time for block grants to be approved by Congress. Mr. Orr said that would be possible. He noted the existing system would be perpetuated for an additional six months. Chairman Tiffany asked the cost of staff. Mr. Burke stated personnel expenses would be $425,648 in Fiscal Year 1996 and $444,736 in Fiscal Year 1997. Mrs. Brower said she liked the idea of the one-stop center but she agreed with delaying the pilot program until the nature of federal funding was determined. She questioned whether new staff would be doing the work which was currently being done by existing staff. Mr. Orr said it would be the responsibility of management to train dedicated workers to be generalist workers. Ms. Giunchigliani questioned the need to postpone the pilot program if the federal funding was available. She would like to know if the generalist strategy would work prior to Congress eliminating restrictions on dedicated positions. She added there was no guarantee when or if the federal government would take action on block grants. Mr. Orr said the model should be refined prior to Congressional reforms being made. He noted Congress would begin by working on Welfare reform and block grants for Welfare would likely reduce funding for the employment and training component of Welfare. Therefore, it would be important for the department to assume that responsibility and be able to provide services to Welfare recipients. Mrs. Evans expressed reluctance to delay the program based on federal actions because it was uncertain how long it would take Congress to act. Chairman Tiffany reiterated while she agreed with the one-stop service concept she objected to adding positions. She suggested there was a strong intent on the part of Congress to move to block grant funding soon. MS. GIUNCHIGLIANI MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS, WITHOUT FUNDING FOR COMBINED AUDITS BY THE DEPARTMENT OF TAXATION AND HOLDING ACTION ON THE ONE-STOP SERVICE CENTER PILOT PROGRAM. MRS. BROWER SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. BUDGET CLOSED. * * * * * SENATOR JACOBSEN MOVED TO CONCUR WITH THE ASSEMBLY MOTION. SENATOR MATHEWS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. BUDGET CLOSED. DEPARTMENT OF BUSINESS AND INDUSTRY - ATHLETIC COMMISSION - PAGE 903 Mr. Marc Ratner, Executive Director, reported projected revenue for Fiscal Year 1995 was $1.7 million, which would be the highest in the history of the Athletic Commission. Projections over the coming biennium were over $1.2 million. Mr. Ratner noted the committee had requested additional information from the Athletic Commission. He reported a schedule of distributions to amateur programs in Fiscal Years 1994 and 1995 had been provided to fiscal staff. He next reported on the request made to the 1993 Legislature for a one-half time investigator position. He explained after discussions with the Attorney General, it was determined to be more fiscally responsible to use Attorney General staff for this purpose. He had been advised by the Budget Director that funding for the investigator would come from the Attorney General's budget. Mr. Ratner said the committee had questioned if the Athletic Commission was allowed to retain a percentage of revenue from events how it would use those funds to enhance the budget. He stated the Athletic Commission had two pressing needs: an updated computer system at an approximate cost of $7,000, and an entry-level clerical position to file and answer the telephone. He pointed out there was a misconception among the public that the Athletic Commission related to all athletics rather than just to boxing. As a result, many calls unrelated to boxing were received in the office and a considerable amount of time was taken handling those calls. Chairman Tiffany inquired whether a name change was warranted. Ms. Rose McKinney-James, Director, Department of Business and Industry, stated the matter had not been discussed in detail. She stated she would be inclined to clarify the name of the agency. Chairman Tiffany suggested staff review what would be entailed in changing the agency name. She asked Mr. Ratner to provide a cost estimate for the computer upgrades. Chairman Tiffany asked Mr. Ratner to report on the future of boxing in Nevada. Mr. Ratner stated the future of boxing in Nevada would be good because it brought tourists to the state who would also engage in gaming. CLAIMANT EMPLOYMENT PROGRAM - PAGE 1425 Mr. Burke reported on technical adjustments recommended by fiscal staff. He explained apart from cost allocation adjustments, staff recommended adjusting the start date of 10 new positions requested by the agency from July 1, 1995, to October 1, 1995. He noted a policy decision was required to determine whether or not to approve those new positions. Chairman Tiffany explained additional policy decisions were whether or not to transfer excess Claimant Employment Program assessment revenue to the Federal Unemployment Trust Fund for Nevada, whether or not to support a change in statute to allow the allocation of Claimant Employment Program resources in support of the Lifeskills project, and whether or not to allow the redirection of four of the nine positions requested in decision unit E-400 to the Lifeskills project. Mr. Burke explained there was a substantial cash reserve in this budget account (approximately $2.7 million). During the Senate Finance Committee hearing on this budget account it was suggested the agency consider reducing the surcharge to employers which would reduce the reserve balance. In lieu of that action the agency proposed transferring excess revenue from the reserve to the unemployment insurance trust fund, which would have the same effect of lowering tax rates to employers. Ms. Giunchigliani inquired whether this action could potentially lower employers' payroll taxes. Mr. Burke said it had that potential. Mr. Burke noted the proposed transfer of approximately $1.5 million was relatively small in proportion to the unemployment insurance trust fund. There had been some initial concern about the solvency of the trust fund, but subsequently, compliance with federal and state solvency requirements had been documented. Chairman Tiffany inquired whether the subcommittee wished to approve nine new positions recommended in decision unit E-400. She asked for justification of the new positions. Mr. Orr responded the Claimant Employment Program was a state contribution to the federal mistakes discussed earlier in conjunction with the one- stop center program. Staff were tied to a particular funding source and could serve only a particular clientele. He noted it was a model for the one-stop concept in that it provided for hands-on case management, intensive training, and one-on-one specialized job placement and follow up necessary to move the long-term unemployed back into the labor market. The problem with the program was that it was limited to providing service to people on unemployment. Mr. Orr explained the request for positions was in response to a United States Department of Labor initiative to implement "profiling," i.e., screening applicants for unemployment to identify the probability of long-term unemployment and to intervene at the outset. The profiling process would nearly double the amount of referrals to the Claimant Employment Program. The request was to increase staff by approximately 18 percent. The positions requested were to perform job development and to work one-on-one with the unemployed to provide case management, arrange for training, and place individuals into jobs. Ms. Giunchigliani asked Mr. Orr how he would prioritize the positions requested. Mr. Orr stated two Counselor II positions would be his first priority. The second priority would be two Employment Specialist II positions to function as Employer Relations Representatives to improve program credibility with employers. Ms. Giunchigliani inquired how many of this program's clientele were also handicapped. Mr. Orr said he did not have that information but he could provide it to the subcommittee. He explained a pilot program in conjunction with the Welfare Division which included disabled clients had been more successful than expected. Ms. Giunchigliani noted other agencies could serve the disabled population more effectively. Mr. Orr explained assessment was a strong component of the program's service delivery planning. He suggested public agencies had relied too heavily on client self report on skills, ability, and interest and self-directed job search. Ms. Giunchigliani asked Mr. Orr how he would prioritize the remaining positions requested. Mr. Orr stated three Employment Specialist II positions to serve as Job Developers would be the third priority. One Employment Services Officer I to serve as a Training Development Coordinator would be the last priority. He pointed out in agreeing to set those priorities he did not intend to give the impression those positions were not needed. Ms. Giunchigliani said the subcommittee needed to be aware of the importance of the positions in order to consider possible options. Ms. Giunchigliani asked Mr. Orr to address the issue of allocation of resources to support the Lifeskills project. Mr. Orr noted the Governor's recommended budget for the department did not include an allowance for the Lifeskills project although the Division of Parole and Probation was relying on the department for support. In response to Senator O'Donnell's strong encouragement not to amend any budget accounts, the agency attempted to work with existing resources to provide support for Lifeskills. The Lifeskills centers in northern and southern Nevada anticipated the department providing on-site, full-time job development resources. If those resources were assigned to Lifeskills, work would remain undone in some other area. Mr. Orr noted unemployment insurance profiling should have been in place before July 1, 1995. In fact, unemployment insurance profiling would be phased in, and therefore, the full complement of nine positions requested would not be needed on July 1, 1995. A minor statutory revision would allow money collected in the Claimant Employment Program to be spent on unemployment claimants and other unemployed persons. That revision would allow the transfer of staff from the Claimant Employment Program to the Lifeskills project until such time as unemployment insurance profiling was required to be fully phased in. Ms. Giunchigliani said while she appreciated Senator O'Donnell's concern for amending budget accounts due to the lateness of the session, it would be irresponsible not to make corrections to the budget. Chairman Tiffany stated she did not like such comprehensive information being presented at a budget closing. She suggested it was too late for discussion to ensue on this issue and consideration of the Lifeskills component of this budget should be postponed. Ms. Giunchigliani said she appreciated Chairman Tiffany's position. However, the Subcommittee for Public Safety was considering the Lifeskills project. The Division of Parole and Probation's implementation of the Lifeskills project was included in the budget and anticipated the Department of Employment, Training and Rehabilitation providing support in placing and training inmates. In order to close one budget, it was necessary to make a determination on the other budget. Chairman Tiffany expressed concern for one agency's position influencing the subcommittee's decisions about issues on which it was not informed or prepared to act. She reiterated this meeting was for the purpose of closing the budget, not hearing the budget. Mr. Orr stated while some local staff had been involved in the Lifeskills planning effort, the Director only recently became involved in the project. The department supported the concept of Lifeskills. He said he appreciated the distinction between a budget hearing and a budget closing and the agency would be satisfied with closure of the budget as requested. If Lifeskills was approved and needed department support, the department would work with the Lifeskills project. Chairman Tiffany asked if the Division of Parole and Probation's requirements could be met without making adjustments to the budget to accommodate the Lifeskills project. Mr. Orr answered affirmatively. He said in order to meet the Division of Parole and Probation's expectation for full-time staff at Lifeskills, if the department was directed to do so by the Governor and the Legislature, staff would be redirected to Lifeskills from existing programs which would then go unserved. Senator Jacobsen inquired whether the Governor had given the department any direction on this matter. Mr. Orr stated the director met regularly with the Governor. He noted the Governor supported the agency recommendation for supporting Lifeskills without additional resources. Ms. Giunchigliani inquired whether this budget would have to be reopened if the Subcommittee on Public Safety allocated additional funding to Lifeskills and directing Department of Employment, Training and Rehabilitation support. Mr. Orr said substance abuse assessment and treatment was a major portion of the Lifeskills concept. Ms. Giunchigliani asked if the Bureau of Alcohol and Drug Abuse (BADA) was involved in the project. Mr. Orr stated BADA was not a direct service provider but flowed money through to community based providers. According to BADA, substance abuse treatment costs averaged $1,800 per person per year. The Division of Parole and Probation client census was 168. If all clients required substance abuse assessment and treatment, the total cost would be $300,000. The amount budgeted for substance abuse assessment and treatment was $150,000. Mr. Orr indicated the department could provide the remaining $150,000 for assessment and treatment, but if the population in Lifeskills grew, the likelihood of additional funding without diverting money from other treatment programs would become less. He pointed out the Legislature was the body from which policy decisions should emanate. The department would respond to the direction of the Legislature. Ms. Giunchigliani expressed concern at diverting money from existing direct service programs. Ms. Giunchigliani suggested the subcommittee recommend to the full committee that NRS 612.607 be amended to allow the redirection of resources to Lifeskills. Mrs. Evans stated she would not support diverting staff from the Claimant Employment Program to support Lifeskills because less staff would remain to handle the existing and increasing workload. Mr. Orr pointed out the new positions had no existing workload which would be abandoned by their transfer to Lifeskills. Senator Mathews inquired whether the nine new positions were sufficient to support the Lifeskills project. Mr. Orr answered affirmatively. Chairman Tiffany said she would not support the addition of nine positions. She said Lifeskills should not be addressed at a budget closing. She asked what the minimum requirement for staff support for Lifeskills would be. Mr. Orr said the minimum would be four positions until the unemployment insurance profiling was required to be fully implemented. Chairman Tiffany asked which four positions would be diverted to Lifeskills. Mr. Orr said the four positions would include three Employment Counselors and one Employment Specialist. As the unemployment insurance profiling demand caught up, additional staff could be phased in from the remaining five new positions over the course of the biennium. Chairman Tiffany asked if Mr. Orr was requesting approval for the full nine positions. Mr. Orr said the department would appreciate the subcommittee approving all nine new positions. The department would agree to report to the Interim Finance Committee for approval to fill the positions as needed. Chairman Tiffany reiterated she would not approve nine new positions. Mr. Orr said the department would have to approach the Interim Finance Committee to approve additional positions if the subcommittee was only willing to fund four positions. MRS. BROWER MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS, APPROVING FUNDING FOR FOUR NEW POSITIONS TO SUPPORT THE LIFESKILLS PROJECT, AND AMENDING NRS 612.607 TO ALLOW FOR THAT STAFF SUPPORT. There was no second to the motion. MS. GIUNCHIGLIANI MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS, REQUIRING AUTHORIZATION TO FILL NEW POSITIONS BY THE INTERIM FINANCE COMMITTEE, AND AMENDING NRS 612.607 TO ALLOW FOR FOUR POSITIONS TO BE DIRECTED TO SUPPORT THE LIFESKILLS PROJECT. MRS. EVANS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. MR. ALLARD WAS ABSENT FOR THE VOTE. BUDGET CLOSED. * * * * * SENATOR MATHEWS MOVED TO CONCUR WITH THE ASSEMBLY MOTION. SENATOR JACOBSEN SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. BUDGET CLOSED. * * * * * EMPLOYMENT SECURITY SPECIAL FUND - PAGE 1433 Mr. Burke reported technical adjustments recommended by staff reflected the elimination of computer hardware as a result of the consolidation of the Employment Security Division and the Department of Information Services. Chairman Tiffany said the policy decision to be made was whether or not to use Employment Security Special Funds to restore private legal representation for the Employment Security Division. Ms. Giunchigliani stated there was need by the Employment Security Division not only for Attorney General representation but for representation by private counsel due to specialty areas of the law. She said the funding for private counsel should be restored back to the budget as it was originally intended. Mr. Price said it was his philosophy that the Attorney General's Office should be used in every case and he would be voting against this recommendation. Chairman Tiffany noted this was another issue which had arisen in budget closings for which no hearing had been held. She said she did not support funding for outside counsel. Ms. Giunchigliani asked, for clarification, if this recommendation was for restoration of funding which had previously been in this budget. She noted the Legislature was inconsistent in its position on whether or not agencies should utilize private counsel. She said this funding had been eliminated from the budget as the result of miscommunication between the Administration and the Legislature. Mr. Orr stated the department's budget request was for funding for the Attorney General support but did not include funding for private counsel, which is currently in the budget. He explained the Employment Security Division currently enjoyed the support of private counsel and had done so for several years. Private counsel provided specialized labor law support required by the division. Mr. Orr expressed his opinion Deputy Attorneys General could be trained in labor law. But that issue was never addressed in budget negotiations. The failure to fund private counsel in the Executive Budget had only recently become evident and the Budget Division and the Governor felt the funding should be restored. Chairman Tiffany inquired whether some of the funding recommended for the Attorney General in the Executive Budget could be allocated for private counsel. Mr. Orr stated a portion of the Attorney General cost allocation could fund private counsel. He noted private counsel should not be used in matters of public law, however, because those services should be provided by the Attorney General. He would not suggest removing the entire Attorney General cost allocation to pay for private counsel. Mrs. Evans noted a practice that had been ongoing for some time was being reversed as the result of an oversight during budget negotiations. She pointed out funding for private counsel would not be from the General Fund but from reserves. Mr. Orr said funding would come from a reserve account generated through the collection of penalties and interest. He noted the income to the reserve account would exceed the allocation to private counsel. Mrs. Evans said she was not convinced of the need to change the current practice. Therefore, she would not support excising this funding from the budget. MS. GIUNCHIGLIANI MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS, RESTORING FUNDING FOR PRIVATE LEGAL COUNSEL. MRS. EVANS SECONDED THE MOTION. THE MOTION FAILED. CHAIRMAN TIFFANY, MRS. BROWER, AND MR. PRICE WERE OPPOSED. MR. ALLARD WAS ABSENT FOR THE VOTE. * * * * * SENATOR MATHEWS MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS, RESTORING FUNDING FOR PRIVATE LEGAL COUNSEL. SENATOR JACOBSEN SECONDED THE MOTION. THE MOTION FAILED. SENATOR JACOBSEN WAS OPPOSED. * * * * * MS. GIUNCHIGLIANI MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS REGARDING TECHNICAL ADJUSTMENTS. MRS. EVANS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. MR. ALLARD WAS ABSENT FOR THE VOTE. BUDGET CLOSED. * * * * * SENATOR MATHEWS MOVED TO CONCUR WITH THE ASSEMBLY MOTION. SENATOR JACOBSEN SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. BUDGET CLOSED. * * * * * GOVERNOR'S COMMISSION ON EMPLOYMENT OF PEOPLE WITH DISABILITIES - PAGE 1437 Mr. Burke explained technical adjustments recommended by staff simply took into account new cost allocations and the reclassification of expenditure categories. Mr. Burke said the policy decision to be made by the subcommittee was whether or not to transfer responsibility for the Governor's Committee on Employment of People With Disabilities from the Department of Employment, Training and Rehabilitation to the Department of Business and Industry and whether or not to retain the Southern Nevada Coordinator position and add clerical support for the southern Nevada office. He noted the Executive Budget reflected the elimination of the Southern Nevada Coordinator position, bringing the staffing level to two positions. Subsequently, the Governor proposed moving the agency to the Department of Business and Industry and retaining the Southern Nevada Coordinator position, and adding a clerical position in the southern Nevada office. The General Fund impact of the new proposal would be $82,419 in Fiscal Year 1996 and $75,786 in Fiscal Year 1997. Mr. Orr testified in 1993 the Governor rewrote the Executive Order which authorized the Governor's Committee on Employment of People With Disabilities, shifting the emphasis from providing advocacy to performing job placement of people with disabilities. At that time, the budget was underfunded by $30,000, which the 1993 Legislature expected to be made up from grants and donations. The grants and donations did not materialize. The Bureau of Vocational Rehabilitation entered into a job placement contract with the Governor's Committee on Employment of People With Disabilities whereby it would be paid for referrals from Vocational Rehabilitation, and through those earnings, cure the budget shortfall. In the first year of the biennium earnings were provided in the form of a $70,000 grant, which not only cured the shortfall but allowed for the hiring of contract job developers. In the second year, revenue was generated through fees for service where the Governor's Committee on Employment of People With Disabilities was paid an agreed upon amount for every job placement. In October 1994 it became evident the job placement revenue would not be sufficient to offset the budget shortage and staff would have to be laid off. At that time, the joint money committees expressed strong concern about not adequately funding agencies, causing them to generate their own revenue through gifts, donations, etc. It was also strongly expressed the Governor's Committee on Employment of People With Disabilities should be an asset to the business community and should return to its advocacy and technical assistance role. Therefore, it was recommended if the agency was to provide business and industry support, it should be housed within the Department of Business and Industry. The directors of the Department of Employment, Training and Rehabilitation and the Department of Business and Industry agreed to this placement. If the activities and expectations of the Governor's Committee on Employment of People With Disabilities changed, there would have to be a southern Nevada presence to provide technical assistance to the local business community. Ms. Rose McKinney-James, Director, Department of Business and Industry, said her understanding was the primary role of the southern Nevada office would relate to providing businesses with technical information on the implementation of the provisions of the Americans With Disabilities Act via workshops and seminars and by serving as a liaison with the business community. In addition, staff would continue to promote employment possibilities for people with disabilities. Ms. McKinney-James expressed her view the Department of Business and Industry had a responsibility to find legitimate ways to provide support to business and industry, and because of the nature of the provisions of the Americans With Disabilities Act, it was critical to have a governmental unit in place to provide a bridge to the business community with respect to this information. In order for the Southern Nevada Coordinator to go to business sites, clerical support would be required to maintain the office. Ms. McKinney-James indicated adequate space had been identified to house staff in the Bradley Building in Las Vegas and in the Director's Office in northern Nevada. Chairman Tiffany inquired whether Ms. McKinney-James had spoken to the Governor's staff prior to the change. Ms. McKinney-James said she spoke to the Governor's staff after the changes occurred as a result of discussions which had taken place in the Legislature. She was asked whether or not she would be willing to consider this proposal, and she did indicate such a willingness. Ms. Giunchigliani supported the need for clerical support for the Southern Nevada Coordinator. She pointed out many members of the Interim Finance Committee had not been aware the position would be eliminated when it took action to loan funds to the agency. Legislation was recently passed to provide emergency funding for the position through June 30, 1995. She said it was her understanding the Governor had signed the new Executive Order. MRS. EVANS MOVED TO CLOSE THE BUDGET ACCORDING TO STAFF RECOMMENDATIONS, APPROVING TRANSFER OF THE AGENCY TO THE DEPARTMENT OF BUSINESS AND INDUSTRY AND FUNDING FOR A SOUTHERN NEVADA COORDINATOR POSITION AND A CLERICAL POSITION. MR. PRICE SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. CHAIRMAN TIFFANY WAS ABSENT FOR THE VOTE. BUDGET CLOSED. * * * * * SENATOR JACOBSEN MOVED TO CONCUR WITH THE ASSEMBLY MOTION. SENATOR MATHEWS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. BUDGET CLOSED. * * * * * REHABILITATION ADMINISTRATION - PAGE 1443 Mr. Burke stated technical adjustments recommended by fiscal staff reflected an adjustment of the Attorney General allocation. The expenditure was omitted in the Governor's recommendation. Co-Chairman Giunchigliani explained the policy decision to be made was whether or not to approve a new Public Service Intern position. Mr. Burke explained the agency indicated services provided to minority groups were presently not at parity. The request was for an intermittent Public Service Intern. The agency would recommend permanent status for the position in the 1997-1999 biennium if a 10 percent increase in services to minorities could be demonstrated. Co-Chairman Giunchigliani asked what the percent of services to minorities was currently. Mr. Orr stated he would provide the information to the subcommittee. Mr. Orr noted if there was a non-culturally diverse service delivery system, culturally diverse people would not be served. The purpose of this intern position was not only to improve links with minority communities but to interest interns in careers in public service, especially in rehabilitation. Co-Chairman Giunchigliani inquired whether this would be a contract position which could be terminated at any time. Mr. Orr responded if the agency could not demonstrate results in terms of enhanced services to culturally diverse populations during the coming biennium, the position would not be included in the Executive Budget for the 1997-1999 biennium. MRS. EVANS MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS, APPROVING FUNDING FOR AN INTERMITTENT PUBLIC SERVICE INTERN POSITION WITH THE UNDERSTANDING FUNDING WOULD BE ELIMINATED IN FISCAL YEAR 1997 IF A 10 PERCENT INCREASE IN SERVICES TO MINORITIES IS NOT DEMONSTRATED. MRS. BROWER SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. CHAIRMAN TIFFANY WAS ABSENT FOR THE VOTE. BUDGET CLOSED. * * * * * SENATOR MATHEWS MOVED TO CONCUR WITH THE ASSEMBLY MOTION. SENATOR JACOBSEN SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. BUDGET CLOSED. * * * * * BUREAU OF ALCOHOLISM AND DRUG REHABILITATION - PAGE 1451 Mr. Burke noted two technical adjustments were recommended to this budget. Staff proposed redistributing a portion of the Fiscal Year 1995 federal Substance Abuse Prevention and Treatment block grant to reduce the General Fund appropriation to the maintenance of effort level (i.e., a reduction of $33,876 in Fiscal Year 1996 and $51,790 in Fiscal Year 1997, which amounts would be taken out of program funding). Mrs. Brower inquired whether the recommendation meant programs would not be fully funded. Mr. Burke responded affirmatively. Mrs. Evans expressed opposition to the recommendation. Mr. Burke explained the alternative was to fully fund the Substance Abuse Prevention and Treatment block grant, which would eliminate the General Fund savings. He noted the $300,000 revenue was over and above the Governor's recommendation, which was the reason the technical adjustment was recommended. Co-Chairman Giunchigliani suggested holding action on this budget. BUREAU OF ALCOHOLISM AND DRUG REHABILITATION - NEW PROGRAM - PAGE 1451 Mr. Burke stated the agency submitted a draft of a work program regarding new needs assessment grant funding which was currently available. No hearings had been held on this funding. Co-Chairman Giunchigliani asked the subcommittee to hold action on this matter. ALCOHOL TAX PROGRAM - PAGE 1459 MRS. EVANS MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE GOVERNOR'S RECOMMENDATION. MR. ALLARD SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. CHAIRMAN TIFFANY WAS ABSENT FOR THE VOTE. BUDGET CLOSED. * * * * * SENATOR JACOBSEN MOVED TO CONCUR WITH THE ASSEMBLY MOTION. SENATOR MATHEWS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. BUDGET CLOSED. DRUG COMMISSION - PAGE 1461 Mr. Burke explained Byrne Grant funding was being reduced significantly in this account. In order to fund the program at the existing level, an increase transfer from the Substance Abuse Prevention and Treatment grant would be necessary. Additionally, no rehabilitation administrative assessment was included in this account, so $9,100 had to be added to the budget. Mr. Burke stated other technical adjustments were similar to other agency budgets. Co-Chairman Giunchigliani asked if funding would be transferred from direct services. Mr. Burke answered approximately $80,000 of the Substance Abuse Prevention and Treatment (direct service) grant funds would be transferred to this account over the coming biennium. Co-Chairman Giunchigliani inquired whether the subcommittee had the option of allocating a General Fund appropriation to fund the Drug Commission rather than taking money from direct services. Mr. Burke answered affirmatively. MRS. BROWER MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS. MR. PRICE SECONDED THE MOTION. Mr. Burke noted this action would require an adjustment to the Bureau of Alcohol and Drug Abuse program to reflect the transfer of funds. THE MOTION FAILED. MR. ALLARD, MRS. EVANS, AND MS. GIUNCHIGLIANI WERE OPPOSED. CHAIRMAN TIFFANY WAS ABSENT. * * * * * Co-Chairman Giunchigliani indicated further action on this budget would be held. VOCATIONAL REHABILITATION - PAGE 1467 Mr. Burke reported technical adjustments recommended by staff reflected new funding matches and increased longevity pay pursuant to current calculations as well as Attorney General and other agency cost allocation adjustments. Co-Chairman Giunchigliani stated policy decisions to be made were whether or not to issue a letter of intent directing the agency to study the feasibility of merging the Vocational Rehabilitation budget with the Blind Services budget (for consideration by the 1997 Legislature), whether or not to reduce the General Fund appropriation to restore the certified match (noting there is no level of certified match which would not risk audit exception during Fiscal Years 1996 and 1997), whether or not to expand the Welfare Division JOBS Assessment project by adding two positions, and whether or not to approve the replacement of the division's Banyan Vines network with a NOVELL network. Mrs. Evans said she would like the subcommittee to issue a letter of intent directing the agency to perform an in-house study on the feasibility of merging the two budget accounts. She noted the two entities seemed to be serving the same function. She also suggested directing the agency to review the feasibility of privatization. Mr. Orr asked if the intent of the subcommittee would be met if the feasibility study was included in the overall departmental reorganization to be reported to the Interim Finance Committee in December 1995. Co-Chairman Giunchigliani stated the Interim Finance Committee would welcome that information if the department could provide it. MRS. EVANS MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS, ISSUING A LETTER OF INTENT DIRECTING THE AGENCY TO CONDUCT A FEASIBILITY STUDY OF MERGING THE VOCATIONAL REHABILITATION AND BLIND SERVICES BUDGETS AND PRIVATIZATION OF SERVICES. MR. ALLARD SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. CHAIRMAN TIFFANY WAS ABSENT FOR THE VOTE. BUDGET CLOSED. * * * * * SENATOR MATHEWS MOVED TO CONCUR WITH THE ASSEMBLY MOTION. SENATOR JACOBSEN SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. BUDGET CLOSED. * * * * * Mr. Orr thanked Mr. Burke and Ms. Steinbauer for their help in developing the department budget. There being no further business, the meeting was adjourned at 10:56 a.m. RESPECTFULLY SUBMITTED: Dale Gray, Committee Secretary Joint Subcommittee on General Government Assembly Committee on Ways and Means and Senate Committee on Finance April 27, 1995 Page