MINUTES OF THE JOINT SUBCOMMITTEE MEETING OF SENATE COMMITTEE ON FINANCE AND ASSEMBLY COMMITTEE ON WAYS AND MEANS Sixty-eighth Session May 12, 1995 The joint meeting on General Government of the Senate Committee on Finance and the Assembly Committee on Ways and Means was called to order by Chairman William R. O'Donnell, at 7:50 a.m., on Friday, May 12, 1995, in Room 321 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. Exhibit B is the Attendance Roster. SENATE COMMITTEE MEMBERS PRESENT: Senator William R. O'Donnell, Chairman Senator Lawrence E. Jacobsen Senator Bernice Mathews ASSEMBLY COMMITTEE MEMBERS PRESENT: Ms. Chris Giunchigliani, Chairman Ms. Sandra Tiffany, Chairman Mrs. Jan Evans Mr. Dennis L. Allard Mrs. Maureen E. Brower Mr. Bob Price STAFF MEMBERS PRESENT: Mark Stevens, Fiscal Analyst Bob Guernsey, Principal Deputy Fiscal Analyst Brian Burke, Program Analyst Pamela Jochim, Committee Secretary OTHERS PRESENT: Paula Steinbauer, Budget Analyst, Budget Division, Department of Administration Karen Kavanau, Director, Department of Information Services Pamela A. Case, Chief, Division of Systems and Programming, Department of Information Services Carol Jackson, Director, Department of Employment, Training and Rehabilitation John Orr, Assistant Director, Department of Employment, Training and Rehabilitation Jim Hanna, Director, Division of Information Development and Processing, Department of Employment, Training and Rehabilitation Senator O'Donnell opened the hearing and asked Karen Kavanau, Director, Department of Information Services (DIS), to come forward and provide the committee with a report on the recent hijacking of the Nevada Operations Multi Automated Data Systems (NOMADS) hardware. Ms. Kavanau said the computers were hijacked enroute to Las Vegas, Nevada from San Jose, California. She said the state had not taken ownership of the computers, so International Business Machines (IBM) is responsible for their replacement. Brian Burke, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, distributed two handouts (Exhibit C - DIS Pending Issues Packet; Exhibit D - Budget Closing Action Packet) for the committee's review. Senator O'Donnell noted, during a previous joint subcommittee on General Government, the DIS budget was closed with several pending issues. One unresolved issue dealt with the transfer of an Information Systems Specialist position from the Division of Systems and Programming to the Director's Office. The senator asked if the joint subcommittee had any questions on the matter. MS. GIUNCHIGLIANI MOVED TO TRANSFER THE INFORMATION SYSTEMS SPECIALIST POSITION FROM THE DIVISION OF SYSTEMS AND PROGRAMMING TO THE DIRECTOR'S OFFICE. MRS. EVANS SECONDED THE MOTION. THE MOTION CARRIED. (MS. TIFFANY AND MR. ALLARD WERE ABSENT FOR THE VOTE.) * * * * * SENATOR JACOBSEN MOVED TO TRANSFER THE INFORMATION SYSTEMS SPECIALIST POSITION FROM THE DIVISION OF SYSTEMS AND PROGRAMMING TO THE DIRECTOR'S OFFICE. SENATOR MATHEWS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * Senator O'Donnell questioned if the committee supports the hardware and software upgrades requested in M200 and M581. In addition, the senator asked for an update on the Integrated Systems Solutions Corporation (ISSC) temporary mainframe upgrade. Pamela A. Case, Chief, Division of Systems and Programming, Department of Information Services, stated the upgrade has been completed and the system is functioning at full capacity. Senator O'Donnell referred the committee to pages 40-42 of Exhibit C and asked when the listed equipment will be purchased. Ms. Case replied the bid information has been supplied to the Purchasing Division, and once the bidding process is completed, a more exact date can be determined. Senator O'Donnell stated the committee has two options regarding the equipment purchase request: (1) the equipment funds can be placed in a Reserve account with the understanding the division will approach the Interim Finance Committee (IFC) with a list denoting the equipment purchase price and to request permission to disburse the equipment funds; (2) give the division permission to purchase the equipment with the understanding the division must report back to the IFC once the purchase has been made and any savings will be "de-augmented." Ms. Kananau stated the division can use the ISSC upgrade until January, but she is concerned the needs of the division's other customers cannot totally be met until a new system is on-line. MRS. EVANS MOVED TO GIVE THE DIVISION PERMISSION TO PURCHASE THE EQUIPMENT LISTED ON PAGES 41-42 OF EXHIBIT C WITH THE UNDERSTANDING THE DIVISION MUST REPORT BACK TO THE INTERIM FINANCE COMMITTEE UPON COMPLETION OF THE PURCHASE AND WITH THE UNDERSTANDING ANY SAVINGS WILL BE DE-AUGMENTED. MRS. BROWER SECONDED THE MOTION. THE MOTION CARRIED. (MS. TIFFANY WAS ABSENT FOR THE VOTE.) * * * * * SENATOR MATHEWS MOVED TO GIVE THE DIVISION PERMISSION TO PURCHASE THE EQUIPMENT LISTED ON PAGES 41-42 OF EXHIBIT C WITH THE UNDERSTANDING THE DIVISION MUST REPORT BACK TO THE INTERIM FINANCE COMMITTEE UPON COMPLETION OF THE PURCHASE AND WITH THE UNDERSTANDING ANY SAVINGS WILL BE DE-AUGMENTED. SENATOR JACOBSEN SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * Senator O'Donnell asked if the committee wishes to transfer the secretary of state's Microcomputer Specialist to the Division of Facility Management. The senator noted the Assembly Committee on Ways and Means has already approved the transfer. SENATOR JACOBSEN MOVED TO TRANSFER THE SECRETARY OF STATE'S MICROCOMPUTER SPECIALIST TO THE DIVISION OF FACILITY MANAGEMENT. SENATOR MATHEWS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * Senator O'Donnell asked if the committee wishes to approve the microwave study requested in E125. He indicated the proposed funding for the study is to be provided by the Highway Fund, but due to certain funding restrictions placed on the Highway Fund, only 62.55 percent of the funding can be provided by the fund. The senator noted the remaining funds will be provided by the agencies listed on page 4 of Exhibit C. If funding is provided by the listed agencies, the budgets for all these agencies will need to be revised. Senator O'Donnell suggested if the study is approved, then $93,000 should be funded by the Highway Fund and the remaining funds needed from the General Fund. Ms. Kavanau explained the microwave study has two major components. The viability of the existing state microwave system needs to be examined and other possible solutions to mobile communications must be explored as to cost and efficiency. She indicated some states are not using a microwave system any longer and have found other solutions to handle their mobile communications. Mr. Allard inquired whether the study could be conducted for $93,000. Ms. Kavanau replied she was uncertain of the exact cost because the figure provided to the committee is only an estimate. She indicated if the $300,000 is appropriated and costs are less than expected, then any remaining balance will revert back to the General Fund. Senator O'Donnell asked who will be conducting the study. Ms. Kavanau responded the study would be put out to bid. Senator Jacobsen voiced his concern regarding the microwave study. He suggested an interim study be performed with input from each agency using mobile communications. Senator O'Donnell noted he has requested a bill draft request for the formation of a data processing oversight committee. Ms. Kavanau stressed some type of action must be taken regarding the mobile communication system because the system, presently, is barely meeting the needs of the agencies. She said the Legislature in 1993 requested the department to research the possibility of converting to 800 megahertz; however, the Information Technology Advisory Board granted the department permission to postpone the study due to other more pressing matters. Ms. Kavanau stated, "This is simply bringing back to you [Legislature] what you had asked us to do 2 years ago." Senator O'Donnell commented the original study would have been done at no cost. Ms. Kavanau explained the original study would only have examined whether the state should convert to 800 megahertz. The department concluded the viability of the system should be explored before new solutions are considered. Senator O'Donnell a s k e d w h o w e r e t h e l a r g e s t u s e r s o f t h e m o b i l e c o m m u n i c a t i o n s y s t e m . M s . K a v a n a u r e s p o n d e d t h e N e v a d a D e p a r t m e n t o f T r a n s p o r t a t i o n ( N D O T ) , t h e N e v a d a H i g h w a y P a t r o l , a n d t h e D e p a r t m e n t o f P r i s o n s . Senator O'Donnell questioned if the study should be conducted by NDOT. Ms. Kavanau explained the microwave equipment is under the stewardship of the DIS, but NDOT and the major users will be a part of the study. Senator O'Donnell stated he would like to hold this matter until he can obtain more information. He commented $300,000 is an enormous amount of "money" for a study. Ms. Tiffany asserted the Assembly joint committee members would like to close the budget. She related the major departments need to write a functional specification for a Request for Proposal (RFP) and have an independent consultant perform the study. Ms. Tiffany stressed, "We don't need to study it, we need to finally make a decision that makes sense for this state....We absolutely need a microwave study, we need to look at 800 megahertz, we have the money, so lets do it." Ms. Giunchigliani noted local governments are exploring microwave usage and asked if any of the local governments might want to participate in the study. Ms. Kavanau replied all the local government customers will be involved in the study. Senator Mathews suggested the division should periodically provide the IFC with a progress report on the study. Senator Jacobsen commented he did not agree with Ms. Tiffany regarding the use of a private consultant because the private sector might favor a particular vendor. He stated, "I want legislative involvement....to make sure they follow the line." Ms. Kavanau stated the purpose of the study is to be able to make recommendations to the Legislature. She said the department will report back to the Legislature on the study's findings and no action will be taken without legislative approval. In addition, she indicated the mobile communications market is very aggressive and the department would never considered working with a vendor promoting a particular product line. Senator Jacobsen requested that the department report back to IFC before the next legislative session. MS. TIFFANY MOVED TO APPROVE THE MICROWAVE STUDY WITH THE UNDERSTANDING $93,828 IN FUNDING WILL BE PROVIDED BY THE HIGHWAY FUND AND $56,172 WILL BE FUNDED FROM THE GENERAL FUND IN EACH YEAR OF THE BIENNIUM. THE USERS OF THE MICROWAVE SYSTEM ARE TO PARTICIPATE AND DEVELOP A RFP WITH A PRIVATE CONSULTANT PERFORMING THE STUDY. THE DEPARTMENT IS REQUIRED TO PROVIDE THE IFC WITH A QUARTERLY UPDATE ON THE PROGRESS OF THE STUDY AND FINAL RESULTS OF THE STUDY WILL BE REPORTED TO THE IFC BY AUGUST 1, 1996. Mr. Allard asked if the motion was for $300,000 for the biennium or $150,000. Senator O'Donnell replied, $300,000. MS. GIUNCHIGLIANI SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * SENATOR MATHEWS MOVED TO APPROVE THE MICROWAVE STUDY WITH THE UNDERSTANDING $93,828 IN FUNDING WILL BE PROVIDED BY THE HIGHWAY FUND AND $56,172 WILL BE FUNDED FROM THE GENERAL FUND IN EACH YEAR OF THE BIENNIUM. THE USERS OF THE MICROWAVE SYSTEM ARE TO PARTICIPATE AND DEVELOP A RFP WITH A PRIVATE CONSULTANT PERFORMING THE STUDY. THE DEPARTMENT IS REQUIRED TO PROVIDE THE IFC WITH A QUARTERLY UPDATE ON THE PROGRESS OF THE STUDY AND FINAL RESULTS OF THE STUDY WILL BE REPORTED TO THE IFC BY AUGUST 1, 1996. Senator O'Donnell announced the motion for the Senate died for lack of a second. Senator Jacobsen commented he would like to wait on this issue and take it up before the Senate Committee on Finance. Brian Burke, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, referred the committee to page 3 of Exhibit C and asked if the committee wishes to revise the Division of System and Programming's (SPD) budget to include software cost increases associated with the mainframe upgrade. The software increases are above the amounts reflected in the Executive Budget and total $589,000 in Fiscal Year (FY) 1996 and $182,000 in FY 1997. Mrs. Brower asked if the total amount of funds requested will be needed. Ms. Kavanau responded the agency is not certain if all these funds will be necessary, but any funds remaining after the software purchase will be "de-augmented." Senator O'Donnell commented the Governor's budget indicates there are sufficient funds to absorb the costs of the software upgrade. Mr. Burke explained the customer budgets of the SPD have sufficient authority to absorb the costs, but the SPD does not have the existing authority to pay the additional facility costs for the hardware and software. He said the question is whether the committee wants to give the SPD the authority to pay for its share of the hardware and software upgrades which have been approved in the Division of Facility Management's budget. Senator O'Donnell questioned why these costs were not included in the Executive Budget. Ms. Case replied the costs were not included because the division was unaware of the onetime costs associated with the hardware upgrade. Senator O'Donnell inquired what would happen if the funding was not granted. Ms. Case replied if the funds are not provided, then the division will no longer have the right to continue using the software. Ms. Giunchigliani clarified the Assembly Committee on Ways and Means has already approved the $600,000 request for software and hardware, but has not given SPD spending authority. Ms. Kavanau interjected this action is an accounting function and does not actually involve disbursement of any general funds. Mr. Burke added the subcommittee has already approved the hardware and software upgrades and the division is asking for permission to allow the SPD to pay for the upgrades. He related the request does not require an appropriation from the General Fund. SENATOR MATHEWS MOVED TO APPROVE THE SOFTWARE COST INCREASES ASSOCIATED WITH THE MAINFRAME UPGRADE AS LISTED ON PAGE 3 OF EXHIBIT C. SENATOR JACOBSEN SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * MS. GIUNCHIGLIANI MOVED TO APPROVE THE SOFTWARE COST INCREASES ASSOCIATED WITH THE MAINFRAME UPGRADE AS LISTED ON PAGE 3 OF EXHIBIT C. MRS. BROWER SECONDED THE MOTION. THE MOTION CARRIED. (MR. PRICE WAS ABSENT FOR THE VOTE.) * * * * * Mr. Burke notified the committee that subsequent to the last joint subcommittee on General Government, four Microcomputer Specialists were approved for transfer to the Division of Facility Management and the Division of Environmental Protection has since reclassified these positions as Management Analysts. Ms. Giunchigliani voiced her displeasure at the action taken by the Division of Environmental Protection due to the potential effect it can have on the budget. Ms. Kavanau said it was her understanding the NDOT Communications Specialist transfer had not been determined by the Senate Committee on Finance. Senator O'Donnell said the transfer was not approved. One-Stop Service Center Proposal - Page 1413 Carol Jackson, Director, Department of Employment, Training and Rehabilitation, stated the requested positions and associated costs related to the center should be approved. She noted the department is in contact with the Nevada, Washington, D.C., office on a weekly basis and should know between May and October how the federal budget reductions will affect the department's budget. She asked for committee approval to fill the positions once the state has been informed of its federal allocation. Mr. Burke distributed a Budget Closing Action Packet (Exhibit D) and indicated pages 1 and 2 of the packet summarizes the department's expenditure requests. He stated in a previous subcommittee hearing the committee suggested the Coordinator position could be eliminated. Ms. Jackson recommended the elimination of the Coordinator position and requested approval to keep the six Employment Specialists II and the three Program Assistant IV positions. Ms. Tiffany requested the department to come back to IFC with funding and position details. Ms. Jackson said the information she is receiving from Washington, D.C., indicates the federal government is recommending the implementation of the One-Stop Centers. She commented the most efficient use of state and federal funds is the implementation of the One-Stop Center. In her opinion, it would be a mistake not to allow the department to open the One-Stop Center once the federal allocation is known. Ms. Tiffany remarked she likes the One-Stop concept, but she still would like the department to report to the IFC before the center is implemented. Senator O'Donnell commented the center will be funded from federal funds and not the General Fund. If the funding for the positions is not provided by the federal government, then the center will not go forward. He noted if the federal government provides the funding, then the division would like to move forward as quickly as possible to implement the center. Ms. Tiffany stated the implementation of the center is a policy change and it is important for the committee to be involved in the pilot center, since 35 more centers may be established within the next 5 years. She said the IFC should be involved in the center's implementation and should hear the center's operational plans. Senator O'Donnell stated the department is requesting the authority to hire the One- Stop Center personnel once the federal government determines the state's funding allocation. Ms. Giunchigliani questioned when the final figures from the federal government will be known. Ms. Jackson replied the department should be notified about the final amount in the next several months. Documents she has reviewed recommend using 25 percent of the funds for the implementation of a One-Stop Center. She stressed the department would appreciate the IFC's involvement in the implementation of the center. John Orr, Assistant Director, Department of Employment, Training and Rehabilitation pointed out the department is prepared today to provide the committee with all the necessary details regarding the One-Stop Center. He explained the federal funding for the One-Stop Center will be provided from the Job Training Partnership Act (JTPA) funds. Nevada currently receives $15 million in JTPA funds, but $5 million in funding will be rescinded due to the elimination of the youth program. He has been informed that possibly 25 percent of the remaining $10 million will also be reduced. The department will utilize a portion of the remaining funds to support the One-Stop pilot program. He said it is critical for Nevada to test the program before the federal government mandates the use of the centers. Senator O'Donnell stated the motion on the issue will be to approve the nine requested positions and allow the department to fund the center and approach the IFC with a detailed report. MS. GIUNCHIGLIANI MOVED TO APPROVE THE NINE REQUESTED POSITIONS WITH THE UNDERSTANDING THE ONE-STOP CENTER WILL NOT GO FORWARD UNTIL THE FEDERAL FUNDS ARE FINALIZED AND THE DETR COMES BEFORE THE IFC AND PROVIDES THE COMMITTEE WITH A DETAILED REPORT ON HOW THE ONE-STOP CENTER WILL BE IMPLEMENTED. MS. TIFFANY SECONDED THE MOTION. THE MOTION CARRIED. (MR. PRICE WAS ABSENT FOR THE VOTE.) * * * * * SENATOR JACOBSEN MOVED TO APPROVE THE NINE REQUESTED POSITIONS WITH THE UNDERSTANDING THE ONE-STOP CENTER WILL NOT GO FORWARD UNTIL THE FEDERAL FUNDS ARE FINALIZED AND DETR COMES BEFORE THE IFC AND PROVIDES THE COMMITTEE WITH A DETAILED REPORT ON HOW THE ONE-STOP CENTER WILL BE IMPLEMENTED. SENATOR MATHEWS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * Bureau of Alcoholism and Drug Rehabilitation - Page 1451 Mr. Burke explained adjustments have been made to the budget due to joint subcommittee budget discussions. He indicated the 1995 federal Substance Abuse and Prevention and Treatment (SAPT) grant is higher than what is reflected in the Executive Budget. The grant amount for FY 1996 is $308,349 and $298,193 for FY 1997. In addition, a color printer has been eliminated pursuant to agency testimony. Non-state owned rent costs for existing departmental space is reallocated to the Bureau of Alcoholism and Drug Rehabilitation. He noted the Budget Division has proposed some changes in other budgets which might impact this budget. One such change would increase the SAPT grant transfers to the Drug Commission to replace the lost Bryne Memorial grant funding. Furthermore, another revision proposes to move the Drug Commission Coordinator to the Division of Parole and Probation. Senator O'Donnell asked the Budget Division to explain why the Drug Commission's coordinator will be moved to the Division of Parole and Probation. Paula Steinbauer, Budget Analyst, Budget Division, Department of Administration, stated John P. Comeaux, Director, Department of Administration, sent Senator Raggio, Mr. Marvel, and Mr. Arberry a memo requesting the transfer of the drug coordinator to the Division of Parole and Probation to help with the implementation of the Lifeskills Project. If the transfer is approved by the committee, the Drug Commission's budget will be reduced by $51,000 in FY 1996 and $52,000 in FY 1997. The personnel transfer will cause less funds to be transferred from the Bureau of Alcoholism and Drug Rehabilitation for the replacement of the lost Byrne Memorial grant. Ms. Giunchigliani noted $98,000 was being deferred from services to fund the Drug Commission and questioned if the personnel transfer will lessen the impact on services. Ms. Steinbauer replied, "exactly" and indicated funds were to be transferred from the Alcoholism and Drug Rehabilitation account to the Drug Commission budget to replace the lost grant funds; but if the Coordinator position is transferred, then the funding transfer is not needed. Ms. Tiffany stressed this morning's joint subcommittee budget meeting is a closing hearing and not a general hearing and voiced her disapproval of the Budget Division's request to transfer the Coordinator position during a budget closing hearing. She said the Drug Commission Coordinator is the "lynch pin" for the commission and is a key commission employee. Ms. Steinbauer related the Governor's office believes the Coordinator is very useful to the Drug Commission, but could also offer very valuable skills to the Lifeskills Project. She said the Lifeskills Project is important to the administration and the Governor wants the most qualified personnel involved in the program. Ms. Tiffany voiced her displeasure regarding the transfer and indicated her desire to hold the budget until she receives more information on the transfer. She remarked the joint subcommittee has been investigating ways to augment the Drug Commission's budget, but now the administration has taken a key employee out of the program. Ms. Giunchigliani stated: A message needs to be carried back to the Governor. The Lifeskills Project conceptually is a good idea. I think we have to do something along those lines in order to free up the bed space, but I don't have a good handle on what the Lifeskills Project is or what it's going to do. Maybe it should not be under the Division of Parole and Probation and maybe we should shift that over to the Drug Commission and drug coordinator for them to determine how the program should be handled, rather than it being actually located in the Division of Parole and Probation....There are other ideas which have not been fully explored and since we are holding the budget, we have an opportunity to see if we can make it work. Ms. Steinbauer suggested it would be helpful to have Mr. Comeaux address the joint subcommittee regarding the proposed transfer and to provide an overview of the Lifeskills project. Senator O'Donnell stated all the budgets relating to the Bureau of Alcoholism and Drug Rehabilitation (Exhibit C - pages 3-6) will be held until further information can be gathered. Vocational Rehabilitation - Page 1467 Mr. Burke indicated the subcommittee has approved the technical adjustments to the budget, but has not addressed three budget policy decisions. The first policy issue the committee needs to address is the restoration of the certified match, remarked Mr. Burke. During the last 3 years, the agency has utilized a certified in-kind match, however, the agency has been asked to replace the funds from the General Fund with an in-kind match. He stated the agency has testified there is no level of certified match which would not risk a federal audit exception during FY 1996 and FY 1997. Mr. Burke indicated the second policy issue the committee needs to decide is the expansion of the Welfare Division's Job Opportunities and Basic Skills Training Program (JOBS) Assessment project by adding a Vocational Evaluator and Program Assistant. He noted the agency maintains the pilot JOBS assessment project in Reno and has produced a 50-percent improvement in placement results in the JOBS program. The third policy decision the committee needs to address, remarked Mr. Burke, is the replacement approval of the division's Banyan Vines network with a NOVELL network. Senator O'Donnell stated it is wrong to utilize a certified in-kind match and the funds need to be appropriated from the General Fund. MS. GIUNCHIGLIANI MOVED TO APPROVE THE GOVERNOR'S RECOMMENDATION REGARDING POLICY ISSUE NUMBER 1 AS LISTED ON PAGE 7 OF EXHIBIT D. MS. TIFFANY SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * SENATOR JACOBSEN MOVED TO APPROVE THE GOVERNOR'S RECOMMENDATION REGARDING POLICY ISSUE NUMBER 1 AS LISTED ON PAGE 7 OF EXHIBIT D. SENATOR MATHEWS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * Senator O'Donnell said the performance indicators suggest policy issue number two should be supported. Ms. Giunchigliani asked if the personnel request takes into consideration a study request regarding the removal of the JOBS program from the Welfare Division to the DETR. Ms. Jackson replied this action will provide the department with more information than the original pilot program. She indicated a committee is being formed to study the proposed JOBS program transfer. MS. GIUNCHIGLIANI MOVED TO APPROVE THE EXPANSION OF THE WELFARE DIVISION'S JOBS ASSESSMENT PROJECT BY ADDING A VOCATIONAL EVALUATOR AND A PROGRAM ASSISTANT. MS. TIFFANY SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * SENATOR MATHEWS MOVED TO APPROVE THE EXPANSION OF THE WELFARE DIVISION'S JOBS ASSESSMENT PROJECT BY ADDING A VOCATIONAL EVALUATOR AND A PROGRAM ASSISTANT. SENATOR JACOBSEN SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * Senator O'Donnell asked if the committee wishes to expend $138,000 to replace the division's Banyan Vines network with a Novell network. The senator questioned if the present system is in working order. Jim Hanna, Director, Division of Information Development and Processing, Department of Employment, Training and Rehabilitation, replied the system is working, but is not the standard utilized by DETR. He commented there is no in-house expertise to support the system, so outside vendors must be used for technical support. Converting to the NOVELL network will provide enhanced "interoperability" with other systems within the department and eliminate the need to maintain two systems, remarked Mr. Hanna. Senator O'Donnell inquired about the number of Personal Computers (PCs) on the network. Mr. Hanna responded there are approximately 500 to 550 PCs in the department. MS. TIFFANY MOVED TO APPROVE THE REPLACEMENT OF THE BANYAN VINES NETWORK WITH A NOVELL NETWORK IN ACCORDANCE WITH THE GOVERNOR'S RECOMMENDATION. MS. GIUNCHIGLIANI SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * SENATOR MATHEWS MOVED TO APPROVE THE REPLACEMENT OF THE BANYAN VINES NETWORK WITH A NOVELL NETWORK IN ACCORDANCE WITH THE GOVERNOR'S RECOMMENDATION. SENATOR JACOBSEN SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * Ms. Jackson asked if the budget for the Bureau of Alcoholism and Drug Prevention could be closed. Senator O'Donnell explained there are a number of unresolved issues which might affect this budget, so the budget will not be closed at this time. Bureau of Services to the Blind - Page 1477 Mr. Burke noted page 8 of Exhibit D reflects technical adjustments and an increase in the cost allocation to the attorney general's office. Mrs. Evans suggested this budget should be placed under vocational rehabilitation and asked the committee to consider requiring the department to study this request over the next biennium and make a recommendation to the 1997 Legislature. The study should provide justification as to why the bureau should be separate from vocational rehabilitation and if the Blind Business Enterprise Program should be privatized. Ms. Tiffany indicated she agreed with Mrs. Evans suggestion and asked for justification as to why an Orientation Mobility Instructor position is needed. Ms. Jackson explained an additional instructor is needed to reduce the 4 month waiting period. If the waiting list can be reduced, it will decrease the time to determine a person's eligibility and increase the successful employability of the individual. A blind person requires a minimum of 32 hours of instruction to become somewhat self- sufficient. She stressed that blindness is one of most difficult disabilities to handle and the additional instructor will help increase the number of blind individuals which can be helped in reaching self-sufficiency. Ms. Tiffany inquired about the number of people on the waiting list. Mr. Orr related the primary service of the bureau is disability adjustment. He said an Orientation Mobility Instructor teaches a blind person "how to get around" without help. Nevada has two Orientation Mobility Instructors and the number has not increased in 12 years, although the caseload has increased from 450 people to 1024 people. Ms. Tiffany asked how many people will be taken off the waiting list if the position is funded. Senator O'Donnell interjected the position will not take care of the backlog, but will let the bureau "catch up." Mr. Orr replied: Both services to the blind and vocational rehabilitation are a little bit between a rock and a hard place when they even discuss waiting lists. They [Nevada] are on record with their state plan filed with the federal government even though there are no such things as waiting lists in Nevada. If Nevada says there is a waiting list in their vocational rehabilitation program, they have to, by federal law, implement what is known as an `order of selection' which means that certain people get served and certain people don't get served. Nevada has fought doing that....They don't carefully collect waiting list information, because to collect it, would make it available to the federal government, who then would say, you have to do an 'order of selection.' MRS. EVANS MOVED TO APPROVE THE STAFF RECOMMENDATIONS AND THE ORIENTATION MOBILITY INSTRUCTOR AS LISTED ON PAGE 8 OF EXHIBIT D WITH THE UNDERSTANDING THE DEPARTMENT OF EMPLOYMENT, TRAINING AND REHABILITATION WILL CONDUCT A STUDY DURING THE NEXT BIENNIUM TO DETERMINE IF THE BUREAU OF VOCATIONAL REHABILITATION AND THE BUREAU OF SERVICES TO THE BLIND SHOULD BE MERGED AND TO DETERMINE IF THE BLIND BUSINESS ENTERPRISE PROGRAM SHOULD BE PRIVATIZED. MS. GIUNCHIGLIANI SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * SENATOR JACOBSEN MOVED TO APPROVE THE STAFF RECOMMENDATIONS AND THE ORIENTATION MOBILITY INSTRUCTOR AS LISTED ON PAGE 8 OF EXHIBIT D WITH THE UNDERSTANDING THE DEPARTMENT OF EMPLOYMENT, TRAINING AND REHABILITATION WILL CONDUCT A STUDY DURING THE NEXT BIENIUM TO DETERMINE IF THE BUREAU OF VOCATIONAL REHABILITATION AND THE BUREAU OF SERVICES TO THE BLIND SHOULD BE MERGED AND TO DETERMINE IF THE BLIND BUSINESS ENTERPRISE PROGRAM SHOULD BE PRIVATIZED. SENATOR MATHEWS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * Blind Business Enterprise Program - Page 1487 Mr. Burke stated the technical adjustments listed on page 9 of Exhibit D reflect cost allocation adjustments and reclassification adjustments to the appropriated general ledger. He asked if the committee wishes to approve the use of the Blind Enterprise Program revenue to fund the projects proposed in E850 and listed on page 9 of Exhibit D. Mr. Burke remarked the committee should note the information provided by the agency has been limited regarding how the estimates were determined. The detailed information provided on the Hoover Dam project indicates the costs exceed the amount requested for both years of the biennium. Senator O'Donnell interjected the funding for the proposed projects is included in the Executive Budget; however, the fiscal staff has received very little information regarding the details of the projects. He suggested the project funds be placed in a reserve account and the agency can approach the IFC when the necessary details are gathered. MS. TIFFANY RECOMMENDED TO CLOSE THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS AS LISTED ON PAGE 9 OF EXHIBIT D AND WITH THE UNDERSTANDING THE $780,000 FOR FY 1996 AND $330,000 FOR FY 1997 FOR THE PROPOSED PROJECTS LISTED IN E850 WILL BE PLACED IN A RESERVE ACCOUNT TO BE DISSEMINATED BY THE IFC DURING THE INTERIM. MRS. BROWER SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * SENATOR MATHEWS RECOMMENDED TO CLOSE THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS AS LISTED ON PAGE 9 OF EXHIBIT D AND WITH THE UNDERSTANDING THE $780,000 FOR FY 1996 AND $330,000 FOR FY 1997 FOR THE PROPOSED PROJECTS LISTED IN E850 WILL BE PLACED IN A RESERVE ACCOUNT TO BE DISSIMINATED BY THE IFC DURING THE INTERIM. SENATOR JACOBSEN SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * SSA/VR - Page 1495 Mr. Burke stated, on March 28, 1995, the Budget Division wrote the Senate Committee on Finance and the Assembly Committee on Ways and Means Chairmen indicating that due to uncertain funding and additional administrative requirements, the Department of Employment, Training and Rehabilitation will no longer administer the Drug Abuse Alcoholism Monitoring and Referral Program for the federal government. He referred to page 10 of Exhibit D and noted the adjustments reflect the expiration of the program at the end of the 1995 federal fiscal year. The Rehabilitation Program Specialist and the Management Assistant positions will be eliminated at the program's termination. Ms. Jackson related the referral program was not cost effective for the department to administer and the two employees associated with the program will be offered other positions within the department. She supports the Governor's recommended budget. MS. TIFFANY RECOMMENDED THE BUDGET BE CLOSED IN ACCORDANCE WITH STAFF RECOMMENDATIONS AS LISTED ON PAGE 10 OF EXHIBIT D. MS. GIUNCHIGLIANI SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * SENATOR MATHEWS RECOMMENDED TO CLOSE THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS AS LISTED ON PAGE 10 OF EXHIBIT D. SENATOR JACOBSEN SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * Disability Adjudication - Page 1503 Mr. Burke related technical adjustments have been made to cost allocations, postage, and Rehabilitation Administration allocations have been adjusted to classify expenditures in the appropriate general ledger. He asked if the committee wishes to approve the addition of two new Disability Adjudicators in FY 1996 and two additional Disability Adjudicators and a Senior Physician in FY 1997. Senator O'Donnell indicated he supports the additional positions. MS. TIFFANY MOVED TO RECOMMEND CLOSING THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS AS LISTED ON PAGE 11 OF EXHIBIT D AND TO APPROVE THE ADDITION OF TWO NEW DISABILITY ADJUDICATORS IN FY 1996 AND TWO ADDITIONAL DISABILITY ADJUDICATORS AND A SENIOR PHYSICIAN IN FY 1997. MR. PRICE SECONDED THE MOTION. THE MOTION CARRIED. (MRS. EVANS WAS ABSENT FOR THE VOTE.) * * * * * SENATOR MATHEWS MOVED TO RECOMMEND CLOSING THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS AS LISTED ON PAGE 11 OF EXHIBIT D AND TO APPROVE THE ADDITION OF TWO NEW DISABILITY ADJUDICATORS IN FY 1996 AND TWO ADDITIONAL DISABILITY ADJUDICATORS AND A SENIOR PHYSICIAN IN FY 1997. SENATOR JACOBSEN SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * Developmental Disabilities - Page 1511 Mr. Burke explained the budget has been adjusted to reflect the increase in state- owned building rent, Attorney General Cost Allocation, and Statewide Cost Allocation. MS. GIUNCHIGLIANI MOVED TO RECOMMEND CLOSING THE BUDGET IN ACCORDANCE WITH THE STAFF RECOMMENDATIONS AS LISTED ON PAGE 12 OF EXHIBIT D. MS. TIFFANY SECONDED THE MOTION. THE MOTION CARRIED. (MRS. BROWER WAS ABSENT FOR THE VOTE.) * * * * * SENATOR JACOBSEN MOVED TO RECOMMEND CLOSING THE BUDGET IN ACCORDANCE WITH THE STAFF RECOMMENDATIONS AS LISTED ON PAGE 12 OF EXHIBIT D. SENATOR MATHEWS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * Financial Assistance for Physically Disabled - Page 1517 Senator O'Donnell asked if the committee wishes to appropriate funds from the General Fund sufficient to provide pay increases and health insurance benefits for personal attendant service providers. The senator related the Executive Budget already includes the proposed increases. SENATOR MATHEWS MOVED TO RECOMMEND CLOSING THE BUDGET IN ACCORDANCE WITH THE GOVERNOR'S RECOMMENDATION. SENATOR JACOBSEN SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * MS. GIUNCHIGLIANI MOVED TO RECOMMEND CLOSING THE BUDGET IN ACCORDANCE WITH THE GOVERNOR'S RECOMMENDATION. MR. ALLARD SECONDED THE MOTION. THE MOTION CARRIED. (MS. TIFFANY VOTED NO. MRS. BROWER WAS ABSENT FOR THE VOTE.) * * * * * Traumatic Brain Injury Program - Page 1519 Senator O'Donnell noted the Governor has funded $25,000 from the General Fund for each year of the biennium to restore direct service to head-injured individuals served by the Nevada Community Enrichment program. MS. GIUNCHIGLIANI MOVED TO RECOMMEND CLOSING THE BUDGET IN ACCORDANCE WITH THE GOVERNOR'S RECOMMENDATION. MS. TIFFANY SECONDED THE MOTION. THE MOTION CARRIED. (MRS. BROWER WAS ABSENT FOR THE VOTE.) * * * * * SENATOR MATHEWS MOVED TO RECOMMEND CLOSING THE BUDGET IN ACCORDANCE WITH THE GOVERNOR'S RECOMMENDATION. SENATOR MATHEWS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * Hearing Devices Program - Page 1523 MS. GIUNCHIGLIANI MOVED TO RECOMMEND CLOSING THE BUDGET IN ACCORDANCE WITH THE GOVERNOR'S RECOMMENDATION. MS. TIFFANY SECONDED THE MOTION. THE MOTION CARRIED. (MRS. BROWER WAS ABSENT FOR THE VOTE.) * * * * * SENATOR JACOBSEN MOVED TO RECOMMEND CLOSING THE BUDGET IN ACCORDANCE WITH THE GOVERNOR'S RECOMMENDATION. SENATOR MATHEWS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * Community Based Services - Page 1527 Mr. Burke stated page 16 of Exhibit D indicates technical adjustments made to the budget and page 17 reflects the policy decisions which must be decided by the joint subcommittee. Senator O'Donnell noted Policy Decision 1 addresses the General Fund appropriation requested in budget category M200. He said the agency's caseload has risen from 100 in FY 1993 to 160 in FY 1994 and pointed out the requested funding has already been included in the Executive Budget. MS. TIFFANY MOVED TO APPROVE POLICY DECISION 1 AS OUTLINED ON PAGE 17 OF EXHIBIT D. MR. ALLARD SECONDED THE MOTION. THE MOTION CARRIED. (MRS. BROWER WAS ABSENT FOR THE VOTE.) * * * * * SENATOR MATHEWS MOVED TO APPROVE POLICY DECISION 1 AS OUTLINED ON PAGE 17 OF EXHIBIT D. SENATOR JACOBSEN SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * Senator O'Donnell indicated Policy Decision 2 pertains to the new requested position of Coordinator of Deaf Services and asked Ms. Jackson to justify the position request. Ms. Jackson said the position is needed to help in developing, supervising and evaluating programs related to the deaf and deaf/blind adults and children. Mrs. Evans commented she supports the position "somewhat reluctantly" because she would prefer the reestablishment of the deaf resource centers. She has been contacted by a number of deaf individuals requesting the reopening of the centers. The position is helpful, but more funds need to be allocated to the program, remarked Mrs. Evans. Ms. Jackson interjected the position will provide community outreach and coordinate activities associated with the telecommunications program. Mr. Orr related, deaf or hard of hearing individuals have requested three items: (1) a workable telecommunications system; (2) deaf resource centers; and (3) a deaf coordinator. A workable telecommunication system is already in place and a deaf coordinator will be provided if the position is approved. He commented the request for deaf resource centers is costly and a deaf coordinator will be just as effective. MRS. EVANS MOVED TO RECOMMEND CLOSING THE BUDGET IN ACCORDANCE WITH THE STAFF RECOMMENDATIONS AS LISTED ON PAGE 16 OF EXHIBIT D AND TO RECOMMEND APPROVAL OF THE COORDINATOR OF DEAF SERVICES POSITION. MS. TIFFANY SECONDED THE MOTION. THE MOTION CARRIED. (MRS. BROWER WAS ABSENT FOR THE VOTE.) * * * * * SENATOR MATHEWS MOVED TO RECOMMEND CLOSING THE BUDGET IN ACCORDANCE WITH THE STAFF RECOMMENDATIONS AS LISTED ON PAGE 16 OF EXHIBIT D AND TO RECOMMEND APPROVAL OF THE COORDINATOR OF DEAF SERVICES POSITION. SENATOR JACOBSEN SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * There being no further business before the committee, Senator O'Donnell adjourned the meeting at 9:50 a.m. RESPECTFULLY SUBMITTED: Pamela Jochim, Committee Secretary APPROVED BY: Senator William R. O'Donnell, Chairman DATE: Assemblywoman Chris Giunchigliani, Chairman DATE: Assemblywoman Sandra Tiffany, Chairman DATE: Senate Committee on Finance Assembly Committee on Ways and Means Joint Subcommittee on General Government May 12, 1995