SUMMARY--Requires budgeted funding for operation and maintenance of capital improvements. (BDR 31-3)
FISCAL NOTE: Effect on Local Government: No.
Effect on the State or on Industrial Insurance: No.
EXPLANATION - Matter in italics is new; matter in brackets [ ] is material to be omitted.
AN ACT relating to public finance; requiring budgeted funding as a condition precedent to the construction of a capital improvement and during its useful life; and providing other matters properly relating thereto.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
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Section 1 NRS 353.185 is hereby amended to read as follows:
353.185 The powers and duties of the chief are:
1. To appraise the quantity and quality of services rendered by each agency in the executive department of the state government, and the needs for such services and for any new services.
2. To develop plans for improvements and economies in organization and operation of the executive department, and to install such plans as are approved by the respective heads of the various agencies of [such] the department, or as are directed to be installed by the governor or the legislature.
3. To cooperate with the state public works board in developing comprehensive, long-range plans for capital improvements and the means for financing them.
4. To devise and prescribe the forms of [operation] operational reports to be required periodically from the several agencies in the executive department, and to require the several agencies to make such reports.
5. To prepare the executive budget report for the governor's approval and submission to the legislature.
6. To prepare a budget for the executive department of the state government for the next 2 fiscal years, which [budget shall:] must:
(a) Present a complete financial plan for the next 2 fiscal years;
(b) Set forth all proposed expenditures for the administration, operation and maintenance of the departments, institutions and agencies of the executive department of the state government, including those operating on funds designated for specific purposes by the constitution or otherwise [;] , which must include a separate statement of:
(1) The anticipated expense, including personnel, for the operation and maintenance of each capital improvement to be constructed during the next 2 fiscal years and of each capital improvement previously constructed which is to be used during those fiscal years or a future fiscal year; and
(2) The proposed source of funding for the operation and maintenance of each capital improvement, including personnel, to be constructed during the next 2 fiscal years;
(c) Set forth all charges for interest and debt redemption [charges] during the next 2 fiscal years;
(d) Set forth all expenditures for capital projects to be undertaken and executed during the next 2 fiscal years; and
(e) Set forth the anticipated revenues of the state government, and any other additional means of financing the expenditures proposed for the next 2 fiscal years.
7. To examine and approve work programs and allotments to the several agencies in the executive department, and changes therein.
8. To examine and approve statements and reports on the estimated future financial condition and the operations of the agencies in the executive department of the state government and the several [budget units, before any such] budgetary units that have been prepared by those agencies and units, before the reports are released to the governor, to the legislature, or for publication . [, which have been prepared by such agencies and budget units.]
9. To receive and deal with requests for information as to the [budget] budgetary status and operations of the executive agencies of the state government.
10. To prepare such statements of unit costs and other [cost] statistics relating to cost as may be required from time to time, or requested by the governor or the legislature.
11. To do and perform such other and further duties relative to the development and submission of an adequate budget for the executive department of the state government of the State of Nevada as the governor may require.
Sec. 2 Chapter 354 of NRS is hereby amended by adding thereto a new section to read as follows:
A local government shall not begin the construction of a capital improvement unless the funding for the operation and maintenance of the improvement during the current fiscal year, including personnel, is included in an approved budget.
Sec. 3 NRS 354.600 is hereby amended to read as follows:
354.600 [1.] Each budget [shall include detailed] must include:
1. Detailed estimates of budget resources for the budget year classified by funds and sources in a manner and on forms prescribed by the department of taxation.
2. [Each budget shall include detailed] Detailed estimates of expenditures for the budget year classified in a manner and on forms prescribed by the department of taxation.
3. A separate statement of the anticipated expense, including personnel, for the operation and maintenance of each capital improvement to be constructed during the budget year and of each capital improvement previously constructed which is to be used during that or a future budget year.
4. A separate statement of the proposed source of funding for the operation and maintenance of each capital improvement, including personnel, to be constructed during that budget year.
Sec. 4 Chapter 341 of NRS is hereby amended by adding thereto a new section to read as follows:
The construction of a capital improvement that is subject to the supervision of the board pursuant to this chapter may not be begun unless the funding for the operation and maintenance of the improvement during the current fiscal year, including personnel, is included in the approved budget for the fiscal year in which construction is begun.
Sec. 5 NRS 341.151 is hereby amended to read as follows:
341.1511. The board shall provide for a system of accounting for the total costs of state buildings throughout their expected useful life, taking into account all expenses of maintenance and operation.
2. Each proposal for the construction of a state building [shall include figures] must include:
(a) Figures showing the final total cost of the building, which is the sum of:
[(a)] (1) Initial construction costs; and
[(b)] (2) Operating costs for the expected useful life of the building, including maintenance, heating, lighting, air conditioning , personnel and other expenses of operation [.] ; and
(b) A statement of the proposed source of funding for the final total cost of the building.
Sec. 1. This section and sections 2 and 3 of this act become effective on July 1, 1998.
2. Sections 1, 4 and 5 of this act become effective on July 1, 1999.