MINUTES OF THE meeting
of the
ASSEMBLY Committee on Ways and Means
Seventy-Second Session
May 14, 2003
The Committee on Ways and Meanswas called to order at 7:46 a.m., on Wednesday, May 14, 2003. Chairman Morse Arberry Jr. presided in Room 3137 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. Exhibit B is the Guest List. All exhibits are available and on file at the Research Library of the Legislative Counsel Bureau.
COMMITTEE MEMBERS PRESENT:
Mr. Morse Arberry Jr., Chairman
Ms. Chris Giunchigliani, Vice Chairwoman
Mr. Walter Andonov
Mr. Bob Beers
Mrs. Vonne Chowning
Mrs. Dawn Gibbons
Mr. David Goldwater
Mr. Josh Griffin
Mr. Lynn Hettrick
Ms. Sheila Leslie
Mr. John Marvel
Ms. Kathy McClain
Mr. David Parks
Mr. Richard Perkins
COMMITTEE MEMBERS ABSENT:
None
GUEST LEGISLATORS PRESENT:
None
STAFF MEMBERS PRESENT:
Mark Stevens, Assembly Fiscal Analyst
Brian Burke, Senior Program Analyst
Mark Krmpotic, Senior Program Analyst
Russell Guindon, Deputy Fiscal Analyst
Bob Atkinson, Program Analyst
Julie Brand, Program Analyst
Jeffrey Ferguson, Program Analyst
Tracy Raxter, Program Analyst
Jim Rodriguez, Program Analyst
Catherine Caldwell, Committee Secretary
Susan Cherpeski, Committee Secretary
Chairman Arberry called the meeting to order at 7:46 a.m.
BUDGET CLOSINGS
Sheila Leslie, Assembly Chairwoman, Joint Subcommittee on K-12/Human Resources, presented the following closing report of the Department of Human Resources, Aging Services Division.
THE SUBCOMMITTEE ON K-12 AND HUMAN SERVICES DEVELOPED THE FOLLOWING RECOMMENDATIONS FOR THE DIVISION FOR AGING SERVICES BUDGETS REDUCING THE STATE GENERAL FUND APPROPRIATION BY $1.7 MILLION IN FY 2004 AND $1.1 MILLION IN FY 2005.
AGING SERVICES GRANTS – (B/A 3140 – Aging, Vol. II, p-1)
THE SUBCOMMITTEE RECOMMENDS CLOSING THE AGING SERVICES GRANTS BUDGET WITH AN INCREASE OF $1,090,268 IN TOBACCO SETTLEMENT FUNDS IN FY 2004 OVER THE AMOUNT IN THE FY 2003 WORK PROGRAM AND A REDUCTION OF $858,000 IN FY 2005 OVER THE AMOUNT IN FY 2004 DUE TO AN ANTICIPATED REDUCTION IN TOBACCO SETTLEMENT RECEIPTS FOR THIS FISCAL PERIOD. THE TOBACCO SETTLEMENT FUNDS DISTRIBUTED TO THIS BUDGET ARE USED TO PROVIDE ASSISTANCE TO SENIORS TO ENABLE THEM TO AVOID INSTITUTIONAL PLACEMENT AND PROVIDE ADDITIONAL SERVICES TO SENIORS ADDRESSED IN OTHER BUDGET ACCOUNTS.
THE GOVERNOR’S BUDGET RECOMMENDS FUNDING CASELOAD GROWTH IN ONGOING PROGRAMS, DIRECT SERVICES STAFF, AND PERSONAL ASSISTANCE SERVICES IN ACCORDANCE WITH SENATE BILL 174 (2001 LEGISLATURE) WITH TOBACCO SETTLEMENT MONIES. THE SUBCOMMITTEE EXPRESSED CONCERN OVER THE CONTINUED FUNDING OF PROGRAM EXPANSION FROM TOBACCO SETTLEMENT MONIES. HOWEVER, THE SUBCOMMITTEE CONCURS WITH THE GOVERNOR’S RECOMMENDATION TO CONTINUE FUNDING OF DIRECT SERVICE PROGRAMS, FUNDING THREE ADDITIONAL POSITIONS IN OTHER DIVISION BUDGET ACCOUNTS (CHIP MEDICAID WAIVER AND HOMEMAKER PROGRAMS), AND RECOMMENDS A LETTER OF INTENT TO EXPAND ONGOING SERVICES WITH REVENUE SOURCES OTHER THAN TOBACCO SETTLEMENT FUNDS IN THE FUTURE. A SIMILAR LETTER OF INTENT WAS ISSUED BY THE 2001 LEGISLATURE.
AGING OLDER AMERICANS ACT – (B/A3151, Aging, Vol II, p.5)
THE SUBCOMMITTEE RECOMMENDS CLOSING THE DIVISION’S ADMINISTRATIVE BUDGET BY ELIMINATING THE GOVERNOR’S RECOMMENDATION TO FUND A HIPAA PRIVACY OFFICER FOR THE DIVISION FOR AGING SERVICES AS APPROVAL WAS OBTAINED FROM THE SUBCOMMITTEE TO FUND A SIMILAR POSITION IN THE DIVISION OF HEALTH CARE FINANCING AND POLICY. THE POSITION WILL PROVIDE ASSISTANCE TO BOTH DIVISIONS.
THE SUBCOMMITTEE RECOMMENDS REDUCING FEDERAL AUTHORITY FOR TITLE III B, C, AND D ENTITLEMENTS IN THE AMOUNT OF $86, 425 IN FY 2004 AND $89,018 IN FY 2005 AND REDUCING THE GENERAL FUND MATCH IN THE AMOUNT OF $5,085 IN FY 2004 AND $5,236 IN FY 2005 IN ACCORDANCE WITH A MARCH 2003 FEDERAL GRANT AWARD REDUCTION OF 2 PERCENT.
THE SUBCOMMITTEE ALSO CONCURS WITH THE GOVERNOR’S RECOMMENDED EXPANSION OF THE LONG-TERM CARE OMBUDSMAN PROGRAM BY FIVE POSITIONS FUNDED BY MAXIMIZING THE FEDERAL MEDICAID TITLE XIX AVAILABILITY AND LEVERAGING EXISTING STATE GENERAL FUNDS APPROPRIATED FOR SALARIES FOR THE MATCH REQUIREMENT. THESE POSITIONS WILL REDUCE THE AVERAGE CARRYOVER CASELOAD FROM 60 CASES PER MONTH TO 40 CASES PER MONTH, AND INCREASE COURTESY VISITS TO NURSING HOMES FROM 50 PERCENT TO 100 PERCENT.
THE SUBCOMMITTEE CONCURS WITH THE GOVERNOR’S RECOMMENDATION TO RESTORE FUNDING FOR THE SENIOR RIDE PROGRAM CONTINGENT UPON PASSAGE OF SENATE BILL 288 CURRENTLY IN ASSEMBLY TRANSPORTATION. IF S.B. 288 IS APPROVED, FUNDING FOR THE PROVISION OF SENIOR RIDES WOULD INCREASE FROM $410,717 IN FY 2002 TO $577,666 IN FY 2004 AND $574,424 IN FY 2005.
SENIOR SERVICES PROGRAM – (B/A 3146, Aging, Vol. II, p.14)
THE SUBCOMMITTEE RECOMMENDS CLOSING THE SENIOR SERVICES BUDGET, ALSO KNOWN AS THE COMMUNITY HOME‑BASED INITIATIVES PROGRAM (CHIP), WITH AN INCREASE OF $3 MILLION FOR THE UPCOMING BIENNIUM, FROM MEDICAID AND TOBACCO SETTLEMENT FUNDS PROVIDED BY THE AGING GRANTS ACCOUNT, TO FUND CASELOAD GROWTH. FUNDING WOULD PROVIDE THE RESOURCES TO SERVE AN ADDITIONAL 108 CLIENTS. ANOTHER $430,000 IN MEDICAID FUNDING FOR THE 2003-05 BIENNIUM IS RECOMMENDED BY THE SUBCOMMITTEE TO EXPAND THE CHIP PROGRAM TO SERVE 80 ADDITIONAL CLIENTS. IN TOTAL, THE $3.4 MILLION INCREASE IN FUNDING OVER THE UPCOMING BIENNIUM WOULD SERVE AN ADDITIONAL 188 CLIENTS. FOUR SOCIAL WORKERS, TWO ADMINISTRATIVE ASSISTANTS, AND AN ACCOUNTING ASSISTANT ARE RECOMMENDED.
THE SUBCOMMITTEE RECOMMENDS AN EXPANSION OF THE ADULT GROUP CARE WAIVER PROGRAM FOR AN ADDITIONAL 100 SENIORS FUNDED BY MEDICAID. THE RECOMMENDATION IS BASED ON INFORMATION PROVIDED FROM THE MODEL ASSISTED LIVING ADVISORY COMMITTEE (APPROXIMATELY 45 SLOTS) AND THE STRATEGIC PLAN FOR SENIORS (A.B. 513, 2001 SESSION) (APPROXIMATELY 58 SLOTS). TWO NEW SOCIAL WORKER POSITIONS AND AN ADMINISTRATIVE ASSISTANT POSITION ARE RECOMMENDED TO SUPPORT THE ADDITIONAL CASELOAD.
THE SUBCOMMITTEE RECOMMENDS GENERAL FUND SUPPORT FOR S.B. 174 (2001 SESSION) TO PROVIDE FOR THE PERSONAL ASSISTANCE SERVICES MANDATE FOR 33 STATE-ONLY CHIP CLIENTS. THE RECOMMENDATION PROVIDED BY THE SUBCOMMITTEE IS IN ACCORDANCE WITH A PROPOSAL BY THE DEPARTMENT OF HUMAN RESOURCES TO PHASE-IN THE REQUESTED NUMBER OF CLIENTS FOR BOTH AGING AND THE OFFICE OF COMMUNITY BASED SERVICES (OCBS) OVER THE FIRST YEAR OF THE BIENNIUM. FUNDING PROVIDED BY THE STATE GENERAL FUND WOULD BE A REALLOCATION FROM AGING TO OCBS IN THE AMOUNT OF $1.2 MILLION. ADDITIONALLY, THE SENIOR SERVICES BUDGET ACCOUNT WOULD RECEIVE A TRANSFER FROM THE TOBACCO SETTLEMENT BUDGET ACCOUNT OF $596,000 OVER THE BIENNIUM TO SUPPLEMENT THE GENERAL FUND TRANSFER TO OCBS. AGING WOULD SERVE 33 CLIENTS AND OCBS WOULD SERVE 30 CLIENTS BY THE END OF THE BIENNIUM. AN INCREASE IN 33 CLIENTS WILL REQUIRE AN ADDITIONAL SOCIAL WORKER TO MANAGE THE CASES.
THE SUBCOMMITTEE CONCURS WITH THE GOVERNOR’S RECOMMENDATION TO FUND THE ADDITION OF ONE MEDICALLY FRAGILE CASE MANAGER TO PROVIDE SERVICES IN NORTHERN NEVADA WITH FEDERAL MEDICAID FUNDS.
ADDITIONALLY, THE SUBCOMMITTEE CONCURS WITH THE GOVERNOR’S RECOMMENDATION TO TRANSFER THE PERSONAL CARE ASSISTANCE SERVICES UNDER THE MEDICAID CHIP WAIVER PROGRAM TO THE DIVISION OF HEALTH CARE FINANCING AND POLICY. THE PERSONAL CARE ASSISTANCE SERVICES UNDER THIS PROGRAM WILL STILL BE PROVIDED AND CASES MANAGED BY AGING SERVICES, HOWEVER, EXPENDITURES FOR THESE SERVICES WILL BE ACCOUNTED FOR IN THE MEDICAID BUDGET ACCOUNT.
EPS/HOMEMAKER PROGRAMS – (B/A 3252, Aging, Vol. II, p. 25)
THE SUBCOMMITTEE RECOMMENDS CONTINUED SUPPORT OF THE HOMEMAKER PROGRAM WITH $496,000 IN TOBACCO SETTLEMENT MONIES FOR THE NEXT BIENNIUM. THE HOMEMAKER PROGRAM PROVIDES FOR IN‑HOME SERVICES TO SENIORS IN ORDER TO AVOID INSTITUTIONAL PLACEMENT.
THE SUBCOMMITTEE RECOMMENDS EXPANSION OF THE ELDER PROTECTIVE SERVICES PROGRAM WITH $299,000 IN TITLE XX FUNDING AND $78,000 IN STATE GENERAL FUNDS FOR THE NEXT BIENNIUM. THIS RECOMMENDATION REDUCES THE GOVERNOR’S RECOMMENDATION BY 1.5 FTE. THE ADDITIONAL FUNDING WOULD PROVIDE FOR TWO SOCIAL WORKERS AND TWO ADMINISTRATIVE ASSISTANTS REDUCING THE CURRENT CASELOAD FROM 37 CASES PER MONTH TO 30 CASES PER MONTH AND INCREASES THE NUMBER OF FACE-TO-FACE INVESTIGATIONS FROM 50 PERCENT TO 90 PERCENT.
SENIOR CITIZENS’ PROPERTY TAX ASSISTANCE – (B/A 2363, Aging Vol. II, p. 29)
THE SUBCOMMITTEE RECOMMENDS CLOSING THE SENIOR CITIZENS’ PROPERTY TAX ASSISTANCE BUDGET AS RECOMMENDED BY THE GOVERNOR WITH TECHNICAL ADJUSTMENTS TO THE GENERAL FUND BY AMOUNTS PROJECTED TO BE CARRIED FORWARD FROM PRIOR YEARS, AND ADJUSTMENTS ALIGNING DEMOGRAPHIC GROWTH IN INELIGIBLE APPLICANTS TO THE GROWTH IN SENIOR POPULATION. THESE ADJUSTMENTS REDUCE THE GENERAL FUND NEED BY $595,270 IN FY 2004 AND $359,739 IN FY 2005.
THE SUBCOMMITTEE ALSO RECOMMENDS REDUCING THE GENERAL FUND BY $18,822 IN FY 2004 AND $19,224 IN FY 2005 TO ELIMINATE THE MIGRATION OF THE EXISTING DATABASE TO A DOIT SQL SERVER.
THE SUBCOMMITTEE CONCURS WITH THE GOVERNOR’S RECOMMENDATION TO FUND FOR THE ADDITION OF ONE .51 ADMINISTRATIVE ASSISTANT III POSITION TO ACCOMMODATE PROJECTED PROGRAM GROWTH.
THE SUBCOMMITTEE ALSO RECOMMENDS CLOSING THE DIVISION FOR AGING SERVICES BUDGET ACCOUNTS WITH TECHNICAL ADJUSTMENTS FOR EQUIPMENT PRICING AS REVISED BY STATE PURCHASING, INFLATIONARY ADJUSTMENTS, INCREASES IN FRINGE BENEFITS, AND INCREASES IN INTERNAL ASSESSMENTS.
Assemblywoman Leslie said the Subcommittee had crafted a good Aging Services Division budget and had saved $2.8 million over the biennium.
Assemblywoman McClain asked whether or not the adjustments for the Senior Citizens Property Tax Assistance were made with the assumption that Assembly Bill 515 would pass.
Julie Brand, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau (LCB), introduced herself and said that A.B. 515 had not been incorporated into Budget Account 2363. She said that during the hearings the Subcommittee said it would consider A.B. 515 subsequent to its passage.
Mark Stevens, Assembly Fiscal Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, introduced himself and said some piece of legislation needed to be passed this session with regard to the Senior Citizens Property Tax Assistance program, but the budget had not been based specifically on the passage of A.B. 515.
Assemblyman Parks said he believed A.B. 515 was intended to be fiscally neutral and did not create additional costs beyond what had been currently appropriated.
Sheila Leslie, Chairwoman of the Subcommittee on K-12/Human Resources, presented the closing report for the Division of Mental Health and Development Services as follows:
VOLUME II – DIVISION OF MENTAL HEALTH AND DEVELOPMENTAL SERVICES
THE JOINT SUBCOMMITTEE FOR K-12, HUMAN RESOURCES DEVELOPED RECOMMENDATIONS FOR THE BUDGETS WITHIN THE DIVISION OF MENTAL HEALTH AND DEVELOPMENTAL SERVICES (MHDS), INCLUDING MHDS ADMINISTRATION, NORTHERN NEVADA ADULT MENTAL HEALTH SERVICES, LAKE’S CROSSING FACILITY FOR THE MENTALLY DISORDERED OFFENDER, RURAL CLINICS, SOUTHERN NEVADA ADULT MENTAL HEALTH SERVICES, MENTAL HEALTH INFORMATION SYSTEM, SIERRA REGIONAL CENTER, DESERT REGIONAL CENTER, FAMILY PRESERVATION PROGRAM AND RURAL REGIONAL CENTER.
SERVICE PROVIDER RATE INCREASES (MODULE E-350)
THE SUBCOMMITTEE CONCURRED WITH THE GOVERNOR’S RECOMMENDATION TO INCREASE THE RATES PAID TO SUPPORTED LIVING ARRANGEMENT (SLA) AND COMMUNITY TRAINING CENTER (CTC) SERVICE PROVIDERS BY 7 PERCENT EFFECTIVE JANUARY 1, 2004, WITH AN ADDITIONAL INCREASE OF 8 PERCENT EFFECTIVE JULY 1, 2004. THE RECOMMENDED RATE INCREASES RESULT FROM STUDIES UNDERTAKEN DURING THE 2001-03 BIENNIUM AS DIRECTED BY ASSEMBLY BILL 513 (2001) AND A LETTER OF INTENT ISSUED BY THE MONEY COMMITTEES DURING THE 2001 LEGISLATIVE SESSION. THE SUBCOMMITTEE APPROVED A BUDGET AMENDMENT REDUCING THE COSTS OF THE RATE INCREASE BY $334,948 ($280,009 GENERAL FUNDS) IN THE 2003-05 BIENNIUM AS A RESULT OF TECHNICAL CORRECTIONS.
INCREASES IN MEDICATION COSTS (VARIOUS DECISION UNITS)
THE SUBCOMMITTEE RECOMMENDS APPROVAL OF THE GOVERNOR’S RECOMMENDATION TO INCREASE FUNDING FOR MEDICATION COSTS FOR THE MENTAL HEALTH AGENCIES. APPROVAL IS SUBJECT TO FURTHER ADJUSTMENTS FOR INFLATION SHOULD STAFF IDENTIFY POSSIBLE CHANGES THAT WOULD PROVIDE FOR ADDITIONAL GENERAL FUND SAVINGS WITH RESPECT TO INFLATIONARY INCREASES. STAFF HAS PERFORMED A PRELIMINARY REVIEW OF RECENT INFORMATION REGARDING MEDICATION INFLATION INCREASES. PRELIMINARY RESULTS OF THE REVIEW SUGGEST THAT INFLATION COSTS MAY POSSIBLY BE REDUCED THAT COULD GENERATE GENERAL FUND SAVINGS OF APPROXIMATELY $199,000 IN FY 2003-04 AND $282,000 IN FY 2004-05. HOWEVER, DUE TO CURRENT TIME AND WORKLOAD CONSTRAINTS, STAFF REQUIRES ADDITIONAL TIME TO CONDUCT FURTHER ANALYSIS TO VALIDATE THESE ESTIMATES. IF THE COMMITTEE DESIRES, STAFF WILL ATTEMPT TO COMPLETE THEIR REVIEW THIS WEEK AND PROVIDE THE RESULTS TO THE JOINT SENATE FINANCE AND ASSEMBLY WAYS AND MEANS COMMITTEE MEETING CURRENTLY SCHEDULED FOR FRIDAY, MAY 16, 2003.
THE SUBCOMMITTEE APPROVED A BUDGET AMENDMENT BASED UPON REVISED CALCULATIONS REDUCING THE COSTS OF MEDICATIONS, RESULTING IN GENERAL FUND SAVINGS TOTALING $1 MILLION IN THE 2003‑05 BIENNIUM.
PHARMACIST RECLASSIFICATIONS (E-805)
THE SUBCOMMITTEE RECOMMENDS APPROVING THE GOVERNOR’S RECOMMENDATION TO MOVE THE PHARMACIST POSITIONS AT NNAMHS AND SNAMHS FROM THE REGULAR CLASSIFIED PAY SCHEDULE TO THE CLASSIFIED MEDICAL PAY SCALE. THE RECLASSIFICATION AFFECTS A TOTAL OF 11.01 FTE POSITIONS TO ADDRESS A RECENT DEPARTMENT OF PERSONNEL STUDY FINDING THAT STATE PHARMACIST SALARIES RANGE FROM 39 TO 52 PERCENT BELOW THE SALARIES PAID TO PHARMACISTS IN THE PRIVATE SECTOR.
MHDS ADMINISTRATION (101-3168) MHDS-1
THE SUBCOMMITTEE CONCURRED WITH THE GOVERNOR’S RECOMMENDATION FOR A NEW MANAGEMENT ANALYST IV POSITION TO OVERSEE THE DEVELOPMENT, IMPLEMENTATION AND ADHERENCE TO THE DIVISION’S POLICIES COVERING PRIVACY AND ACCESS TO CLIENT INFORMATION IN CONFORMANCE WITH THE HEALTH INSURANCE PORTABILITY AND ACCOUNTABILITY ACT (HIPAA) OF 1996. THE SUBCOMMITTEE ALSO VOTED TO RESTORE FUNDING OF $143,969 PER YEAR FOR THE PSYCHIATRIC RESIDENCY PROGRAM AT UNR THAT WAS RECOMMENDED FOR ELIMINATION BY THE GOVERNOR. THE SUBCOMMITTEE CONCURRED WITH THE GOVERNOR’S RECOMMENDATION TO TRANSFER A 0.75 FTE LICENSED PSYCHOLOGIST POSITION TO LAKE’S CROSSING THAT WILL CONTINUE TO PROVIDE EVALUATION AND TREATMENT SERVICES TO CLIENTS WHO ARE UNDER REVIEW OF THE DEPARTMENT OF CORRECTIONS SEX OFFENDER PANEL.
NORTHERN NEVADA ADULT MENTAL HEALTH SERVICES (101-3162) MHDS-7
THE SUBCOMMITTEE CONCURRED WITH THE GOVERNOR’S RECOMMENDATION TO FUND ADDITIONAL CASELOAD INCREASES IN THE MEDICATION CLINIC, 5 SUPPORTED LIVING ARRANGEMENTS (SLA’S) AND OUTPATIENT COUNSELING. THE CASELOAD INCREASES ARE SUPPORTED BY AN ADDITIONAL 8.77 FTE POSITIONS. THE SUBCOMMITTEE AGREED WITH THE GOVERNOR’S RECOMMENDATION TO FUND THE CONTINUATION OF THE MENTAL HEALTH COURT IN WASHOE COUNTY, WHICH PROVIDES OUTPATIENT TREATMENT AS AN ALTERNATIVE TO JAIL SENTENCES AND WILL SERVE UP TO 45 MENTALLY‑ILL INDIVIDUALS. THE SUBCOMMITTEE RECOMMENDS A LETTER OF INTENT BE ISSUED DIRECTING NNAMHS TO INCORPORATE PERFORMANCE INDICATORS FOR THE MENTAL HEALTH COURT PROGRAM INTO THE EXECUTIVE BUDGET IN FUTURE BIENNIA. THE SUBCOMMITTEE ALSO CONCURRED WITH THE GOVERNOR’S RECOMMENDATION TO ELIMINATE THE 8-BED RESIDENTIAL TREATMENT PROGRAM, FREE CLIENT BUS PASSES, A PSYCHIATRIC CASEWORKER POSITION, AND THE CAMPUS SECURITY CONTRACT TO FUND AN ADDITIONAL 15 COMMUNITY SUPPORT PLACEMENTS IN THE 2003‑05 BIENNIUM. A TOTAL OF 3.98 FTE POSITIONS ARE ELIMINATED DUE TO LONG-TERM VACANCIES, WITH A PORTION OF THE SAVINGS UTILIZED TO SUPPORT CONTRACT PSYCHIATRIC SERVICES.
LAKE’S CROSSING FACILITY FOR THE MENTALLY DISORDERED OFFENDER (101-3645) MHDS‑18
THE SUBCOMMITTEE CONCURS WITH THE GOVERNOR’S RECOMMENDATION TO INCREASE THE THREE‑QUARTER TIME LICENSED PSYCHOLOGIST POSITION TRANSFERRED FROM THE ADMINISTRATION ACCOUNT TO A FULL-TIME POSITION. THE SUBCOMMITTEE ALSO CONCURRED WITH THE GOVERNOR’S RECOMMENDATION TO ELIMINATE FIVE POSITIONS THAT PROVIDED MENTAL HEALTH SERVICES TO THE CLARK COUNTY DETENTION CENTER AND THE LAS VEGAS CITY JAILS. MENTAL HEALTH SERVICES FOR THE FACILITIES ARE PROVIDED THROUGH THE UCCSN MEDICAL SCHOOL.
RURAL CLINICS (101-3648) MHDS-25
THE SUBCOMMITTEE CONCURRED WITH THE GOVERNOR’S RECOMMENDATIONS FOR FUNDING CASELOAD INCREASES IN THE MEDICATION CLINICS, OUTPATIENT SERVICES, PSYCHOSOCIAL REHABILITATION AND COMMUNITY RESIDENTIAL PLACEMENTS. THE SUBCOMMITTEE RECOMMENDS APPROVAL OF 18.29 FTE POSITIONS, INCLUDING 12.52 FTE CLINICAL POSITIONS, TO SUPPORT THE RECOMMENDED CASELOAD INCREASES. THE SUBCOMMITTEE ALSO RECOMMENDS APPROVAL OF THE GOVERNOR’S RECOMMENDATION TO ADD 1.27 FTE POSITIONS TO PROVIDE SERVICES TO INDIVIDUALS ON WAITING LISTS IN CLINICS STATEWIDE. ADDITIONAL FUNDING IS ALSO APPROVED TO SUPPORT INCREASED SERVICE AND TRAVEL HOURLY RATES PAID TO CONTRACT PSYCHIATRISTS. LASTLY, THE SUBCOMMITTEE RECOMMENDS A LETTER OF INTENT BE ISSUED DIRECTING RURAL CLINICS TO REVIEW ITS METHODOLOGY IN DEVELOPING BUDGETARY REVENUE ESTIMATES, DUE TO ANNUAL REVENUE SHORTFALLS THE AGENCY HAS EXPERIENCED IN RECENT YEARS.
SOUTHERN NEVADA ADULT MENTAL HEALTH SERVICES (101‑3161) MHDS-34
THE SUBCOMMITTEE RECOMMENDS APPROVAL OF THE GOVERNOR’S RECOMMENDATION FOR FUNDING OF $3.3 MILLION ($3.2 MILLION GENERAL FUND) TO EXPAND THE PSYCHIATRIC OBSERVATION UNIT (POU) FROM 10 BEDS TO 26 BEDS AND TO RESTORE STAFFING IN THE ACUTE INPATIENT HOSPITAL TO OPERATE 77 BEDS. THE ADDITIONAL POU BEDS ARE NEEDED IN RESPONSE TO INCREASING DEMAND FOR EMERGENCY MENTAL HEALTH SERVICES IN CLARK COUNTY. THE ADDITIONAL FUNDING INCREASES STAFFING BY 36.7 FTE AND INCREASES TOTAL INPATIENT CARE CAPACITY FROM 88 BEDS TO 103 BEDS. THE SUBCOMMITTEE ALSO RECOMMENDS APPROVING THE GOVERNOR’S RECOMMENDATION FOR A SECOND PROGRAM FOR ASSERTIVE COMMUNITY TREATMENT (PACT), INCLUDING 7.53 POSITIONS, ALONG WITH ESTABLISHING A NEW MOBILE CRISIS UNIT THAT IS STAFFED WITH 5.6 FTE POSITIONS. THE MOBILE CRISIS UNIT WILL PROVIDE CRISIS INTERVENTION SERVICES TO MENTALLY ILL INDIVIDUALS ON SITE AT CLARK COUNTY HOSPITAL EMERGENCY ROOMS 24 HOURS PER DAY, SEVEN DAYS PER WEEK. THE SUBCOMMITTEE RECOMMENDS ISSUING A LETTER OF INTENT DIRECTING SNAMHS TO DEVELOP PERFORMANCE INDICATORS FOR THE NEW PROGRAM AND TO PROVIDE SEMI-ANNUAL PROGRAM STATUS REPORTS TO THE IFC.
THE SUBCOMMITTEE CONCURS WITH THE GOVERNOR’S RECOMMENDATION TO FUND AN ADDITIONAL 823 CLIENTS IN THE MEDICATION CLINICS, 182 RESIDENTIAL COMMUNITY SUPPORT PLACEMENTS, 58 ADDITIONAL CLIENTS IN THE PSYCHIATRIC AMBULATORY SERVICES (PAS) UNIT, AND SERVICE COORDINATION SERVICES TO SUPPORT THE INCREASE IN RESIDENTIAL HOUSING SUPPORTS. THE SUBCOMMITTEE APPROVED AN ADDITIONAL 22.1 FTE POSITIONS TO SUPPORT THE CASELOAD INCREASES. THE SUBCOMMITTEE ALSO RECOMMENDS APPROVING THE GOVERNOR’S RECOMMENDATION TO ELIMINATE FUNDING FOR THE 10-BED BRUCE ADAMS RESIDENTIAL TREATMENT PROGRAM AND REDUCE OVERTIME BY $116,025, UTILIZING THE SAVINGS TO FUND AN ADDITIONAL 16 CLIENTS IN SUPPORTED LIVING ARRANGEMENTS IN THE COMMUNITY.
MENTAL HEALTH INFORMATION SYSTEM (101-3164) MHDS-78
THE SUBCOMMITTEE CONCURS WITH THE GOVERNOR’S RECOMMENDATION TO INCLUDE FUNDING FOR OVERTIME FOR INFORMATION SYSTEMS STAFF DURING THE CONVERSION FROM THE AIMS CLIENT INFORMATION AND BILLING SYSTEM TO THE AVATAR SYSTEM. THE JOINT SUBCOMMITTEE ON GENERAL GOVERNMENT APPROVED THE CONVERSION PROJECT IN THE DEPARTMENT OF ADMINISTRATION’S INFORMATION TECHNOLOGY PROJECTS ACCOUNT ON MAY 8, 2003. THE SUBCOMMITTEE RECOMMENDS ISSUING A LETTER OF INTENT DIRECTING THE DIVISION TO PROVIDE QUARTERLY REPORTS, INCLUDING PROJECT COST INFORMATION, TO THE INTERIM FINANCE COMMITTEE DURING THE 2003-05 BIENNIUM.
DEVELOPMENTAL SERVICES – SIERRA REGIONAL CENTER (101-3280) MHDS-51; DESERT REGIONAL CENTER (101-3279) MHDS-59; RURAL REGIONAL CENTER (101-3167) MHDS-70
THE SUBCOMMITTEE RECOMMENDS APPROVING INCREASED FUNDING AS RECOMMENDED BY THE GOVERNOR TO SERVE CASELOAD INCREASES AND WAITING LIST CLIENTS AT SIERRA REGIONAL CENTER AND RURAL REGIONAL CENTER. THE SUBCOMMITTEE ALSO VOTED TO APPROVE CASELOAD INCREASES AND WAITING LIST FOR CLIENTS AT DESERT REGIONAL CENTER THAT WERE LESS THAN WHAT THE GOVERNOR RECOMMENDED, BASED UPON REVISED CASELOAD PROJECTIONS PROVIDED BY MHDS. THE REDUCTIONS IN CASELOAD PROJECTIONS GENERATED GENERAL FUND SAVINGS OF $1.7 MILLION IN THE 2003-05 BIENNIUM. THE SUBCOMMITTEE APPROVED AN ADDITIONAL 26.54 FTE POSITIONS TO ADDRESS THE CASELOAD INCREASE AND WAITING LISTS FOR THE THREE REGIONAL CENTERS. THIS IS A REDUCTION OF 6.0 FTE POSITIONS FROM THE 32.54 FTE POSITIONS RECOMMENDED BY THE GOVERNOR DUE TO THE REVISED CASELOAD PROJECTIONS AT DESERT REGIONAL CENTER.
THE SUBCOMMITTEE CONCURRED WITH THE GOVERNOR’S RECOMMENDATION TO REDUCE 12 ICF/MR BEDS EACH AT THE DESERT AND SIERRA REGIONAL CENTERS AS A CONTINUATION OF THE THREE-PERCENT BUDGET REDUCTIONS IMPLEMENTED IN FY 2002-03. THE INDIVIDUALS DISPLACED FROM THE ICF/MR BEDS HAVE BEEN TRANSITIONED INTO COMMUNITY RESIDENTIAL PLACEMENTS AND JOBS AND DAY TRAINING PROGRAMS. TEN OF SIERRA REGIONAL CENTER’S CLIENTS PLACED INTO COMMUNITY RESIDENTIAL SUPPORTS REMAIN WITH THE AGENCY, WHILE THE OTHER TWO ARE UNDER COMMUNITY RESIDENTIAL PLACEMENTS PROVIDED BY THE RURAL REGIONAL CENTER. THE SUBCOMMITTEE RECOMMENDS APPROVING A BUDGET OFFICE AMENDMENT TO INCREASE FUNDING BY $284,856 ($161,655 GENERAL FUND) FOR SUPPORTED LIVING ARRANGEMENTS FOR THESE 12 CLIENTS, BASED UPON ACTUAL COSTS BEING HIGHER THAN THE AMOUNTS RECOMMENDED IN THE GOVERNOR’S BUDGET.
THE SUBCOMMITTEE ALSO RECOMMENDS APPROVING A BUDGET OFFICE AMENDMENT FURTHER REDUCING AN ADDITIONAL 10 BEDS AT DESERT REGIONAL CENTER. THE CLIENTS WILL BE TRANSITIONED INTO THE COMMUNITY. WHEN BUDGET REDUCTIONS WERE ENACTED IN 1992, ICF/MR STAFF WERE ELIMINATED AT DESERT REGIONAL CENTER WITHOUT A CORRESPONDING DECREASE IN THE NUMBER OF BEDS SERVED. SINCE THEN, THE AGENCY HAS INCURRED SIGNIFICANT AMOUNTS OF OVERTIME EACH YEAR TO PROVIDE ADEQUATE STAFFING FOR PATIENT CARE. REDUCTIONS IN OVERTIME COSTS, ALONG WITH THE ELIMINATION OF A DEVELOPMENTAL SPECIALIST POSITION, WILL FUND THE RESIDENTIAL PLACEMENTS AND JOBS AND DAY TRAINING NECESSARY FOR THE 10 INDIVIDUALS PLACED INTO THE COMMUNITY. THE 10-BED REDUCTION PROVIDES FOR THE PROPER ICF/MR STAFFING RATIOS FOR THE REMAINING 60 BEDS AT DESERT REGIONAL CENTER.
FINALLY, THE SUBCOMMITTEE CONCURRED WITH THE GOVERNOR’S RECOMMENDATION TO RETURN 14 INDIVIDUALS CURRENTLY RESIDING IN OUT-OF-STATE INSTITUTIONS BACK TO NEVADA AT A COST OF $1.8 MILLION ($1 MILLION GENERAL FUND) IN THE 2003-05 BIENNIUM. THE COSTS TO PLACE THE INDIVIDUALS INTO THE COMMUNITY INCLUDE $252,000 PER YEAR FOR JOBS AND DAY TRAINING. THE CLIENTS ARE CURRENTLY NOT RECEIVING OUT‑OF-STATE DUE TO THEIR AGE. THE PLACEMENT OF THESE INDIVIDUALS IN NEVADA COMMUNITIES FURTHER REINFORCES THE DIVISION’S COMPLIANCE WITH THE UNITED STATES SUPREME COURT OLMSTEAD DECISION.
FAMILY PRESERVATION PROGRAM (101-3166) MHDS-67
THE FAMILY PRESERVATION PROGRAM PROVIDES MONTHLY ASSISTANCE TO LOW-INCOME FAMILIES WHO PROVIDE CARE IN THEIR HOMES TO RELATIVES WITH SEVERE MENTAL RETARDATION OR CHILDREN UNDER SIX WITH DEVELOPMENTAL DELAYS. THE SUBCOMMITTEE CONCURS WITH THE GOVERNOR’S RECOMMENDATION TO RESTORE THE MONTHLY PAYMENT OF $310 PER MONTH, AS APPROVED BY THE 2001 LEGISLATURE, FOR 234 FAMILIES CURRENTLY SERVED IN THE PROGRAM. THE SUBCOMMITTEE ALSO AGREED WITH THE GOVERNOR’S RECOMMENDATION TO PROVIDE THE $310 PER MONTH PAYMENT TO AN ADDITIONAL 34 FAMILIES IN FY 2003-04 AND 56 MORE FAMILIES IN FY 2004‑05.
THE ASSEMBLY WAYS AND MEANS SUBCOMMITTEE’S RECOMMENDATIONS FOR THE DIVISION OF MENTAL HEALTH AND DEVELOPMENTAL SERVICES RESULT IN GENERAL FUND SAVINGS OF $614,678 IN FY 2003-04 AND $1,760,439 IN FY 2004‑05. A SUMMARY IS ATTACHED TO THE CLOSING PACKET. I WOULD LIKE TO THANK THE MEMBERS OF THE JOINT SUBCOMMITTEE ON K-12, HUMAN RESOURCES FOR THEIR EFFORTS IN FORMULATING THESE RECOMMENDATIONS (GIUNCHIGLIANI, GOLDWATER, HETTRICK AND GIBBONS).
Ms. Leslie said that the Subcommittee had done excellent work on the budget and were able to save over $2 million in General Funds while seriously addressing the needs of mental health care in the state, particularly in southern Nevada.
ASSEMBLYMAN GOLDWATER MOVED TO ACCEPT THE CLOSING REPORT ON DEPARTMENT OF HUMAN RESOURCES, DIVISION OF MENTAL HEALTH AND DEVELOPMENTAL SERVICES.
ASSEMBLYWOMAN GIBBONS SECONDED THE MOTION.
THE MOTION CARRIED. (Assemblymen Beers and Hettrick were not present for the vote.)
BUDGET CLOSED.
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Chairman Arberry asked for a motion on the closing report on Department of Human Resources, Aging Services Division.
ASSEMBLYMAN MARVEL MOVED TO APPROVE THE CLOSING BUDGET REPORT ON DEPARTMENT OF HUMAN RESOURCES, AGING SERVICES DIVISION.
ASSEMBLYMAN PARKS SECONDED THE MOTION.
THE MOTION CARRIED. (Assemblyman Beers and Assemblywoman Gibbons were not present for the vote.)
BUDGET CLOSED
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Sheila Leslie, Assembly Chairwoman, Joint Subcommittee on K-12/Human Resources, presented the closing report of the Department of Human Resources, Health Division, and reported an overall savings in the account of $2.5 million.
THE JOINT SUBCOMMITTEE REVIEWED 18 BUDGETS OF THE STATE HEALTH DIVISION. THE SUBCOMMITTEE RECOMMENDATIONS RESULT IN GENERAL FUND SAVINGS IN THE AMOUNT OF $1,283,093 FOR FY 2003-04 AND $1,384,110 FOR FY 2004-05. THE FOLLOWING HIGHLIGHTS THE MORE SIGNIFICANT CLOSING RECOMMENDATIONS OF THE SUBCOMMITTEE.
OFFICE OF HEALTH ADMINISTRATION
THE SUBCOMMITTEE RECOMMENDS APPROVAL OF THE HEALTH ADMINISTRATION BUDGET AS SUBMITTED BY THE GOVERNOR, WITH TWO EXCEPTIONS. THE EXECUTIVE BUDGET RECOMMENDED A HIPAA COMPLIANCE OFFICER FOR THE HEALTH DIVISION, TO BE FUNDED ENTIRELY WITH GENERAL FUND SUPPORT. THE SUBCOMMITTEE RECOMMENDS THAT THE POSITION BE FUNDED THROUGH A COMBINATION OF GENERAL FUND SUPPORT AND AGENCY INDIRECT COST FUNDS PROPORTIONATELY TO THE FUNDING FOR THE HEALTH DIVISION ACTIVITIES THAT ARE SUBJECT TO REGULATION BY HIPAA. THIS RECOMMENDATION RESULTS IN GENERAL FUND SAVINGS IN THE AMOUNT OF $42,941 FOR FY 2003-04 AND $54,814 FOR FY 2004-05.
DURING THE BUDGET HEARING ON THE HEALTH ADMINISTRATION ACCOUNT, THE HEALTH DIVISION REQUESTED THAT THE SUBCOMMITTEE CONSIDER APPROVAL OF FIVE NEW POSITIONS TO BE FUNDED WITH AGENCY INDIRECT COST FUNDS. THE DIVISION INDICATED THAT THESE POSITIONS WERE NOT REQUESTED IN THE EXECUTIVE BUDGET BECAUSE THE INDIRECT COST RATES WERE NOT KNOWN UNTIL RECENTLY. THE SUBCOMMITTEE RECOMMENDS APPROVAL OF THESE FIVE NEW POSITIONS: AN ADMINISTRATIVE SERVICES OFFICER II, AN ACCOUNTING TECHNICIAN I, A MANAGEMENT ANALYST II, AN ADMINISTRATIVE ASSISTANT II AND A COMPUTER NETWORK TECHNICIAN I.
VITAL STATISTICS
THE SUBCOMMITTEE RECOMMENDS THAT THE VITAL STATISTICS ACCOUNT BE CLOSED AS RECOMMENDED BY THE GOVERNOR. DURING THE SUBCOMMITTEE’S CONSIDERATION OF THIS ACCOUNT, THEY BECAME AWARE THAT FEES CHARGED FOR BIRTH AND DEATH CERTIFICATES IN NEVADA WERE LOWER THAN THE AVERAGE OF THE WESTERN STATES. THE SUBCOMMITTEE RECOMMENDS THAT THESE FEES BE RAISED $2. THESE FEES ARE DEPOSITED DIRECTLY INTO THE STATE GENERAL FUND AND NOT INTO THIS BUDGET ACCOUNT. THE SUBCOMMITTEE NOTED THAT AB 381 PROPOSED AN INCREASE OF $1 IN THE FEE FOR DEATH CERTIFICATES, AND IF THAT BILL PASSED, THE PORTION OF THE INCREASE GOING TO THE GENERAL FUND WOULD BE $1. AB 381 PASSED IN THE ASSEMBLY ON APRIL 28 AND IS CURRENTLY IN THE SENATE HUMAN RESOURCES AND FACILITIES COMMITTEE.
Ms. Leslie noted the handout, “Sentinel Events Registry Methodology,” (Exhibit C) developed by the Health Division. She said the Subcommittee had heard testimony regarding the three options contained in Exhibit C. The options were developed to fulfill the expectations included in A.B. 1 of the 18th Special Session, covering medical malpractice and medical errors. Although remedies were agreed upon they had not been funded in The Executive Budget. Ms. Leslie suggested that the full Committee consider funding Option 2 in Exhibit C. She noted that Option 2 provided the minimum acceptable staffing level for truly operating a registry that fulfilled the expectations of A.B. 1. She said the cost to implement Option 2 was $399,524 in FY2004 and $347,875 in FY2005. The Health Division indicated that Vital Statistics was the correct budget account to handle the task. She said the Subcommittee had already closed the Vital Statistics budget account and that this budget issue had not been raised at the proper time, and was therefore being presented today.
Speaker Perkins asked, since the budget item had been agreed to in A.B. 1 during the Special Session, if there had been discussion within administration as to why that particular budget item had been omitted.
Ms. Leslie said the question had not been directly answered. She said the Health Division was willing to undertake the responsibility, but the money had not been included in the budget.
Speaker Perkins said funding was an integral part of dealing with the insurance premium crisis in the state’s medical malpractice situation.
Ms. Leslie continued her presentation of the Joint Subcommittee on K‑12/Human Resources’ closing report for the Department of Human Resources, Health Division.
HEALTH AID TO COUNTIES
THE GOVERNOR RECOMMENDED, AND THE SUBCOMMITTEE CONCURRED, THAT THE GENERAL FUND PASS-THROUGH FUNDING TO THE HEALTH DISTRICTS IN CLARK AND WASHOE COUNTIES SHOULD BE ELIMINATED. IN ADDITION, THE SUBCOMMITTEE CONCURRED WITH THE GOVERNOR’S RECOMMENDATION TO ELIMINATE THIS ACCOUNT IN ITS ENTIRETY, AND THE POLLUTION CONTROL FUNDING THAT HAD BEEN DISTRIBUTED THROUGH THIS ACCOUNT WOULD BE DISTRIBUTED DIRECTLY FROM THE POLLUTION CONTROL ACCOUNT IN THE FUTURE.
HEALTH FACILITIES HOSPITAL LICENSING
THE BUDGET, AS RECOMMENDED BY THE GOVERNOR, INCLUDES THE ELIMINATION OF 17 POSITIONS FROM THIS ACCOUNT. BASED ON ASSURANCES FROM THE HEALTH DIVISION THAT ALL STATUTORILY-REQUIRED ACTIVITIES WILL CONTINUE TO BE PERFORMED WITH THIS REDUCED STAFFING LEVEL, THE SUBCOMMITTEE RECOMMENDED THE ACCOUNT BE CLOSED WITH TECHNICAL ADJUSTMENTS.
COMMUNITY HEALTH SERVICES AND FAMILY PLANNING PROJECT
DURING THE BUDGET HEARINGS FOR THESE ACCOUNTS, THE HEALTH DIVISION PRESENTED A PROPOSAL TO CONSOLIDATE THESE TWO ACCOUNTS IN ORDER TO ADDRESS CONCERNS OF A FEDERAL AUDIT REGARDING ALLOCATION OF TIME AND EXPENSES BETWEEN THE TWO ACCOUNTS. IN ADDITION, THE DIVISION INDICATED THAT THE CONSOLIDATION WOULD RESULT IN INCREASED EFFICIENCY FOR BOTH PROGRAMS. THE SUBCOMMITTEE CONCURRED WITH THIS REQUEST OF THE HEALTH DIVISION. IN COMBINING THESE BUDGET ACCOUNTS, THE SUBCOMMITTEE RECOMMENDS A REDUCTION IN, BUT NOT THE ELIMINATION OF, THE RESERVE/BALANCE FORWARD THAT HAD BEEN CARRIED IN THE FAMILY PLANNING PROJECT ACCOUNT. THE SUBCOMMITTEE RECOMMENDS A LETTER OF INTENT THAT THE RESERVE IS TO BE USED FOR CASH-FLOW PURPOSES ONLY; AND FOR NO OTHER PURPOSE WITHOUT THE CONCURRENCE OF THE INTERIM FINANCE COMMITTEE.
IMMUNIZATION PROGRAM
THE FUNDING RECOMMENDED IN THIS ACCOUNT CONTINUES THE EXISTING PROGRAM AND SERIES OF VACCINES WITH INCREASES FOR PROJECTED POPULATION GROWTH. THE GENERAL FUND SAVINGS NOTED IN THIS ACCOUNT IN THE AMOUNT OF $425,513 EACH YEAR, IS THE CORRECTION OF THE GROWTH DECISION UNIT TO INCLUDE THE FUNDING TRANSFERRED FROM THE NEVADA CHECK-UP PROGRAM IN SUPPORT OF THE IMMUNIZATION PROGRAM. THE SUBCOMMITTEE RECOMMENDS A LETTER OF INTENT FOR THE HEALTH DIVISION TO APPROACH THE INTERIM FINANCE COMMITTEE IF VACCINE USAGE INCREASES OR IF THE ANNUAL FEDERAL DIRECT ASSISTANCE GRANT IS NOT SUFFICIENT TO PROVIDE FOR THE EXISTING CHILDHOOD SERIES OF IMMUNIZATIONS, AND TO REPORT ALL PROPOSED MODIFICATIONS TO THE CURRENT IMMUNIZATION PROGRAM PRIOR TO IMPLEMENTATION.
SPECIAL CHILDREN’S CLINIC
THE EXECUTIVE BUDGET INCLUDED RECOMMENDATIONS FOR ADDITIONAL GENERAL FUND SUPPORT TO ADDRESS THE WAITING LISTS IN THE SPECIAL CHILDREN’S CLINICS AND TO COMBINE SEVERAL PROGRAMS FROM THE DIVISION OF CHILD AND FAMILY SERVICES INTO THE SPECIAL CHILDREN’S CLINICS, NAMELY THE FIRST STEP PROGRAM, THE HAPPY PROGRAM AND THE INFANT ENHANCEMENT PROGRAM. THE GENERAL FUND SAVINGS REFLECTED IN THIS ACCOUNT IS THE RESULT OF EFFORTS TO MAXIMIZE THE COLLECTIONS OF MEDICAL SERVICE CHARGES AND INCREASES IN THE INDIVIDUALS WITH DISABILITIES EDUCATION ACT (IDEA) GRANT FUNDING. WITH THIS FUNDING, IT IS ANTICIPATED THAT WAITING LISTS FOR INITIAL DIAGNOSTIC APPOINTMENTS AND FOR TREATMENT SERVICES SHOULD BE REDUCED CONSIDERABLY OR EVEN ELIMINATED. THE SUBCOMMITTEE RECOMMENDS THAT A LETTER OF INTENT BE ISSUED TO THE SPECIAL CHILDREN’S CLINICS DIRECTING THEM TO REPORT QUARTERLY TO THE INTERIM FINANCE COMMITTEE ON THE CURRENT STATUS OF ALL WAITING LISTS.
ALCOHOL AND DRUG REHABILITATION
THE SUBCOMMITTEE RECOMMENDS THE ALCOHOL AND DRUG REHABILITATION ACCOUNT BE CLOSED WITH TECHNICAL ADJUSTMENTS. THE GOVERNOR DID NOT RECOMMEND CONTINUATION OF MAXIMUS FUNDING IN THE ACCOUNT IN SUPPORT OF THE ADOLESCENT TREATMENT PROGRAM, BUT RATHER RECOMMENDED THAT THIS ACTIVITY BE FUNDED THROUGH AN ANTICIPATED INCREASE IN THE SUBSTANCE ABUSE PREVENTION AND TREATMENT BLOCK GRANT. BECAUSE OF THE UNCERTAINTY OF HOW THE MAXIMUS FUNDING MAY BE TREATED IN REGARD TO MAINTENANCE OF EFFORT, THE SUBCOMMITTEE RECOMMENDS THAT A LETTER OF INTENT BE ISSUED TO THE HEALTH DIVISION TO APPROACH THE INTERIM FINANCE COMMITTEE FOR APPROVAL TO UTILIZE MAXIMUS FUNDING, IF AVAILABLE, OR REQUEST AN ALLOCATION FROM THE CONTINGENCY FUND IF MAINTENANCE OF EFFORT COMPLICATIONS ARISE DUE TO THE PRIOR USE OF MAXIMUS FUNDING.
Ms. Leslie noted that she was very satisfied with the approach developed within the budget. She said the Subcommittee would continue funding those programs through an increase in the block grant. She said that money was firm and the program’s continuation assured. Ms. Leslie continued her presentation of the closing report.
THE SUBCOMMITTEE REVIEWED THE BUDGETS FOR CONSUMER HEALTH PROTECTION, COMMUNICABLE DISEASE CONTROL, SEXUALLY TRANSMITTED DISEASE CONTROL, MATERNAL CHILD HEALTH, WIC FOOD SUPPLEMENT, EMERGENCY MEDICAL SERVICES, THE PUBLIC HEALTH TOBACCO FUND, AND THE HEALTH ALERT NETWORK. THE SUBCOMMITTEE RECOMMENDS THAT THESE ACCOUNTS BE CLOSED AS RECOMMENDED BY THE GOVERNOR WITH TECHNICAL MODIFICATIONS. IN ADDITION, THE SUBCOMMITTEE RECOMMENDS APPROVAL OF THE ENVIRONMENTAL PUBLIC HEALTH TRACKING SYSTEM BUDGET AS APPROVED BY THE INTERIM FINANCE COMMITTEE IN NOVEMBER 2002.
Ms. Leslie noted that the Subcommittee had saved $2.5 million and that the Subcommittee recommended closing the budget with the Sentinel Events Registry Option #2.
Assemblywoman Chowning noted that the Subcommittee voted to not fund the Health Aid to Counties account resulting in a General Fund savings of more than $2 million. She said that testimony from the counties indicated that they desperately needed the program and asked for clarification as to the Subcommittee’s rationale for eliminating the account and how the lost funding to the counties would be managed.
Ms. Leslie said there had been considerable discussion on the matter and that the Governor had recommended eliminating the account from the budget. She said most of the $1.6 million in FY2003-04 and $1.7 million in FY2004-05 funding had been distributed to Clark County. The counties had made very good arguments in favor of the programs and their need for state financial support. However, the Subcommittee decided that, given the current budget constraints, the counties would have to assume financial responsibility for those programs. The state had funded Health Aid to Counties at varying levels over the years, and historical funding patterns decreased during tight budget years and, when revenues increased, the state contributed more to the counties. She said after considerable discussion and good argument, the Subcommittee opted to save state money. Ms. Leslie noted that the Subcommittee did not disagree that the programs were needed. The decision pivoted on whether or not the responsibility lay with the counties or the state, and the Subcommittee decided that the counties should assume responsibility for funding the programs.
ASSEMBLYWOMAN GIUNCHIGLIANI MOVED TO APPROVE THE CLOSING BUDGET REPORT ON DEPARTMENT OF HUMAN RESOURCES, HEALTH DIVISION, INCLUDING OPTION NO. 2.
ASSEMBLYWOMAN GIBBONS SECONDED THE MOTION.
THE MOTION CARRIED. (Assemblymen Beers and Hettrick were not present for the vote.)
BUDGET CLOSED.
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Vonne Chowning, Assembly Chairwoman, Joint Subcommittee on General Government, presented the closing report of the Department of Agriculture and Division of Minerals. Mrs. Chowning noted that today was the memorial service for Paul Iverson, former Director of the agency. She said Mr. Iverson had made considerable contributions to the budgets and it was his and the Subcommittee’s work being presented for the Committee’s consideration.
THE JOINT SUBCOMMITTEE ON GENERAL GOVERNMENT HAS COMPLETED ITS REVIEW OF THE BUDGET ACCOUNTS FOR THE DEPARTMENT OF AGRICULTURE AND THE DIVISION OF MINERALS. THE CLOSING ACTIONS OF THE SUBCOMMITTEE HAVE RESULTED IN ADDITIONAL GENERAL FUND COSTS TOTALING $57,825 IN FY 2003-04 AND GENERAL FUND SAVINGS OF $11,762 IN FY 2004-05 WHEN COMPARED TO THE GOVERNOR’S RECOMMENDED BUDGET.
ADMINISTRATION (BA 101-4554) AGRI – 1
THE SUBCOMMITTEE APPROVED THE TRANSFER OF TWO EXISTING CLERICAL POSITIONS FROM OTHER DEPARTMENT OF AGRICULTURE BUDGET ACCOUNTS TO THE ADMINISTRATION ACCOUNT. BOTH OF THE POSITIONS ARE CURRENTLY FUNDED 100 PERCENT WITH GENERAL FUNDS IN THEIR EXISTING ACCOUNTS. IN THE ADMINISTRATION ACCOUNT, THE POSITIONS WOULD BE FUNDED WITH 52 PERCENT GENERAL FUNDS AND 48 PERCENT THROUGH THE DEPARTMENT’S INTERNAL COST ALLOCATION PLAN, PROVIDING GENERAL FUND SAVINGS OF $104,993 FOR THE BIENNIUM. THE SUBCOMMITTEE ALSO APPROVED A NEW ACCOUNTING TECHNICIAN POSITION AS RECOMMENDED IN THE EXECUTIVE BUDGET TO ASSIST WITH THE INCREASED NUMBER OF FINANCIAL TRANSACTIONS WITHIN THE DEPARTMENT. FIFTY‑TWO PERCENT OF THE NEW POSITION’S FUNDING WOULD COME FROM GENERAL FUNDS TOTALING $46,037 FOR THE BIENNIUM, WHILE THE REMAINING 48 PERCENT WOULD BE FUNDED THROUGH THE DEPARTMENT’S INTERNAL COST ALLOCATION PLAN.
THE SUBCOMMITTEE APPROVED A PILOT PROGRAM TO PROVIDE JOB RELATED AWARDS TO DEPARTMENT OF AGRICULTURE EMPLOYEES BASED ON JOB PERFORMANCE.
THE PROGRAM WOULD BE IN ADDITION TO THE STATE MERIT AWARD BOARD’S PROGRAM, WHICH PROVIDES AWARDS BASED ON COST SAVING IDEAS. THE SUBCOMMITTEE BASED ITS DECISION ON THE FACT THAT AWARDS FROM THE CURRENT MERIT AWARD BOARD ARE FOR COST SAVINGS IDEAS, WHILE AWARDS FROM THE DEPARTMENT’S PILOT PROGRAM WOULD BE FOR JOB PERFORMANCE. THE PROGRAM WOULD BE FUNDED IN EACH YEAR OF THE BIENNIUM WITH $1,350 FROM THE DEPARTMENT’S INTERNAL COST ALLOCATION PLAN. REWARDS WOULD NOT BE CASH AWARDS, BUT RATHER WOULD CONSIST OF CHAIRS, TRAINING, SOFTWARE, OR OTHER ITEMS THAT WOULD ENHANCE THE EMPLOYEE’S WORKPLACE.
PLANT INDUSTRY (BA 101 – 4540) AGRI – 10
THE EXECUTIVE BUDGET RECOMMENDED TRANSFERRING ALL PEST CONTROL OPERATOR FEES FROM THE PLANT INDUSTRY ACCOUNT, WHICH REVERTS UNSPENT FEES TO THE GENERAL FUND, TO THE AGRICULTURE REGISTRATION/ENFORCEMENT ACCOUNT, WHICH BALANCES FORWARD ALL UNSPENT REVENUE. THE EXECUTIVE BUDGET ALSO RECOMMENDED TRANSFERRING THREE OF THE FIVE PEST CONTROL OPERATOR POSITIONS CURRENTLY IN THE PLANT INDUSTRY ACCOUNT TO THE AGRICULTURE REGISTRATION/ENFORCEMENT ACCOUNT. THE SUBCOMMITTEE DID NOT APPROVE THESE RECOMMENDATIONS BECAUSE THEY ARE INCONSISTENT WITH THE LEGISLATURE’S HISTORICAL STANCE THAT WITHIN ACCOUNTS CONTAINING GENERAL FUNDS, FEE REVENUES SHOULD BE UTILIZED FIRST, AND ALL REMAINING GENERAL FUNDS SHOULD BE UTILIZED LAST WITH FUNDS REMAINING UNSPENT AT THE END OF THE FISCAL YEAR BEING REVERTED TO THE STATE GENERAL FUND. IN ADDITION, INSTEAD OF ALLOWING THE DEPARTMENT TO TRANSFER EXCESS PEST CONTROL OPERATOR FEES TOTALING $103,819 DURING THE BIENNIUM TO A NON-GENERAL FUND ACCOUNT, THE SUBCOMMITTEE VOTED TO REDUCE THE GENERAL FUND REQUIREMENT IN THE PLANT INDUSTRY ACCOUNT BY THIS AMOUNT.
AGRICULTURE REGISTRATION/ENFORCEMENT (BA 101 – 4545) AGRI – 23
AS MENTIONED IN THE RECOMMENDATIONS FOR THE PLANT INDUSTRY ACCOUNT, THE SUBCOMMITTEE DID NOT APPROVE THE TRANSFER OF TWO PEST CONTROL OPERATOR POSITIONS, AND EXCESS PEST CONTROL OPERATOR FEES, FROM THE PLANT INDUSTRY ACCOUNT TO THE AGRICULTURE REGISTRATION/ENFORCEMENT ACCOUNT. THE SUBCOMMITTEE APPROVED $226,363 DURING THE BIENNIUM FOR THE PURCHASE OF REPLACEMENT ANALYTICAL EQUIPMENT, FUNDED WITH RESERVE REDUCTIONS.
VETERINARY MEDICAL SERVICES (BA 101 – 4550) AGRI – 33
THE SUBCOMMITTEE APPROVED GENERAL FUNDS TOTALING $70,782 IN EACH YEAR OF THE BIENNIUM TO CONTINUE FUNDING FOR THE VIRGINIA RANGE WILD HORSE PROGRAM. DURING THE TWO PREVIOUS FISCAL YEARS, THE DEPARTMENT OF AGRICULTURE RECEIVED FUNDING IN THE AMOUNT OF $90,136 AND $72,919, RESPECTIVELY, FROM THE EMERGENCY FUND AS ADMINISTERED BY THE BOARD OF EXAMINERS. THE SUBCOMMITTEE ALSO APPROVED THE UTILIZATION OF $33,244 IN EACH YEAR OF THE BIENNIUM TO CREATE A NEW, FULL-TIME POSITION TO MANAGE THE VIRGINIA RANGE WILD HORSE PROGRAM. FUNDING FOR THE NEW POSITION WOULD COME FROM A REDUCTION TO GENERAL FUNDS FOR SEASONAL POSITIONS. THE SUBCOMMITTEE BASED ITS DECISION ON THE FACT THAT A FULL-TIME POSITION WOULD BE ABLE TO MORE EFFICIENTLY OPERATE THE PROGRAM VERSUS SEASONAL EMPLOYEES.
THE SUBCOMMITTEE RECOMMENDS RESTORING THE VETERINARIAN DIAGNOSTICIAN POSITION TO FULL-TIME FOR BOTH YEARS OF THE BIENNIUM, AND PROVIDING ADDITIONAL FUNDING FOR THE POSITION’S INCUMBENT TO COMPLETE WORK ON THE DOG BITE PROGRAM, INCLUDING THE PRODUCTION AND DISTRIBUTION OF A VIDEO. THE SUBCOMMITTEE RECOMMENDS FUNDING THESE ACTIONS THROUGH A REDUCTION TO VACANCY SAVINGS TOTALING $81,936 FOR THE BIENNIUM, AND A GENERAL FUND APPROPRIATION TOTALING $39,697 ONLY IN FY 2003-04, RESULTING IN GENERAL FUND COSTS TOTALING $121,633 FOR THE BIENNIUM.
LIVESTOCK INSPECTION (BA 101 – 4546) AGRI – 40
THE SUBCOMMITTEE VOTED TO FUND 50 PERCENT OF THE LIVESTOCK INSPECTION ADMINISTRATOR POSITION WITH GENERAL FUNDS TOTALING $74,030 DURING THE BIENNIUM AS RECOMMENDED IN THE EXECUTIVE BUDGET. HOWEVER, INSTEAD OF INTRODUCING GENERAL FUNDS INTO A NON‑GENERAL FUND ACCOUNT AS RECOMMENDED BY THE GOVERNOR, THE SUBCOMMITTEE RECOMMENDS TRANSFERRING THE POSITION TO THE GENERAL FUND‑SUPPORTED PLANT INDUSTRY ACCOUNT, WHERE IT WOULD BE FUNDED WITH 50 PERCENT GENERAL FUNDS AND 50 PERCENT FROM A TRANSFER OF FUNDS FROM THE LIVESTOCK INSPECTION ACCOUNT. THE SUBCOMMITTEE REASONED THAT THIS POSITION SPENDS 50 PERCENT OF ITS TIME ON MATTERS RELATING TO THE AGRICULTURAL ENFORCEMENT UNIT, WHICH IS FUNDED PRIMARILY WITH GENERAL FUNDS IN THE PLANT INDUSTRY ACCOUNT.
PREDATORY ANIMAL AND RODENT CONTROL (BA 101 – 4600) AGRI – 57
DURING FY 2000-01, A STATE POSITION WAS ELIMINATED BY THE AGENCY AND CONVERTED TO A FEDERAL POSITION BECAUSE THE AGENCY BELIEVED ADVERTISING AND HIRING THE POSITION THROUGH THE FEDERAL PROGRAM WOULD PROVIDE A GREATER FIELD OF APPLICANTS WITH THE NEEDED QUALIFICATIONS.
THE COSTS FOR THE FEDERAL POSITION ARE CURRENTLY FUNDED THROUGH A CONTRACT WITH THE DEPARTMENT OF AGRICULTURE AND FEDERAL WILDLIFE SERVICES PROGRAM. DURING THE CURRENT BIENNIUM, THIS POSITION DID NOT RECEIVE A COST OF LIVING ALLOWANCE, ALTHOUGH MOST OTHER STATE EMPLOYEES RECEIVED COLAS ON JULY 1, 2001 AND 2002. THE EXECUTIVE BUDGET RECOMMENDS GENERAL FUNDS TOTALING $4,233 IN EACH YEAR OF THE BIENNIUM TO PROVIDE A COST OF LIVING INCREASE FOR THIS POSITION. THE ASSEMBLY MEMBERS OF THE SUBCOMMITTEE DID NOT APPROVE THE GOVERNOR’S RECOMMENDATION TO PROVIDE ADDITIONAL GENERAL FUNDS TO FUND THE COLA, WHEREAS THE SENATE MEMBERS OF THE SUBCOMMITTEE DID APPROVE THE GOVERNOR’S RECOMMENDATION.
Mrs. Chowning noted that the Assembly considered it inappropriate for the state to fund a cost of living allowance for a federally funded position. Although the sum was not significant at $4,233, she said the Assembly could not accept the Senate rationale to fund the cost of living allowance and therefore decided differently from the Senate.
THE SUBCOMMITTEE APPROVED GENERAL FUNDS TOTALING $14,157 DURING THE BIENNIUM FOR THE ADDITION OF A NEW QUARTER-TIME FTE POSITION TO PROVIDE CLERICAL SUPPORT FOR THE 12 PREDATORY ANIMAL AND RODENT CONTROL FIELD STAFF LOCATED IN RENO. PREVIOUSLY, A FEDERALLY FUNDED POSITION PROVIDED CLERICAL SUPPORT TO THE STATE STAFF; HOWEVER, THIS FEDERAL POSITION IS NO LONGER ABLE TO PROVIDE SUPPORT TO STATE EMPLOYEES, NECESSITATING THE NEED FOR THE .25 FTE CLERICAL POSITION.
THE SUBCOMMITTEE VOTED TO CLOSE THE FOLLOWING BUDGET ACCOUNTS WITH ONLY MINOR AND TECHNICAL ADJUSTMENTS:
Mrs. Chowning thanked Mr. Ferguson, Vice Chairwoman McClain, and Assemblymen Parks, Beers, and Griffin for their dedication and work.
ASSEMBLYMAN GRIFFIN MOVED TO APPROVE THE CLOSING BUDGET REPORT ON GENERAL GOVERNMENT, DEPARTMENT OF AGRICULTURE AND DIVISION OF MINERALS.
MS. McCLAIN SECONDED THE MOTION.
THE MOTION CARRIED. (Assemblymen Beers and Hettrick and Assemblywoman Giunchigliani were not present for the vote.)
BUDGET CLOSED.
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Vonne Chowning, Assembly Chairwoman, Joint Subcommittee on General Government, continued her presentation with the following closing report of the Public Utilities Commission:
VOLUME I – COMMERCE & INDUSTRY – PUBLIC UTILITIES COMMISSION (224‑3920) PUC-1
THE SUBCOMMITTEE CLOSED THE BUDGET ON APRIL 16, 2003, WITH THE FOLLOWING RECOMMENDATIONS:
THE SUBCOMMITTEE CONCURRED WITH THE GOVERNOR’S RECOMMENDATION TO ADD A NEW UNCLASSIFIED HEARINGS OFFICER POSITION. THE APPROVAL IS CONTINGENT UPON THE 2003 LEGISLATURE REPEALING SECTION 28 OF ASSEMBLY BILL 661 (2001) THAT EXPANDS THE PUC FROM THREE TO FIVE COMMISSIONERS EFFECTIVE OCTOBER 1, 2003. SENATE BILL 102 AS AMENDED INCLUDES A PROVISION TO REPEAL SECTION 28 OF A.B. 661 (2001). SENATE BILL 102 IS CURRENTLY IN ASSEMBLY COMMERCE AND LABOR AND WAS LAST HEARD ON MAY 2, 2001, WITH NO ACTION TAKEN. THE HEARINGS OFFICER POSITION WILL ASSIST THE COMMISSION WITH CONDUCTING ADMINISTRATIVE HEARINGS, PRE-HEARING CONFERENCES, HEARINGS, RULEMAKING WORKSHOPS AND CONSUMER COMPLAINT HEARINGS IN THOSE FILINGS THAT DO NOT HAVE LARGE RATE OR POLICY IMPLICATIONS. THE EXISTING THREE COMMISSIONERS WILL CONTINUE TO HEAR DEFERRED ENERGY CASES, MAJOR RATE CASES AND OTHER FILINGS THAT HAVE SIGNIFICANT IMPACTS ON THE UTILITY AND TELECOMMUNICATION CUSTOMERS IN NEVADA. THE SUBCOMMITTEE RECOMMENDS A LETTER OF INTENT BE ISSUED DIRECTING THE PUC TO SUBMIT THE APPROPRIATE WORK PROGRAM CHANGES TO THE IFC INCREASING THE PUC FROM THREE TO FIVE MEMBERS SHOULD THE 2003 LEGISLATURE NOT REPEAL SECTION 28 OF A.B. 661 (2001). THE SUBCOMMITTEE ALSO RECOMMENDS INCLUDING IN THE LETTER OF INTENT THAT SHOULD THE PUC EXPAND TO FIVE MEMBERS THAT THE WORK PROGRAM CHANGES INCLUDE ELIMINATING THE FUNDING FOR THE HEARINGS OFFICER POSITION. SINCE THE HEARINGS OFFICER POSITION IS UNCLASSIFIED, THE SUBCOMMITTEE RECOMMENDS THE POSITION BE INCLUDED IN THE UNCLASSIFIED PAY BILL, AND THE RECOMMENDED SALARY OF $89,092 BE FORWARDED TO THE UNCLASSIFIED SALARY COMMITTEE OF SENATE FINANCE AND ASSEMBLY WAYS AND MEANS FOR CONSIDERATION. INCLUDING THE HEARINGS OFFICER POSITION IN THE UNCLASSIFIED PAY BILL WILL ALLOW THE PUC THE OPPORTUNITY TO RETURN TO IFC TO RESTORE FUNDING FOR THE POSITION IF THE AGENCY EXPANDS TO FIVE MEMBERS AND THE AGENCY IS ABLE TO JUSTIFY THE NEED FOR THE POSITION AT A LATER DATE.
IN RESPONSE TO CONCERNS RAISED BY STAFF DURING THE BUDGET REVIEW PROCESS REGARDING THE AGENCY’S PROJECTED RESERVE LEVEL, THE SUBCOMMITTEE APPROVED THE PUC’S AND BUDGET OFFICE AMENDMENT TO REDUCE THE MILL ASSESSMENT FROM 2.50 MILLS AS RECOMMENDED IN THE EXECUTIVE BUDGET TO 2.25 MILLS. THE REDUCTION IN MILL ASSESSMENT REDUCES REVENUES BY $634,592 EACH YEAR, WITH A CORRESPONDING REDUCTION IN PROJECTED RESERVES AT THE END OF FY 2004-05 FROM $3.8 MILLION TO $2.6 MILLION. THE AGENCY TESTIFIED DURING BUDGET HEARINGS THAT THE OPTIMUM RESERVE LEVEL IS BETWEEN $1.8 MILLION AND $2.4 MILLION. THE COMMITTEE SHOULD NOTE THE PUC HAS STATUTORY AUTHORITY (NRS 704.033) TO ADJUST ITS MILL ASSESSMENT ANNUALLY BUT CANNOT EXCEED 3.50 MILLS. SHOULD THE PUC INCREASE TO FIVE MEMBERS EFFECTIVE OCTOBER 1, 2003, THE AGENCY HAS SUFFICIENT RESERVES IN FY 2003‑04 TO FUND THE INCREASED COSTS ASSOCIATED WITH THE EXPANSION, AND CAN ADJUST ITS MILL ASSESSMENT IF NEEDED IN FY 2004‑05. THE PUC CAN SUBMIT A WORK PROGRAM FOR REVENUE ADJUSTMENTS ASSOCIATED WITH CHANGES IN THE MILL ASSESSMENT.
THE SUBCOMMITTEE RECOMMENDS APPROVING AN AMENDMENT REQUESTED BY THE PUC AND THE BUDGET OFFICE THAT CHANGES THE TITLE OF AN UNCLASSIFIED SUPERVISING ADMINISTRATIVE ATTORNEY TO THAT OF AN ADMINISTRATIVE ATTORNEY. THE CORRESPONDING SALARY IS RECOMMENDED TO BE REDUCED FROM $60,870 PER YEAR TO $54,157. DURING THE MARCH 17, 2003, BUDGET HEARING BEFORE SENATE FINANCE, THE AGENCY WAS DIRECTED TO SUBMIT A SEPARATE WRITTEN REQUEST FOR UNCLASSIFIED SALARY ADJUSTMENTS FOR THE DIRECTOR OF REGULATORY OPERATIONS AND THE GENERAL COUNSEL POSITIONS. THE PUC RECOMMENDS INCREASING THE SALARY FOR THE DIRECTOR OF REGULATORY OPERATIONS FROM $91,704 TO $93,332 PER YEAR, AND INCREASING THE GENERAL COUNSEL’S ANNUAL SALARY FROM $93,344 TO $93,547. THE SALARY ADJUSTMENTS ARE RECOMMENDED TO ADDRESS SALARY COMPACTION ISSUES FOR THE RESPECTIVE POSITIONS. THE SUBCOMMITTEE RECOMMENDS FORWARDING THE UNCLASSIFIED SALARY ADJUSTMENTS AND TITLE CHANGES FOR THE THREE POSITIONS TO THE UNCLASSIFIED SALARY SUBCOMMITTEE OF SENATE FINANCE AND ASSEMBLY WAYS AND MEANS.
THE SUBCOMMITTEE CLOSED THE REMAINDER OF THE PUC’S BUDGET AS RECOMMENDED BY THE GOVERNOR WITH TECHNICAL ADJUSTMENTS PROPOSED BY STAFF.
Mrs. Chowning thanked Mr. Chapman for his help and the members of the Subcommittee, Assemblywoman McClain, Assemblyman Parks, Assemblyman Griffin, and Assemblyman Beers.
ASSEMBLYWOMAN McCLAIN MOVED TO APPROVE THE CLOSING BUDGET REPORT ON GENERAL GOVERNMENT, PUBLIC UTILITIES COMMISSION.
ASSEMBLYWOMAN GIBBONS SECONDED THE MOTION.
THE MOTION CARRIED. (Speaker Perkins and Assemblymen Beers and Griffin were not present for the vote.)
BUDGET CLOSED.
********
Assemblywoman Giunchigliani said there had been discussions whether or not to fold the Transportation Services Authority (TSA) back into the Public Utilities Commission (PUC) and noted there was a bill in Commerce that dealt with the size of the PUC. Assemblyman Goldwater corroborated Ms. Giunchigliani’s statement. Ms. Giunchigliani said regardless of closing the PUC budget she was reminding the Committee that potential cost savings and efficiencies were still under review.
Vonne Chowning, Assembly Chairwoman, Joint Subcommittee on General Government, continued with her presentation of the closing report of the Department of Employment, Training and Rehabilitation:
VOLUME II – DETR
THE JOINT SUBCOMMITTEE ON GENERAL GOVERNMENT HAS COMPLETED ITS REVIEW OF THE BUDGETS FOR THE DEPARTMENT OF EMPLOYMENT, TRAINING AND REHABILITATION (DETR) AND HAS MADE THE FOLLOWING RECOMMENDATIONS FOR THE DEPARTMENT’S 2003-05 BIENNIAL BUDGET. THE SUBCOMMITTEE’S CLOSING ACTIONS RESULTED IN AN OVERALL GENERAL FUND SAVINGS OF $32,967 IN FY 2003-04 AND $264,398 IN FY 2004-05 WHEN COMPARED TO THE GOVERNOR’S BUDGET.
DETR ADMINISTRATIVE SERVICES (BA 101- 3272) DETR-1
THE SUBCOMMITTEE APPROVED FUNDING FOR A MAINTENANCE REPAIR WORKER III POSITION TO ADDRESS INCREASING FACILITY MAINTENANCE NEEDS AT THE STATE’S ADMINISTRATION BUILDING. THE SUBCOMMITTEE ALSO APPROVED THE RECOMMENDATION TO CHANGE THE EMPLOYMENT STATUS OF THE DEPARTMENT’S TWO ASSISTANT DIRECTOR’S FROM CLASSIFIED TO UNCLASSIFIED PROVIDING THE DIRECTOR WITH THE FLEXIBILITY TO RECRUIT AND SELECT QUALIFIED CANDIDATES FOR THE ASSISTANT DIRECTOR POSITIONS. APPROVAL OF FUNDING FOR THESE POSITIONS WOULD BE CONTINGENT UPON ACTIONS TAKEN BY THE LEGISLATURE ON UNCLASSIFIED PAY BILL.
IN CLOSING THE BUDGET OF THE INFORMATION DEVELOPMENT AND PROCESSING DIVISION, THE SUBCOMMITTEE APPROVED FUNDING OF $406,106 IN FY 2003‑04 AND $512,653 IN FY 2004‑05 FOR EIGHT NEW PROGRAMMERS AND DATA NETWORK SUPPORT PERSONNEL AND THE UPGRADE OF A HALF-TIME PROGRAMMER TO A FULL‑TIME PROGRAMMER POSITION. THE SUBCOMMITTEE BELIEVED THE ADDITIONAL RESOURCES ARE NECESSARY TO SUPPORT OF THE DEPARTMENT’S EMERGING TECHNOLOGIES, INTERNET AND WEB APPLICATION DEVELOPMENT ACTIVITIES AND TO SUPPORT PROJECTED INCREASE IN NETWORK SERVICES OVER THE BIENNIUM.
THE SUBCOMMITTEE ALSO APPROVED RECOMMENDED FUNDING OF $69,845 IN EACH YEAR OF THE BIENNIUM FOR ADDITIONAL TRAINING AND $31,252 IN EACH YEAR OF THE BIENNIUM FOR STANDBY PAY TO PROVIDE 24 HOUR 7-DAY A WEEK TECHNICAL SUPPORT COVERAGE FOR THE DEPARTMENT’S CRITICAL INFORMATION TECHNOLOGY AND COMPUTING SERVICES.
RESEARCH AND ANALYSIS (BA 101- 3273) DETR-12
NO NEW MAJOR PROGRAMS OR ENHANCEMENTS WERE RECOMMENDED BY THE GOVERNOR FOR THE 2003-05 BIENNIUM FOR THIS BUDGET. THE SUBCOMMITTEE APPROVED FUNDING FOR THE RESEARCH AND ANALYSIS BUDGET AS RECOMMENDED BY THE GOVERNOR WITH TECHNICAL ADJUSTMENTS MADE BY STAFF.
EMPLOYMENT SECURITY DIVISION (BA 205 - 4770) DETR-18
FOR THE EMPLOYMENT SECURITY DIVISION, THE SUBCOMMITTEE CONCURRED WITH THE GOVERNOR’S RECOMMENDATION TO APPROVE $1.2 MILLION IN EACH YEAR OF THE BIENNIUM TO ALLOW THE DEPARTMENT TO HIRE UP TO 30 INTERMITTENT POSITIONS TO ADDRESS SHORT-TERM INCREASES IN WORKLOADS THAT ARE BEYOND THE DIVISION’S ABILITY TO ADDRESS WITH EXISTING PERMANENT FULL-TIME STAFF. THE SUBCOMMITTEE ALSO APPROVED APPROXIMATELY $1.8 MILLION OVER THE BIENNIUM FROM THE EMPLOYMENT SECURITY DIVISION SPECIAL FUND FOR REPLACEMENT EQUIPMENT, COMPUTERS AND SOFTWARE.
CAREER ENHANCEMENT PROGRAM (BA 205 - 4767) DETR-27
THE CAREER ENHANCEMENT PROGRAM (CEP) BUDGET WAS APPROVED AS RECOMMENDED BY THE GOVERNOR INCLUDING $2.3 MILLION, OVER THE BIENNIUM, TO FUND ANTICIPATED CASELOAD GROWTH IN ADDITIONAL TRAINING SERVICES FOR NEVADA’S UNEMPLOYED WORKERS. CONTINGENT UPON PASSAGE OF SENATE BILL 423, THE SUBCOMMITTEE ALSO APPROVED FUNDING IN THE AMOUNT OF $1.0 MILLION IN EACH YEAR OF THE BIENNIUM TO EXPAND JOB TRAINING SERVICES TO NEVADA’S INCUMBENT WORKERS. BY STATUTE, THE CEP PROGRAM CAN ONLY PROVIDE JOB TRAINING SERVICES TO UNEMPLOYED NEVADANS. SENATE BILL 423 EXPANDS THE SCOPE OF THE CEP TO INCLUDE WORKERS WHO ARE NOT UNEMPLOYED (INCUMBENT WORKERS) BUT ARE LOOKING FOR CAREER ENHANCEMENT TRAINING OR TRAINING TO ASSIST THEM IN ADVANCING TO OTHER CAREER OPPORTUNITIES. S.B. 423 WAS PASSED OUT OF THE SENATE COMMITTEE ON COMMERCE AND LABOR ON APRIL 14TH AND IS CURRENTLY BEING CONSIDERED BY THE ASSEMBLY COMMITTEE ON COMMERCE AND LABOR.
ESD SPECIAL FUND (BA 235 - 4771) DETR-33
WITH THE DEPARTMENT FACING FEDERAL FUNDING REDUCTIONS IN STATE FY 2004 AND AN ADDITIONAL PROPOSED FEDERAL FUND REDUCTION OF $2.6 MILLION IN STATE FY 2005, THE SUBCOMMITTEE APPROVED THE RECOMMENDATION FOR THE DEPARTMENT TO FUND A PORTION OF OPERATING AND EQUIPMENT EXPENSES FOR THE EMPLOYMENT SECURITY DIVISION AND INFORMATION DEVELOPMENT AND PROCESSING BUDGETS WITH REVENUES FORM THE ESD SPECIAL FUND (PENALTY AND INTEREST (P&I). THE SUBCOMMITTEE’S APPROVAL FOR THE USE OF THIS FUNDING IS PROVIDED AS CONTINGENCY FUNDING WITH ASSURANCE FROM THE DEPARTMENT THAT IF THE FEDERAL FUNDING SHORTFALL DOES NOT MATERIALIZE, OR IS NOT AS SIGNIFICANT AS ANTICIPATED, APPROVED ESD SPECIAL FUNDS WOULD REMAIN IN RESERVE UNTIL QUALIFYING FEDERAL FUNDS ARE FIRST UTILIZED. WITH THIS UNDERSTANDING, THE SUBCOMMITTEE APPROVED THE USE OF P&I FUNDS FOR THE FOLLOWING ESD EXPENDITURES: $592,784 OVER THE BIENNIUM WAS APPROVED TO FUND ESD’S SHARE OF THE 8.5 PROGRAMMER AND NETWORK POSITIONS RECOMMENDED IN DETR’S INFORMATION DEVELOPMENT AND PROCESSING BUREAU (ID&P) AND TO PURCHASE ID&P REPLACEMENT COMPUTING EQUIPMENT AND SOFTWARE; AND $1.5 MILLION WAS ALSO APPROVED FOR THE PURCHASE OF COMPUTING EQUIPMENT AND SOFTWARE FOR THE EMPLOYMENT SECURITY DIVISION.
THE SUBCOMMITTEE CONCURRED WITH THE GOVERNOR’S RECOMMENDATION TO PROVIDE APPROXIMATELY $1.4 MILLION IN EACH YEAR OF THE BIENNIUM IN P&I FUNDING FOR THE REWRITE OF THE DEPARTMENT’S UNEMPLOYMENT INSURANCE (UI) TAX SYSTEM. THE SUBCOMMITTEE ALSO APPROVED THE USE OF $15 MILLION IN FEDERAL REED ACT FUNDS FOR THE DESIGN AND CONSTRUCTION OF THE DEPARTMENT’S NEW ADMINISTRATION BUILDING IN LAS VEGAS AS APPROVED BY THE PUBLIC WORKS BOARD IN CIP 01-E1.
DETR’S REHABILITATION ADMINISTRATION (BA 101- 3268) DETR-38
THE SUBCOMMITTEE APPROVED CLOSING DETR’S REHABILITATION ADMINISTRATION BUDGET AS RECOMMENDED BY THE GOVERNOR WITH TECHNICAL ADJUSTMENTS. THE SUBCOMMITTEE ALSO APPROVED THE TRANSFER OF AN ADMINISTRATIVE ASSISTANT IV POSITION TO THE BUREAU OF VOCATIONAL REHABILITATION BUDGET ACCOUNT (BA 101-3265) TO SUPPORT THE BUREAU’S NEWLY ESTABLISHED QUALITY ASSURANCE UNIT.
BUREAU OF DISABILITY ADJUDICATION (BA 101- 3269) DETR-43
IN CLOSING THE BUDGET FOR THE BUREAU OF DISABILITY ADJUDICATION THE SUBCOMMITTEE DID NOT APPROVE THE RECOMMENDATION FOR 20 NEW POSITIONS AND ASSOCIATED COSTS. THE DEPARTMENT INDICATED THAT WHILE FEDERAL AUTHORITY TO HIRE 20 NEW POSITIONS WAS GRANTED BY THE SOCIAL SECURITY ADMINISTRATION FUNDING WAS NOT PROVIDED. THE SUBCOMMITTEE DIRECTED THE DEPARTMENT TO RESUBMIT ITS REQUEST FOR THE 20 POSITIONS TO THE INTERIM FINANCE COMMITTEE WHEN FEDERAL SSA FUNDING IS ALLOCATED TO THE DEPARTMENT.
THE SUBCOMMITTEE DID APPROVE THE RECOMMENDATION TO CONTINUE THE BUREAU’S PAPERLESS PROCESS PILOT PROGRAM AND APPROVED FEDERAL SSA FUNDING IN THE AMOUNT OF $40,000 IN EACH YEAR OF THE BIENNIUM FOR UPGRADES TO THE SYSTEM’S EQUIPMENT AND SOFTWARE.
BUREAU OF VOCATIONAL REHABILITATION (BA 101- 3265) DETR-49
IN CONSIDERING ADDITIONAL FUNDING FOR THE BUREAU OF VOCATIONAL REHABILITATION, THE SUBCOMMITTEE EXPRESSED CONCERNS OVER THE BUREAUS PAST INABILITY TO FULLY UTILIZE FEDERAL FUNDS AND WHETHER THE BUREAU WOULD BE ABLE TO FULLY UTILIZE ADDITIONAL FEDERAL FUNDING WHICH WOULD REQUIRE THE STATE TO COMMIT MATCHING GENERAL FUNDS IN THE AMOUNT OF $830,230 OVER THE BIENNIUM. BASED ON THESE CONCERNS, THE SUBCOMMITTEE REDUCED THE GENERAL FUNDS RECOMMENDED IN DECISION MODULES E-450, E-452 AND E-453 FROM $830,230 TO $535,971 OVER THE BIENNIUM. WHEN COMPARED TO CURRENT AUTHORIZED EXPENDITURE LEVELS FOR CLIENT SERVICES OF APPROXIMATELY $5.3 MILLION, THE OVERALL FUNDING FOR GENERAL FUNDS AND FEDERAL FUNDS APPROVED BY THE SUBCOMMITTEE WOULD ALLOW THE BUREAU TO INCREASE EXPENDITURES FOR CLIENT SERVICES BY APPROXIMATELY 4 PERCENT IN FY 2004 ($197,077) AND AS MUCH AS 19 PERCENT IN FY 2005 ($1,002,718).
THE SUBCOMMITTEE ALSO APPROVED THE RECOMMENDATION TO CHANGE THE EMPLOYMENT CLASSIFICATION OF THE BUREAU’S CHIEF FROM UNCLASSIFIED TO CLASSIFIED; AND THE TRANSFER OF AN ADMINISTRATIVE ASSISTANT IV POSITION FROM THE REHABILITATION DIVISION’S ADMINISTRATION SERVICES BUDGET ACCOUNT TO THE BUREAU OF VOCATIONAL REHABILITATION’S QUALITY ASSURANCE UNIT.
OFFICE OF DISABILITY EMPLOYMENT POLICY (BA 101- 3156) DETR-58
THE SUBCOMMITTEE APPROVED THE GOVERNOR’S RECOMMENDATION TO TRANSFER THE FUNCTIONS AND EXISTING STAFF OF THE GOVERNOR’S COMMITTEE ON EMPLOYMENT OF PEOPLE WITH DISABILITIES FROM THE DEPARTMENT OF BUSINESS & INDUSTRY TO DETR. THE AGENCY’S TITLE WOULD BE CHANGED TO THE OFFICE OF DISABILITY EMPLOYMENT POLICY. THIS CHANGE WILL ALLOW THE AGENCY ACCESS TO FEDERAL FUNDING THROUGH THE U.S. DEPARTMENT OF LABOR, U.S. DEPARTMENT OF EDUCATION AND THE SOCIAL SECURITY ADMINISTRATION ALLOWING FOR AN OVERALL REDUCTION OF GENERAL FUND SUPPORT IN THIS BUDGET ACCOUNT, AS RECOMMENDED BY THE GOVERNOR, OF $223,161 IN EACH YEAR OF THE BIENNIUM.
CLIENT ASSISTANCE PROGRAM (BA 101- 3258) DETR-63
NO NEW PROGRAMS OR ENHANCEMENTS WERE RECOMMENDED BY THE GOVERNOR FOR THIS BUDGET. THE SUBCOMMITTEE APPROVED THE CLIENT ASSISTANCE PROGRAM BUDGET AS RECOMMENDED BY THE GOVERNOR.
BUREAU OF SERVICES TO THE BLIND AND VISUALLY IMPAIRED (BA 101- 3254) DETR-67
THE SUBCOMMITTEE APPROVED THE BUDGET FOR THE BUREAU OF SERVICES TO THE BLIND AND VISUALLY IMPAIRED (BSBVI) AS RECOMMENDED BY THE GOVERNOR WITH MINOR TECHNICAL ADJUSTMENTS. THE SUBCOMMITTEE’S APPROVAL OF FUNDING FROM GENERAL FUNDS AND FEDERAL FUNDS FOR THE BUREAU OF SERVICES TO THE BLIND ALLOWS THE DEPARTMENT TO INCREASE EXPENDITURES FOR CASE SERVICES BY APPROXIMATELY 4.6 PERCENT IN FY 2004 ($39,471) AND 19.7 PERCENT IN FY 2005 ($168,720) OVER CURRENT AUTHORIZED EXPENDITURE LEVELS OF $856,277. THE SUBCOMMITTEE ALSO APPROVED THE ELIMINATION OF THE BUREAU’S EARLY INTERVENTION PILOT PROGRAM DUE TO THE LACK OF SUFFICIENT FUNDING FROM THE BLIND GIFT FUND TO SUPPORT THE PROGRAM. ELIMINATION OF THE EARLY INTERVENTION PROGRAM INCLUDES THE ELIMINATION OF A VACANT REHABILITATION COORDINATOR II POSITION.
BLIND BUSINESS ENTERPRISE PROGRAM, (BA 101- 3253) DETR-75
THE SUBCOMMITTEE APPROVED THE FUNDING OF $744,525 IN FY 2003-04 AND $732,550 IN FY 2004-05 AS RECOMMENDED BY THE GOVERNOR FOR THE EXPANSION OF THE DEPARTMENT’S BLIND BUSINESS ENTERPRISE PROGRAM (BBEP), BUT DID NOT APPROVE THE ASSOCIATED EXPENDITURE AUTHORITY. THE SUBCOMMITTEE RECEIVED TESTIMONY FROM THE BLIND VENDORS THAT INDICATED THE DEPARTMENT’S BUDGET SUBMITTAL AND PROGRAM EXPANSION PLAN DID NOT ADEQUATELY TAKE INTO CONSIDERATION INPUT FROM THE NEVADA COMMITTEE OF BLIND VENDORS (NCBV) AS REQUIRED BY THE RANDOLPH-SHEPPARD ACT. THE SUBCOMMITTEE DIRECTED THE DEPARTMENT TO RE-EVALUATE THE PROPOSED PROGRAM EXPANSION PLAN AND TO SEEK INPUT FROM THE NCBV AS WELL AS INPUT FROM THE BLIND VENDORS THEMSELVES ON THE FEASIBILITY OF THE PLAN. THE SUBCOMMITTEE DIRECTED THE DEPARTMENT TO SUBMIT ITS REVISED BBEP EXPANSION PLAN TO THE INTERIM FINANCE COMMITTEE FOR APPROVAL AND AUTHORIZATION TO EXPEND FUNDS.
IN CLOSING THE BUDGET FOR THE BBEP THE SUBCOMMITTEE RECOMMENDED A LETTER OF INTENT ENCOURAGING THE BUREAU TO BE MORE PROACTIVE IN ADHERING TO DIRECTIVES SET FORTH IN NAC 426.080 TO 426.500 (ADMINISTRATIVE CODE GOVERNING THE ADMINISTRATION OF THE BBEP AND ESTABLISHMENT OF THE NCBV) AND TO SEEK INPUT FROM THE BLIND VENDORS AND THE NCBV IN DEVELOPING RECOMMENDATIONS FOR THE BBEP 2005‑07 BIENNIAL BUDGET. THE LETTER OF INTENT ALSO ENCOURAGES THE BUREAU TO SEEK INPUT FROM THE NCBV ON ALL MAJOR PROPOSED BBEP PROGRAM MODIFICATIONS AND ENHANCEMENTS DURING THE 2003-05 INTERIM.
EQUAL RIGHTS COMMISSION (BA 101- 2580) DETR-80
THE SUBCOMMITTEE APPROVED CLOSING THE BUDGET FOR THE EQUAL RIGHTS COMMISSION AS RECOMMENDED BY THE GOVERNOR WITH MINOR TECHNICAL ADJUSTMENTS BY STAFF. THE SUBCOMMITTEE’S RECOMMENDATION INCLUDES FUNDING FOR TWO ADDITIONAL COMPLIANCE INVESTIGATORS TO HELP THE COMMISSION ADDRESS ITS GROWING CASE BACKLOG PROBLEM AND TO HELP THE COMMISSION ACHIEVE ITS GOAL OF REDUCING THE TIME IT TAKES TO PROCESS CLAIMS FROM THE CURRENT TIME OF 365 TO 270 DAYS.
OVERALL, THE SUBCOMMITTEE’S RECOMMENDATIONS PROVIDED THE DEPARTMENT WITH FUNDING AND RESOURCES TO ALLOW THE DEPARTMENT TO INCREASE AND IMPROVE SERVICES FOR NEVADA’S UNEMPLOYED AND DISABLED COMMUNITY. FUNDING WAS APPROVED TO MEET ANTICIPATED CASELOAD INCREASES, PROVIDE NEW POSITIONS TO ENHANCE SERVICES CAPACITY AND CAPABILITIES THROUGH TECHNOLOGY, EXPANSION OF THE DEPARTMENT’S TELEPHONIC CLAIM CENTER, AND THE REDEVELOPMENT AND DESIGN OF CURRENT SERVICE DELIVERY PROCESS TO IMPROVE THE LEVEL OF SERVICE PROVIDED TO THE DEPARTMENT EMPLOYMENT AND REHABILITATION CLIENTS.
I WOULD LIKE TO THANK THE MEMBERS OF THE JOINT SUBCOMMITTEE ON GENERAL GOVERNMENT FOR THEIR DILIGENCE IN FORMULATING THESE RECOMMENDATIONS (CHOWNING, MCCLAIN, BEERS, PARKS, GRIFFIN).
Assemblywoman Chowning particularly thanked Vice Chairwoman McClain for her work with the Blind Business Enterprise Program, and Mr. Rodriguez for his help.
ASSEMBLYMAN GOLDWATER MOVED TO APPROVE THE CLOSING BUDGET REPORT ON GENERAL GOVERNMENT, THE DEPARTMENT OF EMPLOYMENT, TRAINING AND REHABILITATION.
ASSEMBLYMAN GRIFFIN SECONDED THE MOTION.
THE MOTION CARRIED. (Speaker Perkins and Assemblyman Beers were not present for the vote.)
BUDGET CLOSED.
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Mark Stevens, Assembly Fiscal Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, said the following budgets were held over from previous meetings for the Committee’s consideration: The Attorney General Office of Consumer Protection, the Treasurer Higher Education Tuition Administration, and the Secretary of State Help America Vote Act (HAVA) Election Reform.
ELECTED OFFICIALS
ATTORNEY GENERAL OFFICE OF CONSUMER PROTECTION (330-1038)
EBO PAGE: ELECTED-45
Jeffrey Ferguson, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, introduced himself and said the Committee had not yet heard Budget Account 330-1038. In 1997 the Legislature enacted A.B. 366 that authorized the Attorney General to combine the Utility Consumer Advocate’s Office with the Telemarketing and Consumer Fraud Unit and the Criminal Securities Unit. The various offices were combined to form the Bureau of Consumer Protection. Mr. Ferguson stated that Budget Account 330-1038 handled the activities of the Consumer Advocate’s Unit of the Bureau and was funded through a utility mill assessment, and the Telemarketing Consumer Fraud and Criminal Securities Unit functions of the Bureau were funded through the state General Fund appropriations. The Bureau supported 31 FTEs, 17 of which were funded with mill assessments and 14 with the General Fund appropriation.
Mr. Ferguson said there were no major closing issues in the budget. The Committee had held the budget because there were some issues with A.B. 232 and S.B. 255 that dealt with telemarketing and telecommunications. The Office of the Attorney General presented a letter removing all the fiscal notes associated with those bills. Mr. Ferguson asked for questions. There were none so he continued.
Mr. Ferguson said there were some minor issues in the account. The Governor recommended $1,410 for new filing cabinets. He stated by way of information that the mill assessment had a statutory limit of .75 mil, which was the current rate and the budget was built on maintaining a .75 mil. Staff reviewed the account and supported the retention of the .75 mill assessment to maintain the appropriate ending reserve balance. Mr. Ferguson said there were a number of errors and omissions in the agency’s budgets and staff worked with the Budget Office and the Office of the Attorney General to make the corrections as reflected on the closing sheets. The corrections dealt primarily with Building and Grounds (B&G) allowances and reserves. Mr. Ferguson asked for questions.
Assemblywoman Chowning asked if the budget would be affected by the outcome of the bills passing through the Senate and Assembly.
In response Mr. Ferguson said that the letter they received from the Attorney General’s Office had removed all fiscal notes from the budget and indicated that there would be no fiscal impact from either of the bills. Therefore the bills would not impact the budget.
ASSEMBLYWOMAN GIUNCHIGLIANI MOVED TO CLOSE BUDGET ACCOUNT 330-1038 WITH STAFF RECOMMENDATIONS AND WITH A LETTER OF INTENT REGARDING THE OFFICE OF CONSUMER PROTECTION AND WITH TECHNICAL ADJUSTMENTS.
ASSEMBLYWOMAN CHOWNING SECONDED THE MOTION.
THE MOTION CARRIED. (Assemblyman Beers was not present for the vote.)
BUDGET CLOSED.
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ELECTED OFFICIALS
TREASURER HIGHER EDUCATION TUITION ADMINISTRATION (101-1081)
EBO PAGE: ELECTED-92
Brian Burke, Senior Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, introduced Budget Account 101-1081 and said the account had been partially closed on April 23. He noted two closing actions were required to fully close the account. The Committee had previously approved the elimination of two classified positions and had created an unclassified Senior Deputy Treasurer position. The decision currently before the Committee had to do with the General Fund contributions and General Fund payback. Budget Account 101‑1081 had been established and maintained with a loan from the General Fund totaling $4.4 million. Beginning in FY2003-04 the Treasurer requested and the Governor recommended that the account be funded entirely with transfers from the Higher Education Tuition Trust Fund, thereby discontinuing General Fund appropriations in the base budget. The Treasurer’s Office provided a General Fund loan repayment schedule reflecting full repayment of the General Fund loans by the end of FY2013. The schedule included continuing a payback of $25,000 per year in this account and in FY2006 the General Fund loan repayments would be made from the College Savings Plan budget account. The decision before the Committee was whether to continue the $25,000 loan repayments out of Budget Account 101-1081 as recommended by the Governor.
Mr. Burke noted that the Committee had already acted on the funding of marketing and advertising consulting services associated with the adjusted base. He said there were an additional three decision units that provided funding for replacement equipment, and transfers of rent and insurance. The question before the Committee was whether to approve the other closing items, including technical adjustments as recommended by staff, and whether to allow staff to make other necessary assessment adjustments.
Chairman Arberry requested verification that on April 23, 2003, the Committee approved the Treasurer’s amended request eliminating two classified positions and creating a new unclassified Senior Deputy Treasurer position resulting in a savings of approximately $61,000. Mr. Burke verified that the Committee had accomplished that action on April 23.
Mr. Stevens also verified that the Committee had created a Senior Deputy Treasurer position and that Senate Bill 446 was written to place the position into Nevada Revised Statutes. He said the Committee would hear S.B. 446 the upcoming week.
ASSEMBLYWOMAN GIUNCHIGLIANI MOVED TO CLOSE BUDGET ACCOUNT 101-1081 WITH STAFF RECOMMENDATIONS, ELIMINATING THE FUNDING OF MARKETING AND ADVERTISING, AND WITH ADJUSTMENTS TO DECISION UNITS E-710, E-711, AND E-902, WITH TECHNICAL ADJUSTMENTS, TO RETAIN THE UNCLASSIFIED DEPUTY, AND TO ELIMINATE TWO CLASSIFIED POSITIONS.
ASSEMBLYMAN PARKS SECONDED THE MOTION.
THE MOTION CARRIED. (Assemblyman Beers was not present for the vote.)
BUDGET CLOSED.
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ELECTED OFFICIALS
SoS HAVA ELECTION REFORM (101-1051)
EBO PAGE: 0-0
Russell Guindon, Deputy Fiscal Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, introduced himself and said Help America Vote Act (HAVA) Election Reform, Budget Account 101-1051, was new. He said it was created under the Office of the Secretary of State for the receipt and expenditure of federal funds to implement the provisions of the Help America Vote Act of 2002 passed by Congress and signed by the President October 2002. House Joint Resolution 2 was passed by Congress on February 13, 2003, and signed by the President on February 20, 2003, became Public Law 108-7, and appropriated funding of approximately $1.5 billion of the $2.1 billion that was actually authorized in the HAVA.
Mr. Guindon stated that the Help America Vote Act required all federal and state matching monies received under the Act be placed in a specific and separate fund, the purpose of which was to comply with the requirements of HAVA. Senate Bill 417, passed by the current Legislature and signed by the Governor on April 25th, authorized the creation of the Election Reform Fund to receive the $5 million provided under Title I of the Act as required under HAVA. Those funds did not require a state match. The Secretary of State reported that the $5 million in Title I funds was received on April 30, 2003. Mr. Guindon said that based on the appropriation contained in House Joint Resolution 2, the state anticipated receiving approximately $5.7 million during FY2004 for the HAVA Title II funds and those funds required a state match of approximately 5.6 percent.
Mr. Guindon said that the Secretary of State’s Office provided the budget estimates reflected in the proposed budget before the Committee. He noted that S.B. 417 required the Secretary of State to report to the Interim Finance Committee regarding expenditures of Title I funds. Staff recommended that the Committee require the Secretary of State to provide an updated budget when additional information on revenues and expenditures became available.
Mr. Guindon stated that there were two closing issues in Budget Account 101‑1051. Under the provisions of HAVA the state was required to match the anticipated Title II federal funding of $5.7 million. Based on the amount actually appropriated under House Joint Resolution 2, the state would be required to provide a General Fund matching appropriation of $299,820. At the end of the biennium the General Fund dollars would revert, after which the agency could request additional matching funds from the IFC. Mr. Guindon said the Committee needed to consider whether to approve the General Fund appropriation to meet the required matching Title II funds. He also noted that the budget calculations provided by the agency were estimates and the agency would need to approach the Interim Finance Committee to meet the Title II matching funds requirement. Staff recommended the matching funds be provided from the Special Services Fund if sufficient funds were available.
Mr. Guindon said in decision unit E-300 the Governor recommended funding the agency’s request for an Information Systems Specialist position and a Computer Network Technician position to support the implementation of the HAVA provisions. The Office of the Secretary of State indicated that a Program Officer was more suitable than a Computer Network Technician to implement HAVA. Mr. Guindon said that staff reviewed the agency’s proposal and recommended the Information Specialist and Program Officer positions be funded with federal funds. He noted that if federal funds were withdrawn, or upon completion of the project, it was the Office of the Secretary of State’s desire to retain the positions. If retained, the positions would be funded from the General Fund or, if sufficient dollars were available, from the Special Services Fund. Mr. Guindon asked for questions.
Ms. Giunchigliani asked for clarification regarding the source of funding for the two positions. Mr. Guindon said the Secretary of State’s intent was to fund the two positions with Title I federal funds rather than using the General Fund matching funds. Ms. Giunchigliani noted that the positions were to be federally funded with the understanding that they would be eliminated when federal funding ceased. Mr. Guindon said that was correct. He added that it would be the Legislature’s decision whether or not to continue the positions subsequent to the completion of the HAVA project.
Ms. Giunchigliani asked if the Committee could prioritize the uses of HAVA funding. She gave the example of earmarking Title I dollars first to purchase voting equipment for the rural counties, followed by developing the Web site statewide registration system.
Mr. Guindon said that the Secretary of State’s Office could better comment on how the funds would be used noting that his area of responsibility and expertise had to do with developing methods for tracking funds and setting up budgets and budget categories to meet Title I funding guidelines.
Ms. Giunchigliani said the Committee could prepare a Letter of Intent indicating that rural communities should be given high priority to install technologically‑advanced voting equipment, and then to make voting sites accessible for the disabled.
Renee Parker, Chief Deputy Secretary of State, Office of the Secretary of State, introduced herself for the record and said that the Committee could prepare a Letter of Intent indicating its preferences but that there were areas of concern. She noted that HAVA did not require upgrading voting systems although states were allowed to use the funds for that purpose. HAVA required that one direct recording electronic (DRE) machine be located at each polling place, but states could not use Title II funds to upgrade voting systems until they had used Title II funds to meet all of the Title III requirements. HAVA also required that Title II funds be used to address statewide voter registration before upgrading voting systems.
Ms. Giunchigliani asked if the state could use Title I funds to upgrade voting systems. Ms. Parker said that Title I funds could be used for that purpose but there were not sufficient funds in Title I to upgrade all of the voting systems. She noted the concern that the Secretary of State’s Office preferred uniformity in the voting systems.
Ms. Giunchigliani asked if the state was required to eliminate the punch card voting system. Ms. Parker said removing the punch card system was not required but states were required to place one DRE machine in each polling place by January 1 of 2006. She stated that the goal was to eliminate the punch card system and upgrade all polling places to DREs and noted that a single DRE machine in each polling place in tandem with a punch card voting system created compatibility and tabulation complications.
Ms. Giunchigliani noted that the state could have the Web site statewide registration system up and running first and begin equipment changes.
Ms. Parker said there were estimates of $2 million to $3 million to implement the statewide voter registration Web based system, and that estimates to expand either the VOTEC Corporation system in Clark County or the Diebold Election Systems in Washoe County were also $2 million to $3 million. She said the state could use Title II funds and part of Title I funds to upgrade the voting systems. She noted it made more sense to use the Title II funds for voting systems upgrades because that was required in Title III and leave Title I funds for other activities such as position salaries. She also noted the vendors gave better prices for establishing uniform statewide voting machines instead of just replacing the punch card system, and the difference was $4,500 versus $3,500 a machine.
Ms. Giunchigliani asked if the agency was comfortable that they had a budget that would track and that everything flowed correctly.
Mr. Guindon said he believed so. He said they developed a preliminary budget shell based on estimates and establishing manageable expense categories. When the agency developed the budget, Fiscal and the Office of the Secretary of State staff agreed that as the project went forward there would be flexibility to create other categories as needed to better manage and track expenses. He said that as the HAVA activities progressed, LCB Fiscal, Budget Office, and Secretary of State staff would work to ensure that the budget account complied with HAVA expectations. He reiterated that it would be prudent for the Committee to require the Secretary of State’s Office to provide the Budget Office and the LCB fiscal staff with an updated budget. He noted that under S. B. 417 they were required to report to the IFC.
ASSEMBLYWOMAN GIUNCHIGLIANI MOVED TO CLOSE BUDGET ACCOUNT 101-1051 WITH STAFF RECOMMENDATIONS, WITH A $200,000 APPROPRIATION TO MATCH TITLE II FEDERAL FUNDS, TO REQUIRE THE AGENCY TO COME TO THE INTERIM FINANCE COMMITTEE WITH ADDITIONAL FUND ALLOCATION REQUESTS, BUDGET CHANGES, OR EXPENDITURE ADJUSTMENTS, AND WITH THE UNDERSTANDING THAT THE TWO NEW POSITIONS WILL BE FUNDED AS LONG AS FEDERAL FUNDING IS AVAILABLE, AND THAT THE TWO NEW POSITIONS WILL TERMINATE WHEN THE FEDERAL FUNDING CEASES.
ASSEMBLYMAN PARKS SECONDED THE MOTION.
THE MOTION CARRIED. (Assemblymen Beers and Griffin and Assemblywoman Chowning were not present for the vote.)
BUDGET CLOSED.
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Chairman Arberry opened the hearing on proposed amendments to Assembly Bill 29.
Assembly Bill 29 (1st Reprint): Makes various changes concerning administrative assessments and forfeiture of bail. (BDR 14-130)
Mr. Stevens said that Assembly Bill 29 was an administrative assessment bill that had been brought forward from the Assembly Judiciary Committee and provided for two administrative assessments: $10 would fall under the current administrative assessment mechanism where 51 percent of the dollars was distributed to the court system and 49 percent to the Executive Branch. An additional $5 assessment would fund specialty court programs such as the mental health court and drug courts. Mr. Stevens referred to the handout entitled “Proposed amendments to AB 29,” (Exhibit D) as prepared by the court and said the shaded portions were the language that the Committee needed to approve if the Committee chose to process the amendments.
Mr. Stevens said that amendments concerned bail forfeitures and directed the Committee to the highlighted language on pages 2, 3, and 6 of Exhibit D. Mr. Stevens then explained Section 8, page 6, of Exhibit D. He said in its current form A.B. 29 provided that 100 percent of the bail forfeiture assessment fee be disbursed to the fund for the Victims of Crime and then split so that 50 percent went to the fund for the Compensation of Victims of Crime and 50 percent for credit to the specialty court programs. The amendment language changed the percentages so that 90 percent would be distributed to the Victims of Crime account and 10 percent to the specialty courts. Mr. Stevens noted that the budget closings were based on the passage of A.B. 29. He recommended that the Committee move the bill and forward it to the Senate or the Committee would need to reopen those budgets to make a General Fund appropriation.
Assemblywoman Chowning said that the General Government Subcommittee closed the budgets based on the passage of A.B. 29 and pointed out that, without federal dollars, in order to accomplish the tasks proposed by the expanded drug courts and the establishment of a mental health court in Clark County, the cost would be an additional $1.8 million beyond the $5 million raised through the $5 assessment proposed in A.B. 29. Therefore the Subcommittee on General Government suggested the assessment rate be $6 rather than $5. She noted that the Judiciary Committee cut the rate from $15 to $5. Mrs. Chowning said she entered that information for the Committee’s discussion and asked Mr. Stevens to calculate how much an additional $1 assessment rate would raise.
Mr. Stevens estimated that a $1 increase in the assessment rate would raise about $500,000.
Ms. Giunchigliani commended the Subcommittee on its work. She said she was comfortable with the recommendation and the way the budget was closed. She said they “cut a deal on $15 and that was what they live with.”
Ms. Giunchigliani asked for clarification of the changes that removed money from the Victims of Crime Fund. She noted that the original statute directed that the forfeiture fees be distributed 100 percent to the Victims of Crime Fund. The distribution had then split 50-50, and was now being split 90-10, which still removed 10 percent from the original 100 percent. Ms. Giunchigliani asked for clarification as to why the distribution was reduced from its current 100 percent.
Chairman Arberry said they would need somebody from the courts to clarify and that he would hold the vote on Assembly Bill 29.
Ms. Giunchigliani noted a correction to be made on page 2 as follows: Bullet 7, “the money collected for” should read “as an administrative assessment.”
Ms. McClain pointed out that the specialty courts would save the state millions of dollars in the future by keeping people out of prison. She said she believed the Committee needed to do whatever was necessary to fully fund the specialty courts including increasing the assessment fees.
Ronald Titus, Director, Administrative Office of the Courts, introduced himself for the record.
Ms. Giunchigliani rephrased her question and asked for the rationale that proposed to change the distribution to the fund for the Compensation of Victims of Crime.
Mr. Titus said that originally his office determined that bail forfeiture was not being properly collected and therefore determined that if the agency improved the collection process the revenues would increase. Based on that theory his agency estimated it could more than double its revenues and therefore developed the concept of equally dividing the distribution of revenues between the two entities. Subsequent research revealed that the theory was incorrect because the original information had been incorrect. The agency was therefore unsure of the actual revenue increased collections might realize. Mr. Titus said the intent was to increase collected bail forfeitures and then share the excess with the Victims of Crime Fund.
Mr. Titus said he met with Bryan Nix and several advocates for the Victims of Crime Fund to discuss the matter. In the discussions Mr. Titus indicated he had proposed a 50-50 split but that his agency could not ensure greater revenues unless the process was monitored. He added that his office felt very strongly that monitoring was important but that there was an associated cost. As a result of those discussions the 90-10 percent arrangement was agreed to be reasonable.
Mr. Titus noted that on page 5 of Exhibit D there was specific language requiring bail forfeiture collections to be reported to the Administrative Office of the Courts, and that outlined monitoring procedures.
Ms. Giunchigliani asked how many dollars 10 percent translated into. Mr. Titus said about $100,000. Ms. Giunchigliani said the Victims of Crime Fund would receive $100,000 less in their pool.
Mr. Titus said they estimated there were sufficient uncollected funds for that program. He stated that over the last three years only 6 to 11 counties had reported bail forfeitures. The agency estimated that if they monitored the process carefully, fee collections would increase.
Ms. Giunchigliani wanted to know what percentage of the $100,000 loss would translate into administrative costs. Mr. Titus said, as stated by Mr. Stevens, a $1 fee raised about $500,000, and the administrative costs would calculate to about one-twentieth.
Ms. Giunchigliani asked for further clarification regarding what happened to the unreported forfeitures.
Mr. Titus said currently the Victims of Crime Fund was not receiving the forfeitures. He said they believed that the courts reported forfeited bail but that there was a communication and reporting failure from when the courts forfeited the bail, the bond company paid it, and to when the forfeiture payment passed through the county coffers.
Ms. Giunchigliani asked how his office proposed to monitor the process.
Mr. Titus said Section 7 of A.B. 29 stated that “If the Office of the Administrative Court has not received an order setting aside a forfeiture within 180 days after issuance of the order of forfeiture, the Court Administrator shall request that the court…institute proceedings” to collect. Mr. Titus added that there was another section in the full text of A.B. 29 that required the court to report to his office when a defendant failed to appear and bail was ordered forfeited subsequent to which the court had 180 days to collect. Mr. Titus stated his agency would monitor the process and if bail forfeiture had not been set aside the agency would ensure that it was collected, reported to and received by the county, and then forwarded to the State Controller.
Ms. Giunchigliani noted that Mr. Titus could return to the Committee with a more detailed response. She turned to the issue of community service and asked if individuals ordered to do community service were currently charged a fine.
Mr. Titus said currently most of the courts ordered community service on the fine and not on the assessments. The amended bill would require them to pay the $15 assessment when ordered to do community service. Ms. Giunchigliani reiterated and said as an example under A.B. 29 that an individual could be ordered to do community service in lieu of a $500 fine and would also be ordered to pay the $15 assessment, whereas currently the individual performed community service in lieu of the fine but paid no assessment. Mr. Titus corroborated Ms. Giunchigliani’s statement.
Ms. Giunchigliani noted that with regard to Section 8 of the amended bill, in order to improve the collection process through monitoring, 10 percent would be removed from the Victims of Crime Fund as an offset.
Mr. Titus said that was correct. He said in his discussions with advocates of victims of crime groups they not only supported the proposed amendment but were also very supportive of the proposed monitoring. Mr. Titus also noted that nearly 20 percent of the state’s share of the administrative assessment went to the Victims of Crime Fund.
Ms. Giunchigliani inquired if there was a mechanism by which allocation to the local jurisdictions could be withheld when they failed to remit to the state.
Mr. Titus answered that there was nothing to withhold. He said his office had no information regarding local jurisdictions’ forfeiture activities. One of the recommendations from the agency audit and 2002 audit plan was that the agency be given some authority over the courts. Currently the Administrative Office had zero authority over the county courts. The money flowed from the courts to the counties and then to the Office of the State Controller. According to the audit report his agency should require the courts to report their assessments, and then the agency would compare that to what the Controller’s Office collected and reconcile the two figures.
Ms. Giunchigliani asked if statute could be changed to give authority over forfeiture collection to the Administrative Office. Mr. Titus acknowledged that the Committee could change the statute. Ms. Giunchigliani asked if that would make the collecting and monitoring process simpler. Mr. Titus said that was the intent of A.B. 29.
Ms. Giunchigliani noted that the Administrative Office did not have jurisdiction over the counties to ensure the appropriate channeling of forfeiture funds.
Mr. Titus explained that most of the problems were errors in county reporting. He said they assumed the process set forth in A. B. 29 would correct those problems. He said although he assumed the statute could be changed, his agency had not reviewed that option, nor was he sure they would want to.
Chairman Arberry held A.B. 29.
Assembly Bill 249 (1st Reprint): Makes various changes concerning Public Employees’ Benefits Program. (BDR 23-549)
Mr. Stevens said that Assembly Bill 249 had to do with refining some language in the statute governing the Public Employees’ Benefits Program. He said there were no policy issues included in the bill and the Committee could vote on it. Mr. Stevens said staff or members of the Public Employees’ Benefits Board were present to testify or they could be heard later in the day.
ASSEMBLYMAN HETTRICK MOVED TO APPROVE ASSEMBLY BILL 249.
SPEAKER PERKINS SECONDED THE MOTION.
THE MOTION CARRIED. (Assemblymen Andonov and Beers were not present for the vote.
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Assembly Bill 286: Revises provisions governing health insurance for retired officers and employees of local governments. (BDR 23-1124)
Mr. Stevens said A.B. 286 was one of the Public Employees’ Benefits Program bills in committee and required commingling of state retirees inactive members and non-state groups group insurance rates. He said the bill also required local governments that provided group insurance to commingle the rates for their retirees and active employees and also provided a one-time opportunity for non‑state retirees to re-enter the plan if that option were available from the local entity with which they had been formerly employed. Mr. Stevens noted that the cost of commingling eligible state and non-state group insurance rates was approximately $4.5 million.
Mr. Stevens said there were some other proposed amendments to that particular bill, and A.B. 165 and A.B. 222 accomplished some of the same things that were in A.B. 286.
Ms. McClain distributed a handout (Exhibit E) for the proposed amendment to A.B. 286 that removed the language that commingled the insurance rates in order to deal with that issue separately in A.B. 165 and A.B. 222. She said the proposed amendment left standing the provisions that were good public policy.
Ms. Giunchigliani said she had a concern about removing the commingling of insurance rates language from A.B. 286 and handling that issue in A.B. 222. She said if the Committee took action on the money then they needed to keep the policy, and noted that she would not support anything that supported commingling of insurance rates because she would not hurt the retirees in that way. Ms. Giunchigliani noted the amendment to A.B. 286 that captured dollars from the local governments and gave individuals an opportunity to re-enter the system at their original employment site was good. She said that by removing the commingling of insurance rates from the bill and then convincing the lawmakers to support another bill to fund the policy at $4.5 million was a deathblow that left the retirees separate.
Chairman Arberry asked Ms. McClain to discuss her proposed amendment for A. B. 286.
Ms. McClain said A.B. 286 left in place the policy that public retirees could return to the public entity from which they had retired with a one-time opportunity to re-enroll in their health insurance plan. It also stated that the public entity from which the individual retired would have to subsidize the health insurance rates if the individual opted to join the state plan. The amendment removed the language having to do with commingling of rates in order to set policy going forward and not to become bogged down with the fiscal note that went with commingling of rates.
Chairman Arberry noted that the amendment would allow retirees the option to re-enroll at their original point of employment. He asked what would happen if that entity did not choose to accept them.
Mr. Stevens noted that the employing entity did not have an option. He added that he did not know how the bill would apply to collective bargaining.
Ms. McClain said she assumed that if the law required the employer to re-enroll the retiree, and if that were technically possibly, then the employer was obligated to do so.
Chairman Arberry said he was not convinced that the employer could not refuse the retiree to re-enroll.
Mr. Stevens said that within a week LCB needed numbers to insert into the Appropriations Act in order to run payroll, and one of the numbers they needed was the monthly group insurance premium on behalf of state employees.
Speaker Perkins said his preference, regardless of finding the money, was to pass the bill without the amendment and send it to the Senate so they could begin hearings on it. He said through the reconciliation process they could develop the budgets and determine if there was any money. If money could not be found the bill could then be amended in the Senate.
Assemblyman Marvel said he was very concerned by the tremendous size of the fiscal note given the current tight budget constraints. He said he could not support the bill.
Assemblyman Hettrick said he agreed with Speaker Perkins’ intent and he also agreed with Mr. Marvel. He said if the Assembly passed the bill and the Senate decided to support it those of us who were uncomfortable about adding the $4.5 million would be on record supporting the spending. He said he would have to vote no to a motion to move the bill.
ASSEMBLYWOMAN GIUNCHIGLIANI MOVED TO DO PASS ASSEMBLY BILL 286.
ASSEMBLYWOMAN McCLAIN SECONDED THE MOTION.
THE MOTION CARRIED WITH ASSEMBLYMEN GRIFFIN, MARVEL, ANDONOV, AND HETTRICK VOTING NO. (Assemblyman Beers was not present for the vote.)
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Assembly Bill 41 (1st Reprint): Converts Division of Wildlife of State Department of Conservation and Natural Resources into Department of Wildlife. (BDR 45-14)
Chairman Arberry noted that the bill dealt with the Division of Wildlife becoming a Department.
SPEAKER PERKINS MOVED TO DO PASS ASSEMBLY BILL 41.
ASSEMBLYMAN GOLDWATER SECONDED THE MOTION.
THE MOTION CARRIED. (Assemblyman Beers was not present for the vote.
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Assembly Bill 515 (1st Reprint): Makes various changes to provisions governing property tax assistance for senior citizens. (BDR 38-499)
Mr. Stevens distributed Exhibit F and said that the Committee had discussed A.B. 515 earlier. He said the legislation should pass in some form this session unless the Committee wanted to leave the current property tax rebate eligibility tests as they were. He said there were a number of issues that Committee members had discussed, including limitations on the value of the home, and liquid asset levels. He said the Committee needed to decide to either amend or not amend the bill.
Assemblyman Parks said that after they had amended and passed the bill new information became available indicating that a number of individuals who currently qualified to receive the tax benefit would not be eligible if the bill passed. He said approximately half of eligible seniors had liquid assets in excess of $100,000 and also had a principal residence that was rated at a value significantly higher than $70,000. He said the bill created a dilemma for those individuals who were currently receiving the benefit. An additional proposal was that there were individuals who should either at the time of their demise or upon the sale of the property repay the state from the proceeds of the sale of the property for the benefits they had received through the property tax credit assistance program.
Chairman Arberry said with some credulity, “We want to go back to some seniors and tell them we want their money back?”
Mr. Parks said the intent for the program was to help seniors in a time of financial hardship. He said there were individuals who had taken advantage of the program that had no financial hardship. Mr. Parks said that at the time of their demise or the sale of their residence there would be significant assets available to repay the state those taxes for which they had received a rebate.
Chairman Arberry commented that instead of trying to recoup past money they should move forward with the idea.
Mr. Parks said the intent of the plan was to move forward rather than to be retroactive.
Mr. Marvel said philosophically he was not opposed to the bill. He said he did not understand how the state originally became involved in property tax rebates. He said the counties and local governments collected all the ad valorem taxes and then the state provided a subsidy and he did not know how to mandate the counties and local governments to return the rebate. The state did not receive ad valorem taxes except for capital improvements and debt service.
Ms. McClain said in the current language an eligible individual could not have an annual income over $21,500. She noted that the original bill changed the qualifying threshold to a $400,000 cap and that would remove 50 or 60 people. She gave the example of an 85-year-old woman living off the interest from $200,000 worth of certificates of deposits with a yield of 2 or 3 percent and a little social security. That individual was making $17,000 or $18,000 a year. She noted that the tax rebate was only up to $500. She asked how many people would be removed from the program if they went to the $400,000 threshold.
Carol Sala, Administrator, Aging Services Division, said there was a chart on page 7 of Exhibit F showing the number of individuals below the liquid assets limits. She noted that in the first column, there were 50 clients with assets greater than $400,000 who would fall off the program and 465 individuals would not qualify with an amendment setting the liquid assets threshold at $100,000.
Carla Watson, Administrative Services Officer, Aging Services Division, noted that cumulatively 1,500 clients would be disqualified if the threshold were set at $100,000 and 191 clients cumulatively would fall out of the program in a range from $400,000 to $900,000.
Mr. Hettrick said the decision was difficult. He noted his bill, A.B. 442, which was trying to provide property tax relief for individuals who owned property where the assessed value had also risen so that they could no longer afford to pay the property taxes. In those instances the individuals were told to sell if they could not pay the property taxes because the property was assessed at $1 million. Mr. Hettrick said in both instances they were proposing that individuals not be forced to sell their residence if property taxes had become unaffordable. He said the state needed to decide if property taxes became an issue that required relief then both bills should be passed. He said with regard to A.B. 515 the Committee would save the state money even at a $400,000 liquid asset cap because the state currently gave tax relief without any asset test. Mr. Hettrick concluded his argument and noted he had difficulty with the idea that on one hand you could not consider the value of their assets and on the other hand you could.
Chairman Arberry asked Ms. McClain, Mr. Griffin, and Mr. Parks to meet with the agency and come back with a recommendation so the Committee could move on the bill.
Chairman Arberry held A.B. 515.
Assembly Bill 534: Makes various changes concerning State Public Works Board. (BDR 28-556)
Mr. Stevens said that A.B. 534 had a note in Section 8, subsection 3, on page 5, involving the order in which money was expended for Capital Improvement Projects. Under subsection 3, item b should be item a, item c should be item b, and item a should be item c.
ASSEMBLYMAN MARVEL MOVED TO AMEND AND DO PASS ASSEMBLY BILL 534.
ASSEMBLYWOMAN GIUNCHIGLIANI SECONDED THE MOTION.
THE MOTION CARRIED. (Assemblyman Beers was not present for the vote.)
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Senate Bill 407 (1st Reprint): Makes supplemental appropriation to Western Interstate Commission for Higher Education for unanticipated shortfall in money for Fiscal Year 2002-2003 resulting from reclassification of position. (BDR S-1225)
Mr. Stevens said that S.B. 407 provided for supplemental appropriation for the Western Interstate Commission for Higher Education (WICHE) program and said the amount could be adjusted by $800 down to $2,600.
ASSEMBLYWOMAN GIUNCHIGLIANI MOVED TO AMEND AND DO PASS SENATE BILL 407.
ASSEMBLYMAN PARKS SECONDED THE MOTION.
THE MOTION CARRIED. (Assemblyman Beers was not present for the vote.)
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Senate Bill 410 (1st Reprint): Makes supplemental appropriation to Department of Motor Vehicles for unanticipated shortfall in money for Fiscal Year 2002-2003 resulting from certain increased costs. (BDR S-1267)
Mr. Stevens said S.B. 410 was the supplemental appropriation for the Department of Motor Vehicles. He said staff recommended passing this bill.
ASSEMBLYMAN PARKS MOVED TO DO PASS SENATE BILL 410.
ASSEMBLYWOMAN CHOWNING SECONDED THE MOTION.
THE MOTION CARRIED. (Assemblyman Beers was not present for the vote.)
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Senate Bill 493 (1st Reprint): Makes supplemental appropriation to Office of the Military for unanticipated shortfall in money for utility costs in Fiscal Year 2002-2003. (BDR S-1335)
Mr. Stevens said that staff recommended the Committee pass S.B. 493.
ASSEMBLYMAN MARVEL MOVED TO DO PASS SENATE BILL 493.
ASSEMBLYMAN GRIFFIN SECONDED THE MOTION.
THE MOTION CARRIED. (Assemblyman Beers was not present for the vote.)
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Chairman Arberry called a recess.
BUDGET CLOSINGS
Morse Arberry Jr., Chairman, Assembly Joint Subcommittee on Higher Education, presented the following closing report on the University and Community College System of Nevada, UCCSN Summary:
THE FOLLOWING REPORT HIGHLIGHTS THE MORE SIGNIFICANT BUDGET CLOSING ACTIONS RECOMMENDED BY THE SUBCOMMITTEE.
ERRORS AND OMISSIONS
THE SUBCOMMITTEE CORRECTED GENERAL FUND ERRORS AND OMISSIONS IN THE EXECUTIVE BUDGET TOTALING $7.28 MILLION. THE MOST SIGNIFICANT ERRORS INCLUDED MISCALCULATION OF RETIREMENT AND RETIRED EMPLOYEE GROUP INSURANCE RATE ASSESSMENTS, INACCURATE UTILITY INPUT AND ERRONEOUS REMOVAL OF POSITIONS FROM BASE.
M-200 FUNDING FORMULA AND ENROLLMENT GROWTH
THE GOVERNOR RECOMMENDED FUNDING FORMULA ALLOCATIONS OF 86 PERCENT PER YEAR. HOWEVER, APPLYING THE GOVERNOR’S 86 PERCENT FORMULA RECOMMENDATION TO UPDATED, HIGHER ENROLLMENT PROJECTIONS WOULD HAVE INCREASED COSTS BY $20.9 MILLION. THE SUBCOMMITTEE INSTEAD RETAINED THE TOTAL FUNDING LEVELS RECOMMENDED BY THE GOVERNOR. THE HIGHER ENROLLMENT PROJECTIONS DROPPED FORMULA FUNDING TO 84.45 PERCENT IN FY 2003-04 AND 84.09 PERCENT IN FY 2004‑05.
ESTATE TAX REVENUES AND EXPENDITURES
UCCSN PROJECTED THAT FUNDING IN THE ESTATE TAX ACCOUNT WOULD BE INSUFFICIENT TO SUPPORT THE GOVERNOR’S RECOMMENDATIONS. THE SUBCOMMITTEE CONCURS WITH THE UCCSN’S PROPOSED CHANGES WHEREBY ESTATE TAX FUNDS WOULD BE TRANSFERRED ON A MONTHLY BASIS TO THE STATE GENERAL FUND UP TO THE LEVEL OF EXPENDITURES APPROVED IN THE FINAL BUDGET, AND ALL SUCH EXPENDITURES WOULD INSTEAD BE APPROPRIATED FROM THE STATE GENERAL FUND. THE SUBCOMMITTEE REPLACED THE ADJUSTED TOTAL OF $89.2 MILLION IN ESTATE TAX ALLOCATIONS WITH GENERAL FUND APPROPRIATIONS. THE SUBCOMMITTEE SUGGESTS MODIFICATIONS TO S.B. 415 TO RECOGNIZE THE TRANSFER OF ESTATE TAX REVENUES TO THE GENERAL FUND.
M-201 - NEW SPACE
THE SUBCOMMITTEE APPROVED THE INTRODUCTION OF O&M SUPPORT AT THE UNR FIRE SCIENCE ACADEMY IN CARLIN. THE SUBCOMMITTEE ALSO ENDORSES O&M SUPPORT AT UNLV’S SHADOW LANE COMPLEX (DENTAL SCHOOL). THE SUBCOMMITTEE RECOMMENDS A LETTER OF INTENT REQUESTING THAT UNLV ESTABLISH A RESERVE FOR REVERSION FOR SPACE THAT MAY BE LEASED AT THE COMPLEX.
M-202 - RECHARGE PRO-RATION AND NEW SPACE RENTAL COSTS
THE SUBCOMMITTEE APPROVED A LETTER OF INTENT REQUESTING UNLV TO CONSIDER A RECHARGE MECHANISM SIMILAR TO UNR AND TO PRESENT SEMI‑ANNUAL PROGRESS REPORTS TO THE IFC.
M-203 - UNLV DENTAL SCHOOL ENROLLMENT GROWTH
THE SUBCOMMITTEE CONCURS WITH THE GOVERNOR’S RECOMMENDATION TO PROVIDE FUNDING FOR UNLV DENTAL SCHOOL ENROLLMENT GROWTH, WITH THE ADDITION OF 24 NEW POSITIONS IN FY 2003-04 AND 29 POSITIONS IN FY 2004‑05.
M-300 – FRINGE BENEFITS
THE SUBCOMMITTEE CORRECTED FRINGE RATE CALCULATION ERRORS AT A COST OF $5.9 MILLION FOR THE BIENNIUM.
M-307 - MERIT PAY ADJUSTMENTS
THE SUBCOMMITTEE APPROVED PARTIAL LIMITS ON STATE FUNDING PROVIDED FOR PROFESSIONAL SALARIES AT OR BEYOND THE MAXIMUM SALARY SCALE LEVEL. THE SUBCOMMITTEE ALSO VOTED TO DEFER BUDGETED MERIT PAY FOR THE FIRST SIX MONTHS OF FY 2003-04, RESULTING IN A GENERAL FUND SAVINGS OF $3.23 MILLION.
STUDENT FEES
THE SUBCOMMITTEE APPROVES ALLOCATING SIGNIFICANT PORTIONS OF STUDENT FEE INCREASES TO THE UCCSN CAPITAL AND GENERAL IMPROVEMENT FEE FUNDS AND STUDENT ACCESS FUND.
STUDENT FEE AUTHORIZATION ACT LANGUAGE
THE SUBCOMMITTEE APPROVED MODIFICATIONS TO THE AUTHORIZATIONS ACT BACK LANGUAGE TO ALLOW AUGMENTATIONS OF REGISTRATION FEE REVENUES WITHOUT IFC APPROVAL IF THE REVENUES ARE USED SOLELY FOR INSTRUCTIONAL COSTS RELATED TO PROVIDING ADDITIONAL CLASSES.
UN-FUNDED ENHANCEMENT DECISION ITEMS
THE SUBCOMMITTEE CONSIDERED SEVERAL UN-FUNDED ITEMS AS FOLLOWS:
ITEM #1 - TAXONOMY: THE SUBCOMMITTEE APPROVED A NEW LETTER OF INTENT ADVISING THE UCCSN TO DEVELOP A COST-NEUTRAL, CONSISTENT, COURSE TAXONOMY TO BE USED IN THE PREPARATION OF THE BUDGETS FOR THE 2005-07 BIENNIUM.
ITEM #2, DENTAL SCHOOL EQUIPMENT: AS A RESULT OF THE SUBCOMMITTEE’S ACTIONS, $3.23 MILLION IN GENERAL FUND SAVINGS ARE AVAILABLE TO PURCHASE DENTAL SCHOOL EQUIPMENT.
ITEM #8, ATHLETICS, FEE WAIVERS AND GENDER EQUITY: THE SUBCOMMITTEE TOOK NO ACTION ON STUDENT ATHLETE FEE WAIVERS. HOWEVER, UCCSN INDICATED A WILLINGNESS TO COVER FEE WAIVERS AT THE UNIVERSITIES AND CCSN DURING THE 2003-05 BIENNIUM UNDER THE APPROVED FORMULA SCENARIOS WITH NO ADDITIONAL FUNDING, WITH THE UNDERSTANDING THAT THE LEGISLATURE WOULD SUPPORT FEE WAIVERS IN THE FUTURE. THE SUBCOMMITTEE INDICATED IT COULD NOT GUARANTEE THE ACTION OF FUTURE LEGISLATURES.
ITEM #15 - NURSING ENROLLMENT EXPANSION: THE UCCSN’S INITIAL PLAN TO DOUBLE NURSING PROGRAM CAPACITY WOULD HAVE COST $12.1 MILLION. A REVISED PLAN INITIATED BY ASSEMBLY LEADERSHIP AND REFINED BY THE UCCSN WOULD COST $6.5 MILLION AND INCREASE NURSING ENROLLMENTS FROM 686 STUDENTS IN FY 2002-03 TO 1,326 STUDENTS IN FY 2004-05.
UNDER THE APPROVED PLAN, FORMULA LEVELS FUNDED BY THE SUBCOMMITTEE WOULD ALLOW THE LARGER CAMPUSES TO ABSORB HIGHER NURSING ENROLLMENTS. THE HOSPITAL ASSOCIATION AGREED TO FUND $559,473 IN EQUIPMENT COSTS. WORKER’S COMPENSATION RATE REDUCTIONS PROVIDE ONE-TIME GENERAL FUND SAVINGS OF $1.37 MILLION FOR THE BIENNIUM. GENERAL FUND APPROPRIATIONS OF $454,612 WERE ADDED THROUGH SAVINGS REALIZED FROM OTHER ADJUSTMENTS. THE PLAN ALSO ENVISIONED $300,000 IN INTEREST DISTRIBUTIONS FROM THE TRUST FUND FOR PUBLIC HEALTH FOR THE NURSING LOAN REVOLVING FUND.
OTHER CLOSING ITEMS
THE SUBCOMMITTEE USED GENERAL FUND SAVINGS TO FUND THE PEDIATRICS DIABETES AND ENDOCRINOLOGY AND SMALL BUSINESS DEVELOPMENT CENTERS, RESTORATION OF THE STATE CLIMATOLOGIST POSITION, AND ADDITION OF A COOPERATIVE EXTENSION EDUCATOR IN MINERAL COUNTY.
SUMMARY: INDEPENDENT OF THE ESTATE TAX FUNDING SHIFT, THE SUBCOMMITTEE’S ACTIONS RESULTED IN GENERAL FUND SAVINGS OF $133,312 FOR THE BIENNIUM. HOWEVER, IT IS IMPORTANT TO NOTE THAT THE SUBCOMMITTEE MADE MAJOR REVISIONS TO THE GOVERNOR’S BUDGET WITHIN THE CONFINES OF THE TOTAL GENERAL FUND AMOUNTS RECOMMENDED BY THE GOVERNOR. THE SUBCOMMITTEE FUNDED A NURSING PLAN THAT WILL NEARLY DOUBLE NURSING ENROLLMENTS BY THE END OF THE BIENNIUM. FUNDING WAS PROVIDED FOR $3.23 MILLION IN DENTAL SCHOOL EQUIPMENT NEEDS. NEARLY $7.3 MILLION IN GENERAL FUND ERRORS WERE CORRECTED. THE PEDIATRICS DIABETES AND ENDOCRINOLOGY CENTER RECEIVED $1.13 MILLION IN GENERAL FUND APPROPRIATIONS FOR THE BIENNIUM. FINALLY, WHILE FORMULA PERCENTAGES DIPPED AS A RESULT OF HIGHER ENROLLMENT PROJECTIONS, THE SUBCOMMITTEE SUSTAINED THE TOTAL FORMULA AMOUNTS RECOMMENDED BY THE GOVERNOR.
THE GENERAL FUND SAVINGS ESTIMATE ASSUMES FULL RECEIPT OF THE ESTATE TAX REVENUES REFLECTED IN THE GOVERNOR’S BUDGET. HOWEVER, IF THE UCCSN ESTATE TAX PROJECTIONS ARE CORRECT, A GENERAL FUND SHORTFALL COULD RESULT.
I HAVE PROVIDED A QUICK OVERVIEW. THE CLOSING PACKET PROVIDES GREATER DETAIL. I WOULD BE HAPPY TO DISCUSS THE SUBCOMMITTEE’S RECOMMENDATIONS FURTHER IF ANYONE ON THE COMMITTEE HAS ANY QUESTIONS.
The full closing report appears below.
THE JOINT SUBCOMMITTEE ON HIGHER EDUCATION COMPLETED ITS REVIEW OF THE UNIVERSITY AND COMMUNITY COLLEGE SYSTEM OF NEVADA’S BUDGETS. THE FOLLOWING REPORT HIGHLIGHTS THE MORE SIGNIFICANT BUDGET CLOSING ACTIONS RECOMMENDED BY THE SUBCOMMITTEE.
ERRORS AND OMISSIONS
THE EXECUTIVE BUDGET CONTAINED A NUMBER OF ERRORS AND OMISSIONS THAT THE SUBCOMMITTEE CORRECTED, AT A GENERAL FUND COST OF $7.28 MILLION FOR THE BIENNIUM. THE MOST SIGNIFICANT ERRORS RESULTED FROM THE MISCALCULATION OF RETIREMENT AND RETIRED EMPLOYEE GROUP INSURANCE RATE ASSESSMENTS. THE SUBCOMMITTEE WAS ABLE TO MAKE CORRECTIONS WITHIN THE TOTAL GENERAL FUND AMOUNTS RECOMMENDED BY THE GOVERNOR BY REALIZING GENERAL FUND SAVINGS MADE AVAILABLE AS A RESULT OF OTHER SUBCOMMITTEE ADJUSTMENTS.
M-200 FORMULA FUNDING AND ENROLLMENT GROWTH
BASED ON THE ENROLLMENT PROJECTIONS USED TO PREPARE THE EXECUTIVE BUDGET, THE AMOUNTS RECOMMENDED BY THE GOVERNOR WOULD HAVE INCREASED FORMULA FUNDING ALLOCATIONS FROM 80.29 PERCENT TO 86 PERCENT OF THE CALCULATED FORMULA AMOUNTS IN EACH YEAR OF THE 2003‑05 BIENNIUM. HOWEVER, UPDATED ENROLLMENT PROJECTIONS SIGNIFICANTLY IMPACTED THE FORMULA FUNDING COMPONENT.
STUDENT FTE ENROLLMENTS WERE PROJECTED USING A THREE-YEAR WEIGHTED AVERAGE METHODOLOGY. PROJECTIONS WERE UPDATED BASED UPON FINALIZED FY 2002-03 ACTUAL ANNUAL COUNTS. WITH THE EXCEPTION OF WNCC, RE-PROJECTED ENROLLMENTS WERE SIGNIFICANTLY HIGHER THAN THE ENROLLMENTS USED IN CALCULATING THE GOVERNOR’S RECOMMENDED BUDGET. SYSTEM-WIDE, THE NEW PROJECTIONS RESULT IN ENROLLMENTS THAT WERE 1,661 FTE HIGHER IN FY 2003-04 AND 2,294 FTE HIGHER IN FY 2004-05.
APPLYING THE GOVERNOR’S 86 PERCENT FORMULA RECOMMENDATION TO THE REVISED ENROLLMENTS WOULD HAVE INCREASED COSTS BY $9.1 MILLION IN FY 2003-04 AND $11.8 MILLION IN FY 2004‑05 ($20.9 MILLION FOR THE BIENNIUM) BEYOND THE AMOUNTS REFLECTED IN THE EXECUTIVE BUDGET. THE INCREASED GENERAL FUND SHARE WOULD HAVE BEEN AN ADDITIONAL $14.2 MILLION OVER THE BIENNIUM.
THE SUBCOMMITTEE CHOSE INSTEAD TO RETAIN THE TOTAL FUNDING LEVELS RECOMMENDED BY THE GOVERNOR. THE HIGHER ENROLLMENT PROJECTIONS CAUSED THE PERCENTAGES OF THE FORMULA FUNDED TO DROP TO 84.45 PERCENT IN FY 2003-04 AND 84.09 PERCENT IN FY 2004‑05. HOWEVER, THERE WAS NO NET CHANGE IN THE TOTAL FORMULA DOLLAR AMOUNT ALLOCATED TO THE UCCSN. TMCC WAS REMOVED FROM A HOLD HARMLESS-ELIGIBLE POSITION AS A RESULT OF THE ENROLLMENT ADJUSTMENTS.
THE GOVERNOR DID NOT EMPLOY THE THREE-YEAR WEIGHTED AVERAGE ENROLLMENT AND FORMULA METHODOLOGIES AT NEVADA STATE COLLEGE AT HENDERSON (NSCH), AS THE CAMPUS HAS NO ENROLLMENT HISTORY BEYOND THE 146 FTE STUDENTS THAT ATTENDED IN FY 2002-03.
ENROLLMENT-DRIVEN RESIDENT STUDENT FEE REVENUE RE-PROJECTIONS AND CORRECTIONS
HIGHER ENROLLMENT PROJECTIONS DROVE INCREASES IN ANTICIPATED STUDENT FEE REVENUES. THE SUBCOMMITTEE ALSO MADE SEVERAL TECHNICAL ADJUSTMENTS TO THE FEE CALCULATIONS CONTAINED IN THE EXECUTIVE BUDGET. THE REVISED FEE REVENUE PROJECTIONS WERE $6.7 MILLION HIGHER THAN THE AMOUNTS RECOMMENDED BY THE GOVERNOR, RESULTING IN A CORRESPONDING GENERAL FUND REDUCTION. THE GENERAL FUND SAVINGS WERE USED TO OFFSET ERRORS AND OMISSIONS AND TO MAKE OTHER ADJUSTMENTS.
ESTATE TAX REVENUES AND EXPENDITURES
THE EXECUTIVE BUDGET PROPOSED TO CONTINUE THE USE OF ESTATE TAX REVENUES WITH ALLOTMENTS IN THE BASE AND MAINTENANCE MODULES TOTALING $47.0 MILLION IN FY 2003‑04 AND $45.6 MILLION IN FY 2004-05 ($92.6 MILLION FOR THE 2003-05 BIENNIUM). THE SUBCOMMITTEE ENGAGED IN LENGTHY DISCUSSIONS ABOUT THE PHASE-OUT OF THE ESTATE TAX AS A REVENUE SOURCE FOR THE STATE OF NEVADA. THE ECONOMIC GROWTH AND TAX RELIEF RECONCILIATION ACT OF 2001 (H.R. 1836) ANNUALLY REDUCES AND THEN REPEALS THE FEDERAL ESTATE TAX. IN 2005, THE STATE ESTATE TAX CREDIT IS REPEALED ENTIRELY.
UCCSN PROJECTED THAT FUNDING IN THE ESTATE TAX ACCOUNT WOULD BE INSUFFICIENT TO SUPPORT THE RECOMMENDATIONS IN THE GOVERNOR’S BUDGET, WITH A PROJECTED SHORTFALL OF $9.6 MILLION BY THE END OF THE 2003-05 BIENNIUM. THE UCCSN PROPOSED A CHANGE TO THE GOVERNOR’S BUDGET WHEREBY ESTATE TAX FUNDS WOULD BE TRANSFERRED ON A MONTHLY BASIS TO THE STATE GENERAL FUND UP TO THE LEVEL OF EXPENDITURES APPROVED IN THE FINAL BUDGET, AND ALL SUCH EXPENDITURES WOULD INSTEAD BE APPROPRIATED FROM THE STATE GENERAL FUND. UCCSN INDICATED THAT IF ESTATE TAXES WERE TO FALL SHORT, VITAL PROGRAMS AT UCCSN WOULD BE SAVED FROM ELIMINATION. THE SYSTEM ACKNOWLEDGED THAT THIS PROPOSAL WOULD MOVE THE RISK OF A SHORTFALL TO THE STATE. HOWEVER, THE SYSTEM ALSO NOTED THAT THE GENERAL FUND ALREADY TAKES ON EVEN GREATER RISKS IN SALES, GAMING AND MANY OTHER TAX SOURCES. THE SUBCOMMITTEE CONCURRED WITH THE UCCSN PROPOSAL AND REPLACED THE ADJUSTED TOTAL OF $89.2 MILLION IN ESTATE TAX ALLOCATIONS WITH GENERAL FUND APPROPRIATIONS.
SENATE BILL 415 WOULD ELIMINATE THE CURRENT $2.5 MILLION INTEREST GENERATION REQUIREMENT ASSOCIATED WITH THE ESTATE TAX ACCOUNT. THE SUBCOMMITTEE SUGGESTED THAT LANGUAGE BE ADDED TO S.B. 415 TO RECOGNIZE THE TRANSFER OF ESTATE TAX REVENUES TO THE GENERAL FUND.
ADJUSTED BASE BUDGET
THE SUBCOMMITTEE MADE CORRECTIONS AND ADJUSTMENTS TO UCCSN BASE COSTS THAT ADDED GENERAL FUND APPROPRIATIONS OF $564,220 IN FY 2003-04 AND $549,547 IN FY 2004-05. THE SUBCOMMITTEE ALSO REDUCED BASE ESTATE TAX COSTS BY $249,836 FOR THE BIENNIUM THAT INDIRECTLY RESULTED IN GENERAL FUND SAVINGS BASED UPON THE SUBCOMMITTEE’S ESTATE TAX TRANSFER ACTION. THE MORE SIGNIFICANT ADDITIONS INCLUDED UTILITY ADJUSTMENTS AT UNR AND INSTRUCTIONAL AND VACANCY ADJUSTMENTS AT TMCC. VACANCY SAVINGS CALCULATIONS WERE ADJUSTED TO REFLECT A TWO PERCENT PROFESSIONAL FACTOR FOR NON‑FORMULA ACCOUNTS, RATHER THAN THE ONE PERCENT FACTOR EMPLOYED IN THE GOVERNOR’S BUDGET.
M-201 - NEW SPACE
THE SUBCOMMITTEE CONCURS WITH THE GOVERNOR’S PROPOSAL TO INTRODUCE STATE SUPPORT TO ASSIST IN OPERATING THE UNR FIRE SCIENCE ACADEMY (FSA) IN CARLIN. THE SUBCOMMITTEE APPROVED UNR’S REVISED REQUEST THAT WOULD FUND OPERATION AND MAINTENANCE COSTS OF $786,300 PER YEAR, OR $1.57 MILLION FOR THE BIENNIUM AND ONE-TIME EQUIPMENT FUNDING OF $40,085 IN FY 2003-04.
THE SUBCOMMITTEE ENDORSED THE GOVERNOR’S NEW SPACE FUNDING RECOMMENDATION OF $1.2 MILLION IN FY 2003-04 AND $1.4 MILLION IN FY 2004-05 TO SUPPORT OPERATIONS AND MAINTENANCE OF UNLV’S SHADOW LANE COMPLEX (DENTAL SCHOOL – FORMER EICON BUILDING). THE SUBCOMMITTEE RECOMMENDS A LETTER OF INTENT REQUESTING UNLV TO ESTABLISH A RESERVE FOR REVERSION IN THE AMOUNT OF STATE-SUPPORTED O&M FUNDING ASSOCIATED WITH SPACE THAT MAY BE LEASED AT THE COMPLEX.
THE SUBCOMMITTEE APPROVED A NUMBER OF MODIFICATIONS TO THE NEW SPACE MODULE THAT RESULTED IN NET DECREASES IN GENERAL FUND APPROPRIATIONS OF $360,714 IN FY 2003-04 AND $427,392 IN FY 2004-05 AS COMPARED TO THE GOVERNOR’S RECOMMENDED BUDGET.
M-202 - RECHARGE PRO-RATION AND NEW SPACE RENTAL COSTS
THE SUBCOMMITTEE CORRECTED ERRORS IN THE PORTION OF THE EXECUTIVE BUDGET THAT PRO‑RATES OPERATIONS AND MAINTENANCE COSTS TO UNR‑AREA BUDGETS, RESULTING IN A NET INCREASE OF $638,799 FOR THE BIENNIUM. IT WAS NOTED THAT UNLV DOES NOT EMPLOY A RECHARGE MECHANISM SIMILAR TO UNR. AS A RESULT, THE FULL COSTS OF OPERATIONS AT THE LAW SCHOOL AND DENTAL SCHOOL ARE NOT REPORTED IN THEIR RESPECTIVE BUDGET ACCOUNTS (RATHER, PORTIONS ARE INCLUDED IN THE UNLV MAIN ACCOUNT). THE SUBCOMMITTEE APPROVED A LETTER OF INTENT REQUESTING UNLV TO STUDY THE POSSIBILITY OF EMPLOYING A RECHARGE MECHANISM SIMILAR TO THE METHOD USED AT UNR AND TO PRESENT SEMI-ANNUAL PROGRESS REPORTS TO THE INTERIM FINANCE COMMITTEE. IF THE IMPLEMENTATION OF A RECHARGE METHODOLOGY PROVES TO BE PRACTICAL AND COST‑EFFECTIVE FOR UNLV, THE SUBCOMMITTEE ENCOURAGED UNLV TO EMPLOY THE METHODOLOGY FOR THE BUDGETS PREPARED FOR THE 2005-07 BIENNIUM.
M-203-VARIOUS DECISION ITEMS
THREE SEPARATE MAINTENANCE ITEMS WERE ADDRESSED WITHIN THE M-203 MODULE. THE GOVERNOR RECOMMENDED ESTATE TAX AS THE FUNDING SOURCE FOR THESE MODULES. CONSISTENT WITH THE SUBCOMMITTEE’S ACTION DESCRIBED EARLIER, GENERAL FUND APPROPRIATIONS WOULD REPLACE THE ESTATE TAX AS THE FUNDING SOURCE.
A. SYSTEM CAPACITY EXPANSIONS: THE SUBCOMMITTEE APPROVED A TOTAL OF $5.57 MILLION FOR THE BIENNIUM TO EXPAND HARDWARE AND SOFTWARE AND TO FUND ONGOING SYSTEM MAINTENANCE COSTS. THE SUBCOMMITTEE CONCURRED WITH THE UCCSN’S REQUEST TO RECONFIGURE THE GOVERNOR’S RECOMMENDATION, AT A NET COST DECREASE OF $1,476 FOR THE BIENNIUM. THE FUNDING WOULD PROVIDE UPGRADES TO THE STUDENT INFORMATION SYSTEM TO RESPOND TO ENROLLMENT GROWTH; IMPROVEMENTS TO THE FINANCIAL AND HUMAN RESOURCES SYSTEMS TO ACCOMMODATE NEW SOFTWARE AND TO PROVIDE BACKUP CAPABILITY IN THE EVENT OF DISASTER; REPLACEMENT OF AGING SERVERS; AND INSTALLATION OF NETWORK CONNECTIONS FOR THE REDFIELD AND SHADOW LANE CAMPUSES.
B. EPSCOR GRANT MATCH: THE SUBCOMMITTEE APPROVED THE GOVERNOR’S RECOMMENDATION OF $400,000 PER YEAR ($800,000 FOR THE BIENNIUM) TO SUPPORT NEW GRANT AWARDS AND PROGRAMS ASSOCIATED WITH THE EXPERIMENTAL PROGRAM TO STIMULATE COMPETITIVE RESEARCH (EPSCOR).
C. UNLV DENTAL SCHOOL ENROLLMENT GROWTH: THE SUBCOMMITTEE CONCURS WITH THE GOVERNOR’S RECOMMENDATION TO PROVIDE FUNDING FOR UNLV DENTAL SCHOOL GROWTH, ANTICIPATING ENROLLMENTS WILL INCREASE FROM 75 STUDENTS IN FY 2002-03, TO 150 STUDENTS IN FY 2003-04 AND 225 STUDENTS IN FY 2004-05. UNLV’S OPTIMAL ENROLLMENT GOAL IS 300 TOTAL STUDENTS. A TOTAL OF 24 NEW POSITIONS WILL BE ADDED IN FY 2003-04, WITH 29 ADDITIONAL POSITIONS IN FY 2004‑05.
THE SUBCOMMITTEE MADE CORRECTIONS AND ADJUSTMENTS TO THE STATE REVENUES NEEDED TO SUPPORT DENTAL SCHOOL ENROLLMENT GROWTH, REDUCING THE GOVERNOR’S RECOMMENDED AMOUNT OF $5.27 MILLION TO $1.94 MILLION FOR THE BIENNIUM. CORRESPONDING INCREASES WERE MADE TO STUDENT FEE REVENUES.
M-300 – FRINGE BENEFIT ADJUSTMENTS
THE EXECUTIVE BUDGET INCLUDES $9.5 MILLION IN FY 2003-04 AND $15.0 MILLION IN FY 2004-05 TO FUND FRINGE BENEFIT COST INCREASES IN RETIREMENT, GROUP HEALTH INSURANCE, RETIRED EMPLOYEES GROUP INSURANCE, AND PERSONNEL ASSESSMENTS. THE CALCULATION OF THE STATE’S RETIREMENT CONTRIBUTION IN THE EXECUTIVE BUDGET ADDRESSED ONLY THE CLASSIFIED AND PROFESSIONAL EMPLOYEES WHO HAVE CHOSEN THE PERS RETIREMENT OPTION, AND OMITTED UCCSN PROFESSIONALS WHO HAVE CHOSEN A RETIREMENT PLAN ALTERNATIVE. TO CORRECT THE ERROR, THE SUBCOMMITTEE ADDED GENERAL FUND APPROPRIATIONS OF $1.12 MILLION IN FY 2003-04 AND $1.15 MILLION IN FY 2004-05 BEYOND THE AMOUNTS IN THE EXECUTIVE BUDGET.
RETIRED EMPLOYEE GROUP INSURANCE (REGI) ASSESSMENTS WERE ALSO SIGNIFICANTLY UNDER FUNDED. TO ELIMINATE THE SHORTFALL, THE SUBCOMMITTEE ADDED GENERAL FUND APPROPRIATIONS OF APPROXIMATELY $1.66 MILLION PER YEAR, OR $3.32 MILLION FOR THE BIENNIUM. PERSONNEL AND GROUP MEDICAL INSURANCE ASSESSMENTS WERE LIKEWISE UNDER FUNDED BY $237,521 AND $60,357, RESPECTIVELY, FOR THE BIENNIUM. ESTATE TAX-FUNDED ASSESSMENT ERRORS OF $84,495 IN FY 2003-04 AND $84,756 IN FY 2004-05 WERE ALSO DISCOVERED. CONSISTENT WITH THE SUBCOMMITTEE’S PREVIOUS ACTION, THE ESTATE TAX CORRECTIONS WOULD BE FUNDED INSTEAD WITH GENERAL FUND APPROPRIATIONS.
M-303 - OCCUPATIONAL STUDY
AS RECOMMENDED BY THE GOVERNOR, THE SUBCOMMITTEE APPROVED A TOTAL OF $52,722 IN EACH YEAR OF THE BIENNIUM TO RECLASSIFY UCCSN CLASSIFIED POSITIONS IN THE LIBRARY AND ARCHIVES OCCUPATIONAL GROUP, PURSUANT TO A RECENT STUDY COMPLETED BY THE DEPARTMENT OF PERSONNEL.
M-307 - ADJUSTMENTS TO MERIT PAY CALCULATIONS
THE SUBCOMMITTEE CONCURS WITH THE GOVERNOR’S RECOMMENDATION TO REDUCE MERIT PAY FUNDING BY $62,066 IN FY 2003-04 AND $121,927 IN FY 2004-05 FOR PROFESSIONAL POSITIONS THAT ARE AT OR BEYOND THE MAXIMUM PAY LEVELS ESTABLISHED IN UCCSN SALARY SCALES. THE RECOMMENDATION PLACES PARTIAL LIMITS ON STATE FUNDING PROVIDED FOR PROFESSIONAL SALARIES AT OR BEYOND THE MAXIMUM SALARY SCALE LEVEL.
THE SUBCOMMITTEE VOTED TO DEFER BUDGETED MERIT PAY FOR THE FIRST SIX MONTHS OF FY 2003-04 RESULTING IN A GENERAL FUND SAVINGS OF $3.23 MILLION.
M-501 - FEDERAL ANIMAL WELFARE ACT
THE SUBCOMMITTEE APPROVED THE GOVERNOR’S RECOMMENDATION FOR A GENERAL FUND APPROPRIATION OF $110,000 TO THE SCHOOL OF MEDICINE IN FY 2004-05 TO RESTORE THE DIRECTOR OF LABORATORY ANIMAL MEDICINE POSITION TO FULL-TIME AND TO FUND THE ASSOCIATE DIRECTOR’S POSITION.
M-580 - SAFE DRINKING WATER ACT
THE SUBCOMMITTEE CONCURS WITH THE GOVERNOR’S RECOMMENDED FUNDING OF $117,026 IN FY 2003-04 AND $5,490 IN FY 2004-05, PRIMARILY TO PURCHASE EQUIPMENT NEEDED TO COMPLY WITH NEW EPA PUBLIC WATER SYSTEM REGULATIONS ASSOCIATED WITH RADIUM 228 AND URANIUM.
E-225 - NATIONAL DIRECT STUDENT LOAN
THE SUBCOMMITTEE APPROVED GENERAL FUND APPROPRIATIONS OF $3,854 PER YEAR TO THE NATIONAL DIRECT STUDENT LOAN PROGRAM (NDSL) TO RESTORE FUNDING TO FY 2002‑03 WORK PROGRAM LEVELS.
STUDENT FEES
THE SUBCOMMITTEE CONCURS WITH THE TUITION AND FEE INCREASES APPROVED BY THE BOARD OF REGENTS, RANGING FROM 1.7 PERCENT TO 9.4 PERCENT, AND ENDORSES THE REGENTS’ PLAN THAT DIRECTS SIGNIFICANT PORTIONS OF THE ANNUAL INCREASES TO THE UCCSN CAPITAL AND GENERAL IMPROVEMENT FEE FUND AND STUDENT ACCESS FUND. THE SUBCOMMITTEE APPROVED ADJUSTMENTS AND CORRECTIONS TO NON-RESIDENT STUDENT REVENUE ESTIMATES, WHICH WOULD RESULT IN GENERAL FUND SAVINGS OF $1.25 MILLION IN FY 2003-04 AND $997,124 IN FY 2004-05 ($2.24 MILLION FOR THE BIENNIUM).
STUDENT FEE AUTHORIZATION ACT LANGUAGE
THE SUBCOMMITTEE APPROVED MODIFICATIONS TO THE AUTHORIZATIONS ACT BACK LANGUAGE TO ALLOW AUGMENTATIONS OF REGISTRATION FEE REVENUES WITHOUT IFC APPROVAL IF THE ADDITIONAL REVENUES ARE USED SOLELY FOR INSTRUCTIONAL COSTS RELATED TO PROVIDING ADDITIONAL CLASS SECTIONS. HOWEVER, PRIOR IFC APPROVAL WOULD STILL BE REQUIRED TO AUGMENT NON‑RESIDENT TUITION REVENUES FOR ANY PURPOSE. ADDITIONALLY, IFC APPROVAL WOULD BE REQUIRED TO AUGMENT RESIDENT FEE REVENUES NOT UTILIZED FOR ADDITIONAL CLASS SECTIONS.
UN-FUNDED ENHANCEMENT DECISION ITEMS
THE GOVERNOR’S ENHANCEMENT RECOMMENDATIONS DID NOT INCLUDE ANY OF THE REGENTS’ 15 "ITEMS FOR SPECIAL CONSIDERATION” TOTALING $66.65 MILLION. HOWEVER, THE SUBCOMMITTEE CONSIDERED OR TOOK ACTION ON SEVERAL OF THE UN-FUNDED ITEMS AS FOLLOWS:
ITEM #1 - TAXONOMY: AS DIRECTED BY A LETTER OF INTENT FROM THE 2001 LEGISLATURE, THE UCCSN DEVELOPED A REVISED COURSE COST CLASSIFICATION SYSTEM (TAXONOMY). THE IFC AND THE SUBCOMMITTEE ADVISED THE UCCSN THAT THE TAXONOMY SHOULD BE COST-NEUTRAL. HOWEVER, THE PROPOSAL SUBMITTED BY THE UCCSN WOULD HAVE COST $4.47 MILLION FOR THE BIENNIUM. RECOGNIZING THE FISCAL DIFFICULTIES FACED BY THE STATE, THE UCCSN WITHDREW ITS FUNDING REQUEST. LEFT UNCHANGED, THE CLASSIFICATION OF COURSE COSTS WILL CONTINUE TO INCLUDE INCONSISTENCIES. THE SUBCOMMITTEE APPROVED A NEW LETTER OF INTENT ADVISING THE UCCSN TO DEVELOP A COST-NEUTRAL, CONSISTENT, COURSE TAXONOMY TO BE USED IN THE PREPARATION OF THE BUDGETS FOR THE 2005-07 BIENNIUM.
ITEM #2, DENTAL SCHOOL EQUIPMENT: UCCSN SOUGHT $4.7 MILLION IN DENTAL EQUIPMENT FUNDING IN FY 2003-04. THE LARGER TICKET ITEMS INCLUDED $1.6 MILLION FOR DENTAL/OPERATORY CHAIRS, $180,000 FOR STERILIZERS AND $485,000 FOR X-RAY EQUIPMENT. THE REQUEST ALSO INCLUDED $450,000 FOR CLASSROOM COMPUTER TERMINALS AND LAPTOPS. AS A RESULT OF THE SUBCOMMITTEE’S PREVIOUS ACTIONS, $3.23 MILLION IN GENERAL FUND SAVINGS WAS AVAILABLE, WHICH THE SUBCOMMITTEE WISHES TO USE TO PURCHASE DENTAL SCHOOL EQUIPMENT.
ITEM #8, ATHLETICS, FEE WAIVERS AND GENDER EQUITY: THE UCCSN REQUESTED $1.73 MILLION IN EACH YEAR OF THE BIENNIUM TO ADOPT FEE WAIVERS FOR STUDENT ATHLETES THAT WOULD PERMIT ATHLETIC DEPARTMENTS TO FURTHER ADDRESS COMPLIANCE WITH STUDENT ATHLETE PARTICIPATION RATES, AND TO IMPROVE GENDER-EQUITY COMPLIANCE IN CRITICAL AREAS. THE SUBCOMMITTEE TOOK NO ACTION ON THIS ISSUE. HOWEVER, DURING THE CLOSING HEARING, THE UCCSN INDICATED A WILLINGNESS TO COVER FEE WAIVERS AT THE UNIVERSITIES AND CCSN DURING THE 2003-05 BIENNIUM UNDER THE 84.45 AND 84.09 PERCENT FORMULA SCENARIOS WITH NO ADDITIONAL FUNDING, WITH THE UNDERSTANDING THAT IN FUTURE BIENNIA, THE LEGISLATURE WOULD SUPPORT THE FEE WAIVER FOR GENDER EQUITY. THE SUBCOMMITTEE INDICATED IT COULD NOT GUARANTEE THE ACTION OF FUTURE LEGISLATURES.
ITEM #15 - NURSING ENROLLMENT EXPANSION: THE UCCSN’S INITIAL PLAN TO DOUBLE NURSING PROGRAM CAPACITY WAS SUBMITTED PURSUANT TO THE PROVISIONS OF ASSEMBLY BILL 378 OF THE 2001 SESSION AT A COST OF APPROXIMATELY $12.1 MILLION DURING THE 2003-05 BIENNIUM. A REDUCED‑COST PLAN WAS DEVELOPED TO ADDRESS NEVADA’S NURSING SHORTAGE AND TO INCREASE NURSING SCHOOL ENROLLMENT. THE REVISED PLAN RESULTED FROM MEETINGS INITIATED BY ASSEMBLY LEADERSHIP THAT INCLUDED REPRESENTATIVES OF NEVADA’S HOSPITALS AND NURSES AND THE UCCSN. UNDER THE REVISED PLAN, NURSING PROGRAM ENROLLMENT WOULD INCREASE FROM 686 STUDENTS IN FY 2002-03 TO 1,326 STUDENTS IN FY 2004-05.
UCCSN INTRODUCED REFINEMENTS TO THE REVISED PLAN THAT WERE ULTIMATELY APPROVED BY THE SUBCOMMITTEE. UNDER THE APPROVED PLAN, THE 84.45 PERCENT AND 84.09 PERCENT FORMULA LEVELS FUNDED BY THE SUBCOMMITTEE WOULD ALLOW THE LARGER CAMPUSES TO ABSORB HIGHER NURSING ENROLLMENTS. THE HOSPITAL ASSOCIATION AGREED TO FUND $559,473 IN EQUIPMENT COSTS FOR THE BIENNIUM. BASED ON THE UCCSN RISK MANAGER’S RESERVE ASSESSMENT, WORKER’S COMPENSATION RATES WERE REDUCED TO PROVIDE ONE-TIME GENERAL FUND SAVINGS OF $1.37 MILLION FOR THE BIENNIUM THAT WERE DIRECTED TO THE NURSING PLAN. GENERAL FUND APPROPRIATIONS OF $454,612 WERE ADDED THROUGH SAVINGS REALIZED FROM OTHER ADJUSTMENTS. THE PLAN ALSO ENVISIONED RECEIPT OF $300,000 IN TRUST FUND FOR PUBLIC HEALTH INTEREST REVENUE DISTRIBUTIONS TO SUPPORT THE NURSING LOAN REVOLVING FUND.
THE SUBCOMMITTEE APPROVED THE REVISED NURSING ENROLLMENT EXPANSION PLAN, WITH THE UNDERSTANDING THAT SUMMER SESSION STUDENT FTES WILL BE INCORPORATED INTO FORMULA CALCULATIONS FOR THE 2005‑07 BIENNIUM.
OTHER CLOSING ITEMS
THE SUBCOMMITTEE APPROVED THE ADDITIONAL INITIATIVES LISTED BELOW THAT WERE NOT INCLUDED IN THE EXECUTIVE BUDGET. THE ITEMS ARE FUNDED THROUGH GENERAL FUND SAVINGS REALIZED IN OTHER AREAS OF THE UCCSN BUDGETS:
1. PEDIATRICS DIABETES AND ENDOCRINOLOGY CENTER: THE SUBCOMMITTEE ADDED GENERAL FUND APPROPRIATIONS OF $566,508 IN EACH YEAR OF THE BIENNIUM TO SUPPORT THE PEDIATRIC DIABETES AND ENDOCRINOLOGY CENTER. THE CENTER PROVIDES MULTI‑DISCIPLINARY CLINICAL SERVICES TO CHILDREN WITH DIABETES AND OTHER ENDOCRINE DISORDERS.
2. CLIMATOLOGIST: THE SUBCOMMITTEE ADDED GENERAL FUND APPROPRIATIONS OF $36,166 IN EACH YEAR OF THE BIENNIUM TO RESTORE FUNDING FOR THE STATE CLIMATOLOGIST POSITION THAT WAS RECOMMENDED FOR ELIMINATION BY THE GOVERNOR IN THE CONSERVATION AND NATURAL RESOURCES BUDGET ACCOUNT. UCCSN POINTS OUT THAT THE STATE CLIMATOLOGIST PERFORMS A NUMBER OF IMPORTANT FUNCTIONS, NOT THE LEAST OF WHICH IS THE COLLECTION OF WEATHER-RELATED DATA FROM LOCATIONS ACROSS THE STATE.
3. SMALL BUSINESS DEVELOPMENT CENTER: THE SUBCOMMITTEE ADDED GENERAL FUND APPROPRIATIONS OF $125,000 PER YEAR TO SUPPORT THE OPERATIONS OF THE SMALL BUSINESS DEVELOPMENT CENTER.
4. COOPERATIVE EXTENSION EDUCATOR, MINERAL COUNTY: MINERAL COUNTY BECAME PART OF THE COOPERATIVE EXTENSION IN FY 2002-03, MARKING THE FIRST TIME IN THE EXTENSION’S HISTORY THAT EVERY COUNTY IS PART OF THE EXTENSION. THE SUBCOMMITTEE ADDED $78,729 IN FY 2003‑04 AND $80,790 IN FY 2004‑05 TO FUND A NEW EXTENSION EDUCATOR FOR MINERAL COUNTY.
SUMMARY: INDEPENDENT OF THE ESTATE TAX FUNDING SHIFT, THE SUBCOMMITTEE’S ACTIONS RESULTED IN GENERAL FUND SAVINGS OF $133,312 FOR THE BIENNIUM. HOWEVER, IT IS IMPORTANT TO NOTE THAT THE SUBCOMMITTEE MADE MAJOR REVISIONS TO THE GOVERNOR’S BUDGET WITHIN THE CONFINES OF THE TOTAL GENERAL FUND AMOUNTS RECOMMENDED BY THE GOVERNOR. THE SUBCOMMITTEE FUNDED A NURSING PLAN THAT WILL NEARLY DOUBLE NURSING ENROLLMENTS BY THE END OF THE BIENNIUM. FUNDING WAS PROVIDED FOR $3.23 MILLION IN DENTAL SCHOOL EQUIPMENT NEEDS. NEARLY $7.3 MILLION IN GENERAL FUND ERRORS WERE CORRECTED. THE PEDIATRICS DIABETES AND ENDOCRINOLOGY CENTER RECEIVED $1.13 MILLION IN GENERAL FUND APPROPRIATIONS FOR THE BIENNIUM. FUNDING WAS ALSO ADDED TO RETAIN THE STATE CLIMATOLOGIST, ADD AN EXTENSION EDUCATOR IN MINERAL COUNTY AND ENHANCE SUPPORT FOR THE SMALL BUSINESS DEVELOPMENT CENTER. FINALLY, WHILE FORMULA PERCENTAGES DIPPED AS A RESULT OF HIGHER ENROLLMENT PROJECTIONS, THE SUBCOMMITTEE SUSTAINED THE TOTAL FORMULA AMOUNTS RECOMMENDED BY THE GOVERNOR.
THE GENERAL FUND SAVINGS ESTIMATE ASSUMES FULL RECEIPT OF THE ESTATE TAX REVENUES REFLECTED IN THE GOVERNOR’S BUDGET. HOWEVER, IF THE UCCSN ESTATE TAX PROJECTIONS ARE CORRECT, A GENERAL FUND SHORTFALL COULD RESULT.
Chairman Arberry thanked Mr. Burke and the Committee members on the UCC Higher Education Subcommittee for their work on the University and Community College System of Nevada budget.
Vice Chairwoman Giunchigliani asked what dollar amount was funded from the Estate Tax Endowment to the UCCSN budget so the Committee could anticipate the deficit they would have to appropriate from the General Fund next session.
Mr. Burke said that the General Fund replaced an adjusted amount of $89.2 million in estate taxes. Assemblyman Goldwater said he thought that was an endowment and asked if it had been completely expended.
Mr. Burke said the estate tax passed into the Estate Tax Endowment Account and they projected using some of that principal balance now in lieu of some of the revenues. By the end of the biennium staff projected that the Estate Tax Endowment Account would be totally exhausted. Ms. Giunchigliani said that was unfortunate and that the state would have to deal with a deficit of about $92 million.
Ms. Giunchigliani said she had requested an audit with regard to the misuse of funds at the Fire Science Academy in Carlin and noted that the dental school funding was accomplished by deferring faculty merits, which she said was unfortunate. She asked for comment.
Mr. Stevens said that this was the first time the Fire Services Academy budget had been included in the University’s operating budget. He noted that equipment for the dental school’s recommended budget had increased by about $3.2 million.
Ms. Giunchigliani said she requested that when the Committee moved to close the UCCSN budget they omit the Fire Services Academy portion for further discussion. She noted there were funding and expenditure issues regarding the Academy and she was uncomfortable including it in the UCCSN budget. Ms. Giunchigliani disclosed that she worked for UCCSN but was not affected by the budget.
ASSEMBLYWOMAN CHOWNING MOVED TO ACCEPT THE CLOSING REPORT FOR THE UNIVERSITY AND COMMUNITY COLLEGE SYSTEM OF NEVADA, UCCSN SUMMARY.
ASSEMBLYMAN PARKS SECONDED THE MOTION.
Mr. Hettrick said because of the concerns regarding future funding for the UCCSN he was unable to support the budget with its current increases and would have to vote no.
Ms. Giunchigliani asked if the motion included funding for the Fire Services Academy and said if that were the case she would not be able to pass the budget at this time.
Mrs. Chowning confirmed that the motion included the Fire Academy.
THE MOTION FAILED WITH ASSEMBLYMEN MARVEL AND HETTRICK, AND ASSEMBLYWOMAN GIUNCHIGLIANI VOTING NO. (Assemblymen Beers, Griffin, and Goldwater, and Assemblywoman Gibbons were not present for the vote.)
Chairman Arberry noted there were not enough members present to carry the motion.
ASSEMBLYWOMAN GIUNCHIGLIANI MADE A MOTION TO ACCEPT THE BUDGET CLOSING REPORT FOR THE UNIVERSITY AND COMMUNITY COLLEGE SYSTEM OF NEVADA, WITHOUT THE FIRE ACADEMY AND TO SET THAT ITEM ASIDE FOR DISCUSSION.
ASSEMBLYMAN PARKS SECONDED THE MOTION.
THE MOTION CARRIED WITH ASSEMBLYMEN MARVEL AND HETTRICK VOTING NO. (Assemblymen Beers, Griffin, and Goldwater, and Assemblywoman Gibbons were not present for the vote.)
BUDGET CLOSED.
********
Vonne Chowning, Chairman, Assembly Joint Subcommittee on General Government, presented the following closing report on the Judicial Branch:
THE JOINT SUBCOMMITTEE REVIEWED 11 BUDGETS OF THE JUDICIAL BRANCH. CONTINGENT UPON PASSAGE OF ASSEMBLY BILL 29, THE RECOMMENDATIONS OF THE SUBCOMMITTEE DECREASE THE GENERAL FUND SUPPORT IN THESE BUDGETS IN THE AMOUNT OF $2.2 MILLION IN FY 2004 AND $1.6 MILLION IN FY 2005.
THE FOLLOWING HIGHLIGHTS THE MORE SIGNIFICANT CLOSING RECOMMENDATIONS OF THE SUBCOMMITTEE:
PENDING LEGISLATION THAT CURRENTLY AFFECTS THE ACCOUNTS OF THE JUDICIAL BRANCH ARE DISCUSSED IN GENERAL AND ARE NOT SEPARATELY DISCUSSED WITHIN INDIVIDUAL BUDGET ACCOUNTS.
· ASSEMBLY BILL 29 PROVIDES FOR AN ADDITIONAL $15 ADMINISTRATIVE ASSESSMENT TO BE COLLECTED IN CERTAIN CASES INVOLVING MISDEMEANORS WHERE THE DEFENDANT IS FOUND GUILTY OR PLEADS GUILTY. FIVE DOLLARS OF THIS ASSESSMENT IS TO BE ALLOTTED TO SPECIALTY COURTS VIA THE OFFICE OF THE COURT ADMINISTRATOR, AND $10 OF THIS ASSESSMENT INCREASES EXISTING ADMINISTRATIVE ASSESSMENTS PER NRS 176.059, WHICH PROVIDES A 51 PERCENT DISTRIBUTION TO THE JUDICIAL BRANCH AND A 49 PERCENT DISTRIBUTION TO THE EXECUTIVE BRANCH. LEGISLATION IS CURRENTLY IN THE ASSEMBLY WAYS AND MEANS COMMITTEE. THE EFFECT OF PASSAGE OF THIS BILL IS CURRENTLY REFLECTED IN JUDICIAL BUDGET ACCOUNTS SUPPORTED BY COURT ADMINISTRATIVE ASSESSMENTS AS DECISION UNIT E-900. IF LEGISLATION IS NOT PASSED, ADJUSTMENTS WILL BE NECESSARY IN THESE BUDGET ACCOUNTS.
IN THE EVENT A.B. 29 IS APPROVED, THE SUBCOMMITTEE RECOMMENDS FUNDING SIX NEW POSITIONS, RESTORING JUDICIAL EDUCATION PROGRAMS, INCREASING THE IMPLEMENTATION OF STATEWIDE TECHNOLOGY PROJECTS, AND RESTORING RESERVES.
· SENATE BILL 106, PROPOSES TO IMPOSE AN ADDITIONAL FILING FEE OF $30 FOR EACH ADDITIONAL PARTY IN MULTI-PARTY CASES. OF THIS FEE, $10 IS FOR SUPPORT AND MAINTENANCE OF CASE MANAGEMENT SYSTEMS, STATEWIDE TECHNOLOGY PROJECTS, AND DISTRIBUTION TO THE COURTS FOR LOCAL TECHNOLOGY PROJECTS. AN INCREASE OF $5 IS FOR THE PAYMENT FOR THE SERVICES OF RETIRED JUSTICES AND RETIRED DISTRICT JUDGES. THIS LEGISLATION IS CURRENTLY IN THE SENATE FINANCE COMMITTEE. THE EFFECT OF PASSAGE OF THIS BILL IS CURRENTLY REFLECTED IN THE UNIFORM SYSTEM OF JUDICIAL RECORDS BUDGET ACCOUNT AND THE RETIRED JUSTICE DUTY FUND. IF S.B. 106 IS NOT PASSED, ADJUSTMENTS WILL BE NECESSARY IN THESE BUDGET ACCOUNTS.
SUPREME COURT (101-1494)
THE SUBCOMMITTEE CONCURRED WITH THE COURT’S REQUEST TO OFFSET THE GENERAL FUND APPROPRIATION BY $1.4 MILLION BASED ON PASSAGE OF A.B. 29.
THE SUBCOMMITTEE RECOMMENDS APPROVAL OF FOUR NEW POSITIONS TO PROVIDE TECHNOLOGY SUPPORT FOR THE SUPREME COURT; A CASE MANAGEMENT SYSTEM PROGRAMMER; A PROGRAMMER INFORMATION SPECIALIST (RECLASSIFIED FROM AN EXISTING CLERICAL POSITION); A COURT BUSINESS SYSTEMS ANALYST; AND A COURT INTERNET/INTRANET ANALYST.
THE SUBCOMMITTEE RECOMMENDS APPROVAL TO DEFER COSTS ASSOCIATED WITH THE COURT’S MOVE INTO THE REGIONAL JUSTICE CENTER FROM AN ANTICIPATED DATE OF JULY 2003 TO JULY 2004. IN CONJUNCTION WITH THE RECOMMENDATION BY THE COURTS, DEFERRAL OF THIS MOVE TO JULY 2004 REDUCES THE GENERAL FUND APPROPRIATION BY $473,865 OVER THE BIENNIUM.
THE SUBCOMMITTEE RECOMMENDS A GENERAL FUND REDUCTION OF $117,931 OVER THE BIENNIUM TO REPLACE TECHNOLOGICAL EQUIPMENT AND ERGONOMIC FURNISHINGS.
ADDITIONALLY, THE SUBCOMMITTEE CONCURS WITH THE COURT’S REQUEST TO RECLASSIFY TEN JUSTICE’S JUDICIAL ASSISTANTS TO JUDICIAL CHAMBERS ADMINISTRATORS IN ORDER TO ALIGN THE SALARIES WITH POSITIONS IN THE TWO LARGEST JUDICIAL DISTRICTS.
ADMINISTRATIVE OFFICE OF THE COURTS (101-1483)
CONTINGENT UPON PASSAGE OF A.B. 29, THE SUBCOMMITTEE RECOMMENDS THE TRANSFER OF THE JUDICIAL BRANCH AUDITOR POSITION REQUESTED WITH GENERAL FUNDS IN THE PLANNING AND ANALYSIS BUDGET TO THIS BUDGET ACCOUNT FUNDED WITH COURT ASSESSMENTS.
THE SUBCOMMITTEE RECOMMENDS THE REDUCTION OF ERGONOMIC FURNISHINGS TO $539 PER FTE, CONSISTENT WITH FUNDING IN THE SUPREME COURT BUDGET ACCOUNT.
DIVISION OF PLANNING AND ANALYSIS (101-1484)
THE SUBCOMMITTEE RECOMMENDS THE APPROVAL OF AN ASSISTANT COURT RESEARCH ANALYST TO ASSIST THE SENIOR COURT RESEARCH ANALYST IN COLLECTING DATA FOR THE CRITICAL EXPANSION OF THE UNIFORM SYSTEM OF JUDICIAL RECORDS. CONTINGENT UPON PASSAGE OF A.B. 29, THE SUBCOMMITTEE RECOMMENDS THE TRANSFER OF THE JUDICIAL BRANCH AUDITOR POSITION FROM THIS BUDGET ACCOUNT TO THE AOC BUDGET ACCOUNT, AS THE REQUESTED POSITION WOULD SUPPORT THE ENTIRE COURT SYSTEM.
THE SUBCOMMITTEE RECOMMENDS THE REDUCTION OF ERGONOMIC FURNISHINGS TO $539 PER FTE, CONSISTENT WITH FUNDING IN THE SUPREME COURT BUDGET ACCOUNT.
SUPREME COURT RURAL DRUG COURT (101-1495)
CONTINGENT UPON PASSAGE OF A.B. 29, THE SUBCOMMITTEE RECOMMENDS CONTINUED SUPPORT FOR THE MENTAL HEALTH DRUG COURT TO REMAIN IN THE DEPARTMENT OF HUMAN RESOURCES ADMINISTERED BY THE DIVISION OF MENTAL HEALTH/DEVELOPMENTAL SERVICES, AND SUPPORT OF THE RURAL DRUG COURT AND DRUG COURTS IN WASHOE AND CLARK COUNTIES BE MAINTAINED WITHIN THIS BUDGET ACCOUNT ADMINISTERED BY THE JUDICIAL BRANCH.
THE SUBCOMMITTEE RECOMMENDS CONTINUED FUNDING OF THE RURAL DRUG COURT IN THE AMOUNT OF $300,000 OVER THE BIENNIUM AND CONTINUED FUNDING OF THE DRUG COURTS IN WASHOE AND CLARK COUNTIES (TRANSFERRED FROM PAROLE AND PROBATION BUDGET ACCOUNT 3740) IN THE AMOUNT OF $1,050,000 OVER THE BIENNIUM WITH COURT ASSESSMENTS IN LIEU OF GENERAL FUNDS. ADDITIONALLY, THE SUBCOMMITTEE PROVIDED A SIX-MONTH FUNDING START UP OF $337,500 IN FY 2004 FROM THE GENERAL FUND FOR THE DRUG COURTS IN THE JUDICIAL BUDGET. COURT ASSESSMENTS RECEIVED IN EXCESS OF CURRENT OBLIGATIONS WERE APPROVED BY THE SUBCOMMITTEE FOR EXPANSION OF CURRENT DRUG COURT PROGRAMS AND IMPLEMENTATION OF NEW DRUG COURT PROGRAMS INTO THE RURAL AREAS. FUNDING FOR THESE PROGRAMS IS TO BE SEPARATELY DESIGNATED BY REVENUE AND EXPENDITURE CATEGORY.
OTHER JUDICIAL BUDGET ACCOUNTS
THE SUBCOMMITTEE ALSO REVIEWED THE BUDGETS FOR THE JUDICIAL DISTRICT JUDGE/SURVIVING SPOUSE PENSION; UNIFORM SYSTEM OF JUDICIAL RECORDS; JUDICIAL EDUCATION; DISTRICT JUDGES’ TRAVEL; RETIRED JUSTICE DUTY FUND; LAW LIBRARY; AND JUDICIAL DISCIPLINE. THE SUBCOMMITTEE RECOMMENDS THAT THESE ACCOUNTS BE CLOSED WITH MINOR TECHNICAL ADJUSTMENTS.
Mrs. Chowning reiterated that funding for the special courts was contingent upon passage of Assembly Bill 29 and still left them $1.8 million short to fulfill all of their goals. She noted that if the Committee wished to fund the $1.8 million then the Committee needed to decide how to do that. She added that was not in the report.
Chairman Arberry asked Mrs. Chowning to repeat her explanation of the $1.8 million shortage.
Mrs. Chowning said to expand the drug courts into the rural areas and to establish the mental health court in Clark County, the passage of A.B. 29 would raise approximately $5 million. Additionally, the Committee had also given the specialty courts $337,000 start-up funding from the General Fund. However, to accomplish all of the goals that the courts had established, as well as funding the dollars that the counties would no longer be paying and funding the loss of federal dollars, the courts stated that they needed an additional $2.6 million. She noted that $2.6 million was not recommended in the closing report and it would be up to the Committee to decide if and how to allocate additional funding. She said the Subcommittee suggested that the Committee could amend A.B. 29 and raise the assessment increase from $5 to $6 or $7.
Mrs. Chowning thanked Ms. Brand and the other members of the Subcommittee.
ASSEMBLYWOMAN GIUNCHIGLIANI MOVED TO APPROVE THE SUBCOMMITTEE ON GENERAL GOVERNMENT CLOSING REPORT ON THE JUDICIAL BRANCH.
ASSEMBLYMAN PARKS SECONDED THE MOTION.
THE MOTION CARRIED. (Assemblyman Beers and Assemblywoman Gibbons were not present for the vote.)
BUDGET CLOSED.
********
David Parks, Assembly District No. 41, introduced himself and Tracy Raxter, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau. The Assembly Joint Subcommittee on Public Safety, Natural Resources, and Transportation closing report on the Department of Corrections was read as follows:
THE JOINT SUBCOMMITTEE ON PUBLIC SAFETY, NATURAL RESOURCES AND TRANSPORTATION DEVELOPED RECOMMENDATIONS FOR 16 BUDGETS WITHIN THE DEPARTMENT OF CORRECTIONS. THE SUBCOMMITTEE’S RECOMMENDATIONS RESULT IN A GENERAL FUND SAVINGS OF APPROXIMATELY $2.3 MILLION IN FY 2003-04 AND AN ADDITIONAL GENERAL FUND COST OF APPROXIMATELY $2.5 MILLION IN FY 2004-05 AS COMPARED TO THE GOVERNOR’S RECOMMENDED BUDGET.
THE DEPARTMENT’S BUDGET IS PRIMARILY DRIVEN BY THE PROJECTED NUMBER OF INMATES TO BE HOUSED. THE EXECUTIVE BUDGET PROVIDED FUNDING TO HOUSE AN AVERAGE OF 10,397 INMATES IN FY 2003-04 AND 10,607 INMATES IN FY 2004-05. THE BUDGET, AS MODIFIED BY THE SUBCOMMITTEE, WILL PROVIDE FUNDING TO HOUSE AN AVERAGE OF 10,510 INMATES IN FY 2003-04 AND 10,765 INMATES IN FY 2004-05, PLUS AN ADDITIONAL 421 INMATES FROM THE STATES OF WYOMING AND WASHINGTON. THIS BUDGET MODIFICATION WAS THE RESULT OF AN UPDATED PROJECTION OF THE INMATE POPULATION BY THE INSTITUTE ON CRIME, JUSTICE AND CORRECTIONS AT THE GEORGE WASHINGTON UNIVERSITY IN MARCH 2003, AND THE DEPARTMENT’S PROPOSAL TO HOUSE INMATES FROM WYOMING AND WASHINGTON.
INFLATIONARY INCREASES FOR FOOD COSTS
THE EXECUTIVE BUDGET INCLUDES ADDITIONAL FUNDING IN EACH YEAR OF THE BIENNIUM FOR INFLATIONARY INCREASES IN FOOD COSTS. THE INFLATIONARY INCREASES IN FOOD AS RECOMMENDED BY THE GOVERNOR FOR ALL DEPARTMENT OF CORRECTIONS FACILITIES TOTAL $297,567 AND $449,688 IN FY 2003-04 AND FY 2004-05, RESPECTIVELY. THE SENATE MEMBERS OF THE SUBCOMMITTEE CONCURRED WITH THE GOVERNOR’S RECOMMENDATION TO PROVIDE FUNDING FOR INFLATIONARY INCREASES IN FOOD COSTS. THE ASSEMBLY MEMBERS OF THE SUBCOMMITTEE WITHHELD A VOTE ON THIS ITEM FOR THE INSTITUTIONAL AND CONSERVATION CAMP BUDGETS, WITH THE EXCEPTION OF THE HIGH DESERT STATE PRISON BUDGET, IN WHICH INFLATIONARY INCREASES IN FOOD COSTS WERE APPROVED.
HIGH DESERT STATE PRISON (101-3762) NDOC-71
THE SUBCOMMITTEE RECOMMENDS APPROVAL TO HOUSE 421 INMATES FROM THE STATES OF WYOMING AND WASHINGTON FOR BOTH YEARS OF THE 2003-05 BIENNIUM. THE DEPARTMENT INDICATES THAT HOUSING OUT-OF-STATE INMATES HAS THE POTENTIAL OF GENERATING $6.2 MILLION ANNUALLY IN GENERAL FUND SAVINGS FOR THE DEPARTMENT IF 421 INMATES FROM WYOMING AND WASHINGTON ARE HOUSED FOR THE ENTIRE 2003-05 BIENNIUM. THE BUDGET, AS MODIFIED BY THE SUBCOMMITTEE, ONLY INCLUDES A GENERAL FUND SAVINGS OF $1.8 MILLION IN FY 2003-04 TO REFLECT THE CONTINUED HOUSING OF EXISTING WYOMING INMATES IN THE DEPARTMENT’S FACILITIES. THIS RECOMMENDATION IS DUE TO THE FACT THAT THE ACTUAL NUMBER OF OUT-OF-STATE INMATES THAT WILL BE HOUSED IN NEVADA DURING THE 2003‑05 BIENNIUM IS SUBJECT TO THE DISCRETION OF THE STATES OF WYOMING AND WASHINGTON, UP TO THE MAXIMUM AMOUNT PROVIDED FOR IN THE CONTRACTS WITH THOSE STATES. ANY REVENUE IN EXCESS OF THE EXPENSES INCURRED WITH THE CONTRACT WITH THE STATE OF WASHINGTON SHOULD BE PLACED IN RESERVE FOR REVERSION TO THE GENERAL FUND.
CASA GRANDE TRANSITION HOUSING (101-3760) NDOC-38
THE SUBCOMMITTEE DID NOT SUPPORT THE GOVERNOR’S RECOMMENDATION FOR A 436-BED TRANSITION HOUSING FACILITY, WHICH INCLUDED PARTNERING WITH A NON-PROFIT ORGANIZATION TO DEVELOP AND CONSTRUCT THE FACILITY UTILIZING LOW-INCOME HOUSING TAX CREDITS AND TO CONTRACT WITH THE NON-PROFIT ORGANIZATION TO OPERATE THE FACILITY. THE SUBCOMMITTEE RECOMMENDS APPROVAL OF A 200-BED TRANSITION HOUSING FACILITY IN SOUTHERN NEVADA TO BE OPERATED BY THE DEPARTMENT, BEGINNING IN OCTOBER 2004. THE SUBCOMMITTEE RECOMMENDS THE DEPARTMENT LEASE A FACILITY THAT WOULD PROVIDE HOUSING FOR 200 INMATES BEGINNING IN OCTOBER 2004, WITH THE POSSIBILITY OF HOUSING AN ADDITIONAL 200 INMATES BEGINNING IN THE 2005-07 BIENNIUM. THE SUBCOMMITTEE EXPRESSED CONCERN ABOUT THE DEPARTMENT’S TRANSITION HOUSING PLAN; THEREFORE, THE SUBCOMMITTEE RECOMMENDS THAT FUNDING OF $2,163,960 BE ALLOCATED TO THE INTERIM FINANCE COMMITTEE, WITH A LETTER OF INTENT DIRECTING THE DEPARTMENT TO REQUEST FROM THE INTERIM FINANCE COMMITTEE A FUNDING ALLOCATION TO OPERATE THE TRANSITION HOUSING FACILITY UPON SUBMITTAL OF A COMPREHENSIVE TRANSITION HOUSING PLAN.
PRISON MEDICAL CARE (101-3706) NDOC-13
THE SUBCOMMITTEE CONCURS WITH THE GOVERNOR’S RECOMMENDATION TO RECLASSIFY A TOTAL OF 52 FORENSIC SPECIALIST POSITIONS IN THE MEDICAL DIVISION TO THE CORRECTIONAL OFFICER SERIES AND TRANSFER THE POSITIONS TO THE INDIVIDUAL INSTITUTIONAL BUDGET ACCOUNTS. THE RECLASSIFICATION PROVIDES FOR A TWO‑GRADE SALARY INCREASE FOR THESE POSITIONS, WHICH DID NOT RECEIVE A SIMILAR INCREASE APPROVED BY THE 1999 AND 2001 LEGISLATURES FOR CUSTODY STAFF POSITIONS OF THE DEPARTMENT. CONCURRENCE WITH THE GOVERNOR’S RECOMMENDATION WAS BASED ON INFORMATION PROVIDED BY THE DEPARTMENT INDICATING THAT THE DUTIES OF THE FORENSIC SPECIALISTS ARE CURRENTLY ALMOST TOTALLY CUSTODY-RELATED, AND THEIR ORGANIZATIONAL REPORTING STRUCTURE IS TO OTHER CUSTODY POSITIONS AND NOT MEDICAL STAFF.
THE SUBCOMMITTEE DID NOT CONCUR WITH THE GOVERNOR’S RECOMMENDATION TO CONTINUE THE USE OF CONTRACTED MEDICAL SERVICES IN ELY. ALTHOUGH THE CURRENT CONTRACT EXPIRES IN JUNE 2003, THE GOVERNOR’S BUDGET RECOMMENDATION DID NOT ALLOW FOR POTENTIAL MEDICAL INFLATIONARY INCREASES IN THE CONTRACT COST. THE DEPARTMENT PROVIDED INFORMATION INDICATING AN ADDITIONAL COST OF $1.3 MILLION FOR THE 2003-05 BIENNIUM OVER THE RECOMMENDED AMOUNTS INCLUDED IN THE EXECUTIVE BUDGET TO CONTINUE PRIVATIZATION OF ELY MEDICAL SERVICES, BASED ON THE SUPERIOR BID RECEIVED IN RESPONSE TO A REQUEST FOR PROPOSAL ISSUED BY THE STATE PURCHASING DIVISION. BASED ON THE INCREASED FUNDING REQUIRED TO CONTINUE WITH A PRIVATE CONTRACTOR, THE SUBCOMMITTEE RECOMMENDED THAT ELY MEDICAL SERVICES BE PROVIDED DIRECTLY BY THE DEPARTMENT AT AN ADDITIONAL COST OF APPROXIMATELY $200,000 OVER THE AMOUNT RECOMMENDED BY THE GOVERNOR DURING THE 2003-05 BIENNIUM. IN RESPONSE TO THE SUBCOMMITTEE’S CONCERNS, THE DEPARTMENT INDICATED THAT A MAJORITY OF EXISTING CONTRACT STAFF WOULD BE WILLING TO ACCEPT STATE EMPLOYMENT IN SIMILAR MEDICAL POSITIONS AT ELY.
THE SUBCOMMITTEE APPROVED THE GOVERNOR’S RECOMMENDATION TO ELIMINATE 22 FTE POSITIONS, INCLUDING A REGISTERED DIETITIAN, 3 SENIOR PSYCHIATRISTS, 3 PSYCHIATRIC NURSES, 13 FORENSIC SPECIALISTS, 1 ADMINISTRATIVE ASSISTANT, 1 LICENSED PRACTICAL NURSE, AND 5 PER DIEM CORRECTIONAL NURSES. THE SUBCOMMITTEE RECOMMENDS THE APPROVAL OF THE GOVERNOR’S RECOMMENDATION TO MOVE THE PHARMACIST POSITIONS WITHIN THE DEPARTMENT FROM THE REGULAR CLASSIFIED PAY SCHEDULE TO THE CLASSIFIED MEDICAL PAY SCHEDULE. THE RECLASSIFICATION AFFECTS A TOTAL OF FIVE POSITIONS TO ADDRESS A RECENT DEPARTMENT OF PERSONNEL SALARY SURVEY THAT INDICATES THAT STATE PHARMACISTS SALARIES ARE 20 PERCENT BELOW THE SALARIES PAID TO PHARMACISTS IN THE PRIVATE SECTOR WITHIN THE STATE. THE SUBCOMMITTEE APPROVED THE GOVERNOR’S RECOMMENDATION TO INCREASE FUNDING FOR INMATE MEDICAL COSTS BASED ON INFLATIONARY INCREASES FOR HOSPITALIZATION, PRESCRIPTION DRUGS, MEDICAL/DENTAL SUPPLIES AND MEDICAL PROSTHETICS. THE SUBCOMMITTEE APPROVED AN ADDITIONAL $1.4 MILLION OVER THE AMOUNT INCLUDED IN THE EXECUTIVE BUDGET FOR INFLATIONARY INCREASES IN INMATE MEDICAL COSTS, BASED ON A BUDGET MODIFICATION SUBMITTED BY THE BUDGET DIVISION.
NDOC DIRECTOR’S OFFICE (101-3710) NDOC-1
THE SUBCOMMITTEE RECOMMENDS APPROVAL OF A NEW VICTIMS SERVICES OFFICER POSITION TO EXPAND THE DEPARTMENT’S ROLE IN PROVIDING NOTIFICATION TO VICTIMS, TEACHING VICTIM EMPATHY TO DEPARTMENT STAFF, ASSISTING IN VICTIM IMPACT PANELS FOR OFFENDERS, AND DEVELOPING A CLEARINGHOUSE OF INFORMATION FOR VICTIMS. THE SUBCOMMITTEE DID NOT CONCUR WITH THE GOVERNOR’S RECOMMENDATION TO ESTABLISH A NEW GRANTS ANALYST POSITION, DUE TO UNCERTAINTY REGARDING THE AVAILABILITY OF ADDITIONAL GRANT FUNDING FROM PRIVATE AND GOVERNMENTAL AGENCIES FOR CORRECTIONAL PROGRAMS WITHIN THE DEPARTMENT.
THE SUBCOMMITTEE CONCURS WITH THE GOVERNOR’S RECOMMENDATION TO PROVIDE FUNDING FOR THE DEPARTMENT TO CONDUCT PRE‑EMPLOYMENT PSYCHOLOGICAL TESTING OF PERSONS SELECTED FOR HIRE FOR CUSTODY POSITIONS. THE DEPARTMENT INDICATES THIS TESTING SHOULD HELP ENSURE ONLY APPLICANTS SUITABLE FOR WORKING IN A CORRECTIONS ENVIRONMENT ARE OFFERED EMPLOYMENT WITH THE DEPARTMENT, THEREBY POTENTIALLY REDUCING LIABILITY COSTS FOR THE STATE BASED ON EMPLOYEE ACTIONS.
THE SUBCOMMITTEE CONCURS WITH THE GOVERNOR’S RECOMMENDATION TO ELIMINATE SIX POSITIONS, BASED ON THE LONG-TERM VACANCY OF THESE POSITIONS. THE SUBCOMMITTEE RECOMMENDS APPROVAL OF THE TRANSFER‑IN OF 10 CORRECTIONAL OFFICER POSITIONS FROM THE CORRECTIONAL INSTITUTIONS IN SOUTHERN NEVADA TO THE CENTRAL TRANSPORTATION SECTION WITHIN THE DIRECTOR’S OFFICE. THIS TRANSFER WILL CENTRALIZE THE LOCAL INMATE TRANSPORTATION FUNCTION IN SOUTHERN NEVADA, AND THE DEPARTMENT INDICATES IT WILL IMPROVE THE SCHEDULING OF TRANSPORTATION TEAMS AND ALLEVIATE POTENTIAL DUPLICATION OF EFFORT.
CORRECTIONAL PROGRAMS (101-3711) NDOC-33
THE SUBCOMMITTEE CONCURS WITH THE GOVERNOR’S RECOMMENDATION TO CREATE A NEW CORRECTIONAL PROGRAMS DIVISION, WITH RESPONSIBILITY FOR INMATE INTAKE AND ASSESSMENT; COUNSELING AND TREATMENT; RELIGIOUS, EDUCATIONAL AND SPECIAL PROGRAMS; AND PRE‑RELEASE/REENTRY. A TOTAL OF 31.5 POSITIONS ARE RECOMMENDED TO TRANSFER-IN FROM OTHER BUDGETS WITHIN THE DEPARTMENT TO STAFF THIS NEW DIVISION. THE SUBCOMMITTEE ALSO RECOMMENDS THAT ONE NEW CHAPLAIN POSITION, NOT RECOMMENDED BY THE GOVERNOR, BE CREATED IN FY 2004‑05. THE SUBCOMMITTEE DID NOT CONCUR WITH THE GOVERNOR’S RECOMMENDATION TO PROVIDE GENERAL FUND SUPPORT FOR FOUR ACADEMIC TEACHER POSITIONS AND INMATE LITERACY PROGRAM COSTS THAT ARE CURRENTLY IN THE INMATE WELFARE ACCOUNT AND SUPPORTED THROUGH A FEDERAL DEMONSTRATION GRANT. INSTEAD, THE SUBCOMMITTEE RECOMMENDS THAT THREE OF THE FOUR POSITIONS AND THE LITERACY PROGRAM COSTS CONTINUE TO BE FUNDED FROM THE INMATE WELFARE ACCOUNT AND THAT GENERAL FUND SUPPORT BE PROVIDED FOR THE COST OF ONE ACADEMIC TEACHER POSITION, DUE TO THE LIMITED FUNDS AVAILABLE IN THE INMATE WELFARE ACCOUNT.
INMATE WELFARE ACCOUNT (240-3763) NDOC-143
THE SUBCOMMITTEE DID NOT CONCUR WITH THE GOVERNOR’S RECOMMENDATION TO CONSOLIDATE THE BUDGETS FOR THE INMATE LAW LIBRARIES, DUE TO THE DIFFICULTIES CONSOLIDATION WOULD CAUSE IN MONITORING EXPENDITURES.
WARM SPRINGS CORRECTIONAL CENTER (101-3716) NDOC-27
THE SUBCOMMITTEE CONCURS WITH THE GOVERNOR’S RECOMMENDATION TO ELIMINATE 28 CUSTODY POSITIONS AT WARM SPRINGS CORRECTIONAL CENTER RELATED TO THE CONVERSION OF THE FACILITY FROM MEDIUM CUSTODY TO MINIMUM CUSTODY.
ELY STATE PRISON (101-3751) NDOC-65
THE SUBCOMMITTEE DID NOT CONCUR WITH THE GOVERNOR’S RECOMMENDATION TO ELIMINATE 14 CORRECTIONAL OFFICERS. THE GENERAL FUND COST OF THESE POSITIONS IS $744,530 IN FY 2003-04 AND $771,775 IN FY 2004-05. THE SUBCOMMITTEE NOTED THE VACANCY SAVINGS AMOUNT RECOMMENDED BY THE GOVERNOR FOR THIS INSTITUTION IS APPROXIMATELY $1 MILLION PER YEAR HIGHER THAN THE AMOUNT BUDGETED FOR THE 2001-03 BIENNIUM. DUE TO THIS INCREASE IN THE VACANCY SAVINGS AND CONSIDERING THE ACTUAL VACANCY LEVEL FOR THE CURRENT FISCAL YEAR, THE SUBCOMMITTEE WAS CONCERNED ABOUT THE ABILITY OF THE DEPARTMENT TO MANAGE THE POST STAFFING AT THIS INSTITUTION THROUGH THE POSITION RELIEF FACTOR OR THROUGH PULL AND SHUT DOWN POSTS WITHOUT ELIMINATING POSTS AT THIS INSTITUTION.
NORTHERN NEVADA CORRECTIONAL CENTER (101-3717) NDOC-45
THE GOVERNOR’S BUDGET RECOMMENDATIONS INCLUDE APPROXIMATELY $250,000 FOR VARIOUS SPECIAL MAINTENANCE PROJECTS. THE SUBCOMMITTEE SUPPORTED FUNDING WITHIN THIS BUDGET FOR THE SPECIAL MAINTENANCE PROJECTS, WITH THE EXCEPTION OF A $20,891 PAVING PROJECT, WHICH THE SUBCOMMITTEE DELETED FROM THIS BUDGET AND INCLUDED IN THE CIP STATEWIDE PAVING PROGRAM ADMINISTERED BY THE PUBLIC WORKS BOARD. THE SUBCOMMITTEE ALSO RECOMMENDS A LETTER OF INTENT BE ISSUED TO THE BOARD INDICATING THIS PAVING PROJECT SHOULD BE PRIORITIZED SO THAT IT CAN BE COMPLETED THROUGH THE FUNDING APPROVED BY THE 2003 LEGISLATURE FOR THE STATEWIDE PAVING PROGRAM. THE SUBCOMMITTEE CONCURS WITH THE GOVERNOR’S RECOMMENDATION TO ELIMINATE TWO CORRECTIONAL OFFICER POSITIONS, BASED ON THE ELIMINATION OF THE CANINE PROGRAM DEPARTMENT-WIDE.
LOVELOCK CORRECTIONAL CENTER (101-3759) NDOC-79
THE GOVERNOR’S BUDGET RECOMMENDATIONS INCLUDE $59,000 FOR VARIOUS SPECIAL MAINTENANCE PROJECTS. THE SUBCOMMITTEE SUPPORTED FUNDING WITHIN THIS BUDGET FOR THE SPECIAL MAINTENANCE PROJECTS, WITH THE EXCEPTION OF A $24,000 PAVING PROJECT, WHICH THE SUBCOMMITTEE DELETED FROM THIS BUDGET AND INCLUDED IN THE CIP STATEWIDE PAVING PROGRAM ADMINISTERED BY THE PUBLIC WORKS BOARD, WITH A SIMILAR LETTER OF INTENT ISSUED TO THE BOARD AS RECOMMENDED IN THE NORTHERN NEVADA CORRECTIONAL CENTER BUDGET. THE SUBCOMMITTEE CONCURS WITH THE GOVERNOR’S RECOMMENDATION TO ELIMINATE TWO CORRECTIONAL OFFICER POSITIONS, BASED ON THE ELIMINATION OF THE CANINE PROGRAM DEPARTMENT-WIDE.
SOUTHERN DESERT CORRECTIONAL CENTER (101-3738) NDOC‑58
THE SUBCOMMITTEE CONCURS WITH THE GOVERNOR’S RECOMMENDATION TO ELIMINATE A MAINTENANCE REPAIR WORKER AND A CORRECTIONAL CASEWORKER BASED ON THE VACANCY OF THESE POSITIONS, AND TO ALIGN THE CASEWORKER STAFFING TO THE LEGISLATIVELY AUTHORIZED STAFFING RATIO OF ONE CASEWORKER TO 125 INMATES AT THIS INSTITUTION.
THE SUBCOMMITTEE ALSO REVIEWED THE BUDGETS FOR THE NEVADA STATE PRISON (101-3718), SOUTHERN NEVADA WOMEN'S CORRECTIONAL FACILITY (101-3761), OFFENDERS' STORE FUND (240-3708), INDIAN SPRINGS CONSERVATION CAMP (101-3725) AND STEWART CONSERVATION CAMP (101‑3722). THE SUBCOMMITTEE RECOMMENDS THAT THESE BUDGETS BE CLOSED AS RECOMMENDED BY THE GOVERNOR, WITH ADJUSTMENTS FOR INMATE POPULATION CHANGES AND MINOR TECHNICAL ADJUSTMENTS.
Mr. Parks thanked the Subcommittee Vice Chairwoman Giunchigliani, Assemblyman Griffin, Assemblywoman Leslie, Assemblyman Marvel, and Speaker Perkins for their efforts in the Subcommittee.
Mr. Marvel noted that they should include an inflationary factor for food.
Mr. Stevens said the Committee needed to address two issues in the Subcommittee’s closing report. The first issue had to do with inflation costs for food. He said a number of budgets included those costs and others did not. The Committee needed to decide if inflationary costs for food should be included in all of the budgets. The second issue was that the Committee had passed A.B. 173 which would upgrade the Forensic Specialist positions. In the Subcommittee closing report currently under consideration the Forensic Specialist positions were reclassified to Correctional Officers. The Committee needed to reconcile that issue and make a decision on whether those positions should be reclassified to Correctional Officers as was stated in the Subcommittee closing report or to upgrade and retain them as Forensic Specialists within the medical budget and process A.B. 173.
Chairman Arberry asked if the Committee had historically made budget adjustments to meet inflationary increases for food costs.
Mr. Stevens said adjustments to accommodate inflation for food costs had been approved in the past. He said the process was random and sometimes included an inflationary item in the inmate-driven costs and sometimes did not. He said the inflationary costs were not included in the current biennium but there were instances in the past where they had been.
Mr. Marvel noted that the Committee had included inflationary costs for food for High Desert State Prison but not for other facilities.
Mr. Stevens said there were budgets within the Subcommittee closings that included inflationary costs for food and there were prison budgets that did not. He recommended that the Committee either include or not include inflationary costs for food for all the budgets. He stated that the amount of money built into the budgets to cover inflationary costs for food department-wide was about $300,000 in the first year of the biennium and $450,000 in the second.
Chairman Arberry asked Mr. Stevens to clarify what he meant by all budgets.
Mr. Stevens said he meant that all the institutional budgets had an inflationary factor built into The Executive Budget and that the cost to all the correctional facilities’ budgets that had food cost inflation was about $300,000 the first year and $450,000 the second year of the biennium. He noted that many times the Subcommittee closings did not include inflationary costs for food and at other times they had. He said application was inconsistent.
Chairman Arberry posed an example of the mental health budget that included an increase for inflationary cost for food. Mr. Stevens said mental health was located in Las Vegas and run by a contractor that had certain per meal charges. Chairman Arberry asked if there were any other agencies’ budgets for which the Committee could have included inflationary costs for food.
Mr. Stevens said it was possible that inflation had been built into the contracted price in Mental Health and Developmental Services (MHDS) or Division of Child and Family Services that contracted meal services. He noted that food inflation costs were not considered in the budget accounts for the Nevada Youth Training Center and in Caliente. There was a culinary in the Nevada Youth Training Center and in the Caliente budgets.
Ms. Giunchigliani said she thought that they contracted with a food company through State Purchasing.
Tracy Raxter said that State Purchasing sent out a Request for Proposal (RFP) for food contracts for the Department of Corrections.
Ms. Giunchigliani said someone had said that the state was overcharged for food and therefore there was a large credit due.
Darrel Rexwinkel, Assistant Director, Support Services, Department of Corrections, said that when the contract was initially implemented the primary contract was awarded to U.S. Food Service. U.S. Food Service did not have one overall provider statewide but had an operation out of southern Nevada, Reno, and Ely that was serviced out of Salt Lake City. With the implementation of the contract the agency had specific pricing with U.S. Food Service and early in the contract there had been some incorrect pricing. U.S. Food Services worked through that issue with the agency to correct the invoicing and payments. As a result of that it appeared that some facilities were running over budget.
Ms. Giunchigliani surmised that there might have been a savings and an inflation adjustment would not be necessary.
Mr. Rexwinkel disagreed and said the prices paid by the agency and reflected in the annual expenditures were correct. Ms. Giunchigliani asked if there were no credits or offsets. Mr. Rexwinkel said none of which he was aware. Ms. Giunchigliani asked for further clarification as to how the pricing was reflected in the agency’s proposed budget and if the overcharges had been backed out or were balanced forward as additional revenue.
Mr. Rexwinkel said the contract with U.S. Food Service and all the new contracts were effective for the current fiscal year. The budget was based on the base year FY2002. He noted that in FY2002 the agency had just begun its contract with U.S. Food Service and the base budget of FY2002 had been built from other food providers. The U.S. Food Service contract went into effect toward the end of FY2002 and the pricing and payments were correct. He said he was unaware of any credits that had not been processed and he understood that everything had been appropriately settled. He said the amounts that the agency paid in the fiscal year expenditures were appropriate and based on the contract pricing.
Ms. Giunchigliani persisted and said it was good that the amounts were appropriate but if the agency budgeted $1 million, was billed $1.8 million, and a correction revealed that the agency only owed $900,000, was there some potentially undiscovered money that had not been allocated for food.
Mr. Rexwinkel said staff had reviewed the invoices for accuracy and approved payment for the correct amount. There had been delay in processing the invoices because staff was verifying that the payments were for the correct amount. The incorrect invoices were reprocessed for the correct amount, therefore, what had been expended was the appropriate amount.
Chairman Arberry noted that the Subcommittee approved the Governor’s recommendation to eliminate 22 FTE positions including a registered dietician, 3 senior psychiatrists, 3 psychiatric nurses, and 13 forensic specialists. Chairman Arberry requested clarification as to how the institution operations would be handled in view of so many eliminated positions.
Mr. Parks said he believed that those positions had been vacant for some time.
Chairman Arberry asked for agency verification of Mr. Park’s statement.
Mr. Rexwinkel said the agency had consolidated the mental health services at the Northern Nevada Correctional Center where there was a fully operational mental health unit. As the agency brought mental health services north they gained efficiencies and therefore did not need as many psychiatrists and psychiatric nurse positions. He noted that the Department had been without a nutritionist for some years after their nutritionist left. He said when the agency deleted the nutritionist position from its budget it added $10,000 in order to contract with the University of Nevada, Reno (UNR) to provide for menu certification. Mr. Rexwinkel said with regard to the other positions, some had been vacant for a long time and were therefore not retained.
Chairman Arberry asked for further clarification regarding the consolidation.
Ted D’Amico, M.D., Medical Director, Nevada Department of Corrections (NDOC), introduced himself. He said the NDOC had successfully been released from the Taylor v. Wolf consent decree. Dr. D’Amico noted that prior to his appointment as Medical Director with the NDOC there had been an elaborate array of medical personnel employed throughout the state, particularly in the mental health arena. In review they found that Nevada had enough psychologists and psychiatrists to service Cleveland, Columbus, and Cincinnati. The agency had seriously overstaffed mental health professionals to accomplish its mission and the Department had begun to revise its program for the provision of mental health services.
Dr. D’Amico said the northern Nevada facility housed approximately 60 hospitalized mentally ill individuals and provided very appropriate care for that population. He said the Department had created a makeshift mental health unit within the southern Nevada correctional facility to service about 40 or 50 hospitalized inmates. When the agency moved to the High Desert State Prison no provision had been made to create a mental health hospital. During a careful review of the mental health services the agency agreed that with five psychiatrists they did not have a facility in the south adequate to provide services to the hospitalized individuals.
Dr. D’Amico testified that in an effort to address the problems in southern Nevada they reviewed what had been originally planned in the north. The Northern Nevada Correctional Center had one unit, Unit 6, to house the mentally ill population, that was designed before the agency had built the northern Nevada Regional Medical Facility (RMF). The Regional Medical Facility was subsequently used for other purposes. During the redesign process the agency determined it was more appropriate to provide acute mentally ill hospitalized patients a hospital setting. The agency proposed to open Unit 6 as a sub-acute mental health facility in the north utilizing its full capacity of 60 beds and also create an expanded ability to care for the mentally ill at Ely Maximum Security Prison.
Dr. D’Amico stated that historically states housed their criminally insane population in maximum security facilities. When they evaluated following that pattern they found they did not need all of the psychiatrists in the southern Nevada facility. Therefore, they maintained two full-time psychiatrists in the south and three full-time psychiatrists in the north, which was more than adequate when they considered utilizing the Ely facility and its psychiatrists. Additionally, the Department had one retiring psychiatric nurse and two converting to correctional nurses. Dr. D’Amico concluded that the agency had not reduced its ability to care for its mentally ill population but had become more efficient and had eliminated some very high paid and unnecessary positions.
Chairman Arberry said he appreciated the explanation because he wanted assurance that the Department of Corrections’ staff and mentally ill inmates were safe.
Dr. D’Amico commented that the system had changed dramatically in the last seven years and the agency was looking for a variety of ways to operate cost‑efficiently while maintaining optimal service. He assured the Committee that the agency changes in providing mental health services in no way impaired its ability to treat the mentally ill inmates.
Ms. Leslie noted that during the Mental Health Subcommittee hearings she had posed the same line of questioning as that of the Chair to Dr. D’Amico because of initial concerns over the program changes. She said there had been considerable review of the organizational charts and discussions of the plan. Ms. Leslie said she believed the agency plan was sound but that it needed watching. She stated that creating the new Correctional Programs Division within the DOC would create a broader focus on appropriate programming for the inmates. Ms. Leslie expressed satisfaction and supported the Subcommittee’s closing budget report on the mental health plan for the Department of Corrections.
Chairman Arberry asked if there were any plans to create a facility in the south similar to the northern facility.
Dr. D’Amico said such an idea had been under consideration for some time. He noted that currently the state had revenue shortfalls but that their budget appeared to be fairly stable. He said he believed the agency could make do over the next two or three years without having to plan a southern Nevada facility. He noted that in about four or five years’ growth in Las Vegas and within the system it would be essential to approach the Committee for funding to build a southern Nevada facility. He said at that time the agency would again revise how it operated its mental health and medical services.
Ms. Giunchigliani said after the Subcommittee closings the Committee believed they had left the Forensic Specialist and Correctional Officer classifications unchanged. The Committee had decided to pass a bill that gave the Forensic Specialists the upgrade, however, that was not how the Subcommittee closing report appeared. Ms. Giunchigliani said she was concerned that if the Forensic Specialist positions were eliminated the agency would lose the forensic specialist concept. She asked Dr. D’Amico to clarify the issue for the Committee.
Dr. D’Amico responded and said he would give some background as to what a Forensic Specialist was and how it was introduced into the Nevada correctional system. He noted that other states and private enterprises were also baffled at the classification. He testified that about 15 years earlier the Lakes Crossing Center for the Mentally Disordered Offender used the Forensic Specialist classification to provide custody for mentally ill individuals. At that time George Sumner was director of the Nevada Department of Prisons and the agency elected to bring the Forensic Specialist classification into the prison system because they did not have the necessary expertise to provide for mental health needs. The classification was expanded into medical activities in order for the medical budget to cover for custody officers. Dr. D’Amico said many of the Forensic Specialists were very well trained and classified as Certified Nurse Assistants and then became Custody Officers, or went through the necessary training to become Custody Officers. He noted that at that time the agency could not hire Licensed Practical Nurses (LPN) so they hired Forensic Specialists and used them as an LPN in the medical arena. Clearly the process was very convoluted and created confusion in the chain of command.
Dr. D’Amico explained that eventually the agency was able to provide psychologists and other mental health trained professionals and therefore did not rely on the Forensic Specialists in either the mental health or medical arenas. The Forensic Specialist position devolved into a custodial type activity within the medical section with no chain of command over them.
Dr. D’Amico continued and said that in the last legislative session the Forensic Specialist position did not get an increase in salary. It was decided that for reporting and budget purposes if the primary task of the Forensic Specialist was custody in nature the position should be designated as Custody Officer with the attendant salary. The agency did not currently employ Forensic Specialists in the medical arena to perform medical-related tasks, nor were they employed in the mental health arena to perform mental health tasks. Forensic Specialists performed primarily custody tasks and therefore they should be under custody chain of command and budget.
Glen Whorton, Assistant Director, Operations, Northern Nevada Department of Corrections, introduced himself and said Forensic Specialists essentially performed the duties of Correctional Officers and were supervised by Correctional Officers. He said that Correctional Officers typically filled vacant Forensic Specialist positions. Mr. Whorton also noted that the Subcommittee had raised issues of flexibility. Forensic Specialists were subdivided into mental health or medical forensics. Therefore, if there was a shortage in either the medical or mental health arenas supervision became hampered between the two areas. He said the duties of the position had become a tangle of personnel categories and classifications. By classifying Forensic Specialists as Correctional Officers the agency would gain flexibility but expertise would not be lost because staffing regulations had been redrafted to identify Forensic Specialists levels within the Correctional Officers classification that included Visiting Officers, Transportation Officers, and Control Officers, as well as a special staffing and assignment class for forensics.
Ms. Giunchigliani noted that A.B. 173 had passed which equalized the salary grades. She said that in the Subcommittee they had apparently agreed to reclassify the Forensic Specialist to Correctional Officer. She said the decision currently before the Committee was whether to approve the Subcommittee report recommendation to classify the Forensic Specialist to Correctional Officer.
Chairman Arberry asked for clarification of the recommendation to provide General Fund support for four academic teacher positions.
Mr. Parks said the positions were recommended in the budget.
Mrs. Chowning said she was glad to see 14 Correctional Officers would not be eliminated at Ely State Prison as recommended by the Governor because she had heard there were insufficient Correctional Officers for the number of inmates. She asked for the ratio of the overall number of officers to inmates.
Mr. Whorton said overall the ratio for correctional staff to inmate was approximately one staff person to 5.5 inmates. He said that was approximately one and one-half inmates higher than was found across the western United States. He said that Nevada did not have a staff comparable to Utah, Arizona, Oregon, or California. He clarified that the inmate to staff ratio depended on the custody and architecture of the institution. In the instance of Ely State Prison, which was an extremely efficient institution to supervise, there was the advantage of being a lockdown, maximum security institution. The architecture of the institution had a greater influence on the management of that institution than it would for the Southern Desert Correctional Center or the Northern Nevada Correctional Center. He noted that Ely State Prison had operated for extended periods of time with as many as 65 vacant custody positions and that that was the current situation. He said the Senate had similar concerns as the Assembly regarding staffing needs and had therefore not eliminated the 14 Correctional Officer positions.
Mrs. Chowning said the operations might be efficient but noted that a young man had been murdered in his cell the day before Christmas, 2002. She said the operation was not as efficient as it should be because no inmate should be murdered in his cell. She said she was very concerned about security and was pleased that the positions had not been eliminated. Mrs. Chowning added that she understood Mr. Whorton to say that Nevada was better than its western state compatriots but still needed improvement.
Mr. Whorton said that Nevada’s staffing ratios were not as good as its neighbors, and because of that the Director was discussing a study to review staffing in the Department of Corrections. He noted they had just completed National Institute of Corrections (NIC) security audits at the High Desert State Prison and the Southern Desert Correctional Center and their reports were currently being drafted. He said they had assigned staff to provide the NIC security audit to all of the agency’s facilities in order to specifically address staffing issues. Mr. Whorton said the agency was very concerned about staffing from efficiency and security standpoints.
Mr. Whorton said their facilities were very secure, and had a low rate of violence when compared to other agencies. He said they were interested in documenting how the agency managed security and they were in the process of writing a report on a recently installed in-house information system at the Nevada State Prison. He said the system would provide information regarding security personnel location and would enable the agency to determine and provide specific information regarding staff relief for such issues as training and investigations.
Mrs. Chowning thanked the Director and staff for their kind treatment to the family of the young man who died and added that all involved state agencies needed to be alert to inmate security issues.
ASSEMBLYWOMAN LESLIE MOVED TO ACCEPT THE JOINT SUBCOMMITTEE ON PUBLIC SAFETY, NATURAL RESOURCES, AND TRANSPORTATION CLOSING REPORT ON THE DEPARTMENT OF CORRECTIONS, NOT APPROVING THE FOOD ISSUE, BUT APPROVING THE REST OF THE REPORT AND THE RECLASSIFICATION OF FORENSIC SPECIALISTS TO CORRECTIONAL OFFICERS AS RECOMMENDED IN THE REPORT.
SPEAKER PERKINS SECONDED THE MOTION.
THE MOTION CARRIED. (Assemblymen Beers and Andonov were not present for the vote.)
BUDGET CLOSED
********
Chris Giunchigliani, Chairwoman, Assembly Joint Subcommittee on K-12/Human Resources, presented the following closing report on the Department of Education:
THE JOINT SUBCOMMITTEE ON K-12/HUMAN RESOURCES COMPLETED ITS REVIEW FOR THE DEPARTMENT OF EDUCATION. THE CLOSING ACTIONS OF THE SUBCOMMITTEE RESULTED IN GENERAL FUND SAVINGS IN THE AMOUNT OF $323,009 IN FY 2003‑04 AND $330,232 IN FY 2004-05. THE ATTACHED SUMMARY OF GENERAL FUND SAVINGS DIFFERS FROM THESE AMOUNTS BECAUSE SOME OF THE SAVINGS REFLECTED IN THE OTHER STATE EDUCATION PROGRAMS ACCOUNT IS ACTUALLY TRANSFERRED TO THE DISTRIBUTIVE SCHOOL ACCOUNT. THE FOLLOWING HIGHLIGHTS THE MORE SIGNIFICANT CLOSING RECOMMENDATIONS OF THE SUBCOMMITTEE.
EDUCATION STATE PROGRAMS (101-2673)
THE EXECUTIVE BUDGET RECOMMENDED GENERAL FUND SUPPORT IN THIS ACCOUNT FOR ONE NEW POSITION AND FOR THE CONTINUATION OF A POSITION THAT WAS APPROVED BY THE 2001 LEGISLATURE, BUT WAS NEVER FILLED.
AN ADMINISTRATIVE ASSISTANT II POSITION WAS RECOMMENDED BY THE GOVERNOR TO PROVIDE CLERICAL SUPPORT TO THE STAFF ASSISTING SCHOOLS CLASSIFIED AS NEEDING IMPROVEMENT UNDER THE NEVADA EDUCATION REFORM ACT (NERA). BECAUSE OF THE NEW STAFFING PROVIDED WITH FUNDING FROM THE FEDERAL NO CHILD LEFT BEHIND ACT, THE SUBCOMMITTEE DID NOT APPROVE THE RECOMMENDED POSITION AND SUGGESTED IF IT IS DETERMINED IN THE FUTURE THAT THE POSITION IS REQUIRED, IT SHOULD BE REQUESTED WITH FEDERAL FUNDING SUPPORT.
THE COMPUTER PROGRAMMER POSITION THAT WAS APPROVED BY THE 2001 LEGISLATURE FOR THE SMART SYSTEM WAS NEVER FILLED DUE TO THE HIRING FREEZE. THE EXECUTIVE BUDGET RECOMMENDED THE REAUTHORIZATION OF THAT POSITION. THE SUBCOMMITTEE CONCURRED WITH THE RECOMMENDATION FOR THE POSITION, BUT INSTEAD OF FUNDING THE POSITION IN THIS ACCOUNT WITH GENERAL FUND SUPPORT, THE SUBCOMMITTEE APPROVED THE POSITION IN THE IMPROVING AMERICA’S SCHOOLS – TITLES II, V & VI ACCOUNT (101-2713) WITH FEDERAL FUNDING FROM THE NO CHILD LEFT BEHIND ACT.
THESE RECOMMENDATIONS RESULT IN GENERAL FUND SAVINGS IN THIS ACCOUNT IN THE AMOUNT OF $88,501 FOR FY 2003-04 AND $98,879 FOR FY 2004-05.
OTHER STATE EDUCATION PROGRAMS (101-2699)
IN CLOSING THIS BUDGET, THE SUBCOMMITTEE APPROVED REINSTATING FUNDING OF $346,239 IN EACH FISCAL YEAR OF THE BIENNIUM FOR LEA LIBRARY BOOKS, $300,000 IN FY 2003‑04 FOR PUBLIC BROADCASTING, AND $51,429 IN EACH FISCAL YEAR OF THE BIENNIUM FOR THE NATIONAL BOARD CERTIFICATION PROGRAM FOR TEACHERS. FUNDING FOR THESE PROGRAMS HAD BEEN RECOMMENDED FOR DELETION BY THE GOVERNOR; HOWEVER, DUE TO AN ERROR IN THE BUDGET, SUFFICIENT SAVINGS WAS AVAILABLE TO REINSTATE EACH PROGRAM AT NO ADDITIONAL COST TO THE GENERAL FUND.
WITH REGARD TO SMART, THE SUBCOMMITTEE APPROVED A NEW NAME FOR THE SYSTEM: SYSTEM FOR ACCOUNTABILITY INFORMATION IN NEVADA (SAIN) AND MADE THE FOLLOWING DECISIONS CONCERNING FUNDING FOR THE SYSTEM.
FIRST, THAT A 1.0 FTE COMPUTER SYSTEMS PROGRAMMER II AND DEPARTMENT TECHNICAL SUPPORT, RECOMMENDED BY THE GOVERNOR TO BE FUNDED WITH STATE GENERAL FUND, BE FUNDED WITH FEDERAL FUNDS FROM THE TITLE VI ASSESSMENTS GRANT, WHICH IS CONTAINED IN THE NO CHILD LEFT BEHIND BUDGET ACCOUNT (BA 2713). THESE DECISIONS WERE MADE BASED UPON A 2001 LETTER OF INTENT, WHICH NOTED THAT THE FUNDING APPROVED BY THE 2001 LEGISLATURE FOR HARDWARE, SOFTWARE AND PERSONNEL COSTS TO SUPPORT THE SMART PROGRAM IS ONE-TIME IN NATURE AND SHOULD NOT BE CONSIDERED AN ONGOING, CONTINUING RESPONSIBILITY OF THE STATE.
SECOND, CONCERNING DISTRICT-LEVEL TECHNICAL SUPPORT, THE SUBCOMMITTEE AGAIN REFERRED TO THE 2001 LETTER OF INTENT, BUT NOTED THAT BECAUSE THE NO CHILD LEFT BEHIND ACT INCREASES THE DEMAND FOR MORE IMMEDIATE ACCESS TO HIGH-QUALITY EDUCATION DATA ACROSS THE PRE-K-12 EDUCATION SYSTEM, THAT ONE-TIME STATE FUNDING FOR DISTRICT TECHNICAL SUPPORT SHOULD BE CONTINUED THROUGH THE 2003-05 BIENNIUM. HOWEVER, IN APPROVING THESE FUNDS, THE SUBCOMMITTEE REQUESTED THAT THE FUNDS BE PLACED IN A RESERVE CATEGORY IN THE BUDGET ACCOUNT, WITH THE REQUIREMENT THAT THE DEPARTMENT PROVIDE JUSTIFICATION TO THE INTERIM FINANCE COMMITTEE PRIOR TO ACCESSING THE FUNDS.
THIRD, WITH REGARD TO THE ACTUAL SYSTEM COMPONENTS FOR THE SAIN SYSTEM, THE SUBCOMMITTEE APPROVED STATE GENERAL FUND TO PURCHASE UPGRADES AND OTHER EQUIPMENT NECESSARY TO MAKE THE SYSTEM WEB-BASED. THE SUBCOMMITTEE ALSO APPROVED FUNDING FOR THE DEPARTMENT TO FORM A HIGH LEVEL SAIN ADVISORY COMMITTEE TO OVERSEE IMPLEMENTATION OF THE UPGRADED SYSTEM.
TOTAL STATE SUPPORT, AS APPROVED BY THE SUBCOMMITTEE FOR THE SAIN SYSTEM TOTALS $1.2 MILLION IN FY 2003-04 AND $1.1 MILLION IN FY 2004‑05, WITH AN ADDITIONAL $581,390 IN FY 2003-04 AND $583,997 IN FY 2004-05 IN FEDERAL NO CHILD LEFT BEHIND FUNDS.
WITH REGARD TO CONTINUED FUNDING FOR TEACHER SIGNING BONUSES, THE GOVERNOR RECOMMENDS STATE GENERAL FUNDS IN THE AMOUNT OF $5.0 MILLION IN EACH FISCAL YEAR OF THE BIENNIUM TO CONTINUE SIGNING BONUSES IN THE AMOUNT OF $2,000 FOR TEACHERS WHO ARE NEWLY HIRED BY SCHOOL DISTRICTS. THE SENATE SUBCOMMITTEE MEMBERS VOTED TO APPROVE FUNDING FOR SIGNING BONUSES, WHILE THE ASSEMBLY SUBCOMMITTEE MEMBERS VOTED TO UTILIZE FUNDING FROM THIS SOURCE, AS WELL AS TWO OTHER STIPEND PROGRAMS (HIGH IMPACT AND AT-RISK) TO FINANCE ADDITIONAL RETIREMENT CREDITS FOR AT-RISK SCHOOLS AND ADDRESS MINIMUM TEACHER SALARY AND SKILLS-BASED COMPENSATION.
OTHER DECISIONS MADE BY THE SUBCOMMITTEE FOR THIS BUDGET ACCOUNT INCLUDE STATE GENERAL FUND TO SUPPORT, FOR THE FIRST TIME, NATIONALLY CERTIFIED SCHOOL COUNSELORS AND SCHOOL PSYCHOLOGISTS. IN ADDITION, THE SUBCOMMITTEE APPROVED THE TRANSFER OF FUNDS TO SUPPORT THE PROJECT LEAD PROFESSIONAL DEVELOPMENT PROGRAM, FROM THIS ACCOUNT TO THE BUDGET FOR THE DISTRIBUTIVE SCHOOL ACCOUNT TO BE INCLUDED WITH ALL OTHER PROFESSIONAL DEVELOPMENT FUNDS UNDER THE REGIONAL PROFESSIONAL DEVELOPMENT PROGRAMS. IN MAKING THIS DECISION, THE SUBCOMMITTEE REQUESTED LANGUAGE TO BE INCLUDED IN THE SCHOOL FUNDING BILL THAT WOULD REQUIRE THE IDENTITY OF THE PROJECT LEAD PROGRAM TO NOT BE LOST WITH THE TRANSFER OF FUNDS. AND FINALLY, THE SUBCOMMITTEE APPROVED THE TRANSFER OF FUNDS FOR THE CLASSROOM ON WHEELS (COW) PROGRAM TO THE BUDGET FOR THE DISTRIBUTIVE SCHOOL ACCOUNT TO BE INCLUDED WITH ALL OTHER EARLY CHILDHOOD PROGRAMS. IN MAKING THIS DECISION, THE SUBCOMMITTEE REQUESTED LANGUAGE TO BE INCLUDED IN THE SCHOOL FUNDING BILL THAT WOULD PROVIDE THE APPROVED FUNDING FOR THE COW PROGRAM, WITHOUT PARTICIPATING IN THE COMPETITIVE GRANT PROCESS, BUT WOULD REQUIRE THE PROGRAM TO PARTICIPATE IN ALL REQUIRED EVALUATIONS FOR EARLY CHILDHOOD PROGRAMS.
TEACHER EDUCATION AND LICENSING (101-2705)
THE NO CHILD LEFT BEHIND ACT (NCLBA) NOW REQUIRES TEACHER‑LICENSING DATABASES TO BE LINKED TO STUDENT INFORMATION SYSTEMS. BECAUSE OF THIS, THE DEPARTMENT INDICATES THE NEED FOR THE TEACHER LICENSING DATABASES, WHICH CURRENTLY RESIDE IN DOIT (DEPARTMENT OF INFORMATION AND TECHNOLOGY), TO BE MOVED IN-HOUSE. DUE TO THE IMPORTANCE OF MEETING THE REQUIREMENTS OF THE NCLBA, THE SUBCOMMITTEE APPROVED A LETTER OF INTENT ASKING THE DEPARTMENT TO REPORT QUARTERLY TO STAFF ON THE STATUS OF THEIR STUDY TO POTENTIALLY MIGRATE THE DATABASE SYSTEMS IN-HOUSE AND, IN PROVIDING THE INFORMATION, PRESENT ANY COST SAVINGS THAT WILL BE ASSOCIATED WITH THE MOVE FOR FUTURE BIENNIA BUDGETS. THE SUBCOMMITTEE APPROVED THIS BUDGET AS RECOMMENDED BY THE GOVERNOR.
PROFICIENCY TESTING (101-2697)
THE SUBCOMMITTEE APPROVED ADDITIONAL STATE GENERAL FUND SUPPORT IN THE AMOUNT OF $148,602 IN FY 2003-04 AND $251,837 IN FY 2004‑05 TO ADDRESS A SHORTFALL IN THE GOVERNOR’S RECOMMENDED BUDGET FOR THE 8TH GRADE CRITERION-REFERENCED TEST (CRT). THE ACTUAL SHORTFALL FOR THE 8TH GRADE CRT IS $500,000 IN EACH YEAR OF THE BIENNIUM. HOWEVER, IN REVIEWING THE GOVERNOR-RECOMMENDED BUDGET, THE DEPARTMENT FOUND SAVINGS IN BOTH THE NORM‑REFERENCED TESTING (NRT) PROGRAM AND THE HIGH SCHOOL PROFICIENCY EXAMINATION PROGRAM (HSPE) THAT WAS UTILIZED TO REDUCE THE SHORTFALL FOR THE 8TH GRADE CRT. THE SAVINGS FOR THE HSPE PROGRAM ARE BASED UPON THE DELAY OF THE SCIENCE PORTION OF THE HSPE UNTIL THE GRADUATING CLASS OF 2008-09, TO BE CONSISTENT WITH THE NO CHILD LEFT BEHIND ACT. ALTHOUGH LEGISLATION HAS NOT YET BEEN APPROVED BY THE 2003 LEGISLATURE DELAYING THE SCIENCE PORTION OF THE HSPE, LANGUAGE IS CURRENTLY INCLUDED IN SENATE BILL 191 THAT WOULD DELAY THE EXAMINATION UNTIL THE GRADUATING CLASS OF 2008-09.
NO CHILD LEFT BEHIND ACT: TITLES II, V, AND VI (101-2713)
THIS BUDGET AND THE TITLE I BUDGET CONTAIN FEDERAL FUNDING TO SUPPORT THE NO CHILD LEFT BEHIND ACT (NCLBA). THIS BUDGET INCLUDES TITLE II FUNDS FOR THE TEACHER QUALITY AND EDUCATION TECHNOLOGY GRANTS, TITLE V FUNDS FOR THE INNOVATIVE EDUCATION GRANT, AND TITLE VI FUNDS FOR THE STATE ASSESSMENT GRANT. IN CLOSING THIS BUDGET, THE SUBCOMMITTEE APPROVED A TOTAL OF $752,885 IN ADDITIONAL FEDERAL FUNDS, OVER THE GOVERNOR RECOMMENDED AMOUNTS, FOR EACH FISCAL YEAR OF THE BIENNIUM. THE FOCUS OF DISCUSSIONS CONCERNING THIS BUDGET ACCOUNT WAS THE REQUEST FOR POSITIONS TO SUPPORT THE STATE’S EFFORTS IN COMPLYING WITH THE FEDERAL NO CHILD LEFT BEHIND ACT. THE SUBCOMMITTEE APPROVED THE FOLLOWING POSITIONS:
IN AN EFFORT TO ASSIST THE STATE DEPARTMENT OF EDUCATION IN PROVIDING SCHOOL IMPROVEMENT SUPPORT TO SCHOOLS DESIGNATED AS DEMONSTRATING NEED FOR IMPROVEMENT, THE SUBCOMMITTEE APPROVED FUNDING FOR ONE EDUCATION CONSULTANT POSITION, WITH RELATED OPERATIONAL COSTS, TO BEGIN JULY 1, 2004.
AS NOTED IN THE OTHER STATE EDUCATION PROGRAMS BUDGET ACCOUNT (BA 2699), THE SUBCOMMITTEE APPROVED FEDERAL TITLE VI FUNDING FOR ONE COMPUTER SYSTEMS PROGRAMMER II AND DEPARTMENT TECHNICAL SUPPORT FOR THE SAIN SYSTEM.
POSITIONS RECOMMENDED BY THE GOVERNOR BUT NOT APPROVED BY THE SUBCOMMITTEE INCLUDE ONE ADEQUATE YEARLY PROGRESS (AYP) CONSULTANT AND ONE PROGRAM OFFICER I. THE SUBCOMMITTEE DID NOT APPROVE THESE POSITIONS BECAUSE THE INTERIM FINANCE COMMITTEE (IFC) ALREADY APPROVED 2.0 FTE POSITIONS IN JUNE 2002 THAT SHOULD BE PERFORMING THE DUTIES. IN ADDITION, IN MAKING THE DECISIONS, THE SUBCOMMITTEE NOTED THAT THERE ARE LIMITED FUNDS AVAILABLE THROUGH THE TITLE VI ASSESSMENT GRANT, AND THAT THE PRIMARY PURPOSE OF THESE FUNDS IS TO ASSIST THE STATE IN FUNDING THE ADDITIONAL ASSESSMENTS REQUIRED UNDER THE NO CHILD LEFT BEHIND ACT; THEREFORE, THE SUBCOMMITTEE FELT THAT IT IS IMPERATIVE THAT SUFFICIENT FEDERAL FUNDS EXIST TO FUND THE REQUIRED ASSESSMENTS.
INDIVIDUALS WITH DISABILITIES (IDEA) (101-2715)
THIS ACCOUNT INCLUDES THE NRS 395 PROGRAM, WHICH PROVIDES FUNDING FOR SPECIAL EDUCATION COSTS WHEN A CHILD’S NEEDS CANNOT BE ACCOMMODATED IN HIS HOME SCHOOL DISTRICT. BASED ON ACTUAL FY 2001-02 EXPENDITURES, THE SUBCOMMITTEE RECOMMENDS THE GENERAL FUND SUPPORT IN THIS ACCOUNT BE REDUCED TO $192,410 EACH YEAR, WITH A PROVISION THAT FUNDING CAN BE UTILIZED IN EITHER YEAR OF THE BIENNIUM, AND IF FUNDING IS INSUFFICIENT, A REQUEST COULD BE MADE FOR AN ALLOCATION FROM THE IFC CONTINGENCY FUND. THE RECOMMENDATION RESULTS IN GENERAL FUND SAVINGS IN THIS ACCOUNT IN THE AMOUNT OF $132,590 IN EACH YEAR OF THE UPCOMING BIENNIUM.
NO CHILD LEFT BEHIND ACT: TITLE I (BA 2712)
THIS BUDGET ACCOUNT CONTAINS THE MAJORITY OF THE NO CHILD LEFT BEHIND FEDERAL FUNDS THAT ARE PASS‑THROUGH FUNDS TO THE SCHOOL DISTRICTS. THIS BUDGET ACCOUNT ALSO INCLUDES THE FEDERAL EVEN START PROGRAM, THE COMPREHENSIVE SCHOOL REFORM PROGRAM, AND THE NEW READING FIRST PROGRAM. IN CLOSING THIS BUDGET, THE SUBCOMMITTEE APPROVED A TOTAL OF $6.3 MILLION IN ADDITIONAL FEDERAL FUNDS, ABOVE THE GOVERNOR RECOMMENDED AMOUNTS, FOR EACH FISCAL YEAR OF THE BIENNIUM.
THE FOCUS OF DISCUSSIONS CONCERNING THIS BUDGET ACCOUNT WAS THE TRANSITION FROM THE FEDERAL READING EXCELLENCE ACT (REA) PROGRAM TO THE READING FIRST PROGRAM; THE GOAL OF THE TWO PROGRAMS IS THE SAME, NAMELY THAT ALL PUPILS WILL BE ABLE TO READ AT GRADE LEVEL BY THE END OF GRADE 3. IN ORDER TO SUPPORT THE TRANSITION BETWEEN THE REA PROGRAM, WHICH ENDS AUGUST 2004 AND THE NEW READING FIRST PROGRAM, THE DEPARTMENT RECOMMENDED AND THE SUBCOMMITTEE APPROVED THE TRANSFER OF FUNDING FROM THE DISCRETIONARY GRANTS RESTRICTED BUDGET TO THIS BUDGET ACCOUNT TO FUND A NEW POSITION, EFFECTIVE JULY 1, 2003 THROUGH AUGUST 31, 2004, WHEN THE REA GRANT ENDS. THIS ACTIVITY IS CURRENTLY CONTRACTED WITH THE UNIVERSITY OF NEVADA, LAS VEGAS AND THE NEW POSITION WILL BE LOCATED IN THE DEPARTMENT OF EDUCATION LOCATED IN LAS VEGAS. TO COMPLETE THE REA/READING FIRST TRANSITION, BEGINNING SEPTEMBER 1, 2004, THIS POSITION WOULD CONTINUE AT THE DEPARTMENT WITH FUNDS FROM THE READING FIRST GRANT.
GEAR UP PROGRAM (BA 2678)
IN CLOSING THIS BUDGET, THE SUBCOMMITTEE EXPRESSED CONCERN WITH THE WAY THE DEPARTMENT CURRENTLY ADMINISTERS THE GEAR UP PROGRAM FOR THE STATE. DURING THE HEARING FOR THIS BUDGET ACCOUNT, IT WAS NOTED THAT THE GEAR UP PROGRAM ADMINISTERED BY UNLV CENTER FOR ACADEMIC ENRICHMENT AND OUTREACH, MIGHT HAVE DEVELOPED A HIGHER QUALITY PROGRAM THAN THE PROGRAM DEVELOPED BY THE STATE DEPARTMENT OF EDUCATION. UPON REVIEW OF ADDITIONAL INFORMATION CONCERNING A COMPARISON OF THE STATE GEAR UP PROGRAM AND THE GEAR UP PROGRAM ADMINISTERED THROUGH UNLV, THE SUBCOMMITTEE APPROVED CONTINUATION OF THE ADMINISTRATION OF THE STATE GEAR UP GRANT THROUGH THE DEPARTMENT OF EDUCATION. HOWEVER, THE SUBCOMMITTEE REQUESTED A LETTER OF INTENT BE SENT REQUESTING THE DEPARTMENT TO WORK WITH THE UNLV CENTER FOR ACADEMIC ENRICHMENT AND OUTREACH TO DEVELOP A PLAN WHEREBY THE GEAR UP FUNDS FOR THE STATE PROGRAM WOULD BE UTILIZED MORE EFFICIENTLY AND EFFECTIVELY. THROUGH THE LETTER OF INTENT, THE DEPARTMENT WILL BE REQUIRED TO SUBMIT THE PLAN TO THE INTERIM FINANCE COMMITTEE ON OR BEFORE JULY 1, 2003.
OTHER ACCOUNTS WITH NO MAJOR CLOSING ISSUES
IN ADDITION TO THE ABOVE ACCOUNTS, THE SUBCOMMITTEE REVIEWED THE BUDGETS FOR EDUCATION SUPPORT SERVICES (101-2720), NUTRITION EDUCATION PROGRAMS (101‑2691), OCCUPATIONAL EDUCATION (101-2676) AND CONTINUING EDUCATION (101-2680). THE SUBCOMMITTEE RECOMMENDS THAT THESE ACCOUNT BE CLOSED AS RECOMMENDED BY THE GOVERNOR WITH TECHNICAL MODIFICATIONS.
ASSEMBLYMAN GOLDWATER MOVED TO ACCEPT THE JOINT SUBCOMMITTEE ON K-12/HUMAN RESOURCES CLOSING REPORT ON THE DEPARTMENT OF EDUCATION.
ASSEMBLYMAN PARKS SECONDED THE MOTION.
Mrs. Chowning noted that there was one item in the budget where the Assembly voted differently from the Senate and asked if that was included in the motion.
Ms. Giunchigliani said that item was included in the motion and had to do with the stipend. She said the Subcommittee recommended that the stipend be considered in the Distributive School Account (DSA) budget. The Subcommittee used stipend money to create a one-fifth retirement credit for at‑risk teachers rather than $2,000 and they also set aside money from the stipend pool for the local districts to be able to establish a skills-based career ladder mentor program. There was additional money left because it was less costly to implement those two programs and therefore the Subcommittee planned to recommend that the money be applied toward salaries through another budget.
Mrs. Chowning said she agreed with that. She noted that she was continually concerned about the state’s non-proficient, non-native speakers of English. She also asked if the additional position for schools that needed improvement was expected to serve non-native speakers of English.
Ms. Giunchigliani said that the additional position would serve that population and, by making that shift, they were not solely targeting at-risk schools but benefiting students, especially English language learners who were not enrolled in an at-risk school but were enrolled in a school that needed improvement. Ms. Giunchigliani said she thought the plan was better in the long term.
Mrs. Chowning said the plan would help at-risk students regardless of their placement. Ms. Giunchigliani corroborated Mrs. Chowning’s statement.
Ms. Giunchigliani thanked Fiscal Analysis Division staff, Ms. Braun and Mr. Atkinson, and the members of the Subcommittee for their work. She noted that they saved almost $700,000. She also noted that the Department was still concerned and had some valid arguments regarding ensuring they could administer the program.
THE MOTION CARRIED. (Assemblymen Beers and Andonov were not present for the vote.)
BUDGET CLOSED.
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Chairman Arberry adjourned the meeting at 12:04 p.m.
RESPECTFULLY SUBMITTED:
Catherine Caldwell
Committee Secretary
APPROVED BY:
Assemblyman Morse Arberry Jr., Chairman
DATE: