MINUTES OF THE
SENATE Committee on Finance
Seventy-second Session
April 7, 2003
The Senate Committee on Finance was called to order by Chairman William J. Raggio, at 8:00 a.m. on Monday, April 7, 2003, in Room 2134 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. Exhibit B is the Attendance Roster. All exhibits are available and on file at the Research Library of the Legislative Counsel Bureau.
COMMITTEE MEMBERS PRESENT:
Senator William J. Raggio, Chairman
Senator Raymond D. Rawson, Vice Chairman
Senator Dean A. Rhoads
Senator Barbara K. Cegavske
Senator Sandra J. Tiffany
Senator Bob Coffin
Senator Bernice Mathews
STAFF MEMBERS PRESENT:
Gary L. Ghiggeri, Senate Fiscal Analyst
Bob Guernsey, Principal Deputy Fiscal Analyst
Bob Atkinson, Program Analyst
Julie Brand, Program Analyst
Joyce Garrett, Program Analyst
Tracy Raxter, Program Analyst
Michael Archer, Committee Secretary
OTHERS PRESENT:
Jack Schroeder, Justice of the Peace, Reno Justice Court
Mark Gibbons, Associate Justice, Supreme Court
Kami Dempsey, Government Relations Manager, Office of Administrative Services, City of Las Vegas
George Pyne, Executive Officer, Public Employees’ Retirement Board, Public Employees’ Retirement System
Dana Bilyeu, Operations Officer, Public Employees’ Retirement Board, Public Employees’ Retirement System
Sherry R. Blackwell, Budget Analyst, Budget Division, Department of Administration
Mary Keating, Administrator, Administrative Services Division, Department of Administration
Senator Raggio:
Staff, please give us a status report.
Gary Ghiggeri, Senate Fiscal Analyst, Fiscal Division, Legislative Counsel Bureau:
I will read the Senate Committee on Finance Progress Report as of April 7, 2003 (Exhibit C).
Staff is awaiting fiscal notes on three bills that have not been declared exempt. We have asked the Budget Division to expedite these notes so we can make a decision before Friday.
Senator Rhoads:
How does this compare with our progress in the last session?
Mr. Ghiggeri:
At this time last session, the Senate Committee on Finance had heard 344, out of 419 budgets. They had closed 55 budgets in full committee, and 14 in subcommittee. We had reviewed 66, of 90, Capital Improvement Projects (CIP). There were 169 bills referred to the Senate Committee on Finance last session, as opposed to the 90 bills we now have.
Senator Raggio:
We will discuss Senate Bill (S.B.) 409.
SENATE BILL 409: Authorizes justices of the peace and municipal judges to participate in Judicial Retirement Plan under certain circumstances. (BDR 1-414)
Jack Schroeder, Justice of the Peace, Reno Justice Court:
I am representing the Nevada Judges Association in support of this legislation. I will now read my prepared statement (Exhibit D).
Senator Raggio:
How many will be affected by this change?
Judge Schroeder:
I do not know exactly how many would be affected, but there are 55 members in the Nevada Judges Association.
Senator Raggio:
The fiscal note shows about 56 active judges would transfer, if allowed. That would be a $4.3 million payroll, and would impact local governments rather than the State.
Judge Schroeder:
Yes. The local governments would have to measure the financial impact.
Mark Gibbons, Associate Justice, Supreme Court:
I want to let the committee know that the Nevada Supreme Court supports this legislation. We ask the committee to adopt S.B. 409. There is no fiscal impact on the State.
Kami Dempsey, Government Relations Manager, Office of Administrative Services, City of Las Vegas:
The City of Las Vegas supports this legislation.
Senator Raggio:
Have you computed the amount it would cost Clark County?
Ms. Dempsey:
We will not know that figure until we can determine how many jurists will opt for Judicial Retirement System (JRS).
George Pyne, Executive Officer, Public Employees’ Retirement Board, Public Employees’ Retirement System:
The Public Employees’ Retirement Board has not yet taken a position on S.B. 409, but staff will probably recommend the board take a neutral position at its April meeting. I will now read my prepared text (Exhibit E), which reviews the bill.
Senator Raggio:
How will transferring to the JRS at this lower rate affect the actuarial stability of the JRS?
Mr. Pyne:
It will not have an adverse affect because we are transferring assets equivalent to the credit in the PERS plan. It is my understanding that the intent of this bill is to be cost-neutral to State government. Senate Bill 409, Section 4, shows the segregation of contributions.
Senator Raggio:
What is meant by your note that there is no present calculated cost for unfunded liability associated with S.B 409, Section 4, paragraph 4?
Mr. Pyne:
Their past service and their assets move over. There is no unfunded liability associated with this. If we had poor investment returns, or passed benefit improvements that we had not paid for, then we could have created an unfunded liability.
Senator Raggio:
At present, does the local employer pay the full cost of retirement for these jurists?
Mr. Pyne:
Yes.
Senator Raggio:
Will there be an impact on PERS, or the JRS, as far as the actuarial status?
Mr. Pyne:
There will be no adverse impact.
Senator Raggio:
What is the status of the JRS at this time?
Mr. Pyne:
Based on the $5 million appropriation from last session, the funded rate of the JRS is about 20 percent.
Senator Raggio:
We will close the hearing on S.B. 409, and open the hearing on Senate Bill (S.B.) 439.
SENATE BILL 439: Makes various changes concerning Public Employees’ Retirement System and Judicial Retirement System. (BDR 23-563)
Mr. Pyne:
I will now read my prepared text (Exhibit F), which addresses each proposed modification to S.B. 439.
Senator Raggio:
As indicated in S.B. 439, Section 3, is it a federal law that you cannot participate in both PERS and Social Security program? Does this dual coverage happen anywhere else? Are there still any district attorneys who have a private practice?
Mr. Pyne:
No. It is in the Nevada Revised Statutes (NRS) 286.486. I think this is the only instance of this.
Dana Bilyeu, Operations Officer, Public Employees’ Retirement Board, Public Employees’ Retirement System:
There are no district attorneys who also engage in private practice.
Senator Raggio:
Does the new 4-year academic degree requirement, in (S.B.) 439, Section 6, affect any of your current Public Employees Retirement Board officers?
Mr. Pyne:
It does not affect any current employees, including the executive officer.
Senator Raggio:
Does (S.B.) 439, Section 20, still allow a critical position to be filled by a retired employee? Does this also apply to an independent contractor?
Mr. Pyne:
This still allows retired employees to return. It does not apply to independent contractors. The change is intended to correct prior language, which referred to this concept as an unmodified benefit. This has a different meaning than a benefit based on age and service.
Senator Raggio:
Does this new language allow the employer to reconsider this at the end of a 2‑year period, and then again at the end of a subsequent 2-year period?
Mr. Pyne:
Yes. We are imposing a limitation to the exemption of our reemployment restrictions, and have filled 65 positions of critical need over the last 2 years. This provision will allow employers to reconsider this at the end of each 2-year period. We are going to do an actuarial experience study of the change in this statute in fiscal year (FY) 2004. This statute will sunset in FY 2005 unless the actuary determines either there is no cost associated with the legislation, or the funding is recognized in the contribution rate.
Senator Raggio:
How long is the single-survivor benefit paid to the beneficiary? If multiple beneficiaries are named, how long will they be paid?
Mr. Pyne:
The benefit is paid for the lifetime of the primary beneficiary.
Senator Raggio:
Hypothetically, if a retired, unmarried person designates three children as beneficiaries in a proportionate amount, what happens if that person remarries? Can the person designate the new spouse?
Mr. Pyne:
The person can change a beneficiary at any time. The changes on this bill only have to do with a person who has not retired. After a person is retired, the law remains the same, that is, it goes to the single person he designates.
Senator Raggio:
Is the percentage used to calculate benefits in (S.B.) 439, Section 33, the same one used in other retirement systems?
Mr. Pyne:
Yes.
Senator Raggio:
Does that require the Nevada Supreme Court to also designate critical need in 2‑year increments?
Mr. Pyne:
Yes.
Senator Raggio:
What is the language being stricken in (S.B.) 439, Section 37, line 34?
Mr. Pyne:
That corrects an issue from last session relating to service credit accumulation under the JRS. Under this provision, members with 22 years of service may accrue up to 75 percent of average compensation. This is because they have a benefit accrual rate of 3.4091 percent, rather than PERS rate of 2.5 and 2.67 percent. The problem comes when judges under PERS transfer to JRS, and their PERS service stays at the lower rate. The current reading of the statute limits accruals to less than 75 percent of average compensation. We are correcting language in the statute to change this.
Senator Raggio:
Is the 75 percent maximum consistent with the regular system? Is that the maximum amount a retiree can receive?
Mr. Pyne:
Yes. The maximum is 75 percent for members who were hired after July 1, 1985. Before that, it was 90 percent with 36 years of service.
Senator Raggio:
Is there a fiscal note?
Mr. Pyne:
There is no fiscal note.
Senator Raggio:
We will close the hearing on S.B. 439, and will now begin closing budgets.
Tracy Raxter, Program Analyst:
The first budget for closing is Budget Account (B/A) 101-1000.
Office of the Governor – Budget page ELECTED–1 (Volume 1)
Budget Account 101-1000
Staff recommends several technical adjustments to this account. Please follow as I read these adjustments on pages 1and 2 of the “Nevada Legislative Counsel Bureau Budget Closing Detail Report” for March 28, 2003 (Exhibit G. Original is on file in the Research Library).
Senator Raggio:
What was the amount of appropriation for the Office of Science, Innovation, and Technology?
Mr. Raxter:
In FY 2001-2003 biennium they were appropriated $230,000 in the first year and $205,000 in the second year. There was also an appropriation from the 1999 Legislature that was carried forward, of which $92,335 is remaining.
Senator Raggio:
What is the position of the budget office?
Sherry R. Blackwell, Budget Analyst, Budget Division, Department of Administration:
I do not currently have that information, but will provide it.
Senator Raggio:
Will there be federal funding for the two homeland security positions?
Mr. Raxter:
Yes. Those positions are federally funded. The possibility of that continuing is good, but we have not yet received confirmation of those funds.
Senator Raggio:
Do we have to put something in the budget to allow them to come back when the funding does come through?
Mr. Ghiggeri:
The current federal funds will run out in August 2003. If federal funds are continued, the agency can request approval by the Interim Finance Committee (IFC) of a continuation.
Senator Raggio:
Are the technical adjustments relatively minor as far as the General Fund impact?
Mr. Raxter:
Yes. It is $100 the first year, and $700 the second year of the biennium.
Senator Raggio:
I will accept a motion to approve the budget.
SENATOR CEGAVSKE MOVED TO CLOSE BUDGET ACCOUNT 101‑ 1000 WITH TECHNICAL ADJUSTMENTS RECOMMENDED BY STAFF.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR TIFFANY WAS ABSENT FOR THE VOTE.)
*****
Senator Mathews:
Does this motion include the Office of Science, Innovation and Technology?
Senator Raggio:
That was not included in the motion, and is waiting for the Governor to determine what to do about that office.
Mr. Raxter:
The $92,000 for that office is actually in a separate budget account that is not part of the Executive Budget.
Senator Mathews:
Could it be reverted without us coming back to vote on it?
Mr. Raxter:
It would require legislation to do that.
Senator Raggio:
The next budget item is B/A 101-1001, Mansion Maintenance.
Mansion Maintenance – Budget page ELECTED–4 (Volume 1)
Budget Account 101-1001
Mr. Raxter:
We recommend closure of this account as the Governor recommends, with just two small technical adjustments for property contents insurance, and Administrative Services Division cost allocations. Those adjustments total $700 in the first year, and $2500 in the second year of biennium.
Senator Raggio:
Is there anything the First Lady has requested which we have not considered in here?
Mr. Ghiggeri:
The budget office has not indicated that additional funding is required.
Senator Raggio:
If they find something that is necessary, we can reopen it. I will take a motion to close this budget in accordance with staff adjustments.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101 – 1001 WITH TECHNICAL ADJUSTMENTS RECOMMENDED BY STAFF.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY. (SENATOR TIFFANY WAS ABSENT FOR THE VOTE.)
*****
Senator Raggio:
The next item is B/A 101-1003.
Gov, Office of Consumer Health Assistance – Budget page ELECTED–13 (Volume 1) Budget Account 101-1003
Mr. Raxter:
Staff has made several technical adjustments to this budget account, which I will cover now in the budget closing report (Exhibit G), pages 8 and 9.
Senator Raggio:
Do we have a decision here on the payback to the Workers Compensation and Safety Fund?
Mr. Raxter:
This account is funded from several sources, General Fund, Workers Compensation and Safety Fund, and by hospital assessment. The statute is very clear that funding from the Workers Compensation and Safety Fund can only be used for consumer health assistance provided in the area of workers compensation. Previously, there was insufficient funding at the end of the year to revert the appropriate amount back to the Workers’ Compensation and Safety Fund. This has resulted in $122,000, which needs to be paid back from the General Fund. The Executive Budget recommends a payback over a 10-year period. Staff recommends that the full amount be paid over the 2003‑2005 biennium.
Senator Raggio:
What was the reason for the 10-year payback plan?
Mary Keating, Administrator, Administrative Services Division, Department of Administration:
We selected a 10-year payback based on previous payback plans that we have seen.
Senator Rawson:
We should pay it all off now.
Senator Raggio:
I do not understand why this relatively small amount of money should be handled as a 10-year payback.
Mr. Raxter:
The final item I will discuss in this budget is decision unit E-600. The Executive Budget recommends the elimination of one ombudsman position. There are four positions at the present time, and this one is currently vacant. The budget projects a 5 percent caseload growth. Assembly Bill (A.B.) 236 would add additional responsibilities to the agency in providing information about the prescription drug program.
Assembly Bill 236: Directs Office for Consumer Health Assistance to assist consumers in gaining information regarding certain prescription drug programs. (BDR 18-203)
E-600 Budget Reductions – Page ELECTED-15
Senator Raggio:
Will A.B. 236 restore this position?
Mr. Raxter:
A fiscal note attached to that bill indicates a need to continue this ombudsman position if they have to assume the additional responsibilities in the bill.
Mr. Ghiggeri:
I would suggest you close the budget with the position out because it is unknown at this time what action will be taken on A.B. 236. If the Senate Committee on Government Affairs decides to approve that legislation, we could put a General Fund appropriation in that legislation. The General Fund cost of that position $58,000 per year. The remaining $21,000 cost of the position would have to be an allocation from the Workers’ Compensation and Safety Fund.
Senator Mathews:
Why do we need four ombudsmen?
Mr. Raxter:
These positions actually handle the caseloads in the office. They actually do the research and resolve the cases. They have no additional staff.
Senator Coffin:
With the caseloads, population, and the workforce increasing, it would be a mistake to cut this position.
Senator Rawson:
I would not be in favor of the cut, if the position were currently filled. But since it is vacant, I think we can always add a new position later, if the need is great. I am for cutting this position.
Mr. Raxter:
There is one other issue in this budget account. Decision unit E-501 makes an adjustment to have 27 percent of this budget funded from the Workers’ Compensation and Safety Fund. Staff has made a $5000 technical adjustment to keep it at the 27 percent level.
E-501 Accessible, Flexible, Cost-Efficient Government – Page ELECTED-15
Senator Raggio:
How is the 27 percent determined? Does staff think that is an appropriate percentage?
Mr. Raxter:
The agency looked at the workload, factoring in the number of cases and the hours spent processing those cases. We only have 3 years of information on this, but based on that, we feel it is appropriate.
Senator Raggio:
I will accept a motion to close this budget, which will include the payback to the Workers’ Compensation and Safety Fund of $100,857 in FY 2003-2004, and $21,171 in FY 2004-2005, and the elimination of one ombudsman position. Also included are the adjustments for the 27 percent from the Workers’ Compensation and Safety Fund, and the other technical adjustments.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101 – 1003 WITH PAYBACK TO THE WORKERS’ COMPENSATION AND SAFETY FUND, ELIMINATION OF ONE OMBUDSMAN POSITION, THE 27 PERCENT ADJUSTMENT TO THE WORKERS’ COMPENSATION AND SAFETY FUND, AND TECHNICAL ADJUSTMENTS RECOMMENDED BY STAFF.
SENATOR TIFFANY SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR COFFIN VOTED NO.)
*****
Mr. Raxter:
One more comment on this budget item. I was informed this morning that the agency is recommending that they eliminate their Carson City office and move all staff to Las Vegas. Staff requests approval to make a technical adjustment in the budget to allow for that.
Senator Raggio:
I would like to hear a motion on approving this budget item again, with this additional technical adjustment added.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101 – 1003 WITH PAYBACK TO THE WORKERS’ COMPENSATION AND SAFETY FUND, ELIMINATION OF ONE OMBUDSMAN POSITION, THE 27 PERCENT ADJUSTMENT TO THE WORKERS’ COMPENSATION AND SAFETY FUND, AND TECHNICAL ADJUSTMENTS RECOMMENDED BY STAFF.
SENATOR TIFFANY SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR COFFIN VOTED NO.)
*****
Senator Raggio:
The next item is B/A 101-1020, Lieutenant Governor.
Lieutenant Governor – Budget page ELECTED–20 (Volume 1)
Budget Account 101-1020
Mr. Raxter:
Staff recommends the technical adjustments listed in the budget closing report (Exhibit G), pages 12 and 13.
Senator Raggio:
In decision unit E-600, are those the items that were utilized to make up the 3 percent budget reduction? Are we restoring those items in decision unit E‑500?
E-600 Budget Reductions – Page ELECTED-22
E-500 Accessible, Flexible, Cost-Efficient Government – Page ELECTED-22
Mr. Raxter:
Yes. We are restoring some of those items in E-500. It is basically a realignment of the expense authority.
Senator Raggio:
What is the host fund mentioned in decision unit E-175?
E-175 Increase Non-Gaming Business – Page ELECTED-21
Mr. Raxter:
This agency has a host fund each year. They are requesting an additional $1000 in the first year of the biennium. In FY 2002 they spent $849 hosting tourism and economic development officials. Note in the current biennium, the actual funding level authorized by the last Legislature was $4000 a year.
Senator Raggio:
Did staff make some adjustments on the revised pricing of the desktop computers? Is that reflected in the budget closing sheet (Exhibit G).
Mr. Raxter:
Yes. These adjustments total approximately $110 per year.
Senator Raggio:
Do I have a motion to close this budget item?
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101 – 1020 WITH TECHNICAL ADJUSTMENTS RECOMMENDED BY STAFF.
SENATOR CEGAVSKE SECONDED THE MOTION.
Senator Coffin:
I will speak in support of the motion primarily because of the travel costs the Lieutenant Governor and the Legislature are going to incur. Our travel budget is going to run out before the session is over. Our airfare has risen from $127 to $181 per round trip ticket.
THE MOTION CARRIED UNANIMOUSLY.
*****
Senator Raggio:
The staff will need to look at the increased cost of airfare, and how it will affect those who need to fly here.
Mr. Ghiggeri:
Our office does not have information that would clearly identify the amount of funding that is recommended in the budget for airplane tickets, so we must defer to the budget office on that. Last session, funding was increased for per diem rates, but no additional funding was put in the fund upon closing. This is a decision the Legislature would have to make.
Senator Raggio:
I need you to work with the budget office to find out if we have an immediate problem, as well as problems in the next biennium.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101 – 1001 WITH TECHNICAL ADJUSTMENTS RECOMMENDED BY STAFF.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR TIFFANY WAS ABSENT FOR THE VOTE.)
*****
Senator Raggio:
Let us go now to B/A 101-1130.
Controller’s Office – Budget page ELECTED–74 (Volume 1)
Budget Account 101-1130
Mr. Raxter:
There are two major adjustments in this budget account, decision units E‑275 and E-276 (Exhibit G), page 18.
E-275 Working Environment & Wage – Page ELECTED-76
E-276 Working Environment & Wage – Page ELECTED-76
Senator Raggio:
Did they request anything in addition to these two positions? How is this related to debt collection?
Mr. Raxter:
The Accountant III position would work in the debt collection area. The agency is trying to take advantage of the Integrated Financial System (IFS) functionality to improve the State’s debt collection effort.
Senator Mathews:
Professionals should be responsible for his or her own certifications and recertifications. I would support this budget except for that.
Senator Raggio:
Have we supported that in the past, or is this a new request?
Mr. Raxter:
There is ongoing training in this budget.
Senator Mathews:
Would this be new?
Mr. Raxter:
The agency has indicated the training opportunities, provided by the additional funding, would support the duties of these positions.
Mr. Ghiggeri:
When they submitted the budget request, they indicated the funding would be used for continuing education. Later, Mr. Raxter was advised that this training would keep the employees at the controller’s office abreast of issues they are required to know in preparing the annual report and other governmental accounting standards board issues. The training funds approved by the 2001 Legislature were $51,817. The Governor’s recommended budget is $38,500, in FY 2004, and $43,000 in FY 2005.
Senator Mathews:
So this is really for training, and as a by-product, it will help them maintain their certified public accountant licenses.
Mr. Raxter:
That is correct. The controller’s office has responsibility for numerous federal issues that require on-going training.
I will now discuss enhancements E-902 and E-910 on page 18 (Exhibit G).
Senator Raggio:
Are the changes in E-902 reflected in the Department of Information Technology (DoIT) budget also? Is the software mentioned in decision unit E-910 connected to the IFS? Are they continuing costs? Is this appropriate?
E-902 Transfer Helpdesk Position From DoIT – Page ELECTED-77
E-910 Transfer of On-Going IFS Support Costs From Budget Acct 1320 – Page ELECTED-78
Mr. Raxter:
Yes. Staff made a technical adjustment to insure that the transfer cost between DoIT and the controller’s office agree. The software licenses cost are related to the IFS. These costs are continuing and appropriate. Additionally, staff has made technical adjustments in computer pricing, building rents, and in the DoIT planning and contract assessment.
Senator Raggio:
I will entertain a motion on budget item B/A 101-1130.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101 – 1130 WITH TECHNICAL ADJUSTMENTS RECOMMENDED BY STAFF THAT INCLUDES TWO POSITIONS RECOMMENDED BY THE GOVERNOR AND TRAINING FOR PURPOSES INDICATED.
SENATOR CEGAVSKE SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Senator Raggio:
The next budget item to be closed is B/A 101-1490.
District Judge’s Salary – Budget page COURTS–29 (Volume 1)
Budget Account 101-1490
Julie Brand, Program Analyst:
We recommend this account be closed as recommend by the Governor. Senate Bill (S.B.) 439, which was discussed earlier in this hearing, states that a technical adjustment must not be made if the existing contribution rate is within .5 of 1 percent. Currently the rate is below that limitation.
Senator Raggio:
Do I have a motion to close this item?
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101 – 1490 AS RECOMMENDED BY THE GOVERNOR.
SENATOR CEGAVSKE SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Ms. Brand:
The next item is B/A 101-1498.
Judicial Selection – Budget page COURT–38 (Volume 1)
Budget Account 101-1498
This account has no major closing issues. However, see staff comments regarding decision unit E-500, page 21 (Exhibit G).
E-500 Accessible, Flexible, Cost-Efficient Government – Page COURTS-38
Senator Raggio:
Why did they not utilize the earlier funding? Do they intend to conduct the workshop in the future?
Ms. Brand:
They were not able to use all of it due to time constraints. They do intend to hold the workshop.
Senator Raggio:
It is a small amount, and I do not think we should penalize them if they had the intent to hold the workshop.
Senator Raggio:
Is there a motion to approve the budget?
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101 – 1498 AS RECOMMENDED BY THE GOVERNOR.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Senator Raggio:
The next item is B/A 101-3153.
HR, Cancer Control Registry – Budget page HEALTH–12 (Volume 2)
Budget Account 101-3153
E-710 Replacement Equipment – Page HEALTH-14
Bob Atkinson, Program Analyst:
This account has two technical adjustments described on page 22 (Exhibit G). The estimated federal grant revenue has been updated based on the most recent grant award notification. Personal expenditures have been updated to include the cost of the continuation of a new program officer position approved by the IFC. Additionally, in decision unit E-710 the price of one replacement computer each year has been adjusted to reflect the most recent prices available through the State Purchasing Division. Staff recommends approval of the remaining software, hardware, and furnishings in this decision unit.
Senator Raggio:
Is the funding for this budget item entirely federal money?
Mr. Atkinson:
No. There is currently $1.2 million in the account. There are also two federal grants, which total $500,000.
Senator Raggio:
There has always been some concern about the efficacy of the program.
Senator Rawson:
We have the sense that this program has been struggling for some time. I think the cancer registry is important, but we want to be assured that this funding is properly spent.
Mr. Atkinson:
Funding from the 71st Legislative session was not as large. In the interim, they received an annual federal grant of $500,000 from the Department of Energy to improve data in the registry. Most of the larger reporters are self-reporting, and there is concern about the integrity of the data. That recent federal grant funded some positions, but the focus of those positions is the integrity of the data.
Senator Rawson:
The birth defects registry failed because a federal grant did not materialize. Will that same registry administer this one?
Mr. Atkinson:
The birth defects registry still exists, but without that federal funding it will be a passive registry rather than one out seeking information.
Senator Rawson:
There was a suggestion that birth certificate fees would be increased $1 to help support the birth defects registry.
Mr. Ghiggeri:
I believe the Joint Subcommittee on Human Resources will be reviewing the Office of Vital Records and Statistics budget tomorrow. The revenue from that office flows into the General Fund.
Senator Raggio:
Has this been effective in dealing with the cancer clusters?
Senator Coffin:
I support the Governor’s recommendation on this. There is no other way of assuring our population that we are maintaining records. A cluster is never discovered in advance, nor in the process of it occurring. So you must have a registry to try to help figure out what is happening. If we do not keep this chain of information alive, we have a problem. We have always had a hard time getting the information from the hospitals, particularly the private hospitals.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101 – 3153 AS RECOMMENDED BY THE GOVERNOR.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Mr. Atkinson:
Was Senator Rawson’s motion intended to be as the staff recommended, which includes technical adjustments, or as the Governor recommended?
Senator Rawson:
It was intended to include your technical adjustments.
Senator Raggio:
Do I have a motion on B/A 101-3153, which includes the technical adjustments?
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101 – 3153 AS RECOMMENDED BY THE GOVERNOR WITH TECHNICAL ADJUSTMENTS RECOMMENDED BY STAFF.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Senator Raggio:
Let us go to the next item, B/A 101-3101.
HR, Radiological Health – Budget page HEALTH– 23 (Volume 2)
Budget Account 101-3101
E-710 Replacement Equipment – Page HEALTH-26
Mr. Atkinson:
I will go over the closing issues and recommendations, on pages 23 and 24 (Exhibit G). In March 2003, the Executive Branch Audit Committee recommended that the Health Division increase licensing fees sufficient to cover the costs of administering the program and to increase staffing levels to ensure that the program is operating effectively and that it comply with state and federal requirements. The health division accepted the recommendations included in the audit. In order to allow the division time to implement these recommendations the committee may wish to consider approving the$264,177 General Fund appropriation in this account for FY 2003-2004 and eliminating the General Fund appropriation of $ 253,356 in FY 2004-2005, except for $100 to allow access to the Contingency Fund, replacing the General Fund appropriation with fee revenue. If approved, the committee may wish to send a Letter of Intent directing the division to comply with the fee and staffing recommendations of the audit. . Additionally, in decision unit E-710 the price of seven replacement computers over the biennium has been adjusted to reflect the most recent prices available through the State Purchasing Division. Staff recommends approval of the remaining software, hardware, and furnishings in this decision unit.
Senator Raggio:
Will the increased fees cover compliance with state and federal requirements?
Mr. Atkinson:
Yes. Experiences in other states show the fees would increase considerably more if we go back to having the federal government do it.
Senator Raggio:
So they have the authority under existing regulations to increase the fees? How much of the General Fund portion would be required to cover this?
Mr. Atkinson:
Yes. The State Board of Health does have that authority. Currently it regulates 1400 radiation-producing machines. The operators of these machines pay an annual fee of $30 to $140. The board regulates 415 mammography machines and the operators each pay from $50 to $500. The board also regulates 280 radioactive material users who pay $50 to $1000. The fees have not been changed since 1995.
Senator Rawson:
A lot of those are dental or medical office Xray machines. There will be an impact on the university system because they too have a lot of equipment. I would not expect that cost to be less than $100,000. We need a note showing this will affect the University and Community College System of Nevada (UCCSN).
Senator Raggio:
Let us ask UCCSN for that information.
If we eliminate all but $100 of the appropriation in FY 2004-2005, can the Health Division then utilize the $100, and a letter of intent, to later access the contingency fund?
Mr. Atkinson:
Yes. We wanted to leave the door open so they could come back to the contingency fund if there was an adverse impact. We recommend the General Fund remove $253,356 from FY 2005, with the understanding that they would have access to the contingency fund in the second year of the biennium. We would leave the unreduced General Fund revenue in for FY 2004.
Senator Mathews:
I am concerned about the federal workers who operate the large new Xray machines at our airports. Why is the federal government not monitoring their radiation exposure more closely?
Senator Rawson:
I think there is a transition in authority here. We should instruct the Health Division to verify that there is proper monitoring of these people. I think we can do that with a letter from this committee.
Senator Coffin:
I do not know what authority our Health Division will have over these federal employees, but these are Nevadans, as well as federal employees. We should also write our congressional delegation to find out if they are looking into this.
Mr. Atkinson:
We did send a question to the Health Division and they indicated the Xray machines are under the authority of the federal government. Because they are on public property, the State has a right to check them, but they must first obtain permission from the federal government.
Senator Mathews:
When I asked at the airport, I was told the radiation monitoring badges were no longer needed. I would like somebody to follow up on this.
Senator Rawson:
I recommend we have the Health Division verify there is adequate monitoring.
Senator Raggio:
I will ask staff to work on a letter that shows our interest and concern.
I will now take a motion to close this budget.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101 – 3101 WITH A STAFF RECOMMENDATION FOR REMOVING THE GENERAL FUND FROM FY 2005 AND ALLOWING LATER ACCESS TO THE CONTINGENCY FUND BY A LETTER OF INTENT.
SENATOR CEGAVSKE SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Senator Raggio:
The next budget item will be B/A 251-3152.
HR, Health Radioactive & Hazardous Waste – Budget page HEALTH–28 (Volume 2) Budget Account 251-3152
I will now read the technical adjustments on page 25 (Exhibit G).
Senator Raggio:
Do they still bring new waste into the Beatty facility? Is there revenue from that?
Mr. Atkinson:
They no longer accept radioactive waste. They do still accept some other kinds of hazardous waste. The Division of Environmental Protection collects a fee based on the volume of the waste deposited there. A portion of this fee goes into the Perpetual Care Fund.
Senator Raggio:
How do they spend the money in the Perpetual Care Fund? Why is the fund growing?
Mr. Atkinson:
They spend about $100,000 for maintenance. It grows because the interest on the account exceeds the amount that is spent out of the account.
Senator Coffin:
The groundwater below this site ultimately flows not only into Death Valley, but also into the water used by the local dairy farmers. These farms supply a large amount of dairy products to the people of southern Nevada. We want to be sure that this disposal site is always monitored.
Senator Rhoads:
Does this money revert back to the General Fund? What is the purpose of leaving it there?
Senator Raggio:
Is the Perpetual Care Fund set up by State statute?
Mr. Atkinson:
The current expenditures are now relatively close to the amount it earns, which indicates the amount is not too large. If a problem does arise, they will go through the money quickly.
Senator Coffin:
There is not enough monitoring of the water there. Once you deduce there is a problem, it may take $50 million to fix it.
Senator Rawson:
They do have wells and they do check the groundwater.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101 – 3152 AS RECOMMENDED WITH TECHNICAL ADJUSTMENTS RECOMMENDED BY STAFF.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Senator Raggio:
The next item to be closed is B/A 746-3211.
Safe Water Drinking Act – Budget page HEALTH–31 (Volume 2) Budget Account 746-3211
Mr. Atkinson:
The only adjustment we made on this budget is in the prices of the three computers mentioned in decision unit E-710. Also note on page 26 (Exhibit G), Assembly Bill (A.B.) 473 has been introduced to transfer this budget account to the Division of Environmental Protection.
Assembly Bill 473: Transfers authority to administer certain accounts that provide financial assistance to public water systems from Health Division of Department ofHuman Resources to Division of Environmental Protection of State Department of Conservation and Natural Resources. (BDR 40-1252)
E-710 Replacement Equipment – Page HEALTH-32
Senator Raggio:
What is the purpose of transferring this budget account?
Mr. Atkinson:
Utilizing funds from federal grants, and the sale of bonds, the Safe Drinking Water Program grants loans to public water systems so they can bring their water systems up to compliance with the Safe Drinking Water Act.
Senator Raggio:
Did we have a similar measure earlier that included sewers? Was that a different fund?
Mr. Ghiggeri:
Those were bills that came out of the Senate Committee on Government Affairs, which provided funding for sewer repairs.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 746-3211 WITH TECHNICAL ADJUSTMENTS RECOMMENDED BY STAFF.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Senator Raggio:
We will now discuss B/A 101-3255. Is this the earmarked money from the alcohol tax? How much money will this bring in each year?
HR, Health Alcohol Tax Program – Budget page HEALTH– 91 (Volume 2) Budget Account 101-3255
Mr. Atkinson:
That is correct. This account will collect 15 cents per gallon of the alcohol tax. This is anticipated to bring in $773,000 in FY 2003.
Senator Rawson:
If the alcohol taxes are later raised, and those adjustments are made after the closing, will we want to close the budget the way it is?
Mr. Atkinson:
If this tax were later increased, we would have to raise the authority on this account.
Senator Raggio:
The proposal is for additional taxes for General Fund purposes, but we are talking about only the earmarked portion here.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101-3255 WITH TECHNICAL ADJUSTMENTS RECOMMENDED BY STAFF.
SENATOR RHOADS SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Senator Raggio:
We will discuss closing B/A 101-1011.
Washington Office – Budget page ELECTED–7 (Volume 1) Budget Account 101‑ 1011
Bob Guernsey, Principal Deputy Fiscal Analyst:
I will now review the issues on pages 4 and 5 (Exhibit G).
Senator Raggio:
Why is there an increase in this request?
Ms. Blackwell:
This requested increase is due to an increase in activity by the Washington office.
Senator Raggio:
So you are saying this budget should be increased by $7800?
Mr. Guernsey:
If you decided to continue the activities of the office, and based upon the statement from the budget office, I would recommend $7800.
Senator Raggio:
What does the Washington office suggest we do with that request from the Nevada Department of Transportation (NDOT) to augment their contract?
Mr. Guernsey:
They are supportive of it.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101-1011 WITH THE TECHNICAL ADJUSTMENT OF THE $7800 INCREASE RECOMMENDED BY STAFF.
SENATOR COFFIN SECONDED THE MOTION.
Senator Rhoads:
On page 5, (Exhibit G) why is there an expense for $55,920 in taxes?
Mr. Guernsey:
It reflects expenses separate from salary expenses, such as miscellaneous salary expense items and payroll taxes. They have two employees there. I am not sure what it includes.
Senator Raggio:
Please find out that information for us.
THE MOTION CARRIED UNANIMOUSLY.
*****
Senator Raggio:
The next item we have for closing is B/A 101-1005.
High Level Nuclear Waste – Budget page ELECTED–9 (Volume 1) Budget Account 101-1005
Mr. Guernsey:
There are no major issues. Staff is recommending three technical adjustments as shown on page 7 (Exhibit G).
Senator Raggio:
If the federal funds cannot be used for personal or operating costs, are we in compliance with federal audit requirements?
Mr. Guernsey:
The Agency for Nuclear Projects, Executive Director, Robert Loux, has indicated that they are in compliance. They need the General Fund appropriation for operating costs.
Senator Raggio:
What is the reason for the 9 percent increase?
Mr. Guernsey:
The increase is to cover salary increases, health costs, and other costs that the budget office had to incorporate into the base.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101-1005 WITH TECHNICAL ADJUSTMENTS RECOMMENDED BY STAFF.
SENATOR CEGAVSKE SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR TIFFANY WAS ABSENT FOR THE VOTE.)
*****
Senator Raggio:
We will now discuss B/A 101-1343.
Ethics Commision – Budget page ELECTED – 66 (Volume 1) Budget Account 101-1343
Mr. Guernsey:
I will cover these closing issues on pages 14 through 16 (Exhibit G). It is our understanding that the budget office is not supportive of the augmented requests of $26,880 in FY 2004, and $28,235 in FY 2005, which are shown on page 16.
Senator Raggio:
Is this augmented request the result of the Las Vegas Ethics Commission being dissolved?
Mr. Guernsey:
Yes. It will create an additional workload for this Ethics Commission. It sounds like there are ongoing issues.
Ms. Blackwell:
If they can justify the need in the future, we will consider it.
Senator Raggio:
What is the host fund shown on page 15 (Exhibit G)? Would this be setting a precedent?
Mr. Guernsey:
It is a fund used to purchase beverages for meetings. It would be setting a precedent.
Ms. Blackwell:
We are in support of this. We do not think the commission members should have to go without these refreshments.
Senator Raggio:
We have many commissions who may also ask for a fund like this. I do not think it is wise at this time to set that precedent.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101-1343 THAT WOULD INCLUDE INCREASES IN DECISION UNIT E-275, BUT DOES NOT INCLUDE THE ADDITIONAL REQUEST FOR INVESTIGATIONS OR THE HOST FUND, BUT DOES INCLUDE TECHNICAL ADJUSTMENTS RECOMMENDED BY STAFF.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR TIFFANY WAS ABSENT FOR THE VOTE.)
*****
Senator Mathews:
Are we including E-275 with the amounts of $26,880 in FY 2004, and $28,235 in FY 2005 in this motion?
Senator Raggio:
Yes, they are included. We will now cover B/A 101– 4868.
Energy Conservation – Budget page ELECTED–17 (Volume 1) Budget Account 101-4868
Joyce Garrett, Program Analyst:
There are no major closing issues in this account. With the exception of the technical adjustments shown on page 11 (Exhibit G), staff recommends this account be closed.
Senator Raggio:
Where do they get the money for this program?
Ms. Garrett:
It is funded by a federal grant from the U.S. Department of Energy.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101-4868 WITH TECHNICAL ADJUSTMENTS RECOMMENDED BY STAFF.
SENATOR CEGAVSKE SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR TIFFANY WAS ABSENT FOR THE VOTE.)
Senator Raggio:
This meeting is adjourned at 10:34 a.m.
RESPECTFULLY SUBMITTED:
Michael Archer,
Committee Secretary
APPROVED BY:
Senator William J. Raggio, Chairman
DATE: