MINUTES OF THE
SENATE Committee on Finance
Seventy-second Session
April 9, 2003
The Senate Committee on Finance was called to order by Chairman William J. Raggio at 8:14 a.m. on Wednesday, April 9, 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
GUEST LEGISLATORS PRESENT:
Senator Randolph J. Townsend, Washoe County Senatorial District No. 4
STAFF MEMBERS PRESENT:
Gary L. Ghiggeri, Senate Fiscal Analyst
Bob Guernsey, Principal Deputy Fiscal Analyst
Julie Brand, Program Analyst
Tracy Raxter, Program Analyst
Judy Coolbaugh, Committee Secretary
OTHERS PRESENT:
John P. Comeaux, Director, Department of Administration
George Pyne, Lobbyist, Public Employees’ Retirement System
Carlos Brandenburg, Ph.D., Administrator, Division of Mental Health and Developmental Services, Department of Human Resources
Joseph Tyler, National Association for the Mentally Ill of Northern Nevada
Donna Marie Shibovich
Jenita Rodriguez, Mental Health Planning Advisory Council
David Ward, Reno, Chairman, Commission on Mental Health and Developmental Services, Department of Human Resources
Tom Wood, Lobbyist, Pharmaceutical Research/Mfrs. Of America
Mark D. Armerding, Lobbyist, Nevada Psychiatric Association
Patrick L. McGill, Highway Patrol Trooper 2, Nevada Highway Patrol, Department of Public Safety
Gary H. Wolff, Lobbyist, Teamsters Local 14
Ronald P. Dreher, Lobbyist, Peace Officers Research Association of Nevada
Gary L. Ghiggeri, Senate Fiscal Analyst, Fiscal Analysis Division, Legislative Counsel Bureau:
There are three bills in committee that are non-exempt. The first bill is Senate Bill (S.B.) 345, which provides direction to the Public Employees’ Retirement System regarding payment of certain benefits.
SENATE BILL 345: Provides direction to Public Employees’ Retirement System regarding payment of certain benefits. (BDR 23-88)
Mr. Ghiggeri:
This legislation deals with disability benefits that are to be paid to retired employees. The second bill is S.B. 401, which provides for a revision of the provisions concerning the deposit of money received from concessions within the Division of State Parks.
SENATE BILL 401: Revises provisions concerning disposition of money received from concessions on property within state park or property controlled or administered by Division of State Parks of State Department of Conservation and Natural Resources. (BDR 35-1262)
Mr. Ghiggeri:
This bill addresses an audit exception. The Department of Administration has indicated there is no fiscal impact to this legislation. The third bill is S.B. 439, which makes various changes concerning the Public Employees’ Retirement System and the Judicial Retirement System.
SENATE BILL 439: Makes various changes concerning Public Employees’ Retirement System and Judicial Retirement System. (BDR 23-563)
Senator Raggio:
Are there any questions on the three bills? If we act on them, the bills will have to be out of this committee not later than Friday, April 11, 2003. We have a request for additional funding from Major General Giles E. Vanderhoof, The Adjutant General of Nevada, Office of the Military, who indicates there will be a shortfall in utility costs for the current fiscal year. The letter and attachment, “FY 03 Military Budget Fact Sheet,” are entered into the record as Exhibit C. The fact sheet states the Office of the Military has cut its budget wherever possible. The fiscal staff has reviewed the shortfall and recommends a supplemental appropriation of $131,604.
Mr. Ghiggeri:
That is correct. The staff recommends the committee obtain a bill draft request (BDR) to provide for this supplemental appropriation. Although the fiscal staff has not had an opportunity to completely analyze the dollar amount, it will do so by the time the BDR is referred back to the committee. The Office of the Military requires the supplemental appropriation no later than May 15, 2003.
Senator Raggio:
On the third sheet of Exhibit C, the BDR language is suggested. If there are no questions, I will accept a motion to obtain a BDR for an appropriation in the amount of $131,604 from the General Fund to go to the Office of the Military.
SENATOR RAWSON MOVED TO OBTAIN A BDR FOR A GENERAL FUND APPROPRIATION IN THE AMOUNT OF $131,604 FOR THE OFFICE OF THE MILITARY.
SENATOR RHOADS SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR COFFIN WAS ABSENT FOR THE VOTE.)
*****
Senator Raggio:
The committee is directed to S.B. 108, requested by the Nevada Supreme Court, for an additional administrative assessment fee to be collected in certain misdemeanor cases.
SENATE BILL 108: Provides for additional administrative assessment to be collected in certain cases involving misdemeanors to pay for certain programs established by district courts. (BDR 14-615)
The Nevada Supreme Court has indicated this assessment fee is unnecessary, and the bill can be withdrawn. I will accept a motion to withdraw the bill.
SENATOR RAWSON MOVED TO INDEFINITELY POSTPONE S.B. 108.
SENATOR TIFFANY SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR COFFIN WAS ABSENT FOR THE VOTE.)
*****
Senator Raggio:
The committee is directed to S.B. 246, which makes a supplemental appropriation to the Nevada Supreme Court for an unanticipated shortfall in the collection of administrative assessments for fiscal year (FY) 2002-2003. The fiscal staff reviewed the requested amount and determined more funds were needed.
SENATE BILL 246: Makes supplemental appropriation to Supreme Court of Nevada for unanticipated shortfall in money for Fiscal Year 2002-2003 resulting from deficit in collection of administrative assessments. (BDR S‑1223)
Mr. Ghiggeri:
It is true that more funding is required than the $500,748 requested in the Executive Budget. The staff has estimated the amount should be $604,687. The courts have indicated the amount of the shortfall will be $696,846. The difference is attributable to some annualization of costs. The collections for the fiscal year to date have not been completely annualized by the courts, but fiscal staff has projected the amount of annualization. The staff would recommend the bill be amended to read $610,000. If the courts require additional funding, an additional supplemental amount could be placed in the Appropriations Act. At that point in time, the additional collections amount will be available from the administrative assessments. The courts can request an advance from the General Fund up to one-twelfth of their prior year receipts for cash-flow purposes. The courts receive approximately $300,000 per month from the assessments.
Senator Raggio:
The courts have indicated the balance in the account is down to approximately $200,000. It seems prudent that we allocate the funds required.
Senator Tiffany:
Will the amount be a loan?
Senator Raggio:
No, the funds will come from the General Fund.
Senator Tiffany:
Do we have the money?
John P. Comeaux, Director, Department of Administration:
Based on the department’s forecast, the funds will be available. The withdrawal will draw down the fund balance below the 5 percent level by the end of the year.
Senator Raggio:
At this point, funds are available. Is that correct?
Mr. Comeaux:
Yes, that is correct.
Senator Raggio:
I will accept a motion to amend S.B. 246 to show an amount of $610,000 with the understanding that as additional assessments are collected an adjustment might be required. Adjustments can be made in the Appropriations Act, or the courts can utilize the authority under Nevada Revised Statutes (NRS) 353.359 to receive a General Fund advance for cash-flow purposes.
SENATOR RAWSON MOVED TO AMEND AND DO PASS S.B. 246 AS AMENDED BY AUTHORIZING AN AMOUNT OF $610,000 INSTEAD OF $500,748 TO ALLOW ADJUSTMENTS AS DISCUSSED.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR COFFIN WAS ABSENT FOR THE VOTE.)
*****
Senator Raggio:
The committee is directed to S.B. 409. The bill authorizes the justices of the peace and municipal judges to participate in the Judicial Retirement Plan under certain circumstances. The staff recommends the effective date should be changed to July 1, 2003, to allow for a transition period at the beginning of FY 2004.
SENATE BILL 409: Authorizes justices of the peace and municipal judges to participate in Judicial Retirement Plan under certain circumstances. (BDR 1-414)
George Pyne, Lobbyist, Public Employees’ Retirement System:
The Public Employees’ Retirement System (PERS) business is conducted on a fiscal year basis. The date change would facilitate the transition. I did have a brief conversation with the judges and I believe they are agreeable to that date.
Senator Raggio:
Is it correct to say the retirement board of PERS has no problem with this legislation?
Mr. Pyne:
At this time, the retirement board has not taken a position on the bill.
Senator Raggio:
If you anticipate the retirement board will have a problem with this bill, the committee needs to know that now. The committee is acting on the assumption from testimony in its hearing that the date change was not of consequence to the PERS.
Mr. Pyne:
The recommendation to the retirement board is it should take a neutral position on this bill, and it is believed the board will agree on that position.
Senator Raggio:
It is the understanding of the committee there are people serving as justices of the peace and municipal judges who will have to go beyond the 22 year requirement in order to qualify for retirement. Is this correct?
Mr. Pyne:
In the PERS plan a person needs to work 30 years to receive the 75 percent maximum at retirement. To receive the 75 percent maximum at retirement in the judicial plan, 22 years of service are required.
Senator Raggio:
I will accept a motion to amend and do pass by changing the effective date.
SENATOR RAWSON MOVED TO AMEND AND DO PASS S.B. 409 AS AMENDED BY CHANGING THE EFFECTIVE DATE TO JULY 1, 2003.
SENATOR MATHEWS SECONDED THE MOTION.
Senator Cegavske:
Will the fiscal note still be the same even though the date will be changed?
Senator Raggio:
The fiscal note does not change.
Senator Cegavske:
Do we have the funds available?
Senator Raggio:
This particular legislation deals with local government expenditures. It does not impact the State’s General Fund.
Senator Cegavske:
I noticed the bill says there is a State fiscal impact. That is why I am asking for clarification.
Senator Raggio:
As far as the State is concerned, there is no cost to the PERS because the positions are not State funded. Mr. Pyne, is there any cost to the State?
Mr. Pyne:
This is enabling legislation that would permit the counties’ and cities’ governments to allow their respective judges to participate in the PERS, if they pay the higher contributions into the plan. The way the legislation is designed there are no additional costs to the State in terms of higher contribution rates. There is an administrative cost to the PERS of approximately $20,000 for additional paperwork and that amount appears in the fiscal note.
THE MOTION CARRIED. (SENATOR COFFIN WAS ABSENT FOR THE VOTE.)
*****
Senator Raggio:
For the record, indicate Senator Coffin has arrived and reviewed the bill and motion, and he concurs. For the record, the motion carried unanimously. The committee is directed to S.B. 415, which has a proposed amendment to change the effective date from July 1, 2003, to “passage and approval.” This bill removes restrictions on the use of funds in the estate tax account of the endowment fund of the University and Community College System of Nevada (UCCSN).
SENATE BILL 415: Removes certain restrictions on use of money in Estate Tax Account in Endowment Fund of University and Community College System of Nevada. (BDR 32-1264)
Senator Raggio:
Since federal law is phasing out the estate tax, this bill is necessary to permit the UCCSN utilization of the remaining balance in the estate tax fund. If the committee passes the bill, the effective date should be changed to “on passage and approval.”
SENATOR RAWSON MOVED TO AMEND AND DO PASS S.B. 415 BY CHANGING THE EFFECTIVE DATE TO “ON PASSAGE AND APPROVAL.”
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Senator Raggio:
The committee is directed to S.B. 439. The PERS representatives came to the April 7, 2003, hearing on this bill and indicated the request is to change the name designation of firemen to firefighters.
The bill also requires some higher qualifications for certain administrative persons employed by the PERS. There was an issue on limiting the length of time for which a monthly service retirement may be paid when there is a critical labor shortage. The PERS recommended this bill, and the changes do not affect the retirement rates. Is that correct, Mr. Pyne? For the record, show I am directing the question to Mr. Pyne and he is nodding approval. I will accept a motion to do pass.
SENATOR RAWSON MOVED TO DO PASS S.B. 439.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Senator Raggio:
This committee is in recess at 8:33 a.m. until the Senate Committee on Finance hears an Interim Finance Committee meeting.
The Senate Committee on Finance hearing is reopened at 9:12 a.m. The first item on the agenda is S.B. 301, which creates a Nevada Mental Health Plan Implementation Commission.
SENATE BILL 301: Creates Nevada Mental Health Plan Implementation Commission. (BDR S-969)
Senator Randolph J. Townsend, Washoe County Senatorial District No. 4:
About a year ago, I was fortunate enough to be appointed to President Bush’s New Freedom Commission on Mental Health. This bill will establish a Mental Health Implementation Commission to analyze the results of the President’s commission and apply those findings to this State. Three members of the commission are to be appointed by the majority leader of the Senate and another three, by the speaker of the Assembly. The commission will also include the administrator of the Division of Mental Health and Developmental Services of the Department of Human Resources, the chief of the Bureau of Alcohol and Drug Abuse within the Health Division of the Department of Human Resources, the administrator of the Division of Health Care Financing and Policy of the Department of Human Resources, and the administrator of the Division of Child and Family Services of the Department of Human Resources.
The specifics of serving on the commission are outlined in the bill, but there are two items that need to be amended. Originally, the plan was to have the commission begin work as soon as this Legislative session is adjourned, and the commission’s report would be ready for implementation on January 1, 2004. The executive secretary of the President’s commission alerted me that the report received from the New Freedom Commission on Mental Health will not be made public until the President receives it and decides to make the report public. Therefore, one recommended amendment to the bill is that this State’s commission not start work until after the President’s report has been made public and has run for 6 months. It will also be necessary to amend Section 4, subsection 2, on page 3, to say the commission shall submit a report setting forth this State’s action plan by January 1, 2005.
Senator Rawson:
We have a budget for interim studies through the Legislative Commission. A fiscal note may be avoided on this bill by dealing through the Legislative Counsel Bureau to fund any staffing or travel.
Senator Townsend:
That is an important point. When I started working on this bill, I debated whether or not the commission should be put into the standing committee on mental health care. I chose not to do so in order to raise the level of importance of the commission. Any method this committee chooses to assign the financial responsibility is fine. The goal of the commission is to determine what is applicable and helpful to the State and to remain within budget constraints.
Senator Raggio:
The fiscal note the committee has from the Division of Mental Health and Developmental Services shows only $695 for FY 2004. The Legislative Counsel Bureau would fund the travel for the six legislators who will serve on the commission. Is that correct?
Carlos Brandenburg, Ph.D., Administrator, Division of Mental Health and Developmental Services, Department of Human Resources:
It is my understanding the amount of $695 is the total cost to be incurred. There are six trips including three to Las Vegas.
Senator Raggio:
Is this expenditure based on a total of six meetings in FY 2004? It was my understanding the meetings are not likely to occur.
Mr. Brandenburg:
It will probably be a total of six meetings over the biennium. Three meetings will be held in Las Vegas, and three will be held in Reno.
Senator Raggio:
The purpose of the implementation commission is to help develop an action plan to put into operation the recommendations from the President’s New Freedom Commission. Is that correct?
Senator Townsend:
That is exactly the concept. I requested the bill to give all of the divisions, as well as the money committees, an opportunity to analyze what the objectives of the commission will be. The report will help ascertain what is applicable and affordable for the State.
Senator Raggio:
The amendment you have submitted would change Section 2, line 5 to read: “The members of the Nevada Mental Health Plan Implementation Commission serve on the Commission beginning the day the President’s New Freedom Commission on Mental Health report is made public, for six months” (Exhibit D). You are also indicating another amendment is required in Section 4 to change the report date to read: “on or before January 1, 2005.” Is that correct?
Senator Townsend:
Yes, that is correct, because the actual date the President’s report will be made public is unknown.
Senator Raggio:
Then, we would also have to change the Section 5 expiration date from January 1, 2004, to “January 1, 2005.” Is that correct?
Senator Townsend:
Yes, that is correct.
Senator Tiffany:
In addition to the Olmstead Act and the homeless, what other items will the commission be addressing?
Senator Townsend:
The President’s New Freedom Commission on Mental Health left “no stones unturned.” It was a thorough debate on all mental health issues, and all the details will be available in the President’s final report. Whether or not I serve on the commission is up to the majority leader of the Senate, but I think every aspect of mental health services, including issues this committee has dealt with through the various mental health agencies, will be addressed.
Senator Tiffany:
Can you tell us what the top five issues are from assessing your experiences while working on the President’s commission in Washington, D.C.?
Senator Townsend:
With all of the federal, state, and local resources available throughout the country, there are still people with needs. The inability to access and receive benefits offered by mental health systems is the biggest challenge facing people who require mental health services. A lot of the accessibility problems have been created by the federal government’s stringent reporting requirements that prevent state and local governments the flexibility necessary to manage and deliver those resources to people in need.
Joseph Tyler, National Association for the mentally ill of northern nevada:
As a spokesperson for the mentally ill in northern Nevada, I know that we have the technology to improve the lives of a vast majority of the 5.4 percent of the population who suffer from serious mental illness. There are still questions about the best and most effective method to deliver those mental health services. We know that between one-half and two-thirds of the homeless people in this state are mentally ill. Mental illnesses are brain disorders, which are far more treatable than ever before with modern atypical medications. Every year more effective medications come on the market. Some people are better‑treated with just medications; some people are better-treated with “talk” therapy and medications; some people are better-treated with outpatient services; and, some people need a therapist to personally go to them in the community environment. All these treatment mechanisms are required. I urge you to support S.B. 301 with its amendments, because it supports the studies that are so important to delivering the necessary resources to the mentally ill.
Donna Marie Shibovich:
I support S.B. 301 and its amendments. We need a commission for mental health because children and adults are in need of mental health services. We have to fight to erase the stigma of mental illnesses and provide services. I have been in the hospital several times, and without the availability of services I would have fallen through the cracks. I benefit from the many services at the Northern Nevada Adult Mental Health Service.
Jenita Rodriguez, Mental Health Planning Advisory Council:
I urge you to support S.B. 301. The members of the mental health advisory council look forward to contributing our experiences and our insights to assist the commission in its work.
David Ward, Reno, Chairman, Commission on Mental Health and Developmental Services, Department of Human Resources:
I lend my strong support to S.B. 301. In addition to the obvious benefits of coordinating mental health services throughout the State, the bringing together of the different division administrators will provide a higher level of communication and cooperation.
Tom Wood, Lobbyist, Pharmaceutical Research/Mfrs. Of America:
My organization supports S.B. 301 in its entirety. It also supports the continuing leadership of Senator Townsend in bringing collaboration between public and private sectors of the State, and in exploring ways to create a more efficient way to deliver mental health services.
Mark D. Armerding, Lobbyist, Nevada Psychiatric Association:
The association supports S.B. 301, and the psychiatrists of the State of Nevadastand ready to assist the commission as needed in the implementation of the President’s recommendations.
Senator Raggio:
Before closing the hearing on S.B. 301, and opening the hearing on S.B. 302, I will accept a motion on S.B. 301.
SENATOR TIFFANY MOVED TO AMEND BY USING THE PROPOSED CHANGE IN EXHIBIT D, BY CHANGING THE DATE IN SECTION 4, SUBSECTION 2, AND BY CHANGING THE DATE IN SECTION 5 FROM JANUARY 1, 2003, TO JANUARY 1, 2005, AND DO PASS AS AMENDED S.B. 301.
SENATOR CEGAVSKE SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Senator Townsend:
S.B. 302 is being requested on behalf of the Nevada Highway Patrol, because we are losing many troopers to other professions and other jurisdictions in law enforcement for financial and other reasons.
SENATE BILL 302: Requires Nevada Highway Patrol under certain circumstances to provide educational benefits to officers injured in line of duty. (BDR 43-1151)
Senator Townsend:
This bill is offered as a way to provide troopers an opportunity to pursue higher education. The legislation would financially aid the troopers by covering their tuition charges, 50 percent of all registration fees, laboratory fees, and expenses for required textbooks and course materials. The bill was designed for all troopers, not just those injured in the line of duty, as a retention incentive. Although this bill will be costly, it is offered in good faith as a benefit alternative to direct pay increases. Further education of troopers would not only be beneficial to the community at large, but also to the individual troopers.
Senator Raggio:
As I understand the bill before us, it has a nominal fiscal note because it would apply only to officers injured in the line of duty. The officers would be eligible to apply for disability retirement. Is that correct?
Senator Townsend:
Yes, that is correct.
Senator Raggio:
Are you suggesting that particular qualification be removed, and the program be opened to all troopers?
Senator Townsend:
I offer that option for the committee’s consideration for the reasons I have articulated, and I propose amending S.B. 302 according to Exhibit E.
Senator Raggio:
If we do open the program to all troopers, we would have to request a new fiscal note.
Senator Townsend:
Yes, that is correct.
Senator Tiffany:
Why is this program not covered under worker’s compensation or vocational rehabilitation? There are many agencies that provide retraining and rehabilitation.
Senator Townsend:
That is an excellent question. Under worker’s compensation and vocational rehabilitation programs, there has to be a prime goal of returning the individual to work. For some of the officers, these programs would cover education and retraining benefits, and that would further keep the cost of this legislation to a nominal amount.
Patrick L. McGill, Highway Patrol Trooper 2, Nevada Highway Patrol, Department of Public Safety:
It has been my pleasure and honor to serve you and the citizens of this State for the last 22 years as a Nevada State Trooper. When I approached Senator Townsend with this proposal, the idea was to provide a retention benefit for our troopers. We understand the fiscal shortfalls this state is facing. We are not asking for a pay raise. The State spends tens of thousands of dollars training troopers, and then they leave to go to another agency within a year or two for higher pay or more benefits. It is costing the State to replace these troopers. This legislation would provide a continuing education benefit for the troopers and an incentive to remain with the department. The bill, as written, would be wonderful, but I would like the committee to consider opening this educational benefit to all troopers.
Gary H. Wolff, Lobbyist, Teamsters Local 14:
I represent the Nevada Highway Patrol Association, and we have been fortunate to have the support of this Legislative body in the past. Many other police departments give educational incentives to their officers. In Clark County, the state is currently short-staffed by 42 troopers, and 7 more troopers will leave in the next 2 months. Salaries alone are not the way to retain troopers. We are looking at 10 to 15 percent of the troopers who would actually take advantage of this benefit. If it is not possible to open the program to all troopers, we urge you to consider providing this benefit to injured officers.
Senator Raggio:
The reason we are losing a lot of our state-trained Nevada Highway Patrol troopers to local law enforcement agencies is they have the ability to make better pay and benefits. Is that correct?
Mr. McGill:
Yes, that is correct. I would like to add that if the Legislature would just provide tuition assistance, the troopers would be willing to buy their own books and materials.
Ronald P. Dreher, Lobbyist, Peace Officers Research Association of Nevada:
I would like to go on record that peace officers throughout the state are in support of this legislation and any similar laws that can provide benefits to state law enforcement agencies. Some of the local governments do provide educational benefits for their officers. It is important to keep our officers trained in modern techniques and methods of law enforcement, and to encourage them to pursue education in other related fields.
Senator Raggio:
The hearing is closed on S.B. 302. Staff is asked to prepare a fiscal note for the proposed amendment to this bill.
Senator Raggio:
We are going to be closing budgets from “Senate Committee on Finance Closing List #3” (Exhibit F. Original is on file in the Research Library.).
Merit Award Board – Budget Page ADMIN-12 (Volume 1)
Budget Account 101-1345
Julie Brand, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau:
Staff recommends this account be closed as recommended by the Governor. There are no technical adjustments.
Senator Raggio:
Is the award program to recognize employees who have suggestions to improve government operations an effective one?
Mr. Comeaux:
Although it is a very small program funded at $5000 annually, it works well and it does provide recognition to employees who have good ideas to make our operations more efficient or cost-effective.
Senator Raggio:
Do you have some examples of recent suggestions?
Mr. Comeaux:
In 2002, the most interesting award was made to a gentleman with the Department of Public Safety who suggested purchasing recharged toner instead of buying new toner. The suggestion saved the department $140,000 annually. Another suggestion received a $250 award for recommending a change in procedure for staff working as translators for non-English speaking applicants. The change made the unit more productive and speeded up operations.
Senator Raggio:
I will take a motion to close the budget as recommended by the Governor.
SENATOR MATHEWS MOVED TO CLOSE BUDGET ACCOUNT 101‑1345 AS RECOMMENDED BY THE GOVERNOR.
SENATOR TIFFANY SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Senator Coffin:
My question is to Mr. Comeaux about the suggestion to use recharged toner. Has anyone noticed any increase in maintenance or failure of equipment?
Mr. Comeaux:
I have not been made aware of any problems.
Indigent Supplemental Account – Budget Page ADMIN-22 (Volume 1)
Budget Account 628-3244
Ms. Brand:
There are no major closing issues on this account. Staff recommends this account be closed as adjusted. The recommended technical adjustment decreases real property tax revenues and associated claim payments by $62,316 in FY 2004 and $82,680 in FY 2005. The adjustment is necessary to properly reflect the funding as determined by property assessed valuations provided by the Department of Taxation for 2004, and to be adjusted in FY 2005 by a projected growth factor of 9.2 percent.
Senator Raggio:
How much is collected from this one cent per $100 of assessed valuation for this program?
Ms. Brand:
I believe the amount is approximately $6 million in FY 2004.
Mr. Ghiggeri:
In this account, the receipts for FY 2002 are approximately $13.2 million. The account is projected to receive $5.8 million in FY 2003. The Governor’s recommended amount for FY 2004-2005 is approximately $6.3 million and $7 million, respectively.
Senator Raggio:
The total is about $13 million for the biennium. Is this the account that provides reimbursement to Nevada counties for unpaid hospital charges for medical treatment for indigent persons? What is the claim payment total?
Mr. Ghiggeri:
Yes, that is correct. Claim payments in FY 2002 were approximately $6 million.
Senator Raggio:
I would like to request a list of the claim payments. Are there any other changes recommended other than the cost allocation, which we will authorize in closing these budgets for the administrative services division?
Ms. Brand:
No other changes are recommended.
Senator Raggio:
I will accept a motion to close the budget with the authority to make the cost‑allocations.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 628-3244 WITH THE AUTHORITY FOR STAFF TO MAKE THE COST‑ALLOCATIONS AS PROPOSED.
SENATOR TIFFANY SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR RHOADS WAS ABSENT FOR THE VOTE.)
*****
Indigent Accident Account – Budget Page ADMIN-24 (Volume 1)
Budget Account 628-3245
Senator Raggio:
Is this the budget account that reimburses hospitals for care of indigent persons who are injured in motor vehicle accidents in Nevada? What is the total amount collected through the property tax of 1.5 cents per $100 of assessed valuation?
Mr. Ghiggeri:
Yes, this is the account. Real property tax payments into this account in FY 2002 were approximately $7.3 million. The account is projected to receive approximately $8.8 million in FY 2003. The Governor’s recommendations for FY 2004 and FY 2005 are $9.5 million and $10.4 million, respectively.
Senator Raggio:
Do the figures reflect the increase in assessed value?
Mr. Ghiggeri:
Yes, that is correct.
Senator Raggio:
Is the amount still 1.5 cents per $100 of assessed valuation?
Mr. Ghiggeri:
Yes, that is correct. The claims payment in FY 2002 was approximately $6.4 million.
Ms. Brand:
Staff recommends a technical adjustment similar to the previous account to adjust for the real property tax revenues and associated claim payments in the amount of $93,473 in FY 2004 and $124,019 in FY 2005.
Senator Tiffany:
Mr. Ghiggeri, you indicated the total amount of tax revenues from the 1.5 cents of tax was $13.2 million, but the staff is projecting almost $20 million. Can you explain the discrepancy?
Mr. Ghiggeri:
There are some increases in the assessed valuations. Receipts in FY 2002 were approximately $7.3 million. The Governor recommends of $9.5 million in FY 2004 and $10.4 million in FY 2005. The account is further increased by interest income and any unspent funds that are carried forward to the next year.
Senator Tiffany:
Between the fiscal years, we went from $13 million to almost $20 million; is that correct?
Mr. Ghiggeri:
Actual receipts in FY 2002 for this account were $7.3 million. The budgeted amount in FY 2003 is $8.8 million.
Senator Tiffany:
The total of those figures is $16 million.
Mr. Ghiggeri:
Yes, it is approximately $16 million, but the account is projected to increase to approximately $20 million.
Senator Raggio:
I will accept a motion to close the budget with the technical adjustments staff has indicated.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 628‑3245 WITH TECHNICAL ADJUSTMENTS RECOMMENDED BY STAFF.
SENATOR CEGAVSKE SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR RHOADS WAS ABSENT FOR THE VOTE.)
*****
Deferred Compensation Committee – Budget Page ADMIN-26 (Volume 1)
Budget Account 101-1017
Ms. Brand:
The purpose of the deferred compensation fund is to provide reimbursement for operational expenses of the deferred compensation committee. Members of the committee are appointed by the Governor, pursuant to NRS 287.330, and are responsible for the administration of the State of Nevada employees’ deferred compensation plan. The committee contracts with the Hartford Life Insurance Company and the ING Financial Services for enrollment, investment, and administrative services associated with member accounts. There are no major closing issues. Staff recommends the account be closed as recommended by the Governor. It should be noted the Executive Budget includes a $4 per participant administrative charge, which is currently used to fund the operations of the committee, in the amount of $43,566 each year of the FY 2003-2005 biennium.
Under the terms of the new contracts with Hartford and ING, the administrative costs of the committee will be paid by the providers rather than the plan participants. Also, pending before the Board of Examiners (BOE) on April 8, 2003, is approval for the committee investment advisory contract with Segal Advisors. If approved, this contract will provide third-party investment advisory services at an annual cost of $80,000. As the contract is pending approval before the BOE, inclusion in the current FY 2003-2005 budget is not appropriate. As such, the committee should be aware that the Department of Administration intends to submit a work program to the Interim Finance Committee (IFC) amending the resource and expenditure changes, if necessary.
Mr. Comeaux:
The contract was approved by the BOE yesterday, and the department will be submitting a work program to the IFC at its June meeting.
Senator Raggio:
Does that approval change the budget, which includes the $4 per participant fee?
Mr. Comeaux:
The work programs for the IFC will change the amount.
Senator Raggio:
I will accept a motion to close the budget as recommended by the Governor with the appropriate changes to be set forth by the IFC.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101-1017 AS RECOMMENDED BY THE GOVERNOR WITH APPROPRIATE CHANGES TO BE MADE BY THE IFC.
SENATOR TIFFANY SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR RHOADS WAS ABSENT FOR THE VOTE.)
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Printing Office Equipment Purchase – Budget Page ADMIN-34 (Volume 1)
Budget Account 741-1331
Ms. Brand:
Funds for depreciation expense in the State Printing Division budget account 741‑1330 are transferred to this budget for future equipment purchases. The State Printing Division operating budget account did not fund the depreciation transfer in FY 2002, and has currently not funded the depreciation transfer in FY 2003. As such, no equipment acquisitions are being recommended in FY 2004 or FY 2005. In addition, the General Fund repayment obligation was not made in FY 2002, and has currently not been made in FY 2003. The General Fund repayment is currently recommended for payment in FY 2004 and FY 2005 from reserve. However, no adjustment has been included for repayment amounts not funded in FY 2002 and FY 2003. As such, the budget account reserve balance will decrease from $124,903 in FY 2003 to $31,412 by FY 2005. Staff recommends this account be closed as recommended by the Governor.
Senator Raggio:
I will accept a motion.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 741-1331 AS RECOMMENDED BY THE GOVERNOR.
SENATOR TIFFANY SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
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Purchasing – Equipment Purchase – Budget Page ADMIN-51 (Volume 1)
Budget Account 718-1364
Ms. Brand:
This equipment purchase account is funded through depreciation on existing equipment within the purchasing division operating budget account 718-1358. The Executive Budget recommends seven replacement desktop computers, two laptop computers, and two liquid crystal display projectors. There are no major closing issues. Staff recommends this account be closed as adjusted. One technical adjustment is to adjust $15,748 in FY 2004 for the depreciation transfer provided from the purchasing division operating budget account 718‑1358 for depreciation expense associated with equipment placed in service in FY 2003 and FY 2004. An adjustment of $19,002 in FY 2005 for the depreciation transfer associated with equipment placed in service in FY 2003, FY 2004, and recommended in FY 2005 is also required.
Senator Raggio:
I will accept a motion to close the budget.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 718-1364 AS RECOMMENDED BY STAFF WITH TECHNICAL ADJUSTMENTS.
SENATOR TIFFANY SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
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Commodity Food Program – Budget Page ADMIN-53 (Volume 1)
Budget Account 101-1362
Ms. Brand:
The commodity food program administers the distribution of food received from the U.S. Department of Agriculture. There is no General Fund appropriation in this account. There are no major closing issues. Staff recommends the account be closed as adjusted. The recommended budget has been adjusted in the amount of $663,420 to establish the receipt of two new annual federal grant programs, which became effective in FY 2003. The programs will request approval by the IFC in May 2003.
Senator Raggio:
Will these adjustments be made in a work program to be presented to the IFC?
Ms. Brand:
Yes, that is correct.
Senator Raggio:
I will accept a motion to approve this budget with technical adjustments as recommended and with the understanding the budget may be further adjusted by the action of the IFC.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101‑1362 WITH TECHNICAL ADJUSTMENTS AS RECOMMENDED AND WITH FURTHER APPROVAL FOR ADJUSTMENTS TO BE MADE BY THE IFC.
SENATOR TIFFANY SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
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Mail Services – Equipment Purchase – Budget Page ADMIN-71 (Volume 1)
Budget Account 713-1347
Ms. Brand:
Funding for this account is provided from the mail services budget account 713‑1346 through depreciation on existing equipment. There are no major closing issues. There is one technical adjustment recommended for a depreciation transfer for $2613 in FY 2005 for depreciation expense associated with equipment to be placed in service in FY 2005.
Senator Raggio:
Is this process still working the way it was intended?
Mr. Comeaux:
Yes, it is.
Senator Raggio:
I will accept a motion to close the budget.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 713‑1347 AS RECOMMENDED BY STAFF.
SENATOR TIFFANY SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
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Humboldt Conservation Camp – Budget Page NDOC-110 (Volume 3)
Budget Account 101-3741
Tracy Raxter, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau:
There are no major closing issues. There is one closing item enhancement unit E-500, which provides for an inflationary cost increase for food for inmate meals. Staff recommends E-500 not be approved because the Governor’s recommendations did not include a similar inflation cost increase for food in the child and family services division. The total dollar amount in all Department of Corrections’ facilities budgets is $297,567 and $449,688 in FY 2003-2004 and FY 2004-2005, respectively. Another technical adjustment in this account is the result of a Department of Corrections (DOC) new biennium plan for the housing of inmates in response to the revised population projections prepared by George Washington University in a study dated March 2003. The Governor’s budget proposal includes a new facility for the DOC, which would house 436 inmates. This new facility could have an impact on the inmate population in the other facilities of the DOC. Staff seeks approval to make changes in the inmate-driven revenues and expenditures based on new population projections if a new facility is opened.
Senator Raggio:
Would the adjustment apply to all of the budgets for the DOC?
Mr. Raxter:
Yes, it would.
Senator Raggio:
Mr. Comeaux, do you have any comments on the recommended adjustments?
Mr. Comeaux:
The DOC pushed very hard for the inflationary food cost increase. It was an oversight on the part of the Department of Administration not to include a similar increase for child and family services. The $750,000 requested increase is not such a large expenditure when it is spread out among all the facilities throughout the biennium. The DOC tries to cut budgets at every opportunity. This inflationary food cost increase appears to be a fairly critical item, and I am not sure it is a good idea to eliminate it.
Senator Raggio:
Is the request for an inflationary food cost increase reflected in all the DOC budgets? What is the total amount?
Mr. Raxter:
Yes, the item is in all the facility budgets of the DOC, and it totals $750,000 over the biennium.
Mr. Comeaux:
The requested amount is already in the DOC facility budgets, and staff is recommending that it be removed.
Senator Raggio:
Do you want to keep the amount in the budgets?
Mr. Comeaux:
Yes, that would be the recommendation.
Mr. Ghiggeri:
Fiscal staff is trying to close these budgets by looking for every nickel and dime it can find. There is no known funding source for the FY 2003-2005 biennium, and when staff finds areas where economies could be realized, it will recommend them. Staff will not be recommending any reductions in the DOC’s budget that would impact security or medical treatment of inmates. Staff will probably be recommending the addition of 14 staff positions at the Ely State Prison, even though the recommendation is not in the Governor’s budget. The 14 staff positions reflect a $1.3 million annual savings by remaining vacant.
Senator Raggio:
I will accept a motion to close the budget as recommended by staff.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101‑3741 WITH TECHNICAL ADJUSTMENTS AS RECOMMENDED BY STAFF.
SENATOR TIFFANY SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Senator Raggio:
In all other closings of DOC budgets, there will be a stipulation that the recommended request for an inflationary food cost increase will be eliminated.
Ely Conservation Camp – Budget Page NDOC-115 (Volume 3)
Budget Account 101-3747
Mr. Raxter:
Staff notes the same adjustment to not approve the request for the inflationary food cost increase should be applied to this budget. Also, a similar technical adjustment to change inmate-driven revenues and expenditures as the one in budget account 101-3741 is recommended to reflect revised inmate population projections.
Senator Raggio:
Has this facility also been operating just under capacity?
Mr. Raxter:
Yes, that is correct.
Senator Raggio:
I will accept a motion to close the budget with technical adjustments recommended by staff.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101‑3747 WITH TECHNICAL ADJUSTMENTS RECOMMENDED BY STAFF.
SENATOR TIFFANY SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Jean Conservation Camp – Budget Page NDOC-120 (Volume 3)
Budget Account 101-3748
Mr. Raxter:
Staff recommends closing the budget with the same technical adjustments as those in budget account 101-3741.
Senator Raggio:
I will accept a motion to close the budget with technical adjustments as recommended by staff.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101‑3748 WITH TECHNICAL ADJUSTMENTS RECOMMENDED BY STAFF.
SENATOR CEGAVSKE SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Silver Springs Conservation Camp – Budget Page NDOC-125 (Volume 3)
Budget Account 101-3749
Mr. Raxter:
Staff recommends closing this account with the same technical adjustments as those in budget account 101-3741. Also, the costs for a refrigerator have been reduced by $2500 based on revised agency pricing. Two small adjustments were made in the base budget, including a $30 one-time cost decrease in FY 2004-2005 for miscellaneous equipment, and a reduction in water testing costs of $408 in FY 2003-2004 and an increase in those costs of $126 in FY 2004-2005.
Senator Raggio:
I will accept a motion to close the budget as recommended.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101‑3749 WITH TECHNICAL ADJUSTMENTS AS RECOMMENDED BY STAFF.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
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Carlin Conservation Camp – Budget Page NDOC-129 (Volume 3)
Budget Account 101-3752
Mr. Raxter:
Staff recommends closing this account with the same technical adjustments made in budget account 101-3741.
Senator Raggio:
Has the Carlin Conservation Camp been operating with 146 inmates out of a 150 potential capacity?
Mr. Raxter:
Yes, that is correct.
Senator Raggio:
I will accept a motion to close this budget as recommended by staff.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101‑3752 WITH TECHNICAL ADJUSTMENTS AS RECOMMENDED BY STAFF.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Tonopah Conservation Camp – Budget Page NDOC-133 (Volume 3)
Budget Account 101-3754
Mr. Raxter:
Staff recommends closing this budget with the same technical adjustments recommended in budget account 101-3741. Staff has adjusted inmate-driven expenses to decrease food and bakery costs by $12,388 in each year of the biennium based on rates recommended by the Governor.
Senator Raggio:
I will accept a motion to close this account with the technical adjustments recommended by staff.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101‑3754 WITH TECHNICAL ADJUSTMENTS AS RECOMMENDED BY STAFF.
SENATOR CEGAVSKE SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
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Public Safety, Justice Assistance Act – Budget Page PS-26 (Volume 3)
Budget Account 101-4708
Mr. Raxter:
This budget account is the pass-through for federal grant funds from the U.S. Department of Justice, Bureau of Justice Assistance, and Bureau of Justice Statistics. The Governor recommends the transfer of the Falcon’s Nest program pass‑through costs to this account from budget account 101-4736.
Senator Raggio:
What is the Falcon’s Nest program?
Mr. Raxter:
The Falcon’s Nest program is a combination of two programs. It is a federal excess property program operated by the U.S. Department of Defense that permits local and state law enforcement agencies to acquire equipment at no cost. The other program allows local and state law enforcement agencies to acquire equipment at a reduced cost through the federal supply system.
Senator Raggio:
What are the Byrne Memorial Formula Grant (BMFG) funds used for?
Mr. Raxter:
The BMFG funds are used by local and State narcotics task forces.
Senator Raggio:
I will accept a motion to close the budget with technical adjustments recommended by staff and including the transfer of the Falcon’s Nest program to the separate grant pass-through account.
Mr. Raxter:
There are two other technical adjustments in this budget account. One is to adjust the BMFG funding on the revenue and expense side based on revised information provided by the Department of Public Safety. Also, staff recommends adjustments to establish funding for the National Criminal History Improvement Program grant at $623,349 in each year of the biennium based on revised estimates provided by the Department of Public Safety.
Senator Raggio:
Are the funds for the National Criminal History Improvement Program grant certain?
Mr. Raxter:
The amount is not ”cast in stone” at this point.
Senator Raggio:
Are you saying the recommended adjustment gives the Department of Public Safety the necessary authority?
Mr. Raxter:
Yes, that is correct.
Senator Raggio:
I will accept a motion to close this budget with technical adjustments recommended by the staff.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101‑4708 WITH TECHNICAL ADJUSTMENTS AS RECOMMENDED BY STAFF.
SENATOR TIFFANY SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Public Safety, Justice Grant – Budget Page PS-29 (Volume 3)
Budget Account 101-4736
Mr. Raxter:
Staff recommends closing this budget with a couple of technical adjustments. The Governor recommends an aggregate increase in the Public Safety Technology Division cost allocation in the amount of $9869 in FY 2003-2004 and $18,031 in FY 2004-2005. The second adjustment is a revision in the cost of replacement computer hardware and software in the amount of $5054 in FY 2003-2004 and $4455 in FY 2004-2005.
Senator Raggio:
Would you explain the BMFG funding proposal detailed in the base budget?
Mr. Raxter:
The Executive Budget includes ongoing BMFG funding in each year of the biennium although the department has indicated the funding level in FY 2004‑2005 is uncertain due to the President’s budget proposal to combine the BMFG program with other justice grant programs at an overall reduced funding level. Staff notes a similar consolidation proposal was included in the President’s federal FY 2003 budget, but the U.S. Congress did not approve it.
Currently, the BMFG funds the state and local narcotics task forces, and it funds a portion of the administrative costs of the Office of Criminal Justice Assistance including the administrative costs of the Falcon’s Nest program. Staff notes the Executive Budget includes a proposal to eliminate the local narcotics task forces. Also, staff notes the Division of Internal Audits in the Executive Branch issued an audit report in September 2002 recommending the Office of Criminal Justice Assistance evaluate the feasibility of a fee for law enforcement agencies to acquire equipment through the Falcon’s Nest program to reduce the program’s use of the BMFG funds. The agency indicated it would evaluate the feasibility and necessity of assessing a fee at the end of FY 2002‑2003, after a complete year of operation. The Executive Budget does not recommend funding through a fee to law enforcement agencies that acquire equipment through the Falcon’s Nest program.
Senator Raggio:
I will accept a motion to close this budget as recommended by staff with the technical adjustments.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101‑4736 WITH TECHNICAL ADJUSTMENTS AS RECOMMENDED BY STAFF.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Senator Raggio:
Are there any other items for the committee?
Mr. Ghiggeri:
Tomorrow the public safety subcommittee will meet to review various public safety budgets. The Office of the Military will have budget closings, and staff will reexamine its utility costs for FY 2004-2005. There will be a work session on the Department of Corrections budgets to discuss possible alternatives to the Casa Grande program. There will be a UCCSN work session tomorrow morning. The committee will also be reviewing bills.
Senator Raggio:
The meeting is adjourned at 10:25 a.m.
RESPECTFULLY SUBMITTED:
Judy Coolbaugh,
Committee Secretary
APPROVED BY:
Senator William J. Raggio, Chairman
DATE: