MINUTES OF THE
SENATE Committee on Finance
Seventy-second Session
May 5, 2003
The Senate Committee on Finance was called to order by Chairman William J. Raggio, at 8:20 a.m., on Monday, May 5, 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
Senator Dean A. Rhoads
Senator Barbara K. Cegavske
Senator Sandra J. Tiffany
Senator Bernice Mathews
COMMITTEE MEMBERS ABSENT:
Senator Bob Coffin (Excused)
GUEST LEGISLATORS PRESENT:
Senator Dennis Nolan, Clark County Senatorial District No. 9
STAFF MEMBERS PRESENT:
Gary L. Ghiggeri, Senate Fiscal Analyst
Bob Guernsey, Principal Deputy Fiscal Analyst
Russell J. Guindon, Deputy Fiscal Analyst
Mindy Braun, Education Program Analyst
Jeffrey A. Ferguson, Program Analyst
Pamela Carter, Committee Secretary
OTHERS PRESENT:
Rick Bennett, Lobbyist, University of Nevada, Las Vegas
Ronald P. Dreher, Lobbyist, Peace Officers Research Association of Nevada
Jose A. Elique, Chief of Police, University Police Services, University of Nevada, Las Vegas
Adam Garcia, Director, Chief of Police, University Police Services, University of Nevada, Reno
Steven Albert, State Game Warden, Division of Wildlife, Department of Conservation and Natural Resources
Patrick McGill, State Trooper, Public Information Officer, Nevada Highway Patrol, Department of Public Safety
Traci Filippi, Grants and Projects Analyst, Highway Safety Planning and Information, Department of Traffic Safety
Laurel A. Stadler, Lobbyist, Mothers Against Drunk Driving – Lyon County Chapter
Gary Wilt, Lobbyist, Nevada Highway Patrol Association
Lynn Chapman, Lobbyist, Nevada Eagle Forum
Bill Maier, Administrative Services Officer, Department of Business and Industry
Marietta Lopez, Chief Financial Officer, Office of the Attorney General
Brian Kunzi, Senior Deputy Attorney General, Children’s Advocate, Office of the Attorney General
John P. Comeaux, Director, Department of Administration
Renee Parker, Chief Deputy Secretary of State, Office of the Secretary of State
Giles E. Vanderhoof, Major General, The Adjutant General of Nevada, Office of the Military
Robert E. Shriver, Executive Director, Division of Economic Development
Gary L. Ghiggeri, Senate Fiscal Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, reported the Senate Committee on Finance progress report for May 5, 2003, indicates all budgets in the Executive Budget have been heard or reviewed by committee, subcommittee, or staff, and all capital improvement projects (CIP) have been reviewed by the CIP subcommittee.
Mr. Ghiggeri said 393 budgets will be closed by committee or subcommittee on or before May 9, 2003. He emphasized all budgets must be adopted by the Senate Committee on Finance by May 15 to facilitate a joint subcommittee meeting with the Assembly Committee on Ways and Means in resolving differences on Friday, May 16.
Mr. Ghiggeri pointed out 114 bills have been referred to committee, 23 of the 114 bills have been processed, and 91 bills remain in committee. He noted there are 79 Senate bills and 12 Assembly bills remaining in committee.
Mr. Ghiggeri reported the State of Nevada Economic Forum met on May 1, 2003. He said the economic forum raised revenue projections by approximately $15.8 million over fiscal year (FY) 2003, FY 2004, and FY 2005. He explained a portion of the revenue has already been included in the Governor’s recommended budget. He said there is an approximate increase of $7.5 million over the 3-year period.
Mr. Ghiggeri explained the economic forum reduced revenue projections for the sales and use tax by approximately $4.1 million in FY 2003, FY 2004, and FY 2005. He said the economic forum increased the gaming tax by approximately $11.9 million over the 3-year period. He noted the economic forum increased the casino entertainment tax by $10.4 million over the 3-year period.
Mr. Ghiggeri reported the economic forum reduced the cigarette tax by $4.8 million and the business license tax by $2.3 million over FY 2003, FY 2004, and FY 2005. He noted the economic forum increased insurance license fees by approximately $2 million and reduced interest income by approximately $7.4 million over the 3-year period.
Senator Raggio asked whether there is a projected $3.4 million increase in the mining tax over FY 2003, FY 2004, and FY 2005. Mr. Ghiggeri replied yes, there is. Senator Raggio commented there is an anticipated $16.6 million increase in taxes over the 3-year period. Mr. Ghiggeri agreed.
Mr. Ghiggeri referenced budget amendments to several child and family services budgets. He said additional General Fund cost is approximately $633,000 over the biennium. He noted adjustments total $19 million over the biennium.
Senator Tiffany asked whether there was an approximate $16 million change in projection over FY 2003, FY 2004, and FY 2005. Mr. Ghiggeri replied yes, the economic forum projected a $15.8 million change in projection over the 3-year period. He explained the change provides approximately $5 million more to the budget in FY 2003 than was originally projected.
Senator Raggio asked what the net effect is over the next biennium. Mr. Ghiggeri replied the net effect is an increase of approximately $2.4 million over the next biennium.
Senator Raggio asked the committee to look at Senate Bill (S.B.) 247.
SENATE BILL 247: Makes appropriations to restore balances in Stale Claims Account, Emergency Account and Reserve for Statutory Contingency Account. (BDR S-1236)
Mr. Ghiggeri explained staff recommends an appropriation of $215,593 to increase the emergency fund to $400,000.
Senator Raggio requested a motion to amend and do pass S.B. 247.
SENATOR RHOADS MOVED TO AMEND AND DO PASS S.B. 247 BASED ON STAFF RECOMMENDATION OF AN INCREASE OF $215,593 TO THE EMERGENCY FUND.
SENATOR RAWSON SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR COFFIN WAS ABSENT FOR THE VOTE.)
*****
Senator Raggio asked the committee to look at Senate Bill (S.B.) 413.
SENATE BILL 413: Makes various changes concerning securities issued by the University and Community College System of Nevada. (BDR 34-1034)
Mr. Ghiggeri reported the University and Community College System of Nevada (UCCSN) submitted Amendment No. 610 to S.B. 413. He said the major project funded by S.B. 413 is the science building at University of Nevada, Las Vegas (UNLV) as recommended in the Governor’s capital improvement program.
Mr. Ghiggeri explained Amendment No. 610 to S.B. 413 reflects a change in section 3, page 3, line 14, from $135.5 million to $176 million, and a change on line 16, page 3, from $182.5 million to $199 million.
Senator Tiffany asked what revenue source will repay the bonds used for the science building at UNLV. Senator Raggio replied the bonds will be repaid by the Environmental Protection Agency (EPA) lease. Senator Tiffany asked whether EPA monies will be used for other projects. Mr. Ghiggeri replied funds will be used for dormitories, the new student union, and the science and engineering technology building.
Rick Bennett, Lobbyist, University of Nevada, Las Vegas, said projects being considered over the next 3 years are dormitories, adding a revenue source from student room and board fees and a parking garage for the science and engineering building, adding a revenue source from lease fees. He explained each project is tied to a revenue source for bond repayment.
Senator Raggio requested a motion to amend and do pass S.B. 413.
SENATOR RAWSON MOVED TO AMEND AND DO PASS S.B. 413 AS DISCUSSED.
SENATOR RHOADS SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR COFFIN WAS ABSENT FOR THE VOTE.)
*****
Senator Raggio asked the committee to look at Senate Bill (S.B.) 416. Mr. Ghiggeri said there is no amendment to this bill.
SENATE BILL 416: Authorizes issuance of bonds and other securities for completion of Fish Hatchery Refurbishment Project. (BDR S-1212)
Senator Raggio requested a motion to do pass S.B. 416.
SENATOR RAWSON MOVED TO DO PASS S.B. 416.
SENATOR RHOADS SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR COFFIN WAS ABSENT FOR THE VOTE.)
*****
Mr. Ghiggeri reported Senate Bill (S.B.) 409 was approved by committee in April. He said S.B. 409 allows justices of the peace and municipal court judges to join the judicial retirement system.
SENATE BILL 409: Authorizes justices of the peace and municipal judges to participate in Judicial Retirement Plan under certain circumstances. (BDR 1-414)
Mr. Ghiggeri explained Amendment No. 306 to S.B. 409 provides for a change in the effective date of participation in the judicial retirement system. He pointed out George Pyne from the Public Employee Retirement System and Julie Brand from the Fiscal Division have reviewed the amendment. He asked whether the committee had questions on the amendment because it is so lengthy.
Senator Raggio requested a motion to amend and do pass S.B.409.
SENATOR RAWSON MOVED TO AMEND AND DO PASS S.B. 409 WITH AMENDMENT NO. 306.
SENATOR RHOADS SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR COFFIN WAS ABSENT FOR THE VOTE.)
*****
Senator Raggio asked the committee to look at Senate Bill (S.B.) 346.
SENATE BILL 346: Requires Department of Personnel to increase level of compensation for certain law enforcement positions. (BDR S-1171)
Ronald P. Dreher, Lobbyist, Peace Officers Research Association of Nevada, spoke from a prepared statement (Exhibit C) in support of S.B. 346. He referenced a section of PORAC Law Enforcement News (Exhibit D. Original is on File in the Research Library.) citing salary information for police officers, highway patrol troopers, and game wardens. He said S.B. 346 will provide a one-grade pay increase to attorney general investigators and law enforcement positions within the Division of Wildlife. He indicated the reason for the salary increases are recruitment and retention of personnel. Mr. Dreher urged the committee to pass S.B. 346.
Mr. Bennett spoke in favor of S.B. 346, referencing UNLV’s police turnover statistics (Exhibit E) and the costs associated with replacing police officers (Exhibit F). He said S.B. 346 will increase the salaries of university police by one grade.
Senator Raggio asked whether there is a fiscal note to S.B. 346. Mr. Bennett replied yes, the total fiscal note on this bill is approximately $564,000.
Senator Mathews asked whether savings in the current budget could be allocated to university police salaries. Mr. Bennett replied there are cost savings in the current budget, but there is not enough to cover the salaries.
Senator Tiffany questioned the justification of S.B. 346.
Jose A. Elique, Chief of Police, Director of Public Safety, University Police Services, University of Nevada, Las Vegas, spoke in favor of S.B. 346. He said passage of S.B. 346 is essential for efficiency and operational effectiveness. He explained recruitment and training expenses far exceed the proposed salary increases associated with S.B. 346. He noted many officers leave the university police force for employment with county and municipal agencies.
Adam Garcia, Chief of Police, University Police Services, University of Nevada, Reno, spoke in support of S.B. 346. He said S.B. 346 allows the university to attract, recruit, and retain the most qualified candidates for police officer positions within the university police services department. Mr. Garcia referenced the proposed amendment (Exhibit G) to S.B. 346 supporting salary increases for university police officers.
Senator Raggio asked how many officers are on the university police force.
Mr. Garcia replied there are 22 sworn police officers at UNR and 32 at UNLV.
Steve Albert, Game Warden, Division of Wildlife, spoke in favor of S.B. 346, urging committee passage of this bill. He said S.B. 346 allows for recruitment and retention of qualified game wardens. He explained the number of applicants has decreased over the past several years because game warden positions require a 4-year college degree in wildlife management.
Senator Raggio closed the hearing on S.B. 346 and opened the hearing on Senate Bill (S.B.) 480.
SENATE BILL 480: Deletes provision limiting issuance of citation for failure to wear safety belt in motor vehicle to vehicles halted for other offenses. (BDR 43-1039)
Patrick McGill, State Trooper, Public Information Officer, Nevada Highway Patrol, Department of Public Safety, voiced his support of S.B. 480.
Senator Raggio commented S.B. 480 was heard by the Senate Committee on Transportation and referred to the Senate Committee on Finance based on the fiscal note. He commented the anticipated FY 2004 revenue loss is $650,000.
Traci Filippi, Grants and Projects Analyst, Highway Safety Planning and Information, Department of Traffic Safety, referenced the May 2, 2003, memorandum from Alice A. Molasky-Arman, Commissioner of Insurance, to Senator Raggio (Exhibit H) and a document entitled “Data Regarding Revisions to NRS 484.641 Seat Belt Law” (Exhibit I). She pointed out the $650,000 loss in FY 2004 is offset by a projected $650,000 revenue increase in highway safety funds.
Senator Raggio commented S.B. 480 states a person will be cited for a primary offense for failure to wear a safety belt.
Senator Raggio asked why there is a $650,000 revenue loss in FY 2004. Ms. Filippi replied different highway grant funds require certain criteria to be met by the Office of Traffic Safety. She explained the passage of S.B. 480 allows all criteria to be met.
Senator Raggio asked how the funds will be used.
Ms. Filippi replied the funds will be used for law enforcement agency training; educating the public on traffic safety, the importance of wearing safety belts, using child seats, not drinking and driving, operating motorcycles and bicycles in traffic; and emergency medical services.
Senator Raggio asked what the reluctance has been to pass the safety belt law. Mr. McGill replied Nevadans would like to have a choice. He said the choice of whether or not to wear a safety belt affects all Nevadans. He pointed out using safety belts saves lives.
Ms. Filippi referenced pages 4 through 8 and replied data obtained from the Division of Health Care Financing and Policy indicates the average health care cost of a Medicaid-insured unrestrained occupant involved in a motor vehicle crash was $52,575 between 1999 and 2001.
Senator Raggio referenced page 2 and asked for an explanation of the conversion rate. Ms. Filippi replied the conversion rate measures the percentage of safety belt nonusers who have been converted to safety belt users as a result of enforcement and education. She pointed out Nevada had a 78.5 percent safety belt use rate in the year 2000, and a 74.5 percent use rate in 2001, resulting in a conversion rate loss due to a decrease in safety belt usage between calendar years 2000 and 2001.
Senator Raggio asked whether the law applies to all passengers in a motor vehicle. Mr. McGill replied yes, the law applies to all passengers in a motor vehicle because all adult passengers could be cited for violation of the safety belt law if they are not wearing a safety belt.
Ms. Filippi said National Highway Traffic Safety Administration statistics indicate 75 percent of insurance, taxes, and travel delay costs associated with highway accidents are paid by persons not involved in the accidents. She indicated the costs are paid through higher insurance premiums, taxes, and additional expenses due to travel delays. She pointed out unrestrained Medicaid and county-insured motorists cost Nevadans $3.7 million for 165 crash victims and $29.8 million for 3000 unrestrained crash victims for all insurers during the years 1999 through 2001.
Senator Rhoads asked what Nevada highways are included in the safety belt law. Mr. McGill replied all Nevada roads and highways are included. Senator Rhoads inquired whether dirt roads are included in S.B. 480. Ms. Filippi replied dirt roads are not included.
Senator Cegavske asked whether insurance rates will decrease if S.B. 480 is passed. Ms. Filippi replied insurance rates are adjusted based on actual paid claims.
Senator Raggio commented Amendment No. 514 to S.B. 480 has a slight fiscal impact. He said the amendment allows the commissioner of the Division of Insurance to conduct a study on the fiscal impact of S.B. 480.
Senator Mathews asked whether school busses are exempt from the safety belt law. Ms. Filippi replied yes, they are. Senator Mathews asked for the definition of an emergency vehicle. Mr. McGill replied an ambulance, police car, or fire truck.
Laurel A. Stadler, Lobbyist, Mothers Against Drunk Driving – Lyon County Chapter, spoke in favor of S.B. 480. She emphasized seat belt safety is the best defense against a drunk driver. She urged the passage of S.B. 480.
Gary Wilt, Lobbyist, Nevada Highway Patrol Association, spoke in favor of S.B. 480 and urged its passage.
Lynn Chapman, Lobbyist, Nevada Eagle Forum, spoke against S.B. 480 and in favor of Amendment No. 514. She said Nevadans should be offered the choice of wearing or not wearing a safety belt.
Senator Raggio closed the hearing on S.B. 480. He asked staff to research the history and status of Amendment No. 514.
Senator Raggio opened the hearing on Assembly Bill (A.B.) 256 (1st Reprint).
ASSEMBLY BILL 256 (1st Reprint): Makes supplemental appropriation to Consumer Affairs Division of Department of Business and Industry for unanticipated shortfall in money for Fiscal Year 2001-2002. (BDR S‑1237)
Bill Maier, Administrative Services Officer, Department of Business and Industry, spoke in favor of A.B. 256. He said A.B. 256 requests a $9044 appropriation to cover an ending balance shortfall in FY 2002 for the Consumer Affairs Division.
Senator Tiffany asked whether the Consumer Affairs Division generates a fee structure. Mr. Maier replied no, the division of consumer affairs operates solely from the General Fund.
Senator Raggio requested a motion to do pass A.B. 256.
SENATOR TIFFANY MOVED TO DO PASS A.B. 256.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR COFFIN WAS ABSENT FOR THE VOTE.)
*****
OFFICE OF THE ATTORNEY GENERAL – BUDGET OVERVIEW
Jeffrey A. Ferguson, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, reported there has been some concern about the efficiency and effectiveness of the fraud control units in the office of the Attorney General. He said financial recovery should be used to assess efficiency and effectiveness of fraud control by monitoring the number of criminal referrals processed, investigations conducted, cases opened, and complaints filed. He commented auditors from the Legislative Counsel Bureau (LCB) indicated outcomes rather than activity should also be monitored. He emphasized the committee may wish to consider issuing a Letter of Intent to the attorney general’s office requesting adoption of outcome-based performance measures for each of the four fraud control units.
Senator Raggio commented the four fraud units cover insurance fraud, Medicaid fraud, workers compensation fraud, and consumer protection fraud.
Senator Cegavske asked when the audits were performed by LCB on the four fraud control units. Mr. Ferguson replied the audits began in 1999.
Marietta Lopez, Chief Financial Officer, Office of the Attorney General, responded auditors from the Department of Administration are currently reviewing all of the fraud units to make recommendations for improvement.
Senator Raggio requested that the attorney general’s office submit a plan within 1 week on the reorganization of the fraud units. Ms. Lopez replied she would submit a plan.
Senator Raggio requested a motion for issuing a Letter of Intent to the attorney general’s office requesting a quarterly report based on outcome-based performance measures for the four fraud units and a plan to be submitted within 1 week on the reorganization of the fraud units.
SENATOR CEGAVSKE MOVED TO ACCEPT THE STAFF RECOMMENDATION TO ISSUE A LETTER OF INTENT TO THE ATTORNEY GENERAL’S OFFICE REQUESTING THAT QUARTERLY REPORTS BE SUBMITTED TO THE INTERIM FINANCE COMMITTEE ON OUTCOME-BASED PERFORMANCE MEASURES OF THE FOUR FRAUD UNITS AND A PLAN BE SUBMITTED WITHIN ONE WEEK ON THE REORGANIZATION OF THE FRAUD UNITS.
SENATOR RAWSON SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR COFFIN AND SENATOR TIFFANY WERE ABSENT FOR THE VOTE.)
*****
Mr. Ferguson reported the Executive Budget recommended 10,492 square feet of office space be made available for the attorney general’s office in the Grant Sawyer building in Las Vegas. He explained the Attorney General’s office has learned it requires only 8900 square feet of office space in the Grant Sawyer building. Mr. Ferguson said staff has adjusted all affected budget accounts to reflect reduced rent on reduced space.
Mr. Ferguson explained the attorney general indicated he is seeking a number of position reclassifications and salary adjustments that are not contained in the Executive Budget. He pointed out staff has received verification that the Governor and the Budget Division do not support the position reclassifications and the salary adjustments. He said the attorney general would like to pursue the position reclassifications and the salary adjustments. Mr. Ferguson noted decisions will be made separately by the unclassified pay subcommittee.
Senator Raggio commented the Legislature made a concerted effort 8 years ago to ensure attorney positions are equitably classified and salaried. He requested a staff report on how the attorney general’s request relates to the decision made 8 years ago on keeping attorney positions within the same salary range.
Mr. Ferguson pointed out there are eight attorney positions affected by the attorney general’s request. Senator Raggio confirmed all of the positions are unclassified. He told the committee to let staff know any concerns they may have regarding unclassified positions.
Special Fund – Budget Page ELECTED-29 (Volume 1)
Budget Account 101-1031
Mr. Ferguson reported the Governor recommends a General Fund appropriation of $2 million in FY 2003-2004 for legal costs associated with the State’s efforts to prevent the location of a federal nuclear waste repository at Yucca Mountain. He said the funds will be used in both years of the biennium. He noted the Assembly passed this recommendation with the stipulation that the Interim Finance Committee (IFC) be consulted before any monies are spent.
Senator Raggio requested a motion to close budget account (BA) 101-1031 with the recommendation that IFC be consulted before any monies are spent.
SENATOR RHOADS MOVED TO CLOSE BA 101-1031 WITH THE RECOMMENDATION IFC WILL BE CONSULTED BEFORE ANY MONIES ARE SPENT.
SENATOR RAWSON SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR COFFIN AND SENATOR TIFFANY WERE ABSENT FOR THE VOTE.)
*****
Senator Raggio reopened the hearing on S.B. 346.
Senator Dennis Nolan, Clark County Senatorial District No. 9, voiced his support of S.B. 346 by pointing out game wardens perform vital safety functions in Nevada. He said increased salaries will assist in retaining employees. He noted game wardens also police state parks.
Senator Mathews said the university police added a fiscal note to S.B. 346. Senator Nolan agreed and asked the committee to look at the fiscal note and consider each item separately.
Attorney General Insurance Fraud – Budget Page ELECTED-32 (Volume 1)
Budget Account 101-3806
Mr. Ferguson reported insurance fraud assessments had been collected by the attorney general’s office. He said 85 percent of the assessments were transferred to the insurance fraud account and 15 percent were transferred to the insurance division. He emphasized Nevada statutes require the Division of Insurance to collect and distribute insurance fraud assessments. He explained IFC implemented this change in September 2002, and the Division of Insurance currently collects and keeps 15 percent of the insurance fraud assessments and transfers 85 percent to the attorney general’s office. Mr. Ferguson noted the Executive Budget reflects this change.
Mr. Ferguson reported staff has removed decision unit E-710, replacement of computer hardware and software, from the budget recommendation at the request of the attorney general’s office.
Mr. Ferguson asked the committee to note that the base adjustments made to BA 101-3806 reflect corrections to allowances and contract services costs in the Executive Budget.
Mr. Ferguson said staff requests authority to make any adjustments to assessments for budget closings.
Senator Raggio requested a motion to close BA 101-3806 based on staff recommendations.
SENATOR CEGAVSKE MOVED TO CLOSE BA 101-3806 BASED ON STAFF RECOMMENDATIONS.
SENATOR TIFFANY SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR COFFIN WAS ABSENT FOR THE VOTE.)
*****
Attorney General Medicaid Fraud – Budget Page ELECTED-36 (Volume 1)
Budget Account 101-1037
Mr. Ferguson reported there are no major issues in BA 101-1037. Senator Raggio asked about state motor vehicles. Mr. Ferguson explained there are two leased vehicles for staff use in the motor pool.
Senator Raggio requested for a motion to close BA 101-1037 based on staff recommendation.
SENATOR RHOADS MOVED TO CLOSE BA 101-1037 BASED ON STAFF RECOMMENDATION.
SENATOR TIFFANY SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR COFFIN WAS ABSENT FOR THE VOTE.)
*****
Attorney General–Workers’ Compensation Fraud – Budget Page ELECTED-41 (Volume 1) Budget Account 101-1033
Mr. Ferguson reported there are no major issues in this budget account. Senator Raggio asked whether BA 101-1033 contains assessments. Mr. Ferguson replied yes, it does.
Mr. Ferguson explained other closing items include the purchase of a door lock system and replacement of computer hardware and software. He said staff has made the base adjustments in this budget account to reflect corrections to contract services, publications and periodicals, and special reports and projects.
Senator Raggio requested a motion to close BA 101-1033, based on adjustments to the base budget as recommended by staff.
SENATOR TIFFANY MOVED TO CLOSE BA 101-1033 BASED ON STAFF RECOMMENDATION.
SENATOR CEGAVSKE SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR COFFIN WAS ABSENT FOR THE VOTE.)
*****
Attorney General Office of Consumer Protection– Budget Page ELECTED-45 (Volume 1) Budget Account 330-1038
Mr. Ferguson reported there are no major issues in this budget account. He said staff has worked with the attorney general’s office and the Budget Division to resolve errors and omissions in the adjusted base budget.
Senator Raggio requested a motion to close BA 330-1038 based on staff recommendation.
SENATOR RHOADS MOVED TO CLOSE BA 330-1038 BASED ON STAFF RECOMMENDATION.
SENATOR TIFFANY SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR COFFIN WAS ABSENT FOR THE VOTE.)
*****
Attorney General Crime Prevention – Budget Page ELECTED-49 (Volume 1)
Budget Account 101-1036
Mr. Ferguson reported the Governor recommends the elimination of the crime prevention coordinator position. He said this recommendation will reduce the General Fund appropriation by $57,404 in FY 2003-2004 and $58,012 in FY 2004-2005.
Senator Raggio requested a motion to approve and close BA 101-1036, based on the Governor’s recommendation.
SENATOR TIFFANY MOVED TO CLOSE BA 101-1036 BASED ON THE GOVERNOR’S RECOMMENDATION.
SENATOR CEGAVSKE SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR COFFIN WAS ABSENT FOR THE VOTE.)
*****
Attorney General Tort Claim Fund – Budget Page ELECTED-53 (Volume 1)
Budget Account 715-1348
Mr. Ferguson reported the Executive Budget recommended the transfer of $55,000 from the Board of Examiners’ contingency fund to the tort claim fund in the adjusted base budget for FY 2003-2004. He explained the Office of the Attorney General and the Budget Division indicated the transfer is an error in the Executive Budget. He said staff has worked with both offices to remove the $55,000 from BA 715-1348. He pointed out the adjustment has been made in BA 715-1348.
Senator Raggio asked whether reserves are being increased to the recommended $2 million level. John P. Comeaux, Director, Department of Administration, replied yes, they are.
Senator Raggio requested a motion to close BA 715-1348 with the staff adjustment.
SENATOR CEGAVSKE MOVED TO CLOSE BA 715-1348 BASED ON STAFF RECOMMENDATION.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR COFFIN WAS ABSENT FOR THE VOTE.)
*****
Attorney General Extradition Coordinator – Budget Page ELECTED-56
(Volume 1) Budget Account 101-1002
Mr. Ferguson reported BA 101-1002 is funded by General Funds and restitution payments collected from fugitives being extradited back to Nevada. He said the Executive Budget recommends funding for 205 extraditions in FY 2003-2004 and 210 extraditions in FY 2004-2005. He noted increased extraditions are funded within the adjusted base budget. He explained the Governor recommends General Fund appropriations of $554,946 in FY 2003-2004 and $551,250 in FY 2004-2005.
Mr. Ferguson indicated the Governor projects revenue from fugitive restitution payments to increase to $107,924 in FY 2003-2004 and $113,320 in FY 2004-2005. He noted BA 101-1002 is budgeted to receive recovery of $102,785 in restitution payments and a General Fund appropriation of $538,754 in FY 2003.
Senator Raggio requested a motion to close BA 101-1002 based on the Governor’s recommendation.
SENATOR MATHEWS MOVED TO CLOSE BA 101-1002 BASED ON THE GOVERNOR’S RECOMMENDATION.
SENATOR TIFFANY SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR COFFIN WAS ABSENT FOR THE VOTE.)
*****
Attorney General Council for Prosecuting Attorneys – Budget Page ELECTED-59
(Volume 1) Budget Account 101-1041
Mr. Ferguson reported the adjusted base budget contains a number of errors and omissions. He said staff has reviewed the budgets with the Office of the Attorney General and the Budget Division and discovered BA 101-1041 does not have sufficient revenue to fund a full-time position as recommended by the Executive Budget. He indicated staff had modified the position to a half-time position; however, the attorney general’s office requests a full-time position funded by the additional revenue generated from administrative court assessment fees.
Mr. Ferguson explained the additional revenue from court assessment fees is dependent on the passage of Assembly Bill (A.B.) 29 (First Reprint) authorizing additional court assessments.
ASSEMBLY BILL 29 (First Reprint):Makes various changes concerning administrative assessments and forfeiture of bail. (BDR 14-130)
Senator Raggio asked the status of A.B. 29.
Mr. Ferguson reported the Assembly Committee on Ways and Means heard A.B. 29 last week, and no action was taken.
Senator Raggio commented it is important that A.B. 29 passes. He said the committee will restore funding to BA 101-1041 through a General Fund appropriation for the full-time position if A.B. 29 does not pass.
Senator Raggio requested a motion to close BA 101-1041 based on funding for a full-time position through the passage of A.B. 29 or restoration of funds to the account through General Funds.
SENATOR RHOADS MOVED TO CLOSE BA 101-1041 BASED ON FUNDING FOR A FULL-TIME POSITION THROUGH THE PASSAGE OF A.B. 29 OR RESTORATION OF FUNDS TO THE ACCOUNT THROUGH GENERAL FUNDS.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR COFFIN WAS ABSENT FOR THE VOTE.)
*****
Attorney General, Victims of Domestic Violence – Budget Page ELECTED-63
(Volume 1) Budget Account 101-1042
Senator Raggio asked whether there is only one position in this budget.
Mr. Ferguson replied yes, there is only one position. He said BA 101-1042 is nearly 100 percent federally funded. He reported staff has made adjustments to cover sufficient reserves in this account.
Senator Raggio requested a motion to close BA 101-1042 based on staff adjustments.
SENATOR CEGAVSKE MOVED TO CLOSE BA 101-1042 BASED ON STAFF ADJUSTMENTS.
SENATOR TIFFANY SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR COFFIN AND SENATOR RAWSON WERE ABSENT FOR THE VOTE.)
*****
Child and Family Services Juvenile Justice Programs – Budget Page
ELECTED-70 (Volume 1) Budget Account 101-1383
Mr. Ferguson reported BA 101-1383 will remain in the Division of Child and Family Services. He said the committee may wish to recommend the continuation of a Letter of Intent for the Community Corrections Block Grant program requiring that a semi-annual report be submitted to IFC.
Senator Raggio asked whether this is a continuation of General Fund support. Mr. Ferguson replied yes, it is.
Senator Raggio requested a motion to continue the Letter of Intent for the Community Corrections Block Grant program and close BA 01-1383.
SENATOR TIFFANY MOVED TO CLOSE BA 101-1383 BASED ON THE STAFF RECOMMENDATION TO CONTINUE THE LETTER OF INTENT FOR THE COMMUNITY CORRECTIONS BLOCK GRANT PROGRAM.
SENATOR CEGAVSKE SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR COFFIN, SENATOR MATHEWS, AND SENATOR RAWSON WERE ABSENT FOR THE VOTE.)
*****
Secretary of State – Budget Page ELECTED-80 (Volume 1)
Budget Account 101-1050
Russell J. Guindon, Deputy Fiscal Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, reported the Governor recommended authorization to receive $5 million in federal funds provided under the Help America Vote Act (HAVA) for improvements to a statewide voter registration system and the replacement of punch-card voting machines.
Mr. Guindon explained the Executive Budget recommends a General Fund appropriation of $30,695 in FY 2003-2004 and $32,180 in FY 2004-2005 for the reclassification of two vacant administrative assistant II positions to an information systems specialist III position and a computer network technician II position. He said staff recommends the positions continue to be supported with transfers from the special services fund. He noted the Office of the Secretary of State has filled the two positions approved by IFC.
Mr. Guindon explained other closing items include funding for credit card discount fee expenses. He said the Executive Budget recommends $255,607 in FY 2003-2004 and $383,276 in FY 2004-2005 be used to fund credit card discount fees. He noted the increase in credit card discount fees is due to increased use of credit cards. He pointed out staff recommends funding in the amount of $219,000 in FY 2003-2004 and $291,000 in FY 2004-2005 for credit card discount fee expenses.
Mr. Guindon reported the Governor recommends an additional General Fund appropriation of $100,000 for anticipated increases in the costs to reimburse counties for election ballot stock costs required under NAC 293.200. He said the total recommended appropriation for election ballot stock costs in FY 2004‑2005 is $227,200 for the 2004 election. He emphasized the increased costs are for providing voting materials in the Spanish language as well as the English language in Clark County.
Renee Parker, Chief Deputy Secretary of State, Office of the Secretary of State, commented that providing voting materials in the Spanish language as well as the English language complies with the Voting Rights Act of 1965.
Senator Raggio confirmed this to be true.
Mr. Guindon reported the secretary of state’s office requests a General Fund appropriation of $10,414 in each year of the next biennium to restore training funds to normal levels. He explained training funds were reverted to the General Fund in FY 2001-2002, when several approved positions were left vacant to save General Fund monies. He noted staff has no position on this request.
Senator Raggio asked whether these funds are needed. Ms. Parker replied yes, the funds are needed to support technology positions.
Mr. Guindon reported there are two adjustments for revised prices for computer hardware and software resulting in an additional General Fund appropriation of $8175 in FY 2003-2004 and a General Fund savings of $21,771 in FY 2004‑2005.
Senator Tiffany questioned the increased General Fund expenditures. Mr. Guindon replied the increased General Fund expenditures will support the election ballot stock and credit card discount fees. Senator Tiffany commented the increased General Fund expenditures are too high to support only the election ballot stock and credit card discount fees. Mr. Guindon replied he will send her the supporting documentation for the increased General Fund expenditures.
Senator Raggio commented BA 101-1050 would be held.
HAVA Election Reform
Budget Account 101-1051
Mr. Guindon reported BA 101-1051 is a new budget account created under the Secretary of State’s office for the receipt and expenditure of federal funds to implement the provisions of HAVA passed by Congress and signed by President Bush on October 29, 2002. He explained S.B. 417 passed by the 2003 Legislature and signed by Governor Guinn on April 25, 2003, authorized the creation of an election fund required under HAVA for the receipt of $5 million provided under Title I federal funds. He said the Secretary of State’s office reported the $5 million was received on April 30.
SENATE BILL 417: Creates Election Fund to receive money pursuant to Help America Vote Act of 2002. (BDR 24-1265)
Mr. Guindon reported the State anticipates receiving an additional $5.7 million during FY 2003-2004 for HAVA Title II funding. He explained Title II funds require a 5 percent matching fund from the State. He pointed out S.B. 417 requires the Secretary of State to report to IFC on the expenditure of HAVA monies. He said staff recommends the committee require the Secretary of State to provide an updated budget once revenues and expenditures of HAVA funds are determined.
Mr. Guindon reported the state matching fund for Title II funds requires a General Fund appropriation of $299,820. He said the $299,820 General Fund appropriation is not included in the Executive Budget.
Mr. Guindon reported the Governor recommended funding for an information systems specialist and a computer network technician in the Secretary of State’s office to implement the provisions of HAVA. He noted the Governor recommends funding for the two positions from HAVA federal funds. He explained the Secretary of State indicated a program officer position is needed rather than a computer network technician to implement the provisions of HAVA.
Mr. Guindon emphasized staff recommends approval of the Secretary of State’s request for an information system specialist and program officer funded by HAVA federal funds. He added the positions will have to be funded in the next biennium by General Fund monies or special services funds if federal funds are not available.
Senator Raggio requested a motion to approve and close BA 101-1051 based on staff recommendations.
SENATOR TIFFANY MOVED TO APPROVE AND CLOSE BA 101-1051 BASED ON STAFF RECOMMENDATIONS TO MATCH FEDERAL FUNDS FOR TITLE II FUNDING WITH STATE FUNDS AND CONTINUE THE POSITIONS TO IMPLEMENT HAVA PROVISIONS IN THE NEXT BIENNIUM THROUGH GENERAL FUND SUPPORT IF FEDERAL FUNDS ARE NOT AVAILABLE.
SENATOR CEGAVSKE SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR COFFIN WAS ABSENT FOR THE VOTE.)
*****
Military – Budget Page MILITARY-1 (Volume III)
Budget Account 101-3650
Mindy Braun, Education Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, reported the closing actions of the joint subcommittee on public safety results in a General Fund savings of $55,666 in FY 2003-2004 and $57,512 in FY 2004-2005.
Ms. Braun explained the subcommittee approved an increase in budgeted amounts for utilities by $35,742 in FY 2003-2004 and $34,454 in FY 2004‑2005. She said utility increases result in increased projected FY 2003 expenditures of $1.2 million over the next biennium.
Ms. Braun reported the subcommittee approved a decrease of $63,706 in FY 2003-2004 and $64,264 in FY 2004-2005 in state property and contents insurance for new buildings constructed using federal funds. She said technical adjustments approved by the subcommittee include a $3319 reduction in each year of the next biennium for travel and revised costs for computers.
Giles E. Vanderhoof, Major General, The Adjutant General of Nevada, Office of the Military, spoke in support of the staff recommendations and adjustments.
Senator Raggio requested a motion to approve and close BA 101-3650.
SENATOR RAWSON MOVED TO APPROVE AND CLOSE BA 101-3650 BASED ON STAFF RECOMMENDATIONS AND TECHNICAL ADJUSTMENTS.
SENATOR RHOADS SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR COFFIN WAS ABSENT FOR THE VOTE.)
*****
National Guard Benefits – Budget Page MILITARY-8 (Volume III)
Budget Account 101-3653
Ms. Braun reported the Governor recommended a General Fund allocation of $92,572 in each year of the next biennium for BA 101-3653. She noted the Assembly subcommittee approved this budget as recommended by the Governor. She explained the Senate subcommittee failed to reach a decision concerning ongoing funding for the National Guard benefits program. She said the subcommittee requested information on the amount of additional funding required to increase the percent of tuition reimbursement to the 50 percent level.
Ms. Braun indicated the information provided by the Office of the Military requires an additional appropriation of $12,000 in each year of the next biennium to achieve a 50 percent tuition reimbursement rate. She said the additional appropriation would increase total recommended funding from $92,572 to $104,572 in each year of the next biennium.
Ms. Braun reported Senate Bill (S.B.) 306 (First Reprint) authorizes the Board of Regents to implement a tuition waiver to the Nevada National Guard. She said if S.B. 306 passes in the Assembly, the need for an additional appropriation would be eliminated.
SENATE BILL 306 (First Reprint): Revises provisions governing educational benefits provided to members of Nevada National Guard. (BDR 36-991)
Senator Raggio commented he understood the passage of S.B. 306 would add this benefit to future budgets. He said he believes funding at the 50 percent level is an important educational incentive to the Nevada National Guard. Major General Vanderhoof commented funding at the 50 percent level is a very important incentive.
Senator Raggio requested a motion to approve BA 101-3653 at the 50 percent level based on the passage of S.B. 306.
SENATOR RHOADS MOVED TO APPROVE AND CLOSE BA 101-3653 WITH FUNDING FOR TUITION REIMBURSEMENT AT 50 PERCENT BASED ON THE PASSAGE OF S.B. 306.
SENATOR RAWSON SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR COFFIN WAS ABSENT FOR THE VOTE.)
*****
Commission on Economic Development – Budget Page TOUR&ECON-1
(Volume II) Budget Account 101-1526
Bob Guernsey, Principal Deputy Fiscal Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, reported matching grants for the regional development authority are funded from a General Fund appropriation of $995,000 in each year of the next biennium. He said the goals of the regional development program are to create jobs, increase capital investment, and generate tax revenue.
Mr. Guernsey explained the Governor recommends continued General Fund support in the amount of $500,000 per year over the next biennium for the Train Employee Now (TEN) program. He said S.B. No. 419 of the 70th Session amended NRS 231.151 to provide that funds appropriated for TEN do not revert to the General Fund but carry forward to the next fiscal year.
Senator Raggio asked whether BA 101-1526 would have to be replenished if funds were reverted to the General Fund.
Robert E. Shriver, Executive Director, Division of Economic Development, commented the 1999 Legislature decided to let the allocation carry forward to the next fiscal year. He explained TEN has already encumbered $730,000 since the budget was developed for the current fiscal year.
Senator Raggio asked whether a $750,000 cap could be placed on the program.
Mr. Shriver replied yes, it could.
Senator Tiffany asked whether the $750,000 is spent or encumbered funds.
Senator Raggio asked staff to find out whether the funds are spent or encumbered.
Mr. Guernsey reported the Commission on Economic Tourism will continue an annual transfer of $20,000 from General Fund revenues to support the State’s office in Washington, D.C.
Mr. Guernsey explained decision unit M-400 provides an additional annual appropriation of $19,378 for travel and training. He said decision unit E-150 recommends $1088 each year in the biennium for Web services training.
Senator Tiffany asked for a definition of Web services training. Mr. Shriver replied instruction in Web services trains employees to program the Web. He explained the commission would like to internalize Web functions rather than outsource Web functions.
Mr. Ghiggeri said the commission designs its Web pages. Mr. Shriver explained several employees design and change the commission’s Web pages on a weekly basis.
Senator Raggio requested a motion to approve and close BA 101-1526 based on continued funding for the State’s office in Washington, D.C., and providing a $750,000 cap on TEN spending, subject to a bill draft request amending Nevada Revised Statutes.
SENATOR TIFFANY MOVED TO APPROVE AND CLOSE BA 101-1526 BASED ON CONTINUED FUNDING FOR THE STATE’S OFFICE IN WASHINGTON, D.C. AND PROVIDING FOR A $750,000 CAP ON TEN SPENDING, SUBJECT TO A BILL DRAFT REQUEST AMENDING NEVADA REVISED STATUTES.
SENATOR CEGAVSKE SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR COFFIN WAS ABSENT FOR THE VOTE.)
*****
Nevada Film Office – Budget Page TOUR&ECON-7 (Volume II)
Budget Account 101-1527
Mr. Guernsey said there are no major closing issues related to BA 101-1527.
Senator Raggio requested a motion to approve and close BA 101-1527.
SENATOR TIFFANY MOVED TO APPROVE AND CLOSE BA 101-1527 AS RECOMMENDED BY THE GOVERNOR.
SENATOR CEGAVSKE SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR COFFIN WAS ABSENT FOR THE VOTE.)
*****
Rural Community Development – Budget Page TOUR&ECON-11 (Volume II)
Budget Account 101-1528
Mr. Guernsey reported there are limited federal funds available for rural community development. He said increasing the General Fund appropriation by 55.7 percent will continue existing positions.
Senator Raggio requested a motion to approve and close BA 101-1528.
SENATOR RAWSON MOVED TO APPROVE AND CLOSE BA 101-1528 AS RECOMMENDED BY THE GOVERNOR.
SENATOR RHOADS SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR COFFIN WAS ABSENT FOR THE VOTE.)
*****
Procurement Outreach Program – Budget Page TOUR&ECON-15 (Volume II)
Budget Account 101-4867
Mr. Guernsey reported there are no major closing issues in BA 101-4867. He said a 20.5 percent General Fund increase will continue the program due to limited available federal funds.
Mr. Guernsey noted the Federal and State Technology (FAST) program grant from the Small Business Administration is being discontinued. He indicated the budget will be adjusted to reflect the deletion of the FAST grant resulting in a reduction of $100,000 per year in federal Title III grant revenue.
Senator Raggio requested a motion to approve and close BA 101-4867.
SENATOR RAWSON MOVED TO APPROVE AND CLOSE BA 101-1528 AS RECOMMENDED BY THE GOVERNOR.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR COFFIN WAS ABSENT FOR THE VOTE.)
*****
There being no further questions or comments, the Chairman adjourned the meeting at 11:15 a.m.
Pamela Carter,
Committee Secretary
APPROVED BY:
Senator William J. Raggio, Chairman
DATE: