MINUTES OF THE

      ASSEMBLY COMMITTEE ON WAYS AND MEANS

 

      Sixty-seventh Session

      June 9, 1993

 

 

The Assembly Committee on Ways and Means was reconvened by Chairman Morse Arberry, Jr., at 1:15 p.m., on Wednesday, June 9, 1993, in Room 352 of the Legislative Building, Carson City, Nevada.  Exhibit A is the Meeting Agenda.  Exhibit B is the Attendance Roster.

 

 

COMMITTEE MEMBERS PRESENT:

 

      Mr. Morse Arberry, Jr., Chairman

      Mr. Larry L. Spitler, Vice Chairman

      Mrs. Vonne Chowning

      Mr. Joseph E. Dini, Jr.

      Mrs. Jan Evans

      Ms. Christina R. Giunchigliani

      Mr. Dean A. Heller

      Mr. David E. Humke

      Mr. John W. Marvel

      Mr. Richard Perkins

      Mr. Robert E. Price

      Ms. Sandra Tiffany

 

COMMITTEE MEMBERS ABSENT:

 

      Mrs. Myrna T. Williams              (Excused)

 

STAFF MEMBERS PRESENT:

 

      Mark Stevens, Fiscal Analyst

      Gary Ghiggeri, Deputy Fiscal Analyst

     

 

      BUDGET CLOSINGS

 

DEPARTMENT OF PRISONS/DIVISION OF FORESTRY

 

Assemblyman Larry Spitler, District 41, presented the report of the subcommittee on the Department of Prisons/Division of Forestry.  He thanked the members of the subcommittee and fiscal staff for their work.

 

Mr. Spitler noted the Governor's recommended funding for the Department of Prisons was predicated on approval of SB 388, which would have provided for the release of inmates as a method to control the inmate population.  The Senate Finance Committee did not approve SB 388, however.  Therefore, the subcommittee's recommendations were based on the Department of Prison's projections that the inmate population would increase over the coming biennium an average of 355 inmates in fiscal year 1993-94 and an average of 768 inmates in fiscal year 1994-95.

 

The total cost of housing the additional inmates would be approximately $16.1 million over the biennium.  Additionally, $2.9 million in general obligation bond funding would be required to complete the expansion of the Pioche conservation camp from 78 beds to 194 beds.  The Governor had recommended those bond proceeds be redirected to new projects.

 

Mr. Spitler explained the Public Works Board had identified additional general obligation bond proceeds which could be redirected from existing projects to new projects and $1 million recommended for culinary renovation at the Nevada State Prison was withdrawn as a recommended public works project.

 

Mr. Spitler noted the Department of Prisons budget was constructed on the basis of "inmate-driven" costs, which fluctuated depending on the number of inmates incarcerated in the system.  Projected inmate-driven costs totaled $708,244 in fiscal year 1993-94 and $1,664,747 in fiscal year 1994-95 for a total of $2,372,991 over the biennium.

 

The Executive Budget proposed closing seven conservation camps.  The subcommittee recommended allowing those camps to remain open to house inmates over the coming biennium, assuming the Lovelock correctional facility did not open in that time.  The Southern Nevada Correctional Center in Jean would be opened to handle inmates.  Female inmates would be housed at the southern Nevada conservation camp in Jean and the Silver Springs conservation camp.

 

The approximate cost to keep the conservation camps open, excluding inmate-driven costs, would be $4 million in fiscal year 1993-94 and $4.2 million in fiscal year 1994-95.

 

The subcommittee recommendation also provided for miscellaneous adjustments to the Department of Prisons budgets such as replacing a funding shortfall that resulted from the reduction in estimated federal revenue for housing Mariel Cubans, unbundling of the data processing reorganization, providing funding for insurance and medical exams and other technical adjustments.

 

The subcommittee also recommended issuing a letter of intent to the Department of Prisons stating the substance abuse coordinator position supported by federal grant funds would cease to exist when the grant funding expired.

 

Additionally, the subcommittee anticipated savings, as recommended in the Executive Budget, for exclusive provider/utilization review of $1,511,045.  Savings from hospitalizing inmates in the regional medical center rather than outside hospitals would be $944,406.  If AB 488 (compassionate medical release) was approved, the savings would be $844,301.  If AB 488 was not approved, $844,301 would have to be added to the subcommittee's closing recommendations.  The budgeted cost for inmate medical care would be $717.92 in fiscal year 1993-94 and $765.52 in fiscal year 1994-95.  The actual fiscal year 1991-92 cost was $862.46.

 

The subcommittee's recommendation for the Lovelock Correctional Center was based on funding of the "mothball" costs from bond proceeds recommended by the Department of Administration.  The Executive Budget contained no funding for the operating/mothballing of this facility over the 1993-95 biennium.  The estimated cost of mothballing the facility was $1.3 million, including the cost of extended warranties.  Bond counsel concurred with the use of bond proceeds for this purpose and suggested specific language to be included in the capital improvement legislation to facilitate this action.  Actual approval of the funding would be discussed when closing the Public Works Board budget.

 

The 1991 Legislature approved funding for furnishings/equipment for approved expansions of the Indian Springs and Pioche conservation camps.  Since the expansion of those facilities would not be completed prior to June 30, 1993, the subcommittee recommended extending the reversion date to June 30, 1995.

 

The subcommittee also wished to inform the committee the Executive Budget did not include funding for furnishings/equipment for the recommended reconstruction of the Stewart conservation camp (CIP 93-C6; $4.7 million) and expansion of the facility from 188 beds to 230 beds.  Since the expansion would not be completed and available for use during the 1993-95 biennium, funding for furnishings/ equipment would not require approval by the 1993 Legislature.  Funding approval would be required by the 1995 Legislature, however.

 

The subcommittee's recommendations relative to the Division of Forestry were to provide funding required by the division to operate the conservation camp program based on the projected inmate population over the coming biennium.  Additional funding required by the division would be $2.6 million in fiscal year 1993-94 and $3.1 million in fiscal year 1994-95, or approximately $5.7 over the biennium.  This funding would provide for salaries and operating costs.  One crew supervisor would be provided for each inmate crew of 12 inmates.

 

Mr. Humke asked if fiscal staff had analyzed the subsequent costs which would have resulted from passage of AB 388.  Mr. Ghiggeri said it had not.  However, even if AB 388 had passed, the conservation camps and the Lovelock Correctional Center would probably have been reopened in fiscal year 1994-95.  He noted he had requested but not yet received a copy of the Department of Prisons' seven-year plan which would disclose inmate projections.

 

      MR. MARVEL MOVED TO CLOSE THE DEPARTMENT OF PRISONS/DIVISION OF FORESTRY BUDGETS IN ACCORDANCE WITH THE RECOMMENDATIONS OF THE SUBCOMMITTEE, WITHOUT COMPASSIONATE RELEASE.

 

      MR. PRICE SECONDED THE MOTION.

 

Ms. Giunchigliani noted the compassionate release bill was on the Chief Clerk's desk and the motion was inappropriate.

 

Mr. Spitler reiterated the subcommittee recommendation provided that in the event the bill failed, additional funding would be required in the budget.

 

      MR. MARVEL AMENDED HIS MOTION TO CLOSE THE DEPARTMENT OF PRISONS/DIVISION OF FORESTRY BUDGETS IN ACCORDANCE WITH THE RECOMMENDATIONS OF THE SUBCOMMITTEE, BASED ON RESOLUTION OF THE COMPASSIONATE RELEASE BILL.

 

Ms. Giunchigliani asked what shortfall would result in the budget as a result of this action.  Mr. Ghiggeri said opening the Lovelock facility would provide an additional 500 beds at an approximate cost of between $7 million and $8 million per year.  Keeping the conservation camps open would provide 970 beds for a cost of approximately $16.1 million over the biennium.

 

Mr. Spitler noted opening the Lovelock facility would only accommodate the first year of the biennium.  There would be increased demand on beds in the second year, which would increase inmate-driven costs.

 

Ms. Giunchigliani asked what the total shortfall was.  Mr. Ghiggeri responded it would be the $16.1 million cost of the conservation camps plus approximately $850,000.

 

Ms. Giunchigliani said she would support the motion with the understanding the Legislature needed to locate an additional $50 million to $60 million in revenue.

 

Mr. Spitler stated no one preferred funding prisons over children's issues.  Unfortunately, there was no way to cut prisons costs because they were all inmate driven and Nevada had a high incarceration rate as well as a high denial rate for paroles and probation.  The Legislature as well as the voters have taken a tough-on-crime stance even though it was costly to operate prisons.  He expressed the hope in the future the Legislature would examine various sentencing alternatives and his opinion that social problems should be attacked from the front end in an effort to limit the number of prison beds needed.

 

Ms. Giunchigliani said this was a dilemma which had to be faced because of the holes in the budget.  She suggested reopening and properly refunding the education budgets.

 

Mrs. Evans noted some of the costs in the canine units were "doggie driven".  Mr. Ghiggeri explained fiscal staff had estimated like costs per dog per institution.  Some institutions had two dogs.  Some institutions had three dogs.  The average annual cost was $735 per dog for medical expenses and food.

 

Ms. Tiffany asked if the Legislature intended to study parole, sentencing or inmate reform.  Mr. Spitler said this issue had been studied extensively.  Information was available to guide the Legislature in a different direction; however, it was in opposition to the public policy demand for the state to remain tough on crime.

 

Ms. Tiffany asked if it would be reasonable to issue a letter of intent to the Department of Prisons requiring the department to make recommendations for reform.  Mr. Spitler reiterated the prison system was entirely inmate driven.  The Department of Prisons was in the business of taking care of inmates.  Reform would have to occur outside the prison system before people were incarcerated.

 

      THE MOTION CARRIED UNANIMOUSLY.  MS. GIUNCHIGLIANI AND MRS. WILLIAMS WERE ABSENT.

 

      BUDGETS CLOSED.

 

There being no further business, the meeting was adjourned at 1:38 p.m.

 

                                                RESPECTFULLY SUBMITTED:

 

 

                                                _________________________

                                                C. Dale Gray

                                                Committee Secretary

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Assembly Committee on Ways and Means

June 9, 1993

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