MINUTES OF THE
ASSEMBLY COMMITTEE ON WAYS AND MEANS
Sixty-seventh Session
April 13, 1993
The Assembly Committee on Ways and Means was called to order by Chairman Morse Arberry, Jr., at 7:32 a.m., on Tuesday, April 13, 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
Mrs. Myrna T. Williams
COMMITTEE MEMBERS ABSENT:
None
STAFF MEMBERS PRESENT:
Mark Stevens, Fiscal Analyst
Gary Ghiggeri, Deputy Fiscal Analyst
AB96 Repeals duplicate and obsolete provisions concerning funds maintained by school districts.
Mr. Mike Alastuey, Clark County School District, stated the district supports AB96. He explained the bill was drafted and introduced at the School District's request. He pointed out there are duplicate provisions in NRS where NRS 387 includes reference to school district petty cash accounts at various levels and an outline of the amount at which checks from such funds may be drawn. He stated NRS 354.609 which relates to school districts, cities, counties, and other local governments, is a better statute. He emphasized the two statutes are duplicate and it is the school district's preference and recommendation to have the provisions in NRS 387 be stricken. He indicated AB96 would require no appropriation.
Chairman Arberry closed the hearing on AB96.
AB98 Allows adjustment of apportionment for support of education of handicapped children less than 5 years of age.
Mr. Jim Costa, Assistant Superintendent for Business and Operations, Churchill County School District, expressed the support of the Board of School Trustees of Churchill County for AB98. He stated the early childhood program began in Churchill County school district about five years ago and they have found the numbers of these children are not fixed for the year like other student categories on the last Friday of the first school month. Because these children become eligible for services whenever they turn three years of age, they can enter the program anytime during the school year.
Mr. Costa emphasized Churchill County has seen the early childhood program increase from 60 to 90 pupils in a given year. He stated because of the special treatments and services required for these children such as additional staff, physical and occupational therapy, counseling and close parental contacts, the .6 basic support guarantee per student does not fully fund the program costs.
Mr. Costa urged the committee to approve AB98 to compensate for the additional costs.
Chairman Arberry inquired what the estimated additional funds would be. Mr. Costa replied the current cost per pupil for Churchill County's early childhood program is averaging $3,500 and would translate to approximately $90,000 per year. Mr. Arberry asked what the total costs would be, without adding to the budget. Mr. Stevens stated the fiscal note indicates the cost for FY94 would be $1.4 million and for FY95 would be $1.5 million.
Mr. Marvel questioned if this cost would be over and above the existing budget. Mr. Stevens replied that was correct.
Mr. Alastuey, Clark County School District, stated support for the concept in AB98. He explained the Clark County school district has also experience substantial growth between the count day and the highest enrollment point in the year. Generally speaking, at the point when children are old enough to enter school, utilizing the student count from the last day of the first month of the school year is essentially accurate. For early childhood programs, however, enrollment is not fixed and throughout the school year, the number of students enrolled increases as the children become eligible. This is a key to this special population and needs to be considered as a factor.
Mr. Marvel inquired if this issue had been brought to the attention of the Department of Education when they were preparing the budget request. Mr. Alastuey replied he believed it had been made known to the department through district and school board discussions. He elaborated the department had coordinated in the preparation of the fiscal note attached to AB98. Mr. Marvel wondered if the increased program costs had been a recommendation of the Budget Office. Mr. Alastuey responded it was not.
Chairman Arberry closed the hearing on AB98.
AB99 Authorizes financial assistance to school district that adopts extended school year program.
Mr. James Costa expressed the support of the Churchill County Board of Trustees for the passage of some form of AB99. He explained in 1990 the citizens of Churchill County approved a $12 million bond issue to build a new elementary school, to remodel the junior high school and add five classrooms, to retrofit the heating/cooling systems, and for an addition to the high school. The Board, at the time, committed to the public that year-round schools would be instituted before any additional bonding for new construction would be requested. He indicated the new elementary school and the retrofits of the existing elementary schools were planned to make the commitment possible.
Mr. Costa expressed, because of growth, but especially because of the 16:1 ratio in Grades 1 and 2, the county's elementary schools, even with the new school, quickly expanded to fill all the classrooms. Therefore, in school year 1992-93, the Trustees converted one elementary school to year-round. This guaranteed 16:1 instead of 32:2 in a classroom and class sizes not exceeding 25:1 in any other classroom. He emphasized year-round may achieve the delay of bond issues requiring borrowing and payment of interest, but year-round programs cannot occur without additional cost to the operating budget of the school district.
Mr. Costa explained it is a trading of dollars, but less burden than a bond issue would require on the local tax rate of the county. Nevertheless, it is added cost to a budget largely supported by basic support from the Distributive School Account which is already stretched to the limit. He reiterated a school operating for 235 days is being operated 30 percent longer than a traditional school and this translates to extra costs for salaries and benefits for specialty area teachers, nurses, librarians, counselors, special education teachers and aids, bus drivers, and food service persons and for operating costs for utilities, especially electricity because of air conditioning. Mr. Costa emphasized a three percent basic support guarantee per pupil of the district times the total pupils in the school would be a reasonable allocation.
Mr. Costa remarked, with respect to the distribution of funds, Churchill County School District would request the phrase "full design capacity of the school" be discussed before regulations are developed. He indicated all the district's schools have a design capacity based on pre-class size reduction requirements. The new elementary school was designed for 600 students, but class-size reduction has limited it to 526. The District also feels the bill should go into effect whenever the school district reaches its defined full design capacity and not when the individual school reaches capacity. He pointed out this may not be applicable or possible in other districts and Churchill County would not suggest those districts be penalized.
Mr. Costa acknowledged Churchill County School District assigns pupils to schools when the neighborhood traditional or year-round school is full. He stated the district uses a bus-transfer system to get students to the school of attendance and if the enrollment is such that the new elementary school must implement a year-round schedule in the second year, the district feels the school should be eligible for a distribution. He stressed all of the current data supporting this move would be available for review by the Superintendent of Public Instruction.
Mr. Costa commented, not a subject of AB99 but just as important, is the benefit to students and teachers as a result of year-round schools. The Churchill County School Trustees believe there is also educational value to year-round schools. Shorter vacations with less learning attrition, more frequent breaks reliving boredom and stress and a healthier atmosphere for students and teacher are a few of the benefits of the year-round school program.
Mr. Costa urged the committee to consider the district's points and a favorable response to AB99, perhaps amended, and year-round education.
Chairman Arberry noted both AB98 and AB99 ask for funding and asked Mr. Costa when these bills were drafted, from where was it proposed the funds would come. Mr. Costa responded he was not involved in the drafting of the bills, he is only testifying in support on behalf of Churchill County. He pointed out if the committee cannot support the funding of these bills, the county will wait until the next session. Chairman Arberry stated funding is scarce and these proposals may need to wait for the 1995 session.
Mr. Marvel inquired if any other schools districts were thinking of going to the expanded school year. Mr. Costa replied several school districts have year-round schools currently and all of them have implemented the program similar to Churchill County's system. He emphasized all school districts with year-round schools carry the cost themselves from operating funds. Other school districts will be trying year-round schedules, not so much for the overcrowding issues, but for the educational value found from this program. Mr. Marvel noted Fremont School in Carson City had been on the 45-15 program and wondered how many schools were on a year-round schedule. Mr. Costa indicated he was not sure on the exact number, but Douglas, Churchill, Washoe, and Clark Counties each have some form of year-round programs.
Mr. Marvel asked if districts are operating through their basic support from DSA without requesting additional funds for the year-round programs. Mr. Costa stated yes they are.
Mr. Henry Etchemendy, Executive Director of the Nevada Association of School Boards, testified AB99 was drafted at the association's request and parallels a bill they had drafted and introduced at the 1991 Legislative session. He indicated there are, however, several differences between the two. The 1991 bill stipulated the payment would be for five years of the life of a multi-track year-round school, but the Association believed five years of payment would be too large an allocation for this session so three years allocation was chosen for AB99. He stressed the Association hoped funding would be provided estimated on full capacity to avoid a shortfall when full capacity is reached. He noted on lines 1 and 2 on page two, the intent of the statement was if a year-round school was added and it was not at full capacity on the first day of school it would then be eligible for the additional payment. However, if after one or two years or anytime within the first year enrollment reached full capacity then any additional payment would stop. Whether the statement is crafted correctly in order to fulfill the intent, the Association was not sure. He commented the Association wished they knew a source for additional funds. They fully understand the state's needs and appreciate the legislature's attention to the special needs of education. He urged the committee to provide this incentive for the school districts to actively pursue year-round school programs. He stressed this option is quite political when first introduced in school districts, but the benefits outweigh the downsides, especially when the alternatives for teaching all the children compare year-round scheduling to additional bond issues.
Mr. Mike Alastuey testified Clark County School District echoes the statements of Mr. Costa and Mr. Etchemendy. He pointed out Clark county does invest heavily in year-round programs and the cost differential of about 3 to 4 percent for utility costs alone has been a real drag on the school budgets. The districts have carried the costs thus far, but the funding from AB99 will be a welcome relief. Any incentives or assistance for year-round schools will provide for expansion without impacting other essential programs.
Ms. Lindsay Jydstrup, representing Nevada State Education Association (NSEA), testified NSEA is not opposed to year-round schooling, however, NSEA does not believe this is a luxury the state can afford at this time. She stated the committee has heard example after example of budget cuts the various districts have made to stretch the per pupil dollars as far as possible, draconian cuts in some instances. In light of these cuts, NSEA urged the committee's opposition to AB99.
Chairman Arberry closed the hearing on AB99.
AB261Makes appropriation to department of education for support of special educational needs of American Indians.
Paula Berkley, representing the Washoe Tribe, introduced herself. Mr. Brian Wallace, Chairman of the Washoe Tribe of Nevada and California, stated he was in support of AB261. He explained Ms. Berkley would present some testimony, Ms. Lenora Kaiser, Vice Chairman of the Washoe Tribe, would testify and he would make closing remarks. He noted two students, Dan Therman and Bernie DeLorum, would make a short presentation. Mr. Wallace indicated Ms. Peggy Bowen of the State Board of Education was also available to answer questions.
Ms. Berkley stated the goal of the presenters was to entertain the committee while also showing ways in which AB261 could be utilized in the classroom environment. Mr. Thayer and Ms. DeLorum are from the Sparks Indian Colony and have developed the cultural sensitivity session for the Reno-Sparks Indian Colony's Drug Prevention Coalition. Ms. Berkley pointed out she is also a member of the Coalition. The Coalition thought the presentation was quite indicative of some of the needs in the school system and would be beneficial for the committee to see.
Ms. Berkley explained AB261 would fund a mandate already required by statute and cited the information provided in EXHIBIT C. She noted the Fact Sheet has all the necessary information summarized. The bill would fund a position to develop curriculum to work with the Tribes. She emphasized this would allow the Superintendent's office to provide curriculum for Native American people and reflect a funding request only.
Mr. Thayer, Project Specialist for the Reno/Sparks Drug Prevention Coalition, stated he and Ms. DeLorum have worked with the school district for three and ten years, respectively. He indicated they have seen a number of stereotypes presented to Native American children. They presented their program on Stereotyping of Indigenous People of Northern America. He indicated sports teams such as Atlanta Braves, Washington Redskins, and Cleveland Indians and vehicles such as Dodge Dakota, Winnebago, and Jeep Cherokee Chief stereotype and are offensive to Native American people. They discussed slang terms. They pointed out burial ground desecration is of great concern and they indicated the exhibition of over 20,000 of their ancestral remains at the Smithsonian alone could be likened to exhibiting the remains of Holocaust victims or Custer's soldiers.
Mr. Thayer discussed the display of artifacts shows a lack of respect and the desecration of the Native American's traditional beliefs, such as medicine bundles, pipes, bonnets and eagle feathers. He reiterated all of these should be with the Indian people, not on display.
Ms. DeLorum explained school curriculum perpetuates stereotypes and incorrect historical information. Examples include the theory of the Bering Strait as the source of Native Americans, Indian Wars, incorrect terminology. She emphasized these affect the Native American students and hurt their feelings, provide a negative image and affect self-worth and self-esteem. She cited a poster on "Dressing Up Indian Style" which a teacher had shown in a classroom. She likened it to an Indian dressing up as an Oriental for the day. She showed an "Indian" outfit she found in a teacher's lounge and stated it was very disrespectful because authentic Indian clothing is painstakenly made from buckskin and represents a specific Native American heritage.
Ms. DeLorum stressed these examples create for Indian students many feelings of inadequacy, and "lesser than" within the whole curriculum. Mr. Thayer cited another example of the multi-colored feather cap. Ms. DeLorum stated the YMCA's Indian Guide series is the most humiliating, offensive and degrading program to Native Americans (see EXHIBIT D). The program is quite dehumanizing and perpetuates the stereotypes which are also seen in school curriculums. Mr. Thayer pointed out the Y program also has tribes of which one is the Washoe Nation.
Mr. Thayer and Ms. DeLorum presented some alternative names for sports teams and vehicles: Cincinnati Caucasians, Washington Whiteskins, Atlanta Albinos, Cleveland White Boys, Denver Dutchman, New York Jews, Seattle White Girls, Jeep Jew, Dodge Dutchman, Chevy Caucasion President, Ford Frenchman 4X4, Cadillac Square Dance, and Czechoslovakian Mobile Home.
Ms. Berkley indicated the point of the presentation was to enhance cultural awareness of Native Americans and emphasized, although the State Board of Education desires to present the best information to students, they do not have the critical and sensitive eye to the issue as the Native American people do. She elaborated by having the Native American consultant in place as directed by statute, the individual would be able to better assess the curriculum needs of Nevada's schools in relation to Native American issues. She noted the Coalition members did not cite the example of a book which teaches the alphabet and all letters are represented by an inanimate object except "I" which is an Indian. This is indicative of one area the Washoe Tribe would like to integrate into the functions of the Indian position.
Ms. Berkley provided some historical data which brought forth AB261. In August of 1991, several individuals formed a State Steering Committee for the White House Conference on Indian Education. The Steering Committee was composed of 25 tribes in Nevada plus representatives from: the Las Vegas Indian Center, Nevada Urban Indians, Save the Children Federation, UNR, UNLV, Washoe County School District, TMCC, Washoe At Risk Task Force, Clark County School District, Nevada State Indian Commission and Bureau of Indian Affairs. The purpose of the committee was four-fold: assessing the state of Indian education in Nevada; expressing the needs on a local level; proposing recommendations; and studying the feasibility of establishing an independent Board of Education. From this study, 48 concerns/issues were developed and submitted to the Washington conference at the Indian Nations at Risk Task Force. (see EXHIBIT C)
Ms. Berkley recognized one of the offshoots of this national conference was the awareness, upon the part of Nevada Tribes, of how common were their problems and concerns were. After presenting and discussing these problems with Dr. Paslov. The need was identified to have one individual to bring information from Tribes into the Board of Education and out to the classroom environment. She stated this was the genesis of AB261 and the establishment of a Native American chair. She emphasized Nevada is the only state without an Indian chair on the board.
Ms. Berkley testified the Superintendent agreed the Indian chair was a good concept. Tribes went before the Board of Education and requested funding for the position and the Board indicated it was in the middle of the budgetary process and unable to add the position. The Tribes requested a grant to fund the position, but all attempts, thus far, have failed. Ms. Berkley commented the failure of the grants could be attributed to the lack of a Native American viewpoint in the initial grant proposal and emphasized special wording is needed in grant writing. If a Native American chair was in place, then Native American verbiage would be accessible and Native American grants might be obtained.
Ms. Berkley indicated Ms. Kaiser had found the NRS actually mandated what the Tribes were trying to establish. Upon pointing the statute out to Dr. Paslov, he agreed with the mandate, but reiterated there were no funds to establish the chair. The State Board of Education, with concurrence of Dr. Paslov, asked the Tribes to sponsor a bill that would fund this position. They believed the tribes would have a better chance of getting the funding for this law than the Board of Education. Because the Tribes, other Indian organizations, state agencies, and the state's powerful educational organizations all agree this position is critical to the future of Indian education as a whole, the Tribes encourage the committee to support AB261.
Chairman Arberry indicated there are 48 states which already have an Indian chair. Ms. Berkley replied yes, there were and one part-time and Nevada. Chairman Arberry asked how long have these positions been in place. Ms. Berkley responded in the 1960's, on average, most states established the position, but she did not have the exact dates on each state. She would provide the information. Mr. Arberry requested Ms. Berkley to provide the data on when each state established the position and an analysis on if the goals were being achieved in the other states.
Ms. Giunchigliani asked what the Native American federal funds are utilized for. Ms. Berkley replied Indians on reservations are not required to pay property taxes and the federal dollars are in lieu of those funds for each individual child. Ms. Giunchigliani stated the position has been in statute since 1979, yet no consultant or program had been established. Ms. Berkley remarked nearly $4 million per year has been provided by the federal government for Native American issues and children, and it should be feasible to have $90,000 go for an Indian chair since there are no other Native American programs.
Ms. Lenora Kaiser, Vice Chairman of the Washoe Tribe of California and Nevada and member of the Indian Education Steering Committee in Nevada, discussed why an Education Consultant for Indian Education is needed in Nevada. She discussed the drop-out rate (see EXHIBIT E.) The consequences of dropping out of high school are highly documented and the dropout rate of American Indians has a direct impact on future leadership not only in Tribal government, but in Nevada state government as well. She encouraged the committee to approve AB261 and indicated the position would be an asset for the Native American community and students as well as a potential help in bringing more funding into the state by means of grants from the U.S. Department of Education.
Mr. Brian Wallace stated one of the areas to which the Washoe Tribe is deeply committed is making education a high priority. He indicated the tribe has been successful in instituting educational processes on all reservations through Head Start and heavy investment in after-school tutoring efforts. Mr. Wallace emphasized the tribe has seen immediate results such as grade-point averages for high school students are now around 3.0.
Mr. Wallace testified, as Chairman of the Tribe, he is sworn to protect and preserve Indian heritage and cultural values, and the historic background of the Washoe people and their connection to the region with the purpose of passing on to the children an enriched environment with tools to attain their goals. The tribe has shown by improving the dropout rate for the American Indian students, the state can improve the overall performance of its students. Further, through increased graduation rates, more Indian students will be better prepared to take the college entrance exams and increase the number of college graduation rates, and hopefully, more Native American children will enter the teaching profession.
Mr. Wallace pointed out through more accurate and relevant curriculum packages in the schools, the students will learn of the contributions made by their ancestors. The renewed self-awareness of Indian cultural identity and heritage will have a positive impact on the Native American children's social and psychological well-being. Other benefits of this position are educators will be better prepared to handle the unique needs of Indian children and their parents through cultural awareness training and more dollars will come to Nevada to impact the education system through grant writing. He pointed out the Tribes also have expert grant writing staff who will be able to share in identifying funding opportunities and provide demographic data.
Mr. Wallace stressed the elected tribal leaders in Nevada want to join hands with the elected state officials to continue to promote sovereignty and self-determination. They desire to enter into partnership with the state by investing in the quality of education in the public institutions for Native American children.
Mr. Wallace answered Chairman Arberry's question regarding when the idea of a chair began. He stated the Snyder Act of 1977 allowed Indian Tribes to more directly contract and run federally-driven and federally-financed programs directed to Indian beneficiaries. Therefore, communities would have control of themselves. The law was sharpened with the passage of the Indian Education Assistance Act (Johnson O'Malley) of 1975, amended in 1988. This act focused more resources in the education area. In response to Ms. Giunchigliani's question, Mr. Wallace said the funds are not just federal. A majority of funding is provided by the Indian Tribes of the state from general funds received from tax receipts from tobacco and businesses on the reservations. He stated the funds account for five times more than the investment made by the State of Nevada even though all Indian children attend public schools.
Mr. Wallace emphasized there is a large differentiation between the amount invested by the Indian community in the education process and the amount provided by the state.
Chairman Arberry asked who prepared the budget and, regarding the salary level of Grade 39, Step 15 noted, what is the starting salary of the position. Ms. Kaiser stated step 15 in the state payroll schedule is the top salary for a consultant. She indicated the starting salary is approximately $32,000. Mr. Arberry asked what the out of state travel would be utilized for. Ms. Kaiser explained there are several conferences regarding Indian education which are held out-of-state for all levels of educators. Mr. Arberry asked why equipment costs are listed for 1993 only. Ms. Kaiser indicated the equipment costs would be for a desk, chair, file cabinet, personal computer and ancillary units.
Chairman Arberry inquired, if approved, where would the consultant be housed. Ms. Kaiser responded the consultant would be in the Department of Education and would pay rent which is included in the budget presented under operating costs. She explained all costs related to the consultant position were formulated from existing budgets for similar consultant positions in the Department of Education.
Chairman Arberry wondered what costs are included under the Indirect Costs line item. Mr. Wallace replied the indirect costs comprise the overhead operating costs for operating the office and are based on similar budget calculations as used in federal schemes. He reiterated the Tribes are presenting this proposal as a shared partnership and believe this position will provide an added line in the network effort. The network currently focuses attention and resources effectively with volunteers, tribal involvement, heightened parental contributions, and community activism to support these children in educational endeavors. He emphasized the educational centers on reservations are some of the proudest examples of community facilities and provide a direct connection with the community at large for the educational success of these children. He exclaimed these are not necessarily quantifiable in dollars and cents or material values, but would assist the education consultant in his endeavors.
Ms. Peggy Lear Bowen, teacher, Chair of Nevada Indian Commission and member of Nevada State Board of Education, emphasized the state has a valuable resource which is being wasted and the children are falling into the cracks. She explained there are 27 nations within the State of Nevada with the reservations and living groups. The Indian children are in the public schools because no Native American school facilities exist in the state. She emphasized the statute exists and is not being funded to the detriment of the children.
Ms. Bowen noted Native American children are dropping out at a rate of 13.5 percent of their population. She pointed out the statistics are skewed because this is the only minority which is based on blood quantum. The individual must be a certain percentage of blood of a given tribal entity in order to qualify. She pointed out even though an individual may be 100 percent Native American, if he did not meet the percentage requirements for any specific tribe, he would not be recognized on any tribal roll. Therefore, the statistics for dropouts and other information are actually greater than indicated.
Ms. Bowen summarized, in reality, the bottom line cost to the state of Nevada is productive human beings because the state does not have an educational focus for the Native American children. No coordinator or chair exists to direct programs for the public schools or to discuss scholarships and tutorial programs, and the result is quite literally a wheel without a hub. She emphasized the steering committee was originally going to request of the Legislature a separate Department of Education for Native Americans. While investigating this proposal, the committee found they could work within the existing Department and work well with the current structure, so the request is for one consultant position to coordinate the numerous opportunities and disseminate the information and programs which exist.
Ms. Bowen emphasized the state previously had an Indian chair. She explained in 1974 Dale Little Soldier was the chair. When the state decided to distribute Johnson-O'Malley funds to the individual tribes, the state eliminated the chair position.
Mrs. Evans inquired, in regard to the statement on skewed statistics, because of how the formula is set, was Ms. Bowen saying some people are not counted as Native American even though they are 100 percent Indian. Ms. Bowen said that was correct. Mr. Wallace explained over the last 12 years there has been a focus of financial accountability and a reduction of support to public education nationally. Therefore, there was push to create a more restrictive eligibility criteria for federal beneficiary Indian students in education, health and human resources, and the United States has defined if the individual was not a member of one of the 524 federally-recognized Indian tribes based on the tribe's eligibility criteria, he would not be eligible for the federal benefits. He stated what has occurred over the last 250 years is some tribes have entered into agreements and are not a recognized tribe while other tribes did not believe they needed federal recognition to define who they are and still others who did not want to be involved in the constitutional scheme of recognition. The result is a large number of Native American children who are a part of the public school student population do not benefit because they do not have enough blood quantum to qualify for any particular tribe. These are the children which fall through the statistical cracks.
Mrs. Evans stated this is an utterly ridiculous situation. Ms. Bowen agreed, but stated this is the reality of the system. Mr. Wallace concurred and commented this is the life for the American Indian. Ms. Bowen reiterated this creates a difficulty in providing fully accurate statistics. The position which existed in 1974 was for the sole purpose of distributing Johnson-O'Malley funds and the position was eliminated when funds were rerouted through the individual tribes rather than expanding the duties of the position. She reiterated the current need is to have a person who will show Native American children they can get ahead educationally, economically, emotionally and live a better quality of life. The position which AB261 will fund can be the focal point to provide these types of services for Native American children from Head Start through graduate programs.
Dr. Eugene Paslov, State Superintendent of Public Instruction, stated Assemblyman Wendell Williams who introduced AB261 and has worked closely with the steering committee, had to attend another meeting, but wished to express his support of the bill.
Dr. Paslov reiterated the Tribes, via the Nevada State Indian Education Steering Committee, have met with the State Board of Education and himself and have identified 48 concerns and issues which need to be addressed through this Indian Education consultant position. He indicated his strong support for an Indian consultant chair with the department and, as the statistics presented have shown, the Department of Education is failing to provide adequate quality education needed for Native Americans to perform well within the educational system. He noted this is not due to any lack of desire or intent, but due to a lack of focus and a lack of knowledge of how to best address these concerns.
Dr. Paslov pointed out he did not believe the underlying issues can be addressed by reading an article on cultural sensitivity in a book. He pointed out, as the earlier presentation dramatically shows, the type of cultural sensitivity and awareness of the impact of what the state is presenting to students, non-Indian and Indian alike, is often difficult and unconscious.
Dr. Paslov emphasized, rather than coming to his office or the Board of Education with angry demands and accusations, the Nevada State Indian Education Steering Committee has developed recommendations and suggestions which he believes can be successfully implemented. He stated his embarrassment at having had to be shown the NRS statute requiring the state Board of Education to perform at a level of which he had not even been aware. Dr. Paslov testified he was requesting the Legislature to do what was not done in 1979 when the law was passed: fund this position. He stated too many years have gone by, too many problems remain to be addressed and resolved. Although this position will not dissolve all the problems Native American children have in the educational system, Dr. Paslov emphasized the position will provide the state an opportunity to focus attention and make use of the opportunities to work with the Tribes to begin to turn the problems around.
Dr. Paslov stressed without this position, he would not know how to begin. Although there is proof of a problem, the only avenue to effectively isolate and effect the specific cultural and educational disadvantages affecting Native Americans is through the Indian Consultant position. Because of the drastic budget cuts to the Department of Education, AB261 is the only way to address the funding necessary. He pointed out the program can pay for itself not only in the success in helping individual Native American children in the school system, but also by becoming aware of federal grants specifically designed for Native American school systems and children and capturing those grant funds. He reiterated the grants exist, but the current staff does not have the expertise to locate and successfully apply for them. He cited the failure of the grant request from last year.
Dr. Paslov stated he was willing to commit to the committee the following promise: the Department of Education will state the outcomes as performance indicators. In four years, with this position funded today, he stated the department will reduce the dropout rate of Native American children in Nevada. The Department will have programs in place that support and encourage Native American children to take the SAT tests because the students believe they can succeed in college. The Department will be able to document funds brought into Nevada which are equal to or greater than the annual funds AB261 provides for this position.
Chairman Arberry asked if the position would be appointed or would it go through the established personnel system. He voiced his concern it is imperative to fill the position with someone of Native American descent. Dr. Paslov replied the position would go through the normal personnel channels and he committed publicly to have Native American representatives integral in the hiring of the consultant to assure their needs are met.
Ms. Giunchigliani commented in this circumstance there has been neglect. She emphasized aside from the consultant and education of children, attention should be addressed to the Nevada history curriculum, overall curriculum in occupational and vocational areas, and teacher licensure needs an emphasis on cultural diversity. She explained teachers do not get education at the University level on any ethnic differentiation. This translates into the classroom on discipline issues. She noted teachers needed to be understanding about cultural needs, such as for an Indian child to look a person directly in the eyes is an immediate confrontation situation. She reiterated these cultural differences and needs should be included in teacher education and if the consultant position could bring such education to the teachers, she would be more inclined to approve funding.
Ms. Giunchigliani pointed out the higher salary was important. She explained if the position requires a Master's degree then, the person should be paid appropriately. She commented as a rule in state government, education does not translate into adequate salary.
Dr. Paslov indicated he has noted Ms. Giunchigliani's comments on curriculum and teachers' education changes and will adjust the position description to address these issues.
Mr. Humke inquired what types of strategies will be utilized to impact the dropout rate for Native Americans. Mr. Wallace replied a raw strategy is already in place with this position. He explained they would interject into the community level what is being done with the consultant and try to focus community-based planning on the consultant position. Other areas are drawing attention to the academic excellence of Native Americans, supporting the after-school tutoring programs, and help the consultant to sensitize the institutional process at large in relation to the cultural background and contribution of Indian children in the public school system. He emphasized the Tribes envision a marriage between tribal community programs and the goals of the Department of Education with the consultant as the focal point with emphasis on academic excellence.
Dr. Paslov explained the Washoe Tribe has initiated a number of strategies, one of which is recognizing academic excellence and staying in school for elementary and middle school children and rewarding them through community events which celebrate their achievements. He noted this type of encouragement needs to be expanded into the other 24 tribes in Nevada.
Mr. Heller asked if the state is out of compliance with NRS 389. Mr. Paslov replied NRS 389.150 suggests the Superintendent of Public Instruction "shall establish programs and curricula designed to meet the special educational needs of American Indians...". He pointed out to indicate the Department of Education is not doing any of it would not be accurate, but to say it is not being done to the level of assuring success with children is true. He reiterated the department is not doing enough and he had not been aware of the statute. He emphasized there was no position or funding for this and Ms. Kaiser brought the statute to his attention in the last couple of years.
Mr. Heller asked since Dr. Paslov has been aware of the law, what has occurred to implement such curricula. Dr. Paslov replied in cooperation with the steering committee, he has attempted to address some issues with the Tribal leadership. He stated he has tried, alongwith his former assistant Ms. Banderra, but indicated he is not a Native American and, therefore, lacks the full range of sensitivities necessary which will hopefully be embodied in the consultant chair position. Mr. Heller inquired if there were any alternative funding sources to accomplish compliance. Dr. Paslov responded he did not know what alternative could be available. He reiterated the department has been seeking federal funds through grants but has been unsuccessful to date. He concurred with Ms. Berkley in that the department will continue to pursue grants, but special attention to Native American wording is essential. Similar to state funding, Tribal resources are stretching about as far as possible and they have already devoted a considerable amount of their resources to the educational and cultural awareness programs.
Mr. Heller asked what grants are available. Dr. Paslov stated in federal ECIA funds under Migrant Education and Limited English Speaking Grants there is a provision for trying to obtain funds for hiring a minority representative to oversee not only the Native American issues, but the broader range of minority issues. He emphasized the department has not been successful in obtaining a grant from this area. If the position is funded, the state will have a much better chance of receiving federal grant funds.
Ms. Bowen pointed out the Native American people of Nevada have put together several curriculum pieces at their own expense to be used in the public school classroom. These pieces in Elko and Clark counties were supported by the Department of Education, but at the expense of the Tribes, not the state.
Miss Sadie Jo Smokey, student from Douglas High School and member of the Washoe Indian tribe, stated she believes an Indian chair in the Department of Education is needed. She explained the Indian students at her school have many problems. There is a high dropout rate. There are no Indian role models such as teachers or counselors. There is prejudice and a lack of teachers culturally sensitive to the Indian students' needs. There is a lack of scholarships or incentives for Native American students to go on to college. Miss Smokey indicated an Indian chair would be able to address a number of these problems and urged the committee to fund this important position.
Ms. Giunchigliani pointed out a broader piece which needs to be addressed is the issue of discrimination. She explained six years ago the NSEA had to take up a collection for curricular textbooks, paper, dictionaries etc., for the Indian tribes. She emphasized the treatment in some parts of Elko toward individuals and the racist attitude toward the Indian population is quite apparent. She pointed out this position will at least achieve some level of sensitivity for the population and their needs. Ms. Giunchigliani reiterated no public school child should have to have donations in order to be on an equal basis as other students. She pointed out the ethnic background of teachers is not equal to the ethnic diversity within the student population regardless of racial background.
Mr. Wallace concluded the alternative is what exists now and it is at the expense of the children who can least afford it. He presented a poster illustrating the children's request to fund AB261. The poster showed Carson River with some children in a boat about to go over a waterfall if help is not provided.
Ms. Kaiser recognized the Chairman of the Walker River Tribe and submitted a statement and resolution on its behalf (see EXHIBIT F).
AB317Requires apportionment from state school distributive account to be made monthly.
Mr. Bob Seale, Treasurer, indicated AB317 was drafted at the request of the Controller's Office, but it impacts the Treasurer's Office rather significantly. He explained each quarter the Treasurer makes a distribution of the Distributive School Account (DSA). On several occasions, due to the lack of cash, distribution was made on a monthly basis which makes it quite difficult for the Treasurer to invest the funds. Part of the problem is if the distribution is not made, the school districts do not have the funds to invest. When funds are distributed on a quarterly basis, the funds are taken from the general fund and distributed to the school districts. In turn, some districts turn the funds over to the Treasurer in the Local Government Investment Pool (LGIP). Mr. Seale indicated the returns in the LGIP are significantly less than they are in the general fund. He stated if the distribution was made on a monthly basis, recognizing the earnings are greater in the general fund and providing for the earnings calculation on a monthly distribution rather than quarterly, everyone would win.
Mr. Darrel Daines, State Controller, explained the Legislature authorized the Controller to make monthly distributions when the cashflow was such that the quarterly distribution could not be made. He stated the quarterly distribution had been ordered when the Controller's was receiving gaming, sales and ad valorem taxes on a quarterly basis. Currently, these funds are received monthly which results in a high demand quarterly due to the school districts. The Controller's office cannot always accurately foresee the availability of taxes to carry out the remaining business demands. He justified the need to go to a monthly distribution because revenues are received in the same manner.
Ms. Giunchigliani commented when Senator Bryan was governor, payments were moved from quarterly to monthly because of cashflow problems. This had a severe impact and as a result of the shortfall the school districts lost money which was not regained. She suggested language be added to the bill which would recompensate the dollar loss or look at a trigger mechanism to recount in the middle of the year and adjust for any change in enrollment.
Mr. Seale noted he recognized the problems and suggested calculating interest on a monthly basis so everyone wins. Ms. Giunchigliani commented the fiscal note shows a loss in both years. Mr. Seale asserted the language does not indicate interest calculated on a monthly basis, therefore the loss.
Mr. Marvel asked if the quarterly payment is a prepayment. Mr. Daines replied it is. Mr. Marvel pointed out the prepayment issue causes problems.
Mr. Heller commented the funds have been disbursed on a monthly basis at the Department's discretion and asked what purpose AB317 serves. Mr. Daines responded it will assign apportionment on a monthly basis and the school districts will know they will get the funds at given times.
Mr. Alastuey testified in opposition to AB317. He stated this bill, if approved without amendment, is hostile to the school districts. He pointed out it takes an emergency procedure invoked due to lack of cash on the part of the State Controller in coordination with the State Treasurer and takes the "thin gruel" which has been the repast of the school districts over the past year and makes it their permanent diet. He emphasized the loss noted on the fiscal note will happen to the school district if AB317 is not amended and the loss is not made up in The Executive Budget. He encouraged discussion of making up funds through calculating interest monthly and amending the bill.
Chairman Arberry requested Mr. Seale and Mr. Daines to submit the amendment they are proposing.
Ms. Lindsey Jydstrup, NSEA, stated opposition to the current version of AB317 for the reasons Mr. Alastuey outlined.
Mr. Marvel asked Mr. Thorne, Budget Division, if The Executive Budget had been designed with AB317 in mind. Mr. Thorne stated no and as has been stated, no adjustment to the Distributive School Fund has been made to account for the loss of interest.
Mr. Ed King, Washoe County School District, stated opposition to AB317 in its current form. This would result in a $200,000 to $300,000 loss in revenue and he recommended some type of backfill to replace the loss or amend AB317.
Mr. Don Franken, Superintendent of Lincoln County School District, stated emphatic opposition to AB317 because the loss of revenue greatly impacts the education of children throughout the state.
Mr. Jim Costa, Assistant Superintendent for Churchill County School District, submitted testimony (see EXHIBIT G).
Chairman Arberry closed the hearing on AB317.
AB170Requires issuance of bonds to provide revenue for grants for preservation and promotion of cultural resources of state.
Mr. Marvel requested the committee consider the amendment to AB170 submitted by Mr. Lorne Malkiewich, Legislative Counsel (see EXHIBIT H).
Mr. Malkiewich explained the BDR (EXHIBIT H) is what the amended version of AB170 would look like. The amendments address the issues of how the money would be used and how the bonds would be issued. He indicated the sponsor of the bill has worked with the Budget Office and the incorporated amendments have been prepared. The proposed BDR is acceptable to the administration. He stated the BDR has also been reviewed by Bond Counsel and the letter included in EXHIBIT H addresses his review.
Mr. Malkiewich explained the summary and title now discusses preservation and protection of certain historical buildings. This addresses the committee's concern about using funds for program expenses. The carry-forward provision has been deleted. The administration objected to verbiage about payment within 90 days and the payment of expenses for issuance of bonds from the general funds. The administration suggested eliminating general fund liability of paying the expenses from contingency funds by paying from the proceeds of the bonds.
Mr. Malkiewich emphasized the two percent provision was included at the suggestion of Bond Counsel to provide a cap. The total financial assistance, $10 million for the first five years and $10 million for the second five years allows for transience of funds through the five-year period. He pointed out subsection six replaces the "within 90 days" statement and provides "this is a priority of the state of Nevada" and "issuance of bonds from this area will be given preference over the issuance of other bonds." This will allow in financially tight times, if any bonds are issued, that the cultural resource bonds will have priority.
Mr. Malkiewich elaborated the middle of page three, paragraph (b) of subsection 2, states "to pay the actual expenses of preserving and protecting historical buildings" addresses Ms. Giunchigliani's concern about using these funds for other than protecting the buildings. This statement limits the use of grant funds only. Section 7 was requested by the Budget Division per their testimony that no budget source was indicated. Mr. Malkiewich reiterated it is the Counsel's position, referring to the State's Security Laws, Chapter 349 and the Constitutional requirement that the Legislature levy a sufficient tax to pay the obligations of the state as they come due, this would be required to be done. He pointed out Section 7 is included as an informational provision.
Chairman Arberry closed the hearing on AB170.
AB377Makes supplemental appropriations to department of commerce for certain expenses.
Mr. Stevens stated AB377 is a bill from the administration for a supplemental appropriation of $665 to the Office of Protection and Advocacy and $33 to the Division of Financial Institutions. He stated these amounts are not included in The Executive Budget.
* * * * *
MRS. EVANS MOVED DO PASS ON AB377.
MR. MARVEL SECONDED THE MOTION.
THE MOTION CARRIED BY VOICE VOTE WITH MR. PRICE ABSTAINING FROM THE VOTE.
* * * * *
AB386Revises provisions of Senate Bill No. 97 of this session concerning management of solid waste.
Mr. Stevens explained AB386 is a trailer bill to SB97. He stated SB97 did not come to the Ways and Means Committee, but was passed on the floor due to a March 15, 1993 deadline. He noted two amendments were discussed in committee: on line 13 of page one the word "monthly" was recommended for deletion and on line 23 of page one after "money collected" the term "were required to be paid" was suggested to be added. Mr. Stevens pointed out Mr. Comeaux requested an additional temporary position until the new data processing rewrite is completed which would cost $32,000 in FY94 and approximately $16,176 in FY95. Mr. Stevens testified an associated general contractor had suggested an amendment which would increase the fee for tire from $1 to $2 with the additional $1 provided for utilizing recycled materials in highway construction projects.
Ms. Giunchigliani pointed out on page two, section 4 line 44 should read "1995."
Mr. Humke asked if the position created would be permanent or temporary. Mr. Stevens reiterated the position was requested by the department until the data processing rewrite was completed. The time period for employment would be July 1993 until December 1994.
Mr. Marvel emphasized, according to Mr. Comeaux, over $200,000 is not being collected and asked if this was a correct amount. Mr. Stevens stated he was not sure of the exact amount, but indicated there is some noncompliance with payment. Mr. Marvel asked if the new position could be paid from the collected funds. Mr. Stevens stated if the committee chooses to include the position the costs would come out of the tire fees, not from general funds.
Ms. Tiffany inquired if the position would be a programmer. Mr. Stevens indicated no, it was for a revenue officer/tax examiner. Ms. Tiffany asked what the funds would be used for in relation to solid waste. Ms. Jeanne Botts, Program Analyst, explained the $1 fee currently goes toward recycling programs, but due to stricter federal solid waste management requirements, the fee will be used to help monitor local governments to assure compliance with the strict federal laws.
Ms. Tiffany asked if the fee is needed. Mr. Stevens stated that question did not come to the Ways and Means Committee. It was discussed in Government Affairs in relation to SB97 and the financial considerations are included in AB386. Ms. Botts clarified Mr. Comeaux's request for a position is separate from the bill.
Mr. Marvel inquired if being in compliance will keep the current landfills open. Ms. Botts indicated stated yes, Mr. Dodgion has planned to keep the fills open while they are brought into federal compliance. Mr. Marvel explained without the state program in place, there was the fear the federal government could close down the facilities which would put the state in a drastic situation regarding solid waste.
Mrs. Williams emphasized AB386 does not raise the tire fee from $1 to $2. Chairman Arberry concurred.
Speaker Dini asked if any further discussion had occurred about developing a process to turn old tires into asphalt. Mr. Stevens stated an amendment had been brought forward by the Associated General Contractors to increase the fee by $1 for use on highway projects. Chairman Arberry explained even though the agency would like to make an amendment to the bill, the committee chooses not to compound the issue. He pointed out other issues should not be "piggybacked" onto other bills, and the Association can introduce legislation on their own rather than muddle current legislation. Chairman Arberry requested the committee not consider the amendments from AGC. He requested a motion to amend.
* * * * *
MS. GIUNCHIGLIANI MOVED TO AMEND AND DO PASS AB386 WITH AMENDMENTS ON LINE 13, PAGE ONE; LINE 23, PAGE ONE; LINE 45, PAGE TWO; AND WITH THE ADDITION OF A TEMPORARY POSITION FOR $32,081 FOR FY94 AND $16,716 FOR FY95.
MR. HELLER SECONDED THE MOTION.
Chairman Arberry asked if the position is going to be added and inquired if Mr. Comeaux had provided enough information to justify the position. Ms. Giunchigliani pointed out the position would only be temporary, paid from tire fees and would be phased out. Mr. Spitler stated there was a lack of justification from the Department of Taxation. Mr. Humke agreed with Mr. Spitler. He stated if the revenue collection functions were transferred from DEP to the Department of Taxation, by necessity they will need to collect more of the funds due to the state.
MR. HUMKE MOVED TO AMEND THE MOTION ON THE FLOOR TO DELETE THE INCLUSION OF THE NEW POSITION.
MS. GIUNCHIGLIANI AND MR. HELLER AGREED TO AMEND THE MOTION AND THE SECOND.
THE MOTION CARRIED UNANIMOUSLY BY VOICE VOTE.
* * * * *
BUDGET CLOSINGS
PRIVATE INVESTIGATORS LICENSING BOARD -- PAGE 42
Chairman Arberry asked for staff recommendations. Mr. Stevens indicated the adjusted budget changes the balance forward amount for FY95, deletes $63,262 from the Attorney General Reimbursement line in each year of the biennium and moves it to the Reserve category with the resulting reserve amount for FY95 of $101,993.
* * * * *
MR. MARVEL MOVED TO CLOSE THE PRIVATE INVESTIGATORS LICENSING BOARD BUDGET ACCOUNT AS RECOMMENDED BY STAFF.
MR. HUMKE SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY BY VOICE VOTE.
BUDGET CLOSED.
* * * * *
SUPPLEMENTAL FUND - INDIGENTS -- PAGE 201
* * * * *
MRS. EVANS MOVED TO CLOSE THE SUPPLEMENTAL FUND - INDIGENTS BUDGET ACCOUNT AS RECOMMENDED BY THE GOVERNOR.
MR. MARVEL SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY BY VOICE VOTE.
BUDGET CLOSED.
* * * * *
INDIGENT ACCIDENT ACCOUNT -- PAGE 203
* * * * *
MR. SPITLER MOVED TO CLOSE THE INDIGENT ACCIDENT BUDGET ACCOUNT AS RECOMMENDED BY THE GOVERNOR.
MR. HUMKE SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY BY VOICE VOTE.
BUDGET CLOSED.
* * * * *
COLORADO RIVER COMMISSION -- PAGE 1491
Mr. Stevens indicated there was no monetary adjustment, but there is an update on the narrative on the bottom of page 1492, Enhancement 710 is for consultant costs.
Speaker Dini commented a bill will be coming from the Senate which will affect all bills relating to the Colorado River Commission. Chairman Arberry stated the budgets will be closed today and, if necessary, reopened after the Senate bill is brought forward.
* * * * *
MR. MARVEL MOVED TO CLOSE THE COLORADO RIVER COMMISSION BUDGET ACCOUNT AS RECOMMENDED BY THE GOVERNOR.
MR. HELLER SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY BY VOICE VOTE.
BUDGET CLOSED.
* * * * *
CRC FEDERAL PUMPING AND TRANSMISSION FACILITIES -- PAGE 1497
* * * * *
MR. SPITLER MOVED TO CLOSE THE CRC FEDERAL PUMPING AND TRANSMISSION FACILITIES AS RECOMMENDED BY THE GOVERNOR.
MS. GIUNCHIGLIANI SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY BY VOICE VOTE.
BUDGET CLOSED.
CRC RESEARCH AND DEVELOPMENT -- PAGE 1499
Mr. Stevens stated the agency indicated $150,000 for each year of the biennium be added to the account with a corresponding increase in contract services on the expenditure side for expert consultants.
* * * * *
MR. DINI MOVED TO CLOSE THE CRC RESEARCH AND DEVELOPMENT BUDGET ACCOUNT AS RECOMMENDED BY STAFF.
MR. SPITLER SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY BY VOICE VOTE.
BUDGET CLOSED.
* * * * *
POWER MARKETING FUND -- PAGE 1501
* * * * *
MRS. EVANS MOVED TO CLOSE THE POWER MARKETING FUND BUDGET ACCOUNT AS RECOMMENDED BY THE GOVERNOR.
MR. SPITLER SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY BY VOICE VOTE.
BUDGET CLOSED.
* * * * *
FORT MOHAVE DEVELOPMENT FUND -- PAGE 1503
* * * * *
MRS. EVANS MOVED TO CLOSE THE FORT MOHAVE DEVELOPMENT FUND BUDGET ACCOUNT AS RECOMMENDED BY THE GOVERNOR.
MS. GIUNCHIGLIANI SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY BY VOICE VOTE.
BUDGET CLOSED.
* * * * *
ALFRED MERRITT SMITH WATER TREATMENT FACILITY -- PAGE 1505
* * * * *
MR. PERKINS MOVED TO CLOSE THE ALFRED MERRITT SMITH WATER TREATMENT FACILITY BUDGET ACCOUNT AS RECOMMENDED BY THE GOVERNOR.
MRS. WILLIAMS SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY BY VOICE VOTE.
BUDGET CLOSED.
* * * * *
CAREY ACT - STATE LANDS -- PAGE 1568
Mr. Stevens indicated as a result of committee discussions, he asked State Lands if a portion of its staff time could be charged to this account. State Lands replied a minimal portion of time is spent in this account. Mr. Stevens does not recommend charging any staff time to this account. He stated there is a recommended adjustment in the balance forward for FY95 of $8,140 and a corresponding change in balance forward. He pointed out there are other line item changes which are not seen by the committee in The Executive Budget and staff will address those changes with the Budget Office.
* * * * *
MR. SPITLER MOVED TO CLOSE THE CAREY ACT - STATE LANDS BUDGET ACCOUNT AS RECOMMENDED BY STAFF.
MR. HUMKE SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY BY VOICE VOTE.
BUDGET CLOSED.
* * * * *
NEVADA NATURAL HERITAGE -- PAGE 1629
Mr. Stevens explained the balance forward is off by $957 and three positions create a small amount of vacancy savings in FY95. He stated this is not a state-funded account. He recommended the balance forward be adjusted and the vacancy savings of $372 be eliminated.
* * * * *
MR. MARVEL MOVED TO CLOSE THE NEVADA NATURAL HERITAGE BUDGET ACCOUNT AS RECOMMENDED BY STAFF.
MR. SPITLER SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY BY VOICE VOTE.
BUDGET CLOSED.
* * * * *
PUBLIC EMPLOYEES RETIREMENT SYSTEM -- PAGE 1647
Mr. Stevens stated a revised budget sheet is included in each member's budget book and indicates there are a large number of modifications. He pointed out there is a reduction of $225,658 for FY94 from the original request and $283,145 for FY95. Almost all of the categories are modified downwards with the exception of the salary category.
Ms. Giunchigliani clarified the budget is based on the 18.22 percent rate for retirement contributions. She stated Mr. Keating will be introducing legislation to get a half of a percent "floater" which will impact this. Mr. Stevens explained this is based on the retirement rate as recommended in The Executive Budget and legislation is coming so the rate does not need to be adjusted every two years based on actuarial determination if it is not half a percent up or down. He emphasized this is the administrative side not the benefits side.
* * * * *
MR. HUMKE MOVED TO CLOSE THE PUBLIC EMPLOYEES RETIREMENT SYSTEM BUDGET ACCOUNT AS RECOMMENDED BY STAFF.
MS. GIUNCHIGLIANI SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY BY VOICE VOTE.
BUDGET CLOSED.
* * * * *
PUBLIC SERVICE COMMISSION -- PAGE 331
Vice Chairman Spitler stated he would not be voting on Public Service Commission (PSC) budget items because of his relationship with public utilities.
Mr. Stevens stated in the Investigative Fund budget on page 337 there is an item which Affects the PSC budget also. He explained Enhancement 700 "Offset Expenses in Budget 3920" is a recommendation for retaining citation revenue or fine/violation revenue of $97,000 per year which would offset expenses within the main PSC budget. He stated the amount was not taken into consideration when the PSC Regulatory Fund budget was constructed on page 331. He stated it is a staff recommendation that $97,000 of highway fund appropriation recommended for each year of the biennium on page 331 be reduced. Therefore, the $2.4 million in highway fund for FY94 and $2,393,276 in highway fund revenue for FY95 would be reduced by $97,000 and corresponding reductions be made in in-state travel, operating expenses, legal and court expenses and vehicle operations. He stated all reduced expenses would be paid out of the investigative fund account.
* * * * *
MR. MARVEL MOVED TO CLOSE THE PUBLIC SERVICE COMMISSION BUDGET ACCOUNT AS RECOMMENDED BY STAFF.
MR. HUMKE SECONDED THE MOTION.
Ms. Giunchigliani commented her notes indicated a reduction in the consultant fee costs of $60,000 and asked if Mr. Stevens had addressed it. Mr. Stevens indicated no. He elaborated the agency requested $20,000 in FY94 and $40,000 in FY95 for a lobbyist to monitor FERC (Federal Energy Regulatory Commission) activities. The question was if the Washington office could be utilized although the Agency preferred not to use that office. Ms. Giunchigliani indicated she would like to reduce the account by $60,000. Mr. Dini stated FERC is a very complicated board PSC must appear before in Washington. He explained because of the complexity of issues which go before the board he believed the Washington office could not be used. Ms. Giunchigliani expressed her preference to delete or reduce the amount.
Mr. Ghiggeri indicated when the Agency testified on the page of 334, E704 provides for a new position for FERC activities and in the budget under "Expert Consultant" there is funding for the new position. He stated the Washington office was contacted to determine if they could help with FERC activities and their written response stated they do not have the expertise necessary.
Mr. Humke stated the Washington office position is, by his own admission, a generalist, and the position requested necessitates a highly technical law firm to offer adequate assistance to PSC. He remarked this is a worthwhile expenditure.
THE MOTION CARRIED WITH MS. GIUNCHIGLIANI VOTING NO AND MR. SPITLER ABSTAINING.
BUDGET CLOSED.
* * * * *
INVESTIGATIVE FUND -- PAGE 337
* * * * *
MRS. WILLIAMS MOVED TO CLOSE THE INVESTIGATIVE FUND BUDGET ACCOUNT AS RECOMMENDED BY THE GOVERNOR.
MS. GIUNCHIGLIANI SECONDED THE MOTION.
THE MOTION CARRIED BY VOICE VOTE WITH MR. SPITLER ABSTAINING.
BUDGET CLOSED.
* * * * *
NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS -- PAGE 345
Mr. Stevens stated this account and a number of the remaining accounts are small accounts within the Department of Insurance. He stated with many of these there are some potential letters of intent which staff would like the committee to consider. He suggested staff bring the letters to the committee at a later date when letters of intent are addressed.
* * * * *
MR. HUMKE MOVED TO CLOSE THE NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS BUDGET ACCOUNT AS RECOMMENDED BY THE GOVERNOR.
MR. SPITLER SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY BY VOICE VOTE.
BUDGET CLOSED.
* * * * *
INSURANCE COST STABILIZATION -- PAGE 351
* * * * *
MR. MARVEL MOVED TO CLOSE THE INSURANCE COST STABILIZATION BUDGET ACCOUNT AS RECOMMENDED BY THE GOVERNOR.
MRS. EVANS SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY BY VOICE VOTE.
BUDGET CLOSED.
* * * * *
COMMISSION ON HOSPITAL PATIENTS -- PAGE 361
Mr. Stevens stated staff received additional information and recommends the assessment revenue be increased by $12,641 for FY94 and $12,557 for FY95 with corresponding adjustmentS to the reserve.
* * * * *
MR. MARVEL MOVED TO CLOSE THE COMMISSION ON HOSPITAL PATIENTS BUDGET ACCOUNT AS RECOMMENDED BY STAFF.
MR. SPITLER SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY BY VOICE VOTE.
BUDGET CLOSED.
* * * * *
INSURANCE EDUCATION AND RESEARCH -- PAGE 365
* * * * *
MR. SPITLER MOVED TO CLOSE THE INSURANCE EDUCATION AND RESEARCH BUDGET ACCOUNT AS RECOMMENDED BY THE GOVERNOR.
MR. HELLER SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY BY VOICE VOTE.
BUDGET CLOSED.
* * * * *
Mr. Stevens recommended INSURANCE REVOLVING FUND budget be held.
INSURANCE RECOVERY -- PAGE 370
* * * * *
MRS. EVANS MOVED TO CLOSE THE INSURANCE RECOVERY BUDGET ACCOUNT AS RECOMMENDED BY THE GOVERNOR.
MR. SPITLER SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY BY VOICE VOTE.
BUDGET CLOSED.
* * * * *
PREPAID FUNERAL AND CEMETERY -- PAGE 371
Mr. Stevens stated the Insurance Commission recommends this account be abolished because no expenditures are being run through this account. Mr. Stevens explained the examination fees which would be collected would be deposited to the Insurance Examiners Fund if the committee adopts the Commission's recommendation. He indicated a bill draft change would be needed to have the exam fees deposited to this account deposited into the Insurance Examiners Fund and other fees deposited to the state general fund, with adjustments to the main Insurance budget account made when it is closed.
Mr. Humke asked if it was the Agency's testimony that they will continue to regulate this industry. Mr. Stevens stated they indicated they would continue oversight.
* * * * *
MS. GIUNCHIGLIANI MOVED THE PREPAID FUNERAL AND CEMETERY BUDGET ACCOUNT BE CLOSED AS RECOMMENDED BY STAFF.
MRS. CHOWNING SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY BY VOICE VOTE.
BUDGET CLOSED.
* * * * *
Mr. Stevens commented the statutes would be changed in relation to where fees are to be deposited.
RURAL HOUSING -- PAGE 450
Mr. Stevens remarked the Agency, through oversight, had not budgeted for Board and Commission pay which would be approximately $1,500 for each year of the biennium. He noted the Agency had disagreed with payment for the Legislative Audit because they felt their annual audit was sufficient. Mr. Stevens emphasized the Legislative Auditor indicated the Agency should be included in the audit cycle. The Agency director's salary is recommended to be taken out, but all salary issues will be addressed later in the session. The staff recommendation is to include the $1,500 per year of the biennium not previously budgeted.
Mr. Dini asked if there is a bill to remove this agency from The Executive Budget and have it stand alone like the Washoe and Clark Counties' Housing Authorities. Mr. Marvel indicated there was but it has not yet been received.
* * * * *
MR. SPITLER MOVED TO CLOSE THE RURAL HOUSING BUDGET ACCOUNT AS RECOMMENDED BY STAFF.
MR. HELLER SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY BY VOICE VOTE.
BUDGET CLOSED.
* * * * *
Chairman Arberry adjourned the hearing at 10:18 a.m.
RESPECTFULLY SUBMITTED:
_________________________
Kerin E. Putnam
Committee Secretary
??
Assembly Committee on Ways and Means
April 13, 1993
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