MINUTES OF THE
ASSEMBLY COMMITTEE ON WAYS AND MEANS
Sixty-seventh Session
April 22, 1993
The Assembly Committee on Ways and Means was called to order by Chairman Morse Arberry, Jr., at 10:11 a.m., on Thursday, April 22, 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
SENATE BILL 329 - Makes supplemental appropriation to state distributive school account.
Ms. Judy Matteucci, Budget Director, explained SB 329 was a proposal to complete budget cuts proposed by the Governor during the interim. SB 329 proposed a supplemental appropriation in the amount of $51,035,894 be made to the Distributive School Account and the basic support guarantee to each school district be reduced in order to return approximately $18.1 million to the General Fund. She distributed copies of an information packet explaining how the supplemental appropriation and the reversion would fit into the Executive Budget (Exhibit C).
Ms. Matteucci stated the breakdown of estimated budget reductions totalling $116.2 million appeared on the second page of Exhibit C. She noted the Executive Budget was predicated on $18.1 million being returned to the General Fund from the Distributive School Account for fiscal years 1991-92 and 1992-93. The third and fourth pages of Exhibit C included a breakdown of budget reductions in each agency account and the Distributive School Account. She pointed out the reduction to the Distributive School Account was relatively minor in comparison to the percentage reductions made in all other budget areas. The Distributive School Account was reduced 2 percent ($3.2 million) in fiscal year 1991-92 and 5 percent ($14.8 million) in fiscal year 1992-93. The last page of Exhibit C was a copy of the Distributive School Account as currently constructed within the Executive Budget. She noted projected sales tax revenue had failed to materialize as a result of the recession, resulting in a net shortfall of $51,035,894, which was constitutionally and statutorily required to be balanced from the General Fund in order to make the school districts whole.
Ms. Giunchigliani stated she was a public school teacher on an unpaid leave of absence. She explained this legislation did not represent a professional conflict of interest and she would be voting on it.
Ms. Giunchigliani inquired about the basic support reduction. Ms. Matteucci explained the 1991 Legislature approved a basic support guarantee of $3,312 for fiscal year 1992-93. In order for the state to recover the $18 million of voluntary savings, the basic support guarantee had to be reduced by the amount of the last quarterly payment so the excess would revert to the General Fund.
Ms. Giunchigliani questioned why the $18 million reduction was not added to the $51 million supplemental appropriation. Ms. Matteucci replied that was essentially what was done in the Executive Budget. She explained SB 329 proposed revising the Executive Budget to reduce the fiscal year 1992-93 basic support guarantee from $3,312 to $3,231, which would reduce the total budget shortfall by $18 million. In fiscal years 1993-94 and 1994-95 the basic support guarantee would be increased back to $3,312. She noted budget cuts were not being reinstated in any other agency budgets.
Ms. Giunchigliani noted regardless of the action taken on SB 329, there were still two issues to be addressed. First, growth was still occurring in school districts and maintaining the status quo on basic support would not properly fund education. Second, the school districts had been forced to cut programs in order to return the $18 million to the General Fund. At some point the Legislature would need to find the courage to deal with the secondary issue of attempting to make the school districts whole, regardless of the basic support dollar. She expressed frustration at the budget being balanced at the expense of the school children of Nevada. She stated the Legislature as well as others must be held accountable for this situation.
Mr. Dini questioned whether the $18 million would make the Executive Budget solvent on July 1, 1993. Ms. Matteucci responded the $18 million was necessary to meet the projected ending fund balance in the Executive Budget to comply with the requirements of the Nevada Revised Statutes and maintain bond ratings.
Chairman Arberry called for public testimony in support of or opposition to SB 329.
Ms. Sherry Loncar of the Nevada State PTA said the Nevada PTA supported the supplemental appropriation to the school districts and requested passage of that portion of SB 329. She added the Nevada PTA had long been on record in support of adequate funding for education, however, and viewed the proposed reduction of basic support funding as being in direct conflict with that stance.
Mr. John Cummings, Executive Director, Nevada State Education Association (NSEA), stated NSEA neither supported nor opposed SB 329. He said the bill would probably have to be sacrificed because the state had not created a stable source of funding for education. He expressed the hope the Legislature would somehow be able to deliver the lost $18 million back to education.
Mr. Marvel asked if the $18 million represented a 5 percent reduction. Mr. Cummings said that was his understanding. Ms. Matteucci explained the $18 million represented a 5 percent reduction of the General Fund. Total state responsibility was reduced approximately 1.2 percent.
MR. DINI MOVED DO PASS.
MR. HUMKE SECONDED THE MOTION.
THE MOTION CARRIED. MS. GIUNCHIGLIANI WAS OPPOSED.
There being no further business, the meeting was adjourned at 10:27 a.m.
RESPECTFULLY SUBMITTED:
_________________________
C. Dale Gray
Committee Secretary
??
Assembly Committee on Ways and Means
April 22, 1993
Page 1