MINUTES OF THE
ASSEMBLY COMMITTEE ON WAYS AND MEANS
Sixty-seventh Session
May 3, 1993
The Assembly Committee on Ways and Means was called to order by Chairman Morse Arberry, Jr., at 7:36 a.m., on Monday, May 3, 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
Jeanne Botts, Program Analyst
AB288Provides for distribution of money used for programs of occupational education and requires establishment of certain pilot programs for occupational education.
Assemblyman Jan Evans testified today marks another step along a continuum that integrates occupational and career education into the secondary school curriculum. She indicated the legislature emphasizes again that occupational education bears little resemblance to what most of us remember in the early days of the vocational track. She explained occupational education is clearly not shop--nor is it an alternative curricular path for those with little interest in academics and post-secondary education. Rather, in the fullest sense, occupational education is applied academics.
Mrs. Evans elaborated, beginning in middle school, young adolescents are immersed in a highly creative and effective program that focuses on active learning such as learning in math, science and communication and leading to more job specific skills. Occupational Education helps young people learn about themselves, their interests and abilities. It provides a number of opportunities for them to: develop positive attitudes toward work and the work ethic; to improve interpersonal and employability skills; to learn citizenship skills, problem solving and decision making, and critical thinking; and computer literacy and knowledge of technological systems.
Mrs. Evans pointed out, in other words, it prepares students for their life ahead. Today, far too many youngsters are not looking ahead or thinking about their future and often, school seems remote from "the real world." She reiterated when education loses its relevance the drop-out numbers soar. She postulated try to find a decent job when you have nothing to offer! Employers are spending vast sums teaching, training and retraining workers who lack competency in basic skills. She stated occupational education is a way to turn that around.
Mrs. Evans testified, along with testimony on AB288, the committee will also receive an update and a progress report on AB103 of the Sixty-sixth session. She noted she felt it important to give the legislature some feedback on the results of occupational education programs approved and the dollars appropriated two years ago. She remarked Mr. Rheault and Superintendent Paslov will provide a report and take the committee through AB288 which represents the next step toward full implementation of occupational and career education.
Dr. Eugene Paslov, Superintendent of Public Instruction, Department of Education, stated in recent years, Nevada has taken an educational leadership role in several areas: dropout prevention, reducing substance abuse among children, educational research, improving student proficiency examinations performance, and increasing student learning standards and expectations, to mention a few. He indicated one of the Department of Education's major leadership initiatives has been to reform and to restructure occupational education in Nevada schools. With the help of the Legislators, especially Assemblyman Jan Evans, substantial progress has been made, but much more remains to be done.
Dr. Paslov indicated the occupational education programs identified for funding in AB288 take the next step in developing and preparing Nevada's students for a future characterized, if not dominated, by technology. This is a future which demands Nevada provide now for the essential academic and technological needs of students. He emphasized if Nevada does not provide for the needs now, the state jeopardizes the children's future both in the schools and in the workplace.
Dr. Paslov indicated with the programs funded during the 1991 legislative session, e.g., Introduction to Technology programs and the Career and Occupational Guidance and Counseling Program, students in Nevada are much better off today than they were two years ago, but much more still needs to be accomplished.
Dr. Paslov cited the two reports Mr. Rheault has provided (see EXHIBITS C, D, E, and F) which identify the activities and results of the funding provided by AB103 of the Sixty-sixth session for the Introduction to Technology and Career and Occupational Guidance and Counseling Programs. He testified, in both cases, the department fully accomplished the restructuring efforts intended with AB103 of the Sixty-sixth session funds. The Department's expectation is the funds and activities proposed in AB288 will be given the same attention to success by the Department. He introduced Dr. Keith Rheault, Director of Occupational and Continuing Education, who highlighted the past accomplishments and provided the committee with an explanation of the specific activities requested in AB288.
Dr. Rheault testified AB103 of the Sixty-sixth session provided funding for two occupational programs: Introduction to Technology and Career and Occupational Guidance and Counseling. Both have been successful because they involved the coordinated efforts of hundreds of individuals interested in the improvement of occupational education in Nevada. He explained the Introduction to Technology program which is offered at the 7th and 8th grade level is a great example of the coordination required to implement the program. The Legislature provided the funding for equipment and instructional supplies for the program totaling $1,666,110, and business and industry representatives, the State Board of Education, the Department of Education, the Occupational Education Branch and local school district administrators and teachers provided the technical assistance needed to successfully implement the program. He emphasized with the coordinated efforts, over 12,000 students in the fall of 1992 were enrolled and were provided exposure to broad transferable skills in the areas of electronics, laser, robotics, hydroponics and desk top publishing. Additionally, by using the AB103 of the Sixty-sixth session funds as a match, the Department of Education in conjunction with the Clark County School District was able to secure a $50,000 teacher training grant from the U.S. Department of Energy to be used solely for in-service training of Nevada's Technology teachers in the Introduction to Technology classes.
He highlighted AB103 of the Sixty-sixth session provided $100,000 in support of equipment for the Career Information System (CIS) as part of the Career and Occupational Guidance and Counseling program. As of last December, all school sites receiving funds for the Career and Occupational Guidance program had purchased or were in the process of purchasing the computer equipment used with the CIS. Individual sites and four statewide CIS workshops were provided last fall by State Occupational Information Coordinating Committee and Occupational Branch personnel. The State Board of Education also established a course of study, grades 7-12, in Career and Occupational Guidance and Counseling. Although AB103 of the Sixty-sixth session funds supported the implementation of the CIS at 50 sites, it is currently available at 70 high school and 49 junior high schools.
Dr. Rheault cited the interim reports (see EXHIBITS C and D) provided to the committee members for the AB103 of the Sixty-sixth session funded programs address how the funds were used by each local school district and the accomplishments of the program. He reiterated the programs funded through AB103 provide a great foundation in Nevada upon which to continue the restructuring efforts being requested by AB288. He pointed out the request to totally fund the programs outlined in AB103 of the Sixty-sixth session equalled $7,656,000 over the biennium. The funds requested in AB288 have been reduced significantly from that figure. However, the proposed programs do not alter from the restructuring plan outlined in 1990, AB288 only reduces the scale and speed at which the programs will be implemented.
Dr. Rheault enumerated the three specific purposes for which funds are being requested in AB288. He stated they include funds for the improvement of occupational education based upon the state course of study's general requirements for occupational education programs of instruction. AB288 seeks $501,000 per fiscal year to be distributed with a base amount of $12,500 going to each school district having secondary occupational programs with about $300,000 of the request being distributed in proportion to the number of occupational students within the district. He indicated the funds would be used for improvement in curriculum and could be used to provide opportunities for occupational students to participate in their affiliated youth organization activities, providing access to the appropriate, safe and modern equipment, and to provide teacher inservice training.
Dr. Rheault pointed out another area where funds are being requested is to support pilot programs in one or more of the following areas: articulate technology programs at the 9th/10th grades; internship training programs at the 11th/12th grades; or enhancement of tech prep programs at the 11th/12th grades. He noted AB288 seeks $400,000 per fiscal year for at least five pilot programs. The third main area funds will be used for is the support of 15 homes and career skills programs at the middle or junior high schools not currently offering the course of study. A one-shot appropriation of $225,000 would be used to support the purchase of equipment, instruction materials and teacher training for the program which is a 7th and 8th grade level program teaching students personal, social and career development applied to the home, school community and workplace.
Dr. Rheault concluded by asking "Why should the legislature approve state funds for these programs when the Department of Education already receives a sizeable amount of federal funds for occupational education?" He explained since July 1, 1991 under the amended Carl Perkins Vocational Education Act, federal basic grant funds can only be used to support programs at a limited number of sites or limited number of programs which service the highest concentration of special population students. This means federal funds in Clark County only support programs at 10 of the 20 high schools in the district. Washoe County's federal funds support programs at only one of the nine high schools. He emphasized only nine of the state's 17 school districts with secondary programs are receiving the federal funds, and finally, under the old Act, 45 percent of the federal funds were designated for program improvement efforts such as those being requested in AB288. He stated under the amended Act only 8.5 percent of the funds are provided for state leadership activities while the rest goes directly to districts for special programs. What is then happening is students at the high schools which qualify for federal funds are being served well, but approximately 65 percent of the high schools in the state do not have access to funds which support occupational program restructuring or improvement.
Ms. Giunchigliani noted in regard to the report on AB103 of the Sixty-sixth session (see EXHIBIT C), there are about seven schools which have "none" recorded and wondered if this means half would not even be in the 1993 year. Dr. Rheault stated the "none" means some of these schools did not have any implementation of the program because the facilities were remodeled. However, some teachers are ready, and all programs are expected to have at least one lab per site operational by September 1, 1993. Ms. Giunchigliani commented this was a typical example of an unfunded mandate by the Legislature.
Ms. Giunchigliani asked how the school districts found the funding for the older schools. Dr. Rheault replied a small U.S. Department of Energy grant was utilized for equipment at selected sites in Clark County, some equipment was obtained through cooperation with local businesses, and the school district put up a large amount of funds for remodeling. Ms. Giunchigliani commented a number of teachers came in on their own time, without pay, and remodeled their classrooms also. She noted, as a result of the lack of funding, a piecemeal approach has resulted. She requested clarification on AB288 in order to assure there would be no conflict or duplication with a bill she is drafting for apprenticeship programs.
Ms. Giunchigliani asked how many districts have integrated curriculum. Mr. Rheault indicated the department is making good progress in this area. There is applied academics and occupational specific program being modified so more academics are included, but the total picture is still missing. He emphasized over the next two to three years through the technology preparation program and utilizing the current coordinators in conjunction with the federal funding, more integrated programs should result. Ms. Giunchigliani inquired about how many districts are permitting the applied programs to count for graduation. Dr. Rheault replied about seven or eight school districts have at least one or more courses which receive academic credit for occupational education.
Ms. Giunchigliani wondered if a different type of diploma has been pursued. She remarked the state has geared the courses to the minority of students who will continue on to college rather than the majority of children who will be going into the workplace. She asked if there is any intent by the State Board of Education to begin to review how students are qualified to graduate and what the requirements for graduation are. Dr. Paslov replied the Board has not addressed the issue of differentiated diplomas. He noted there are pros and cons with the concept. The State Board is in favor of moving away from the Carnegie Unit designation of graduation credits and would eventually like to see competency-based graduation requirements which move away from "counting seat time." He stated this is just at the discussion stages and the Board has not taken any action on it. He emphasized AB288 becomes a motivation to establish competency-based concepts for academic and other areas and move away from the Carnegie Units. This is very progressive.
Ms. Giunchigliani questioned if there is an alternative budget with full funding of the mandates. Dr. Paslov indicated preliminary discussions on what is now AB288 have gone on for a year, and the funding request has been reduced to the current level. If the request or some portion of it is not funded, the Department does not have an alternative plan other than to make do with what is currently available. Ms. Giunchigliani pointed out $7 million was necessary to fund the unfunded mandate put into place by the Legislature. It has been whittled down to $1.4 million, but $7 million is the actual amount needed to put the full program in place. Dr. Paslov concurred and stated the amount was based on extensive analysis and development of the Nevada Business Plan.
Ms. Giunchigliani remarked this is a perfect opportunity to have a public/private partnership to help youth not drop out of school as a result of being bored with book learning, but also to bring in skills needed by the local businesses. Yet, she stressed, the state is not willing to invest in it. She reiterated the state is creating more unequal education as it goes along, because the legislature mandates things and does not provide funding to put them into place properly. It then takes five to ten years and the state continually creates inequity which is irresponsible. Dr. Paslov stated Ms. Giunchigliani voiced the Department's argument quite eloquently.
Mrs. Evans concurred with Dr. Paslov on Ms. Giunchigliani's eloquence. Mrs Evans stated there had been considerable debate on what the next step should be, especially in light of how tight money is this session. She remarked it is such an important program which is not included in The Executive Budget, but needs to be funded even if only in increments. This will at least keep the momentum going toward the fully-mandated goal.
Mr. Fred Boyd commented he is the one representative speaking for all the businesses which testified before the subcommittee. This is in order to narrow down the information and save time for the full committee. He stated he is a member of the Board of Trustees for the Economic Development Authority of Western Nevada and on the board of Directors for the Reno/Sparks Chamber of Commerce. He remarked he comes from a corporate career in management with over 4,000 employees and is currently a small-business owner in the Reno area. He testified a significant percent of the state's high school students do not graduate from high school. A large portion of Nevada's high school graduates do not continue on to college for a variety of reasons. If they do go to college, a number do not finish. He postulated are there employment opportunities for the non-college students but the jobs are basic, lower-paying jobs. The other option is with the technical, practical training and employability skills offered by AB103 of the Sixty-sixth session, and with AB288, as well as the entire Nevada Business Plan for Education, higher paying jobs can be secured.
Mr. Boyd remarked when Mark Twain was asked the reason for his success, he replied, "I was born excited." Mr. Boyd pointed out today in a few classes in Nevada students are excited. They are working with their hands and their minds. They are experiencing practical approaches to learning and to life. Technically oriented, applied education is not the workshop or making Mother's Day gifts from clay. Home and Career Skills is far more than Home Economics. Decision-making, problem solving, management and leadership applicable to daily life, personal development and career planning is learned. Economic Development Authorities throughout Nevada are targeting their efforts and pursuing companies which offer diversity and particular jobs. He stated some will require degrees, but many will not. Those jobs which will not require degrees will require employable skills. He indicated the state can continue to tell most students they will not succeed in life unless they go to college and continue to put the vast majority of educational money into college preparatory or into the colleges themselves, but, he reiterated, most jobs in the future will not be filled by today's standard high school graduates or college graduates. Mr. Boyd emphasized the future jobs will be filled by those individuals with technical training. He commented somehow the critical parties must do some soul searching in order to best prepare for the years ahead.
Mr. Boyd hypothesized the state is currently following the old 80/20 rule: spending 80 percent on the 20 percent instead of spending 80 percent on the 80 percent. He wondered why so many students drop out from high school and are unprepared for meaningful employment. Unlike Mark Twain, these students have not gotten excited. They have not been turned on by the educational system and are in the wrong groove. Practical, applied common sense assistance is necessary, in conjunction with guidance counseling, to prepare for work and life. He emphasized once a larger portion of students are on the right track, they will be excited to take additional courses beyond high school in the college or community college environment. They will want to learn.
Mr. Boyd reiterated the state has made a very small step with the AB103 of the Sixty-sixth session and the state needs to take several steps with AB288. He stressed the state and business collaborators need to look closely at shifting a small amount of total dollars to deal with the majority of young people who need the practical training. If no dollars are funded, then Mr. Boyd indicated he and a number of other business people in the Reno area are prepared to pursue other means to make this program happen. He reiterated the concept is so practical, it needs to be addressed head-on and not hidden anymore.
Ms. Janet Sayre, Program Coordinator for Occupational Education for the Washoe County School District, testified Mr. Denis Graham could not attend and submitted his testimony for the committee (see EXHIBIT G). She stated she would highlight some of what the proposed funds would improve in Washoe County. She reiterated only one of nine high schools in Washoe County will receive federal funds. She noted Washoe County has a joint occupational council consisting of people from local business and industry who advise on the direction of occupational education. The Council has recommended the District implement a Health Occupations Program and Entrepreneurial Training in conjunction with the Occupational Training classes. However, the District lacks sufficient funds to begin these programs.
Ms. Sayre explained another example of programs which AB288 would provide in relation to applied academics includes an applied physics course at three high schools entitled, Principles of Technology. There is great interest on the part of students for this program, yet there is a lack of funds to establish it in all high schools and to train the teachers. She testified AB288 would allow an increase in the number of occupational students which compete in youth groups and state competitions. She remarked there were 49 students who won state-level awards and 30 were eligible to participate in national competitions. Funds to send these students to the national competition sites are hard to come by and AB288 will be facilitate sending these students and, thereby, getting the students excited about learning and participating.
Ms. Sayre stated she serves as Executive Director for the Nevada Vocational Association (NVA) which is a statewide organization for vocational teachers and administrators in secondary and post secondary education. She testified NVA members support AB288. She submitted a copy of a USA Today pullout section (see EXHIBIT H) published on January 27, 1993 which discusses occupational education throughout the country. (Original is on file for five years at the Legislative Counsel Bureau Fiscal Division.)
Ms. Sayre explained, as a whole, occupational educators are trying to provide the quality education Nevada's youth are entitled to. NVA believes all students should leave the educational system with the ability to be productive, responsible citizens who will participate in lifelong learning. The students will need marketable job skills and the ability to manage home and career responsibilities. She emphasized occupational teachers should be accountable to the students and to business and industry. To do this, however, requires funding, and the teachers realize the status of Nevada's economy may prevent the state from reaching the goals during the next two years. She testified NVA can only appeal to the committee's sense of dedication to the people of Nevada. She remarked the time has come for occupational education to take its rightful place in the educational system. Collectively, the state, teachers, and business community can resolve the funding issue and provide the skills the students will need as Nevada enters the year 2000.
Mr. Erik Beyer testified he is representing the private sector on the State Council on Vocational Education where he serves as President and is also the President of the National Association of State Councils for Vocational Education. He remarked the Council is required to complete an annual report on the status of vocational education in Nevada. He explained the 1992 report indicates less than 40 percent of the demands of the employers of Nevada are met by current vocational and job training programs. Therefore, 60 percent or more employees are imported from out of state. He emphasized the state is not meeting the demands of the employers in this area. Several states over the last few years have tracked the income or earning power of vocational education graduates and the statistics show, in less than three and a half years, these students will pay back the state's investment in their education through increased earning power which translates into taxes for the state. Taxes include property and sales taxes.
Mr. Beyer stated records indicate over 80 percent of the high school graduates never require college degrees in their occupations. These students are eventually employed as plumbers, electricians, carpenters, truck drivers, mechanics, and computer operators, yet the state spends a vast majority of the educational dollars for college preparatory students. He emphasized the dropout level will be significantly reduced if the state can motivate these young people to get into a vocation early on. He stated the Vocational High School in Las Vegas is a fine example of how the students, who would typically be dropouts in the regular curriculum, are motivated to do hands-on academics. These students are doing algebra, geometry, and physical science by practical application in their electronics repair, drafting and cosmetology classes. This is applied academics which motivate students to be successful. He emphasized the state cannot afford to let the resource of children go by the wayside.
Mr. Beyer suggested, in light of the fiscal restraints of the state, an alternative for funding could be bonds for education. In 15 of the 17 bonds presented over the past decade to the voters, the funds were for general funds for county and city governments and they failed. The other two bond requests were for education specifically and they passed. He point out most bond issues which are for specific purposes are successful. He recommended a bond issue for occupational education. It would not fund teachers or ongoing costs, but it could pay for equipment and classroom renovation or other one-shot items. He reiterated bond issues do work, and encouraged the committee to support whatever means necessary to fund this worthwhile program.
Ms. Giunchigliani commented the bonding issue was intriguing and something similar was tried with the corporate tax for education, but it did not go through. She reiterated education is a constitutional issue which is an obligation of the state to fund. She pointed out the state does not fund education up front and always attempts to find a different route to pay for the costs. At some point, the legislature has an obligation to say the tax structure is inappropriate, is too low for the allocations and this is the reason the state is in the current fiscal restraints. She stated, constitutionally, at the local level the state can only bond for construction. Mr. Beyer concurred funding has been put off too long for occupational education.
Chairman Arberry closed the hearing on AB288.
AB322Provides for certain state services in Laughlin.
Assemblywoman Gene Segerblom, District 22, stated she was in favor of AB288.
Mrs. Segerblom explained Laughlin is 90 miles south of the Clark county seat in Las Vegas; therefore, many of the state services are not continuously provided nor easily accessible in Laughlin. She emphasized Laughlin is quite important to the state's economy. Research has indicated Laughlin, in the calendar year 1992, paid in $32 million in gaming taxes and $3,400,000 in room taxes. She pointed out, for those revenues, Laughlin deserves some consideration for services.
Mrs. Segerblom discussed the handouts she provided to the committee (see EXHIBITS I, J, and K). EXHIBIT I is an article entitled "When Will Nevada Give Laughlin Its Due?" EXHIBIT J is a letter from the Laughlin County Advisory Board in support of AB322. EXHIBIT K is a letter from Ray Sparks Chief of Registration, Department of Motor Vehicles, which indicates funds are currently being collected by the state.
Ms. Donna Varin, Chief of the Driver's License Division, introduced herself to answer any questions the committee may have regarding AB322.
Chairman Arberry asked if the amended fiscal note had been processed through the Department of Administration for review. Ms. Varin indicated, to her knowledge, it had. Chairman Arberry asked if the Budget Division had agreed to the amendment. Ms. Varin stated the amendment had been provided to Mr. Kevin Welsh on April 13, 1992. Chairman Arberry indicated Mr. Welsh was with the LCB Fiscal Division, not the Department of Administration's Budget Division. Ms. Varin reiterated, as far as she was aware, the Budget Division has reviewed and agreed with the amended fiscal note. Chairman Arberry asked if the roughly $1 million was the total amount to open and operate the office. Ms. Varin clarified the $1 million are the revenues which are generated by revenues collected from residents of the Laughlin area, and the amended fiscal note estimates costs as $189,564 for FY94 and $121,869 for FY95.
Mrs. Williams stated there is a tri-state agreement for the provision of some services in the Laughlin area and the state has currently appropriated some funds to provide services in the area. She asked if Ms. Varin had any information concerning the amount of funding from California and Arizona for services, especially since a large portion, if not the majority, of the people are from either state.
Ms. Myla Florence, Welfare Division, stated in order for services to be provided by Welfare, the recipients must be Nevada residents. She pointed out some of the Child Welfare issues may be an area where California or Arizona residents may be receiving services from Nevada workers. Mrs. Williams explained in the areas of Rehabilitation and Mental Health there is a signed agreement with the three states and she requested more information be provided on what those states' participation is in all areas.
Ms. Giunchigliani requested the actual projected costs for the biennium. Ms. Varin replied $189,564 for FY94 and $121,869 for FY95. Ms. Giunchigliani asked if this funding was personnel, operating, in-state travel, equipment, data processing and remodeling costs for the Registration Division and wondered if building rent was included also. Ms. Varin indicated these costs were for driver's license issuance and rent would need to be paid for space in Laughlin. Ms. Giunchigliani indicated in the rural areas in the past, other state agency offices had been utilized for these purposes. She inquired if this option had been discussed. Ms. Varin responded no space was found to be available for the registration activities and indicated the agency anticipated difficulty in locating space to rent. Ms. Giunchigliani recommended piggy backing onto other agency space in order to save money.
Mr. Bruce Glover, Assistant Chief of Driver's License, stated the division is currently visiting Laughlin twice each month and is currently utilizing a school cafeteria as a result of lack of space to rent. He noted this works now, but for an ongoing program, it would not be usable for a permanent office. Ms. Giunchigliani commented the office was going from two times per month to a full-time office. Mr. Glover indicated if AB322 passes, the office would have a full-time person in Laughlin. Ms. Giunchigliani emphasized this jumps from one extreme to another and wondered why some middle ground was not found.
Mr. Glover clarified the DMV office is utilizing four staff members to go out twice per month to Laughlin which incorporates non-productive travel, set up, and tear down time. He stated the activity in Laughlin is similar to Pahrump's and Yerington's activity where one full-time, permanent staff person is in place.
Ms. Giunchigliani noted the majority of people in Laughlin are transient and asked how many were being licensed and if they were mainly new hires at local businesses. Mr. Glover stated in FY92, 1,400 people were licensed in Laughlin alone. Some were transient, but there is no accurate way to track the applicants' status. Ms. Giunchigliani asked if most applicants were new hires, could a surcharge be levied on the businesses for services provided. Mr. Glover indicated the division had contacted the large casinos in Laughlin and Clark County, but they did not want to participate. Ms. Giunchigliani asserted perhaps if the casinos want the service they should pay for it on a per head for administrative costs because of the impact of new, out-of-state hirings.
Mrs. Segerblom emphasized Mr. Glover was only discussing driver's licenses, not license plates. She noted all the offices would be combined together to utilize the same staff. Ms. Giunchigliani emphasized the need to have a public/private cooperation to provide services.
Ms. Florence discussed the Welfare Division's proposed amendments to AB322 which would establish an itinerant office rather than full-time, full-range services. She pointed out the Laughlin caseload does not warrant a full-time office. The current statistics indicate 38 households are on ADC, 14 are on CHAP (Child Health Assurance Program), 121 food stamp cases, 31 Medicaid/SSI cases and three Qualified Medicare Beneficiaries (QMB). This constitutes almost 200 cases with about 40 applications received each month. She pointed out, in comparison, Pahrump has over 700 cases ongoing and the state only provides itinerant runs to the area.
Ms. Florence remarked the fiscal note for the Welfare Division is based on a full-time office rather than an itinerant office, and the division did not believe there would be a large enough fiscal impact with itinerant services to warrant a fiscal note. She emphasized travel and personnel costs included in The Executive Budget would cover the anticipated service needs.
Mrs. Segerblom pointed out if a permanent office was established, the Welfare Division would also be able to utilize the space as needed.
Mr. Dini commented the most important aspect of AB322 is the capacity to issue driver's licenses with the possibility of doing auto registration also. The current operations in the rural areas are quite efficient and effective for local citizens and the division.
Ms. Varin concurred auto registration could be provided in conjunction with the driver's license staff and the fiscal note addresses it. Mr. Dini asked if there are savings to the state if there is an office rather than having services provided through the county assessor's office. Ms. Varin stated there is no county assessor's office in Laughlin to provide the services, and therefore no savings would be gained.
Mrs. Williams requested the driver's license division check, but she believed there was an office currently being used in Laughlin by Social Services people for the itinerant services. Ms. Florence indicated the space was in the Clark County Social Services offices and with the expanded space the space could possibly be used. Mrs. Williams reiterated a compromise could be established to provide collaboration of services. Ms. Florence noted the space would serve the itinerant needs of the Welfare Division, but pointed out Driver's License Division has a different problem.
Mrs. Williams asked if this was an important need for the Driver's License Division, why was it not included in The Executive Budget request. Mr. Glover replied the division was present to provide information and indicated the division could continue to provide services as they currently are doing in Laughlin. He noted the division would be able to provide better services if a full-time office was opened.
Chairman Arberry asked why the funding was not included in The Executive Budget. Mr. Glover stated when the budget was put together, the division did not see a need for the full-service office based on driver's license processing alone. Chairman Arberry asked if the division believes it is necessary now. Mr. Glover replied better services could be provided. Mrs. Segerblom interjected the division did not know the services were needed until she came to the Legislature and proposed the bill. She emphasized she had not known the budgeting process and had told her constituents she would put forth legislation to provide services.
Mr. Humke asked who is responsible for Child Abuse and Neglect Services in Clark County. Ms. Florence replied Clark County Juvenile Court is responsible.
Mrs. Chowning asked if the out-of-state workers would be more apt to register their vehicles if the services were provided in Laughlin rather than forcing the applicants to drive 90 miles, one way, to register. She wondered how much money was lost because this population did not register their vehicles. Ms. Varin responded it would provide an incentive, but no figures are available on actual compliance or revenue generation.
Ms. Tiffany inquired how much more is involved to provide registration services with the issuance of drivers license. Mr. Glover indicated there are constraints between personnel and demand. Literally, the staff would not be able to handle all the demands for auto registration with the four driver's license personnel. Ms. Varin emphasized the services are currently provided manually, not online because of the space restrictions, and this is quite time consuming. Ms. Tiffany questioned what the minimum requirements would be to provide both services. Ms. Varin replied the original fiscal note was for two full-time staff members which could be cross-utilized.
Ms. Tiffany concluded the only way, at this time, would be to establish a full-time office with full-time staff. Ms. Varin stated yes and the division was investigating travel information as an alternative, but did not include it in AB322.
Ms. Giunchigliani suggested cross-training staff and utilizing laptops to provide both access and efficiency because it is all one department. She requested the DMV subcommittee look at the proposal, staffing patterns and equipment needs. She encouraged the state to be progressive and have vision in solving the problem.
Ms. Jan Capoldi stated the amended fiscal note was sent to Janet Johnson at the Budget Division on April 13, 1993.
Chairman Arberry closed the hearing on AB322.
BUDGET CLOSINGS
EDUCATION STATE PROGRAMS -- PAGE 637
ELEMENTARY/SECONDARY (K-12) SUBCOMMITTEE
Speaker Dini stated the K-12 Education Subcommittee is presenting 23 of the Department of Education's budget accounts for approval by the full committee today. The remaining three budget accounts, the Distributive School Account, the Trust Fund for Class-size Reduction and the School Improvement Account, will be closed at a later date. Speaker Dini explained in view of the subcommittee's recommendation to leave the Department of Education as a "stand alone" department, rather than consolidate it with the Department of Human Resources, four budget accounts that had been recommended to transfer to other divisions have been brought back into the Department of Education and have been assessed indirect costs for the support of the Department's central support budget, Education Support Services (B/A #2720). Budgets dealing with AIDS and drug abuse education will remain in the Department of Education rather than be transferred to the Health Division. Likewise, the Job Training Partnership Act program of the Department of Education is not recommended for transfer to the State Job Training Office.
Speaker Dini stated The Executive Budget recommended a net reduction of 17.5 positions, or 17 percent, from 100.5 to 83. Savings due to reorganization of the department were estimated by the Budget Division to total $464,009 in FY 1993-94 and
$484,916 in FY 1994-95. In keeping with a letter of intent sent after the 1991 session, the Budget Division recommended a number of positions (including federally funded positions) be eliminated. With the exception of a few positions listed below, the Budget Division's reductions are recommended. Of the total of 22.25 positions targeted for elimination by the Governor, only 3.25 were clerical positions; the rest were professionals. This left the agency with a professional to clerical ratio in some programs that was less than two to one. Since the "rule of thumb" for budgeting clerical support is 3 professionals to one clerical, the subcommittee felt some reduction in the number of clerical positions was in order.
Speaker Dini emphasized decisions concerning which positions should be added, restored, eliminated or transferred between budget accounts were the result of negotiations with the Department of Education. The subcommittee is recommending a net increase of four positions over the 83 recommended by the Governor. He stated restoration of the following positions is recommended: Deputy Superintendent for Instruction; 1.25 positions in the Drug Abuse Education program; half-time Elementary Education Consultant split between the state-funded account #2673 and Chapter 2 to serve as elementary consultant and to coordinate class-size reduction program; Federal Programs Director in Chapter 1; one full-time and two half-time Nutrition Consultants; Auditor III in Education Support Services to improve Department's audit capabilities, especially in the Class-size Reduction program; and a Special Education Consultant.
He indicated the following positions are recommended to be eliminated: a new half-time Management Assistant I in Nutrition program; a vacant Management Assistant II position in Occupational Education; a new Chief of Instruction recommended by the Governor; a Management Assistant I in the Nutrition program is not recommended to be increased from 50 percent to 75 percent; and a vacant Management Assistant I in Special Education.
Speaker Dini noted a new Program Assistant I for the Teacher Licensing program was added by the Governor. This is the only "new" position in the budget, other positions that are added are positions that were abolished during budget reductions. He explained three existing positions were recommended by the Governor to be transferred from the state-funded Education State Programs account. Only one, the Director of Special Education, is recommended by the subcommittee to be moved to a federally funded account.
Speaker Dini explained the subcommittee received information from the Department indicating the proposed transfer of the Director of Elementary and Secondary Education to the federal Chapter 1 Program's budget would not be acceptable under federal regulations. The Budget Division had proposed the Director replace the existing Director of Federal Programs. The subcommittee is recommending the
Director of Elementary and Secondary Education not be transferred to the Chapter I program budget account .
He testified the subcommittee recommends one half of the Director of Teacher Licensing position remain in the state-funded account. The Director of Teacher Licensing is responsible for transportation, asbestos removal, radon and lead monitoring, and manages the Department's Las Vegas office. Only about half of his duties relate to teacher licensing and training. A 25-percent Program Assistant III position is recommended to remain in the Nutrition program rather than transfer to the state-funded Education State Programs
account.
He remarked the subcommittee is recommending that $57,000, which was included in the budget of the Director of the proposed Department of Education, Health and Human Services, for dues to national education organizations, such as the Education Commission of the States and the Council of Chief State School Officers, be transferred from the Director's budget to the Education State Programs Account to fund the Department's membership in these organizations in the next two years. He emphasized this is not an increase in general fund dollars since the amount was already budgeted in another account. The subcommittee is also recommending the restoration of the School Library Consultant. The Budget Division had eliminated the position and suggested the State Library take responsibility for school libraries. The subcommittee recommends the Library Consultant be hired January 1, 1994. The cost of the consultant and small amounts for in-state travel and operating costs total $29,342 in FY 1993-94 and $61,297 in FY 1994-95.
Speaker Dini explained the other state-funded positions and related costs added $85,490 of general fund money in the first year and $88,987 in the second year. A small amount ($5,647) was also added each year to pay for supplies, postage and printing for the Byrd Scholarship and Nevada Scholars programs. The total general fund money added by the subcommittee is $119,579 in FY 94 and $155,931 in FY 95. Those totals do not include $57,000 of general fund money already included in the budget of the Director of Human Resources.
Speaker Dini stated the subcommittee suggests the following letters of intent be sent to the Department of Education: Department of Education staff shall no longer travel on funds subgranted to the Research and Educational Planning Center (REPC) of the University of Nevada, Reno; the Apprenticeship Program will receive sufficient Carl Perkins Vocational funds to maintain the program at its current level of spending; an accelerated repayment schedule shall be adopted for the loan made to the teacher testing program in 1989; the Departments of Education and Human Resources shall continue to report to IFC on a quarterly basis regarding out-of-district and out-of-state placement of severely handicapped pupils.
Speaker Dini concluded after all budgets of the Department of Education are closed, indirect costs and rent amounts must be recalculated and the budgets adjusted accordingly.
* * * * *
SPEAKER DINI MOVED TO CLOSE THE DEPARTMENT OF EDUCATION'S BUDGET ACCOUNT AS RECOMMENDED BY THE K-12 SUBCOMMITTEE.
MR. HUMKE SECONDED THE MOTION.
Ms. Giunchigliani noted she was glad the library consultant position was reinstated which was greatly needed. She noted 13 positions overall were cut and to some extent this streamlines the department without killing it and more funds are given to the local school districts. She noted her approval of going just a little above what the Governor Recommended in The Executive Budget. Speaker Dini stated more money will go to Aids to School and some $300,000 plus was reserved for the 395 category because it is unknown what the federal government will be doing in that area. This allows the schools to use the funds early in the year and possibly match the program money to go forward.
THE MOTION CARRIED UNANIMOUSLY BY VOICE VOTE.
BUDGET CLOSED.
* * * * *
UNCLAIMED PROPERTY -- PAGE 252
Mr. Stevens stated the Governor's Recommendation is to move this budget account to the Department of Administration, but both the Senate Finance and Assembly Ways and Means Committees believe it should be placed in the Department of Business and Industry. He noted there is no fiscal adjustment.
* * * * *
MR. MARVEL MOVED THE UNCLAIMED PROPERTY ACCOUNT BE MOVED TO THE DEPARTMENT OF BUSINESS AND INDUSTRY.
MS. TIFFANY SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY BY VOICE VOTE.
* * * * *
LABOR RELATIONS -- PAGE 390
Mr. Stevens stated if the Employee Management Relations Board (EMRB) is recommended to remain as a stand-alone board there will be a general fund reduction of $29,572 for FY94 and $6,053 for FY95 on the revenue side and personnel costs would be reduced by $18,145 and $3,600 per year of the biennium for EMRB salaries along with in-state travel reduced by $4,373 per year. These reductions would occur in the Labor Relations account and would be moved to the EMRB budget account. He stated staff would recommend the addition of $1,920 in each year for Board and Commissions salaries for the Apprenticeship Board which would provide funding for meetings related to EMRB.
Ms. Giunchigliani asked if the committee chooses to shift EMRB back, what will be the total cost to the budget. Mr. Stevens stated the recommended cost would be $103,739 for FY94 and $102,258 for FY95. Those adds would be offset by the reductions in the Labor Relations budget account. He clarified the Agency Request of $118,101 for FY94 and $125,101 for FY95 and was somewhat trimmed back on the operational side. Ms. Giunchigliani commented the SIIS Committee is looking at restructuring DIR completely and differently than the Governor's Recommendation by having it merge more with the Labor Relations component in the Department of Business and Industry. She stated those actions may have an impact on the Labor Relations and EMRB budget closings. She emphasized this department is understaffed.
Mr. Perkins asked what the bottom line general fund appropriation for Labor Relations would be. Mr. Stevens replied it would be the Governor's Recommended $711,230 for FY94 and $692,322 for FY95 and if the EMRB function is retained staff would recommend reducing the appropriation by $29,752 for FY94 and $6,000 for FY95.
* * * * *
MS. GIUNCHIGLIANI MOVED TO MOVE EMRB OUT OF THE LABOR RELATIONS BUDGET ACCOUNT AS RECOMMENDED BY THE STAFF.
MR. PERKINS SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY BY VOICE VOTE.
* * * * *
Ms. Giunchigliani requested the budget account for Labor Relations remain open until the SIIS committee conclude action on these two budgets because there may be an offset to some of the appropriation request. She asked to have at least a week to conclude committee actions in regard to Labor Relations and EMRB.
STATE OCCUPATIONAL INFORMATION COORDINATING COMMITTEE -- PAGE 1111
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MRS. WILLIAMS MOVED TO CLOSE THE STATE OCCUPATIONAL INFORMATION COORDINATING COMMITTEE BUDGET ACCOUNT AS RECOMMENDED BY THE GOVERNOR.
MR. SPITLER SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY BY VOICE VOTE.
BUDGET CLOSED.
* * * * *
MARLETTE LAKE -- PAGE 1597
Mr. Stevens stated this account is currently in the Division of Buildings and Grounds and is recommended to move to the Department of Natural Resources. Staff has no changes to the funding and noted there are funds included in the operating category for Buildings and Grounds special services and therefore the Division of Buildings and Grounds will continue to provide some services in this area.
* * * * *
MR. MARVEL MOVED TO CLOSE THE MARLETTE LAKE BUDGET ACCOUNT AS RECOMMENDED BY THE GOVERNOR.
MR. HUMKE SECONDED THE MOTION.
Speaker Dini asked what happens to the Marlette Lake Advisory Committee and if it continues are the expenses included in this budget. Mr. Stevens indicated he saw no actual or budget expenditures for Boards and Commissions in this account. Ms. Matteucci stated the Marlette Lake Advisory Committee was recommended to be retained. Speaker Dini indicated it is a statutory committee and funding would probably be out of the legislative fund.
THE MOTION CARRIED BY VOICE VOTE. MR. PRICE WAS ABSENT AT THE TIME OF THE VOTE.
BUDGET CLOSED.
* * * * *
CARSON WATER TREATMENT PLANT -- PAGE 1600
Mr. Stevens noted this account is recommended to be moved to the Department of Natural Resources. He had no comments on the monetary aspects of the account.
* * * * *
MR. DINI MOVED TO CLOSE THE CARSON WATER TREATMENT PLANT BUDGET ACCOUNT AS RECOMMENDED BY THE GOVERNOR.
MRS. EVANS SECONDED THE MOTION.
THE MOTION CARRIED BY VOICE VOTE. MR. PRICE WAS ABSENT AT THE TIME OF THE VOTE.
BUDGET CLOSED.
* * * * *
TAHOE REGIONAL PLANNING AGENCY -- PAGE 1635
Mr. Stevens explained the account includes funding to provide a cost of living increase for personnel, and staff recommends it be removed from the account because no other state agency is receiving a similar increase. This would reduce the request by $34,446 in FY94 and $61,317 in FY95. Staff would also recommend requesting a Letter of Intent be sent to the TRPA indicating the appropriations are for the fiscal year and must be expended within the fiscal year in order to remove any confusion.
* * * * *
MR. HUMKE MOVED TO CLOSE THE TAHOE REGIONAL PLANNING AGENCY BUDGET ACCOUNT AS RECOMMENDED BY THE STAFF.
MR. PERKINS SECONDED THE MOTION.
THE MOTION CARRIED BY VOICE VOTE. MR. PRICE WAS ABSENT AT THE TIME OF THE VOTE.
BUDGET CLOSED.
* * * * *
NEVADA TAHOE REGIONAL PLANNING AGENCY -- PAGE 1637
Mr. Stevens stated the major change is a recommendation to have State Lands perform the staff functions. There were no financial changes. Speaker Dini asked for clarification on the argument for having State Lands perform the functions. Mr. Stevens indicated information received from the Attorney General's office over the question of using a contractor or State Lands stated none of NTRPA's autonomy would be affected by the transfer of staff responsibilities to State Lands. Mr. Stevens asserted this move makes sense to the staff.
Mr. Humke interjected his notes indicate Ms. Lau, the current chairman, had commented the agency could live with the help from State Lands.
* * * * *
MR. WILLIAMS MOVED TO CLOSE THE TAHOE REGIONAL PLANNING AGENCY BUDGET ACCOUNT AS RECOMMENDED BY THE STAFF.
MS. TIFFANY SECONDED THE MOTION.
THE MOTION CARRIED BY VOICE VOTE. MR. PRICE WAS ABSENT AT THE TIME OF THE VOTE.
BUDGET CLOSED.
* * * * *
STATE CLIMATOLOGIST -- PAGE 1703
Mr. Stevens remarked this account was not recommended for funding in The Executive Budget. He stated the State Climatologist requested appropriations in the amount of $25,611 per year of the biennium.
* * * * *
MR. MARVEL MOVED TO RESTORE FUNDING FOR THE STATE CLIMATOLOGIST BUDGET ACCOUNT.
MS. GIUNCHIGLIANI SECONDED THE MOTION.
Mrs. Williams asked where the State Climatologist's office was located and how much time did he allocate to the state. Mr. Stevens replied it was located at the University of Nevada, Reno and it was a quarter-time position. He broke down the funding: $12,160 for salary, $7,689 for clerical support, $700 for out-of-state travel, $2,000 for in-state travel and $2,832 for operating expenses. Mrs. Williams commented these services are not received from any other source.
Chairman Arberry emphasized if this position was deleted, Nevada would be the only state in the country which did not have a State Climatologist.
Ms. Giunchigliani asked if this account would also be transferred to the Department of Natural Resources. Mr. Stevens noted the committee would have to decide where to locate the agency because it is currently recommended for elimination and therefore not placed anywhere in the organization. He stated the Department of Natural Resources would be the logical location for this agency.
THE MOTION CARRIED BY VOICE VOTE. MR. PRICE WAS ABSENT AT THE TIME OF THE VOTE.
BUDGET CLOSED.
* * * * *
EMPLOYEE MANAGEMENT RELATIONS BOARD -- PAGE 1717
Mr. Stevens stated an earlier motion will allow this account to be retained and funded in each year of the biennium. The Agency Request for general fund appropriations was $115,101 in FY94 and $122,101 for FY95. The staff would recommend adding $103,739 in FY94 which is a reduction of approximately $12,000 from the agency's request and $102,258 for FY95 or approximately $20,000 below the agency's request.
Ms. Giunchigliani asked what is actually being cut. Mr. Stevens stated the cuts are in the operating categories of about $2,000 and the remainder is in personnel. He explained there is a request of about $97,000 in personnel costs and the staff recommendation is to appropriate about $90,000. He indicated since the Governor had recommended this board be eliminated, staff went in, at the committee's request, and tried to build it back into The Executive Budget at the smallest possible general fund cost. Ms. Giunchigliani inquired if the board would have the opportunity to come back to IFC for additional funds if necessary. Mr. Stevens replied yes.
* * * * *
MR. MARVEL MOVED TO CLOSE THE EMPLOYEE MANAGEMENT RELATIONS BOARD BUDGET ACCOUNT AS RECOMMENDED BY THE STAFF.
MR. SPITLER SECONDED THE MOTION.
THE MOTION CARRIED BY VOICE VOTE. MR. PRICE WAS ABSENT AT THE TIME OF THE VOTE.
BUDGET CLOSED.
* * * * *
Chairman Arberry appointed a subcommittee to deal with the Natural Resources budget. He stated it would be chaired by Speaker Dini with Mr. Perkins, Mr. Marvel, Mr. Heller and Ms. Giunchigliani as committee members.
COMMITTEE INTRODUCTIONS
Chairman Arberry requested committee introduction of BDR C-2021.
* * * * *
MR. PERKINS MOVED FOR A COMMITTEE INTRODUCTION OF BDR C-2021.
MRS. EVANS SECONDED THE MOTION.
THE MOTION CARRIED BY VOICE VOTE. MR. PRICE WAS ABSENT AT THE TIME OF THE VOTE.
* * * * *
Chairman Arberry requested committee introduction of BDR 31-1058.
* * * * *
MR. SPITLER MOVED FOR A COMMITTEE INTRODUCTION OF BDR 31-1058.
MR. HUMKE SECONDED THE MOTION.
THE MOTION CARRIED BY VOICE VOTE. MR. PRICE WAS ABSENT AT THE TIME OF THE VOTE.
* * * * *
Chairman Arberry requested committee introduction of BDR 54-1927.
* * * * *
MRS. CHOWNING MOVED FOR A COMMITTEE INTRODUCTION OF BDR 54-1927.
MS. GIUNCHIGLIANI SECONDED THE MOTION.
THE MOTION CARRIED BY VOICE VOTE. MR. PRICE WAS ABSENT AT THE TIME OF THE VOTE.
* * * * *
Chairman Arberry adjourned the hearing at 10:45 a.m.
RESPECTFULLY SUBMITTED:
_________________________
Kerin E. Putnam
Committee Secretary
??
Assembly Committee on Ways and Means
May 3, 1993
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