MINUTES OF THE

      ASSEMBLY COMMITTEE ON WAYS AND MEANS

 

      Sixty-seventh Session

      May 4, 1993

 

 

The Assembly Committee on Ways and Means was called to order by Chairman Morse Arberry, Jr., at 8:08 a.m., on Tuesday, May 4, 1993, in Room 352 of the Legislative Building, Carson City, Nevada.  Exhibit A is the agenda.

 

 

COMMITTEE MEMBERS PRESENT:

 

      Mr. Morse Arberry, Jr., Chairman

      Mr. Larry L. Spitler, Vice Chairman

      Mrs. Vonne Chowning

      Mr. Joseph E. Dini, Jr.             (Excused)

      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 306   Makes appropriation to state public works board for certain capital improvement projects.

 

Chairman Arberry explained he had held this bill due to actions by the Public Works Board.  However, he felt it was unfair for the Southern Nevada Mental Health Center and the prison system to wait and requested an amendment to remove the provisions in the bill concerning the Fremont School and the old library.

 

      MR. MARVEL MOVED AMEND AND DO PASS SB 306.

 

      MS. TIFFANY SECONDED THE MOTION.

 

Ms. Giunchigliani agreed with the chairman this section should be removed.  She asked if the committee was setting a precedent in the event the Public Works Board made a recommendation for something which was not on the Capital Improvement Projects (CIP) list, the committee would not move forward with funding for construction.  Chairman Arberry stated that was correct.

 

Forrest Thorne, Deputy Budget Administrator, strongly urged the committee to allow Section 2 concerning the remodel of the Fremont school and the old state library to remain in the bill.  The decision had been made during the last session to purchase these buildings and this session, the renovation requirements had been drawn up and it was appropriate to proceed.  The longer the delay starting the design aspects, the longer before the buildings would be ready for occupancy.

 

Ms. Giunchigliani inquired what the Public Works Board vote was for these projects.  Mr. Thorne answered he believed the vote was unanimous.  Ms. Giunchigliani remarked Mr. Thorne would be wise to check the vote.  She then directed her comments to the chair and stated if a project was not on the CIP list, the committee should not be looking at it.  These two projects do require funding.

 

Chairman Arberry inquired what impact these projects would have on future CIP bills.  Mr. Thorne replied he did not know what the impact would be.  However, the movement of funds from the 91-C8 project would allow the Public Works Board to begin the design on the projects in order to meet the anticipated July 1, 1994, occupancy date of the Fremont School.  Chairman Arberry stated he still had a problem with the bill.  The committee was not denying the projects, however, they were being removed from this bill because the remaining projects were emergency issues and the Fremont school and the old library did not constitute emergency projects.

 

Mrs. Evans referred to the old library and the building's structural soundness.  Within days after the library staff moved out of the building, she understood one of the ceilings collapsed.  This issue and been discussed at one of the joint hearings in February and she inquired if anything had been done.  Mr. Ghiggeri said a response had been received from the Public Works Board which addressed the seismic stability of the building.  Mrs. Evans stated it was a wonderful old building which should be saved, but she believed some assurances should be received that the building was worth saving.

 

Mr. Marvel inquired if there was a private group interested in the old library.  Mr. Heller replied there was currently a bill draft in the Senate which he had yet to see.  Apparently an investment group from California had done similar work for California and wanted to do the same in Nevada.

 

Chairman Arberry reminded the committee the motion on the floor was to delete section 2 of SB 306.  He called for the vote of amend and do pass motion.

 

      THE MOTION CARRIED UNANIMOUSLY BY VOICE VOTE WITH MR. PRICE AND MR. DINI ABSENT AT THE TIME OF THE VOTE.

 

BUDGET CLOSINGS

 

Mr. Stevens commented he would discuss the differences in budget closings between Senate Finance and Assembly Ways and Means.  Many of the budgets had been closed the same or one committee had closed a particular budget while the other had not.

 

LAW LIBRARY - PAGE 87

 

The first difference concerned the Law Library budget.  The Assembly courts subcommittee recommended moving $825 in equipment from the first fiscal year to the second.  This was done at the request of the law librarian in an effort to comply with the requirements of the ADA.  A piece of equipment which converts printed material to synthesized voice was recommended to assist blind or visually impaired.  The piece of equipment which they would now like to purchase was different than what had been originally contemplated when their budget was submitted.  The new piece of equipment would cost approximately $825 more.  Mr. Stevens said the law librarian had indicated it would be acceptable if the request was moved from the first year to the second year to allow funding rather than have funding come from the general fund.  Ms. Giunchigliani added the librarian had found a better computer program which would be accomplished in one purchase rather than the previously requested two-part purchase.  She asked the budget be held if there was no agreement on this issue with the Senate.

 

JUDICIAL DISCIPLINE COMMISSION - PAGE 109

 

Mr. Stevens remarked he was unsure what office equipment had been included in the Senate's closing figures.  The Assembly court subcommittee added a number of things to augment the judicial discipline budget, although it was not a great deal of money.  The total increase was $3,425 per year, $800 to provide two additional meetings of the Judicial Discipline Commission, and $1,000 in printing costs to provide for a brochure outlining the commission's functions to increase public awareness and to allow the commission to publish an annual report of its activities.  In addition, postage and another telephone line for a fax machine was requested.  The commission inadvertently omitted the lease payment for their copier which was also included in the $3,525 increase.

 

Ms. Giunchigliani commented she did not remember any discussion or request during the subcommittee hearings regarding office equipment.  Mr. Stevens agreed.  Ms. Giunchigliani added the main issue was to increase public awareness of the commission and these additional funds would give them the opportunity to begin.  She felt the budget as closed by the Assembly was more directed to the commission's needs.

 

Mr. Spitler recalled the request for recording equipment because Mr. Humke had suggested the commission might be able to use some of the recording equipment in the legislative building as during the interim, it was not used.  He agreed the committee should stand by their recommendations.  When the commission appeared before the full committee, they indicated they were not having the meetings they should have and had no funds to publicize the commission's activities.  He felt the work of the commission was of high public interest.

 

DAIRY COMMISSION - PAGE 475

 

Mr. Stevens advised the recommendation for this budget was a non-monetary item.  Both committees had closed this budget governor's recommendation and both had indicated the membership and duties should remain as authorized by statute.  The Ways and Means Committee felt the executive director should be selected by the governor from a list of names provided by the Diary Commission.  The Senate did not take action on that item which remained as the only difference between the committees.

 

Mr. Spitler asked if the executive director selection process was currently in statute and if this selection procedure would change the statute.  Mr. Stevens stated the statute would have to be changed.

 

DEPARTMENT OF MUSEUMS AND HISTORY - PAGE 1120

 

Mr. Stevens explained the committees had closed this budget in nearly the same fashion.  The Senate closed the budget governor's recommendation as did the Assembly with the exception the Assembly moved to delete all reorganizational savings and transfer that same amount to vacancy savings and to allow the current statutory authority for vacancy savings apply to appropriation transfers.  The overall expenditure authority in this budget was not changed by the Assembly action.

 

Mr. Marvel asked if Mr. Stevens had discussed this action with the Senate or the fiscal staff for the Senate.  Mr. Stevens stated he had discussed the issue with Dan Miles and asked that Senator Raggio be informed of the Assembly action.  There did not appear to be any philosophical difference between the committees.  Mr. Marvel wanted to ensure the Senate was aware of the Assembly action. 

 

Ms. Giunchigliani requested a more detailed explanation of the transfer of reorganizational savings.  Mr. Stevens explained there was a concern that authority to transfer monies between accounts not be enhanced and that it maintain the status quo.  If reorganizational savings are part of a budget, there must be a section put into law or at least into the appropriations act which allows appropriation transfers between budget accounts for that particular purpose.  This could be viewed as enhancing the ability to transfer funds between accounts.  By transferring the savings into vacancy savings, there was current language which allowed the executive branch to transfer appropriated funds within a department up to the amount of vacancy savings within a budget.  If a budget had $25,000 in vacancy savings, $25,000 in appropriated funds could be transferred into that budget from any other budget within that department.  That statutory authority under the motion made in this committee would retain the current language for transfer of vacancy savings.  Ms. Giunchigliani asked if this would allow the department some flexibility when they were short of funds to request funding from vacancy savings.  Mr. Stevens replied the current statutory authority was created because at times agencies could not meet their vacancy savings factor.  If an agency fell short in their vacancy savings, their only recourse would be to obtain a supplemental appropriation or come before Interim Finance.  At times, the vacancy savings could not be adequately projected.  In that particular case, a sum could be taken from another budget which earned more than its vacancy savings amount and transfer that amount, as long as the sum was not over the savings as budgeted. 

 

Ms. Giunchigliani asked if this scenario would still exist under the recommendation made by the committee.  Mr. Stevens replied affirmatively.  He added the vacancy savings figures would be much larger in this biennium because of the reorganization savings which would be transferred to vacancy savings.  Ms. Giunchigliani inquired if the agencies had been hamstrung by making the vacancy savings too high or was the amount reasonable because of the shift of funds and the shift back.  Mr. Stevens explained there would be two components to vacancy savings.  There would be one figure, the actual vacancy savings which the budget division had determined the agency had historically met, and the other figure, reorganizational savings, wherein positions would have to be eliminated to make that figure.  The committee had decided to look at each position targeted for elimination and reorganization savings and decide if the position should be funded.  If the position was funded, an amount would be put in the budget; if the position was not funded, the funds would be transferred to vacancy savings.  Some positions would have to be eliminated in order for the agency to meet their vacancy savings.  Ms. Giunchigliani asked if the agency could decide to cut programs.  Mr. Stevens replied vacancy savings would be within the salary category.

 

Mrs. Williams indicated she had been informed by someone from the Department of Museums and History that the Senate had told the agency to sell their collections in order to generate revenue.  Mr. Stevens remarked the Senate had closed both museum and library budgets based on books sales, gifts and donations for the library and in the case of the museums, they could sell part of their collection in order to raise revenue.  There was information this would go against the accreditation standards for the Department of Museums. 

 

The Senate had closed the state library budget by increasing gifts, donations and book sales by $153,899 and reduced gifts and donations.  In essence, rather than having the library generate revenue for books from gifts and donations only as recommended by the governor, the library could generate revenue from books sales as well.  Mr. Stevens speculated this could mean the library could sell some of the books in its possession.

 

The Senate had also provided $26,000 for the bookmobiles, $13,000 in state general fund appropriations and $13,000 in a county match, meaning the state would provide a dollar for dollar match up to $13,000 in state funds if a county wished to receive additional funding for bookmobiles.  Mr. Stevens said the book budget would be funded from gifts, donations and book sales and the Assembly closing action would fund the book budget one-third general fund, one-third federal Title I funds and one-third gifts and donations which would result in a $51,300 addition in general funds each year.  The Assembly has also provided $26,000 in federal funds for bookmobiles.

 

Mr. Price called attention to the issue of the museum selling part of its collection to raise revenue.  Mr. Stevens explained the Senate had restored the museum director position in the Las Vegas museum with donations, gifts and sales revenue.  That sales revenue could be generated from the museum's collection, but Mr. Stevens could not confirm that was the case.  In any event, that would be against the accreditation standards for the museum.  Mr. Thorne added he believed the sales revenue was generated by the gift shop, not sales of the collection.  Mr. Stevens suggested the Senate Finance Committee clarify their closing decisions at the next joint hearing.  However, he was aware the director for the Nevada State Museum expressed great concern over any sale of the museum's collection as it would go against the accreditation standards.

 

NEVADA COUNCIL ON THE ARTS - PAGE 1177

 

Mr. Stevens remarked the Senate had added $800 in general fund dollars to each year of the biennium for longevity pay which was an issue that had been brought before this committee.  However, due to the low dollar amount, the committee decided it was not significant enough to differ from the governor's recommendation. 

 

Chairman Arberry asked the committee's pleasure on this issue.  Mr. Marvel suggested the Senate should justify their closure, and if they could not, the Assembly should stay with its recommendation.  Chairman Arberry agreed that was a good stand.

 

MUSEUM, LIBRARY AND ARTS ADMINISTRATION - PAGE 1182

 

Mr. Stevens pointed out both committees had closed this budget generally the same from a monetary standpoint.  When Ways and Means closed this budget, the science and technology office had been recommended to be moved to the Commission on Economic Development.  Mr. Stevens indicated he was aware the Senate had considered the matter, but he was not sure of their decision.  He said the governor would like to have the science and technology office located within his office. 

 

Mrs. Williams expressed to the committee she would support location of the science and technology office in the governor's office.

 

There being no further business before the committee, Chairman Arberry adjourned the meeting at 8:35 a.m.

 

                                          Respectfully submitted,

 

 

 

      ______________________________

                                          Reba Coombs, Secretary

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Assembly Committee on Ways and Means

May 4, 1993

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