MINUTES OF THE
ASSEMBLY COMMITTEE ON WAYS AND MEANS
Sixty-seventh Session
May 13, 1993
The Assembly Committee on Ways and Means was called to order by Chairman Morse Arberry, Jr., at 8:00 a.m., on Thursday, May 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
AB319Makes appropriation to Lincoln County School District for teacher at Garden Valley School.
Assemblywoman Marcia De Braga, District 35, testified AB319 needs some changes to correct the content. She explained the bill requests $50,000 for Lincoln County School District for a rural school in Garden Valley, but the portable school is actually located in Cole Valley in Nye County. She pointed out the school is a trailer and is movable. She noted in 1992 there were eight children from four families which attended this school and in 1993 there were four children from two families. She introduced the Paris family children who attend the school: Bernadette, Bridget and Bert. She pointed out on a map of Nevada where the Paris family herd their sheep and cattle. She explained the Paris family begins their year in upper White Pine County and in November they move down to Cole Valley in Nye County.
Ms. De Braga emphasized the school is near Lund, but the school district does not bus the children to school because it is 22 miles on a dirt road plus 40 to 50 miles on country roads. She commented there was a full-time teacher for two years at the school, but as a result of budget cuts, the White Pine School District withdrew the teacher. Currently, the teacher goes to Cole Valley on weekends and the children do their assignments and work during the week. She pointed out last winter the teacher was almost lost on his way out to the ranch because of snow. She indicated the teacher got stuck in snow, began walking to the children's home and, because he had been expected, the family was able to go out and find the teacher before he succumbed to the elements. Ms. De Braga reiterated the teacher had to walk a long way, but was lucky to have survived the ordeal.
Ms. De Braga explained AB319 requests $50,000 to fund the full-time teacher for the school. She emphasized the parents of the children involved do not want to home teach nor board the children in town in order to attend school. She remarked these children consistently test with the highest in the nation and their education has advanced. Socially, they participate in 4-H and a number of other programs. She stated she knows the budget is very close this year and provided a couple of possibilities which could help the children get adequate public education.
Ms. De Braga explained when the teacher was withdrawn, Nye and White Pine Counties cooperatively purchased computers for the children to link up and teleconference from another school. Unfortunately, the equipment needs a hardwire telephone line to work and none exists out in the area where the children live. She stated, if funding for full-time teacher is not possible, perhaps the option of funding the equipment to make the teleconferencing system workable could be approved.
Miss Bernadette Paris introduced herself, her brother, Bert, and her sister, Bridget. She testified they are the important reasons AB319 should be passed. She stated her parents are ranchers who run 5,000 head of sheep and 600 head of cattle. Though they have sheepherders, they are required to be with the animals year-round. She explained their home ranch is 70 miles north of Ely. The family lives there from June through October and it is where the children begin their school. From November through April, the family is 101 miles south of Ely and the children go to the small trailer school donated five years ago by Kennicott Copper. She stated both Nye and White Pine Counties' School Districts have been very supportive of the school. She emphasized, however, due to the expense, White Pine can no longer afford to fund a full-time teacher for the school.
Miss Paris pointed out this school year they were very grateful to have an advisory teacher and two new computers with a CD-ROM. She indicated next year they would like to be able to use the computers to interact with the school districts and to have a teacher to assist them to utilize the system to its fullest potential. She emphasized if the Legislature passes AB319, this would be possible. She pointed out last year the Paris Ranch paid out $197,000 in expenses and the revenue generates many jobs for Nevadans. She asserted if the family is forced to come into town to permit the children access to education, the Paris Ranch will suffer so severely she doubted it would survive.
Chairman Arberry asked if the committee approved the $50,000 appropriation request, what will occur next session. Ms. De Braga indicated continued funding would be requested next session. She emphasized White Pine previously paid for the full-time teacher and now funds the part-time teacher. She noted if the conditions improve for the White Pine County School District, they would fund the full-time teacher again.
Chairman Arberry inquired why Nye and White Pine Counties' School Districts cannot come together cooperatively and fund the $50,000 for a teacher. Dr. Eugene Paslov, Superintendent of Public Instruction, testified White Pine School District counts the children and had funded a full-time teacher to live on the ranch, travel with the family and fulfill the educational needs of the children. He blamed the serious budget reductions which forced White Pine School District to pull the teacher back into the local middle and junior high school to teach. Dr. Paslov emphasized the school district does not have enough money, even with collaboration with Nye County, to fund a full-time teacher for the four to six children in Cole Valley.
Dr. Paslov explained he, White Pine County Superintendent Jan Cahill, Department of Education Educational Consultant Frank South, and Nye County Superintendent Bob Ragar went out to meet with the Paris family to discuss what could be done jointly to accommodate the need to educate the children. He stated the Paris' first choice was to have a full-time teacher traveling with the children, but economic circumstances would not permit this. He indicated the second-choice was to develop a technology plan in which two computers, a CD-ROM, a modem and a laser disc player and monitor were purchased. The desire was to have this system interactive with the White Pine County School District in the classroom of the teacher previously assigned to the ranch. This would permit daily communication.
Dr. Paslov pointed out it was discovered the modem requires a "hard-wire" telephone line but the Paris ranch uses radio telephones. He testified it is possible to hook-up a radio telephone modem, but it costs $15,000. He indicated he would provide the committee with a cost breakdown for the options of a two-way radio link at $15,000 and a microwave link at $30,000. He emphasized a teacher in the White Pine School District has been paid additional money to go to the Paris Ranch on weekends and adding the radio-link modem would achieve interactive capabilities during the week. He pointed out the school districts have worked cooperatively to achieve this level of service even with the severe budget constraints and shortfalls.
Dr. Paslov reiterated neither Nye nor White Pine School Districts can afford to lose another teacher by sending him out full-time to the Paris Ranch. He reemphasized White Pine County is already facing a 5 FTE shortfall in its class-size reduction program. He remarked the best scenario would be to fund a full-time teacher. If this is not possible, the next best scenario would be to have the teacher available on the weekends and to make the system interactive. He pointed out the system is quite sophisticated and the Paris children are very computer-literate. He acknowledged the quality of software and the abilities of the children has been exceptional. He drew attention to the fact these children have scored extremely well on national standardized tests, and they have been receiving a very good education through the teacher in conjunction with the available technology.
Ms. Giunchigliani commented the children were counted in the roll-up costs, but with the budgetary cuts, she asked if it was reflected in the $18 million general fund request. Dr. Paslov stated he was not sure if the full $18 million would be allocated by the Legislature and commented he was not even sure that amount would make the school district fully funded. Ms. Giunchigliani stated there would be a per-pupil need remaining. Dr. Paslov agreed.
Ms. Giunchigliani emphasized the cost for the part-time teacher and the existing program had not been restored in the existing budget. She commended the parents for traveling the large area and working to get a public education for their children.
Mr. Marvel inquired if Nye County receives any benefits from the Nevada Plan by counting the students within its enrollment. Dr. Paslov indicated they did not because the children were counted in White Pine enrollment figures and cannot be double counted. He reiterated the Nye County School District and Mr. Ragar have cooperated in every possible way, especially in the purchase of the equipment.
Ms. Tiffany remarked if the committee approved funding to link the children and classroom via modem, the equipment would not be the highest expense, the online charges would be the issue. She inquired how those costs would be paid. Dr. Paslov stated the estimated cost of $400 per year for telephone line costs was included in the appropriation request. Ms. Tiffany indicated her experience has shown $400 per year would not be a reasonable estimate because online costs could be as much as $400 per month. Dr. Paslov replied the estimates came from the state telecommunications department which would include $400 for line charges per year and $500 for facility rental and power for the system per year. The point-to-point interface, if microwaves were utilized, would add approximately $2,500 per year for uniwave per channel charge. Ms. Tiffany encouraged the committee to relook at the estimated costs.
Ms. Giunchigliani commented, although the children were counted in White Pine County, they do migrate. She reiterated with Nevada's high growth rate there would continue to be a need for per-pupil counts both in September and January. This would help the school districts which have an influx of students throughout the year to receive the correct per-pupil allotment. Dr. Paslov interjected a number of groups would be affected and it would be a critical fiscal issue should a two-count system be put in place.
Chairman Arberry inquired if the Chapter II Federal funds would be available for the equipment or link. Dr. Paslov indicated the school district has already expended their available local Chapter II funds and other federal funds for the equipment purchases.
Mr. Jan Cahill, White Pine County School District Superintendent, urged careful consideration and passage of AB319 and requested some amendment to the placement of funds. He explained Lincoln County does not have a role in the Grass Valley School. He encouraged the committee to support AB319 because these children have consistently scored in the 99th percentile. He pointed out if the testing agency scored tests at the 100th percentile, he believed the Paris children would probably achieve the number.
Mr. Cahill stated nothing can take the place of a human being and commented the computers and CD-ROM should not necessarily be the final answer for the Paris family's educational needs. He remarked a computer cannot hug a child for encouragement or look at an art design program. He stated White Pine County was grateful to Nye County for the assistance it has provided. The bottom line was nothing can take the place of a human being to teach these children. They need a teacher on site to encourage them, watch them, and provide them with the interaction necessary to grow. He emphasized the children work extremely hard outside of school. He noted the teacher previously assigned to the ranch typically comes into Mr. Cahill's office weekly asking if he can be allowed to return to provide the services. Mr. Cahill asserted the teacher is a good teacher who wants to do something for the children. Unfortunately, White Pine School District does not have the money to provide the full-time services any longer.
Chairman Arberry asked what the minimum need would be. Mr. Cahill stated the bare minimum appropriation would be $40,000. Chairman Arberry inquired if this was for the biennium. Mr. Cahill indicated it was. Ms. De Braga replied the estimated cost came from White Pine County and is estimated for two years for salary, supplies and benefits. Mr. Cahill commented the school district paid for all travel costs over the past year and it cost nearly $10,000.
Ms. Giunchigliani emphasized the state has the responsibility to fund education and it is time to realize this is just one area where the state is breaking down. She indicated she might move to reopen the Rodeo budget which has $34,000 in it and donate it to this bill which is a lot more important than having a rodeo program.
Chairman Arberry closed the hearing on AB319.
AB495Makes appropriation to Washoe County School District for Family Focus Center at Glenn Duncan Elementary School.
Assemblywoman Vivian Freeman, District 24, explained Glenn Duncan School is primarily a low-income, high percentage minority school and has a number of serious needs. She stated Mr. Tim Fuetsch, Principal of Glenn Duncan, has created a coalition of people in the community to address the problems of the students. She recognized the shortfall of funds, but indicated this program would be a true community-involvement program with state funds to help a community to help themselves. She encouraged favorable consideration of AB495.
Mr. Fuetsch provided the committee with a handout on the statistics of the Glenn Duncan School's neighborhood and some letters of support for AB495 (see EXHIBIT C). He explained Glenn Duncan has about 550 students with 90 percent qualifying for free or reduced lunch. He pointed out English was a second language for 60 percent of the students, who only speak Spanish when they begin school. He emphasized he sees children daily who do not learn because of the typical problems of children living in poverty: malnutrition, underdeveloped for their age, serious dental problems, etc.
Mr. Fuetsch stressed the Family Focus Center was originally conceptualized by representatives from the School District, County Health Department, Social Services, UNR Medical School, UNR Education Department, Washoe Legal Services and local elected officials. The consortium agreed no single system could effectively help these children and the families in need of services because of the multiple and interrelated problems which spill over traditional bureaucratic boundaries. He explained, following the lead of other innovative urban school communities, the Glenn Duncan Family Focus Center is being created to use the local elementary school as a "full service" location providing preventative health services and comprehensive case management assistance during flexible day and evening hours for students and their families.
Mr. Fuetsch pointed out, presently, many available services are fragmented, seemingly inaccessible or incomprehensible and unresponsive to individual family needs. The Family Focus Center does not seek to replace existing services, but to coordinate access to such services in a humane and efficient manner. He explained, since the elementary school is one of the last approachable community outposts left in low income neighborhoods, it would be common sense to utilize it to provide coordinated services to families in poverty. He remarked the Center would use volunteers from the neighborhood to encourage support, pride and responsibility for maintenance, administration and programming.
Mr. Fuetsch outlined the preventative health services component of the Family Focus Center would be the first step towards providing adequate health care for students. The case management component of the program would ensure students and their families of access to medical care and treatment through existing programs. He stated wellness and preventative health education programs would be emphasized for students and families.
Mr. Fuetsch asserted by attempting to address the primary basic needs of an "at risk" student population, the Glenn Duncan Family Focus Center is attacking the variables of poverty which hamper academic achievement. A healthier, more secure, focused student population would reduce educational underdevelopment and improve the children's chances of escaping poverty.
Ms. Bernice Martin-Matthews, Reno City Councilwoman - Ward 4 Washoe County, stressed she was pleading for approval of AB495. She indicated the Ward was devastated and was probably the most ethnically and economically diverse district in Reno. She pointed out it was an extremely poor neighborhood and lacks economic stability in terms of people having jobs above entry-level. Most of the people in the Glenn Duncan School area are renters and quite literally live at the bottom of the socioeconomic scale. She provided the committee with EXHIBIT D which consisted of her testimony and statistics on the Glenn Duncan area and Ward 4.
Ms. Martin-Matthews emphasized Mr. Fuetsch works with Rose McGuire, community representative, and Ms. McGuire meets with Ms. Martin-Matthews in neighborhood meetings. Other involved individuals are: Assemblywoman Vivian Freeman, Mr. Dave Rice from the Health Department and Francis Dougherty from the Washoe County Legal Services. She recognized these people come together to coordinate services and to meet the needs of the families and children in the area. She pointed out the children in Glenn Duncan School were to the point where they have no hope of accessing the system. The CBDG (Community Block Development Grants) monies from the City of Reno provided some seed funds to start the program and the appropriation requested by AB495 would enhance the seed funds. The desire of the program is not to come back to ask for more money from the Legislature in the future. She emphasized the community and local businesses would be asked to provide support and underwrite the program. She noted this could be a pilot and model program for Nevada. She remarked other states are already providing such services so it has been tried, tested and proven to be a valuable program. She encouraged the committee to support AB495.
Mr. David Rice, District Health Officer Washoe County District Health Department, requested the committee support AB495. He pointed out children need to be healthy to be educated. This program was a grass-roots effort with vision to provide vital services for the community in a centrally accessible location. He emphasized the area of Census tract 18 has a high number of young people with 29 percent under the age of 19. He testified over 58 percent of the population were minorities and over 23 percent live in poverty. He remarked this would be a family-focused, parental-consent type of project involving teachers, parents, and community.
Ms. Giunchigliani stated her support of utilizing the schools as access points for community services. She noted this was a whole child and family program. She asked what stage CDBG funding was at and when it would expire. Ms. Martin-Matthews replied funding would be finalized May 18, 1993. She stated $87,000 was requested and $43,500 had been recommended.
Vice Chairman Spitler requested a budget breakdown. Mr. Fuetsch responded $40,000 would hire a project coordinator to coordinate all services which would be brought in from the outside and also to raise funds through grant writing. He remarked USBank has committed funding to the project.
Ms. Rose McGuire, Teacher and Community Liaison for Glenn Duncan School, testified the budget was a bare bones budget. She pointed out the school was offering the space, which is a big chunk of money if it had to be rented, and the space would include maintenance, repair, and ongoing adjunct services. She reiterated services would come from UNR Medical School and other areas. She emphasized the request for money was primarily for the personnel to coordinate the program.
Ms. Francis Dougherty, Staff Attorney Washoe County Legal Services, indicated the Legal Services office became involved in the project early as a result of some other community activities they were providing in the area of Northeast Reno, where Census Tracts 17 and 18 are located. She stressed she saw the general appearance of the student population of very unhealthy, undersized, poorly equipped students in the school. She insisted there is a need for more integration of services available to these children. The Family Focus Center would be considered a cutting edge social service center to address the urban crisis and to help the children to be healthy enough to learn. She pointed out studies have found the elementary school is the last place for approachability for parents in very low-income communities who are otherwise alienated or disconnected from the system. The concept would be accessing the people who are already in the "system" of attending school without having to go out and find them to provide necessary and essential services. She encouraged support of the pilot program and the appropriation requested by AB495.
Ms. Freeman summarized this center would provide a very important service to the community and could be viewed as a pilot and model for the rest of the state. She encouraged the committee to support AB495 which would pay for a program coordinator.
Vice Chairman Spitler closed the hearing on AB495.
AB534Adopts formula to determine mobility of pupils and makes appropriation to department of education for distribution to county school districts for reimbursement of related expenses.
Assemblyman Doug Bache, District 11, testified AB534 addresses two issues. First it adopts a transiency formula and second it would provide funding. He noted school districts incur a number of expenses as a result of high turnover and transiency rates during the school year. He pointed out most schools with both high turnover and transiency rates also have a large number of at-risk students in the population.
Ms. Mary Peterson, Deputy Superintendent in the Department of Education, testified AB534 recognizes the impact Nevada's highly mobile and transient population has on local school districts. She explained Section 2 of the bill provides $100,000 annually to school districts for three purposes: the replacement of textbooks, library books and equipment; training of teachers to address problems unique to transient pupils; and the establishment of methods for processing and tracking the records of pupils. All three purposes were extremely important in meeting the needs of these students.
Ms. Peterson pointed out accomplishing the third purpose, establishing methods for processing and tracking the records of pupils, will, in all likelihood, require all of the funding. She explained the two largest school districts currently do not submit this information to the Department of Education. They would have to revise their student accounting computer programs in order to report this information which is a time consuming and expensive process. She emphasized, at the state level, it will require additional funds to revise the current program with the Department of Data Processing to gather monthly enrollment and attendance data from the districts.
Ms. Peterson summarized, the Department of Education would need to gather data for all late entries, transfers, reenrollments and withdrawals for an entire year. She explained, based on a year's data, the funds could not be allocated until the next year. In other words, the reimbursement for transiency in FY94 could not be made until FY95. She pointed out Subsection 5 of Section 2 stipulates any balances remaining at the end of the respective fiscal years could not be committed for expenditure after June 30 and would revert to the state general fund. Therefore, the $100,000 for FY94 could not be allocated until FY95. She suggested it be amended to allow carry forward of FY94 funds.
Ms. Giunchigliani asked if a definition for "transient student" is included in AB534. Ms. Peterson replied it is not included in the regulations, but AB534 addresses an outline for both the funding and a transiency formula.
Vice Chairman Spitler closed the hearing on AB534.
AB568Provides financial incentive to prevent dropouts.
Assemblyman David Humke, District 26, testified AB568 was an alternative to a 1987 bill he had introduced which was a very punitive bill. He explained the 1987 bill would have mandated several count days and would have provided for an accounting in such a way where money would have been taken away for students who were not in their seats at the end of the school year. He commended Ms. Jeanne Botts, Program Analyst Fiscal Division, for her work in reworking, rewriting and providing a positive concept for AB568.
Mr. Humke stated AB568 creates an incentive for school districts to ensure they keep more students from dropping out. He pointed out the fiscal note is a tidy sum, but an amendment is needed because the intent was to include high school grades only and not all K-12. This would adjust the fiscal note down by nearly 50 percent. He emphasized AB568 provides schools with the opportunity to use their entrepreneurial skills to reduce dropouts and thus gain funds through the distributive school account (DSA). There would be no restriction on how the district could utilize the money. It provides leniency and flexibility for each district to use whatever works for them to reduce dropouts. He noted the weakest portion of the bill was paying schools to do what they are already supposed to do.
Mr. Marvel inquired how would the program work. Mr. Humke replied during the first year of the biennium school districts would submit calculations to support eligibility for the funds which would be available for disbursement in August of 1994. This would affect the second year of the biennium only. Ms. Jeanne Botts explained if every school district lowered dropout rates in grades 9-12 to 5 percent, approximately $2 million of general funds would be needed for FY95.
Dr. Eugene Paslov, State Superintendent for Public Instruction, stated support for AB568 which would provide financial incentives to school districts to reduce the high school dropout rate. He indicated the Department of Education applauds this effort for two reasons: It rewards, rather than punishes, and it realistically addresses the very real problem of high school dropouts in the state. He explained the Subsection beginning on line 22 of page 1 would reward school districts which reduce the dropout rate by 2 percent. Based on data from the 1991-92 school year, three districts would have been eligible for the .5 percent incentive: Clark went from a 10.6 percent to 7.9 percent dropout rate; Lyon went from 11.5 percent to 8.2 percent; and Pershing went from 8.6 percent to 6.6 percent. The Subsection that begins on line 3 of page 2 would reward school districts with dropout rates under 5 percent. He noted for the most recently reported year, 1991-92, four districts would have qualified for the one percent incentive: Carson City, 4.1 percent; Douglas 2.5 percent; Humboldt, 4.1 percent and Lincoln, 0.5 percent.
Dr. Paslov pointed out after the first year every school district, except Lincoln (because it cannot drop 2 percent below 0.5 percent) could earn additional revenues by reducing the high school dropout rate. He emphasized the final Section of Subsection 2, beginning on line 6 which requires the state board to adopt regulations for this purpose. Regulations were developed and adopted in May 1988 to define "dropout" and to prescribe dropout counting procedures. Since then the procedures have been further refined and training has been provided to school district personnel. He stressed the methodology that has been developed and currently in use has been adopted in other states.
Dr. Paslov insisted the Department of Education is confident the current dropout rates are accurate and if AB568 is enacted, the department would want to ensure the accuracy through regular and thorough audits. He pointed out the hope is that this kind of incentive could not work after a few years because the dropout rate would be so low. He stated the Department of Education, for these reasons, supports the approach to dropout reduction outlined in AB568.
Vice Chairman Spitler inquired what strategies statewide will be used to decrease dropout rates. Dr. Paslov replied many are adopting alternative schools or optional programs within schools. They are working with local communities to develop school-to-work transition programs. He emphasized all programs are designed to allow the young people to graduate with a full-range of knowledge and skills necessary to succeed. He noted previously there had been no tracking or attention given to dropout rates, but now, with much concern focused on the issue, there is interest in reducing the dropout rate. He emphasized all the school districts are on their way to reducing the dropout rates.
Vice Chairman Spitler pointed out the school districts are beginning the programs without incentives in place. Dr. Paslov indicated they are and the department is encouraging the districts to move more quickly which the incentives would also help. Mr. Spitler wondered if the department envisioned the costs becoming a part of the state's obligation to fund this incentive for each biennium. Dr. Paslov replied yes, until such time as the dropout rate drops so low the incentives would not apply.
Vice Chairman Spitler inquired if there were any restrictions on the school districts as to how the incentive funds can be used. Dr. Paslov indicated no, the incentive funds would be returned to the school districts for use as they wanted, and this was done by design. Ms. Botts concurred the program was designed to have open usage.
Vice Chairman Spitler closed the hearing on AB568.
BUDGET CLOSINGS
CRIME PREVENTION -- PAGE 30
Mr. Stevens stated there was some question if the agency was performing the role as it was originally designed. He indicated the committee needs to direct staff on what should be done to finalize the budget in order to close. Chairman Arberry asked the committee for their input. Mr. Perkins explained the concern was the function of this agency should be at the local level and is not a state responsibility. Speaker Dini indicated the agency does perform some important things such as coordinating secret witness and neighborhood watch programs which are not done at the local level. He stated the program also administers the Missing Children's Program which was a national network.
Chairman Arberry held the account and requested the Attorney General come before the committee to discuss the agency's role.
CONSUMER ADVOCATE -- PAGE 38
Vice Chairman Spitler testified he would abstain from the vote because he is an employee of the telephone company which is regulated under actions of the consumer advocate's office.
Mr. Stevens stated the Consumer Advocate's only concern was on the salary increase for three positions which is not made at the closing of the budget but later when all salary decisions are made.
* * * * *
MRS. WILLIAMS MOVED TO CLOSE THE CONSUMER ADVOCATE BUDGET ACCOUNT AS RECOMMENDED BY THE GOVERNOR.
MR. HUMKE SECONDED THE MOTION.
THE MOTION CARRIED BY VOICE VOTE. MR. SPITLER ABSTAINED.
BUDGET CLOSED.
* * * * *
REAL ESTATE ADMINISTRATION -- PAGE 404
Mr. Stevens stated staff recommends holding this budget and advised them on actions needed to close the account. He explained reorganization savings have been built into the budget with the value of the accountant position built in at -$36,648 for FY94 and -$46,505 in FY95. He indicated previously, based on a motion from the committee, staff has transferred those amounts to vacancy savings unless the committee believes there is a need to fund the position with general fund dollars. He pointed out there is a microcomputer specialist position which would either be retained through data processing or funded with this budget.
Mr. Stevens cited a memorandum (see EXHIBIT E) which is information received in response to the committee's request to the Real Estate Division. He pointed out on page two under Land Company Fees, the question before the committee was how much money this area generated for the general fund versus the cost to regulate the activity. He indicated the response showed $67,000 would be generated, but it would cost about $130,000 to administer. The agency's response to the issue of increasing the fees to cover administration costs is stated on page three of EXHIBIT E with a listing of fees in California, Florida and Utah for comparison purposes. Mr. Stevens stated page four showed revenues of $84,605 for FY94 and $87,005 for FY95 which would be generated by the proposed increase of fees. Page five shows the actual cost to administer the program. He noted if fees were increased as proposed, more revenue would be generated than the actual expected administration costs and page five outlines a computer program and equipment enhancement proposal to expend the additional revenues in the biennium.
Mr. Stevens emphasized there would an increase to the general fund based on the increase in fees of $84,605, less the computer costs, for FY94 and $87,005, less the computer costs, of $3,500. He reiterated this would be one way to generate some additional general fund dollars. Mr. Stevens recommended the budget be held and the committee provide direction to staff on how to provide for closure. Chairman Arberry held the budget.
REAL ESTATE EDUCATION AND RESEARCH -- PAGE 409
* * * * *
MR. MARVEL MOVED TO CLOSE THE REAL ESTATE EDUCATION AND RESEARCH BUDGET ACCOUNT AS RECOMMENDED BY THE GOVERNOR.
MR. HUMKE SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY BY VOICE VOTE.
BUDGET CLOSED.
* * * * *
REAL ESTATE INVESTIGATIVE FUND -- PAGE 412
* * * * *
MR. MARVEL MOVED TO CLOSE THE REAL ESTATE INVESTIGATIVE FUND BUDGET ACCOUNT AS RECOMMENDED BY THE GOVERNOR.
MR. HUMKE SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY BY VOICE VOTE.
BUDGET CLOSED.
* * * * *
REAL ESTATE RECOVERY ACCOUNT -- PAGE 414
* * * * *
MRS. WILLIAMS MOVED TO CLOSE THE REAL ESTATE RECOVERY ACCOUNT BUDGET ACCOUNT AS RECOMMENDED BY THE GOVERNOR.
MRS. EVANS SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY BY VOICE VOTE.
BUDGET CLOSED.
* * * * *
ENERGY CONSERVATION -- PAGE 437
Mr. Stevens indicated the March 9, 1993 budget revision provides for $97,130 for FY94 and $96,810 for FY95 to be transferred to support the small business program which was left out by oversight in The Executive Budget.
* * * * *
SPEAKER DINI MOVED TO CLOSE THE ENERGY CONSERVATION BUDGET ACCOUNT AS RECOMMENDED BY THE STAFF.
MR. SPITLER SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY BY VOICE VOTE.
BUDGET CLOSED.
* * * * *
HOUSING -- PAGE 441
Mr. Stevens stated, according to testimony before the committee, if the deputy director's position was to be deleted it would seriously hamper the division's multi-family section, especially in the area of low income housing trust fund and the federal home program. He noted correspondence from the Housing Division (see EXHIBIT F) regarding a request for an alternative funding source to generate funding for the position indicates a new source was found. Mr. Stevens indicated the committee would need address the issues of 1) keeping the position, and 2) utilizing the new funding source. Another issue to discuss is the reduction of the position of Deputy Director of Commerce from full-time to half-time. He noted half of the position is funded from the Housing Division and some discussion has occurred regarding maintaining the position. Mr. Stevens elaborated if the Governor's Recommendation is adopted, then half the position would be eliminated and the other half is eliminated in other budgets. He emphasized the Department of Business and Industry's budget account has not been closed and two positions from this budget are targeted for transferral into the B&I account. He indicated it would be preferable to discuss all transfers within the B&I budget when that budget is brought to the committee for closure.
Mr. Marvel made the motion to utilize the funding source to restore the deputy director because it is a critical position especially for the banks involved with the Community Reinvestment Act (CRA) which is a mandate on financial institutions. This is one person who works closely with the institutions for low- to middle-income housing.
Speaker Dini asked if the salary of the half-time Deputy Director of Commerce could be reflected as salary savings so if the position is not needed in the reorganization at least the funds would be accounted for, and if it were found later the position was needed, the division could come to IFC and reestablish it. Mr. Thorne replied he was not sure about the departmental structure, but overall reorganization targeted middle management as savings. He stated the rationale in this division was there would be enough management to cover the duties of the deleted position.
Mrs. Evans stated the current deputy is utilized half-time under Housing and noted it is crucial to remember this position handles the industrial revenue bonds. The revenue from those bonds could take care of the other half of the position. She emphasized this program cannot be "farmed out" to any person. Mr. Stevens concurred and so noted the Housing portion of the position is supported by non-general fund revenue. The staff is working under the assumption of retaining the position and utilizing bond revenue to fund it. Mrs. Evans stated her preference would be to take the staff's recommendation as stated by Mr. Stevens.
Chairman Arberry held the budget.
POSTSECONDARY EDUCATION -- PAGE 580
Mr. Stevens stated a small vacancy savings is included in the second year of the biennium of $535. He noted there are very few positions in the budget and staff recommended Governor's recommendation.
* * * * *
MR. MARVEL MOVED TO CLOSE THE POSTSECONDARY EDUCATION BUDGET ACCOUNT AS RECOMMENDED BY THE GOVERNOR..
MR. EVANS SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY BY VOICE VOTE.
BUDGET CLOSED.
* * * * *
PUBLIC DEFENDER -- PAGE 632
Mr. Stevens explained the counties participation in the Public Defender's budget was recommended to terminate on October 1, 1993. The committee requested information from the counties on whether they wanted to participate in the Public Defender's program at the state level. Mr. Stevens submitted EXHIBIT G from the Budget Division which outlines the counties which have indicated a desire to participate in the Public Defender's program. He noted Esmeralda and Nye Counties have not made final decisions and are not included in the information provided. He explained page two shows the costs which would be required from each county if they participated with the State Public Defender's office: $611,000 for FY94 and $588,000 for FY95 in county funds. He stated the question before the committee would be if the budget needs to be modified to allow the counties to continue the working relationship with the Public Defenders Office.
Mr. Marvel remarked if some counties are choosing not to participate there would need to be a downward adjustment to The Executive Budget. Mr. Stevens clarified the state's general fund would remain the same and noted on page 632 there is $163,766 which represents county funds from July 1, 1993 to September 30, 1993. He explained if the committee recommends to include county participation in the state office, The Executive Budget would need to be modified to include the county funds with a corresponding increase in expenditures. About eight Public Defender positions would need to be added with related operational costs. The total amount needed for each fiscal year is listed on page two of EXHIBIT G.
Mr. Marvel asked why there would be no decrease if fewer counties choose to participate. Mr. Ghiggeri indicated the budget was built upon the assumption the counties would not participate in the program. If recommended by the committee, this modification would restore the participation of the counties which have requested it. Mr. Stevens elaborated the state responsibility would be to continue to provide services to the state prison inmates with or without county participation, and county participation would be at the expense of the counties, not through state general fund monies.
* * * * *
MR. MARVEL MOVED TO CLOSE THE PUBLIC DEFENDER'S BUDGET ACCOUNT, AS RECOMMENDED BY STAFF.
MR. PERKINS SECONDED THE MOTION.
Ms. Giunchigliani inquired if the Public Defender was appointed by the Governor, if the agency is considered a "special purpose" agency and who has final oversight over the office. Speaker Dini stated the state has responsibility over the office.
Mrs. Williams commented her notes indicated Humboldt, Pershing, Lincoln, White Pine and Eureka Counties wanted to stay with the Public Defender's budget.
Speaker Dini remarked he would vote for the motion, but noted Nye and Esmeralda Counties have not yet reported back and the committee may need to reopen the budget. Mr. Stevens clarified if Nye and Esmeralda Counties do not report back before the Legislature adjourns, the change could be made at an IFC meeting.
Mr. Humke asked if page three of EXHIBIT G reflects the adjustments to the budget's expenditure side. Mr. Stevens indicated it reflects the closing sheets if the motion was passed. He noted FY94 costs are less than FY95 costs because three months are already built into The Executive Budget and assumed the current county participation through September 30, 1994. Mr. Humke inquired if all the positions had been reviewed by staff. Mr. Stevens indicated they had been reviewed and discussed with the Budget Division. Staff recommends those listed on page three.
THE MOTION CARRIED UNANIMOUSLY BY VOICE VOTE.
BUDGET CLOSED.
* * * * *
OFFICE OF PROTECTION AND ADVOCACY -- PAGE 1095
MENTALLY ILL INDIVIDUALS PROGRAM -- PAGE 1099
Mr. Ghiggeri explained a supplemental spending plan had been provided by the agency to expend additional federal funds within the next biennium. He noted the plan had been reviewed and approved by the Budget Division. He stated The Executive Budget had placed the division in the proposed Department of Employment, Training and Rehabilitation, but information has been provided which indicates it could cause a conflict and it was suggested the division be placed within the proposed Department of Business and Industry.
* * * * *
MR. MARVEL MOVED TO CLOSE THE OFFICE OF PROTECTION AND ADVOCACY AND MENTALLY ILL INDIVIDUALS PROGRAM BUDGET ACCOUNTS AS RECOMMENDED BY THE STAFF.
MR. HUMKE SECONDED THE MOTION.
Mr. Spitler voiced his extreme disappointment over grants being held for a long time when there is a need. He recommended a letter of intent be included to indicate these grants should not held as in the past.
MR. MARVEL AND MR. HUMKE AGREED TO AMEND TO MOTION TO INCLUDE SENDING A LETTER OF INTENT TO THE AGENCY.
Mrs. Williams clarified whatever monies are placed into the reserve cannot be carried over and would revert to the federal government. She emphasized the agency cannot just keep the money. She concurred with Mr. Spitler and stated the money is there and it should be used for the purposes for which it is intended.
Mr. Ghiggeri explained the closing sheets prepared by staff based on the information provided indicate an ending reserve of $45,000 in the Office of Protection and Advocacy and $43,000 in the Mentally Ill Individuals Program. He stated correspondence provided by Mr. Christensen has indicated as need arises he will approach IFC to move it and use it.
Ms. Giunchigliani clarified the committee is voting to close the budget as recommended by staff for both the OPA and MIIP budgets and the letter of intent will basically state "use it or lose it". Mr. Ghiggeri added the letter of intent will also indicate to the agency should additional federal funds be allocated over the interim, the agency should not hold the funds, but should approach IFC with a work program to utilize the funds to provide needed services.
THE MOTION CARRIED UNANIMOUSLY BY VOICE VOTE.
BUDGET CLOSED.
* * * * *
Chairman Arberry adjourned the hearing at 10:05 a.m.
RESPECTFULLY SUBMITTED:
_________________________
Kerin E. Putnam
Committee Secretary
??
Assembly Committee on Ways and Means
May 13, 1993
Page 1