MINUTES OF THE
ASSEMBLY COMMITTEE ON WAYS AND MEANS
Sixty-seventh Session
May 21, 1993
The Assembly Committee on Ways and Means was called to order by Chairman Morse Arberry, Jr., at 7:45 a.m., on Friday, May 21, 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
ASSEMBLY BILL 314- Makes various changes regarding appropriation of public waters and increasing certain fees assessed by state engineer.
Mr. Mike Turnipseed, State Engineer, explained, due to budget reductions, staffing levels in the Division of Water Resources had dropped by seven positions in the current biennium and would drop an additional five positions in each year of the coming biennium. As a result, the division was no longer able to collect the number of fees which had been collected in the past. AB 314 was drafted as a measure to adjust the fee structure in order to collect enough revenue to offset the reduction in number of fees assessed.
Mr. Turnipseed requested AB 314 be amended to allow the State Engineer to issue oral rulings on applications.
Mr. Marvel asked if the increased fee revenue would fund the hearings officer position. Mr. Turnipseed indicated all fee revenue would be deposited into the General Fund. Presumably, AB 314 would generate enough fee revenue to fund the current 10 positions and the seven positions which were lost during the budget cuts, one of which was a hearings officer.
Mr. Marvel asked if the increase of the Humboldt River assessment would adequately fund the distribution system. Mr. Turnipseed replied the Humboldt River assessments were adequate. In fact, the full increase would probably not have to be assessed.
Assemblyman Rick Bennett, Assembly District 16, noted the bill contemplated quarterly reports by the State Engineer to the Interim Finance Committee regarding the performance of the Division. He noted the people who would be paying the increased fees had expressed concern that the funding go to the State Engineer rather than into the General Fund for use elsewhere. He suggested the committee issue a letter of intent to that effect to the Executive Branch.
Chairman Arberry asked Mr. Bennett if he agreed with the proposed amendment. Mr. Bennett said he had no problem with the amendment.
Mr. Stan Warren, representing Sierra Pacific Power Company, indicated the bill had been drafted with the cooperation of people in the water industry, the State Engineer and the Legislature. He encouraged passage of the bill and personally endorsed Mr. Bennett's suggestion to issue a letter of intent.
SENATE BILL 52 - Allows constitutional officers to submit budgets directly to Legislature.
Senator Hal Smith, Clark Senatorial District 1, said he introduced SB 52 because he believed it was appropriate that constitutional officers be required to submit their unamended budgets to the Legislature for consideration.
Ms. Tiffany asked if bill drafts by constitutional officers were covered by this bill. Senator Smith replied a separate bill addressed that subject.
Chairman Arberry called for public testimony.
Mr. Darrel Daines, State Controller, introduced Mr. Brian Krolicki of the State Treasurer's Office. He noted the Treasurer, the Secretary of State, the Attorney General and the Lieutenant Governor were unable to attend this hearing but they were aware of the bill and had no objections to it.
Mr. Daines explained the founders of both the federal and state constitutions had established tripartite forms of government with each branch entrusted with powers not delegated to the others. Elected officials answered to the electorate, not to each other. Under a strict interpretation of the constitution, NRS 353.210 3., relating to agencies exempted from submitting proposed budgets to the Budget Division, need not exist except as it applied to the Public Employees Retirement System. Since the statute did exist; however, the simplest solution would be to amend it to include the constitutional officers of the Executive Branch in the group exempted from submitting their budgets to the Budget Division. He expressed the opinion the constitutional officers should be treated in the same manner as the Judicial Branch and the Legislature.
Mr. Daines noted the Governor argued he was charged with submitting a balanced budget to the Legislature and, therefore, must have control over the budgets. If this was true, the Governor would have to have control over the judiciary and legislative budgets as well. He pointed out the combined budgets of the constitutional officers represented approximately 1 percent of the total General Fund budget and had only a minuscule effect on the total Executive Budget.
Mr. Daines said the Legislature was capable of evaluating the budgets of the constitutional officers. The constitutional officers should be allowed to present and justify their budgets directly to the Legislature without the prior intervention and prejudice of the Budget Division. He noted the public would not tolerate fiscal irresponsibility on the part of its elected officials.
Mr. Daines stated SB 52 was one of several pieces of legislation proposed to exempt elected officials from answering to appointed employees of the Governor. He respectfully requested the committee's approval of the bill.
Mr. Krolicki said the Treasurer felt strongly about this bill. The Treasurer believed it was inappropriate for the Governor's appointees to edit the Treasurer's budget before it was submitted to the Legislature. On behalf of the Treasurer, he urged passage of SB 52.
Mr. P. Forrest "Woody" Thorne, Deputy Budget Administrator, Budget Division, stated the administration was opposed to SB 52. He noted while the Legislature and the judiciary were separate branches of government, the constitutional officers were part of the Executive Branch, of which the Governor was the chief executive officer. The Governor was responsible for the submission of a balanced budget to the Legislature and separate submissions by the constitutional officers would limit the Governor's ability to do so. He pointed out the budgets of the constitutional officers were treated more deferentially than the state agency budgets. In addition, the constitutional officers appeared before the Legislature to present their budgetary needs.
Mr. Spitler asked if the Budget Division also approved bill draft requests submitted by the constitutional officers. Mr. Thorne said bill draft requests were submitted to the Governor. He noted there was legislation pending to allow constitutional officers to submit bills directly to the Legislature. The Administration did not oppose that legislation.
Mr. Spitler inquired whether the pending legislation would also apply to appropriation requests which would impact the budget. Mr. Thorne said he believed bills which affected the Executive Budget would have to be approved by the Executive Branch.
MR. DINI MOVED AMEND AND DO PASS ON SB 52 WITH A LETTER OF INTENT.
MR. MARVEL SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
BUDGET CLOSINGS
DEPARTMENT OF MINERALS - PAGE 503
Mr. Stevens stated this budget had been held to allow fiscal staff time to assess whether any changes would be required as a result of pending legislation (AB 263 and AB 422) to change the revenue collection structure within the Department of Minerals. He noted both AB 263 and AB 422 had passed and Department of Minerals staff indicated no additional adjustment was required in the budget.
Mr. Stevens said the main concern expressed by the Department of Minerals was the targeted deletion of the deputy director position for reorganization savings. He also noted vacancy savings in this account amounted to approximately 30 percent of payroll.
MR. MARVEL MOVED TO AMEND THE DEPARTMENT OF MINERALS BUDGET TO RESTORE THE DEPUTY DIRECTOR POSITION AND CLOSE THE BUDGET AS AMENDED.
MR. HELLER SECONDED THE MOTION.
Mr. Marvel pointed out there was no General Fund money in the Department of Minerals budget. The account was entirely industry funded.
THE MOTION CARRIED UNANIMOUSLY. MR. DINI AND MR. PRICE WERE ABSENT.
BUDGET CLOSED.
EHHS ADMINISTRATIVE SERVICES - PAGE 613
Mr. Stevens said fiscal staff recommended some adjustments to this account. He explained $57,000 was included in this account for dues in national organizations. That $57,000 was previously added to the Education budget by this committee. Therefore, $57,000 had to be deleted from this account. In addition, this budget included reorganization savings totalling $121,154 in the first year of the biennium and $162,242 in the second year. If any of the positions targeted for deletion were restored, the equivalent value of the position would have to be added to vacancy savings and deleted from reorganization savings.
Mr. Stevens stated another issue was where the Director, Purchase of Social Services position should be located. The Executive Budget recommended including the position within the Director's office. The 1991 Legislature had moved the position to the Welfare Division but the Administration had immediately transferred it back to the Division of Child and Family Services.
Mrs. Evans explained the 1991 Legislature had felt strongly the position should not be in the Director's office; however, upon adjournment of the session, the position was relocated by the Administration. She said she expected history would repeat itself if the Legislature attempted to move the position again.
Mr. Stevens said fiscal staff had no recommendation regarding the placement of the Director, Purchase of Social Services position. He explained the Director of the Department of Human Resources believed the position should be within his office. Historically, the position had been located within the Welfare Division although it had been transferred to the Division of Child and Family Services following adjournment of the 1991 legislative session. He noted the Administration had the statutory authority to move positions within divisions.
MS. GIUNCHIGLIANI MOVED TO AMEND THE EHHS ADMINISTRATIVE SERVICES BUDGET TO DELETE $57,000 WHICH WAS PREVIOUSLY TRANSFERRED TO THE DEPARTMENT OF EDUCATION AND CLOSE THE BUDGET AS AMENDED.
MR. SPITLER SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
BUDGET CLOSED.
HEALTH RESOURCES COST REVIEW - PAGE 619
Mr. Stevens stated fiscal staff had received correspondence from the Director's office indicating they were statutorily required to examine major hospitals through independent audits on a regular basis at least annually. The Executive Budget did not address this requirement. Fiscal staff recommended adjusting the budget to provide funding for those audits in the amount of $100,000 in each year of the biennium. There would be no General Fund cost as a result of this adjustment.
MR. PERKINS MOVED TO AMEND THE HEALTH RESOURCES COST REVIEW BUDGET TO ADD $100,000 EACH YEAR FOR AUDIT EXPENSES AND CLOSE THE BUDGET AS AMENDED.
MR. MARVEL SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
BUDGET CLOSED.
PURCHASE OF SOCIAL SERVICES - PAGE 621
Mr. Stevens said fiscal staff had no recommendations regarding this account.
MS. TIFFANY MOVED TO CLOSE THE PURCHASE OF SOCIAL SERVICES BUDGET AS RECOMMENDED BY THE GOVERNOR.
MRS. WILLIAMS SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
BUDGET CLOSED.
OFFICE OF EQUAL RIGHTS - PAGE 1103
EQUAL EMPLOYMENT OPPORTUNITY - PAGE 1107
Mr. Stevens requested guidance from the committee regarding these accounts. He noted the Senate Finance Committee had spent substantial time reviewing this account. The Senate Finance Committee had requested the Director to submit a revised budget. The revision submitted by the Director was not in a format which could be analyzed and the Senate Finance Committee was still awaiting additional information from the agency. This committee had a number of discussions regarding the agency's work backlog and possible need for additional staff. He explained it had been frustrating for both fiscal staff and Budget Division staff to work on this budget because necessary information had not been forthcoming from the agency. He said it was becoming increasingly difficult for fiscal staff to prepare coherent input for the committee regarding this budget.
Chairman Arberry asked if the agency had offered any reason for the delay in providing information. Mr. Stevens said most of the research had been done by the Senate Finance Committee. He asked for a committee directive.
Chairman Arberry inquired about the number of additional staff members the agency had requested. Mr. Spitler answered the agency had requested three additional investigators and two clerical positions.
Mr. Marvel noted the legislative auditors had also experienced difficulty getting information from the agency. He suggested it might be necessary to subpoena the Executive Director to appear before the committee and provide the requested information.
Mrs. Evans said she agreed with Mr. Marvel that the Executive Director should be requested to appear before the committee at a time certain and present the information requested. If he did not appear, the budget would be deleted.
Mr. Humke also expressed agreement with Mr. Marvel and Mrs. Evans. He said the committee needed answers to past budgetary questions in order to move forward.
Mr. Perkins asked if the Senate Finance Committee had been successful in obtaining any information from the agency. Ms. Jeanne Botts, Program Analyst, responded the Executive Director had testified before the Senate Finance Committee that he had provided information regarding statutory changes needed to secure HUD funding to the Attorney General in September of 1992. The Deputy Attorney General said he had not received the information in September but prepared an appropriate legislative package within 24 hours when he was made aware of the problem in March of 1993. The Senate Finance Committee had also requested the budget revisions be submitted by the agency prior to the end of March. The budget revisions were finally presented to the committee in early May, at which time the agency presented a request for $45,000 for computer equipment to process cases. She noted the Budget Division and a representative from Data Processing had been trying to work with the agency to determine whether the computer equipment would be beneficial but were also experiencing difficulty obtaining information from the agency. Additionally, the Senate Finance Committee had been unsuccessful in obtaining from the agency advice regarding how varying staffing levels would affect processing of the case backlog.
Ms. Giunchigliani said she had worked with both the office and the Commission over the years. She noted the agency had never been properly funded to effectively handle its caseload. Attorneys were now typically taking equal rights matters to the courts for resolution. She suggested this office could be eliminated without affecting people's rights.
Chairman Arberry expressed concern about whether the agency could effectively perform its function even if additional staff was provided. He asked Budget Division for comments regarding the general performance of the Executive Director.
Mr. Thorne said the Budget Division staff had experienced problems similar to those experienced by fiscal staff. He explained the Executive Director had been appointed by the Governor. He was uncertain of the status of a performance evaluation.
Ms. Giunchigliani noted the agency had experienced problems under the previous Executive Director as well. She said the Legislature had created an agency without teeth and it was now not functioning at all. She suggested eliminating the budget.
Mrs. Chowning said she had talked with the Commission members, who had indicated they wished to provide assistance to the agency but the Executive Director had not communicated with them. She stated the committee should either fund the additional positions with the belief that would help the agency perform its function or disband the agency.
Mr. Humke indicated there was a federal agency which could assume this function in the absence of the Equal Rights Commission. He noted some legislators were very reluctant to let that happen given the prior history of how the federal agency performed in the past. He suggested immediate deletion of the budget pending receipt of satisfactory answers from the Executive Director.
Chairman Arberry expressed appreciation for Mr. Humke's concern but said he did not want to take that action until the Executive Director was given another opportunity to appear before the committee.
Mr. Marvel asked if the Executive Director position was classified or unclassified. Mr. Stevens said the position was unclassified.
COMSTOCK HISTORIC DISTRICT - PAGE 1151
Mr. Stevens noted there was no funding for Board and Commission salaries in this account. He explained the Board met monthly and the agency had requested $5,860 in each year of the biennium. In addition, the committee had previously discussed whether fees could be generated in this account. He informed the committee there was statutory authority for the Comstock Historic District Commission to set a fee schedule and charge for reviewing projects within the district. If fees were imposed and collected, one-half of the fee revenue would be deposited to this account and one-half would go into restoration of the Fourth Ward School. The agency indicated 100 projects could be reviewed annually, generating approximately $2,000 per year, $1,000 of which could offset the General Fund appropriation in this account.
Mr. Stevens reminded the committee the agency had testified there was no funding for printing their walking/driving tour brochures. If the committee wished to fund this expense, an additional $12,000 would be required over the biennium.
MR. DINI MOVED TO AMEND THE BUDGET TO INCLUDE BOARD AND COMMISSION SALARIES.
MR. MARVEL SECONDED THE MOTION.
Mr. Dini noted the commission was created in 1969 by the Legislature to ensure remodeling was consistent with the historic motif of the area. Fees had not been charged because they were difficult to assess and amounted to such an insignificant sum.
THE MOTION CARRIED UNANIMOUSLY.
STATE LANDS - PAGE 1561
Mr. Stevens indicated the State Lands budget would be covered in the Natural Resources Subcommittee recommendations.
NATURAL RESOURCES SUBCOMMITTEE REPORT
Mr. Dini reported, in keeping with the Governor's wishes to limit the number of separate departments, the subcommittee recommended the Division of Environmental Protection not be made a separate department and that the Department of Wildlife be consolidated into the Department of Conservation and Natural Resources as a separate division, rather than as part of the Division of State Parks, as recommended by the Governor. The Agency for Nuclear Projects was also recommended to be consolidated into the Department as a separate division. The subcommittee did not recommend consolidating the Divisions of Lands and Forestry.
In order to save the cost of new stationery, forms and signs and save bill drafting time, the subcommittee recommended the name of the Department of Conservation and Natural Resources remain unchanged. Mr. Dini noted the Governor had proposed the name be shortened to the "Department of Natural Resources."
The subcommittee recommended the Department of Wildlife retain its current boat registration duties. The employees which the Governor recommended be transferred, along with boat registration duties to the Department of Motor Vehicles, would remain in Wildlife. A new state-funded land use planner position, which the Governor had placed in Wildlife to coordinate the development of a statewide environmental resources plan, was recommended for transfer from Wildlife to the Department Director's office in order to facilitate interaction between that position and all divisions within Conservation and with other agencies.
Since State Parks was recommended to remain a separate division, the subcommittee recommended restoring the administrator position. The Governor had recommended a total of 15 positions be deleted from the State Parks budget. Since the division's budget was cut significantly, the subcommittee reviewed alternative sources of revenue in order to restore several of State Parks' maintenance and field personnel. Suggested alternative sources of revenue included a larger share of the motorboat fuel tax, construction management fees earned for the staff's work on "Question 5" bond projects and increases in park user fees. The recommended budget would restore eight employees to the division.
Under the Governor's proposed reorganization plan, the Division of Conservation Districts would be combined into the Division of State Lands and its budget abolished. The subcommittee recommended the division be reinstated. Under the Governor's plan, the division's professional staff member was recommended for transfer to State Lands and his secretary's position would be eliminated. The subcommittee recommended the secretary be retained at 30 hours per week. Mr. Dini pointed out this 2-person office worked not only with the 7-member State Conservation Commission but also with 29 locally elected conservation district boards. The division was responsible for coordinating the activities of the local boards and staffing the State Conservation Commission. He said the office could become more important as the result of federal action regarding wetlands projects.
Mr. Dini explained the Governor recommended the State Parks Advisory Board, the Advisory Board for Water Planning, the Board of Wildlife Commissioners and the State Conservation Commission be consolidated into a new Natural Resources Board. The subcommittee recommended retaining two regulatory entities: the 9-member Board of Wildlife Commissioners and the 7-member State Conservation Commission. Both boards were recommended to retain their current composition and number of members.
Mr. Dini reported, since the 13-member Water Planning Board was comprised of local government and utility company representatives, the subcommittee recommended maintaining it. The Board of Forestry and Fire Control and the State Multiple Use Advisory Committee on Federal Lands, however, were recommended to be consolidated with the Parks Advisory Board into the new Natural Resources Board. Additionally, the subcommittee recommended reviewing the feasibility of combining the State Conservation Commission and the Board of Wildlife Commissioners into the Natural Resources Board over the coming biennium.
Mr. Dini said the Executive Budget failed to provide salaries for any of the boards or commissions other than the Board of Wildlife Commissioners. The subcommittee recommended all existing boards in the agency, except the three recommended for elimination, retain their existing makeup.
Mr. Dini noted the Governor recommended the Division of Water Planning be consolidated in the department Director's office and the water planning economist position be eliminated. This position had developed a valuable data base used to assess the economic impact of water policy decisions. The subcommittee recommended restoring the economist position and retaining Water Planning as a separate division within the department.
Mr. Dini stated the Governor proposed eliminating 17.5 positions from the Division of Water Resources, or 34 percent of the agency's workforce. Seven positions were abolished during the 1992 budget cuts, which resulted in a 5-year backlog of protested applications and dam inspections. Adjudication activities in the Division had ceased. In an attempt to maintain the agency and to reduce the considerable backlog, the subcommittee recommended all 17.5 positions targeted for elimination be retained. The division informed the subcommittee that sufficient General Fund revenue would be earned to offset the cost of the additional 17.5 positions if the fee increases contained in AB 314 were approved.
The subcommittee recommended transfer of responsibility for Marlette Lake and the Carson water treatment plant from General Services to the Division of Water Resources.
Mr. Dini explained the Governor recommended several programs from other agencies be transferred to Environmental Protection. The subcommittee recommended only the Agency for Nuclear Projects and the recycling program from the Office of Community Services be transferred to the Department of Conservation and Natural Resources.
The following functions were not recommended for transfer to Environmental Protection:
1. Emission control program from the Department of Motor Vehicles;
2. Gas pollution standards program from the Department of Agriculture;
3. Consumer health protection program from the Health Division;
4. Radiological health program from the Health Division; and
5. Radioactive material disposal trust fund.
Mr. Dini informed the committee the total cost to the General Fund of the changes outlined would be $807,079 in fiscal year 1993-94 and $966,877 in fiscal year 1994-95. The cost would be offset by an annual increase of $807,265 in the amount the Division of Water Resources would be able to collect as a result of fee increases contained in AB 314 and from utilizing a larger staff to process permit applications.
Mr. Dini said he appreciated the efforts of the subcommittee members.
MR. DINI MOVED TO CLOSE THE NATURAL RESOURCES BUDGETS PURSUANT TO THE RECOMMENDATIONS OF THE NATURAL RESOURCES SUBCOMMITTEE, WITH THE UNDERSTANDING THE BUDGETS MIGHT BE SUBJECT TO REOPENING PENDING ADJUSTMENTS TO REVENUE PROJECTIONS.
MR. MARVEL SECONDED THE MOTION.
Ms. Giunchigliani asked how much the construction management fees for Question 5 projects would amount to. Ms. Botts said the State Parks budget had not yet been closed, pending receipt of additional information. The agency indicated it could earn approximately $138,000 in the first year of the biennium and $128,000 in the second year based on the Budget Director's testimony that she would sell bonds in April. The bond sale did not occur and it was unknown when the Budget Division would sell the remainder of the bonds. The subcommittee recalculated the projected construction management fee revenue to $69,200 in the first year and $97,300, assuming the bonds would be sold sometime prior to January 1994. She said the Parks Division had also indicated it could generate an additional $184,258 in the first year of the biennium and $206,258 in the second year by increasing fees or collecting fees not previously collected.
Ms. Botts noted there had been a question about the motorboat fuel tax. The Department of Taxation calculated $2.28 million would be deposited to the Parks and Wildlife budgets in the coming year. Fiscal staff projected Parks and Wildlife expenditures of motor boat fuel tax revenue would amount to $2.5 million in the coming year. She noted the Senate Finance Committee had expressed some concern about Wildlife losing revenue to Parks.
Ms. Giunchigliani asked if the subcommittee had a fall-back position. Mr. Dini said he had requested the Parks Division to recalculate projected grazing fees because earlier projections had not taken into account three new grazing areas on the Carson River. He stated there was no dispute between Wildlife and Parks regarding the motorboat fuel tax revenue. He expressed the belief the Question 5 bonds would have to be sold now that the grazing property had been purchased.
Ms. Botts pointed out $25,000 of the projected grazing fee revenue was for the Carson ranches. Mr. Stevens suggested adjustments to the budget could be made by increasing or decreasing vacancy savings or seasonal salaries based on any changes in construction management fee revenue which might result from the bond sale.
Ms. Giunchigliani expressed concern about losing funding for seasonal help for State Parks. She said she hoped this budget could be revisited if problems developed. Mr. Dini said it was essential to maintain adequate staff in the state parks. He suggested revenues could be up this year since there would be water in state reservoirs.
Mr. Heller said he planned to support this motion but would abstain from voting on the Water Planning budget.
THE MOTION CARRIED UNANIMOUSLY. MR. HELLER ABSTAINED FROM VOTING ON THE WATER PLANNING BUDGET.
BUDGETS CLOSED.
Ms. Botts explained the adjustments to the Environmental Protection budgets which would be required by the subcommittee's recommendation to move the recycling program from the Office of General Services. She stated the Environmental Protection central administrative account was supported by assessments against other Environmental Protection budget accounts. Throughout the Executive Budget, transfers from the Environmental Protection accounts did not balance. The adjustments were to correct errors and to allow for the addition of the recycling program. The Executive Budget added miscellaneous revenue from unidentified sources. Fiscal staff recommended transferring amounts in miscellaneous revenue to the appropriate federal grant and other revenue sources.
Ms. Botts noted the expenditures for the recycling program were reduced from those in the Executive Budget. She explained the Executive Budget projected expenditures greater than tire fee revenue could support.
Ms. Botts added the Governor had proposed making Environmental Protection a separate department and included funding for a department director's salary. That amount was removed and replaced with less funding for an administrator's salary.
CRIME PREVENTION - PAGE 30
Mr. Stevens said fiscal staff had no comments about this account.
Mr. Dini commented this program was worth funding.
MR. DINI MOVED TO CLOSE THE CRIME PREVENTION AS RECOMMENDED BY THE GOVERNOR.
MR. PERKINS SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY. MS. GIUNCHIGLIANI, MR. MARVEL AND MR. PRICE WERE ABSENT.
PURCHASING - PAGE 236
Mr. Stevens noted the Administration had revised the Purchasing Division budget. Fiscal staff had also evaluated the effect of continuing to operate Purchasing in its current fashion.
Mr. Stevens said the Executive Budget proposed funding the Purchasing Division through assessments on other agency accounts. Purchasing was currently funded by administrative assessments of 5 percent, up to a maximum of $800.
Chairman Arberry asked how the Senate Finance Committee had closed this budget. Mr. Stevens responded the Senate Finance Committee had basically trimmed the purchasing function back by reducing personnel and continued the current funding mechanism.
Mr. Thorne stated, for the record, the Budget Division was opposed to the Senate recommendation. He explained the Governor's revised budget had satisfied the concerns of both the Governor and those who were opposed to the broader approach originally proposed. The Senate Finance Committee had reverted to the existing fee structure, eliminated the purchasing assessment and required Purchasing to continue to perform all of its current accounting duties with half the current staff. He said there was no way the Purchasing structure proposed by the Senate Finance Committee could work.
Mr. Stevens said the Senate Finance Committee proposed accepting the revised budget developed by the Purchasing Division, which would result in a total of 17 positions in fiscal year 1994-95 compared to the 11 positions recommended by the Executive Budget. The existing administrative charge funding mechanism would be retained. The purchasing assessment funding mechanism recommended in the Executive Budget would be deleted and reversed in all affected budget accounts. The Purchasing Revolving Fund balance of $1,250,000 would remain and would not revert to the General Fund. Direct purchasing authority would remain at $5,000, with the Purchasing Division retaining the authority to increase the limit on an agency-by-agency basis. The purchasing warehouses located in Reno and Las Vegas would continue to operate but the Purchasing Division would gradually reduce the number of supply items maintained in the warehouse inventory. The Purchasing Division would enter into contracts with vendors for delivery of office supplies directly to individual agencies. The Senate Finance Committee recommendations would not require any changes to the existing purchasing statute or purchasing policies. The Senate Finance Committee recommended 10 positions in the Commodity Food budget in fiscal year 1994-95 compared to 6.5 positions recommended in the Executive Budget. The Commodity Food Program would assume the warehouse distribution function and related position and shipping costs would be supported by transfers from the Purchasing and Surplus Property accounts.
Mrs. Williams stated she would vote no on the motion to concur with the Senate.
MR. MARVEL MOVED TO CONCUR WITH THE SENATE FINANCE COMMITTEE RECOMMENDATION.
MS. TIFFANY SECONDED THE MOTION.
THE MOTION CARRIED. MRS. CHOWNING, MR. DINI AND MRS. WILLIAMS WERE OPPOSED. MS. GIUNCHIGLIANI WAS ABSENT.
PERSONNEL DIVISION - PAGE 252
Mr. Stevens explained this committee and the Senate Finance Committee, in joint session, indicated Personnel should retain departmental status. Therefore, the committee needed to decide whether Personnel should stand alone or become a division of the Department of Administration, as proposed in the Executive Budget. If the committee determined to maintain Personnel as a stand-alone department, a number of adjustments to the budget would have to be considered. He asked for the committee's guidance on this determination.
MR. MARVEL MOVED TO RETAIN THE DEPARTMENT OF PERSONNEL AND REJECT THE GOVERNOR'S PROPOSAL TO MAKE PERSONNEL A DIVISION WITHIN THE DEPARTMENT OF ADMINISTRATION.
MS. TIFFANY SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY. MS. GIUNCHIGLIANI WAS ABSENT.
Mr. Stevens said, in light of the committee's decision, fiscal staff recommended retaining five positions proposed by the Governor to be eliminated for reorganization savings. The associated personnel costs would be approximately $200,000 in the first year of the biennium and $282,000 in the second year. Minor amounts (approximately $1,500 per year) in operational savings would also have to be added back to the budget. In addition, adjustments would have to be made between state-owned building rent and non-state-owned building rent.
Mr. Stevens noted an item in the operating category would have funded a portion of an administration account within the Department of Administration. Those transfers of $7,100 in the first year and $7,600 in the second year would have to be eliminated.
Mr. Stevens stated the largest adjustment would be in the data processing category. Year-to-date expenses for data processing were approximately $700,000. The Executive Budget included $514,000 in the first year of the biennium and $472,000 in the second year. Fiscal staff recommended adding $300,000 per year to the budget for data processing to provide for routine maintenance of the personnel and payroll computer system and special projects such as the Benzler case or Fair Labor Standards Act requirements.
Mr. Stevens said fiscal staff recommended transferring the personnel assessments proposed in the Executive Budget to the Personnel budget, thus increasing revenue $197,000 in the first year and $343,000 in the second year.
Mr. Stevens added miscellaneous revenue projected in the Executive Budget was below what was currently being collected. Fiscal staff recommended increasing miscellaneous revenue by approximately $20,000 in each year.
Mr. Stevens said if the recommended actions were taken a reserve balance of approximately $340,000 would remain in the second year of the biennium.
MR. MARVEL MOVED TO AMEND THE PERSONNEL DIVISION BUDGET TO INCORPORATE THE RECOMMENDATIONS OF FISCAL STAFF AND CLOSE THE BUDGET AS AMENDED.
MS. TIFFANY SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY. MS. GIUNCHIGLIANI WAS ABSENT.
BUDGET CLOSED.
STATE UNEMPLOYMENT COMPENSATION - PAGE 262
Mr. Stevens indicated he had no comments on this budget.
MRS. WILLIAMS MOVED TO CLOSE THE STATE UNEMPLOYMENT COMPENSATION BUDGET AS RECOMMENDED BY THE GOVERNOR.
MR. PERKINS SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY. MS. GIUNCHIGLIANI WAS ABSENT.
BUDGET CLOSED.
VICTIMS OF CRIME - PAGE 315
Mr. Stevens noted there was a difference between the court administrative assessment projected by the Court System and that utilized in the Executive Budget. Since fiscal staff had used the Court's projection formulas in closing the budget, he believed it was appropriate to change the administrative assessment projection to the Court's number. The adjustment would increase administrative assessments by $52,000 in the first year of the biennium and $100,000 in the second year to be placed in the payments to victims category.
Mr. Stevens added the Division of Hearings and Appeals was utilized by the Victims of Crime Program to hear appeals. Fiscal staff was assuming the Division of Hearings and Appeals would survive any changes resulting from AB 316 (the State Industrial Insurance System bill) but if for some reason that function was not retained, this budget would have to be revisited.
MR. PERKINS MOVED TO AMEND THE VICTIMS OF CRIME TO INCREASE ADMINISTRATIVE ASSESSMENTS AND CLOSE THE BUDGET AS AMENDED.
MR. SPITLER SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY. MS. GIUNCHIGLIANI WAS ABSENT.
BUDGET CLOSED.
REAL ESTATE ADMINISTRATION - PAGE 404
Mr. Stevens noted land companies fees were not sufficient to cover the costs of administering the program. The committee needed to consider whether those fees should be raised.
Mr. Spitler asked if the fees would remain competitive if they were raised in order to cover costs. Mr. Stevens reported the Real Estate Division indicated there would be no significant negative impact from increasing fees. Mr. Spitler said it was imperative the fee revenue be increased to cover the cost of the service.
Mr. Stevens explained the Real Estate Division proposed increasing fee revenue $84,605 in the first year of the biennium and $87,005 in the second year. In addition, the Real Estate Division proposed developing a computer program to assist with land company filings. The cost of the program would be $12,500 plus $6,590 for related equipment in the first year of the biennium and $3,500 in the second year for ongoing operational costs. He suggested, if the committee wished to statutorily increase fees, the appropriation for the computer program be included in the same bill.
Mr. Spitler inquired if any General Fund money would be involved. Mr. Stevens said the additional fee revenue would be deposited to the General Fund and the appropriation for the computer program would be deducted from the General Fund. The net increase to the General Fund would be approximately $65,000 to $70,000.
Mr. Stevens also pointed out this account contained a microcomputer specialist. If this account was closed in a manner similar to other accounts with microcomputer specialist positions, the microcomputer specialist position would be placed back into the budget with corresponding adjustments to the data processing category. Additionally, an accountant position was targeted for reorganization savings.
Chairman Arberry asked how long the accountant position had been in the budget. Mr. Stevens said he did not know when the position was established. Mr. Marvel asked if the position was filled presently. Mr. Stevens responded affirmatively.
Mr. Humke noted three people were performing the land companies registration function. He questioned whether all three positions were necessary. Mr. Stevens said the Real Estate Division had indicated that was the staff needed to administer the program.
Mr. Humke noted the proposed fee increase would result in an excess of $19,844 in fiscal year 1994-95. Mr. Stevens explained fees were not raised every legislative session, and over the coming years, the administrative costs would be increasing to the point where they would once again become greater than fee revenue. Mr. Humke suggested administrative costs could be reduced.
Mr. Spitler suggested the Legislature should develop an omnibus bill which based periodic fee increases throughout state government on some logical formula.
MR. SPITLER MOVED TO AMEND THE REAL ESTATE ADMINISTRATION BUDGET TO INCREASE FEES AND RETAIN THE ACCOUNTANT POSITION AND CLOSE THE BUDGET AS AMENDED.
MR. MARVEL SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY. MR. DINI WAS ABSENT.
BUDGET CLOSED.
BUSINESS AND INDUSTRY ADMINISTRATION - PAGE 512
Mr. Stevens explained fiscal staff for both this committee and the Senate Finance Committee had attempted to develop an alternative to the Governor's recommendation for this account. He noted fiscal staff had been requested to locate funding to retain the deputy director of the Department of Commerce (now the Department of Business and Industry).
Mr. Stevens pointed out the committee had previously eliminated a management analyst position from this account. If the management analyst position was eliminated, only the director position would remain in this account. Fiscal staff suggested adding clerical support and a one-half deputy director position. The other one-half deputy director position would be added to the Housing Division budget.
Mr. Stevens also noted the purchasing assessment recommended by the Governor had been eliminated by earlier committee action.
Mr. Stevens explained fiscal staff proposed assessing each agency within the Department of Business and Industry for a portion of the costs in this account. He noted some of those agencies were General Fund accounts. The proposed adjustments would require a General Fund appropriation for the General Fund agencies within the Department of $35,295 the first year of the biennium and $42,411 the second year. Those amounts were less than the Governor's recommendation. Administrative costs assessed to non-General Fund agencies would total $92,373 in the first year and $211,045 in the second year.
Mr. Stevens reported fiscal staff suggested increasing bond proceeds approximately $10,000 the first year and $14,000 the second year.
Mr. Stevens said if the committee adopted the fiscal staff recommendations, support costs for the deputy director position would have to be added to the budget.
Mr. Thorne noted the Governor recommended moving a number of administrative positions and corresponding funding sources into this budget from other agencies.
Ms. Giunchigliani asked if agencies would be assessed administrative costs even though they would receive no service in return for the assessment. Mr. Stevens explained, in theory, the department director would be providing a service to the agencies which he or she supervised. Assessments for those services were based on the number of positions within the agency.
Ms. Giunchigliani noted the Legislature might not recommend some of the agencies into the Department of Business and Industry. Mr. Stevens stated the budget could be readjusted.
Ms. Giunchigliani pointed out other department heads were funded from the General Fund. She suggested if the Legislature wanted positions, it should fund them properly.
MR. MARVEL MOVED TO AMEND THE BUSINESS AND INDUSTRY ADMINISTRATION BUDGET TO ADOPT FISCAL STAFF RECOMMENDATIONS AND CLOSE THE BUDGET AS AMENDED.
MR. HUMKE SECONDED THE MOTION.
Mrs. Evans noted the Deputy Director of Commerce had served a crucial function in administering the industrial development bond program. She suggested the motion include a letter of intent to retain the deputy director position.
MR. MARVEL AMENDED HIS MOTION TO INCLUDE MRS. EVANS' REQUEST.
MR. HUMKE SECONDED THE AMENDED MOTION.
THE MOTION CARRIED. MS. GIUNCHIGLIANI WAS OPPOSED.
BUDGET CLOSED.
HOUSING - PAGE 441
Mr. Stevens explained one-half of the Deputy Director of Commerce position was currently funded from this account so this would be the logical place to add the other one-half of the deputy director position just added to the Department of Business and Industry.
MRS. WILLIAMS MOVED TO AMEND THE HOUSING BUDGET TO ADD ONE-HALF DEPUTY DIRECTOR POSITION AND CLOSE THE BUDGET AS AMENDED.
MRS. EVANS SECONDED THE MOTION.
Ms. Tiffany pointed out the current deputy director spent very little time working for the Housing Division. She said she had a problem funding a position which did nothing for the division.
Ms. Giunchigliani asked for clarification. Mr. Stevens explained one-half of the deputy director position was currently funded by the Housing Division budget. This action would retain that one-half position intact.
THE MOTION CARRIED UNANIMOUSLY.
BUDGET CLOSED.
COMMITTEE TO HIRE THE HANDICAPPED - PAGE 1116
Mr. Stevens noted the committee had discussed this account previously. The main issue with this budget was gift/donations revenue. The Governor recommended increasing gift/donation revenue or charging for training to increase funding.
Mrs. Williams asked to hold this budget. She said the agency could not generate the increased revenue proposed by the Governor.
Mr. Spitler noted the small businesses receiving the training would not get it if they were required to pay for it. He asked the Budget Division how the new revenue projections were calculated. Mr. Thorne answered he did not recall how the figures had been calculated.
Mr. Spitler stated the agency indicated charging for training was not a viable option. He suggested holding this budget would not resolve the problem.
Ms. Giunchigliani said it was her understanding this agency would be given responsibility for training related to the Americans With Disabilities Act (ADA) and if this was the case, they should be given adequate staff.
Mrs. Williams said the Committee to Hire the Handicapped developed jobs for handicapped people. They did not do ADA training. The Committee had been successful in placing a significant number of handicapped people into the workforce. She said she was not prepared to close this budget.
Chairman Arberry agreed to hold the budget.
Ms. Giunchigliani said the Committee did, in fact, perform plan reviews of ADA projects.
There being no further business, the meeting was adjourned at 10:55 a.m.
RESPECTFULLY SUBMITTED:
_________________________
C. Dale Gray
Committee Secretary
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Assembly Committee on Ways and Means
May 21, 1993
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