MINUTES OF THE

      ASSEMBLY COMMITTEE ON WAYS AND MEANS

 

      Sixty-seventh Session

      June 15, 1993

 

 

The Assembly Committee on Ways and Means was called to order by Chairman Morse Arberry, Jr., at 8:50 a.m., on Tuesday, June 15, 1993, in Room 352 of the Legislative Building, Carson City, Nevada.  Exhibit A is the agenda.

 

 

COMMITTEE MEMBERS PRESENT:

 

      Mr. Morse Arberry, Jr., Chairman

      Mr. Larry L. Spitler, Vice Chairman

      Mrs. Vonne Chowning

      Mr. Joseph E. Dini, Jr.

      Mrs. Jan Evans

      Ms. Christina R. Giunchigliani            (Excused)

      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

     

 

 

 

Chairman Arberry informed the committee they would be briefed on the closing sheets before meeting with the Senate Committee on Finance in order that everyone would be aware of the differences between the committees.

 

MANSION MAINTENANCE - PAGE 5

 

Mr. Stevens remarked the Mansion Maintenance budget had been closed by the assembly according to the governor's recommendation.  The senate closed the budget with funding to replace the dishwasher and provided $15,000 for mansion painting.  The mansion painting was included in the Capital Improvement Projects (CIP) bill.  Mr. Stevens pointed out this committee had not be told about the dishwasher, but an explanation was surely to come this morning.

 

ATTORNEY GENERAL - PAGE 17

 

The senate had closed this budget with funding for the telemarketing fraud unit.  The assembly had done likewise.  The major difference between the committees was under the Maintenance 200 category.  The senate had moved an account clerk recommended in the second year of the biennium into the first year.  Apparently, the attorney general had requested this move from the senate, but had not mentioned the same to the assembly committee. 

 

In addition, Mr. Stevens pointed out, the senate included 60 days of salary savings for all the new positions.  The senate committee felt the agency could not hire the 20 new positions allocated in the budget on July 1, and therefore gave the agency 60 days salary savings because the positions would be phasing in.  The vacancy savings amount was increased by $184,615.

 

The only other change occurred in the enhancements for the telemarketing unit.  The assembly committee added approximately $25,000 for computer equipment.  The senate felt that figure could be reduced somewhat and still provide the same equipment, so they closed with a reduction of $8,000 (provided $17,000).  The remainder of the closures regarding the telemarketing unit have been the same.

 

SPECIAL FUND - PAGE 28

 

Mr. Stevens said the $45,000 figure for telemarketing litigation was the same for both committees.

 

UNIVERSITY OF NEVADA SYSTEM ADMINISTRATION - PAGE 115

 

The assembly added $69,429 in each year in Board of Regents discretionary funds.  Those funds had been included in the system administration account for the last eight to ten years, but had not been recommended by the governor.  The assembly committee added the funds.

 

UNIVERSITY PRESS - PAGE 122

 

Mr. Stevens explained the senate had added an editor for southern Nevada for the university press.  One was authorized by the legislature last session, but the position was given up during budget cuts.  The position had been added by the senate.

 

W.I.C.H.E. ADMINISTRATION - PAGE 172

 

The action by the assembly reduced the legal expense built into the budget for attorney general services.  Mr. Stevens reminded the committee of the cost allocation plan for the state.  If an agency was 100 percent general funded, those costs were included in the attorney general's budget, not each individual agency budget.  The senate did not take the same closing action.

 

W.I.C.H.E. LOAN & STIPEND - PAGE 176

 

This budget was revised by the administration and would extend the physical therapy slots from two to three years.  This would be the last class of physical therapy students in the W.I.C.H.E. program.  The University of Nevada at Las Vegas was beginning a program in the fall of 1993.

 

BENEFIT SERVICES FUND - PAGE 192

 

Mr. Stevens called attention to two differences between the committee closures.  With reference to AB 19, the bill which increased the retired group insurance payment by the state on behalf of retired state employees based on years of service, Risk Management indicated they needed approximately $48,000 to modify their data processing system.  That figure was reflected in the adjustment to data processing contract services in the base budget.

 

The other difference was the senate action based on SB 278.  This bill would allow retired public employees, those from local governments, to be included in the state's group insurance plan, but the public employees would be rated separately.

 

Mr. Humke inquired if this was a different bill than was heard in Ways and Means.  Mr. Stevens replied this was a very different bill.  The assembly heard AB 723 which would allow public employees to come into the plan, and they would be rated with state employees.  Under SB 278, others could come into the plan, but they would be rated separately.  Mr. Marvel asked if there was a fiscal impact.  Mr. Stevens responded no.

 

SENIOR CITIZENS' PROPERTY TAX - PAGE 212

 

Mr. Stevens advised the assembly added funds in this account to retain the proration at the 80 percent level.  He reminded the committee those benefits had been prorated this fiscal year and those amounts were needed to keep the benefits at the current level.

 

PUBLIC WORKS INSPECTION SECTION - PAGE 287

 

The closures appeared much worse than was actually the case, stated Mr. Stevens.  He explained the two major differences.  Maintenance 200 was basically the mothballing of the Lovelock Correctional Center.  There was funding included for maintenance positions, the warden, maintenance of the boilers, extension of warranties on all equipment until the prison was occupied, etc.  Those monies would be paid out of the bond account where some funds remain.  There was correspondence from bond counsel which indicated this utilization of funds was appropriate.

 

PUBLIC WORKS BOARD-ADMINISTRATION - PAGE 288

 

Secondly, Mr. Stevens pointed out at the present time the Public Works Board Administration account was separate from its inspection budget.  The administration account was 100 percent general fund whereas the maintenance account was funded from inspection fees.  The Executive Budget combined those two accounts, and the assembly action separated the two accounts.  There would be an administration account--general fund account and an inspection account--non-general fund source.  This system made the funding easier to track.  The senate did not take that action.

 

BUILDINGS AND GROUNDS - PAGE 294

 

Mr. Stevens remarked the difference between the senate and assembly was an adjustment to vacancy savings--the assembly transferred the reorganization savings into vacancy savings.  The senate restored the affected position, the administrator of the agency. 

 

VICTIMS OF CRIME PROGRAM - PAGE 315

 

The assembly action adjusted the court assessments to the revenue estimate developed by the judicial branch.  The assembly used the judicial branch's revenue estimates to close their budget and felt it was appropriate to make this adjustment based on these figures.

 

REAL ESTATE ADMINISTRATION - PAGE 404

 

Mr. Stevens said there were some very small differences in this budget.  The assembly adjusted operational savings when the microcomputer specialist was brought back, the senate did not.  There was also a small rent adjustment.

 

CONSUMER AFFAIRS - TELEMARKETING - PAGE 433

 

The difference between the committees could be found in the transfer to general fund line item.  The transfer of $7,000-$8,000 in the first year was affected by the data processing reduction in the attorney general's budget.

 

 

 

 

ENERGY CONSERVATION - PAGE 437

 

SMALL BUSINESS - PAGE 508

 

Mr. Stevens pointed out these budgets were interrelated.  The small business association position which had been recommended for deletion had been retained.  Petroleum rebate funds had been used to fund the position, with no general fund cost.

 

POSTSECONDARY EDUCATION REGULATION - PAGE 580

 

The senate increased the general fund by eliminating vacancy savings.

 

COMMISSION ON ECONOMIC DEVELOPMENT - PAGE 588

 

There were two differences between the committees, Mr. Stevens pointed out.  A research analyst had been added by the assembly to help the agency by doing research for companies who wish to relocate to Nevada.  In addition, the Rural Nevada Grants line item related directly to AB 208 which had been closed into this budget.  If the senate concured with the assembly closing, AB 208 would not have to be processed.

 

MOTION PICTURES - PAGE 593

 

The only difference in this budget was $60,000 in advertising revenue and $60,000 in contract location scouting.  A bill would be considered for introduction today which would authorize the Commission on Economic Development to charge for advertising revenue for that purpose.

 

Mr. Marvel asked if the intent of this legislation would be the agency could not spend the funds until a like sum had been raised.  Mr. Stevens explained some members of the committee had expressed a desire to send the agency a letter indicating the increase in location scouting funds could only be spent to the extent advertising money was generated.

 

Mr. Price inquired how the committee would know the agency would actually try raising the advertising money.  He had understood there was some roughness between the movie commission and Commission on Economic Development.  Mr. Stevens replied if a letter was sent, and if the movie commission did not generate the funds, the additional money for location scouting would not be made available.  Mr. Price pointed out there was a feeling that the Commission on Economic Development was not pleased about having to send money to the film commission.  He commented what would the incentive be for the Commission on Economic Development to raise money had then have the movie commission profit.  Mr. Ghiggeri indicated the budget had been closed so the money would be raised by the film division.

 

Mrs. Chowning asked if the senate had agreed on the $60,000 for location scouting.  Mr. Stevens replied no.  This would be an item that would be under discussion when the joint hearing commenced immediately after adjournment of this hearing.  In any event, this would not be a general fund expense, whether it was to stay in the budget or be removed.

 

EDUCATION STATE PROGRAMS - PAGE 637

 

Mr. Stevens pointed out the major difference in this budget was the restoration of the library consultant effective January, 1994.  The assembly took that action, the senate did not.  In addition, a management assistant II was restored by the senate, but not by the assembly.  After the budget had been closed by the assembly, the Department of Education determined they had eliminated an employee who had worked for them for a number of years and felt this employee should be retained.  The senate then reduced dues to national organizations in order to pay for the position.

 

DISTRIBUTIVE SCHOOL FUND - PAGE 642

 

There were a number of differences in this budget, Mr. Stevens advised.  He believed the differences would be discussed at length during the joint hearing.

 

WELFARE ADMINISTRATION - PAGE 865

 

The single difference in this account was in Maintenance 582, an item to enhance the agency's data processing program for a medical management information system.  The work would begin on that system effective January, 1995.  The assembly took that action, the senate did not.

 

Mrs. Evans contended this difference had been rectified--she had spoken to Senator Rawson.  The senate was in agreement this system needed to be implemented.  The senate would like to have a letter of intent indicating the agency could approach the Interim Finance Committee for the $91,000 to jump start the program.  Both committees were achieving the same goal, but were reaching it in a different way.  She suggested the assembly concur with the senate.

 

STATE MUSEUM, LAS VEGAS - PAGE 1139

 

Mr. Stevens commented both committees had added the director's position at the Las Vegas Museum; the senate through gifts, donations and sales and the assembly with general fund.

 

NEVADA STATE LIBRARY - PAGE 1159

 

The major difference between the committees was the assembly funded the book budget with one-third general fund, one-third Title I funds and one-third gifts and donations.  The senate closed the budget based on gifts, donations and book sales with the result being be no hard dollars for use in purchasing books.  The assembly closure funded two-thirds of the amount with hard dollars.

 

The remaining difference, Mr. Stevens remarked, was concerning the bookmobiles.  The assembly provided $26,000 in federal dollars and the senate provided the same amount, but split it one-half general fund and one-half county match.

 

DEPARTMENT OF MOTOR VEHICLES AND PUBLIC SAFETY

 

Mr. Stevens commented there were a number of Department of Motor Vehicles accounts where the internal affairs unit was at issue.  This would include the Highway Patrol Special Fund on page 1390, the Investigations Division, page 1416 and Motor Vehicle Pollution Control, page 1515.

 

HAZARDOUS MATERIAL TRAINING CENTER - PAGE 1440

 

The assembly processed AB 113 which provided for training of volunteer firemen throughout the state on hazardous materials.  These people were the first responders to accidents.  The senate did not take that action as they had just received the bill.

 

 

 

 

STATE LANDS - PAGE 1561

 

The assembly provided $1,000 in each year of the biennium for out-of-state travel.  Mr. Stevens explained Pam Wilcox, the administrator, was an officer in the national organization and the Ways and Means Committee felt it was necessary to provide some out-of-state travel dollars.  The senate included an enhancement for SB 139, which the assembly heard yesterday in committee.  If the bill was processed by Ways and Means, the committee would have to take similar action.

 

FORESTRY - PAGE 1573

 

Mr. Stevens advised there were large differences in this budget.  One, the communications supervisor was brought back into the account by the assembly closing.  This action was necessary because telecommunications had been unbundled and brought back into the agency budgets.  In addition, a number of small reductions had been made in order to pay the major added expense--aircraft maintenance and operation.  This expense amounted to approximately $60,000 in the first year of the biennium and $30,000 in the second year. 

 

WILDLIFE - PAGE 1603

 

Mr. Stevens said the major difference in this closure fell under Enhancement 710.  Two biologist positions would be funded from the mining assessment.  The issue had been discussed several times in committee and the positions would be funded from the obligated reserves and would not cost the agency anything this biennium.  The senate took this action, but the assembly did not do so. 

 

Mr. Humke had been reminded by former Assemblywoman Gaylyn Spriggs the assessment had been agreed to by the mining companies last session for this stated purpose.  These positions would help the mines in the permitting process in that the biologists could help speed up the process.  The agreement had been made last session, but was not able to go forward due to budget cuts.  The mines were still paying the assessment, a $.50 charge on cyanide, but the positions had not been provided for in the budget.  This closure does not provide for sufficient positions to use all the tax revenue available; however, Mr. Humke concluded, it was a good start.

 

STATE PARKS - PAGE 1619

 

Mr. Stevens commented the only difference in this closure related to the repair specialist I for the Old Mormon Fort in Las Vegas.  The senate closed with $36,304 for this position which had been taken out of seasonal salaries.

 

NATURAL RESOURCES ADMINISTRATION - PAGE 1625

 

The major difference was the assembly action removed the water planning function from this budget account and placed it into a separate budget account.  The Executive Budget had recommended consolidation of water planning into the director's office and this action would separate it from the director's office.

 

EMERGENCY RESPONSE COMMISSION - PAGE 1693

 

This issue was related to AB 113, Mr. Stevens explained, with funding at $23,000 the first year and $21,000 the second year of the biennium.  This would be a grant to the Hazardous Materials Training Center.

 

 

WATER PLANNING - PAGE 1706

 

Mr. Stevens stated this closure was related to the water planning function previously discussed.

 

There being no further business before the committee, Chairman Arberry adjourned the meeting at 9:14 a.m.

 

 

 

 

                                          Respectfully submitted,

 

 

 

      ______________________________

                                          Reba Coombs, Secretary

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Assembly Committee on Ways and Means

June 15, 1993

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