MINUTES OF THE
ASSEMBLY COMMITTEE ON WAYS AND MEANS
Sixty-seventh Session
June 18, 1993
The Assembly Committee on Ways and Means was called to order by Chairman Morse Arberry, Jr., at 8:17 a.m., on Friday, June 18, 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
AB557Establishes minimum rates of compensation for provision of clothing to foster child.
Assemblyman David Humke, District 26, testified AB557 had been introduced last session as AB352 and, although it passed through the Assembly on the last day of the Sixty-sixth session, died in the Senate because it was received too late. He indicated AB557 was a duplicate of the amended version of the 1991 bill. He pointed out the intent of the bill was to try to give something to the people who represented the backbone of the social services system in the state -- foster parents.
Mr. Humke emphasized AB557 would allow foster parents to purchase more clothing for foster children which would lessen the cost burden on foster parents for clothing. He noted, in earlier versions of the 1991 bill, it also raised the pay provided to foster parents for taking care of the children. He elaborated foster parents had not received any type of compensation increase since some time in the 1980's. He emphasized foster parents were the backbone of the system and without them the system children for which the state was responsible would collapse.
Mr. Humke cited information from his files on testimony before the Ways and Means Committee in 1991 by Ms. Deanne Blazzard. He stated she also testified in Las Vegas before the Ways and Means Welfare Subcommittee during the two-week break in February 1993. Ms. Blazzard had testified, "It costs $10 a day to kennel a dog. The State of Nevada is paying its foster parents $9.24 a day to provide all the physical and emotional needs of the children 0-12 years old in foster care. What does this say about our priorities? Foster parents are paid $9.24 a day or .38 cents an hour for children 0-12 years old, and $11.08 a day or .46 cents an hour for children 13-18 years old. This is grossly inadequate." (see EXHIBIT C)
Mr. Humke reiterated much of the costs of clothing for foster children ended up coming out of foster parents' pockets.
Chairman Arberry closed the hearing on AB557.
AB763Repeals provisions establishing permanent net proceeds fund.
Ms. Judy Matteucci, Budget Division, stated AB763 would repeal the provisions established in the 1989 Session where the permanent net proceeds of mines fund was created as a trust fund. The purpose for which the fund had been created was to establish a reserve from mining monies under the concept mining monies were one-time funds and would not be a continuing means of appropriating monies into the general fund. She pointed out mining funds were estimated to contribute approximately $55 million over the biennium, but the mining proceeds had fallen and did not reach the $55 million level.
Ms. Matteucci explained the 1989 provision required, at the end of the fiscal year, that five percent of the collections of the net proceeds of mines tax which went into the general fund would be transferred into the trust fund. Further, the 1989 provision required the trust fund monies be appropriated by the Legislature.
Ms. Matteucci indicated, as part of the budget reductions, the Budget Division had anticipated having this money to reappropriate and it had been the division's intention to request the Legislature to appropriate the funds back to the general fund. She emphasized the funds were already included in the budget proposal. The bill drafting had set up the legislation to repeal the provision wherein the appropriation was required from the funds and the funds would continue to be deposited into the general fund. She maintained this would be appropriate because the net proceeds of mines tax was not producing significant enough amounts to be placed into a trust fund. The five percent amount generated was approximately $800,000 each year of the biennium. She pointed out the 1991 Legislature had passed another stabilization account which would hold more promise for "rainy day" purposes.
Mr. Marvel stated part of the rationale for creating this "rainy day" fund was the realization that mining funds were tentative and not stable. He emphasized he had encouraged his local government people not to utilize these funds for operating budgets, but to use the funds for capital improvements in order to prevent becoming dependent on the funds. Ms. Matteucci concurred. She emphasized these funds helped to balance the budget.
Mr. Price wondered why one more stabilization account was needed if the amount for deposit was insignificant. He suggested it would be wise to raise the percentage of deposit. Ms. Matteucci indicated the fund did not need to be deleted, if the committee chose not to do so. She stated the alternative would be to have the Legislature appropriate the balance of the net proceeds trust fund which was estimated at $1.6 million at the close of FY93. She emphasized the State Controller had not been aware of the provision to transfer the five percent from the general fund and it occurred in May 1993. She noted, if the Legislature believed it needed to retain two stabilization funds, AB763 would not be necessary, but another bill
would need to be drafted to appropriate the money in the trust fund to the general fund in order to balance the budget for this fiscal year and the 1993-95 biennium.
Mr. Price restated Ms. Matteucci's remarks that the $800,000 in the trust fund would be necessary to balance this year's budget. Ms. Matteucci indicated the Budget Division had included the funds in the reversions. Mr. Price asked who made the decision to transfer funds from the other "rainy day" account. Ms. Matteucci speculated it was the State Controller when the ending fund balance exceeded 10 percent of the operating appropriation. Mr. Price pointed out, in this trust fund, the Legislature controlled the transfer. Ms. Matteucci indicated in this account the Legislature, as it was currently established, must appropriate out of the trust fund. Mr. Price stated AB763 would turn the decision from the Legislature to the Executive Branch. Ms. Matteucci indicated no, the State Controller would transfer two-fifths of the monies in excess of 10 percent of the operating appropriation into a stabilization account and those funds must be appropriated by the Legislature. She emphasized the Executive Branch could not get into the stabilization account without Legislative action. Therefore, Legislative approval was necessary to gain access to either stabilization account.
Mr. Marvel asked how much money was in the trust fund. Ms. Matteucci replied approximately $890,000 had been accumulated since 1989, but transfers could not occur until the 1991-93 biennium. She reiterated the State Controller's office had not been aware of the provision to transfer the funds to the trust account. The budget office notified the State Controller at the end of FY92 and the transfer from the general fund to the trust account was made in May 1993. Mr. Marvel commented this would be another $1 million hole in the budget if AB763 failed. Ms. Matteuci indicated, with all the budget reductions, the Executive Branch had planned on asking the Legislature to appropriate these funds.
Ms. Giunchigliani stated her appreciation that the Budget Office asked the Legislature for approval, but stressed the money had already been placed into The Executive Budget and wondered what was the purpose of asking the Legislature after the fact. Ms. Matteucci reiterated the Legislature was the body which must appropriate the money and if the Legislature chose not to appropriate it, The Executive Budget would need to be adjusted accordingly. Ms. Giunchigliani remarked the Legislature would need to find additional revenue for a budget which was still not properly funded. She stressed throughout this session the Legislature had been asked to do something after the fact. Ms. Matteucci explained the Governor, in preparing The Executive Branch, was obligated through statute to prepare his proposals and to submit legislation to enact those proposals. She emphasized the Governor had been acting in accordance with statutory requirements in preparing the budget and submitting the appropriate legislation. The Legislature was not obligated to follow what the Governor recommended or proposed.
Ms. Giunchigliani reiterated, by following the thought, what was being presented was not a balanced budget because it was based on legislation which may or may not pass, based upon taxes which had not been discussed until it was received by the Legislature. She commented whether or not the Legislature enacted the proposed legislation, there could be a larger hole than had been originally presented by the Governor and the Legislature would be forced to raise additional revenues. She stressed this was indicative of what the Legislature had been forced to respond to throughout the entire budget process. She maintained there should have been some
honesty about what was there, what was presented and what revenues were required. There were problems woven throughout The Executive Budget.
Ms. Matteucci reiterated all the proposals which were included in the budget reductions had been shown to the Legislature at the time of the budget reductions. She pointed out the Governor had discussed these proposals at length previously and she emphasized there should not have been any element of surprise related to either the transfer, budgeting, or revenue sources for funds.
Ms. Giunchigliani commented this was not related to an "element of surprise," but an issue of building a budget on numbers which were not even there and trying to balance a budget on revenues and funds which were not there. She stated it put the Legislature in a box of either appropriate, find a new tax or react to more holes in the Executive Budget.
Chairman Arberry closed the hearing on AB763.
AB762Authorizes commission on economic development to charge fees for certain services it provides.
Ms. Cecilia Colling, Deputy Director for Economic Development Commission, stated AB762 allowed the commission to charge fees for services, such as materials being prepared and other services, in order to help relieve some of the agency's dependence on the general fund and tourism fund.
Mr. Heller asked what type of services would be charged for. Ms. Colling replied two areas specifically would be targeted. There would be a charge for advertising space in the Motion Picture Division directory and a charge for permit services. Mr. Heller inquired how much was anticipated to be raised. Ms. Colling stated approximately $60,000 had been budgeted.
Mr. Stevens stated the bill was drafted based on how the Motion Picture Division budget account closed in order to provide $60,000 which was built in as revenue. He indicated a letter of intent would be sent to the agency stating location scouting costs were not to exceed the additional funds which were generated through the advertising. Mr. Heller clarified the $60,000 expenditure was already included in the budget. Mr. Stevens replied yes, but a statutory change was required to allow the expenditure to occur.
He stated AB762 was the statutory authorization to make the budget closing work.
Ms. Giunchigliani asked what affect AB562, currently in the Assembly Committee on Labor and Management, would have on this bill. Ms. Colling responded it would assist in raising funds for contracted individuals to carry out some of the Commission's functions. Ms. Giunchigliani stated there would be a charge for advertising in the state directory. Ms. Colling clarified the directory listing would remain free of charge, but additional advertising space could be purchased. Ms. Giunchigliani asked for an explanation on how scouting for locations would occur. Ms. Colling indicated scouts would be required to purchase a permit, and contracted individuals would provide the permitting service.
Mr. Humke inquired on line 7 and 8 referring to the recouping of expenses through procurement of permits for clients, if the agency currently had statutory authority to obtain permits. Ms. Colling stated the agency did assist with permitting, but contracted scouts were allowed to also permit with a separate fee. Mr. Humke asked
if the charge for fees would occur outside the Motion Picture Division budget account. Ms. Colling indicated the agency did not intend to charge for permits outside the film division.
Chairman Arberry closed the hearing on AB762.
SB79 Eliminates requirement that adoptive parents of children with special needs have limited financial resources to receive financial assistance.
Mr. Stevens indicated this legislation would remove the needs test and would save money for the state.
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MRS. EVANS MOVED AMEND AND DO PASS.
MR. MARVEL SECONDED THE MOTION.
THE MOTION CARRIED BY VOICE VOTE. MR. DINI AND MS. TIFFANY WERE NOT PRESENT AT THE TIME OF THE VOTE.
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SB84 Makes order for payment of money belonging to school district void if not presented for payment within certain time after issuance.
Mr. Stevens indicated this was clean-up legislation for the school district.
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MR. MARVEL MOVED DO PASS.
MR. HUMKE SECONDED THE MOTION.
THE MOTION CARRIED BY VOICE VOTE. MR. DINI AND MS. TIFFANY WERE NOT PRESENT AT THE TIME OF THE VOTE.
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SB139Establishes program to mitigate environmentally detrimental effects of certain uses of land in Lake Tahoe Basin.
Mr. Stevens noted this legislation was a result of Senate Finance budget closing which the Ways and Means Committee had concurred with. One change on page 2, line 9 was requested to delete "all".
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MS. GIUNCHIGLIANI MOVED AMEND AND DO PASS.
MR. SPITLER SECONDED THE MOTION.
THE MOTION CARRIED BY VOICE VOTE. MR. DINI AND MS. TIFFANY WERE NOT PRESENT AT THE TIME OF THE VOTE.
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SB167Requires chief of purchasing division of department of general services to establish certain standards to be used by state agencies when purchasing new equipment.
Mr. Stevens explained SB167 relates to SCR2 recommendations. Mr. Ghiggeri clarified this was a result of SCR2 subcommittee concerns related to pre-sort services for the Department of Motor Vehicles. He stated services had been provided by a private contractor and during the interim the DMV had gone out and lease/purchased its own pre-sort equipment without, what committee members believed to be, adequate justification.
* * * * *
MR. SPITLER MOVED DO PASS.
MS. GIUNCHIGLIANI SECONDED THE MOTION.
THE MOTION CARRIED BY VOICE VOTE. MR. DINI AND MS. TIFFANY WERE NOT PRESENT AT THE TIME OF THE VOTE.
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SB385Increases required balance of prison revolving account.
Mr. Ghiggeri explained this was an appropriation to the Department of Prisons to increase the balance in the revolving account. He stated testimony had been provided indicating the funds would be utilized for the issuance of money to assist newly-released or paroled offenders and for payment of bills requiring immediate payment. He indicated the current language provided for small prison bills in addition to what the Department of Prisons specifically budgeted for. He pointed out staff suggested an amendment to delete on line 3 the reference to "small prison bills" and insert "and for the issuance of money to assist newly-released or paroled offenders and for no other purposes." He noted it was recommended to change the effective date to June 30, 1993 in order to fund it out of the surplus available on June 30.
Ms. Giunchigliani asked if it was assured there would be adequate accounting procedures in place to avoid previous problems with the account. Mr. Ghiggeri was unable to confirm the procedures were adequately in place, but noted it had been improving. Ms. Giunchigliani emphasized checks and balances would need to be in place.
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MR. PERKINS MOVED AMEND AND DO PASS.
Mr. Marvel inquired if the monies would still be necessary with the Facilities Capacity Act. Ms. Matteucci indicated it would be needed.
MS. GIUNCHIGLIANI SECONDED THE MOTION.
THE MOTION CARRIED BY VOICE VOTE. MS. TIFFANY WAS NOT PRESENT AT THE TIME OF THE VOTE.
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SB389Specifies amount to be paid by certain public employers for group insurance for public employees for next biennium.
Mr. Stevens commented this legislation would provide for an increase in insurance coverage for state employees in the second year of the biennium. The amount listed had been included and budgeted for in The Executive Budget for the 1993-95 biennium.
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MR. MARVEL MOVED DO PASS.
MRS. CHOWNING SECONDED THE MOTION.
THE MOTION CARRIED BY VOICE VOTE. MRS. WILLIAMS AND MR. PERKINS VOTED NO. MR. HUMKE ABSTAINED. MS. TIFFANY WAS NOT PRESENT AT THE TIME OF THE VOTE.
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SB390Specifies amount payable by state for group insurance for retired public employees.
Mr. Stevens explained SB390 was the money included in The Executive Budget for payment of premiums of group insurance for retired state employees. He pointed out the committee had passed AB19 which would stagger the premium rate which would be paid on behalf of retired employees based on length of service.
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MR. HELLER MOVED DO PASS..
MR. DINI SECONDED THE MOTION.
THE MOTION CARRIED BY VOICE VOTE. MRS. WILLIAMS, MR. PRICE AND MR. PERKINS VOTED NO. MS. TIFFANY WAS NOT PRESENT AT THE TIME OF THE VOTE.
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AB317Requires apportionment from state school distributive account to be made monthly.
Mr. Stevens requested the committee discuss the bill and consider the possible amendments in order for staff to take action on the amendments for review. He stated AB317 changed the distribution of school funds from a quarterly to a monthly basis. He pointed out The Executive Budget had built the distributive school account based on current law which distributes the funds on a quarterly basis. Changing the distribution to a monthly basis would take interest income away from the school districts which accounts for approximately $1.6 to $1.7 million. He stressed those funds would then need to be replaced within the Distributive School Account if AB317 was passed. He indicated an alternative would be to pass AB317, but minimize the fiscal impact by making the effective date at the end of the next biennium.
Ms. Giunchigliani argued to indefinitely postpone this legislation because another financial hit on the districts after the $18 million in budget reductions would be devastating and, therefore, unacceptable.
Ms. Matteucci commented AB317 was not a Budget Office bill and was not built into The Executive Budget. She stated the Budget Office had anticipated going back to the quarterly payments as soon as the fiscal situation straightened out. She stressed she did not believe this was a good time to move over to the monthly system.
Speaker Dini emphasized, for the whole DSA, the districts have been using the ending fund balances as part of the overall funding mechanism and by taking another $1.6 million away, it would really hurt the schools. He asserted the state could do this to the districts. It was important to leave these districts as whole as possible during these difficult economic times. He stressed a motion to Indefinitely Postpone would be quite appropriate.
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MS. GIUNCHIGLIANI MOVED TO INDEFINITELY POSTPONE AB317.
MRS. WILLIAMS SECONDED THE MOTION.
THE MOTION CARRIED BY VOICE VOTE. MS. TIFFANY WAS NOT PRESENT AT THE TIME OF THE VOTE.
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AB748Makes appropriation to Nevada highway patrol of department of motor vehicles and public safety for pilot program for Alliance for Uniform HazMat Transportation procedures.
Mr. Stevens indicated there were some amendments to AB748. The appropriation was shown to be made to the Public Service Commission and would need to be changed to be made to the Nevada Highway Patrol and the monies would revert to the highway fund, not the general fund. He stated on line 46 at the end of "Nevada" an amendment would be added "or his designee." The appropriation amount was recommended to be lowered to $72,008 for FY94 and $74,903 for FY95.
Mr. Spitler asked if the fiscal changes were approved by Commissioner James. Mr. Stevens clarified these services would be provided by HazMat and the Nevada Highway Patrol more than the Public Service Commission.
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MR. SPITLER MOVED TO AMEND AND DO PASS.
MS. GIUNCHIGLIANI SECONDED THE MOTION.
THE MOTION CARRIED BY VOICE VOTE. MS. TIFFANY WAS NOT PRESENT AT THE TIME OF THE VOTE.
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AB762Authorizes commission on economic development to charge fees for certain services it provides.
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MR. PRICE MOVED DO PASS.
MR. HUMKE SECONDED THE MOTION.
Ms. Giunchigliani commented AB562 was in the Labor and Management Committee to address the issues of the division being a hiring hall for out-of-state people. Mr. Price commented the role of the film commission would be to assist in obtaining personnel for the film productions. Ms. Giunchigliani reiterated selective reference referrals were the issue rather than utilizing the statewide directory to utilize Nevada citizens.
THE MOTION CARRIED BY VOICE VOTE. MS. TIFFANY WAS NOT PRESENT AT THE TIME OF THE VOTE.
BUDGET CLOSED.
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AB488Provides for expedited release from prison of terminally ill or physically incapacitated prisoners.
Chairman Arberry requested the committee discuss this legislation which had been placed on the Chief Clerk's desk. Mr. Stevens explained if AB488 was not processed, about $800,000 to $900,000 would need to be added to the prison's medical budget for the 1993-95 biennium to make the account whole. He emphasized some action would need to be taken in order for staff to proceed with the drafting of the Appropriations Act.
Mr. Marvel suggested a poll of committee members to see if there had been a change of thought since placing AB488 on the Chief Clerk's desk. Ms. Giunchigliani asked who placed it on the Clerk's desk. Chairman Arberry stated he had because there had been concern the bill might be lost. Ms. Giunchigliani indicated she believed it was a good, workable bill especially after amending it to address public and committee concerns.
Mr. Price stated he was still in opposition to AB488 and would speak against it on the floor. He believed it would be bad policy.
Mr. Humke asked if the problems which still existed could be cured by amending page 2, line 30 from "or" to "and" at the end of the line. Ms. Matteucci stated the verbiage change would probably reduce the savings which had been proposed. Mr. Ghiggeri explained the bill had been constructed to allow either way.
Mrs. Williams commented the amendments thoroughly stated the released individuals would be people who would not pose a threat. She remarked it was sad to live in a society where all the focus was on fear and no one discussed compassion. She stressed this was not the way to go. She indicated it was not necessary to keep trying to get a "pound of flesh" from someone who was dying from a terminal disease or was in a vegetative state.
Mrs. Chowning reminded the committee of the savings in AB488. She stated the language was tightened more than had been requested by the public and committee or anticipated by the Department of Prisons. She emphasized language put the Director directly on the line and assured tracking of any released individual until they died. She noted other states in the nation already release terminally ill or incapacitated prisoners which impacted Nevada regardless of AB488. She pointed out the practice of releasing terminally ill prisoners was already occurring, and this legislation would allow the practice through statute. Chairman Arberry clarified release occurred twice a year and this bill would allow more flexibility throughout the year.
Mr. Heller stated his opposition of AB488 and indicated it would an "opening the floodgates." He believed it would be bad public policy. He emphasized he had four prison facilities within Carson City. He stated both NACO and the League of Cities had spoken against this legislation. He pointed out there would be a shift of impact to the counties and for this reason he would oppose AB488.
Mr. Marvel commented NACO had appeared before the Republican Caucus and had adamantly opposed the legislation because of the concern prisoners would become wards of the county. He suggested amending AB488 to assure there would be no shift of the burden onto the counties.
Mr. Perkins commented amendments had been made by the subcommittee to ensure there was a release plan in place for any released individuals. He remarked he was a subcommittee member for this bill and would support it because the language was tightened up. He emphasized many prisoners were incarcerated with sentences of less than five years and by not allowing compassionate release, the sentence would essentially be the death penalty because they would be doomed to die in prison. He stated that was not palatable. This legislation was carefully crafted to satisfy most of the concerns voiced by League of Cities during subcommittee hearings and compromises were included in the amended version of AB488.
Chairman Arberry stated after subcommittee hearing, according to Mr. Marvel, League of Cities had gone before the Republican Caucus to state they did not agree to anything and were adamantly opposed to the bill even after amendments.
Ms. Giunchigliani asked why the League of Cities had not come back before the committee to voice the objections. She concurred with Mr. Perkins. She explained this legislation was not an issue of "compassion," but one of consideration to have open beds for criminals which needed to be locked up away from society. She emphasized the alternative was not having a place to put the convicted rapists, child molesters or murderers because an incapacitated prisoner was filling it. The bottom line was freeing up bed space.
Chairman Arberry reiterated between $800,000 to $1 million more would be needed if AB488 was not passed. Mr. Price stated they could help in Taxation if more money was needed. He commented he had been a big advocate for the death penalty and would have assisted in lowering the crime level if it was possible because these people were those who showed no compassion for their victims. He reminded the committee, if bed space was needed, there was a nice, shiny, brand-new prison which could be used. He asked for clarification of how other states were releasing prisoners and impacting Nevada. Mrs. Chowning clarified released prisoners who were from Nevada were being sent back here by other states' release programs. She explained the impact occurred by Nevada not having any control over the release plan implemented, or not implemented, by other states. She stated other states were just sending prisoners out, possibly with no plan. She pointed out the bill included specific language which notified the proposed county of release ahead of the hearing. This would permit the county to issue a complaint.
Speaker Dini emphasized line 11 of page 1 addressed the worst prisoners who could not be released. He commended the subcommittee on a job well done. He stated his support for AB488 and remarked the state should let these guys die at home.
Mr. Humke indicated there were numerous safeguards built into the bill and would support a compromise. He concurred with Mr. Perkins. He reminded the committee that previous testimony indicated approximately 30 percent of the state's inmate population had ties to Nevada prior to committing the crimes. He pointed out, therefore, a sizable number of these prisoners would return to other states, their families and hometowns to die. He emphasized NACO did not quantify what their concerns had been. He noted the released individuals would be so medically debilitated they would most likely be eligible for SSI or Medicaid. Further, he noted, discussions with the Washoe County Social Services Director indicated the last priority for spending for medically indigent care at the county level would be for adult males. He indicated funds were allocated to children and families first.
Mr. Price reminded the committee when looking at the final sentence, a high percentage of inmates had already had their sentences plea bargained down and this would include bargaining down a potential sentence of life without parole. Mr. Humke disagreed and asserted he was not aware of any prosecuter in Nevada that would plea bargain a capital murder case if they believed they could prove it. He stressed, in Nevada, if a prosecutor believed he could prove it, he would prosecute it.
Chairman Arberry thanked the committee for input on AB488.
AB723Revises provisions regarding group insurance for public employees.
Ms. Lindsay Jydstrup, Nevada State Education Association, explained previous testimony had raised concerns regarding the fiscal note of approximately $3 million. She stated discussions among various groups had occurred in order to approach the bill without the need for any fiscal note. She explained the alternatives to the committee. She noted the original bill would have allowed all active, non-state employees which were currently pooled separately from state employees, to be considered in one large pool. A suggestion was to track the claims on the non-state employees for one year and if those claims were within a five percent differential from state employees, to allow the non-state employees into the same. If the differential was higher than five percent, then the group would remain separate.
Ms. Jydstrup indicated the other large fiscal note impact of the bill was related to allowing retired employees into the system at the same rate as non-state employees and allowing the same stipend as state employees. The suggestion would be to eliminate the stipend, but allow the retirees into the system at the same rate.
Mrs. Chowning asked how the alternatives would reduce the fiscal note. Ms. Jydstrup replied the attempt was to completely eliminate the fiscal note. Ms. Matteucci interjected the elimination of the retirees would remove approximately $1.3 million of the current fiscal note. She indicated the Benefits Committee currently tracks each separate pool. She did not believe the five percent differential would result in any savings. She summarized if the pool was within five percent, the policy issue would become whether or not state dollars should be utilized to support non-state entities.
Chairman Arberry stated SB278 addressed all the concerns. Ms. Jydstrup replied SB278 addressed just the retirees. She emphasized it did not deal with active employees.
Chairman Arberry adjourned the hearing at 9:31 a.m.
RESPECTFULLY SUBMITTED:
_________________________
Kerin E. Putnam
Committee Secretary
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Assembly Committee on Ways and Means
June 18, 1993
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