MINUTES OF THE
SENATE COMMITTEE ON FINANCE
Sixty-seventh Session
January 28, 1993
The Senate Committee on Finance was called to order by Chairman William J. Raggio, at 8:09 a.m., on January 28, 1993, in Room 223 of the Legislative Building, Carson City, Nevada. Exhibit A is the Meeting Agenda. Exhibit B is the Attendance Roster.
COMMITTEE MEMBERS PRESENT:
Senator William J. Raggio, Chairman
Senator Raymond D. Rawson, Vice Chairman
Senator Lawrence E. Jacobsen
Senator Bob Coffin
Senator Diana M. Glomb
Senator William R. O'Donnell
Senator Matthew Q. Callister
STAFF MEMBERS PRESENT:
Daniel G. Miles, Fiscal Analyst
Robert Guernsey, Principal Deputy Fiscal Analyst
Larry L. Peri, Program Analyst
Joan McConnell, Committee Secretary
OTHERS PRESENT:
Judy Matteucci, Director, Department of Administration
Scott Miller, Administrator, Department of Museums and History
Don Hataway, Chief Assistant, Budget Division
Rochelle Summers, Principal Budget Analyst, Budget Division
I.R. Ashleman, II, Attorney at Law, Vice Chairman of the Board of Museums and Historical Society
Peter L. Bandurraga, Ph.D., Director, Nevada Historical Society
Joan G. Kerschner, State Librarian, State Library and Archives Robert van Straten, State Records Manager, Division of Archives and Records
Emmy Bell, Coordinator, Nevada Literacy Coalition
Daniel G. Miles, Fiscal Analyst, distributed copies of the Redbook, a list by county of all the property tax rates that exist in the state.
State Reorganization
Senator Raggio invited additional testimony on the Reorganization Savings.
Judy Matteucci, Director, Department of Administration, stated, "I would like to begin with a brief background of some of the tenets that governed the review of the structure of state government by the commission and by the consultants of that commission."
She stated the purpose of the commission was to promote efficiency, encourage cost savings, enhance accountability and control, improve coordination, reduce redundancy in state government and provide better government for the taxpayer's dollar. The four major objectives established by the commission were to examine the current structure of the executive branch of Nevada state government, identify organizational weaknesses that would hamper efficiency, quality of service, and cost effectiveness, review recent reorganizational activities occurring in states with
problems similar to those of Nevada, and develop recommendations for reorganization, and suggestions to implement needed changes.
The commission had some basic assumptions and limitations, including the fact that state agencies had already incurred significant cost reductions and layoffs in the past 18 months, so further budget cuts were inappropriate.
The study was based on improving the organizational structure of state government to face the challenges of serving Nevada going into the twenty-first century, and the project should build upon the existing strengths of the current organization of state government.
The consultants, selected through a competitive bid process, had some guiding principles, which were the Governor's span of control should be reduced, the state should make better use of existing resources and build on current strengths of state government, make government more responsive to those served, group similar functions to improve coordination, shift the focus of government from inputs to outputs, empower manager and staff to get the job done, and parallel the efforts of the private sector to streamline management costs.
Senator Raggio asked Ms. Matteucci if she was going to request authority to transfer between budget accounts.
Ms. Matteucci replied:
Right...We discussed with the Governor two ways of proceeding once we have the commission's recommendations....It would have been preferable from my standpoint to have new department directors, essentially named, so we could work with them in designing and streamlining the budgets. But, the Governor felt that was not appropriate. He wanted to give the legislature an opportunity to review his reorganization recommendations before he named any department directors.
As a result of that, Mr. Chairman, we were essentially forced to make some assumptions as far as savings that would be logical when you combine and consolidate management functions and accounting business functions. But, we did not want to put ourselves in a position of making absolute decisions as to which positions could be eliminated, and, therefore, what we did is put in this Reorganization Savings, which is the equivalent of Vacancy Savings that you will see in the budget.
They were based on specific positions. They are the value of specific positions. However, when and if the departments are approved as the Governor has recommended, and the new directors are appointed, then it would be up to the directors to determine which positions should essentially go, but we have removed the dollars from the various budget accounts, based on specific positions, which is the detail that we are prepared to present to you in at least two departments today.
Senator Raggio asked, "On this flexibility, and the positions, are you talking about all nature of positions, or are you only applying that to what you have termed business and administrative positions?"
Ms. Matteucci replied, "We have generally gone through...and taken supervisory and upper management positions."
Senator Raggio stated:
I think what I heard you say, through the reorganization, it would be natural or to be expected there would be some duplication in the administrative, managerial positions. Is that hard and fast, or does the Reorganizational Savings allow for deletion or removal of all types of positions? And, is that within the flexibility that will be allowed to the department heads?
Ms. Matteucci replied:
What we have suggested, as far as the flexibility, and is included...in the budget, is that agencies be allowed to transfer appropriations within a department, with approval of the Interim Finance Committee....It was the Governor's intent all along to get to the duplication in upper management, and not to reduce any of the working down-the-line positions, and that's certainly the approach we have taken in our recommendations.
Senator Callister commented:
Just to make certain I understand your answer to the chairman's question. You presumed that the reductions in force will come from upper and mid-level management, but they are not obligated to do that.
Ms. Matteucci answered, "At this point, the way the language is in the appropriations...there is no obligation for them to take out those specific positions."
Senator Callister replied, "So, in effect, although it would be contrary to your wishes and to your recommendations, the individual division heads, when selected, could elect to make those reductions in force at some other level."
Ms. Matteucci commented, "They could, but remember we have taken out the dollar value of rather high-level positions. If they were to do that, they are going to have to take out more people at a lower level to achieve the same kind of savings."
Senator Callister wanted to make it clear the selected division heads were not obligated to follow Ms. Matteucci's recommendations.
Ms. Matteucci stated, "That's correct. We want that very clearly understood because we don't want anybody suggesting we're making the management decisions for all the department directors."
Senator O'Donnell asked:
In the transfer of funds, taking the human resources department, I notice on page 21 on this budget brief, I believe, we have a number of different departments down there, and what you're saying is you would like the ability to transfer funds from maybe the education area to human resources area, with the legislative approval. Is that correct?
Ms. Matteucci replied, "With Interim Finance...."
Senator Raggio stated:
Your proposal is you are going to delineate this as we get into each budget. Are you prepared in doing that to
then do that with respect to the taxation and personnel departments, which we heard yesterday?
Ms. Matteucci said:
I did not bring over the Department of Taxation. I brought over the Personnel Department because that was the one that created the confusion.
Senator Raggio commented, "We asked these questions yesterday, and that's what brought this forth, because we didn't receive the specific information we would like to have had. So, we will need that."
Ms. Matteucci said, "We'll get that to you...."
Senator Raggio asked:
On the audit positions that are going to be doing the combined audits, there is a significant number of positions, a reduction in force. I think 14 positions...survive from the present complement of audit positions [field audits]. Are those envisioned to be actual physical transfers from those two departments, SIIS [State Industrial Insurance System] and ESD [Employment Security Department]?
Ms. Matteucci replied, "Yes. Those are physical transfers, and not Reorganization Savings."
Senator Raggio inquired, "What about the data processing positions? Those are not physical transfers?"
Ms. Matteucci replied:
No. The data processing presents a unique challenge ....What the recommendations are there is that the positions, as you go through the budgets, have been removed, but there is no intention in, certainly the major using agencies, to remove those bodies physically. They simply will be coordinated through the central ITS [Information Technology Services] Division.
Ms. Matteucci distributed a Summary of Net Impacts of Organizational and Operational Changes, Revised 56, 57, 58 and 59 (Exhibit C) and Summary of Impacts of Organizational and Operational Changes for the Department of Museum, Library and Arts (Exhibit D). Discussion ensued.
Ms. Matteucci stressed the fact the value only of the Director of Museums and History and of a Senior Accountant be removed, and in addition the value of a Deputy Director at the State Museum in Carson City.
Senator Raggio asked, "When the various presenters come before us on their budgets, will they previously have been furnished this Summary of Impact as to their respective budgets?"
Ms. Matteucci replied, "My analysts have been asked to go over the entire presentation with the agencies."
Senator Raggio continued, "They are obviously going to be asked by any committee to comment on the impact and how it will affect their mission statement...and I assume they will be allowed to answer directly to that."
Senator Glomb requested information on (Exhibit D). "...For instance, the value of the director under Museum/History or State Library, either one, into the next year, the salary amount goes up."
Ms. Matteucci said, "All of these are predicated on the assumption that this will take effect in October of 1993, so you've got three-quarters of a year."
Senator Rawson stated there are people all over the state, who have been dealing with the museums, such as Boulder City, regarding some of their railroad equipment, and who may be wondering, after the reorganization, who they will be dealing with. "Do you have any kind of an answer to give these people who are from the counties and cities?"
Ms. Matteucci replied:
This is not intended to get rid of any of the people they are dealing with, so they continue to deal with the same people, that are in the same departments until such time as we get an indication from the legislature which of these parts of the reorganization you are going to like, and which of the parts we are going to have to throw out.
Senator Rawson pointed out the reorganization will be moving ahead rather quickly, and everything will be in turmoil for a year.
Ms. Matteucci stated the museum's position is going to be the same. It is just going to be part of the department Museums & Library, and the mission will not change.
Ms. Matteucci initiated discussion on Department of Administration -- Management Restructuring (Exhibit E) and Reorganization Physical Moves (Exhibit F).
You see there is some restructuring of the bureaus within Personnel. Again, this is the structure around which the budget is built, and I know some department directors want some flexibility to establish their own divisions, etcetera. That is going to be a point to discuss in the reorganization bill, as to whether or not you want to allow the departments to have that.
You can see that there are field services classifica-tions, statewide training and payroll. There are two chief personnel managers value removed because there is a change in the restructuring, or internal structuring of the Division of Personnel. That is accompanied with about a 20 percent reduction in the number of positions they are going to have to classify, quantify, test train, and reclassify, pursuant to what we all call the old classified merit system and is now being referred to as the non-exempt merit.
As a result of that, we believe you can eliminate, again, you'll see, these are upper management positions, and still leave a bureau chief, a division chief intact. Again, values of, only.
Senator Raggio asked, regarding (Exhibit F), "Does this indicate that someone has examined the impact of the physical move, for example if some agency is now going to be in a new area with considerably less space, has the impact been measured?"
Ms. Matteucci replied, "This attempted to measure the square footage pursuant to the standards for the new agencies, as they are reconstituted."
Senator Raggio asked, "We can assume that everyone on this list is happy with their physical move?"
Ms. Matteucci answered, "I don't believe you probably can assume that....All of the costs for the moves are all included in the Buildings and Grounds budget. You don't have to look through each one of the budgets for their own moving money."
Senator Rawson inquired, "Do you have a general feeling if this creates a need for more space, or if it frees any space?"
Ms. Matteucci stated she did not have a specific answer and would get back with an answer. She distributed a copy of FLSA (Fair Labor Standards Act) Implementation Alternatives (Exhibit G. Original is on file in the Research Library.) to be discussed on Monday, February 1, 1993.
Museum, Library and Arts Administration - Page 1182
Scott Miller, Administrator, Department of Museums and History, introduced himself and stated Mr. Don Hataway would be addressing the Executive Budget Account, Museum, Library and Arts Administration.
Don Hataway, Chief Assistant Budget Administrator, Budget Division, stated he is the analyst responsible for the Museum, Library and Arts organizations of the state.
Senator Raggio asked, "What's contained in the base budget?"
Mr. Hataway replied, "The new director, and supporting travel and operating costs, and the personnel assessment for the entire department."
Senator Raggio wanted to make it clear to the committee there is no work program, or existing position in this budget.
Mr. Hataway added, "There is a minor maintenance account showing rate adjustments for fringe benefits, the fiscal impact of that. And then there is the enhancement section on the creation of the Office of Science, Engineering and Technology."
Senator O'Donnell, referring to the Summary of Impacts of Organizational and Operational Changes, Department of Museum, Library and Arts (Exhibit H) inquired, "How come the jump between the General Fund resources of $75,000 and $103,000. That's a 25 percent increase."
Mr. Hataway replied, "...That represents the start of this operation October 1 in FY 94, then the full fiscal impact in FY 95.
In essence you're seeing three-fourths of the impact in FY 94, and 100 percent of the impact in FY 95."
Mr. Hataway distributed a copy of a memorandum addressed to Judy Matteucci, Director, Department of Administration, from Cecilia Colling, Deputy Director, Commission on Economic Development (Exhibit I), and read sections from the document.
Mr. Hataway referred to D. Allen Bromley, Director of the Office of Science and Technology Policy for President Bush, and his keynote address to NISET (Nevada Industry Science, Engineering, and Technology Task Force) in October of 1992, where he made reference to a report prepared by the Carnegie Commission of Science, Technology and Government.
Senator Glomb asked, "What was the rationale for putting it in this budget?"
Mr. Hataway said there were two reasons.
One, this individual was primarily the technical advisor to the Governor. It is also planned to make that person's experience and talents available to the legislature. The new state library is a central site, as close to the Governor's office as we could get. It's also a neutral site in terms of the agencies that this individual, or at least we can see the office to be working with, whether it's [Commission on] Economic Development, the University System, the Department of Education, private sector, etcetera.
One other reason is that in the costs that you see broken down in the report, the match money that would be provided would be through the rent and the utilities of the state library system.
This is also a 2-year start-up cost, which we feel federal funds are available for, and then we would envision if the office is as successful as we think it will be, it will then continue as a state-funded facility.
Senator Glomb commented:
Most of this budget is contained in this marketing programs industry, that section. And, if it's supposed to be overseeing our museum and library, and the arts, it seems like it's going to be at cross purposes being in this account.
Mr. Hataway explained:
The reason we set it up as a separate budget function was to keep the costs specifically segregated from the office of director. It is basically there to provide space. And, lieu of creating a completely separate budget account for something that may or may not continue in the future, we felt, at least the Governor's office felt that this would be an appropriate account to embrace it in, and then 2 years from now, if we want to create something bigger and better, then we can.
Senator Glomb remarked, "So, we'd have a director of Museums, Library and Art, and in that director's office you'd have 2-1/2 people that would be doing the science technology."
Mr. Hataway said:
Right. That would be independent, basically, although the department, I'm sure, because this NISET committee did request papers from various agencies of the state, and the library director was one of the people that provided paper to that committee, so there could be technically an advantage that the department might have. But, it's there as a place to place the money, and it's an independent body, working with all agencies in the private sector for the goals that are outlined in this report.
Senator Glomb queried, "On page 9 of your report, some of the funding is going to come from the Department of Energy and the Department of Defense?"
Mr. Hataway explained he has had quite a bit of experience at the local level, working with federal laboratory technology science people, through Lawrence Livermore, the naval post-graduate school at Monterey, and the China Lake naval facility. He added:
One of the mandates of the federal labs are to work with state and local governments for a certain percentage of time to provide technical assistance advice for transfer of technology. Other states, other larger cities, have received seed-money grants, if you will, to start offices for these types of purposes. The research that has been done indicates that the federal laboratory consortium dollars would be available to fund this office. However, the report does indicate that there are other agencies that have also participated in these types of programs, the Department of Energy, the Department of Defense, etcetera.
Senator Coffin asked, "Did I miss you saying who this person would report to...the advisor. Is that person going to be reporting directly to the Governor?"
Mr. Hataway said the person would report to the Governor, and referred Senator Coffin to page 6 of Exhibit I, where it states an advisory panel would be provided.
Senator Coffin stated the library was designed based on certain minimum needs and added a lot of agencies are moving into the library. "Won't we just be creating a space problem over there, that we had tried to eliminate by construction of the [building]?
Mr. Hataway replied:
Hopefully, in any new building, there's a certain amount of growth into space, and we're probably going to be growing into it a lot faster than what we had originally planned. But, you're right. Under the reorganization plan, it calls for the director's office, obviously, the moving of the Nevada Arts Council, the Historic Preservation and Archeology Division from Conservation, as well as this office.
In reviewing the square footage that's available in the south part of the new wing, as well as over half of the upstairs of the old, remodeled...historic building that sits out in front of the library, we feel that space is available.
Mr. Hataway commented there had not been time for this information to be entered on the organization charts.
Senator Glomb stated:
I just have to voice my irritation. This just seems like a very inappropriate budget account, as well as physical space to be housing this department. Just what has transpired in the last 10 minutes is indicative of the fact that we are here to be talking about the museums and library and arts, and we're talking about this other economic development issue. I would like some better explanation from the Governor's office, the budget office, wherever, about the rationale for this.
Mr. Hataway said he had intended to give an overview and had not planned to get into the details. He added:
As you can see, on the cover sheet (Exhibit I), the coordinator of this activity right now is Dr. David McNelis, Associate Vice President for Research, at UNLV (University of Nevada, Las Vegas), and I would fully expect, at sometime during the session, that not only Dr. McNelis, but other people that are associated with this task force would give you additional information.
Senator Raggio asked, "When would you expect that, since you told us this is going to be created by Executive Order. It's not a bill. We're not going to have further opportunity...."
Mr. Hataway interjected:
The timing on this, Mr. Chairman, I really don't know. I believe they want a full hearing on this, because obviously they need your support to include it in the budget. We just felt that this was a central location, and as close to the Governor's office as we could without putting it into the capitol building.
Senator Raggio said, "I think a major question..."
Mr. Hataway interrupted, "That's not the real question as much as it is, do you embrace the concept of creating this type of activity, and the Governor's office feels quite strongly that this is an appropriate step to take."
Senator Glomb stated, "I'm interested in the concept itself. It sounds like it might be a good idea. Why isn't it with the Commission on Economic Development? Why is it in with the museums, and arts, and libraries? That's my issue."
Rochelle Summers, Principal Budget Analyst, Budget Division, commented, "...We'll get you more history on this, and provide it to you in written form."
Senator Rawson stated his concerns:
I would hope the organization doesn't get in the way of what this position actually accomplishes for the state. It's part of a serious economic initiative, and to bring the light industry, the clean industry, the type of things we should have in the state....It's interesting to me, as they have had their meetings, originally about 200 people, basically from science applications, as well as the universities...these were people that had a broad perspective of wanting to increase the library facilities, the computer facilities...they are very involved in supporting the arts.
They are the kinds of businesses that probably drive the arts organizations in the cities that are really involved with good programs. So, it's not totally incompatible just because of the people. It seems to me that you're just looking for a house, you're looking for a room, you're looking for a place to put someone. Unless we heard that it was really interfering with some of the museum...I don't think I would be concerned about it. I would hope that doesn't interfere with what it hopes to accomplish, though.
Senator Raggio said his concern is more on the fiscal issue.
As I understand it will be a grant, or asking for a grant, but only for a pilot program for 2 years. I understand it is all looking to federal funding, at least that is how it is reflected on the budget page, and what if you find out it is a worthy project? Then, are we going to fund it with state funds?
Mr. Hataway replied:
That's what the report indicates is the fact that based upon what other states have experienced in larger communities, seed money has been made available to establish these, but normally for a short period of time. And, the committee believes that a 2-year period is not unreasonable, based upon experiences of other areas and that it would move into state-funded operations in the next biennium, or at least sometime within the reasonable near future.
Senator Raggio remarked:
While I think the goals are meritorious, and certainly the support for it is impressive, this isn't the best time to be creating a new agency, and I think that's the concern some people might have, and especially with the understanding that it is only a pilot program, and the funding, if it is available at all, will not probably be available beyond that. Do you anticipate that there might be private funding, such as Senator O'Donnell was referring to, that might...
Mr. Hataway interjected:
That's also reflected in the report. It could very well be a combination of both federal and private to start with, and it could continue as a private endeavor. The private community, at least from what I've been able to indicate, is very supportive of this activity.
Department of Museums and History - Page 1120
Mr. Miller began with the revenue section for the base budget in Budget Account 2941:
In addition to the reorganization savings... we do receive money from room tax sources, as transfers from tourism. That shows up under agency transfers. The Governor has recommended $32,966 in each of the 2 fiscal years. Those funds pay for the cost of a Public Information Officer for this department at .8 time. It is not a full-time position.
We would also point out that we requested, and have had approved, a transfer from this budget account of the Management Assistant I position to Budget Account 2940. The reason for that simply was, insomuch as the Museums and History Department, and the Museum have shared space for so many years, it's been possible to share the individual, however that's the only clerical position between some 25-odd people. So, when we leave as an organization, presumably to move into the state library, we would like to transfer that position, or leave it actually right where it's at, but transfer it to the
proper budget account....It's currently on 2941 and would be moved to 2940.
Those are the principal changes. In terms of the base account revenues, I believe that the expenditure section of the base is fairly straight-forward. There is one thing I would draw attention to, the Arrowhead Central Storage, which is recommended for funding by the Governor. While we were before the Public Works Board this year, presenting the requests for the department as a whole, one of our principal needs continues year after year to be that space is a premium, and we have sought for the past 2 or 3 bienniums, actually, additional storage warehouse facilities.
It was pointed out at that time that the state had the control of a small structure on Arrowhead Drive, interestingly enough, which would be vacated when the new state library was completed. It actually belongs to the city, and we lease it at, I believe, $1 a year. It was suggested we explore that, and we did, and is a very adequate-sized building for us to take for the textile collections for the entire Department of Museums and History. And, the money reflected here is for purposes of utilities and telephone costs, $12,000 a year.
Senator Raggio suggested skipping over the maintenance portion of the budget and going on to enhancement.
Mr. Miller stated the enhancement request was for the assumption if they did move out, they might need some sort of an operating budget for the Department of Museums and History, which was prior to the entire reorganization proposal. Their estimate of costs of $989 was for the five people in the department at the time, which was basically the enhancement, and obviously is not needed at this point.
Senator Callister asked if Mr. Miller could give a brief summary on the status of the new Mormon Fort State Park and their participation.
Mr. Miller stated:
As far as I know there has been no decision made. I would anticipate that it would be a parks operated facility at this time....We have attempted to provide expertise to the park system, in order to assist them with the excavation, as long as whatever long-term requirements they may have. The director at the Las Vegas Museum, prior to his departure that past year, had been in coordination with them. At this particular juncture, I would have to go back and find out what is going on. I do not have an immediate answer to that, I'm sorry.
Senator Raggio stated the joint Board of Trustees of the Department of Museums and History would be consolidated with the Advisory Board of Historic Preservation and Archaeology, and that it would become advisory versus its current policy-making authority, and asked, "Is that the case?"
Mr. Miller said, "That is my understanding."
Senator Raggio asked, "Does the change in the policy-making role vis a vis the advisory role cause any [discomfort] to the members of the board?"
I.R. Ashleman, II, Attorney at Law, Vice Chairman of the Board of Museums and Historical Society, replied:
We have a substantial sum of money given to us in trust by various donors, some of it restricted funds, much of it unrestricted funds, that we currently administer for the various institutions within the department. I am not certain as to the legal fallout from that. I would think that under the way the funds were given to us, we would have to continue to be effective fiduciaries of those funds, which would be more than an advisory capacity as to that aspect. As to whether we are advisory, or at least technically policy makers for the other functions of the overall department, I don't think that's a matter of great concern.
Senator Raggio asked, "What necessitated the change?"
Mr. Ashleman replied, "I can assure you Peat Marwick did not consult with me, sir, nor I with them."
Ms. Summers said, "...I believe that it's part of the desire of the Governor to consolidate state government, reduce the number of boards and commissions down to a more manageable level."
Senator Raggio commented:
I think what we are more interested in is why diminishing the authority to that of an advisory board rather than, as it has been, a policy-making board. Mr. Ashleman raises a point. If there was an advisory board, it may be inappropriate if they are going to be also enjoying a role as a fiduciary for funding of the type he is talking about. I don't know how far we can get into it, but I think there is a question you ought to look at.
Ms. Summers stated, "We'll certainly investigate this."
Mr. Ashleman said the board has been considering the possibility of reorganizing and combining these departments and are very supportive of the concept.
Senator Raggio asked, "Has your board considered fully, the financial impact that the reorganization will have upon the new department as a whole?"
Mr. Ashleman replied, "No, Mr. Chairman. Since we last met is when the budget material has been submitted. We are meeting again shortly, and certainly will take it up."
State Museum-Carson City - Page 1124
Senator Raggio requested Mr. Miller indicate any fee increases while going through the budgets.
Mr. Miller stated:
Base revenue sections are composed, obviously, of the General Fund. Other [Funds] is principally a combination of gifts, donations and admissions revenues. For this specific agency, we have recommended that the front door admission fee for individuals 18 [years old] and over be raised [from $2] to $3.
Senator Raggio asked, "Do you feel that the augmentation of that fee is going to have an impact on your attendance?"
Mr. Miller did not believe there to be any specific or "horrific" impact by raising the fee.
Senator Raggio pointed out the total funding remains at the same level. The General Fund reduction from actual is around $70,000. He asked Mr. Miller, "So, you anticipate that will be made up by the augmented fee revenue?"
Mr. Miller replied, "And give grants and donations to the extent that we also...composed within the other category are several positions that are paid for by the gifts, grants and donations, in this budget account."
Senator Raggio asked to have the additional position in the base budget resume explained.
Mr. Miller answered, "That is the transfer of the Management Assistant I position that I made reference to in the previous account." Mr. Miller stated the balance of the budget was rather straight forward.
Senator Raggio asked, "On category 200 [Maintenance] you are projecting a heavy increase in admissions?"
Mr. Miller said:
We are compensating for a poor decision some time ago, during the original budget cuts. I did away with one of the...attendant positions at this agency, and found out very quickly that was not something I could do in light of the basic controls at the front door of the agency, as well as internal control, from an accounting standpoint, and a myriad of other problems created. We are requesting that we be allowed to rehire that position... it was approved, I believe, during an interim finance meeting, approximately 3 months ago.
Senator Raggio asked, "So, you're asking for half of that from the General Fund, or from other revenues."
Mr. Miller replied:
We requested it as a General Fund appropriation in the current year, and then we cut it as a result of the budget cuts. What we're asking for is to be allowed to pay for that .2 position from private money. It was in June, I believe, of 1991, at the last Interim Finance Committee, while you were still in session, you approved an increase of a position also funded by private monies, called Program Analyst.
Senator Raggio announced Senator Callister is going to be monitoring personnel items for the Senate Committee on Finance.
He asked Mr. Miller, "On the narrative, category 200...it says `additional personnel is proposed to be supported by private revenue,' and it shows the source as Other. What is that? Is that from the fees?"
Mr. Miller replied, "Gifts, grants and donations."
Senator Raggio assumed the fees go into the General Fund.
Ms. Summers stated the admissions do not go into the General Fund.
Senator Raggio requested an overview of the indicators and number of visitors.
Mr. Miller pointed out the number of visitors during Fiscal Year 1992 was not nearly what had been projected. The museum had been closed during the time the seismic retrofit was done, and the target was not made. Mr. Miller is optimistic about making the target projections during the current fiscal year and pleased with attendance.
Nevada Historical Society - Page 1128
Peter L. Bandurraga, Ph.D., Director, Nevada Historical Society, commented:
The base budget is relatively intact from previous years. The one change of great significance is in the revenue portion...Admission Charge. We are proposing, the second year of the biennium, to institute an admission charge at the [Nevada] Historical Society.
Because of our physical configuration and because we do so much activity as a library, it has been difficult to collect one in the past. In the second year, simply for budgetary reasons, we will need the funding. Also, if it should come to pass the society moves galleries into a downtown location in Reno, we would need the funding there to support that activity anyway, and it would be appropriate and reasonable to charge there. If we are remaining in our current facility, we will have to figure out some kind of physical change. Perhaps a separate doorway for the library....The charge will be $2.
Senator Raggio inquired if he had not lost some positions.
Mr. Bandurraga stated he had lost three positions overall.
When the first round of freezes went into place, we were in the both fortunate and unfortunate position of having two positions open. The assistant director had just left to go to Arizona to take over a director's position in another museum. Our curator of photography had returned to teaching at Truckee Meadows Community College. We were in the process of recruiting, and those positions were frozen...We have acquired a new position of a registrar, which was scheduled to go on line in January 1992, and that was frozen and subsequently abolished. That's the unfortunate part of it.
The fortunate side, having open positions we are able to benefit our brethren in the agencies of the department, and avoid some layoffs. So, we weren't having to lay off anybody, but it has seriously impacted our particular functioning.
We are making arrangements to get the work accomplished. Our biggest concern was the registrar's position taking care of the collections, particularly the artifact collections. One of those accommodations Mr. Miller mentioned is the new housing, and our textile collections will be moved into that, along with the state museum's. With some private funding we will secure part-time help of a curator to take care of those portions of the collections, at least. But, we are making do.
Senator Raggio stated, "Your agency was included in the Occupational Study Group. And do you have some requirement under the ADA [American Disabilities Act]?"
Mr. Bandurraga replied:
Yes, sir. We do a lot of public programming, and we believe under ADA we are required to get a listening assisting device for our library....The funding source for the needed TDD [Telephone Device for the Deaf] is out of private funds.
Senator Raggio queried Mr. Bandurraga to the Performance Indicators.
Mr. Bandurraga offered:
Actually the Fiscal Year '93 projection is based on the actual of '92. In the first 6 months of this fiscal year, we're actually up 10 percent over attendance in the first 6 months of the previous fiscal year. Also, in the first 6 months of this fiscal year, our research requests are up about 2.5 percent over the 6 months of the last year.
Mr. Bandurraga stated the Nevada Historical Society gives about five exhibits a year.
Senator Coffin commented on the new budget format, where micro-management of the budgets are avoided. If you find money needed to be used for something elsewhere within the budget, you can use it without having to go to Interim Finance.
Mr. Bandurraga agreed.
Ms. Summers stated there is greater flexibility. "If you move more than $2,000, we would have to come to you."
Senator Raggio asked, "What does conservation cover?"
Ms. Summers replied:
There are six standard categories that are capable of appearing in every budget. There is the salary category, in-state travel, out-of-state travel, operating equipment, and in a very few, lands and buildings. After that the categories are not generic any longer. They are specific to the agency that you are dealing with. This particular agency has a category called conservation. I believe it was more to preserve acquisitions that they already have.
Mr. Bandurraga handed out a report Maps to be Conserved with Appropriated Funds (Exhibit J), and discussion began on the document.
Nevada State Railroad Museum - Page 1132
Mr. Miller stated the Nevada State Railroad Museum currently charges $1 admission for an adult 18 years old and over. The fee will be increased to $2 admission, effective July 1993. He mentioned it is not their intention to raise the fees to ride the train.
Senator Glomb remarked, "Under Performance Indicators, you projected 24,000 and had 54,000 [visitors]. What happened?"
Mr. Miller stated, "A lot more people came than we thought."
Senator Raggio encouraged Mr. Miller to move to the enhancement portion of the budget.
Mr. Miller commented:
The train rides, obviously, are a major draw to this agency. We eliminated train rides last year, as a means of saving that $9,000 General Fund appropriation, recognizing that the total cost of the program, which is offset by the train-ride revenue we make, was going to only save $9,000 and we still had to make up the $15,000. We were able to do that with the increase in admissions, as noted from the number of bodies that came through the door.
What we're asking for here is the authority to try to break even, if you will. We think we can make $15,000 in train-ride revenue. That amount of money will be turned over directly back into the program to support it. The principal expense is insurance and the operating expenses for the trains and the motor cars.
Senator Raggio asked, "Are you anticipating some donation, otherwise, from the Visitors' Bureau here in Carson City?"
Mr. Miller answered:
No, sir. That was a one-shot donation made last year. Because of the abruptness with which we canceled the train rides here in town and because that does indeed have an impact on the tourism in this town, the Convention and Visitors' Authority was kind enough to make us an advance of $9,000 which paid for, at that time, the cost of our liability insurance, as well as the minimal amount of fuel oils that we were able to get our hands on, so we could run on Labor Day, and I believe, subsequently, one other time after that. That will also carry us through this fiscal year for the operation on Memorial weekend.
Senator Raggio asked, "Will this revenue cover your liability insurance?"
Mr. Miller replied, "Yes, sir. That's the principal thing that does, is cover our liability insurance."
Senator Raggio inquired, "Do you have any reconstruction projects under way?"
Mr. Miller answered:
Yes. In fact, with any luck at all, we intend to invite all of you, the legislature as a whole, down on the 28th of April this year, insomuch as we want to try to have one of the pieces of equipment, at least steamed up, for your observation and enjoyment.
Senator Raggio asked, "Did we note somewhere that the ongoing argument with Virginia City over the engine has been resolved."
Mr. Miller replied, "To the best of my knowledge it has not been resolved as yet, sir....I would suggest, right now, that it is pretty much in the Governor's hands."
Senator O'Donnell referred to the Expenditures column, Reserve for Reversion in the amount of $86,064, and asked, "Why is that?"
Ms. Summers answered, "That represents the budget reduction that this agency offered up during the budget reductions during this fiscal year."
Senator Coffin asked if the acquisition of the Boulder City Railroad went through.
Mr. Miller stated the acquisition is in escrow at the moment. "There are a total of five contracts to purchase, with five separate controlling parties." He anticipates an early closing, and the agency will begin taking title to all these pieces. The agency was unable to sell the bonds that were authorized. The money was made available in cash by Clark County specifically, and the cities of Boulder and Henderson, who intend to repay themselves through issuance of bonds. Boulder City will probably issue the bonds in toto through their jurisdiction, and would pay back in some fashion from their issuance to the other two parties. The state will have the title, and will not have to pay for them.
Railroad Depot - East Ely - Page 1136
Senator Rawson asked, "Didn't we have a bill that required or suggested that there be an inventory of the Ely Railroad holdings? What's happened with that?"
Mr. Miller stated, "I am not familiar with a bill that required us to inventory the Ely holdings."
Senator Rawson commented, "I'm not sure it passed all of the stages. I know there was something."
Mr. Miller said:
In answer to your question, Senator Rawson, the issue ...was we did indeed need to inventory the total facility as a prospect for the state becoming involved in some total fashion. You will recall that during the interim the commission established the study on state parks. That was brought to the attention of the state parks study group, and no action was taken on that.
The basic position, again, that I would give you is during these budget cuts everyone was having enough time taking care of everything we already had in our back pockets. Frankly, it was very difficult to project anything further in Ely....You passed, last year, at the Governor's recommendation, the establishment of some level of museum activity there, which is what is reflected in this account.
We did hire, have had on line since May of last year, a curator of history, whose job it is for thorough and complete inventory and care of the collections owned by the state currently, and he is engaged in that daily.
Senator Rawson requested a list of what is available.
Mr. Miller offered to get Senator Rawson a "rough catalog of the materials that the state controls."
Senator Glomb expressed her pleasure with her visit to the Railroad Depot in Ely and asked Mr. Miller if the machine shop roof has been replaced. Mr. Miller had no idea of what repairs, if any, had been made to the roof.
State Museum - Las Vegas - Page 1139
Mr. Miller said the agency is not expecting to raise admissions or fees. He mentioned it had been a difficult time getting the facility moving. "A lot of start-and-stop action over the years." The current fee for adults 18 years and older is $2.
Senator Raggio suggested reviewing the Enhancement portion, Executive Budget page 1140. "You had a request, which was not recommended. What was the request?"
Mr. Miller replied:
To rebuild the director's position. Last summer, the gentleman who was director of the museum...took a position in Montana, and the position was lost as a result of the budget cuts. The request was made to refill the position based on the geographic delivery of services concept, since Las Vegas is quite a distance from Carson City, and it is rather difficult to manage the facility, which was the premise under which the enhancement was solicited.
Senator Rawson asked if the director left disgruntled, or was he offered a better position. Mr. Miller replied the gentleman was offered quite a bit more money to take a higher-level position with the Museum of the Rockies in Bozeman, Montana.
Senator Raggio referred to Executive Budget Page 1142, the Performance Indicators.
Mr. Miller stated five exhibitions were made within the past year, despite sizeable funding cuts, and an additional four exhibitions are planned for this year.
Lost City Museum - Page 1143
Senator Rawson said some repairs were made to the roof to stop the leaks and erosion of the adobe and questioned whether or not there are still serious problems.
Mr. Miller stated, because of the nature of adobe, there is going to be an ongoing problem forever.
Certainly the Mormon Fort has the problem...but, the repairs we made stood up very well. We did get a new mix of adobe...The roof itself, we still have a couple of places where it is not doing real well around the skylights, but we use caulking and putty, and whatever to keep patching it.
This agency is seeking an admission fee increase of $1 current to $2 beginning July.
Senator Raggio asked, "Do you have mostly tours?"
Mr. Miller said a large percentage of admissions were tours and will be impacted temporarily. This agency is one of the highlights on most every tour bus company's route in southern Nevada, because of the uniqueness of the pueblos.
Nevada State Library - Page 1159
Senator Raggio welcomed Joan G. Kerschner, State Librarian, State Library and Archives, who stated:
Our budget account is reflected in three different areas. We have the General Fund appropriation. We have federal funds, which you are familiar with from the previous sessions. Three titles of federal funds, Library Services and Construction Act, and those funds are primarily regranted to the public libraries for improving public library services in Title I. And for Title II, for construction library facilities, or remodeling. And in Title III for doing...projects for schools and university libraries.
The other category includes a number of fund-raising techniques that we want to do to help offset some of our budget losses, including fines and fees, and including some costs to the counties for the statewide catalog, and including our book budget. Those are the only changes in our Revenue accounts.
Senator Raggio asked, "The Other item includes what you just referred to?"
Ms. Kerschner replied, "Yes. Those are our funds that will come from gifts, grants, donations, fund-raising, and that kind of activity."
Ms. Kerschner continued:
The changes that you see in the base budget, or maintenance budget, are primarily in this case because of the way the federal funds flow. I want to point out that even though the federal funds flow through the maintenance and enhancement budgets, we are not expecting an increase, particularly, in any of those federal funds categories.
The base budget just reflects the amount of federal funds we expended in that fiscal year, and the maintenance and enhancement is because, sometimes when we regrant monies we have a 2-year expenditure period. The libraries who are receiving them, for example, if they are under construction, and they are held up or something, we hold the funds, and don't draw them down. So, that's why it shows more in some fiscal years than others. The base budget reflects the loss of the positions we lost during the budget reductions, which was in all of our budgets, totaling nine-and-a-half positions, plus some in-special budgets.
Senator Raggio referred to Data Processing under Expenditures.
Ms. Kerschner explained, "That is a position that was a position in the State Library, and they are recommending these positions be consolidated into the Data Processing budget."
Mr. Hataway commented, "You'll notice, on the line that says Data Processing, that it increases quite a bit, and that's the reflection of moving that position from Salaries to Data Processing."
Senator Raggio asked, "So, that's the reason we have one less existing position, and the expenditure will be to the data processing central agency?" Mr. Hataway agreed.
Senator Glomb asked if the Nevada State Library was getting an audio-visual educational system.
Ms. Kerschner replied, "That's a recommendation in the Enhancement Budget." She added, "There is one position recommended in our Maintenance Budget, and that's based on the requirements of the American Disabilities Act."
Senator Rawson stated:
We really can't look at figures as far as the number of monthly users, but it looks like, even with the loss of the positions, you've been able to maintain circulation that requests inter-library loans, and so on. But, has there been a change in the inter-library loan policy, as far as charging, and so on?"
Ms. Kerschner replied:
Not with our agencies, Senator. However, for the first time in a statewide basis, the University of Nevada, Reno has instituted a charge [of $5] for their library loans. As a result of that, some of the smaller libraries who couldn't absorb that in their budgets have asked us to reimburse them so they didn't have to pass that charge along to the public. We aren't quite sure what that impact will be until we receive their first set of billings within the next few weeks.
Senator Rawson said he has been receiving complaints from people, who feel they have less access to the library. He asked, "Is there any kind of an agreement, is there any kind of an obligation to share reserves? Do you share things with the university without charging?"
Ms. Kerschner replied, "In the past, all the libraries have freely loaned their materials within their own lending policies. The university still wishes to lend, but not for free, for $5 per loan."
Senator Rawson pointed out the university was still getting source material from the Nevada State Library at no charge. He asked, "Is it conceivable they would be charging somebody else for something they would send to them, that they have gotten from you at no charge?"
Ms. Kerschner replied it could be conceivable, but probably would not happen very often.
Senator Rawson referred to the rural bookmobile. "Are we maintaining that? Is that still getting around?"
Ms. Kerschner answered:
Yes, sir. You'll see on the base budget, the $70,000 figure. If you recall, 2 years ago, you and the legislature enhanced the amount of money to go to bookmobiles. Unfortunately, at the time when we were asked to reduce our budgets overall 20 percent, we also reduced the bookmobile budget 20 percent.
We made an attempt to make up for that with the counties, because we have routinely given them federal grants to buy books to put on the bookmobile, and we authorized them to direct those book monies into the operations of the bookmobile. So, operations did not subside because of this cut, but they did not purchase any new books unless they could find the funds elsewhere.
Ms. Kerschner mentioned she was unable to speak with the person from Elko, who runs the largest bookmobile operation, because she was out of town. However, Ms. Kerschner believed the bookmobile would have to be shut down this summer.
Senator Rawson asked if Ms. Kerschner was making any recommendation for charging the university system for their requests.
Ms. Kerschner prefers to avoid charging on a statewide basis and also avoid the paperwork and accounting involved in charging.
Senator Rawson stated it is important to him to have a statewide network capable of sharing anywhere in the state, all of the resources available, without cost.
Senator Glomb stated, "The budget indicates gifts and donations of $153,000 for purchase of books. Are you anticipating continuing to get that kind of donation for the purchase of new materials?"
Ms. Kerschner replied, "Continuing is not the right word. We've never been in the business of fund-raising for books and materials before. So, it's a new activity to attempt to offset some of our budget reductions."
Senator Glomb asked, "Will that help to offset the bookmobiles, keeping them stocked with materials?"
Ms. Kerschner answered:
No. That $153,000 is strictly for the State Library's book budget, that was lost in the budget cuts. And, so any money for the bookmobiles, the counties would be responsible for looking for that money from whatever source they can get it.
Senator Callister asked why the bookmobiles would have to close down during the summer months.
Ms. Kerschner replied, "There is a reduction in the amount of money that the state will pay for the operation of the bookmobiles."
Senator Callister remarked, "It's actually a $26,000 reduction. And, although they did manage to stay open year-round...they are now anticipating to close in the summer months."
Ms. Kerschner stated:
I'm not absolutely sure, but I know that the Elko library was able to get what was called a one-time $10,000 grant from the school district there, and they asked her not to come back and ask for it every year because of their budget problems....She said if she was not able to raise that difference, she would have to shut down operations for the summer.
Senator Callister remarked, "And, it's also because of this same reduction from the $96,000 to the $70,000 that they haven't been able to purchase any new products, for how long?"
Ms. Kerschner commented:
The funding that they were to receive from us, to purchase new books...they diverted to operations. So, unless they had another source of funds that they came up with from fund-raising, it would have been for all last
year, and then continued into this year, they'll have to find alternatives for funds for that.
Senator Callister asked:
Is there a way of determining, for example...I understand that Elko was the outpost, if you will, from which the bookmobile services a number of rural areas. But, of course, within the community of Elko, people, I imagine, go to their local library. They have a more realistic alternative than perhaps in many of those smaller communities that are serviced from there. I guess there's no way to try and devote your resources to the most remote areas, in order to keep it available year-round, and maybe even buy a book that's newer than 2 or 3 or 4 years old, before you see us again in those more remote areas.
Ms. Kerschner stated the cost, in the operation, fuel, bookmobile driver, etcetera, is what has been being subsidized.
Senator Callister said he would be troubled to see that reduction. Although $26,000 is a lot of money, the bookmobile is such a vital lifeline for the people in the outlying rural areas.
Just staying in touch with the rest of the world, and the kids that are out there, who inundate me with correspondence every year. I'm just really troubled to see that level of reduction and would hope that there is some way we can find $26,000 someplace else to address that in the constraints of this budget.
Senator Glomb stated, "In addition, I have some concerns about them being expected to raise nearly $200,000 each year to pay for new materials books. That's almost half-a-million dollars over the course of the biennium."
Senator Raggio said the performance indicators speak for themselves, unless Ms. Kerschner wanted to make some additional comments.
Ms. Kerschner said the attempt was being made to increase the number of volunteers so that services would not have to be reduced any further than absolutely necessary.
Senator Raggio commented:
Two items. You mention briefly that there would be some collection from the counties. Is that in addition to what you have been talking about? And, our staff indicates that there's an anticipated collection of $40,000 in FY 94, and $55,586 in FY 95, to pay for statewide catalog, is that correct?
Ms. Kerschner replied, "Yes. One of our other budget reductions has been in the area of support of the statewide catalog." This enables every school library, university library, and public library to see what each other owns, and freely borrow and lend.
A number of things have been done to make up for loss of support of the catalog. One was removing the university holdings, which cuts the costs of producing the catalog in half. Alternate ways are being looked at for local libraries to get to the universities through on-line catalogs. The counties have begun to be billed for their participation in the catalog. Their first bills will go out next week, ranging from $400 for a small library to $1,300 for a large library.
Senator Callister, regarding the performance indicators, said:
I can't recall the procedure through which these were determined. Again, it troubles me not to see, and perhaps I'm not interpreting these correctly, a performance indicator that targets...that attempts to address the issue of service in your remotest areas of the state, via the bookmobile. Is that built into one of these factors that I'm not seeing?
Ms. Kerschner replied:
No, sir. These performance indicators are for the Nevada State Library and Archives physical facility that we operate here. We regrant that bookmobile money to the Elko County Library, Humboldt County Library, and the Lincoln County Library, three hub centers to operate. They have those statistics, and we could certainly provide those to you.
Senator Callister expressed a desire to see the statistics. He added, "I can't imagine a more crucial function for the State Library than to fill the gap in those remote areas of the state where they have no other access to a library...."
Senator Glomb asked if the Legislative Hot Line, under Performance Indicators was something new.
Ms. Kerschner answered, "No." The Legislative Hot Line has been operated by the state library in the Legislative Building since the late seventies.
Senator Glomb further asked, "What's being brought under State Library now in terms of reorganization?"
Ms. Kerschner replied, "All of our organizational structure remains the same, with the library, archives, records managements... and we will be one of the divisions in the new Department of Museums, Library and Arts."
Archives - Page 1165
Ms. Kerschner indicated there are three sources of revenue, General Fund the primary source of revenue, federal funds the Archives is eligible to receive as matching costs for traveling of an advisory board, which the federal government requires, and funding anticipated being received as revenue for copying of materials and doing research for materials in the Division of Archives.
Senator Raggio stated, "There are no significant items under either the Maintenance or Enhancement portion of this budget, although there was a significant request for Enhancement. What was that for?"
Ms. Kerschner said the agency had long hoped for the ability to organize some of the many collections coming into the Division of Archives. Many boxes are now being stored on shelves and have not been examined as to their contents.
Senator Raggio stated during the last session there was $225,000 appropriated to this division to complete a records scheduling project to be initiated. "Do you know the status of that?"
Ms. Kerschner handed out a copy of a letter to her from Robert van Straten (Exhibit K), outlining the Records Scheduling Project.
Robert van Straten, State Records Manager, Division of Archives and Records, referred to Exhibit K and discussion ensued.
Literacy - Page 1169
Ms. Kerschner commented:
The Literacy program is recommended to be funded with General Fund for salaries, with federal funds for operating. Those federal funds come from Library Services and Construction Act, Title VI. This program has been highly successful, most recently, in trying to organize the many diverse groups out there, who provide some sort of volunteer tutoring. And, there have been far more than we ever would have anticipated....I think there are over 160 groups out there, affiliates, that are doing some kind of volunteer tutoring in the literacy arena.
We are, at this moment, publishing a directory of those, as well as providing guidance and direction to those agencies to help them become more organized, keep their volunteers, keep their volunteers trained. We use federal funds to do a lot of training of volunteer tutors, and we also are requesting that some of these diverse groups become a little more structured, and report the number of hours they work with students, and what the students' progress is. That's a painful transition for some volunteer groups, but they are learning the benefits of that.
Senator Raggio asked, "Why does it indicate on page 1172 that you actually had 1,600 volunteers, and you are now expecting 800. Am I reading something wrong there?"
Ms. Kerschner reiterated the groups are being helped to get a little more structured. They were not used to reporting to anybody. The volunteers now have to spend 12 hours with a student before they are counted. "That would account for part of that difference. The other is just a better accounting procedure." She assured there would be much more accurate figures in FY 94 and FY 95.
Senator Raggio asked, "If someone is interested in the program, as a potential student, who do they go to?"
Ms. Kerschner said:
We have a toll-free hot line, that rings at the state library. That's all over the state. We try to advertise these services routinely through all kinds of social service organizations. That's why we have a Literacy Coalition Advisory Council, because all the state agencies who serve clients, that would be in need of these services, are well aware of our services, and we try to have a strong referral network to get them to the local provider that will provide the services. We don't do the actual tutoring at the State Library and Archives.
Senator O'Donnell commented, "I notice a lot of MAs [Management Assistants] in the first category. Is that because you just haven't been keeping track of what you've been doing?"
Ms. Kerschner replied, "That's actually in Fiscal 92, and that was at a transition time, again when we were changing over to a real reporting period."
Senator O'Donnell said, "Well, we spent $107,000 in '92, and the only thing we have to track with that is 150 phone calls."
Ms. Kerschner stated:
We probably have a lot more, but we're sure of the accuracy of the information. We were publishing directories of organizations at the time. We certainly have a lot of detail on how many people were served in funded programs....Maybe we should show it to you in two parts, the accurate information versus the ones who didn't report.
Senator O'Donnell remarked, "Two more questions. One is, why a reduction to almost half of the number of community-based organizations? You went from 122 community-based organizations to 59."
Ms. Kerschner answered:
"...We've gone through a tremendous effort to consolidate our definitions with the Department of Education, Employment Security [Department], and every other agency who tracks these kinds of programs. So, maybe we were using a different premise in counting what a community-based organization is. Actually, what we've done is really increase the number that we've identified of Literacy Affiliates, and in our new directory there will be 156 organizations, much more than we had anticipated.
Senator Raggio stated, "...That's going to be a very important aspect of the way we approach these budgets, so we're going to have true, true performance indicators here."
Senator O'Donnell remarked, "The 10 family literacy programs. What are those going to be? Do you have those planned now?"
Ms. Kerschner replied, "Some of them are up and started." She asked Emmy Bell to respond to Senator O'Donnell's question.
Emmy Bell, Coordinator, Nevada Literacy Coalition, commented:
The effort we have planned to develop 10 family literacy programs is a goal that we've set with the Governor's Literacy Coalition Advisory Council. Already there's one program in Fallon that's the Even Start Program, which is federally funded. This year there will be a second Even Start Program founded in the state.
There's a family that seeks coalition now, in Las Vegas. And, there's another program that's called SEEK, that's Summer Education Enrichment for Kids, in Las Vegas. So, we will have four now, and we're working to identify other programs. Programs like the Children's Cabinet in Reno, where they do a lot of work with at-risk children.
Senator O'Donnell asked, "Are these families nationals, or are they foreign people who have moved here?"
Ms. Bell replied, "I think it's a combination."
Senator Glomb asked, "What is the illiteracy rate in Nevada?"
Ms. Bell answered:
We're working on that. We used to say that it was around 10 percent of the population were illiterate. But, the definition of literacy has changed with the National Literacy Act of 1991....The new definition includes reading, writing, math, ability to solve problems, ability to achieve one's life goals, and to find meaningful work. So, we're kind of struggling with that.
Senator Glomb asked if the prison population and juvenile correctional facilities are included.
Ms. Bell replied, "They're counted as part, I believe, of the general census."
Senator Glomb commented the prison population and correctional facilities population's rate of illiteracy is much higher than the national average.
Ms. Kerschner stated, "The National Literacy Act specifically targets prison populations as a group to work with."
Senator Glomb asked, "And, do we?"
Ms. Kerschner replied, "Yes. We have just begun to work with the National Literacy Act, which was just passed, and a prison director has been added to our advisory board."
Senator Glomb stated, "The last legislature approved some funding support from the job training and partnership office. What happened to that? Are you still doing that?"
Ms. Kerschner replied:
We have that pending in this biennium, however there was always a question as to how appropriate that funding was for this particular program. And, they had used some carry-over funding for the past 2 years, which they no longer have available.
Senator Glomb said, "It seems that this program would connect very well with several other social, employment, education programs."
Ms. Kerschner agreed. Then, she distributed a newsletter from the Nevada Literacy Coalition (NLC), (Exhibit L).
Nevada State Library-CLAN - Page 1174
Ms. Kerschner stated:
This budget has been supported primarily from federal funds, which come from the Library Services and Construction Act, and then, of course, the largest amount of money is from each of the participating libraries. Not all of them got mentioned for some reason here, but there are 12 participating counties, the State Library, and then we have affiliates with the Supreme Court and Western Nevada Community College.
All of the participants in this automated circulation and cataloging system pay their share of the operating costs. So, that's what you see is the reflected operational costs there from other counties, and the State Library, and then the cooperating counties routinely apply for grants for enhancement of their equipment.
Senator Raggio questioned, "They all share a data base on this?"
Ms. Kerschner agreed. Senator Raggio continued, "Where is this housed?"
Ms. Kerschner said, "It's housed at the Nevada State Library now."
Senator Raggio asked, "Is that the best place for it?"
Ms. Kerschner replied, "Well, we believe so. We just moved it there from the Ormsby Public Library because our new facility is designed with a computer facility to maintain it."
Senator Raggio announced to the committee he had met with the Speaker of the Assembly regarding a special committee to make recommendations on the reorganization. The Assembly is having three members from the minority party, and "subject to the approval of our body, we would appoint a like group to meet with them." He announced the group intends to meet Tuesday, Wednesday and Thursday of next week, around 4:00 p.m., for probably a couple of hours to really get a firm understanding on the reorganization.
There being no further business before the committee, Senator Raggio adjourned the meeting at 10:59 a.m.
RESPECTFULLY SUBMITTED:
Joan McConnell,
Committee Secretary
APPROVED BY:
Senator William J. Raggio, Chairman
DATE:
??
Senate Committee on Finance
January 28, 1993
Page 1