MINUTES OF THE
SENATE COMMITTEE ON FINANCE
Sixty-seventh Session
April 28, 1993
The Senate Committee on Finance was called to order by Chairman William J. Raggio, at 8:28 a.m., on Wednesday, April 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 Glomb
Senator William R. O'Donnell
Senator Matthew Q. Callister
STAFF MEMBERS PRESENT:
Dan Miles, Fiscal Analyst
Bob Guernsey, Principal Deputy Fiscal Analyst
Marion Entrekin, Committee Secretary
OTHERS PRESENT:
Thomas E. Cahill, Director, Colorado River Commission
Douglas Beatty, Chief Financial Manager, Colorado River Commission
Gerald Lopez, Deputy Attorney General, Colorado River Commission
Judy Matteucci, Director, Department of Administration
Robert Dickens, Director of Government Relations, University of Nevada, Reno
Arthur Anderson, Concerned Citizen
Senator Raggio opened the meeting for discussion of Senate Bill (S.B.) 19.
SENATE BILL 19: Revises authority of Colorado River commission to issue bonds.
Thomas E. Cahill, Director, Colorado River Commission, expressed his support of S.B. 19 to increase the maximum amount of bonds the commission may issue for two projects at the Southern Nevada Water System. His written testimony (Exhibit C) was read for the record.
Referring to Mr. Cahill's testimony in which he stated the language should be retained in the existing subsection 1(d)(5) of section 1, page 2, of S.B. 19, Senator Raggio asked if the language of the bill must be retained since the bonds have been lawfully issued.
Gerald Lopez, Deputy Attorney General, Colorado River Commission, replied from a legal standpoint the language is not needed, but the commission feels it will give the bondholders some comfort to have the language retained until the bonds have been fully retired.
Senator Raggio referred to item 2, line 18, of S.B. 19 authorizing $10 million and asked what the commission has determined the cost actually will be for new hardware and software needed for the treatment, testing, processing and delivery of water.
Douglas Beatty, Chief Financial Manager, Colorado River Commission, replied it will cost $10 million to fully acquire, equip, replace, and improve computers and computer programs so that the quality of water will comply with federal requirements regarding water quality.
Senator O'Donnell was curious to know what type of computer system would cost $10 million.
Mr. Beatty said this will be a very large and sophisticated computer system that will control 27 pumping stations located throughout the valley.
Mr. Lopez pointed out to Senator O'Donnell that he should not think of one piece of equipment located at the water treatment facility but parts of equipment located at each of the 27 pumping stations. These computers tell the pumps to turn on and off and inform the operators how much water is flowing through the pumps while constantly monitoring the volume of water in the reservoirs.
Senator O'Donnell commented this amounts to $330,000 for each of the 27 pumping stations.
Senator Raggio requested the commission present the committee with the actual estimate of costs and a detailed outline of the type of equipment and where it will be placed so that the committee will understand why this system will cost $10 million. He indicated S.B. 19 will be held pending receipt of this information.
Mr. Beatty stated they will provide this information.
Senator Callister said he is troubled over spending $10 million on computer hardware out of bonded indebtedness and another $1 million for a communication system, maintenance costs, and repairs. He asked, "Why do you want to use bonded indebtedness to service those kinds of operational expenditures?"
Mr. Beatty answered the commission does not bond for operation and maintenance costs. Section 1 (2) refers to the facilities that upgrade for this purpose.
Senator Callister commented there is some very broad and general language in the bill that would appear to authorize general indebtedness for a wide variety of things, not just facilities.
Mr. Beatty responded the commission had never contemplated using bond indebtedness for operational costs, and the customers are the ones that repay these bonds and approve all of the major capital projects.
Senator Raggio indicated if the bill is amended, the issue of the language can be clarified at that time.
Referring to section 2 of S.B. 19 mentioning the continuing obligations of the State of Nevada, Senator Raggio asked Mr. Lopez if this referred to revenue bonds.
Mr. Lopez answered, "They are partially revenue bonds and partially general obligation bonds."
Senator Raggio questioned, "Are these included when we ascertain the total obligation of the state and our concern about the ratio of general obligation to revenue? Does this factor into that determination?"
Judy Matteucci, Director, Department of Administration, replied the bonds are considered to be self-supporting bonds and are excluded from the calculation of debt ratios.
Mr. Lopez concurred they are self-supporting bonds and they also support the state's natural resources.
Senator Raggio closed the hearing on S.B. 19 and opened the hearing on Senate Bill (S.B.) 361.
SENATE BILL 361: Establishes office of science, engineering and technology within the commission on economic development.
Senator Rawson distributed (Exhibit D), amendment to S.B. 361. General discussion followed among the committee members concerning sections 2, 3, and 5 of the amendment covered in detail by Senator Rawson.
Exhibit E, another amendment to S.B. 361, was distributed and Senator Rawson reviewed its contents with the committee.
Senator Rawson pointed out the amendments (Exhibits D and E) are an attempt to describe a high-level individual experienced and capable of directing advance programs in science, engineering, and technology. This position would also involve the coordination of all these types of programs within the state as well as serious economic development and diversification.
Senator Coffin referred to section 3,(4),(b) of Exhibit D recommending alternative uses of the Nevada Test Site that will most effectively utilize the technology that is available at the site. He suggested the language be broadened to include technology available throughout the entire state.
Robert Dickens, Director of Government Relations, University of Nevada, Reno, suggested the language, "or other federal facilities" be added to section 3,(4),(b).
Senator Rawson suggested adding, "or other federal facilities or projects" so that this section will read:
Recommend alternative uses of the Nevada Test Site that most effectively utilize the technology that is available at the site or other federal facilities or projects.
Mr. Dickens stated he believed this would provide the scope suggested by Senator Coffin.
Senator O'Donnell commented he believed the new director position was supposed to be unbiased and not a political appointment. He referred to section 2, (1) of Exhibit D that states the Office of Science, Engineering and Technology would be established within the Office of the Governor. He remarked:
....if we are going to put this [position] under the Governor's office, we are going to be contaminating this scientist politically. I think we ought to be as apolitical about this as we possible can, and putting this position under the Governor's office and not the Desert Research Institute is ludicrous.
Senator Raggio stated when this bill was requested by this committee a decision was made at that time to move this office as proposed from the new Department of Museums, Library and Art into the Commission on Economic Development. He recalled the Governor had acquiesced in that decision; and [United States] Senator Harry Reid, upon addressing the joint session of the legislature recently, recommended that this position should be depoliticized and placed under the direction of the Commission on Economic Development. Senator Raggio shares the concern there is further departure from this decision.
Arthur Anderson, Concerned Citizen, said he works as a volunteer and serves on a number of advisory committees associated with the University and Community College System of Nevada (UCCSN).
Mr. Anderson stated he does not believe it would be advisable to place the new Office of Science, Engineering, and Technology under the direction of the UCCSN. He feels the UCCSN is subject to enough challenges already and the science advisor will have to be impartial in judgment with respect to the programs and coordination of science, engineering, and technology within the system itself. He believes this individual should be placed in a position where he or she really must make impartial judgment decisions.
Senator Raggio commented he believed it would be inappropriate for the Governor to make the appointment and obtain recommendations from the Commission on Economic Development, Nevada Industry of Science, Engineering and Technology, and the Nevada Test Site Contractor's Association.
Senator Jacobsen said he would like to see some justification for having a science advisor to determine if this position would be an advantage to the state, especially since the range of his responsibility would be so broad.
Senator Rawson remarked there has been a lot of testimony on different issues that have come up this session regarding Nevada's deeper involvement in economic development issues. He said Nevada is more dependent on gaming today than 10 years ago due to the growth within the state and in gaming.
To compete with firms that are leaving California, Senator Rawson believes the state will have to show a willingness to support the movement of these firms to the state. He also believes Nevada will lose the remaining 10,000 jobs at the Nevada Test Site unless something dramatic is done to change this. At the present time, Nevada does not have an individual in the state to advise the Governor and the legislature as to what are legitimate and worthwhile science projects. Senator Rawson opined Nevada would not be facing the loss of the test-site positions if there had been such a person involved and said if the state ever needed someone to offer stimulus to its economic development, it is now.
Further discussion ensued regarding S.B. 361 within the committee.
Senator Raggio stated he does not believe a good reason has been given to change the committee's original direction of placing the Office of Science, Engineering and Technology under the direction of the Commission on Economic Development, although he would welcome the concept that the scientist would report to the Governor.
Senator O'Donnell concurred with Senator Raggio's remarks and stated he would like to see a return to the original bill.
In the interest of time, Senator Raggio stated discussion regarding S.B. 361 will be deferred and asked Senator Rawson to revisit the amendments to discuss at a work session on April 29, 1993.
Senator Raggio said the committee was given Exhibit F, a letter dated April 27, 1993, from Judy Matteucci, Director, Department of Administration, concerning a management analyst position for the independent boards and commissions. He stated if approved, the management analyst would be placed in the new Department of Business and Industry to serve as a contact person for the occupational-licensing boards and commissions.
The issue before the committee today, Senator Raggio remarked, is to determine if there should be an additional assessment on the boards to sustain an additional position. The chairman expressed his concern and opposition to an additional assessment. He pointed out that in reviewing previous minutes when the present position in the Budget Division was first funded in this manner, that was to be the function of that position. Accordingly, Senator Raggio believes the approval of the management analyst position would require an additional assessment.
Ms. Matteucci remarked her recollection for the establishment of the position in the Budget Division was to comply with the statutory requirements of Chapter 353 of Nevada Revised Statutes relative to budget issues and to insure the state's administrative manual requirements were being complied with. She does not believe this position was ever intended to serve as a consumer-contact point.
Senator Raggio drew attention to Ms. Matteucci's statement that the position in the Budget Division was to ensure compliance with budget issues, and that is exactly why the position was created.
Ms. Matteucci concurred but added that position is not meant to serve as a contact point regarding the concerns and activities of the boards and commissions. This individual presently does not attend all of the meetings of the boards and commissions to make certain their policies and regulations are in compliance with other nonfiscal policy-related issues.
Senator Raggio commented, "You are not suggesting that if we create this position that person is going to be able to attend all of the meetings of the occupational boards?"
Ms. Matteucci replied it would be expected that person should be able to attend a large portion of the meetings.
Senator Raggio remarked he does not think this will be agreeable to the occupational boards who are already concerned the creation of this position is an attempt to open the door to regulation that they do not feel would be appropriate.
Ms. Matteucci said it would be very difficult for the management analyst to be aware of what is going on if this person does not attend the large majority of the meetings. Also, she believes this position would serve to perform research and answer questions for individuals who have inquiries about the boards and commissions. The position in the budget office was never used for this purpose.
Senator Callister remarked:
This has been a difficult decision for me as I will acknowledge that I was originally not convinced that this was a meritorious request, but I am now leaning the other way....I believe it would be inappropriate that I come down strongly in support of maintaining the independence and the existence of the occupational board approach that this state has maintained for years, yet at the same time say I would deny the Governor an opportunity for a closer liaison. I think in the south there is still the general premise that we are 450 miles away from much of the executive branch interaction with our day-to-day governmental needs. I am pleased to see this liaison is envisioned as an external-contact point not only for the boards and commissions to contact the state on policy- related issues but also for taxpayers to contact relative to complaints. I think that two-way dialogue is needed. I support this position. I think it is important, and I do not view this one position as an encroachment on the authority of the boards and commissions.
Senator Coffin asked if the boards and commissions have either their own counsel or someone from the Office of the Attorney General to assist them from encroaching upon the authority or others.
Ms. Matteucci answered they can have either. They can use the Office of the Attorney General,or they have specific statutory authority for their own counsel.
Senator Coffin asked if the direction of policy is encompassed in the NAC (Nevada Administrative Code) under which the boards operate.
Ms. Matteucci replied the direction of policy is as each board sees it necessary. Their attorneys work for them in an attorney-client relationship and develop the NAC in compliance with the statutes. Whether or not that conflicts with what another executive agency has done is not the concern of the attorney general but is the concern of the Governor because the resolution of the problem, when it finally reaches a point of impasse, becomes a problem for the Governor.
Ms. Matteucci said she could not understand why one position is considered to be so onerous, because even if the establishment of this liaison individual could avoid even one of the problems encountered by the boards, it would be well worth it since communications will be vastly improved.
Due to time constraints, Senator Raggio asked for a vote regarding the retention of the assessment recommended in the Governor's Executive Budget on the occupational boards and the establishment of a management analyst position in the Department of Business and Industry.
Senator Raggio asked for a show of hands of those in favor, and Senator Callister and Senator Glomb voted in favor of the assessment and position.
Senator Raggio asked for a show of hands of those opposed, and
Senator Coffin, Senator Jacobsen, Senator O'Donnell, Senator Raggio, and Senator Rawson voted against the assessment and new position.
Senator Raggio repeated that on a vote of 5 to 2, the proposal for the assessment recommended by the Governor was rejected and the establishment of a management analyst position in the Department of Business and Industry will be deleted by the committee.
Board of Architecture - Page 517
Board of Cosmetology - Page 525
Board of Hearing Specialists - Page 535
Board of Physical/Occupational Therapy Examiners - Page 557
Senator Raggio turned the committee's attention to the boards that were proposed for consolidation under the Governor's reorganization plan, and said the issue is whether the Board of Architecture and the Board of Landscape Architects; the Board of Cosmetology and the Barbers Licensing Board; the Board of Hearings Specialists and the Board of Audiologists; and the Board of Physical/Occupational Therapy Examiners and the Occupational Examiners for each should be separate boards or consolidated. Senator Raggio pointed out the Assembly Committee on Ways and Means had voted to retain separate boards.
Senator Callister believed the Board of Hearing Specialists and Board of Audiologists should be consolidated.
Senator Raggio drew attention to the fact that the individuals are speech pathologists as well as audiologists and claim to have a separation by nature.
SENATOR RAWSON MOVED NOT TO COMBINE THE BOARDS INDICATED.
SENATOR GLOMB SECONDED THE MOTION.
Senator Jacobsen believes there is some merit to having a combined Board of Cosmetology and barbers.
THE MOTION CARRIED UNANIMOUSLY.
Senator Raggio summarized that by the act of this committee, the boards so referenced will remain as separate boards.
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Board of Accountancy - Page 515
Board of Architecture - Page 517
Board of Certified Shorthand Reporters - Page 519
Board of Chiropractic Examiners - Page 521
Board of Contractors - Page 523
Board of Cosmetology - Page 525
Board of Dental Examiners - Page 527
Board of Dispensing Opticians - Page 529
Board of Examiners in Veterinary Medicine - Page 531
Board of Funeral Directors and Embalmers - Page 533
Board of Hearing Specialists - Page 535
Board of Homeopathic Medical Examiners - Page 537
Liquefied Petroleum Gas Board - Page 539
Board of Marriage and Family Therapists - Page 541
Board of Medical Examiners - Page 543
Board of Nursing - Page 545
Board of Nursing Facility Administrators - Page 547
Board of Optometry - Page 549
Board of Oriental Medicine - Page 551
Board of Osteopathy - Page 553
Board of Pharmacy - Page 555
Board of Physical/Occupational Therapy Examiners - Page 557
Board of Podiatry - Page 559
Board of Psychological Examiners - Page 561
Board of Public Health Sanitarians - Page 563
Board of Registered Engineers - Page 565
Board of Social Worker Examiners - Page 567
SENATOR GLOMB MOVED TO APPROVE THE BUDGETS OF THE BOARDS AFOREMENTIONED WITH A SEPARATION AS INDICATED ON THE BASIS OF THE BUDGETS PRESENTED TO US AND THE REMOVAL OF THE ASSESSMENT.
SECONDED BY SENATOR JACOBSEN.
THE MOTION CARRIED UNANIMOUSLY.
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Senator Raggio stated that having made the major decisions regarding the organization of the departments, he asked the committee to start thinking about how the divisions should be structured within the departments. He said he would be discussing this issue with the Assembly Committee on Ways and Means and invited participation by the committee members during this discussion.
Historic Preservation - Page 1147
Senator Raggio deferred action on this budget account pending receipt of information to be secured by Senator Jacobsen.
Comstock Historic District - Page 1151
Mr. Miles said at the time this budget was heard there was some discussion regarding salary for the nine commission members of the Comstock Historic District. The Governor's Executive Budget does not presently reflect salary for the commission members based on a decision by the chairman to forfeit pay. If the committee were to consider restoring salary to the commission members, it would amount to $5,860 for each year of the biennium.
Senator Raggio asked if this is the only board or commission not receiving pay at this time.
Ms. Matteucci responded there were a number of boards and commissions that forfeited pay in order to meet the Governor's targeted budget allowance.
SENATOR COFFIN MOVED TO CLOSE THE BUDGET AS RECOMMENDED BY THE GOVERNOR.
SENATOR O'DONNELL SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
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Nevada State Library - Page 1159
Mr. Miles said funding for bookmobiles, the elimination of the assistant librarian position, and funding for books and publications are three issues that must be resolved. He referred the committee to information provided by the Fiscal Division that explains each of the issues, Exhibit G.
Mr. Miles said there was concern expressed regarding funding of $70,000 as recommended in the Governor's Executive Budget for each year of the coming biennium. Funding for bookmobiles was originally approved at $96,000 for fiscal year 1993 by the 1991 legislature, but budget reductions reduced this to $78,000. Mr. Miles suggested if the committee were to consider to restore $26,000 to the program. A challenge grant might be considered wherein the affected counties could do a dollar-for-dollar match of a $13,000 General Fund appropriation.
Senator Glomb said although she feels the need to fund the bookmobiles, she also has concern regarding the assistant state librarian position that has been recommended for deletion. Also, she feels funding approximately $150,000 for each year of the biennium for books for the state library should not be generated from revenues from fund-raising activities or gifts and donations.
Senator Raggio asked the total amount of reorganization savings that would be accomplished by eliminating the assistant librarian position.
Mr. Miles responded the value of savings by eliminating the assistant librarian would amount to $49,000 in the first year of the biennium and $65,000 in the second year of the biennium.
Senator Glomb suggested it may be possible to fund this position through budget savings rather than reorganization savings.
Ms. Matteucci said the Budget Division would have concerns about this because the controller's accounting system would not accept a negative category. She suggested if the committee feels the position should be retained, they might consider moving the reorganization savings into the Vacancy Savings category.
Senator Raggio referred to Exhibit H, a memorandum from Ms. Matteucci dated April 23, 1993, under the subject "Budget Savings Category", and asked Ms. Matteucci to explain its contents to the committee.
Referring to the second paragraph of Exhibit H, Ms. Matteucci pointed out while the Budget Division's data base is capable of recording a negative amount, the controller's Financial Management Information Reporting System (FMIRS) does not allow a negative authorization at the category level.
Ms. Matteucci referred to the third paragraph of Exhibit H offering a recommendation the committee might consider to have budget savings distributed.
Mr. Miles stated by changing the category to Vacancy Savings the target to abolish the position would be removed.
Bob Guernsey, Principal Deputy Fiscal Analyst, Fiscal Division, Legislative Counsel Bureau, remarked the assistant state librarian, who holds a senior position and who runs the day-to-day operations of the state library, would probably bump back and this would have a spiraling effect down through the agency which would give them somewhat of an option along with vacancy savings.
Senator Raggio explained the term budget savings is more encompassing that just vacancy savings because there is an opportunity to not only delete a position but to utilize savings.
He asked, "If we use the term budget savings, do I understand that is not compatible and we should use vacancy savings and limit it to that? How do we allow some discretion so that it can be other than vacancy savings?
Mr. Guernsey said it is his understanding that nothing would preclude the agency from identifying additional savings within the travel, operating and equipment categories. Then they could request a work program revision to the Budget Division and approach the Interim Finance Committee to actually accomplish the same thing.
Mr. Miles returned the committee's attention to the third issue outlined in Exhibit G concerning funding of books and publications for the state library.
Senator Coffin mentioned one difficulty in attempting to create a category of gifts, grants and donations in this particular budget account is that most of the time libraries receive in-kind gifts and not cash gifts. They could place a value on books or documents received, but this would not convert to cash.
Ms. Matteucci commented the state librarian suggested she could raise funds through fund-raising efforts in the form of cash and not in-kind gifts.
Senator Coffin pointed out there is a statutory prohibition against libraries selling books, but if the libraries could sell their in-kind donations money could be raised. This would require a statutory change.
Senator Raggio asked, "What is the possibility of a combination without the General Fund? Could they do both gift donations and the use of Title I Development Funds?. Will this take away from some grants for local libraries?"
Senator Glomb feels this would be a detriment to the local libraries who would not be able to purchase books.
Senator Jacobsen said there is a bill pending that will give General Fund monies to each library, but he does not know what the status of this bill is at the present time.
Senator Raggio remarked that all of the bills that are before the legislature this session that add additional revenue are going to be dependent upon additional revenue, and until disposition of the budgets before them are processed to determine what increases are being made on General Fund revenue expenditures, it will be difficult to deal with any of the bills that are now pending.
Senator Jacobsen suggested the counties participate in funding for the bookmobile.
Senator Raggio requested committee action regarding the three issues previously outlined.
SENATOR CALLISTER MOVED TO ADD $13,000 EACH YEAR FROM THE GENERAL FUND, AS A CHALLENGE GRANT, FOR THE BOOKMOBILE BUDGET.
SENATOR JACOBSEN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
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SENATOR RAWSON MOVED TO ADJUST THE BUDGET BY SHOWING A BUDGET SAVINGS IN THE AMOUNT OF THE PROPOSED REORGANIZATION SAVINGS AND THE POSITION OF ASSISTANT STATE LIBRARIAN BE RESTORED.
SENATOR JACOBSEN SECONDED THE MOTION.
Senator Raggio pointed out a letter of intent may be needed to indicate what is meant by vacancy savings.
THE MOTION CARRIED. (SENATOR COFFIN VOTED NO.)
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SENATOR RAWSON MOVED TO ADJUST THE BUDGET BY ADDING, AS WELL AS GIFTS AND DONATIONS, THE SALE OF BOOKS. A BILL DRAFT WILL BE OBTAINED TO AUTHORIZE THE SALE OF BOOKS AS SUGGESTED BY SENATOR COFFIN.
SENATOR JACOBSEN SECONDED THE MOTION.
Senator Glomb said, "I cannot think of anything more basic to a library budget than the purchase of books...to have them go out and fund raise seems ludicrous."
Senator Coffin called attention to the fact that donations are being offered all the time to state libraries and declared, "They need the authority to sell books to raise money. We will need a statutory change to do this."
THE MOTION CARRIED. (SENATOR CALLISTER, SENATOR GLOMB, AND SENATOR O'DONNELL VOTED NO.)
Senator Raggio declared the entire budget for the Nevada State Library, page 1159, is now closed.
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Archives Division - Page 1165
SENATOR O'DONNELL MOVED TO CLOSE THE BUDGET AS RECOMMENDED BY THE GOVERNOR.
SENATOR JACOBSEN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
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Referring to the budget for the Nevada State Library that had just been closed, Senator Rawson asked if there had been any discussion regarding the inner-library loan charges with the state library. He said by passing the inner-library loan charges on, it will make every component in the state increase their budget.
Mr. Guernsey stated with the recent budget cuts that took place, staff was eliminated and a process was started to charge for services involving the inner-library loans. The counties had been paying this for the last year or two but a number of them have been complaining. This factor is built into the budget.
Senator Raggio stated he would ask for a review of inner-library loan charges to be discussed at a later date.
Nevada State Library - Literacy - Page 1169
SENATOR GLOMB MOVED TO CLOSE THE BUDGET AS RECOMMENDED BY THE GOVERNOR.
SENATOR RAWSON SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR COFFIN WAS ABSENT FOR THE VOTE.)
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Nevada State Library - CLAN - Page 1174
Mr. Miles said in the Central Library Automated Network (CLAN) budget there is a microcomputer specialist position that will be transferred to the new Department of Data Processing. This budget is primarily funded by the counties, and no General Fund money is involved.
SENATOR JACOBSEN MOVED TO RETAIN THE MICROCOMPUTER SPECIALIST POSITION IN THE BUDGET AND CLOSE THE BUDGET AS RECOMMENDED BY THE GOVERNOR.
SECONDED BY SENATOR RAWSON.
In response to an inquiry from Senator Glomb regarding the funding for this budget, Mr. Guernsey explained the microcomputer specialist position has been funded by the counties through the CLAN which is a linkage with the counties to the state. The libraries would be willing to continue to fund the position as a part of the library budget but not if the position is transferred to the new Department of Data Processing.
Ms. Matteucci said you cannot have centralized data processing and exclude positions and continue to make the concept work. However, she said if the position is not a data processing position, that is an issue that would need to be worked out.
Mr. Guernsey said in discussing this position with some of the library staff, it is their feeling the position has been incorrectly titled and is primarily a librarian position even though some of the duties are connected with computerization. Exhibit I, a memorandum from the state librarian dated April 12, 1993, further addresses the impact of moving the position from the CLAN budget to the Department of Administration.
Senator Raggio said if there is a problem regarding the correct title of the position, that will have to be addressed as a separate issue at a later time.
THE MOTION CARRIED UNANIMOUSLY.
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Nevada Council on the Arts - Page 1177
Mr. Miles said his only comment concerning this budget is that longevity payments for the existing staff were omitted from the budget and will cost approximately $800 for each year of the biennium to restore.
SENATOR RAWSON MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE STAFF RECOMMENDATION FOR A TECHNICAL ADJUSTMENT TO RESTORE LONGEVITY PAYMENTS.
SENATOR GLOMB SECONDED THE MOTION.
Senator Coffin asked, "What will happen to the board after the merger with the libraries...will the board continue to function?"
Ms. Matteucci replied to her knowledge the board involved with this budget will continue to function and not be merged.
Senator Coffin stated he would support the motion with the understanding that board is left alone.
THE MOTION CARRIED UNANIMOUSLY.
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Administrative Services Division - Page 1182
Senator O'Donnell pointed out there are 2.5 new full-time equivalency (FTE) positions, one of which is a science, engineering and technology position suggested for the new museum, library and arts administration.
Senator Raggio referred the committee to Exhibit J distributed by the Fiscal Division that reflects the adjustments required if everything related to federal technology is adjusted. He pointed out the science, engineering, and technology position has been deleted from this budget account.
SENATOR GLOMB MOVED TO ADJUST THE BUDGET AND DELETE THE FEDERAL TECHNOLOGY-RELATED ITEMS.
SENATOR RAWSON SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
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Department of Museums,Library and Arts - Page 1120
Senator Raggio asked if the Administrative Services Division budget can be combined with this budget account.
Mr. Miles responded in the affirmative unless the Department of Museums, Library and Arts is a separate divisional budget.
Senator Raggio inquired, "With our action on the previous budget, would this be the division budget?"
Ms. Matteucci responded, referring to budget page 1182, it would be the division budget and not the departmental budget.
Senator Glomb asked, "The director's position would be on page 1182?"
Ms. Matteucci replied the director's position is in the budget just closed or in the Administrative Services Division budget reflected on page 1182. The Budget Division is proposing that the clerical, accounting, and personnel staff be combined in the budget shown on page 1182 as the director sees fit relative to the reorganization.
Senator Coffin said he is concerned about the senior accounting position in the budget for the Department of Museums, Library and Arts, and asked if that position will be eliminated.
Ms. Matteucci said the position will be eliminated.
Senator Coffin said this is an identifiable position with identifiable duties and asked who will assume responsibility for these duties.
Ms. Matteucci replied:
As the various accounting staff from the agencies combined in this department are brought together, it was the feeling that some of the positions would be duplicated. That was the particular position that was identified for reorganization savings. However, the new director, when appointed, may decide to keep that particular position and abandon another accounting position in the department soon to be a division.
Senator Coffin said he would be opposed to deleting the value of or the actual position of senior accountant as he believes it is a position of great value due to the millions of dollars in assets that are handled.
Senator Raggio requested clarification stating the committee just closed the administrative services budget and left only the director's position in that budget. He asked Ms. Matteucci if the clerical positions are from the other divisions.
Ms. Matteucci answered in the affirmative and said:
Arts, libraries, and the museums have other accounting positions which the Governor felt would be moved into the administrative services unit, and this was one that would be a duplicate...but that decision was going to be made by the department director...this position may not go away....
Senator Callister said he is also troubled by the elimination of a senior accountant in this budget and recalled there had been some issues raised earlier. He had a copy of an audit that was performed by Bernard Vogler and Company of the Nevada Department of Museums dedicated trust fund in June 1992. In glancing over the executive summary of that audit what was characterized as "large numbers of discrepancies in the physical inventory observation recount" was noted. In the case of the Nevada State Museum and the Las Vegas Museum, they also noted on final inventory sheets that a significant number of cost amounts were missing and inventory quantities were incorrect. They recommended there be twice annual inventories taken and noted in terms of internal procedures, there were a number of difficulties encountered.
Senator Callister declared:
I think it is inappropriate for us to come down on some of these agencies for inadequate internal audit procedures when we simply refuse to fund them. Not only are they having difficulty with the inventory of very valuable assets, they are also having difficulty with cash management. I think they need the senior accountant and I would move to retain this position in budget account 2941 [for the Department of Museums, Library and Arts].
Mr. Miles said the value of this position amounts to $40,000 in the first year of the biennium and $54,000 in the second year of the biennium.
Senator Raggio said this would add an additional $100,000 expenditure which may not be necessary since the Governor said there are positions within the divisions and possibly the senior accounting position would be retained for all purposes.
Mr. Miles said the Fiscal Division had requested from the new department what accounting positions would remain and determined there are five accounting or related positions that would not be eliminated.
Senator Callister remarked:
When you see an agency come before you and their second priority is for a senior accountant for internal management controls, you know they have a problem....I would urge the successful passage of this measure that I understand will cost some money, but we have a major multimillion dollar investment in the state museum system that needs to be maintained and needs to be protected with appropriate internal controls.
SENATOR CALLISTER MOVED TO RETAIN THE SENIOR ACCOUNTING POSITION AND CLOSE THE BUDGET AS OTHERWISE RECOMMENDED BY GOVERNOR.
SENATOR COFFIN SECONDED THE MOTION.
Senator Raggio stated as chairman he would oppose this motion as he does not believe a General Fund addition of $100,000 is warranted at this time.
Senator Rawson wondered if some money could be raised from the sale of duplicate or non-useful items to the state which would offer the potential of raising enough money to deal with the problems discussed. He believes there is a statutory provision that would be needed to accomplish this.
Senator O'Donnell declared:
It is true museums have a lot of assets; but the assets that are in question are not depreciated, not book valued or calculated in any way to determine what the tax ramifications would be. Most of the inventory is acquisition and storage, and you do not need a senior accountant to do that sort of inventory. The only thing you really have is revenue coming in from the museums, but I am not certain this could not be handled in a bookkeeping arena versus a senior accountant area. I think we have gone too far. I would vote against this measure.
Senator Coffin believed Senator Rawson had arrived at a creative option and believed there also is a prohibition that exists against selling.
Senator Raggio suggested in the bill draft previously decided upon involving the budget for the Nevada State Library, both issues can be addressed.
THE MOTION FAILED. (SENATOR GLOMB, SENATOR JACOBSEN, SENATOR O'DONNELL, SENATOR RAGGIO, AND SENATOR RAWSON VOTED NO.)
* * * * *
SENATOR O'DONNELL RECOMMENDED THE BUDGET BE CLOSED AS RECOMMENDED BY THE GOVERNOR.
SECONDED BY SENATOR JACOBSEN.
THE MOTION CARRIED. (SENATOR CALLISTER AND SENATOR COFFIN VOTED NO.)
* * * * *
Senator Raggio adjourned the meeting at 10:33 a.m.
RESPECTFULLY SUBMITTED:
Marion Entrekin,
Committee Secretary
APPROVED BY:
Senator William J. Raggio, Chairman
DATE:
??
Senate Committee on Finance
April 28, 1993
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