MINUTES OF THE
SENATE COMMITTEE ON FINANCE
Sixty-seventh Session
May 13, 1993
The Senate Committee on Finance was called to order by Chairman William J. Raggio, at 8:05 a.m., on Thursday, May 13, 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:
Dan Miles, Fiscal Analyst
Bob Guernsey, Principal Deputy Fiscal Analyst
Larry Peri, Deputy Fiscal Analyst
Dee Crawford, Committee Secretary
OTHERS PRESENT:
Judy Matteucci, Director, Department of Administration
Donald Kwalik, M.D., State Health Officer, Health Division
Kevin Higgins, Senior Deputy Attorney General, Office of the Attorney General
Bruce Alder, Superintendent, Northern Nevada Children's Home, Division of Child and Family Services
Senator Raggio opened discussion on Senate Bill 306.
SENATE BILL (S.B.) 306:Makes appropriation to state public works board for certain capital improvement projects.
Senator Raggio announced the Assembly Committee on Ways and Means removed the appropriation designated for the design phase of the Fremont School in Amendment No. 454.
Judy Matteucci, Director, Department of Administration, testified the State Public Works Board requested approval to use remaining bond authority to begin the design phase of the project.
Senator Raggio asked if presentation was made by the State Public Works Board before the Assembly Committee on Ways and Means.
Ms. Matteucci responded in the affirmative. She testified the Assembly Committee on Ways and Means advised to wait for the CIP [Capital Improvement Projects] bill. Ms. Matteucci cautioned the Assembly Committee on Ways and Means that action would delay completion of the buildings and therefore necessitate non-state owned building rent being reinstated in the budget.
Senator Raggio suggested the Senate Committee on Finance not concur with the amendment.
SENATOR JACOBSEN MOVED TO NOT CONCUR WITH THE ASSEMBLY COMMITTEE ON WAYS AND MEANS AMENDMENT NO. 454 TO S.B. 306.
SENATOR RAWSON SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS O'DONNELL AND CALLISTER WERE ABSENT FOR THE VOTE.)
* * * * *
Senator Raggio closed discussion on S.B. 306 and opened the hearing on Senate Bill 224.
SENATE BILL (S.B.) 224:Requires establishment of toll-free telephone service for dissemination of information about effects of exposure to teratogenic agents during pregnancy.
Donald Kwalik, M.D., State Health Officer, Health Division, testified from written text, Exhibit C, in support of S.B. 224. Dr. Kwalik explained this measure appropriates $l5,000 over the biennium to establish a toll-free telephone service for the dissemination of information about the effects of exposure to teratogenic agents during pregnancy. Dr. Kwalik emphasized that from l989 to l99l, the Nevada pregnancy risk line was funded through the March of Dimes at an approximate annual amount of $l5,000. He made contact with the Utah Department of Health concerning re-establishing the pregnancy risk line. The Utah Department of Health advised the cost to reactivate the line would be $l2,000 per year. The reinstatement would include a follow-up letter mailed to each caller and monthly statistical summary of the number of calls, the type of calls and callers and the locations of such calls from Nevada. Dr. Kwalik maintained the Nevada Health Division would be responsible for publicity of the pregnancy risk line at an estimated cost of $l2,000 annually.
Senator Coffin asked if the program would duplicate the Baby Your Baby program.
Dr. Kwalik responded it would not. He explained the Baby Your Baby program stresses early prenatal care and would not be able to respond to injuries regarding exposure to certain types of drugs or chemicals. He concluded:
I think we can investigate it further to see if there is some way to link it more closely with Baby Your Baby to see if the March of Dimes can come up with mechanisms to get the information out there to the public at large. In addition to the $l2,000 for the contract with Utah, maybe we would be able to get by with a lesser amount than the $l2,000 that it was originally geared for in l989-l99l by the March of Dimes.
Senator Rawson recalled individuals testifying last session were willing to financially support the risk line concept. He mentioned:
When the state wouldn't match anything, they backed out. I'm wondering if we were to cut this appropriation out, and put in place that they could accept gifts, grants and donations, and then it could be coupled with one of these other programs.
Senator Raggio suggested that could be accomplished without a bill, by factoring in the authority to receive gifts, grants and donations to the agency budget directly.
Senator Glomb offered her assistance to work with the Health Division to attempt to locate funding for the program.
Senator Raggio closed the hearing on S.B. 224 and opened the hearing on Senate Bill 12.
SENATE BILL (S.B.) 12: Provides for payment by state of costs of prosecution in additional cases.
Kevin Higgins, Senior Deputy Attorney General, Office of the Attorney General, testified one of the Criminal Division's responsibilities was to prosecute crimes arising in prisons and particularly escapes from prisons. The cost to the counties for prosecutions of prison escapees is recompensed from the statutory contingency fund, it was explained. "The idea was the prison, as the situs of these crimes, was an extraordinary expense the county should not pay alone. Over the years, when jury or court costs were paid, it would come out of that fund," he asserted. He explained the cost for reimbursement with respect to aiding and abetting crimes is not set in statute.
Senator Raggio asked how many cases of that type were anticipated annually.
Mr. Higgins replied two or three cases at the most. He explained since this type of crime is not considered a high priority to the respective counties, "we've caught them with our correctional officers and it's not even usually processed through their sheriff's department....As a result, these people are not being prosecuted, generally."
Senator Raggio noted his understanding of the measure:
What it does is make it clear since there is no specific mention of an accessory to an escape. If it's from a state prison, that's clearly a charge against the state. If it is assisting to break out of a county jail...it is a charge against the local government.
Mr. Higgins responded in the affirmative.
Senator Raggio asked Ms. Matteucci if she had any objection to processing the bill.
Ms. Matteucci responded she did not object.
Senator Raggio closed the hearing on S.B. 12 and opened the hearing on Senate Bill 159.
SENATE BILL (S.B.) 159.Requires state board of examiners to evaluate contracts it approves.
Exhibit D, memorandum from Ms. Matteucci, dated April l4, l993, regarding the fiscal note to S.B. 159, was distributed to the committee.
Senator Callister joined the meeting at 8:35 a.m.
Senator Raggio provided comment from the subcommittee assigned to this issue:
The subcommittee, with respect to all state agency contracts, recommended the [State] Board of Examiners ensure the continued contracting would be cost-effective and the quality of service anticipated would be met. Throughout the review of privatization, the subcommittee heard testimony from various sources and reviewed articles which stressed the importance of contract monitoring evaluation. You may recall Dr. Heaton...who testified to the legislature agreed it was important that state government monitor any agency contracts that are contracted out. The monitoring of the contracts would assure the terms and conditions of the contract are being appropriately followed and appropriate levels of service were being provided. This would provide for the oversight of service delivery that would help protect the state and public against any potential contract deficiencies.
Another activity which is complementary to monitoring, is contract evaluation. The evaluation would provide for the review of the program operated by the contractor to ensure the contractor has successfully accomplished the desired results. The evaluation would also determine if the contractors were providing the services more efficiently than the state. Monitoring without evaluation would indicate whether the contractor complied with the terms of the contract but would not indicate if the desired results were obtained. These are the reasons the subcommittee recommended. We were under the impression during the hearing that the [State] Board of Examiners was, in fact, evaluating the contracts before approving them. We're not aware whether or not there was some monitoring to determine whether or not services were being performed but assumed there was some activity of that kind....It [S.B. 159] was sent here...and either Judy [Matteucci], or somebody from her office, indicated she felt there would be some fiscal cost to do this.
Ms. Matteucci testified her concerns were centered around the language included in section 8, page 2, of S.B. 159. If there is to be some formal evaluation that S.B. l59 contemplates being conducted on every contract, then she would need additional staff and time to accomplish that "previous to putting those contracts before the [State] Board of Examiners." She disclosed [State] Board of Examiners meetings are held from 4 to 6 weeks apart and approximately l85 independent contracts may be reviewed at each meeting. She advised the contracts are reviewed for appropriateness, but there is no formal evaluation, "i.e., a conduct of whether or not it is economically appropriate for us to contract...." She explained:
That simply is not being done at the current time. We ask the contracts be submitted 3 weeks before. If this bill were to go into effect we would have to extend the deadline to probably about 6 weeks before each meeting and then have a formal analysis conducted. We think that would probably require two full-time staff in order to keep up with that work load.
Senator Raggio queried who does monitor the independent contracts.
Ms. Matteucci avowed:
The agencies have a standard when they contract and if they renegotiate the contract, then they believe the contractor is meeting the standards. But there is no formal evaluation of some kind of a standard. So when the agencies are submitting them, they are saying that those standards are being met.
Senator Raggio proclaimed:
This bill doesn't have to pass, but if the subcommittee felt that knowing we already are contracting out, and you've indicated you have presently l85 contracts that you review each meeting already, and there could be more contracts of this kind...so it isn't an essential bill to pass if the [State] Board of Examiners doesn't want to take on this function. But the subcommittee felt it was important for contracts, even those you're doing now, to have some kind of monitoring. If the agency is not monitoring existing contracts to determine whether or not they are being fulfilled, I have to tell you that is kind of astonishing to me. I would think that certainly in an agency that is dealing with a contract of this kind, somebody ought to be interested to know whether or not they are performing.
Ms. Matteucci countered that the respective agencies are monitoring contracts and added:
But this bill requires the [State] Board [of Examiners] to ensure it. If you want the board to ensure it, that means we have to go out and audit, again, some established standard for the quality of services and that the state is receiving the services that the contract purports to provide."
Senator Raggio asked if Ms. Matteucci had any suggestions regarding the language in the bill that would fit within her existing procedures.
Ms. Matteucci stated she would work on it. She stressed the Budget Division was not in opposition to the concept merely because a cost would be associated with it. She insisted, "...If you want it in the form it is in right now, I don't have extra staff hours to dedicate to it...."
Senator Raggio suggested Ms. Matteucci review the language in the bill and make suggestions "that has little or no cost that gives a level of comfort that somebody is at least looking at, not ensuring, but looking at whether or not a contract is being performed."
Ms. Matteucci agreed.
Senator Raggio closed the hearing on S.B. 159 and opened the hearing on Senate Bill (S.B.) 12.
SENATE BILL 12: Provides for payment by state of costs of prosecution in additional cases.
SENATOR RAWSON MOVED TO DO PASS S.B. 12.
SENATOR JACOBSEN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR O'DONNELL WAS ABSENT FOR THE VOTE.)
* * * * *
Larry Peri, Deputy Fiscal Analyst, distributed Exhibit E, Closing List #l8, (Exhibit E - Original on File in the Research Library) to the committee.
Senator Raggio asked Mr. Peri to address the proposed transfer of the function of the youth parole [Youth Corrections Services] to the respective counties.
Youth Corrections Services - Page 977
Mr. Peri explained several alternatives were presented to the Assembly Committee on Ways and Means regarding this agency. The final action by the Assembly Committee on Ways and Means resulted in the continuation of the "youth parole function" as a state responsibility, he maintained.
Senator Raggio asked for committee input regarding transfer of the agency under the Governor's reorganization plan.
Senators Glomb and Rawson opined this program should remain under the auspices of the state system.
Senator Callister testified in support of maintaining this program under the auspices of the state system.
Senator Jacobsen also testified in support of keeping this program under the authority of the state.
Senator Raggio summarized it was the consensus of the committee that the "youth parole and probation programs" be retained in their present status.
Child and Family Administration - Page 938
Mr. Peri provided an overview of the General Fund impact relative to the Division of Child and Family Services, as referenced on page 2 of Exhibit E. He directed the committee's attention to the Adjustments to Expense category and explained:
...These are four positions that were transferred into this budget account from the Youth Parole [Corrections Services] account predicated on the fact that Youth Parole [Corrections Services] would be transferred to the counties. The Assembly Committee on Ways and Means reversed that recommendation and suggested, once again, that parole be retained by the state and therefore these positions are recommended to transfer back to Youth Parole [Corrections Services].
The next entry, titled Senior Auditor, has to do with estimates that were provided by the Division of Child and Family Services....There was a recently released legislative audit on the substitute foster care program which suggested the state could recoup significant additional federal funding by retroactively seeking reimbursement from the federal government and striving to attain the national average....The division has submitted an estimate sheet and that is included in the packet....In adding federal revenues, we reduced some state monies in the child welfare budget....The division indicated, in order to pursue the additional federal funds, that a new position, travel and equipment would be necessary and those are added for you.
Continuing, Mr. Peri stated further expenditure adjustments are shown as Maintenance item 200, which recommends the delay of five new positions in Fiscal Year 1995 for a period of 3 months. This budget is receiving several new positions and the Executive Budget has recommended the new positions being recommended in FY l994 be delayed for 3 months, he pointed out. The Assembly Committee on Ways and Means similarly chose to recommend the positions that are scheduled to come on line in FY l995 be delayed for 3 months. He expounded:
There are minor adjustments such as group insurance savings being reduced by $7,054 and that is representative of the new positions that were delayed in FY l994, which will be on-line for 9 out of the l2 months in FY l994, but were funded with l2 months of insurance.
Some of the other minor decreases are the travel...[which] similarly reduces the amount of travel for 3 months, commensurate with the delay in hiring those new positions in FY l994.
Senator O'Donnell joined the meeting at 9:00 a.m.
Mr. Peri explained the Contract Sexual Offender Evaluation category is recommended to be reduced by $l0,000 in each year of the l993-95 biennium. The reduction in the Maintenance 200 category will leave $l3,400 available, plus the amount of $50,l00 recommended in the Base budget, for a total of $63,500 each year. Information provided by the agency indicates that the current adjudication rate for juvenile sex offenders is 40 percent with the remainder being plea-bargained down or dismissed. The information further states that the adjudication rate would have to increase 70 to 80 percent for the Governor's total recommended amount of $73,500 to be expended in each year of the biennium.
Mr. Peri explained the $l0,000 reduced in each year is recommended to be added to the Youth Community Services budget to be used to provide primary medical care, through the University of Nevada School of Medicine, to emancipated children who turn l8 years of age and are released from the foster care system.
Mr. Peri stated this recommendation is duplicative of the action taken by the Assembly Committee on Ways and Means, with the exception of the $l0,000 reduction each year of the biennium for the contract sexual offender evaluations.
SENATOR RAWSON MOVED TO CLOSE THE BUDGET AS RECOMMENDED BY STAFF AND OUTLINED IN EXHIBIT E.
SENATOR GLOMB SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
* * * * *
Senator Raggio suggested a letter of intent be submitted should the rate for adjudication become greater than anticipated.
Youth Community Services - Page 945
Mr. Peri referenced pages 5 through l3 of Exhibit E and testified while referencing that material. He explained there has been an increase in the regular appropriation of $l0,000 in each year of the l993-l995 biennium, which represents a recommendation to provide primary medical care, through the University of Nevada School of Medicine, to emancipated children who turn l8 years of age and are released from foster care.
SENATE BILL (S.B.) 299:Makes appropriation to School of Medicine of University of Nevada System.
Mr. Peri explained S.B. 299 similarly seeks to provide this medical care to emancipated children. He offered the suggestion to consider making adjustments to this budget in lieu of S.B. 299.
Mr. Peri pointed out the major adjustment in this budget:
The major adjustment to this account is an adjustment to the regular appropriation decreasing it by $3l9,2l4 in the first year of the coming biennium, and $345,263 of the second year of the biennium. These actions represent the estimates provided by the Division of Child and Family Services in the increased Title IV-E revenue that they may be able to secure from the federal government.
Within the closing packet...there are several pieces of correspondence...which references the audit completed by the Legislative Counsel Bureau. That audit indicated that approximately $440,000 of additional Title IV-E funds may be recoverable by the state from the federal government....
The next major adjustment in revenues is entitled Reduce Transfer from the [State] Department of Education. These are funds that are transferred from the [State] Department of Education to this budget account for the 395 [Chapter 395 of the Nevada Revised Statutes] program. There is a substantial reduction shown. These actions are representative of closing actions taken in the [State] Department of Education. The amounts recommended to be reduced consist of $577,488 in FY l994, $6l2,076 in FY l995. These figures were not available to, and were not taken action-wise, by the Assembly Committee on Ways and Means....
Senator Raggio asked if staff recommendations were consistent with action taken by the Assembly Committee on Ways and Means regarding the budget of the [State] Department of Education.
Mr. Peri responded in the affirmative. He explained the actions on the expenditure portion of the closing sheet:
The first ones...Reduce Substitute Foster Care...by the amount of $46l,013 in each year of the biennium...simply is a mechanical recommendation to isolate those monies transferred from the [State] Department of Education to a separate expenditure category....
The $l0,000 addition is simply the expenditure category for the suggestion to provide medical care for the emancipated youths....
SENATE BILL (S.B.) 79: Eliminates requirement that adoptive parents of child with special needs have limited financial resources to receive financial assistance.
Mr. Peri explained the final adjustment is due to the passage of Senate Bill 79, which transfers funds from the Substitute Foster Care expenditure category to the Subsidized Adoption expenditure category.
The Assembly Committee on Ways and Means also requested the division submit a contingency plan for operation if shortfalls are encountered in the Substitute Foster Care category.
Senator Raggio declared this budget held at the request of Senator Rawson.
Northern Nevada Child and Adolescent Services - Page 960
Mr. Peri announced the recommendation on this budget account is a mechanical adjustment to the Senior Psychiatrist position. Similarly, the offsetting adjustment has been made in Vacancy Savings category by a like amount.
SENATOR O'DONNELL MOVED TO CLOSE THE BUDGET AS RECOMMENDED BY STAFF AND OUTLINED IN EXHIBIT E.
SENATOR GLOMB SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR COFFIN WAS ABSENT FOR THE VOTE.)
* * * * *
Southern Nevada Child and Adolescent Services - Page 966
Referencing page l6 of Exhibit E, Mr. Peri pointed out there were a number of adjustments in the appropriations. He stated:
In the Base budget, the actions taken by the Assembly Committee on Ways and Means recommended the regular appropriation be adjusted upward in the first year by $48,099. In the second year by $47,403. That is primarily to fund a program that was inserted by the Assembly Committee on Ways and Means entitled Pathways Program [Pathways Program for Autistic Children and Families]....
Senator Raggio asked who currently operates the program.
Mr. Peri replied the Southern Nevada Child and Adolescent Services.
Continuing, Mr. Peri explained the Assembly Committee on Ways and Means also added General Fund support of $60,l34 in FY l994 and $6l,5l7 in FY l995 for the Pathways Program for Autistic Children and Families. The program is funded through grant revenue in the current biennium, however the grant will not be renewed in the l993-l995 biennium, it was disclosed.
Senator Raggio wondered if there were other autistic children throughout the state that could benefit from this program, other than children in Clark County. "If we're going to appropriate this [General Fund] money, shouldn't it be available statewide?" he proclaimed.
Mr. Peri responded, "I can't argue against that."
Senator Raggio asked where could the funding be placed to secure statewide availability.
Mr. Peri answered:
You could put it in a central account for the division. Or you could choose to provide additional funding for the mirror for this program, which is Northern Nevada Child and Adolescent Services, located in Reno.
Senator Rawson queried, "Has that money just been used in southern Nevada, for the Pathways program?"
Mr. Peri responded that was his understanding.
Senator Glomb interjected:
This is a specialized field dealing with autistic children, and it may be difficult to duplicate the program in another part of the state. However, what we might be able to do is come up with some General Fund money that would allow parents from another part of the state to go through this program. Then bring that skill and knowledge home and use it with their child....I don't know if it would be possible for us to duplicate the exact program.
Senator Callister asked how realistic would it be to anticipate this service could be provided in any meaningful way outside of the area where they have the expertise.
Senator Raggio declared the budget held at the request of Senator Rawson.
Youth Corrections Services - Page 977
Mr. Peri provided the following testimony:
This is the Youth Parole budget and the actions shown for you on the budget sheet, page 2l, reflect the decision and recommendation made by the Assembly Committee on Ways and Means to restore that function as it presently operates statewide.
Mr. Peri drew the committee's attention to page 23 of the exhibit material. He indicated:
What that sheet defines...are the alternatives that were developed by the Assembly Committee on Ways and Means and then what was done, which is shown on page 24. In summary...page 23, if the Youth Parole program were to be continued as a state function and responsibility, then approximately $l.2 million was identified in each year of the l993-l995 biennium. That amount has been reduced a little, by $l02,000 and $l03,000, which represents the transfer back of those four positions that we looked at in the administrative account. The General Fund was reduced within those accounts which made it available to transfer these positions back....The alternatives were to add General Fund....The second alternative, defined by Assembly Committee on Ways and Means, was to utilize $566,573 that was made available in each year of the biennium as a recommendation in the Executive Budget to provide to the counties for their assumption of the Youth Parole program. That was made up of $462,253 that had formally been recommended for support for the Spring Mountain Youth Camp in Clark County, plus an additional $l04,000 for foster care placements. That amount, if it were utilized against the $l.l million needed in each year, would still result in about $550,000 to $570,000 of additional General Fund need to continue the program. The next alternative was to eliminate the probation subsidies program in its entirety....that yielded an available total of $l.5 million in each year against the need of $l.l million....
Mr. Peri explained the Assembly Committee on Ways and Means eliminated probation subsidies in its entirety, funded this budget, and suggested the "leftover monies of $380,000 and $36l,000 in the order shown be used to provide additional compensation to China Springs Youth Camp for their anticipated additional expenses of $28,663," as indicated on page 24 of the exhibit.
Addressing actions made by the Assembly Committee on Ways and Means, Ms. Matteucci stated the Governor was concerned the "judicial district agree to forego the probation subsidy."
Senator Raggio asked for clarification that the action by the Assembly Committee on Ways and Means does eliminate the probation subsidy program in its entirety.
Mr. Peri responded in the affirmative.
Senator Glomb testified if the counties are unable to manage the probation function, the only other alternative would be to refer the children to a state facility. She urged the committee to recognize that if the counties are unable to provide the support services, the alternative would be placement in institutionalized state care.
Senator Raggio declared this budget held.
Southern Nevada Children's Home - Page l005
Mr. Peri testified the Assembly Committee on Ways and Means offered to close the budget as recommended by the Governor or to restore the budget to the base expenditure operating levels.
Senator Raggio recollected it was the recommendation "this was going to be contracted out as a result of litigation regarding overtime worked by the cottage couples."
Ms. Matteucci responded in the affirmative and explained this issue "is similar to the Northern Nevada Children's Home, which resulted in its cost effectiveness no longer being there and subsequent closure." She stated the administrator of the division indicated this budget was becoming less cost-effective and proposed it be privatized.
Mr. Peri continued to summarize the suggested alternatives as depicted on page 28 of Exhibit E. He said $l.3 million would have to be appropriated from the General Fund to continue the provision of services as they currently exist at this facility. The Governor's recommendation proposes the facility be privatized in January l, l994. The Assembly Committee on Ways and Means held this budget, obtained additional information and concluded the Governor's recommendation was appropriate.
Senator Glomb stressed there is a movement to remove children from institutionalized care to community care and she agreed with the concept. She stated:
The money that is used for the care of the children was just wiped out of the budget, so those children who are currently in the Southern Nevada Children's Home, the cost of their care is going to have to come out of an already underfunded foster care budget....I have some real problems with the...Governor's recommendation that it be done this way.
Senator Raggio asked if the $l.3 million included anticipated over-time costs.
Ms. Matteucci responded, "I don't think that has gone to court yet."
Mr. Peri explained the issue is currently being decided by the courts and the decision could impact the pay scale of the cottage couples in future years.
Senator Raggio recited his impression that current cottage couples were willing to propose to operate the system under a fixed amount and declared, "Therefore there would not be this potential for additional cost."
Mr. Peri deferred comment to Mr. Alder but offered the information the division is currently finalizing their Request For Proposal to let bids. One group identified showing some interest are the current cottage parents.
Senator Raggio asked if the Request For Proposal envisioned the operation continuing as it has previously.
Mr. Peri responded that is a concern of the Assembly Committee on Ways and Means to ensure the continuance of the same level of care that is currently provided.
Bruce Alder, Superintendent, Northern Nevada Children's Home, Division of Child and Family Services, testified the trial regarding the cottage couple lawsuit has been completed and testimony was concluded on May 3, l993. However, Judge Howard McKibben has not rendered a decision yet, he advised.
Senator O'Donnell stated:
...The Home of the Good Shepherd...we did have privatized and we did have state funds that were going to support that. Slowly but surely we kept extracting more and more funds out of the Home of the Good Shepherd to a point where it was not economically feasible to keep the doors open. I'm highly concerned we're going to get in the same situation....
Ms. Matteucci acknowledged the concerns expressed by Senator O'Donnell and stated:
...I think that was part of their [Assembly Committee on Ways and Means] concern as to what the viability or workability of the privatization proposal was....I think the Home of the Good Shepherd was before there was more interest in community-type programs for youth offenders and that may have complicated what happened in history....
Mr. Alder explained the concern of the Assembly Committee on Ways and Means:
...Prior to closure, the Assembly Committee on Ways and Means invited in the director of the Department of Human Resources, Jerry Griepentrog-Carlin, to address this; and they extracted some rather strong promises from him that if this proposal did not work, that there would be immediate action to rectify the failure. That was a lot of their concern, what if this doesn't work? Then what happens, because they were concerned that you would be in exactly the situation as with the Home of the Good Shepherd. If I'm properly characterizing his testimony, it was that he promised that if it didn't work that they would take other kinds of action....
Senator Callister asked how many children would be affected.
Ms. Matteucci responded approximately 40.
Mr. Alder testified:
...After we survived the last legislature, we had the mandatory budget cuts; and it was a very difficult thing for me, because one of the big problems was it was costing us...$2,300 per kid that we had there. Most of those kids were able to go into foster homes or other alternative placements that cost far less than that. It was really a conflict for me, personally, because I couldn't object to doing that and that is the exact same problem they have with this other Nevada Children's Home.
Senator Raggio pointed out the daily cost per child was $70 and asked why was the cost so high.
Mr. Alder replied the cottage couples are "making upwards of $70,000 per couple because of the costs."
Senator Raggio declared the budget held.
Senator Jacobsen distributed Exhibit F, List of Northern Nevada Cemetery Volunteer Efforts, to the committee.
There being no further business to come before the committee, Senator Raggio adjourned the meeting at l0:00 a.m.
RESPECTFULLY SUBMITTED:
Dee Crawford,
Committee Secretary
APPROVED BY:
Senator William J. Raggio, Chairman
DATE:
??
Senate Committee on Finance
May 13, 1993
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