MINUTES OF THE
SENATE COMMITTEE ON FINANCE
Sixty-seventh Session
May 19, 1993
The Senate Committee on Finance was called to order by Chairman William J. Raggio, at 8:00 a.m., on Wednesday, May 19, 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 Lawrence E. Jacobsen
Senator Bob Coffin
Senator Diana M. Glomb
Senator William R. O'Donnell
Senator Matthew Q. Callister
COMMITTEE MEMBERS ABSENT:
Senator Raymond D. Rawson, Vice Chairman (Excused)
STAFF MEMBERS PRESENT:
Daniel G. Miles, Fiscal Analyst
Robert Guernsey, Principal Deputy Fiscal Analyst
Larry L. Peri, Program Analyst
Steve J. Abba Program Analyst
Judy Jacobs, Committee Secretary
OTHERS PRESENT:
Joan Buchanan, Real Estate Education Director, Real Estate Division, Department of Commerce
P. Forrest Thorne, Deputy Budget Administrator, Department of Administration
Senator Raggio opened the hearing on Senate Bill (S.B.) 422.
SENATE BILL 422: Increases license fees for real estate brokers, broker-salesmen and salesmen.
Joan Buchanan, Real Estate Education Director, Real Estate Division, Department of Commerce, declared S.B. 422 had been created for the purpose of increasing real estate license fees. The additional revenue, an anticipated $459,000 over the biennium, would be used to support filling the administrator's position which has been open since February 1991, and the deputy administrator's position in Las Vegas, vacant for approximately one year. She explained those two positions had been left vacant to accrue savings for the General Fund.
Senator Raggio asked how the rates proposed by the Governor would compare to other states. Ms. Buchanan testified the rates would fall into the same range as about 65 percent of the national average.
Ms. Buchanan reminded the committee the executive director of the Nevada Association of Realtors voiced support for S.B. 422 before the committee in March with the understanding those positions would be filled.
Senator Raggio inquired if the cost to fill the two positions with attendant expenses would be covered by the raise in fees. Ms. Buchanan surmised they would be covered. Any additional money would go into the General Fund.
P. Forrest Thorne, Deputy Budget Administrator, Department of Administration, interjected, "You've covered everything."
Senator O'Donnell asked how much it would cost to fund the two positions. Ms. Buchanan calculated it would cost $101,000 per year.
Senator O'Donnell asked if the realtors were aware that the fee increase would add over $100,000 per year to the General Fund. Ms. Buchanan responded the realtors were aware what the cost for the positions would be, and she indicated they understood there would be an excess from the fees. She said she had gone over the projected costs and income with members of the association.
In response to Senator Raggio's query when real estate fees had last been increased, Ms. Buchanan answered it was in 1991.
In the absence of further testimony on S.B. 422, the hearing was closed. Senator O'Donnell requested that no action be taken on the measure for one day, to which the chair acceded.
Child Welfare Trust - Page 955
Senator Raggio recalled discussions of the Title IV-E adjustments.
Larry L. Peri, Program Analyst, said those federal reimbursements would coincide with another recommendation in the Youth Community Services (formerly entitled the Child Welfare budget) account on page 946 of the Executive Budget.
Senator Raggio inquired if action on the Child Welfare Trust budget to utilize the additional federal funding would affect the Youth Community Services budget. Mr. Peri replied closure of this budget would simply create authority to draw funding into the Child Welfare Trust which would then be transferred to the so-called Child Welfare (Youth Community Services) account.
SENATOR GLOMB MOVED TO ADJUST THE CHILD WELFARE TRUST BUDGET BY INCREASING THE PROPOSED FEDERAL FUNDING FOR $95,410 IN EACH YEAR TO BE TRANSFERRED TO THE YOUTH COMMUNITY SERVICES BUDGET AND BY INCREASING THE TITLE IV-E REIMBURSEMENTS.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR RAWSON WAS ABSENT FOR THE VOTE.)
* * * * *
Children's Trust Account - Page 957
Mr. Peri stated no adjustments had been submitted and it was proposed to approve the budget as recommended by the Governor.
SENATOR COFFIN MOVED TO APPROVE THE BUDGET AS RECOMMENDED BY THE GOVERNOR.
SENATOR GLOMB SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR RAWSON WAS ABSENT FOR THE VOTE.)
* * * * *
Child Care Services - Page 972
Mr. Peri said:
There are two suggested adjustments... The first adjustment is within the revenue area...and adjusts a transfer from the director's office from the Department of Human Resources. This budget receives Child Care Development Block Grant funds.... This adjustment of $16,185 in the first year of the biennium and $15,429 in FY [fiscal year] 1995 would simply align the amount that's to be transferred from the director's office to this budget account. We're increasing it to have the two amounts match.
Senator Raggio recollected one social worker would be transferred into Child Care Services from the administrator's office. Mr. Thorne indicated his agreement.
Mr. Peri said the Executive Budget recommended that funding be provided for office space within the Kincaid Building, but the agency had relocated into the Northern Nevada Children's Home building so there would be no rent liability.
SENATOR O'DONNELL MOVED TO ADJUST THE BUDGET ACCORDING TO RECOMMENDATIONS OF THE STAFF.
SENATOR COFFIN SECONDED THE MOTION.
Senator Glomb asked if there was any additional staff included in the budget to develop additional licensed facilities in Child Care Services because of the requirement that women go back to work when their children are 6 months of age. Senator Raggio responded the only additional staff to be included of which he was cognizant was the one from the administrator's office.
Mr. Peri suggested the transfer aligns a position that was in the administrative account that currently has licensing responsibility. He declared this would simply place the position in the proper account. He said the budget does not appear to address the projected increased work load mentioned by Senator Glomb.
Mr. Peri said, "This is a review of child-care centers, licensing, background checks...reviewing complaints from the public on any licensed child-care centers."
Senator Glomb reiterated she had brought up the need for family day-care homes due to the requirement for women to return to the workplace. She asserted most child-care facilities do not accept infants or toddlers. She stressed the growing need for child-care facilities should be kept in mind when the committee hears welfare reform proposals.
THE MOTION CARRIED. (SENATOR RAWSON WAS ABSENT FOR THE VOTE.)
* * * * *
Nevada Youth Training Center - Page 986
Senator Raggio asked if the athletic program would be reinstated. Mr. Peri replied it was the primary recommendation within the budget account. He said the recommended amounts of $18,316 in each year of the biennium would restore the athletic program. Another $4,000 per year was recommended for substitute teacher expenses.
SENATOR COFFIN MOVED TO ADJUST THE BUDGET TO PROVIDE FOR THE ATHLETIC PROGRAM AND SUBSTITUTE TEACHER EXPENSE.
SENATOR GLOMB SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR RAWSON WAS ABSENT FOR THE VOTE.)
* * * * *
Senator Jacobsen commented when he had toured the center prior to session the director indicated the troublesome gangs had been transferred out of the facility.
Farm Account-Youth Training Center - Page 990
SENATOR COFFIN MOVED TO APPROVE THE BUDGET ACCORDING TO THE GOVERNOR'S RECOMMENDATION.
SENATOR O'DONNELL SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR RAWSON WAS ABSENT FOR THE VOTE.)
* * * * *
Chapter I & II Education Program - Page 992
Mr. Peri said the staff had not proposed any adjustments.
SENATOR JACOBSEN MOVED TO CLOSE THE BUDGET ACCORDING TO THE GOVERNOR'S RECOMMENDATION.
SENATOR O'DONNELL SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR RAWSON WAS ABSENT FOR THE VOTE.)
* * * * *
Caliente Youth Center - Page 995
Mr. Peri stated the pending utility rate increases by the Caliente public utilities for both electricity and sewer usage may necessitate adjustments.
Senator Raggio asked Mr. Thorne if it would be satisfactory to authorize the center to come before the Interim Finance Committee (IFC) for the adjustment. Mr. Thorne indicated approval.
SENATOR COFFIN MOVED TO APPROVE THE BUDGET IN ACCORDANCE WITH THE GOVERNOR'S RECOMMENDATION AND TO ADVISE THE CENTER TO APPROACH THE INTERIM FINANCE COMMITTEE FOR AN APPROPRIATE ENHANCEMENT IF THE UTILITY RATE INCREASES.
SENATOR GLOMB SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR RAWSON WAS ABSENT FOR THE VOTE.)
* * * * *
Chapter I - Special Education - Page 999
Mr. Peri declared the recommendations were similar to those in the Child Care Services budget account to align the Child Care Development Block Grant award. It would be transferred from the director's office into this account. He indicated the proposal was
to increase the budget by $13,394 in each year and place those funds into the proper expenditure categories to make the amounts coincide.
Mr. Peri explained the amounts to be transferred out of the director's office needed no adjustment, only the budgets receiving the transfers required adjustment.
SENATOR COFFIN MOVED TO ADJUST THE BUDGET WITH THE TRANSFER OF $13,394 IN EACH YEAR FROM THE DIRECTOR'S OFFICE AND THE EARLY CHILDHOOD DEVELOPMENT PROGRAM AUTHORIZED AS THE EXPENDITURE.
SENATOR JACOBSEN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR RAWSON WAS ABSENT FOR THE VOTE.)
* * * * *
Senator Raggio asked the committee to review the differences in budgets to be discussed in the joint hearing with the Assembly Committee on Ways and Means to be held immediately following the Senate Committee on Finance hearing.
Lieutenant Governor - page 14
Daniel G. Miles, Fiscal Analyst, called attention to the differences in the budget for the Office of the Lieutenant Governor on page 14 of the Executive Budget. He said the committee had advocated the addition of a clerical position and equipment for the Las Vegas office, whereas the assembly had added equipment only.
Secretary of State - Page 52
Mr. Miles reminded the committee they had closed the budget prior to making a determination to move data processing personnel back into their original offices instead of into the Governor's proposed Information Technology Services Division. He explained the assembly had moved the microcomputer specialist back into the budget, which the Senate Committee on Finance had not considered at the time the budget was closed.
Mr. Miles said the assembly also asked for an audit of special services fees to ensure they were moving the appropriate amount of those fees into the Office of the Secretary of State to support positions that have been added over the years from those fees. As a result it was determined another $78,000 in the first year and $83,000 in the second year should be transferred into the office to save General Fund dollars and to fund the added positions.
Senator Raggio asked if the $78,000 and $83,000 would come from the fees collected to expedite service. Mr. Miles concurred, saying it was based upon the positions added over the past 6 years on the basis of the "expedite" fees.
Senator Raggio indicated he would be willing to go along with the assembly on those changes. He requested any member of the committee to please inform him if he or she wished to hold this or any other budget.
University of Nevada System Administration - Page 115
Mr. Miles pointed out an error on the closing sheets which showed the senate adding Regents Discretionary Funds. He said the senate did not take that action, but the Assembly Committee on Ways and Means did add to that fund. The only adjustment made by the senate committee was to add unemployment compensation funds, as was done throughout the university budgets.
In response to a question by Senator Glomb, Mr. Miles explained the university had overlooked a request for unemployment compensation funds, so those funds have been added to each budget. Senator Raggio remarked the university had been paying those funds out of reserves, which have now been depleted. The result is the augmentation of university budgets to accommodate the amounts necessary for unemployment compensation.
University Press - Page 122
Mr. Miles called attention to the addition of a southern Nevada editor made by the Senate Committee on Finance which was not added by the assembly.
Senior Citizens Property Tax Rebate - Page 212
Mr. Miles reminded the committee members they had closed the budget according to the Governor's recommendation, but the assembly had added over $300,000. Senator Raggio pointed out that would be a $330,000 cost to the General Fund. The amount was designated to provide higher rebates. Mr. Miles explained that due to proration of rebates this year the assembly was attempting to maintain an 80 percent prorated rate into the future. He said there had been a prediction it could go as low as 75 percent.
Senator Glomb asked if the additional funds would be adequate to provide for the full 80 percent. Mr. Thorne explained the Assembly Committee on Ways and Means had closed the budget with the stipulation that a floor of 80 percent be set for rebates. He said the cap would be removed only if the rebate dropped below the 80 percent level.
Senator Raggio noted the committee probably could not agree with the assembly action and suggested the budget be held for further consideration.
Dairy Commission - Page 475
Mr. Miles indicated the budget had been addressed prior to the time that the assembly had proposed the Executive Director should be directly appointed by the Governor. Senator Raggio recalled a lengthy discussion among committee members who came to a consensus that the Executive Director should continue to be appointed by the Dairy Commission. He noted the Governor appoints the commission.
Senator Coffin inquired if the assembly contemplated a statutory change. Senator Raggio answered it would require a statutory change. Senator Coffin agreed the budget should be held for the time being.
Senator Jacobsen commented there was a vacancy that was filled by the Governor. Senator Jacobsen said the position normally was held by a person in the banking industry, according to the statutes, but the person who had been appointed was not a banker. He concluded "We're getting off track."
Postsecondary Education Regulation - Page 580
Mr. Miles said the vacancy savings at $535 had been eliminated by the senate whereas the assembly had closed the budget according to the Governor's recommendation.
Education Administration - Page 637
Mr. Miles explained that both sides had made similar changes with just two exceptions. He said the assembly had restored the position for a Library Consultant, which the senate deleted, and had authorized full payment for dues. The senate had restored a Management Assistant II position by using half of the funds for dues. He indicated the Assembly Committee on Ways and Means would be adding more from the General Fund than the Senate Committee on Finance.
Senator Glomb pointed out further decisions regarding the education administration were pending and requested that the budget be held. She remembered wanting to restore a library consultant position.
Senator Raggio recalled that had failed but the committee had decided to restore a management assistant.
Senator Raggio suggested the committee should hold taking action on the Education Administration budget.
Education for Handicapped - Page 675
Mr. Miles recognized the budget falls under Title VI-B. He said the differences in recommendations arrived at by the assembly and senate were basically technical.
Mr. Miles pointed out and elaborated upon the details proposed on the budget by both committees. He said the Assembly Committee on Ways and Means had not taken action to restore pay at the top of the scale for the Special Education Consultant as had the Senate Committee on Finance. He recalled the senate had taken action because the Clark County School District had felt compelled to hire the person at the step 15 pay rate in order to attract her to the position. He conjectured the assembly had already closed the budget before the matter was brought to light.
Laboratory and Research - Page 818
Mr. Miles said both committees had taken similar expenditure actions for the Bureau of Laboratory and Research. The reorganization savings were deleted by both committees in order to restore the laboratory supervisor. The assembly provided funding through General Funds whereas the senate provided funding through increased laboratory fees.
Senator Raggio asked if the committee wished to hold the budget for further discussion, which the committee confirmed.
Child and Family Administration - Page 938
Mr. Miles said the only exception in the way the two committees closed the budget was under Maintenance. The Senate Committee on Finance adjusted the regular appropriation amount by deducting funding for contract sexual offender evaluations by $10,000 in each year. He said there is a corresponding proposal to use the $10,000 in another budget for medical care for emancipated foster-care children. The latter has not been closed by the committee as yet.
Senator Raggio indicated discussion on the matter would be appropriate although the committee may wish to delay action.
Developmental Disabilities - Page 1050
Mr. Miles called attention to the Out-of-State Travel category, which the finance committee increased. He reflected the work program had been left with only $800 for travel so the committee determined the budget should be brought back up to the work program level. The agency had requested nearly twice as much as the $2,692 agreed upon by the committee. He noted these are federal grant funds.
Senator Raggio suggested holding the budget.
Museums and History - Page 1120
Mr. Miles pointed out the assembly had changed reorganization savings to vacancy savings in the account. He said there would be no net effect to the budget. Senator Raggio said it meant the amount would have to be recovered by the department, and it would accommodate the current practice which allows a department head to transfer funds within the department up to the amount of the vacancy savings.
State Museum, Carson City - Page 1124
Both committees deleted reorganization savings, Mr. Miles said. The assistant director would be restored by deleting the director. He stated the assembly had increased the expense for exhibits, but he did not know their intentions for use of those funds.
State Museum, Las Vegas - Page 1139
Mr. Miles said the ways and means committee had used revenue from the General Fund to restore the director's position, and the finance committee had added the revenue item, "donations, gifts and sales."
Senator Raggio recalled a lengthy discussion on the budget. He asked what the difference in cost for the director would be. Mr. Miles responded the assembly had commenced the director's employment on October 1, whereas the senate had funded his position for 2 full years.
Senator Coffin asked if the museum had responded that they would be able to increase revenue through donations, gifts and sales. Senator Raggio replied no response had been received. He suggested holding the budget until it was determined if that would be practical.
Nevada State Library - Page 1159
Mr. Miles described the two major differences in actions taken by the senate and assembly on the Nevada State Library. He said the senate had increased General Fund appropriations by $13,000 each year and added a match from the counties in order to increase the funds for bookmobiles by $26,000 each year. The senate also expanded the revenue from gifts, donations and sale of materials, which the assembly did not do.
Mr. Miles stated the assembly added $50,000 for books each year to be funded one-third from the General Fund, one-third from federal Title I funds, and one-third from gifts and donations. Senator Raggio said, "They reduced federal Title I funds each year by $77,000 to accommodate that." Mr. Miles said it was a combination of the $50,000 for books and the $26,000 for the bookmobiles.
Senator Coffin asked if it would be appropriate to reduce the assembly appropriation by the amount projected for book sales, since they did not want to include it.
Mr. Miles said the senate had adjusted the book sales and donations to $153,899 each year for the book budget. The assembly had anticipated only $51,000 from donations.
Senator Raggio asked how much revenue had come from donations in the past. Mr. Thorne responded he did not have the information. He recalled the library had indicated they could raise some funds through book sales and donations.
Senator Callister asked if revenues had come from those sources in the past. Robert Guernsey, Principal Deputy Fiscal Analyst, said he had been informed by Joan Kerschner, Director, State Library and Archives, that there was no history of collecting cash donations for book costs. He said she had speculated the library might bring in about $2,000 from sales and donations. Mr. Guernsey said the assembly action calling for revenue from the three sources would be a more realistic goal than the original construction of the budget at $150,000.
Senator Raggio read a memorandum dated March 2, 1993, from Ms. Kerschner in which she conceded a lack of experience raising funds, especially in the amount of $150,000. She acknowledged the success of the Nevada State Library Association in obtaining grants. She stated many organizations are willing to donate enhancement funds, but few are willing to pay for basic services. She added, "The fact that our primary clientele are state government is also a deterrent to some donors who feel the state should take care of its own." She protested another problem arises from the amount of time to plan fund-raising events and write grants as well as monitor and report on them. She identified a third problem as "the fact that most of the budget is bought on standing order, which requires start-up funds or massive cancellation and reorder." She stated her commitment to meeting the challenges as well as possible. She indicated the use of federal funds for the book budget would be allowable but voiced concern over depending upon federal funds.
Senator Raggio suggested the committee should obtain more realistic information from the library prior to taking final action on the budget.
Mr. Miles indicated those were the only budgets with conflicts scheduled for discussion with the assembly at the joint meeting. Senator Raggio asked the committee to consider closing more budgets in committee.
Office of the Governor - Page 1
Mr. Miles commented the only recommended adjustment was for the rent to restore the Employee Management Relations Board (EMRB) office in Las Vegas. The Governor had eliminated that office.
Senator O'Donnell inquired why the Governor's travel budget had increased by 200 percent and would go up by a $9,000 enhancement in each year of the biennium in addition to the Base travel budgets.
Mr. Thorne called attention to the work program base and said the $9,000 would bring the travel funding up to current levels. Senator Raggio noted In-State Travel in 1992 was $12,500 as reflected in the Base budget. He asked if it is currently above that figure. Mr. Thorne replied, "It's currently at $21,995," but he was unsure what had actually been incurred this year.
SENATOR COFFIN MOVED TO ADJUST THE BUDGET FOR THE REDUCED RENTAL IN THE LAS VEGAS OFFICE AT $4,980 AND $4,988.
SENATOR CALLISTER SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR O'DONNELL VOTED NO. SENATORS RAWSON AND GLOMB WERE ABSENT FOR THE VOTE.)
* * * * *
Senator O'Donnell declared he did not believe it was proper to add $9,000. He pointed out all the other budgets were decreasing travel. Senator Raggio commented there were no vacancy savings in the budget.
Treasurer's Office - Page 61
Senator Raggio voiced his intention to hold the budget until information was forthcoming regarding an additional request for some equipment. Mr. Thorne said the request was being considered by the Interim Finance Committee (IFC). He indicated it should not be necessary to hold the budget because the request would be handled by the IFC.
Mr. Miles recalled testimony regarding the transfer of a microcomputer specialist to the consolidated data processing department. The recommendation was to restore that position to the Treasurer's Office budget.
Mr. Miles said the Office of the State Treasurer had sent a white paper to all members of the committee (Exhibit C. Original is on file in the Research Library.) in which the treasurer indicates a preference that the issuance of all debt be consolidated with the State Board of Finance rather than with the State Board of Examiners as proposed by the Governor.
Mr. Thorne stated the debt issuance authority currently is with the State Board of Examiners. Senator Raggio asked why it should be with them rather than with those who deal primarily with finance. Mr. Thorne explained, "I believe the rationale is that the [State] Board of Examiners is the entity that rules on approval of contracts and other issues such as that for the executive branch." He said diverse factors determine when to issue debt other than strictly financial considerations.
Senator Raggio expressed a desire to invite more input on the matter prior to making a determination.
Mr. Miles said the treasurer's office had suggested unclaimed property should logically go under the treasurer's office rather than in the Department of Business and Industry. He said it currently is in the Department of Commerce.
Mr. Miles stated another proposal had been made that the internal audit function should be reported to the State Board of Finance. He said a proposal had been made to create a chief analyst of cash management position to deal with federal requirements of cash management and to improve investment returns. He noted the annual cost would be about $63,000. The treasurer's office projected an additional $250,000 could be obtained each year from interest earnings with the addition of the cash management position. Mr. Miles stated his belief the Assembly Committee on Ways and Means had approved the position.
Senator Raggio concurred the cash management position might be appropriate. He pointed out the assembly had also restored the microcomputer specialist but had reduced the programming charge. He invited a motion.
SENATOR JACOBSEN MOVED TO RESTORE THE MICROCOMPUTER SPECIALIST AND ATTENDANT CHARGES, WITH ADJUSTMENTS TO EXPENSE, AND TO APPROVE THE NEW CASH MANAGEMENT POSITION TO DEAL WITH FEDERAL REQUIREMENTS AND TO IMPROVE INVESTMENT RETURNS.
SENATOR O'DONNELL SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS RAWSON AND GLOMB WERE ABSENT FOR THE VOTE.)
* * * * *
Regarding the internal audit proposal, Mr. Thorne said there are two primary purposes for that. One purpose would be to assist the executive branch agencies in establishing internal controls, and one would be to verify the accuracy of performance indicators for budgeting purposes. He explained it would not be an auditing function such as that done by the Legislative Counsel Bureau (LCB). Senator Raggio agreed the terminology was a bit deceiving. He reiterated the intention to discuss the matter further with the state treasurer.
Military - Page 1445
Steve J. Abba, Program Analyst, described proposed modifications to military facilities for utilities. He said the Department of the Military had been requested to make a second projection of utility costs for the 1994-95 biennium and they had lowered their projection for 1994 by $10,113.
In fiscal year 1995 the military department had built in some significant increases based upon the premise new facilities would be opening in July of 1995. Mr. Abba explained the facilities projected for opening included the Washoe County Armory and three facilities at Nellis Air Force Base. He said it is unlikely those facilities will open during the coming biennium, so the utilities had been reduced accordingly.
Mr. Abba suggested if the facilities do open, that the department be allowed to approach IFC for appropriations to cover utility costs.
Senator Raggio related the Senate Committee on Government Affairs is considering a measure to authorize a compact to allow out-of-state employment of the Nevada National Guard for drug interdiction purposes. He voiced his understanding the funding would come from the requesting state. He asked if any authorization should be included in the Military budget for that purpose. Mr. Abba responded there is no authority built into the budget for any monies coming in from another state. He suggested there should be some authority to receive those funds if the bill is passed.
Senator Raggio announced the budget could be closed now but reopened if the bill is passed to insert some authority. Mr. Abba suggested IFC could field the problem. Mr. Miles interjected the Governor would have the authority to act by declaring an emergency, while Senator Raggio acknowledged the technical problem if the emergency is not within the state.
SENATOR JACOBSEN MOVED TO ADJUST THE BUDGET REGARDING UTILITY COSTS IN ACCORDANCE WITH THE STAFF RECOMMENDATION.
SENATOR O'DONNELL SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR RAWSON WAS ABSENT FOR THE VOTE.)
* * * * *
Adjutant General Construction - Page 1452
Mr. Abba recommended closing the budget according to the Governor's recommendation. He noted that there is a $60,000 appropriation within the budget to construct a metal shed at the Carson City facility. He said the maintenance staff of the Department of the Military would do the actual construction work.
SENATOR JACOBSEN MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE GOVERNOR'S RECOMMENDATION.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR RAWSON WAS ABSENT FOR THE VOTE.)
* * * * *
Senator Raggio announced the State Emergency Response Commission and the Emergency Management budgets would be reviewed on the following day.
Senator Callister wanted some information on the university budgets. He asked if merit money had been included in the final closing recommendations. Senator Raggio replied the Governor had recommended a 2 percent pool which was retained in the subcommittee recommendations.
In response to Senator Callister's query as to how much money that would include, the staff estimated it was near $2 million. Senator Callister indicated there is a potential the money may not be distributed on the basis of merit so much as across-the-board. He suggested that would in effect be a raise, when nobody else in the system will receive a raise. He asked if anyone on the subcommittee would consider a recommendation to reallocate the funds to enrollment growth rather than across-the-board.
Senator Raggio responded there had been hours of discussion over several legislative sessions. He recalled the legislature had relented and allowed an across-the-board distribution at the community college level, while it would remain a merit concept at the university level. He acknowledged each institution would have authority to handle the funds independently.
Senator Callister recalled that some institutions had deferred the merit funds following the last legislative session in order to use the money for a shortfall due to increased enrollment. He suggested the circumstances were no more difficult this biennium. He disapproved of the concept that the budget is being cut while another $2 million was going to be distributed across-the-board.
Senator Raggio reiterated the regents had allowed each institution to use the money according to independent judgement. He pointed out it would not be an easy problem to discuss.
Senator Callister repeated information that a vote at the University of Nevada, Las Vegas, had elected to distribute the money to everyone. Senator Raggio indicated that had not been the legislative intent and the administrators had assured the legislature that the funds would be used only for merit pay. He voiced surprise that they would be guided by such a vote.
Senator Callister asked if the budget would be closed in the joint meeting coming up. When Senator Raggio responded it would be considered, Senator Callister requested that the budget be held.
Senator Raggio pointed out only the differences between the senate and assembly would be discussed.
There being no further business before the committee, Senator Raggio adjourned the meeting at 9:33 a.m.
RESPECTFULLY SUBMITTED:
Judy Jacobs,
Committee Secretary
APPROVED BY:
Senator William J. Raggio, Chairman
DATE:
??
Senate Committee on Finance
May 19, 1993
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