MINUTES OF THE
SENATE COMMITTEE ON FINANCE
Sixty-seventh Session
May 20, 1993
The Senate Committee on Finance was called to order by Chairman William J. Raggio, at 8:15 a.m., on Thursday, May 20, 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
Steve J. Abba, Program Analyst
Birgit K. Baker, Program Analyst
Jeanne L. Botts, Program Analyst
Marion Entrekin, Committee Secretary
OTHERS PRESENT:
Judy Matteucci, Director, Department of Administration
Senator Raggio opened the meeting by announcing the hearing will be postponed regarding Senate Bill (S.B.) 471.
SENATE BILL 471: Creates office of advocate for missing or exploited children and makes various changes relating to clearinghouse for information concerning missing or exploited children.
Senator Glomb, the prime sponsor of S.B. 471, requested the hearing be postponed for a later date but said she has a meeting planned for 12:00 noon today for those who have expressed a desire to voice their concerns.
Senator Coffin asked that Exhibit C, a letter from Kathleen Stewart, Member, Committee for the Protection of Children, be included for the record opposing the passage of S.B. 471.
Emergency Management - Page 1461
Steve J. Abba, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, testified during recent budget hearings there was a great deal of discussion regarding the consolidation of the State Emergency Response Commission (SERC) being consolidated with the Division of Emergency Management. Testimony by various individuals revolved around losing the autonomy of SERC as well as the loss of some of the funds earmarked for local emergency planning commissions in the form of flow-through grants. Exhibit D, Budget Closing Action Sheet, denotes the modifications proposed to reverse the Governor's recommendation to merge the Division of Emergency Management with SERC. Mr. Abba reviewed the changes reflected in Exhibit D with the committee. He pointed out the SERC budget and the Program Officer position in the SERC budget will be re-established, while the proposed new Hazard Mitigation Officer to
be responsible for the SERC administration and the Earthquake Hazard Reduction program is recommended to be eliminated.
Senator Glomb asked if the SERC funds reflected for this budget will remain and not be transferred to another budget.
Mr. Abba responded, "No, all of the funding mechanisms that currently provide for the operational costs of SERC will be taken out of this budget and re-established in the SERC budget, page 1693."
SENATOR RAWSON MOVED TO CLOSE THE BUDGET ACCORDING TO STAFF RECOMMENDATIONS ON BUDGET PAGE 1461, EXHIBIT D.
SENATOR JACOBSEN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR CALLISTER WAS ABSENT FOR THE VOTE.)
* * * * *
Emergency Management Assistance - Page 1468
SENATOR GLOMB MOVED TO CLOSE THE BUDGET AS
RECOMMENDED BY THE GOVERNOR.
SENATOR JACOBSEN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR CALLISTER WAS
ABSENT FOR THE VOTE.)
* * * * *
Emergency Management Federal Grants - Page 1470
Mr. Abba stated the modification listed on the closing sheet, Exhibit D, relates to the re-establishment of the Disaster Response Planner position and supporting costs currently responsible for the Earthquake Hazard Reduction Program. Currently, the program is administered in the Emergency Management Federal Grants budget with a Disaster Response Planner position. The program will require a 50 percent state match effective October 1, 1993. It is currently funded entirely with federal funds and a 35 percent state in-kind match.
Senator Raggio asked how much would be required for the 50 percent state match, and Mr. Abba replied $21,338 for fiscal year 1994 and $29,626 for fiscal year 1995 for a total of $51,014 to retain the Disaster Response Planner position and supporting costs. The current recommendation to use SERC monies for the Division of Emergency Management's budget would require about $170,000. Less SERC monies would be needed to use this option.
Senator Raggio asked, "If we did not want to use a General Fund appropriation, could SERC money be used for the match?"
Mr. Abba replied in the affirmative.
Judy Matteucci, Director, Department of Administration, said:
When you get to the SERC budget, you are going to have to re-establish two positions. When we moved and combined SERC into emergency management, there was a slight increase in administrative money but not the difference Mr. Abba represented to you as far as administrative dollars. If you go and use the SERC money...which was one of their big arguments that you were using local money for state responsibility and why they did not want to be combined with emergency management....If you use this money as proposed you are going to be very close to what we were proposing to use to support emergency management and, therefore, decrease General Fund. I think that clarification needs to be on the record.
The Governor suggested you use the SERC money and put the administration in emergency management and combine the two accounts. The SERC commission responsible for hazardous materials training and only that portion of emergency preparedness objected to being combined with emergency management and objected to the use of SERC monies to support what they considered to be state responsibility. If you now use the SERC money you are doing the same thing but coming about it in a different way...but they are keeping their autonomy and it is costing you additional General Fund.
Senator Jacobsen commented hazardous materials training revolves around all 17 counties and the state requests that each county submit a plan for the federal funds that are used for that.
Senator Glomb commented, "We have already had an earthquake in our budget. This is to fund for the match money for an Earthquake Hazard Reduction program. I believe this is something we could do without for 2 years since we have to make budget cuts somewhere."
Senator Coffin said he believes the Earthquake Hazard Reduction program is very important to the state that is so geologically active and so far behind in earthquake planning.
SENATOR RAWSON MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS ON BUDGET PAGE 1470 OF EXHIBIT D WITH THE OPTION TO MATCH THE POSITION AND SUPPORTING COSTS WITH SERC MONEY IN THE AMOUNT OF $21,388 FOR FISCAL YEAR 1994 AND $29,626 FOR FISCAL YEAR 1995.
SENATOR O'DONNELL SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR CALLISTER WAS ABSENT FOR THE VOTE.)
* * * * *
Emergency Response Commission - Page 1693
Birgit K. Baker, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, referred the committee to budget closing action sheet 1693, Exhibit D, which she reviewed with the committee. She pointed out the closing action sheet reflects the restoration of the Emergency Response Commission budget including the SERC Program Officer and Management Assistant position.
SENATOR RAWSON MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS ON BUDGET PAGE 1693 OF EXHIBIT D TAKING INTO ACCOUNT THE COMMITTEE'S PREVIOUS ACTION REGARDING THE SERC MATCH.
SENATOR JACOBSEN SECONDED THE MOTION .
THE MOTION CARRIED. (SENATOR CALLISTER AND SENATOR COFFIN WERE ABSENT FOR THE VOTE.)
* * * * *
National Guard Benefits - Page 1727
Senator Raggio requested this budget be held pending comments to be made by Senator Coffin who is absent from the hearing at this time.
Reading from prepared text, Exhibit E, Jeanne L. Botts, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, reported on actions taken by the Natural Resources subcommittee concerning the Governor's proposed reorganization of the State Department of Conservation and Natural Resources.
As a part of her testimony, Ms. Botts reported on suggested sources of revenue for personnel and maintenance of state parks which included a larger share of the motorboat fuel tax now going to the Department of Wildlife. Senator O'Donnell wished to add that the issue regarding the distribution of revenue from motorboat fuel tax is still under consideration.
Ms. Botts pointed out the majority of testimony heard by the subcommittee centered on the fate of the numerous boards and commissions. She continued her testimony regarding this issue by reading from the prepared text, Exhibit E.
Senator Glomb referred to the chart on page 4 of Exhibit F, Natural Resources Subcommittee Report of May 18, 1993, and budget closing action sheets. She asked for clarification as to which boards were being combined and which boards were being deleted as reflected on the chart.
Ms. Botts said the only boards being deleted are listed at the top of the chart [page 4 of Exhibit F] and are the State Parks Advisory Commission, Board of Forestry and Fire Control, and the State Multiple Use Advisory Committee on Federal Lands. Ms. Botts mentioned this chart was suggested by one of the subcommittee members who believed that each board should have a home within the Department of Conservation. She pointed out the Commission on Nuclear Projects was recommended to fall under the control of the Division of Environmental Protection, and the Advisory Board for Water Planning and Development under the control of the Division of Water Planning which reports to the director's office for the State Department of Conservation and Natural Resources.
Returning to Exhibit E, Ms. Botts resumed her testimony before the committee commencing on page 4.
Senator Raggio asked for an explanation of the proposed fee increases as outlined in Assembly Bill (A.B.) 314.
ASSEMBLY BILL 314: Makes various changes regarding appropriation of public water and increasing certain fees assessed by state engineer.
Ms. Botts did not have the information available but said the fees related to water applications or permits. She stated fees were raised considerably in 1989 in order to offset the costs for 12 additional positions for the Division of Water Resources. She said seven of the positions have been lost already due to budget cuts and the other five were targeted to be eliminated in the first year of the biennium.
Ms. Botts further explained the Division of Water Resources notified the budget director if they had severe staffing cuts they would not be able to earn the $1 million that they needed for the General Fund. A.B. 314 was introduced to raise fees to offset the loss because they would not have people to process the application. The director of the Division of Water Resources went a step further and said if he had all of the positions back, the agency would be able to earn additional revenue. They submitted a proposal to the Natural Resources subcommittee indicating if 17.5 positions were restored the division would be able to earn $807,000 for the General Fund which would more than cover the costs of the positions. The subcommittee recommended the positions be restored.
Senator Raggio commented the recommendation is conditioned upon the passage of A.B. 314, and Ms. Botts said that is correct.
Senator O'Donnell remarked if the 17.5 positions were not restored, the backlog in water applications would be numerous and it would become difficult to get a water application processed. The subcommittee felt that even though the addition of these positions would represent a salary cost, the corresponding revenue that would come in would more than offset the salary costs.
Ms. Botts resumed her testimony for the committee by reading from page 5 of Exhibit E in which she noted the subcommittee had heard testimony the state climatologist would be eliminated and his duties would go to the Division of Water Planning or the Division of Water Resources.
Senator O'Donnell mentioned he had spoken with the state climatologist because the subcommittee thought he should be transferred to the Desert Research Institute to become a part of that organization. The state climatologist did not think this would be a good idea, and the subcommittee later decided to leave the state climatologist where he is.
Ms. Botts concluded her testimony as reflected on pages 6 and 7 of Exhibit E.
Ms. Botts said the telecommunication workers in the budget recommended to be transferred to the new Department of Information and Technology Services were all restored to their original budget. The subcommittee did spend time discussing the telecommunications situation and the 800 megahertz system being proposed. In their budget request, the Division of State Parks has requested a waiver of having to participate in that system at this time. The subcommittee also heard testimony from the conservation agencies that they did not feel the system would serve their needs, particularly in the remote areas of the state. Ms. Botts further commented the budget director testified that the 800 megahertz system would be installed over a 10-year period with replacement funds for equipment. There was some concern the conservation agencies would not want to start buying equipment that would not be compatible.
Bob Guernsey, Principal Deputy Fiscal Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, said there was discussion about looking at the telecommunication needs of the state in reference to the transition of possibly moving to an 800 megahertz system. It was discussed this would be a major departure and would have a dramatic impact on the conservation agencies in the future. The subcommittee discussed this may be a prime area for a legislative study of some type since there is a strong feeling they should be involved if the state is going to move to an 800 megahertz system.
Senator O'Donnell added that when you move from one radio system to another, if it will involve a slow migration over a 10-year period, two different radios will be needed or the radios would have to be upgraded to make this slow transition. He pointed out there is no money in the budget to do this.
Ms. Matteucci clarified this is a 10-year plan and the only thing that has been requested at this point is how agencies will get from where they are at the present time to where they will be in 10 years.
Senator Rawson wondered if the state could adopt a radio system that could be adapted in the future in a less expensive manner. He added it is true that in a 10-year period technology advances so rapidly it may not be practical.
Senator O'Donnell said there is an entirely new technology which is a low earth orbit geo-synchronous transmitter that will be capable of being used in the next 10 years, but for the state to consider this now would be premature.
Senator Callister arrived for the meeting at 9:19 a.m.
Bureau of Air Quality - Page 1507
Ms. Botts stated this budget within the Division of Environmental Protection is supported by assessment to the other two budgets within this division. Adjustments were necessary to match the transfer from this account to an amount that was transferred to budget account 101-3173 for the Division of Environmental Protection and to charge each revenue source appropriately for indirect costs.
SENATOR O'DONNELL MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS ON BUDGET PAGE 1507 OF EXHIBIT F.
SENATOR RAWSON SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
* * * * *
Water and Mining Bureau - Page 1528
Ms. Botts remarked the only required changes are to adjust for indirect costs and properly track expenditures to the right revenue source. The Budget Division created miscellaneous revenue instead of balancing to each separate revenue source. These adjustments correct that error and increase indirect costs which
are transferred to the budget account for the Division of Environmental Protection.
SENATOR O'DONNELL MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS REFLECTED ON BUDGET PAGE 1528 OF EXHIBIT F.
SENATOR JACOBSEN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
* * * * *
High Level Nuclear Waste - Page 1534
SENATOR O'DONNELL MOVED TO CLOSE THE BUDGET AS RECOMMENDED BY THE GOVERNOR AND IN ACCORDANCE WITH STAFF RECOMMENDATIONS ON BUDGET PAGE 1534 OF EXHIBIT F.
SENATOR JACOBSEN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
* * * * *
Recycling Program - Page 1545
Ms. Botts stated it has been recommended to eliminate this budget and restore the recycling program costs and grants in the budget for account 101-3187 for Waste Management and Federal Facilities under the Division of Environmental Protection.
SENATOR JACOBSEN MOVED TO ELIMINATE THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS ON BUDGET PAGE 1545 OF EXHIBIT F.
SENATOR O'DONNELL SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
* * * * *
Senator Callister wished to state for the record he believed it would have been appropriate to make the Division of Environmental Protection a separate department as recommended by the Governor to achieve some cabinet-level status. He asked how significant the Governor's concern is regarding this issue.
Ms. Matteucci replied the Governor is currently involved in negotiations with the Assembly Committee on Ways and Means concerning this issue. Although he has other concerns to deal with, he still recommends the Division of Environmental Protection should be separated from the State Department of Conservation and Natural Resources and made a separate department.
Senator Callister expressed his desire the committee not absolutely make up their minds against that one component of the reorganization proposal.
Senator Raggio pointed out that was one of the basic decisions made early in the session and it was announced at a joint public meeting not to separate the Division of Environmental Protection. He is proceeding on that basis.
Waste Management and Federal Facilities - Page 1548
Ms. Botts reviewed the budget closing action Exhibit F with the committee. She mentioned at this point the Assembly Committee on Ways and Means and the Senate Committee on Finance differ regarding how they plan to treat the Agency for Nuclear Projects. Within the Senate Finance subcommittee it was recommended this agency be absorbed within the Division of Environmental Protection. The assembly is recommending the agency be a separate division. Because of that discrepancy and depending upon how this issue will be resolved, there may have to be other indirect cost adjustments made to this budget account.
SENATOR O'DONNELL MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH RECOMMENDATIONS OF THE SUBCOMMITTEE.
SENATOR RAWSON SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR CALLISTER AND SENATOR GLOMB WERE ABSENT FOR THE VOTE.)
* * * * *
Environmental Protection - Page 1553
Ms. Botts said this is the final budget account within the Division of Environmental Protection and is the administration account in which all of the indirect costs charged against the other three accounts for the Division of Environmental Protection will be placed. The Governor recommended this be a department and salary for a department director was included in the account. This salary
will be eliminated and the position of administrator for the Division of Environmental Protection will be retained instead.
Ms. Botts referenced Exhibit F regarding the budget closing actions taken for this account.
SENATOR O'DONNELL MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH RECOMMENDATIONS BY THE SUBCOMMITTEE.
SENATOR RAWSON SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR CALLISTER AND SENATOR GLOMB WERE ABSENT FOR THE VOTE.)
* * * * *
State Environmental Commission - Page 1558
SENATOR COFFIN MOVED TO CLOSE THE BUDGET AS RECOMMENDED BY THE GOVERNOR.
SENATOR O'DONNELL SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR CALLISTER AND SENATOR GLOMB WERE ABSENT FOR THE VOTE.)
* * * * *
State Lands - Page 1561
Ms. Botts said the subcommittee recommended the Division of Conservation Districts remain a separate division. The expenditures deleted from this account are largely those that were associated with the programs for the conservation districts that were rolled into this account during the reorganization plan and are now being reversed out.
Senator Raggio requested this budget be held pending action on Assembly Bill (A.B.) 430.
ASSEMBLY BILL 430: Makes various changes regarding fees of state land registrar and authorization to use state lands.
Division of Forestry - Page 1573
Ms. Botts stated the subcommittee recommended the elimination of board member pay and consolidation of the State Board of Forestry and Fire Control into the new Natural Resources Board.
SENATOR O'DONNELL MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH RECOMMENDATIONS BY THE SUBCOMMITTEE.
SENATOR JACOBSEN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR CALLISTER AND SENATOR GLOMB WERE ABSENT FOR THE VOTE.)
* * * * *
Water Resources Division - Page 1592
Ms. Botts stated the subcommittee recommended that 17.5 positions that had been proposed for elimination by the Governor be restored. Fee increases in A.B. 314 will offset the cost to the General Fund for these positions.
SENATOR O'DONNELL MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATIONS BY THE SUBCOMMITTEE TO RESTORE 17.5 POSITIONS CONDITIONED UPON FEE INCREASES OUTLINED IN A.B. 314.
SENATOR COFFIN SECONDED THE MOTION.
Senator Raggio noted this budget may be subject to being reopened if A.B. 314 does not pass.
THE MOTION CARRIED. (SENATOR CALLISTER WAS ABSENT FOR THE VOTE.)
* * * * *
Marlette Lake - Page 1597
Dan Miles, Fiscal Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, said the subcommittee's recommendation is to leave this budget account with the Buildings and Grounds Division as recommended by the Governor.
SENATOR JACOBSEN MOVED TO CLOSE THE BUDGET AS RECOMMENDED BY THE GOVERNOR.
Ms. Botts interjected it was her understanding that the Governor recommended this account should be placed with the Division of Water Resources but the subcommittee decided to leave it with the Buildings and Grounds Division.
Senator Raggio asked what adjustments to the budget will be necessary so that a new motion can be made.
Mr. Miles replied there would be no adjustments other than the account would remain under the Buildings and Grounds Division.
SENATOR JACOBSEN MOVED TO CLOSE THE BUDGET LEAVING IT WITH THE BUILDINGS AND GROUNDS DIVISION AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR RAWSON SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR CALLISTER WAS ABSENT FOR THE VOTE.)
* * * * *
Carson Water Treatment Plant - Page 1600
Ms. Botts stated as in the budget just closed, the Governor had recommended this account be placed under the Division of Water Resources but the subcommittee decided to leave it with the Buildings and Grounds Division.
Mr. Miles said the agency provided revised estimates for General Fund payback and an adjustment to this budget reflects those revisions. The amounts for buildings and grounds special services reflect support services provided by the Buildings and Grounds Division.
SENATOR JACOBSEN MOVED TO CLOSE THE BUDGET AS RECOMMENDED BY THE SUBCOMMITTEE LEAVING IT WITH THE BUILDINGS AND GROUNDS DIVISION AND INCLUDING THE ADJUSTMENTS AS NEEDED.
SENATOR O'DONNELL SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR CALLISTER WAS ABSENT FOR THE VOTE.)
* * * * *
Wildlife - Page 1603
Mr. Guernsey remarked the subcommittee spent a considerable amount of time discussing various aspects of the Department of Wildlife in reference to the budget. They recommended two positions connected with the communications section be restored within the department. They also recommended that the boat registration positions and related functions recommended to be transferred to the Department of Motor Vehicles and Public Safety be transferred back, and be retained, by the Department of Wildlife.
Mr. Guernsey further commented it was recommended that the planning position be deleted from the General Fund portion of this budget and be transferred to the State Department of Conservation and Natural Resources.
Referring to the budget closing action sheet for this account in Exhibit F, Mr. Guernsey said a number of revenue adjustments were made. He explained when the Budget Division removed the communications section, they balanced the revenue to federal Dingell Johnson funds, and the subcommittee had to make a number of technical adjustments to reverse what was done in order to reinstate those positions. The action by the Budget Division is displayed on page 25 of Exhibit F as an attachment to budget page 1603. Page 26 of Exhibit F reflects what the subcommittee recommended be done to properly adjust this budget.
Continuing, Mr. Guernsey referred the committee to page 28 of Exhibit F that reflects a transfer action to this account from budget account 101-4456, Wildlife-Boating Program. He explained salary costs associated with wildlife positions that work on the waters involved with boat activities are paid for out of account 101-4456 and are shown as a transfer into the wildlife budget account 101-4452. In addition, the subcommittee recommended restoring the boat registration function of $159,000.
One of the communication positions has historically been paid from the boat account 101-4456, and the Department of Wildlife feels it should continue to be paid from this account. The salary amount $51,553 is reflected as a transfer from account 101-4456 for this position. This action is displayed on page 28 of Exhibit F.
Finally, Mr. Guernsey said in the Operating category $66,000 was transferred from boat account 101-4456 to the wildlife budget 101-4452.
According to Mr. Guernsey, the grand total for all actions taken amounts to $1,331,553 the first year of the biennium and $1,331,877 the second year of the biennium. Contained in the Governor's Executive Budget is $1 million requiring an additional $331,553 the first year of the biennium and $331,877 the second year of the biennium for the wildlife account to fund the aforementioned costs.
Senator Raggio noted the subcommittee recommended restoring some funds for honor camp payments.
Mr. Guernsey said that is correct. He referred the committee to page 25 of Exhibit F and said when the Budget Division pulled out the communications section from the wildlife account, they also pulled out other expenses that did not relate to the communications section including the honor camp payments. The subcommittee felt since the honor camps were doing a good job of helping the Department of Wildlife, the payments should be restored.
Mr. Guernsey distributed Exhibit G, a chart analysis of tag sales providing a financial impact of the 1993 big game quotas. He also distributed Exhibit H, a letter from William A. Molini, Director, Department of Wildlife, dated May 19, 1993, regarding agency costs for requested mining positions.
Mr. Guernsey commented during the 1991 legislature when the budget for the Department of Wildlife was reviewed, the department anticipated a shortage of approximately $1.3 million. In order to help balance that shortage, a number of tag fees were raised and some mining money identified at $500,000 per annum was put into the budget to help fund the operation of the Department of Wildlife. Mr. Molini has never been satisfied with the committee's action in this regard. He acknowledged his department needed the funds, but he also wanted to hire additional positions utilizing the $500,000. The Senate Committee on Finance felt very strongly the $500,000 would be part of the funding for his overall budget and should not be utilized to hire additional positions for the department. Instead, the committee advised the director he would have to utilize existing positions and resources in order to work with the mining industry in reference to their cyanide ponds and other things involved with mining operations.
Referring to Exhibit H, Mr. Guernsey said the director of the Department of Wildlife is asking again for more positions to be added to his budget. Senator O'Donnell and Senator Jacobsen felt it would be best to present this information to the entire committee. The subcommittee still has some concerns in reference to the drought and the winter kill that the revenues for the Department of Wildlife may not be as high as anticipated, and similar shortfalls may exist as in 1991.
Reviewing Exhibit G, Mr. Guernsey said the Department of Wildlife actually collected $4.4 million from licenses and fees in the first year of the biennium. The Governor's Executive Budget was constructed using anticipated revenue from licenses and fees of $4.1 million for each year of the biennium.
Senator Raggio asked, "Is Mr. Molini indicating that the $4.1 million may not be reached?"
Mr. Guernsey responded this amount may or may not be reached, but the director is not indicating an actual amount of revenue he is anticipating. If the $4.1 million is not reached, then Mr. Molini will have to dip into his reserve of $800,000 in order to meet expenses for the department.
Ms. Matteucci said the $4.1 million was arrived at through consultation by Mr. Molini with the Governor. However, she has not had any discussion with him regarding Mr. Molini's latest caveat, Exhibit H.
Senator Raggio stated he believes the committee should act as if $4.1 million is the appropriate amount. Mr. Guernsey concurred with this statement and said Mr. Molini had taken $500,000 that was added to his budget for the mining operation and placed $400,000 of this amount into his obligated reserve, which was not the intent of the Senate Committee on Finance in 1991. Mr. Molini is once again attempting to obtain four new mining-related positions, and Exhibit H explains the reason for his request.
In response to Senator Raggio's question regarding Mr. Molini's desire to use the $500,000 from the mining operation for positions, Mr. Guernsey said he believes this is the director's way to use the money to augment staffing for the department which will give the department four additional positions.
Senator Raggio opined:
That flies in the face of reality if we are first getting a caveat that the fees from licenses may not be realized and then, as tight as the budget is now, adding four positions with money that is presently already being used...does not seem to be something that can be accommodated.
Mr. Guernsey said the subcommittee felt this was an important issue to bring to the attention of the entire committee.
Senator Raggio said the revenue picture at this point would not justify the additional four positions.
Senator O'Donnell commented representatives of the mining industry did testify before the subcommittee and their position was adamant. They want their money to be used properly or they want it back. They feel the funding they agreed to is not being properly utilized.
Senator Raggio mentioned that his recollection from last session was the mining industry recognized there were ongoing duties and responsibilities that were in place, and they felt an additional payment or assessment of this kind was justified. He does not believe there was a suggestion the money had to be used to sustain new positions.
Senator Rawson said he had heard there is a $20 hunting license fee that in the past was refundable for unsuccessful hunt situations but is now held to offer priority points towards future draws. He asked if this money shows up in the budget in any manner.
Mr. Guernsey and Ms. Matteucci both feel the fee money would be included in the Reserve category.
Senator Rawson believes this is a source of revenue that has not been well documented and this should be done. Senator Raggio asked a member of the Fiscal Analysis Division to submit a report to Senator Rawson regarding this issue.
SENATOR RAWSON MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS ON BUDGET PAGE 1603 OF EXHIBIT F BASED ON REVENUE OF $4.1 MILLION IN EACH YEAR OF THE BIENNIUM FROM LICENSE FEES, THE TRANSFER OF FUNDS FROM BUDGET ACCOUNT 101-4456, RESTORATION OF BOAT REGISTRATION, RESTORATION OF A COMMUNICATION SPECIALIST AND MANAGER, AND TO NOT AUTHORIZE NEW POSITIONS BE FILLED FROM MINING ASSESSMENT FUNDS.
Ms. Matteucci asked that a letter of intent be sent to the director of the Department of Wildlife outlining why the positions were not included.
Senator Raggio asked staff to draft the requested letter of intent.
SENATOR O'DONNELL SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
* * * * *
Wildlife Boating Program - Page 1611
Senator Raggio asked that this budget be held pending receipt of additional information by the subcommittee.
Wildlife Account - Trout Management - Page 1614
SENATOR RAWSON MOVED TO CLOSE THE BUDGET AS RECOMMENDED BY THE GOVERNOR.
SENATOR JACOBSEN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR COFFIN WAS ABSENT FOR THE VOTE.)
* * * * *
Wildlife - Habitat Mitigation - New Budget Page
Mr. Guernsey said this is a request by the Department of Wildlife
to continue authority for this account based upon a February 17, 1993, work program to accept $500,000 from the Independence Mining Company to be used to rehabilitate big game habitat that are presently below optimum because of encroachment, wild fires, and other factors. The director of the Department of Wildlife has indicated he wants to have this type of account to receive mitigation funds in order to restore the habitat.
Mr. Guernsey suggested a letter of intent for the director to report back to the Interim Finance Committee (IFC) regarding the use of funds in this account.
SENATOR O'DONNELL MOVED TO APPROVE THE CONTINUATION OF THIS ACCOUNT AUTHORIZED BY THE IFC IN FEBRUARY 1993 WITH THE AUTHORITY BASED UPON ANY ACTUAL AMOUNTS RECEIVED.
SENATOR RAWSON SECONDED THE MOTION.
Senator Raggio asked if a budget account number has been assigned.
Mr. Guernsey said there is a budget account number, 101-4451, in the controller's accounting system that will provide authority and place the agency on a budget page, and the account will continue during the coming biennium.
Senator Jacobsen suggested a seed-bank program might be in order to enhance the habitat that could work along with this approach.
Mr. Guernsey reiterated that is why he suggested a letter of intent so the legislature can continue to be involved with any plans that are established by the Department of Wildlife for utilization of funds for this account.
THE MOTION CARRIED. (SENATOR COFFIN WAS ABSENT FOR THE VOTE.)
* * * * *
State Parks - Page 1619
Senator Raggio asked that this budget be held pending further review.
Natural Resources Administration - Page 1625
Ms. Botts said a Natural Resources Board was created by combining the State Parks Advisory Board, State Multiple Use Advisory Committee on Federal Lands and the State Board of Forestry and Fire Control. The budget is based on a seven-member board, four meetings a year.
Ms. Botts continued her testimony by reviewing with the committee the budget closing action for this account as reflected on pages 37 and 38 of Exhibit F.
Senator Raggio asked, "What about the issue on the economist? Did the subcommittee talk about that?"
Ms. Botts said the Governor recommended that three of four employees left in the Division of Water Planning be moved into this budget. The economist was deleted. The subcommittee recommended the economist be included in this budget account.
Ms. Botts resumed her review of the budget closing action taken on this account.
Senator Raggio asked how much the dues are for the Western States Water Council, and Ms. Botts replied, "$21,000 a year."
Senator Raggio asked if these dues could be prorated, and Ms. Botts said she was not certain if this could be done. She would have to check into this.
Senator Raggio requested this budget be held pending information regarding the dues that he thinks should be for a lower amount than $21,000. He also asked for a report of what the state derives from paying these dues.
Nevada Tahoe Regional Planning - Page 1637
Senator Raggio asked that this budget be held pending further review by the subcommittee.
Division of Conservation Districts - Page 1689
Ms. Botts said this budget was recommended to be deleted by the Governor because the management analyst was transferred to the Division of State Lands and a management assistant or clerical position was deleted. The subcommittee has recommended that this budget be reinstated and the Division of Conservation Districts be retained as a separate division within the State Department of Conservation and Natural Resources. Both existing employees will be retained but the clerical employee, who is on a voluntary 40 percent furlough, would be retained on a 30-hour work week.
Ms. Botts continued discussion regarding this budget by reviewing the budget closing action reflected on page 40 of Exhibit F.
Senator Raggio said he has had many inquiries regarding the Governor's plan to delete this budget. He asked what the Governor's thoughts were about this proposal.
Ms. Matteucci replied:
The professional position that was handling the work for the Division of Conservation Districts was moved into the Division of State Lands budget. I think there was some miscommunication somewhere along the line that implied that the conservation districts were being eliminated. That is not the case and never was the case. What was being recommended was that the conservation commission be included in the Natural Resources board and that the professional staff be moved into state lands to continue to provide services to those conservation districts. The only elimination as a result of that consolidation was a clerical position. If I understand what your subcommittee is recommending...they want to reinstate that as a separate budget, add the clerical back, and have the conservation commission remain as a separate board.
Senator Jacobsen said that was his recollection of the subcommittee's proposal.
Senator Raggio said if this is the case, $200,000 in General Fund revenue will have to be put back into this budget account.
Ms. Matteucci commented:
...you are moving the professional position out of state lands and back into this budget, so you are having a corresponding decrease. Then there is an addition of General Fund in order to fund the clerical position....
I think somewhere your staff misunderstood originally and there was some implication that the conservation districts were being recommended for removal....There was no benefit in doing that to anyone and was never recommended. It was simply that the conservation commission was recommended to be rolled into the Natural Resources Board and state lands take over and they objected to that also.
Ms. Botts declared, "There was no mistake on the part of our staff."
SENATOR JACOBSEN MOVED TO RESTORE THE BUDGET IN ACCORDANCE WITH RECOMMENDATIONS BY THE SUBCOMMITTEE.
SENATOR O'DONNELL SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR COFFIN WAS ABSENT FOR THE VOTE.)
* * * * *
The meeting adjourned at 10:40 a.m.
RESPECTFULLY SUBMITTED:
Marion Entrekin,
Committee Secretary
APPROVED BY:
Senator William J. Raggio, Chairman
DATE:
??
Senate Committee on Finance
May 20, 1993
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