MINUTES OF THE
SENATE COMMITTEE ON FINANCE
Sixty-seventh Session
May 24, 1993
The Senate Committee on Finance was called to order by Chairman William J. Raggio, at 8:15 a.m., on Monday, May 24, 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
Jeanne L. Botts, Program Analyst
Marion Entrekin, Committee Secretary
OTHERS PRESENT:
Barbara Cegavske, Concerned Citizen
Eugene T. Paslov, Ph.D., Superintendent of Public Instruction, State Department of Education
Wanda Rosenbaum, Concerned Citizen
Carolyne W. Edwards, Legislative Representative, Clark County School District
Lindsey Jydstrup, Representative, Nevada State Education
Association
Sandi Coil, Concerned Citizen
Jeannie Simmons, Concerned Citizen
Judy Matteucci, Director, Department of Administration
Senator Raggio opened the hearing by requesting introduction of the following bill draft request (BDR).
BILL DRAFT REQUEST S-2082: Makes appropriation to legislative fund.
SENATOR COFFIN MOVED TO INTRODUCE BDR S-2082.
SENATOR JACOBSEN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
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Senator Raggio opened the meeting for discussion of Senate Bill (S.B.) 153.
SENATE BILL 153: Redesignates pupils with disabilities and requires training for teachers.
Senator Callister, the principal sponsor of S.B. 153, introduced Barbara Cegavske from Las Vegas, Nevada, and Wanda Rosenbaum, Boulder City, Nevada, who are advocates of S.B.153 and well versed with issues concerning students in the state's school system with disabilities, and the necessary requisite of training for teachers who work with those students.
Senator Callister stated he has received numerous letters and telephone calls from parents of children with disabilities who have expressed that one of the benefits of class-size reduction is children can remain in a traditional class without being placed in an expensive version of a reduced class setting or into a special education classroom. He further stated S.B. 153 attempts to address both the changes in language and terminology with regard to those students and to create the beginning steps towards teacher training to help them understand and respect the special needs of disabled children.
Senator Raggio asked that the committee be apprised on how S.B. 153 will change existing law.
Barbara Cegavske, Concerned Citizen, indicated S.B. 153 attempts to introduce new language as reflected on page 6, section 12. She explained the language change would substitute the word handicapped for the word disabilities. She also referred the committee to Exhibit D outlining suggested changes to S.B. 153.
Eugene T. Paslov, Ph.D., Superintendent of Public Instruction, State Department of Education, stated the term "disabilities" is now used in federal legislation. S.B.153 was amended to make it consistent technically with federal law requiring word changes and additions to make S.B. 153 in compliance with federal law, and the substance of the change to this bill is reflected in section 12 referencing the term "minors with disabilities and academically talented".
Dr. Paslov stated his department spent considerable time working with the educational community and parent advocates. Their goal was to develop language that will assure the type of training parent advocates want to have for the teachers in the classrooms to be able to work with mainstreamed disabled students as well as other disadvantaged students.
Referring to section 11 on pages 5 and 6 of S.B. 153, Senator Raggio noted there is a list containing new areas of disabilities and asked what the significance of this list is.
Dr. Paslov replied to keep the wording of the bill consistent with federal law and to make it consistent with the changes in section 12.
Ms. Cegavske testified in support of the passage of S.B. 153 by reading from prepared text, Exhibit D.
Senator Glomb asked if S.B. 153 will put the state in compliance with federal law and federal guidelines in terms of working with children with special needs.
Ms. Cegavske replied the guidelines refer to the wording. Section 12 of the bill indicates what the State of Nevada is being asked to do in order to be in compliance with federal law and relates to the training of teachers to deal with the special needs of children.
Senator Glomb asked how the state will go about this. She stated in speaking to teachers within the school system, they have expressed concern about the training they will receive to assist them in being able to work with children with special needs.
Ms. Cegavske said it is hoped the local school districts will be able to put together a professional development program. She indicated that studies have proven that children will do much
better academically if there is a mixture of different abilities in
the classroom.
Senator Glomb agreed with Ms. Cegavske but added this does not always hold true in a crowded classroom where the teacher might not have the support he or she needs to deal with children with special needs.
Senator Glomb asked Dr. Paslov if there are resources available in the budget to be able to implement the type of training needed for the teachers throughout the state.
Dr. Paslov answered the wording of S.B. 153 was carefully fashioned to avoid a mandate that would have a large fiscal note on it. He said the kinds of activities outlined in section 12 will be provided within current resources. His staff has made a commitment to work with the local districts to use federal money to supplement as much as they can, and the local districts have done similar kinds of things to use their professional development funds.
Dr. Paslov said the purpose of S.B. 153 was to make the technical amendments eluded to previously and to put into place what parents have been stating is needed by all of the teachers to help with the mainstreaming issue, not only with handicapped youngsters but with other youngsters as well.
Senator Rawson asked regarding Tourette's Syndrome which is not covered in the school system and is not mentioned as a disability in S.B. 153. He stated this is an affliction where children will form a feedback loop starting with what appears to be a nervous habit or a language pattern. It is sensationalized where children will make animal noises or will constantly repeat a word. There are methodologies that help children get out of this syndrome and become mainstreamed. He asked if this bill will deal with youngsters inflicted with this syndrome.
Wanda Rosenbaum, Concerned Citizen, said Tourette's Syndrome would be covered under "other health impairments." The law itself cannot cover specifically every syndrome and disorder, but in Clark County there is an awareness of some of the problems associated in the classroom with Tourette's Syndrome from some of the advocacy cases they have dealt with. This is an area she will be certain will be included in the curriculum so that teachers will be aware of how to recognize and deal with the problem. She added this is another reason why it is necessary for teachers to receive at least 3 semester hours of training since they are often the first person to become aware of a difficulty such as Tourette's Syndrome.
Ms. Rosenbaum wished to state that most of the recommendations and the action plan steps to correct the deficiencies that have occurred in special education in Nevada are through teacher training. At the present time, one semester hour is what teachers now receive in special training, and this is not mandated any longer.
Senator Raggio asked if additional changes are being suggested to section 12 of S.B. 153, and noted the bill does suggest required courses of study amounting to no less than 3 semester hours.
Ms. Cegavske referred to Exhibit D and reviewed the suggested changes with the committee.
Senator Rawson said this is difficult language for everyone to agree on. He stated the bill suggests training for teachers be a serious curriculum at a college or university level.
Senator Raggio asked if the training is not in a college or university, what would the bill accommodate in terms of the types of courses and where these courses would be taught.
Senator Rawson answered a 3-semester hour course in a university would be 45 hours of instruction. S.B. 153 would indicate that you cannot have a 3-hour class in an afternoon and it would be over. The training would have to be a 3-semester hour course with 45 hours of instruction in a college or university or someplace with an equal curriculum or better.
Dr. Paslov interjected the training in the school districts would be held in what are known as professional development centers.
Ms. Cegavske continued with her review of Exhibit D, and through discussion with the committee members, it was determined the proposed changes would replace subsections 1 and 2 of section 12 of the bill.
Senator Raggio asked if S.B. 153 is enacted, would section 12 apply only to those teachers who will now be receiving their certification or does it apply to all teachers that are presently in the system.
Ms. Cegavske answered, "We are encouraging and want all of the teachers and administrators to take this course. If this bill passes, the universities will make this course mandatory to new teachers coming into the system."
Senator Raggio remarked he does not understand how this bill will apply to those who are presently teaching throughout the state.
Ms. Cegavske said encouragement would be offered to the teachers to take this course.
Senator Raggio commented the wording of the bill states a person who is teaching must possess adequate knowledge. He interprets this to mean existing teachers would be mandated to have this training.
Ms. Rosembaum clarified this does not mean training is mandated for all teachers currently on duty but simply stresses teachers must possess adequate knowledge in specialized areas, and refers to the law itself.
Dr. Paslov agreed that special education law does require background and knowledge in specialized areas as stated by Ms. Rosenbaum, but the law does not now mandate that every teacher must have this training. He added the language of the bill was fashioned to not mandate the training but to strongly suggest it be taken. He said it is up to the local board of trustees to make the assessment as to how much of this training their current teaching staff will require. Dr. Paslov pointed out that subsection 1 when related to subsection 2 of the bill gives the local board of trustees the responsibility for making this training available to their teaching staff.
Senator Raggio said he wanted to make sure the committee agrees the training will not be mandated for all of the existing teachers throughout the state since funding would not be available to do so. He referred to Exhibit D and pointed out that he interprets the proposed subsection 1 as a mandate for existing teachers to receive the training. He feels this needs to be clarified to mandate the
training only for teachers who will be graduating and earning their certificates, whether in special education or otherwise.
Senator Rawson stated he believes the bill was written to have every teacher in the system receive the specialized training. He believes the committee must make a decision as to whether or not time should be given to the school districts to sponsor their own continuing education or self-development courses, or if the committee should simply make it permissive. He believes this is the question before the committee.
Senator Callister agrees that the language of the bill and the proposed amendment as reflected in Exhibit D is confusing. He believes with a few changes it could be made clear that the mandatory expression located in subsection 1 of section 12 could be more clearly directed towards the new teacher, and the permissive language located in subsection 2 of the proposed draft (Exhibit D) could be more clearly articulated and directed towards the existing teacher. He asked for a few days to generate the proper language necessary to process the bill.
Senator Raggio agreed those things can be accommodated with some language changes as suggested. He pointed out the purposes of S.B. 153 are laudable, but caution must prevail so that a fiscal note will not be generated that would be impossible for the state or the local school districts to deal with. He also said he did not want to create an impossible or impractical burden for existing teachers.
Senator Coffin referenced section 25 that permits available federal funds to be spent by the University of Nevada System. He asked if the state boards or other districts could also be eligible for funds.
Ms. Cegavske said section 25 was meant to be deleted due to the fiscal impact. She apologized for not suggesting this deletion in the proposed draft.
Senator Rawson said he believes section 25 should be left in the bill, but the language could be straightened out to allow for gifts, grants, and donations.
Senator Raggio noted in the original bill the reference to the required courses and the specification was to the Professional Standards Commission. The language being suggested in the proposed draft (Exhibit D) seems to remove the Professional Standards Commission from the function and asked if that was their intent.
Dr. Paslov said that was the intent. He explained without trying to diminish the role of the commission, the decisions for training should be left up to the local board of trustees since it would involve professional training consistent with local board responsibilities and a licensing issue is not involved.
Senator Glomb asked if teachers pay for their own training.
Dr. Paslov replied when the training is done at the university level usually the teacher pays for his or her training. When it is done under the auspices of professional development in the local school districts, they usually do not. It would then be paid from local district funds or from some of the federal programs sponsoring these activities.
Ms. Rosembaum wished to include for the record Exhibit E, her
written testimony which she read to the committee.
Carolyne W. Edwards, Legislative Representative, Clark County School District, testified in support of the passage of S.B. 153. She testified this bill reflects the active participation of parents and the legislature in creating legislation to assist the school districts throughout the State of Nevada.
Ms. Edwards asked that Exhibit F, a letter from the Clark County School District dated May 21, 1993, in support of the changes to section 12 of S.B. 153, be included for the record.
Lindsey Jydstrup, Representative, Nevada State Education Association, wished to echo her support of S.B. 153. She stated the goal of the Nevada State Education Association is to provide better training for teachers to assist them in dealing with children with special needs.
Sandi Coil, Concerned Citizen, stated she lives in Douglas County and wished to voice her support of the passage of S.B. 153. She explained she has a son who has learning disabilities that were not severe enough to qualify him for special services and her son is now a school dropout. She feels it is very important that teachers be trained to identify children who may require sensitive handling in order that they can offer students with special needs a chance for a better or more complete education.
Jeannie Simons, Concerned Citizen, testified she lives in Carson City and is the mother of two sons who are attending school in the Carson City School District. She voiced her complete support of the passage of S.B. 153 for teacher training to prevent school dropouts. She does not feel it should be mandated that teachers take the course but feels if the money and support were provided more teachers would take the training to help them have a better classroom environment.
Senator Raggio closed the hearing on S.B. 153. He reiterated that the language in section 25 should be changed to allow any part of the system to use gifts, grants, and donations.
Senator Raggio opened the hearing for discussion on Senate Bill (S.B.) 159.
SENATE BILL 159: Requires state board of examiners to evaluate contracts it approves.
Judy Matteucci, Director, Department of Administration, distributed Exhibit G to the committee referencing changes to section 8 of S.B. 159. She stated the committee had asked the Budget Division to draft language that would not require a fiscal note but would track some of the language that was included in the original bill. Ms. Matteucci pointed out Exhibit G contains the language that would not require additional staff for review of contracts, and replaces lines 36 through 40.
SENATOR O'DONNELL MOVED TO AMEND AND DO PASS S.B. 159.
SENATOR RAWSON SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
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Senator Raggio opened the hearing for discussion of Senate Bill (S.B.) 220.
SENATE BILL 220: Increases licensing fees for motor vehicle manufacturers, distributors, dealers, rebuilders and lessors.
Senator O'Donnell stated it may not be necessary to impose the additional licensing fee but requested that action on this bill be held pending further review.
Senator Raggio closed the hearing on S.B. 220 and opened the hearing for discussion on Senate Bill (S.B.) 299.
SENATE BILL 299: Makes appropriation to School of Medicine of University of Nevada System.
Senator Glomb stated S.B. 299 was held in a joint meeting with the Assembly Committee on Ways and Means due to a budget issue. She requested the bill be held pending further review.
Senator Raggio closed the hearing on S.B. 299 and opened the hearing for discussion on Senate Bill (S.B.) 335.
SENATE BILL 335: Extends date of reversion of certain money appropriated last session to department of taxation.
SENATOR COFFIN MOVED TO DO PASS S.B. 335.
SENATOR GLOMB SECONDED THE MOTION.
Senator Rawson asked if the Budget Division was counting on the reversion for budget purposes.
Ms. Matteucci replied the budget was planned without consideration of the reversion, and nothing will have to be added to the budget if S.B. 335 is passed.
THE MOTION CARRIED UNANIMOUSLY.
* * * * *
Senator Raggio opened the hearing for discussion on Senate Bill (S.B.) 422.
SENATE BILL 422: Increases license fees for real estate brokers, broker-salesmen and salesmen.
Senator O'Donnell disclosed he is a real estate broker and the passage of this bill will increase his fees and expenses.
Senator O'Donnell recently had a meeting with a group of realtors who felt that to place this money back into the General Fund without appropriate expenditure into the Real Estate Administration was inappropriate. After working with Bob Guernsey, Principal Deputy Fiscal Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, some positions were identified that had been eliminated from the budget. The extension of the license fee provided the funds necessary to reestablish these positions. He stated an accountant position can be retained and a microcomputer specialist can be restored to the budget for the Real Estate
Administration upon passage of S.B. 422.
Senator O'Donnell pointed out that the realtors were not in favor of an increase in license fees only to place additional funds in the General Fund. However, they agreed to the increase in fees to
permit the retention of these positions in the Real Estate
Administration budget account.
Senator Glomb asked how much additional revenue would be generated from the increase in license fees, and Ms. Matteucci replied, "About $449,000."
Senator Glomb stated, "I hardly think this amount, on the backs of the realtors, will balance the budget."
Senator Raggio requested that S.B.422 be held pending action on the budget and opened the hearing for discussion on Assembly Bill (A.B.) 316 at the request of Ms. Matteucci who stated there are budgets that are in deficit in salary categories because of overtime payments.
ASSEMBLY BILL 316: Makes appropriations to state board of examiners for settlement of claim on behalf of certain state employees.
Senator Coffin remarked the appropriations included the sum of approximately $100,000 for an overtime payment for one member of the State Gaming Control Board. He asked what is that member's annual salary.
Ms. Matteucci responded, "Approximately $80,000 per annum." She stated the overtime was for more than a 1-year period and included all of the overtime that individual had worked as well as other members of the State Gaming Control Board that were previously not allowed to accumulate overtime because of an 80-hour restriction that was negated by the courts.
Senator Coffin asked if anybody had been able to determine if this member had spent that much time in a state-owned building working on state-related business.
Ms. Matteucci responded she was a little foggy regarding the particulars, but this member had kept written records of the time he had worked for which he requested overtime pay.
Senator Coffin asked if the members of the State Gaming Control Board are paid by the hour when they are in travel status.
Ms. Matteucci replied according to the Fair Labor Standards Act (FLSA) all of the State Gaming Control Board members are entitled to time and-a-half for any overtime worked in excess of 40 hours in a week.
Senator Coffin asked if that would include flying time, and Ms. Matteucci stated she believed this particular member did show overtime including travel and flying time that was in excess of 40 hours in a given week. She explained the members of the State Gaming Control Board are all appointees of the Governor and are not subject to the control of a particular department or agency.
At the request of Senator Raggio Exhibit H pertaining to the issue of overtime expenses and A.B. 316, was distributed to the committee members for their review. This handout was submitted by Ms. Matteucci at the committee's request and contains responses from the State Gaming Control Board, Department of Motor Vehicles and Public Safety, Department of Prisons, Department of Human Resources, and the Department of Wildlife regarding the steps they have taken to control the use and expense of overtime. In addition, Exhibit H contains correspondence from the Department of
Personnel informing state agencies of the option for employees to select a variable work week to curtail the use of compensatory time.
Senator Coffin opined more control should be exercised over what an agency has determined is ordinary time. He stated the State Gaming Control Board has determined travel time is work time. Senator Coffin feels this could add up to an excessive amount of overtime expense to the state considering that travel time during a weekend is considered at time and a half.
Ms. Matteucci said the problem gets exacerbated due to the definition of overtime per the FLSA that overrides determinations regarding overtime made by the individual department or agency.
Senator Raggio stated before action can be taken on a bill involving the personnel system, the committee should review Exhibit H in detail. He noted that the report from the chairman of the State Gaming Control Board does not refer to board members since they are not under his control.
Exhibit I, a memorandum from Ms. Matteucci dated April 15, 1993, regarding the Benzler v. State of Nevada overtime supplement was distributed to the committee. Ms. Matteucci outlined a proposed amendment to A.B. 316 as reflected in this handout.
Senator Glomb asked what will occur if A.B. 316 is not processed.
Ms. Matteucci replied:
If you don't pass the bill you are going to have agencies that will not be able to stay whole, and they will have to make rapid adjustments in order to keep their budgets balanced. They have made the payments because that was the settlement...it isn't one of the more optional things that we had to do....We had to make the payments.
SENATOR COFFIN MOVED TO AMEND AND DO PASS A.B. 316.
Senator Rawson asked if the decision regarding the payment of overtime had been appealed.
Ms. Matteucci replied the Office of the Attorney General received a strong indication that an appeal would be fruitless, and through the settlement they waived an appeal.
Ms. Matteucci reiterated the passage of A.B. 316 is critical since the State Board of Examiners had already approved the settlement of overtime and payments have already been made for half of the overtime due, which will cause shortages to many salary categories in the budget.
SENATOR RAWSON SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
* * * * *
Mansion Maintenance - Page 5
Senator Jacobsen reported on the painting and repairs that are necessary for the Governor's mansion. He recommends that $15,000 be allocated for painting and repair costs and $800 for the purchase of a new dishwasher for a total of $15,800.
Senator Raggio asked if this would be an augmentation to the budget, and Senator Jacobsen replied in the affirmative.
Senator Rawson believes a study should be made to evaluate the possibility of a new design and a new mansion or the cost of bringing the existing mansion to code for fire, heat and other safety control situations.
SENATOR JACOBSEN MOVED TO AMEND THE BUDGET BY THE ADDITION OF $15,800 FOR PAINT, REPAIRS, AND THE PURCHASE OF A DISHWASHER.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
* * * * *
State Printing Office - Page 214
Dan Miles, Fiscal Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, stated the only recommendation is an addition to the General Fund Repayment category of $16,700 which represents the division's budgeted amount for advanced planning work by the State Public Works Board for a future addition to the printing plant. The adjustment will reimburse the General Fund for advance planning budgeted on behalf of the State Printing Office.
SENATOR GLOMB MOVED TO APPROVE THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS FOR THE REPAYMENT AS REFLECTED ON BUDGET PAGE 214 OF EXHIBIT J.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
* * * * *
Printing Office Equipment Purchase - Page 218
Mr. Miles said the reserve amount of $406,814 in fiscal year 1994, should be carried forward in its entirety to fiscal year 1995. The difference between the $406,814 and the recommended balance forward of $379,966 is $26,848.
Mr. Miles drew the committee's attention to a memorandum from the state printer on page 4 of Exhibit J, budget closing action report, in which he requested approval for the purchase of a Whitacre High-Speed, 2-Color, Perfecting Press, in the amount of $105,000. This purchase was not recommended by the Governor.
Senator Coffin pointed out the division may have to hire an additional person to run this press. He noted after 2 years the press would pay for itself but believes there would be a continuing labor cost involved.
Senator Raggio said there are no assurances that with the press the division would not spend money in an outside printing shop anyway.
SENATOR O'DONNELL MOVED TO ADJUST THE BALANCE FORWARD FOR FISCAL YEAR 1995 AND ADJUST THE RESERVE IN THE AMOUNT OF $26,848 FOR FISCAL YEAR 1995 AS SHOWN ON BUDGET PAGE 218
OF EXHIBIT J.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
* * * * *
Records Management - Micrographic - Page 220
SENATOR O'DONNELL MOVED TO CLOSE THE BUDGET AS RECOMMENDED BY THE GOVERNOR.
SENATOR GLOMB SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
* * * * *
Motor Pool - Page 228
SENATOR O'DONNELL MOVED TO ADOPT THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS AS REFLECTED ON BUDGET PAGE 228 OF EXHIBIT J.
SENATOR JACOBSEN SECONDED THE MOTION.
Senator Coffin stated at the request of Senator Raggio he reviewed the cost for the purchase of cellular telephones versus the cost for the purchase of radios for the division. It was going to be his recommendation that the State Motor Pool should make their choice but stay within the cost they projected for their budget until he read an audit report performed on the agency. He stated this audit was one of the worst he had read. He noted there were very loose controls, and if the division will be using the telephone excessively, there ought to be controls set up for this process to keep them within their budget costs. He agrees the budget should be adopted as moved by Senator O'Donnell but recommends the committee review the audit report.
Senator Raggio asked the Audit subcommittee to review the aforementioned audit and report their comments to the committee.
THE MOTION CARRIED UNANIMOUSLY.
* * * * *
Public Service Commission - Page 331
In their original budget, Mr. Miles said the Public Service Commission (PSC) closed their budget to offset $97,000 of costs associated with transportation enforcement by charging that to their Administrative Fines budget. They neglected to reduce those costs out of this particular budget which will now require a $97,000 decrease to be channeled to the PSC's Administrative Fines budget on page 337.
SENATOR RAWSON MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS AS REFLECTED ON BUDGET PAGE 331, EXHIBIT J.
SENATOR COFFIN SECONDED THE MOTION .
THE MOTION CARRIED UNANIMOUSLY.
* * * * *
Public Service Commission - Administrative Fines - Page 337.
SENATOR GLOMB MOVED TO CLOSE THE BUDGET AS RECOMMENDED BY THE GOVERNOR.
SENATOR O'DONNELL SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
* * * * *
Commission for Hospital Benefits - Page 361
Senator Raggio asked that this budget be held pending receipt of additional information.
Real Estate Administration - Page 404
Mr. Guernsey stated there are a number of adjustments, one of which is not reflected on the budget closing action sheet on page 11 of Exhibit J that was mentioned by Senator O'Donnell during his discussion of S.B. 422 pertaining to the restoration of the microcomputer and accountant positions. He stated once a report is received from the Data Processing subcommittee, the microcomputer position will be restored and the Electronic Data Processing (EDP) programming charges associated with partial costs of that position will be deleted. In addition Mr. Guernsey said it is recommended that the accountant position be restored. He referred the committee to paragraph 1 on page 11 of Exhibit J that pertains to the accountant position which he said is a critical position for the administration.
Based upon the actions by the committee earlier regarding the additional revenue that will be coming into this budget from increased license fees charged to realtors, Mr.Guernsey stated the offset of the accountant position should come from an increase in the General Fund appropriation rather than from vacancy savings. This would amount to an additional $36,640 for fiscal year 1994 and $46,505 for fiscal year 1995 which would be in addition to the $5,078 reflected for fiscal year 1994 and $11,434 reflected for fiscal year 1995.
SENATOR COFFIN MOVED TO ADJUST THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS REFLECTED ON BUDGET PAGE 404 OF EXHIBIT J AND THE ADDITION OF GENERAL FUND REVENUE IN LIEU OF VACANCY SAVINGS FOR THE ACCOUNTANT POSITION .
SENATOR JACOBSEN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR O'DONNELL ABSTAINED FROM THE VOTE.)
* * * * *
Senator Raggio reopened the hearing for a vote on S.B 422.
SENATOR COFFIN MOVED TO DO PASS S.B. 422.
THE MOTION WAS SECONDED BY SENATOR JACOBSEN.
THE MOTION CARRIED. (SENATOR O'DONNELL ABSTAINED FROM THE VOTE.)
* * * * *
Senator Coffin wished to voice his opinion that it might be worthwhile to look at all the regulatory agencies that are self-funded but, in fact, are subsidizing the General Fund through licensing fees such as those assessed by the Real Estate Administration.
Ms. Matteucci stated:
The reason you do not normally run these budgets on fees is because they are sporadic and you would have cash flow problems. When the Real Estate Administration ran their budget based upon fees and they asked to be run on
General Fund revenues...the same thing with insurance licenses. I understand your concerns about increasing fees...when they are in the General Fund and you have to balance the General Fund...everybody had to make cuts during the last interim and there was not too much opportunity to do anything different for those that were supported as a regulatory function compared to those that were providing services to the mentally ill....
Senator Coffin commented those that are regulated and are paying a fee frequently do not understand that the fees are spent for things that are not considered to have anything to do with the regulation. He believes there should be some correlation between fees paid and the regulation given.
Ms. Matteucci said, "You do that and you remove your flexibility, and you remove the Governor's responsibility, but I do understand your concerns."
Lot Rent Subsidy - Page 423
Mr. Guernsey said this budget was established as a result of the passage of legislation by the 1991 legislature which created this trust account. Distributions from the trust fund for low-income owners of mobile homes will become effective July 1, 1993. The administrator of the Manufactured Housing Division requested a possible letter of intent that would allow them to come before the Interim Finance Committee (IFC) to possibly transfer funds from their Reserve account to Other Expenditures account. He referred the committee to the memorandum from the administrator of the Manufactured Housing Division on page 13 of Exhibit J.
Senator Coffin recalled this budget had previously been held because he had raised the issue as to whether or not the funds projected per recipient would be adequate based upon the gross amount of money in the funds. He believes as word gets out about the availability of this subsidy, this fund will run out of money well before the end of the biennium. He had asked the administrator of the Manufactured Housing Division to research this to determine how many people would be eligible, but they have not done this to date. He explained what usually happens in subsidy programs such as this is the legislature usually gets blamed by individuals who have applied for a subsidy due to the passage of a bill but cannot get the money because the funds have run out.
Mr. Guernsey said unfortunately the administrator made a determination to base the subsidy payments on a first-come first-serve basis rather than prorating the distribution according to the total number of individuals who will make application for the subsidy. He added that the division has already proceeded with the
process in this manner because she felt very strongly that it should be on a first-come first-serve basis.
Senator Coffin said the statute enabling this did not set up a specific amount per person; the agency had done this. He said at this point, the committee should try to remember that this will probably resurface and an adjustment will have to be done.
SENATOR O'DONNELL MOVED TO CLOSE THE BUDGET AS RECOMMENDED BY THE GOVERNOR WITH THE INCLUSION OF THE LETTER OF INTENT FOR AUTHORIZATION TO USE THE RESERVE ACCOUNT IF NECESSARY AND AVAILABLE.
SENATOR GLOMB SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
* * * * *
Senator Raggio welcomed to the committee a group of Australian visitors that are in Nevada during a tour of the United States. He stated this is a group of young political individuals of various parties and various involvement in the Australian governmental system, including members of Parliament.
Housing - Page 441
Mr. Guernsey referred the committee to a separate closing action sheet for this budget, Exhibit K, and outlined the suggested closing actions for the committee which included the restoration of the Deputy Administrator position for the Housing Division. He pointed out that the closing action by the Assembly Committee on Ways and Means will differ slightly in reference to the half-time deputy commissioner which is reflected half-time in the budget for the Consumer Affairs Division. The assembly took the senate's initial closing actions and made some modifications. The budget closing action (Exhibit K) recommends increasing the deputy for the Department of Commerce from a half-time position to a three-quarter position.
In order to clarify a question by Senator Raggio regarding the positions, Mr. Guernsey said the deputy administrator is the deputy administrator for the Housing Division whereas the deputy director is the deputy for the former Department of Commerce which is now the new Department of Business and Industry.
SENATOR GLOMB MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS FOR BUDGET PAGE 441, EXHIBIT K.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
* * * * *
Low Income Housing Trust Fund - Page 447
SENATOR RAWSON MOVED TO CLOSE THE BUDGET AS RECOMMENDED BY THE GOVERNOR.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
* * * * *
Senator Raggio adjourned the meeting at 10:50 a.m.
RESPECTFULLY SUBMITTED:
Marion Entrekin,
Committee Secretary
APPROVED BY:
Senator William J. Raggio, Chairman
DATE:
??
Senate Committee on Finance
May 24, 1993
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