MINUTES OF THE
SENATE COMMITTEE ON FINANCE
Sixty-seventh Session
June 15, 1993
The Senate Committee on Finance was called to order by Chairman William J. Raggio, at 8:45 a.m., on Tuesday, June 15, 1993, in Room 223 of the Legislative Building, Carson City, Nevada. Exhibit A is the Meeting Agenda. Exhibit B is the Attendance Roster.
COMMITTEE MEMBERS PRESENT:
Senator William J. Raggio, Chairman
Senator Raymond D. Rawson, Vice Chairman
Senator Lawrence E. Jacobsen
Senator Bob Coffin
Senator Diana M. Glomb
Senator William R. O'Donnell
COMMITTEE MEMBERS ABSENT:
Senator Matthew Q. Callister, Excused
STAFF MEMBERS PRESENT:
Daniel G. Miles, Fiscal Analyst
Robert Guernsey, Principal Deputy Fiscal Analyst
Judy Jacobs, Committee Secretary
OTHERS PRESENT:
Judy Matteucci, Director, Department of Administration
Senator Raggio asked the committee to review 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 Raggio said he had a note that the committee decided to delete sections 2 and 3 and the word "exploited" anywhere it occurs on page 3.
SENATOR GLOMB MOVED TO AMEND AND DO PASS S.B. 471 WITH THE CHANGES STATED.
SENATOR COFFIN SECONDED THE MOTION.
Senator Coffin asked Senator Glomb to explain the purpose of the bill. Senator Glomb explained it would appoint a children's advocate in the Office of the Attorney General to work with the missing children's director. She said the office would be tied into a national network of clearinghouses in most states.
THE MOTION CARRIED. (SENATOR CALLISTER WAS ABSENT FOR THE VOTE.)
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Senator Raggio asked the committee to go over a number of budgets prior to a joint meeting with the Assembly Committee on Ways and Means. He called attention to the closing sheet representing differences between the actions taken by the Senate Committee on Finance and the Assembly Committee on Ways and Means. He said the staff had come up with some preliminary recommendations. He asked any committee member who had some concern over the recommendations to please advise the chair as each budget was reviewed.
Mansion Maintenance - Page 5
Senator Raggio recalled the painting had already been included in the Capital Improvement Project (CIP) budget so the recommendation would be to concur with the assembly.
Office of the Attorney General - Page 17
Special Litigation Account - Page 28
Senator Raggio suggested holding both budgets. He recalled the senate had added an account clerk position and had taken action on telemarketing.
Senator Raggio asked the committee to take one formal action before continuing. He asked the committee to look at the employment security budget.
Employment Security - Page 1074
Senator Raggio said the closing sheet (Exhibit C. Original is on file in the Research Library.) represents the action taken by the committee in reference to taxation. He asked if there were any changes included other than those recommended through the audit.
Daniel G. Miles, Fiscal Analyst, responded:
It does several things. It unbundles the data processing piece, which is the first page and half of the second page. Then it makes the changes that correspond with the closing of the tax audit teams over in the Department of Taxation. On the third page it reverses reorganization savings and calls it vacancy savings, eliminates the purchasing assessment, and adds that data processing planning assessment which is consistent with all of your other closing actions.
Senator Raggio offered the opinion it was also consistent with the action of the ways and means committee.
SENATOR COFFIN MOVED TO CLOSE THE EMPLOYMENT SECURITY BUDGET WITH THE ADJUSTMENTS INDICATED ON THE CLOSING SHEET WHICH ARE CONSISTENT WITH ACTION TAKEN ON THE DEPARTMENT OF TAXATION.
SENATOR RAWSON SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR CALLISTER WAS ABSENT FOR THE VOTE.)
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Employment Security Special Fund - Page 1081
Mr. Miles said the last page of the closing sheet (Exhibit C) was a copy of the closing sheet from the Assembly Committee on Ways and Means. He said:
On your actions on the Department of Taxation you also took some of the audit coverage from the penalties and interest account and this is the closing action that will be required to bring it into synch [synchronization] with your closings of the Department of Taxation.
Mr. Miles explained there had been a Transfer to Taxation of $160,000 in fiscal year (FY) 1994 and $222,000 in FY 1995 with appropriate adjustments to the reserve. That would bring the budget action into conformity with that of the Assembly Committee on Ways and Means.
SENATOR COFFIN MOVED TO ADJUST THE BUDGET FOR THE EMPLOYMENT SECURITY SPECIAL FUND.
SENATOR GLOMB SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR CALLISTER WAS ABSENT FOR THE VOTE.
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University of Nevada Administration - Page 115
University Press - Page 122
Senator Raggio reported the recommendation had been to concur with the assembly regarding the administration. Because the assembly added some discretionary funds the committee decided to hold the press budget until further review regarding a southern Nevada position.
W.I.C.H.E. Administration - Page 172
W.I.C.H.E. Loan Fund - Page 176
Senator Raggio said staff had proposed that the Senate Committee on Finance concur with both changes made by the Assembly Committee on Ways and Means.
Self-Insurance Fund - Page 192
Senator Raggio noted the assembly had added a data processing contract service and the senate had adjusted some insurance premiums. Because there would not be a great deal of difference, he said the staff had recommended concurrence with the data processing item but that the matter of the adjusting insurance premium be held.
Senior Citizen's Property Tax Assistance - Page 212
Senator Raggio proposed agreement with the assembly to bring the budget up to the level that would guarantee rebates at 80 percent.
Printing Office Equipment - Page 214
Senator Raggio suggested holding the budget in order to resolve a technical problem.
Public Works Inspection Section - Page 287
Senator Raggio explained the cost of mothballing the correctional center at Lovelock would amount to approximately $1.2 million over the biennium. The cost would be included in the budget according to action taken by the assembly. He asked if that was the correct amount.
Judy Matteucci, Director, Department of Administration, responded the money would be available out of bonding funds. She acknowledged it would still have to be included in the budget. She explained the State Public Works Board would administer the closure.
Senator Raggio noted the inspection costs would be separate from the administration costs.
Mr. Miles called attention to a small change in training funding proposed by the assembly.
Senator Coffin asked if the assembly had reduced the General Fund appropriations. Mr. Miles agreed it was reduced but it was picked up again in the next budget.
Administration-Buildings and Grounds - Page 294
Senator Raggio noted the only differences had been the inclusion of one position for Mike Meizel, Administrator, Buildings and Grounds Division, and an adjustment in vacancy savings. He indicated there was one difference in the Transfer to Capitol Police because the senate had made a couple of cuts in the Capitol Police budget.
Senator Raggio suggested the budget be held.
Victims of Crime - Page 315
Senator Raggio stated the assembly had made an adjustment in the Court Assessment. He proposed accepting their adjustment on that budget.
Self-Insured Workers' Compensation - Page 355
Senator Raggio said he did not believe there was a difference between senate and assembly actions. Mr. Miles agreed there was no difference.
Administration - Real Estate - Page 404
Senator Raggio described the differences as minor ones involving state rent and some savings. He felt the two committees could concur with each other.
Consumer Affairs Division - Page 428
Mr. Miles said the two committees were basically in agreement. He explained the only difference was where the deputy director position would reside and the senate had decided to go along with the assembly to put it into the business and industry account. Senator Raggio concluded the senate should concur with the assembly.
Telemarketing - Page 433
Mr. Miles said there was a difference on computer costs. Senator Raggio recalled the committee had reduced the computer costs. He pointed out the committee failed to include in the letter of intent a request for a quarterly report from the attorney general and the consumer affairs unit on the effort being made to resolve telemarketing complaints. He suggested the committee hold on the budget until that action could be taken.
Energy Conservation - Page 437
Nevada Attorney for Injured Worker - Page 455
Mr. Miles explained the Assembly Committee on Ways and Means had attempted to save one business-associate position in the small business budget. He said, "When they did that the transfer comes from the Energy Conservation budget." He said the Senate Committee on Finance had gone along with the revised recommendation by the Governor.
Senator Raggio recommended that the committee go along with the assembly action on both actions. He noted it would even out.
Committee on Secondary Education - Page 580
Senator Raggio acknowledged the difference in actions taken by the senate and assembly was minor but felt the budget should be held.
Economic Development - Page 588
Senator Raggio concluded the assembly had added $30,000 each year for Rural Nevada Grants rather than process a bill to that affect. The assembly also added a senior marketing position. The committee agreed they would be willing to go along with the assembly.
Film Division - Page 593
Mr. Miles noted the assembly had added advertising revenue. Senator Raggio recalled an extensive discussion regarding the contract location scouting. He said the senate had added a half-time position and then the assembly had added revenue from advertising. He stated there should be a letter of intent that the contract funds should be authorized only if the funds are generated from advertising in order to be consistent with the assembly.
Senator Coffin expressed agreement the senate should go along with the action taken by the assembly.
Health Resources Cost Review - Page 619
Mr. Miles indicated it would only require a technical amendment to reduce the authority for penalty revenue and penalty payments because there had been so little activity.
Senator Raggio decided the matter should be held.
Education Administration - Page 637
Mr. Miles explained the Assembly Committee on Ways and Means had restored a Library Consultant while the Senate Committee on Finance had restored a Management Assistant II and used money from dues to national organizations to pay for the assistant.
Senator Raggio recalled the committee had come to a conclusion on the budget. Senator Rawson recommended holding the budget as far as the dues. Senator Raggio indicated a preference to hold the entire budget.
Distributive School Account - Page 642
Senator Raggio asked the committee members if they were ready to take action on the measure. The committee agreed to hold the budget temporarily.
Southern Nevada Adult Mental Health Services - Page 721
Mr. Miles pointed out the differences related to two positions that had been transferred to Lake's Crossing Center for the Mentally Disordered Offender. He said the assembly had taken the funding from one position from this budget and moved it to the Lake's Crossing budget.
Mr. Miles called attention to the line item to lease a copy machine rather than purchase it.
The committee agreed to concur with the assembly.
Nevada Mental Health Institute - Page 734
Mr. Miles pointed out if the services are privatized the budget would combine the cost of the positions included. He said the Assembly Committee on Ways and Means had listed each of the positions that would be removed.
Senator Rawson explained the budget applied to an expensive complex in Sparks. He suggested approval of the budget, but he proposed adding a letter of intent to give the authority to contract out the service. Senator Raggio questioned whether a letter of intent would suffice.
Senator Rawson proposed the committee give authority to enter into a contract for care services and report to the Interim Finance Committee (IFC). He estimated only 42 or 44 client positions would be affected. He asserted the building was not up to code as far as a fire alarm system and had some other problems.
Senator Coffin asked if Senator Rawson was suggesting a major change through removal of all the positions listed. Senator Rawson replied the positions were in the process of being phased out so only 42 or 44 people would be left.
Robert Guernsey, Principal Deputy Fiscal Analyst, explained the budget deals with the privatization of the food operation. He said the institute consists of 27 buildings from which several agencies operate. He enumerated some of the agencies, including the Nevada Area Substance Abuse Council, Children's Behavioral Services that occupies two buildings, and Sierra Developmental Center in several buildings. He added there are several outpatient and day-care services provided in addition to limited inpatient services. He described it as including an array of services. He explained the main cuts were made in inpatient services.
Senator Raggio asked for an explanation of the difference in action taken by the senate and the assembly. Mr. Miles responded the senate had gone along with the Governor's recommendation while the assembly had deleted the positions.
Mr. Guernsey explained the assembly had calculated the cost of the 18 positions recommended for reduction by the senate. He said they had also reduced the amount of canteen revenue. He said the senate had provided for the canteen to continue on a limited basis but a determination had been made to close the canteen after the Senate Committee on Finance had already closed the budget.
Senator Rawson proposed the committee concur with the assembly regarding food service. Senator Raggio pointed out that was already done. Mr. Guernsey concurred saying there was only a slight difference in the dollar amounts.
Lake's Crossing - Mental Offender - Page 744
Senator Rawson asked if the budget would have to be adjusted for Lake's Crossing. Mr. Guernsey said a couple of minor adjustments would be required. He explained once the positions were transferred from the Las Vegas Mental Health Center to Lake's Crossing the revenue should follow. He said there would be some slight food adjustments.
Senator Glomb asked for clarification.
Senator Rawson repeated his suggestion that authority be given to the Nevada Mental Health Institute to develop a plan to privatize their services and to go before IFC for supervision. He asserted there are private beds available in the Reno area and the facility is deteriorating. He felt it would result in a savings.
Mr. Guernsey indicated he felt that would take some study because of the amount involved. He said it would not just apply to the 40-plus beds because services are provided out of the main institute budget to a wide variety of agencies that operate out of Lake's Crossing, including the Department of Wildlife and the Nevada Equal Rights Commission and other nonprofit agencies. He said there is a cooperative arrangement with children's programs that occupy a number of buildings on the grounds.
Mr. Guernsey added the Sierra Developmental Center also utilizes a number of buildings for day-treatment programs including the gymnasium. He agreed the concept has some merit but it may take a lot of study because the agencies are so "intermixed."
Senator Rawson proposed the authority be given for a study. Mr. Guernsey suggested some control be exercised. He suggested closing the budget in accordance with the assembly but with the added recommendation.
Ms. Matteucci interjected the beds are no longer available and they have been purchased by a private company. She felt the option had passed by. She concurred a letter of intent proposing an interim study would be appropriate.
Senator Glomb pointed out the subcommittee had recommended opening a satellite clinic for the Southern Nevada Mental Health Clinic. She asked if that was included in the budget. Mr. Miles replied it was included.
Mr. Guernsey said it had been agreed upon by both sides but there was one difference of $5,000 under equipment for a copy machine as set forth on page 721.
Rural Clinics - Page 750
Mr. Miles said the assembly had proposed moving the telephone system instead of purchasing new telephones so they had deducted $9,500. Senator Raggio indicated the committee should go along with their action.
Bureau of Laboratory and Research - Page 818
Senator Raggio declared the major difference had been to add some laboratory charges. He suggested holding the budget for the time being.
Administration - Welfare Division - Page 865
Mr. Miles explained the only difference is for the Medicaid Management Information System (MMIS) project in the second year. Senator Rawson explained there was no way to know when they would be ready for the project. He suggested giving the division the authority to go to IFC. Senator Glomb declared funding for the program is very important.
Senator Raggio concluded the assembly should concur with the senate on the proposal.
Petroleum Rebate - Page 914
Senator Raggio proposed accepting the assembly position on the budget.
Children, Youth and Family Division - Page 938
Youth Community Services - Page 945
Mr. Miles suggested looking at both budgets at once. He said the senate had added $10,000 per year for the medical services for emancipated youth and foster care children. The assembly had not agreed. He said a new recommendation had been made for the senate to delete the transaction from the Children, Youth and Family Division budget and all the transactions would take place in the Youth Community Services budget. It would still include the medical care for emancipated youth.
Senator Raggio recalled inclusion of medical funds for emancipated youth had been the main concern. He suggested the Senate Committee on Finance should insist that a new proposal be included to accommodate the $10,000 in medical care for emancipated youth in the Youth Community Services budget.
Southern Nevada Child and Adolescent Services - Page 966
Senator Raggio pointed out the assembly had added the Pathway program and suggested the senate concur. Senator Rawson voiced agreement.
Administration - Employment Security - Page 1074
Senator Raggio reminded the committee they had decided to close in the same manner as the assembly.
Verification of Insurance - Page 1346
Senator O'Donnell said he was not sure the actions of the assembly could be done constitutionally. He indicated the source of the money was from the highway fund, and he did not believe it could be used for insurance verification.
Mr. Miles interjected Assembly Bill (A.B.) 730 would address the problem and would require any sums over $150,000 that were not expended each year to revert to the highway fund.
ASSEMBLY BILL 730: Revises provisions governing account for verification of insurance.
Senator O'Donnell pointed out additional data processing would be required for insurance verification which would cost about $800,000. He said if A.B. 730 is passed there would not be enough money to do the data processing work.
Senator Raggio agreed to hold the budget for the moment.
Highway Patrol Special Fund - Page 1390
Senator Raggio said there was some concern about the existence of the internal affairs unit. He suggested a solution would be to restore the positions. He said the major concern of the assembly was that the unit had been installed without any authority and that the internal affairs unit was being used with respect to non-sworn personnel. He indicated the assembly would probably concur if the positions were restored. He suggested adding a letter of intent that the unit not be used in violation of personnel policies regarding non-sworn personnel.
Victims of Domestic Violence - Page 950
Senator Glomb asked if the trust account had been moved. Senator Raggio responded the assembly had taken action consistent with a bill passed last session which earmarked the money and it had not been included by the senate. He remarked the senate should go along with the action taken by the assembly.
Senator Raggio stated the only major item not resolved was the Distributive School Account. He said he had asked Senator Rawson to confer with Mr. Joseph E. Dini, Jr., the speaker of the assembly, to accommodate their concerns and those indicated by several spokesmen for education. He asked if Senator Rawson could explain the proposal.
Senator Rawson responded:
They closed it [with] 22 elementary counselors in a special...fund so that they wouldn't be rolled into the DSA [distributive school account]. What that does is it preserves people in particular schools. They've been hired, and if we did that the funds wouldn't be redistributed and spread around the districts.
It's probably fair to the individuals. However, I'd like to follow that with a letter of intent so that the budget office could consider rolling those into the DSA next time. At some point...this is one-shot money every session, and we need to put into it into the formula and have it taken care of. We can't spend the time on it every session.
Senator Glomb asked how the pupil ratio would be affected. Senator Rawson replied it would cause a series of changes and the net result would be to raise it $10 or $15.
Senator Raggio asked the committee to review sheets (Exhibit D) on the DSA outlining the differences in action taken by the two committees.
Senator Rawson called attention to item 5 which would increase health insurance. He said the Assembly Committee on Ways and Means had not increased the health insurance in the first year and had increased it by 6 percent in the second year. He explained that would add money. He suggested the committee could concur on that item.
Pointing to item 6, Senator Rawson declared the committee should adjust the inflationary increase for supplies since the senate had not included anything for it while the assembly had allowed 3 percent. He suggested lowering the assembly increase and adding to the finance proposal. He said he was attempting to remove about $250,000 per year but admitted the second year was going to be difficult to remove funds.
Senator Rawson recommended going along with the assembly in regard to the 50-cent portion of the property tax.
Senator Rawson suggested removing the reduction in number 8, which would add those costs back into the budget.
Another proposal made by Senator Rawson was to deal with number 10 sometime in the future but he suggested ignoring it this biennium. He said the senate had decided to add $1.5 million in each year. He suggested a study during the interim on funding education.
Senator Rawson also suggested ignoring the increase in the 25-cent portion of the property tax. He acknowledged both sides had come to the same conclusion on item 11.
Senator Rawson stated the net effect over the 2 years would be to add $3 million to the senate's action on the DSA. He said that was the proposal he had worked out with Mr. Dini, and he recommended it to the Senate Committee on Finance even though it included more money than had been anticipated. He said it would bring the per-pupil guarantee up to approximately $3,325.
There being no further business before the committee, Senator Raggio adjourned the meeting at 9:50 a.m. in order to join the Assembly Committee on Ways and Means in a joint meeting.
RESPECTFULLY SUBMITTED:
Judy Jacobs,
Committee Secretary
APPROVED BY:
Senator William J. Raggio, Chairman
DATE:
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Senate Committee on Finance
June 15, 1993
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