The Committee on Ways and Means was called to order at 7:30 a.m., on Monday, April 26, 1999. Chairman Morse Arberry Jr. presided in Room 3137 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. Exhibit B is the Guest List. All Exhibits are available and on file at the Research Library of the Legislative Counsel Bureau.

COMMITTEE MEMBERS PRESENT:

Mr. Morse Arberry Jr., Chairman

Mrs. Jan Evans, Vice Chair

Mr. Bob Beers

Mrs. Barbara Cegavske

Mrs. Vonne Chowning

Mrs. Marcia de Braga

Mr. Joseph Dini, Jr.

Ms. Chris Giunchigliani

Mr. Lynn Hettrick

Mr. John Marvel

Mr. David Parks

Mr. Richard Perkins

COMMITTEE MEMBERS ABSENT:

Mr. David Goldwater

Mr. Robert Price

STAFF MEMBERS PRESENT:

Assemblyman David Parks, Assembly District 41, presented the bill. He stated the bill came about as a result of changes that had taken place regarding an increase in stolen vehicles and the amount of apparent organized activity with regard to vehicle theft.

A.B. 458 would put Nevada on the same level as other states adjoining Nevada, specifically Arizona and California. Assemblyman Park introduced Lieutenant Stan Olsen, Las Vegas Metropolitan Police Department. Assemblyman Parks noted auto theft affected everyone through rising insurance costs as thefts occurred.

Lieutenant Olsen stated he was present because a fiscal note was placed on the bill by the Department of Prisons. He stated his understanding that the fiscal note was approximately $500,000. Chairman Arberry replied he believed the fiscal note would be approximately $300,000 when it arrived later in the day.

Lieutenant Olsen provided committee members with statistics from Las Vegas Metro Police Department over the past year concerning auto theft. The total value of stolen autos in the previous year was in excess of $2 million. Statistics for other years were:

1996 – 7,925 auto thefts;

1997 – 9,462 auto thefts; and

1998 – 10,240 auto thefts.

The number of arrests had also increased:

1996 – 1209 arrests;

1997 – 1243 arrests; and

1998 – 1409 arrests.

Lieutenant Olsen emphasized those statistics were for the jurisdiction of Las Vegas Metropolitan Police Department only. While the fiscal note might cost $300,000 to house some of the people arrested and sent to prison, it cost a lot more money not to house them through crimes and collateral costs associated with auto theft.

Assemblywoman Cegavske noted when the Assembly Transportation Committee heard A.B. 458 she had asked a question about the identification numbers auto dealers placed on the vehicles. All the dealers were charging different prices for the service. She also asked if those numbers were registered with the police department or just with the dealer. Lieutenant Olsen replied the vehicle identification number Assemblywoman Cegavske referred to was the same number attached to a vehicle when it was manufactured and that number was placed on different parts of the vehicle. A few years’ previous companies began etching the serial number into glass to make it more difficult for criminals to part out the vehicles when they were stolen. The same number was recorded on the vehicle registration and maintained by the Department of Motor Vehicles and Public Safety. The fact that the vehicle had extra locations for the vehicle identification number did not mean it was registered with the police. It did make it much easier to locate pieces and parts if that became necessary. Dealers used to stamp the duplicate vehicle identification numbers as a courtesy and apparently now they were charging for the service and he had no explanation for why they were charging differently.

Assemblyman Perkins stated as he read A.B. 458 there were things included that were already crimes in other areas. It did contain some new tools for law enforcement. He asked Lieutenant Olsen, from his perspective, to describe for the committee why there would be a fiscal note on the bill and what new crimes were being committed that would cause an increase in the prison population. Many of the issues addressed by the bill were crimes in other categories and the bill seemed to clean up the statutes and provide additional tools to law enforcement. Lieutenant Olsen agreed wholeheartedly. He also expressed surprise that a fiscal note was needed. He noted there would be people who went to prison, but those people generally were going to prison already and he did not see that the bill would increase the number of criminals going to prison.

Seeing no further testimony, Chairman Arberry closed the hearing on A.B. 458 with no action and opened the hearing on A.B. 519.

Dan Coppa, Chairman of the Nevada Juvenile Justice Commission read from prepared testimony (Exhibit C).

Joining Mr. Coppa at the witness table were Leonard Pugh, Washoe County Youth Services and Dan Prince, Clark County Family and Youth Services.

Mr. Coppa testified as a result of the 1997 Legislature the Juvenile Justice Commission received a letter of intent directed to Steve Shaw, Acting Administrator, DCFS. The Joint Committee of Assembly Ways and Means and Senate Finance had closed the budget of the division’s Youth Correction Services (Youth Parole) by recommending that DCFS work together with the Juvenile Justice Commission in the interim to determine if juvenile corrections should be placed within a separate division of the Department of Human Resources. The money committees expressed their desire that a formal recommendation on the issue should be finalized no later than July 1, 1998. As a result of that directive the Juvenile Justice Commission responded on June 30, 1998 with the following (Exhibit C, page 3):

• Greater ability to coordinate and integrate adjunct services within DCFS for Youth Corrections;
• Availability of a greater range of resources;
• Reduction in the duplication of services;
• Centralized leadership and coordination of services for children and their families;
• Ability to take advantage of Federal funds for program initiatives that may not be available to a division focused specifically on corrections such as Title IV-E;
• Reduction of "turf" issues;
• Placement in a separate division would remove Youth Corrections from a division administering services to neglected and abused children who are often the same as those involved in corrections.

Mr. Coppa stated in addition to the recommendation for Youth Corrections to remain within DCFS, the commission recommended that a new position of Deputy Administrator within DCFS be created.

Mr. Coppa summarized the provisions of A.B. 519:

• Created a Deputy Administrator for Youth Corrections for the Division of Child and Family Services;
• Outlined reporting authority for Youth Corrections;
• Eliminated duplicate statutes that related to state training centers;
• Changed usage of terms:

From "runaway" to "escape" from a youth correctional facility

From "schools" to "centers"; and

From "inmates" to "residents."

• Eliminated designation of Bureau Chiefs for superintendents of training centers, children’s homes and childcare licensing;

The advantages of the proposed legislation were:

• The Deputy Administrator for Youth corrections provided program planning, collaboration, continuity, and direction for Youth Corrections;
• Eliminating duplicative statutes that referred to each of the training centers individually;
• Allowing flexibility to the Administrator of the Division of Child and Family Services for the organization of the Division and Youth Corrections;
• Allowing flexibility in work assignments by the Administrator of the Division of Child and Family Services for the remaining deputies; and
• Centralizing contract authority for Youth Corrections.

Mr. Coppa continued to read from Exhibit C.

Leonard Pugh, Director of Washoe County Juvenile Services and President of the Nevada Association of Juvenile Justice Administrators read from prepared testimony (Exhibit D).

Dan Prince stated he was Manager of Spring Mountain Youth Camp and its parole function, which was Clark County’s youth correction facility. He stated on behalf of Director Kirby Burgess he would like to voice their support of A.B. 519. He agreed with the comments of Mr. Coppa and Mr. Pugh. He added, over the last few years as juvenile justice issues had certainly moved to the forefront of concern, an increased amount of both federal and local dollars had been made available to combat juvenile crime, look at prevention issues, deal more effectively with those youth in state and county facilities, and there were a number a groups working on the issues. Mr. Prince stated although Mr. Stephen Shaw, Director, DCFS, made every effort to be a part of those groups for the purposes of planning and implementing statewide juvenile justice policy, he was spread very thin.

Mr. Prince stated the organizations felt very strongly that a dedicated management-level individual who could be in a decision-making position was needed for the discussions and policy efforts.

Assemblywoman Chowning noted she did not have a copy of the fiscal note for the bill referred to in testimony. Chairman Arberry stated there was no fiscal note document but by asking for the Deputy Administrator position, the fiscal note was contained within the bill.

Assemblywoman Evans noted on page 8, line 3, subsection 2 of A.B. 519 that stated "the Deputy Administrator shall appoint a superintendent of each center subject to the approval of the Administrator," and stated typically Administrators made appointments and the bill would seem to change that. Mr. Coppa replied that was correct. The appointment would be made by the Deputy Administrator subject to the approval of the Administrator, which meant the Administrator still played a rather significant roll. Assemblywoman Evans commented it seemed like the bill was adding another layer to the process.

Assemblywoman Evans referred to page 17, line 39, of A.B. 519 stated "the Administrator shall appoint subject to the approval of the Director, a Superintendent of the Northern Nevada Children’s Home and a Superintendent of the Southern Nevada Children’s Home," and asked Mr. Coppa to help committee members understand what the section addressed. Mr. Coppa replied references to children’s homes remained in statute and it would probably be significant if that was deleted. He commented there were no longer any children’s homes in the state of Nevada.

Seeing no further testimony Chairman Arberry closed the hearing on A.B. 519 with no action and temporarily adjourned the meeting at 8:05 a.m to reconvene as the Assembly Ways and Means Committee sitting as the Interim Finance Committee.

The Assembly Committee on Ways and Means reconvened at 8:50 a.m. Chairman Arberry opened the hearing on A.B. 564.

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Dave Emme, Chief, Bureau of Waste Management, Division of Environmental Protection noted they had anticipated a modest additional cost to the agency associated with the bill. The fiscal impact would be caused by a contract to produce some resource materials for public agencies wishing to expand their recycling efforts, and for some travel for workshops around the state.

Chairman Arberry asked Mr. Emme to provide information on the intent of A.B. 564 and what issues the bill would resolve. Assemblyman Kelly Thomas, Assembly District 16, stated the intent of the bill was to match policy to practice when it came to recycling programs in dealing with governmental agencies such as the Legislature, Clark County, or the City of North Las Vegas. He stated there were a few governmental agencies that did not have recycling programs in all their buildings. He commented on the amount of paper products generated and stated the intent was to reach those locations without recycling programs and recycle those products.

Chairman Arberry noted the bill contained a $40,000 fiscal note and asked for an explanation of the need for the funds. Mr. Emme replied the estimate was $36,000 for a contract to develop some informational materials. The bill would require his agency to develop a model plan to carry out the recycling programs, develop minimum standards for recycling programs, and provide significant outreach through additional travel and workshops. Chairman Arberry asked if the fiscal note could be reduced. Mr. Emme replied it could, and the Chair requested the agency to return to the committee with another proposed fiscal note. He stated if the revenues did not cover the fiscal note, the committee needed to know what the agency could live with. Mr. Emme noted that the bill would not cause a revenue increase because the agency was simply requesting an increase in their budget authority. The revenue to support the program was derived from the tire assessment fee, not the General Fund.

Assemblyman Marvel asked if the bill would cause an unfunded mandate for local governments. Mr. Emme replied it could be looked at that way. A.B. 564 required Clark and Washoe Counties to expand their recycling programs to include public buildings.

Assemblyman Marvel asked if Mr. Emme had talked to the counties to ascertain what it would cost those counties to expand their service. Mr. Emme stated he had not. Assemblyman Thomas stated he had talked with all the affected municipalities and there was only one municipality that expressed concern. Clark County was concerned because of the number of buildings under their jurisdiction. North Las Vegas did not have a recycling program in place but planned to utilize their inmate population to make the collections, keeping that jurisdiction from experiencing much of a fiscal impact. He commented it really depended on how people were approached and their measure of creativity in keeping costs down. Assemblyman Marvel stated the cause was very worthy but he was concerned anytime the legislature told local jurisdictions they had to come up with more money. Assemblyman Thomas noted the bill was permissive in the smaller counties and would only mandate Clark and Washoe Counties to comply.

Assemblywoman Chowning referred to A.B. 564, page 7, section 9 where it sounded like each school district would be mandated to recycle which would not be permissive. She asked how the school districts felt about the bill. Assemblyman Thomas stated the bill should read "each school district over 100,000 population." He stated the school districts supported the legislation as long as they had the escape hatch provided in section 9 of the bill. Section 9 allowed the districts to apply to the Board of Trustees to decline from participation in certain areas of the school district. He explained one example was the central food kitchen in the Clark County School District which was going to have a problem and section 9 was included at the request of Clark County School District. Assemblywoman Chowning clarified that the reference to Nevada Revised Statutes, Chapter 386 applied only in counties over 100,000 population. Assemblyman Thomas stated he believed that was correct.

Assemblywoman Chowning stated the tire tax was raising more money all the time. She added her belief that revenues were up to about $2 million annually and she would think there was sufficient funding to support the program without a fiscal note affecting the General Fund. Mr. Emme agreed that with a growing population the revenue from tire sale fees increased annually. He stated the fund was currently at approximately $1.2 million. The fiscal note was simply requesting budgetary authority to move some funds from reserve into contracts, operating and in-state travel.

Assemblyman Parks remarked that Clark County, in its own facilities, did recycle currently. The problem the county had, in his understanding, was that they leased certain facilities and as such the owners of those properties might not have a recycle program.

Seeing no further testimony Chairman Arberry closed the hearing on A.B. 564 with no action and opened the hearing on Senate Bill (S.B.) 277.

Dale Erquiaga, Acting Director, Department of Museums, Libraries and Arts provided committee members with a table explaining the supplemental appropriation request (Exhibit E).

The appropriation in S.B. 277 slightly exceeded $35,000 related to operating costs in the Director’s office, utilities at two museums, and less than projected revenues at those two museums.

Mr. Erquiaga introduced Scott Sisco, Administrative Services Officer for the department.

Mr. Sisco outlined the funding requests in S.B. 277. The request was discussed briefly in the original budget presentation to the committee. Exhibit E detailed the need for funding in each of the four categories. The Executive Budget page Intro-35 included a supplemental appropriation request in the amount of $1,550 for Budget Account 2892, the Director’s Office. During a Senate Finance Committee hearing on March 17, 1999, regarding S.B. 277 an amendment was introduced to include an additional request for three museum facilities that were experiencing revenue shortfalls and/or unanticipated utility expense. During the hearing Perry Comeaux, Director, Department of Administration, expressed concern with the amendment on behalf of the Budget Office.

Budget Account 2892, the Director’s Office contained a request for a supplemental appropriation of $1,550 for utility expenses not included in the FY 1999 work program authority. Mr. Sisco commented for many years the Director served a dual role as both Department Director and the Acting Administrator of the Nevada State Library and Archives (NSLA). The 1997 Legislature provided funding for the NSLA Administrator position to be filled as of January 1999. In addition, that same session provided funding for the Administrative Services Officer position. The addition of the two staff positions resulted in an office space shortage for the Director’s office.

The purchase of the First Interstate Bank building, being remodeled as the Nevada State Museum Annex, included a small house directly behind the bank building. The staff members from the museum remodeled that space for the Director and staff themselves. The space was provided without additional rent costs. An additional cost was incurred in operating utilities in the amount of $1,550.

The remaining requests were added as a result of revenue shortfalls and increased utility expenses. The department was very aware of the state’s overall budget shortfall, and worked closely with each facility director in examining existing expenditure authority that could be cut to reduce the overall effect on the General Fund for the year.

Budget Account 2943, Nevada State Museum and Historical Society in Las Vegas included a revenue line item in the amount of $20,000 for admission charges. At present the revenue line item was only anticipated to raise $9,000 leaving an overall-funding shortfall of $11,000. The budget had a remaining balance of $1,082 carried forward from a FY 1998 Interim Finance Committee (IFC) allocation. An appropriation of $10,000 was requested to meet that shortfall.

The Nevada State Museum, Budget Account 4216 projected utilities to exceed existing authority by $8,942. In addition it was anticipated that admission revenue would also fall short by over $6,600. The department carefully examined each remaining expenditure category and by transferring $2,000 from category 11, Rail Car Restoration; reducing category 93, Reserve for Reversion by $4,200, plus payments made by Private Funds of $573 reduced the total General Fund request to $8,769.

The Nevada State Museum in Carson City projected utilities to exceed existing authority by $20,145. In working through the agency director, the department had determined to reduce category 33, Research by $5,000. The total General Fund appropriation request was reduced to $15,145.

The grand total of the requests was $35,464. The supplemental work program in the three museum facilities would bring the total utilities authority in line with the FY 2000-01 budget request and consistent with the FY 1998 IFC allocations. At the present time the department was out of authority for payment of utility expenses in two of the facilities and would appreciate the committee’s expeditious handling of S.B. 277.

Assemblyman Marvel referred to the audit report on Budget Account 4216, Nevada State Railroad Museum, and asked what the value of the free rides currently given would be. Mr. Sisco replied the audit report overestimated the value of free rides because an estimate was taken from Santa Train rides and calculating out for an entire year. He added the Santa Train and one or two other rides where fees were waived did not happen all year long. He stated he did not have those figures with him but the audit estimates were vastly over-estimated.

Assemblyman Marvel asked what the agency estimated the free ride values to be. Mr. Sisco replied he did not have that information with him.

Assemblyman Marvel asked what the current policy was and whether it had been changed subsequent to the audit report. Mr. Erquiaga replied the Museum Board would address the issue at its meeting later in the week and at the June meeting. He stated the intention was to have the issue addressed based on the audit and have the board set a clear policy of when fees could be waived such as during the Christmas holiday season and Fourth of July. He added the audit criticism was that staff took responsibility to waive the fees without board authority and that the fees should be set by the board. The department concurred with the finding and the board would take up the issue. Assemblyman Marvel asked if the audit finding was correct, that staff had waived fees without board authority. Mr. Erquiaga replied that was correct and it would not happen again. Mr. Erquiaga stated he would provide the committee with the amount of fees waived based on the number of children on the train.

Assemblywoman Evans stated the shortfall of revenue from admissions was a consistent problem. In 1997 when the Commission on Tourism was before the committee for budget hearings, they were asked what would be possible through their agency to assist the museums through promotions and bringing people into those attractions. She asked if anything was ever done along those lines. Mr. Sisco replied he had only been in the position of Administrative Officer for 1 year and did not yet have some of the historical information. He stated the department had an active participation in all Tourism Commission events. Much of the funding for museums came from the Commission on Tourism and Tourism staff was a very valuable asset. Mr. Erquiaga added there were some talks initiated with the Commission on Tourism in the past 2 years, specific to cultural tourism. No additional funding was provided other than a grant to the Nevada Museum Association of which the department was a member. A brochure was developed the previous year. The department was reapplying for a grant in the current year through the foundation formed outside the department for the department’s benefit. The grant would promote the museums as well as cultural activities in rural Nevada through a public access television program. The department had started sending staff to Tourism conferences. The intent was to coordinate more with Tourism, particularly in regard to millenium activities.

The department, under Joan Kershner’s direction, secured some grant funds to develop public service announcements for museums and libraries. The library spot was currently airing in Carson City. The museum spot would begin airing in Las Vegas and carry a tag line promoting the museum at Lorenzi Park.

Seeing no further testimony, Chairman Arberry closed the hearing on S.B. 277 with no action.

Assemblywoman Vonne Chowning, Chair, General Government Subcommittee read from the closing report:

Assemblywoman Chowning reported the subcommittee wanted to ensure that the full-time Budget Analyst continued to help all of the boards, which was the reason the position was created in 1987. That position was recommended by former Legislator Marvin Sedway.

Assemblywoman Chowning reported the subcommittee discussed the satellite printing office heavily and it was felt the new service would provide a savings. The recommendation of a pilot program would allow the agency to ensure there really was a savings. Currently the Las Vegas agencies went to places such as Kinko’s and paid for their printing. The Printing Office would have to market the program to ensure agencies did use the new office. Assemblywoman Chowning continued with the report:

Assemblywoman Chowning noted subcommittee members questioned why the replacement schedule was set as it was because some of their own personal vehicles were older than 8 years and had more than 80,000 miles. Because many of the Motor Pool vehicles had to be used by people traveling great distances in rural areas conservative amounts were used.

Assemblyman Parks referred to the idea of vehicles 8 years old with 80,000 miles and stated it seemed logical that fleets could be rotated in areas where a more dependable vehicle was needed. Assemblywoman Chowning stated testimony indicated that was exactly what Motor Pool did. In fact there was a van in the Legislative Counsel Bureau for use in taking legislators to the airport that had just turned to 100,000 miles. She added the total number of vehicles was far greater and the budget was only for the replacement vehicles. Rotation of vehicles was practiced. The agency did not want people to break down in isolated rural areas.

Mark Stevens, Fiscal Analyst stated the 8 years or 80,000 miles was the general policy used by Motor Pool. If the car was still in good enough shape it might be kept, but placed into more limited service so it would not be used as often or driven as far. Motor Pool had found typical maintenance at that level increased and it was wise to trade the vehicle. It was not a cut and dried rule.

Assemblyman Marvel stated there had been discussion to take older cars out of the Motor Pool fleet and place them in a Prison Industries program to rehabilitate them that would allow them to bring a better price on trade-in. He asked if anything had been done on the concept. Gary Ghiggeri, Deputy Fiscal Analyst replied Department of Prisons had looked into the idea but he was not aware of anything being done toward the program. He stated upon review, there did not appear to be enough benefit to make the program worthwhile.

Don Hataway, Budget Division, emphasized Motor Pool got rid of a certain number of vehicles, but they might not be the vehicles replaced at that level. He concurred with Mr. Ghiggeri’s comments and added the same vehicle with a paint job and placement in an agency with less usage might be used for a few thousand additional miles.

Assemblyman Parks commented a vehicle with 80,000 miles would probably get a substantially greater trade-in value than a vehicle with 110,000 miles.

Assemblyman Dini commented in discussion 2 years ago, the biggest problem had been if a vehicle was used in Clark County with the weather-related heat issues it diminished the ability to stay in service. Eighty thousand miles in Clark County was a lot tougher than in-town driving in the northern climates. That was one factor in establishing the 80,000 limit.

Assemblywoman Giunchigliani stated about 4 to 5 years previous Mr. Tracy Raxter, Motor Pool Administration, was directed to develop a policy because there was a concern about using a blanket 80,000-mile factor. The policy developed included different criteria such as rural road usage versus in-town use and others. Eighty thousand miles seemed to be an average for retiring certain vehicles, but some might go further while others went with less mileage.

Assemblywoman Chowning continued with the General Government Subcommittee reports.

Department of Employment, Training and Rehabilitation

Assemblywoman Chowning noted the agency was doing very well and no new positions or significant enhancements were needed.

Assemblywoman Chowning reported there were numerous changes in that budget but the subcommittee felt they would be good changes.

Assemblywoman Chowning noted $2.5 million would support approximately one-quarter of the total clients. It was hoped in the future that each and every client could be funded because the subcommittee felt that a price tag could not be put on dignity. In the long run it was much less costly because of the intensive nursing home care that would be needed otherwise.

• Enhance rehabilitation services in rural Nevada;
• Provide specialized job development and placement services in southern Nevada; and
• Address the needs of blind individuals for training in the use of computer technology and low-vision aids statewide.

Assemblywoman Evans asked what substantive changes, other than name change would result when JTPA changed to WIA. Birgit Baker, Fiscal Division replied the full grant information for WIA was not available as yet. Some of the differences she was aware of were:

• A Governor’s Workforce Board was established; and
• The board was responsible for preparation of a 5-year implementation plan.

Ms. Baker stated the plan was completed and submitted to DETR and would be submitted to the Department of Labor. The other difference was in the funding for the Small Business Administration, Job Opportunities in Nevada, and others continued but under another name.

Ms. Baker stated a priority of WIA was the One-stop Career Center System. Hopefully the Ways and Means Committee would see more of the full plan when the grant became available and was presented to the Interim Finance Committee.

Assemblywoman Evans stated she appreciated the comments on the Medicaid Waiver and noted the Human Resources Committee had been discussing the issue as well and they would also like to see something done.

Assemblywoman Giunchigliani noted if the 48 Medicaid clients were divided into the $2.5 million it amounted to approximately $261,000 per person. She requested a breakout of what current costs were, and what the Medicaid Waiver would entail.

Assemblywoman Chowning continued with the closing reports of the Subcommittee on General Government.

Assemblywoman Chowning told the committee the subcommittee was made aware that the Consumer Affairs Division Director was able to leverage the amount of revenue received by approximately a four times greater amount because the Director worked at the Nevada Broadcaster’s Association and the Division of Insurance was even consulting with the Director to see if they could also leverage their funds for PSAs.

Assemblywoman Chowning noted the administrator had indicated she could continue the program without the half-time position and that was why operating costs were approved by the subcommittee.

Assemblywoman Chowning noted the requirement had been passed previously but there were many sellers of real estate, especially if they were selling property on their own, that were not aware of the law and the funding would help with that education.

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Chairman Arberry presented a bill draft request for committee introduction.

Assemblyman Marvel asked how much funding was requested in the bill draft request and Chairman Arberry stated the request was for $1 million.

Assemblywoman Chowning continued her report of budget closings from the Subcommittee on General Government.

Assemblyman Marvel asked if the demographer’s duties were still being contracted through the University of Nevada. Assemblywoman Chowning replied that was correct.

Assemblyman Marvel asked if the fees referred to were contract fees. Mary Matheus, Fiscal Analysis Division replied the funding was for contract fees for some equipment purchases for the office as well as several graduate students working on the team who received a salary.

Assemblyman Marvel stated his point was that the funding was not for state positions and Ms. Matheus replied the funds were for contract funding.

Assemblywoman Chowning continued with the report:

Senior Citizens’ Property Tax Assistance

Assemblyman Marvel stated for the record that it was unfair for the state to have to pay senior citizen’s rebates when the counties collected the ad valorem money. It was a definite impact on the General Fund when the counties and local governments received the revenue. Someday someone should take a hard look at the issue.

Chairman Arberry recognized former Assemblyman Jack Close in the audience.

Assemblywoman Chowning continued with reports from the Joint Subcommittee on General Government .

BUDGETS CLOSED.

Mark Stevens, Fiscal Analyst, reviewed the budget. He noted Assemblyman Marvel had a question at a previous hearing on the budget. The question concerned the position within the Legislative Counsel Bureau (LCB) that had historically been funded from the Nuclear Waste Budget. That position would not be financed through Nuclear Waste in the upcoming biennium in current budget requests. The position was included under General Fund appropriations in the LCB budget requests. It included a recommendation that if federal funds were received, the General Fund appropriation would be reduced on a dollar for dollar basis. Mr. Stevens stated the situation could be brought before the IFC if necessary.

Assemblyman Marvel commented the state should be reimbursed if federal funds became available and suggested that be made a recommendation from the committee.

Assemblyman Hettrick noted the Nuclear Waste Budget included the purchase of eight computers and one laptop computer. The budget also included nine positions, two of which were left vacant due to funding shortages. The budget also eliminated two positions. It would appear the budget was purchasing eight computers for seven people plus a laptop. Mr. Stevens explained the two vacant positions were the two that were eliminated in the Base budget. Decision unit E-800 restored the two positions in the budget. The plan was to replace the entire complement of data processing equipment within the office but not purchase additional equipment.

BUDGET CLOSED.

Mr. Stevens noted that most of the accounts under discussion for closure had been brought before the committee previously with the exception of a few in the Department of Business and Industry.

Two different scenarios were provided for committee consideration. The first choice was to close the account with Governor’s recommendations that would include contract services funding of $40,000 for data processing support within the department.

Discussions during the session indicated a more economical use of the funding would be to hire a state-funded person (state employee). A lot more hours of service could be provided and the individual would provide more benefits to the department. That recommendation also allocated a portion of the costs for the position. Twenty percent would be assessed to the Micrographics budget, 15 percent of the costs would be assessed to the Arts Council budget, and 65 percent funded through the General Fund. The proposal would offset some of the General Fund cost that was related to the increased cost between the position and the contract services allocation of $40,000.

Mr. Stevens stated in the expenditure portion of the budget, the department had indicated if a state employee position was approved that additional travel and training funds would be necessary for the position. Several memos had been provided to the committee members that outlined the amount of money the department felt was necessary to support the particular position.

The first memo dated February 17, 1999 (Exhibit F) indicated that an additional $1,800 was requested for the new position for in-state travel and $600 for training.

The second memo dated March 22, 1999 (Exhibit G) indicated the department updated their request by adding $1,900 for in-state travel for a total of $3,700 and also requested an additional $1,400 in training for a total of $2,000. Mr. Stevens noted the committee had tried to close the budget in an earlier meeting and the travel and training expenses had been a point of issue.

Another memo dated April 7, 1999 (Exhibit H) justified the department’s position regarding the total amount of in-state travel and training funds requested. Mr. Stevens noted if the request was approved as recommended by the department, in-state travel funds would go from $3,435 in the actual year to $8,086 in the first year of the biennium which represented a 135 percent increase in the category. The same issue was discussed previously and the accounts were held because all three accounts related to the new position.

Mr. Stevens stated Scott Sisco, Administrative Services Officer for the Department of Museum, Library and Arts was present if the committee had any further questions.

Assemblywoman Evans stated she understood the reason for the addition of a position, however, she was troubled by the large request for travel and training. She understood that some travel and training funds were necessary, but the levels seemed to be out of proportion. Mr. Sisco responded both the Assembly Ways and Means Committee and the Senate Finance Committee had raised questions about the $40,000 department request in contractual services. The department had examined the issue and agreed with the money committees that addition of a state position would provide a potential of a 374 percent increase in service hours available to the department.

To not have the position impact the General Fund, the department looked to other sources of funding including Micrographics and the Arts Council. The department also examined the entire budget to determine if it would meet the needs of the two additional programs. Micrographics was a rapidly advancing program where both the manager and a technical support person needed to travel to the agencies and look at what capabilities were at the various locations and how it would integrate with the new imaging program services.

Mr. Sisco emphasized the position request was for a computer technician. When the decision unit was originally drafted, the agency took the average per professional within the director’s office and divided that out to arrive at the original travel request of $1,800. They had learned the hard way in the meantime that a computer person needed funding for more travel and training.

Mr. Sisco gave an example of a recent situation where a person was sent to Las Vegas to solve a very difficult problem and had to stay in the area 14 continuous days. The agency wanted to ensure when a new computer person was added; they did not make a large impact on the already small agency travel budget in the director’s office.

Assemblywoman Evans stated she understood the need for a travel increase but 135 percent increase seemed extreme. Mr. Sisco stated the agency had not had a computer person and had used a lot of contract services. Another reason for contract services were that the agency had a number of MacIntosh computers integrated with IBM systems. DoIT did not provide support services for MacIntosh computers. Very little value was received for the cost of contract services because when the agency sent someone to the remote areas the agency paid a rate of from $65 to $85 per hour in travel time as well.

The original travel budget was built for the Director, Administrative Services Officer, a Public Information Officer, and a secretary (who did not travel). If a computer person was hired their nearly full-time duties would include travel to the statewide agencies for the sake of efficiency.

Assemblyman Beers asked if the person Mr. Sisco referred to in his example who was out 14 days was a contract person or state employee. Mr. Sisco replied the person had been borrowed from the Cooperative Libraries Automated Network (CLAN) system. The agency had a major network failure in the Las Vegas office. He explained CLAN was a part of the agency’s system in some ways but CLAN represented the county-based libraries.

Assemblyman Beers asked if the person was a computer programmer. Mr. Sisco replied the person was an Information Systems Specialist II that worked full-time for CLAN. That person’s duties included working on the Wide Area Network (WAN) that served all the CLAN-member libraries throughout the state.

Assemblyman Beers asked if it would be appropriate to ask the agency to return to the committee with an analysis of what it would take to replace the MacIntosh computers with personal computers. He explained that personal computers were the state standard and MacIntosh computers were rarely found in the business world. Mr. Stevens stated the MacIntosh computers were just in the Arts Council budgets. Mr. Sisco added the agency actually had MacIntosh computers in the Arts Council and their server had recently been replaced with a Windows NT server. At least a couple of MacIntosh computers were located in each museum and used for graphic artwork. MacIntosh users, for the most part, were very adamant about not making a change.

Assemblyman Beers asked if it was true that the agency’s reliance on MacIntosh computers was not the reason for the network problem in Las Vegas took 14 days. Mr. Sisco explained the problem in Las Vegas related to a number of issues:

• The agency was trying to make a final net connection in Las Vegas;
• The need to bring the WAN system back on-line; and
• The WAN, with the exception of Ely and Overton, was nearly complete and the agency was having a problem working with phone companies and the various installation companies.

Assemblyman Beers verified that the Department of Museum, Library, and Arts did not currently have a computer person in their employ. Mr. Sisco replied the department currently had an Information System Specialist II within the libraries. That person was currently responsible for 100 workstations. The second position the agency relied on when possible was another Information Specialist II within the CLAN system. That person could only be used for duties that were in some way related to the CLAN system. The new position in the budget would be an Information System Specialist III and more technically advanced to provide a resource to the other staff positions. The new position would provide services to the Director’s Office, the Nevada Arts Council and the museums on a day-to-day basis and be the lead for the other two positions.

Assemblyman Beers asked at what degree level the agency hoped to attract for the budgeted amount. Mr. Sisco replied one of the two current positions had expressed an interest in promotion.

Assemblyman Beers referred to Assemblywoman Evans’ earlier question and stated his impression was the budget contained $600 in training for non-computer staff and $1,400 in training for computer technical staff. Mr. Sisco stated the entire $2,000 was for the computer person. Assemblyman Beers noted his company spent approximately $3,000 annually per computer technician in training.

Mr. Stevens pointed out nothing was put in the budget for the actual year for training and nothing was recommended by the Governor. When discussions started with regard to adding a state position instead of contract services, $600 was requested based on adding the position. He stated it might be true that the $600 was for non-computer training and the $1,400 was for a computer person but the February memo (Exhibit F) stated the $600 was related to the computer position.

Assemblyman Hettrick stated the whole idea of going to a state employee was that the person would be available to work. It seemed if travel was not included in the package the person would not be available to work. He noted the increase was 135 percent but the funding request did not represent a great deal of money.

Assemblywoman Evans stated she was in accord with Assemblyman Hettrick’s comments, but the Governor’s recommended budget bumped the agency by $900 over the actual year. Then the agency asked for $1,800 and $3,750 increases. If the Governor’s increase was added to the agency request, that alone was $2,700. She saw no need to go beyond $2,700.

Assemblyman Beers stated a definite trend underway in support of computer networks was that of tools for remote monitoring and maintenance. He added the tools were fairly recent and effective and perhaps somewhere along the way DoIT should look into that possibility. That should cause an overall statewide decrease in travel costs relating to information services maintenance.

Mr. Sisco stated the agency had asked for an increase in the Governor’s budget but that $900 was not for the computer person. Those funds were to increase the Director’s Office travel. For all practical purposes, the agency had no travel money left as early as January in the current fiscal year. He reiterated travel in that budget covered the Director, the Administrative Services Officer and the Public Information Officer. He stated he personally had needed to travel to Las Vegas for a project, but funding was not available.

Mr. Sisco said the travel funds request for the computer person represented 18 2-day trips, 12 of those planned as monthly maintenance trips, and the remainder for the Micrographics program to be paid for by that program. It was unlikely many of the 2-day trips would actually be that short.

Assemblywoman Evans asked if there was a Micrographics office in Las Vegas. Mr. Sisco stated there was not.

Chairman Arberry stated the budgets would be held due to time constraints. The Chair recognized Mr. Stout and Commissioner Myrna Williams in attendance.

The meeting was adjourned at 10:28 a.m.

RESPECTFULLY SUBMITTED:

Cindy Clampitt,

Committee Secretary

APPROVED BY:

Assemblyman Morse Arberry Jr., Chairman

DATE: