The Joint Subcommittee on K-12, Human Resources developed the following recommendations for the Division for Aging Services budgets.

The subcommittee recommended closing the division’s administrative budget with several changes to the Governor’s recommendation. The subcommittee approved technical adjustments to properly align revenues with the agency’s funding map which resulted in General Fund savings of $26,375 for the biennium. The subcommittee also recommended adjustments for the implementation of the Medicare Insurance Counseling and Assistance (ICA) program consistent with the actions of the Interim Finance Committee on April 8, 1999, including one full-time and one part-time position in lieu of contract services to place the insurance counseling program within the state’s aging network.

The subcommittee expressed concern that the amount of funding transferred from the Taxicab Authority for the Senior Ride Program would support only 16,000 coupon books in each year of the biennium. Therefore, the subcommittee recommended a letter of intent requiring the Taxicab Authority to prepare an analysis of its financial position on September 30, 1999, and to submit a report to the Interim Finance Committee on the ability of the Taxicab Authority’s reserve to support an additional 4,000 to 6,000 coupon books for senior rides in each year of the biennium.

To mitigate the reduction in state funding for senior volunteer programs, the subcommittee concurred with the division’s recommendation that state funding designated by the Governor for two volunteer programs should be combined into one category and awarded on a competitive basis with consideration given to the funding needs of all volunteer programs.

To further address the reduction in state funding recommended by the Governor for the volunteer programs and rural senior centers, the subcommittee recommended placing two items on a priority funding list should additional General Funds become available prior to the end of the 1999 session.

The first priority was $50,000 in each year of the biennium to restore state funding for rural senior centers to FY 1999 levels. The second priority was $248,849 in General Funds in each year of the biennium for senior volunteer programs to replace the Governor’s cuts to those programs.

In the senior services program budget, also known as the Community Home-based Initiatives Program (CHIP), the subcommittee concurred with the Governor’s recommendation to substantially expand CHIP services to address waiting lists for Medicaid eligible clients. The subcommittee noted the additional resources recommended by the Governor would expand the CHIP Medicaid program by 200 slots over the biennium.

While the Governor’s budget provided a few enhancements for state CHIP clients in the areas of nutrition counseling and personal care services, no additional funding was recommended by the Governor to address the state CHIP waiting list which requires clients to wait up to 2 years in Carson City, 18 months in Las Vegas and 15 months in Reno for needed services. As a result, the subcommittee recommended a technical adjustment requested by the division replacing the Title XX funds in this account with General Funds to provide flexibility in addressing the state waiting list. The subcommittee also recommended including the state CHIP program on the General Fund priority list for up to 82 additional slots at $7,600 per slot per year for a maximum of $625,000 in each year of the biennium.

The subcommittee determined the benefits of the Governor’s proposal to transfer the Elder Protective Services (EPS) and homemaker programs from the Division of Health Care Financing and Policy to the Division for Aging Services would result in improved services for Nevada’s seniors and disabled adults and recommended the programs be transferred effective July 1, 1999, despite an increase in administrative costs associated with the transfer.

Subsequently, in approving the purchase of social service budget on April 28, 1999, the subcommittee added $59,049 in FY 2000 and $52,176 in FY 2001 in Title XX funds for additional homemaking services.

In summary, the subcommittee’s recommendations for all budgets of the division will result in the coordination of Medicare benefit counseling services within the aging network, more accurate reporting of elder abuse data, improved coordination of homemaking and ombudsman services, program enhancements for nutrition counseling and personal care, and 200 additional CHIP program slots to enable more Nevada seniors at risk of nursing home placement to maintain their independence and remain in their own homes.

I would like to thank the members of the Joint Subcommittee on K-12, Human Resources, Speaker Dini, Mr. Goldwater, Mr. Parks, and Mr. Hettrick, for their hard work and assistance in developing these recommendations.

MS. GIUNCHIGLIANI MOVED TO ACCEPT THE SUBCOMMITTEE’S RECOMMENDATIONS.

MR. HETTRICK SECONDED THE MOTION.

THE MOTION CARRIED. (MR. DINI, MR. GOLDWATER, MR. PERKINS, AND MR. PRICE WERE ABSENT AT THE TIME OF THE VOTE).

The Joint Subcommittee reviewing the K-12, Human Resources budgets has completed its review of 14 of the State Health Division’s budgets, and concurred in the closing actions recommended. The following highlights the more significant closing actions recommended by the subcommittee.

The subcommittee approved a new auditor position for the Health Administration office funded through the division’s indirect cost allocation plan. The position will be utilized to examine both the in-house grants and sub-grants, and will work closely with the division’s Administrative Services officers to improve internal cost controls.

The subcommittee approved a new Community Health Nurse position for the city of Pahrump in Nye County funded by the Federal Preventive Health Services block grant. The position replaces an existing professional service contract and will provide more hours of direct client services to the community. The subcommittee also approved the recommendation to use a combination of Maternal Child Health (MCH) block grant funds and medical reimbursement revenues to purchase office furniture and to replace computers and medical equipment for the state’s 18 clinics. An increase to the county participation revenues and medical service charge fees was also approved by the subcommittee, resulting in a $128,355 savings in state funds over the biennium.

The subcommittee approved the recommendation to continue General Fund support for direct assistance to indigent tuberculosis (TB) patients. The funding provides group care and temporary lodging for infected TB clients, TB medications, as well as various medical and radiological services related to treating and monitoring TB cases. In addition, the subcommittee approved approximately $2 million in federal funds to provide breast and cervical cancer screening services to 2,500 of Nevada’s underinsured and uninsured women over the age of 40.

The subcommittee approved $749,572 in additional Ryan White II grant funds in each year of the biennium. The additional federal funds will provide the traditional AIDS medical regimen for clients enrolled in the AIDS Drug Assistance Program (ADAP), increasing the total federal support for AIDS medications to $3.9 million for each year of the biennium. The subcommittee also recommended to continue state General Fund support totaling $1.4 million per year to purchase AIDS medications, including protease inhibitors. In total, the subcommittee approved $5.3 million in each year of the biennium to purchase AIDS medications.

The subcommittee approved state funds totaling $1.1 million in each year of the biennium to purchase vaccines. State funds, in conjunction with the Federal Direct Assistance Grant Award are used to meet the annual vaccine needs of the state. As a precautionary measure, the subcommittee recommends a letter of intent to allow the division to approach the Interim Finance Committee for a contingency fund allocation if vaccine usage increases, or if the annual Federal Direct Assistance Grant is not sufficient to provide for the existing childhood series of immunizations. In addition, the letter of intent authorizes the division to approach the Interim Finance Committee prior to implementing any modification to the existing immunization regimen. It appears new vaccines, such as Rotavirus and Pheumo-7, may be added to the immunization schedule by the national advisory committee on immunizations.

The subcommittee approved re-directing unobligated MCH block grant funds for a statewide dental health initiative. The details of the initiative will be developed by the division in cooperation with the Maternal Child Health Advisory Board, and may include a prevention and treatment component delivered through a collaborative effort with the University of Nevada’s School of Medicine. The subcommittee approved a letter of intent to require the State Health Division to report quarterly to the Interim Finance Committee on the status of the initiative program and prior to implementing the program. Additionally, the subcommittee recommends three new Public Health Nutrition Specialist positions for the upcoming biennium. Two of the positions will be based in the Special Children’s Clinics to provide case management and treatment services for children with feeding problems, and services to children with metabolic disorders. The third position was approved to provide nutritional services to school-age children with special health care needs. Two of the three positions are recommended to replace professional service contracts, and will provide more hours of direct client services at a reduced cost.

To reduce the waiting lists for diagnostic and treatment services at the Special Children’s Clinics, the subcommittee approved a proposal from the health division to reallocate existing resources and funding from the Maternal Child Health (MCH) budget to the Special Children’s Clinic. The reallocation is made possible due to decreases in client caseload accessing the MCH program. The plan, which is revenue- neutral, establishes 2.5 new positions for treatment services at the Reno clinic. For the Reno clinic, the new positions will immediately create 35 more treatment slots for children, reducing the waiting time for treatment services to no more than 2.5 weeks. In addition, the plan provides for the transfer of 7 positions from the MCH budget to reduce the waiting lists for diagnostic and treatment services at the Las Vegas clinic. Once the plan is fully implemented, the division projects the waiting time for diagnostic services will be reduced from 8 weeks to 2.5 weeks within a 5-month time frame, and the waiting list would continue to decline to achieve "same-week" diagnostic appointments within 6 months. The plan would immediately create 40 new treatment slots for children. Two of the positions are currently vacant, and will be transferred to the clinics effective July 1, 1999. The remaining positions, including the funding to support the salaries and the operating costs, will transfer as the positions become vacant through attrition. The subcommittee recommends a letter of intent that requires the division to report to Interim Finance Committee the specific details of the implementation plan once it is fully developed, including how the position transfers would reduce the waiting lists for diagnostic and treatment services at each of the clinic locations.

The subcommittee approved the Women Infants and Children (WIC) program’s budget as recommended by the Governor for the upcoming biennium. The WIC budget, as approved, will serve a total of 40,800 clients each month. To address additional caseload in the Carson City WIC office, the subcommittee approved the addition of a half-time Community Nutrition Aide position. The subcommittee wishes to apprise the full committee that the anticipated increase in monthly WIC program caseload is not anticipated to result in the establishment of waiting lists. Instead, the subcommittee was informed by the State Health Division of various efficiencies, such as increasing the use of generic and store-brands, which will provide service to the additional caseload with reduced overall costs.

The subcommittee approved several enhancements to the Emergency Medical Services (EMS) budget to improve the program’s data management systems and to supplement the programs’ capability to respond to the emergency medical services training needs of rural Nevada. The subcommittee’s action provides $29,160 over the biennium in programming costs to develop and implement a year-2000 compliant software system used to manage the regulatory functions of the EMS program, including the licensing and certification of EMS personnel and emergency vehicles. The subcommittee approved $4,115 to allow the Department of Information Technology to conduct a definition study to determine the future needs of a pre-hospital emergency care database. To improve the availability of EMS provider training in rural Nevada, the subcommittee approved $40,000 over the biennium to provide additional travel expenses, to supplement training grants issued to EMS volunteer providers, to support an EMS advisory committee, and to purchase a mobile trailer used for training EMS personnel. The mobile trailer will house specialized emergency medical services training equipment, and will be used to travel throughout rural Nevada to assist EMS providers with upgrading their emergency medical skills.

The Vital Statistics Office, Cancer Control Registry, Health Aid to Counties, Consumer Health Protection, and Health Hospital Licensing budgets were reviewed by the subcommittee and closed as recommended by the Governor with technical modifications.

Overall, the subcommittee’s recommendations decrease the General Fund appropriation for the State Health Division’s budgets by $232,498 in FY 2000 and $287,498 in FY 2001, for a total of $519,996 over the biennium.

MR. MARVEL MOVED TO ACCEPT THE SUBCOMMITTEE’S RECOMMENDATIONS.

MR. DINI SECONDED THE MOTION.

THE MOTION CARRIED. (MR. GOLDWATER AND MR. PRICE WERE ABSENT AT THE TIME OF THE VOTE).

The subcommittee concurred with the Governor’s recommendation for significant increases in the division’s budgets for 41 new positions for the implementation of three-way workers’ compensation insurance beginning July 1, 1999, as well as the continued safety and health of Nevada’s workforce.

To ensure the additional resources recommended by the Governor are utilized efficiently, the subcommittee recommended the agency develop and track a series of new outcome-based performance indicators for all programs to measure the agency’s effectiveness in regulating workers’ compensation benefits and reducing workplace injuries and illnesses.

The subcommittee recommended several adjustments in the division’s Administrative budget to reflect current computer hardware and software prices, as well as a reduction in the number of positions required for the implementation of three-way insurance from 19 to 17 as requested by the agency. The subcommittee also recommended the addition of $27,650 in FY 2000 for programming services to upgrade the claims indexing system to enhance the tracking of workers’ compensation claims.

The Occupational Safety and Health Enforcement budget was closed according to the Governor’s recommendation including 10 new safety and health inspectors and 8 new boiler and elevator inspectors to address the projected growth in safety inspections required to maintain a safe working environment for Nevada employees during the upcoming biennium.

The subcommittee recommended closing the Safety Consultation and Training budget according to the Governor’s recommendation including two new positions to respond to the backlog of requests for workplace safety programs from employers in southern Nevada, and an increase of $75,000 in each year of the biennium for a total of $425,000 per year to continue the state’s multi-media safety campaign.

The subcommittee supported the Governor’s recommendation for one new Industrial Hygienist position in the Mine Safety and Training budget to address the needs of Nevada’s underground mining operations for monitoring of air quality, as well as a Program Assistant position to develop and maintain a database for tracking statistical information about Nevada’s 479 active mines as recommended in a 1998 legislative audit. The subcommittee also recommended technical adjustments for allocating federal grant funds to appropriate expenditure categories to facilitate budgeting and accounting for federal funds in the future. In closing the budget for the Nevada Attorney for Injured Workers (NAIW), the subcommittee approved the addition of $14,732 in FY 2000 for computer hardware and software enhancements recommended by the Department of Information Technology (DoIT) in a preliminary needs assessment of the Nevada Attorney for Injured Workers’ computer system. The subcommittee concurred with the Governor’s recommendation for a new accounting specialist position to improve NAIW’s financial administration in response to a 1998 legislative audit.

The subcommittee’s recommendations for all budgets of the Division of Industrial Relations and the Nevada Attorney for Injured Workers will provide the additional resources needed to continue to promote the health and safety of Nevada’s workforce and to ensure injured workers receive the benefits to which they are entitled.

I would like to thank the members of the Subcommittee on General Government for their hard work and assistance in developing these recommendations.

MR. DINI MOVED TO ACCEPT THE SUBCOMMITTEE’S RECOMMENDATIONS.

MRS. de BRAGA SECONDED THE MOTION.

THE MOTION CARRIED. (MR. GOLDWATER, MR. PERKINS, AND MR. PRICE WERE ABSENT AT THE TIME OF THE VOTE).

The Subcommittee on Public Safety, Transportation, and Natural Resources developed the following recommendations for the budgets of the Office of the Military:

In addition to technical adjustments made by staff to payroll and operating costs, the subcommittee recommended approval for the continuation of two engineering positions for the Adjutant General’s office. The Interim Finance Committee originally approved the positions in December 1998, to assist the Nevada Air Guard with its air base relocation effort. Although the Washoe County Airport Authority has indefinitely suspended the relocation of the Air Guard base, the subcommittee determined that the Air Guard demonstrated a need for these two positions. This recommendation results in a General Fund increase of $21,419 in FY 2000 and $25,981 in FY 2001, which represents the state’s 25 percent cost-share responsibility.

The subcommittee also recommended adding three maintenance and grounds-keeping personnel for the new National Guard Readiness Center in Carson City scheduled for completion and occupancy in April 2001. The General Fund impact of this recommendation is $52,294 in FY 2001.

In conjunction with its recommendation for the three maintenance and grounds-keeping positions, the subcommittee recommended a letter of intent to direct the Office of the Military to hire these positions only when construction is completed and the Guard has fully occupied the new facility during the upcoming biennium.

The subcommittee recommended closing the National Guard Benefits budget as recommended by the Governor authorizing the Guard to reimburse up to 50 percent of the college or university tuition for qualifying guardsmen. Senate Bill 292, currently being considered by the legislature would provide authority to the Guard to reimburse up to 100 percent of qualifying college or university tuition.

The Commission for Veterans’ Affairs budget was closed according to the Governor’s recommendation with no new positions or significant enhancements.

The subcommittee closed the budget of the Nevada Veterans’ Home recommending that the home be operated as a state-run facility. The subcommittee heard testimony both for and against privatization of the veterans’ home. After carefully considering all the information presented, the subcommittee concluded that a state-run facility will provide veterans with a more responsive and supportive environment, than would be provided by a third party-interest.

Operating costs and revenues associated with the operations of the veterans’ home were key concerns of the subcommittee. The subcommittee agreed to the principal concept of equal sharing of costs for the home wherein the state, the federal government and the veterans will each contribute an equal one-third share of the revenues required to operate and maintain the home.

In addition, the subcommittee concurred with the Governor’s recommendation to provide the authority to the Commission on Veterans’ Affairs to receive a temporary advance from the General Fund to cover possible revenue shortfalls resulting from lags in billing collections.

The Governor’s recommendation to accelerate the hiring of the home’s Administrative Director and key management and supervisory staff was also supported by the subcommittee. The subcommittee concurred with staff’s recommendation to increase the salaries and upgrade the job classifications of the Administrative Director, the Deputy Director, the Administrative Services Officer, and the Computer Network Specialist so that salaries and classifications are more in line with other veterans’ homes throughout the United States.

Finally, in consideration of the possibility that the construction of the home is not completed on schedule, the subcommittee concurs with the Governor’s recommendation to adopt language in the appropriations bill that would give the home the authority to balance forward its equipment funding into the second year of operation.

The total net fiscal effects resulting from the subcommittee’s recommendations is an increase in general appropriation of $125,958 in fiscal year 2000 and $160,723 in fiscal year 2001. On behalf of the subcommittee I would like to thank Mr. Abbott and his staff for all the hard work and dedication they put into this project.

MR. MARVEL MOVED TO ACCEPT THE SUBCOMMITTEE’S RECOMMENDATIONS.

MR. HETTRICK SECONDED THE MOTION.

THE MOTION CARRIED. (MR. GOLDWATER AND MR. PRICE WERE ABSENT AT THE TIME OF THE VOTE).

The Joint Subcommittee on Public Safety, Natural Resources and Transportation developed recommendations for the following budgets of the Department of Conservation and Natural Resources: Forestry, Intergovernmental Agreements, Forest Fire Suppression, Forestry Honor Camps, Forestry Nurseries, Wildlife, Wildlife Obligated Reserve, Wildlife Boating Program, Tahoe Regional Planning Agency, and the Nevada Tahoe Regional Planning Agency.

The subcommittee recommends approval of funding for a state-employed aircraft mechanic position. Costs for the position will be shared by the Divisions of Forestry and Wildlife. Technical adjustments and equipment changes reduce the costs in the Forestry budget from $105,046 to $54,313 in FY 2000 and from $59,702 to $55,902 in FY 2001. The Governor’s budget reflects all training funds for the mechanic in the first year of the biennium. The subcommittee recommends authorization for the agency to use the training funds in both years of the biennium.

The agency reports annual savings associated with the aircraft mechanic position are estimated at $35,000. The subcommittee directed the agency to provide semi-annual reports to the legislature on the estimated savings attributable to the mechanic position.

The subcommittee concurs with the recommendation for a new Fire Control Dispatcher to support the Elko dispatch center. The Governor’s budget reflects a January 2000 opening date. Agency testimony moved the dispatch center opening date to April 2000 which will delay the start date for the position by 3 months.

The subcommittee recommends approval of DMV pollution control transfers for a new Forester position to work on forest health initiatives as part of the Environmental Improvement Program. Usage of air pollution control funds is dependent upon passage of Senate Bill 511. If S.B. 511 is not approved, the subcommittee recommends the full committee revisit this recommendation. The committee should note that the Senate subcommittee did not concur with this recommendation. The Forester position has been placed on Senate Finance’s potential add-back list.

County assessment revenue in the Forestry account has not been modified for several bienniums. The department indicates assessments have been under review for a year. No change is recommended this biennium because the department wants to proceed with careful planning that results in a well-developed and defensible cost allocation plan. The department will propose a cost allocation plan for the 2001-2003 biennium and meet with counties to assure their concurrence.

In the Forestry Intergovernmental account, the Governor’s recommendation reflects Storey County’s request to discontinue its participation in the cooperative fire district with the Nevada Division of Forestry. Representatives from the county and division subsequently met and agreed instead to revise the cooperative agreement whereby the state would be responsible for personnel and related costs and Storey County would fund operating expenses directly. This arrangement is similar to current agreements with several northern counties.

In the Forestry Fire Suppression account, the subcommittee recommends restoring Fire Suppression expenditure authority to FY 1999 work program amounts.

The Governor’s budget recommends Forestry Honor Camp reimbursements at $1.2 million. FY 1998 actual booked reimbursements were $1.28 million. The subcommittee recommends increasing base reimbursement revenues to $1.28 million with a corresponding General Fund reduction of $80,000 per year. The subcommittee additionally recommends an increase in reimbursement revenue of $40,000 in FY 2001 to account for additional Department of Transportation (DOT) revenues associated with the Ely paint booth.

The subcommittee recommends denial of three new crews for the Silver Springs Conservation Camp. It appears there will be no expansion of the camp during the 1999-2001 biennium, making the new crews unnecessary.

The subcommittee concurs with the Governor’s recommendation to provide additional seasonal support for the forestry nurseries.

The committee will recall there was concern expressed regarding the budgeted $14,483 ending reserve balance in the Wildlife account. The subcommittee recommends approval of several Wildlife amendments which adjust federal fee and transfer revenues and restore the ending reserve balance to $2.1 million.

The subcommittee concurs with the Governor’s recommendation to add eight new positions to the Wildlife Division’s budget. The new positions include one new Program Assistant for the Henderson Boat Registration and Titling office; one Game Warden for Boulder City to assist with boating education; one Management Analyst for planning, evaluation and federal aid coordination associated with the division’s strategic plan; one Conservation Educator each for northeastern and northwestern Nevada; one Biologist for Las Vegas Valley for wildlife education and wildlife nuisance complaints; one Wildlife Technician to manage water flows and maintain facilities at the Carson Wetlands; and one Fisheries Biologist to work on the Environmental Improvement program in the Lake Tahoe Basin.

Module E-400 in the Wildlife budget included a "laundry list" of items for which little supporting documentation was available. The Wildlife Administrator provided documentation to support several items on the list, but unfortunately, numerous items remained undocumented. The subcommittee recommends reducing operating costs in module E-400 by $148,500 in FY 2000 and $400,940 in FY 2001. The subcommittee recommends placing these amounts in reserve with the understanding Wildlife can approach the IFC when additional information is available to request approval to move the funding to the operating category. The subcommittee further recommends eliminating $132,000 of budgeted terminal, annual, and sick leave payoffs.

The Governor’s recommended budget resulted in a negative ending reserve balance in the Wildlife Obligated Reserve account. The subcommittee recommends restoration of various revenue and expenditure line items to FY 1998 actual levels which generates a positive ending reserve balance of $75,191.

In the Boating Program, the subcommittee recommends corrections to balance forward revenues which result in reserve reductions of $567,804 during the biennium. Boat fuel tax revenues are reduced by $76,027 in FY 2000 and $194,019 in FY 2001 which similarly reduce reserves.

The subcommittee concurs with the Governor’s recommendation of $1.92 million during the biennium for capital, land, and building improvements funded primarily with federal revenues and reserves. The funding will enable the division to repair and upgrade boating access facilities throughout the state.

The boating account’s share of CIP 99 C-18 cost is not accounted for in the Governor’s recommended budget. CIP 99 C-18 is a Department of Conservation project in Elko that includes an office building, a shop, and a metal storage building. The office would include a boat registration counter. The subcommittee recommends approval of a $200,000 adjustment to module E-376 to provide the Boating account’s share of the anticipated costs.

The subcommittee recommends General Fund additions of $14,994 per year to the Tahoe Regional Planning Agency (TRPA) account to restore Nevada’s share of previously authorized Cost of Living Adjustments (COLAs).

The subcommittee recommends approval of six new permanent positions for TRPA to assist in coordinating and implementing the Environmental Improvement Program in the Lake Tahoe Basin. The new positions would be funded with DMV pollution control transfers.

The subcommittee concurs with the Governor’s recommendation to replace adjusted base General Fund support with DMV pollution control transfers. Approval of the DMV pollution control funded modules is dependent upon passage of Senate Bill 511. If S.B. 511 is not approved, the subcommittee recommends the full committee revisit these items.

The committee should note that the Senate did not concur with the use of DMV pollution control transfers to fund the TRPA.

The Governor’s budget did not fund TRPA’s request for salary comparability and COLAs. The subcommittee recommends approval of TRPA’s request for Nevada’s share of salary comparability; however, the subcommittee recommends denial of cost of living adjustments. The subcommittee recommends adding $30,192 of DMV pollution control revenues to fund salary comparability. The subcommittee further recommends a letter of intent be drafted which directs TRPA to have an independent party review future salary comparability and reclassification requests.

The subcommittee concurs with the Governor’s recommendation, as amended, to replace General Fund in the Nevada TRPA account with DMV pollution control revenues. The committee should note the Senate did not concur with this recommendation.

The subcommittee’s recommended actions on these accounts will result in General Fund savings of $617,329 as compared to The Executive Budget.

I would like to thank the members of the Joint Subcommittee on Public Safety, Natural Resources and Transportation, Mr. Perkins, Mrs. Chowning, Mr. Price, and Mr. Marvel for their hard work in formulating these recommendations. I would also like to thank the fiscal staff, Brian Burke.

He

MR. MARVEL MOVED TO ACCEPT THE SUBCOMMITTEE’S RECOMMENDATIONS.

MRS. CHOWNING SECONDED THE MOTION.

THE MOTION CARRIED. (MR. PRICE WAS ABSENT AT THE TIME OF THE VOTE).

The Joint Subcommittee on Public Safety, Natural Resources and Transportation developed recommendations for the following budgets of the Department of Conservation and Natural Resources: Director’s Office (administration), Environmental Protection Administration (EPA), Air Quality, Mining Regulation and Reclamation, Water and Mining, Conservation Districts, State Lands, Water Resources, State Parks, and Water Planning.

In the Director’s Office, the subcommittee recommends approval of a new accounting clerk to support the Nevada division of forestry. The position is needed in the Elko regional office due to the volume of accounting documents associated with county budgets, emergencies, and other incidents. The subcommittee further recommends approval of Budget Division Amendment 11 which modifies the Governor’s recommendation from a half-time to a full-time position.

The subcommittee also recommends approval of the new Accounting Technician II for the Director’s Office. This position will provide services to Water Resources and other divisions within the department. Activities will include processing and reconciling fiscal documents and assisting with budget preparation and monitoring. The subcommittee further recommends approval of Amendment 86, which accelerates the hire date from October 1, 1999 to July 1, 1999. Portions of the recommended General Fund revenues are supplanted with Water Basin account allocations which result in General Fund reductions of $1,248 in FY 2000 and $10,380 in FY 2001.

The subcommittee recommends denial of terminal, annual, and sick leave funding in the Director’s Office. The subcommittee notes the availability of the Statutory Contingency Fund for terminal, annual, and sick leave payments. The subcommittee also notes the agency can approach the IFC for additional funding if a shortfall is experienced.

The subcommittee recommends approving transfer of the property equipment supervisor and travel to NDF. While it is appropriate to retain fiscal staff within the Director’s Office, it would be more effective to have this position supervised directly by NDF staff. Approval of the transfer of a Management Assistant position from NDF to the Director’s Office is also recommended. This position is involved primarily in payroll and personnel activities.

The subcommittee recommends approval of the Director’s request to carry forward the unspent balance of appropriations made through Senate Bill 211 of the 1997 session. The committee will recall that S.B. 211 appropriated $75,000 per year ($150,000) to fund travel, personnel, and related expenses for the development of a plan for the preservation and protection of wild horses in the State of Nevada. According to information provided by the department, there is currently an unspent, unreverted balance of $49,677 that could potentially be brought forward.

If approved by the committee, a private foundation would be established to assist in marketing wild horses and burros through the Public Adoption Program. The appropriation balance, with matched funding from the Bureau of Land Management) BLM, would be used to contract for a feasibility study on the establishment of the foundation and scope of work that could be accomplished to enhance the adoption program. The study would explore the feasibility of establishing a national foundation whose sole purpose would be the marketing aspects of the Wild Horse Program. If approved by the full committee, fiscal and legal staff will work with the department on legislation needed to extend the reversion date of the money appropriated in S.B. 211.

The subcommittee concurs with the transfer of three Information Services positions from the Bureau of Waste Management and Federal Facilities (Budget Account 3187) to the EPA Administration account (Budget Account 3173) to provide technical services and support to the entire division. This recommendation is consistent with the full committee’s closing action taken on April 22, 1999 for Budget Account 3187.

The subcommittee concurs with replacing 25 percent of EPA software and hardware used on a division-wide basis each year. The Governor recommended $233,890 in FY 2000 and $250,490 in FY 2001 for this purpose. Through price adjustments, the subcommittee reduced the budgeted costs by $56,107 in FY 2000 and $70,419 in FY 2001.

In the EPA Air Quality account, the subcommittee concurs with the recommendation for travel, operating and contract services ($75,000 each year) to evaluate the extent of and sources of pollutants in the Jarbidge Wilderness Area. The subcommittee also recommends approval of a new van to set up a portable monitoring system which will enhance the bureau’s capability of responding to air quality complaints and concerns. The unit will enable the bureau to monitor areas where pollutants are emitted on a short-term basis such as fire and construction sites.

Due to the increase in activity associated with the bureau’s mining regulatory responsibilities, the subcommittee concurs with the Governor’s recommendation that all 18 mining staff and associated costs in the Water and Mining account (Budget Account 3186) be transferred to a new account—Mining Regulation and Reclamation (Budget Account 3188). The bureau is supported by fees collected from the mining industry and regulates approximately 185 mining operations.

In the Water and Mining account (Budget Account 3186), water permit revenues are budgeted at approximately $1.5 million in each year of the 1999-2001 biennium or a 44 percent increase over FY 1998 fee revenues of $1.037 million. Water permit fee increases are anticipated to provide the additional revenue. The Environmental Protection Agency (EPA) reports that fees have not been increased since 1990 for discharge permits and since 1991 for underground injection control activities. The agency further states that increases are necessary due to increases in costs and services to the division in terms of staff salaries, operating, and equipment as well as the loss of program support from other sources. EPA plans a series of informal and formal workshops with the regulated community to evaluate the current funding structure, changes needed and revised fee amounts.

The committee will recall that Assembly Bill 148 of the 1995 session and Assembly Bill 137 of the 1997 Legislative Session provided grants to Conservation Districts with an appropriation of $135,000 in each year of the 1995-97 and 1997-99 bienniums. The subcommittee concurs with the Governor’s recommendation to continue this funding in the Conservation District account (Budget Account 4151). The division reports that the Conservation Districts generate approximately $10 locally for each $1 of General Fund provided.

The subcommittee concurs with the Governor’s recommendation for a 0.4 FTE Land Agent II position and a 7-month Seasonal Forester position for the Division of State Lands. The division currently has a 0.6 FTE Land Agent II that works on the Land Coverage Mitigation Program at Lake Tahoe and is funded by mitigation fees. Making this a full-time position would allow the division to expand the responsibilities to include working on other types of land transactions. The Seasonal Forester will work in the field and assist the existing Forester II responsible for all Lake Tahoe Bond Act land parcels.

The subcommittee concurs with the Governor’s recommendation for a new Environmental Scientist III position, funded from interest on the sale of Lake Tahoe bonds. The position’s responsibilities will include developing and implementing projects to restore streams, wetlands, and riparian areas within the Lake Tahoe Basin. Further, the subcommittee concurs with Budget Division Amendment 35, which accelerates the hire date of the position from October 1, 1999 to July 1, 1999.

In the Water Resources account, the subcommittee has made adjustments to restore conservancy funding and reduce General Fund appropriations by $126,343 in FY 2000 and $132,016 in FY 2001. The subcommittee recommends approval of funding for replacement vehicles and computers. New computers are recommended to allow the division to convert to a Windows network rather than using dumb terminals.

In the State Parks account, revised boat fuel tax revenues allow the state to save $94,568 in General Fund appropriations in each year of the biennium. The subcommittee concurs with the Governor’s funding recommendation for additional State Parks seasonal support.

The subcommittee recommends approval of a new Park Ranger position to work on the Environmental Improvement Program (EIP) for the Lake Tahoe Basin. This position would coordinate State Park EIP project functions and work closely with other state and federal agencies. The Executive Budget recommends DMV air pollution control revenues as the funding source for this position. Usage of air pollution control funds is dependent upon passage of Senate Bill 511. If Senate Bill 511 is not approved, the subcommittee recommends funding the new position with General Fund.

The subcommittee informed the Budget Division and the agency that all Department of Conservation and Natural Resources enhancements funded with pollution control revenues should not be built into the base budgets of the affected accounts in the 2001-2003 biennium. If the Budget Division wishes to continue the initiatives (if approved by the legislature) in future biennia, they must continue to be reflected as enhancement decision items. The subcommittee wishes to have a letter of intent prepared to formalize this understanding (a draft with potential wording is included in the closing report).

The subcommittee recommends approval of a General Fund appropriation of $325,671 for various items of replacement equipment. The bulk of the funding ($276,282) would support replacement of nine vehicles which have accumulated from 80,000 to 189,000 miles and a front end loader for snow removal. This module also funds tools, 8 computers, 12 software upgrades, 7 laser printers and 11 ink jet printers.

The subcommittee concurs with the recommended General Fund appropriation of $346,715 in FY 2000 to provide State Parks staff with the materials and labor needed to complete the highest priority items identified for building and grounds maintenance throughout the State Park system. The appropriation funds items such as replacement doors and locks, painting and staining, fixture replacements, structure and roof repairs, plumbing repairs, lawn and tree maintenance, and other similar items.

Because The Executive Budget was influenced by the availability of General Funds in the first year of the upcoming biennium, all parks maintenance funding in E-730 was placed in FY 2000. The subcommittee recommends approval of the Budget Division’s request to allow State Parks to use the money in either year of the biennium. Fiscal staff will work with the Legal Division to ensure the appropriation bill contains this provision.

Park improvement one-shots have not been recommended in The Executive Budget. The subcommittee concurs with the division’s request to carry forward the balance of existing General Fund appropriations in the Park Improvement accounts (Budget Accounts 4164 and 4165). These balances will allow the division to complete several ongoing projects that have been delayed and will not be finished in FY 1999. There are also two 1995 and several 1997 projects that are completed, which have remaining funds. The potential carry forward is $1,180,010

During the March 25, 1999 meeting of the Joint Subcommittee on Public Safety, Natural Resources and Transportation, there was considerable discussion regarding park funding sources and unfunded capital improvements. The Parks Administrator mentioned there is currently a $30 million backlog of park improvements. The subcommittee encourages the full committee to consider expanding funding sources for State Parks to possibly include room tax revenues or increased General Fund appropriations. Included in the closing packet are copies of the letters approved for distribution to the Senate Finance and Assembly Ways and Means Committees.

Nearly half of the 10 accounts reviewed were non-General Fund accounts. Nonetheless, the subcommittee’s recommended actions on these accounts will result in General Fund savings of $507,837 as compared to The Executive Budget.

MR. MARVEL MOVED TO ACCEPT THE SUBCOMMITTEE’S RECOMMENDATIONS.

MRS. de BRAGA SECONDED THE MOTION.

THE MOTION CARRIED. (MR. PRICE WAS ABSENT AT THE TIME OF THE VOTE).

The Joint Subcommittee on K-12, Human Resources has closed the budgets for the Division of Mental Health and Mental Retardation with a number of significant changes.

In reviewing the division’s Administration Budget, the subcommittee was concerned about the deletion of funding for the Psychiatric Residency Program, which has provided services to clients at the Nevada Mental health Institute and training for medical residents in psychiatry. The subcommittee closed the Administration budget by restoring $162,140 in each year of the biennium to continue this important program.

At the Nevada Mental Health Institute, the subcommittee closed the budget with the addition of a 10-bed psychiatric emergency services program, which allows potential clients to be screened and treated up to 72 hours before they are admitted to the hospital. This is an important program to assist in the treatment of clients and will use the same 10-bed model that has proved so successful at the Las Vegas Mental Health Center.

In the Rural Clinics Program, the subcommittee is recommending the addition of a clinical social worker position to deal with caseload growth at Silver Springs and to assist in the delivery of services to the new juvenile facility.

For the Las Vegas Mental Health Center, the subcommittee supports the Governor’s recommended increases of $1.8 million in FY 2000 and $2.9 million in FY 2001 for caseload growth, 8.78 new positions to support the four Medication Clinic sites and for increased medications.

The three regional Mental Retardation budgets (for southern, northern, and rural Nevada) were constructed with significant growth of 187 clients with "related conditions" as a result of the state losing the federal Perry vs. Crawford lawsuit.

Unfortunately, The Executive Budget was unable to support the waiting list for Mental Retardation Services. The Governor’s budget planned on serving only 25 percent of the individuals projected to be on the waiting list for services during the upcoming biennium. The subcommittee heard testimony that by the end of FY 2001, the waiting list for services would total 187 clients. The subcommittee felt this was unreasonable and worked with the division and the department to develop a plan to provide needed services to those clients.

The three regional budgets were closed by the subcommittee utilizing a plan which would fully fund all known clients and would meet federal criteria for providing services within the required 90 days of application for services. The plan will provide services for 184 residential placements (118 in southern Nevada, 43 in northern Nevada, and 23 in rural Nevada) plus community training center services, jobs, and family support. Funding to support the plan is generated from the elimination of 54 new Intermediate Care Facilities for the Mentally Retarded (ICF-MR.) beds recommended in the Medicaid budget. These restrictive and expensive ICF-MR beds (up to $10,500 per month per bed) were determined by the division not to be the best way to provide a full array of services to clients. The elimination of the $6.5 million in General Funds from the Medicaid budget, along with the closing and reallocation of six community ICF-MR beds located in northern Nevada and operated by the state, provide more than sufficient funding to provide services to mentally retarded citizens during the upcoming biennium.

The subcommittee’s actions increase General Fund support for the Division of Mental Health/mental Retardation by $1,633,915 in FY 2000 and $3,729,764 in FY 2001 for a total of $5,363,679 over the biennium. The increase in General Fund support is offset by savings in the Medicaid budget of funding that was recommended for the 54 ICF-MR beds. The General Fund savings in Medicaid for the mental retardation beds equals $2,990,733 in FY 2000 and $3,502,999 in FY 2001 for a total General Fund savings of $6,493,732. The net result of applying the savings generated in the Medicaid budget for the mental retardation beds to the increase approved in Mental Health/Mental Retardation results in a General Fund savings of $1,130,053 over the biennium.

MR. MARVEL MOVED TO ACCEPT THE SUBCOMMITTEE’S RECOMMENDATIONS.

MR. PERKINS SECONDED THE MOTION.

In closing this budget, the subcommittee approved placing $500,000 in Maximus federal recovery revenue in each year of the biennium into a Department of Human Resources’ budget account and removing the same amount in General Fund support. Maximus recoveries are enhanced federal revenues and retroactive collections of federal revenue that are recovered with assistance from the Maximus firm. A percentage of the recoveries are then retained by Maximus. The subcommittee also recommended that a letter of intent be issued authorizing the agency within Human Resources that receives the Maximus revenue authority to approach the Interim Finance Committee during the 1999-2001 biennium if the Maximus revenue does not materialize.

The subcommittee also approved several small adjustments including reducing state-owned rent charges by $285 and software costs by $286, both in FY 2000. The subcommittee also reduced in-state travel in the family resource center program by $2,195 in each year of the biennium. The subcommittee felt the remaining $5,000 in each year of the biennium would be sufficient for the two positions which administer the program. The Executive Budget also recommended the transfer out of all costs associated with the family resource centers program into a new budget account. The subcommittee approved that recommendation.

The subcommittee approved one small technical adjustment by reducing Title XX revenue in the base budget by $184 in FY 2000 and by $297 in FY 2001 and replacing those amounts with an increased transfer from the Children’s Trust Account (101-3201). The adjustment correctly reflects the 20 percent salary transfer (salary and fringe costs) from that budget for the Social Welfare Program Specialist in this budget.

The subcommittee also added $59,049 in FY 2000 and $52,176 in FY 2001 in excess Title XX funds to the newly-combined Homemaker Services and Elder Protective Services budget in the Division of Aging Services. The Executive Budget had overstated the transfer of Title XX to this program by $86,334 in FY 2000 and by $83,877 in FY 2001. The subcommittee corrected that error and also added a new expenditure category for the Division of Aging Services of $27,285 in FY 2000 and $31,701 in FY 2001. The budget recommended Title XX revenue in that account, but did not include a transfer out of the Title XX budget. While the net adjustments to the Governor’s recommended budget for Homemaker and Elder Protective Services appears as a reduction on the closing sheets of $27,285 in FY 2000 and $31,701 in FY 2001, in reality the subcommittee increased funding for Nevada’s seniors and adults with disabilities by $59,049 in FY 2000 and $52,176 in FY 2001.

The subcommittee made no adjustments to this budget and closed it as recommended by the Governor.

In closing this budget, the subcommittee increased the Child Care Development Fund support of the budget by $24,239 in FY 2001 to equal the recommended amount of $505,098 in FY 2001. General Fund support was reduced by $24,239 in FY 2001. The subcommittee also reduced media services contract expenditures by $37,500 in each year of the biennium. The budget included $75,000 in each year of the biennium for these expenses, which was reduced by one-half. General Fund support was similarly reduced by $37,500 in each year of the biennium.

As noted earlier, this is a new account recommended to isolate all costs related to the program into a separate budget account. The subcommittee reduced in-state travel for staff by $2,950 in each year of the biennium, leaving $5,000 in each year. The subcommittee also approved the Governor’s recommendation to continue grants to local Family Resource Centers of $1,320,792 in each year of the biennium. Actual expenditures in FY 1998 totaled $1,320,674. The subcommittee also agreed to issue a letter of intent requiring the department to report to the Interim Finance Committee annually concerning the expenditure of all funds during the preceding year for the Family Resource Centers. This requirement was first initiated in the 1995 Legislative Session.

As recommended by the Governor, the subcommittee approved funding for a new Deputy Public Defender position to provide services to Carson City and Storey County. The position will be funded entirely through county fees paid by Carson City and Storey County.

The Executive Budget included alternate proposals for providing the services of the office to Lander County. One proposal would have housed a new Deputy Public Defender in the Winnemucca office and would have provided funding for travel to Lander county during the week. The other proposal would have provided an office in Lander County with a Deputy Public Defender and a half-time secretary position. Although the subcommittee approved the proposal that included opening an office in Lander County, the State Public Defender has indicated that Lander County has since decided not to use the services of the Public Defender’s office. Based upon Lander County’s decision, both proposals for providing services to Lander County have been eliminated.

In summary, the subcommittee’s actions result in a total General Fund decrease of $40,266 in FY 2000 and $63,934 in FY 2001.

MS. GIUNCHIGLIANI MOVED TO ACCEPT THE SUBCOMMITTEE’S RECOMMENDATION.

MRS. CHOWNING SECONDED THE MOTION.

THE MOTION CARRIED. (MR. PERKINS WAS ABSENT AT THE TIME OF THE VOTE).

MS. GIUNCHIGLIANI MOVED TO REOPEN THE BADA BUDGET FOR THE PURPOSES NOTED BY MRS. CHOWNING.

MR. GOLDWATER SECONDED THE MOTION.

THE MOTION CARRIED. (MR. PERKINS WAS ABSENT AT THE TIME OF THE VOTE).

MRS. CHOWNING MOVED TO ADD $500,000 IN MAXIMUS REVENUE IN EACH YEAR OF BIENNIUM TO THE BADA BUDGET FOR ADOLESCENT TREATMENT SERVICES IF THE MAXIMUS REVENUES BECOME AVAILABLE. IF THE MAXIMUS REVENUES DO NOT BECOME AVAILABLE, THERE WOULD BE NO FUNDING ADDED TO THE BADA BUDGET.

MR. PRICE SECONDED THE MOTION.

THE MOTION CARRIED. (MR. PERKINS WAS ABSENT AT THE TIME OF THE VOTE).

MS. GIUNCHIGLIANI MOVED TO CLOSE THE BADA BUDGET ACCOUNT.

MRS. CEGAVSKE SECONDED THE MOTION.

THE MOTION CARRIED. (MR. PERKINS WAS ABSENT AT THE TIME OF THE VOTE).

The following accounts were closed by the Joint Subcommittee on Public Safety, Natural Resources and Transportation on April 8, 1999.

This budget account was created in the 1997 Legislative Session to allow the Department of Motor Vehicles and Public Safety (DMV/PS) to correctly allocate information services costs among their user agencies. During the 1997-1999 biennium, the department was to directly charge costs for programming the network to the appropriate user agency. This was not done. The subcommittee voted to provide a letter of intent requiring the department to report to the Interim Finance Committee (IFC) in May of each year on how the resources in this account were utilized and how the services were charged to the user accounts. The subcommittee also voted to continue the language in the appropriations act to allow the director to transfer authority among budget accounts as needed to support payments to this account for services received. Budget authority transfers could only occur between "like-funded" accounts (i.e. Highway Fund of General Fund). Due to the projected 148 percent ($226,651) increase in the projected telephone circuit costs, the subcommittee voted to place the circuit cost charges in a separate category and provide a letter of intent specifying only telephone line/circuit costs could be charged to that category. Executive Budget Modification 99, which properly divided and funded the costs between General Fund activities and Highway Fund activities, was also recommended for implementation.

The subcommittee agreed with the Governor’s recommendation to combine the two Emergency Management accounts (Budget Accounts 3601 and 3659) into one account (Budget Account 3673). Historically, activities funded through a 100 percent federal grant were recorded in one account and the activities that required a grant match were recorded in the second account. Due to changes in federal regulations, most federal emergency management grants require a cash match. The Executive Budget recommended the additional cash match and the subcommittee agreed with the Governor’s recommendation. The subcommittee also recommended returning a Grants Financial Management position to this account. The position was transferred to the Administrative Services Division to implement a centralized grant management function. Since the Administrative Services Division is no longer providing centralized grant management, the position was returned to the Emergency Management account. The subcommittee approved replacing one clerical position with a half-time Communications Systems Specialist. The Communication Systems Specialist is needed to coordinate HAM radio operators to be used in the event of a disaster. A total of $45,005 in General Fund was eliminated in FY 2000 and $2, 598 was added in 2001.

The decision unit is currently authorized for one lieutenant, one sergeant, and six troopers. Normal command structure for the Highway Patrol is one sergeant for nine troopers and one lieutenant to six sergeants. Based on the high level of supervision currently funded in the unit, the subcommittee recommended to eliminate the lieutenant position currently authorized for the dignitary protection unit. This change resulted in a reduction of $79,000 in General Fund appropriations in each year of the biennium.

The subcommittee made technical changes to correct the level of grant award, the method of funding the grant, and eliminate the balance forward of federal grant cash. The subcommittee also eliminated the $80,000 Highway Fund appropriation each year that had been recommended to provide startup funds. It is not generally the state’s practice to provide cash for 100 percent federally funded activities.

The subcommittee recommended adjustments to this account to implement Budget Modification 66. The transfer to the Nevada Division of Investigation (NDI) accounts for grant match and computers was adjusted to reflect the NDI closing.

The subcommittee agreed with the Governor’s recommendation to make this a self-funded budget through licenses and fees charged to the Fire Protection Industry and through plan review check fees. Even though technical corrections to the budget were made that reduced expenditures by approximately $20,000 in each year of the biennium, the Fire Marshal account was not fiscally sound. The subcommittee voted to increase the Fire Marshal’s fees by 10 percent across the board. The Budget Division had since provided a memorandum indicating this fee increase would be consistent with the Governor’s policy on fee increases.

The subcommittee approved the Governor’s budget with technical adjustments. In response to the Clark County Commission’s report on workplace safety and the department’s analysis regarding additional staffing, the subcommittee authorized two new inspector positions (Deputy State Fire Marshal I). The positions will be funded by the fees collected when they discover an establishment storing hazardous materials that does not hold a permit. The subcommittee recommends a letter of intent to report semi-annually to the IFC on the amount of fees collected. It is the subcommittee’s intent that the positions be self-supporting. If the positions cannot generate sufficient fee revenue to pay for their costs, the positions should be eliminated in the next biennial budget.

BUDGET PAGE DMV – 238

The subcommittee voted to close this account in accordance with the recommendations of the Governor.

MR. MARVEL MOVED TO ACCEPT THE SUBCOMMITTEE’S RECOMMENDATIONS.

MRS. de BRAGA SECONDED THE MOTION.

THE MOTION CARRIED. (MR. PERKINS AND MR. PRICE WERE ABSENT AT THE TIME OF THE VOTE).

In closing the Department of Motor Vehicles and Public Safety, Motor Vehicles Branch budgets, the Joint Subcommittee on Public Safety, Natural Resources and Transportation had two primary issues that impacted all accounts within the Motor Vehicle Branch—staffing and reorganization.

The Motor Vehicle Branch requested a total of 50 new positions over the biennium in five accounts. The subcommittee considered the projected impact of Project Genesis on the long-term and short-term staffing needs of the Motor Vehicle Branch. In the long-term, FY 2001 and beyond, the efficiencies gained through Project Genesis and alternative technologies will generate excess staff capacity. In the short-term, Project Genesis’ requirements for staff to test, train, and implement the new system are creating significant hardship. The subcommittee learned that as of March 8, 1999, 85 of the 825 positions authorized for the Motor Vehicle Branch were vacant and 19 positions authorized by the 1997 legislature had never been filled. The subcommittee determined a better alternative would be to not authorize any additional positions, eliminate $1 million in vacancy savings, and instruct the department to fill the 83 existing vacant positions as quickly as possible. This will provide the department with immediate resources to meet both customer service and Project Genesis staffing needs. To provide maximum flexibility for the department to meet their staffing needs, the subcommittee voted to include language in the appropriations act to allow the department to come to the Interim Finance Committee to move and reclassify staff as Project Genesis stabilizes and staffing needs are better known.

The department provided revised organization charts and performance indicators for the proposed new budget accounts. The department was unable to determine the final costs of the reorganization because the pay grades for the supervisor positions had not been determined. The worst-case scenario, which would involve all team leaders receiving a 10 percent pay increase, would cost in excess of $400,000 each year. The best-case scenario requires approximately $100,000 each year for pay-grade increases related to the reorganization. Because of the unknown cost and questionable benefit, the subcommittee voted not to recommend the reorganization.

Finally, throughout the closing sheets, the committee members will see adjustments in decision unit E-805 to reflect the cost of the NPD-19 classification study. The department of personnel completed a classification study in the last part of calendar year 1998. Although the study has not been formally approved, it appears it will be placed on the Interim Finance Committee’s June agenda. Anticipating approval of the classification, the results were included in the budgets. The total cost of the reclassification study is $2.1 million in FY 2000 and $2.5 million in FY 2001.

The subcommittee made the following specific recommendations on budget accounts:

In accordance with the discussion in the overview, the subcommittee recommends elimination of the staff in decision units M-200, M-201, and M-202. Since all new staff were eliminated, the subcommittee recommended reducing the vacancy savings included in the base budget by $1 million each year.

As discussed above, the subcommittee eliminated the additional staff that had been recommended in this budget account and recommends providing authority in the appropriations act to allow the department to transfer staff between the budget accounts. Decision unit E-125 recommends a Highway Fund appropriation to cover the additional cost of digitized photo licenses. Traditionally, the department has charged the cost of the photo back to the license holder. The subcommittee elected to continue to collect the cost of the photo licenses and request a bill to increase the maximum amount of fees that can be established by the department. Assembly Bill 678, which allows the department to receive and store digitized drivers license images, can be amended to include the authority to increase the fees.

Although the subcommittee did not generally recommend any additional positions for the department, they did recommend continuing two Program Assistant positions that were authorized by the 1997 legislature but are scheduled to "sunset" on June 30, 1999. These positions were authorized to reconcile the monthly reports of the special fuel suppliers, transporters, and exporters to ensure that taxes on special fuels are properly calculated and paid.

Consistent with the discussion in the overview, the subcommittee did not approve the additional positions recommended in The Executive Budget for this account. In addition to technical changes in costs, they voted to decrease the travel and training recommended in decision unit E-175 by the amounts already included in the base budget, which reduced the funding by $11,215 in each year of the biennium.

BUDGET PAGE DMV – 73

The subcommittee did not approve re-implementation of the Visible Smoke Enforcement Program recommended in decision unit E-126. The department testified the Visible Smoke Enforcement Program would have minimal impact on air quality. This eliminated $302,231 in FY 2000 and $234,000 in FY 2001. Enhanced funding for other state agencies and activities was approved as recommended in decision unit E-375. The subcommittee recommended an amendment to Senate Bill 511 to sunset the enhanced funding authority at the end of FY 2001.

DMV, PROJECT GENESIS – BUDGET PAGE DMV – 80

This account was created to identify all costs associated with the development and implementation of Project Genesis. The account will be eliminated at the end of the 1999-2001 biennium. The subcommittee recommended the budget be approved as recommended in The Executive Budget with the reduction of the reorganization costs, since the subcommittee did not recommend the reorganization.

The subcommittee recommended closing the budget with technical adjustments to eliminate equipment funded in the Project Genesis "one-shot" and to implement Modification 39 to The Executive Budget.

Since the subcommittee did not recommend the reorganization, these accounts will be eliminated.

MR. MARVEL MOVED TO ACCEPT THE SUBCOMMITTEE’S RECOMMENDATION.

MR. DINI SECONDED THE MOTION.

THE MOTION CARRIED. (MR. PERKINS AND MR. PRICE WERE ABSENT AT THE TIME OF THE VOTE).

On April 14, 1999 the Joint Subcommittee on Public Safety, Natural Resources and Transportation met to close the following budgets for the Department of Motor Vehicles and Public Safety (DMV/PS), Public Safety Branch:

The subcommittee voted not to transfer the three Highway-Funded Bureau of Enforcement positions to the Registration Division. This decision will allow the department to centralize all criminal investigations in one division. The subcommittee also discussed the value of the Vehicle Investigation Project for Enforcement and Recovery (VIPER) program that was eliminated in the base budget in The Executive Budget. The Assembly members of the subcommittee voted to provide a letter of intent to the department to revise the program and return to the Interim Finance Committee (IFC) for possible funding from the Contingency Fund.

The Director’s Office budget was adjusted in decision unit E-126 to authorize the purchase of two full-sized sedans for the Director and Deputy Director of Public Safety. The Executive Budget had recommended one-quarter of the cost of each new vehicle be transferred to the Highway Patrol each year of the biennium. The subcommittee also voted to eliminate the Management Analyst III position recommended in decision unit E-126. The subcommittee noted that an existing Administrative Officer III (grade 41) was justified to assist with the planning and research functions of the Director’s office. While additional staff for the function was justified, the level of staffing recommended in The Executive Budget was not supported. One Management Analyst II was recommended to assist in planning and research. The recommended funding for overtime in
E-197 was eliminated because this account has not historically been funded for non-holiday overtime pay. Equipment was reduced or eliminated in response to a letter from the department indicating the items were no longer necessary. The subcommittee supported the Governor’s recommendation to formalize the Internal Affairs Unit, but recommended the unit be established in a separate budget account to aid in cost allocation.

As previously stated, this account (Budget Account 4714) was established to formalize the Internal Affairs Unit in a separate account to aid in cost allocation.

The subcommittee recommended correction of the funding in the base budget and reduction of overtime to the amounts originally requested by the department. Technical adjustments were made to adjust inflation calculations, revised prices, and executive budget modifications. In accordance with the letter of intent provided by the 1997 money committees, decision units E-810 through E-819 were added to allow the division to direct charge costs whenever possible. These decision units transfer the costs associated with insurance, postage, and rent to the account which generated the costs. The subcommittee also recommended adding $45,000 to complete a cost allocation study to appropriately allocate the cost of the Director’s office and administrative services between Highway Fund, General Fund, and other funds. The subcommittee recommended a letter of intent to have the department report the results of the study to the IFC in June 2000. This would ensure the study was completed in sufficient time to allow the department to use the results in developing the 2001-2003 biennial budget. In accordance with the closing of the Emergency Management budget, the subcommittee added decision unit E-950 to transfer the grant accounting position back to the Division of Emergency Management.

The subcommittee agreed with the recommendations included in Senate Bill 68 to make Peace Officers Standards and Training (POST) a stand-alone agency. The subcommittee recommended adding a position, with related equipment and operating costs, to complete the administrative functions required of a stand-alone agency. The costs identified in the fiscal note to Senate Bill 68 were also added to the budget. If Senate Bill 68 does not pass, the budget will need to be amended to eliminate the added costs.

The subcommittee generally agreed with the recommendations of The Executive Budget to transfer all primarily training related positions and costs to a training division. The subcommittee did not agree with the transfer of the word processing operator from the Division of Parole and Probation to the Training Division. The department indicated this position was not primarily training related and would possibly be requested for replacement in the next biennial budget.

On April 29, 199 the subcommittee met to close the following budgets:

The subcommittee voted to reduce vacancy savings in base by one-half, approximately $416,000, each year of the biennium to reflect the public safety nature of the Highway Patrol. The subcommittee reviewed the staffing formulas provided by the department for the urban, commercial, and rural areas. While utilization of the formula did not produce unreasonable staffing formulas, the subcommittee was concerned about the quality of data provided by the department. For example, the information provided by the department indicated that for the 5 month period ending February 28, 1999, the average southern command trooper spent 27 hours to handle a fatal accident while the northern command trooper spent an average of 70 hours to handle a fatal accident. The subcommittee voted to approve the staffing recommended in The Executive Budget after the adjustment to correct the application of the formula, with a letter of intent to have the Highway Patrol provide monthly reports to the Fiscal Analysis Division to review the staffing formula impacts. Both the subcommittee and the Highway Patrol noted that after the troopers recommended in decision unit E-376 are approved, no additional troopers will be needed in rural areas unless more roads are built or the speed limit changes. The Highway Patrol was authorized a total of 23 new positions over the biennium.

The subcommittee also removed the funding for the cost of a second facility in Las Vegas. A new Public Safely building is recommended in the CIP list for the Highway Patrol. This building is scheduled for completion in December 2001. The Highway Patrol indicated it could operate for the additional time without too much difficulty. The Snow Cat recommended in decision unit E-720 was also eliminated by the subcommittee because the department indicated it could share with other agencies. In total, the Highway Fund appropriation for the Highway Patrol was reduced by $1,345,879 in FY 2000 and $590,218 in FY 2001.

The following budgets were closed as recommended by the Governor with technical adjustments:

The committee should be aware that revised costs for police/fire physicals were recently received. Staff will adjust the cost of physicals when adjusting the statewide cost allocations.

MR. MARVEL MOVED TO ACCEPT THE SUBCOMMITTEE’S RECOMMENDATIONS.

MR. GOLDWATER SECONDED THE MOTION.

THE MOTION CARRIED. (MR. PERKINS WAS ABSENT AT THE TIME OF THE VOTE.)

MR. MARVEL MOVED TO ACCEPT THE SUBCOMMITTEE’S RECOMMENDATIONS.

MR. HETTRICK SECONDED THE MOTION.

THE MOTION CARRIED. (MR. PERKINS WAS ABSENT AT THE TIME OF THE VOTE).

The Joint Subcommittee on K-12, Human Resources has concluded its review of the budget accounts of the Department of Education and recommends approval of the changes contained in this report. The Ways and Means committee has already closed eight of the agency’s budget accounts that were on the "consent" list. After the full committee closes these 13 budget accounts, only two of the department’s budget accounts will remain open: the Distributive School Account and the Trust Fund for Class-size Reduction.

These closings incorporate updated projections of federal grant revenue and estimated amounts of federal money that will be available to be balanced forward to the next fiscal year. In closing the federally funded accounts, excess administrative cost allowances have been passed through to school districts rather than held in reserve; aid to schools has been maximized whenever possible. Fiscal staff has recalculated the salaries of positions in which the pay grade and step of the incumbent differs from the grade and step presented in the Governor’s budget.

The Executive Budget recommended deleting 10.75 positions and creating 3 new positions, for a net loss of 7.75 positions. Agency-wide, the Governor’s recommendations totaled 111 positions; however, the subcommittee recommends totals of 113.26 and 112.52 FTEs in the first and second years of the biennium, respectively. The Governor did not fund two education consultants and a half-time secretary (2.5 FTEs) added by A.B. 266 of the 1997 Legislative Session for programs for American Indian and other culturally diverse pupils because the 1997 legislature had specified that the positions would be evaluated before continued funding was approved. After receiving testimony from the two employees and reviewing the required reports, the subcommittee recommends adding these positions back into the department’s budget.

The Assistant Director and two half-time support positions for School-to-Careers and one Occupational Education Consultant for business/marketing were scheduled to be phased out in The Executive Budget. The subcommittee restored the Occupational Education Consultant but funded the position entirely with federal money; the position had previously been split 50/50 between state and federal funds. The department admitted their School-to-Careers budget request had been "out of sync" with the grant funding, and they recently submitted a request to continue all three School-to-Careers positions throughout the next biennium. Instead, the subcommittee recommends the Assistant Director be continued but reduced to half- time in FY 2000-2001 and eliminated at the end of FY 2000-2001. The half-time Grants Analyst will be eliminated on June 30, 1999 and the half-time secretary will be reduced to quarter-time in FY 1999-2000 and eliminated altogether at the end of FY 1999-2000.

Due to declining federal funds, The Executive Budget reduces from full- to half-time a secretary in the Comprehensive Health-Aids Education program. The Governor also deleted a quarter-time secretary, which was added in 1995 for the Science Consultant but was vacant for most of the four years the position existed. Three positions authorized by the 1997 legislature but never filled were also eliminated: two positions for the Standards-Based Testing Program and one for remedial education programs. In addition, 1.5 positions funded by the federal English Language Arts Grant were scheduled for elimination at the end of FY 1998-1999.

New positions recommended by the Governor included: a half-time consultant and quarter-time secretary for school violence; a half-time consultant and quarter-time secretary for homeless and immigrant children; a half-time consultant for migrant and bilingual programs; and a Management Analyst III to establish internal controls and incentives to recruit and retain employees. While the subcommittee recommends adding the federally funded positions for both the migrant and bilingual and the homeless and immigrant programs, there was insufficient federal funding to support the .75 positions recommended in the Drug Abuse Prevention budget. Instead, the subcommittee suggests adding only a .25 consultant to work on school violence. The new Management Analyst III is not recommended by the subcommittee because the department is now predicting a shortfall in indirect cost collections of approximately $300,000 in each year of the coming biennium.

To resolve this revenue problem, the department suggested transferring six positions from the budget account supported by indirect costs assessed against other budget accounts to a state-funded account. Instead, the subcommittee makes the following recommendations to reduce expenditures in the Indirect Cost account: transfer one-half of the Deputy’s secretary into the Education State Program budget account so her position is funded in the same manner as her supervisor; eliminate the Accounting Clerk III added by the 1997 legislature for the department’s Las Vegas office that has never been filled; and delete out-of-state travel and replacement equipment in the Indirect Cost account.

Although these changes only save $85,175 in FY 1999-2000 and $95,703 in FY 2000-2001 and the department estimates a shortfall in this budget of approximately $300,000 per year, revenue from indirect costs will probably increase. New programs added by the 1999 legislature for which indirect costs are assessed will help increase revenue to this budget. New federally funded programs and increases in spending levels of federal programs will also raise indirect cost revenue. If, however, indirect cost revenue is insufficient, the department will have to reduce costs in this budget. Since most of the costs are related to positions, the agency may be faced with laying off employees or transferring positions to other budget accounts.

The subcommittee recommends a letter of intent requiring the department to report quarterly to the Interim Finance Committee (IFC) on the status of this account’s revenue, expenditures, and any changes needed in positions. The agency should refrain from filling vacancies or reclassifying positions in this account until revenue projections indicate that sufficient funds will be available. If sufficient revenue is available, the agency might request that the IFC restore some of these cuts. The letter of intent will also require the department to follow the Budget Division’s directive to "book" all federal authority in the state’s accounting system and utilize excess administrative cost allowances for teacher training or aid to schools rather than holding funds in reserve.

Other letters of intent would direct the department to continue reporting to the IFC on out-of-state travel and out-of-district placements of handicapped children. The department would also be directed through letters of intent to help school districts adopt effective drug-abuse prevention programs and evaluate those programs; to report on assistance and training in school finance offered to school districts; and to work with districts to solve problems with the administration of the state’s writing exams.

Funding has been added by the subcommittee to cover the operating expenses of the Commission on Educational Technology and the Council to Establish Academic Standards, both of which were created by the 1997 Education Reform Act and are continued through the next biennium. The subcommittee added $7,640 in the first year and $10,696 in the second year to pay travel expenses and the cost of substitutes for out-of-district teachers assigned to panels that supervise low-performing schools placed on academic probation.

The Executive Budget recommends the Teacher Education and Licensing Account become self-supporting in the second year of the biennium by means of a $15 fee increase. Since existing law establishes a minimum, not a maximum, licensing fee, a bill is not necessary to increase fees. Licensing fees are established by regulations of the Commission on Professional Standards in Education, and the commission has scheduled a hearing on May 7, 1999 to adopt the necessary regulation changes.

Finally, several changes were made to simplify accounting. Several small, federally funded programs with unrestricted cost rates are separated from programs with restricted cost rates and transferred into another budget, and small state-funded programs are consolidated into the Other State Programs account. Programs with restricted indirect cost rates are not permitted to pay certain costs through an indirect cost rate, notably rent.

Two state-funded programs were placed on the add back list: Early Childhood Education ($500,000 each year) and School-to-Careers ($1 million each year). Funds were added to support educational programs concerning the Holocaust and to renovate seven more classrooms (buses) for the Classroom on Wheels (COW) program, which serves preschoolers and their parents.

The total amount of General Fund added to the Department of Education is $537,339 in FY 1999-2000 and $285,459 in FY 2000-2001, for a total of $822,798 for the biennium.

MR. DINI MOVED TO ACCEPT THE SUBCOMMITTEE’S RECOMMENDATIONS.

MRS. CHOWNING SECONDED THE MOTION.

THE MOTION CARRIED. (MR. PERKINS WAS ABSENT AT THE TIME OF THE VOTE.)

MS. GIUNCHIGLIANI MOVED TO CLOSE BUDGET ACCOUNT 1000 AT STAFF’S RECOMMENDATION.

MR. PARKS SECONDED THE MOTION.

THE MOTION CARRIED UNANIMOUSLY.

MS. GIUNCHIGLIANI MOVED TO CLOSE BUDGET ACCOUNT 1343 AT THE REVISED GOVERNOR’S RECOMMENDATION MAKE ADJUSTMENTS BASED ON WHAT HAPPENED WITH S.B. 478.

MR. MARVEL SECONDED THE MOTION.

THE MOTION CARRIED UNANIMOUSLY.

MR. MARVEL MOVED TO CLOSE BUDGET ACCOUNT 1130 AT THE GOVERNOR’S RECOMMENDATION WITH THE TECHNICAL ADJUSTMENTS, WITHOUT THE ADDITIONAL TWO POSITIONS REQUESTED.

MRS. de BRAGA SECONDED THE MOTION.

THE MOTION CARRIED UNANIMOUSLY.

MR. PARKS MOVED TO CLOSE BUDGET ACCOUNT 1050 AT STAFF’S RECOMMENDATION.

MR. DINI SECONDED THE MOTION.

THE MOTION CARRIED UNANIMOUSLY.

MR. BEERS MOVED TO CLOSE BUDGET ACCOUNT 1080 STAFF’S RECOMMENDATION.

MR. HETTRICK SECONDED THE MOTION.

THE MOTION CARRIED. (CHAIRMAN ARBERRY, MS. GIUNCHIGLIANI, AND MR. PERKINS WERE ABSENT AT THE TIME OF THE VOTE).