The Joint Committee on Ways and Means Senate Finance was called to order at 9:25 a.m., on Tuesday, May 18, 1999. Chairman Morse Arberry Jr. presided in Room 1214 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.

ASSEMBLY COMMITTEE MEMBERS PRESENT:

Mr. Morse Arberry Jr., Chairman

Mr. Bob Beers

Mrs. Barbara Cegavske

Mrs. Vonne Chowning

Mrs. Marcia de Braga

Mr. Joseph Dini, Jr.

Ms. Chris Giunchigliani

Mr. David Goldwater

Mr. Lynn Hettrick

Mr. John Marvel

Mr. David Parks

Mr. Richard Perkins

Mr. Robert Price

Senator William Raggio, Chairman

Senator Ray Rawson, Vice-Chairman

Senator Bob Coffin

Senator Lawrence Jacobsen

Senator Bernice Mathews

Senator Joe Neal

Senator William O’Donnell

COMMITTEE MEMBERS ABSENT:

Mrs. Jan Evans, Assembly Vice Chair (Excused)

STAFF MEMBERS PRESENT:

Chairman Arberry called the meeting to order and noted after roll call that a quorum of both committees was present. He announced the Washington Office would be discussed at the end of the hearing.

Mark Stevens, Fiscal Analyst, Legislative Counsel Bureau, stated the difference in the Senate and Assembly closings of Budget Account 1020 was found in decision unit E-125 where the Assembly closed the budget with the elimination of the recommended new position.

The Assembly committee noted that in 1997 the legislature provided one additional position for the Lieutenant Governor and the office currently had five support staff, which the committee felt was sufficient.

Dan Miles, Fiscal Analyst, Legislative Counsel Bureau, explained the Senate Finance Committee went with the Governor’s recommendations and retained the position. Mr. Miles stated the Senate was told that the additional position would allow the Lieutenant Governor’s office to have three staff positions in the south and three in the north.

Speaker Dini stated it was his understanding that the Lieutenant Governor wanted the additional staff for assisting and reaching out to the rural areas.

Mr. Miles notified the Assembly that the Senate Finance Committee had closed the Budget Account 1080 the previous afternoon. The Senate Finance Committee had closed the budget in the manner of the Assembly Ways and Means Committee but with an addition of $150,000 in each year of the biennium for costs associated with the Allodial Title program.

Senator Raggio stated the Ways and Means Committee might remember that during the 1997 legislature a bill was passed that authorized the Allodial Title Program. The Allodial Title Program allowed payment of taxes on real property in advance and set up a situation where ultimately the property would not experience any tax debt. A fund would be created from the income.

Senator Raggio stated the measure passed out of the 1997 legislature, however, the Treasurer’s Office budget did not provide for the positions necessary to set up the program. Approximately 180 landowners were waiting for the program to begin. He stated the $153,000 each year was the amount necessary in the Treasurer’s Budget to begin the program and included additional personnel.

Senator Rawson noted the proposed funding would be a loan because once the program was in place, the income from the program would repay the loan.

Senator Raggio asked Senator Rawson to explain the purpose of the Allodial Title Program again. Senator Rawson stated the term was a French word that essentially gave a person full title to their land. Once that occurred the property could not be taxed or have a lien placed against it or taken away in judgement.

To obtain Allodial Title the landowner had to pay 10 years of property tax in advance. Those funds would be placed in a trust account and from that point on the property was never taxed. The program was an advantage for persons experiencing hard times and senior citizens because their home would be safe.

Senator Raggio noted money in the trust fund would provide the equivalent of taxes paid in the future. The taxing authority would never lose any money. Senator Rawson added the program worked like a homestead but without certain limits.

Chairman Arberry noted the discussion was the first time the Assembly had heard of the budget change so a hearing would be scheduled as soon as possible.

Senator Raggio declared the issue was not heard in the sense of being new legislation because it had passed during the previous legislative session.

The budget was held until the Assembly Ways and Means Committee could take testimony on the issue.

Mr. Stevens stated the major difference between the Senate and Assembly on Budget Account 1130 was an issue of two additional positions. A memo had been received from the Budget Division approximately 2 weeks previous requesting that the committees consider two additional positions in the Controller’s Office.

The Executive Budget originally contained five new positions related to the Integrated Financial System (IFS). The Assembly closed with the requested five positions, but not the two additional positions requested by memo.

Mr. Miles stated the Senate Finance Committee had added the two positions at the request of the Governor’s Office for the Integrated Financial System and also for the additional responsibilities in the area of accounts receivable.

Assemblywoman Giunchigliani asked if a bill had been drafted to consolidate the office. Senator Raggio replied the reason Senate Finance added the positions was two-fold. One reason was for the IFS module. The other was because as a result of the legislative audit. There was an extraordinary amount of funds not collected by the state accounts receivable section. The Senate processed the bill, which dealt with the issue and required the Controller’s Office, in essence, to pursue the uncollected accounts.

There had been a higher estimate from the Controller’s Office of funding that would be needed to meet the audit and IFS recommendations. The Senate had requested the Budget Office to review the request and the Budget Office/Governor came back and authorized a request for the two positions.

Assemblywoman Giunchigliani asked if, by the Controller’s Office having the two positions to make collections, the positions would pay for themselves through newly collected revenue. Senator Raggio replied that was what the Senate hoped. The Audit Division had reported a large amount of funds were uncollected. Extensive hearings had been held in the Senate Government Affairs Committee.

Assemblywoman Giunchigliani asked if a consolidation took place, would there be a commensurate reduction in funding requests down the road. She expressed concern that if staff was added and then down the road the office was consolidated, the office might become overstaffed. Senator Raggio noted the positions were needed not only for that purpose, but also with the
IFS system.

Assemblyman Marvel stated he felt the Audit Subcommittee had reviewed the audit and found there was probably between $25 and $50 million in uncollected accounts receivable. He did not know how much was collectable and asked if the computers in the Department of Taxation and Controller’s Office were in communication with each other. Senator Raggio stated the Controller was present if the Assembly members wished to hear further testimony.

Speaker Dini noted the two additional positions might be a good bargain if the state spent $135,000 over 2 years and collected from $2 to $4 million. He would want to be assured the Controller’s office had the ability to set the project into motion and make the collections.

Chairman Arberry stated the development was news to Assembly members and asked that Budget Account 1130 be held pending a hearing on the Assembly side.

Mark Stevens stated the only difference in Budget Account 2361 was that the Senate closed with a letter of intent requesting the Department of Taxation obtain a third party independent review of results and recommendations from Phase I of the Business Process Reengineering Study.

Dan Miles explained Senate Finance closed the budget exactly as the Assembly Ways and Means Committee had except for the letter of intent.

The Assembly Ways and Means members concurred with the Senate closing of Budget Account 2361 to include the letter of intent.

Mr. Stevens stated the major differences in Budget Account 4540 were that the Senate closed to include the revised recommendations from the Governor on a number of programs related to funding for killer bees, a fire ant survey, and some funding for the wild horse facility in Carson City. The Assembly committee had not taken that into consideration because the budget was closed before the revision was received.

Mr. Miles stated the revised budget was a late request from the Governor’s Office that contained one position for the Africanized Honey Bee Program, some seasonal positions for the fire ant problem, and one half-time position, as well as operating and travel costs to support the additional positions. The request also included $25,000 each year of the biennium to purchase hay for the estray horses in Carson City.

Senator Raggio stated the Senate had presentations on the problem in Southern Nevada that had come to light and the Governor’s Office and the committee felt the state should take responsibility for the projects. He added the bees and ants being discussed were not mere bees or ants, they caused devastating problems.

Senator Raggio noted someone had asked if the hay for the horses could be funded through the Heil Fund, but the horses that were in need were estrays, thus Heil funds could not be used.

Senator Rawson stated during the time the Senate was considering the revised budget a swarm of killer bees was found on Fremont Street in Las Vegas and the general sense was that the issue could be catastrophic to the economy.

Mr. Stevens stated the issue within Budget Account 1526 was that two different letters of intent were included in the Senate and the Assembly closings. The Washington Office was also at issue in that particular budget.

The Assembly letter of intent recommended the Commission on Economic Development increase the average wage on the Train Employees Now (TEN) program from 75 to at least 80 percent of the statewide county average wage to make an incentive consistent with other programs offered by the commission.

Senator Raggio stated the Senate letter of intent would allow the funds to be carried forward from the first year of the biennium to the second. He stated perhaps both letters of intent could be agreed to.

Senator Raggio affirmed the TEN funds could be added to the Appropriations bill rather than through a letter of intent.

Chairman Arberry agreed with Senator Raggio and added the budget was still on hold because of the Washington Office issue. That budget would also affect the Tourism Commission budget.

Mr. Stevens stated when the Assembly Ways and Means Committee closed Budget Account 1522 it looked at the actual room tax collections to-date in the current fiscal year and compared that to what was included in The Executive Budget. In the budget room tax collections were projected at 3 percent for the current year, 3 percent in the first year of the biennium, and 4.5 percent in the second year of the biennium. At the time of Assembly action, the collections year-to-date were at 4 percent.

The Ways and Means Committee increased the projected collections in the budget to 4 percent in the current fiscal year and retained the revenue projections for each year of the coming biennium. The change generated $256,000 in additional revenue over the 3-year period.

In addition, the reserve level in The Executive Budget was at $1,133,000 and the Commission on Tourism indicated in testimony that they needed a minimum of $1 million in reserve. The Assembly reduced to the reserve budget to
$1 million and added the additional $133,000 to the anticipated increase in room tax revenue. The Assembly committee voted to use the additional revenue to provide $193,000 in the first year and $197,000 in the second year of the biennium to augment maintenance fund projects within the Division of State Parks. Projects would be done at the Spring Mountain, Lahontan, Lake Tahoe and Valley of Fire State Parks. A few smaller projects were also included on the list.

Mr. Miles stated Mr. Stevens had explained the differences in the budget exclusive of the Washington Office issue.

Senator Raggio asked if Mr. Stevens was saying that more money was projected to be received from room tax. Mr. Stevens responded The Executive Budget projected room tax revenue at a 3 percent increase for the current fiscal year. When the Ways and Means Committee closed the budget the actual room tax experience for the first 7 months of the current fiscal year was 4 percent. The committee projected a 4 percent increase for remainder of the current fiscal year and used the same growth rates of 3 percent and 4.5 percent in each year of the biennium. Only the base year revenues were increased due to the actual 7-month experience.

Senator Raggio asked if Senate Finance committee members were comfortable with the changes to include increased room tax revenue and directed the funds to State Parks maintenance projects. He recalled the original list of needs from State Parks had been over several million dollars. Mr. Stevens commented the additional revenue from the Tourism budget was only a beginning on the needs of the park system.

Senator Coffin asked if that action meant the legislature was giving a little higher assumption to the room tax receipts than the Economic Forum did.
Mr. Stevens explained the Economic Forum only projected General Fund dollars. Room tax did not go to the General Fund. Senator Coffin noted the Economic Forum looked at gaming activity and that activity was closely related to room tax revenue. He stated he would support the motion. Mr. Stevens explained the Assembly had not tried to link the room tax growth to the percentage fee collections growth with the Economic Forum.

THE MOTION PASSED UNANIMOUSLY.

Chairman Arberry noted the budget would continue to be held until the Washington Office issue was resolved.

Mr. Stevens noted a couple of items in Budget Account 3235 appeared as differences but really were not. There did not appear to be a real difference in the base budget for personnel. There was also no real difference between the closings in module E-877.

Mr. Stevens stated the actual difference appeared in module E-131, which added on the Assembly side, $20,000 in each year of the biennium for training. The $20,000 in the first year would provide a trailer at $14,825 that could be taken around the state for training purposes. The remainder of that year’s funds would be used for training costs.

In the second year the entire $20,000 would be used for training costs. The funds would allow the trailer to be taken to rural areas of the state for training in the Emergency Medical Service (EMS) program.

Chairman Arberry stated he understood the need for EMS training was very great based on the rural staff not having to travel to Carson City to receive training. It would also allow more flexibility.

Speaker Dini stated the Assembly budget closing was in line with Senator Amodei’s bill, Senate Bill (S.B.) 365, that had just passed the Assembly to improve EMS training provided to volunteers in rural areas.

Senator Raggio stated the Senate had discussed the issue and at that time there appeared to be substantial training money in the budget so the increased funding passed by the Assembly would be an enhancement.

Senator Jacobsen indicated it was imperative for the rural areas where
90 percent of the EMS staff were volunteers. There had been problems recruiting volunteers because of the dangers of hazardous materials and pathogens. Having the training available at the local level would be an enhancement to that effort.

Mr. Stevens noted the primary difference in closing Budget Account 3145 was one social worker position that Senate Finance Committee added. The position was related to S.B. 288.

Mr. Miles stated that was correct. The Senate added a Social Worker III position in conjunction with S.B. 288 that created a pilot project in foster care between the state and Washoe County to try to create a seamless foster care environment for those children who passed between the state and the county.

Assemblywoman Giunchigliani stated the bill had just been heard on the Assembly side and the Assembly was considering recommendation of an interim committee to look at the whole issue, but the position was for a pilot project. If it was for a pilot project, she asked if the intent was for the position to remain in the budget in future years.

Senator Raggio stated the pilot program, without a doubt, would be very successful so the position would stay in future budgets. He explained the children were being shoved back and forth and the project was trying to create a situation where that did not occur. Mrs. Shelton was supportive of the project. It was hoped the pilot would develop a program that would be useful elsewhere to preserve some stability in such situations.

Assemblywoman Giunchigliani stated everyone supported the pilot, the question was whether the position would continue, or based on a recommendation from the interim committee, would they have some different approaches. Senator Raggio stated the agency would have liked to have more, but the Senate had felt the pilot program deserved at least the one-position support.

Chairman Arberry stated Budget Account 3145 would be held for further discussion.

Senator Neal stated the position would depend on the best interests of the children to keep them in a stable situation.

Mr. Stevens stated the difference in Budget Account 3143 was related to the additional position in the previously discussed budget. The Senate version added some funds to the budget for computer support of the new position related to S.B. 288.

Chairman Arberry stated the budget would be held until the position issue was resolved.

Mr. Stevens stated the next three budgets were related to Assembly Bill (A.B.) 181 that would transfer the Bureau of Alcohol and Drug Abuse (BADA) to the Department of Human Resources. There were a number of positions not included in the BADA budget that worked directly for that agency.

The first of those positions was found in Budget Account 3270. The Management Analyst position monitored the grants distributed by BADA. If BADA was transferred the position should follow that budget.

Mr. Miles stated the Senate Finance Committee had scheduled A.B. 181 for a hearing on May 19, 1999.

Chairman Arberry remarked Budget Accounts 3270, 3272 and 3268 would be held until after the Senate had heard A.B. 181.

Mr. Stevens stated the first closing difference in Budget Account 3710 was that the Assembly closed with language that would not allow privatization of the prison medical or mental health services at facilities other than at the Ely State Prison.

The Senate had closed including a letter of intent that the Assembly had not considered. The letter of intent would request the Department of Prisons administration to review the feasibility of providing some type of housing for staff at the Lovelock Correctional Center and Ely State Prisons.

Mr. Miles agreed with Mark Stevens and the Senate Finance Committee had not approved with the legislation prohibiting the privatization issue within the next
2 years.

Senator Raggio commented on both differences. He felt the issues were simply a matter of semantics. The Senate Finance Committee had not wanted to support legislation that indicated under no circumstances would privatization occur. If something occurred in the interim that necessitated a move to privatization they did not want to have their hands tied to the point action could not be taken.

Senator Raggio stated the Senate had concurred that the prison medical system would be allowed to operate with a number of promises for improvements. The Senate did not want to return to the next session only to find out that all the commitments and promises that had been made had not been achieved.

While the Senate had agreed to close the budget allowing the state medical program to continue, they would not agree to something as final as legislation containing a prohibition against privatization.

Regarding the issue of housing in the remote locations, Senator Raggio explained it had seemed to the Senate there was a problem recruiting staff in those locations. Testimony had indicated if there were some state-supported dormitories or structures where staff could stay during the week and return to family at another location on weekends it might be helpful.

Chairman Arberry stated part of the Assembly concern was that it seemed there was sufficient housing in the Ely area, but there was not adequate housing in the Lovelock area. Even if a study was completed that indicated the state should provide some type of structure, there was no guarantee prison staff would want to reside in Lovelock because of other infrastructure problems. He gave as examples; no shopping or markets were available.

Senator Raggio rebutted the prison could not be torn down now that it was built so something had to be done about the problem. He noted the budget difference only concerned funding for a study. Chairman Arberry replied the Assembly did not oppose the proposed study, but some committee members felt there was sufficient housing in Ely.

Assemblywoman Giunchigliani suggested perhaps the Senate could be asked to look at housing or other recruitment problems in the study. There were other issues that related to recruitment problems. One of the issues was; need for employment for spouses.

Assemblywoman Giunchigliani stated the Public Safety Subcommittee had recommended the language regarding prison privatization. Perhaps a letter of intent could be drafted that if an emergency arose, the prison be allowed to return to the Interim Finance Committee (IFC) to make their presentation. Senator Raggio agreed with the letter of intent.

Senator Raggio stated he would entertain a motion to concur with the Assembly’s motion.

Mark Stevens stated the Assembly closed Budget Account 3761 with the recommendations of the joint subcommittee. The Senate had some additional testimony after the Assembly closed the budget.

Dan Miles stated the Senate, at the request of the Governor, had removed the Debt Service Appropriation from the Women’s privatized prison in Las Vegas. That would be moved under the proposed budget to the Bond Interest and Redemption account for payment. The action released $2.3 million of General Fund each year of the biennium. That move was based on recent refunding of bonds done by the Treasurer’s Office structured to save in the Bond Interest and Redemption Account, a little over $2 million in the next fiscal year and about $2.5 million in FY 2001. Bond redemption would become responsible for the debt of the women’s prison.

It was all part of a larger proposal from the Administration concerning other projects of the White Pine County debt and the Lincoln County School District.

Mr. Stevens stated the next group of budgets had some other differences but the primary issue was the reorganization of the Department of Motor Vehicles and Public Safety (DMV).

Mr. Stevens stated Budget Account 4740 contained a number of differences, but it all boiled down to whether the current reorganization plan brought forth by the agency was endorsed or not. The Senate endorsed the reorganization plan and the Assembly had not.

Assemblywoman Giunchigliani stated the Assembly had closed the budget very close to the Senate. The main issue was not to approve the full reorganization plan. Part of the subcommittee’s concern was that it had been a "plan in motion;" it was changing continually.

Both the Assembly and Senate money committees had closed recommending the continuation of the oversight committee from the previous interim chaired by former Assemblyman Jack Close.

Testimony had indicated Project Genesis could still move forward regardless of whether the exact reorganization plan was approved. With that opportunity, DMV could return to the IFC and make a case for the reorganization. Part of the concern was that the department had experienced four directors in recent years and the current person was acting director. If another director was appointed, they would likely want to have some say-so about ideas and staffing with some flexibility.

Senator Raggio stated while that might sound good, the state had a new Administration. The reorganization was an important part of Project Genesis. The new Governor should have an opportunity deal with the organizational problems, as he deemed necessary. It was a prime part of the Governor’s proposal, it conformed to everything being done with Project Genesis, and not approving the reorganization plan flew in the face of every effort in that regard. Time, funds and effort had been put toward those efforts. The issue called out for immediate action.

Chairman Arberry stated Budget Account 4240 would be held and proceeded to the next budget with any differences beyond the reorganization.

Mark Stevens explained Budget Account 4716 also concerned the reorganization issue but there was an additional difference in the closings as well.

The Senate Finance Committee had funded digitized photos on driver’s license with a Highway Fund appropriation. The Assembly had closed with an increase in the driver’s license fee to fund the photos

Mr. Stevens stated he understood there was a current fee plus a current photo fee for the instant-type picture currently being used.

Mr. Miles stated the Senate had used the Highway Fund to fund the new photo opportunity.

Assemblyman Marvel stated he believed the driver’s license fee would have to be greatly increased to fund the photos. He added he would concur with the Senate on the budget.

Chairman Arberry stated the problem discussed on the Assembly side was a justification of the cost of the equipment and whether over time the project would pay for itself. He added there were over 700,000 driver’s licenses. It would take years to repay the debt incurred in initiating the program.

Assemblyman Marvel stated Assemblyman Hettrick had made a good observation earlier in the day. Assemblywoman Giunchigliani responded Assemblyman Hettrick’s comments were what had caused committee members to say there needed to be answers to the questions because none of those things had been probed within the subcommittee. The budget alluded to 700,000 licenses, but as Mr. Hettrick had discovered they did not all expire each year. It was unknown how the funding would flow.

Senator Raggio asked how much of a fee increase the Assembly was recommending. Mr. Stevens replied the proposed increase would be $2 above the current fee.

Senator Raggio stated the legislature had received indications from the Governor that he would not support fee increases because they were the equivalent of a tax increase. The Senate had heeded that message.

Chairman Arberry stated the Assembly Ways and Means Committee had questioned Mr. Hataway of the Budget Office about the issue and he had no comment.

Assemblywoman Giunchigliani noted that was a part of the dilemma as well, but there had always been an extra charge for the photo identification because that was standard practice. That would be the decision of the money committees, but a change to funding to the Highway Fund would be a policy change.

Chairman Arberry advised the budget would be held.

Mr. Stevens stated the only difference in Budget Account 4704 was that the Senate had approved a letter of intent for the commission to report quarterly to IFC on activities related to the Drug Commission.

Mr. Miles concurred there was a Senate letter of intent for a quarterly report.

Mr. Stevens stated Budget Account 4708 had been discussed at the previous meeting on budget closing differences. At issue were the matching funds for the federal dollars that would come to the state and whether the state and/or the grantee/recipient of the funds would pay for that match. The original Governor’s budget recommended a 25 percent participation to be shared equally by the state and the grantee of approximately $125,000 each.

A later budget revision indicated that only a 10 percent match would be required. The recommendation was for the state to pay none of that and the grantee to pay all of the matching dollars or about $85,000 to $86,000.

Another budget revision was received from the Budget Division which indicated there would be a 10 percent match required and that the state and the grantee should share equally in that match at about $43,000 each.

The Assembly chose the first Governor’s recommendation that indicated a
10 percent match with the grantee contributing 100 percent of the matching funds.

Mr. Miles stated Mr. Stevens had provided the history of the transaction. At the last joint meeting Perry Comeaux of the Budget Division was asked to find out if the match could be achieved from the providers. Mr. Comeaux sent a memo dated May 5, 1999 to the chairmen of both committees which confirmed that the hard cash match was required and that the federal funds were divided from the organizations on their ability to make the match.

The memo also recommended some state matching funds be left in the budget, but instead of funding $43,000 in the first year, that the item be funded $21,606 in each year of the biennium.

Senator Raggio recommended if the Assembly elected to follow that proposal, the Senate would change their recommendation to the $21,606 each year in General Fund requirement.

Chairman Arberry asked for comments from Assembly members. The budget was held by the Assembly.

Mark Stevens stated the Assembly had closed Budget Account 4736 very early in the legislative session and the Senate had heard some additional testimony at a later time.

Dan Miles stated with concurrence of the agency involved, the Senate Committee on Finance added a Management Analyst position but left the floating Program Assistant at only half time.

The additional General Fund requirement since federal funds were involved was only $3,700 in the first year and $6,200 in the second year for the agency to get a higher level position with more flexibility to operate within the programs.

SPEAKER DINI SECONDED THE MOTION.

Assemblyman Perkins asked if the budget closing also included a letter of intent. Mr. Stevens stated the letter Mr. Perkins was referring to was part of another budget. Mr. Stevens explained there was a letter of intent for several budgets within the DMV concerning maximizing grant pass-throughs to local governments. Other budgets would have the letter of intent to request the agency to pass-through as much funding as possible to local governments. It was included in Budget Account 4736 as well.

THE MOTION PASSED UNANIMOUSLY WITH ASSEMBLYWOMAN EVANS NOT PRESENT FOR THE VOTE.

Mr. Stevens stated the Assembly closed Budget Account 4738 in accordance with the joint subcommittee. After that point some additional information was provided by the Budget Division requesting some additional funds be added.

Dan Miles stated the Budget Division had requested the addition of $23,619 in the first year and $15,554 in the second year. The request was to pay for additional out-of-state travel to correspond with the number of trips the Governor might take, some additional training specifically geared toward protection of public officials, replacement of personal computer equipment, and replace two security cameras each year. The agency planned to establish a
7-year replacement schedule for the 15 security cameras and 6 were in very poor condition.

Chairman Arberry stated the budget would be held for the Assembly to hear further testimony.

Mr. Stevens stated the issue in Budget Account 4743 involved the Vehicle Theft Unit (VIPER) program. The Assembly recommended a letter of intent. The Senate had added the funding to their priority list.

Mr. Miles concurred.

Senator Raggio stated the program was not in the Senate budget closing but the program had been placed on the priority list. Committee members that heard testimony had felt it deserved that much attention.

Senator O’Donnell stated the VIPER program was a very important component of auto theft in Southern Nevada. The argument against having the VIPER program continue was because of a lack of direction and the agency not being able to get along with all the entities involved. That had been worked out and most law enforcement agencies wanted the program to continue. However, it might "look a little different than it does today in terms of organization."

Chairman Arberry stated Budget Account 4743 would be held for Assembly review.

Mr. Stevens stated the Assembly Ways and Means Committee approved a letter of intent to the agency to pass through as many federal grants as possible to local governments.

Another budget account not on the table for consideration at the joint hearing was Budget Account 3674, the Emergency Management Assistance Program that administered Byrne grants. The only difference was $100.

Mr. Stevens stated the Assembly closing looked at the funding source for Budget Account 3834 and one of the major sources of funding was from the Beatty Waste Dump fees which were coming in at a much lower rate than had been projected for the year. The committee had felt there would be a funding problem in the up-coming biennium.

The committee reviewed how much money would be required to provide a
3-month cash reserve in the budget and to eliminate the Beatty Waste Dump waste fees from the account. It was determined an additional $177,000 in the first year of the biennium and $64,910 in the second year was needed. Those funds were drawn from the General Fund for Budget Account 3834.

The Assembly also included $20,000 in each year of the biennium to be funded from Beatty Waste Dump Fees if they materialized. Those funds would provide training for rural fire fighters at local locations. If the Beatty fees came in above the $20,000 those funds would be reverted to the General Fund to offset that appropriation.

Mr. Miles commented that was the only difference between the two houses on that budget account.

Senator Raggio requested the budget be held because of the size of the General Fund appropriation. Chairman Arberry stated the budget would be held.

Mr. Stevens stated Budget Account 4729 was closed in the Assembly based on the joint subcommittee recommendation.

Mr. Miles stated the Senate closed the account with the provisions of S.B. 167, which was currently in the Assembly. S.B. 167 dealt with transportation of hazardous waste and adopted the national uniform program of regulation. Under the bill, the fees that currently flowed to the State Emergency Response Commission (SERC) would go to the Highway Fund. The bill also called for an appropriation from the Highway Fund for SERC. The amounts in the base budget included a Highway Fund appropriation of $94,915 in each year and a reduction of the fees that currently went into the budget.

Chairman Arberry stated the budget would be held because S.B. 167 was currently in the Assembly Natural Resources, Agriculture and Mining Committee and would be heard on May 19, 1999.

COLORADO RIVER COMMISSION – BUDGET PAGE CRC-001

Mark Stevens stated the agency requested three positions be reclassified from the Classified Service to the Unclassified Service. Those positions were the Water Division Manager, the Power Division Manager, and the Administrative Officer IV positions.

The Assembly committee approved the reclassification of two of the positions but not the Administrative Officer IV position. The Senate closed recommending reclassification of all three positions. Mr. Miles agreed.

Chairman Arberry stated Budget Account 4490 would be held.

Mr. Stevens stated the Assembly closed Budget Account 4195 based on the joint subcommittee recommendations, which approved a new position in the Forestry account funded by Pollution Control Funds.

Senator Raggio commented the Senate could concur with the Assembly. The Senate had omitted that from the other Senate action.

Mr. Stevens stated the only difference in Budget Account 4162 was in room tax funds that would be transferred to the division for park improvement projects. In the first year additional funding would be $193,000 and $197,000 in the second year.

Senator Raggio stated the Senate Finance Committee’s vote to concur with the Assembly on Budget Account 1522 resulted in concurrence to close Budget Account 4162 in concurrence with the Assembly.

Mr. Stevens stated the issue in Budget Account 4660 was the Washington Office and the budget would be held until the new information was reviewed.

Mr. Stevens commented Budget Account 2561 was closed in the Senate with a letter of intent not included in the Assembly closing.

Mr. Miles stated the Senate approved a letter of intent regarding the decision to privatize the home and for the agency to appear before IFC to present additional information before a final decision was made.

Senator Raggio stated the Senate did not want to foreclose what would ultimately be the best decision and they had not heard in full Senate Finance Committee any meaningful input on whether or not the facility should be state operated for privatized. The Senate preferred for the budget to be held for additional information to be presented before IFC. They did not want to preclude any opportunity to find out how any similar facilities were being operated.

Speaker Dini commented he had received a large number of letters from veteran’s group throughout the state opposing privatization of the veteran’s home.

Senator Raggio responded he was a veteran also and all the veteran’s organizations did not speak for all the veterans in the state. The legislature owed it to the veterans and to themselves to obtain further analysis of just how privatized facilities were operating. Only minimal testimony had been received. Once a decision was made, the state was "stuck with it." Senator Raggio stated he wanted to ensure the facility was operated for veterans providing skilled nursing care and more information was needed. The Senate wanted to reserve judgement until a decision had to be made. In the meantime they wanted further research completed.

Speaker Dini stated he did not argue the point, but the Assembly was reacting to the veteran’s groups that had contacted the legislature in opposition to privatization. It was assumed the groups knew what they were talking about. Senator Raggio stated he felt that was arguable and other options should not be precluded.

Assemblywoman Giunchigliani stated in subcommittee discussions she had been leaning toward privatization as well, but after testimony came about and especially after former Governor O’Callaghan had looked at some privatized homes and provided testimony, she had changed her mind. The issue had come down to not a cost differential, but making sure Nevada veterans were treated with dignity. That was why in joint subcommittee, the Assembly had voted unanimously and two of the three Senators had voted to close the budget as a state-run veteran’s home.

Senator Jacobsen noted with due respect, he disagreed with Senator Raggio. Senator Jacobsen served as the Veteran’s Commissioner for the State of Nevada over the past 2 years it was his observation that most of the veterans did not want a privatized veteran’s home, because they were honorable people. If the home were privatized the volunteer effort would be lost. Perhaps at a later time privatization would be a better option, but at the present time veterans wanted a chance to prove they could do it themselves.

Chairman Arberry stated the budget would be held, as would the Washington Office.

Dan Miles reported the Senate Finance committee closed the Gaming Control Budget Account 4061 on May 17, 1999 in the same way as Ways and Means except they added $20,000 each year for out-of-state travel for members of the Commission on Gaming and the Gaming Control Board.

Senator Raggio stated the Senate had learned when members of the Gaming Commission and the Gaming Control Board went to meetings or conferences they were paying the costs out of their own pockets. The additional funds would allow $2,500 per member. The Gaming budget representatives had asked for travel funding in the past but had not pressed the issue. The state was fortunate to have the members serve those capacities for the salaries as set.

Senator Rawson stated if staff was going to be able to write the final Appropriations bill, the two houses needed to be in agreement on everything by May 21, 1999. He offered his willingness to work whatever hours were necessary.

Chairman Arberry stated staff was going to need some time to make the changes that had been agreed upon. He suggested a meeting on Friday morning, May 21, 1999. Senator Raggio stated the committees needed to come together on Thursday or the mechanics of closing legislation would not work out. Chairman Arberry agreed the joint committee would meet late on Thursday.

With no further business before the joint committee, the meeting was adjourned at 10:40 a.m.

RESPECTFULLY SUBMITTED:

Cindy Clampitt,

Committee Secretary

APPROVED BY:

Assemblyman Morse Arberry Jr., Chairman

DATE:

_____________________________________________

Senator William J. Raggio, Chairman

DATE:______________________________________