The Senate Committee on Finance was called to order by Chairman William J. Raggio, at 8:00 a.m., on Tuesday, February 2, 1999, in Room 2134 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. Exhibit B is the Attendance Roster. All exhibits are available and on file at the Research Library of the Legislative Counsel Bureau.

COMMITTEE MEMBERS PRESENT:

Senator William J. Raggio, Chairman

Senator Raymond D. Rawson, Vice Chairman

Senator Lawrence E. Jacobsen

Senator William R. O’Donnell

Senator Joseph M. Neal, Jr.

Senator Bob Coffin

Senator Bernice Mathews

STAFF MEMBERS PRESENT:

Johnnie Willis, Committee Secretary

OTHERS PRESENT:

John P. Comeaux, Director, Department of Administration

Emmy Bell, Literacy Coordinator, Nevada Literacy Coalition

Clark (Danny) Lee, Lobbyist, Nevada Library Association

Jeanne M. Munk, Library Director, Pershing County Library

Senator Raggio opened the hearing with an introduction of the Senate Committee on Finance Standing Rules, Exhibit C.

Senator Raggio stated these would be the standing rules for this committee. He called the committee’s attention to Rule No.12 and stated that unless a member informs the chairman before the vote is taken it will be assumed the member’s vote will be consistent with his or her vote in committee.

Senator Raggio said he would announce the subcommittees of this committee that are to work with the Assembly in like subcommittees on major budgets. He said the first person named for each subcommittee will be the chairman of that committee. The subcommittees and their members are:

Public Safety/Natural Resources/Transportation: Senator Jacobsen, Chairman, Senator O’Donnell, and Senator Neal.

Human Services/K-12: Senator Rawson, Chairman, Senator Raggio, Senator Coffin, and Senator Mathews.

Higher Education/Capital Improvements: Senator Raggio, Chairman, Senator Rawson, Senator Coffin, and Senator Mathews.

Capital Improvements: Senator Raggio, Chairman, Senator Rawson, Senator Coffin, and Senator Mathews.

General Government: Senator O'Donnell, Chairman, Senator Jacobsen, and Senator Neal.

Senator Raggio appointed to the Finance Subcommittee on Audit: Senator Jacobsen, Chairman, Senator O'Donnell, and Senator Coffin.

DEPARTMENT OF MUSEUMS, LIBRARY AND ARTS

Joan G. Kerschner, Director, Department of Museums, Library and Arts, explained her intention was to review the budgets in the order they appear in The Executive Budget after she addressed the department’s requests for a one-shot appropriation and an additional appropriation.

Ms. Kerschner introduced Scott K. Sisco, Administrative Services Officer III, Department of Museums, Library and Arts, who filled the position the department was awarded in the 1995 session of the Legislature. She stated that Mr. Sisco has been able to coordinate the accounting systems to achieve a more uniform budget, establish internal controls, and follow up on the department’s audit problems.

Boulder City Railroad Museum – Budget Page MLA-8 (Volume 1)

Budget Account 101-4215

Ms. Kerschner said the department’s one-shot request is for $562,246 for the Boulder City Railroad Museum (page INTRO-36 of The Executive Budget). She pointed out that in the last session there was an appropriation of $2.5 million to the Boulder City Railroad. She said the railroad museum was able to spend a portion of that on mitigation and some on the required environmental studies. She further explained that with the budget reversion this fiscal year, the return of those funds was the primary contribution this department made to help balance The Executive Budget. The one-shot appropriation of $562,246 would allow the agency to move forward in this next budget session in a significant way. Ms. Kerschner said the details of what the Boulder City Railroad Museum planned to do with the appropriation have been handed to the Senate Committee on Finance in a memorandum (Exhibit D) which was written by Greg Corbin, Assistant Administrator of Railroad Operations, who is on site in Boulder City at this time. She said the budget office approved this detail and that is how the railroad museum would like to spend the appropriation.

Ms. Kerschner pointed out that the primary thrust of this project is to restore some of the rolling stock to show "some visible activity" at the museum. She said Nevada has quite an investment in Boulder City but the Boulder City Railroad Museum has not been able to run the trains. She stated the railroad museum needs to have a passenger facility, including a ticket office, to begin running the trains. Ms. Kerschner said the railroad museum needs funds for the crossover of the railroad with the rail yards, and to cover startup costs for fuel, lubricating oil, solvents, and ticket printing. She explained that the museum’s objective is "to show some visible activity and to have some productivity arise from the investment that has already been made to the railroad museum."

Senator Raggio asked whether there was any effort to invite private funding for some of the facilities and programs at the Boulder City Railroad Museum. Ms. Kerschner responded the department explored a number of different options. She said the department felt the best opportunity for getting private funding is the restoration of the cars and the engines, because this is visible and may draw investments to the project. Ms. Kerschner said that often, private organizations like to see a project they can complete and possibly have their name attach to. She stated the department would be working on this in the next biennium. Senator Raggio said the understanding of the committee was that this was the hope and the expectation. He said this project could generate a lot of community involvement, and the railroad museum could do a lot with this involvement.

Ms. Kerschner agreed to Senator Raggio’s request that the Senate Committee on Finance be kept informed of the department’s activities in regard to this project.

Senator Rawson asked for clarification on Exhibit D after looking at it and ascertaining that Boulder City Railroad Museum was an unfunded decision unit, and the memo suggested there was a fallback position. Ms. Kerschner responded the department had requested that Boulder City Railroad Museum have its own budget account, which it has not had in the past, and that this was part of the one-shot appropriation the department lost last session. She said the operational cost for the Boulder City Railroad Museum was included in the Museums and History budget, account 101-2941, page MLA-5 of The Executive Budget (Volume 1).

Ms. Kerschner next addressed the department’s request for a supplemental appropriation of $1,550 to pay utility charges for the department’s offices. She explained the department originally was housed in the Nevada State Library and Archives building, when she was the only staff member. Ms. Kerschner said that at the time she was handling the jobs of both department director and administrator of the State Library and Archives. But the department has grown by an additional three positions: the secretary for the department’s director, an administrative services officer, and a public information officer. Ms. Kerschner said the position of administrator of the State Library and Archives would also soon be filled. She stated there was no office space to share in the State Library and Archives building and for the division to be housed there, the staff would have to be "sitting around in public areas."

Ms. Kerschner said the department acquired, along with the old First Interstate Bank (FIB) building, a small house on Curry Street in Carson City right behind the FIB building, which was appropriate for remodeling into offices. She said the department was able to do that without requesting more funds. She explained that the department had used some staff from the museum, that they had scrounged a few things from here and there, and that they had done very well. However, the utilities for that building were not counted in the department’s budget and additional funds were needed to pay them.

Museums, Library & Arts Administration – Budget Page MLA-1 (Volume 1)

Budget Account 101-2892

Ms. Kerschner said the base budget includes funds for the four positions she mentioned previously, small amounts for in-state travel and out-of-state travel, and operating costs for the previously mentioned positions. The budget is for the administrative unit of the State Library and Archives, the Division of Museums and History, the State Arts Council (also called the Nevada Arts Council), and the State Historic Preservation Office.

Senator Raggio asked that Ms. Kerschner highlight any changes in the budget, particularly in the base, such as the new expense for connecting to the Cooperative Libraries Automated Network (CLAN) for $1,500. Ms. Kerschner responded that was a new expense, but some of the expense was an existing cost and had been picked up by the department for connecting to the Internet. She said "the new money" was an additional adjustment. She stated that when the department moved from the State Library and Archives (where there was no need for a telephone connection for the computer) to the new building, it was necessary to install a data line to connect the computer to the system. Ms. Kerschner said the department was still paying a portion of those costs in this budget.

Senator Raggio asked whether this expense would appear in some of the other budgets. Ms. Kerschner responded yes, these costs would be throughout the budgets.

Responding to Senator Raggio’s inquiry about how this cost had been paid historically, Ms. Kerschner said the department was trying to add all of its divisions to the CLAN system. She noted CLAN has been a pay-as-you-go system and every member needs to pay at least the basic rate. Ms. Kerschner said the basic rate would be seen over and over in these budgets and is $2,900. She said this fee allows the CLAN administration to help the members maintain their local area networks (LANs). She stated that some of the locations do not have computer staff to administer the system, and this help from the CLAN administration is very important to them. She reiterated the $2,900 is a basic charge.

Senator Raggio asked Ms. Kerschner to explain the reasoning for the new computer networking position requested in this section of the budget. Ms. Kerschner responded that in the M-200 module the department had proposed the new position but had agreed with the suggestion of the budget office that instead, approximately $40,000 would be added to the budget to use for contract services. She said the department had received a considerable amount of computer money and one-shot appropriations in the last three sessions to update the computers for the department’s projects, especially the arts council and the state library. Ms. Kerschner said many of the divisions have LANs, but no technical staff on site, and this money would help the department maintain those computers and networks.

Senator Raggio asked whether the department had asked for a staff person instead of funds for contract services. Ms. Kerschner affirmed the department had requested the information technology support person. She reiterated the budget office had suggested the use of contract services instead. The senator asked whether the department believed this to be cost-effective. Ms. Kerschner answered the department "just needs to get the job done." She said that the department could use contract services through the Department of Information Technology (DoIT), and hope for the best. She stated that because the department has not had this position before, she was not sure how much it was going to take to meet the many demands. But she did not have a particular preference as long as the department could get the job done.

Ms. Kerschner stated that in this module the department needed some enhancement funds for the new office. The department was able to find enough furnishings for everyone except the director’s office. Ms. Kerschner said that at this time the director’s office does have some furniture which was borrowed from the conservation lab of the library. She said the director’s office would like to give the lab back its furniture, and get furnishings which would be more appropriate for the director’s office.

Ms. Kerschner said the department would also like to have the front door of the building replaced since even after several tries it could not be repaired.

E-900 Transfer in Humanities – Page MLA-3

Ms. Kerschner stated this budget account has been in the Nevada Arts Council budget in the past but the Department of Museums, Library and Arts administration felt it was more appropriate to have it pass through the department’s administration budget than pass through the arts council’s budget. In response to Senator Raggio’s request that she refresh the committee’s memory on how the Nevada Arts Council used this money, Ms. Kerschner explained this $9,000 was used strictly for administration. She said the arts council does not use it for regranting, because it does not have the staff to go out and audit what is being done with it, "so this keeps the use of the funds very clear-cut."

Senator O'Donnell, referring back to decision unit M-200, asked why it would be better to use the $40,000 for contract services than hire someone on a full-time basis. Ms. Kerschner responded she had originally asked to have someone on a full-time basis, but with budget shortages this was the best the department could negotiate.

Senator O'Donnell asked whether Ms. Kerschner felt enough money could be found in the second year of the biennium to support an information technology support person for the M-200 module. Ms. Kerschner responded she would be willing to try. Senator O'Donnell inquired of Ms. Kerschner whether or not she thought she would be better off with a staff person in this position. He stated that it seemed the state was paying as much or more for contract services as it would for a staff person and it did not make any sense to do that. Ms. Kerschner responded she would be willing to work with the budget office to find the money for a staff person in the second year of the biennium.

Museums and History – Budget Page MLA-5 (Volume 1)

Budget Account 101-2941

Peter L. Bandurraga, Ph.D., Acting Administrator, Division of Museums and History, Department of Museums, Library and Arts stated the Museums and History budget is primarily "an administrative unit." He said there are three employees: an administrator, an accountant, and an assistant administrator. Dr. Bandurraga said the current assistant administrator was in Boulder City supervising the development of that facility, because it is at present a project of the division, not a stand-alone institution.

Dr. Bandurraga stated this module of the budget provides maintenance and operating funds for the railroad operations in Boulder City. The funds are for fire extinguishers, maintenance, sprinklers, pest control, weed abatement, and an overhead crane that needs maintenance.

Senator Raggio said there had been a request to have tourism money used for this maintenance, and this seemed to be an appropriate use of the tourism funds. He said he would like to ask the budget office what the basis was for the decision not to use the tourism funds and to use the reserve for this purpose. John P. (Perry) Comeaux, Director, Department of Administration, answered the decision was due mainly to the condition of the reserves in the tourism budget. Mr. Comeaux said the room tax collection had not been as much as anticipated. Senator Raggio stated the maintenance would be an ongoing expense. He asked whether the total for maintenance was $39,010. Dr. Bandurraga responded $39,010 is basically the total for maintenance for the equipment used in the daily operation.

Senator Coffin, referring to the one-shot request for the Boulder City Railroad Museum, suggested it would be good if the state could repatriate the original building for the Boulder City Railroad instead of building a replica of it. He inquired whether this was the one that was moved to Henderson, and whether it was possible to get the original back. He further inquired whether it had been loaned to the Clark County Heritage Museum in Henderson, and if Clark County owned it, whether its return could be negotiated. Dr. Bandurraga responded the original Boulder City Railroad building is part of a collection at the Clark County Heritage Museum in Henderson and he did not believe the museum would be willing to part with it. He stated the facility the Boulder City Railroad Museum was proposing to build is not exactly a replication of that building, but it would follow the basic design. He said it is a standard Union Pacific Railroad design, the yellow building with a dark roof. Dr. Bandurraga said the design would be modified for the railroad museum’s particular purpose, which is to move tourist passengers through instead of freight. He said the railroad museum could also use some of the space for exhibitory purposes and for interpretation.

Ms. Kerschner continued the presentation of the Museums and History budget on page MLA-5 of The Executive Budget with an explanation of the module covering the CLAN system.

Ms. Kerschner said the minimum charge to be a member of CLAN and to receive all of the benefits is $2,900 for an interagency agreement. The department has recommended that all the agencies which have LANs that are attached to the CLAN system pay the minimum. This totals $11,600, with $2,900 each being paid by the Nevada State Museum, the Nevada State Railroad Museum, the Nevada Historical Society, and the Nevada State Museum and Historical Society in Las Vegas.

Budget Account 101-2940

Dr. Bandurraga, responding to Senator Rawson’s request for an update on "the mummies," said the funds that were in the budget for the previous fiscal year were expended and that other research projects, primarily carbon-14 dating, had to be suspended. He said that in terms of the mummy itself the agency is at a stasis, waiting for approval from the Bureau of Land Management (BLM) to go forward with more intrusive tests. Dr. Bandurraga indicated the Division of Museums and History made formal requests on a number of occasions and is in the process of drafting another letter asking the BLM officials to make up their minds. He said the division has not heard anything back specifically granting or denying permission to do the tests, and the situation remains as it was two years ago.

Dr. Bandurraga stated the budget for the State Museum in Carson City is the largest of the division’s budgets, and the base budget is essentially as it has been in the past. The maintenance inflation unit provides for small increases for printing, postage, utilities and other such items.

Dr. Bandurraga explained that one of the important increases for this division is the addition of the old First Interstate Bank (FIB) building with the park that is presently under construction to connect the two facilities. He said the division has been told the FIB building will be ready for occupancy in January 2000. The State Public Works Board has indicated construction will start soon after closure of this legislative session. The public works board indicated it will take about eight months to complete this project.

Senator Raggio inquired whether the work on the mall was under way. Dr. Bandurraga replied it was under way and would be completed by April 1999.

Senator Raggio said he understood the Department of Museums, Library and Arts administrative unit is presently utilizing the house behind the bank building. Dr. Bandurraga confirmed the administrative unit is using the house for their offices, and the museum is using the bank to store furniture that belongs to the Nevada Historical Society, while that facility is undergoing renovation.

Senator Raggio asked what would be housed in the old FIB building upon completion. Dr. Bandurraga responded the renovated building would hold a changing gallery, a much expanded and improved museum store, the office and lab facility for the history department, and a meeting room for the Docents’ Council.

Senator Raggio inquired whether the park area would be an open area or a physical connection between the buildings. Dr. Bandurraga responded it would be an open-park connection. The park has taken up Caroline Street and would be a logical connection, he stated.

Senator Raggio indicated that staff had asked whether any historic items were discovered during the digging in this area. Dr. Bandurraga responded the historical society had been quite fortunate when trenching. Some discarded coin stamps were found. Dr. Bandurraga explained there had been a blacksmith shop connected with the mint facility, and when coin stamps were overused and became unusable they were sent to the blacksmith shop to be destroyed. The blacksmith would mark an X through these stamps with a chisel to destroy them. He explained that apparently they were then just dumped in a corner, because a cache of 20 or 30 of these was discovered, and now the coins are a part of the museum.

Dr. Bandurraga told the committee the site is a national registry property and signs have been posted. He assured the committee the museum is "keeping a good eye on the place."

Dr. Bandurraga explained that in this decision module of the budget the agency is seeking funding to open the annex. He said the operating expenses in this decision module include janitorial supplies, insurance, and telephone services. He noted that "a very modest amount of money" was requested for four changing exhibits in the new gallery, wiring for telephone, utilities, and other such items. Dr. Bandurraga said these funds were to get the building open and operating. He said there was a capital improvement project (CIP) of about $250,000 for renovation in the building.

Dr. Bandurraga noted the next unit of the budget also relates to the opening of the building. He said that when this building is ready the state museum will have almost 100,000 square feet of space, which needs care. The current staff is already stretched, and the museum needs at least one more custodial worker. Dr. Bandurraga explained the current staff takes care of the FIB building, the state museum, the mint, the two annexes, the department office building, and a storage facility in Douglas County.

Dr. Bandurraga said this decision unit is fairly straightforward. He said that in terms of enhancement the museum needs another security officer. There are two security officers at the state museum presently with a "Century Remote" facility. With heavy visitor traffic the museum very much needs another security officer, Dr. Bandurraga stated, particularly when it begins moving collection material in and out once the FIB annex opens.

Dr. Bandurraga stated the new equipment in this module includes a ticket-dispensing machine for the state museum. He said this museum has the highest visitor attendance among all of the museums. The count is around 90,000 to 100,000 people a year. Dr. Bandurraga explained that with two facilities it is believed this automated system will provide better control over revenue collection and attendance tracking, which includes the demographics of attendance.

Senator Raggio noted the budget indicates the amount for admission charges is about $144,000 a year and inquired whether this is realistic. Dr. Bandurraga responded it is. In response to Senator Raggio’s question whether this is in line with what the museum has been receiving, Dr. Bandurraga said it is. Senator Raggio inquired what the admission fees are. Dr. Bandurraga responded the fee is $2.50 a person for adults, and children are admitted free.

Senator Raggio requested an explanation of the line item for gifts and donations in the amount of approximately $140,000 each year of the biennium. He asked whether these funds still support some of the positions in the budget. Dr. Bandurraga responded that as with most of the museums throughout the country the state museum uses grants and other sources of income to support particular individuals in their work. In this case the funds support a curator, two program assistants, a sales and promotion representative, and a museum attendant. Dr. Bandurraga explained the curator and the museum attendant working for the anthropology department are curating the federal collection. He said the U.S. Navy and BLM funds that come in are used for this purpose. Dr. Bandurraga said the sales and promotion representative is the manager of the museum store and this position is supported out of private funds.

Responding to Senator Raggio’s inquiry whether there is a reasonable certainty of the federal funds, Dr. Bandurraga stated yes, "as much as federal funds could be certain."

Senator Raggio stated the committee usually likes to hear whether special exhibits are being planned or are evolving, and asked whether Dr. Bandurraga could provide any information on that. Dr. Bandurraga responded there is a major show that is coming to replace the Basque show.

Dr. Bandurraga turned the presentation over to Judy Hendrix, Administrative Services Officer III, Nevada State Museum, who stated in response to Senator Raggio’s inquiry that the museum’s next changing show is one on folk arts. She said the exhibit theme is "10 years of folk arts" and the exhibit is being presented in conjunction with the State Arts Council. She stated the exhibit will be open in May.

Budget Account 101-2870

Dr. Bandurraga said the budget request in this decision unit relates to the need for travel supplies and new computer needs. He said the Curator I position added last session needs additional funds for travel, operating supplies, and computer needs.

Dr. Bandurraga stated that in this decision unit the computer would go to the accounting office. He said the old computer cannot run the new state system. He remarked that with remote facilities such as the historical society in Reno, being automated would make things much easier and give the division a great advantage.

Dr. Bandurraga stated the new equipment in this module is for the photo darkroom, which is part of the remodeling project. He noted this museum has a photo collection of over 500,000 images, the largest collection in the state, but has never had darkroom facilities. He explained that in the past all photo reproduction and all photo conservation have had to be done by private contractors in the community. He said the use of private contractors is fine for reproduction but is not useful for the conservation of images. He said the current curator and the previous curator had to process many of the conservation of photos in their own homes where they had darkrooms. He stated this darkroom would also be used for a conservation lab and, minimally, for manuscript and artifact collections.

Dr. Bandurraga commented the museum collection equipment is for the new curator to do basic conservation work with the artifact collections. He said this equipment includes a small specialized vacuum cleaner, and a recording hydrothermograph that records relative humidity and temperature. He explained the hydrothermograph is used in museums all over the world but Nevada has not had one in the past. He said this section of the budget also includes funds for a couple of hydrometers to record more humidity and for a variety of tools and other pieces of equipment.

Dr. Bandurraga said the last enhancement for this budget provides equipment and software to create a local area network (LAN) within the Nevada Historical Society (NHS). He said that currently all the staff who need computers have them, but the computers are not networked. They are connected to the state library system through only one station; now they need to be networked locally and to CLAN, through the state library system. Dr. Bandurraga explained this is necessary because many of the professional staff conduct reference requests and e-mail has become a major medium for that.

Senator Raggio asked whether the problem with the floor that was preventing the historical society from been able to move files has been resolved. Dr. Bandurraga replied the historical society is in the process of resolving that problem. He stated there were two storage buildings on the University of Nevada, Reno (UNR) campus and the foundation of the newer storage building cracked in 1982. He said remedial work was done at that time which involved pouring a new footing under the building and digging a French drain. Now the same portion of the building has sunk about an inch and has caused a problem with the compact shelving in the manuscript section. Dr. Bandurraga said the last three ranges would not roll over a joint that has become elevated and separated. Using a small amount from funds for the current public works project, the museum hired an engineering firm which is conducting a soil survey to see whether the soil is compacting further or whether there is some other kind of problem. Dr. Bandurraga stated water penetration might be a problem.

Senator Rawson asked whether the historical society is considering digital preservation for any of the photographs in the collection, or whether it is microfilming. Dr. Bandurraga responded the darkroom is very useful in digital preservation, and the historical society has begun the project. He said the current curator is adept with the computer and has begun digitalizing the collection in his area, but the museum is not yet at the point of starting a major access project. Dr. Bandurraga said that at this time the historical society is completing its library access project for the book collections. He said the next project to go into the computer would be the map collection. He explained that with 500,000 images this is a very large project and in a few years more equipment and more staff will be needed to handle it. Dr. Bandurraga further explained that often, old images are faded or indistinct or dirty and the darkroom is the best way to duplicate them, using filters and other processes to bring out the images.

Dr. Bandurraga then explained that when the museum installs Nevada Perspectives, which is a permanent display, the historical society is going to create two databases that will be on stand-alone computers so the public can access many more images than will be available on the walls in the traditional format. One will have about 2,000 more photo images and the other, 200 images of the artifact collection.

Senator Raggio inquired whether any of the historical photos are in jeopardy of being lost or degraded further. Dr. Bandurraga responded yes, a small portion of the collection is in jeopardy. He said that as stated in the performance indicators the curator has processed and organized the collection so that it is about 95 percent accessible, which means the photos are sleeved in acid-free plastic and housed in folders and boxes. He stated the historical society knows where they are and what they are. Dr. Bandurraga said the curator has used student interns to do a lot of the basic processing work. He stated there are a number of nitrate negatives that are stuck together, and these are always in danger of rapid decomposition. Dr. Bandurraga said the historical society also has movie film that is in danger. He stated the museum has taken the steps it can afford to preserve these items.

Dr. Bandurraga stated the Nevada Historical Society now has proper storage and environmental facilities and they will no longer lose photos through neglect or through improper care. He said that 20 years ago many of these items would have been lost.

Nevada State Railroad Museum – Budget Page MLA-20 (Volume 1)

Budget Account 101-4216

Dr. Bandurraga explained the base budget is about the same as it has been previously. This facility does not have a large number of artifacts, but the artifacts tend to be very large pieces and very expensive to maintain. For administrative convenience the budget for the East Ely Railroad Depot Museum has been combined with the Nevada State Railroad Museum budget.

Dr. Bandurraga explained this module provides operating funds for the East Ely Railroad Museum, which is completing reconstruction of the freight barn. He said the barn would be turned into an exhibition and storage facility. Dr. Bandurraga said an estimated $9,700 a year will be needed for cleaning supplies, utilities, and some maintenance.

Senator Raggio asked how many positions are assigned to the East Ely facility. Dr. Bandurraga responded there are two, a curator and a management assistant.

Dr. Bandurraga imparted to the committee that the Division of Museums and History is asking for a new Management Assistant II position for the Nevada State Railroad Museum in Carson City to turn it into a full-fledged museum. He said financial administrative matters are handled currently through the division and the Nevada State Museum, which puts a burden on those staffs. He stated that having the financial administrative matters handled through the Nevada State Museum also removes the curator a step from the administrative service process. Dr. Bandurraga explained that adding a management assistant to the railroad museum in Carson City would increase the efficiency of the operation in the museum and relieve the burden on the division and state museum staff. He stated that accounting is a big function and support is needed.

Dr. Bandurraga stated the museum is also requesting some telephone, computer, and printer funds in this module.

Dr. Bandurraga pointed out that the major request in this module is for the repair of the gas-mechanical switch engine used to move vintage rail cars around the Nevada State Railroad Museum property. He informed the committee this item is not purchasable, so $28,000 is being requested for the restoration staff to rebuild the engine. He stated that other equipment had been used for this job, but this is not good for the equipment and wears it out too rapidly.

Dr. Bandurraga stated the second item in E-710 is $15,000 worth of track parts to replace parts that were installed (used) in 1987. He said replacement of these parts is a health and safety matter. He noted there has never been a serious accident at this facility and the division is taking measures to prevent any accidents.

Dr. Bandurraga explained this decision unit also includes funds to replace a five-ton "stick-bed" truck that cost about $75,000 and is used throughout the division to transport large and heavy loads of materials, collections, shop machinery, and exhibitions. He stated the current truck has about 150,000 to 200,000 miles on it and the agency has had it for about 20 years.

Dr. Bandurraga stated this enhancement provided funds for a LAN and for hooking it to the Nevada State Library network, so that reference and intercommunications can be expedited.

Senator Raggio asked whether there is any restoration work going on. Dr. Bandurraga responded yes, there is a motor car that belonged to a plumbing shop in Carson City. The owner who made the donation also donated funds for restoration.

Senator Raggio inquired the status of the engine that was formerly in Virginia City. Dr. Bandurraga responded it is at the facility in Carson City and is in the finishing stages of restoration.

Senator Jacobsen wanted to know whether the division uses inmate crews in the East Ely facilities. Dr. Bandurraga responded the division uses them quite a bit. He stated there are two buildings at the facility, and one is in the process of being restored. The main building is the old depot building, which is in fairly good shape. Dr. Bandurraga said the rest of the facility is in the control of the Northern Nevada Railway Association.

Museum & Historical Society – LV – Budget Page MLA-25 (Volume 1)

Budget Account 101-2943

Shirl R. Naegle, Director, Nevada State Museum and Historical Society in Las Vegas, stated the base budget for this facility is the same as it has been.

Mr. Naegle said the request in this decision unit is for $4,408 to repair the emergency fire doors for the Earth and Biology Galleries. He stated that if there is a fire these doors are supposed to drop and seal the sections in the museum. Mr. Naegle stated that two of these doors failed when they were tested last and a third door was marginal, and they need to be repaired.

Mr. Naegle noted the recommendation for this unit is for $44,500, of which $35,000 is for compact-shelving units. He stated that as the Nevada State Museum and Historical Society acquires more books and manuscripts it needs more room, and adding compact shelving to this part of library would more than double the space available. He said it would also allow the museum to move to the front some of the manuscript materials that are in the back storage areas so that new materials can be collected to fill the back areas.

Mr. Naegle said the budget request in this decision unit, the $18,937, is for a new cooling tower, which is an evaporation unit. The existing equipment is 16 years old and is about to wear out. Mr. Naegle said that also in the original installation there was an error made in the airflow of the building and this needs to be corrected.

Mr. Naegle explained this unit of the budget also requests funds for additional security cameras. He said the museum needs to replace some worn-out cameras and add a couple of new cameras.

Senator Raggio asked whether the projections in the performance indicators for the museum activity are realistic. Mr. Naegle responded the museum had submitted different numbers for those projections. He said the projections had been lowered.

Senator Raggio inquired what the new projections are. Mr. Naegle responded the numbers were projected at 35,000 and 40,000 in total attendance rather than the original 50,000 and 60,000. Senator Raggio asked what the projections are for Fiscal Year (FY) 1999. Mr. Naegle responded that attendance of about 35,000 is projected.

Senator Raggio said the Senate Committee on Finance had considered a relocation of this museum in consideration of the access problem and he wanted to know whether Mr. Naegle had any recommendations to increase the visitor count. Ms. Kerschner responded to Senator Raggio’s question, explaining that at the direction of the Interim Finance Committee (IFC) the request was made to enhance the museum staff, the programming at the museum, and the public relations program for the museum and the historical society. Ms. Kerschner said that with the budget limitations it seems difficult to get anything new, so the agency is hoping to resubmit the request at a time when there are more state funds available. Senator Raggio asked whether this proposal includes relocation. Ms. Kerschner responded it was the agency’s understanding the issue of relocation is dead for the moment and the agency should continue to promote the present location.

Senator Rawson stated this museum is too nice a facility to eliminate. He noted there has been too much effort put into it to abandon it and said it is a wonderful staging museum. He said that in the future the museum may want to build satellite facilities, but this would be an excellent preparatory and archive place. Senator Rawson asked whether the unfunded decision unit (E-999) in this budget requesting $442,000 addresses some of these issues. Ms. Kerschner responded yes, and elaborated the upgrade of this museum is the main part of this museum’s proposal over the biennium.

Lost City Museum – Budget Page MLA-29 (Volume 1)

Budget Account 101-1350

Dr. Bandurraga explained that one of the recommendations for maintenance in this decision unit is for ongoing annual repair of the adobe exterior of the museum building. He said the building was built as a Civilian Conservation Corps (CCC) project in the 1930s and is an artifact in itself. He explained that the bricks for this building were constructed on site out of local materials and then the building was built with those adobe bricks, giving the building an authentic atmosphere. He said the museum added a stucco frame and a stucco addition to that building and is now having problems with water penetration into the adobe. He emphasized the adobe does not match any other building material. Dr. Bandurraga said the museum has tried to fix the problem over the years and has even considered putting a roof over the structure. He said the result of an investigation was that the bricks have to be replaced from time to time, since water wears them away.

Dr. Bandurraga said the division is asking for an annual appropriation of $15,000 to replace the adobe bricks. He explained the staff would make their own bricks after ascertaining the correct mix of mud and straw to use. He said they would then have a contractor replace the bricks as needed.

Senator Raggio asked whether the division is planning to use inmate labor on that project. Dr. Bandurraga said he presumed so, that there was no reason not to.

Senator Jacobsen stated he would like to see the late Senator B. Mahlon Brown’s name associated with this project. He said this was Senator Brown’s favorite project and he felt it would be appropriate for the senator’s name to be on it somewhere. Dr. Bandurraga responded he thought Senator Brown’s name was on the project, but he would certainly make sure it is.

Ms. Kerschner introduced I. R. (Renny) Ashleman II, Las Vegas, Chairman, Commission for Cultural Affairs Advisory to the Department of Museums and Arts, and explained that Mr. Ashleman would give the committee information on some of the fund-raising activities of the Department of Museums and History.

Mr. Ashleman stated he had two pieces of information to give to the committee regarding fund-raising activities of the Department of Museums and History. He said Dr. Bandurraga and Arlene Price, Senior Accountant, Division of Museums and History, Department of Museums, Library and Arts, have compiled a report showing the percentage of the various divisions’ funds that come from private enterprise. He stated this report identifies the source of the funds and the policies for the use of these funds. Mr. Ashleman said this report would be made available to the committee.

Mr. Ashleman stated private funds and in-kind funds support 27 percent of the department’s budgets. He said the in-kind percentage is a very small amount; out of $1,570,000 in private funds, only $160,000 is in-kind funds. He stated the department had hoped the divisions’ general expenditures could be supported by the state and the private funds could be used for enhancing programs and buying artifacts. He remarked this would not appear to be the year for that, but it is a long-term goal.

Mr. Ashleman explained the Board of Museums and History has a new fund-raiser by the name of Beverly Carlino-Banta. He stated Ms. Carlino-Banta had been the fund-raiser for the Clark County Library District and had been quite successful. He explained the board had shifted the emphasis of the foundation to southern Nevada. He said the board is working on "getting some interest going for the cars" and believes the one-shot request could help generate some interest. Mr. Ashleman stated that once real interest has been generated the museums could have a great deal of success in restoring the cars and raising revenue.

Mr. Ashleman explained the Board of Museums and History had done some active exploration with potential donors in Las Vegas and the surrounding area. He said the Howard Hughes Foundation had asked for an application from the historical society so it could donate funds for children’s programs and for the study of the Howard Hughes era in Las Vegas.

Mr. Ashleman stated the board recently held a reception for new board members and other community officials, including members of the Legislature, and many people contributed to this; consequently, there was no cost to the board. He said the board members felt it was a success and were feeling better about the prospects for obtaining donations.

Scott Sisco, Administrative Services Officer III, Department of Museums, Library and Arts, stated

Following the presentation by the Board of Museums and History, the Museums and History budget hearings resumed.

Nevada State Railroad Museum – Budget Page MLA-20 (Volume 1)

Budget Account 101-4216

Senator Jacobsen asked Dr. Bandurraga why the museum could not use the "Unimogs" that Information Services has that are not being used, instead of buying a new five-ton truck for the East Ely Depot Railroad Museum. He stated these Unimogs have the capability of lifting a "micro" building and transporting it to the top of a mountain. He said he feels the division should look at some of the equipment the state already has. Dr. Bandurraga responded the division would look into that.

Boulder City Railroad Museum – Budget Page MLA-8 (Volume 1)

Budget Account 101-4215

Senator Jacobsen asked whether the state is involved in any construction in Boulder City, such as an overpass. Ms. Kerschner responded the agency has worked very closely with the State Public Works Board on the design of that location and is also working with the Metro Goldwyn Mayer (MGM) Company, which is building a couple of golf courses in that area.

Comstock Historic District – Budget Page MLA-33 (Volume 1)

Budget Account 101-5030

Ronald M. James, State Historic Preservation Officer and Commissioner, Comstock Historic District Commission, explained the staff has been able to publish new standards and has held workshops to help amend the standard to local tastes and architecture. He stated the commission is planning to hold another workshop to discuss historic landscapes.

Mr. James said the commission has moved forward on the newly founded Comstock Archeology Center, which has been a great success. He said the commission had focused on the excavation of Piper’s Opera House in Virginia City and has retrieved about 75,000 artifacts from this project. He said the commission has provided tours of the excavation site. He explained there are several exhibits at present and the commission is planning another one that is being prepared by the Nevada State Museum exhibit staff. This exhibit will appear in either the Nevada State Museum or the state capitol. He said the commission is hoping to get permission to also show it in the legislative building.

Mr. James stated the commission did a test excavation at the Boston Saloon, which is behind the Bucket of Blood Saloon in Virginia City. He explained the Boston Saloon was "the" place to go between 1864 and 1875 if one was an African American. It is a fantastic site, he said. He speculated it may be a one-of-a-kind in the West, because businesses of any sort tended to move around a great deal, so having one location with 10 years of archeological deposition associated with the African American community is very remarkable. He said he does not know when there will be another opportunity like this, and the commission is now trying to raise funds to excavate that site. Mr. James explained the site is currently capped with asphalt and although the owner, Don McBride, has given the commission permission to excavate it, Mr. McBride wants his parking lot replaced after the excavation work is through. He said the commission hopes to excavate within the next 12 to 18 months.

Mr. James said the commission is also trying to raise funds to "accommodate Engine 27." He voiced the opinion the state does not need two facilities there. Noting the State of Nevada is trying to return Engine 27 to Virginia City, he said the commission would like to see one facility in Virginia City that combines the efforts of the Comstock Historical Commission and the facility for Engine 27. He said the single facility should accomplish the objectives of both facilities in an acceptable manner, so that Nevada would not end up with two separate facilities in Virginia City.

Mr. James explained that in this module of the budget the Comstock Historical District Commission has a request for out-of-state travel to attend an annual archaeological conference. The current archeologist has been attending conferences using her own money. Mr. James said the commission would like to have funds to assist her efforts. He explained the state of Nevada is gaining a national reputation, and this public relations work is important.

Mr. James said there are several archaeologists interested in working on the Comstock project using their own money. He said the commission is working with one archaeologist interested in brothel architecture.

Mr. James explained this module requests computer software upgrades and a transcriber. He said that the commission needs to upgrade the 486 office computer and to replace the transcriber. He explained there have been some problems with the transcribing machine not recording, or skipping, when recording some of the commission’s meetings.

Mr. James said the commission is also asking for funds to augment the in-state travel. He explained the archaeologist had traveled to this hearing using her personal money because the commission ran out of travel funds several months ago.

Senator Raggio asked what the boundaries of the Comstock Historic District are, and whether the district includes Gold Hill, Silver City, Dayton, and Mound House. Mr. James responded yes, it includes everything except Mound House. He stated the Comstock Historic District is one of the largest landmarks in the nation and encompasses about 14,000 acres. He said it extends to about a mile and half below Silver City and it does not include U.S. Highway 50 except for an island in Dayton, but includes a small part of Sutro.

Senator Raggio asked what authority the Comstock Historic District has and whether that authority extends to construction within the district. Mr. James responded the Comstock Historic District Commission reviews any new construction within the district, and any alterations to existing structures. He stated there has been a lot of development around Sutro that is outside the district; however, developers have come in and asked the commission for opinions. He said the developers have asked for certain considerations and have been very cooperative.

Senator Rawson asked whether there are any diggings in this district that could be opened up for tourists as the Virginia City underground mine has been. Mr. James responded that right now there are two underground mine tours conducted by the private sector. One is off C Street in Virginia City behind the Ponderosa Saloon. The other is the Chollar Mine, which is downhill from C Street.

Senator Rawson asked whether Mr. James believes the mines are safe for the public. Mr. James responded he has been in both of them and hopes they are safe, but he is not a mine safety expert and does not feel qualified to make that assessment.

Senator Neal asked Mr. James how much money is needed to excavate the Boston Saloon site. Mr. James responded the commission is hoping to get about $60,000 from the private sector. He remarked one of the problems is that Kelly Dixon, administrator of the Comstock Archaeology Center, is still analyzing the 70,000 artifacts from the Piper’s Opera House excavation. He said that with this workload the commission would need to hire an assistant in order to keep an excavation open every summer. Mr. James suggested that perhaps a UNR graduate would be interested and could be hired for less money. He said the commission also must dig up and replace the asphalt and cannot get past that.

Senator Neal suggested two possible sources of funding in the private sector: entertainer Bill Cosby and the Michael Jordan Foundation. Mr. James responded those are " excellent ideas."

Senator Raggio asked whether it is feasible to have inmates care for and do the work to help preserve the two cemeteries in Virginia City. Mr. James responded he was glad this was brought up. He said the cemeteries are looking better than they had been. He stated that in 1950 someone used a herbicide to help control the weeds, and unfortunately the herbicide killed off the grove of locust trees which had been self-sustaining. He said that with a grant from the Division of Forestry the grove was reestablished. A drip system to water the trees was also installed.

Senator Raggio asked whether this list was available and whether he could see it. Mr. James responded it is and said he would provide it.

Senator Coffin inquired, in regard to erosion, "What do we know about what is happening in the tunnels beneath Virginia City and what can we do about it?" Mr. James responded it is not as bad as it might be and not as good as the commission would like it to be. He noted there are not very many subsurface tunnels under Virginia City that run horizontally under the community at a shallow level. He said most of the tunnels are extremely deep. He explained the problems derive from the shafts that go straight down and then tend to open up. Mr. James said the shafts usually extend down several hundred to several thousand feet below ground before they play out in adits, and those are not likely to collapse. He explained it is the mouths of the shafts that are vulnerable and mentioned there are several the community is watching. He said there may be several more the community does not know about and probably should be watching. Mr. James said two of the more famous "opening ups" are the Bonner Shaft at the elementary school and the Osbiston Shaft near the high school. He stated both of those shafts have been plugged so they will not open up again.

State Historic Preservation Office – Budget Page MLA-36 (Volume 1)

Budget Account 101-4205

Mr. James explained the State Historic Preservation Office is about to sign a programmatic agreement with the Bureau of Land Management, which will help pay the cost to comply with the National Preservation Act of 1966.

Mr. James said the historic preservation office has been able to move forward on many of the nominations for preservation for the national register and for in-state nominations to be drafted. He said the office has been able to address many of the concerns of constituents in this regard.

Mr. James explained that with the support provided, the office has been able to care much better for the markers in the state. He said the office was able to produce a booklet, A Guidebook to Nevada’s Historical Markers (Exhibit E). He also noted that, with the Commission for Cultural Affairs, the historic preservation office has funded 36 projects throughout the state and this has provided many outstanding events all over the state.

Mr. James stated the historic preservation office was able to publish a guide to filling out a national registration nomination for preservation. He said this guide has been published on the Internet and is being use as an example all over the nation. He said the State Historic Preservation Office is receiving national recognition for its efforts on the guide.

Mr. James explained the historic preservation office has made several historical contributions throughout the area. He noted it was an archaeologist from this agency who headed up the excavation of the mint, where over 90 of the coin stamps have been found. He said this department also contributed to the textile project associated with the Spirit Cave Man, the mummy mentioned earlier. He said the staff had to use personal funds to do technical research in the Bay Area of California on the textile project.

Mr. James explained this module of the budget concerns augmentation of the agency’s state budget. He pointed out that the federal grant, which is about 60 percent of this budget, has steadily declined due to fluctuations in federal funding. He said the budget has not kept up with inflation for administrative costs.

Mr. James further explained this budget is required to fund not only the 40 percent state share for administrative costs but also the projects mandated by the National Park Service, the Certified Local Government Project, and the Site Files Inventory that is maintained at both the University of Nevada, Las Vegas and the Nevada State Museum. Noting the state is required to provide 40 percent of this budget, he said the agency must request more funds so it can meet the state’s share of these costs.

Mr. James explained that in this module of the budget the historic preservation office is asking for funds to replace outdated computer equipment such as a laptop computer, a digital camera, and a few other items to take care of the computer needs of this office.

Ms. Kerschner resumed her testimony at this point and presented the state library’s budget.

Nevada State Library – Budget Page MLA-40 (Volume 1)

Budget Account 101-2891

Ms. Kerschner then referred to a memo (Exhibit F) addressed to the Legal Division of the Legislative Counsel Bureau regarding the visitor count for the State Library and Archives building. She said comparison of a count study done in 1996 to a similar study of 1997’s count indicates the user count has increased by about 10,000.

Ms. Kerschner explained this budget appears larger than the other budget in the department because it is the administrative budget for the next four budget accounts. She said it contains all of the building-related costs, telephone costs, and management costs for those budgets. She stated this budget includes funding for reference and research services, the State Publication Distribution Center, the State Data Center, and the Regional Library for the Blind and Physically Handicapped. It also provided for the rural bookmobiles and management of the federal Library Services and Technology Act (LSTA), which provides grants to libraries statewide. Further, this budget funds the state library’s activities in connection with statewide and local master plans for public libraries, administration of a program for certification of public libraries, and administration of state funds designated for regrant to public libraries.

Ms. Kerschner stated the base budget has been adjusted for a decrease in the state-owned building rent. She said there was one adjustment made by the budget office. Ms. Kerschner said the agency had originally asked for the funding formula increase which was passed by the Legislature in the last session, but that was removed as a base item due to the budget shortages. She said the agency had prepared a report of how that money was used and would present it later in the testimony.

Ms. Kerschner pointed out that what looks like a large amount for inflation cost in this module is to cover the amount of inflation on books.

Ms. Kerschner said that in this module the critical need is for a Management Assistant I to help with the workload of the division. She said the state library has needed another Management Assistant I for about 6 years. She explained the present management assistant and the accountant are overloaded with duties, and the library does not have enough people to manage this budget account and the four that are associated with it.

Ms. Kerschner stated that an Administrative Aid for the machine-lending program for the blind is also needed. She said that program was transferred to the state library from Services to the Blind with no additional staff provided for in the budget. She said the library has used volunteers, inmates, students, and anyone that could be "snagged off the street" to keep the program going, and has been unable to get any inmate services in the current biennium. She said the library is finding it harder and harder to manage that program and needs someone to perform this service.

Ms. Kerschner explained that in this module the state library is asking for funds to convert to the Microsoft NT network. She said the administrative staff believed the Novell network was Year 2000-compliant, but has since been informed it is not. Now the conversion must be funded to enable the library to run the CLAN program.

Senator O'Donnell asked whether this would be included with the same staff person the library proposed to hire. Ms. Kerschner replied "Yes, it all folds together."

Ms. Kerschner said this module asks for funding for the materials needed to complete the materials security system project. She described how the library had used the leftover funds from the original construction project to buy the equipment for the security system but was unable to get the supplies to run it. She said these funds would help the state library get the barcode supplies, the stripper machine, and the magnetic strips for the books to go with the system.

Senator Raggio asked whether this is the current level of the bookmobile service. Ms. Kerschner responded yes and said the funding was for the Elko library, the Winnemucca library, Humboldt County Library, and Lincoln County Library.

Archives and Records – Budget Page MLA-46 (Volume 1)

Budget Account 101-1052

Guy Louis Rocha, CA, Assistant Administrator for Archives and Records, explained this module requests a Program Officer III to handle the increased workload in regard to electronically created records. Mr. Rocha said this position is critical in the information age and on the eve of the millenium. He quoted from the Archivist of the United States, John Carlin, former Governor of Kansas, regarding electronic records:

Mr. Rocha stated that "electronics" poses problems. He said the Archives and Records division cannot be sure all the various systems are operated properly. He stated the State Library and Archives and the State Historical Advisory Board first tried to address this problem by bringing in a national specialist from the New York State Archives and Records, Margaret Hedstrom, Ph.D., and had published Management and Preservation of Nevada’s Electronic Public Records (Exhibit G) on December 6, 1990. He stated this was mandated by Governor Bob Miller with an executive order requiring the staff of Archives and Records to examine, in consultation with all appropriate agencies, current laws, regulations and policies dealing with historic state records and preservation of official state records. Mr. Rocha said the agency needed to determine whether the departments have adequately addressed the protection and preservation of public information stored in electronic formats such as disks, audiotapes, and computer equipment. He stated this study was made almost 10 years ago.

Mr. Rocha said the State Historical Records Advisory Board produced a report that identified what Nevada needs to do to "achieve best practices in electronic record-keeping." He pointed out some of the different formats include dictabelts (which are now obsolete), videotape, compact disks, floppy disks, laser disks, and many other types of media whose data needs to be transferred to current media technology. Mr. Rocha explained this is an ongoing project because media technology is in a constantly changing state. He said the position requested would have the responsibility for transferring information from all of these data sources to the new technology that is currently in use. He said that as the technology is changing, the information storage must also change and the information must remain accessible as ordered by Nevada Administrative Code (NAC) 239.760 and NAC 239.780.

Mr. Rocha said Archives and Records could get federal funds to help with this work, but it would help if the division had a professional to do the planning and give guidance to carry out this work.

Mr. Rocha said this module would provide funds to have staff attend the Association of Records Managers and Administrators International Conference, which will be held in Las Vegas in the year 2000, and to increase staff travel for inspecting off-site storage facilities for compliance with state standards. Robert H. van Straten, State Records Manager, said that to date Archives and Records has not participated in this conference.

Mr. Rocha stated that many state agencies are storing their records in substandard facilities. He said Archives and Records would like the ability to ensure "some level of compliance" in regard to its inspections of these outside facilities. He said these facilities have no fire protection or security, and they have vermin and other infestations. He said it must be ensured that whomever these agencies do business with in the private sector meets the state’s minimum standards of the Nevada Administrative Code.

Mr. Rocha explained this module would provide funds for disposal of the agency’s shredded records. He said that about 95 percent of the records sent to Archives and Records end up shredded. He stated the records deal with privacy and confidential statutes, thus they need to be shredded and disposed of properly.

Mr. Rocha said the agency’s basic concern in this area is the need for a new electric-powered pallet jack. He said the manual jack now in use is 15 years old, worn, and a safety hazard and the Archives and Records unit would like to replace it with a new, electronically powered pallet jack. He added that computer upgrades, RAM (random access memory) upgrades, and additional software are also needed.

Mr. Rocha said this module would fund phase III of a shelving project for the State Records Center in Carson City. He said the Archives and Records unit has been addressing the records storage needs of northern Nevada and even some of these needs in southern Nevada, but now additional funds are needed for more shelving. He said that at present there are 36,348 cubic feet, and the additional shelving would increase the storage space to 46,055 cubic feet. He stated this is a substantial records center for a state the size of Nevada. Mr. Rocha said 20 state agencies that had never sent records to State Archives and Records have begun sending them. He explained the Archives and Records unit is trying to get the agencies to bring in their records for handling, storage, and retrieval instead of going to operations that may be substandard. He said Archives and Records currently handles records for 88 state agencies and is temporarily holding 10 pallets for Carson City. He stated the agency is at about 62 percent of its storage capacity.

Mr. Rocha said this module would fund moving the water and gas main near the loading dock behind the Nevada State Library and Archives building in Carson City. He explained the water main blocks access at that location and does not meet Americans with Disabilities Act (ADA) requirements. He said the clearance there is 29 inches and should be 36 inches to meet ADA requirements. He added the gas main was inappropriately placed and is considered a possible hazard because it is too close to the exhaust towers and may cause a problem if there were ever a fire there.

Mr. Rocha stated the Archives and Records unit also needs to replace some lights. He explained that one isle on the lower level of the building is missing lights, and lights are also needed around pillars.

Senator Coffin asked Mr. Rocha how he proposes to acquire the machinery to interpret the original documents, "considering migration of data," and whether Archives and Records have undertaken that project. He asked whether the agency is maintaining VCRs, or computers that play floppy disks and primitive VCR tapes, and whether "this is considered a worthwhile proposition." Mr. Rocha answered the Archives and Records unit is trying to migrate the old records to the new media. He said that to keep the old machines is a tremendous upkeep challenge. He stated that, yes, it might be necessary to keep some of the old machines, but wherever it is possible to migrate the data to current technology then that is what the agency is doing. Mr. Rocha said the agency is exploring ways to migrate all of the old records.

Senator Coffin said the problem is that one never knows how long the current technology will last. Mr. Rocha responded, "Clearly that is the way it is always going to be." He explained the Archives and Records unit tries to stay on top of the changes, and this constant change is what the agency had to do to try to keep up with the changes.

Senator Jacobsen stated he could appreciate the new technology, but there are no maps or other displays of Nevada’s heritage in the Legislative Counsel Bureau building or in the Governor’s Office. He said, "We need to display some of Nevada’s heritage." Mr. Rocha explained the division would certainly be willing to do that. He mentioned there had been some bonds on display in the Senate Committee on Finance room and they would be returned as soon as the staff could get to it. He said that clearly people need to be reminded there was another way to do business before the advent of the computer.

Senator Jacobsen remarked the testimony this morning had covered six counties, but no one could see where any of those places were. He pointed out "some of the people" have never seen the railroad yard at East Ely or the railroad museum in Boulder City. He voiced the opinion historical artifacts are important and are in danger of being lost. He said nothing would be better for Nevada today than to display a big map of state’s public lands, then relate it to the individual counties and the fact that their capabilities are restricted. Mr. Rocha responded, "We are saving many things, but we have lost many things, and we need to ensure that we lose no more."

Micrographics and Imaging – Budget Page MLA-52 (Volume 1)

Budget Account 101-1055

Mr. Sisco stated there was no General Fund money in this budget. He said the revenue in this budget is generated entirely from fees charged. He stated the State Library and Archives took over this program in 1995 and at that time had only simple microfiche and microfilm services. He said that since then there has been a major change in services provided, which has produced quite a few budget requests. Mr. Sisco said this turnaround is due to progressive staff reorganization, to regularly scheduled equipment upgrades and replacements, and to competitive marketing to state and local governments.

Mr. Sisco stated the agency’s expanded services include computer indexing of microfilm records, scanning and storing of images on compact disk (CD) and other optical media, printing of computer reports directly to searchable CDs, and expansion of services directly to county and local governments. He said the Micrographics and Imaging unit is able to provide these services at a lower cost per image.

Mr. Sisco explained this program also provides the experts to assist state agencies’ management to comply with state regulations regarding document management. He said these consulting services are important in addressing each agency’s specific needs.

Mr. Sisco stated the program has received commitments from the Office of the Secretary of State to convert microfilm-based images to electronic images. He said the division also has requests from the Health Division’s Office of Vital Records and Statistics and from the Department of Personnel to convert paper-based reports to CD. He said that due to these commitments the Micrographics and Imaging’s estimated revenue from this source is more than $182,000 for this year alone. He said additional revenues are expected from the Department of Information Technology, the Department of Personnel, the City of Elko, the City of Winnemucca, the Humboldt County School District, and Washoe County Micrographics.

Mr. Sisco said the base budget is Fiscal Year (FY) 1999 "actual" except for vendor services. He said the vendor services category has been adjusted to maintain the level of authority necessary to obtain outside vendor services when excessive volume occurs, inmate services are not available, or a client requires a unique service.

Mr. Sisco explained this module provides for additional funds for training and travel to allow staff to keep up with the changes in technology.

Mr. Sisco said this module contains the agency’s big request in this budget. He stated the module asks for two Program Officer I’s and two Program Assistant I’s to handle increased workloads in microfilming operations and scanning of records to meet the demand for imaging. He stated this decision unit also provides for salary, training, and operating equipment funds. He added that these positions would only be filled if the demands of the program warrant it. Mr. Sisco pointed out the program’s performance indicators have been updated to include projections of up to 2.5 million images to be scanned in FY 2000 and 2.6 million images to be scanned in FY 2001.

Mr. Sisco noted this module provides for replacement of equipment such as a high-speed scanner, a "film writer," fax machine, two major pieces of lab equipment, and computer equipment. He said the micrographics and imaging field is changing so rapidly that in order to maintain cost effectiveness the program must be able to provide the most up-to-date technology to its clients. He stated it will be necessary to buy, in the next biennium, digital microfilm writers, high-speed paper and microfilm scanners, optical storage mediums, and delivery systems. Mr. Sisco said replacement rotary cameras and high-speed workstations are also needed. He indicated most high-speed equipment needs to be replaced every 3 to 5 years.

Senator Raggio asked whether the reserve projection of $150,000 is reasonable. Mr. Sisco said that based on the new commitments the program has, the $150,000 figure may be a little low.

Senator Raggio asked for confirmation the department would fill the requested positions only if the workload requires it. Mr. Sisco confirmed that was the plan.

Nevada State Library – Literacy – Budget Page MLA-56 (Volume I)

Budget Account 101-2893

Ms. Kerschner explained the Nevada Literacy Coalition coordinates the state library’s literacy program. She said the department felt it was important to have a coordinating unit because the funding for literacy comes through so many different budgets including the State Department of Education, Adult Basic Education, Department of Employment, Training and Rehabilitation (DETR), Job Training Partnership Act, and Nevada State Library budgets. She said the program is now involved with the Unified Plan Task Force, and this will require more one-shot appropriations.

Senator Raggio asked whether the funding sources are secure and whether "they are the same." Ms. Kerschner responded, "Yes, they are secure." Senator Raggio inquired about the status of the federal grant for $15,000. Ms. Kerschner replied the department lost the National Literacy Act, but it was replaced with the Library Services and Technology Act (LSTA) grant; that is where the $15,000 comes from.

Ms. Kerschner said there is a new plan in this module to offer incentive grants to local libraries in order to help them support community-based activities.

Senator Raggio inquired whether the transfer from the State Department of Education is for teacher training. Ms. Kerschner responded that yes, this is what the funds are used for.

Emmy Bell, Coordinator, Nevada Literacy Coalition, explained that the funds the coalition gets from the State Department of Education are for a teacher-training grant, which the coalition uses to provide services around the state. She said these funds are used not only for adult education, but also for employee training at the Department of Prisons, Division of Parole and Probation, Health Division, Department of Employment Training and Rehabilitation (DETR), and Department of Human Resources. She said the funds are used for anything that has to do with literacy instruction as well as for working with the volunteer community-organized service clubs around Nevada.

Senator Raggio, referring to "Literacy in Nevada in 1999" (Exhibit H), asked Ms. Bell, "How do we know that we are achieving any success in what we are putting into this literacy program?" Ms. Bell responded the biggest indicator of success is that the coalition is becoming more and more involved "interagency-wise" throughout the state, and that these groups are working together to solve the problem. She said the literacy coalition is working toward eliminating duplication of services and increasing the opportunities for more people throughout the state. She explained the program is currently serving about 10 percent of the adults in need of services in the state. Ms. Bell said the Nevada Literacy Coalition is trying to work with the Welfare Division, DETR, the Family to Family Connections program, the family resource centers, Adult Basic Education, and the prison systems. She stated the agencies are working together to see that there is a more unified system of service delivery. She said the literacy coalition is working on common intake assessment of adults throughout the state by building on the one-stop delivery system so that people who need the coalition’s services will not fall through the cracks and will be served.

Senator Raggio asked where in Reno one would send or take a person who has a literacy problem. Ms. Bell responded the first step would be to call the Nevada Literacy Coalition’s office. She said the coalition has a literacy directory and the coalition makes referrals out of the office, then follows up on those referrals. She said the coalition has put its literacy directory on-line and referred the committee to Exhibit H for the Internet address. Ms. Bell explained that anyone in the welfare office, the Job Training office, or a family resource center could open up the directory on the Internet and print off the listings that are needed, and make referrals from that list.

Senator Raggio asked whether there is an estimate of the number of people in a given year who have overcome this literacy problem and can now read and write. Ms. Kerschner responded there are "pretty good numbers" on people entering literacy programs and earning their General Education Development (GED) certificate. But she pointed out that a number of people have some very basic needs, such as how to read the driver’s license test, and these results are harder to evaluate.

Ms. Bell said the literacy coalition is changing its accountability and record-keeping standard. She said one of the reasons the coalition switched to the Comprehensive Adult Student Assessment System (CASAS) was to enable more accurate measurement of the growth that people have had in their skill development and proficiency levels.

Nevada State Library-CLAN – Budget Page MLA-59 (Volume 1)

Budget Account 101-2895

Ms. Kerschner pointed out this budget has no General Fund monies except those transferred as part of the membership in the State Library and Archives CLAN. She stated the agency is recommending that membership also include the other divisions of the Department of Museums, Library and Arts.

Ms. Kerschner stated there was one major increase in this program. She said the department was able to add Lincoln, Nye and Esmeralda Counties to the membership, and all of the rural counties are now members of this system.

Senator Raggio asked whether Washoe and Clark Counties have their own system. Ms. Kerschner responded yes. The senator asked whether the counties tie in somehow to this system. Ms. Kerschner answered the counties all cooperate with one another. She said it has been very difficult to tie in Lincoln, Nye and Esmeralda Counties because of the telecommunication problems.

Ms. Kerschner stated this is exactly the budget the department proposed and these fees are the amounts the members agreed to pay. She further stated the department is in the process of installing a new computer system to support the rural libraries and the member agencies within the department. She said the new system would be Year 2000-compliant.

Senator Raggio asked whether there is general agreement on the county participation fees. Ms. Kerschner responded yes. She said every member is a "signature member" and has one vote, and the members all approve their budgets annually.

Nevada Arts Council – Budget Page MLA-63 (Volume 1)

Budget Account 101-2979

Susan Boskoff, Executive Director, Nevada Arts Council, explained the base budget reflects recommendation No. 4 of the 1998 base budget audit. She said the expenditure categories have been reorganized to better identify and isolate grants and programs for tracking purposes, and certain expenditure categories were renamed to better reflect their purpose and activity.

Ms. Boskoff stated that with the new level of funding in the base budget the State Arts Council has been able to reach an increasing number of citizens through its grants and programs. Ms. Boskoff, referring to the Nevada Arts Council presentation packet (Exhibit I), stated the information includes statistics on the grants and on all of the program activities. She said the reports were divided into county, city, and program or grant areas. Ms. Boskoff said there has been continuing growth in the number of new and emerging organizations representing music, dance, theater, film, literature, and some cultural and ethnic communities. She said the arts council is expecting a record number of new applications in the upcoming biennium.

Ms. Boskoff said that in folk arts the State Arts Council has been able to get grants from outside sources and has also received regional and national acclaim for some of its projects.

Ms. Boskoff explained that in conjunction with the Nevada State Museum the arts council is developing a 10^th Anniversary Folk Arts Apprenticeship Exhibit. The exhibit would feature arts and crafts, interviews, videotapes of performers, and workshops featuring traditional folk arts from ranches, rural communities, colonies, reservations, and urban centers.

Ms. Boskoff stated the State Arts Council participated in a year-long planning which ended in the coordination of the Great Basin Tribal Gathering that was held last summer. She indicated the committee members had a handout in their packet covering the tribal gathering. She noted the arts council cosponsored that event with the Intertribal Council of Nevada. Ms. Boskoff said the gathering was an outgrowth of the council’s Nevada Native American Cultural Survey, which included Nevada’s 25 Indian colonies and reservations. She said the event attracted 200 Native Americans from the Great Basin tribes for four days of celebration and sharing of their values and traditional arts and practices. She indicated that gathering would be held again this year.

Ms. Boskoff testified the arts council also sponsored the Community Roots pilot program, which has worked with two rural communities, Tonopah and Wells, and with two Las Vegas communities, a Latino group at the Rafael Rivera Community Center and an African American group at the West Las Vegas Arts Center. She said the council is working on training interested citizens in locating, documenting, and programming local folk and traditional artisan practices.

Ms. Boskoff directed the committee’s attention to the publication in their packet entitled Different Hairs on the Same Dog, the Work of a Public Folklorist. She said this piece was produced with the Western Folk Life Center to honor a past staff member, state employee and friend, Blanton Owen, who died earlier this year. Ms. Boskoff said Mr. Owen was a quiet pioneer in Nevada, creating a new way in which public folklorists do business. Ms. Boskoff said his work was extraordinary and touched the lives of many communities in many states. She mentioned the American Folk Life Center of the Library of Congress is looking at publishing a book of Mr. Owen’s photographs and establishing a foundation in his name. She said the State Arts Council will also be featuring an exhibit on his work as a public folklorist, downstairs in the lobby of the legislative building. She mentioned the exhibit will be on display the next couple of months and it will also travel the state.

Ms. Boskoff said the State Arts Council had reprinted the booklet Neon Quilt Folk Arts in Las Vegas, a production of the Nevada State Council on Arts, and it was included in the committee members’ packets.

Ms. Boskoff explained that the Artists’ Services Program, with funding from the Legislature last session, produced a pamphlet that shows the schedule of a legislative exhibition series called LXS on the Road as it travels around the state. She said the publication was developed to serve communities that are culturally and/or geographically isolated for packaged programming. Ms. Boskoff said this exhibit had traveled to Elko and Winnemucca. It will be going to Eureka and Las Vegas and is presently at the Brewery Arts Center. Ms. Boskoff stated the committee would be able to see the exhibit during the Brewery Arts Center’s reception.

Ms. Boskoff mentioned that the Legislative Exhibition Series is on display on the first floor of the legislative building. She said the first artist to be spotlighted, Sharon Maczko, is from Senator Jacobsen’s district, the Western Nevada Senatorial District.

Ms. Boskoff stated that one of the council’s fellowship grant recipients, Charlie Elizabeth Buck from Storey County, called recently and said her first short story has been accepted by The New Yorker magazine, which Ms. Boskoff noted is one of the most prestigious literary magazines in the country. She said the arts council is very proud of having helped Ms. Buck "get where she is going" with the fellowship grant she was awarded.

Ms. Boskoff said the Youth ArtWorks Program, which is a mural project working with "taggers" (youthful graffiti offenders), was highlighted during last year’s Conference of Majors. She said the program was featured in a television show that was filmed at Sierra Nevada Community Arts Theater (SNCAT) in Reno with the U.S. Secretary of Labor, Elixis Herman.

Ms. Boskoff noted that in the art’s council packet could be found documentation of the success of the Las Vegas projects, which she said were of concern to the committee.

Ms. Boskoff remarked that the amphitheater’s construction is coming along well. She explained this amphitheater is located in the Legislative Plaza at the Capital Complex in Carson City, and the Nevada Constitution’s Preamble will be engraved in the sidewalk.

Ms. Boskoff said, in response to Senator Raggio’s inquiry about anticipated federal funding, the State Arts Council will be applying for the partnership grant in October and will be applying for the same level of funding the council received for this year.

Responding to an inquiry from Senator Raggio, Ms. Boskoff said the Office of the Attorney General has been looking at the Cultural Resource Specialist II position in the Folk Arts Program and has determined it is more appropriately a staff position than a contract position.

This concluded the Department of Museums, Library and Arts presentation. Several individuals then gave testimony on various budgets of the department.

Nevada State Library – Budget Page MLA-40 (Volume 1)

Budget Account 101-2891

Clark (Danny) Lee, Lobbyist, Nevada Library Association (NLA), directed attention to the report he had distributed to the committee, Report to the Legislature: Nevada Public Libraries State Collection Development Funding (Exhibit J). He said that in this age of high tech almost all of the $2.4 million appropriation from the last Legislature was spent on books. He said the spending was directed toward the smaller libraries. He stated that Clark County received about 10 percent, whereas Lincoln County received 129 percent, Mineral County 80 percent, and Boulder City 43 percent.

Mr. Lee further stated literacy is part of the NLA’s focus. He said the literacy budget is adequate, but the items cut from the budget and the NLA would like to see returned if there are any funds available.

Mr. Lee noted there is an African American alive and well in the Comstock area, Lucy Bolden, who is a librarian there.

Jeanne M. Munk, Library Director, Pershing County Library, addressing the Nevada State Library budget, asked the Senate Committee on Finance to reinstate the collection development funding for public libraries in The Executive Budget. She said that as Mr. Lee indicated in his Report to the Legislature: Nevada Public Libraries State Collection Development Funding (Exhibit J), this funding greatly benefited the library’s budget. She stated that for the last two years the Pershing library has received funds from this source and noted the library heavily supports the curriculum for Kindergarten through Grade 12 (K-12) as well as the community college courses. Ms. Munk explained the databases on the library’s public access Internet stations benefit the schools and university students who live in the area and commute elsewhere for classes.

Ms. Munk further testified that the number of books and materials the Pershing County Library has had to request from other public libraries, community colleges, and universities has been greatly reduced by the library’s being able to purchase the books and materials. She noted these purchases have reduced the mailing cost associated with returning the borrowed materials. Ms. Munk said these funds have enabled the Pershing library to enhance its CD, videotape, audiotape, and book collections. She said that in most budget years the library rotates the subject areas to be updated. Usually, from six to eight areas are updated. Ms. Munk stated that in 1997 and 1998 the Pershing County Library was able to update 16 subject areas.

Ms. Munk further testified that when the movie Titanic came out the Pershing library had just three items in the library on this subject. But with collection development funds the library was able to increase the number of Titanic-related items to 11. Ms. Munk said that even with the expanded inventory of these items the library was not able to satisfy the demand for this subject. She said that normally, without these funds, the inventory would have been limited to the three items on hand.

Ms. Munk stated that with these funds the Pershing County Library has been able to update whole sections, such as the minerals section. She said the library was able to get rid of all the outdated items and install all new, updated items. She pointed out that the library has never been able to do this before because the funding has had to be spread over the whole collection.

Senator Raggio explained to Ms. Munk that the appropriations made in the past could not be guaranteed to continue and that with the revenue projections as they are at present, a lot of these appropriations cannot be continued. He said the committee members all recognize the worthiness and effectiveness of these projects, so the funding will all depend on whether or not additional funds will be available as reflected in the Economic Forum Report that comes out May 1, 1999.

Nevada Arts Council – Budget Page MLA-63 (Volume 1)

Budget Account 101-2979

Kathie Bartlett, Chair, State Arts Council, said she was grateful the committee did not view the arts as a simple add-on to the budget, but as an important solution to the challenges the state faces in expanding the tourism base, diversifying the economy, and reforming the public education system. She said the council fully appreciates the challenges faced by the budget director, John P. Comeaux, and also the Governor in developing the budget for the next biennium. She said the arts council fully supports the recommended budget but is also committed to accountability.

Ms. Bartlett said the State Arts Council took a constituency survey last year, which she thought the committee would be interested in it. She said the council members took this survey without staff support. They went to the far corners of the state at their own expense to learn first-hand what the council’s constituents were up to, what their dreams are for the future, and how they are doing as an agency. Ms. Bartlett said they knew the grant dollars were very important to the constituents but were surprised to learn that technical assistance provided by staff is of equal importance to them, whether the assistance is in organizing, in planning, or in producing events like the Great Basin Tribal Gathering. She said that staff also gave grant writing assistance to the Artists in Education Program, which has been awarded funds from for the National Endowments for the Arts (NEA) for Las Vegas and Reno. Ms. Bartlett said she thought it was important for the committee to know the constituents were grateful for the staff people who help them build important projects which have a marked economic impact on their communities.

Ms. Bartlett explained the State Arts Council is also undertaking an economic impact study to gain a broader understanding of the arts as an industry. The council hopes to have preliminary results for the committee by May.

Ms. Bartlett requested the committee approve funding for the council whether or not additional funds become available in four months (based on the Economic Forum’s updated projections due out in May). She emphasized the council is just not keeping up with the demands. She said there are at least 50 new cultural organizations in the state that the council has learned of in just the last two weeks. She explained these funds go directly back out to the communities.

Senator Raggio and staff distributed to the committee members a draft on how the committee might review the budget process. He asked that they look at the list and then indicate to the chairman any changes they would recommend.

Senator Raggio adjourned the meeting at 11 a.m.

RESPECTFULLY SUBMITTED:

Johnnie Willis,

Committee Secretary

APPROVED BY:

Senator William J. Raggio, Chairman

DATE: