The Joint Subcommittee on Higher Education/Capital Improvements of the Senate Committee on Finance and the Assembly Committee on Ways and Means was called to order by Chairman William J. Raggio, at 8:45 a.m., on Friday, February 19, 1999, in Room 3137 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.

SENATE COMMITTEE MEMBERS PRESENT:

Senator William J. Raggio, Chairman

Senator Raymond D. Rawson

Senator Bob Coffin

Senator Bernice Mathews

ASSEMBLY COMMITTEE MEMBERS PRESENT:

Mr. Morse Arberry Jr., Chairman

Mrs. Barbara K. Cegavske

Mr. Joseph E. Dini, Jr.

Mr. David R. Parks

Mr. Richard D. Perkins

STAFF MEMBERS PRESENT:

Barbara Moss, Committee Secretary

OTHERS PRESENT:

Richard S. Jarvis, Ph.D., Chancellor, University and Community College System of Nevada (UCCSN), distributed a document entitled "UCCSN FY99-01 Request" (Exhibit C). Dr. Jarvis indicated "Omissions and Inconsistencies" are the most critical need of UCCSN. He said the request for additional instructional assistants was revised from $18.5 million to $17 million, and it was recommended the funds be distributed thus: $9 million to the University of Nevada, Las Vegas (UNLV), $7  million to the Community College of Southern Nevada (CCSN), and $1 million to Truckee Meadows Community College (TMCC). Requests for instructional resources were focused upon the most rapidly growing campuses where the burden of additional student demand is the greatest, Dr. Jarvis remarked.

Asked the basis of the calculation for the amounts identified for UNLV, CCSN, and TMCC, Dr. Jarvis explained an attempt is being made to fund another 1.5 to 2 percent of enrollment to be targeted toward specific institutions where the current rates of growth and the degree of overenrollment are the highest.

Referring to current public discussion regarding the need for a funding study, Dr. Jarvis indicated the Board of Regents requested a bill draft request (BDR) to seek approval for an interim legislative funding study. He said the cost of the study would not be an obstacle and noted the Board of Regents would identify revenues from non-state funds to pay for it.

Commenting that a number of legislators previously committed to an overall study of formula funding, Senator Raggio queried whether it would be a full parameter study of formula funding or something more limited. Dr. Jarvis clarified he was studying the approval of the original Board of Regents’ request for a fully funded study of the formulas used for higher education. The study was done in 1985-1986 and is encompassed in the BDR seeking legislative support. The study would be the basis for identifying areas not presently covered in the formulas and revisiting existing formulas for all institutions, Dr. Jarvis stated.

Senator Raggio indicated a great deal was learned from the 1985 study which involved not only the university, but other sources as well. The senator declared that any study dealing with the funding formula for UCCSN must include broad input and information and objectivity. It must have broad input and be objective and it must not be singly owned by any segment of the university community or otherwise. Senator Raggio speculated that at some point before sine die there will be unanimity across the Legislature for a process that will support a study with those parameters. He emphasized that the budgets of higher education and K-12 (Kindergarten through Grade 12) are major priorities because they represent the biggest portion of the expenditures. Senator Raggio emphasized that the funding study must possess credibility that will only be achieved if the study is perceived as not self-serving for any particular segment of the UCCSN.

Continuing, Dr. Jarvis said flexibility is requested for the overenrolled UCCSN. He explained that enrollment is presently 4,500-4,800 students over the budgeted enrollment for this biennium. Dr. Jarvis pointed out the growth demonstrates creativity and innovation and is a benefit to everyone in the state of Nevada. Although he understood the financial difficulties faced this biennium, Dr. Jarvis asked the committee to consider a lump sum appropriation for the campuses to allow each one to do its best with the funds recommended in The Executive Budget. Dr. Jarvis made it clear he was not seeking a lump sum appropriation to the system, but rather to each campus to allow the individual campuses the opportunity to maximize their flexibility and service to students. The UCCSN can continue to serve more students than was budgeted if permitted the flexibility to do so, Dr. Jarvis emphasized.

Further, Dr. Jarvis pointed out the UCCSN is faced with a serious challenge in managing enrollment and indicated the Board of Regents passed a policy in regard to it. Dr. Jarvis asked the committee to consider modest reallocations when some campuses are underenrolled and others overenrolled. He said the Board of Regents adopted a proposal that would allow up to a 2 percent reallocation program. Dr. Jarvis noted there would be no reallocation if all campuses met their target. The Legislature must ascertain the manner in which the UCCSN can best address the problem of having more students than dollars, Dr. Jarvis remarked.

Senator Raggio queried whether flexibility is suggested as permanent and ongoing in order to allow reallocation between campuses to meet the differential in growth. The senator expressed reluctance to allow this lack of control in the budget oversight process. Dr. Jarvis expressed willingness to try a pilot reallocation program to ascertain its workability. Senator Raggio questioned whether Dr. Jarvis was suggesting a pilot program to determine whether or not the reallocation program could be built into the budget formula. In response, Dr. Jarvis said the pilot program would be acceptable and helpful this biennium.

Senator Coffin queried the reason the reallocation request was for 2 percent rather than 3 or 4 percent. Dr. Jarvis answered the goal is for all campuses to reach and exceed their budgeted enrollment to demonstrate continued educational needs. He said the reallocation program would transfer funds from campuses with a lack of students to campuses with student overload. The reallocation program would give the campuses a controlled incentive and promote good public policy, Dr. Jarvis asserted.

After a short discussion, a determination was made that the UCCSN must obtain permission from the Legislature to implement a reallocation program.

Senator Raggio indicated that during the 1997 Legislative Session the Governor recommended, and the Legislature approved, an accountability report but withheld authority for transfer of the maintenance and enhancement funding until certain information was provided. It was Senator Raggio’s understanding there were deficiencies in the accountability report and consequently the funds were not released. He requested clarification on the matter.

Bob Atkinson, Principal Budget Analyst, Budget Division, Department of Administration, indicated problems were encountered with the initial report and it was subsequently resubmitted. He said the final report is two-thirds complete and will be finished within two weeks’ time. Senator Raggio pointed out there is a need for release of the funds and requested notification as soon as the issue is resolved.

Asked whether the display in the Governor-recommended budget of all maintenance and enhancement decision units by functional area presents a problem, Mr. Atkinson answered no.

Interjecting, Thomas K. Anderes, Ph.D., Vice Chancellor, Finance and Administration, UCCSN, indicated a need for timeliness on the part of legislative fiscal staff and the budget office to enable the UCCSN to react to issues or problems regarding the accountability report. Senator Raggio said the request was appropriate; however, the entities are unable to react until the accountability report is received.

Senator Raggio indicated the regents proposed student fee increases that were not out of line with similar institutions in the western United States. The senator queried whether The Executive Budget authorized the proposed student fee increase up to 6  percent. He clarified that in the event of an increase in enrollment the UCCSN would be authorized to use up to 6 percent, not limited to 2  percent, in fees that could be collected. Senator Raggio further clarified the expenditure was authorized in order that General Fund support would remain within the limitations experienced during this budget cycle. If the percentage went beyond 6 percent the UCCSN would return to the Legislature for adjustment or authorization. Senator Raggio requested a response to his inquiry regarding the manner in which the situation will be accommodated for the biennium.

In response, Dr. Jarvis said it is anticipated the 6 percent goal will be reached with full funding. He was unable to give a definitive answer at present as to whether or not the UCCSN will meet its 6 percent target, but indicated it will certainly do better than 2 percent. He emphasized that the 2 and 6 percent figures were for the system as a whole and cover a wide range of different growth rates for different campuses. Dr. Jarvis said the 6 percent request covers a range from less than 3 percent at UNR or WNCC to greater than 9.5 percent at UCCSN, but will equal out to 6 percent across the system. He stated the growth rates are not uniform by institution nor targeted by region. Accordingly, each campus will strive to meet its target within 6 percent to the best of its ability, Dr. Jarvis remarked.

Senator Raggio said that historically the Legislature has granted authority to allow campuses to cover the cost of instructing more students than were budgeted. Pointing out that this was the manner in which the issue had been addressed in the past, Senator Raggio asked whether there had been discussion regarding how the UCCSN intended to deal with the situation. Dr. Jarvis answered "all of the above" and expressed an intention to press harder on all avenues.

Senator Raggio indicated millions of dollars have been received by the UCCSN from nonresident tuition in the past. He said there had been concern that too much attention was given to marketing for nonresident students because it is a major source of augmented funding. Senator Raggio requested assurance that campuses are not recruiting out-of-state students to obtain augmented revenue at the expense of qualified Nevada residents.

Responding to Senator Raggio’s comments, Dr. Jarvis said the campuses conducted analyses to ensure that enrollment of nonresident students did not reduce access to impacted programs, programs with a limited number of slots, or programs with highly restricted enrollments. Dr. Jarvis indicated that to his knowledge, there is no strategy to inflate out-of-state enrollment to recover funds. Moreover, he said, an attempt has been made to raise out-of-state tuition to reach the point where it will cover the cost of instruction. Dr. Jarvis emphasized that Nevadans are not kept out of classes because of out-of-state students who pay their "full freight."

Senator Raggio indicated that historically, augmented funds were to be used for creating new classes to accommodate additional enrollment, and he requested information which would demonstrate that fact. Dr. Jarvis responded by saying he would like to take a different approach to the problem. He said:

Senator Raggio indicated he was not being argumentative, only attempting to clarify what had been done in the past. He pointed out that during the last biennium the Legislature had an opportunity to more fully address the needs of higher education and additional expenditures above and beyond the original requests had been authorized. Senator Raggio noted that in March 1998 the UCCSN received approval from the Interim Finance Committee (IFC) to augment student revenues on the condition that expenditures in the noninstructional areas would not be maintained in the base budget. Senator Raggio queried whether any of the larger amounts of additional student fees resulting from that approval were used to hire new full-time faculty.

Carol Harter, Ph.D., President, University of Nevada, Las Vegas (UNLV), indicated that UNLV expended $605,000 for $2,500 increases for full professors in order to bring their salaries up to their peer group of faculty. Asked whether it was an equity pay issue, Dr. Harter answered yes. She noted that $482,000 was expended to hire graduate assistants and support personnel, and added that many graduate students teach classes which augment the teaching capacity of the university. Senator Raggio pointed out that approximately $1.5 million was expended on operating expenses, to which Dr. Harter responded the expenditure was instructional operating dollars and did not violate imposed conditions.

Dr. Harter emphasized the costs are related to maintaining and increasing the best faculty for the teaching of a growing student body. She said instructional operating funds are directly related to classroom teaching needs and are used for everything from special book collections, to computers used in the classroom, to student employment to help expand the hours of laboratories. Dr. Harter indicated that UNLV’s instructional support dollars are low in terms of what is appropriate for each faculty member to use in an instructional capacity. She pointed out the money was intended to augment instruction, in some cases to add classes, and in other cases to augment the ability of the professors to teach.

Richard Moore, Ph.D., President, Community College of Southern Nevada (CCSN), distributed a brochure entitled "5 Year Report Card to the People of Nevada" (Exhibit D). Dr. Moore gave his testimony:

Although he applauded Dr. Moore’s efforts in recruiting and mass marketing Nevada’s higher education institutions, Senator Coffin suggested a hiatus due to the problems of rapid growth versus lack of funds. Dr. Moore responded that each week he meets with companies considering relocation to Las Vegas. The companies, although knowledgeable about Nevada’s weather and generous tax policy, always inquire about the state’s trained workforce. Dr. Moore indicated that Nevada’s trained workforce is compared to Seattle, Salt Lake City, Phoenix, and other cities in the western part of the United States. He emphasized that in order to attract business to Nevada it is imperative to demonstrate that the state has a trained community college-level workforce. Dr. Moore stated he never receives questions regarding Ph.D.’s¾ only requests for trained technicians such as are found in Silicon Valley, California. He strongly emphasized that the best investment for Nevada is a better-trained workforce.

Senator Coffin declared it is important to inform high schools about the various forms of educational institutions to enable Nevada students to take advantage of higher education. He stated that the rapid rate of growth and lack of funds has become unmanageable. Dr. Moore remarked, "The unmanageable problem is exactly the problem you want to have." He said it is more desirable to have more people wanting to go to college than there is room for them. He expounded that Nevada does not want the problem of too many prisoners and people on welfare. Dr. Moore pointed out that Carson City, Reno, and Elko have a higher average of people choosing to go to college; however, Las Vegas has the lowest national rate of individuals going from high school to college. Dr. Moore indicated that through his efforts the number of students who went from high school to community college doubled¾ which caused a problem. He called attention to Governor Guinn’s proposal to pay the tuition of every student for four years in college, which he opined is as good a deal as the "G.I. Bill." Dr. Moore indicated that most of the people in the hearing room probably benefited from some version of the G.I. Bill and it changed America. Education has a price tag, it is not free, but it can make Nevada one of the top two or three states in America, continued Dr. Moore.

Senator Raggio broached the issue of administrators who return to the classroom to find their salary range exceeding that of their peers. He commented that this practice is inconsistent with the compensation policies established for other executive branch agencies, and queried whether there is a policy on this issue. Dr. Jarvis indicated there is a policy at the system level for the chancellor, presidents, and vice presidents, should any of those positions be requested to return to the classroom, as well as policies on each campus for administrators other than vice presidents. Copies of both policies will be provided to the committee, Dr. Jarvis said.

Senator Raggio pointed out it appears that salary increases granted to UCCSN administrative professionals in many cases exceed the salary increases provided to state administrative positions. He voiced a concern that disproportionate benefits result when salary increases are applied to highly paid administrators. Dr. Jarvis pointed out a salary study is being conducted that will pull together market factors. He volunteered to share the results with the committee upon completion of the study. It was Dr. Jarvis’ opinion that administrators’ salaries are in line with those in the competitive market situation; however, when the state undergoes difficult financial times there should be scrutiny of highly paid positions. Dr. Jarvis expressed his intention to demonstrate the market factors related to each position. Asked when the salary study would be completed, Dr. Jarvis answered April 1, 1999.

Continuing, Senator Raggio inquired about the cash flow issues at the University of Nevada School of Medicine. Joseph Crowley, Ph.D., President, University of Nevada, Reno (UNR), indicated most medical schools encourage new faculty members to establish clinical practices as part of their medical school responsibilities. Therefore, the medical schools require proper capitalization to support physicians while they are setting up practice. He explained the University of Nevada School of Medicine derives its capitalization from UNR because funds do not exist in the medical school’s budget. Dr. Crowley said it has been the custom to advance funds to hire physicians and support them while they are becoming established. In turn the physicians produce income and over a period of time the university is repaid. He said it is characterized as a loan; however, in reality it is a capitalization fund that emanates from UNR. Dr. Crowley pointed out this arrangement has worked successfully for the past 17 or 18 years.

Continuing, Dr. Crowley said the medical school moved into a managed care environment which placed pressure on the school to retain its ability to educate students while also remaining competitive in the marketplace. Consequently, the School of Medicine experienced some problems due to the new environment. Dr. Crowley said the School of Medicine commenced a new billing system which did not operate as anticipated. In addition, a number of physicians were hastily hired and it took them longer than normal to establish their practices and begin to produce income. He remarked that those two elements led the school to a shortfall of $1.9 million by April 1, l998.

Further, Dr. Crowley indicated the problem was brought to the Board of Regents and development was begun on a system that would bring the costs under control, as well as begin repayment of the debt. He said that by the end of the fiscal year the debt was decreased to $1.3 million; by December 31, 1998, it was approximately $1 million; and it is projected that by June 30, 1999, the debt will be $300,000 and the reimbursement account will be fully balanced by December 31, 1999.

Dr. Crowley noted a full presentation of the system of controls now in place was made previously. He said the prior billing system was abandoned and the earlier system was regenerated and now produces collections. Dr. Crowley further explained that the prior billing system slowed down the rate of collections, which contributed to the cash flow problem.

In reference to a question concerning administrators who return to the faculty, Dr. Crowley said that approximately 12 years ago questions arose in the Legislature regarding the ad hoc practice. He indicated a policy was established which would be provided to the committee. He explained that for every academic administrator, including deans and academic vice presidents, a "shadow" salary is established upon hire. Dr. Crowley said the shadow salary is changed every year in relation to the percentage of salary or merit increase received by academic administrators. Hence, the shadow salary is in place in the event the individual returns to the faculty at the end of his or her tenure in office, Dr. Crowley continued. There is also provided a "step down" of 15 percent per year until the shadow salary is reached, which could take 2 to 3 years. The practice has been followed in virtually every case, Dr. Crowley remarked.

Dr. Crowley commented the financial exigencies facing the state of Nevada this biennium caused the Governor’s budget to reflect an unusual practice wherein all the fees associated with projected enrollment increases are budgeted; however, a similar amount is backed out of the General Fund. Dr. Crowley remarked that this practice carries a negative impact and expressed the hope it will not continue past this biennium.

Concluding his remarks, Dr. Crowley noted the most serious problem with the Governor’s budget is the approach taken by the budget office regarding vacancy savings. He stated the School of Medicine, the Agricultural Experiment Station, and the Cooperative Extension budgets have been disparately impacted by approximately $1.1 million per year. Dr. Crowley stressed that the disparate impact severely affects the research component of those entities. He explained that historically, when grants were received by faculty members, General Fund dollars in the budgets have been used for research. In this event, General Fund-related salaries of faculty members are "off-loaded" onto the grant and the money is used to build up research capabilities. Dr. Crowley pointed out this practice has been effective and reduction of those particular budgets provides a negative impact.

Asked the actual dollar impact on the School of Medicine, the Agricultural Experiment Station, and Cooperative Extension, Dr. Crowley said the salary savings requirement imposed on the medical school is $570,000-plus, which is an increase over the base of approximately $426,000. In the case of the Agricultural Experiment Station the requirement is $558,000, which is an increase of $449,000. In the case of Cooperative Extension, in which research is not an issue, the salary savings requirement is $386,000, and with the increase over the base added, the total is $1.1 million per year, Dr. Crowley stated.

Answering a question regarding the estate tax reserve, Dr. Anderes stated the endowment balance will be approximately $98 million to $99 million at the end of the year. Queried regarding the outlook after adjusting for the proposals in the budget, Dr. Anderes indicated the budget request was based on whether UCCSN can remain at $50 million per biennium in expenditures. Should this be the case, $50 million of expenditures will be sustained indefinitely, Dr. Anderes remarked.

Questioned whether the Governor’s budget utilization of the Estate Tax funds protects the Title IX issues related to women’s sports, the proposed baccalaureate program at Great Basin College (GBC), and the dental residence program, Dr. Anderes answered yes, they are accommodated. Senator Raggio requested information regarding any proposals affecting the balance of the fund and Dr. Anderes indicated he would comply.

Referring to budget account 101-1531, Science Engineering and Technology, Senator Rawson indicated an enhancement was recommended by changing the source from general appropriation to gifts, grants, and donations. The senator said it appeared to be a cut and he requested clarification. Dr. Jarvis explained it was a Governor’s Office proposal and indicated the UCCSN housed the office and contributed to its support for a couple of years. He said he interpreted the enhancement much the same as did Senator Rawson. Senator Rawson suggested perhaps it should be moved back to the Governor’s Office and expressed the intention to look further into the issue.

Mr. Arberry requested information on professional and classified salary increases and how the money was used in 1998 and 1999. Dr. Jarvis said he would provide the information to the subcommittee. Senator Raggio said the utilization of funds is inconsistent with how it is done by executive agencies and requested explanation of the theory and usage of the UCCSN.

Mark Alden, Board of Regents, University and Community College System of Nevada, expounded on three issues:

• Mr. Alden suggested the chancellor of UCCSN, under direction of the Board of Regents, should have flexibility to move funds between campuses.

• Mr. Alden remarked that funds not spent should be carried over.

• Mr. Alden referred to the Governor’s State of the State Address in which the Governor said that times have changed in regard to the state budget and there is a need to be flexible.

Mr. Alden pointed out the chancellor is the spokesperson for the Board of Regents in regard to the budget. He called attention to three action items on the Board of Regents’ February 25-26, 1999, agenda:

1. A review of the current budget for both instructional and support formula funding for both UNLV and UCCSN for inclusion as a supplemental item request. Mr. Alden pointed out the Board of Regents did not plan to impinge on the current budget process; however, he said, the needs in southern Nevada will be addressed, clarified, and sent as a message with the chancellor.
2. A review of the current capital improvement program’s tier 1 request in the priority listing to the State Public Works Board. Mr. Alden indicated the projects should not necessarily be revised, only reviewed, particularly with the addition of four new regents.
3. A discussion with regard to supplementing student tuition fee waivers for student athletes at both UNLV and UNR.

Senator Raggio indicated he did not recollect the university system ever reverted funds back to the General Fund. In response, Mr. Alden conjectured that when it is perceived funds will be lost, funds will be spent. He pointed out the UCCSN should be accountable as public officials and the spending of funds should follow the system mission. Mr. Alden suggested if carryovers were allowed, with some oversight, perhaps between April 1 and June 30 some money would not be spent. Business principles should be brought into the running of public universities and community colleges, Mr. Alden remarked.

Senator Raggio, as chairman of the joint subcommittee, sent a message that if the Board of Regents’ agenda is based upon additional funding coming through the budget process to the university, the overall limit will be dictated by the revenues legally attainable within the Economic Forum projection. The senator said the Economic Forum projection will be forthcoming May 1, 1999; however, at this point in time there is not a high degree of optimism that it will change dramatically to accommodate all those who signed up on the "wait list." Senator Raggio indicated there are areas of the budget outside of education that also have pressing needs. Hence, should the Board of Regents make further requests or changes, there may be no additional funds outside of those already proposed for the university budget. However, items within the education budget may be changed internally, Senator Raggio concluded. Mr. Jarvis said he understood the issue.

For the record, Senator Coffin announced there is a $130 million "rainy day" fund over and above the ending fund balance. He reminded the subcommittee the rainy day fund is there for pressing needs, particularly in areas of the budgets which are highly growth-driven. The senator emphasized the university would qualify if its house is in order and it can make a good case for trimming and reallocating where needed.

In response, Mr. Arberry commented the rainy day fund is not a piggy bank to be opened for specific issues; it exists for critical pressing needs and not a shortfall in the economy.

Senator Raggio indicated discussion would be deferred on the stabilization fund, which has statutory requirements that must be met before it can be determined.

James Richardson, Lobbyist, Nevada Faculty Alliance (NFA), urged the subcommittee to define what will be done in a number of areas as a temporary solution. He indicated that, in effect, the funding formulas are being suspended. The funding formulas have received many criticisms and some are well-earned. Mr. Richardson said, however, that he anticipates the day the formulas can be reinstituted or improved upon with the help of the contemplated funding study. He noted that enrollment growth throughout the system is not fully funded, while Nevada ranks lowest in the country in the proportion of citizens going to college from high school. Mr. Richardson asserted the two issues do not mesh and will require attention. He anticipated hearing from Governor Guinn subsequent to the Governor’s reexamination of the tax structure of the state, which is essential to fund the kind of higher education system needed for Nevada.

Referring to an "enrollment trigger," Mr. Richardson expressed anticipation that there will be extra money on May 1, 1999, to fund a 4 percent enrollment growth, rather than the 2 percent factored into the recommended budget. He said even a binding recommendation from the Economic Forum could be mistaken. Mr. Richardson indicated if the subcommittee wished to make a statement about a high priority item, it could follow the lead taken in 1989 when the "trigger" was established for class-size reduction. He indicated there could be an enrollment growth trigger if on May 1, 2000, the General Fund was over a certain amount. In that event, money could be triggered into the system to help fund anticipated enrollment growth. Mr. Richardson said should that occur, money could be obtained a year earlier than could be attained by waiting for the next legislative session. He urged the subcommittee to consider the idea as a way to relieve the tremendous pressure being experienced by the UCCSN.

In reference to a letter concerning UNLV, Mrs. Cegavske queried whether there were concerns from the faculty regarding complaints pursuant to noncompliance with the Americans with Disabilities Act (ADA). Mr. Richardson answered he had not received that kind of complaint through the NFA chapters and indicated a great deal of money had been expended on the campuses in an attempt to comply with the ADA. He deferred to Dr. Jarvis on the issue.

In response, Dr. Jarvis indicated he did not have an immediate answer but would contact the president of UNLV and return with the information.

Jill Derby, Ph.D., Chair, Board of Regents, University and Community College System of Nevada, stressed the importance of the Board of Regents’ proposed funding study. Dr. Derby said the tremendous growth experienced in the UCCSN is causing severe tension, particularly in the southern part of the state. She indicated the last cycle of budget preparations demonstrated that the formulas no longer serve as effectively as in the past. Dr. Derby said that due to budget constraints, resources are unable to meet growth projections. It is critical to the future of the UCCSN to receive support in its need for the funding study in order to redesign formulas more appropriate to the current time, growth, and demographic patterns, Dr. Derby emphasized.

Mr. Dini requested information on the estate tax including what has been proposed and what can be anticipated as a funding source in the future. He expressed concern about depending too much on estate taxes as a funding source. Senator Raggio reiterated the request to the staff.

Senator Raggio noted budgets will not close until after May 1, 1999, when Economic Forum figures are final. In reference to the "trigger" suggestion, Senator Raggio indicated the Legislature went on record many years ago expressing disapproval of the use of triggers and formal action was taken to discourage their use. The senator suggested the following questions be asked when considering triggers: How many priorities should be triggered? In what order should triggers be placed? Will the triggers become part of the budgets in the future? Senator Raggio opined it was highly unlikely the numbers would be of such consequence as to consider triggers.

June Wisniewski, Lobbyist, Writer/Research Analyst, distributed a document (Exhibit E. Original is on file in the Research Library.) regarding opposition to funding the National Judicial College (NJC). Ms. Wisniewski gave her testimony.

Senator Raggio interjected and questioned what library Ms. Wisniewski was referencing. Ms. Wisniewski answered she was referring to the National Judicial College library. The senator said he failed to understand the connection between the NJC library and the university budget. Ms. Wisniewski indicated her concern was the use of money for operation and maintenance of the NJC building and the Grant Sawyer Institute.

In response, Dr. Crowley indicated that Ms. Wisniewski brought her concerns to the Board of Regents some time ago. He said there is litigation involved in the case to which both Ms. Wisniewski and the NJC are parties. Dr. Crowley stated UNR is not taking sides in the dispute over Ms. Wisniewski’s access to the building. He said her comments regarding the Master of Judicial Studies program are not well-taken. Dr. Crowley reported the American Bar Association (ABA) has nothing to do with the Master of Judicial Studies program and indicated it is a part of the university’s accreditation. He stated the NJC accreditation has been discussed with the Northwest Association of Schools and Colleges and there are no problems. Dr. Crowley indicated it had been explained to Ms. Wisniewski that the report to which she referred was not a product of the author, but of a machine gone awry. There had been a public apology, both to the author of the report and to the reading public, for the poor quality of the report, Dr. Crowley remarked.

Senator Raggio ended the discussion.

There being no further business, the hearing was adjourned at 10:25 a.m.

RESPECTFULLY SUBMITTED:

Barbara Moss,

Committee Secretary

APPROVED BY:

Senator William J. Raggio, Chairman

DATE: