The Senate Committee on Finance was called to order by Chairman William J. Raggio, at 8:00 a.m., on Wednesday, March 10, 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

Senator Dean A. Rhoads, Northern Nevada Senatorial District

STAFF MEMBERS PRESENT:

Judy Jacobs, Committee Secretary

OTHERS PRESENT:

In order to accommodate John P. Comeaux, Director, Department of Administration, Senator Raggio started the hearing on Senate Bill (S.B.) 278.

Mr. Comeaux testified S.B. 278 will provide $15,440,450 as estimated in December to fund class-size reduction. He noted the supplement is required because Estate Tax collections have been much lower than estimated when the budget was prepared 2 years ago. He commented recent estimates indicate $15 million may not be sufficient, and he recommended the final determination be made around the first of May. He explained the bill should be processed now, because recent information from the State Department of Education shows there will be just $3.3 million in the fund as of May 1, and the first payment, due April 1, is $6.8 million. He pointed out a minimum of $11.3 million is necessary to make the April and May payments.

Mr. Comeaux recommended that S.B. 278 be processed in its current form, and that additional requirements to finish the year be considered in early May. He distributed copies of a letter to Assemblyman Morse Arberry Jr. prepared by Don Hataway, Deputy Director, Department of Administration (Exhibit C), addressing the matter.

Senator Raggio made reference to a letter from Douglas C. Thunder, Deputy Superintendent for Administrative and Fiscal Services, State Department of Education, attached to Mr. Hataway’s letter. The senator asked whether Mr. Thunder was in agreement with the suggestion made by Mr. Comeaux.

Coming forward to testify, Mr. Thunder voiced agreement and added that $850,000 is still owed to the school districts for Fiscal Year (FY) 1998. He asked whether the appropriation will allow the State Department of Education to make the overdue payment. He submitted a letter to the committee with attachments showing an analysis of appropriations and revenues and a chart of Estate Tax revenues (Exhibit D). Mr. Comeaux interjected it will be necessary for him to research the matter, although he opined the original estimate should have included that payment in the bill.

Senator Raggio agreed legislative intent should be included with any action on the bill to ensure the payment will be made. In the absence of additional testimony on the bill, he closed the hearing on S.B. 278 and invited Senator Rhoads to present Senate Bill (S.B.) 162.

Senator Dean A. Rhoads, Northern Nevada Senatorial District, acknowledged the provisions of S.B. 162 have been proposed in earlier sessions. He asserted there is no incentive at any governmental level to save money. He pointed out that in the last few months of any fiscal year most agencies will spend down any balance remaining in the expectation that their budgets will be cut accordingly if they do not spend all appropriations. He noted the practice prevails in national, state and local governments.

Senator Rhoads suggested an agency should be rewarded if it provides good service and yet saves money. He outlined the provisions of S.B. 162. He noted the bill includes protection by mandating that state agencies be monitored in such a way that they will not hurt the public through savings, and he reiterated it will be a good way to provide incentive for public employees.

Senator Rhoads related Marlene Lockard, Director, Department of Information Technology (DoIT), had wanted to participate in the discussion but was unable to do so since she had to be in Washington, D.C. to confer on the Year 2000 (Y2K) problem. The senator reported Ms. Lockard has some suggestions for the bill.

Senator Raggio asked whether Senator Rhoads had reviewed the fiscal note to the bill, but Senator Rhoads replied he had not. Senator Raggio stated, "It looks like the university system indicated something like $80,000 a year as a cost of this." As a result of reviewing the bill, he surmised the cost will come out of funds not otherwise spent.

Dan Miles, Fiscal Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, noted the bill has a fiscal note from the Budget Division which indicates there will be no cost to administer the bill, but it fails to address the fact that the measure will reduce the sums which normally would revert. Senator Rhoads interjected that any reversion would be left to the discretion of the Interim Finance Committee (IFC).

Senator Raggio drew attention to page 3, subsection 2, line 7, and asked what effect that would have in a year when the Governor directs agencies to revert funds or to set aside funds as a reserve. He surmised the bill may not address such a directive. Senator Rhoads agreed that may have to be considered.

Senator Raggio wanted to know whether a similar provision is in use anywhere. Senator Rhoads replied it is not, as far as he is aware. Senator Raggio questioned whether some agencies historically have been careful with expenditures, and whether those agencies would be penalized because they have been prudent with spending. Senator Rhoads responded the bill contains a section that allows any agency which has harmed the public need by oversaving funds to be monitored.

There was no further testimony on S.B. 162, and Senator Raggio opened the hearing on Senate Bill (S.B.) 104.

Dr. Keith Rheault, Deputy Superintendent for Instructional, Research and Evaluative Services, testified in support of S.B. 104. Following an outline he distributed to the senators (Exhibit E), he recommended testing regulations commencing with FY 2002-03 in order to bring about compliance with the standards adopted during the past year in English, mathematics, and science under the Nevada Education Reform Act (NERA) of 1997. He explained the current regulations require testing to start next year.

Dr. Rheault stated standards in those areas are being reviewed at the school district level in order to bring them into next year’s curriculum, which is the basic reason for the request. He noted funding to develop criterion-referenced tests (CRTs) to measure achievement of standards for grades 3 and 5 was included in the Governor’s reversion, and thus no testing has commenced as yet.

Dr. Rheault reported the high school proficiency examination to measure standards at the end of high school will be developed and implemented as time passes. He asserted that in order to establish legal defensibility, students must first be given an opportunity to learn. He opined test data next year will not have much value and it would be better to wait until districts and students have had at least 2 years’ notice regarding the content of the assessment program.

Dr. Rheault noted the second proposed change in NERA will extend the dates for achievement testing in social studies once standards are adopted by the State Board of Education.

Dr. Rheault acknowledged there has been some discussion whether implementation of testing will be possible if CRTs are developed for grades 3 and 5 next year. In order to develop the test, he said, it is essential that funding be restored. He declared it will require $285,000 to fund testing development for CRTs for grades 3 and 5. He noted it will take 3 years, until FY 2002-03, to sign a contract, develop the test, implement the pilot test and perform a field test.

Senator Raggio commented S.B. 104 provides an inordinate amount of time regarding the request to implement standards when the state is already so far behind the academic curve. He recalled there were arguments during the last legislative session as to when testing should occur. He pointed out the tests under consideration are standards-based and do not apply to the measurement of school performance. School performance, he said, is measured by the TerraNova norm-referenced test. He asserted a delay in the criterion-based test until FY 2002-03 would be sending a signal to schools that they will have 5 years after the adoption of standards to prepare students to take the examinations. He opined that would be the undoing of all the efforts being made to establish standards. He noted the state already is allowing students 3 years before they will be required to comply with the standards. He recalled the State Department of Education argued it could adopt standards "better, cheaper and faster."

Senator Raggio reiterated the proposal will negate the efforts that have been made. He asked what minimum amount of time will be necessary to comply. He recognized that former Governor Miller imposed a reversion and the department selected the area in which to revert over $200,000 but admitted it would not be ready to expend those funds anyway. Senator Raggio declared he wanted to keep in mind the efforts put forth by the Council to Establish Academic Standards for Public Schools.

Dr. Rheault and Senator Raggio agreed the time frame for students in grades 3 and 5 can be separated from the time frame for high school students. Senator Raggio pointed out students in the lower grades can continue to be promoted, regardless of what is on the test. Dr. Rheault responded the academic standards council adopted standards for grades 2, 3, 8 and 12. He noted the board was concerned with the high-stakes proficiency test for high school students.

Senator Raggio commented that Dr. Rheault’s proposal for an extension would mean children who are only 4 years old now will be the first class to be tested, since the test occurs at the end of the third grade. The senator suggested that is not acceptable.

Dr. Rheault stated that questions may be ready by spring if funding is received and a contract can be let to develop the test. Senator Raggio requested that Dr. Rheault confer with the staff and find a way to avoid an unreasonable delay.

Dr. Rheault added the academic standards council had a copy of the bill draft and supported delaying the test. He said, "I think, again, it has to do primarily with the exit exam of the high school proficiency and not necessarily grades 3 and 5." Senator Raggio noted the bill addresses all of the standards. Dr. Rheault agreed to reconsider the best estimate of time as to when the test can be put out if funding is received.

Debbie J. Smith, Lobbyist, Council to Establish Academic Standards for Public Schools, Nevada Parent Teachers Association (PTA), stated the council adopted a position supportive of an extension of time for the tests to be administered in conjunction with the standards. She acknowledged no specific date was supported but the council agreed next year would be too soon to administer the first tests. She reported the council has met with many classroom teachers, curriculum specialists, and national consultants, and at every meeting it was suggested the state should proceed very carefully to ensure students have an opportunity to learn the new standards, that the curriculum is aligned, and that all the steps are in place.

Senator Raggio reiterated the extension proposed in S.B. 104 is too long. He suggested that Ms. Smith participate in discussions with Dr. Rheault and the legislative staff. Ms. Smith offered to join those discussions. She noted for the record that she receives no pay for either her position on the council or as president of the Nevada PTA.

Speaking as the president of the PTA, Ms. Smith opined the tests are not "high stakes" in the area of accountability, but she asserted they are high-stakes tests for students and parents. She declared that any time test results and recommendations are given to parents, they are high stakes.

As the parent of children in grades 2 and 12, Ms. Smith related that when her oldest child started school she was advised not to put much stock in test scores. She noted her children scored well. She said that as her oldest child moved through the system, many decisions were made based upon test scores, making the scores very high-stakes items. She explained the scoring determined matters such as whether the child would be placed in a pre-algebra class, or whether the child would place well for college or scholarships. She acknowledged accountability may change over the years, but in the immediate future there is impact for parents and students.

Senator Raggio argued the longer incentives or mandates to impose standards are delayed, the higher the stakes will be for students who are not being taught to the prescribed level. He reiterated the necessity to act as soon as possible. Ms. Smith voiced agreement that incentives will be higher once the standards are set. She repeated the academic standards council is aware the tests are critical to the success of meeting the standards.

Charles (Steve) Williams, Lobbyist, Washoe County School District, reported the testing director of the school district requested that he make comments in support of allowing more time for learning the standards prior to testing. Mr. Williams asked to participate in any dialogue regarding modification of the provisions of the bill. When asked by Senator Raggio whether he agreed 3 years is a long time in which to accomplish the goal, Mr. Williams replied he was informed that at least a year is necessary to establish the standards.

There being no further testimony on S.B. 104, Senator Raggio opened the hearing on Senate Bill 110 and Senate Bill 170, saying they could be heard together.

Henry Etchemendy, Lobbyist, Nevada Association of School Boards, referred to S.B. 110, which he described as one of several bills before the Legislature dealing with the growing problem concerning at-risk students. He noted S.B. 110 attempts to improve the educational climate for those pupils.

Mr. Etchemendy said the statutes presently allow school districts to establish alternative programs, with the approval of the State Board of Education. He noted the cost of alternative education is higher than that for normal programs due to a number of factors, and in order for those programs to succeed, state funding is being sought. He stated S.B. 110 will allow those programs to continue through appropriations of $3 million in each year of the biennium. He explained the funds will be distributed according to the per-pupil ratio relative to the number of such students throughout the state.

Mr. Etchemendy suggested that not only will the funding assist those school districts already offering such programs, but also it will encourage other districts to get involved with programs for at-risk students. He declared Nevada has a serious dropout problem, and dealing with those students is critical.

Senator Raggio commented S.B. 110 appears to be rather generic regarding the programs offered. He inquired what kinds of programs are intended. Mr. Etchemendy responded the proposed measure references Nevada Revised Statutes (NRS) 388.537. NRS 388.537 has provisions regarding at-risk students including extenuating circumstances such as being pregnant, chronically ill, or self-supporting, deficiencies in academic credits, chronic absenteeism, or needing instruction on a more personal basis.

Senator Raggio inquired whether there are any federal funds available for programs of that type. Dr. Rheault responded there are none specifically available for alternative programs.

Larry L. Spitler, Lobbyist, Clark County School District, introduced Dr. Maria Chairez, Director, Secondary Success Programs, Clark County School District, who oversees dropout programs for the district. Dr. Chairez concurred no federal funds are available specifically for dropout students, although in 1991 such funds were available for dropout prevention and recovery. She reported the Clark County School District utilized those funds to start programs, but the funds are no longer available.

Senator Raggio asked how much Clark County received. Dr. Chairez answered the county received approximately $3 million, which was used to start Horizon High School, an alternative school which now utilizes four campuses throughout the county. She said the high school is able to offer high school diplomas to students, and once students return to an educational setting the district is able to include them in the daily count and absorb the program through General Fund appropriations.

Senator Raggio requested that both S.B. 110 and S.B. 170 be addressed considering the likelihood funding will not be available, and he asked whether an alternative may be possible. Mr. Spitler suggested an alternative may be available. He said the educational coalition has met with representatives of the Legislative Counsel Bureau to explore alternatives. He explained that while the coalition was deliberating the Nevada Education Reform Act (NERA), members agreed resolving the dropout problem should be deemed a major component of the effort to increase standards and student performance. He quipped the bills could be named "DERA, the dropout education reform act."

Mr. Spitler acknowledged many bills have been introduced requesting great sums of limited money, posing a challenge to the coalition to find ways to assist dropouts. He declared the three strongest components are being able to find at-risk students, preventing them from dropping out, and recovering those who have dropped out. He noted research indicates over $11 million is necessary to fully address the problem, which he admitted is not available.

Mr. Spitler suggested that in order to maximize the use of funds, the problem should be viewed from a comprehensive, statewide perspective "rather than requesting funds for individual districts." He said the two bills ask for a total of $18 million, but the coalition asks for $300,000 to begin to address the dropout issue as outlined in a paper (Exhibit F) he distributed to the committee. He opined $300,000 should fund a position within the State Department of Education to mitigate a statewide drug problem. He proposed the person in that position should have sole responsibility to set up focus groups to find out from children, parents, educators and the business community why children leave school. He estimated only $50,000 of the $300,000 requested will be sufficient to start the focus groups.

Saying he has been working on the problem for over a year, Mr. Spitler called it troublesome that there are many groups addressing the problem but in many different ways. He suggested the Legislature should move forward to study the problem in order to establish policy in 2001.

Senator Raggio wondered whether the proposal replicates a study under way by the State Department of Education regarding reasons why students drop out. Mr. Spitler responded a report was made, but he declared, "There’s not one place where all of this information and knowledge resides from a statewide perspective." He asserted the implementation of the Statewide Management of Automated Record Transfers (SMART) will contribute greatly to the success of knowing when children drop out of the system. He noted Clark County is the only county that still must complete its program for the SMART system, but the county is requesting that completion of only half of the $9 million program be required now with the remainder to be completed in 2001.

Mr. Spitler pointed out a bill has been proposed for an intersession summer school program that requests an extension of the school day and provision of additional educational opportunities for all students, not just those at risk. He noted it is not always the at-risk student who drops out of school. He declared it will be extremely helpful if SMART, the bill for summer school, and the requested $300,000 appropriation are approved.

Senator Raggio stated it will be very useful to members of the Legislature if suggestions can be made as to what measures are most essential. Mr. Spitler agreed to provide the information.

Senator Raggio asked whether students qualify for the count while enrolled in the alternative program. He also inquired whether those students attend school full-time. Dr. Chairez responded that in Clark County the alternative high schools are funded on the same basis as any other high school, and apportionment funding is provided for them in the third week of the semester, just as with other schools. She said the students attend full-time.

Senator Jacobsen requested that a dropout list for every school district in the state be provided. He expressed amazement that so many students drop out. He agreed some positive measures need to be taken to provide incentives for children to continue their education, whether it be academic or technical training.

Mr. Etchemendy opined the focus groups can provide valuable information for the next legislative session. He offered support for the proposal put forth by Mr. Spitler.

Senator Raggio asked who makes up the education coalition. Mr. Spitler replied it includes members of the State Department of Education, the Parent Teacher Association (PTA), the Rural Alliance, the Washoe County School District, the Clark County School District, and the Nevada State Education Association (NSEA).

Senator Raggio asked whether the coalition proposes contracting out some of the components of the proposal. Mr. Spitler replied the coalition has considered contracting out the management of focus groups. He opined there is no clear understanding of why children leave school. He explained informal research indicates children do not always drop out of school for the reasons perceived by adults. He noted some children find school boring, and a professional understanding is necessary to make appropriate proposals. He opined it will be necessary not only to adopt standards, but also to train teachers how to recognize signals from students who may be on the verge of dropping out.

Senator Raggio commented the lack of parental concern may be the prime reason students drop out. In the absence of further testimony, he closed the hearing on S.B. 110 and S.B. 170, and opened the hearing on Senate Bill 187.

Mr. Spitler reported the education coalition combined the elements of several bills addressing the same problem into this one measure. He stated those bills are Assembly Bill 13, Assembly Bill 145, and Senate Bill 187.

Mr. Etchemendy pointed out A.B. 13 came about as a result of interim studies on discipline and special education chaired by Assemblywoman Chris Giunchigliani, and A.B. 145 is the product of the Nevada Association of School Boards. He noted both have been heard in the Assembly, and S.B. 187 represents a compilation of the two. He explained the term "intersession school" is being utilized instead of "summer school" due to the prevalence of year-round schooling.

Mr. Etchemendy said S.B. 187 calls for an appropriation of $2 million in each year of the biennium to fund intersession schools. He explained the schools will make application to the State Superintendent of Schools for a portion of the funds. He pointed out the bill provides funding similar to that appropriated for vocational education, thus enabling schools to receive a basic allocation and a per-pupil apportionment based upon enrollment within the districts. He stated each district that participates in a program will receive a basic allocation of $3,000, and there will be a pro rata appropriation for each pupil enrolled in summer school related to the total enrollment throughout the state.

Mr. Etchemendy added the association feels the State Department of Education should be allocated 2 percent of the funding for administrative expenses. He explained the association felt the department should make recommendations to the districts and should report back to the Legislature regarding the success or process of the intersession programs throughout the state.

Senator Raggio inquired how the intersession schools will differ from other remediation programs. Mr. Etchemendy opined they will be similar and they will resemble other summer schools consisting of two segments of 4 weeks each, or one segment of 6 weeks. He noted most are based upon a fee paid by the students for enrichment or academic credit. He explained that many districts find those who need the summer school most do not attend, so the program should provide an opportunity for those students.

Senator Raggio asked whether there are any federal funds available for the program, since it is a remedial program, although it is designed to assist students who desire to obtain additional academic credit or complete additional coursework. Mr. Etchemendy responded the latter refers to coursework that is not remedial in nature. Senator Raggio asked why the state should pay extra for subjects normally offered as part of the ordinary curriculum simply to advance the students. Mr. Etchemendy replied the courses are normally provided on a fee basis during intersession. He said that while the bill will not preclude state funding for a portion of a summer school program, it will require those who want extra credit to pay the fee.

Senator Raggio noted the proposal seems to be a departure from the subject of remediation. Mr. Etchemendy responded the measure is basically for remediation but the program applies to the other students as well. He agreed there may be a necessity to work that out.

Senator Raggio asked whether the school sessions will adhere to remedial programs already authorized, or whether they will consist of something innovative. Mr. Spitler reiterated the bill is not entirely aimed at remediation. He suggested children will learn better if they are provided more opportunity and the school day is lengthened. He asserted the focus should be on more than just the area of remediation. Dr. Chairez added there is no federal funding set aside for summer school, but there is funding for low income children who qualify under Title I, although it is restricted to those students. She explained the districts could use some of those funds for intersession or year-round schools, but generally summer school is a self-funded program. She explained that if a parent cannot pay the $40 or $80 for the course, the children do not participate. She related that last year 11,000 students participated in summer school, but that did not reach a number of students who failed courses and should make up classes during the summer.

Senator Raggio said he wished to delineate the programs that take priority, and those should include remediation in order to reform education. He suggested there is a need to decide how some of the proposals fit in. He pointed out that whatever funds become available for those programs determined to be priorities should be marshaled. He noted those programs include remediation, teacher training, assessments, and testing. He questioned whether the proposal would be an addition to existing remediation programs, or whether it would be in lieu of existing programs. Mr. Spitler responded the coalition is mindful of the funding problem and has tried to work together to pare all the requests. He indicated the various remedies are being proposed in the event sources of revenue become available.

Senator Raggio asked how the success of the programs will be measured. Mr. Spitler replied they will be measured through pretesting and posttesting with critical evaluation. He argued it is necessary to test in order to determine what does or does not work. He pointed out that for years, funding was provided without any follow-up evaluation due to a lack of funds. He asserted programs that fail to work as proposed should be discontinued.

Senator Jacobsen wondered whether examples of similar programs in other states could be given. Mr. Spitler responded Nevada is unique in that it is experiencing such rapid growth. He noted it is very difficult to track students when many families move into the state and then they "just leave." He suggested the dropout rate may be high due to a lack of means to find a child that may have left the state or country, or even who has simply moved to another side of town. He asserted the SMART program will provide a multitude of information upon which to base policy decisions because it will track those children who stay within the state.

Mr. Spitler acknowledged the number of dropouts is a problem throughout the United States, and though it is high here in Nevada, he asserted the numbers can be reduced. He opined it will not be terribly expensive if the proper resources are available. He suggested the main impact will derive from focusing on the problem. Senator Raggio insisted Nevada must focus on the dropout rate.

There was no further testimony on S.B. 187. Senator Raggio opened the hearing on Senate Bill 188.

Mr. Etchemendy stated the bill came from the Clark County School District and the Nevada Association of School Boards. He explained the bill addresses employees within school districts who, with proper education, could develop into teachers and become part of the profession. He stated the bill will appropriate $500,000 to enlist districts in efforts to train these people by providing funding for tuition and books to prepare the participants to become teachers. He noted many are active in the schools as instructional aides and support staff.

According to Mr. Etchemendy, the second portion of the bill addresses out-of-state participants who would be eligible if they are in special fields for which teachers are difficult to find, such as speech pathology and psychology and self-contained special education programs. He suggested teacher candidates from other states might be encouraged to come to Nevada for practice teaching by compensating them. He asserted that will help local school districts to enlist their services. He noted that any funds remaining after June 30, 2001, will be reverted to the General Fund.

Senator Raggio asked how instructional aides are selected. Mr. Etchemendy replied most schools have openings for which applicants are interviewed, and only some of them have an educational background. Dr. Chairez explained that usually the minimum criteria is a high school diploma, but in general no college is required. She said candidates are interviewed and undergo background checks.

Senator Raggio pointed out those who are desirous of becoming teachers would be required to take university courses to achieve certification. He asked whether the bill is designed to pay their tuition. Mr. Etchemendy replied it will pay a portion of tuition and materials. Senator Raggio noted that could take several years.

Senator Neal commented the idea of recruiting teachers from out of state is good. He wondered whether it may be possible to tap into the pool of students who are required to perform student teaching. He noted student teachers from other states become eligible for hire once they have taught within a particular system. Mr. Etchemendy pointed out that is encouraged within the bill on lines 12 through 14 in section 1 in the hope those students will be enticed to teach within the state.

Senator Neal asked whether that is a new proposal, noting that it will allow teachers to cross jurisdictional boundaries. He wondered whether any problems are anticipated under such a program. Mr. Etchemendy responded there should be no problem, since the bill should provide an incentive for students to perform their student teaching in Nevada. Senator Neal endorsed the idea. Dr. Chairez interjected there is a pilot program in existence in which students from Slippery Rock University in Pennsylvania perform student teaching in Clark County. She said Slippery Rock University professors accompany the students to Nevada, and Clark County coordinates the housing program for them. She noted the program has been very effective in encouraging many of those student teachers to stay and teach in Nevada after they perform their practicum here.

Senator Raggio asked why there is a need to pay stipends to mentor teachers, since they are already teachers and the object is to attract new people into the profession. Mr. Etchemendy responded the stipend is to remunerate teachers for taking time beyond their normal workday. Dr. Chairez noted the Clark County School District has a mentor program consisting of volunteers who assist after hours.

Senator Raggio requested an explanation of paragraph (e) on the second page of S.B. 188 regarding future teachers’ organizations. Dr. Chairez responded that Future Teachers of America is a club which operates at the high school level in an attempt to attract young people into the field of teaching. She explained other states have experienced success through the clubs by identifying students early, in their sophomore year. The club has sponsored student visits to colleges or elementary schools where students participate in hands-on experiences to promote the teaching profession. Senator Raggio speculated whether other professions would want similar clubs in schools to attract students into their fields should funding be provided for the future teachers clubs.

Al Bellister, Lobbyist, Nevada State Education Association (NSEA), offered support for S.B. 188 with the inclusion of an amendment (Exhibit G) to item (c) on the first page, lines 10 and 11. He reported NSEA proposed to change the wording after the word "designed" so the section would read:

Mr. Bellister explained the alternative route already exists in regulations adopted by the Commission on Professional Standards for areas of high need, including special education and bilingual education. He said the alternative route requires coursework in pedagogy, but it waives the student teaching requirement when candidates are assigned a mentor teacher. He supported the current system and rued any change that would broaden the system or incorporate a lack of consistency for people pursuing a route to alternative licensure. He reiterated his opinion the process should stay within the purview and jurisdiction of the Commission on Professional Standards.

Senator Raggio asked why there should be an additional cost to an alternative route to licensure. Mr. Bellister surmised there might be a tuition reimbursement for the pedagogy requirements. Mr. Etchemendy interjected the additional cost would be something that a district might develop in its own program.

Senator Raggio wanted to know whether the proposal was to assist in degrees outside of the educational field. Mr. Etchemendy indicated the regulations make those requirements with respect to alternative routes. He explained the purpose would be to utilize funding in the event a district should develop some sort of internal special development programs to involve students in actual teaching strategies and methods.

Senator Raggio requested that clarification be provided to the staff.

Dr. Rheault testified in support of S.B. 188. He reported there will be some federal funding available under Title II of the Higher Education Act. Although it is competitive funding, he said the state could apply under two different appropriations, one for teacher-quality improvement including licensing and education programs, and one for teacher-recruitment funding. He said the latter sum is estimated at $500,000 a year for approximately 20 states for a 3-year period.

Senator Raggio asked whether the funding is already approved, or whether it is still in proposal form. Dr. Rheault responded the applications came out on February 18, and the state must apply by April 16. He reported he met with representatives of the Clark County School District and the University of Nevada, Las Vegas (UNLV) and he intends to meet with the deans regarding the grant. He noted the priorities listed in S.B. 188 are allowable under Title II. He surmised the state has a good chance of obtaining the federal funds because of the population growth in the state.

Senator Raggio commented that if the program starts with one-shot federal funds, it will have to be continued on an ongoing basis. Dr. Rheault said the funding is similar to recruitment funding that started special programs around 1993 or 1995 which the school districts have had to continue. He noted that last fall, in response to an inquiry, 300 staff members and aides in Clark County indicated they would be interested in participating in the program. He reported many of those have completed community college or university coursework. He opined the program will provide a good source to encourage minority individuals to enter the system. He acknowledged the department will not know whether the state will receive the funding until June 15.

In the absence of further testimony on S.B. 188, Senator Raggio opened the hearing on Senate Bill 214.

Mr. Etchemendy spoke on behalf of Pershing County, which requested the bill. He noted that for three successive legislative sessions the Budget Division has developed a budget in conformance with the bill. He said that several sessions ago the accumulated ending fund balances within various school districts were utilized as a revenue source for the development of the Distributive School Account (DSA). He explained school districts with ending fund balances were unable to use those funds for other purposes because the funds were used for the DSA. He stated that 3 years ago the Budget Division discontinued including those ending fund balances in the computation of the budget.

Mr. Etchemendy opined the school districts should have a statute upon which they can rely in order to protect them when they build ending fund balances to be used for their own purposes. To illustrate the point, Mr. Etchemendy distributed a sheet (Exhibit H) outlining total support for school districts from the DSA. He reviewed the figures on the sheet to demonstrate there has been a loss of approximately $12 million to the school districts.

Senator Neal commented it would be difficult to make up a budget and not include the unobligated funds under generally accepted accounting principles (GAAP). Mr. Etchemendy rejoined that the sums demonstrate the ending fund balances within school district budgets, not the ending fund balances within the DSA. He said the school districts utilize the ending fund balances as opening fund balances when they develop their own budgets. He asserted the school districts should be allowed to use the ending fund balances.

Mr. Etchemendy took note the funds are no longer available to the school districts who developed them when the state uses those ending fund balances as a revenue source. He reiterated that is the current practice which he averred should be perpetuated in law.

Senator Raggio pointed out that has not always been the case. He noted the current budget includes $50.8 million in ending fund balances, so recent practice referred to by Mr. Etchemendy is not part of the Governor’s proposal. Senator Raggio surmised the state has not received a complete picture of the financial situation of the school districts.

Mr. Etchemendy stated each school district shows the ending fund balance as an expenditure and considers that when developing new budgets. He noted the Douglas County School District has opened several new schools based upon the accumulated ending fund balance. He said other districts have been impacted by lower net proceeds than estimated and have relied upon ending fund balances. He repeated his opinion the recent common practice should be put into statute.

Senator Raggio asked for further comment, and hearing none he closed the hearing on S.B. 214. He asked for committee consideration of S.B. 278.

Senator Raggio undertook budget closings for the Department of Administration. He pointed out these budgets have been reviewed by the staff and will not necessitate formal hearings. (Staff recommendations are included as Exhibit I.)

DEPARTMENT OF ADMINISTRATION

Indigent Supplemental Fund – Budget Page ADMIN-27 (Volume 1)

Debbra J. King, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, stated both funds receive appropriations through a property tax assessment. She provided two pages (Exhibit J) indicating the recipients of each fund.

Ms. King said the Indigent Supplemental Fund derives funds from a 1 cent per $100 of assessed evaluation tax which is used to pay counties for care provided to indigent persons. She said the staff recommends the budget be closed according to the Governor’s recommendation.

Senator Raggio noted the expenditures as indicated in the Governor’s budget will be $4.5 million and $4.9 million in the 2 years of the biennium.

Senator Rawson asked whether those figures represent the disproportionate share (DSH) payment. Ms. King answered no.

Senator Rawson observed there are a number of hospitals in serious financial trouble throughout the state. He wondered whether there are measures to assist those hospitals to keep them running. He averred the rural communities will suffer greatly if their hospitals close. Ms. King stated the 1-cent tax for the Indigent Supplemental Fund and the 1.5 cent for the Indigent Accident Fund from property taxes go into an account and the hospitals and counties then submit claims to the Nevada Association of Counties (NACO), which determines the claims to be paid. She said the payments are shown on the exhibit. She explained that not all the funding goes to the hospital as indicated under the Indigent Accident Fund, because the funds are shared with ambulance firms and doctors.

Senator Rawson asked why there is a zero indicated for some hospitals under FY 1998. Ms. King replied every hospital that submits a claim is paid something, and the figure zero indicates there were no claims.

Senator Jacobsen agreed with Senator Rawson, saying most of the rural hospitals are in dire trouble primarily due to senior citizen claims. He suggested it would be helpful to have a representative of NACO appear before the committee to answer questions. Ms. King responded the NACO representative was attending another meeting, but she has discussed the closing figures with NACO.

Senator Raggio recalled the Indigent Accident Fund covers accident victims who are residents of other areas. Senator Jacobsen noted most of the ambulance service in the rural counties is furnished by volunteers. Senator Raggio said that without the indigent accounts the rural counties would be in even more serious trouble.

Ms. King reported the staff recommended closing budget account 628-3245 according to the Governor’s recommendation. Senator Raggio announced the Governor-recommended authorization for expenditures of $7.3 million and $8 million in the 2 years of the biennium.

Budget Account 101-1017

Ms. King explained the Deferred Compensation Committee is funded through a $4 per year assessment for participants in the state Deferred Compensation Plan. She said staff recommends the budget be closed as the Governor recommended. She noted the budget is slightly more than in previous years, as it provides a small office, and the Department of Administration will handle their accounting.

Dan Miles, Fiscal Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, introduced Jim Rodriguez, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, who has been assigned the Division of Insurance and the Department of Information Technology budget accounts, among other areas of expertise.

Mr. Rodriguez stated the staff recommends closing budget account 101-3821 in accordance with the Governor’s recommendation. He noted the account is set up to pay insurance claims that have been approved by judgment of the courts, and the maximum balance of $40,000 is set by the statutes.

Senator Raggio asked how many claims have been paid, historically, under the program. Mr. Rodriguez said he could furnish the information later. He noted the account maintains $40,000, and the balance goes to the education fund. He said each licensee pays an initial fee of $15 and then annually an assessment of $15. He doubted any claims have been paid from the account to date.

* * * * *

Insurance Self-Insured Insolvency – Budget Page B&I-98 (Volume 2)

Budget Account 210-3804

Again, Mr. Rodgriguez indicated the staff recommended closing the budget in accordance with the Governor’s recommendation. He said there have been no claims on the account to date. He noted the budget has a limit of $3 million or 20 percent of the security deposits in the account.

National Association of Insurance Commissioners –Page B&I-99 (Volume 2)

Budget Account 101-3828

Mr. Rodriguez said the staff recommends closing the budget according to the Governor’s recommendation.

Senator Raggio recalled the funding will allow the commissioner to attend national association meetings. Mr. Rodriguez added it will also allow her staff to attend, and the fund is derived from assessments in the industry. He indicated the $58,000 in funding is the same level as provided in FY 1998.

Senator Rawson related he has attended several of the meetings and he believes participation is valuable.

Insurance Cost Stabilization – Budget Page B&I-101 (Volume 2)

Budget Account 101-3833

Mr. Rodriguez reported the staff proposed adjusting the base for a onetime FY 98 appropriation provided by the 1987 Legislature when the insurance division lost its actuary. The chief actuary retired, and additional funds were appropriated in an attempt to attract a viable candidate to replace him. He explained that the funding was intended as a one-shot appropriation, but later it was included in the base budget.

Mr. Rodriquez said that in late December the Division of Insurance experienced difficulties in the network. It crashed totally in January, causing the department to be idle for 4 days. He explained that the adjustment in E-710 reflects the accelerated use of much of the funding for the network upgrades, and the division’s reassessment of the remainder of the network upgrades. It also includes transfers from budget account 101-3813, Insurance Regulation, so that all the division’s computer equipment will be funded from one main account, budget account 101-3833.

Senator Raggio asked what the net reduction will be in the authorized budget. Mr. Rodriguez replied the net reduction will be $2,224 in FY 2000 and $4,159 in FY 2001.

Insurance Self Insured Employers – Budget Page B&I-108 (Volume 2)

Budget Account 101-3802

Mr. Rodriguez indicted the staff recommended closing the budget in accordance with the Governor’s recommendation.

DEPARTMENT OF MOTOR VEHICLES AND PUBLIC SAFETY

Emergency Management Assistance Program – Budget Page DMV-126 (Volume 3)

Budget Account 101-3674

Ms. King explained the program is a pass-through program, and staff recommends that both revenues and expenditures be increased by $284,769 in each year of the biennium to reflect actual projected grant receipts for FY 2000 and FY 2001. She noted the grants are passed along to local governments.

Senator Raggio asked whether that includes volunteer organizations and what types of uses are directed under the budget. Ms. King responded counties or cities use the funds for emergency planning, for assistance if it is needed to develop emergency plans, or for equipment to fund emergency operations.

Senator Jacobsen noted there are federal funds involved which the rural areas have used for hazardous materials mitigation. He said counties and local governments use the funds, for example, to identify sites where chemicals or other hazardous materials are stored.

Senator Raggio asked what happened to funds other than Federal Emergency Management Agency (FEMA) funds that once came into the budget. Ms. King replied the fire suppression funds were used for the Belli Ranch fire, and if the cost of fighting a fire exceeds a certain level the state can request refunds from FEMA for reimbursements for some of the costs. She confirmed Senator Raggio’s notion those are the only funds available right now that will continue on an ongoing basis.

Ms. King explained the grant also passes funds through to local governments and local state agencies from the federal Highway Administration Traffic Safety Program. She said staff recommends closing the budget in accordance with the Governor’s recommendations.

* * * * *

Highway Safety Plan and Administration – Budget Page DMV-211 (Volume 3)

Budget Account 101-4688

Ms. King indicated several changes are recommended by the staff. She pointed out that any expenditures changed must be balanced by changes in both federal revenue and Highway Fund revenue. She noted a salary expenditure was increased because a position was filled at a higher-grade step than what had originally been included in the Governor’s budget. She clarified the adjustment is small because the position was filled after the Governor’s recommendations were completed.

Ms. King drew attention to calculations in the maintenance decision unit M-100 for inflation. She indicated the budget includes not only the Highway Safety Plan and Administration, but also the bicycle and motorcycle accounts. Budget account 101-4688 requested three pagers and three cell phones, but the agency indicated cell phones could be eliminated because they are being requested under the bicycle and motorcycle accounts and they can be shared. Additionally, Ms. King reported, the agency said one pager would be sufficient. She noted the Budget Division approved the changes.

Senator O’Donnell recalled hearing a bill in the Senate Committee on Transportation regarding child-restraining issues and the lack of public service announcements (PSAs) informing the public child seats have been installed improperly. He said the safety division requests that all children be required to be fastened with the seats. He explained the division could utilize funding for PSAs.

Referring to Exhibit I, Ms. King responded the budget includes $15,000 in FY 2000 and $11,000 in FY 2001 for the child safety-seat program. Senator O’Donnell offered his belief there also should be some federal funds available for the program. Ms. King stated she was unaware of any additional funds, but the agency could request an augmentation through the Interim Finance Committee (IFC) process should federal funds become available. She noted federal funding to support the program has been received for the past 3 or 4 years, but under the terms of the Office of Traffic Safety grants the state agency can only use the funding for the program for 3 years as start-up funding.

Senator Raggio noted the budget includes elimination of adjustments for furnishings which the agency feels it can acquire from other sources. Ms. King responded the Department of Motor Vehicles and Public Safety has several sets of new furniture purchased within the past year and the budget includes a one-shot appropriation of $1.2 million to furnish the remodeled Carson City office.

* * * * *

Bicycle Safety Program – Budget Page DMV-216 (Volume 3)

Budget Account 101-4689

Ms. King explained the Bicycle Safety Program is funded by 65 percent of a 50-cent fee that is added to the cost of drivers’ licenses. She noted it funds one position and provides coloring books and pass-outs for schools to use in training teachers or other nonprofit organizations involved in teaching children bicycle safety. She noted staff recommends two changes to the budget, one to adjust revenue projections to reflect population growth and another to eliminate the pager in accordance with the Highway Safety Plan and Administration budget account.

Senator O’Donnell inquired whether a portion of the funding is to be applied to pedestrian safety. Ms. King answered yes.

* * * * *

Motorcycle Safety Program – Budget Page DMV-220 (Volume 3)

Budget Account 201-4691

Ms. King indicated the program is funded through a $6 charge on all motorcycle registrations. She said the mobile classroom is recommended in The Executive Budget, and the staff agrees with that recommendation. She reported numerous calculation changes have been recommended by staff. She noted any excess revenues will go into the reserve, so changes in expenditures change the reserve, resulting in two entries for every alteration.

Ms. King explained some travel funded in the base budget was eliminated, as were some of the pagers, as discussed earlier. She said errors in calculation were made regarding the community colleges, and those have been reduced. She reiterated those affect the reserve balance.

Ms. King said the agency requested $20,000 to put on a Train the Trainer Conference, found in enhancement decision unit E-375, which would reduce the reserves to $11,000. The staff felt that amount was insufficient. The agency and the staff agreed the conference can be eliminated.

Senator Coffin inquired whether the reserves are dropping because motorcycle sales are declining. Ms. King responded the fund was initially funded in 1993. For the first 2 years no costs were incurred, causing the reserve balance to grow. Since 1995, she said, the agency has been spending down that fund, and operating expenses have exceeded the revenues.

Senator Coffin wondered whether the fee should be increased. Ms. King replied the agency intends to consider fee increases over the upcoming biennium. She stated that she and the agency discussed the projected reserves and the agency requested funding as proposed while consideration is given to either increasing fees or reducing costs. Senator Raggio suggested a letter of intent be included with the budget action.

Senator Rawson asked whether there would be sufficient reserves if the training program is funded for the second year of the biennium. Ms. King responded, "It would get through to the end of the biennium, and the problem is that would leave them about $50,000 to start FY 2002." She questioned whether the Legislature could make any change in time to positively impact revenues during FY 2002 to prevent going into a deficit program. She pointed out the Train the Trainer Conference could be funded, but it would leave the reserve level low. She noted two conferences were planned for FY 2001, one in the north end of the state, the other in the south, and the agency planned to bring in national trainers.

Senator Raggio surmised the difficulty arises because the budget funds two positions, and if the reserve goes too low that it will put the positions in jeopardy.

* * * * *

Senator Raggio asked the committee to turn to Closing List No. 2 (Exhibit K).

DEPARTMENT OF ADMINISTRATION

Merit Award Board – Budget Page ADMIN-11 (Volume 1)

Budget Account 101-1345

Birgit Baker, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, noted the Governor recommended the budget be funded at the $5,000 statutory level, from which $500 will be used for board activities while $4,500 will be used for merit awards and associated expenses.

Senator Raggio inquired whether that is the normal level. Ms. Baker replied it is. She drew attention to the list of awards attached to the report. She noted one award of $500 was made in FY 1997, and three awards were given in FY 1998, for a total of $1,350. She said the Governor recommends the level be restored to $4,500 in each year of the biennium.

* * * * *

DEPARTMENT OF EMPLOYMENT, TRAINING AND REHABILITATION

Rehabilitation Operations – Budget Page DETR-86 (Volume 2)

Budget Account 101-3258

Ms. Baker reported the budget currently supports 4.5 positions responsible for strategic planning, oversight of training, and client assistance programs. She said the Governor has recommended that 2.5 positions associated with strategic planning and training be transferred to Vocational Rehabilitation and Rehabilitation Administration, the accounts which actually provide the services. She noted two positions will remain in the account and the expenses for those positions are derived from the Federal Rehabilitation Client Assistance Grant, which will increase by $2,177. She said the budget change will include the additional grant funds, which will reduce the Social Security Administration (SSA) subsidy. She indicated the only major change in the budget will be the transfer out of 2.5 FTE (full-time equivalent) positions.

* * * * *

Alcohol Tax Program – Budget Page DETR-112 (Volume 2)

Budget Account 606-3282

Ms. Baker said the budget receives 15 cents of the tax per gallon on liquor containing more than 22 percent alcohol. The Bureau of Alcohol and Drug Abuse (BADA) has the authority to utilize the funds to provide funding for programs for the prevention of alcohol abuse and detoxification and rehabilitation of abusers. She said the staff recommends closing the budget in accordance with the Governor’s recommendation of approximately $646,000 each year of the biennium for prevention grants.

In response to a query by Senator Raggio, Ms. Baker stated the Governor recommends retaining approximately 10 percent in reserve, due to the cash flow fluctuations.

* * * * *

DEPARTMENT OF BUSINESS AND INDUSTRY

Commission for Hospital Patients – Budget Page B&I-7 (Volume 2)

Budget Account 101-3825

Rick Combs, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, explained the office is responsible for resolving disputes between patients and hospitals regarding bills. He noted the budget is funded through an assessment against larger hospitals that have 49 or more beds. He said staff recommends closing the budget as recommended by the Governor.

According to Mr. Combs, the only major decision unit other than inflation and fringe benefits is enhancement module E-710, which recommends two new personal computers and software. He said the staff is working with the Purchasing Division to decide upon prices that can be used for all agency accounts, meaning there is a possibility E-710 may change at a later date.

Senator Raggio inquired how active the commission is. Mr. Combs replied that during FY 1998 there were 245 new cases opened.

Mr. Combs stated the staff recommends budget account 271-3847 also be closed in accordance with the Governor’s recommendation. He reminded the committee it is funded through annual fees that are assessed against manufactured housing licensees, and the funds are used to satisfy court-ordered claims against licensees. He noted any amount remaining in the account above $500,000 is used for continuing education courses provided by the division for licensees.

Senator Raggio asked whether all park managers and assistant managers are required to take continuing education. Mr. Combs replied those who are required to take the courses include park managers, installers, rebuilders, salesmen and any other licensee involved in the manufactured housing industry.

Seeing $4,700 under the actual figures for FY 1997-98, Senator Coffin asked whether Mr. Combs was able to reconcile actual court-ordered payments with the amount in the budget. Mr. Miles replied the budget proposes to allocate $50,000 in each year of the biennium for anticipated settlements, consistent with past performance. Senator Raggio pointed out the budget is authorization only. Mr. Combs interjected the budget was based upon an average over 4 years, giving sufficient authority if payments must be made during the next biennium.

* * * * *

Consumer Affairs – Restitution – Budget Page B&I-37 (Volume 2)

Budget Account 101-3803

Again, Mr. Combs said the staff recommends closing the budget as recommended by the Governor. He noted it is a pass-through account used by the division to hold court-ordered settlement funds for distribution to consumers. He explained that when the division is involved in a case, the court frequently awards the payments to the division to distribute to consumers who may be involved in a class-action suit.

* * * * *

Mr. Combs stated the account is funded through application fees received from various financial institutions, and the funds are used to perform investigations of applicants for licenses and for special investigations of current licensees. He noted the funds also can be used to investigate mergers, consolidations, and liquidations. He added there are no decision units recommended and the staff recommends closing as the Governor recommended.

Senator Coffin wondered whether the Senate Committee on Commerce and Labor made any recommendations, and whether the commerce committee felt expenditures are best handled by an appropriation. Mr. Combs responded the account is designated for special investigations, and it will have a reserve that can be used for special investigations. He noted most investigations will be associated with related legislation. As an example, he cited the Harmon mortgage case which he said would affect the Financial Institutions budget account 101-3835.

* * * * *

Financial Institutions Audit – Budget Page B&I-66 (Volume 2)

Budget Account 101-3882

Mr. Combs indicated budget account 101-3882 is also funded through assessments against various licensed financial institutions. He said the assessments fund salary and fringe benefit costs for a certified public accountant who is responsible for conducting independent audits and examinations of the institutions. He stated the budget also has been recommended for funding according to the Governor’s recommendation.

Senator Raggio wanted to know what audit schedule is used for banks, credit unions, mortgage companies and the like. Mr. Combs was unsure of the schedule but stated that many audits are performed based upon complaints received. Senator Raggio noted the agency projected 126 reviews of financial statements. He asked whether a review is the same as an audit. Mr. Combs responded there are different levels of audits, and in such cases the agency might review financial statements and then determine whether a full audit is required.

Senator Raggio read the list of projected and actual audits of various types of institutions on budget page B&I-66 and asked for an explanation. Mr. Combs responded the agency checks the financial statements of new licensees, and when a complaint is received. Senator Raggio noted most legislators have received comments and letters regarding the issue raised by Senator Coffin, and a report on the matter would be helpful.

* * * * *

DEPARTMENT OF HUMAN RESOURCES

Radiological Health – Budget Page HEALTH-18 (Volume 2)

Budget Account 101-3101

Radioactive & Hazardous Waste - Budget Page HEALTH-22 (Volume 2)

Budget Account 251-3152

Ginny Wiswell, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, said the two budgets are related to and dependent upon each other. She said there are a total of 13 positions in budget account 101-3101, and the Governor did not recommend any expansion of the programs funded through either state funds, federal grants, or the various operator licenses.

Ms. Wiswell explained the positions provide licensing and inspections of radioactive materials, and they provide certification for mammography and other radiological equipment.

According to Ms. Wiswell, budget 101-3101 contains technical corrections in decision unit M-300 for fringe benefits, and adjustments provide that those funds be distributed through all the revenue sources instead of being provided solely through state funds. She noted the redistribution will reduce state fund requirements and raise other revenue sources within the account.

Ms. Wiswell commented the Radon Hazard Awareness Program in decision unit E-377 is not a new program and it utilizes unexpended funding from the grants received during FY 1998.

Senator Neal asked what type of active radon program is ongoing, and how it is accessed by citizens. Ms. Wiswell responded the Radon Hazard Awareness Program is provided to make people aware of radon in soil around homes. The program sells radon test kits at a reduced cost for both the kits and the lab work.

Senator Raggio inquired whether budget 251-3152 includes the same fringe benefit adjustment. Ms. Wiswell replied it does, but because the budget does not include the positions there is a revenue account transfer to budget account 101-3101 with corresponding corrections.

Senator Raggio wanted to know what is happening at the low-level readioactive waste site. Ms. Wiswell replied the site has been closed, and the state Health Division has an ongoing program to ensure the perimeter of the site is maintained. Senator Raggio asked whether the state still receives revenue for the site. Ms. Wiswell pointed out there are two facilities, one for hazardous waste and one for low-level radioactive waste, and the latter facility has been closed. She said the hazardous waste site remains open but is in the process of being downsized.

* * * * *

There was no further business to come before the committee. Senator Raggio adjourned the meeting at 10:55 a.m.

RESPECTFULLY SUBMITTED:

Judy Jacobs,

Committee Secretary

APPROVED BY:

Senator William J. Raggio, Chairman

DATE: