The Senate Committee on Finance was called to order by Chairman William J. Raggio, at 8:00 a.m., on Monday, April 19, 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

GUEST LEGISLATOR:

Senator Michael (Mike) Schneider, Clark County Senatorial District No. 8

STAFF MEMBERS PRESENT:

Patricia Hampton, Committee Secretary

OTHERS PRESENT:

Senator Raggio said there is an amendment to Senate Bill (S.B.) 520, which came from the Senate Committee on Human Resources and Facilities, that had a significant fiscal note. He said there is a question, as a result of the amendment, as to whether or not the fiscal note still applies. He stated a decision needs to be made today in order for the bill to remain exempt.

Senator Rawson said he believed the bill only gives the county permission to seek waivers, not to institute anything, so there would not be a fiscal note. He added there is a sunset on the bill.

Janice Wright, Deputy Administrator, Division of Health Care Financing and Policy, Department of Human Resources, testified that according to the division’s analysis of the amendment, there would be a fiscal impact. This is because the Clark County health system would be designed to create a medically needy program and a waiver would have to be created and submitted through the U. S. Health Care Financing Administration (HCFA) in order to approve the program.

Ms. Wright maintained the waiver "is a very intensive labor-related demonstration waiver and will require staff." Additionally, if approved through HCFA, the impact of the medically needy program will be approximately $100 million, so there is a potential fiscal impact in allowing the division to proceed with creating the waiver through HCFA.

Senator Raggio asked whether this explanation is sufficient to give the bill exempt status. Dan Miles, Senate Fiscal Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, answered yes. Senator Raggio requested Senator Rawson, on the basis of the exemption, to re-refer the bill to the Senate Committee on Finance.

Senator Raggio said there were three bills to be heard at this meeting. He announced there was limited time to hear all of the bills and requested those testifying condense their remarks and keep them as concise as possible. He stated he would try to accommodate all those wishing to testify. He opened the hearing on S.B. 147.

Lynn Morris, Executive Director, Life Line Pregnancy Assistance and Vocational Education Center, thanked the committee for past support and for its consideration of this bill. She updated the committee regarding Life Line’s activities since the last legislative session. She said the center has moved from a 3,000-square foot facility to one with 11,080 square feet facility and the rent has increased from $31,200 to $87,600 a year, including utilities. She noted the move was initiated to accommodate the state since the center is the lead agency and training facility for the Family to Family Connection Program, infant support district No. 12.

Ms. Morris stated the American Red Cross is located next to the center and facilitates both adult and infant cardiopulmonary resuscitation (CPR) and the human immunodeficiency virus (HIV) awareness education classes. She pointed out four satellite offices are being opened in North Las Vegas this year. In 1998 more than 18,000 clients were served.

Eloy Strayhand, Probation Officer, Family Youth Services Department, Clark County, discussed the partnering relationship between the Freedom Program and the First Time Fathers program. He said that in November 1998 he began transporting four to six adjudicated young males to the First Time Fathers Program, that is designed to enhance the lives of the participants by enabling them to become productive, viable, and nurturing young adults and to educate them in being successful fathers.

Mr. Strayhand pointed out that through group sessions the program has allowed the participants to learn basic education psychology. They have learned to think through issues that have either angered or hurt them and have realized there are more efficient and effective ways to handle their adversities than by becoming physically abusive or using "non-standard dialect." Mr. Strayhand stated other basic social skills are taught, as well as appropriate dress for job interviews.

Mr. Strayhand said the youths participated in the "13 Days Before Christmas" program and thanks to the generosity of Life Line, all the young males received gifts. He called attention to the social outings the youths attended and said the events enhanced their exposure to different types of music. He pointed out the majority of the young males participating in the Freedom Program are not minorities. He said the program is vital to preparing young males to interact with family, friends, and peers in the community. He emphasized that learned behavior often becomes repeated behavior.

Senator Raggio requested Ms. Morris provide a complete budget indicating the source of all funds coming into the program, as well as all expenditures, for a full year preceding April 19, 1999. He asked what revenue the program receives other than that from the Legislature. Ms. Morris replied funds are received from the United Way, block grant-funding, from the governments of the City of Las Vegas and North Las Vegas, private donations, and this past year, from an in-kind donation of $211,000 from the Perini Construction Company. She indicated she would provide the budget for last year and this year later today. Senator Raggio asked what the total budget is. Ms. Morris answered that including in-kind donations, it exceeds $1 million.

Senator Raggio closed the hearing on S.B. 147 and opened the hearing on S.B. 305.

John P. Comeaux, Director, Department of Administration, explained that in section 1 of the bill, supplemental appropriations from the General Fund in the amount of $88,767 and from the Highway Fund in the amount of $3,690,770 would be provided to complete the current phase of the Integrated Financial system (IFS) Project. Section 2 of the bill would provide appropriations in the amount of $10,550,242 from the General Fund and $5,619,795 from the Highway Fund for the completion of the system. Mr. Comeaux said section 3 would provide that the appropriations in section 1 become effective upon passage and approval of the bill, and the appropriations in section 2 would become effective July 1, 1999.

Mr. Comeaux called attention to a proposed amendment to the bill that would add two sections. He said the proposed section 4 would change the appropriation that was made in the last legislative session in S.B. 201 of the Sixty-ninth Session for the Technology Improvement plan. He said the reversion date would be extended for the appropriations from June 30, 1999, to June 30, 2001.

Mr. Comeaux stated that bill does not directly involve the IFS but does involve other projects which were included in the technology improvement program, specifically the microwave and private branch exchange (PBX) projects. He said these projects will not be completed by June 30, 1999, so an extension of the reversion date has been requested.

Mr. Comeaux noted section 5 would request something similar for the appropriation that was provided in the last legislative session for the millennium compliance, Year 2000 conversion (Y2K). He said there are some General Fund dollars that will be unspent at the end of Fiscal Year (FY) 1999, and he requested S.B. 305 be amended to allow the reversion date to be extended to June 30, 2001.

Senator Raggio asked how proposed sections 4 and 5 pertain to the IFS. Mr. Comeaux explained that they do not directly pertain; however, section 4 applies mainly because the original appropriation, for which the Budget Division is requesting an extension on the reversion date, was provided in the same bill as the Technology Improvement plan bill. Senator Raggio asked whether the amendments were requested in order to keep the funds available for the purpose for which they were originally appropriated. Mr. Comeaux answered yes.

Senator Raggio inquired how much money is anticipated to be remaining in each of the funds. Mr. Comeaux said he does not have the amounts available at this time. Senator Raggio stated the committee needs to know how much money is remaining that would otherwise revert, and whether there is still a need for the purposes for which the money was appropriated if the amendments are to be added. Mr. Comeaux stated he would provide the information later today.

Mr. Comeaux said $22 million was appropriated in the last legislative session to fund the initial implementation of the IFS. He noted the IFS Project has met preliminary goals and the new statewide accounting system became effective as of January 5, 1999, and is now processing all state payment claims. He said the new accounting system for the Nevada Department of Transportation’s (NDOT) also began processing NDOT business on January 5, 1999. He stated the new payroll and personnel system ran the first production pay cycle on March 27, 1999, and distributed the first central payroll checks on April 2.

Mr. Comeaux explained the first NDOT payroll cycle was run on March 31, 1999, and checks were distributed on April 7. He said the state was very pleased with the results of both payroll processings. He maintained the data looked good, the reports were correct, and the interfaces produced anticipated results. He said that to improve statewide management reporting, the IFS Project is bringing up the state financial reports on a web-based data warehouse. The data warehouse team plans to release the first version of the "Data Warehouse of Nevada" to general users in early May 1999.

Mr. Comeaux pointed out that installing the "data warehouse" simultaneously with the Advantage Software has proven extremely difficult. Before data warehouse reports can be released to the user community at large, they must be absolutely accurate. Mr. Comeaux said this requires extensive testing and the source data must be available to confirm that sample reports return the correct values. He said data problems with Advantage implementation, while normal and correctable, have lengthened the data warehouse testing period and delayed the program’s availability. He emphasized that resolving this issue will require additional work.

Mr. Comeaux reported the work accomplished to date resulted in additional costs above the original appropriation, primarily for NDOT. He said the cost projection for the NDOT portion of the IFS project was included in a request made to the Interim Finance Committee (IFC) by NDOT, which the IFC failed to approve. He explained the funding request envisioned implementing the Advantage Software for NDOT without integration into the IFS. However, the actual requirements within the IFS for implementing NDOT business functions have been more expensive than the original 1997 estimate, and therefore the supplemental request was made.

Mr. Comeaux stated that in order to implement the IFS within a short time frame and avoid Y2K repairs, the system was installed "bare bones" and there are several critical tasks remaining.

Mr. Comeaux explained the first task is the implementation of additional business functions, including fixed-asset control, inventory control, custom invoicing, accounts receivable control, grants management, project and other cost accounting, travel accounting, and human resource management reporting. The second task is the completion of on-line features at all state agencies. Mr. Comeaux said that currently only the offices of the treasurer and the controller and the departments of personnel, administration and transportation are on-line. He stated user-agency training also has to be completed.

Mr. Comeaux said section 2 of S.B. 305 requests the onetime appropriations mentioned earlier to fund the tasks over the next biennium. He stated the request includes approximately $767,000 for the IFS Project to acquire and distribute all the equipment needed by state agencies to fully implement the IFS. Based on a detailed survey of all state business sites, he said, the project will acquire and distribute 291 personal computers at a cost of approximately $601,000, 55 computer upgrades costing approximately $8,250, and 168 laser printers costing $157,584. Mr. Comeaux said these costs, along with the General Fund portion of the project expended in FY 1998-99 and the projected costs for FY 2000-01, will be allocated through the Statewide Cost Allocation Plan over the next 4 years. He testified the estimated recovery, based on FY 1998-99, is $3,467,000. Additionally, the IFS costs incurred in FY 2000-01 will be recovered in the succeeding biennium, estimated in the amount of $5,966,000.

Senator Raggio said he understood the data warehouse to be critical to the operation of the agency. He asked whether early May is a "true" date for this to begin. Mr. Comeaux responded it is, but there are definitely some problems with the data warehouse. He said they are manageable, however, it is a question of working through them. Senator Raggio said a number of state agencies, in an attempt to be as honest as they can, have stated that they are concerned about their inability to access and retrieve data. He noted one area of concern is the format of the reports that are required for reconciliation of expenditures, especially the new payroll reports which are sorted according to paycheck distribution codes rather than by budget account. He asked how these concerns are being addressed. Mr. Comeaux answered that Judy Holt, Chief, Administrative Services Division, Department of Personnel, who is charge of the human resources portion of this project, has sent several memorandums to the various state agencies asking for input on the new payroll system. He said she has asked for the agencies’ assessment of the deficiencies of the reports that are currently available.

Ms. Holt explained:

Senator Raggio asked whether the accounting reconciliations will be able to be done by budget account. Ms. Holt answered yes. Senator Raggio asked whether the agencies’ concerns are being addressed as well as possible. Ms. Holt assured the senator they are. She explained the desire was to not recreate old, inefficiencies simply because that was "the way things had always been done."

Senator Raggio stated there is also interest in the need for a much higher anticipated contribution from NDOT than what was originally envisioned. He said his understanding is that S.B. 305 provides an additional $3.7 million, which is a 66 percent increase over the original proposal. He indicated the Fiscal Analysis Division had requested information about the specific budget account and decision unit for the recurring costs in the budget. He stated that according to the response received, the costs for the Office of the State Controller and the State Purchasing Division are included, but the costs for NDOT have not been identified. He said there is $998,000 required for the Department of Personnel which was inadvertently omitted from the Governor’s budget.

Senator Raggio recalled that the Joint Subcommittee on General Government reviewed this and recommended the recurring costs for the Department of Personnel be included as an adjustment to the budget, providing they are justified. He asked whether this should be in S.B. 305. Mr. Comeaux stated he was generally familiar with the issue. He said some ongoing funding was "left for the Department of Personnel out of their budget," and those amounts should be included in the department’s budget and not in this bill. Senator Raggio asked how costs for NDOT, as well as approximately $1 million for the Department of Personnel, should be handled. Mr. Comeaux answered that the adjustment the budget office recommended, subsequent to submitting The Executive Budget, will not be made, and if the original assessment recommended in the budget is applied, the funds necessary will be generated to pay the ongoing costs within the Department of Personnel’s budget. Senator Raggio requested a meeting with fiscal staff to "assure everyone is together on this."

Mr. Comeaux said he was informed that costs for NDOT have been identified and the information will be provided to fiscal staff. Senator Raggio asked whether the work plan for the IFS was a 10-year plan. Mr. Comeaux answered yes. Senator Raggio pointed out the original 10-year plan, without NDOT, reflected total project costs of $47.2 million and the revised plan, including NDOT, is $70.5 million. He stated this amounts to $23.3 million more with the new plan and asked whether there was justification for the increase. Mr. Comeaux answered the justification is the cost of the NDOT portion of the IFS.

Senator Raggio said that was his original question: Why did NDOT suddenly make the project so much more expensive? Mr. Comeaux recalled that when NDOT approached the IFC initially for the funding to begin development of a new accounting system, the department’s cost estimates were based on its own system which had no specifications. He said the first few years of the IFS Project was spent developing the specifications for the kind of system the state wanted to have. He stated NDOT had not gone through that process and its estimates were very rough. They were based on using Automated Management System (AMS), which is the vendor currently being used, but the extent of specifications for the department’s system had not been developed.

Senator Raggio stated he does not assign any improper motivation, but when these programs get started there should be more accurate estimates as to what they will be and what they will cost. He said those envisioning these types of plans should have a better concept of what is needed and what is to be included. Mr. Comeaux stated the initial approach on the IFS was the correct approach and if the current 10-year plan is compared to the previous plan, submitted 2 years ago for the original part of IFS, the costs are actually less now than what was projected at that time because the first 2 years were spent on planning and developing specifications. He said NDOT became part of the IFS at the last minute and unfortunately, all of the original IFS planning had not been performed on NDOT. He maintained proper planning can produce accurate results regarding costs.

Senator Raggio pointed out the old payroll system timesheet information was entered biweekly and has to be entered weekly under the new system. He asked whether the state agencies will be able to accommodate this timeline without additional personnel. Ms. Holt explained the reason that reporting changed from 2 weeks to 1 week was that the agencies will be entering the data and the work flow should even out and make the information more accurate and up to date. Senator Raggio clarified the request of $767,000 was not for specific agencies, but an overall allocation and the computers and printers will be distributed to potential users. If done this way, the IFS will be completed in 4 years rather than 2 "due to the Governor’s recommendation to reduce the yearly funding cost."

Senator Raggio said he understands the original request would allow 2 years to acquire all the necessary equipment. He pointed out the proposal in the Governor’s budget is to implement the system over a 4-year period, so half or more of the agencies will be delayed by 2 years in having access to the system. He stated, "It does not make much sense to spend this kind of money over this period of time and say ‘half of you can’t use it for 4 years’." Mr. Comeaux pointed out he does not know whether all of the agencies could have access to the system within 2 years anyway, because implementation will take a while. He said they might be able to if there were unlimited resources. Senator Raggio pointed out the delay is caused by the 50 percent reduction of this request by the budget office.

Roberta Reese, Chief Accountant, Office of the State Controller, testified in support of S. B. 305. She said the controller’s office had been an integral part of the IFS Project. She pointed out the office has a general central accounting system at this time, and for the state to receive the most benefit from what has been expended thus far, it needs to continue with implementation of the system.

Senator Raggio closed the hearing on S.B. 305 and opened the hearing on S.B. 427.

Joan Buchanan, Administrator, Real Estate Division, Department of Business and Industry, stated that Senator Michael Schneider had requested the division develop an automated licensing system.

Senator Michael (Mike) A. Schneider, Clark County Senatorial District No. 8, testified that since the ombudsman was approved for homeowners’ associations he has worked closely with the Real Estate Division. He said he has noticed how inefficient the office in Las Vegas is. To license a new person takes approximately a half-hour and each receipt is handwritten. Senator Schneider recalled that in 1995 a bill allocating more than $300,000 was approved to study all of the Department of Business and Industry and it is his belief the Real Estate Division should be made more efficient.

Senator Raggio asked how the $200,000 requested in this bill would be used. Ms. Buchanan said the division has been looking at integrated systems for several years. She explained that when an individual is licensed the information has to go to accounting and to data processing and also involves phone inquiries and license histories, and an integrated system accomplishes these functions through automation. She pointed out receipts alone cost $5,000 each year. Senator Raggio asked whether a plan has been developed on how much money would be needed. Ms. Buchanan said approximately $43,000 is paid each year for data processing on the mainframe. She said this request would be $25,000 for ongoing support and between $150,000 and $200,000 for implementation of the system. She noted the states of Missouri and Nebraska are currently on the system and Oregon and Iowa will be implementing the system soon.

Senator Raggio asked whether this is a onetime expenditure. Ms. Buchanan replied yes. Senator Raggio stated if the bill is to be given consideration, there will have to be estimates and a solid plan submitted to this committee.

Pat Coward, Lobbyist, Nevada Association of Realtors, testified in support of the endeavor to automate the licensing system. He said it is very burdensome to go through the system. Senator Raggio asked how many license holders there are currently. Ms. Buchanan answered there are approximately 18,000 real estate licensees, 1,000 appraisers and home inspectors and the renewal period is every 2 years. She said many of the programs are not on the mainframe because it is too costly to place on the mainframe for programming, so many are on independent personal computer programs. Senator Raggio suggested the Nevada Association of Realtors could assist with developing a plan.

Ms. Buchanan stated that with a new system, calculations on an economic model indicate there would be savings of $82,000 a year, which would pay for the program in 2 years. Senator Raggio asked how the savings would occur. Ms. Buchanan explained that not as many personnel would be needed because steps to license would decrease from 17 to 5. Senator Raggio requested the savings be shown in the plan. He said even if this request could not be approved this legislative session, it would be helpful to have the information for future consideration.

Senator Jacobsen asked how many offices the Real Estate Division maintains. Ms. Buchanan answered the division maintains two, one in Las Vegas and one in Carson City.

Teacher Education and Licensing – Budget Page K12ED-8 (Volume 1)

Budget Account 101-2705

Jeanne L. Botts, Senior Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, testified this budget supports teacher licensing activities and the budget is supported by both General Fund appropriations and licensing fees. However, the share contributed by fees is expected to increase from 72 percent in FY 1997-98 to nearly 100 percent in FY 2000-01. She pointed out the Governor’s budget recommends licensing fees be increased to make licensing operations self-supporting.

Ms. Botts explained the proposed licensing increases shown on page 1 of Exhibit C and noted that approximately $326,000 is expected to be generated due to the increase in the licensing fees and the results from growth in the number of licensees. Senator Raggio asked whether these fee increases have been agreed to by the Governor. Mr. Comeaux replied yes. Ms. Botts pointed out the Governor has agreed largely because there is no legislation required. She explained the existing statute sets a minimum license fee, not a maximum. She said the regulations to establish a new fee schedule must be adopted by the state Commission on Professional Standards in Education, which will meet on May 7 to hold public hearings and to take action on the fee increases.

Ms. Botts pointed out that at the beginning of each school year there is a backlog in the licensing branch, and up until last year the Clark County School District sent workers to help with the processing of licenses in Las Vegas. She said the State Department of Education also hires temporary employees through agencies such as Manpower to assist in the licensing process.

Senator Raggio asked when the goal of making this budget account self-supporting will be reached. Mr. Comeaux replied that as proposed in The Executive Budget, this account would be self-supporting at the end of FY 2001.

Ms. Botts pointed out there is $1,000 budgeted in FY 2001, even though it is believed the account will be self-supporting, in case revenues are not realized. She said the department could access the IFC if necessary.

Ms. Botts explained the adjustments shown on page 2 of Exhibit C.

Commission on Postsecondary Education – Budget Page K12ED-30 (Volume 1)

Budget Account 101-2666

Melinda Braun, Education Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, explained this is the administrative budget for the commission which sets policies, adopts regulations, and grants licenses to operate private postsecondary educational institutions. Additionally, the commission contracts annually with the U.S. Department of Veterans Affairs (VA) to review, approve and provide oversight of those public and private schools that train veterans.

Ms. Braun testified that the Joint Subcommittee on Human Resources/K-12 recommended providing$1,890, which was inadvertently left out of The Executive Budget, to purchase an annual computer maintenance agreement. She said this is a correction to the base budget.

CPE Student Indemnification Acct – Budget Page K12ED-34 (Volume 1)

Budget Account 101-2667

Ms. Braun pointed out this account was established by the 1997 Legislature to reimburse students for damages received from the closure of licensed, private postsecondary institutions. She said the Joint Subcommittee on Human Resources/K-12 recommends this budget be closed as the Governor recommended. Senator Raggio asked whether any institutions have been closed. Ms. Braun replied that the last closure was in August 1997.

Senator Raggio inquired whether the $250,000 in reserve is adequate. Ms. Braun replied yes.

Drug Abuse Education – Budget Page K12ED-48 (Volume 1)

Budget Account 101-2605

Ms. Botts reviewed the funding and requests in this budget as shown on pages 5 and 6 of Exhibit C. She explained the federal revenue has been reduced and corresponding reductions were made in the categories of travel, operating costs, aid to schools, and proposed positions. She said the fiscal staff recommends adding only a quarter-time Education Consultant, rather than the half-time consultant recommended by the Governor, and deleting the proposed quarter-time clerical position. An increase for printing costs has been incorporated into this budget closing.

Ms. Botts suggested a Letter of Intent directing the State Department of Education to take a leadership role in selecting and implementing effective, research-based substance abuse prevention programs and helping school districts evaluate the effectiveness of their programs and measure progress toward achieving program goals. She pointed out the response to a Letter of Intent and Assembly Bill (A.B.) 376 of the Sixty-ninth Session, concluded that most school districts did not conduct systematic evaluations of their prevention programs and was unable to link programs with outcomes to determine whether programs are implemented consistently across schools and classrooms within a district, or whether each student receives a comprehensive substance abuse program.

Senator Raggio asked whether the approximately $2 million goes directly to schools based on population. Ms. Botts answered yes. Senator Raggio asked how schools use the money. Ms. Botts responded that many schools use programs such as DARE (Drug Abuse Resistance Education) and "Here’s Looking At You 2000." She said the evaluation conducted by consultant David Lightener did not include data from Nevada, only national studies and data. The evaluation concluded that the DARE program was not effective in reducing substance abuse, but there was good evidence that the "Here’s Looking At You 2000" was effective.

Senator Raggio commented there has been a great deal of concern about programs such as DARE and its effectiveness. Ms. Botts pointed out the Letter of Intent would require an evaluation similar to this year’s for the next legislative session and would direct the State Department of Education to work with districts to use the money in effective programs.

Senator Coffin remarked that he supports the DARE program because his 11-year-old son has just completed the program "and it seemed to work very well for him and all of his classmates." He noted there is sometimes statistical evidence and testimony that indicates there is no positive result or there might be a questionable result but said his experience is the program has been very positive. He added that he hopes the DARE program continues.

Education of Handicapped Persons - NRS 395 – Budget Page K12ED-56 (Volume 1)

Budget Account 101-2670

Ms. Botts explained this budget account is for the placement of handicapped students outside of their school district when a special education program is not available within their home district. She reviewed the requirements that are set by statute and a suggested Letter of Intent and language for the General Appropriations Act as shown on page 7 of Exhibit C.

Senator Raggio asked whether the school district receives the per-pupil basic support for students placed outside the district. Ms. Botts answered no, unless the

+9999999999+student is from a rural district and is moved into, for instance, Clark County. Senator Raggio asked, "If the child is at the school on the ‘count date’ and the child is moved, what happens?" Ms. Botts explained that whatever school district the child is in on "count date," the child is counted for that district.

Ms. Botts pointed out the federal government shares in the direct placement costs of the program. She noted federal money cannot be used for staff travel and some of the costs.

Occupational Education – Budget Page K12ED-68 (Volume 1)

Budget Page 101-2676

Ms. Botts noted this account is supported by federal funds made available under the Carl D. Perkins Vocational and Applied Technology Education Act. She said The Executive Budget recommended eliminating the Occupational Education Consultant in the area of business education and marketing because the position had been vacant since April 1998. She pointed out that in the past the funding for the position had been split 50 percent between the state and the federal government The State Department of Education provided a plan to restore the position with federal funds providing 100 percent of the position. She noted the position was restored in adjustments to the base budget.

Ms. Botts pointed out the department has been required by the Budget Division to report or "book" all federal authority. To track all available federal authority, revenue from the grant was increased, and aid to schools was increased by a corresponding amount in each year in decision unit M-200. Senator Raggio asked whether the amount in decision unit M-200 adds to the grant authority. Ms. Botts replied yes.

NDE School To Careers – Budget Page K12ED-93 (Volume 1)

Budget Page 101-2678

Ms. Botts said this budget account contains both state General Fund appropriations to the School to Careers Program and federal funds from a 5-year school-to-work implementation grant. She stated the grant will total $11.4 million over the 5-year term. The grant was intended as "seed money" to implement programs that focus on the transition from school to work. Ms. Botts said that as was mentioned in the last account, the Budget Division is now requiring the State Department of Education to "book" all unused federal grant authority. As a result a recent work-program revision added $108,765 of unused authority for administrative costs to reserve in the current year. She explained the closing sheets balance forward the unused funds to help continue positions and the remainder of the funds are passed-through as aid to schools. She said a portion of the current year’s reserve was already included in the revenue projections for FY 2000.

Ms. Botts reviewed the positions in the budget as shown on page 10 of Exhibit C. She said fiscal staff recommends the Assistant Director be continued but reduced to half time in FY 2000-01 and eliminated at the end of FY 2000-01, and the half-time clerical position be reduced to quarter-time in FY 2000 and eliminated at the end of that fiscal year. Senator Raggio asked whether that would be consistent with the federal funding available. Ms. Botts answered yes. She said this will provide a level of staffing through the main part of the federal grant. She pointed out there will still be a half-time Assistant Director in the second year of the biennium, even though the money continues to pass through 6 months into the following biennium. She said the duties will be assumed by the Occupational Education branch of the State Department of Education. Ms. Botts explained that as the federal funding phases down, less is available to be used for administrative purposes.

Ms. Botts reported that for the last 4 consecutive fiscal years, $2 million a year of state General Fund money has been appropriated for state-funded, School-to-Career programs. She noted the Governor did not recommend continuing this special appropriation. She said if the committee wishes to continue this program at either the existing level or a reduced level, funding might be appropriated through a separate bill, thereby allowing this account to be closed.

Senator Raggio recalled that when the $2 million a year was appropriated, each school district was given a base amount and the rest was distributed on the basis of enrollment. Senator Raggio stated this budget, which is based entirely on federal funding, can be closed because the state has no capability of adding money to the budget.

HR, DCFS - Juvenile Accountability Block Grant – Page DCFS-45 (Volume 2)

Budget Account 101-3262

Larry L. Peri, Senior Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, said this budget was heard by the Joint Subcommittee on Human Resources/K-12 on February 18 and March 19, 1999, and the closing actions shown on pages 11-12 of Exhibit C were agreed to and closed by the joint subcommittee on April 8, 1999.

Mr. Peri explained this is a new grant which was approved by the IFC at its September 23, 1998, meeting. Noting this is federal money, he said 75 percent is required to be passed through to local jurisdictions for juvenile programs with 10 percent allocated for administrative costs for the state. He said 15 percent is termed "discretionary funding."

Mr. Peri discussed the adjustments to the budget shown on pages 11-18 of Exhibit C. Senator Raggio asked whether this is a new grant or a continuation of an existing grant. Mr. Peri answered it is a continuation. Senator Raggio noted that for 1 year the grant funding is approximately $2.2 million. Mr. Peri stated the assumption is the grant will continue to be reauthorized, but the reauthorization is only done on an annual basis. Senator Raggio stated if it comes about during the interim, an adjustment can be made through the IFC.

Mr. Peri said decision unit E-125 indicates technical adjustments to properly align the transfers out of this budget to two other juvenile correctional budgets within the division.

Senator Raggio remarked it is difficult for him to understand why, on a program like this, Nevada receives $2.2 million and American Samoa receives $3.3 million. He said he does not understand how the funds are allocated.

HR, Caliente Youth Center – Budget Page DCFS-52 (Volume 2)

Budget Account 101-3179

Mr. Peri noted this budget was closed by the Joint Subcommittee on Human Resources/K-12 April 8, 1999. He said the committee recommended one adjustment shown under No. 1 on page 19 of Exhibit C. Senator Raggio asked who chaired the joint subcommittee. Mr. Peri said the co-chairs were Senator Rawson and Ms. Evans.

HR, Nevada Youth Training Center – Budget Page DCFS-59 (Volume 2)

Budget Account 101-3259

Mr. Peri said the Joint Subcommittee on Human Resources/K-12 recommendations are summarized on page 21of Exhibit C. He noted there were 3 adjustments.

There being no further business the meeting was adjourned at 9:45 a.m.

RESPECTFULLY SUBMITTED:

Patricia Hampton,

Committee Secretary

APPROVED BY:

Senator William J. Raggio, Chairman

DATE: