The Joint Subcommittee on General Government of the Senate Committee on Finance and the Assembly Committee on Ways and Means was called to order by Chairman William R. O’Donnell, at 8:16 a.m., on Tuesday, April 27, 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.

SENATE COMMITTEE MEMBERS PRESENT:

Senator William R. O’Donnell, Chairman

Senator Lawrence E. Jacobsen

Senator Joseph (Joe) M. Neal, Jr.

ASSEMBLY COMMITTEE MEMBERS PRESENT:

Mrs. Vonne S. Chowning, Chairman

Ms. Christina R. Giunchigliani

Mrs. Marcia de Braga

Mr. Bob Beers

COMMITTEE MEMBERS ABSENT:

Mr. David E. Goldwater

STAFF MEMBERS PRESENT:

Patricia Hampton, Committee Secretary

OTHERS PRESENT:

Senator O’Donnell opened the hearing on budget closings for the Department of Information Technology (DoIT). He recalled there had been numerous discussions regarding the Nevada Operations Multi Automated Data Systems (NOMADS) issue. He said "I understand the Governor is presently working to develop a new plan and it will therefore be necessary to approve the equipment requested for NOMADS."

Jim Rodriguez, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, discussed proposed significant changes to the department’s funding mechanism and functional structure indicated on pages 1-2 of Exhibit C. He said DoIT’s plan, based on recommendations of the hired consultant, David M. Griffith, is to restructure funding methodology for the department. Another recommendation is to realign certain personnel to make the funding structure work. Mr. Rodriguez stated that in addition to these two recommendations there is a significant proposal to purchase a new mainframe computer and expand the state’s router-based network.

Mr. Rodriguez testified the technical adjustments in this budget are minimal. He said many of the adjustments and decisions on what would be included in the budget were made during the basic budget review. The adjustments and closing issues are shown on pages 3-4 of Exhibit C.

Mr. Beers recalled that at the last meeting information was requested as to whether or not it might be viable to enhance the R-25 computer instead of purchasing a R-36 computer. He inquired whether there was any information regarding this. Marlene Lockard, Director, Department of Information Technology, answered that the applications which could be supported with the R-25 enhancements, and those with the R-36 computer, have been submitted to fiscal staff. She stated that with continuation of the NOMADS project it was determined the R-36 would be required to support future applications of NOMADS.

Mr. Beers said he questions the existence of Oracle applications on the mainframe. He maintained Oracle is basically built for a different platform and has to be manipulated to work on the mainframe. He said it occurred to him it might be feasible to move the application onto a platform that would work better, which would simultaneously free up some capacity requirements on the mainframes. Ms. Lockard stated that option could be explored. She said there was a considerable effort to move the Oracle application to the mainframe because of some of the performance issues. She maintained that research has been done, but moving Oracle to a different platform could still be explored. She said the evaluation has not been completed at this time.

Senator O’Donnell asked whether a point would ever be reached where alternative platforms could be considered other than International Business Machines (IBM). Ms. Lockard assured that was possible. She pointed out the Integrated Financial System (IFS) is on a server platform, as are other systems. She said the department is moving towards using what is assessed to be the most effective technology solution for the program being initiated. She maintained that "everything has not been directed to a mainframe solution for some time."

Mr. Beers remarked the executive budgeting system uses exactly the same code as the legislative budgeting system and is run on a server. He asked whether it would be feasible to run the department’s system on a Unix derivative of some kind. Ms. Lockard indicated it is possible.

Guy Duensing, Deputy Director, Communication and Computing Division, Department of Information Technology, said that with the number of users the Department of Administration is expecting to have over the next budget cycle, the Unix machine would work well.

Mr. Duensing said:

Mr. Beers asked how long it would take to move. Mr. Duensing responded:

Mr. Beers stated:

Mr. Duensing replied:

Senator O’Donnell asked:

Mr. Duensing answered:

Senator O’Donnell stated:

Following a short recess Senator O’Donnell noted there is a subcommittee in the Interim Finance Committee (IFC) which is designated to oversee the operations of Project Genesis and said the Joint Subcommittee on General Government is entertaining the prospect of establishing an oversight committee from the IFC to "look at the aspects of computerization of DoIt."

Senator Neal asked Ms. Lockard what having this type of committee would mean to her. Ms. Lockard replied the department would welcome the involvement of the legislative branch in working with the agency since some of the technology issues have been addressed. Senator Neal asked about the equipment purchase. Ms. Lockard answered the anticipated purchase and installation of the equipment were scheduled for September or October 1999. There is a window of a few months to research and explore other available options to determine whether the department should move forward with the R-36 or make another determination. Ms. Lockard stressed every effort will be made to explore other possibilities.

Senator Neal asked when the equipment decision can be made. Ms. Lockard said a purchasing decision would need to be made by the end of June 1999 to have the equipment arrive and be ready to install by September 1999. Senator Neal pointed out that if the purchase has to be made by the end of June, it would not be possible to research other equipment after that date.

Mr. Rodriguez pointed out the only decision left in this budget account is whether to accept the agency’s request to realign their funding mechanism. Senator D’Donnell stated the funding proposal will be accepted.

Mrs. Chowning remarked the Project Genesis oversight committee worked very well.

DoIT Planning & Research Unit – Budget Page DOIT-7 (Volume 1)

Budget Account 721-1370

Mr. Rodriguez said there are some technical adjustments to correct for the overhead allocation and to reflect reductions in unit costs for personal computers, based on the Purchasing Division’s new price quotes. He stated there is a request in this account to significantly increase funding for training. He said he has reviewed the history and determined that in the current year, what was spent for training was much lower than what was budgeted. He proposed reducing the request by 50 percent in FY 2000 and 75 percent in FY 2001. Mr. Rodriguez noted the adjustments are shown on page 6 of Exhibit C. He said if all of the training funds are expended he would recommend that in the next biennium the department’s additional request for training funds be approved.

Mrs. Chowning asked whether Ms. Lockard agreed with the reduction in training funds. Ms. Lockard emphasized she does not know of any other category more important to advancing the department in the right direction than the training funds. She said the current training balance, not fully expended this year, is due to the difficult position the department was in of trying to balance staff time and their work on critical applications and deadlines against their leaving a project to attend training. She maintained there is every intention of expending the funds before the end of FY 1999. She pointed out that some planned training had been rescheduled because it interfered with key project deadlines.

Mrs. Chowning stated the requested funding is a 150 percent increase over what was actually spent in FY 1999. She pointed out the department can go to the IFC and request additional funding.

Mr. Rodriguez pointed out technical adjustments shown on page 7 of Exhibit C. He said the funding for training has been reduced to a more reasonable level.

Mr. Rodriguez stated this is the division most affected by the funding study. He said the consultant recommended dividing the Computing Division into four

separate budget accounts. He said the accounts are represented in the E-900 series of the budget. He reviewed the technical adjustments shown on page 9 of Exhibit C.

Mr. Rodriguez said a letter of intent could be issued to place funds in the reserve or a budget adjustment could be made now to reduce the budget by $140,000 in FY 2000 and $265,000 in FY 2001. This is the savings in computer maintenance cost that would be realized with the retirement of the ES-9000 and purchase of the R-36.

Mrs. Chowning stated she believed it would be better to reserve funding rather than reduce it at this time.

DoIT Data Communications & Technical Services – Budget Page DOIT-41

Budget Account 101-1386

DoIT Telecommunications – Budget Page DOIT-43

Budget Account 101-1387

DoIT Communications – Budget Page DOIT-45

Budget Account 101-1388

Mr. Rodriguez said these accounts are the result of splitting budget account 101-1385. He said these accounts accept the positions that were in account 101-1385. He reviewed the information on these changes found on pages 11-13 of Exhibit C. He said there would be some technical adjustments to the overhead allocations and other costs as the budgets are closed into these accounts.

The meeting was adjourned at 8:50 a.m.

Patricia Hampton,

Committee Secretary

RESPECTFULLY SUBMITTED:

APPROVED BY:

Senator William R. O’Donnell, Chairman

DATE:

Assemblywoman Vonne S. Chowning, Chairman

DATE: