The Senate Committee on Finance was called to order by Chairman William J. Raggio, at 3:50 p.m., on Tuesday, May 4, 1999, in Room 2134 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. Exhibit B is the Attendance Roster. All exhibits are available and on file at the Research Library of the Legislative Counsel Bureau.

COMMITTEE MEMBERS PRESENT:

Senator William J. Raggio, Chairman

Senator Raymond D. Rawson, Vice Chairman

Senator Lawrence E. Jacobsen

Senator William R. O’Donnell

Senator Joseph M. Neal, Jr.

Senator Bob Coffin

Senator Bernice Mathews

STAFF MEMBERS PRESENT:

Birgit Baker, Program Analyst

Judy Jacobs, Committee Secretary

OTHERS PRESENT:

Senator Raggio informed the committee there were two bills to be considered. He said one was amended and passed by the Assembly in different form than was passed by the Senate. He asked the committee members to determine whether they wished to concur or not concur with the Assembly action. The first to be considered was Senate Bill (S.B.) 281.

Senator Raggio explained the Assembly had amended S.B. 281 to change the amount to cover the shortfall in salaries.

Dan Miles, Senate Fiscal Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, explained the Assembly Committee on Ways and Means received a memorandum from the Administrative Services Officer (ASO) of the State Department of Conservation and Natural Resources indicating the expenditures have not been as high as anticipated. He said the department feels the $35,000 requested last fall for a supplemental appropriation for the director of the department could be reduced to $13,918.

Senator Raggio noted the change is reflected in the first reprint of the bill.

Senator Raggio asked for clarification of the amendment to S.B. 111 passed by the Assembly. Mr. Miles reported Brenda J. Erdoes, Legislative Counsel, Legal Division, Legislative Counsel Bureau, had told him there was no substantive change in the measure but the request was to reword the language of the law to put the focus on a preemployment agreement as opposed to purchase of service credit.

Senator Neal noted the language is in the bill on page 1, line 3. Senator Raggio remembered the issue had to do with one person who was paid, but the Assembly wanted to make it clear there would be no such payment without a pre-employment agreement. Mr. Miles recalled the measure was drafted regarding an employee of the State Dairy Commission and the Assembly wanted to ensure the payment would be approved by the State Board of Examiners.

Senator Raggio requested that John P. Comeaux, Director, Department of Administration, review the matter. Mr. Comeaux agreed to do so. Senator Raggio indicated he would hold S.B. 111 pending clarification from Mr. Comeaux.

Senator Raggio asked the committee to turn to Closing List #20 (Exhibit C.).

ELECTED OFFICIALS

Ethics Commission – Budget Page ELECTED-16 (Volume 1)

Budget Account 101-1343

Birgit Baker, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, reported the Ethics Commission made a request (Exhibit D.) for a supplemental appropriation for Fiscal Year (FY) 1999. In response to a question from Senator Raggio, she concurred the closing sheet represents the action taken by the Senate Committee on Government Affairs.

Mr. Comeaux stated a memorandum was prepared on April 13 requesting a $15,600 supplemental appropriation for the Commission on Ethics for the remainder of FY 1999. He explained the request was based upon an analysis of the commission’s operations prepared by the Administrative Services Division, Department of Administration. He said the commission projected expenses for the balance of the year, and though the commission is taking steps to keep costs at a minimum there will be a shortfall.

Senator Raggio suggested the appropriate means to handle the request would be through a bill. Mr. Comeux interjected the memorandum includes a copy of the analysis through the end of March and addresses the reasons for the request.

Senator Raggio commented the Governor indicated a bill draft may be required for a supplemental appropriation to complete the Nevada Operations Multi Automated Data Systems (NOMADS) project that was discussed earlier during the Joint Subcommittee on Human Resources/K-12 meeting. He noted also penalties amounting to over $4 million will be imposed.

Mr. Comeaux reported the federal penalties for noncompliance have reached a total of $4,392,784. He added there is a necessity for a onetime appropriation for NOMADS that includes funding for the conversion plan, the audits under Title IV and Title V, the quality assurance contractor, training, dual systems support, disallowed expenditures, a bonus provision for the Department of Information Technology (DoIT) in an attempt to retain qualified staff on the project, and enhancements. Those add another $4,620,764. He calculated the total needed as a supplemental onetime appropriation at $9,013,548.

Senator O’Donnell asked whether that will be in addition to the $6 million just allocated to purchase additional computer equipment through another budget, which Mr. Comeaux confirmed. Senator O’Donnell recalled the penalties were going to be waived. Senator Raggio said it was his understanding the $4,392,784 in penalties will have to be paid, and there should be a return later of $2.3 million if the state meets compliance by certain milestone dates along the way.

Mr. Comeaux explained the state is obliged to pay a penalty for FY 1999 and another for FY 2000. If the state reaches compliance on schedule, 90 percent of the FY 2000 penalty will be reimbursed in FY 2001.

* * * * *

Senator Raggio said another bill draft request (BDR) was suggested for the purpose of relieving the White Pine County School District of a $2 million obligation and to reimburse Lincoln County for modular buildings at the elementary school. He noted the BDR should include criteria necessary for a county to qualify for any future payment of this nature. He said the criteria suggested should specify that the county must be at the maximum tax rate and be in a declining position regarding assessed evaluation.

Mr. Comeaux recalled discussing the matter with the Governor. Senator Raggio explained the intention was to refinance bonds and use the funds flowing from the refinancing, perhaps through the General Fund. Mr. Comeaux responded any refunds would affect the Bond Interest and Redemption Fund.

* * * * *

Senator Raggio returned to a discussion of the Commission on Ethics budget account 101-1343.

Ms. Baker drew attention to item number 3 on page 1 of the closing list (Exhibit C). She stated that was a proposal made by the Governor which is consistent with action taken by the Senate on S.B. 478.

Ms. Baker explained the proposal recommends replacing the existing Program Officer position with an unclassified Executive Director at a salary of $70,540, adding a full-time independent legal counsel at a salary commensurate with that of a deputy attorney general (AG) at $67,095, and adding a full-time legal secretary position. She said the Governor’s proposals will amount to a General Fund increase of $158,182 in FY 2000 and $132,107 in FY 2001 with the assumption that the half-time deputy AG services presently being provided would be eliminated and the funding transferred in support of the independent counsel.

Senator Raggio inquired why no changes are shown in the subtotals. Ms. Baker replied the closing list was prepared before all the details were worked out, and the summary of changes is included in the last paragraph at the bottom of the page. She noted $45,000 each year would be moved out of the General Fund budget for the Office of the Attorney General in addition to the increases requested.

Industrial Relations – Budget Page B&I-109 (Volume 2)

Budget Account 210-4680

Ms. Baker stated the Department of Business and Industry (B&I) accounts to be reviewed were discussed by the Joint Subcommittee on General Government and the closing sheets reflect the recommendations of the subcommittee. She said the Industrial Relations agency will be responsible for regulation of workers’ compensation insurance under the new 3-way system beginning on July 1, 1999.

Ms. Baker reported the Interim Finance Committee (IFC) previously approved 17 new positions, and the subcommittee requested the agency review those new positions and provide a plan to ensure that all avenues will be covered under the new 3-way plan. The subcommittee subsequently requested a reduction of two positions because the agency was unable to justify the workload, and the closing sheets reflect that reduction at the request of the agency.

Ms. Baker said the other adjustments relate to lower computer software prices than those originally proposed by the agency. She indicated the agency will enhance the claims indexing system by an additional $27,650 in FY 2000.

In response to a question from Senator Raggio, Ms. Baker explained that under the 3-way proposal the companies will begin paying premium tax on the workers’ compensation insurance. She said the assessment for the workers’ compensation budgets is an offset to the premium tax and there was a question as to how that will be calculated. She noted the Office of the Attorney General is in the process of preparing an opinion on the matter. She pointed out the matter will have no impact on closing the budgets.

Senator Raggio asked how enactment of Senate Bill 37, the privatization of insurance, will affect the budget.

SENATE BILL 37: Makes various changes regarding industrial insurance. (BDR 53-382)

Ms. Baker responded it should leave the premium tax the same. The bill will support the unfunded liability until the insurance commissioner determines that the account is solvent, and then the premium tax will go to the General Fund. She said the regulation of 3-way insurance will remain the same.

Ms. Baker reported the subcommittee closed the budget in accordance with the Governor’s recommendation, including 10 new safety and health inspector positions and 8 new boiler and elevator inspectors. She said these should address the projected growth in safety inspections required to maintain a safe working environment. She noted under maintenance decision unit M-200 the number of employers is expected to grow by 7,321 over the biennium with a commensurate increase of 162,793 in the workforce. She said it is projected an additional 1,255 objects will require inspection during that period.

Ms. Baker said the subcommittee requested outcome-based performance measures be added to the performance indicators for all budgets related to industrial relations. She noted those are listed on page 13 of the closing list, and the number of incidences of illnesses and injuries will be tracked under the Occupational and Safety and Health Administration (OSHA) budget.

B&I, Safety Consultation and Training – Budget Page B&I-122 (Volume 2)

Budget Account 210-4685

Ms. Baker said the subcommittee recommended closing the budget according to the Governor’s recommendation. She reported it will include two new positions to respond to the backlog of requests for workplace safety programs from employers in southern Nevada. She noted the Governor’s recommendation also includes an increase of $75,000 in each year of the biennium for a total of $425,000 per year to continue the multimedia safety campaign.

According to Ms. Baker the only adjustments reflected on the closing sheets relate to computer hardware and software pricing.

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B&I, Mine Safety & Training – Budget Page B&I-128 (Volume 2)

Budget Account 210-4686

Again Ms. Baker reported the subcommittee supported the Governor’s recommendation for one new Industrial Hygienist position and a Program Assistant position. She noted there are 59 underground mines in which air quality and noise levels must be monitored, and 475 active mines for which a database must be developed to track statistical information. She stated the recommendations were made as a result of a recent legislative audit.

Ms. Baker said the agency requested all the expenses for grants be included in the normal expenditure categories for ease of budgeting and accounting, and those comprise the long list of technical adjustments.

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B&I, NV Attorney for Injured Workers – Budget Page B&I-133 (Volume 2)

Budget Account 101-1013

Ms. Baker said the subcommittee approved the addition of $14,732 in FY 2000 for computer hardware and software recommended by DoIT. She added the subcommittee concurred with the Governor’s recommendation for a new Accounting Specialist position to improve financial administration in response to a 1998 legislative audit.

Senator Raggio asked whether the source of funding for the account is derived from the Division of Industrial Relations (DIR). Ms. Baker replied it is a transfer from DIR, but funding for workers’ compensation administrative and regulatory accounts is derived from the Workers’ Compensation and Safety Fund administered by the DIR.

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HR, Aging Older Americans Act – Budget Page AGING-1 (Volume 2)

Budget Account 101-3151

Ms. Baker noted the adjustments listed on page 21 of the closing list are primarily technical adjustments approved by the subcommittee. She explained the subcommittee recommended closing the budget with several changes to the Governor’s recommendation to properly align revenues and the agency’s funding math. She noted the changes resulted in General Fund savings of $26,375 for the biennium.

Ms. Baker said the subcommittee also recommended adjustments for the implementation of the Medicare Insurance Counseling and Assistance (ICA) program consistent with actions taken by the IFC in April which added a full-time and a part-time position in lieu of contract services. She noted the subcommittee was concerned that the amount of funding transferred from the Taxicab Authority (TA) for the Senior Ride Program in Clark County would only support 16,000 coupon books in each year of the biennium. Therefore the subcommittee recommended a Letter of Intent which will require the TA to prepare an analysis of its financial position and submit it to the IFC on September 30, 1999, regarding its ability to support an additional 4,000 to 6,000 coupon books. She said authorization was given for 20,000 coupon books each year in the coming biennium, although only 16,000 books were provided in FY 1998. She reflected the reserve of the TA was not sufficient for the Senior Ride Program, but the situation has been reversed.

Senator Raggio inquired regarding the status of the Retired Senior Volunteer Program (RSVP). Ms. Baker responded that in order to mitigate the reduction in state funding the subcommittee concurred with the division’s recommendation that funding designated by the Governor for the RSVP and for the Foster Grandparent Program be combined into one category and awarded on a competitive basis with consideration given to the funding needs of all programs. She added the subcommittee recommended placing funding for RSVP and rural senior centers on the General Fund priority list should additional funds become available prior to the end of the legislative session. She said the first priority requests $50,000 in each year of the biennium to restore state funding for rural senior centers to the 1999 levels, and the second priority requests $248,849 for the senior volunteer programs to replace the cuts made by the Governor to those programs.

Senator Raggio asked whether the funds will be pooled and an additional amount placed on a priority list if the budget is closed as recommended by the joint subcommittee. Ms. Baker answered that is correct, and the pooling of funds leaves a $111,151 total in the budget in each year of the biennium, down from $360,000. She said another $248,849 on the General Fund priority list would restore the funding.

Senator Raggio noted the Governor recently recommended restoration of some of the funds. Mr. Comeaux interjected the Governor specifically recommended restoration of $174,849 in each year of the biennium for the two programs combined. He said when that is added to the $111,151 in the present budget the total fund will be raised to $286,000 in each year of the biennium.

Senator Raggio asked whether the recommendation includes all the programs that were funded last legislative session for the current biennium. Ms. Baker drew attention to the list of actual expenditures on page AGING-8 of The Executive Budget. She reiterated that under the subcommittee proposal all funds would go into one category and be awarded on a competitive basis with special consideration to the more needy programs.

Senator Raggio inquired whether the pool contemplates inclusion of other programs along with those that are presently funded. Ms. Baker stated she did not believe so, and she was unsure whether each program will necessarily receive funding. She clarified the funding decisions will be based upon the proposal for each program.

Senator Raggio suggested the budget could be closed in accordance with the joint subcommittee recommendation and additional funding could be considered later.

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HR, Senior Services Program – Budget Page AGING-10 (Volume 2)

Budget Account 101-3146

Ms. Baker said the program is often called the Community Home-Based Initiatives Program (CHIP). She reported the subcommittee concurred with the Governor’s recommendation to substantially expand CHIP services to address waiting lists for Medicaid-eligible clients. She indicated about 500 people are on the waiting list, and the Governor’s budget will provide additional resources to expand CHIP services to another 200 people over the biennium.

Ms. Baker said the only issue noted by the subcommittee is that there are no additional funds recommended to address the state waiting list of 82 clients. She said the subcommittee placed the program on the priority list to fund the 82 additional slots at a cost of $625,000 in General Fund dollars in each year of the biennium. She pointed out each slot costs approximately $7,600 a year.

Ms. Baker noted the budget contains several enhancements in addition to the funding for 200 new Medicaid slots. She said two positions to administer the program have been added, funding has been added to enhance the database to track clients, hours have been increased for personal care and homemaking services, and state and Medicaid funds have been added for nutritional counseling and menu planning programs for 10 percent of the clients who have been identified as high nutritional risks.

Senator Raggio commented the budget is one of many that may have to be reopened once decisions are made regarding the priority list.

* * * * *

HR, Homemaker – Budget Page AGING-16 (Volume 2)

Budget Account 101-3252

Senator Raggio pointed out the account is new. Ms. Baker stated two programs, the Elder Protective Services (EPS) program and the Title XX Homemaker program, transfer into the Aging Services Division from the Division of Health Care Financing and Policy (DHCFP).

Ms. Baker reported that when the subcommittee reviewed increases in administrative costs in the budget it was determined it would cost more to administer the EPS and Homemaker programs under Aging Services than under DHCFP. She explained the subcommittee requested that the division prepare a cost/benefit analysis to justify the Governor’s recommendation to make the transfer. The response from the agency is summarized on pages 25 and 26 of the closing list.

Ms. Baker stated the subcommittee determined that the benefits of the Governor’s proposal to make the transfer would improve services for Nevada’s seniors and disabled adults. Subsequently, she said, when the subcommittee approved the Purchase of Social Services budget on April 28, an additional $59,049 was approved for FY 2000 and $52,176 for FY 2001 in Title XX funds that were identified as being available for the homemaking services. The subcommittee recommended the EPS and Homemaker programs be transferred effective July 1, 1999.

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DETR Director’s Office – Budget Page DETR-1 (Volume 2)

Budget Account 101-3270

Ms. Baker reported the remaining budgets on the closing list reflect the recommendations made by the Joint Subcommittee on General Government.

Ms. Baker stated the Governor recommended just a few enhancements to the director’s office budget for travel and reasonable accommodation for employees of the department. She noted some technical adjustments were made to remove contingency reserves that were included in the event salary increases were approved, which they were not.

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DETR Administrative Services – Budget Page DETR-6 (Volume 2)

Budget Account 101-3272

Senator Raggio wanted an explanation of the differences between the two budgets. Ms. Baker replied the director’s office includes the staff that reports directly to the director, and the Administrative Services budget provides for financial management personnel and office services. The latter budget includes the centralized services for the entire department, whereas the former applies solely to the director’s office.

Ms. Baker explained that because of the large number of computers requested by the agency the subcommittee asked the agency to review the request again. As a result of the review, she said, the agency was able to eliminate 46 computers from all the budgets. Ms. Baker said the closing sheets for the department reflect the removal of those requests, with a reduction of five in the request for this budget as a result of the computer recycling plan. She added the contingency reserve has also been removed from the budget.

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DETR, Information Development and Processing – Budget Page DETR-12 (Volume 2)

Budget Account 101-3274

Ms. Baker explained the long list of adjustments shown on page 29 of the closing list reflects transfers into decision units. She summarized them, saying that when the subcommittee closed the Information Development and Processing (IDP) budget it significantly reduced the recommended enhancements for in-state and out-of-state travel. She said the Governor had recommended an increase of over 100 percent, and the subcommittee recommended reducing that to 30 percent over the base expenditures. She added there is a proposal to transfer the Research and Analysis Bureau to a separate budget, and many of the adjustments can be attributed to the transfer.

Ms. Baker stated again the subcommittee recommended approving the computer recycling plan, removing several personal computers (PCs), and removing the contingency reserve.

DETR, One Stop Career Centers – Budget Page DETR-28 (Volume 2)

Budget Account 101-4772

Ms. Baker mentioned the budget includes $291,626 in each year of the biennium, as recommended by the Governor, for grants to "local partners" to establish one-stop career centers.

DETR, State Job Training Office – Budget Page DETR-33 (Volume 2)

Budget Account 101-1006

Ms. Baker pointed out several adjustments were made because the Job Training Partnership Act (JTPA) is being replaced by the Workforce Investment Act (WIA) of 1998 beginning on July 1, 2000. She explained the first adjustments in FY 2000 are based upon a reduction in Nevada’s allocation of funds. She said the reduction attributable to WIA for all programs amounts to approximately $1.7 million. She said the second year of the biennium provides a minimum amount of funding under JTPA for the closeout, and as soon as the WIA grant is available the agency will go before the IFC for approval. At that time all the programs will transfer to the new budget.

Senator Raggio asked why a new budget must be created. Ms. Baker answered the agency indicated that under JTPA a State Job Training Office and a number of boards were created by executive order, and under WIA there will be a state board that has put together a 5-year plan. She said the WIA programs will be funded through the US. Department of Labor (DOL) through the Workforce Investment Act and it will include many of the same programs.

Ms. Baker said the subcommittee included a Letter of Intent recommending a smooth transition of the seven positions to the new budget.

DETR, Equal Rights Commission – Budget Page DETR-40 (Volume 2)

Budget Account 101-2580

Ms. Baker reported the subcommittee approved the budget according to the Governor’s recommendation, which continues 20.51 full-time-equivalent (FTE) existing positions and minor enhancements for travel and training and replacement of office equipment.

Senator Raggio asked what backlog exists in the commission. Ms. Baker replied there are very few cases that are not within their time frame. Senator Raggio recalled the commission had gone through a long period in which it was unable to get reimbursement because the timeline for cases was not being met. Ms. Baker responded the commission is meeting the federal contract. She noted there had been a small reduction during the current fiscal year, but in testimony to the subcommittee the commission indicated that should not be a problem in the future.

DETR, Employment Security – Budget Page DETR-44 (Volume 2)

Budget Account 205-4770

Ms. Baker said the subcommittee agreed with the Governor’s recommendation to fund a new Microscan imaging system which provides optical scanning and electronic image networking of unemployment insurance records. She indicated approval also was given to fund a fraud detection system to identify claimants who are collecting unemployment benefits while working.

Ms. Baker reported the subcommittee eliminated funding for a second telephonic claims center in response to the division’s request to conduct a comprehensive evaluation of the current center which just opened in Las Vegas. She noted DETR will bring a proposal to the next legislative session based upon the analysis.

Ms. Baker said the subcommittee also recommended that the division implement an electronic funds transfer process to allow payment of unemployment insurance taxes through an automated clearinghouse.

Ms. Baker indicated the subcommittee recommended several letters of intent requiring the Employment Security Division to develop outcome-based performance indicators to measure efficiencies and effectiveness of the larger proposals in the budget such as the telephonic claims center, the employer-audit function, and the unemployment insurance tax-collection process including the new electronic funds transfer proposal.

DETR, Claimant Employment Program – Budget Page DETR-53 (Volume 2)

Budget Account 205-4767

Ms. Baker said the subcommittee agreed with the Governor’s recommendations, including eight new Employment Specialist I positions to address the need for adequately trained individuals to handle the growing number of employers. She said the subcommittee also concurred with the Governor’s recommendation to increase funding by $2.4 million for purchase of training services over the coming biennium.

Ms. Baker said the only adjustment is for the department’s computer recycling program. In response to a question by Senator Raggio, Ms. Baker clarified the previous budget provides for help in finding jobs for people, and the Claimant Employment Program provides training for the unemployed.

DETR, Employment Security – Special Fund – Budget Page DETR-60 (Volume 2)

Budget Account 235-4771

Ms. Baker explained the account can be used for a number of things, including capital improvements, expenditures for programs awaiting federal funding, and administrative costs that may not be charged against the federal grants. She said the agency uses the budget primarily to support maintenance of state-owned buildings, and for some of the larger computer projects. She noted the General Unemployment Insurance Development Effort (GUIDE) project was originally funded from the account until the U.S. Department of Labor was able to reimburse the state.

Ms. Baker said the subcommittee agreed with the Governor’s recommendation for this biennium to fund the rewrite of the unemployment insurance tax system at a projected cost of $5.3 million. She said so far no federal funds have been provided for that purpose, so all the funding will come from this account for the project beginning on July 1, 2000 and ending June 30, 2002. Ms. Baker noted the adjustments in the budget reflect the agency’s request to delay the tax project under enhancement decision unit E-127 until the second year of the biennium.

DETR, Alcohol & Drug Rehabilitation – Budget Page DETR-105 (Volume 2)

Budget Account 101-3170

Ms. Baker reported the budget was closed according to the Governor’s recommendation with minor technical adjustments to delete some moving expenses because the agency will remain in the Kinkead Building in Carson City. She said the funding of the contingency reserve for salary adjustments was eliminated and placed back into the block grant category.

Ms. Baker pointed out Assembly Bill (A.B.) 181 will transfer the Bureau of Alcohol and Drug Abuse (BADA) to the Department of Human Resources.

Ms. Baker noted there will be no major fiscal impact on either department if A.B. 181 passes, although a series of adjustments will be required to accommodate the transfer. Senator Raggio decided to hold the budget for the time being.

Senator Coffin asked whether there was a difference in the way Assembly members of the subcommittee closed the budget from the way those from the Senate closed it. Ms. Baker responded pages 41 and 42 reflect the way both sides of the joint subcommittee closed the budget. She said the Assembly Committee on Ways and Means closed the budget based on the adjustments reflected on the closing sheet and with the authority for staff to make the technical adjustments if A.B. 181 is approved.

Senator Raggio reiterated his intention to hold the budget. He said questions relating to the operation and distribution of funds in the agency have arisen and he is awaiting further information on the matter.

DETR, Community Based Services – Budget Page DETR-113 (Volume 2)

Budget Account 101-3266

Senator Rawson pointed out he had made a suggestion earlier in the day to add funds for a community-based waiver. Senator Raggio suggested it may be more appropriate to add the funding to the priority list. Ms. Baker responded the funding is already on the priority list. Senator Rawson clarified he had suggested adding funding for 25 clients.

Ms. Baker stated the subcommittee reviewed the proposal. She explained the original proposal was for a maximum of 48 clients, which is included on the priority list at approximately $5 million over the biennium with a starting date of January 1, 2000. She said there are approximately 162 clients on the waiting list for the current disability waiver, and the Office of Community Based Services identified 29 clients that they propose to move out of institutional care, making a total of 191 potential clients. The administration reviewed the proposal, she said, and estimated it would cost as much as $30 million to serve 191 clients.

Senator Raggio commented he would like to see the program begin in some way since "something" had held up the project, although funds were authorized last session. He surmised there has been a problem because of litigation in other states. He wondered whether, if the state starts the program, the courts will mandate that the program be offered to everyone on the waiting list even though a cap might be placed on the program.

Senator Rawson noted the litigation referred to by Senator Raggio involved a mental health case. Senator Rawson said the state still has the authority to run a program and put a cap on it. Ms. Baker interjected she has heard of the potential for problems under a waiver if a waiting list exists.. Senator Rawson noted if funding is authorized for a cap of 25 clients the cost should be less than half. Ms. Baker said the subcommittee considered it best to administer the program through a separate budget account so that the cost of the waiver could be tracked. She said some administrative positions would be required, so those should be considered according to the number of clients. Senator Raggio opined the addition of clients should be included in a separate budget. Ms. Baker replied that was correct and Senator Rawson agreed, saying the amount could be capped and a "sunset" condition could be included in the event of court cases.

DETR, Developmental Disabilities – Budget Page DETR-118 (Volume 2)

Budget Account 101-3154

Ms. Baker reported the subcommittee recommended closing the budget in accordance with the Governor’s recommendation.

Senator Raggio adjourned the meeting at 5:20 p.m.

RESPECTFULLY SUBMITTED:

Judy Jacobs,

Committee Secretary

APPROVED BY:

Senator William J. Raggio, Chairman

DATE: