The Senate Committee on Finance was called to order by Chairman William J. Raggio, at 8:20 a.m., on Tuesday, May 18, 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

Debbra J. King, Program Analyst

Barbara Moss, Committee Secretary

OTHERS PRESENT:

Senator Raggio opened the meeting with the Senate Committee on Finance Closing List #33 (Exhibit C).

Workers’ Compensation Hearings Reserve – Budget Page ADMIN-113 (Volume 1)

Budget Account 101-1014

Birgit Baker, Program Analyst, indicated the Workers’ Compensation Hearings Reserve account was established to provide resources relating to unanticipated caseload increases for the Nevada Attorney for Injured Workers and the Hearings Division of the Department of Administration between legislative sessions. She said that to access the funding in the Hearings Reserve account, the two agencies must submit work programs with appropriate workload justification to the Budget Division, which may forward the request to the Interim Finance Committee (IFC) for approval.

M-200. Ms. Baker said M-200 recommends funding for 1 Appeals Officer, 1 Hearings Office, 2 Legal Secretaries, and associated costs for the Hearings Division.

M-201. Ms. Baker indicated M-201 includes funding for 1 Deputy Attorney and 1 Legal Secretary for the Nevada Attorney for Injured Workers.

M-202. Ms. Baker stated M-202 recommends funding for 1 Legal Research Assistant and 1 Legal Secretary for the Nevada Attorney for Injured Workers.

Senator Raggio asked what was happening in regard to S.B. 55. Ms. Baker indicated the bill went to the Assembly Committee on Commerce and Labor on April 16, 1999, but had not yet been scheduled for a hearing. Senator Raggio inquired from what fund the money would come. Ms. Baker indicated the money would come out of the Workers’ Compensation and Safety Fund through the Division of Industrial Relations (DIR), which is the purpose of the Hearings Reserve account. She stated the Appeals Officers provide administrative oversight, render and write decisions, and make other changes within the agency.

Senator Raggio surmised the budget must be adjusted to reflect that authority should S.B. 55 pass. Ms. Baker explained a request was made that the budget need not be returned to the committee and the fiscal note amount could be adjusted into the budget by fiscal analysis staff.

Senator Raggio stated the recommendation is to add $115,000 for the computer programming needs on the automatic tracking system for the Hearings Division. He suggested closing the budget with that addition and with authority for the staff to adjust the fiscal note amount into the budget should S.B. 55 be approved.

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Employers Insurance Company of Nevada – Page SPEC PURPOSE-20 (Volume 3)

Budget Account 998-IC85

Ms. Baker said the Employers Insurance Company of Nevada (EICN) budget is an agency-requested budget. She stated the agency currently provides workers’ compensation coverage to approximately 44 percent of Nevada’s workforce, and self-insured employers and associations of self-insured employers make up the remaining 56 percent. She indicated that under 3-Way insurance, which was approved during the 1995 Legislative Session to be effective July 1, 1999, EICN projects that 50 percent of the market share the agency is currently insuring will be lost; therefore, decision unit M-200 reflects the reductions in premium and claims expense. Ms. Baker said that in the assessment for the Workers’ Compensation and Safety Fund the only adjustment recommended by the staff is to adjust the assessment to a level that will support what the Legislature has already approved for the budgets of the DIR and other programs. She said it is anticipated the EICN will initially pay a little more than projected because the assessment is based on claims, and under S.B. 37 it would be the same. She noted the adjustments on the closing sheet reflect the DIR assessment at the levels for those programs.

Ms. Baker referred to a letter from Douglas D. Dirks, Chief Executive Officer, EICN, on page 5 of Exhibit C, which indicated the budgets submitted in The Executive Budget represent the EICN’s best estimate of the resources that will be needed by the agency to operate during the upcoming biennium, with or without passage of S.B. 37. She said there were no other adjustments on the closing sheet.

Senator Raggio confessed confusion in regard to closing the budget without any changes depending upon passage of S.B. 37. Ms. Baker explained that EICN is exempt from the State Budget Act, which means that once the budget is closed the agency can make any necessary changes without approval of the budget office or IFC. Therefore, technically, on July 1, 1999, the EICN can make any changes to its budget to accommodate that which is approved by the Legislature.

Senator Raggio inquired what exactly is being approved. He expressed the understanding that whether or not EICN is privatized, there will be a reduction in the number of employees and asked whether that reduction should be reflected in the budget. Ms. Baker indicated the issue has been reflected in decision unit M-200. Senator Raggio asked whether it includes the reduction in force (RIF) whether or not EICN is privatized. Ms. Baker said, "That is correct." Senator Raggio requested further explanation regarding the approximately $8.5 million that will adjust the balance forward for an adjustment to reserve. Ms. Baker explained the DIR assessment, which is the assessment to pay for the regulatory functions, was adjusted under expenditures. She said the agency used the FY 1998 "actuals" and since that time the Legislature increased the budgets of those agencies, the DIR in particular. She stated EICN will be paying a higher amount than originally anticipated; therefore, the adjustment increases the amount to be paid for the assessment, reduces the reserve, and subsequently reduces the balance forward in the second year to correspond to the reduction in reserve the first year.

Senator Raggio said that since the EICN is exempt from the State Budget Act, there is sufficient authority in this budget to handle the situation in whatever way is ultimately directed. Ms. Baker reiterated that Mr. Dirks sent a letter indicating that this budget and the JHC Health Center have sufficient operating resources.

In regard to decision unit M-200 on page 4 of Exhibit C, Senator Neal noted the reduction in premium and asked whether this was a biennial or yearly figure. Ms. Baker indicated that in the first year of the biennium the $155 million represents a 35 percent reduction, and in the second year the $242.5 million represents a 55 percent reduction in premium volume. She stated the reduction is the agency’s estimate of how much market share it anticipates losing over the biennium. Ms. Baker indicated it is a total of 55 percent reduction over the biennium.

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JHC Health Center – Budget Page SPEC PURPOSE-27 (Volume 3)

Budget Account 998-IC86

Referring to page 10 of Exhibit C, Ms. Baker indicated the JHC Health Center, formerly the Jean Hanna Clark Rehabilitation Center, is owned and operated by the EICN and provides programs and services that include occupational safety and health, orthopedic and occupational rehabilitation, pain management, health and wellness, neurological rehabilitation, and multispecialty clinics. She said this budget is the same as the previous budget insofar as being exempt from the State Budget Act. She noted that any changes to the operating budget after July 1, 1999, may be made without approval of the Budget Division or the IFC.

Ms. Baker pointed out the letter from Mr. Dirks on page 10 of Exhibit C and indicated that what was presented in The Executive Budget is the agency’s best estimate of the resources needed to operate during the upcoming biennium, with or without passage of S.B. 37. She noted the staff has no technical adjustments on this budget.

Senator Raggio asked whether or not there were any major reductions in this budget. Ms.  Baker expressed the belief there were no reductions in this budget. She said the reductions in the balance forward in the second year of the biennium in each of the decision units reflect reductions to reserve in the first year. She indicated this budget contains enhancement decision units to improve the building.

Senator Raggio questioned the need for a public relations campaign. Ms. Baker stated the agency indicated EICN significantly subsidizes its operations. She declared the agency felt a need to have a campaign to market its services in order to stand alone.

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

Budget Account 101-3170

Ms. Baker indicated she would address the Joint Subcommittee on General Government’s recommendations shown on page 11 of Exhibit C, and then discuss the actions taken by the Assembly Committee on Ways and Means described on page 12 of Exhibit C. She pointed out the closing sheets on the adjustments reflect only the subcommittee recommendations.

Ms. Baker declared those were the only recommendations made by the Joint Subcommittee on General Government for closing this budget.

Ms. Baker said that when closing the budget of the Director’s Office of the Department of Human Resources, it was recommended $500,000 be added in each year of the biennium of Maximus revenue earmarked for adolescent treatment programs. She indicated the committee did not approve a corresponding reduction to the General Fund as originally recommended by the Joint Subcommittee on Human Resources/K-12. She said that in addition, the action of the Assembly Committee on Ways and Means was in support of A.B. 181 as amended, which proposed to transfer the Bureau of Alcohol and Drug Abuse (BADA) from the Department of Employment Training and Rehabilitation (DETR) to the Department of Human Resources effective July 1, 1999. It is further required that BADA develop a request for proposal (RFP) for comprehensive evaluation of adolescents with problems relating to substance abuse or mental illness. Ms. Baker indicated Maximus funds are proposed to be utilized for grants for residential and outpatient substance abuse treatment programs for adolescents as required by A.B. 181.

Senator Raggio indicated this budget is a real "jigsaw puzzle" that he finds difficult to understand. He commented, "Maximus money is money that you hope you’re going to get and is not real dollars. Maximus goes out and tries to get money and they get a finder’s fee if they get any money." Ms. Baker confessed ignorance regarding Maximus, but said the committee did not remove any General Fund dollars from the BADA budget and only put in Maximus authority. Senator Raggio said he did not understand the significance of moving this budget from DETR to the Department of Human Resources. He made the decision to keep this budget open until "we get a handle on it."

Senator Neal, referring to EICN, indicated there was a closing of reserve of $2,018,000,000 in 1997, and asked the amount of the reserve presently. Ms. Baker noted the reserve was an improper balance that was placed into the budget. She said the $2 billion balance comprises all of the assets of the system including investments and property, which should have been reflected as a cash balance. She indicated the staff is working with the agency to arrive at a more accurate figure. Ms. Baker indicated that as of June 30, 1998, the EICN financial statement showed assets and investments (including bonds, securities, and equities) of $1.6 billion.

Senator Coffin indicated that Maximus has a home page on the Internet Web which states it is in the business of using available resources and advanced technology to maximize productivity and "something else." He commented, "It is a buzz-word company." Senator Raggio pointed out "some" budgets were closed yesterday that included Maximus authorization.

Dan Miles, Senate Fiscal Analyst, Fiscal Analysis Division, LCB, distributed and addressed the Differences Closing Report (Exhibit D).

Washington Office. Mr. Miles indicated the Senate Committee on Finance implemented Budget Revision No. 91, which realigns who contributes to the Washington Office, and the Assembly Committee on Ways and Means eliminated the Washington Office altogether. Senator Raggio declared the Senate Committee on Finance will stand with its action.

Lieutenant Governor. Mr. Miles said the Governor’s recommended budget included an additional secretarial position for the Lieutenant Governor and the Assembly Committee on Ways and Means eliminated the position. He indicated he had spoken to the Lieutenant Governor’s office and was informed the position would have been located in the northern Nevada office in Carson City, which would "even up" the office to include three individuals in each office, north and south.

Senator Raggio expressed the opinion the Lieutenant Governor made her case and suggested the committee’s action be held. Mr. Miles commented the issue was not on the Differences Closing Report because the budget was closed May 17, 1999; however, the budget for the Office of the State Treasurer was closed by the Senate Committee on Finance in the same manner. He pointed out the Senate Committee on Finance added $150,000 a year for allodial title expenses and indicated he would also point it out to the Assembly Committee on Ways and Means.

Controller’s Office. Calling attention to page 2 of Exhibit D, Mr. Miles indicated the Senate Committee on Finance added 2 positions to module E-850 in enhancements at the request of the Governor. He explained that module E-850 is the Integrated Financial System (IFS) module. He said the initial Governor’s recommended budget contained 5 new positions and it was closed this way by the Assembly Committee on Ways and Means. Mr. Miles declared there was a budget revision request to add an additional 2 positions for the IFS, as well as accounts receivable duties that will be performed by the controller.

Department of Taxation. Mr. Miles noted there is no difference between the money committees in their closings of the Department of Taxation budget, except the motion made by the Senate Committee on Finance requested a Letter of Intent asking the Department of Taxation to obtain a third-party independent review of the results and recommendations from the business process reengineering (BPR) study.

B&I, Plant Industry. As shown on page 3 of Exhibit C, Mr. Miles said all the enhancements "agreed with" the Assembly Committee on Ways and Means, with the exception of module E-125. He explained that module E-125 was a request by the Governor to add 1.5 positions in seasonal salaries, in addition to operating and travel expenses for the Africanized honey bee program and the fire ants problem in southern Nevada. He said, in addition, the request included $25,000 a year for hay for the wild horse facility in Carson City.

Senator Jacobsen requested more information on the hay for the wild horse facility. Mr. Miles indicated the Governor recommended money be provided by the Division of Agriculture to feed the wild horses housed at the facility in Carson City. Senator Jacobsen asked whether the money could be taken out of the "Ohio fund."

John P. Comeaux, Director, Department of Administration, indicated the Division of Agriculture is responsible for estray horses, not wild horses, and does not have access to that fund.

Commission on Economic Development. Referring to page 4 of Exhibit C, Mr. Miles indicated this budget relates to the Washington Office where the Senate action was to accept Budget Revision No. 91, wherein the amount coming from economic development to the Washington Office was reduced but the money was put back into the advertising program. He said the Assembly Committee on Ways and Means eliminated the Washington Office transfer altogether because it was eliminated in its closing.

Senator Raggio asked the amount. Mr. Miles answered the original transfer to the Washington Office was $99,900 and Budget Revision No. 91 recommended reducing it to $20,000, which would provide savings of $79,900. He indicated the request was to put the savings back into advertising and economic development, which was recommended by the Senate Committee on Finance. He noted that the Senate Committee on Finance also wanted to add language to the General Appropriations Act to allow Unexpended Train Employees Now (UTEN) the TEN funds to be carried forward from the first year of the biennium to the second. Mr. Miles said the committee might recall that UTEN often initiates projects late in the year and the money expires and reverts on June 30. However, the UTEN has an ongoing project and would like to use the money in both years of the biennium. He noted there is also a Letter of Intent from the Senate Committee on Finance that the Commission on Economic Development consider increasing the average wage requirement under the TEN program from 75 percent to at least 80 percent of the statewide or county average wage in order to align it with other programs. He said it is also an incentive. Senator Raggio commented, "They should be able to go with that."

Commission on Tourism. Mr. Miles pointed out page 5 of Exhibit D and indicated two differences in the closing actions of the two money committees:

1. There is a difference in the transfer to the Washington Office wherein the Senate Committee on Finance increased the transfer from the tourism budget because it was decreased from the economic development budget. He indicated the Assembly Committee on Ways and Means "wiped it out altogether" because they eliminated the Washington Office.
2. Mr. Miles said the Assembly Committee on Ways and Means determined the room tax forecast for money into tourism for the next 2 years was "a little" understated. The committee estimated there will be an extra $193,000 next year and $197,000 the following year, and recommended it be transferred in total to the Division of State Parks for maintenance projects within the state. Mr. Miles declared the Division of State Parks has a list of deferred maintenance projects that total approximately $30 million.

HR, Emergency Medical Services. Calling attention to page 6 of Exhibit D, Mr. Miles pointed out a difference under "Base" in the "Personnel" line, and explained that these are payroll fringe changes which are technical adjustments that occurred on the Assembly side but did not appear on the Senate side. He noted the Assembly Committee on Ways and Means added $20,000 a year for an Emergency Medical Services (EMS) rural initiative in module E-131 in enhancements, and in module E-877 in enhancements added $18,436 each year for a radio network and $12,205 each year for information services for the EMS budget.

HR, Children and Family Services Administration. Mr. Miles pointed out M-205 on page 7 of Exhibit D, and said the Assembly Committee on Ways and Means closed this budget as recommended by the Governor, and the Senate Committee on Finance added a single Social Worker III position for S.B. 288. He explained that S.B. 288 was a bill sponsored by Senator Washington to start a foster care pilot program between the state and Washoe County in terms of trying to make foster care a "seamless activity" when a child is under custody of the state or county. Senator Raggio remarked the program would prevent children from being "jerked back and forth." Mr. Miles indicated S.B. 288 is currently in the Assembly Committee on Ways and Means.

HR, UNITY/SACWIS. Calling attention to page 8 of Exhibit D, Mr. Miles said in regard to enhancements module E-720, "DCFS Computer Hardware," the Assembly Committee on Ways and Means deducted a computer that was part of the closing action. However, because the Senate Committee on Finance added the Social Worker III position, the computer was left in the budget.

DETR Director’s Office. On page 9 of Exhibit D, Mr. Miles indicated module E-925 was closed as recommended by the Governor by the Senate Committee on Finance. He said the Assembly Committee on Ways and Means eliminated a position and the associated cost. He pointed out this is related to A.B. 181, which would remove BADA from DETR and add it to the Department of Human Resources. Mr. Miles noted that there are two or three accounts in DETR that have BADA support positions, and those would be deleted and moved with BADA when BADA is moved.

DETR Administrative Services. Mr. Miles indicated in module E-925 a position has been removed pursuant to A.B. 181, which is "the BADA move."

DETR, Rehabilitation Administration. Mr. Miles noted on page 10 of Exhibit D, modules E-805 and E-925 are both A.B. 181-related.

DOP Director’s Office. Referring to pages 11 and 12 of Exhibit D, Mr. Miles indicated there is no difference in the closing of this budget with the exception of the Letters of Intent and legislation. He recalled there were a number of Letters of Intent proposed by the joint subcommittee, in addition to legislation included in the Appropriations Act. He pointed out the difference was shown at the top of page 13 of Exhibit D, under "Senate Closing," wherein were the Letters of Intent that added a request for the Department of Prisons to review the feasibility of providing staff housing at the Lovelock and Ely prisons in their study for the next session. Mr. Miles stated the Senate Committee on Finance did not agree with including language in the Appropriations Act to prohibit privatization in the next 2 years.

Southern Nevada Women’s Prison. On page 13 of Exhibit D, Mr. Miles recalled that when the budget was closed at the request of the Governor, the debt service for the private contract on the women’s prison in southern Nevada was removed. He indicated the debt service would be paid from the Consolidated Bond Interest and redemption account that was created in order to free up over $2.3 million per year in general funds, which is part of a proposal from the Governor to direct the funds toward the problems of the White Pine County and Lincoln County School Districts. He declared the Senate Committee on Finance agreed to remove the debt service payment and he was unaware whether the Assembly Committee on Ways and Means had heard the proposal.

DMV, Compliance Enforcement. Referring to page 14 of Exhibit D, Mr. Miles said there appears to be a significant difference in a number of accounts in the closing actions of the Assembly Committee on Ways and Means and the Senate Committee on Finance. They are all related to the reorganization of the Department of Motor Vehicles and Public Safety. Mr. Miles noted the Senate Committee on Finance approved the reorganization, which basically approves the Governor’s recommendation. He pointed out the Assembly Committee on Ways and Means did not approve the reorganization. He declared there are a number of technical differences, but the only difference in compliance enforcement is whether or not to reorganize the DMV&PS.

DMV, Field Services. Calling attention to page 16 of Exhibit D, Mr. Miles indicated the differences are due to reorganization.

Senator Raggio requested Mr. Miles address all differences not related to reorganization.

DMV, Drivers License. Referring to page 24 of Exhibit D in module E-125, "Driver’s Licenses," Mr. Miles indicated both committees approved the new digitized-photo driver’s licenses. He noted the Senate Committee on Finance used a Highway Fund appropriation to pay the additional cost, which was also recommended by the Governor. However, the Assembly Committee on Ways and Means opted for a fee increase to pay for the digitized-photo driver’s licenses. Mr. Miles declared that other differences in the budget are due to reorganization.

DMV, Drug Commission. Pointing out page 36 of Exhibit D, Mr. Miles said that although the budgets were closed the same, a $100 difference was included in order that the Senate Letter of Intent would appear on the page; however, it did not appear. He explained there was a Senate Letter of Intent to have the Drug Commission report quarterly to the IFC on its activities. Senator Neal asked whether the $100 will be taken out since the Letter of Intent did not appear. Mr. Miles stated the $100 will be removed after the Assembly Committee on Ways and Means has agreed to the Letter of Intent.

DMV, Justice Assistance Account. On page 37 of Exhibit D Mr. Miles called attention to the Aftercare Program. He said the budget initially had a state match for the Aftercare Program to match federal funds. The Budget Division later requested the match be removed, then requested part of the match be left in. The Senate Committee on Finance approved the request in its closing action to ensure a cash match will be available for implementation of the program.

Mr. Miles quoted a portion of a memorandum from Mr. Comeaux (Exhibit E) regarding a cash match requirement: "A ten percent match is required for federal funding." He indicated Mr. Comeaux also supplied correspondence from providers that confirm the required cash match, which he noted is a hard cash match; however, the opinion is divided on whether the organizations have the ability to provide 100 percent of the match and "let the state off the hook." Mr. Miles stated that Mr. Comeaux recommends that rather than $43,212 the first year, $21,606 in state general funds be provided for a match each year of the biennium in order to ensure the viability of the program. He pointed out the fiscal staff calculated $21,606 times 2 in the first year only, whereas Mr. Comeaux recommends using half of the $21,606 in each year.

DMV, Justice Grant. Referring to page 38 of Exhibit D, Mr. Miles said that in M-200 the Senate Committee on Finance provided a full-time Management Analyst and a half-time Program Assistant for this budget. He indicated this was a request of the agency. He declared the Management Analyst-type position is higher level and much more flexible. Mr. Miles noted that by doing this with federal funds, the cost would only be an additional $3,700 the first year.

Debbra J. King, Program Analyst, Fiscal Analysis Division, LCB, explained The Executive Budget had a full-time Program Assistant position. The Budget Division requested a full-time Management Analyst position and left the Program Assistant at half-time.

DMV, Dignitary Protection Program. On page 39 of Exhibit D, Mr. Miles indicated the Senate Committee on Finance at the request of the Budget Division enhanced this budget with additional funds for out-of-state travel, security cameras, and replacement computers, as well as training in dignitary protection services.

DMV, Division of Investigations. Referring to page 40 of Exhibit D, Mr. Miles said the only difference in the closing actions is the treatment of the VIPER Program. He noted the budget was closed the same in the Senate and Assembly. He indicated the VIPER Program was not recommended in the Governor’s budget. Mr. Miles reported that the Senate placed the VIPER Program on the priority add-back list. He said the Assembly suggested the division return to IFC for possible funding some time in the future, but "they got the organization of that program fixed."

Senator Neal explained the VIPER Program is the stolen vehicle program. He indicated that since police officers must cross jurisdictional lines, it was determined better to retain a state presence to enhance local law enforcement when tracking stolen vehicles. The senator said the item was placed on the add-back list for funding when funds become available.

DMV, Administrative Services. Pointing out pages 41 and 42 of Exhibit D, Mr. Miles indicated the difference in closing was due to the reorganization.

DMV, Traffic Safety. At the bottom of page 42 of Exhibit D, Mr. Miles indicated the Senate Committee on Finance closed the budget as recommended by the Governor. He said the staff "forced this one out of balance" because the Assembly Committee on Ways and Means had a Letter of Intent which did not get into the closing report.

DMV, Hazardous Materials. On page 43 of Exhibit D, Mr. Miles indicated the Senate Committee on Finance closed this budget as recommended by the Governor with some adjustments. He said the Assembly Committee on Ways and Means removed all but $20,000 of the Beatty dump site fees because the committee did not determine it a reliable source of revenue. The Assembly Committee on Ways and Means replaced it with General Fund appropriation, and added $176,000 the first year and $61,000 the second. He declared the Assembly Committee on Ways and Means also added a new category entitled "Rural Training Contracts" for $20,000 each year, which would be dependent upon the Beatty dump fees coming in.

DMV, Emergency Response. Mr. Miles indicated on page 44 of Exhibit D, the Senate Committee on Finance closed the budget in conjunction with S.B. 167 which requires the Emergency Response Commission to be funded by a Highway Fund appropriation. He said the fees that currently go to the Emergency Response Commission are sent to the Highway Fund and the Emergency Response Commission is required to be funded with a Highway Fund appropriation. He noted a Highway Fund appropriation of $94,915 was added each year of the biennium for that purpose.

Colorado River Commission. Pointing out page 45 of Exhibit D, Mr. Miles indicated that in regard to module E-805, the budget recommended 3 positions be transferred from classified to unclassified service, and the enhancement include money for higher salary levels for the 3 positions. He said the Assembly Committee on Ways and Means approved transfer of 2 of the positions into unclassified service and removed the third, which was the Administrative Services Officer. He declared the Senate Committee on Finance closed the budget with the Governor’s recommendation.

Forestry. Referring to page 46 of Exhibit D, Mr. Miles indicated that when the Senate Committee on Finance was closing the State Department of Conservation and Natural Resources budget, he noted Forestry was the first account that had "something" funded from the pollution control account which had not been funded before. He stated that this was a position for the Division of Forestry to be located at Tahoe for the Tahoe Initiative. He indicated the budget was closed in conjunction with the joint subcommittee’s closing, which eliminated the transfer from pollution control funds and position on the add-back list. Mr. Miles stated that since that time the Senate Committee on Finance has processed S.B. 511 and approved the Tahoe Regional Planning Agency (TRPA) account with pollution control funds. Senator Jacobsen remarked the issue deals with dead and dying trees at Lake Tahoe.

Further, Mr. Miles indicated page 47 of Exhibit D shows a slight difference in the Letters of Intent wherein the Senate Committee on Finance wanted a Letter of Intent indicating to DMV that transfers from pollution control should be considered onetime transfers for this biennium.

State Parks. On page 48 of Exhibit D in module E-730 in enhancements, Mr. Miles said the Assembly Committee on Ways and Means’ closing of the Commission on Tourism budget transferred $193,000 the first year and $197,000 the second year into this budget account for maintenance projects within state parks.

Transportation Administration. Referring to page 49 of Exhibit D, Mr. Miles indicated the difference is in M-100, the Washington Office, where Budget Revision No. 91 was implemented and increased the transfer from the Nevada Department of Transportation (NDOT) to the Washington Office. He stated the Assembly Committee on Ways and Means eliminated the Washington Office.

Veteran’s Home Account. Mr. Miles indicated the only reason this item is on the Differences Closing Report is because in the Senate closing part of the motion was a Letter of Intent on the decision to come back to IFC.

Gaming Control Board. Mr. Miles indicated this item did not appear in the Differences Closing Report because the budget for the Gaming Control Board was just closed. The only difference is that when the Senate Committee on Finance closed this budget the committee added $20,000 annually for out-of-state travel for the commission and Gaming Control Board members whereas the Assembly Committee on Ways and Means did not.

There being no further business, the meeting was adjourned at 9:15 a.m.

RESPECTFULLY SUBMITTED:

Barbara Moss,

Committee Secretary

APPROVED BY:

Senator William J. Raggio, Chairman

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