The joint meeting of the Senate Committee on Finance and the Assembly Committee on Ways and Means was called to order by William J. Raggio, at 4:40 p.m., on Thursday, May 20, 1999, in Room 1214 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 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

ASSEMBLY COMMITTEE MEMBERS PRESENT:

Mr. Morse Arberry Jr., Chairman

Ms. Sheila Leslie sitting as an alternate for Mrs. Jan Evans

Mr. Bob Beers

Mrs. Barbara Cegavske

Mrs. Vonne Chowning

Mrs. Marcia de Braga

Mr. Joseph E. Dini, Jr.

Ms. Chris Giunchigliani

Mr. David E. Goldwater

Mr. Lynn C. Hettrick

Mr. John W. Marvel

Mr. David Parks

Mr. Richard Perkins

ASSEMBLY COMMITTEE MEMBERS ABSENT:

Mr. Bob Price (Excused)

STAFF MEMBERS PRESENT:

Millard Clark, Committee Secretary

Senator Raggio stated this is the second meeting, "as required" of the Senate Committee on Finance and the Assembly Committee on Ways and Means for the purpose of discussing any remaining differences on budget closures.

ELECTED OFFICIALS

Dan Miles, Senate Fiscal Analyst, said the Senate Committee on Finance has closed this budget according to budget revision No. 91, which rearranged the transfers from the other agencies that support this office. Mr. Miles noted the Assembly Committee on Ways and Means had closed this budget by eliminating the Washington office. Mark Stevens, Assembly Fiscal Analyst, agreed the differences identified by Mr. Miles were the differences in this account.

Senator Raggio stated the Assembly has concurred and the two houses are in agreement.

Mr. Miles said that under enhancement E-850 the Senate Committee on Finance has added 2 additional positions, 1 for the Integrated Financial System (IFS) and 1 for the new accounts receivable responsibilities within the Office of the State Controller. Mr. Stevens stated that the Assembly Committee on Ways and Means closed this account as recommended by the Governor.

Mr. Miles said the difference between the Senate and the Assembly closing actions is that the Senate added $150,000 to each year of the biennium to get the allodial title program implemented. Mr. Stevens agreed that the $150,000 for the allodial title program was the only difference.

Senator Raggio noted there was a suggestion that the authority and funding for this program be approved with the understanding that a contractual agreement between the Office of the State Treasurer and the Department of Taxation may be utilized to better facilitate the program. Senator Rawson agreed and pointed out that the contractual agreement is not mandated but is allowed. He noted the $150,000 was for contractual services, not for positions.

Gaming Control Board – Budget Page GAMING-1 (Volume 2)

Budget Account 101-4061

Mr. Miles identified that the Senate Committee on Finance closed this budget with an additional $20,000 for out-of-state travel for members of the commission and the control board. Mr. Stevens agreed that the additional $20,000 was the only difference.

Commission on Economic Development – Budget Page TOUR/ECON-1 (Volume 2)

Budget Account 101-1526

Commission on Tourism – Budget Page TOUR/ECON-19 (Volume 2)

Budget Account 225-1522

Senator Raggio noted that there was now agreement on these accounts by virtue of the action taken on the Washington Office, Budget Account 101-1011.

DEPARTMENT OF HUMAN RESOURCES

HR, Children and Family Administration – Budget Page DCFS-1 (Volume 2)

Budget Account 101-3145

Mr. Miles identified that the Senate Committee on Finance added a Social Worker III position to the maintenance M-205 budget request because of Senate Bill (S.B.) 288, which is a foster care pilot program within Washoe County.

Senator Raggio noted that this is the program which provides seamless custody for the foster children.

Mr. Arberry stated the Assembly Committee on Ways and Means is in agreement with the Senate Committee on Finance but wants a sunset date included for the position and the pilot program of June 30, 2001.

HR, UNITY/SACWIS – Budget Page DCFS-12 (Volume 2)

Budget Account 101-3143

Mr. Miles said the difference between the Senate Committee on Finance and the Assembly Committee on Ways and Means is in the enhancements E-720 decision unit. Mr. Miles said the Senate Committee on Finance approved a computer for the Social Worker III position which was approved in the Children and Family Administration budget, account 101-3145. Mr. Stevens agreed the only difference is the personal computer for the position approved earlier.

DEPARTMENT OF EMPLOYMENT, TRAINING, & REHABILITATION

(Volume 2 of The Executive Budget)

DETR, Director’s Office – Page DETR-1, Budget Account 101-3270

DETR, Administrative Services – Page DETR-6, Budget Account 101-3272

DETR, Rehabilitation Administration – Page DETR-64, Budget Account 101-3268

Mr. Miles identified that the only differences between the Senate Committee on Finance and the Assembly Committee on Ways and Means in these budgets were positions that were related to Assembly Bill (A.B.) 181. Mr. Miles noted that A.B. 181 transfers the Bureau of Alcohol and Drug Abuse account to the Department of Human Resources.

Mr. Miles said the Senate Committee on Finance passed A.B. 181 out of committee with a recommendation of "Do Pass" this morning. He noted that the Senate Committee on Finance included a provision that a Letter of Intent be sent to the new agency in the Department of Human Resources to protect the existing resources for the current program. Mr. Miles said the Letter of Intent would ask that existing resources not be shifted away from current programs in development of the new programs with the funds identified through the contract with Maximus.

Senator Raggio said the Senate Committee on Finance would drop the Letter of Intent request.

DEPARTMENT OF MOTOR VEHICLES & PUBLIC SAFETY

Volume 3 of The Executive Budget.

DMV, Compliance Enforcement – Page DMV-1, 201-4740

DMV, Field Services – Page DMV-7, 201-4735

DMV, Central Services – Page DMV-17, 201-4741

DMV, Management Services – Page DMV-24, 201-4742

DMV, Drivers License – Page DMV-29, 201-4716

DMV, Motor Carrier – Page DMV-41, 201-4717

DMV, Registration – Page DMV-47, 201-4718

DMV, Verification of Insurance – Page DMV-69, 201-4731

DMV, Motor Vehicle Pollution Control – Page DMV-73, 201-4722

DMV, Project Genesis – Page DMV-80, 201-4739

DMV, Records Search – Page DMV-84, 201-4711

Senator Raggio said the difference between the Senate Committee on Finance and the Assembly Committee on Ways and Means for all of the Department of Motor Vehicles and Public Safety budgets listed above is the reorganization of the department, which was not approved by the Assembly.

Ms. Giunchigliani said that after working with both the Governor’s staff and the Legislative Counsel Bureau’s Fiscal Analysis Division staff, the Assembly would agree to the reorganization if the Governor adds a recommendation that the Interim Finance Committee (IFC) review and approve the reorganization within a 6-month period.

Senator Raggio shared that the Governor is aware of the concerns and has indicated he wants to have the reorganization work as efficiently and as effectively as does the Legislature. The senator said Governor Guinn would be amenable to the opportunity to fund the reorganization as indicated and that the Interim Finance Committee (IFC) review and approve the reorganization within a 6-month period.

Senator Mathews asked that the motion be clarified. Senator Raggio explained that the motion is to approve the funding in the budget as requested by the Governor. He noted the opportunity is there for the department to come before the IFC within a 6-month period to present the plan in full. He said there needs to be some clarification of the proposal and the plan would require the final approval of the IFC, which is acceptable to the Governor. Senator Raggio said this gives both the Governor and the Legislature an opportunity to see the plan presented and phased in, and provides some comfort with the final reorganization plan. He said the Governor indicated this was a concept that was fairly new to him when the department came in with the budget proposal.

Senator Mathews asked whether the people who would be heading these departments in the reorganization would be interim or acting personnel and whether this was part of the motion. Ms. Giunchigliani replied, "The department heads would be acting for the interim but it is still the Governor’s decision on how he handles the reorganization."

DMV, Drivers License – Budget Page DMV-29 (Volume 3)

Budget Account 201-4716

Mr. Miles said now that the reorganization issue is resolved the remaining difference is in enhancement E-125, the new digitized photo drivers license. Mr. Miles identified that the Senate Committee on Finance used the Highway Fund appropriation to fund this expenditure. Mr. Stevens said the Assembly Committee on Ways and Means included the additional cost for the digitized photos with the drivers license fee.

DMV, Justice Assistance Act – Budget Page DMV-105 (Volume 3)

Budget Account 101-4708

Mr. Miles said the difference between the Senate Committee on Finance and the Assembly Committee on Ways and Means is that the Senate approved a recommendation from the Budget Division to include $21,600 of general funds for each year in the biennium for a portion of the match required for this federal program.

Senator Raggio noted this reflects that a portion of this match requirement will be state funding.

Mr. Stevens said the Assembly Committee on Ways and Means closed this account having the grantee or recipients of the funds provide 100 percent of the matching funds required.

DMV, Dignitary Protection – Budget Page DMV-137 (Volume 3)

Budget Account 101-4738

Mr. Miles identified that the difference between the Senate Committee on Finance and the Assembly Committee on Ways and Means closing actions is in enhancement E-125 where the Senate has added a request from the administration for additional out-of-state travel to coincide with the Governor’s travel plans, some security camera replacements, replacement of computers, and training in dignitary protection.

DMV, Division of Investigations – Budget Page DMV-159 (Volume 3)

Budget Account 101-3743

Mr. Miles stated there was no difference in the way this budget was closed but the Assembly Committee on Ways and Means requested a Letter of Intent advising the division to return to IFC for funding if it wanted to continue the Vehicle Investigations Project for Enforcement and Recovery (VIPER) program. Mr. Miles said the Senate Committee on Finance included the VIPER program on their priority add-back list.

Senator Raggio indicated that because the VIPER program is on the Senate Committee on Finance’s add-back list the Senate can agree with the Assembly Committee on Ways and Means’ request for a Letter of Intent.

*****

DMV, Hazardous Materials Training Center – Budget Page DMV-232 (Volume 3)

Budget Account 101-3834

Mr. Stevens said the Assembly Committee on Ways and Means reduced the amount of Beatty Dump Site fees to $20,000 and funded rural fire-fighting training with those dollars. Additionally, Mr. Stevens said, by eliminating the Beatty Dump Site fees from supporting this budget the funds were replaced with general funds providing the Beatty Dump Site with a 3-month reserve for cash flow purposes. Mr. Stevens noted this will require $177,000 of general funds in the first year of the biennium and $64,000 of general funds in the second year of the biennium. He identified that $20,000 of each year in the biennium is provided for fire-fighter training in the rural areas. Mr. Stevens pointed out that Beatty Dump Site fees received in excess of $20,000 will revert to the General Fund.

*****

DMV, Emergency Response Commission – Budget Page DMV-238 (Volume 3)

Budget Account 101-4729

Mr. Miles identified that the only difference is in the funding in the base budget for the Emergency Response Commission. Mr. Miles said the Senate has processed S.B. 167, which takes the fees that currently flow to this budget account and puts them into the Highway Fund, and has replaced the fees with a Highway Fund appropriation.

Colorado River Commission – Budget Page CRC-1 (Volume 3)

Budget Account 296-4490

Mr. Miles said the Senate Committee on Finance has approved the Governor’s recommendation in E-805 to move 3 positions from the state classified service into the unclassified service within the agency.

DEPARTMENT OF TRANSPORTATION

Transportation Administration – Budget Page NDOT-1 (Volume 3)

Budget Account 201-4660

Senator Raggio stated the Senate Committee on Finance and the Assembly Committee on Ways and Means are now in concurrence on this budget.

MILITARY

MIL, Veterans Home Account – Budget Page MILITARY-16 (Volume 3)

Budget Account 101-2561

Mr. Miles said this budget was closed the same way "budgetarily" by both committees. He noted that the Senate Committee on Finance included a Letter of Intent stating that a decision to privatize has not been supported by the Senate. He further noted the Senate Committee on Finance requested the agency to appear before the IFC to present additional information before a final decision is made.

Senator Raggio noted that the Assembly supported the privatization of the Veterans Home.

*****

Senator Raggio said that during the course of closing budgets there were a number of items which by separate and joint meetings of the Senate Committee on Finance and the Assembly Committee on Ways and Means were placed on a "high priority spending list." The senator noted that a list of the items placed on this list has been compiled. Exhibit C is a one-page handout titled "Priority Spending List."

DEPARTMENT OF HUMAN RESOURCES

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

Budget Account 101-3151

Senator Raggio said that both jointly and individually the Senate Committee on Finance and the Assembly Committee on Ways and Means have placed an additional amount of $250,000 for each year of the biennium for this account to restore the Volunteer Programs on the priority spending list. This is item No. 1 of Exhibit C.

*****

Senator Raggio said that item No. 2 of Exhibit C was to restore to this budget $50,000 each year of the biennium for the rural centers.

*****

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

Budget Account 101-3146

Senator Raggio noted that item No. 3 of Exhibit C was to restore to this budget $625,000 each year of the biennium for the Community Home-Based Initiatives Program, which will accommodate 82 additional clients at $7,600 per client.

*****

HR, Health Aid to Counties – Budget Page HEALTH-12 (Volume 2)

Budget Account 101-3209

Senator Raggio said that item No. 4 of Exhibit C was to add to this budget an additional $448,291 in the first year of the biennium and $465,291 in the second year.

*****

HR, WIC Food Supplement – Budget Page HEALTH-58 (Volume 2)

Budget Account 101-3214

Senator Raggio mentioned that item No. 5 of Exhibit C had been suggested to be added to the priority spending list but the total cost is not currently known. He said this item would be addressed later and no action will be taken at this time.

STATE DEPARTMENT OF EDUCATION

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

Budget Account 101-2678

Senator Raggio commented that item No. 6 of Exhibit C has been resolved by previous budget action.

DEPARTMENT OF MOTOR VEHICLES & PUBLIC SAFETY

DMV, Division of Investigations – Budget Page DMV-159 (Volume 3)

Budget Account 101-3743

Senator Raggio identified that item No. 7 of Exhibit C was the Vehicle Investigations Project for Enforcement and Recovery (VIPER) program. He said this item would restore the auto theft program and add $296,122 to the budget for the first year of the biennium and $269,665 for the second year. Ms. Giunchigliani commented the Assembly recommends placing these funds into a reserve account pending the reorganization of the department. She said the department could go to the IFC for the allocation after the reorganization is completed for the funding. Ms. Giunchigliani suggested these instructions be included in a Letter of Intent to the department.

Senator Neal asked whether this action would remove the VIPER program from the priority list or change its place on the list. Senator Raggio replied the priority list does not reflect the order of priority, it is a list containing all of the priorities.

Senator Raggio stated the motion was the funding for the VIPER program be placed in a reserve account. He said that when the departmental reorganization is completed the department can return to the IFC and request approval for the VIPER funding.

*****

DEPARTMENT OF EMPLOYMENT, TRAINING & REHABILITATION

DETR, Vocational Rehabilitation – Budget Page DETR-73 (Volume 2)

Budget Account 101-3265

Senator Raggio said item No. 8 of Exhibit C provides a state match for client service federal funding. He noted this item would add to the budget $158,000 in the first year of the biennium and $220,000 in the second year.

*****

STATE DEPARTMENT OF EDUCATION

Education State Programs – Budget Page K12ED-1 (Volume 1)

Budget Account 101-2673

Senator Raggio explained that item No. 9 of Exhibit C has already been addressed by a previous budget closing action by the Joint Subcommittee on Human Resources/K-12 and is pending approval by the full committees.

Supreme Court – Budget Page COURTS-1 (Volume 1)

Budget Account 101-1494

Senator Raggio said item No. 10 of Exhibit C is a request by the Nevada Supreme Court for additional funding to cover a number of items including operating and training. He said the Supreme Court requested an additional $348,194 for the first year of the biennium and $423,596 for the second year in this budget.

Senator Neal asked why the motion was made to reduce the amount requested by the Supreme Court. Mr. Dini replied that the Supreme Court was given an increase in funding of about 27 percent for the biennium. He commented the Assembly was attempting to be diligent in approving any additional funding for the Supreme Court.

STATE DEPARTMENT OF CONSERVATION & NATURAL RESOURCES

Forestry – Budget Page CNR-52 (Volume 3)

Budget Account 101-4195

Senator Raggio stated that item No. 11 of Exhibit C had been approved during previous budget closings.

DEPARTMENT OF HUMAN RESOURCES

HR, HCF&P, Nevada Medicaid, Title XIX – Budget Page HCF&P-1 (Volume 2)

Budget Account 101-3243

Senator Raggio clarified that item No. 12 of Exhibit C was a proposal to include increases to Medicaid providers on the priority list. He indicated it was agreed this would be the top priority if funding became available. Mr. Stevens pointed out this request was to cover consumer price index (CPI) increases during the second year of the biennium. He noted that the increases were to cover items such as home health, personal care aids, an intermediate care facility for the mentally retarded, and nursing home facilities.

Senator Raggio pointed out that the $2,963,617 identified is an additional amount for the second year of the biennium which would cover these CPI projected increases in expenditures.

*****

Senator Rawson asked about the independent-choice waiver. He commented it seems there is a concern that the Legislature might be forced to expand the waiver and that it may be open-ended. He wondered whether there was appropriate language that might be added to "a small number" which would, upon the determination of the court that the program had to be opened up, make null and void the appropriation and stop the program. Senator Raggio said that the issue was "the pendency of several court matters that indicate that if you do so it opens it up for full coverage." He said this was the issue that the Legislature was unable to resolve and was the reason the Legislature went along with Senator Rawson’s proposal to extend the present waiver. Senator Rawson asked whether the Legislature might consider adding language similar to what he had proposed that would be valid.

Mr. Goldwater said, "It seems to me this is a moot question if the action the Legislature took as joint and individual committees in accepting the report was to expand the current disability waiver." Senator Raggio replied, "We have approved that. I think the question is, Is there anything we can look into to determine whether or not that concern could be resolved otherwise?" The senator said he would ask staff to look into the matter.

Ms. Giunchigliani said:

Senator Raggio said, "I think we are all in agreement with that so we will ask staff to get back to us on that."

Senator Raggio adjourned the meeting at 5:30 p.m.

RESPECTFULLY SUBMITTED:

Millard Clark

Committee Secretary

APPROVED BY:

Senator William J. Raggio, Chairman

DATE:

Assemblyman Morse Arberry Jr., Chairman

DATE: