Senate Bill No. 71–Committee on Finance

February 1, 1999

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Referred to Committee on Finance

 

SUMMARY—Provides for preparation of legislative proposal for budget for state

government. (BDR 17-1136)

FISCAL NOTE: Effect on Local Government: No.

Effect on the State or on Industrial Insurance: Yes.

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

 

AN ACT relating to the legislature; requiring the fiscal analysis division of the legislative counsel bureau to prepare a legislative proposal for the budget for the state government; requiring the chief of the budget division of the department of

administration to provide certain information to the fiscal analysis division of the legislative counsel bureau; repealing the provision that creates the budget subcommittee of the legislative commission; and providing other matters

properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

1-1 Section 1. Chapter 218 of NRS is hereby amended by adding thereto

1-2 the provisions set forth as sections 2 and 3 of this act.

1-3 Sec. 2. 1. The fiscal analysis division shall prepare the legislative

1-4 proposal for the budget for the state government for each biennium for

1-5 presentation to the legislature for its consideration not later than the

1-6 second day of each regular session of the legislature.

1-7 2. The legislative proposal for the budget must include:

1-8 (a) A complete financial plan for the next 2 fiscal years;

1-9 (b) All proposed expenditures for the administration, operation and

1-10 maintenance of the departments, institutions and agencies of the state

1-11 government, including, without limitation, those operating on money

1-12 designated for specific purposes by the constitution or otherwise;

1-13 (c) All interest and debt redemption charges during the next 2 fiscal

1-14 years;

2-1 (d) All expenditures for capital projects to be undertaken and executed

2-2 during the next 2 fiscal years; and

2-3 (e) The anticipated revenue of the state government and any other

2-4 additional means of financing the expenditures proposed for the next 2

2-5 fiscal years.

Sec. 3. The interim finance committee shall:

2-6 1. Advise the fiscal analysis division on matters pertaining to the

preparation of the legislative proposal for the budget for the state

2-7 government pursuant to section 2 of this act;

2-8 2. Review fiscal issues that may require consideration by the

legislature at the next regular session of the legislature; and

2-9 3. Carry out the duties set forth in this section before the

commencement of the next regular session of the legislature.

2-10 Sec. 4. NRS 218.610 is hereby amended to read as follows:

2-11 218.610 As used in NRS 218.610 to 218.735, inclusive, and sections 2

and 3 of this act, "agency of the state" includes all offices, departments,

2-12 boards, commissions or institutions of the state, and the state industrial

insurance system.

2-13 Sec. 5. NRS 218.686 is hereby amended to read as follows:

2-14 218.686 1. The fiscal analysis division consists of the senate fiscal

analyst, the assembly fiscal analyst and such additional staff as the

2-15 performance of their duties may require.

2. The fiscal analysis division shall:

2-16 (a) Thoroughly examine all agencies of the state with special regard to

2-17 their activities and the duplication of efforts between them.

(b) Recommend to the legislature any suggested changes looking toward

2-18 economy and the elimination of inefficiency in government.

(c) Ascertain facts and make recommendations to the legislature

2-19 concerning the budget of the state and the estimates of the expenditure

2-20 requirements of the agencies of the state.

(d) Prepare the legislative proposal for the budget for the state

2-21 government pursuant to section 2 of this act.

(e) Make projections of future public revenues for the use of the

2-22 legislature.

2-23 [(e)] (f) Analyze the history and probable future trend of the state’s

financial position [in order] so that a sound fiscal policy may be developed

2-24 and maintained for the State of Nevada.

[(f)] (g) Analyze appropriation bills, revenue bills, and bills having a

2-25 fiscal impact upon the operation of the government of the State of Nevada

2-26 or its political subdivisions.

[(g)] (h) Advise the legislature and the members and committees thereof

2-27 regarding matters of a fiscal nature.

2-28 [(h)] (i) Perform such other functions as may be assigned to the fiscal

2-29 analysis division by the legislature, the legislative commission or the

director of the legislative counsel bureau.

2-30 Sec. 6. NRS 353.205 is hereby amended to read as follows:

353.205 [1.] The proposed budget for the executive department of

2-31 the state government for each fiscal year must be set up in three parts:

2-32 [(a)] 1. Part 1 must consist of a budgetary message by the governor

[which] that outlines the financial policy of the executive department of the

2-33 state government for the next 2 fiscal years, describing in connection

therewith the important features of the financial plan. It must also embrace

2-34 a general summary of the proposed budget setting forth the aggregate

2-35 figures of the proposed budget in such a manner as to show the balanced

relations between the total proposed expenditures and the total anticipated

2-36 revenues, together with the other means of financing the proposed budget

for the next 2 fiscal years, contrasted with the corresponding figures for the

2-37 last completed fiscal year and fiscal year in progress. The general summary

2-38 of the proposed budget must be supported by explanatory schedules or

statements, classifying the expenditures contained therein by organizational

2-39 units, objects and funds, and the income by organizational units, sources

and funds.

2-40 [(b)] 2. Part 2 must embrace the detailed budgetary estimates both of

2-41 expenditures and revenues as provided in NRS 353.150 to 353.246,

inclusive. The information must be presented in a manner which sets forth

2-42 separately the cost of continuing each program at the same level of service

as the current year and the cost, by budgetary issue, of any

2-43 recommendations to enhance or reduce that level of service. Revenues must

2-44 be summarized by type, and expenditures must be summarized by category

of expense. Part 2 must include a mission statement and measurement

2-45 indicators for each program. It must also include statements of the bonded

indebtedness of the state government, showing the requirements for

2-46 redemption of debt, the debt authorized and unissued, and the condition of

2-47 the sinking funds, and any statements relative to the financial plan which

the governor may deem desirable, or which may be required by the

2-48 legislature.

[(c)] 3. Part 3 must include a recommendation to the legislature for the

2-49 drafting of a general appropriation bill authorizing, by departments,

2-50 institutions and agencies, and by funds, all expenditures of the executive

department of the state government for the next 2 fiscal years, and may

2-51 include recommendations to the legislature for the drafting of such other

bills as may be required to provide the income necessary to finance the proposed budget and to give 2-52 legal sanction to the financial plan if adopted

2-53 by the legislature.

2-54 [2. Except as otherwise provided in NRS 353.211, as soon as each part

of the proposed budget is prepared, a copy of the part must be transmitted

2-55 to the fiscal analysis division of the legislative counsel bureau for

2-56 confidential examination and retention.

3. Except for the information provided to the fiscal analysis division of

2-57 the legislative counsel bureau pursuant to NRS 353.211, parts 1 and 2 of

the proposed budget are confidential until the governor transmits the

2-58 proposed budget to the legislature pursuant to NRS 353.230, regardless of

2-59 whether those parts are in the possession of the executive or legislative

department of the state government. Part 3 of the proposed budget is

2-60 confidential until the bills which result from the proposed budget are

introduced in the legislature.]

2-61 Sec. 7. NRS 353.211 is hereby amended to read as follows:

2-62 353.211 1. On or before October 15 of each even-numbered year, the

chief shall provide to the fiscal analysis division of the legislative counsel

2-63 bureau:

(a) Computerized budget files containing the actual data regarding

2-64 revenues and expenditures for the previous year;

2-65 (b) The work programs for the current year; and

(c) Each agency’s requested budget for the next 2 fiscal years.

2-66 2. On or before December [31] 15 of each even-numbered year, the

chief shall provide to the fiscal analysis division [:] in printed form, in a

2-67 form available for access by computer and in any other form or on any

2-68 other medium requested by the fiscal analysis division:

(a) Each agency’s adjusted base budget by budgetary account for the

2-69 next 2 fiscal years [;] and any readily available, related information

requested by the fiscal analysis division; and

2-70 (b) An estimated range of the costs for:

2-71 (1) Continuing the operation of state government; and

(2) Providing elementary, secondary and higher public education,

2-72 at the current level of service.

3. The chief shall:

2-73 (a) Consult with the fiscal analysis division when preparing the

2-74 proposed budget of the executive department of the state government to

establish identical organizational coding schemes and coding schemes

2-75 for the computer to be used in the proposed budget of the executive

department of the state government and the legislative proposal for the

2-76 budget prepared pursuant to section 2 of this act.

2-77 (b) As soon as each part of the proposed budget of the executive

department of the state government is prepared, provide that part to the

2-78 fiscal analysis division.

2-79 (c) Provide to the fiscal analysis division, not later than 14 days before

2-80 the commencement of the regular session of the legislature, the final

version of the proposed budget of the executive department of the state

2-81 government that will be transmitted to the legislature by the governor

pursuant to NRS 353.230.

2-82 4. The chief shall provide each part of the proposed budget and the

2-83 final version of the proposed budget pursuant to subsection 3 in printed

form, in a form available for access by computer, and in any other form

2-84 or on any other medium requested by the fiscal analysis division. The

final version of the proposed budget must be available in a form that

2-85 allows automated comparison with the legislative proposal for the budget

2-86 prepared pursuant to section 2 of this act.

5. The fiscal analysis division shall not:

2-87 (a) Disclose the contents of parts 1 and 2 of the final version of the

proposed budget described in subsections 1 and 2 of NRS 353.205 until

2-88 the governor transmits the final version of the proposed budget to the

2-89 legislature pursuant to NRS 353.230.

(b) Disclose the contents of part 3 of the final version of the proposed

2-90 budget described in subsection 3 of NRS 353.205 until the bills that result

from the final version of the proposed budget are introduced in the

2-91 legislature.

2-92 6. The information provided to the fiscal analysis division pursuant to

subsections 1 and 2 is open for public inspection.

2-93 [4. As soon as practicable after receipt of the material provided

pursuant to subsections 1 and 2, the fiscal analysis division shall provide a

2-94 synopsis of the information to the members of the budget subcommittee of

2-95 the legislative commission. The synopsis must include the levels of

requested expenditures of all of the departments, institutions and agencies,

2-96 major budgetary issues, approximate available revenues, historical data and

any other information the fiscal analysts deem appropriate.]

2-97 Sec. 8. NRS 218.6824 is hereby repealed.

 

2-98 TEXT OF REPEALED SECTION

 

2-99 218.6824 Legislative commission: Budget subcommittee.

1. There is hereby created a budget subcommittee of the legislative

2-100 commission.

2-101 2. The chairman of the legislative commission shall appoint to the

subcommittee the persons designated by the speaker designate of the assembly to be members of the 2-102 assembly standing committee on ways and

2-103 means and the persons designated by the majority leader designate of the

2-104 senate to be members of the senate standing committee on finance for the

next ensuing session of the legislature.

2-105 3. The budget subcommittee shall conclude its activities before the

next regular legislative session is convened.

2-106 4. The budget subcommittee shall:

2-107 (a) Review the synopsis of the state budget prepared by the fiscal

analysis division of the legislative counsel bureau pursuant to NRS

2-108 353.211; and

(b) Consider other fiscal issues that may require consideration by the

2-109 legislature at the next ensuing session.

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