MINUTES OF THE meeting

of the

ASSEMBLY Committee on Ways and Means

 

Seventy-First Session

May 22, 2001

 

 

The Committee on Ways and Meanswas called to order at 8:25 a.m. on Tuesday, May 22, 2001.  Assemblyman Morse Arberry Jr., Chairman, presided in Room 3137 of the Legislative Building, Carson City, Nevada.  Exhibit A is the Agenda.  Exhibit B is the Guest List.  All exhibits are available and on file at the Research Library of the Legislative Counsel Bureau.

 

 

COMMITTEE MEMBERS PRESENT:

 

Mr.                     Morse Arberry Jr., Chairman

Ms.                     Chris Giunchigliani, Vice Chairwoman

Mr.                     Bob Beers

Mrs.                     Barbara Cegavske

Mrs.                     Vonne Chowning

Mrs.                     Marcia de Braga

Mr.                     Joseph Dini, Jr.

Mr.                     David Goldwater

Mr.                     Lynn Hettrick

Ms.                     Sheila Leslie

Mr.                     John Marvel

Mr.                     David Parks

Mr.                     Richard D. Perkins

Ms.                     Sandra Tiffany

 

COMMITTEE MEMBERS ABSENT:

 

None.

 

STAFF MEMBERS PRESENT:

 

Mark Stevens, Assembly Fiscal Analyst

Steve Abba, Principal Deputy Fiscal Analyst

Carol Thomsen, Committee Secretary

Andrea Carothers, Committee Secretary

 

 

Chairman Arberry announced he would adjourn the meeting of May 21, 2001, which had been recessed, and also disclosed that he would not benefit from passage of A.B. 324.  He then called the meeting of May 22, 2001, to order and announced the committee would commence with review of budget closing differences.

 

OFFICE OF THE GOVERNOR – BUDGET PAGE ELECTED-1

 

Mark Stevens, Assembly Fiscal Analyst, Legislative Counsel Bureau (LCB), stated the Assembly had closed the budget including approval of module M‑200, which provided five new positions for the Governor’s Office, and with elimination of module M‑201, which recommended two new positions for the Governor’s Office to facilitate creation of the Family Resources Program.  The Assembly closure also eliminated the Office of Science, Engineering and Technology.  Mr. Stevens explained that the Senate closure reduced funding for that office by $50,000. 

 

Ms. Giunchigliani recommended that the committee stand firm with the Assembly closure.  Chairman Arberry inquired whether members had any concerns regarding the recommendation, and hearing none, announced that would be the action of the committee.

 

MANSION MAINTENANCE – BUDGET PAGE ELECTED-5

 

Mr. Stevens stated the Assembly closed the budget as recommended by the Governor, and after closure, Senator Jacobsen recommended an additional $1,400 be added to the Mansion Maintenance account in order to accomplish necessary refurbishment.  The Senate closure included the recommended $1,400 allocation.

 

MR. MARVEL MOVED TO CONCUR WITH THE SENATE CLOSURE OF THE MANSION MAINTENANCE BUDGET, INCLUDING THE ADDITIONAL $1,400 ALLOCATION.

 

MR. HETTRICK SECONDED THE MOTION.

 

THE MOTION CARRIED.  (Mr. Beers, Mrs. Cegavske, Mr. Dini, Mr. Goldwater, Mr. Perkins, and Ms. Tiffany were not present for the vote.)

 

BUDGET CLOSED.

 

********

 

OFFICE OF CONSUMER HEALTH ASSISTANCE – BUDGET PAGE ELECTED-13

 

Mr. Stevens informed the committee the issue was whether to transfer the Office of Hospital Patients within the Department of Business and Industry to the Office of Consumer Health Assistance within the Governor’s Office, as was recommended in The Executive Budget.  The Senate closed the budget as recommended by the Governor, however, the Assembly did not concur with the transfer.  Mr. Stevens explained there was some confusion regarding the issue, as the subcommittee had agreed to the transfer contingent upon legislation being processed that would provide for that transfer, however, the bill ultimately died.  Mr. Stevens stated, in essence, it was staff’s understanding that since the bill died, the transfer was not approved at the subcommittee closing.  Also, Mr. Stevens noted that the full committee had not approved the transfer of the Office of Hospital Patients to the Office of Consumer Health Assistance. 

 

Mrs. Chowning stated she was not in favor of the transfer, and would recommend that the Assembly closure stand, which would retain the Office of Hospital Patients as a separate office, rather than transferring it to the Office of Consumer Health Assistance.  Chairman Arberry inquired whether members had any concerns regarding that recommendation, and hearing none, announced that would be the action of the committee.

 

 

 

 

CONTROLLER’S OFFICE – BUDGET PAGE ELECTED-76

 

The major issue in the Controller’s Office budget closing was the new Management Assistant I position that was not included in the initial Governor’s recommendation within The Executive Budget, but was submitted as a subsequent recommendation by the Governor as an addition to the account.  Mr. Stevens indicated the Assembly did not approve that position, however, the Senate closure did include approval of the position.

 

Chairman Arberry inquired whether members had any concerns regarding the recommendation to hold firm with the Assembly closure, and hearing none, announced that would be the action of the committee.

 

SECRETARY OF STATE – BUDGET PAGE ELECTED-81

 

Mr. Stevens stated a total of 18 new positions were recommended in The Executive Budget and the Senate closure approved those positions, along with 2 additional requested positions, for a total of 20; the Senate closure also did not approve $140,000 in software maintenance charges in FY2002.  The Assembly closure approved 10 of the 20 requested positions, funded with a combination of General Fund and Expedite Fund dollars.  The Assembly also provided $140,000 in the first year, and $180,000 in the second year of the biennium for software maintenance contracts, which Mr. Stevens pointed out represented the current price negotiated between the vendor and the agency.

 

Ms. Giunchigliani asked for clarification regarding the software funding.  Mr. Stevens indicated the software costs were contained in module M-200, Information Services, and the Assembly closure reduced the allocation by $53,440 in the first year, and $13,258 in the second year of the biennium, which constituted the current negotiated software costs.  The Senate closure was minus $180,470 in the first year, and minus $11,470 in the second year of the biennium.  Mr. Stevens explained that the Assembly closure did cut funding, however, it would amount to a less severe cut than the Senate closure.  The positions approved by the Assembly consisted of three from General Fund dollars, and seven from Expedite funding.  The Senate approved a total of 20 positions, the 18 recommended in The Executive Budget, along with 2 positions subsequently requested by the Secretary of State for the Elections Division. 

 

Ms. Giunchigliani recommended the committee stand firm with the original Assembly closure.  Chairman Arberry inquired whether members had any concerns regarding the recommendation, and hearing none, announced that would be the action of the committee.  Ms. Giunchigliani noted that action would also include the information services costs. 

 

STATE TREASURER – BUDGET PAGE ELECTED-88

 

The major differences in budget closures resulted in module E-720, and Mr. Stevens pointed out that the Assembly closure did not approve a new server, as recommended in The Executive Budget.  Mr. Stevens noted Mr. Beers had reviewed that particular issue, and the server in question for replacement had actually been replaced during the last year.  It was Mr. Beers’ opinion that the agency could utilize the server during the upcoming biennium, with replacement approved for the next budget cycle.  Mr. Stevens indicated that was the reason the Assembly did not approve the server.  The Senate closure did include approval of the server at a slightly reduced price.

 

Ms. Giunchigliani recommended that the committee stand firm on the Assembly closure of the State Treasurer’s budget.  Chairman Arberry inquired whether members had any concerns regarding the recommendation, and hearing none, announced that would be the action of the committee.

 

Mr. Stevens recapped the budget closure differences, and Mr. Beers suggested that the committee consider a “happy medium” regarding the server, perhaps funding the purchase of a new server during the second year of the biennium.  According to Mr. Beers, that had been his original suggestion; he explained that the agency had acquired a server, however, it was an older model from unclaimed property.  Mr. Stevens noted that should the committee take such action, both the Assembly and Senate closures would require change, in order to accommodate the revised price for replacement of the server during the second year of the biennium. 

 

Chairman Arberry reiterated that the committee would hold firm with its original budget closure at the present time.

 

PROFICIENCY TESTING – BUDGET PAGE K12ED-32

 

Mr. Stevens stated the issue was within module M-202, and explained that $500,000 was added by the Assembly closure for development and implementation of alternative assessments in lieu of the high school proficiency examination for pupils with disabilities, or whose primary language was not English; that amount was eliminated from the Senate closure.

 

Ms. Giunchigliani requested that the committee hold further action on the Proficiency Testing budget pending the outcome of proposed legislation.  Ms. Giunchigliani stated she had spoken with Senator William Raggio, Chairman of the Senate Finance Committee, who had agreed to further discussion regarding the issue. 

 

W.I.C.H.E. LOAN & STIPEND – WICHE-1

 

According to Mr. Stevens, there were budget closure differences within the Western Interstate Commission for Higher Education (W.I.C.H.E.) Loan and Stipend account.  One of the major issues was whether the reserve for the current fiscal year should be reverted for balanced-forward.  The Assembly recommended reversion of the reserve, and also recommended that a General Fund appropriation be provided in whatever amount necessary to fund the General Fund portion of the W.I.C.H.E. operation during each year of the upcoming biennium.  Mr. Stevens stated the Assembly closure would reduce the General Fund appropriation the first year of the biennium because of the balance-forward.  The Assembly also deleted the proposed physical therapy professional slots, while maintaining the funding for the existing slots.  That action was based upon the fact that the University of Nevada, Las Vegas (UNLV), now offered a physical therapy school.  Mr. Stevens noted that with the savings, ten new nursing slots would be provided in each year of the biennium, with a total cost of approximately $50,000 in the first year, and $100,000 in the second year of the biennium. 

 

The Assembly closure did not provide a reserve in the second year of the biennium, and Mr. Stevens pointed out that a reserve was not recommended within the budget account in The Executive Budget, but had been requested by the agency.  According to Mr. Stevens, agencies funded via the General Fund normally did not have reserves that were balanced-forward.  Mr. Stevens stated the Assembly had requested that a Letter of Intent be sent to W.I.C.H.E. that required the agency to first utilize all other funding sources in payment of student loans and stipends, and only utilize General Fund dollars for the balance, with any remaining General Fund dollars being reverted. 

 

Mr. Stevens stated the Senate closure would balance-forward the funds into the first year of the biennium and utilize those dollars to provide for a number of new slots for nursing, teaching, and mental health, for a total of 15 slots in each year of the biennium.  The Senate did not approve the deletion of the new physical therapy slots, and approved a reserve fund of $50,000 in the second year of the biennium. 

 

Chairman Arberry suggested that the Assembly stand firm in its closure of the W.I.C.H.E. Loan and Stipend account, and noted that staff from W.I.C.H.E. should identify the proposed slots, et cetera.  

 

Mr. Marvel inquired whether the Senate removed the General Fund dollars.  Mr. Stevens stated the Senate closure would balance-forward the reserve, and would utilize that funding to add a total of 15 additional slots in each year of the biennium in nursing, mental health, and teaching.  Ms. Giunchigliani stated she would concur with Chairman Arberry.  Mrs. Chowning noted that the Assembly Committee on Education recently reviewed legislation that would require a $50 application fee, and would change medically underserved areas.  There had been no representation from W.I.C.H.E. at that hearing, and Mrs. Chowning explained that the bill ultimately did not pass; she also felt that W.I.C.H.E. staff should identify and explain the requested slots. 

 

BUDGET AND PLANNING – BUDGET PAGE ADMIN-1

 

Mr. Stevens noted the Assembly closure did not approve the public service intern that was recommended in The Executive Budget and was approved in the Senate closure.  That issue was the only budget closing difference.  Chairman Arberry indicated the committee would hold firm with the Assembly closure.

 

NEVADA JUNIOR LIVESTOCK SHOW BOARD – BUDGET PAGE AGRI-084 

HIGH SCHOOL RODEO ASSOCIATION – BUDGET PAGE AGRI-87

 

Mr. Stevens stated the budget closing differences were the same for the Nevada Junior Livestock Show Board and the High School Rodeo Association budgets.  The Assembly closure eliminated the Department of Information Technology (DoIT) charges for maintenance of Web sites; both entities had single page Web sites, which were not complicated.  Mr. Stevens noted that the DoIT charges represented, in the second year of the biennium, 7.8 percent of the Nevada Junior Livestock Show Board budget and 14.4 percent of the High School Rodeo Association budget.  The Assembly felt those charges were excessive and removed them from the budget, while the Senate closure was as recommended by the Governor.

 

Mrs. de Braga explained that she had recommended elimination of the DoIT expenditures, because she felt the Web site costs were excessive, since there were other accessible Web sites available.  While it represented a small amount of money, Mrs. de Braga advised that the DoIT expenditures had been added to the two budget accounts without being requested by the entities. 

 

Chairman Arberry announced the committee would hold firm on its budget closures for the Nevada Junior Livestock Show Board and the High School Rodeo Association.

 

NEVADA MAGAZINE – BUDGET PAGE CONDEV&TOUR-3

 

Mr. Stevens reported that decision unit E-175 provided additional out-of-state and in-state travel over and above the actual amount utilized in the account.  The Assembly closure reduced those amounts and the Senate closure was as recommended by the Governor.  Mr. Stevens pointed out that the agency had spent no funds over the current biennium, even though it had requested $4,000 in out-of-state travel funding; the Assembly closure would provide $1,200 for the upcoming biennium.  The actual amount of $2,948 spent for in-state travel over the current biennium was the amount approved by the Assembly closure, and Mr. Stevens noted the Governor’s recommendation, as closed by the Senate, was $5,091 for in-state travel. 

 

Chairman Arberry indicated the committee would hold firm with the Assembly closure of the Nevada Magazine budget.

 

HR-DIR, COMMUNITY BASED SERVICES – BUDGET PAGE HRADMIN-40

 

Mr. Stevens explained the difference in budget closures revolved around the issue of personal care attendants.  Ms. Giunchigliani noted that at the time the subcommittee closed the budget, it did not appear there would be sufficient funding to approve an increase for personal care attendants, and the issue was placed on the priority list for additional funding.  Ms. Giunchigliani recommended that the Assembly close the budget in concurrence with the Senate closure regarding the Medicaid increase for personal care attendants; hearing no objection to that recommendation, Chairman Arberry announced that would be the action taken by the committee.

 

HIGH DESERT STATE PRISON – BUDGET PAGE PRISONS-73

 

Mr. Stevens explained the only difference in closures was the approval by the Senate of a maintenance repair specialist position, which would supervise inmate repair crews, and the Assembly closure did not approve that position.  The Nevada Department of Prisons (NDOP) had testified at the subcommittee hearing that the position would actually be utilized as a locksmith, however, it was noted that the NDOP was authorized a locksmith position by the 1999 legislature, which was ultimately reclassified to the position of facility supervisor.  Mr. Stevens indicated that 14 maintenance positions were currently authorized for High Desert State Prison.

 

Chairman Arberry stated the committee would hold firm with the Assembly closure for the High Desert State Prison budget.

 

DEP WASTE MGMT AND FEDERAL FACILITIES – BUDGET PAGE CNR-027

 

According to Mr. Stevens, the difference in the Waste Management and Federal Facilities budget within the Division of Environmental Protection, was whether to approve the requested special use categories, which were proposed to simplify program administration.  That would cause categories 02, 03, 04, 05, 26, and 30 to be combined into 13 new special use categories.  That proposal was brought forth because of the number of discrete programs and revenue sources within the budget account.  Mr. Stevens noted the Assembly closure did not approve that request, however, the request was approved in the Senate closure.  There were some inconsistencies because within the Water Program budgets in the Division of Environmental Protection, both Assembly and Senate closures had allowed the use of special use categories. 

 

Mr. Dini suggested that the committee close the budget in accordance with the Senate closure, and hearing no objections, Chairman Arberry announced that would be the action of the committee.

 

With no further business to come before the committee, Chairman Arberry adjourned the hearing at 8:51 a.m.

 

RESPECTFULLY SUBMITTED:

 

 

 

Carol Thomsen

Committee Secretary

 

APPROVED BY:

 

 

 

 

                       

Assemblyman Morse Arberry Jr., Chairman

 

 

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