MINUTES OF THE meeting
of the
ASSEMBLY Committee on Ways and Means
Seventy-First Session
May 30, 2001
The Committee on Ways and Meanswas called to order at 8:00 a.m. on Wednesday, May 30, 2001. Chairman Morse Arberry Jr. 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, Fiscal Analyst
Steve Abba, Principal Deputy Fiscal Analyst
Linda Smith, Committee Secretary
Carol Thomsen, Committee Secretary
Assembly Bill 591: Makes appropriation to State Public Works Board for needs assessment and feasibility study relating to curriculum programming and potential building construction at Fallon campus of Western Nevada Community College. (BDR S-1468)
Marcia de Braga, Assembly District 35, said A.B. 591 made an appropriation of $200,000 to the Western Nevada Community College (WNCC). The funding would be used to conduct needs assessment and curriculum planning related to the Fallon campus of the WNCC. The current location did not allow for expansion of the college and assessment and planning was required to determine the feasibility of a possible new site. The student population of the Fallon campus was primarily made up of returning students who attended night classes and the college wanted to change its focus to attract more full-time students. A portion of the requested funding would be used to conduct a feasibility study on the change in focus. Mrs. de Braga stated the outcome would be increased enrollment and better programs.
Dr. Carol Lucey, President, Western Nevada Community College, Carson City, Nevada, stated all four of the Nevada community colleges had rural areas as well as areas of concentrated population. WNCC had an 18,000 square mile rural corridor that stretched from Lovelock in northern Nevada to Hawthorne in southern Nevada. The Fallon campus was the anchor for the rural areas. The current curriculum needed to be reviewed and the issue of the current Fallon campus being “landlocked” needed to be addressed. The offerings of the Fallon campus were essential to a very large part of the rural service area. Dr. Lucey asked the committee to seriously consider A.B. 591.
Bus Sharmann, Dean of Fallon Campus and Extended Programs, WNCC, said a copy of the Lahontan Valley News had been distributed to the committee (Exhibit C) and he referred to the article on the front page concerning the hearing on A.B. 591. Dean Sharmann stated faculty members, current students, past students, representatives from the Fallon Naval Air Station, and Shirley Walker, from the Churchill Economic Authority, were present to support A.B. 591.
Former Senator Virgil Getto indicated his strong support of A.B. 591. Mr. Getto confirmed that the campus in Fallon was landlocked and planning was needed to resolve the problem. There was tremendous support for A.B. 591 in the community. Mr. Getto said many years ago he had sponsored a bill that created the community college in Fallon. The county had provided the land currently occupied by the Fallon campus. Mr. Getto asked the committee to look upon A.B. 591 favorably. Chairman Arberry asked Mr. Getto to explain how the campus was landlocked. Mr. Getto explained that the current college location was surrounded by privately owned land. A college advisory committee had been trying to negotiate with some of the owners to purchase additional land with no success. There was room at the current location for one additional building. Chairman Arberry asked how much land was needed and Dean Sharmann clarified that A.B. 591 was not intended to provide funding to purchase property. A portion of the funding included in the bill would be used to determine if purchasing surrounding property was feasible or if another location should be found.
In response to a question posed by Mr. Marvel, Dean Sharmann said the campus full-time equivalent (FTE) enrollment fluctuated between 380 and 440. The campus served students from Lovelock, Yerington, Hawthorne, Fernley, and Silver Springs.
Chairman Arberry said funding was limited this session and asked Dr. Lucey if there was a “fallback” amount for the project if additional funding became available. Dr. Lucey emphasized that the college would be grateful for any funding provided and stated a needs assessment was the most critical area. Dr. Lucey agreed to provide Chairman Arberry with a revised dollar amount.
Mr. Marvel asked if the proposed bill had been presented to the Board of Regents. Dr. Lucey said the Board of Regents had heard the original construction proposal for the one remaining building to be constructed on the current site. That proposal was a $6 million project and was ranked very high by the board.
Mrs. de Braga explained that the Fallon Community Center occupied the land where the community college was currently located. The center also needed to be expanded. If a new site could be found for the college, the center would be able to expand. Mrs. de Braga said it was her understanding that $150,000 was the minimum fallback amount and Dr. Lucey agreed. Dr. Lucey said some of the programs being considered were economic development programs for rural areas, such as agricultural technology as well as technologies that would allow people to telecommute – a serious needs assessment was required.
James T. Richardson, Nevada Faculty Alliance, urged support for A.B. 591 and said the faculty at the Fallon campus was very excited about the possibility of expanding the campus and making the college user-friendlier for the community. Mr. Richardson reiterated that there was grave concern with the problem of the college being landlocked.
Senate Bill 139: Makes various changes to financial administration of courts. (BDR 14-515)
Karen Kavanau, Court Administrator and Director of the Administrative Office of the Courts, stated S.B. 139 concerned administrative assessments collected in the trial courts for court improvements pursuant to NRS 176.059. The Supreme Court and the Administrative Office of the Courts were supposed to receive 51 percent of the assessments collected by the limited jurisdiction courts. Ms. Kavanau asked the committee to refer to the highlighted bottom line of the handout (Exhibit D) and said since FY1995 the office had not received 51 percent. The money was extremely important for technology, judicial education, and other judicial branch projects. S.B. 139 would ensure that the courts received 51 percent of the assessments. Ms. Kavanau stated the courts were in agreement with an amendment that had been added by the Senate.
A. William Maupin, Chief Justice, Nevada Supreme Court, testified that the courts had worked all through the legislative session on S.B. 139. In the long run the negotiation of the courts’ budget process would be much easier with the passage of the bill.
Mr. Marvel said he understood Ms. Kavanau would be retiring and complimented her on the outstanding job as the Administrative Officer of the Courts, in particular, the accomplishments in the collection of administrative assessments. Judge Maupin also expressed his gratitude for the work Ms. Kavanau had done on behalf of the courts and thought she had had everything to do with the improved relationship the court had with the committee.
Senate Bill 461: Makes appropriation to University and Community College System of Nevada for new and replacement equipment and associated software in computing center. (BDR S-1428)
Dan Miles, Vice Chancellor, Finance and Administration, University and Community College System of Nevada (UCCSN), said S.B. 461 included a $2.5 million one‑shot appropriation for new and replacement equipment and software and was included in the budget recommended by the Governor. The Senate had approved S.B. 461 but had reduced the appropriation slightly. Mr. Miles said S.B. 461 complemented the closing of the System Computing Services budget.
Becky T. Seibert, Deputy to the Vice Chancellor for Technology, University and Community College System of Nevada, said System Computing Services provided technology services for the entire college system. Centralized administrative applications were provided, including the financial system, student information system, and human resources system. A statewide educational network was also provided. S.B. 461 would provide funding for equipment and software to accommodate growth in the numbers being served and would increase the use of technology in programs such as instruction, research, and administration.
Senate Bill 496: Authorizes issuance of revenue bonds to finance certain buildings at Great Basin College. (BDR S-1226)
Mr. Miles said S.B. 496 had been requested by the UCCSN and approved by the Board of Regents to come forward to reestablish the capacity levels for revenue bonds for the UCCSN, specifically the University of Nevada, Reno (UNR) and the University of Nevada, Las Vegas (UNLV). Under current law, the UCCSN had the ability to sell revenue bonds for specific projects. The bonds were not general obligations of the state but were obligations of the UCCSN and were repaid through revenues either derived through that project or other available revenues, primarily student fee revenues. In 1991 the legislature established bonding levels for UNR and UNLV. The amounts had been depleted over the years and Mr. Miles said it was time to come forward and request that new amounts be established for future projects. The initial legislation allowed the bond capacities to be in place for 18 years; 9 years had passed and 9 were remaining. Currently the capacity of UNR was only $8.5 million and UNLV was down to $20 million, which was not sufficient for new projects. Mr. Miles said the UCCSN was requesting that the capacities be increased to allow worthy projects to come forward. A great deal of due diligence went into determining if a project was worthy. The new parking structure located on the UNLV campus would not have been possible without the authority provided by the legislature.
Rick Bennett, UNLV, said he would be happy to answer specific questions related to the UNLV campus and projects.
Robert E. Dickens, Ph.D., Director, Office of Governmental Relations, UNR, said one of the projects being considered with the enhanced authority was phase two of the new dormitory. Enrollment had increased significantly. Thirty-seven percent of the campus residents were from Clark County and the available housing was at capacity. Two other projects being considered were the expansion of the University Inn to accommodate judicial education programs and conference activities, and the addition of an instructional and research wing to the chemistry building. Mr. Marvel asked what the revenue source would be for the chemistry building and Dr. Dickens said nothing had been specifically identified as yet.
Mr. Miles stated S.B. 496 had been amended in the Senate to include a small amount of revenue bond authority for Great Basin College to be used for a student housing project. Including $3 million in authority for revenue bonds would increase the college’s opportunity to complete a project. The $3 million would not fund the entire project, but through other sources matched with the potential revenue the student housing project might be able to move forward in the next several years.
Senate Bill 170: Creates Nevada cultural fund and revises powers and duties of state arts council. (BDR 18-133)
Senator Raymond D. Rawson, Clark County Senatorial District 6, stated S.B. 170 was developed during the interim. A cultural trust fund was needed because there was a varied arts and humanities community in Nevada and many different entities were awarded grants. There tended to be a great deal of competition and a lack of coordination. The bill was an attempt to bring the community together and to develop an endowed trust fund. The committee had researched to determine what other states were doing and tried to pick the best features from each state and then a plan was designed for Nevada. The appropriation had been removed from the bill, but still allowed the arts and humanities community to meet together and develop guidelines for determining how the trust would work. Senator Rawson hoped state funding would be provided in the future for the trust. In the meantime, the amendment allowed the acceptance of gifts, grants, and donations. Senator Rawson stressed the importance of S.B. 170. In response to a question posed by Mr. Marvel, Senator Rawson stated the Nevada Arts Council would administer the trust fund.
Susan Boskoff, Executive Director, Nevada Arts Council, said the council had been working with Senator Rawson on ways to enhance the funding mechanisms for the growing number of art organizations and other institutions that employed artists and conducted art activities. The adopted amendment stipulated that the Nevada Arts Council would work with the community to help establish the standards and criteria and determine how the cultural trust would operate in the best way for Nevada. Ms. Boskoff referred to current statistics from other states and said:
Ms. Boskoff referred to a handout (Exhibit E) that contained an overview of the grant panel’s recommendations for FY2002 and a listing of grant recipients and award amounts. Ms. Boskoff stated there had been a record number of applications and a record number of dollars requested. The amount of dollars requested had increased 34 percent over last year. The amount awarded, $786,856, reflected a 25 percent across-the-board cut from the recommended amounts. The total budgets for the projects that would be supported by state and federal monies was $31 million. The economic impact of last year’s grantees was $75 million, with 2,700 events. Free admission was provided to 799,000 individuals.
Ms. Boskoff said:
We believe the Nevada Cultural Trust embodies the heart of Arts Council’s mission and goals, and will benefit Nevadans across the state.
The Council supports legislation that empowers Nevada’s arts and cultural organizations to become financially, administratively and programmatically stronger, so that they may continue to play an ever-increasing role in the lives of individuals, families and communities throughout Nevada.
The Trust, when infused with sufficient capital, will be interest-based, which can support future cultural programming without the prospect of adding a new and permanent item to an already-stretched state budget.
Once the Trust is established, we believe that it will be successful in leveraging contributions from corporations, foundations and individuals, and
This strong public/private partnership will have benefits that extend beyond funding and into collaborative workshop relationships.
The design and structure of the Trust – including guidelines, eligibility criteria, review and distribution systems and final report requirements—will be made with input from those who will need to sustain it over time, including members of the private and public funding sectors and our constituency.
We will also investigate methods in which to regularly infuse the Trust with new income, preferably from more than one source, understanding that a diversified revenue stream helps assure long-term stability in the event that one source of funding dries up.
Senator Rawson said many states had developed general tax initiatives to fund cultural trusts and said it was appropriate for the state to provide General Fund monies. Over a period of time the trust fund would grow significantly through interest earned. The appropriation was removed from S.B. 170 due to budget constraints. Senator Rawson said he would advocate providing a small amount of funding to be used as seed money for the trust if any funds were available at the end of the session.
Mrs. Chowning indicated her support of S.B. 170 and disclosed she was a board member of VSA Arts of Nevada. Mrs. Chowning also wanted to provide funding for the trust if any additional funds became available.
Senate Bill 497: Authorizes issuance of general obligation bonds by state for purchase of certain facilities. (BDR S-1475)
Dan Miles introduced Dr. Rita Huneycutt, Interim President, Truckee Meadows Community College, Reno.
Dr. Huneycutt referred the committee to a booklet titled “Truckee Meadows Community College, Reno Town Mall Purchase, Senate Bill 497,” (Exhibit F). TMCC had leased space at the Reno Town Mall (RTM) since 1989. In 1997, the Board of Regents approved the negotiation of a purchase price. A comparison study for available land was completed in January of 1998. In May of 2001, the Board of Regents gave TMCC approval to pursue a general obligation bond. The RTM had recently been appraised at $7.5 million. Dr. Huneycutt referred to Exhibit F which provided additional information on the proposed RTM purchase and said the three main reasons for purchasing the RTM were:
Ms. Leslie said the Washoe County Library leased a large portion of the mall and asked what the plans were for the library. Dr. Huneycutt said the library had made a decision to move elsewhere in future years, but it was the desire of the college to have the library stay in its current location as long as possible.
Steve Salaber, CPA, Assistant Vice President for Administrative Services, TMCC, explained the library planned to stay in the current location for at least ten years.
Mr. Marvel asked what other tenants would remain in the RTM. Mr. Salaber explained that TMCC would be purchasing only the center portion of the mall. Raley’s and Burlington Coat Factory would remain for 30 years. The current owner of the mall would sublet the front part of the mall for 15 years. Parking for students would be provided on the south side of the mall.
Senate Bill 500: Revises various provisions of University Securities Law. (BDR 34-915)
Mr. Miles said S.B. 500 was a technical amendment bill to the University Securities Law, which dealt with debt issues, and he then introduced John O. Swendseid, Bond Counsel, UCCSN.
Mr. Swendseid said S.B. 500 would provide the regents with flexibility in selling bonds. The legislature had already provided flexibility to both local governments and the state government. There were three general security laws—the Local Government Securities Law for local governments, the State Securities Law for state government, and the University Securities Law for the universities. The University Securities Law had not been updated. Section 2 of the bill would allow the Board of Regents to delegate to the Chancellor or the Vice Chancellor for Finance and Administration, the right to set interest rates on bonds which would allow the regents to sell bonds at times other than a Board of Regents’ meeting. Section 3 would allow the UCCSN to issue floating rate bonds. There were no current plans to issue floating rate bonds. Section 4 would allow the UCCSN to invest bond proceeds in collateralized, guaranteed investment contracts. Section 5 would allow the UCCSN to enter into interest rate exchange agreements. The provisions included in S.B. 500 were exact copies of what was already authorized for state government.
Chairman Arberry recessed the meeting for a short break.
Chairman reconvened the meeting at 9:35 and referred to A.B. 343.
Assembly Bill 343: Provides for integration of state and local child welfare services. (BDR 11-325)
Mr. Stevens said there had been a number of hearings on A.B. 343 in the joint subcommittee and asked Larry Peri, Senior Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, to review the summary. Mr. Peri referred to a one-page document titled “Integration of State and Local Child Welfare Systems Issues” (Exhibit G) that detailed the final costs recommended for the integration of the state and local child welfare systems. Ongoing costs were recommended at $2,202,835 in FY2002 and $10,686,004 in FY2003. The Subcommittee on K-12/Human Resources made a number of suggestions that resulted in reductions -- $1,187,338 in FY2002 and $5,066,394 in FY2003, resulting in a net recommendation of $1,015,497 in FY2002 and $5,619,610 in FY2003. Mr. Peri explained that another bill, A.B. 512, also related to the integration effort, was a one-time appropriation initially recommended by the Governor at $7,994,650. The latest revisions resulted in a reduction of $3,296,989, for a revised total of $4,697,661.
The total amount recommended by the Governor for ongoing and one-time appropriations was $20,883,489. The total revised cost estimate for ongoing and one-time appropriations was $11,332,768, which yielded a difference or savings of $9,550,721. The revised total was due to the inclusion of salary increases recommended by the Governor for state employees and increases in placement costs, a delay of six months in beginning the integration process, and reductions to estimates for office space rental costs, vehicle prices, contract consultants and transition managers, and the elimination of retirement buyout estimates. A new budget account was recommended to isolate all costs attributable to the child welfare integration effort. The $12,888,839 included in the budget recommended by the Governor for ongoing costs was removed from the Child Welfare budget during closings. Any expenditure authority, ongoing and one-time costs, approved by the 2001 legislature was recommended to be placed into the new budget account. Mr. Stevens added that the funding included for the proposal would be appropriated to the Interim Finance Committee (IFC). There would be an oversight committee of six members, four members from the IFC and two from other committees, and the three parties, Washoe County, Clark County, and the Division of Child and Family services, could go to the oversight committee and the oversight committee would recommend release of funds as necessary to the IFC.
Ms. Giunchigliani thanked staff for the time spent working through the integration of the child welfare systems and said the legislation had been difficult. Ms. Giunchigliani said the integration was the first step in ending the bifurcation of the two systems and local governments were assured of not being hurt.
MS. GIUNCHIGLIANI MOVED TO AMEND AND DO PASS A.B. 343.
MRS. CEGAVSKE SECONDED THE MOTION.
THE MOTION PASSED UNANIMOUSLY.
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Chairman Arberry recessed the meeting at 9:41 a.m. at the call of the Chair.
Chairman Arberry reconvened the meeting at 1:32 p.m.
Mr. Stevens said there were three budgets that still remained open -- the Distributive School Account (DSA), Proficiency Testing, and WICHE. The DSA subcommittee was scheduled to meet later in the day, so the two budgets remaining for the full committee’s consideration were Proficiency Testing and WICHE.
WICHE – BUDGET PAGE WICHE–3
Mr. Stevens referred to the WICHE budget and explained that the chairmen of both money committees had met earlier in the day and were submitting a proposal for the committee’s review and consideration. Three physical therapy slots were recommended to be retained in each year of the biennium. Ten nursing slots would be added in the second year of the biennium; five mental health slots in the second year of the biennium, and following the Governor’s recommendation on the reserve level in FY2003, which eliminated the reserve, balanced forward funds into the first year of the biennium and reduced the General Fund.
Chairman Arberry stated he and Senator Raggio had concurred and the Senate would close the same way.
MRS. CEGAVSKE MADE A MOTION TO CLOSE THE BUDGET AS RECOMMENDED BY STAFF.
MR. HETTRICK SECONDED THE MOTION.
THE MOTION PASSED UNANIMOUSLY.
BUDGET CLOSED.
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PROFICIENCY TESTING – PAGE K12ED-32
Mr. Stevens referred to the Proficiency Testing budget and said the difference was in the M-202 decision unit. The joint subcommittee had closed with an additional $500,000 for the development and implementation of an alternative assessment for use in the high school proficiency examination -- the Senate did not close the budget with those funds included.
Ms. Giunchigliani said $250,000 would be sufficient because the budget was already closed and there was another bill for developing the English Language Learner (ELL) budget. Ms. Giunchigliani said she would be arguing for the money and also for passage of A.B. 13. Ms. Giunchigliani indicated she did not want to hold up closing the budget but still planned on negotiating for the additional $250,000 that was needed.
MS. GIUNCHIGLIANI MOVED TO CLOSE THE BUDGET AS CLOSED BY THE SENATE.
MS. LESLIE SECONDED THE MOTION.
THE MOTION PASSED UNANIMOUSLY.
BUDGET CLOSED.
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The Chair recessed the meeting at 1:36 p.m.
RESPECTFULLY SUBMITTED:
Linda J. Smith
Committee Secretary
APPROVED BY:
Assemblyman Morse Arberry Jr., Chairman
DATE: