MINUTES OF THE meeting
of the
ASSEMBLY ways and means
and senate finance committee
JOINT Subcommittee on Public Safety Natural Resources, and Transportation
Seventy-First Session
April 6, 2001
The Assembly Ways and Means and Senate Finance Committees Joint Subcommittee on Public Safety, Natural Resources and Transportation was called to order at 8:43 a.m. on Friday, April 6, 2001. Chairman David Parks presided in Room 2134 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.
ASSEMBLY SUBCOMMITTEE MEMBERS PRESENT:
Mr. David Parks, Chairman
Mr. Bob Beers
Mrs. Vonne Chowning
Mrs. Marcia de Braga
Mr. John Marvel
ASSEMBLY SUBCOMMITTEE MEMBERS ABSENT:
Mr. Richard D. Perkins
SENATE SUBCOMMITTEE MEMBERS PRESENT:
Senator Lawrence E. Jacobsen, Chairman
Senator William O’Donnell
Senator Joseph Neal, Jr.
STAFF MEMBERS PRESENT:
Mark Stevens, Fiscal Analyst (Assembly)
Steve Abba, Principal Deputy Fiscal Analyst (Assembly)
Gary Ghiggeri, Fiscal Analyst (Senate)
Robert Guernsey, Principal Deputy Fiscal Analyst (Senate)
Mark Krmpotic, Program Analyst
Mike Chapman, Program Analyst
Cindy Clampitt, Committee Secretary
Senator Jacobsen called the meeting to order at 8:30 a.m. and stated a quorum was present from both houses. The hearing on Budget Account 4704 was opened.
BUDGET CLOSINGS
DEPARTMENT OF MOTOR VEHICLES AND PUBLIC SAFETY - DRUG COMMISSION - BUDGET ACCOUNT 101-4704 – BUDGET PAGE PS-36
Mr. Gary White, Administrator, Office of Criminal Justice Assistance, introduced Ms. Sandra Mazy, Senior Program Analyst, and John Johansen, Program Officer. He stated Mr. Johansen would provide a brief overview of the Drug Commission and their function.
Mr. Johansen reported the current status of the Drug Commission. The State Master Plan had been provided to the Governor and each member of the legislative body. The commission had met three times in the current fiscal year and was on target for the fourth quarter meeting.
Mr. Johansen noted accomplishments of the commission in the current fiscal year included:
· Development of the State Master Plan;
· Development of indicators for the level of substance abuse;
· Recommendations presented to the Governor, some of which would be accomplished by Executive Order and some which might need legislative approval;
· Subcommittee meetings were being held to review tracking and outcome of various legislation;
· A new subcommittee was being created to administer grants and donations;
· The commission, through the Planning and Partnership Grant of the Division of Health, would be eligible to receive some funding in an effort to educate the general population and youth in Nevada; and
· The commission was exploring ideas of how to improve the ability to become eligible for various outside grant funds.
Mr. Johansen stated the future of the Drug Commission was to focus on education of the general public.
Senator Jacobsen requested an overview of the membership of Commissioners. Mr. Johansen stated the commission was composed of 13 members:
He noted the commission met quarterly and membership included the sheriff from Lovelock, educators from Carson City, Washoe and Clark Counties, and treatment providers from the Reno area.
Senator Jacobsen asked if the commission had needs that would strengthen it in any manner. He asked if the current representation was a good mix and Mr. Johansen replied in the affirmative and noted the commissioners worked well together.
Senator Jacobsen requested information on how the commission compared with other states and what, if any, further needs, would help that effort. Mr. Johansen replied Nevada had a more serious problem than the “average” state, particularly in alcohol and drug abuse. Nevada was equally “above average” for both juvenile and adult sides. Nevada trends were following the national trends. As national trends decreased, so did Nevada trends. He stated an example that drug and driving under the influence rates were down nationally and they were down in Nevada as well. Nevada’s rate of arrests was still higher.
Mr. Johansen stated a youth risk behavior survey was employed to judge substance usage of juvenile offenders. He noted Nevada was at, or near the national average in a few of the indicators and well above the national average on other indicators. He stated it was an issue of how well the commission continued the efforts to educate youths and adults on the dangers of alcohol and substance abuse. The program would be effective, but needed to be a long-term, ongoing effort of three to five years. For instance, after California had undergone 10 years of exceptionally strong anti-tobacco messages, that state had been able to reduce the lung cancer rate by 17 percent.
Senator Jacobsen noted the budget appeared to contain a movement to more allocations from the General Fund instead of Byrne Grant Funds from the Bureau of Alcohol and Drug Abuse (BADA). Mr. Johansen deferred the question to Ms. Mazy.
Ms. Sandra Mazy, Senior Program Analyst, Office of Criminal Justice Assistance, stated when The Executive Budget was prepared, she had understood the position created by the 1999 legislature included mandated funding by BADA grants. When A.B. 181 and S.B. 346 of the Seventieth Session had been combined, thereby increasing the membership of the commission and creating Mr. Johansen’s position, it also gave the Health Department two voting members on the commission, which no other state agency had. No Letter of Intent had ever been received. Most persons involved in those decisions no longer held their positions. She explained the BADA grant was 100 percent federal funding and required no matching funds.
Ms. Mazy noted the Byrne Grant did fund commission expenses with the required 25 percent General Fund match. The other position in the budget was funded through the General Fund. Four years ago, when the commission was transferred to the Office of Criminal Justice Assistance, $16,000 of Byrne Grant Funds were allocated to help support that position.
Chairman Parks commented revenue forecasts indicated the available budget funds would be very restricted. It was hoped to close as many budgets as could possibly be done, including certain conditions to replace or augment funding as required. That uncertainty made the subcommittee uncomfortable allocating any additional General Fund obligations early in the process. He suggested the budget could be closed with technical adjustments and be revisited if more revenue became apparent.
Assemblyman Marvel noted the Interim Finance Committee (IFC) had approved the position in 1999 and Ms. Mazy replied affirmatively. Mr. Marvel stated the committee usually established a mandate that if federal funding for a position was no longer available, the position was removed from the budget as well. Ms. Mazy responded the BADA funds had not “gone away,” the agency had simply chosen not to use any of the grant funds to fund that position. Mr. Marvel asked if the commission would be receiving any grant funding. Ms. Mazy stated commission expenses were funded with Byrne Grant funds. Mr. Marvel asked if some of that money could be used to fund the Program Officer position. Ms. Mazy stated that position was funded 100 percent from BADA grant funds. Mr. Marvel reiterated if federal funds were available, the position should be funded through federal funds. Ms. Mazy rebutted, the federal funds were allocated to the BADA and they refused to fund the position. She added her understanding was that the legislature had mandated the position to be funded through the BADA and made an observation that the BADA received more funding than the commission did.
Chairman Parks observed the Governor had recommended an amendment to replace the BADA funds with General Funds. He requested staff to discuss technical adjustments and concerns with Budget Account 4704.
Mr. Mark Krmpotic, Program Analyst, Fiscal Analysis Division, noted there were technical adjustments to reduce personal computer and software costs based on estimates from the State Purchasing Division. Another adjustment would isolate the administrative cost allocation into category 82.
Mr. Krmpotic noted the decision item before the subcommittee was one of whether to accept the amendment from the Governor to add General Funds for the Program Officer position. If the BADA funding was not being renewed, as indicated by the BADA in earlier hearings, the position should be removed from The Executive Budget.
ASSEMBLYMAN MARVEL MOVED TO CLOSE BUDGET ACCOUNT 4704 WITH TECHNICAL ADJUSTMENTS ONLY AND IF GENERAL FUNDS BECAME AVAILABLE, THE PROGRAM OFFICER POSITION COULD BE FUNDED.
SENATOR JACOBSEN SECONDED THE MOTION.
Chairman Parks clarified the budget would be revisited if additional General Fund dollars became available.
THE MOTION PASSED UNANIMOUSLY WITH SPEAKER PERKINS NOT PRESENT FOR THE VOTE.
Chairman Parks noted the BADA funds also needed to be backed out of the budget if they were not going to occur. Mr. Krmpotic noted that adjustment was not mentioned in the budget closing sheets, however, the subcommittee should consider removal of the BADA funding, effectively removing the Program Officer position as well. If further funding became available, the budget could be revisited and the position funded through the General Fund.
ASSEMBLYMAN MARVEL MOVED TO CLOSE BUDGET ACCOUNT 4704 WITH THE FURTHER TECHNICAL ADJUSTMENT RECOMMENDED BY STAFF.
SENATOR JACOBSEN SECONDED THE MOTION.
THE MOTION PASSED UNANIMOUSLY WITH SPEAKER PERKINS ABSENT FOR THE VOTE.
Senator Jacobsen asked for a justification of the color laser printer requested in Budget Account 4704. He said there appeared to be a great deal of transition of equipment and asked if some equipment was retained for a backup. He asked staff to check with the State Purchasing Division and obtain a list of what equipment was scheduled for return by each agency. Mr. Johansen stated the need for the additional printer was to replace current equipment. He noted it would be nice to retain the old equipment, however, the commission was on a replacement schedule through the Purchasing Division. He commented, as the workload increased within the Office of Criminal Justice Assistance, only one color printer was available for three different program areas and the commission wished to upgrade the current printer. Senator Jacobsen asked if the old printer was still useable. Mr. Johansen replied it was still working.
Mr. White stated part of the function of his office was that of establishment of a new program that would require additional staff and that would be discussed later. The equipment would supplement that additional staff as well.
Chairman Parks opened the hearing on Budget Account 4736.
DEPARTMENT OF MOTOR VEHICLES AND PUBLIC SAFETY – JUSTICE GRANT- BUDGET ACCOUNT 101-4736 – BUDGET PAGE PS-44
Chairman Parks requested staff to provide an overview of technical adjustments for Budget Account 4736.
Mr. Krmpotic stated the budget account was responsible for obtaining, administering, and sub-granting federal funds that fell under the Omnibus Crime Control and Safe Streets Act, the Anti Drug Abuse Act of 1988, and the Violent Crime Control and Law Enforcement Act of 1994. Staff recommended a technical adjustment to change the category designation for the interagency cost allocation proposed in decision unit E-801 to better identify expenses. He reminded the subcommittee the Governor had recommended an amendment to add two positions including associated operating and equipment expenses to expand the program to acquire low- and no-cost federal military equipment for state and local law enforcement agencies.
Mr. Krmpotic commented the program was known as the Federal Assistant Liaison Connecting Officials of Nevada – Networking Equipment Support Team (FALCON’S NEST). The Governor’s amendment recommended 75 percent of the program costs to be funded from the Byrne Grant totaling $95,400 in the first year and $90,845 in the second year of the biennium. The required 25 percent match from the General Fund would be $31,800 in FY2002 and $30,282 in FY2003. He stated the decision before the subcommittee was to consider whether to add the recommended General Funds and Byrne Grant funding. He suggested the subcommittee consider the likelihood of General Fund cuts in the May 1, 2001, Economic Forum projections.
Mr. Krmpotic noted a General Fund appropriation was recommended in the Narcotics Control budget of $122,734 in FY2002 and $158,915 in FY2003 to address the anticipated decrease in the amount of Byrne Grant funds available.
Chairman Parks stated the subcommittee was favorably impressed with what the program had been able to accomplish to date with existing staff. He noted the budget requested two new positions and asked if the agency would be able to work with only one new position and what duties would be assigned that required two positions. Mr. White replied the program was currently under his direction and he had worked on the program for five years in a previous position. He explained in that agency, a staff of seven to nine persons had worked on the program.
Mr. White stated Arizona had three staff administering the program and Colorado had two staff plus one manager. He noted other states had from two to three staff managing the program. He explained two sections of the National Defense Authorization Act pertained to the program. The 1033 Section had been worked in Nevada for a number of years, but not operated to its full potential. Only 11 out of 151 agencies encompassing 8,500 law enforcement officers in the state accessed the program because of a lack of direction from the state. The potential for equipment received over the past two years had been approximately $5 million in 1999 and $3 million in 2000. Other states were doing a much better job of supporting their state and local law enforcement agencies with the available equipment. Equipment could be obtained from the Department of Defense to assist with officer and citizen safety that did not need to be funded through individual budgets. There were currently 40 agencies certified in the program, but they were not doing what was needed.
The 1033 Section related to free equipment available to the agencies and if there was a full-time staff person dedicated to the Network and Equipment Support Team (NEST), Mr. White and that position would be working with other state and local officers assigned to the program in obtaining equipment for all the agencies. The agency had recently obtained basic duty uniforms that were passed through to the Department of Prisons for use in training. Two hundred Kevlar helmets had been obtained with the assistance of the Washoe County Sheriff, who was at Hill Air Force Base in Utah picking up other equipment in the program.
Dedicated staff was needed for coordination and approval of equipment requests from agencies. He noted the receiving agency was required to travel to a military base to take receipt of donated equipment. The program, since its inception, had taken receipt of $700,000 in equipment, which was very meager considering the potential of the program. With proper coordination the program had the potential to obtain $3 million to $5 million of equipment per year for state and local agencies.
The second portion of the program was the 1122 Section, which was a purchase program through the General Services Administration (GSA) and the Department of Defense in conjunction with the Bureau of Justice at the federal level. The program allowed law enforcement agencies to purchase equipment at the federal price level reflecting a cost savings from 10 percent to 50 percent. Mr. White noted in 2000, the Nevada program had achieved actual cost savings of approximately $400,000 per agency on approximately $2 million in purchases reflecting a 20 percent savings of state and local law enforcement budgets.
Chairman Parks said his intent was to question specifically why two additional staff positions were needed. Mr. White replied the programs could be administered with one person, but not as well. He commented people from each agency called for assistance in how to obtain equipment and requesting direct assistance.
Mr. Marvel asked if any of the local law enforcement agencies paid anything to the Justice Grant program for administrative costs. Mr. White replied negatively. He added the Byrne Grant funded 75 percent and the General Fund funded 25 percent of costs.
Mr. Marvel asked staff whether General Fund money had been used historically to match Byrne Grant funds. Mr. Krmpotic explained the Byrne Grant funds had been matched with Forfeiture Funds in the Narcotics Control Budget and General Funds were currently matching Byrne Grant funding in Budget Account 4736 for administration of the Byrne Grant. Mr. Marvel asked if Forfeiture Funds could be used instead and Mr. Krmpotic replied the Governor had recommended the substitution of General Funds for the Forfeiture Funds in various cases, because the agency anticipated a decline in Forfeiture Funds. The Governor had also recommended a replacement of vehicles with Forfeiture Funds.
Mr. Marvel asked what the balance in the forfeiture account was. Ms. Carol English, Assistant Chief, Administrative Services Division, Department of Motor Vehicles and Public Safety (DMV/PS), stated the Forfeiture Fund had a current balance of approximately $1 million, but it was very difficult to project what receipts into the fund would be. She explained the budget allocated $300,000 to $400,000 to the Highway Patrol for ongoing programs. There was also a proposal to purchase vehicles at approximately $400,000 for the Nevada Division of Investigation from the fund. When the agency reviewed recent history of receipts to the account, they determined it was unwise to lower the reserve any further. Mr. Marvel stated perhaps, during the budget crafting period, the General Fund revenues had appeared more promising, but it currently appeared there would be a tremendous shortfall in that fund.
Assemblywoman Chowning stated she was struggling with the requests because of the budget shortfall; that expenditure of funds must be used to do the most good that could be done for citizens of the state. She listed the value of the equipment already obtained, without the assistance of new positions:
· $146,000 to the Nevada Highway Patrol;
· $116,000 to the Division of Wildlife;
· $1,100 to the Division of Parks; and
· $233,000 to the Washoe County Sheriff’s Department.
She commented overall, it appeared Nevada citizens were being assisted, but Washoe County was being assisted to the greatest degree. She asked if the county could do the same thing without the help of the state. She noted nothing had been provided to Clark County or other counties.
Mrs. Chowning noted the list of equipment obtained included:
She asked if all that equipment assisted citizens and noted earlier presentations had indicated the program could access items such as “Hummers” and night vision goggles. She commented that while the program had accomplished much good, and could probably access more equipment with additional staff, there was currently a budget shortfall and conservative measures needed to be considered paramount. Mr. White replied the “free” program had been underway for a number of years, but the reason for the budget request was so all agencies could be assisted. He noted the Las Vegas Metropolitan Police Department had done a good job with the program in the previous year, but their screener staff person had become ill and retired, and they had not been active in the program since. He added, with the two new staff positions the agency could perform the necessary training on a statewide basis to maximum effect. The program required a cooperative effort between the state and the agencies. A position within the state, Mr. White’s position, was the federally required state contact person. Staff was needed to work with various offices through training so they understood the procedure.
Mr. White said the agencies did incur the cost of traveling to the military locations to examine offered equipment, but it was beneficial. He explained the two staff positions requested were based on his prior experience and the need for outreach efforts. His office was currently working with the State Purchasing Division to ensure the best value for the dollar was achieved. Equipment was being purchased following the guidelines of Nevada Revised Statutes (NRS). There were agencies that had no other way to obtain certain equipment.
Chairman Parks commented the subcommittee did understand the program; they were primarily concerned with funding of the positions.
Ms. English commented before an option of using Forfeiture Fundscould be considered, certain restrictions on expenditure of those funds must be reviewed. Unless the activities included narcotics interdiction activities, ongoing program costs could not be funded. Mr. Marvel stated, since the equipment went to law enforcement agencies that should qualify for use of Forfeiture Funds. Ms. English replied both federal and state regulations narrowed the scope from general law enforcement to specify drug interdiction activities. Mr. Marvel opined 80 percent of crimes were drug related.
Assemblyman Beers suggested a fee should be associated with the purchasing program that would fund the activity. Chairman Parks commented that option had been discussed during the budget review process. The Chair suggested a 2 percent or 2.5 percent surcharge be assessed to each of the agencies in addition to the cost for the items. Mr. White replied that was one option. He added the Governor, under Section 1122 of federal law, could set up whatever directions he felt necessary to implement the program. Based on the amount of savings, which could be from 20 percent to 50 percent, if a minimal fee was assessed it would be acceptable for the purchase program.
Senator Jacobsen asked if equipment acquired by the state was authorized for donation or sale to local governments involved in the same activity. Mr. White replied under Section 1122, the local or state government would make an outright purchase of equipment. Under the “free” program, if an agency received a piece of equipment and used it for a period of at least one year, or during the course of that year decided the equipment was something that was no longer feasible for them, they could transfer it to another agency program. A further advantage at both the state and local levels was that the majority of equipment was demilitarization equipment. Some equipment, such as Kevlar helmets and bulletproof vests, were required to be returned when the agency had no further use for them. The Memorandum of Agreement stated most equipment could be acquired and used for one year; at the end of a year, if it was no longer needed it was disposed of through state and local regulations. In Nevada, the equipment would be returned to the Department of Administration and disposed of. Any receipt of funds would be sent back to the General Fund.
MR. MARVEL MOVED THE BUDGET BE CLOSED WITHOUT THE GENERAL FUND APPROPRIATION AND WITH THE OPTION OF CHARGING AN ADMINISTRATIVE ASSESSMENT TO FUND THE REQUESTED POSITIONS. AN OPTION WOULD ALSO BE MADE TO REVISIT THE BUDGET IF THE BUDGET FORECASTS WERE GREATER THAN EXPECTED.
Senator Neal asked for clarification on the motion and asked if it included an understanding that the grant was to have matching funds.
Chairman Parks restated the motion adding Mr. White was directed to return to the subcommittee with a resolution of how to obtain the 25 percent matching funds through forfeiture, or assessment of approximately 2.5 percent. Mr. Neal asked if it was understood the grant funds must be matched. The Chair concurred.
Mrs. Chowning clarified that the 25 percent matching funds constituted the state match and would be achieved through either Forfeiture Funds or an assessment fee to the local agencies or state agencies in receipt of equipment.
Senator Jacobsen asked if it would be proper to have the agency report the status of the program to the IFC. The Chair opined it might be possible for the agency to report back with a determination before all the budgets were finalized. Mr. Krmpotic stated the subcommittee could recommend a Letter of Intent be written to direct the agency to report quarterly to the IFC.
ASSEMBLYMAN MARVEL MOVED TO AMEND HIS MOTION TO INCLUDE THE LETTER OF INTENT.
SENATOR JACOBSEN SECONDED THE MOTION AS AMENDED.
THE MOTION PASSED UNANIMOUSLY WITH SPEAKER PERKINS ABSENT FOR THE VOTE.
Ms. English asked for clarification that the positions had been approved and remained in the budget, but funded at 75 percent of match.
Mr. White asked whether the two positions would be lost if the 25 percent match funds could not be found, and support resources for the program as well. He commented he would carry on as best he could.
Chairman Parks opened the hearing for Budget Account 3673.
DEPARTMENT OF MOTOR VEHICLES AND PUBLIC SAFETY – EMERGENCY MANAGEMENT – BUDGET ACCOUNT 101-3673 – BUDGET PAGE PS-49
Chairman Parks asked staff to review technical adjustments and background for Budget Account 3673.
Mr. Michael Chapman, Program Analyst, Fiscal Analysis Division, explained the Division of Emergency Management (DEM) was the coordinating agency for the efforts of the state and its political subdivisions, private and volunteer organizations, and tribal nations, to reduce the impact of emergencies and disasters in developing, implementing, and maintaining programs for mitigation, preparedness response, and recovery to incidents.
Mr. Chapman stated prior to FY2000, the DEM was funded by a variety of grants from the federal government through the Federal Emergency Management Agency (FEMA) and the Department of Energy. At the beginning of FY2000, the FEMA grants were consolidated into a single emergency management performance grant and as a result, only one source of grant funding was being received.
The Emergency Management Assistance Program, Budget Account 3674, had previously been associated with Budget Account 3673. Some of the grants were pass-through grants to local entities that required matching local funds. During the budget crafting process, the Governor recommended that Budget Account 3674 be discontinued and funding for local grants be funded through Budget Account 3673. During the process, funding was eliminated from the assistance program, but was not carried forward into Budget Account 3673. The first technical adjustment would bring the funding authority into Budget Account 3673 in the historical amount of pass-through grants.
The second technical adjustment was a reduction in computer hardware costs reflecting the revisions recently made by the Purchasing Division. A calculation error had also been made in the adjustment.
The third technical adjustment was a staff recommendation to change the category recommendation for interagency cost allocation proposed in decision unit E-801.
Mr. Chapman noted there were a number of decision items before the subcommittee regarding the budget.
Decision unit E-250 was a recommendation to consolidate a number of the traditional expense and special use categories into a single category under the Emergency Management Performance Grant (EMPG). That would eliminate the categories of Out-of-State Travel – category 02, In-State Travel – category 03, Operating – category 04, and eliminated some of the special use categories.
Mr. Chapman reminded the subcommittee the issue had come before the IFC in June 2000 and was ultimately denied. The current decision was whether to approve consolidating the expenditure categories or restoration of the EMPG expenditure into the special use categories.
Chairman Parks expressed his opinion that the accounting should be restored to each individual category, rather than placing them into one grant category appropriation of $111,000 per year. He commented it was not good accounting practice and could set a new precedent.
Mr. Frank Siracusa, Chief, Division of Emergency Management, introduced Kamala Carmazzi, Deputy Chief, who would address the issue.
Ms. Carmazzi explained in the past, the Division of Emergency Management had categorically managed several different programs within specific categories thus formalizing an ongoing practice. She added her understanding of the concerns regarding categories 02, 03, and 04. However, categories of State and Local Assistance Planning, Training, and Exercise (SLA-50) (13), Hazard Mitigation (15), and Disaster Preparation Improvement (32), represented individual programs that no longer existed. Categories 02, 03, and 04 would only represent a very small fraction of the EMPG program.
Assemblywoman de Braga asked if the categories, that apparently no longer existed, had been consolidated in some other area of the budget. Ms. Carmazzi replied the programs represented by categories 13, 15, and 32 no longer existed.
Mrs. de Braga asked how categories 02, 03, and 04 would be tracked if they were consolidated into one category. Ms. Carmazzi stated those expenditures would be tracked through general ledger accounting as they were in other grant programs.
Mr. Chapman reported decision unit E-300 requested the Communication Systems Specialist to be changed from a half-time position to a full-time position. The position was responsible for coordination of the state communications efforts with amateur radio operators and professional emergency responders in emergency situations. The budget increase would be $22,547 in FY2002 and $23,546 in FY2003. The position was funded 50 percent by the General Fund and 50 percent by the EMPG grant, thus the General Fund impact would be $11,164 in FY2002 and $11,659 in FY2003.
Senator Jacobsen disclosed a conflict of interest because he was appointed by the Governor to sit on the State Emergency Response Commission (SERC). He added the program had been a real benefit to the rural counties and to the state as a whole.
Chairman Parks asked if General Funds were not available to meet the match making the position full time, were there any other sources of revenue that could be used. Mr. Siracusa replied there was none because the only other funds would be federal, and federal funds could not provide a match for federal funds.
Decision unit E-710 recommended replacement computers, software, and printers and would be entirely funded by the Department of Energy (DOE) grant.
Decision unit E-720 was a similar situation requesting five new laptop computers and associated licenses funded with DOE grants. The laptops would have a docking station so they could be used in the office, as well as in the field.
Decision unit E-721 requested $55,000 of DOE grant funds for the purchase and installation of a videoconferencing system to connect the Emergency Operation Center (EOC), the two Governor’s offices, and the Washington D.C. office.
Mr. Marvel stated his support of decision units E-710, E-720, and E-721. He recommended decision on E-300 be held. The Chair concurred requesting a presentation for the rest of the items. Motions would be taken after the presentation.
Mrs. Chowning asked if the costs of the E-700 series items had been reviewed, even though they requested use of DOE grant funds, as that might essentially reflect a reduction in cost as with computer equipment in other budgets. Mr. Chapman stated the items had been adjusted in technical adjustments to reflect revised prices from the Purchasing Division.
Senator Neal noted there was a proposal before the legislature to move the division to the Governor’s Office. He asked who had made that request. Senator Jacobsen replied that he had simply been asked to co-sponsor the bill. Mr. Siracusa stated that discussion had been held early in the legislative session with the Governor’s Office and the Governor’s Office had supported the request. Senator Rawson and Senator Jacobsen sponsored the bill. Senator Neal stated The Executive Budget did not reflect costs for the move. Mr. Siracusa responded there would be no financial impact related to the move because it was simply an administrative move. The physical location would remain the same.
The Chair requested confirmation that the Division of Emergency Management would remain in their current physical location. Mr. Siracusa replied the current bill requested only an administrative move.
Senator Jacobsen noted the Army National Guard would be moving out of the Bodie Howard Building into a new facility on Fifth Street and there had been some discussion that Carson City might buy the Bodie Howard Building. He asked Mr. Siracusa what he knew of those plans. Mr. Siracusa replied, to the best of his knowledge, the Army National Guard would be moving in November 2001 to the new facility and the division had no plans of relocating or constructing a facility of their own.
He added, an early Capital Improvement Project (CIP) had been proposed to construct a building next to the new guard facility for the division, but that had never materialized.
Senator Jacobsen asked if the facility and the amount of space was adequate. Mr. Siracusa replied the current facility was adequate, except that the facility was in serious need of repair.
Senator Neal commented he had been told the approximate $54,000 allocation would not be moved to the Governor’s Office budget. He asked for confirmation of that information. Mr. Siracusa replied the allocation costs were actually approximately $174,000, 50 percent of which was state General Fund and 50 percent federal. Those costs would have to be absorbed by the department. He noted approximately 90 percent of federal funding was pass-through grants to local governments. Senator Neal stated the budget could not be closed until it was known whether S.B. 306 would be enacted.
Mrs. Chowning asked if the division was in support of an organizational move to the Governor’s Office. Mr. Siracusa replied affirmatively.
Mr. Dennis Colling, Chief, Administrative Services Division, DMV/PS, explained a fiscal note had been attached to S.B. 306 that would send the DEM budget, which described the effect on the administrative cost allocation and the DMV/PS Technology Division cost allocations, to the Governor’s Office. The Chair stated a fiscal note had been provided by the Budget Division reflecting the agency’s response of a zero impact to the budget. He asked for confirmation that administrative costs would be spread over other respective budgets. Mr. Colling replied affirmatively.
The Chair noted technical adjustments within Budget Account 3673 were fairly clear. He stated decision unit E-250 categories of 02, 03, and 04 should be budgeted separately. Categories 13, 15, and 32 had been consolidated and he could concur with that change.
Senator Neal referred to a congressional bill, introduced by Mr. Thornbury of Texas, that would consolidate all the emergency agencies into one group called the National Homeland Security Act. Mr. Siracusa replied that he had not heard of the bill, however, the current arrangement was that each state had a state office of emergency management. Senator Neal commented he was disturbed by the name of the congressional act and the connotation to the public. Mr. Siracusa stated he would research the issue.
Ms. Carmazzi referred to decision unit E-250 and expressed her understanding of the accounting concerns of the subcommittee. She noted other categories within the budget in which categories 02, 03, and 04 were consolidated. The categories in Budget Account 3673 represented only a fraction of one program. Mr. Chapman commented there were travel and operating categories within other special use categories.
Mrs. Chowning stated the consolidation of those accounts had been denied by the IFC because there was not sufficient justification for the change. She added other agencies would also want to make similar changes if the change was allowed. She asked if categories 02, 03 and 04 were approximately $30,000 and other categories represented the balance of nearly $68,000. If that was true, the amount was very small. It seemed the appropriate answer was to keep the categories separate. If similar categories in other areas of the budget could not be consolidated that would cause a problem as well. Other agencies had the same problems and did not want to appear before the IFC asking for expenditure authority. The will of the legislature was that General Fund expenditures would be tracked. Ms. Carmazzi stated one issue behind the request was that for the agency to break out each program they managed for grant reporting would create an accounting nightmare. The DEM had been very effective in managing their accounts using the state’s general ledger system. Tracking could still be accomplished and an offer was made to provide the subcommittee or the IFC a full report at any time.
Assemblyman Beers concurred that creating grant reports with different grants in one single account would be an accounting nightmare. He opined the budget reflected general and administrative costs and was not grant oriented. Ms. Carmazzi replied she understood Mrs. Chowning’s request to be that the agency break out all programs into categories 02, 03, and 04, which would consolidate specific grant programs into individual categories. Mr. Beers stated he would disagree with that concept because federal grant reports would be made much more difficult.
Mr. Beers stated it was his understanding that decision unit E-250 did not include grant activity. Mr. Chapman stated E-250 was EMPG activity within category 20. He explained E-250 was a combination of funding based on the matching requirements of the grant.
Mr. Beers asked how many segments were included in the general ledger. He opined one category could allocate for the grant and another for the type of expenditure. Ms. Carmazzi replied the issue was, that at the federal level, the FEMA consolidated numerous programs into one. Prior to that consolidation the DEM managed the FEMA grants over 11 budget categories. The request was generated because three categories represented programs that no longer existed, and categories 02, 03, and 04 were of the traditional state budget even though historically Nevada DEM had managed all programs with the exception of what was formerly known as the SLA-50 program categorically, in other words, special use categories. The request would follow historical practice and make management and reporting of the grants far easier. She added, programs were tracked through categories, by federal grant program coding, and through general ledger coding.
Mr. Beers asked if the program coding was a text field within the detail line of the general ledger debit or credit and did not affect the general ledger account. Ms. Carmazzi replied affirmatively. It strictly identified and produced another report from the Controller’s Office that identified the federal grant programs.
Mrs. Chowning asked for staff analysis of how the issue addressed future decisions regarding tracking of expenditures in the General Fund budget. Mr. Chapman replied the budgeting process assigned certain expenditures to certain categories. The account under discussion was a hybrid with traditional categories and associated general ledger lines. They also had special use categories for HAZMAT training and others. The special use categories also had categories 02, 03, and 04 within them. He understood that in the past individual grants had been assigned to the categories and costs of the grants were tracked within the special use categories. From an accounting standpoint, there was probably a variety of methodologies to track program expenditures for reporting purposes. For budgeting purposes, decision unit E-250 shifted funding from categories 02, 03, and 04 into a single category and allowed the agency the ability to move or utilize funding within a category between expenditure areas.
Mrs. Chowning asked if other agencies that administered a variety of funds also had the same concerns. Mr. Chapman replied that was correct and provided examples of the Department of Environmental Protection (EPA) that had a number of grants within their programs and the internal grant accounting was difficult. Those budgets had not yet been heard for closing, but they would be making a similar request.
CHAIRMAN PARKS MOVED TO APPROVE TECHNICAL ADJUSTMENTS, REQUEST THE SEPARATION OF ACCOUNTING IN DECISION UNIT E-250, PENDING A SOURCE OF FUNDING OTHER THAN THE GENERAL FUND FOR DECISION UNIT E-300, ELIMINATE THAT ADDITIONAL COST, APPROVE DECISION UNITS E-710, E-720, AND E-721, AND RECOMMEND ADDITIONAL FUNDS FROM THE GENERAL FUND OF $4,492 IN E-800, APPROVE E-801 PENDING THE OUTCOME OF S.B. 306.
SENATOR JACOBSEN SECONDED THE MOTION.
Mrs. Chowning asked for a restatement of the motion regarding E-250. The Chair restated his recommendation that the change requested in E-250 be rejected for elimination of individual category accounting.
Mrs. Chowning asked for clarification that the motion included a provision if S.B. 306 was approved. Chairman Parks replied the motion was that E-801 would be held pending the outcome of S.B. 306 and staff changes.
Senator O’Donnell requested a brief recess and the Chair concurred.
The meeting was reconvened at 10:14 a.m. Senator O’Donnell asked if Budget Account 3673 was to be held. He added the subcommittee needed to find out what the impact would be on local governments. He offered to bring that information back to the subcommittee. Chairman Parks directed staff to provide that information.
THE PARKS/JACOBSEN MOTION REGARDING BUDGET ACCOUNT 3673 WAS WITHDRAWN.
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ASSEMBLYMAN MARVEL MOVED TO HOLD BUDGET ACCOUNTS 3673 AND 3674 (EMERGENCY MANAGEMENT ASSISTANCE PROGRAM).
SENATOR JACOBSEN SECONDED THE MOTION.
THE MOTION PASSED UNANIMOUSLY WITH SPEAKER PERKINS ABSENT FOR THE VOTE.
The Chair opened the hearing on Budget Account 4729.
DEPARTMENT OF MOTOR VEHICLES AND PUBLIC SAFETY – EMERGENCY RESPONSE COMMISSION - BUDGET ACCOUNT 101-4729 – BUDGET PAGE PS-172
Mr. Krmpotic stated Budget Account 4729 worked with local governments to protect citizens of the state from negative effects of hazardous materials use while supporting the state goal of encouraging industry development and growth.
Technical adjustments were recommended in decision unit M-100 for inflation calculations recommended by the Governor, and a change in the category designation for interagency cost allocation in decision unit E-801.
S.B. 167 of the Seventieth Session included language that specified the funds for support of the operation of the commission, other than grant provisions, be appropriated from the Highway Fund. The Governor submitted a budget amendment to replace funding from the reserve of $81,513 in FY2002 and $88,814 in FY2003 with a Highway Fund appropriation in the adjusted base. Staff had recalculated that amendment and identified additional Highway Funds that could be placed into Budget Account 4729 and provided adjusted figures to the subcommittee.
ASSEMBLYWOMAN CHOWNING MOVED TO CLOSE DECISION UNITS M-100 AND E-801 WITH TECHNICAL ADJUSTMENTS RECOMMENDED BY STAFF.
ASSEMBLYMAN MARVEL SECONDED THE MOTION.
THE MOTION PASSED UNANIMOUSLY WITH SENATOR NEAL AND SPEAKER PERKINS ABSENT FOR THE VOTE.
Mr. Krmpotic noted a Bill Draft Request had been submitted to move the State Emergency Response Commission (SERC) to the Division of Environmental Protection. Depending on the outcome of that request, amounts recommended in decision units Public Safety Technology Cost allocation, E-800, and Administrative Cost allocation, E-801, might be impacted if the bill was approved.
Staff sought approval of the subcommittee to make adjustments to decision units E-800 and E-801 based on final approval of the budgets for the Public Safety Technology Division, The Administrative Services Division, and the Public Safety Director’s Office.
Mrs. Chowning asked if the amounts affecting the account were known. Mr. Krmpotic replied the department indicated the Public Safety Technology Division would continue to support the SERC, even if they were moved, because certain databases used by the SERC were housed within the public safety computer system. The administrative cost allocation would be removed. The department had indicated there was a potential for an allocation from the Environmental Protection Division included in the SERC budget if the agency was transferred. He noted there would be no justification to retain E-801 in Budget Account 4729 if the account and the program were transferred.
ASSEMBLYMAN MARVEL MOVED TO CLOSE BUDGET ACCOUNT
4729 WITH STAFF RECOMMENDATIONS.
ASSEMBLYWOMAN DE BRAGA SECONDED THE MOTION.
THE MOTION PASSED UNANIMOUSLY WITH SENATOR NEAL
AND SPEAKER PERKINS ABSENT FOR THE VOTE.
Chairman Parks adjourned the meeting at 10:21 a.m.
RESPECTFULLY SUBMITTED:
Cindy Clampitt
Committee Secretary
APPROVED BY:
Assemblyman David Parks, Chairman
DATE: