MINUTES OF THE meeting of the
joint subcommittee on general government
of the
SENATE Subcommittee on Finance
and the
assembly committee on ways and means
Seventy-First Session
April 20, 2001
The Joint Subcommittee on General Government of the Senate Committee on Finance and the Assembly Committee on Ways and Meanswas called to order by Chairman William R. O’Donnell, at 8:27 a.m., on Friday, April 20, 2001, in Room 3137 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. Exhibit B is the Attendance Roster. All exhibits are available and on file at the Research Library of the Legislative Counsel Bureau.
SENATE MEMBERS PRESENT:
Senator William R. O’Donnell, Chairman
Senator Lawrence E. Jacobsen
Senator Joseph M. Neal Jr.
ASSEMBLY MEMBERS PRESENT:
Mrs. Vonne S. Chowning, Chairman
Mr. Bob Beers
Ms. Christina R. Giunchigliani
Mr. Lynn C. Hettrick
Ms. Sheila Leslie
Mr. David R. Parks
STAFF MEMBERS PRESENT:
Bob Guernsey, Principal Deputy Fiscal Analyst
Michael J. Chapman, Program Analyst
Rick Combs, Program Analyst
Bob Williston, Committee Secretary
OTHERS PRESENT:
Sue Dunt, Risk Manager, Risk Management Division, Department of Administration
Donald L. Bailey Sr., Chief, State Printing Division, Department of Administration
Rod Corbit, Printing Services Manager, State Printing Division, Department of Administration
Frank Revell, Chief, State Motor Pool, Department of Administration
Bill Moell, Chief, Purchasing Division, Department of Administration
Paul J. Iverson, Director, State Department of Agriculture
BUDGET CLOSINGS – DEPARTMENT OF ADMINISTRATION
Insurance & Loss Prevention – Budget Page ADMIN-16 (Volume 1)
Budget Account 715-1352
Michael J. Chapman, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, read the overview, technical adjustments, and decision units outlined on pages 6 and 7 of Closing List 4 (Exhibit C). He requested authority to make technical changes in computer prices and cost allocation necessary based upon the final budget closings.
M-100 Inflation and Per Unit Adjustment – Page ADMIN-18
Mr. Chapman asked whether the subcommittee wishes to approve Module M‑100 reflecting the changes in the Workers’ Compensation program and the increases to commercial insurance premium costs as recommended by the Governor.
E-225 Reward More Efficient Operation – Page ADMIN-19
Mr. Chapman asked whether the subcommittee wishes to approve the additional contract services and additional staff training, and conduct workers’ compensation and safety training as recommended in The Executive Budget.
E-805 Major Reclassifications – Page ADMIN-20
E-850 Special Projects – Page ADMIN-21
Senator O’Donnell pointed out that decision units E-805 and E-850 are funded out of the reserve and that will not affect the General Fund. He noted, however, that it will be a “roll-up cost” for the next biennium. He stated that the question is whether the committee will approve of that. He asked Mr. Chapman what the staff’s recommendation is on that question.
Mr. Chapman replied that it does stand to reason to have a backup employee to stand in for the risk manager in her absence. For this reason, he said, the staff believes the recommendation is reasonable.
Mr. Chapman stated that the staff also concurs that this request is reasonable, based on the costs that have been provided by the Risk Management Division.
ASSEMBLYMAN NEAL MOVED TO CLOSE BUDGET 715-1352 WITH ADJUSTMENTS RECOMMENDED BY THE STAFF.
ASSEMBLYMAN HETTRICK SECONDED THE MOTION.
THE MOTION CARRIED. (ASSEMBLYWOMAN GIUNCHIGLIANI WAS ABSENT FOR THE VOTE.)
* * * * *
E-225 Reward More Efficient Operation – Page ADMIN-19
Mrs. Chowning asked, regarding E-225, where the investigations of noise levels and carbon dioxide ventilation levels will be conducted.
Sue Dunt, Risk Manager, Risk Management Division, Department of Administration, stated that the division’s expectation with this particular project is to have a certified industrial hygienist available for circumstances in which the division needs to investigate indoor air quality issues that might come up in various agencies. She said that could involve employees getting sick in a certain location, and mentioned a situation in a facility in Las Vegas where high levels of carbon dioxide have been discovered. She explained in that case they had to get someone there to measure the levels and assist the division in dealing with those problems.
Ms. Dunt said the division also wants to utilize this service to do a proactive investigation of a lot of agency buildings to determine whether the indoor air quality environment is adequate, whether ventilation is adequate, and whether there are mold problems in the facilities. She reiterated that her expectation is to use this for services related to industrial hygiene, both proactive and reactive.
Mrs. Chowning said she understands the ventilation system and the mold problem are much better now in that Las Vegas facility.
Ms. Dunt stated that facility is quite well taken care of, but it seems that every time one such investigation is concluded another such situation needs to be investigated.
Mrs. Chowning asked whether there is a particular area where noise levels will be investigated. Ms. Dunt replied that the investigation of noise levels will take place in such situations as helping the Department of Transportation in work projects where there are excessive noise levels. She stated that the division initiated a study with the game wardens to do noise level studies when they are out on boats. She pointed out that they occasionally get hearing loss claims from employees or resulting from their annual physicals. She stated that a mechanism is needed to readily go in and investigate those situations and assist in determining whether changes or additional equipment or training need to be implemented.
Mrs. Chowning encouraged Ms. Dunt and her division to continue doing that so the workers are assured they will be working in safe and healthy environments.
Printing Office – Budget Page ADMIN-30 (Volume 1)
Budget Account 741-1330
Mrs. Chowning asked what the status of Senate Bill (S.B.) 564 is.
SENATE BILL 564: Requires competitive bidding for printing of certain state publications and other printed materials. (BDR 29-568)
Donald L. Bailey Sr., Chief, State Printing Division, Department of Administration, replied that S.B. 564 is “indefinitely postponed.”
Mr. Chapman read the overview, technical adjustments, and decision units outlined on pages 8 and 9 of Closing List 4 (Exhibit C). He requested approval to make technical adjustments for computer prices, depreciation, and cost allocation.
Mr. Chapman stated that if Capital Improvement Program (CIP) projects 01‑M7 and 01‑M8 are approved, the subcommittee may wish to recommend issuing a Letter of Intent directing the Printing Office to include repayment of state funds for actual improvement costs in the agency’s first budget submittal following completion of the projects.
M-200 Demographics/Caseload Changes – Page ADMIN-18
Mrs. Chowning asked that decision unit M-200 be considered separately.
E-300 Maximize Internet & Technology – Page ADMIN-33
Assemblyman Beers asked whether the computer training classes would be for the administrative staff or the printing staff. He specified the Microsoft Windows 2000, Office 2000, Excel, and Word.
Rod Corbit, Printing Services Manager, State Printing Division, Department of Administration, replied that they are training classes for the office personnel.
E-710 Replacement Equipment – Page ADMIN-34
Mr. Chapman noted that the Printing Office Equipment Purchase account closed April 9, 2001 with the same technical adjustments to depreciation expense and reserves recommended in this closing document. He asked whether the subcommittee wishes to approve the purchase of replacement software and additional depreciation expense associated with the replacement equipment in the Equipment Purchase account.
Mr. Beers asked whether decision unit E-710 is for the printing staff, and Mr. Corbit responded that it is.
Mrs. Chowning asked Mr. Bailey whether his division agrees with the Letter of Intent regarding capital improvement projects (CIP), consistent with other self‑funded agencies, for repayment of the state funds. Mr. Bailey stated that it does.
ASSEMBLYMAN PARKS MOVED TO CLOSE BUDGET 741-1330 WITH THE EXCEPTION OF DECISION UNIT M-200, AND WITH ADJUSTMENTS RECOMMENDED BY THE STAFF.
SENATOR JACOBSEN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR O’DONNELL AND ASSEMBLYWOMAN GIUNCHIGLIANI WERE ABSENT FOR THE VOTE.)
* * * * *
M-200 Demographics/Caseload Changes – Page ADMIN-32
Mr. Chapman reviewed the recommendations for decision unit M-200 on page 9 of Closing List 4 (Exhibit C).He asked whether the subcommittee wishes to approve the opening of the Las Vegas Quick-Print office as modified by the Budget Office, or to deny Module M‑200 and recommend the State Printing Division submit a work program change during the interim with a revised business plan when building facilities have been identified and revenue projections confirmed.
Mrs. Chowning asked whether the recommended amounts of $154,079 and $154,210 are sufficient to handle a possible increase in the lease amount. She also inquired whether the projection of 600,000 copies per month is realistic and achievable. She stated that she feels the state should continue to step forward in this direction, noting that it would be best if the office could be secured in the Grant Sawyer State Office Building because it would be much more convenient and would make it easier for agencies to use the Quick Print. She stated that, with the increased cost for space, the committee needs direction from the division.
Mr. Bailey stated that the division feels confident it can accomplish this. He pointed out that discussions are still ongoing with buildings and grounds about obtaining the space in the Grant Sawyer State Office Building. He said that until three months ago the division believed it had the space. He noted that the space in question is a conference room and he understands that there is now much more use of that conference room than previously. He said more outside conferences are being held in that room.
Mr. Bailey pointed out that there is other space to consider at this time. He said there is a 600 square foot space available, but he hopes something else becomes available because the division needs more space than that. Mr. Bailey said he had talked to the administrator on April 19 and was assured that space is still being sought in that facility.
Mr. Bailey explained that if the division were to go outside the building there is space available relatively close to the Sawyer building. He said they would like to look at space between the Sawyer building and the Bradley building so they can serve both buildings. He indicated one of the concerns that has arisen is that if the print shop is not located in the Sawyer building the agencies in the building would have to go outside. He pointed out that those agencies are already going out of the building for that service.
Mr. Bailey stated that he feels the division must open the printing facility in Las Vegas to help the agencies cut their costs. He explained that a lot of vendors in Las Vegas know there are no state printing facilities in the city and have raised their prices. He said the State Printing Division knows it can be competitive and he wants to be able to give the agencies the best buy.
Mr. Bailey stated that his preference for location is between the two buildings so the agencies can travel less to get to the printing facilities. He pointed out that some of the agencies now travel considerable distances for printing services. He indicated the cost of space can be handled if the division is required to locate outside the state office building. He stated that the division feels comfortable that its sales will grow rapidly in Las Vegas.
Mr. Bailey said 600,000 copies per month is reasonable. He noted his research shows the agencies are currently going outside for between 550,000 and 600,000 copies a month. He said the division will have to advertise and be competitive to capture that market. He explained that the travel funds included in the budget are for sales work.
Mr. Bailey indicated that the division has already talked to state staff in the Sawyer and Bradley buildings. He stated that all the agencies there have encouraged the State Printing Division to do this because they feel it would provide a good service. He pointed out that they are already pleased with the work that is sent to the printing shop in northern Nevada, so it has made for a good relationship with all those agencies.
Mrs. Chowning asked what would happen if the amount indicated in the budget does not turn out to be enough. She noted that the amount previously authorized was about $100,000 more than this amount.
Mr. Bailey said that it is like all businesses; if they fail at the operation they will have to step back and review it and find another way. He expressed his belief that the division must make this successful. He stated that, if it is a matter of going back to the budget office and redefining the parameters of the money, they would have to do that, and that would involve coming back to the Interim Finance Committee (IFC).
Mr. Beers asked whether there is potential revenue for the southern shop from the public. He said he believes there are people going into the building for legislative hearings who want 19 copies rather than the one they brought with them.
Mr. Bailey stated that they have to be careful when they deal with the public because it makes the division competitive with private enterprise, and they get upset with that. He said that in some cases the division does make copies for private individuals that are going to hearings and the division charges those individuals. He said they are usually charged 5 cents a copy, which is about 2 cents higher than what is charged to the state agencies.
Mr. Bailey said the division is also hoping to pick up quite a bit of work from the University of Nevada, Las Vegas, (UNLV) because the division is presently getting very little of the university system’s work, both in the North and in the South. He stated that they are going to aggressively go after that business.
Senator Jacobsen said there has been considerable talk of the highway patrol moving out of the Sawyer building and asked whether that would provide space for the print shop. Mr. Bailey replied that he knows they are moving out of that building and it may be available to the division. He pointed out that there is a lot of activity going on in the Sawyer building involving moving in and moving out, and the printing division is hoping to find some available space to occupy.
SENATOR JACOBSEN MOVED TO APPROVE DECISION UNIT M-200 OF BUDGET 741-1330.
ASSEMBLYMAN PARKS SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR O’DONNELL AND ASSEMBLYWOMAN GIUNCHIGLIANI WERE ABSENT FOR THE VOTE.)
* * * * *
Mrs. Chowning asked what painting was needed on the state printing office. Mr. Bailey pointed out that there are a lot of fractures in the casted concrete that is breaking down and falling off the building. He said the painting is all chipped off around the building and is visible when one is close to the building. He stated that he is also afraid of injury, particularly over the entry where there is a lot of bad concrete over the doorway.
Motor Pool – Budget Page ADMIN-39 (Volume 1)
Budget Account 711-1354
Mr. Chapman read the overview, technical adjustments, and decision items outlined on pages 10 through 12 of Closing List 4 (Exhibit C). He stated the closing document reflects the Budget Division recommendation to increase the mileage rate 1.5 cents, which results in an increase of 3.7 percent in rental revenues. He requested approval to adjust revenue accordingly. He also requested approval for technical adjustments in depreciation expenses and the revised purchase price of the file server.
Mr. Chapman said the staff requests authority to make technical changes necessary upon the final closings for the Administrative Services Division and the Director’s Office accounts.
M-200 Demographics/Caseload Changes – Page ADMIN-41
Mr. Chapman asked whether the subcommittee wishes to approve Module M‑200 for additional operating and depreciation costs for 102 new vehicles. He added that staff requests authority to make technical changes to M-200 based upon final approval of A.B. 523.
ASSEMBLY BILL 523: Makes appropriations to Motor Pool Division of Department of Administration and Investigation Division of Department of Motor Vehicles and Public Safety for purchase of additional vehicles. (BDR S-1357)
Mr. Chapman stated that if Capital Improvement Project 01-C4 is approved, the subcommittee may wish to recommend issuing a Letter of Intent requiring Motor Pool to include repayment of state funds utilized to fund the actual cost of the new facility in the agency’s first budget submittal following completion of the project.
Senator Jacobsen asked for an update on the construction of the motor pool facility in Las Vegas.
Frank Revell, Chief, State Motor Pool, Department of Administration, replied that at this time the design of the building has been completed, and some of the civil engineering work is done. As far as the site is concerned, he said, they have determined all the utility lines and entries and exits that are required. The project is going forth, he added.
Mr. Revell explained that it is an in-house project within the State Public Works Board. He said he had had a meeting with UNLV two weeks before this meeting and ironed out some details. He said he had also met with the Clark County Fire Department to get minor details worked out. He stated that the architect had informed them they are ahead on the time frame and under budget at this time.
Senator Jacobsen said the reason he asked the question is that there is a new manager of the State Public Works Board, so it would behoove Mr. Revell’s department to keep on top of the project.
E-225 Reward More Efficient Operation – Page ADMIN-42
Mr. Chapman asked whether the subcommittee wishes to approve the use of reserve funds to conduct a study to utilize private vehicles in the Reno and Las Vegas urban areas as recommended in The Executive Budget, or to modify the scope of the study to consider privatizing all Motor Pool operations.
Mrs. Chowning stated she believes that if the building is going to be constructed, there is no need to spend $50,000 for a consultant to study the feasibility of using private rental agencies. She suggested the committee approve everything with the exception of E-225.
Mr. Revell stated that the $50,000 was originally budgeted as a result of the Governor’s fundamental review process to study the feasibility of privatizing the daily rental functions in Reno and Las Vegas. He said that even if that was done, there are still over 300 vehicles in Las Vegas and well over 100 in Reno that the motor pool needs to service and maintain. He noted the agency has looked into this informally and determined that the State Motor Pool can still do this for much less cost. He pointed out the one thing he would encourage doing is conducting a rate study to determine, within the framework of the Governor’s fundamental review, how competitive motor pool’s rates are and whether there should be an increase or decrease in rates. He said that would depend on such things as the incremental cost of alternative fuel vehicles and the payback on the new building.
Mr. Revell pointed out there are a couple of programs for such studies the motor pool agency has discovered since this budget was developed. He said one of the major consultants in the area has a software program that would allow the study to be done basically in-house using their software. He stated that cost would be about 10 percent of the cost to have a consultant do the study. He said that, if the committee should decide not to fund that study, motor pool would possibly be able to come back in the interim and ask for authority to utilize between $5,000 and $7,000 to do the in-house study.
Mrs. Chowning said that makes a lot more sense to her. She also said it sounds as if Mr. Revell has already accomplished a lot of what the $50,000 study would produce anyway. She suggested the better decision would be to not fund the study, but give State Motor Pool the authority to come back and ask for the in‑house rate study when all of the information is available.
Mr. Beers asked whether it would be feasible to just reduce the amount of the study to $5,000 to $7,000. Mrs. Chowning agreed.
Mr. Beers noted that the motor pool currently owns a version of Fleet Anywhere software that handles up to 1,000 vehicles. He asked whether $28,800 is the fee to accomplish modifications to the software, increasing capacity to 1,500 vehicles and implementing a fuel management system.
Mr. Revel replied that is the case. He said the agency needs to increase its database capacity. He pointed out that when they originally checked out the software they did so for 1,000 vehicles, but they found out that in their billing process they have to add in the vehicles they work on for other agencies into their computer system in order to bill them. That, he explained, ran them over capacity. He added that they have a server but it is too small to accommodate the increase.
Mr. Beers noted the $28,000 is for expansion of the file server and to modify the software. He asked whether that includes training for staff.
Mr. Revell replied that the staff has already been trained. He said this request is strictly a software capacity upgrade. He stated that the fuel management system has an interface with the same program motor pool uses and it will be a simple matter of plugging in a disk and hitting a button once a month and it will automatically download all of the fuel data into the database.
Mr. Beers stated that will be good.
Senator Jacobsen indicated he is pleased with the service motor pool offers.
Mrs. Chowning agreed, and added that the maintenance of the vehicles can be counted upon. She recalled that Senator Raggio had gotten stuck when he had to attend one of the Governor’s meetings and his rental car would not start. She noted that kind of thing possibly happens with the motor pool, but she does not think it happens as often. She expressed appreciation for the comfort level afforded by the motor pool. She said she also suspects there are not enough rental cars to go around anyway.
ASSEMBLYMAN PARKS MOVED TO CLOSE BUDGET 711-1354 WITH ADJUSTMENTS RECOMMENDED BY THE STAFF, AND INCLUDING THE AUTHORITY TO CONDUCT THE RATE STUDY AS INDICATED IN DECISION UNIT E-225 TO A MAXIMUM COST OF $7,000.
SENATOR JACOBSEN SECONDED THE MOTION.
THE MOTION CARRIED. (ASSEMBLYWOMAN GIUNCHIGLIANI WAS ABSENT FOR THE VOTE.)
* * * * *
Motor Pool Vehicle Purchase – Budget Page ADMIN-45 (Volume 1)
Budget Account 711-1356
Mr. Chapman reviewed the technical adjustment and decision items outlined on pages 13 and 14 of Closing List 4 (Exhibit C). He recommended that depreciation expense be adjusted from a six-year life to an 8-year life consistent with the vehicle replacement standard of eight years or 80,000 miles.
M-200 Demographics/Caseload Changes – Page ADMIN-45
He stated the staff requests authority to make technical changes to M-200 based upon final approval of Assembly Bill (A.B.) 523.
ASSEMBLYMAN PARKS MOVED TO CLOSE BUDGET 711-1356 AS RECOMMENDED BY THE GOVERNOR WITH ADJUSTMENTS RECOMMENDED BY THE STAFF.
ASSEMBLYWOMAN LESLIE SECONDED THE MOTION.
THE MOTION CARRIED. (ASSEMBLYWOMAN GIUNCHIGLIANI WAS ABSENT FOR THE VOTE.)
* * * * *
Purchasing – Budget Page ADMIN-48 (Volume 1)
Budget Account 718-1358
Mr. Chapman reviewed the overview, technical adjustments, and decision units outlined on pages 15 through 17 of Closing List 4 (Exhibit C). He said staff requests authority to make technical changes in computer prices and in cost allocation amounts necessary based upon the final budget closings for the Administrative Services Division and the Director’s Office accounts. He said staff also requests authority to make technical adjustments for building rent if the Employees Insurance Company of Nevada (EICON) building acquisition is approved.
Senator Jacobsen stated that over the years he has been concerned about the equipment that is sitting around throughout the state. He recalled that during the last session he had asked whether an inventory list is kept. He said in his traveling around he sees things that have been sitting around for a number of years. He gave as an example a pile of discarded guardrail that he was able to get from the Nevada Department of Transportation (NDOT) for the wild horse program. He suggested it would be good to keep a running list of what is available. He pointed out that volunteer fire departments survive “by guess and by golly.”
Bill Moell, Chief, Purchasing Division, Department of Administration, stated that his division has to be careful not to identify what may be one agency’s junk and what could be another agency’s treasure. He said they have noted, particularly in rural Nevada, the volunteer fire departments and other agencies “scour the bone yards” of agencies like NDOT on a fairly regular basis. He added that forestry is also very good at that. He stated that, while the division understands that and works hard to connect customers with excess property, it is also up to the state agency to tell the Purchasing Division that it is excess property. That, he claimed, is the difficulty in keeping a list.
Mr. Moell stated that the division keeps an inventory list, but does not make the determination of what is excess. He also said that they host a list-serve page where purchasing staff from around the state can communicate with each other privately through a password-protected site. He indicated that a lot of excess equipment is distributed that way. He said it also allows people to ask for things they need.
Senator O’Donnell pointed out that the legislators are having a difficult time coordinating schedules to go back and forth to Las Vegas. He asked whether the Purchasing Division could provide an update regarding the contract with Southwest Airlines. He asked whether the state is locked into contracting with them for another two years.
Mr. Moell replied that the state contracts with Southwest Airlines on a year-to-year basis. He stated there is no competition. He added that his division has met with other airlines that are looking at the service between Reno and Las Vegas, and noted that Southwest Airlines has no problem with the state using a secondary airline for overflow. He pointed out that at this time his division is not in control of that. He said they will explore every opportunity that presents itself, and they have been able to maintain competitive pricing when there was no leverage to expect such a thing. He stated that Southwest Airlines has been very cooperative in the state’s attempts to get a secondary vendor into that market.
Senator O’Donnell asked whether the law provides for exclusivity, or is it a determination made in Mr. Moell’s office.
Mr. Moell replied that the exclusivity is based primarily on the fact there is only one airline that is making any flights between Reno and Las Vegas. He explained that the last time it was bid it was done with exclusive pricing and as a multiple award. He said in the time before the last contract was negotiated the division had also looked at Reno Air and there was a $20 incremental cost if the state went with a multiple award. He explained that with over 71,000 increments that becomes a lot of money. For that reason, he explained, the division had decided to go with a single award. He stated that it was an option chosen by the division.
Senator O’Donnell noted the incremental costs would have totaled approximately $1.4 million. Mr. Moell agreed.
Senator O’Donnell said it is curious to him how much that decision cost the city of Reno in terms of air flights because now there is only one carrier. Mr. Moell replied that the division tried to include cities and counties in the budget and that was a specific exception that was taken by Southwest Airlines.
Senator O’Donnell asked for clarification that Southwest Airlines would not accept the cities and counties, and Mr. Moell said that was true. Mr. Moell pointed out that the division’s first priority is to ensure that they have competitive pricing for state agencies and that is the way the division elected to go. He reiterated that they have no leverage with an airline that is the only airline in town.
Senator O’Donnell stated that the case he is making is that by the state’s not requesting the contracts be signed with no exclusivity, this in fact gave exclusivity to the airlines; thereby destroying the market. He suggested the state had destroyed the ability for two of three carriers to come in because all of the state employees have to fly one airline, according to the contract. He pointed out that when individuals are allowed to split up and fly multiple airlines, then the state is essentially subsidizing two or three different airlines instead of allowing one airline to get all of the passengers. He suggested that in such a state subsidy there may just be enough incentive for a second and third carrier to come in and supply passengers and seats to the city of Reno. He suggested that in very shortsightedness the state may have done the worst thing they could have done for the state, rather than get the best deal for the state.
Senator O’Donnell also pointed out that if the one carrier decides “tomorrow” to pull out, the state will have nothing. He stated he would be very concerned about the state’s Purchasing Division signing an exclusive contract for air service between Reno and Las Vegas in the future. He acknowledged it will cost the state more, but pointed out that it is costing more already in terms of the number of seats and passengers to the city of Reno.
ASSEMBLYMAN BEERS MOVED TO CLOSE BUDGET 718-1358 WITH ADJUSTMENTS RECOMMENDED BY THE STAFF.
ASSEMBLYWOMAN LESLIE SECONDED THE MOTION.
THE MOTION CARRIED.
* * * * *
Senator Jacobsen announced that Douglas County has a proposal before it to start a charter service out of the Minden airport twice a day. He indicated that the proposal is for a 25-passenger airplane.
Senator O’Donnell asked whether the state employees can use that service since the state has an exclusive contract with Southwest Airlines. Mr. Moell stated that the state has a good contract with Southwest Airlines and his division is exploring every opportunity to get more service.
Dept of Administration – Hearings Division – Budget Page ADMIN-109 (Volume 1)
Budget Account 101-1015
Mr. Chapman pointed out that there are no General Funds in this account. He stated that it is funded through the Workers’ Compensation and Safety Fund. He reviewed the overview, technical adjustments, and decision units outlined on pages 18 and 19 of Closing List 4 (Exhibit C). He said staff requests authority to make technical changes in computer prices and in cost allocation amounts necessary based upon the final budget closings for the Administrative Services Division and the Director’s Office accounts.
M-201 Demographics Caseload Changes – Page ADMIN-110
Mr. Chapman asked whether the subcommittee wishes to approve funding for a reserve in this budget account and the elimination of the separate Workers’ Compensation Hearings Reserve as recommended in The Executive Budget.
E-710 Replacement Equipment – Page ADMIN-112
E-720 New Equipment – Page ADMIN-113
Mr. Chapman asked whether the subcommittee wishes to approve the replacement equipment recommended in Module E-710 and the four new printers recommended in E-720 with the technical adjustments in computer prices recommended by the staff.
E-806 Unclassified Pay Changes – Page ADMIN-113
Mr. Chapman asked whether the subcommittee wishes to approve the reclassification of a Hearing Officer position to an Operations Officer position as recommended in The Executive Budget.
Ms. Giunchigliani asked for more information about the reserve funding, noting that it has not been used for a while.
Mr. Chapman said that is correct. He explained there has been a separate reserve account that has not been utilized by the Hearings Division. He stated there is currently $115,000 in FY 2001 set aside for a software program. He said the Hearings Division is in the process of securing software and putting out a bid for a service provider.
Ms. Giunchigliani asked, if the reserve account were eliminated, where the money would be held until that contract was completed. Mr. Chapman replied that the reserve account is still open until the end of the current fiscal year.
ASSEMBLYWOMAN CHOWNING MOVED TO CLOSE BUDGET 101-1015 AS RECOMMENDED BY THE GOVERNOR WITH ADJUSTMENTS RECOMMENDED BY THE STAFF.
ASSEMBLYWOMAN GIUNCHIGLIANI SECONDED THE MOTION.
THE MOTION CARRIED.
* * * * *
Victims of Crime – Budget Page ADMIN-115 (Volume 1)
Budget Account 287-4895
Mr. Chapman reviewed the overview, technical adjustments, and decision units outlined on pages 20 and 21 of Closing List 4 (Exhibit C). He requested authority to make technical changes in computer prices and in cost-allocation amounts necessary based upon the final budget closings for the Administrative Services Division and the Director’s Office accounts. He also requested approval to reduce E-710 to eliminate costs of computer equipment for a position to be transferred from this account.
E-710 Replacement Equipment – Page ADMIN-118
E-720 New Equipment – Page ADMIN-118
Mr. Chapman asked whether the subcommittee wishes to approve the replacement of seven desktop computers and a file server with the technical adjustments recommended by staff. He also asked whether the subcommittee wishes to approve the new desktop personal computer (PC) for the Reno office and two new high-speed printers for the Las Vegas office recommended in The Executive Budget with the technical adjustments recommended by staff.
E-902 Transfer to B/A 1371 – Page ADMIN-118
Mr. Chapman asked whether the subcommittee wishes to approve the transfer of the Accounting Clerk III position to the Administrative Services Division as recommended by the Governor.
Mr. Chapman also stated that the subcommittee may wish to recommend issuing a Letter of Intent for the Victims of Crime Program to identify sources and amounts of funding that may be available to provide assistance to programs such as Attorney General’s Domestic Violence Council and the Nevada Network Against Domestic Violence. He added that the subcommittee may also wish to have the Victims of Crime Program provide periodic progress reports to the IFC.
Senator O’Donnell pointed out to the committee that this budget is not General Fund.
ASSEMBLYWOMAN CHOWNING MOVED TO CLOSE BUDGET 287-4895 WITH ADJUSTMENTS RECOMMENDED BY THE STAFF, AND WITH A LETTER OF INTENT DIRECTING THE VICTIMS OF CRIME PROGRAM TO PROVIDE ASSISTANCE TO THE ATTORNEY GENERAL’S DOMESTIC VIOLENCE COUNCIL AND THE NEVADA NETWORK AGAINST DOMESTIC VIOLENCE FOR PROGRAMS TO RAISE AWARENESS REGARDING DOMESTIC VIOLENCE.
ASSEMBLYWOMAN LESLIE SECONDED THE MOTION
THE MOTION CARRIED.
* * * * *
BUDGET CLOSINGS – DEPARTMENT OF BUSINESS & INDUSTRY
B&I, Business And Industry Administration – Budget Page B&I – 1 (Volume 2)
Budget Account 101-4681
Rick Combs, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, pointed out that there was an attempt to close this account on April 10, 2001, but it could not be accomplished for lack of a quorum. He stated that both sides had agreed to close this budget as the staff had recommended. He pointed out that the staff recommendations are outlined on pages 1 through 3 of Closing List 4 (Exhibit C).
ASSEMBLYWOMAN CHOWNING MOVED TO CLOSE BUDGET 101-4681 WITH ADJUSTMENTS RECOMMENDED BY THE STAFF.
ASSEMBLYMAN HETTRICK SECONDED THE MOTION.
THE MOTIONS CARRIED.
* * * * *
B&I, Industrial Development Bonds – Budget Page B&I – 6 (Volume 2)
Budget Account 101-4683
Mr. Combs stated that this budget was not closed for the same reasons as Budget Account 101-4681. He stated that there has been one adjustment since the hearing on April 10. He stated that on April 12 he received a letter from the Department of Business and Industry which required Technical Adjustment 3 on page 5 of Closing List 4 (Exhibit C). The adjustment would provide for the transfer of $50,000 in each year of the biennium from this account to the administration account (BA 101-4681) from the reserve, rather than from fees provided by the Monorail Corporation. The agency will begin receiving $50,000 each year from the Monorail Corporation beginning in FY 2004.
ASSEMBLYWOMAN GIUNCHIGLIANI MOVED TO CLOSE BUDGET 101-4683 WITH ADJUSTMENTS RECOMMENDED BY THE STAFF.
ASSEMBLYWOMAN CHOWNING SECONDED THE MOTION.
THE MOTION CARRIED.
* * * * *
BUDGET CLOSINGS – DEPARTMENT OF AGRICULTURE
Paul J. Iverson, Director, State Department of Agriculture, stated that he has had numerous discussions with legislators since the last budget hearing and his department is in agreement with the legislative staff regarding the consolidation of budgets. He distributed a handout (Exhibit D) that shows the budget structure before and after the reorganization. He stated that the recommendation is primarily for consolidation of only two small budgets on which he believes they have consensus from the Legislative Counsel Bureau (LCB) staff. That, he explained, will settle a lot of the problems and concerns the department has had.
Mr. Iverson referred to page 2 of Exhibit D and stated that the department has conceded to move forward with this proposal, but indicated he has full intentions of coming back to the Legislature with a new proposal next session. He stated that the department does not feel it is ready to do that yet.
Mr. Iverson pointed out that the State Board of Agriculture has a policy with the department that two programs, pest control operators and nursery, should be funded 50 percent with the fee reserves and 50 percent through General Fund appropriations. He said the department went to the industry with a proposal to increase fees. He stated that some of them were increased 500 percent and the industry indicated they were willing to increase fees, but they would like to “take the program from a ‘C’ program to a ‘B’ or ‘A’ program.” Page 2 of Exhibit D, he explained, shows what they were trying to do.
Mr. Iverson stated that there is still a problem with this proposal. He said that in the pest control program the state presently pays $112,000, or 36 percent. He pointed out that pest control companies increased their fees to $198,000. He said the department’s expenses are about $311,000 with a $29,000 reserve. He stated that the department was hoping that they could implement the previously mentioned funding policy and return 50 percent of that to the state and keep 50 percent in a reserve that could be carried over to the next year. That, he said, would allow them the opportunity to continue to build their reserve so that they could some day have an “A program” for this industry.
Mr. Iverson showed an 8-minute video about the horse program at the prison. He said it would give them an idea of how important that program is. He stated that the tape has been broadcast nationwide and in Canada.
AGRI, Plant Industry – Budget Page AGRI-8 (Volume 1)
Budget Account 101-4540
Mr. Combs reviewed the technical adjustments and budget closing issues outlined on pages 23 through 25 of Closing List 4 (Exhibit C). He requested approval to reallocate salary costs to ensure all available sources of revenue are contributing appropriately. He also requested approval to make balancing adjustments in transfer decision units.
Mr. Combs asked whether the subcommittee wishes to approve the continuation of two new positions that were approved by the IFC at its December 4, 2000 meeting. He stated that, based on the recommendation to fund the positions with fee revenue, the recommendation to continue the positions appears reasonable.
Mr. Combs pointed out that if the reserve in this account is not eliminated and used to reduce the General Fund appropriation for this account, a new precedent would be established to authorize this type of arrangement for other budget accounts. He also stated that the department has not provided specific reasons for its determination that equally dividing the costs of the programs between General Funds and fee revenues is appropriate. He said the subcommittee will need to determine whether to eliminate the reserve for this account.
E-175 Increase Non-Gaming Business – Page AGRI-12
Mr. Combs asked whether the subcommittee wishes to approve $5,000 in each year of the biennium to continue a program to address emergency situations that result from infestations of Africanized honeybees or imported fire ants as recommended in decision unit E-175. He stated that the department has agreed that there are no restrictions on the use of the reserve funds and that they may be expended for the purpose of addressing emergency situations that result from infestations of Africanized honeybees or imported fire ants.
E-250 Eliminate Duplicate Effort – Page AGRI-12
E-902 Transfer From B/A 4549 – Page AGRI-13
E-906 Transfer M-800 from B/A 4549 – Page AGRI-14
Mr. Combs stated that decision unit E-250 and decision units E-901 through E-920 transfer the revenues and expenditures of the various accounts that The Executive Budget recommends combining with this account. He said that, based on the limited advantages of combining the other agriculture accounts with this account, Fiscal Analysis Division staff recommends denying E-250 and all transfer decision units E-901 through E-920, except E-902 and E-906. He said it appears reasonable to combine the Apiary Inspection account with the Plant Industry account because the fee revenue generated by performing an apiary inspection should always equal the expenditures incurred in performing the inspection. He added that if an inspection were requested, a position funded in the Plant Industry would be required to perform the inspection.
Senator O’Donnell asked whether there is an approximately $400,000 saving in General Funds. Mr. Combs replied that the savings would probably be more than $500,000 from just eliminating the reserve. He stated that he also made technical adjustments that would reduce some General Fund as well as the reduction of $10,000 in the apiary inspection transfer.
Senator O’Donnell asked whether the reserve is in this budget. Mr. Combs replied that it is. He stated that the summary in the budget indicates a huge reserve. He explained the reserve in the base budget could be attributed to fee increases as well as normal increases in the number of participants. He said the reserve increase indicated at the end in the summary is attributable to that plus the sum of the reserves in all of the accounts that were recommended to be combined into this account.
Senator O’Donnell asked who pays the fees. Mr. Combs responded that the fees that were increased were primarily from the pest control operators, landscaping companies, and nurseries that are inspected.
Mr. Hettrick recalled a time when this department had serious fiscal problems and was struggling to pay the bills. He pointed out that this situation has been turned around to where the department can pay the bills and even has people stepping up and offering to pay increased fees to get a decent program. He said he feels they have made some strides and expressed his concern that they would be punished for that. He stated he would like to see the department have the opportunity to use the fee increases that people have offered to pay to improve the programs. He indicated he feels the same way about the fact that the accounts were combined and money was saved, and the department was punished because they have reserves in each account when they were combined. Mr. Hettrick pointed out that people in government are continuously told to save money and every time they save money they are punished for it.
He acknowledged that the present cuts are necessary, but he reiterated that he believes the department needs the opportunity to work with the fee generated reserve that they have to improve their programs.
Senator O’Donnell stated that he is very concerned about noxious weed control. He pointed out that there are over 2,000 acres in the state of Nevada that are infested with this problem. He stated the only reason the Governor decided to approve the fee increase is that the people in the industry decided they wanted to increase the stature and ability of this organization to function properly. He stated that is admirable. He noted that to take $500,000 and pull it back out of the fees and put it into the General Fund because money is needed is also admirable.
However, Senator O’Donnell noted, the people who stepped up to the table and said they were willing to increase the fees did not say they wanted the fee revenue to supplant state funds. He stated they did that primarily because they wanted this program to succeed. He said he is not willing at this point to acquiesce to the status quo.
Senator O’Donnell noted that Mr. Iverson had used the words “we have conceded” in his presentation, and he asked to whom he had conceded.
Mr. Iverson stated that he feels as though he has battled this situation as much as he can. He said he has had good meetings with legislative staff and he understands that doing something like what he proposed is a precedent-setting type of program, and he understands that it may open the doors for other agencies as far as changing the way state government does business.
Senator O’Donnell asked Mr. Iverson to clarify “what all that means.” Mr. Iverson said that means that “this is a way of thinking out of the box and [I] am not so sure [we] are ready to move out of the box.” He stated that Senator O’Donnell was ”absolutely right,” and pointed out that the industry paid the fees to the tune of a 500 percent increase, and they want a better program. He maintained that the department has not provided them with a good program and they are willing to pay for a better program.
Mr. Iverson explained that the department is looking at rewriting textbooks and study manuals. He stated that they also have a continuing education program. He pointed out that these are all things the industry wanted to make sure they have safe pest control company operations in the state.
Senator O’Donnell asked what kinds of programs the department has to deal with the noxious weed problem. He pointed out that it is proposed to take some reserve money out of this budget to reduce the General Fund necessary to fund this budget. He indicated, however, that he is highly concerned about the noxious weeds in Tonopah and Washoe County.
Mr. Iverson replied that the department has a lot of activities dealing with noxious weeds. He said they have a noxious weed specialist now who is working with all of the counties. He said they have developed a coordinated state noxious weed plan and they are trying to figure out a way to bring in as many agencies as they can to address this problem.
Mr. Iverson explained that noxious weeds are not just a livestock issue. He pointed out that it is a wildlife habitat and natural resource issue that affects everyone, not just the rural counties. He said the department is fighting this problem on every front possible. He indicated they have a grant through NDOT to spray roads. He said they also work with the conservation districts to get them to pitch in to help fight the problem. He added that they also work with the counties. He pointed out that everyone in rural Nevada understands there is a major issue with noxious weeds. He explained that because noxious weeds grow at 15 percent a year in coverage it is a problem that must to be aggressively fought.
Mr. Iverson explained that they are not just trying to eradicate these weeds, but they are trying to keep them out of the state. He stated that noxious weeds have to be fought the same way a wildfire is fought. When there is a small infestation it must be wiped out before it gets large, he explained. He added that when it is a large infestation it must be controlled and kept manageable. He said it is an ongoing fight, with every single agency that deals with natural resources in the state involved.
Mr. Iverson stated that we are very fortunate in this state that an aggressive action has been taken on this problem. He pointed out that a lot of states have lost the battle. Nevada has not lost the battle, he said, except with cheat grass. Other than that, he stated, we can continue to fight.
Mrs. Chowning asked for clarification that the noxious weed problem is being covered, but not with these fees. She pointed out that these fees are imposed to control infestations of rats and ants and other infestations.
Mr. Iverson replied that the fees being discussed are primarily for inspections of nurseries and educational programs for nurseries. He pointed out that the nurseries want to be inspected. He said they want to make sure the stock and the products they are selling are good and safe.
Mr. Iverson specified that it is the pest control companies that come into homes, hospitals, and casinos and spray. He stated that they wanted a tighter program.
Mrs. Chowning noted that program is in this budget. She acknowledged that there could be a larger, more expanded program, but the committee does not have any details regarding a larger program. She pointed out that the department would develop that as they go along. She recalled that they had tasked the department with going to the industries, and stated they had done an excellent job. She noted that the industries have cooperated. She said it is her understanding that Mr. Iverson would be willing again to come back with details of a more expanded program and be able to present the plan again for a program that was funded 50 percent with General Fund revenues. She pointed out that approving the budget as recommended by the Governor would be establishing a huge precedent because every other agency would want to come and have the same opportunity afforded to them. She stated that the General Fund is in desperate need of help at this time, and the committee is faced with the decision of eliminating the reserve and reducing the General Fund appropriation. She explained that does not mean the needs are not going to be met. She acknowledged there could be more inspections, but that program enhancement has not been explained.
Mr. Hettrick stated that he recognizes the need and the precedent-setting aspect of this. He said he believes what the committee needs to do is go ahead on the recommendation as it stands and that the money be reverted to the General Fund. He said he would like to see the department given the opportunity to return to the IFC if they expand the program and bring the details and justification during the interim.
ASSEMBLYMAN HETTRICK MOVED TO CLOSE BUDGET 101-4540 WITH ADJUSTMENTS RECOMMENDED BY THE STAFF, AND WITH THE OPPORTUNITY FOR THE DEPARTMENT OF AGRICULTURE TO COME BACK TO THE INTERIM FINANCE COMMITTEE AS NECESSARY.
ASSEMBLYWOMAN GIUNCHIGLIANI SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR NEAL WAS ABSENT FOR THE VOTE.)
* * * * *
AGRI, Gas Pollution Standards – Budget Page AGRI-28 (Volume 1)
Budget Account 101-4537
Mr. Combs requested approval to make technical adjustments in travel and operating costs based on information received from the agency.
M-200 Demographics/Caseload Changes – Page AGRI-29
Mr. Combs asked whether the subcommittee wishes to approve additional operating supplies and repair costs that will enable the department to analyze all of the fuel samples it expects to collect for analysis during the 2001-2003 biennium as recommended in decision unit M-200. He stated that, based on reduced costs, the recommendation appears reasonable.
E-375 Environmental Policies & Programs – Page AGRI-31
Mr. Combs asked whether the subcommittee wishes to approve funding for a chemist to attend the American Chemical Society meeting in each year of the biennium and for a chemist to receive training in the use of the Atomic Emission Detector as recommended in decision unit E-375 and revised by staff. He stated that, based on the reduced costs for the American Chemical Society meeting and the elimination of the Atomic Emission Detector Training in FY 2003, the recommendation appears reasonable.
E-710 Replacement Equipment – Page AGRI-31
Mr. Combs asked whether the subcommittee wishes to approve $8,400 in FY 2002 for the replacement of 14 field test kits as recommended in decision unit E-710. He said the recommendation appears reasonable.
E-720 New Equipment – Page AGRI-31
Mr. Combs asked whether the subcommittee wishes to approve $99,980 in FY 2002 to purchase new equipment for the Reno and Las Vegas petroleum laboratories as recommended in decision unit E-720. He said that if the subcommittee wishes to approve the purchase of the minivap testers, the subcommittee may wish to authorize staff to delete the expenditures if the provisions of A.B. 629 are enacted and eliminate the need for the department to test liquefied petroleum gas.
ASSEMBLY BILL 629: Clarifies standards for regulating petroleum products used in internal combustion engines. (BDR 51-543)
Senator O’Donnell stated that the Department of Agriculture is statutorily required to enforce standards related to gasoline used in combustion engines. He asked whether funds received by the department are part of the $5 fee that is charged on the smog certificate.
Mr. Iverson replied that the department develops a budget and applies to the Department of Motor Vehicles and Public Safety (DMV&PS) for funds. He stated that his department is third in line to get money from DMV&PS. He pointed out that his department has two labs, one in Reno and another in Las Vegas. He said his department does all the fuel testing in the state.
Mr. Iverson explained that his department’s responsibility is to set fuel standards. He said they make sure that what goes in the engine is the best to be had and meets national standards. This, he explained, is to ensure that we have the most efficient combustion possible. He stated that they are not responsible for the pollution that comes out of the engine, and explained that is the jurisdiction of the Division of Environmental Protection.
Senator O’Donnell recited that there is a $5 charge on a smog certificate, and DMV&PS gets it first. Then, he noted, they give $1 to the counties in which the smog certificate is needed, Washoe County and Clark County only. He noted that two of the 17 counties are paying the smog certificate fee. Then, he explained, with S.B. 357 the county came in and requested a $6 increase in the smog certificate fee to go for air pollution control.
SENATE BILL 357: Revises provisions governing disbursement of money from pollution control account. (BDR 40-1180)
Senator O’Donnell asked why the counties have to come up with this much money to pay for their own Environmental Protection Agency (EPA) and also pay for the rest of the state’s EPA. He asked why Clark County and Washoe County have to do that. He stated that every time he comes across an air pollution budget he sees that everyone “has their hand in the money” that is generated from Clark and Washoe Counties. He expressed concern about “who is paying for what.”
Ms. Giunchigliani noted that money from this fee also goes to Lake Tahoe.
Senator O’Donnell agreed, noting that last year $3 million went from Clark County and Washoe County to the Tahoe Regional Planning Agency (TRPA). He reiterated that now the counties are wanting to generate over $6 million in Clark County because they did not have the $3 million in reserve that went to Lake Tahoe last time. He stated that he does not think the public in Clark County and Washoe County is intent on funding the rest of the state’s needs. He said he does not think it is Clark County’s or Washoe County’s responsibility to fund the rest of the state’s needs when there are General Funds to do that.
Senator O’Donnell referred to the Department of Agriculture’s needs for air pollution programs. That, he stated, should be General Funds and should not come out of the funds generated from Clark and Washoe Counties. He stated that he does not think there are more than three farms in Clark County.
Mr. Iverson stated that 90 percent of the work the department does in this budget is done in Clark and Washoe Counties. He added that 90 percent of the gas station pumps and diesel pumps are in those counties. He pointed out that this is what the fees are for. He explained that this is to make sure that the fuel sold statewide meets the needs. He stated that his department works very closely with Washoe and Clark Counties, which do the fuel testing for all the counties.
Senator O’Donnell repeated the question, “Why does Clark County want $6 additional to the $16 or $17 fee that gets charged for a smog certificate if the department is going to be doing this testing?”
Mr. Iverson replied that the department has been doing these testings for many years. He reiterated that his department is only responsible for what goes into the engines. He said he thinks the money the counties are looking for is basically to implement programs so we can reduce the pollution that comes out of the cars. He stated that his department can only control the standards of fuels.
Ms. Giunchigliani stated that Senator O’Donnell’s points are very well taken. She stated that it is one of those frustrating sessions in which there is not even the flexibility to look at the General Fund. She asked whether S.B. 357 would impact the $1 that is currently collected to fund this budget, or whether the $6 in question is over and above what is currently collected.
Mr. Iverson replied that the $6 would be “over and above.”
Ms. Giunchigliani concluded that it would not affect what they are trying to do in this budget. But, she stated, the Senator’s point is that down the road it needs to be discussed regarding where those funds are generated and where they are distributed.
Senator O’Donnell noted that, with the law as it is presently written, in addition to the $6 fund from which the counties get $1 more out of the $5 that is generated, they also get to return for grant programs for any money that is available over $500,000. He pointed out that there is a lot of money going to this air pollution program. He expressed concern that it is properly allocated.
ASSEMBLYWOMAN GIUNCHIGLIANI MOVED TO CLOSE BUDGET 101-4537 AS RECOMMENDED BY THE STAFF.
ASSEMBLYWOMAN CHOWNING SECONDED THE MOTION.
Mr. Combs pointed out that Assembly Bill (A.B.) 629 is outstanding and would possibly eliminate the need for the purchase of two minivap testers in this account.
Mr. Combs explained that this has something to do with testing liquefied petroleum gas that is used in motor vehicles. He said the provisions of that bill, if enacted, would result in a savings of about $34,000. He suggested that the committee give authority to take those funds and not transfer them from DMV&PS if A.B. 629 is enacted.
Senator O’Donnell asked whether that would be kept in reserve.
Mr. Combs responded that the reserve that is needed for this account is in the base budget and this decision unit is funded through a transfer from DMV&PS pollution control account. He stated that transfer could be eliminated.
THE MOTION CARRIED. (SENATOR NEAL WAS ABSENT FOR THE VOTE.)
* * * * *
AGRI, Agricultural Registration/Enforcement – Budget Page AGRI-34 (Volume 1)
Budget Account 101-4545
Mr. Combs read the overview, technical adjustment, and budget closing issues as outlined on pages 30 and 31 of Closing List 4 (Exhibit C). He pointed out this account is funded through federal grants and fees. Under a variety of cooperative agreements with the Environmental Protection Agency (EPA), the United States Department of Agriculture (USDA), and other entities for which the agency regulates and inspects the use of pesticides, fertilizers, and antifreeze sold in Nevada.
Mr. Combs asked whether the subcommittee wished to approve increased out-of-state travel funding for fee-funded positions in this account as recommended in decision unit M-200. He said that based on the revisions agreed to by the department, the recommendation appears reasonable.
Mr. Combs said that, based on the limited advantages of the proposal to combine this account with the Plant Industry account (101-4540), staff recommends not approving transfer decision units E-907, E-908, and E-910.
ASSEMBLYWOMAN LESLIE MOVED TO CLOSE BUDGET 101-4545 WITH ADJUSTMENTS RECOMMENDED BY THE STAFF.
ASSEMBLYMAN PARKS SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR NEAL WAS ABSENT FOR THE VOTE.)
* * * * *
Mr. Combs indicated that the next two budgets, 101-4544 and 101-4543, are funded in an unusual manner. He explained that they get revenue from a fee and the persons paying the fee can ask for their money back within the first year. He pointed out that in these budgets no more is spent than the balance forward from the previous year.
AGRI, Garlic & Onion Research – Budget Page AGRI-47 (Volume 1)
Budget Account 101-4544
AGRI, Alfalfa Promotion Account – Budget Page AGRI-73 (Volume 1)
Budget Account 101-4543
Mr. Combs reviewed the technical adjustments and budget closing issues outlined on pages 32, 33 and 36 of Closing List 4 (Exhibit C).
Mr. Combs stated that the balance forward from FY 2001 to FY 2002 in account 101-4544 has been adjusted based on revised projections of the agency. He added that the promotion funds in this budget have been adjusted to provide the division with the authority to award grants equaling the amount of the balance forward from the previous year minus the other expenditures in the account.
Mr. Combs stated that the research and promotion funds in account 101‑4543 have been adjusted to provide the division with the authority to award grants equaling the amount of the balance forward from the previous year minus the other expenditures in the account.
Mr. Combs stated that, based on the similarities of accounts 101‑4544 and 101‑4543, the recommendation to combine these accounts appears reasonable.
Mr. Combs stated that, based on the similarities between these two accounts the request to combine them into one accounts appears reasonable.
ASSEMBLYWOMAN CHOWNING MOVED TO CLOSE BUDGET 101-4544 AND BUDGET 101-4543 AS RECOMMENDED BY THE GOVERNOR AND WITH TECHNICAL ADJUSTMENTS RECOMMENDED BY THE STAFF.
ASSEMBLYWOMAN GIUNCHIGLIANI SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR NEAL WAS ABSENT FOR THE VOTE.)
* * * * *
AGRI, Rural Rehabilitation Trust Fund – Budget Page AGRI-51 (Volume 1)
Budget Account 643-4553
Mr. Combs reviewed the overview, technical adjustments, and budget closing issues outlined on page 34 of Closing List 4 (Exhibit C).
Mr. Combs stated that various revenues and expenditures associated with the department’s mediation program for farmers or ranchers in Nevada were deleted from this account. He said the revenues and expenditures for the mediation program were transferred from this account to the Administration account (Budget Account 101-4554) through work programs approved during the 1999-2001 interim. Although the program was transferred during FY 2002, the expenditures that were incurred in this account prior to the transfer were not deleted from this account in the base budget.
Mr. Combs added that the purchasing assessment was eliminated for this account. He said the latest information provided by the Purchasing Division indicated that there was no assessment to this account and The Executive Budget included a negative assessment in FY 2003.
E-903 Transfer from B/A 4553 – Page AGRI-5
E-904 Transfer M-100 From B/A 4553 – Page AGRI-6
Mr. Combs stated that, based on the limited advantages to combining this account with the administration account, the staff recommends not approving the decision to combine the accounts.
ASSEMBLYWOMAN CHOWNING MOVED TO CLOSE BUDGET 643-4553 WITH ADJUSTMENTS RECOMMENDED BY THE STAFF, AND TO NOT COMBINE THIS ACCOUNT WITH THE ADMINISTRATION ACCOUNT.
ASSEMBLYMAN PARKS SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR NEAL WAS ABSENT FOR THE VOTE.)
* * * * *
AGRI, Apiary Inspection – Budget Page AGRI-64 (Volume 1)
Budget Account 101-4549
Mr. Combs reviewed the technical adjustments and budget closing issues outlined on page 35 of Closing List 4 (Exhibit C). Mr. Combs recommended legal and court expenses and equipment repair expenses be eliminated from this budget because of the reduced scope of the program.
E-902 Transfer to B/A 4540 – Page AGRI-65
E-906 Transfer M800 to B/A 4540 – Page AGRI-65
Mr. Combs indicated that it appears reasonable to combine this account with the Plant Industry account, as recommended by the Governor, because once the reserve category is expended the fee revenue generated by performing an inspection should always equal the expenditures incurred in performing the inspection.
ASSEMBLYMAN HETTRICK MOVED TO CLOSE BUDGET 101-4549 WITH ADJUSTMENTS RECOMMENDED BY THE STAFF.
ASSEMBLYWOMAN CHOWNING SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR NEAL WAS ABSENT FOR THE VOTE.)
* * * * *
AGRI, Noxious Weed & Insect Control – Budget Page AGRI-77 (Volume 1)
Budget Account 101-4552
Mr. Combs reviewed the budget closing issues described on page 37 of Closing List 4 (Exhibit C).
Mr. Combs stated this account provides funds for situations where a landowner does not perform abatement activities in an area that has been declared a public nuisance because of insect pests and noxious weeds.
E-904 Transfer to B/A 4540 – Page AGRI-78
E-905 Transfer M800 to B/A 4540 – Page AGRI-79
Mr. Combs stated that, based on the limited advantages to combining this account with the Plant Industry account as recommended by the Governor, the staff does not recommend approving the decision units E-904 and E-905 to combine the accounts.
SENATOR JACOBSEN MOVED TO CLOSE BUDGET 101-4552 WITH ADJUSTMENTS RECOMMENDED BY THE STAFF.
ASSEMBLYWOMAN CHOWNING SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR NEAL WAS ABSENT FOR THE VOTE.)
* * * * *
AGRI, Predatory Animal & Rodent Control – Budget Page AGRI-80 (Volume 1)
Budget Account 101-4600
Mr. Combs reviewed the base budget adjustments, budget closing issues, and the response to subcommittee requests on pages 38 and 39 of Closing List 4 (Exhibit C).
Mr. Combs stated that the revenues transfer from Clark County has been increased by staff in the amount of $4,344 in FY 2002 and $4,761 in FY 2003 to ensure the funding provided by Clark County is equal to half the costs associated with the new Program Assistant position. Similarly, he added, the transfer from Elko County has been increased by $452 in FY 2002 and decreased by $235 in FY 2003.
M-300 Fringe Benefit Changes – Page AGRI-82
Mr. Combs stated that funding for fringe benefits have been adjusted by staff to allocate the appropriate amount to each of the three revenue sources that support position costs in this account.
M-200 Demographics/Caseload Changes – Page AGRI-81
Mr. Combs asked whether the subcommittee wished to approve $15,552 in FY 2002 and $18,986 in FY 2003 for a new half-time Management Assistant II position as recommended in decision unit M-200. He said the recommendation appears reasonable.
Mr. Combs recalled that the position of Ely District Supervisor is to be changed from a state position to a federal position. He suggested that the subcommittee recommend a Letter of Intent directing the department to ensure the costs for the related contract never exceed the costs to hire a state position to perform the duties of the federal employee. He said the department should be required to demonstrate that the contract with the federal government does not exceed the costs of employing a state employee when it submits its budget request each biennium.
Senator O’Donnell asked Mr. Iverson whether he concurs with the staff’s recommendations. Mr. Iverson replied that he does.
ASSEMBLYWOMAN CHOWNING MOVED TO CLOSE BUDGET 101-4600 WITH ADJUSTMENTS RECOMMENDED BY THE STAFF, INCLUDING THE LETTER OF INTENT DIRECTING THE DEPARTMENT TO ENSURE THAT THE COST FOR THE CONTRACT NEVER EXCEEDS THE COST TO HIRE A STATE EMPLOYEE TO PERFORM THE DUTIES OF THE FEDERAL EMPLOYEE.
ASSEMBLYMAN HETTRICK SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR NEAL WAS ABSENT FOR THE VOTE.)
* * * * *
BUDGET CLOSING – COMMISSION ON MINERAL RESOURCES
Minerals – Budget Page MINERALS-1 (Volume 1)
Budget Account 101-4219
Mr. Combs reviewed the technical adjustment and budget closing issues outlined on pages 40 and 41 of Closing List 4 (Exhibit C).
Mr. Combs stated the transfer from the Minerals reclamation Bond Pool account (B/A 4220) has been increased by staff to reflect the division’s estimate of its actual costs to administer the account.
E-275 Working Environment & Wage – Page MINERALS-4
Mr. Combs asked whether the subcommittee wished to approve $10,264 in FY 2002 and $11,632 in FY 2003 for the costs of moving the division’s Las Vegas office from the Bradley Building in Las Vegas to non state-owned rental space as recommended in E-275. Mr. Combs stated that, based on information provided by the division, the recommendation appears reasonable.
E-350 Service at Level Closest to EPO – MINERALS-4
Mr. Combs asked whether the subcommittee wished to approve $46,405 in FY 2002 and $18,566 in FY 2003 for two summer interns and equipment and operating supplies to secure abandoned mines throughout the state as recommended in decision unit E-350. He stated that, based on information provided by the Administrator of the division, the recommendation appears reasonable.
E-720 New Equipment – Page MINERALS-4
Mr. Combs asked whether the subcommittee wished to approve $1,200 in FY 2002 for new computer software, a new uninterruptible power supply, and a new scanner as recommended in decision unit E‑720. He stated the recommendation appears reasonable.
ASSEMBLYWOMAN CHOWNING MOVED TO CLOSE BUDGET 101-4219 WITH ADJUSTMENTS RECOMMENDED BY THE STAFF.
SENATOR JACOBSEN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR NEAL WAS ABSENT FOR THE VOTE.)
* * * * *
Senator O’Donnell reminded the committee that the revenue picture is bleak, and stated that when they get to the future budgets they will have to “get the paring knife out” and start cutting.
There being no further business, the meeting adjourned at 10:35 a.m.
RESPECTFULLY SUBMITTED:
Bob Williston
Committee Secretary
APPROVED BY:
Senator William R. O’Donnell, Chairman
DATE:
Assemblywoman Vonne Chowning, Chairwoman
DATE: