MINUTES OF THE
SENATE Committee on Finance
Seventy-First Session
April 23, 2001
The Senate Committee on Financewas called to order by Chairman William J. Raggio at 8:16 a.m., on Monday, April 23, 2001, in Room 2134 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.
COMMITTEE MEMBERS PRESENT:
Senator William J. Raggio, Chairman
Senator Raymond D. Rawson, Vice Chairman
Senator Lawrence E. Jacobsen
Senator William R. O’Donnell
Senator Joseph M. Neal Jr.
Senator Bob Coffin
Senator Bernice Mathews
STAFF MEMBERS PRESENT:
Gary L. Ghiggeri, Senate Fiscal Analyst
Bob Guernsey, Principal Deputy Fiscal Analyst
Michael J. Chapman, Program Analyst
Carla Watson, Program Analyst
Russell J. Guindon, Deputy Fiscal Analyst
Jennifer Ruedy, Committee Secretary
OTHERS PRESENT:
Robert G. Anselmo, Administrator, Taxicab Authority, Department of Business and Industry
Joel Pinkerton, Budget Analyst, Budget Division, Department of Administration
Senator Raggio requested a progress report from staff. Gary L. Ghiggeri, Senate Fiscal Analyst presented a progress report (Exhibit C) of the committee as of April 23, 2001.
Mr. Ghiggeri stated the committee has heard all budgets. He noted the Senate Finance Committee has closed 94 budgets, and 103 budgets have been closed in subcommittee. He stated all Capital Improvement Projects (CIP) have been reviewed. He said 186 bills have been referred to this committee with 163 still in committee. Of the 163 bills, 154 bills are senate bills and 9 are assembly bills, he added. He commented the committee has heard 117 bills, of which 17 bills have been processed and 2 bills have been indefinitely postponed.
Mr. Ghiggeri provided a list of bills (Exhibit D) updated as of Friday, April 20, 2001, which details the bills in committee that have been passed, heard, and are currently scheduled.
Senator Raggio told the committee he would be distributing a letter to inform the senators that the forecast from the Economic Forum indicates a reduction of approximately $50 million in each year of the biennium. He stated the letter would indicate all senators should review their bills and submit, in writing, a compelling reason for their bills to be heard. In view of the limited funding, he said, he does not want to waste the committee’s time with bills that cannot be funded. He commented many bills will have to be indefinitely postponed. He explained his previous letter requesting this action only received one response.
Senator Coffin asked, “Are we anticipating an ending fund balance for this year that would be below the normal reserve requirement?”
Mr. Ghiggeri stated the Economic Forum would meet May 1, 2001, to project the revenues. He said staff would not recommend that the Legislature deplete the reserve below the statutory level, which is between 5 and 10 percent of General Fund appropriations.
Senator Coffin questioned whether staff anticipates the reserve being above the statutory level. Mr. Ghiggeri explained staff would recommend reductions in one‑shot appropriations and on-going appropriations for Fiscal Years (FY) 2002 and 2003 to maintain the reserve level at or above the statutory level.
Senator Coffin stated the bills Senator Raggio was discussing are bills not included in The Executive Budget. Senator Raggio agreed.
Senator Coffin questioned whether the bills in question should be indefinitely postponed, or whether they might be processed with 70 to 90 percent reductions in their appropriated amounts. Senator Raggio responded the bills that do not have any chance of receiving the limited funding should not consume the committee’s time and attention.
Senator Coffin said there are a few cases in which bills requested a larger amount than truly essential and they could be effectively reduced.
Senator Raggio responded he would entertain compelling reasons to hear bills submitted by all senators.
SENATE BILL 519: Provides for establishment of programs for re-entry into community of certain prisoners and parolees. (BDR 16-1477)
Mr. Ghiggeri provided a packet of information (Exhibit E) to the committee regarding S.B. 519. He stated the committee heard the bill on April 16, 2001, and it was amended during the hearing pursuant to a request submitted by the Nevada Department of Prisons. He said staff subsequently investigated concerns raised at the hearing regarding the sealing of records. He noted Exhibit E includes a memorandum written by Carla Watson, Program Analyst. In her memorandum Ms. Watson responds to Senator Raggio’s question regarding whether an ex-felon would have the right to bear arms if the records were sealed. Mr. Ghiggeri said Ms. Watson found an ex-felon would have the right to bear arms if the records were sealed. He commented Section 22 of the bill would provide for the sealing of records of ex-felons after 5 years, if the ex-felon successfully completed the re‑entry program. He noted this is a reduction from the present authority to seal records after 15 years.
Mr. Ghiggeri said the provision for sealing of records was requested based upon the availability of grant funding for the program. Information provided by the Department of Prisons (DOP) indicates there is currently $2 million available nationwide for the grants and DOP anticipates only two grants will be awarded, so the State of Nevada might have a difficult time receiving a grant, he commented. He said he wants the committee to be thoroughly aware of the sealing of records provision in this legislation.
Senator Raggio responded that it is a policy question whether the committee would like to pass the bill with that provision. He read a portion of the “snapshot” included in Exhibit E:
Funding is limited to applicants in states that have laws permitting the sealing of the records of most convicted, first-time non-violent ex‑felons within 5 years of the end of post-release supervision. This restriction is essential to the basic programmatic concepts being implemented and evaluated.
Senator Raggio said it appears if Nevada were to receive a grant, legislation would have to provide for the sealing of the records as he described. He asked whether the provision for the sealing of records within 5 years of the end of post-release supervision is limited to first-time non-violent ex-felons in this bill. He questioned how that would conflict with the existing statute that says 15 years.
Mr. Ghiggeri said the information packet he provided (Exhibit E) includes a copy of NRS 179.245.
Senator Raggio indicated the legal division should be consulted to determine whether sections of the existing statute would require amendment. He said the bill proposes amendments to NRS 179.245, which satisfy the requirements he read earlier.
Senator Coffin inquired as to who requested this bill. Senator Raggio said he recalls Judge Peter I. Breen, Second Judicial District Court, and Assemblywoman Sandra J. Tiffany testified on the bill.
Senator Coffin said he is concerned because the process of plea-bargaining allows for a great deal of “bargaining down” where numerous charges might be reduced to one charge in exchange for certain conviction. He questioned whether there is any means to bring the actual number and scope of the charges into consideration with this proposed legislation. Senator Raggio said he did not believe it was possible to do as Senator Coffin suggested and still receive this grant. Senator Raggio added he understood few ex-felons would be eligible for this re-entry program.
Senator Coffin stated there are four types of offenses that automatically exclude ex-felons from eligibility for the program. He said judges should be cognizant, during sentencing, of the potential for ex-felons to participate in this program based on the specific conviction.
SENATE BILL 197: Revises provisions governing date on which offender is eligible to be assigned to participate in therapeutic community. (BDR 16-23)
Senator Raggio stated S.B. 197 was heard on April 5, 2001. He explained it authorizes the Department of Prisons to seek funds from the contingency fund in the event the offenders’ store fund has insufficient funds. He said this bill is associated with the therapeutic program at the Warm Springs facility. He acknowledged the program has never been funded in this manner previously, so he is hesitant to authorize use of the contingency fund for this purpose.
Mr. Ghiggeri said, in conversations with Senator Wiener, she has indicated the provision to approach Interim Finance Committee (IFC) could be eliminated. He noted Senator Wiener would like one policy change that would expand the criteria for offenders eligible to participate in the therapeutic community program from 12 months prior to release to 24 months prior to release. He provided informational materials (Exhibit F) regarding S.B. 197 to the committee.
Senator Raggio restated offenders would not be eligible for participation in the therapeutic community program prior to 2 years before the date of their release. Senator Raggio requested a motion to eliminate language allowing the Director of the Department of Prisons to request an allocation from the Contingency Fund and expand the period of eligibility to participate in the therapeutic community program from 12 months prior to release to 24 months prior to release.
SENATOR RAWSON MOVED TO AMEND AND DO PASS S.B. 197 WITH THE AMENDMENT REQUESTED BY SENATOR WIENER AND OUTLINED BY SENATOR RAGGIO.
SENATOR O’DONNELL SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Senator Raggio clarified the sole amendment would be to expand the period of eligibility.
Senator Raggio addressed Senate Committee on Finance Closing List Number 8 (Exhibit G).
B&I, Taxicab Authority – Budget Page B&I-161 (Volume 2)
Budget Account 245-4130
Michael J. Chapman, Program Analyst, explained the Taxicab Authority is a fee‑funded agency, which protects taxicab customers by regulating taxicabs in counties where the population exceeds 400,000. He noted Clark County is the only area within Nevada that exceeds 400,000.
SENATE BILL 119: Requires taxicab authority to establish program for transportation by taxicab of elderly persons and permanently handicapped person in certain counties. (BDR 58-692)
Mr. Chapman indicated staff requests authority to make the necessary technical adjustments to the Taxicab Authority’s budget if S.B. 119 is approved. He noted the Senate Committee on Transportation amended an approved S.B. 119 on April10, 2001.
Mr. Chapman discussed technical adjustments to budget account 245-4130. He stated the first adjustment is to increase Trip Charge Revenues by $82,182 in each year of the biennium to reflect revenue for the actual number of taxi trips in FY 2000. The revenue was incorrectly recorded to FY 2001, he added.
M-200 Demographics/Caseload Changes – Page B&I-163
Mr. Chapman pointed out the second technical adjustment is to decrease this decision unit by $306 in FY 2002 and $30 in FY 2003 to correct employee insurance costs and reduce computer costs.
Mr. Chapman provided a chart (Exhibit G) detailing the number of trips and trip charge revenue from 1993 actual to 2003 projected. He explained the primary source of revenues for the Taxicab Authority is the trip charge of 15 cents per taxicab fare. He noted the Taxicab Authority projects 4.8 percent growth in the number of trips in FY 2002 and 4.5 percent growth in FY 2003, but the projected revenue does not correspond. The projected revenue percentage change for FY 2002 is –2.2 percent and 0.0 percent for 2003, he pointed out. Therefore he recommended increasing the Trip Charge revenue by $136,801 in FY 2002 and by $286,801 in FY 2003 to correlate with the projected increase in the number of taxi trips projected.
Senator Raggio inquired whether there were any objections to the recommended increase in Trip Charge revenue. There were no objections voiced.
Mr. Chapman noted this decision unit includes $381,721 in FY 2002 and $399,605 in FY 2003 to fund eight new classified positions: one Senior Investigator, three Investigators, two Vehicle Inspectors, and two Program Assistants. He said the new positions and associated operating costs would be funded by a reduction in reserves. He pointed out the agency currently has 54 full time equivalent (FTE) positions. He noted the decision unit also recommends the purchase of three new vehicles with special police equipment, costing $77,482 in FY 2002 to support the recommended Investigator positions. He provided written justification for these additional positions (Exhibit G).
Mr. Chapman stated the Administrator requests the elimination of two Airport Control Officer positions, which have never been filled. Mr. Chapman indicated the budget had been adjusted accordingly.
Senator Raggio stated the issue is to approve the eight new positions and eliminate the two Airport Control Officer positions. The committee voiced no objections.
E-451 Reward Self-Sufficiency – Page B&I-164
Mr. Chapman stated this decision unit recommends continued funding for the Division for Aging Services Senior Ride Program. He pointed out during the agency’s budget closing in the 1999 Session, concern was expressed there may not be sufficient revenues to fund the program at the recommended 20,000-ride level. He stated two work programs were submitted for each year of the current biennium that increased the funding to accommodate from 16,000 to 20,000 rides. He noted this decision unit continues that funding at the 20,000-ride level.
Senator Raggio inquired whether there were any objections to continued funding at this level. No objections were voiced.
E-710 Replacement Equipment – Page B&I-165
Mr. Chapman noted a decrease of $15,630 in FY 2002 to reflect revised prices for computer hardware costs for a file server and 20 replacement computers.
Mr. Chapman explained this decision unit includes $231,584 in FY 2002 and $37,626 in FY 2003 to replace the agency’s telephone system, four vehicles, and computer hardware and software. He said Department of Information Technology (DoIT) has recommended upgrading and re-routing of the agency’s “56k line to a T‑1 line” to alleviate the problems experienced with the existing telephone system.
Senator Raggio asked whether the requested items in decision unit E-710 appear to be necessary. Mr. Chapman responded affirmatively. The committee voiced no objection.
E-806 Unclassified Pay Changes – Page B&I-166
Mr. Chapman stated this decision unit recommends the increase of the Administrator’s unclassified salary to $71,822 in each year of the biennium. He said this increase was recommended in The Executive Budget because the salary for the Chief Compliance Investigator, who reports to the Administrator, is currently 4 percent more than that of the Administrator.
Senator Raggio asked how this increase would place the Administrator’s salary in comparison to that of the Chief Compliance Investigator. Mr. Chapman said the salaries would be roughly equivalent.
SENATOR MATHEWS MOVED TO CLOSE BUDGET ACCOUNT 245‑4130 AS RECOMMENDED BY STAFF.
SENATOR RAWSON SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Senator Rawson commented he had read taxicab driving was a more dangerous occupation than policeman or fireman. He inquired whether any research had been conducted to determine the safety of Nevada’s taxicab drivers in comparison to those of other states.
Robert G. Anselmo, Administrator, Taxicab Authority, Department of Business and Industry, stated he had not brought any data related to safety with him. He added that the number of physical assaults on drivers shows a decrease at this point in 2001, but the number of robberies has increased. He commented a taxicab had been hijacked the prior day from the McCarran Airport. He said the Taxicab Authority is looking into installing a global positioning system (GPS) into all taxicabs for the safety of the drivers. He said he believes Nevada’s taxicab drivers are a little safer than national averages.
Senator Rawson stated he would appreciate any information regarding the safety of taxicab drivers in Nevada including assault and accident data. Mr. Anselmo agreed to comply with his request.
Senator Coffin said the installation of cameras in the taxicabs had been debated years ago because owners wanted the cameras and the drivers did not. He asked whether the cameras were still being considered.
Mr. Anselmo stated cameras remain a volatile issue for the Taxicab Authority. He said the drivers are concerned about the invasion of their privacy, so the Taxicab Authority is considering installing cameras that would operate only upon activation of a panic button.
Senator Coffin questioned the effectiveness of a panic button. Mr. Anselmo said activation of the panic button would be at the driver’s discretion.
Senator Coffin voiced his frustration with trying to provide safety measures for the drivers because the drivers fight the measures. Mr. Anselmo said, “Drivers of taxicabs are probably what I would construe to be the last gypsies of the world in that they are very independent.” Mr. Anselmo said he believes the GPS system and the panic-button-activated camera are probably the best safety measures the drivers will allow.
Senator Raggio inquired when Mr. Anselmo would be retiring. Mr. Anselmo responded that his last day as a state employee would be July 8, 2001, after 22 years of service.
Senator Raggio thanked him for his years of service.
B&I, Transportation Services Authority – Budget Page B&I-168 (Volume 2)
Budget Account 226-3922
Mr. Chapman stated the Transportation Services Authority (TSA) is responsible for the safe, adequate, economic, and efficient transportation services by operators of limousines, charter buses, tow trucks, household goods movers, and taxicabs outside of Clark County. He said the TSA has 20 FTE positions with no new positions requested. He commented this budget account is funded primarily from the State Highway Fund. The Executive Budget is recommending a 4.7 percent increase over the biennium primarily driven by cost of living adjustments (COLA), pay grade increases, increases in Attorney General cost allocation, and increases in the cost allocation to the Business and Industry Director’s Office, he added. He said staff does not recommend any technical adjustments to this budget account.
SENATE BILL 270: Makes various changes to provisions governing fully regulated carriers. (BDR 58-553)
Mr. Chapman explained S.B. 270 allows the TSA to impound any vehicle operating illegally outside the scope of Nevada Revised Statutes (NRS) 706. He said the bill also provides for an increase of annual taxicab fees in counties with populations less than 400,000 people from $36 to $75. Additionally, he noted, the bill provides two new fees:
He pointed out the bill also provides for criminal penalties for violation of driver permit provisions and false statements in TSA applications. He said the measures within this bill would necessitate six additional staff positions, which are addressed in the fiscal note. He noted staff requests authority to make the necessary technical adjustments to the TSA budget should S.B. 270 be approved.
Senator Raggio asked Senator O’Donnell, who is the Chairman of the Senate Committee on Transportation, what the current status of S.B. 270 is. Senator O’Donnell stated the bill was amended and the amendment has not yet been received.
Mr. Ghiggeri pointed out revised fiscal information was received immediately before the start of the meeting that would minimally affect this budget. Mr. Chapman stated he received the figures as he was departing from his office for the committee meeting. Mr. Chapman said it appears both the revenue and the expenditure projections are decreased slightly.
SENATOR O’DONNELL MOVED TO CLOSE BUDGET ACCOUNT 226‑3922 AS RECOMMENDED BY THE GOVERNOR WITH ANY TECHNICAL ADJUSTMENTS RECOMMENDED BY STAFF PURSUANT TO INFORMATION RECENTLY RECEIVED.
SENATOR JACOBSEN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
B&I Transportation Services Authority Admin Fines – Budget Page B&I-1673 (Volume 2)
Budget Account 226-3923
Mr. Chapman said the TSA assesses and collects administrative fines against regulated transportation entities pursuant to NRS 706. He said the fines are placed into this budget account and used to support the enforcement activities of the TSA. He noted staff does not recommend any technical adjustments.
Mr. Chapman pointed out the TSA’s base budget includes $25,000 in each year for overtime expense. He noted overtime costs of approximately $15,000 in FY 2000 were approved during the interim, but not as part of the base budget.
Senator Raggio indicated he would accept a motion to approve the budget as recommended.
SENATOR O’DONNELL MOVED TO CLOSE THE BUDGET AS RECOMMENDED BY THE GOVERNOR.
SENATOR JACOBSEN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Washington Office – Budget Page ELECTED-7 (Volume 1)
Budget Account 101-1011
Mr. Chapman stated there are no technical adjustments to this budget, and it is a relatively flat budget.
Senator Raggio indicated he would accept a motion to approve the budget as recommended.
SENATOR MATHEWS MOVED TO CLOSE THE BUDGET AS RECOMMENDED BY THE GOVERNOR.
SENATOR O’DONNELL SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Unclaimed Property – Budget Page ELECTED-102 (Volume 1)
Budget Account 101-3815
Russell J. Guindon, Deputy Fiscal Analyst, stated the Division of Unclaimed Property is responsible for the collection of unclaimed property, locating the owners of the unclaimed property, and auditing businesses to ensure all unclaimed property in their possession is properly reported.
Senator Raggio said he believes the primary issues with this budget account are the transfer of this division from the Department of Business and Industry to the Treasurer’s Office and the provisions of S.B. 489.
SENATE BILL 489: Makes various changes regarding powers and duties of state treasurer and revises Uniform Disposition of Unclaimed Property Act. (BDR 18‑360)
Mr. Guindon explained S.B. 489 was introduced to facilitate the transfer. He said the transfer was included in The Executive Budget. He noted the Governor also recommends funding this budget account entirely from the Abandoned Property Trust Fund each year of the 2001–2003 biennium. He pointed out the budget account currently receives one-fourth of its funding from the General Fund and three-fourths from the Abandoned Property Trust Fund. He said the change in the funding structure has little impact on General Fund because increased funding from the Abandoned Property Trust Fund reduces the amount transferred to the state General Fund at the close of each fiscal year. Essentially, the funding source would be General Fund either way, he stated.
Mr. Guindon noted staff recommends two minor technical adjustments, which combined reduce funding to the budget by $959 each year of the biennium. He said the reductions come from the elimination of Non-Holiday Overtime Expenses and an adjustment to In-State Travel Expenses.
M-100 Inflation & Per Unit Adjustment – Page ELECTED-103
Mr. Guindon stated this decision unit provides an additional appropriation of $10,169 in FY 2002 and $11,557 in FY 2003 for rental costs of the Division of Unclaimed Property for the recommended transfer to the State Treasurer’s office in the Grant Sawyer State Office Building, effective November 1, 2001. He commented staff requests authority to adjust state-owned building rent in this budget account if the proposed transfer to the treasurer’s office is not approved.
Senator Raggio inquired whether the committee had any objections. The committee had none.
E-710 Replacement Equipment – Page ELECTED-104
Mr. Guindon pointed out this decision unit recommends an appropriation of $2,708 each year to provide funding for unanticipated replacement of defective equipment and to upgrade software. He said this figure is based on the actual costs incurred in FY 2000 to replace some office equipment and computer hardware and upgrade the network operating software. He stated staff seeks authority to reduce the request to $600 in each year of the biennium to provide contingency funds for the unanticipated repair or replacement of office equipment.
Senator Raggio inquired whether the committee had any objections. The committee had none.
E-800 Cost Allocation – Page ELECTED-104
Mr. Guindon stated this decision unit recommends a decrease in expenses of $7,304 in FY 2002 and $7,368 in FY 2003 in anticipation of the transfer to the treasurer’s office.
E-806 Unclassified Pay Changes – Page ELECTED-105
Mr. Guindon commented this decision unit provides the necessary funding to allow a salary increase for the Administrator of unclaimed property, an unclassified position. He said this increase would provide a 5 percent differential over the highest paid classified employee supervised.
Senator Raggio questioned why this would not be addressed in the unclassified pay bill. Mr. Guindon responded that the State Treasurer had indicated at previous hearings on the Division of Unclaimed Property that if the transfer were approved, funding would be requested to achieve salary parity for the Administrator with other Deputy Treasurers within the office. Mr. Guindon stated this would require an additional appropriation of $14,608 in FY 2002 and $14,653 in FY 2003.
Senator Raggio stated the committee would review this issue as part of the unclassified pay bill.
Mr. Guindon stated The Executive Budget did not include funding for moving costs for the recommended transfer of the Division of Unclaimed Property to the treasurer’s office. He said the agency believes the transfer would necessitate $11,435 in moving costs.
ASSEMBLY BILL 522: Makes appropriation to Buildings and Grounds Division of Department of Administration for moving expenses of various agencies to and from Grant Sawyer State Office Building. (BDR S-1356)
Mr. Guindon pointed out A.B. 522 includes funds for the costs to remodel office space to accommodate the transfer of the division but not for actual moving costs. He asked whether the committee would like to approve the amount of moving costs provided by the division and subsequently provide for those costs in this budget account or in A.B. 522.
Senator Raggio inquired which manner would be the most efficient. Mr. Ghiggeri responded it would be easier to provide the necessary amount in a separate category within this budget designated for the sole purpose of moving costs associated with the proposed transfer. Mr. Ghiggeri stated that process would avoid having to amend the bill while ensuring the money is only spent for the intended purpose.
Senator Raggio invited Joel Pinkerton, Budget Analyst, Budget Division, Department of Administration, to join Mr. Guindon at the table. He asked Mr. Pinkerton to articulate any objections to this budget or any of the others to be discussed. Mr. Pinkerton responded that he believed Mr. Ghiggeri suggested an appropriate means to allow for the moving costs.
Mr. Guindon added that staff seeks authority to make any necessary adjustments to the Division of Unclaimed Property’s budget after final purchasing assessment and cost allocation amounts are established.
Senator Raggio asked Mr. Guindon to continue his discussion of current relevant bills.
Mr. Guindon stated the division provided staff with information regarding the changes proposed in S.B. 489, which indicates that a one-time net of General Fund revenues in the amount of approximately $3.4 million is possible in FY 2002. He said those figures assume the bill becomes effective July 1, 2001.
ASSEMBLY BILL 77: Revises provisions governing unclaimed property. (BDR 10‑410)
Mr. Guindon stated the fiscal note to A.B. 77 indicates the proposed changes will produce a one-time General Fund revenue impact of approximately $14.3 million if the bill becomes effective July 1, 2001. He explained the unclaimed property division said approximately 25 percent of unclaimed property is returned to the legal owners each year, so the net one-time General Fund revenue impact would be closer to $10.7 million. He said A.B. 77 generates a larger net revenue impact than S.B. 489 because it shortens the time period for declaring property unclaimed for more types of property.
Senator Raggio questioned what the time period is shortened to with A.B. 77.
Mr. Guindon stated most property has a 5-year period before being declared unclaimed, with some exceptions. He noted money orders currently have a 7-year waiting period and traveler’s checks have a 15-year waiting period. He said A.B. 77 recommends a 3-year waiting period for most property types. He added S.B. 489 recommends only banking and insurance company property should be reduced to a 3-year waiting period. He commented the amendments to A.B. 77 remove some of the property types that were recommended for reduced waiting periods. He said the net revenue impact of A.B. 77 would be reduced, pursuant to the amendments, from the estimated $10.7 million first suggested, but staff has not received a revised estimate from the unclaimed property division at this time.
Senator Rawson commented he was very impressed with the effectiveness and timeliness of the effort put forth by the unclaimed property division in a recent personal experience.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101‑3815 AS RECOMMENDED BY STAFF WITH AUTHORITY FOR STAFF TO MAKE NECESSARY ADJUSTMENTS.
SENATOR O’DONNELL SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Municipal Bond Bank Revenue – Budget Page ELECTED-111 (Volume 1)
Budget Account 745-1086
Mr. Ghiggeri stated both the Municipal Bond Bank Revenue and Municipal Bond Bank Debt Service budget accounts are administered by the State Treasurer’s Office. He stated staff recommends closing both budgets as the Governor recommended.
Senator Rawson indicated he would accept a motion to close the budget as the Governor recommended.
SENATOR O’DONNELL MOVED TO CLOSE BUDGET ACCOUNT 745‑1086 AS THE GOVERNOR RECOMMENDED.
SENATOR JACOBSEN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR RAGGIO WAS ABSENT FOR THE VOTE.)
*****
Municipal Bond Bank Debt Service – Budget Page ELECTED-112 (Volume 1)
Budget Account 395-1087
SENATOR O’DONNELL MOVED TO CLOSE THE BUDGET AS THE GOVERNOR RECOMMENDED.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR RAGGIO WAS ABSENT FOR THE VOTE.)
Warm Springs Correctional Center – Budget Page PRISONS-33 (Volume 3)
Budget Account 101-3716
Carla Watson, Program Analyst, discussed her handout (Exhibit H) regarding the status of inmate projections. She noted the handout states the inmate projections used to construct The Executive Budget. She said subsequent to the release of The Executive Budget, it was discovered funding for 177 inmates was not provided during FY 2002 and FY 2003. She explained projections received March 20, 2001, from George Washington University indicate funding will not be provided for a total of 332 inmates in The Executive Budget over the next biennium. She pointed out the shortfall estimates, as provided by the DOP, indicates a budget deficit of $648,902.
Senator Raggio inquired whether Mr. Pinkerton agreed with Ms. Watson’s evaluation. Mr. Pinkerton stated his agreement.
Senator O’Donnell asked how the $648,902 deficit would be rectified. Senator Raggio responded the committee would need to address that.
Ms. Watson stated DOP projects budget shortfalls of $91,453 for electricity and $95,102 for natural gas for the biennium for the Warm Springs Correctional Center.
SENATE BILL 463: Makes appropriation to Department of Prisons for maintenance projects at certain facilities. (BDR S-1432)
Ms. Watson stated S.B. 463 includes two items for Warm Springs Correctional Center, of which one is already funded in The Executive Budget. She stated the first item included in the bill provides $500 each year of the biennium for the storage and removal of culinary grease. Therefore, she indicated staff recommends decreasing the appropriation in S.B. 463 by $500 for each year of the biennium. She noted the second item included in the bill is $1,200 per year for biannual generator service for three emergency generators. She said this service is considered a maintenance function, which should be included in the facility’s enhanced budget if the bill is approved by the Legislature.
Ms. Watson discussed the technical adjustments recommended. She indicated staff recommends reducing the General Fund in the base budget by $13,402 each year of the biennium due to recalculating the 4-year average for the bakery. She added the budget should be reduced by $729 each year to eliminate one-time expenditures, annualize the phone maintenance contract and transfer a maintenance contract to Category 07. She suggested an increase in the budget of $1,245 each year “to cover current maintenance contract costs and adjust inmates per the base year average population.” She proposed $525 for blood spill kits to be removed from the base budget and be included in decision unit E-901.
Ms. Watson said the new inmate projections provided by the Institute on Crime, Justice and Corrections at the George Washington University indicate a decrease in the average inmate population, which would result in savings. She commented the decrease results in a surplus of $12,848 for this budget account, which means a savings to General Fund of $10,144 in FY 2002 and $2,704 in FY 2003. She added there would also be room and board reductions of $169 in FY 2002 and $38 in FY 2003.
Senator O’Donnell questioned why there would be a savings at this facility. Ms. Watson responded The Executive Budget was based on a projected inmate population of 510 inmates for each year of the biennium, but recent projections indicate there will be 502 inmates in FY 2002 and 509 inmates in FY 2003.
Senator O’Donnell inquired what was used as the source of the recent inmate projections. Ms. Watson responded the projections originated at George Washington University and were further reviewed by DOP to formulate a biennium plan. She said the biennium plan was then provided to the LCB staff and the Executive Branch.
Senator O’Donnell commented the decreased inmate projections were confusing considering Ms. Watson’s handout (Exhibit H) in regard to shortfall estimates based on projected inmate populations.
Senator Raggio clarified the shortfall occurs within the entire DOP system, and Ms. Watson was currently addressing just the Warm Springs Correctional Center.
Senator Raggio commented the Institute on Crime, Justice and Corrections at the George Washington University provided the state the projected inmate populations this year, and he inquired who had previously provided the state that information.
Mr. Ghiggeri responded that Dr. Jim Austin of the National Council on Crime and Delinquency has historically provided the projected inmate populations to the state. He pointed out Dr. Austin is no longer affiliated with the National Council on Crime and Delinquency; he is now affiliated with the Institute on Crime, Justice and Corrections at the George Washington University. He said he believes Dr. Austin has provided this information to the state since the early 1980s, so Nevada will continue to rely on him at his new institution.
Mr. Ghiggeri noted the current prison population is approximately 144 inmates below the projected figure, so that provides “some cushion.”
Senator Coffin asked whether the subcommittee that handled this budget was comfortable with the technical adjustments. Mr. Ghiggeri responded this budget was assigned to staff for review, not to a subcommittee.
Mr. Ghiggeri commented, “As Carla indicated, George Washington University has re-projected the inmate population.” He said that population, based on various custody levels, is then assigned by DOP to different institutions and facilities within the department. He explained that staff then applies the number of inmates per institution to the “inmate-driven costs for those inmates,” which is comprised of food, clothing, and personal hygiene supplies.
Senator Coffin questioned whether staff evaluated any legislation currently pending this session that might affect the projected inmate populations. He said the budget numbers change dramatically with very little fluctuation in the inmate population.
Mr. Ghiggeri reiterated that the prison system in Nevada currently has 144 inmates fewer than the projected figures. He noted S.B. 519, regarding the re-entry court, has been approved by this committee, and the prison system has indicated they could potentially identify 300 individuals that would qualify for that program. He commented that testimony was also provided last session concerning the drug court release program for the department. He pointed out funding was not provided for the drug court release program or the re-entry court. He commented that the number of inmates identified by the prison as potential participants in the drug court last session never materialized, so it may be premature to reduce the DOP budget based on assumptions that were included in the re-entry court.
Ms. Watson stated pursuant to a request by DOP, staff proposed the segregation of maintenance contracts within a specific category to improve fiscal management of spending in that area.
Ms. Watson commented decision units E-913 through E-916 are consolidation reversals. Senator Raggio said that has already been agreed upon with the Budget Office along with the understanding some “flexibility language would be included in the appropriation bill.”
Mr. Pinkerton said he wasn’t aware of the agreement, but had no objections. Senator Raggio encouraged him to discuss the issue with John P. Comeaux, Budget Division Director, because he was aware of the agreement.
E-277 Working Environment & Wage – Page PRISONS-35
Ms. Watson noted this decision unit recommends $64,212 in FY 2002 and $88,021 in FY 2003 to fund 1 Plumber II and 1 Electrician II. She stated that Warm Springs Correctional Center currently has 1 Maintenance Repair Specialist II and 1 Air Conditioning/Refrigeration Specialist I. She stated:
The Legislative Commission’s budget subcommittee discussed disallowing additional funding relative to maintenance prior to receiving a formal preventative maintenance plan from the DOP. The department did issue this plan; however, it provides guidance and it includes a recommended framework and schedules for wardens to utilize. But the plans at the individual institution level have not been completed yet, and probably won’t be completed until August 2001. Based on the staffing levels for maintenance personnel that are currently at other facilities, this does appear to be a reasonable request.
Senator Raggio commented that the issue is whether or not the committee should approve the positions without a specific plan for the facility. Ms. Watson said the positions appear necessary because the facility currently has only 2 maintenance‑related positions while other institutions have 8 to 14 maintenance positions.
E-710 Replacement Equipment – Page PRISONS-36
Ms. Watson stated this decision unit recommends funding of $13,438 in FY 2002 and $2,964 in FY 2003 for replacement equipment: one commercial dryer, one commercial washer, nine portable radios, and five protective vests. She said a price adjustment was necessary for the commercial washer because The Executive Budget erroneously included a 35-pound washer, not the 50-pound washer required, which is more expensive. She noted small changes were made to reflect current pricing.
Ms. Watson pointed out DOP has applied for a grant from the Justice Department, Bureau of Justice Assistance, for bulletproof vests. She added the grant, if received, would provide up to 50 percent of the cost of the vests. She said DOP would not learn whether or not they have been awarded the grant until after the legislative session ends. Therefore, she recommends the issuance of a Letter of Intent that would require DOP to transfer the remaining balance of General Fund appropriations for vests to a reserve for reversion if grant funding is awarded.
Ms. Watson added that the department submitted a Work Program which requests authority to receive grants from Department of Motor Vehicles and Public Safety, Office of Criminal Justice Assistance, for reimbursement of shipping and handling expenses incurred on vests received from the U.S. Department of Defense in Ohio. She noted the approval of this Work Program would result in the department receiving approximately 550 Type 2 protective vests and 50 ceramic vests in new or nearly new condition. She said staff has not been able to determine whether the vests the department could receive from Ohio are similar to those in the budget. She clarified DOP indicates the vests requested in the budget are intended to protect custody staff from sharp objects such as a knife or an ice pick, and the vests from Ohio would be bulletproof vests. She concluded the description provided to staff is not clear.
Senator Coffin questioned whether it was more likely prison staff would face a “shank” than a bullet. Ms. Watson agreed it is more likely for prison staff to face a “shank” than a bullet.
Senator Coffin asked whether the ceramic vests would be more desirable for this reason. Ms. Watson responded that NDOP has indicated ceramic vests are more resistant “to hardened ammunition.” Ms. Watson said that DOP has indicated that all of the vests from Ohio are bulletproof vests.
Senator Coffin commented ceramic might be more effective at stopping “a shank,” but Kevlar might be less effective. He stated slightly used vests might be more dangerous than new ones as body heat can degrade the quality of all vests with possibly the exception of ceramic vests. He said in the past the committee has preferred to buy new vests rather than allow prison staff to be placed in vulnerable situations with lesser-quality vests.
Senator Raggio stated his concern regarding closing the budget without definitive vest information from DOP.
Mr. Ghiggeri suggested the budget could be closed as Ms. Watson recommends with instruction for her to obtain clarifying information from DOP regarding the vests. He stated further adjustment on the vest issue could be completed upon receipt of the information.
Senator Raggio asked whether that would require a Letter of Intent.
Mr. Ghiggeri responded Ms. Watson could contact DOP and propose adjustment to the budget account as necessary.
Senator Raggio requested further explanation of the blood spill kits. Ms. Watson responded this is a policy change with no net effect on the General Fund. She said the kits were historically funded in the Prison Medical Care budget account 101‑3706, but DOP proposes to fund the kits in each individual institution’s budget this biennium.
Senator Raggio indicated he would accept a motion to close the budget as recommended by staff with the request that staff ascertain the definitive information on the protective vests and adjust the budget as necessary.
SENATOR JACOBSEN MOVED TO CLOSE BUDGET ACCOUNT 101‑3716 AS RECOMMENDED BY STAFF.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
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Senator Jacobsen stated he was very impressed with the operation when he toured the Warm Springs Correctional Center. He said he believes the warden should be commended.
Public Safety, Justice Assistance Act – Budget Page PS-41 (Volume 3)
Budget Account 101-4708
Mr. Ghiggeri said this account is administered by the Department of Motor Vehicles and Public Safety. He said the only closing adjustment recommended by staff is to align the grant revenue authority for the Residential Substance Abuse Treatment (RSAT) grant by adding $278,644 in FY 2002 and $291,145 in FY 2003. He commented staff recommends adjustment to the Violent Offender Incarceration/Truth in Sentencing (VOI/TIS) grant fund levels based on revised agency estimates. He pointed out staff had just learned on Saturday that the President of the United States has proposed to completely eliminate the VOI/TIS funding. He noted staff will meet with Department of Motor Vehicles and Public Safety to determine the status of the funding. He said some money currently in this account might be used to offset the CIP program for DOP for this biennium. He said if staff determines the VOI/TIS funding is truly being eliminated this budget will have to be reviewed by IFC.
Senator Raggio stated the funding in question is considerable. Mr. Ghiggeri agreed. Mr. Ghiggeri explained this funding had been used in every session since 1995 to offset General Fund costs for prison construction.
Senator Raggio questioned what the impact of deleting that funding from the account would be on other programs and grants. Mr. Ghiggeri responded there would be no impact on The Executive Budget, as it is presented, because that money has not been allocated at this point.
Senator Raggio asked whether the funds are distributed to local governments. Mr. Ghiggeri responded that local governments receive a small portion of the VOI/TIS funding, but state government receives most of the funding.
Senator Raggio questioned whether the VOI/TIS funding is reflected in other budgets. Mr. Ghiggeri responded it is not.
Senator Raggio asked if the committee closed the budget as recommended, whether that would be at variance with it possibly not being funded. Mr. Ghiggeri said the budget was drafted with the most recent information provided by Department of Motor Vehicles and Public Safety. Mr. Ghiggeri explained the possibility of elimination of the VOI/TIS funding in the President’s budget was obtained from a federal financial information source on Saturday, and staff needs to verify that information.
Mr. Ghiggeri suggested the budget be closed as recommended by staff. If staff determines the VOI/TIS funding will be eliminated, the budget will then need to be reviewed, he added.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101‑4708 AS RECOMMENDED BY STAFF.
SENATOR O’DONNELL SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
The meeting was adjourned at 9:42 a.m.
RESPECTFULLY SUBMITTED:
Jennifer Ruedy
Committee Secretary
APPROVED BY:
Senator William J. Raggio, Chairman
DATE: