MINUTES OF THE MEETING OF THE
JOINT Subcommittee ON HUMAN RESOURCES/K-12
OF THE
SENATE COMMITTEE ON FINANCE
AND THE ASSEMBLY COMMITTEE ON WAYS AND MEANS
Seventy-First Session
April 24, 2001
The Senate Subcommittee on Financewas called to order by Chairman Raymond D. Rawson at 8:00 a.m., on Tuesday, April 24, 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 COMMITTEE MEMBERS PRESENT:
Senator Raymond D. Rawson, Chairman
Senator William J. Raggio
Senator Bob Coffin
Senator Bernice Mathews
ASSEMBLY COMMITTEE MEMBERS PRESENT:
Ms. Christina R. Giunchigliani, Chairman
Mrs. Barbara K. Cegavske
Mr. Joseph E. Dini, Jr.
Mr. David E. Goldwater
Ms. Sheila Leslie
Ms. Sandra J. Tiffany
STAFF MEMBERS PRESENT:
Mark W. Stevens, Assembly Fiscal Analyst
Bob Guernsey, Principal Deputy Fiscal Analyst
Steven J. Abba, Principal Deputy Fiscal Analyst
Larry L. Peri, Senior Program Analyst
Judy Jacobs, Committee Secretary
OTHERS PRESENT:
Elizabeth O’Brien, Administrative Services Officer II, Division of Mental Health and Developmental Services, Department of Human Resources
Carlos Brandenburg, Ph.D., Administrator, Division of Mental Health and Developmental Services, Department of Human Resources
Michael J. Willden, Administrator, Welfare Division, Department of Human Resources
Senator Rawson announced the committee would address Closing List #4 (Exhibit C).
DEPARTMENT OF HUMAN RESOURCES
Division of Mental Health and Developmental Services
HR, MHDS Administration – Budget Page MHDS-1 (Volume 1)
Budget Account 101-3168
Bob Guernsey, Principal Deputy Fiscal Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, referred to page 1 of the closing list and noted one technical adjustment was proposed for Budget Account 101-3168. He explained it would back out some position reclassifications, which had not been approved by the Department of Personnel.
Mr. Guernsey pointed out the Legislature has historically taken the position that once positions are approved by the Division of Personnel they can be upgraded in the budget. He said there is usually an attempt to do so while the Legislature is in session. He acknowledged the personnel department has not approved the positions, but if approved and the funding becomes available from Medicaid, the agency can go to the Interim Finance Committee (IFC) for final approval.
E-225 Reward More Efficient Operation – Page MHDS-3
Mr. Guernsey said decision unit E-225 would have no General Fund appropriations. It would send Administrative Services Officers (ASO) to a training conference of the National Association of Reimbursement Officers (NARO) for improvement of revenue collection, he said, at a cost of $24,500 in fiscal year (FY) 2001 and $21,900 in FY 2003.
According to Mr. Guernsey, the next item would revise a recommendation by the Governor. He indicated a letter from the Budget Division on the third page outlines the request. He explained the Audit Division of the Legislative Counsel Bureau (LCB) found a number of areas of concern when it performed an audit of the Nevada Mental Health Institute (NMHI). He said it is possible some of the problems at the institute also exist at Southern Nevada Adult Mental Health Services (SNAMHS). He reported the Department of Administration is recommending the addition of 3 revenue officers, one each at NMHI, SNAMHS, and the Rural Clinics program.
Mr. Guernsey opined the Rural Clinics program has done a good job in revenue collections, but with limited financial staff the addition of a revenue officer would go a long way toward improving the entire operation.
Mr. Guernsey pointed out the funding for the new positions will come from additional collections. He noted the subcommittee has discussed the item previously, but now there is a formal request from the administration to add the three positions.
E-450 Reward Self-sufficiency –Page MHDS-4
Mr. Guernsey said decision unit E-450 recommends an appropriation of $100,000 each year to continue funding for the suicide prevention hotline. Another big issue in mental health is the Mojave Mental Health Services program, he said. He explained the Mojave program provides targeted case management, medication clinics, and a variety of other services to mentally ill clients. He related it started with adults in southern Nevada and expanded to children, and during the past biennium the program expanded in northern Nevada to the Nevada Mental Health Institute and the Northern Nevada Child and Adolescent Service.
Mr. Guernsey reported the joint subcommittee appointed a working group consisting of three assemblywomen, Ms. Leslie, Ms. Tiffany, and Ms. Giunchigliani, to examine the services provided by the Mojave program and in response to criticism from other providers in the community. He noted the Mojave program receives funding directly from Medicaid, and the funding has grown from $4.9 million in FY 1999 to $5.1 million now. He indicated there have been problems reconciling figures from the Mojave program and from Medicaid. He said the program has a potential to go up to almost $7.3 million in 2002 and nearly $8 million in 2003. He stated the subcommittee-working group felt that the expenses should be recorded in those accounts in some way to make it easier to track the expenses. He said when the Division of Mental Health and Developmental Services (MHDS) reported expenses for services provided to the mentally ill in the past, the Mojave program was not included, nor were other Title XIX expenses for some of the other counties, particularly Clark and Washoe Counties.
Mr. Guernsey stated the department has been attempting to find a solution to the problem and how best to track the revenues. He noted the department had a proposal to present during the hearing as to how to work with the department without placing an undue burden on the four agencies involved.
Elizabeth O’Brien, Administrative Services Officer II, Division of Mental Health and Developmental Services, Department of Human Resources, explained the proposal will create a transfer in from Medicaid for each of the four agency budgets that receive funds from Medicaid as a credit. The proposal also will create a category that will be the same in each budget account for payments to Mojave as a debit. She said the Mojave program will pay Medicaid, and when Medicaid reimburses the Mojave program it will create a provider report with a code that will be used to determine disbursement of the funds.
Senator Rawson asked whether it would be possible to have a reconciliation account within the budget to list all the revenue and payments. He suggested it would be helpful to have an account, perhaps under the administration budget, to demonstrate all the payments to the Mojave program. That way it could be tracked in the individual budgets and as a whole. Ms. O’Brien responded it would probably not create a problem to do so.
Mr. Guernsey reported the joint working group also discussed the exclusive nature of the services provided by the Mojave program. He said staff met with Dr. Carlos Brandenburg, administrator of MHDS, and Charles Duarte, administrator of the Health Care Financing and Policy Division, about the possibility of allowing additional provider groups to offer the same services as the Mojave program.
Mr. Guernsey drew attention to pages 6 and 7 of the closing packet, a report from Mr. Duarte describing some of the federal requirements and the tie-in with the state plan. In opening up services to other groups there would be certain quality assurance and monitoring activities that would have to take place, Mr. Guernsey reported. He noted there was concern Medicaid would not be able to adequately monitor the services. He said expanding those services at this point in time would place a greater hardship on the program, which has only limited monitoring and case management performed by MHDS.
Mr. Guernsey said there was a great reluctance on the part of the Department of Human Resources to open up the program services at this time for targeted case management. Ms. O’Brien expressed concern over the exclusivity with Mojave and opined a request for proposal (RFP) probably should be opened to others. She acknowledged it will be difficult to make the request or direct the effort.
Senator Rawson inquired who could best address the matter. Steven J. Abba, Principal Deputy Fiscal Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, responded the Medicaid state plan has language that created the exclusive relationship for targeted case management with a memorandum of understanding between Medicaid and MHDS and the service provider that calls for MHDS to serve in a gatekeeper capacity. He said Medicaid would have to approve any change.
Senator Rawson commented he had no opinion as to whether it would be good to expand services. He suggested asking Medicaid to recommend the best way to open up the services while maintaining gatekeeper control within MHDS. The senator voiced concern that questioning control over quality assurance (QA) and monitoring control would allow too much exposure. He warned the division should avoid any reason to bring about sanctions or penalties or loss of resources. He said the fact that the question cannot be answered indicates a recommendation for some sort of plan from Medicaid is needed. He suggested changes may best be made 2 years from now.
Carlos Brandenburg, Ph.D., Administrator, Division of Mental Health and Developmental Services, Department of Human Resources, stated:
I just want to respectfully disagree with Mr. Guernsey on the QA part. The Division of MHDS has been conducting QA reviews of Mojave. We have done, in fiscal year 1999 and 2000, we have done the targeted case management review of Mojave. We have also done QA reviews of their med clinic as well as their case management program. We have actually done that every year. . . . The question is, we could always do more, but I think overall you would be very, very pleased with the type of QA activity and oversight of that program that we do pertaining to the QA program.
I just wanted to go on record of disagreeing with my colleague.
Senator Rawson commented Dr. Brandenburg had done a good job, as expected. He opined it is not necessarily bad to have exclusive contracts, but he acknowledged there are safety-net providers that may be jeopardized. He said it may be well to make some policy decisions on the matter, in which case the issues must be “out on the table.” He suggested it might be advisable to handle it through the interim committee in order to keep the matter alive and to come up with some recommendations. Senator Rawson directed Dr. Brandenburg to make recommendations on how to open up the matter while, at the same time, maintaining gatekeeper control. The senator admitted Dr. Brandenburg’s conclusion may be there is no way to do that, but, he suggested, the process should be undertaken.
Ms. Tiffany stated she would like clarification. She reported she discussed the state plan with various people, and Charlotte Crawford, Director of the Department of Human Resources, clearly indicated there is not an exclusive for Mojave, that it was a typographical error, and she could contract out at any time without going through the state plan process. Ms. Tiffany declared she would like to have verification regarding the providers in writing. Senator Rawson said provisions could be made for specific guidance when the Medicaid budgets are closed.
In reference to gatekeeper control, Ms. Tiffany commented she has seen the Mojave program budget continuing to grow, and she questioned whether that was any kind of control. She added she would like to ensure Medicaid will not ultimately have a problem with exclusivity if clients are not offered another solution. She suggested the issue of exclusivity should be addressed during the interim. Senator Rawson suggested the closing could be followed with a Letter of Intent.
Senator Rawson noted decision unit E-450 reflects on appropriation of $100,000 provided for the suicide hot line in a bill last session. Mr. Guernsey responded it was appropriated as a onetime appropriation last session, and the Governor included it in The Executive Budget as a separate decision unit with a recommendation for $100,000 each year. Senator Rawson said in addition to priority lists for positions, he would like to start another list for line items to be cut. He suggested the list could be kept to help identify items that might have to be cut. Although it is important, Senator Rawson asked whether committee members would agree to add the E-450 item to that list.
Ms. Giunchigliani agreed to put the item on the cut list, and at the same time she concurred that the concept was good.
While agreeing a cut list is a good idea, Senator Coffin asked whether correspondence has been received from the agencies regarding cuts. Senator Rawson surmised the agencies are trying to see what the final budget situation will be and how extensive cuts will be.
Dr. Brandenburg interjected the division has prepared a series of scenarios for the Governor once the Economic Forum makes its report. Senator Coffin commented he had seen what appeared to be a letter from Ms. Crawford indicating the department would be unable to comply with the request for a cut list. Senator Rawson noted he had not seen such a letter.
Senator Rawson said a certain mechanical method has to take place so the budgets can be closed, and a priority list might be less disturbing to people.
E-900 Trans From SNAMHS & NMHI Page MHDS-4
Mr. Guernsey reported the MHDS administration recommended that Quality Assurance positions be transferred from the Nevada Mental Health Institute and Southern Nevada Adult Mental Health Services to the central administration in order to coordinate their activities.
Senator Rawson suggested the best method would be to close the budget according to staff recommendations with the addition of the line items associated with the Mojave program, including a revenue transfer, and to establish a reconciliation account to tie the transfers together, and to place decision unit E-450 on the priority list. He said it would be a good idea to add the 3 revenue officers, particularly in southern Nevada, and to ask the audit division to extend the audit to SNAMHS. He opined that would be worthwhile and would provide a way to determine what needs to be done.
Ms. Giunchigliani suggested the motion should include some form of a Letter of Intent regarding the Medicaid plan. Senator Rawson agreed.
MS. GIUNCHIGLIANI MOVED TO CLOSE BUDGET ACCOUNT 101-3168 ACCORDING TO THE STAFF RECOMMENDATIONS, WITH THE ADDITION OF LINE ITEMS RELATING TO THE MOJAVE MENTAL HEALTH SERVICES, INCLUDING THE TRANSFER OF REVENUES AND THE ESTABLISHMENT OF A TRANSITION ACCOUNT, AND TO PLACE DECISION UNIT E-450 ON THE PRIORITY-CUT LIST, AND TO ADD THE THREE REVENUE OFFICERS, AND TO ASK THE AUDIT DIVISION TO EXTEND THE AUDIT TO SNAMHS, AND TO ADD A LETTER OF INTENT REGARDING THE MOJAVE PROGRAM, AS DISCUSSED.
MS. TIFFANY SECONDED THE MOTION.
Ms. Leslie stated that, while she would vote for the motion, she wished to be on the record, saying:
I am really opposing putting the $100,000 for the suicide prevention hotline on the cut list. It is actually not going to hurt Reno and the rurals as much as it will hurt Las Vegas, because we have a strong program, had a strong program before the statewide hot line went in. Where the hotline has really helped is in the Las Vegas area where you all did not have a good program. I am really opposed to that.
Senator Rawson expressed great hope that sufficient revenue will be found so that the item will not have to be cut.
THE MOTION CARRIED UNANIMOUSLY.
* * * * *
HR, Nevada Mental Health Institute – Budget Page MHDS-7 (Volume II)
Budget Account 101-3162
Turning to page 8 of the closing list, Mr. Guernsey said the subcommittee reviewed staffing and inpatient capacity at the Nevada Mental Health Institute. He said NMHI is currently staffed for 50 inpatients. He indicated the addition of the Psychiatric Emergency Service (PES) unit last session had a positive effect on reducing the inpatient census. He noted there were revised requests from the administration to reduce 10 beds at NMHI, and thus lower the inpatient capacity to 40, and to transfer 7.67 full time equivalent (FTE) positions to the PES program to allow that program to operate 7 days a week, 24 hours a day.
Additionally, Mr. Guernsey said, the administration recommended that 12 intensive supportive living arrangement (SLA) beds be phased into the community over the next 2 years. He explained that would allow the institute to remove some of the more chronic clients from the institute and place them into more appropriate settings in the community. He noted the cost per placement would be approximately $4,700 per month for each individual, because they are fairly high maintenance people who require a great deal of care.
Mr. Guernsey referred to a data sheet (Exhibit D) provided by the division laying out the three scenarios, including the ten-bed reduction, adding the intensive SLA, and the enhanced staffing for PES. He indicated the far right hand column showed figures for the combined package, and the net effect would be to save the General Fund $332,512 the first year and $314,802 the second year. He said staff also considered the effect of phasing 12 inpatients out to the community. He provided two scenarios, one lowering the inpatient capacity from 40, or one with an increase in the vacancy savings. He said neither he nor the division were comfortable recommending reducing the inpatient capacity, and both preferred increasing vacancy savings. He said that would reflect the lower inpatient census and would give the division some flexibility, amounting to $200,000 the first year and $250,000 the second year. He noted the combined effect of all the proposals would amount to a General Fund savings of $1,097,314 over the 2 years of the biennium.
Mr. Guernsey suggested the committee might want to consider a Letter of Intent to inform the division it could return to IFC if it had difficulty in achieving that level of vacancy savings. He added the budget proposal also included adjustments for rent when the agency moves to the new hospital, because that will free building number 8. He said the division reviewed and will likely increase leases because in the past some have not covered utility costs. He noted there are minor increases for rental income, while costs for the new Revenue Officer at the institute will be paid from additional collections as depicted in the handout. He pointed out the increases in funding are driven by the increase in caseloads.
Senator Rawson questioned whether the recommendation was to make increases from vacancy savings rather than to cut the number of beds. Mr. Guernsey said the vacancy savings would be over and above the 10-bed reduction, and the savings would be generated from reduction of the 10 beds and the staff associated with that. He reiterated the administration plan is to reallocate 7.67 of the 15.67 positions to the PES, to provide funding for intensive case management, thus eliminating 8 positions, and then to increase the vacancy savings by 200 to 250. He acknowledged the vacancy savings are included in the budget, but not the other decisions.
Mr. Guernsey provided a separate packet (Exhibit E) for those who wished to investigate the matter further. He said it details all the decision units. He reiterated the proposal would give the division flexibility, and also would provide an additional option of having the intensive SLAs in the community, thus freeing beds. When asked by Senator Rawson, Mr. Guernsey responded he would recommend the combined package along with vacancy savings and technical adjustments on the rent.
Ms. Leslie agreed with Mr. Guernsey’s recommendations. She asked whether the PES at the institute would be raised to the same level as that in southern Nevada. Mr. Guernsey responded currently the PES program at the institute has not operated round the clock, and the proposal will allow them to do so. He said the staffing would still be somewhat less than that in Las Vegas, because there are more users in Las Vegas than in the north. He explained the institute feels the addition of 7.67 positions transferred to PES will allow the program to run 7 days a week, 24 hours a day.
Senator Rawson suggested a motion be made not only to reflect the combined recommendation, but also the inclusion of a Letter of Intent to allow the agency to return to the Interim Finance Committee to seek new allocations should difficulties arise.
MS. LESLIE MOVED TO CLOSE BUDGET ACCOUNT 101-3162 WITH THE RECOMMENDATIONS DISCUSSED AND TO INCLUDE A LETTER OF INTENT AS PROPOSED.
MS. GIUNCHIGLIANI SECONDED THE MOTION.
Senator Coffin asked whether many budgets will include Letters of Intent to allow agencies to return to IFC for additional funds. He opined salary savings have been overestimated.
Mr. Guernsey responded both the Nevada Mental Health Institute and, particularly, the Southern Nevada Adult Mental Health Services have experienced considerable levels of vacancy savings over and above the amounts included in the budget. He reported the reversion last year was over $860,000 in Las Vegas, and there may be a $1 million reversion this year. He explained the institute is also going to have a fairly large reversion this year. He called the turnover in positions at the agency level unfortunate, noting it results in savings. He said the institutes have a difficult time recruiting nurses and extraordinary difficulty recruiting pharmacists. He added there is a lot of turnover in the technician range and with psychiatrists, which has not been a problem in the past.
Senator Coffin expressed concern the jobs that should be filled would be left empty. Senator Rawson commented that seems to be the nature of the situation. Senator Coffin asked whether any “one-shot” positions were included in the budget. Mr. Guernsey responded the “one-shots” were separate from ongoing operations of the agency. He noted a lot of equipment was included in the maintenance items in the budgets for the 24-hour institutions, and the items over and above normal were included in the “one-shot” appropriations, separate from the operations of the agencies.
THE MOTION CARRIED. (SENATOR MATHEWS AND MR. DINI WERE ABSENT FOR THE VOTE.)
* * * * *
HR, Facility for the Mental Offender – Budget Page MHDS-13 (Volume II)
Budget Account 101-3645
Mr. Guernsey noted the account appeared on page 10 of the closing packet. He reminded the committee the facility is also known as Lake’s Crossing. He noted the 12-bed addition was completed. He opined the facility has been very well managed over the years, with only minor problems. He stated the facility has managed its budget very well.
Mr. Guernsey indicated the budget includes adjustments for providing services to the jails in Clark County and Washoe County, and some for other counties. He said those contracts have not been updated or reviewed in some time. As a result, the LCB staff proposed that those should be updated, and the adjustments are depicted in the closing sheets. He said the level of overtime in the budget is estimated at $14,231, whereas it was $86,600 during FY 2000 due to vacancies. Staff feels a realistic level should be $50,416 as the census should operate at a more manageable level, he said. He noted the agency agreed. He said that would create a General Fund savings of $36,184 just on overtime.
Mr. Guernsey noted those were the only basic technical adjustments to the budget.
MS. GIUNCHIGLIANI MOVED TO CLOSE BUDGET ACCOUNT 101-3645 WITH THE RECOMMENDATIONS MADE BY STAFF.
MS. LESLIE SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR MATHEWS AND MR. DINI WERE ABSENT FOR THE VOTE.)
* * * * *
HR, Rural Clinics – Budget Page MHDS-17 (Volume II)
Budget Account 101-3648
Mr. Guernsey said the technical adjustments included minor increases in the level of vacancy savings for the Rural Clinics budget. He explained the agency operates with 102.84 FTEs, and the Governor recommended 13.25 new FTE positions. He said in response to the Governor’s request to prioritize the positions, the Rural Clinics agency responded with a very detailed description of the services to be provided by the positions (Exhibit F) and the housing locations.
Senator Rawson suggested, if the budget must be cut, the budget should reduce the positions by half and increase the vacancy savings to provide flexibility for the agency. Mr. Guernsey pointed out the agency has experienced a great deal of caseload growth, and many times the clinics are the only place for people needing care. He reported he has heard that the clinics provide an excellent level of service, and he noted the Rural Clinics did not receive increases last biennium. He suggested the agency must catch up during the coming biennium, and if the funding is not available, the agency would welcome any resources that could be added. He conjectured the agency might provide a priority list should it become absolutely necessary. He admitted at this point he would be reluctant to single out any position.
Ms. Giunchigliani voiced agreement, saying the chairman’s proposal to add vacancy savings would allow the agency to determine which positions to add. She declared the committee should not select the positions. Senator Rawson opined the budget should be closed as recommended with vacancy savings for half of the new positions to be added to the priority list. He added he hoped no further adjustment would be necessary.
Mr. Dini asked what impact increasing the vacancy savings would have on the waiting list. Senator Rawson said he believed the agency will be fine if the budget is closed with vacancy savings so that no cuts would have to be made. He stated the only way he would agree to making the cuts would be if another $50 million had to be cut from the entire budget. Mr. Dini declared most of the clinics have long waiting lists. Senator Rawson averred cutting budgets is the most difficult task facing legislators.
MS. GIUNCHIGLIANI MOVED TO CLOSE BUDGET ACCOUNT 101-3648 IN ACCORDANCE WITH STAFF RECOMMENDATIONS.
MS. TIFFANY SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
* * * * *
HR, Southern Nevada Adult Mental Health Services – Budget Page MHDS-25 (Volume II) Budget Account 101-3161
Mr. Guernsey indicated staff recommended a number of technical adjustments in the budget to reflect more current computer prices, which were agreed to by the division. He said the agency, which has more positions than the Nevada Mental Health Institute, experiences the same level of turnover, yet it had a lower level of vacancy savings. He said staff recommends SNAMHS vacancy savings be adjusted to the level recommended at the institute for vacancy savings. He noted this adjustment should give the agency maximum flexibility.
Mr. Guernsey took note of the second paragraph on page 13 of the closing packet. He explained the major increase in the budget is for medication, which would increase by 49 percent over the FY 2000 level. He noted the agency has difficulty hiring and retaining pharmacists, who provide the key positions in monitoring medications. He added there have been turnovers of psychiatrists due to revenue problems.
Calling the medications “very important,” Senator Rawson voiced concern over the lack of pharmacy staff. He asked how much the pharmacists’ salaries would have to be increased to make the state competitive. Carlos Brandenburg, Administration, Division of Mental Health and Developmental Services, Department of Human Resources, responded the division has been working with the budget analyst, Joel Pinkerton, who has submitted a letter to Jeanne Green, Director of the Department of Personnel, regarding pharmacists’ salaries. He explained the state is not competitive and cannot recruit pharmacists. He asserted it is extremely important to provide a good pay package for pharmacists.
Senator Rawson interjected the funds could be deducted from the medication funding, but declared he would not want to do that because of the importance of the medication. He agreed something must be done. Dr. Brandenburg responded he, Mr. Pinkerton, Ms. Green, and Mr. Guernsey would confer and report back to the committee as soon as possible.
Senator Rawson asked whether two new positions under decision unit M-200 should be placed on a priority list. Dr. Brandenburg replied one position provides for a Medical Records Office Assistance for medical records, and one provides an Intensive Case Manager for the second year of the biennium. Senator Rawson asked whether it would be better to increase the vacancy savings, to which Dr. Brandenburg replied, “Absolutely.” He indicated that would be his preference.
Ms. Tiffany related 716 new medication clients have been included in the budget, and she had received a letter from Charlotte Crawford indicating some of the medications could be included in a pilot project addressed in a bill Ms. Tiffany has introduced. She suggested Dr. Brandenburg be asked to advise the committee how much the medication and medical clinics would cost.
Dr. Brandenburg responded, “I would prefer not to back out any monies from the medication budget. I would prefer you send the clients to us on your pilot project.” He reminded her he made the offer with the understanding he would be assisting her with her pilot project. He explained 716 new cases of the homeless population were not taken into consideration, so he offered to assist in providing medication for the homeless project. However, he said, he was not supportive of reducing the medication budget. He stated he would prefer that those clients be sent to the clinics where the clinics could provide medications for the homeless project.
Ms. Tiffany responded she had a problem with that, because homeless people often do not have the mental capacity to find transportation, and much of the outreach to them is performed in the field. She explained psychiatrists and the nursing staff actually take the medications to the people in the field. She asserted that if medications are institutionally based, the clients will never go there.
Senator Rawson stated he understood Dr. Brandenburg’s concern. He asked how much was required. According to his calculations, Dr. Brandenburg replied, it would cost approximately $77,000 in the first year of the biennium to back out 50 clients. He explained that was based on taking 50 times the cost of the prescription at $76.76 per prescription times 1.67 prescriptions per client. Dr. Brandenburg noted that amounted to approximately $6,400 per month for a total of $76,000, and it would be $161,000 for the second year.
Senator Rawson suggested the figures should be accepted for use in the case management pilot project. Ms. Tiffany opined $77,000 for 50 homeless clients would be a reasonable figure for the benefits they would receive.
Ms. Leslie surmised the agency would probably be serving those clients anyway. She asked whether funds would really have to be added. Dr. Brandenburg replied the agency should be serving the homeless population. However, he said, “In reality, we are not.” He explained that population was not included in the figures for the budget. He declared the homeless are a very select-targeted population that historically has been underserved and underrepresented within the division of MHDS.
Ms. Leslie conjectured the people come in and leave, then come back, and leave, so some are probably being served. Dr. Brandenburg agreed, but said the outreach cited by Ms. Tiffany into parks or under bridges to serve the population has been minor. Senator Rawson asked whether the Mojave program was providing that outreach. Ms. Tiffany said, “Not the outreach.” Ms. Leslie commented the point is that the outreach component is not included in the medication budget, and the funding should be added for outreach.
Senator Rawson suggested adding $77,000 to the medication allowance. He pointed out there is a bill addressing the problem, and the medication funding could be included therein.
Senator Rawson asked whether it would be possible to find more revenue to fund a community housing management position for southern Nevada. Dr. Brandenburg replied there are already resources and personnel to handle that, and the only need is to ensure the administrators provide necessary oversight.
MS. GIUNCHIGLIANI MOVED TO CLOSE BUDGET ACCOUNT 101-3161 ACCORDING TO THE STAFF RECOMMENDATION.
MR. GOLDWATER SECONDED THE MOTION.
Senator Rawson noted the pharmacist issue would be addressed by adding $77,000 in the medical pay bill.
THE MOTION CARRIED. (SENATOR RAGGIO WAS ABSENT FOR THE VOTE.)
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Welfare
HR, Child Support Enforcement – Budget Page Welfare-27 (Volume II)
Budget Account 101-3238
Steven J. Abba, Principal Deputy Fiscal Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, reported the staff is recommending the Child Support Enforcement program be closed as recommended by the Governor. He noted during the past interim the budget underwent some very tight funding times, and the Welfare Division had to take a number of actions to reduce funding because of the reduced Temporary Assistance for Needy Families (TANF) caseload. He explained there have not been sufficient state collections to support the budget as in previous biennia, and the Welfare Division had to lay off 45 positions and transfer a number of programs out of child support into the TANF budget.
Mr. Abba said it does not appear the program will have an additional state share of collections this biennium, because the TANF caseload is down. However, he said, in order for the budget to maintain a feasible level of operation, the division proposed instituting cost-recovery fees. He said the authority for the fees is built into the budget under decision unit E-276.
E-276 Working Environment & Wage – Page WELFARE-30
Mr. Abba said the division is proposing three different cost-recovery fees, as outlined on pages 17 and 18 of the closing packet. Basically two of the three fees, he said, could be instituted by regulation. He explained two of the fees would involve the division if the client receiving support asked the division to recover back child support. He noted that requires extensive research by the division. A portion of the fees would then be attached and would be retained in the budget.
Mr. Abba said the fee would require legislation. He explained currently the employer can attach a $3 fee for processing wage assignments. He said the division is making a proposal under Assembly Bill (A.B.) 69 to add $2 to the fee.
ASSEMBLY BILL 69: Imposes surcharge on payment of child support collected by district attorney to be used for programs for mentoring of children. (BDR 11‑110)
Mr. Abba stated the employer would retain the $3 fee, and the division would receive the $2 fee. The division would retain $1 of the fee, and $1 would be turned over to the local district attorney’s office to help maintain its child support operation. He said the division is currently proposing amendments to A.B. 69 to establish the mechanics for the fee. He noted if decision unit E-276 is approved, it would be considered approval of the authority to collect the cost-recovery fees and would signal approval by the division going forward to establish the two fees by regulation. He explained if A.B. 69 does not pass, the fee mechanism would not be available through regulation.
Senator Rawson remarked that seemed to be a reasonable approach. He affirmed approval of decision unit E-276 would leave the outcome to A.B. 69, but it would not affect the closing action.
Ms. Giunchigliani recalled the issue of fees came up during an earlier discussion in which it was noted the Governor approved of the approach. She asked whether the Budget Division agreed.
Michael J. Willden, Administrator, Welfare Division, Department of Human Resources, concurred that the Governor’s office was in support of A.B. 69.
MS. GIUNCHIGLIANI MOVED TO CLOSE BUDGET ACCOUNT 101-3238 ACCORDING TO THE STAFF RECOMMENDATION WITH ADJUSTMENTS AND APPROVAL OF DECISION UNIT E-276 PENDING PASSAGE OF A.B. 69.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR RAGGIO WAS ABSENT FOR THE VOTE.)
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HR, Child Support Federal Reimbursement – Budget Page Welfare-33 (Volume II)
Budget Account 101-3239
Mr. Abba reported the staff agreed with closing the budget according to the Governor’s recommendation. He noted the budget was reduced in scope for the upcoming biennium, primarily because child support collections are no longer processed through the account. He explained child support payments must be received and outsourced to the client within 48 hours. He said the budget now accounts solely for federal child support and federal incentive funds.
Mr. Abba drew attention to a chart on page 19 of the closing packet showing collections in FY 2000, and projected collections for the upcoming biennium.
SENATOR MATHEWS MOVED TO CLOSE BUDGET 101-3239 AS RECOMMENDED BY THE GOVERNOR.
MS. LESLIE SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR RAGGIO WAS ABSENT FOR THE VOTE.)
* * * * *
HR, Assistance to Aged and Blind – Budget Page Welfare-36 (Volume II)
Budget Account 101-3232
Mr. Abba said staff recommended caseload adjustments based on recent projections that show a reduction in the number of aged and blind recipients. He said the staff recommended a reduction of $60,353 in FY 2002 and $37,379 in FY 2003. He indicated no increases were recommended in the budget for clients’ personal-needs allowances or for the adult group care operator. He noted the major increases depicted in the budget apply to caseloads as well as to the cost for processing by the Social Security Administration (SSA).
Mr. Abba noted one closing issue that should be considered. He said the 1999 Legislature authorized a Letter of Intent that the Welfare Division should report back to the IFC during the past interim prior to processing the annual SSA supplement increase. He explained it was done regarding controversy over how distribution of the annual increase was implemented. He said during the past interim the Welfare Division reported twice to the IFC with recommendations on how to implement the increase.
Mr. Abba said the increase can be implemented in different ways. He said the personal-needs allowance of recipients can be increased, or there can be a rate increase for the adult group care operators, or there can be a combination of the two. He noted in hard times the increase can be used to reduce the General Fund obligation in the budget. Calling it a good informational tool, he reported staff recommended the Letter of Intent be reissued.
MS. GIUNCHIGLIANI MOVED TO APPROVE BUDGET ACCOUNT 101-3232 ACCORDING TO STAFF RECOMMENDATIONS WITH THE ADDITION OF THE LETTER OF INTENT AS DESCRIBED.
MR. DINI SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR RAGGIO WAS ABSENT FOR THE VOTE.)
* * * * *
HR, Employment and Training – Budget Page Welfare-38 (Volume II)
Budget Account 101-3267
Mr. Abba acknowledged the major proposal is to change the budget to the division’s child care budget. He explained the child care budget has grown significantly over the past several years and is nearly a $60 million program. He said the decision units in the 900 series reflect transfers out of employment and training staff to the welfare field services budget, from the New Employees of Nevada (NEON) to the TANF budget, and some ancillary staff transfers to the welfare administration budget in order to accommodate the transfer of all employment and training activities out of the account.
Mr. Abba explained that would leave only child care expenditures and staff in the account. He stated The Executive Budget recommends the title of the account be changed from “Employment and Training Program” to “Child Care Assistance and Development Program.” He said the staff agrees it would be a good idea to isolate the expenditures. He added Employment and Training would be housed in the Welfare Field Services budget where all the other eligibility activities take place. He said the NEON program would be isolated in a specific category in the TANF budget, allowing it to be tracked easily.
Referring to the other major policy issue before the committee, Mr. Abba related at the last two committee hearings testimony was received that there will be a significant amount of new child care funding available. He said the division estimates the additional child care funding for FY 2002 and FY 2003 will be about $4.6 million. He reported at the IFC meeting held the previous day the committee approved an additional $4.1 million in child care funding for the current biennium.
Mr. Abba added that child care money is coming in so fast that the division has not been able to gear up to spend the funds. He stated the division anticipates there will be a $6.2 million carry-forward of unspent child care funds in FY 2001. He explained that means approximately $10.8 million in child care funds for FY 2002 and $4.6 million for FY 2003 that were not included in The Executive Budget.
Mr. Abba reported the IFC asked the division to return to establish recommendations on how to spend the additional child care funds. He noted the information on page 23 of the closing packet discusses the division’s proposal. He stated the proposal is to allocate approximately $3.7 million each year in FY 2002 and FY 2003 as an augmentation to the at-risk child care category. He said those funds will be used for a more aggressive outreach enrollment effort to target 1,850 additional children to receive child care funds. He said another proposal will add $144,218 each year to the discretionary child care category to serve an additional 72 children.
According to Mr. Abba, moving the added child care funds in those ways will allow the division to serve an estimated 13,600 children per month in FY 2002 and 14,500 per month in FY 2003. He noted the division is currently serving 9,600 to 9,800 children.
Mr. Abba said the division also proposes to establish a tiered reimbursement for child care providers. He explained the new concept is designed to improve the quality of child care, and to recognize those who provide quality child care with increased reimbursement. He said the division proposed to allocate approximately $527,000 each fiscal year in the form of grants to child care facilities that show the funds would be used for facility improvements. He said $100,000 would be allocated to child care centers that wish to go through an accreditation process, which he characterized as fairly complex.
Mr. Abba said $1.5 million would be allocated to increase child-care subsidy payments to providers meeting higher levels of care. He noted the division has not established the criteria of higher levels of care yet, but the division will work with the child-care advisory committee to establish those levels. He surmised those will include facilities that hire more highly trained child care workers, that have higher staffing ratios, that serve more toddlers or infants, or that serve more troublesome children. He noted the division plans to establish performance measures to gauge the groups that request additional levels of reimbursement.
Drawing attention to page 24 of the closing packet, Mr. Abba noted the adjustments proposed by the division as to how to spend the additional funding. He said the page shows how the funds will look coming into the budget, and what expenditures will take place. He indicated the division has requested the establishment of a separate category to recognize “systems and eligibility.” He explained the category will recognize the costs to subcontractors to maintain child care data systems and eligibility costs.
Mr. Abba reported in previous meetings the division suggested other options for consideration. He said his testimony was based on the division’s first priority. He noted other options discussed include expansion of the program by increasing eligibility, adjusting the sliding fee scale, which the division is not recommending, and increasing subsidy rates for infants. He said the latter recommendation would probably be accommodated through the tier reimbursement system.
Mr. Abba noted the committee also should make a determination on whether to create decision unit E-350. It recommends re-establishing four Child Development Specialist positions that were formerly located in the Family to Family Connection budget, found on page HR ADMIN 24 in the Human Resources Administration budget, decision unit E‑250, which will become the Child Care budget. He said the funds to re-establish the positions will be done with Child Care funds. He noted the division indicated that the duties and responsibilities of the positions will not change from what they have been under the Family to Family Connection budget. He explained the division will give training to child care providers by going out to the facilities, and they will target facilities in jeopardy of losing licenses because of problems with the ways they provide child care.
Mr. Abba stated the staff agrees with moving the specialist positions. He noted the positions could give more focus to child care activities currently performed by the Welfare Division. He said if the committee approves of the tiered reimbursement system, it should be of help.
Mr. Abba said decision unit E-477 reflects elimination of six positions, one of which will go to decision unit E-478.
E-477 Effectiveness of Family Service – Page WELFARE-42
E-478 Effectiveness of Family Service – Page WELFARE-43
Mr. Abba explained the Welfare Division is essentially trading six positions for new positions in other budgets to be heard at a later date. He said decision unit E‑478 recommends a new Quality Control Specialist I, which would be used to audit billings going out to childcare providers. He said staff feels that is a reasonable recommendation since the program has increased in size significantly.
Mr. Abba noted technical adjustments reflected in the budget. He said they primarily reflect changes in pricing on computer equipment.
Senator Rawson asked whether the budget will include reestablishing the four Child Development Specialist positions in E-350, and the new Quality Control Specialist I if a motion were made to approve as recommended by staff. Also, he asked whether the committee will need to approve the division’s proposal as to how to spend the child care funds. Mr. Abba replied it will.
MS. GIUNCHIGLIANI MOVED TO CLOSE BUDGET ACCOUNT 101-3267 ACCORDING TO THE STAFF RECOMMENDATION AS DISCUSSED, AND WITH THE RECOGNITION THAT THE WELFARE DIVISION WILL SEEK APPROVAL ON EXPENDITURE OF CHILD CARE FUNDS FROM THE COMMITTEE.
MS. LESLIE SECONDED THE MOTION.
Senator Coffin asked staff to go over the testimony of the constituency groups regarding the recommendation. Mr. Abba recalled the proposal on tiered reimbursement was briefly discussed, and there were no unfavorable comments from constituent groups. He said information from the Welfare Division has indicated using the funds for tiered reimbursement is the number one recommendation from the Child Care Advisory Group, which he indicated is made up of various advocate and constituent groups.
After hearing testimony, Ms. Leslie commented, she had some questions, and she made contact with two child care groups in northern Nevada, one public and one private. She reported what they told her was consistent with what the department indicated, especially in trying to improve the quality of child care. She said they felt that would be the hardest task, but the most important. She expressed satisfaction with the proposal from the division regarding quality, and said she hoped the division will report back on a regular basis to determine whether the funding actually improves the quality of child care.
Senator Rawson voiced approval of increasing the number receiving care to 14,500 children per month.
THE MOTION CARRIED. (SENATOR RAGGIO WAS ABSENT FOR THE VOTE.)
* * * * *
HR, Energy Assistance - Welfare – Budget Page Welfare-49 (Volume II)
Budget Account 101-4862
Senator Rawson noted the budget was addressed on page 26 of the closing packet.
Mr. Abba said the budget closings for the Low Income Home Energy Assistance (LIHEA) program will bring forward additional funds received from the federal government by the Welfare Division. He said that was a onetime grant award that was approved by the IFC on March 19. He said the funds that were reserved by the division and approved by the IFC were distributed evenly between FY 2002 and FY 2003. He noted that was the basic adjustment reflected in the closing sheets.
Mr. Abba pointed out there were several pieces of legislation under review that could have significant impact and enhancement on the program. He said two pieces of legislation propose $5 million appropriations, and Assembly Bill (A.B.) 349 would establish a fund for energy assistance.
ASSEMBLY BILL 349: Creates fund for energy assistance to be administered by bureau of consumer protection within office of attorney general.
Mr. Abba explained the fund would be based on an increase in the mill assessment on public utilities. He said the budget could be closed as recommended, and work programs could be processed to bring in additional funding during the interim, depending upon what happens with the legislation. He said the U.S. Senate is currently considering some legislation attached to bankruptcy legislation that would significantly enhance the LIHEA program.
Mr. Abba said there is a possibility a lot more funding may be available, and it could be accessed through work programs. He explained the division has indicated in testimony that it does not anticipate the necessity to adjust staffing for FTEs, but any enhancements would be accommodated through contractor staff. He said there will be some need for operational increases as well as data processing.
Ms. Giunchigliani asked whether there is any way to establish a program to perform home audits to provide for repairs, rather than to pass out funds. She said the matter was discussed in relation to two bills and whether it would be more appropriate. She suggested a message be included in the work program to make homes more energy efficient so they will not need to be subsidized. Senator Rawson agreed expenditures should be decreased through improvements rather than pay a subsidy.
Mr. Abba interjected his belief the LIHEA program had more federal funding and that a transfer was made from the LIHEA budget to the Weatherization budget to do just that. He suggested if more funds come in from Congress with no attachments as to how the funds should be used, perhaps a Letter of Intent could be given to the Welfare Division to transfer those funds to weatherization.
Mr. Willden said 10 or 15 percent of federal funds received from the LIHEA allocation can be transferred to the Weatherization program. He said the transfer has been made in the past when more funds have been made available. He noted A.B. 349 includes a provision that 25 percent of the funds collected through that process should go to Weatherization and conservation measures, and 75 percent will go to the LIHEA subsidy program.
Ms. Giunchigliani opined there is a real opportunity to perform some prevention work with the funds. She recalled a discussion that not enough auditors were available, but she suggested additional revenue might allow for an entire community-based program. She suggested those in the building trades might be approached to dedicate individuals to inspect homes in order to expand the process.
Mr. Willden added Nevada is one of the few states in the nation that received a $1 million Residential Energy Assistance Challenge (REACH) grant to be used over the next 2 or 3 years. He said the division is contracting with local community-based organizations to make energy improvements by targeting LIHEA households and Head Start households.
MS. GIUNCHIGLIANI MOVED TO APPROVE BUDGET ACCOUNT 101-4862 AS RECOMMENDED BY STAFF WITH THE INCLUSION OF A LETTER OF INTENT.
MS. LESLIE SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR RAGGIO AND MS. TIFFANY WERE ABSENT FOR THE VOTE.)
* * * * *
Director’s Office
HR, State and Community Collaborations – Budget Page HR Admin-34 (Volume II)
Budget Account 101-3276
Larry L. Peri, Senior Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, explained the account was formerly known as the Chapter I Special Education budget account. He indicated the subcommittee heard the budget on March 9. He suggested that the subcommittee consider several technical adjustments.
Mr. Peri noted the agency requested the restoration and continuance of the federal Head Start grant, which had been eliminated in the base budget because funding expired. He said the agency submitted a revised grant award application, which will extend the grant for $100,000 per year. He noted a copy of the grant award was attached to the closing packet as page 29. He said the grant will support 1.51 FTE positions, which has been included on the closing sheet.
Mr. Peri said decision unit E-250 is related to decision unit E-800, both depicted on page 28 of the closing packet.
E-250 Eliminate Duplicate Effort – Page HR ADMIN-36
E-800 Cost Allocation – Page HR ADMIN-37
Mr. Peri said decision unit E-800 reflects the allocation of costs recommended in The Executive Budget. He explained the allocation will charge four budget accounts within the director’s office for a portion of the account administrator’s time and a portion of the Administrative Services Officer’s time. He stated the Title XX budget, the Community Services Block Grant, the Family Resource Centers, and the Family to Family Connection Program budget accounts receive assistance from two positions within this budget. That assistance includes administrative direction, and accounting assistance and oversight.
Mr. Peri said the federal Individuals with Disabilities Education Act (IDEA) grant funds the positions in the budget. He noted there was concern the positions could not be charged to the IDEA grant and still be allocated to other programs. Therefore, he said, the intent of decision unit E-800 is to charge the four accounts for a portion of the time spent by the positions and their oversight. He said decision unit E-800 had to be adjusted to reflect the most current salaries recommended in the budget, and it had to be adjusted upwards by $2,042 in FY 2002 and $5,200 in FY 2003. He said the staff recommends E-800 be approved as modified.
Mr. Peri noted decision unit E-250 had been a negative that was inserted as an alternative if the grants management unit proposed by the director’s office was approved. He clarified the E-250 decision unit was inserted to delete and eliminate E-800. He reminded the subcommittee the grants management concept was not approved; therefore decision unit E‑250 is not necessary. He explained since it was a negative decision unit, positive numbers will have to be added back in to eliminate it. Thus, he said, decision unit E-250 will be gone, and decision unit E‑800 will stay and provide some support for the two positions in the account, which will provide oversight to the other four programs.
MS. LESLIE MOVED TO CLOSE BUDGET ACCOUNT 101-3276 ACCORDING TO THE STAFF RECOMMENDATION.
MR. DINI SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR RAGGIO AND MS. GIUNCHIGLIANI WERE ABSENT FOR THE VOTE.)
* * * * *
Child and Family Services
HR, Youth Alternative Placement – Budget Page DCFS-53 (Volume II)
Budget Account 101-3147
Mr. Peri explained the budget provides allocations primarily to the China Spring Youth Camp in Douglas County, and the Spring Mountain Youth Camp in Clark County. He pointed out fees are collected in all counties except Clark County for operation of the China Spring Youth Camp.
E-402 Reduce Recidivism & Juvenile VI - Page DCFS-54
Mr. Peri indicated funding for a new program is contained in decision unit E-401. The program, entitled Aurora Pines Girls’ Facility, will be sited at the China Spring Youth Camp. He said a potential amendment takes into consideration information provided by the China Spring facility regarding a delay in the opening of the new girls’ facility until July 1, 2002, and a reduction in the original planned bed capacity from 24 to 16. He explained that change will result in a reduction of funding down to $43,787 in the first year of the biennium, and $657,473 in the second year, FY 2003.
Mr. Peri pointed out the next three pages in the closing packet, pages 31 through 33, detail the amendment proposed by China Spring Youth Camp. He said the representatives from China Spring who attended the last subcommittee hearing also suggested consideration be granted to using a portion of the savings to add back into the China Spring budget.
Mr. Peri said the second adjustment to be considered is in decision unit E-475.
E-475 Effectiveness of Family Service – Page DCFS-54
Mr. Peri noted the suggestion in The Executive Budget was to set aside and delete funding in the Summit View Youth Correctional Center budget equal to three beds, and place it into the Youth Alternative Placement account to allow the division the flexibility to purchase contract beds for youth that cannot be served by other programs or facilities under the Division of Child and Family Services (DCFS). He said when the budget was heard earlier, the DCFS administrator indicated he would prefer the funds be restored back into the Summit View Youth Correctional Center budget. He noted that will still give the administrator the flexibility in the future to utilize funding equal to three-bed days if he has to purchase contract services. He reported staff was recommending that the contract placements equal to three-bed days be eliminated in the Youth Alternative Placement account, and restored to the Summit View Correctional Center budget.
MS. GIUNCHIGLIANI MOVED TO CLOSE BUDGET ACCOUNT 101-3147 ACCORDING TO STAFF RECOMMENDATIONS.
MS. TIFFANY SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR RAGGIO WAS ABSENT FOR THE VOTE.)
* * * * *
HR, C&FS -Juvenile Correctional Facility – Budget Page DCFS-56 (Volume II)
Budget Account 101-3148
Mr. Peri said the budget account relates to the Summit View Correctional Center. He noted primary expenditures include payments to Youth Services International, a private operator of the facility, which is a secure facility located in Clark County near Nellis Air Force Base.
Mr. Peri said the facility opened on June 1, 2000, and with a capacity of 96 beds, it accepted 30 male youths on its first day of operation. He said the census as of February 15, 2001, was 77 male youths.
Mr. Peri noted there were several adjustments to be considered. He said there is a recommended increase in the base budget for support from the Juvenile Accountability Incentive Block Grant budget account. He said at the time the budget was closed by the subcommittee on April 12 it noted there was an excess of $324,780 in discretionary funding that was transferred into the budget. He said at the time the subcommittee determined the excess funds would decrease General Fund by a like amount. He said the recommendation will implement that approval and allocate half the amount, $162,390, in each year of the biennium for expenditures, and reduce the General Fund by the same amount each year.
According to Mr. Peri, several other small adjustments will align contract monitor expenses. He explained there is a state employee contract monitor in the account who monitors the operation of the contractor on behalf of the state. He said the contractor pays all costs associated with that position. He said the contract services charged and billed to the contractor were overstated in the first year by $712, which will be reduced and replaced by General Fund, and in the second year it was understated by $1,801, which should be increased and should reduce the General Fund. He noted the second technical adjustment depicted on page 34 of the closing packet aligns the related expenses for the contract monitor services.
Turning to page 35, Mr. Peri noted the final proposal, as outlined in the previous budget, recommended funding equal to three bed days be transferred to the Youth Alternative Placement budget. He said that action would eliminate decision unit M-200, but, as he stated earlier, the administrator indicated he would prefer the funds remain in this account. By approving the recommendation in that budget, he said:
It would leave the funding in this budget account, still with the understanding that the administrator would have that flexibility to even move the monies out of the contract placement expenditure category into the new category for specialized treatment within this account. So, it would leave the funding where it originated and still allow the administrator flexibility.
MS. TIFFANY MOVED TO CLOSE BUDGET ACCOUNT 101-3148 ACCORDING TO THE STAFF RECOMMENDATION.
MS. GIUNCHIGLIANI SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR RAGGIO WAS ABSENT FOR THE VOTE.)
* * * * *
HR, Caliente Youth Center – Budget Page DCFS-59 (Volume II)
Budget Account 101-3179
Mr. Peri stated the one adjustment for consideration in the account will properly reflect the retirement code for the superintendent’s unclassified position. He said correcting it will provide savings in the General Fund of $1,261 in FY 2002 and $1,299 in FY 2003. There were no other recommended adjustments.
Senator Rawson asked whether anyone was being demoted by the action. Mr. Peri assured him that was not the case.
MR. DINI MOVED TO CLOSE BUDGET ACCOUNT 101-3179 ACCORDING TO THE STAFF RECOMMENDATION.
MS. GIUNCHIGLIANI SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR RAGGIO WAS ABSENT FOR THE VOTE.)
* * * * *
Senator Coffin asked what effect the budget reduction might have on retirement. Mr. Peri responded the recommendation simply shows the unclassified salary at the level established in the Unclassified Pay Bill and the recommended salary increases by the Governor. He said it also reflects the Shared Employee-Employer Retirement Contribution. He said the incumbent is on an employer paid law-enforcement retirement, and it will not affect that individual’s retirement. He explained the budget reflects the proper dollars, and then whatever plan the incumbent is on is accommodated by that amount.
HR, Nevada Youth Training Center – Budget Page DCFS-63 (Volume II)
Budget Account 101-3259
Mr. Peri said the Nevada Youth Training Center account had a couple of small adjustments to be considered. He said there is an adjustment to the base budget to increase the transfer from education revenue item for special education services provided by the Nevada Youth Training Center to those who reside there. He said it will be increased by $1,793 in each year of the biennium.
Mr. Peri noted another small reduction of $50 to properly reflect the cost of reprints of the Nevada Revised Statutes. He said the total adjustments will reduce the General Fund by $1,843 in FY 2002 in $1,793 in F 2003.
MR. DINI MOVED TO CLOSE BUDGET ACCOUNT 101-3259 AS RECOMMENDED BY STAFF.
MS. TIFFANY SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR RAGGIO AND MRS. CEGAVSKE WERE ABSENT FOR THE VOTE.)
* * * * *
HR, Youth Parole Services – Budget Page DCFS-69 (Volume II)
Budget Account 101-3263
Mr. Peri stated the budget includes one small adjustment in the base. He said $914 was included in each year of the biennium for the Information Services category that should have been removed. He said the revised purchasing assessment was originally recommended in the budget under decision unit M-100, and the staff revision would remove that and reduce General Fund by $914 in each year of the biennium.
MR. DINI MOVED TO CLOSE BUDGET ACCOUNT 101-3263 IN ACCORDANCE WITH STAFF RECOMMENDATIONS.
MS. GIUNCHIGLIANI SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR RAGGIO AND MRS. CEGAVSKE WERE ABSENT FOR THE VOTE.)
* * * * *
There being no further business to come before the hearing, Senator Rawson adjourned the hearing at 10:05 a.m.
RESPECTFULLY SUBMITTED:
Judy Jacobs
Committee Secretary
APPROVED BY:
Senator Raymond D. Rawson, Chairman
DATE:
Ms. Christina R Giunchigliani, Chairman
DATE: