MINUTES OF THE MEETING OF THE JOINT SUBCOMMITTEE
ON PUBLIC sAFETY/NATURAL RESOURCES/TRANSPORTATION
OF THE
SENATE committee on Finance
AND THE
ASSEMBLY COMMITTEE ON WAYS AND MEANS
Seventy-First Session
May 4, 2001
The Joint Subcommittee on Public Safety/Natural Resources/Transportation of the Senate Subcommittee on Finance and the Assembly Committee on Ways and Means was called to order by Chairman David R. Parks at 7:55 a.m., on Friday, May 4, 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.
SENATE MEMBERS PRESENT:
Senator Lawrence E. Jacobsen, Chairman
Senator William R. O’Donnell
Senator Joseph M. Neal Jr.
ASSEMBLY MEMBERS PRESENT:
Mr. David R. Parks, Chairman
Mr. Bob Beers
Mrs. Vonne S. Chowning
Mr. John W. Marvel
Mr. Richard D. Perkins
STAFF MEMBERS PRESENT:
Gary L. Ghiggeri, Senate Fiscal Analyst
Mark W. Stevens, Assembly Fiscal Analyst
Carla Watson, Program Analyst
Bob Atkinson, Program Analyst
Mark Krmpotic, Program Analyst
Bob Williston, Committee Secretary
OTHERS PRESENT:
Darrell Rexwinkel, Administrative Services Officer IV, Department of Prisons
Jackie Crawford, Director, Department of Prisons
Steve Robinson, State Forester Firewarden, Division of Forestry, State Department of Conservation and Natural Resources
Stephanie Licht, Lobbyist, Elko County Board of Commissioners
Virginia Lewis, Deputy Director, Motor Vehicles, Department of Motor Vehicles and Public Safety
Richard Kirkland, Director, Department of Motor Vehicles and Public Safety
Michael E. Hood, Chief, Nevada Highway Patrol Division, Department of Motor Vehicles and Public Safety
BUDGET CLOSINGS – DEPARTMENT OF PRISONS
Carla Watson, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, stated there are two outstanding issues involving maintenance positions, one at the Northern Nevada Correctional Center and the other at High Desert State Prison.
Northern Nevada Correctional Center – Budget Page PRISONS-44 (Volume 3)
Budget Account 101-3717
Ms. Watson reviewed decision unit E-277 on page 4 of the Joint Subcommittee on Public Safety/Natural Resources/Transportation Closing List #8 (Exhibit C). She pointed out that the Electronics Technician III position in this unit had been approved by the Assembly and the issue was left unresolved on the Senate side.
Mr. Parks suggested it might be worthwhile considering whether the Senate wished to act on this and whether the Assembly would reconsider its recommendation from the previous meeting.
Senator O’Donnell expressed a conviction that the Assembly would “cave in.”
Mr. Parks noted that, given the fiscal constraints the committee is under, perhaps this might be duplication. He stated that not only is the committee looking at putting $36,000 in for maintenance contracts, but also it is looking at $88,000 for creating a position without knowing whether the position will be qualified and certified to perform the as yet unspecified functions at the Northern Nevada Correctional Center (NNCC).
ASSEMBLYMAN MARVEL MOVED TO RESCIND THE PREVIOUS ACTION BY THE ASSEMBLY MEMBERS WITH RESPECT TO DECISION MODULE E-277 OF BUDGET 101-3717.
ASSEMBLYMAN PERKINS SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
* * * * *
Mr. Parks explained that the committee should discuss the entire decision unit E‑277, and the committee must determine whether the Electronics Technician III is needed, and whether it should proceed with the $36,000 maintenance contract.
Senator O’Donnell stated that he had installed, operated, and programmed electronic locks in buildings he has constructed. He pointed out that they are very sophisticated, but they do not always work correctly. He suggested that, although the committee deleted one position and decided to go to a contract, he is still in favor of keeping the Electronics Technician III position. He asked whether there is another building and maintenance position.
Mr. Parks replied that there is a position at the High Desert State Prison (HDSP), not the NNCC facility.
Ms. Watson explained that the second position is at High Desert State Prison and is a Maintenance Repair Specialist II that was also going to be utilized as a locksmith.
Mr. Marvel pointed out that is in another budget.
Senator O’Donnell acknowledged that fact, and stated he was trying to rationalize keeping the Maintenance Repair Specialist position while deleting the Electronics Technician position in this budget.
ASSEMBLYWOMAN CHOWNING MOVED TO APPROVE THE MAINTENANCE CONTRACT ONLY IN BUDGET 101-3717
ASSEMBLYWOMAN DE BRAGA SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR NEAL WAS ABSENT FOR THE VOTE.)
* * * * *
High Desert State Prison – Budget Page PRISONS-73 (Volume 3)
Budget Account 101-3762
Ms. Watson reviewed decision unit E-284 on page 9 of Exhibit C. This is recommended funding for 1 Maintenance Repair Specialist II. She stated that testimony provided by the agency at the last hearing indicated that it would now like to utilize this position as a locksmith.
Mr. Parks noted the justification that had been provided was less than significant. Ms. Watson agreed, and said she based that on the fact that HDSP has 14 existing maintenance staff.
Mr. Parks asked whether the Assembly had approved the Maintenance Repair Specialist position. Ms. Watson replied that the Assembly had approved the position but it was unresolved on the Senate side.
ASSEMBLYWOMAN CHOWNING MOVED TO RESCIND THE APPROVAL OF DECISION MODULE E-284 BY THE ASSEMBLY MEMBERS.
ASSEMBLYWOMAN DE BRAGA SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY AMONG THE ASSEMBLY MEMBERS.
* * * * *
Mr. Parks asked whether the High Desert State Prison once had a locksmith position. Ms. Watson responded that it originally had a locksmith position and that position was subsequently reclassified as a Facility Supervisor.
Senator O’Donnell pointed out that the facility supervisor will be a locksmith if the position requested in this decision unit is deleted.
Mr. Parks asked whether the High Desert facility has a locksmith contract. Ms. Watson responded that is not in the budget.
Mrs. de Braga inquired whether the facility could just hire someone if there is any need for repairs rather than have a full-time position. Ms. Watson stated it is her understanding that HDSP utilizes existing staff when possible, and if there is work that needs to be done that staff cannot perform outside help is contracted. Mrs. de Braga asked whether that would come out of the maintenance budget, and Ms. Watson replied that it would.
Mr. Marvel pointed out that is a new prison. He asked if there is a warranty on the doors. Ms. Watson explained that there should be a warranty, but she was unaware of the time period of the warranty.
Mr. Marvel stated that he feels the committee should be looking at that because these doors are very expensive. Mr. Parks noted that there is a rack and pinion door system throughout the facility.
Darrell Rexwinkel, Administrative Services Officer IV, Department of Prisons, stated that generally the warranty on most equipment does not exceed 1 year. He said he was unsure about the locking system. He noted that it is a new facility and as time goes on and the use of the facility continues to expand the services of a locksmith will be needed.
Jackie Crawford, Director, Department of Prisons (DOP), reiterated that High Desert State Prison is a new prison. She stated that when it was opened a number of people were transferred from the Southern Nevada Correctional Center to fill some of the positions. She explained when the facility opened it was determined that a Facility Supervisor was needed because there were a number of maintenance people. She stated that was necessary so work could be prioritized and managed. She said the individual, who was the locksmith and worked statewide at that time, had the credentials to become a Maintenance Supervisor. She stated that position was upgraded to Facility Supervisor.
Ms. Crawford stated that the supervisor probably could continue to perform a dual role, but, she explained, the rack and pinion lock requires a lot of maintenance. She pointed out that, having come from Lovelock Correctional Center, she knows that rack and pinion systems have to be maintained on an ongoing basis. She stated that it usually takes two people to make repairs if the doors have to be upgraded or managed. She claimed the position is needed. She stated that, should the position not be approved, a dual role will have to be imposed on someone.
Ms. Crawford pointed out that the decision to upgrade that position was a management decision made by her, and she maintained it was a good decision. She stated that her people have to be supervised and the work prioritized, and they must be accountable.
Mrs. de Braga suggested it would be sensible, since the committee knows what the maintenance problems are, to ensure that one of the people hired for the maintenance staff has expertise with these locks.
ASSEMBLYWOMAN DE BRAGA MOVED THAT THE MAINTENANCE REPAIR SPECIALIST II POSITION NOT BE APPROVED IN DECISION UNIT E-284.
ASSEMBLYWOMAN CHOWNING SECONDED THE MOTION.
Senator O’Donnell said he believes the position should be left in place. He stated that the facility needs a locksmith. He acknowledged the there is a concern for saving money, but he stated that “you can’t put the public at risk” for a facility that is housing medium and high security inmates. He characterized the situation as “you can pay me now or you can pay me later.” He stated that if these locks are not repaired and maintained, it will be an expense to the state anyway.
Senator O’Donnell expressed his support for Director Crawford. He stated that she has turned the whole prison system around and he will concur with her when she states that she needs this position.
Mr. Parks suggested that what gave the committee a lot of concern was the justification for this position. He said it was requested to supervise inmate repair crews while they work on equipment installed in the laundry, culinary unit, inmate store, and canteen. He said that was seen as being somewhat of a duplication of other existing maintenance staff activities.
Mr. Rexwinkel explained that there was a reclassification request initiated in July 2000 to take a Correctional Officer and reclassify that position as a locksmith. He stated that request made its way to the Interim Finance Committee (IFC) at the last meeting and the Department of Prisons evaluated it and decided the department could not do without the Correctional Officer. He pointed out that 14 correctional officers are being moved from Southern Desert Correctional Center (SDCC) to HDSP to take care of Unit 8 when it opens, and the Correctional Officer is needed for security reasons. He said that is the reason the request to classify the position was withdrawn.
Mr. Rexwinkel stated that the new request in the budget could help take care of the locksmith duties. He reiterated that the position is needed.
THE MOTION CARRIED ON THE ASSEMBLY SIDE. THE MOTION FAILED ON THE SENATE SIDE. (SENATOR JACOBSEN VOTED NO. SENATOR NEAL WAS ABSENT FOR THE VOTE.)
* * * * *
SENATOR O’DONNELL MOVED TO APPROVE THE POSITION OF MAINTENANCE REPAIR SPECIALIST II INDICATED IN DECISION UNIT E‑284.
ASSEMBLYMAN MARVEL SECONDED THE MOTION.
THE MOTION FAILED. (SENATOR NEAL WAS ABSENT FOR THE VOTE.)
* * * * *
Mr. Parks declared the Senate and the Assembly to be still at an impasse.
Gary L. Ghiggeri, Senate Fiscal Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, stated that the Assembly closed by eliminating the position and the Senate has closed leaving the position in. He concluded that will be a difference that will have to be resolved by the full committee.
Mr. Parks requested that, in the meantime, something should be submitted in writing to the committee because it would be helpful.
Ms. Watson stated that the next three accounts to be discussed relate to facilities that house female offenders.
Southern Nevada Women’s’ Correctional Facility – Budget Page PRISONS-39 (Volume 3) - Budget Account 101-3761
Ms. Watson notified the committee that there has been a change in the minimum custody levels. She explained that in the 1999 session the minimum custody level for female offenders was 47 percent of the projected female population. She stated that has decreased to 36 percent, which means fewer of the less expensive facilities are projected to be utilized over the 2001-03 biennium.
Ms. Watson reviewed the technical adjustments and decision units outlined on page 12 and of Exhibit C. She stated that the staff reversed the consolidation and recorded expenditures in their respective traditional expenditure categories. She also said that the Base Transfers from the Inmate Welfare Fund for cremations are reduced by $433 each year, and the base General Fund is increased by a net of $628 in FY 2002 and $588 in FY 2003.
M-200 Demographics/Caseload Changes – Page PRISONS-41
Ms. Watson stated the latest projections for inmate populations result in a savings of $129,371 in FY 2002 and a deficit of $151,788 in FY 2003 for a net shortfall of $22,417 for the biennium. She indicated the required adjustments have been made in the closing sheets.
E-983 Transfer Base to 3711 – Page PRISONS-41
E-984 Transfer M200 to 3711 – Page PRISONS-42
E-985 Transfer E720 to 3711 – Page PRISONS-42
Ms. Watson said these modules represent reversals from the Correctional Facilities budget account 3711 and reestablish the budget in its original form.
E-720 New Equipment – PRISONS-41
Ms. Watson asked whether the subcommittee wishes to approve funding for new equipment as recommended in The Executive Budget.
SENATOR JACOBSEN MOVED TO CLOSE BUDGET 101-3761 WITH ADJUSTMENTS RECOMMENDED BY THE STAFF.
ASSEMBLYMAN PERKINS SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR NEAL WAS ABSENT FOR THE VOTE.)
* * * * *
Jean Conservation Camp – Budget Page PRISONS-134 (Volume 3)
Budget Account 101-3748
Ms. Watson reviewed the technical adjustments and decision units outlined on pages 14 and 15 of Exhibit C. She said the base General Fund is decreased by $12,569 in FY 2002 and $12,262 in FY 2003 for technical corrections in maintenance contract costs, HVAC and vehicle repair costs, garbage disposal costs, and annualizing the Rural Area Differential.
M-100 Inflation & Per Unit Adjustment – Page PRISONS-135
Ms. Watson stated the M-100 General Fund is reduced by $54 per year for insurance costs and the latest projections for inmate populations result in a net shortfall of $16,533 for this budget account.
E-710 Replacement Equipment – Page PRISONS-136
Ms. Watson stated Module E-710 is reduced by $960 in FY 2002 to correct a duplicated request.
E-961 Transfer Base To 3711 – Page PRISONS-137
E-932 Transfer M200 To 3711 – Page PRISONS-137
E-933 Transfer E710 To 3711 – Page PRISONS-137
Ms. Watson stated these modules represent reversals from the Correctional Facilities budget account 3711 and re-establish the budget in its original form.
M-201 Closure of Southern Nevada Correctional Center (This decision unit does not appear in The Executive Budget.)
Ms. Watson stated that staff created this module and recommends funding of $3,418 per year for fuel for the camp.
E-710 Replacement Equipment – Page PRISONS-136
Ms. Watson said staff eliminated funding for chairs in this decision unit.
ASSEMBLYMAN MARVEL MOVED TO CLOSE BUDGET 101-3748 WITH ADJUSTMENTS RECOMMENDED BY THE STAFF.
SENATOR JACOBSEN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR NEAL WAS ABSENT FOR THE VOTE.)
* * * * *
Silver Springs Conservation Camp – Budget Page PRISONS-139 (Volume 3)
Budget Account 101-3749
Ms. Watson reviewed the technical adjustments and decision units on pages 17 and 18 of Exhibit C. She said base General Fund appropriations are reduced by a net amount of $3,107 in FY 2002 and $2,734 in FY 2003 for one‑time costs and for current maintenance costs.
M-100 Inflation & Per Unit Adjustment – Page PRISONS-140
Ms. Watson stated M-100 General Fund is reduced by $233 each year for insurance costs.
M-200 Demographics/Caseload Changes – Page PRISONS-140
Ms. Watson stated that the latest projections for inmate populations result in a net shortfall of $9,363 for this budget account.
E-730 Maintenance of Buildings and Grounds – Page PRISONS-142
Ms. Watson stated this module is reduced by $1,300 in FY 2002 and $300 in FY 2003.
E-964 Transfer Base To 3711 – Page PRISONS-142
E-965 Transfer M200 To 3711 – Page PRISONS-242
E-966 Transfer E710 to 3711 – Page PRISONS-243
E-967 Transfer E730 to 3711 – Page PRISONS-243
Ms. Watson stated modules E-964 through E-967 represent reversals from the Correctional Facilities budget account 3711 and re-establish the budget to its original form.
E-710 Replacement Equipment – Page PRISONS-141
Ms. Watson asked whether the subcommittee wishes to approve funding for replacement equipment as recommended in The Executive Budget.
E-730 Maintenance of Buildings & Grounds – Page PRISONS-142
Ms. Watson stated staff eliminated funding for the water disinfection system. She asked whether the subcommittee wishes to approve funding for paint as recommended in The Executive Budget.
SENATOR JACOBSEN MOVED TO CLOSE BUDGET 101-3749 WITH ADJUSTMENTS RECOMMENDED BY THE STAFF.
ASSEMBLYWOMAN CHOWNING SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR NEAL WAS ABSENT FOR THE VOTE.)
* * * * *
Offenders’ Store Fund – Budget Page PRISONS-193 (Volume 3)
Budget Account 240-3708
Ms. Watson reviewed the technical adjustments, decision units, and other issues outlined on pages 20 through 23 of Exhibit C. She stated the reserve is increased by $817,298 in FY 2002 and $916,454 in FY 2003 primarily for adjusting revenues in the base and in decision unit M-200. She said the base reserve was increased by a net of $650,673 in FY 2002 and $650,928 in FY 2003.
M-100 Inflation I Per Unit Adjustment – Page PRISONS-194
Ms. Watson said the M-100 reserve is decreased by $146 each year to adjust employee tort insurance.
M-200 Demographics/Caseload Changes
Ms. Watson said revenues in M-200 are increased by $170,819 in FY 2002 and $270,920 in FY 2003 to reflect new population projections.
E-298 Working Environment – Page PRISONS-198
Ms. Watson said the reserve in E-298 is decreased by $5,248 for both years of the biennium.
E-710 Replacement Equipment – Page PRISONS-198
Ms. Watson said the E-710 reserve is increased by $200 in FY 2002 to adjust for the cost of a laser printer.
E-720 New Equipment – Page PRISONS-199
Ms. Watson said the E-720 reserve is increased by $1,500 in FY 2002 to adjust the cost of a laptop computer.
M-201 Demographics Caseload Changes – Page PRISONS-195
M-202 Demographics Caseload Changes – Page PRISONS-196
M-203 Demographics Caseload Changes – Page PRISONS-196
M-205 Demographics Caseload Changes – Page PRISONS-196
Ms. Watson said the department has prioritized the recommended positions in four decision units, the order being: Storekeeper II (M-205); Information System Specialist II (M-201); Management Analyst II (M-202); Accounting Specialist (M‑203).
E-298 Working Environment – Page PRISONS-198
Ms. Watson said staff recommends the elimination of decision unit E-298 with the understanding that the DOP will approach the next Interim Finance Committee (IFC) with a work program to transfer funds from the Offenders’ Store Fund (OSF) Reserve for enhanced office space if the Director’s Office is approved to move into commercial space.
E-710 Replacement Equipment – Page PRISONS-198
Ms. Watson said staff has adjusted the cost of the laser printer from $1,000 to $800.
E-905 Transfer Excess Reserve to the Inmate Welfare Fund Center (This decision unit does not appear in The Executive Budget.)
Ms. Watson stated staff seeks approval to adjust this transfer based on the closing.
Ms. Watson noted that the Administrative Services Officer III position approved by the 1999 Legislative Session has been vacant since October 1, 1999. She asked whether the subcommittee wishes to eliminate that position.
Mr. Parks pointed out this is a non General Fund budget.
Mr. Marvel asked what the present balance was in the fund. Ms. Watson replied that she did not have the current balance. She said that with the transfer and excess of reserves, the store should have an estimated balance of $1.5 million at the end of the fiscal year.
E-906 Transfer Management Analyst IV to Director’s Office B/A 3710
Page PRISONS-199
Mr. Marvel expressed concern about transferring the funding for 1 Management Analyst IV position in decision unit E-906. He said he disagreed with it being funded out of the General Fund if it is not necessary.
Ms. Watson pointed out that position is currently budgeted in the Offenders’ Store Fund, and approximately 88 percent of the cost would be from the General Fund. She stated that it is presently being funded entirely by the store fund.
M-202 Demographics Caseload Changes – Page PRISONS-196
Mr. Parks stated that the 1 Management Analyst II position requested does not appear to be needed. He suggested it may be a situation where at a future time the department could, if they had justification, come back to the IFC for subsequent consideration.
M-201 Demographics/Caseload Changes – Page PRISONS-195
M-203 Demographics Caseload Changes – Page PRISONS-196
M-205 Demographics Caseload Changes – Page PRISONS-196
Mr. Parks noted that the three positions in M-201, M-203, and M-205 are recommended and justified.
Senator Jacobsen stated that he is not in favor of moving the Director’s office into commercial space. He said his reason is that there are additional buildings at the Stewart Facility that are available. He suggested use of the Clinic Building, which has been sitting vacant for a number of years. He said the building can be rehabbed with inmate labor because the inmate camp is close by. He pointed out that when it was used by the Indian Service, it housed 22 offices. He admitted it is somewhat of an eyesore at the moment, but stated that it would make an ideal Director’s quarters. He said it is also within walking distance of the main building where all the other activity is.
E-298 Working Environment – Page PRISONS-198
Mr. Ghiggeri stated that the staff at this time is recommending that E-298 be eliminated, which affects the Offenders’ Store Fund. He stated that the move for the Director’s office will be considered by the subcommittee next week, due to the lateness of the information that was provided by the Department of Prisons concerning a revised plan on that move. He suggested that the DOP could review the building suggested by Saturday and let the legislative staff know its opinion of that facility. He stated that would assist the staff in closing the Director’s office budget.
ASSEMBLYWOMAN CHOWNING MOVED TO CLOSE BUDGET 240-3708 WITH THE FOLLOWING RECOMMENDATIONS: M‑201, M‑203, M‑205, E‑300, E‑710, AND E‑720 BE APPROVED; E‑298 BE ELIMINATED; E‑905 BE APPROVED AS ADJUSTED; M‑202 AND E‑906 NOT BE APPROVED; AND THE VACANT POSITION OF THE ADMINISTRATIVE SERVICES OFFICER III BE ELIMINATED.
ASSEMBLYWOMAN DE BRAGA SECONDED THE MOTION.
Mr. Parks suggested that in Module M-202 the Management Analyst II position should not be approved, but that the department be given the option of coming back to the IFC should it be able to provide justification at a subsequent time.
THE MOTION CARRIED UNANIMOUSLY.
* * * * *
BUDGET CLOSINGS – PUBLIC SAFETY
Public Safety, Parole and Probation – Budget Page PS-113 (Volume 3)
Budget Account 101-3740
Bob Atkinson, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, reviewed the overview on page 46 of Exhibit C. Mr. Atkinson stated that, because the division could not foresee vacancy rates falling under 11 positions over the biennium, staffing requests for growth in the 2001-2003 budget requests have been excluded.
Mr. Parks asked whether expected vacancy savings have been factored into the budget. Mr. Atkinson replied that the vacancy savings included in the recommended budget are based on the historical vacancies. He stated that reduces the overall amount for personnel services by $760,000 a year.
Mr. Atkinson reviewed the adjustments outlined on page 47 of Exhibit C. He stated that adjustments to the General Fund result in savings in the amount of $12,075 in FY 2001-02 and $11,652 in FY 2002-03.
E-125 Equitable, Stable Tax Structure – Page PS-116
Mr. Atkinson stated the subcommittee may wish to have the division report the outcomes of this pilot project to the IFC in October 2002, with a recommendation for continuance, expansion, or abandonment of this program. He said S.B. 550 would provide for privatization of pre-sentence investigations.
SENATE BILL 550: Allows division of parole and probation of department of motor vehicles and public safety to contract with person to conduct presentence investigation. (BDR 14-1436)
E-401 Reduce Recidivism & Juvenile Violence – Page PS-119
Mr. Atkinson stated A.B. 574 would extend the Drug Court program until June 30, 2003.
ASSEMBLY BILL 574: Makes changes to provisions concerning programs of treatment for abuse of alcohol or drugs for certain offenders and provisions concerning sentencing of certain persons sentenced to imprisonment for life without parole. (BDR 16-1327)
Mr. Atkinson stated staff recommends this account be closed as adjusted, subject to the approval of A.B. 574 to extend the Drug Court Program.
E-800 PSTD Cost Allocation – Page PS-119
E-801 Administrative Cost Allocation – Page PS-120
E-980 Administrative Direct Costs Distribution – Page PS-121
Mr. Atkinson said staff seeks approval to make changes to modules E-800, E-801, and E-980 based on final approval of the budgets for the Public Safety Technology Division and the Administrative Services Division.
Senator Neal asked what Senate Bill (S.B.) 550 was about. Mr. Atkinson responded that S.B. 550 would authorize the privatization of the presentence investigations. Senator Neal asked where the bill is at present. Mr. Atkinson replied that it is currently in the Assembly Committee on Judiciary.
Senator Neal asked if it had any possibility of getting out of that committee, and expressed his hope that it would not.
ASSEMBLYMAN MARVEL MOVED TO CLOSE BUDGET 101-3740 WITH ADJUSTMENTS RECOMMENDED BY THE STAFF, SUBJECT TO THE APPROVAL OF ASSEMBLY BILL 574 AND SENATE BILL 550.
SENATOR JACOBSEN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR O’DONNELL WAS ABSENT FOR THE VOTE.)
* * * * *
BUDGET CLOSINGS – CONSERVATION AND NATURAL RESOURCES
Forestry – Budget Page CNR-70 (Volume 3)
Budget Account 101-4195
M-801 Cost Allocation – Page CNR-76
Mark Krmpotic, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, stated that this budget account was previously heard and the only remaining issue with this account had to do with cost allocations in decision unit M-801. He reviewed this decision item which increases the charge to the counties by $112,257 per year; an increase from approximately $230,000 per year to $342,257 per year.
Mr. Marvel pointed out that cost allocation is “quite a hit” to the counties, and asked whether there is any possibility that these costs could be shared. He said he believed that some counties are going to have to cut services because of this.
Steve Robinson, State Forester Firewarden, Division of Forestry, State Department of Conservation and Natural Resources, acknowledged the cost allocation would be very difficult for the counties. He explained that the Nevada Division of Forestry (NDF) tried to find out what kind of salary savings would be available, at least on a temporary basis, to absorb some of these costs. He stated that there are some savings presently in the budgets. He said the division has offered to work with Elko County specifically to use as much of the reserve as possible to make the adverse impacts low as possible. He stated that the likelihood is that in the second year of the biennium there will have to be some layoffs.
Mr. Marvel asked whether there was anyone from Nevada Association of Counties (NACO) or Elko County present.
Stephanie Licht, Lobbyist, Elko County Board of Commissioners, stated that she and Mr. Robinson have somewhat agreed that they are “like the center of a sandwich.” He said they both are “in the middle” of a situation that neither one created and they are trying to work together to deal with the situation.
Ms. Licht said Mr. Robinson is in a tough position because the state cost-allocation study was done without input of the counties, but she said it is her understanding that was probably due to a major communications breakdown. She said she believes the staff in the Budget Office contacted the staff in NDF and announced that there would be a state cost-allocation study and asked whether individuals from the counties could participate. She explained that Elko County tells her that NDF contacted it and invited representatives to a budget session in Carson City. Elko County agreed and asked to be told when the meeting would take place. She said the county claims not to have heard anything further.
Mr. Marvel asked what will happen if no reduction can be made at the county level.
Ms. Licht replied that Elko County is in the same situation as the state is in. She said she understands the state budgets are down, and speculated that Elko County’s budget is down about $1.7 million. She said Elko County is anticipating layoffs. She stated that the county will not be able to absorb the cost, but will have to deduct it from the approximately $600,000 that Elko County has budgeted for the NDF budgets. Ms. Licht said it is her understanding that this state cost allocation took the county unaware and since it was already past its budget cycle, there was no opportunity to budget extra funds for the state cost allocation expense.
Mr. Marvel asked what the worst case scenario could be for Elko County.
Ms. Licht said the worst case scenario is that the amount of state allocation that is charged against the county funds would be deducted from the county’s contribution to the NDF. She stated that the county puts up about $578,000. She suggested that if the new charge is $70,000, the county would reduce its distribution by $70,000, so its distribution would be $508,000.
Mr. Marvel asked whether there would be a public safety factor in this scenario.
Ms. Licht stated that she lived about 10 miles from the site of several fires last year, and as the fires grew she moved all of her important documents out of the house, then returned and moved her livestock. She stated the fire burned two houses completely, and if it had not been for the NDF, the fire would have gone further.
Mr. Marvel reworded his question, asking if people would be put in jeopardy.
Ms. Licht replied that any time firemen and policemen are affected it is a public safety consideration.
Mrs. de Braga stated that White Pine County has had to cut at least $500,000 out of its budget, which is significant in a budget as small as theirs. She asked how the costs are paid in cases of catastrophic occurrences that are not covered by the allocation.
Mr. Robinson explained that it depends on where the fire starts, where it ends up, and who is involved among state and federal resources. He said, if it is on state property or private property the state will pay a good part of the bill. He said if it is a federal fire, the bill is allocated among the agencies involved and billed to them. He stated that the principal is that the fire is put out and the jurisdiction is decided later. He said that typically there will be a mixed-agency fire response.
Mrs. de Braga asked whether these cost-allocation changes are based on history or only on last year’s costs.
Mr. Robinson replied that the 1999 Legislature had a question about the basis of the cost allocation charges, and there appeared not to be any except a historical one. He stated that, in response to that, the study was done and an effort was made to look into a fair cost allocation of what the state allocates to administrative coverage of its fire protection districts.
Mrs. de Braga asked what would happen if the state went back to the current allocation schedule and held meetings to come up with a proposal for allocations.
Mr. Robinson stated that if the cost allocation remains the same for the current biennium, it will probably mean a layoff of one firefighter in Elko County. He said this may not happen in the first year of the biennium, but certainly in the second.
Mr. Marvel asked, if the budget is closed as it is, the counties involved could work with the Division of Forestry during the interim to see whether something could be worked out.
Mr. Robinson replied that the division wants to see the coverage stay at a maximum and will work with the counties as best as possible within whatever the budget is. He said that includes searching out every salary savings and reserve that is available. He stated that the last thing the division wants to do is lay off any employees.
Mr. Marvel stated that this will involve serious safety factors if the history of the last couple of years is repeated. He said he believes the committee will have to close the budget, but with the understanding that there is going to be a working arrangement in the interim to see whether some of these costs can be defrayed, or at least spread so that there will not be the tremendous impact on county budgets.
Mrs. de Braga said she would prefer staying with the current allocation if it means the reduction of only one firefighter and the county could live with that for 2 years.
ASSEMBLYMAN MARVEL MOVED TO APPROVE THE ALLOCATION IN M‑801 OF BUDGET 101-4195 AS PROPOSED BY THE GOVERNOR.
SENATOR JACOBSEN SECONDED THE MOTION.
THE MOTION CARRIED. (ASSEMBLYWOMAN DE BRAGA VOTED AGAINST THE MOTION.)
* * * * *
BUDGET CLOSINGS – MOTOR VEHICLES
DMV, Field Services – Budget Page DMV-13 (Volume 3)
Budget Account 201-4735
Mr. Krmpotic reviewed the overview, technical adjustments, and decision items on pages 24 through 27 of Exhibit C. He stated that the technical adjustments result in Highway Fund increases of $37,037 in FY 2001-02 and $5,005 in FY 2002‑03.
Mr. Krmpotic asked whether the subcommittee wishes to approve the continuation of 48 positions for major field offices at $1.8 million in FY 2001-02 and $1.9 million in FY 2002‑03. He recalled that a request had been made by the subcommittee to have the department provide information regarding the number of staff necessary to reduce field office wait times to wait times experienced following the addition of staff in the 1995 session. He explained that, because of time spent completing budget closings, staff has not had an opportunity to review the information provided by the department for accuracy and rationale and therefore cannot provide a recommendation to the subcommittee. He suggested the subcommittee may wish to hear testimony from the department regarding details of the information provided to the subcommittee.
E-276 Working Environment & Wage – Page DMV-16
Mr. Krmpotic asked whether the subcommittee wishes to approve the addition of two Program Officer III positions for the Henderson and Carson City offices for a total of $78,315 in FY 2001-02 and $94,467 in FY 2002-03.
Mr. Krmpotic also asked whether the subcommittee wishes to approve funding for the continuation of 64 part-time positions at $1.2 million in FY 2001-02 and $1.3 million in FY 2002-03. He suggested that, if the subcommittee does wish to approve funding, it may also wish to place funding for part-time positions at the Reno Galletti office in a reserve category with direction that the agency approach IFC to justify use of the positions in another location.
E-279 Working Environment & Wage – Page DMV-17
Mr. Krmpotic asked whether the subcommittee wishes to approve the elimination of the transfer from the Motor Vehicle Pollution Control budget account.
E-280 Working Environment & Wage – Page DMV-17
Mr. Krmpotic pointed out that callback pay of $1,262 and shift differential of $2,553 had not been previously budgeted in the Field Services account. He asked whether the subcommittee wishes to approve the recommendation to add overtime, shift differential and callback pay to the Field Service budget at $256,410 each year.
E-300 Maximize Internet & Technology – Page DMV-17
Mr. Krmpotic asked whether the subcommittee wishes to approve the recommendation to fund a lease for bilingual testing equipment at $144,800 in FY 2001‑02 and $289,600 in FY 2002‑03.
E-710 Replacement Equipment – Page DMV-18
Mr. Krmpotic stated that if the subcommittee wishes to approve the recommendation for equipment replacement in E-710, the staff recommends replacement of vehicles in this account with 4-passenger vehicles at a reduced cost of $26,596 similar to other “non-public safety” accounts.
E-801 Revenue Allocation – Page DMV-19
E-905 Administrative Direct Cost Allocation – Page DMV-19
Mr. Krmpotic stated the staff seeks approval to make adjustments to modules E‑801 and E-905 based on final approval of the budgets for the Administrative Services Division and the Director’s Office.
E-300 Maximize Internet & Technology – Page DMV-17
Mrs. Chowning stated that she agreed with the benefit of the bilingual testing equipment leased under decision unit E-300. She pointed out that bilingual driver license manuals were printed, but she understands that now they are not available. She asked whether funding for the manuals has been added back into the budget. She stated use of the manuals provides great benefit to all of us because people driving on the highways will be able to make use of them to pass the examinations, which results in better safety for all of us.
Virginia Lewis, Deputy Director, Motor Vehicles, Department of Motor Vehicles and Public Safety (DMV&PS), responded the budget does not reflect the printing costs associated with the Hispanic handbook. She said the department does not print the handbook in Spanish at this time.
Mrs. Chowning asked why it is not being printed, how much it would cost to provide funding in the budget, and why it was taken out.
Ms. Lewis replied that it has been about 4 years since it was printed. She said she could find out what the cost is to reproduce it.
Mrs. Chowning said she would like to know that.
E-280 Working Environment & Wage – Page DMV-17
Senator Neal asked what the effect would be of leaving out the recommended shift differential and callback pay in module E-280.
Mr. Krmpotic replied callback pay is incurred at times when the agency experiences vacancies or sick leave by employees that are expected to be at the offices to staff the windows. He said callback pay is incurred to provide full window staffing.
Mr. Krmpotic explained that shift differential is incurred at times when the offices are continuing to operate beyond 5 p.m. into the early evening hours. He stated that at times the department experiences a surge of citizen traffic into the offices just prior to closing time, and statistics show that as many as 250 citizens may be in the office and in the lobby waiting to conduct transactions just prior to closing time. The department continues to process those transactions to assist those citizens, he said.
Senator Neal noted that decision unit E-280 has a public service connection. Mr. Krmpotic agreed. Senator Neal pointed out that makes it difficult to remove it from the budget.
Mr. Parks asked whether there were further appropriations for overtime.
Mr. Krmpotic stated that non-holiday overtime expense was removed from the base budget altogether. He pointed out that for the current fiscal year non-holiday overtime was budgeted at approximately $150,000.
SENATOR NEAL MOVED TO CLOSE BUDGET 201-4735 WITH ADJUSTMENTS RECOMMENDED BY THE STAFF, SPECIFICALLY INCLUDING MODULE E-280.
SENATOR JACOBSEN SECONDED THE MOTION.
Mrs. Chowning asked that the budget be closed pending receipt of information regarding the cost of printing the driver’s test manual in Spanish, which is the most common second language in Nevada.
Senator Neal asked what part of the budget that would involve.
Mark W. Stevens, Assembly Fiscal Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, stated that it would be an addition to the operating category. He said he interprets the request to be to wait for the DMV&PS to come back with an amount of how much that would cost, and then the committee can consider whether that would be added to the budget. He stated that all the other items in the budget would be closed based on this motion.
Senator Neal asked when the DMV&PS would be come back with the information requested. Mr. Stevens said that would be next week. He said it would be hoped they could determine the cost in that time period and come back to the committee to report.
Senator Neal agreed to that understanding of the motion. Senator Jacobsen concurred.
Senator O’Donnell introduced a proposal (Exhibit D) to fund a staffing increase for DMV&PS. He stated that more staff are needed in the DMV&PS offices in order to accommodate the wait lines. He said he would like to go back to the 1995 time period when the Legislature “fixed” the DMV&PS by adding a number of individuals to staff the windows.
Senator O’Donnell pointed out that the government services tax is collected at the window by the DMV&PS and essentially the entire tax goes to the local governments, although a portion of it goes to the school districts. He pointed out that DMV&PS charges a 6 percent fee for collecting the tax, but the 6 percent fee does not fund the cost of the staff necessary to accommodate increased growth and the number of people who are visiting the windows to register their cars.
Senator O’Donnell said that DMV&PS staff have recommended that 101 additional personnel be hired to accommodate a full-service DMV&PS to return to level 2, the service level provided to the customers in 1995. He stated at that time an individual could walk into the DMV&PS and complete a transaction in approximately 7 to 10 minutes. He expressed an interest in returning to that level of service, and acknowledged the only way to accomplish that is to hire more staff, keep the DMV&PS offices open for 12 hours, and keep them open on Saturday.
Senator O’Donnell proposed a 2¼ percent increase in the commission that the DMV&PS receives for a transaction which he asserted would provide a funding mechanism without impacting the Highway Fund. He said this would produce approximately $4.4 million in terms of additional revenue for the DMV&PS, and it would also allow the department to hire the 101 employees necessary to go to level 2 again.
Senator O’Donnell indicated that in 2003 the amount of money generated would be $4.489 million, and the respective costs for the staff would be $4.4 million. He stated that would solve the problem for DMV&PS. He said the constituents are asking for this and deserve it. He also pointed out that when a person goes to the DMV&PS he is given a little card to register to vote. He stated that he wants to be able to say that he “fixed” the DMV&PS along with this committee and this Legislature. He reiterated that the way to accomplish this is to adjust the commission to pay for it.
Mr. Parks asked how many additional staff this would require in the second year of the biennium.
Ms. Lewis said the revised proposal that was submitted recently changed the overall numbers. She stated that the department had asked for 101 positions to reduce the wait-time at the windows. She pointed out that to extend the hours there are other ancillary positions, such as revenue officers in the field offices, that would bring the total staff required to 129. She said the same number would be required for the second year.
Senator Neal asked whether that would be accomplished by adding 2¼ percent to the privilege tax.
Senator O’Donnell replied that the privilege tax is calculated the same way as in S.B. 520.
SENATE BILL 520: Authorizes optional registration of vehicles for 2-year period and makes various changes in provisions governing imposition and procedure distribution of governmental services tax. (BDR 43-1171)
Senator O’Donnell stated the calculation of the privilege tax does not change. He said this will allow the commission on the privilege tax that is collected by DMV&PS to be retained by the DMV&PS. He said the only addition is a 2¼ percent increase. He explained that for every $100 the DMV&PS collects in a privilege tax they now get to keep $6; under the new formula they would get to keep $8.25 for every $100 they collect. He emphasized that they will still collect the same $100.
Senator Neal asked whether that would take money from school kids.
Senator O’Donnell replied that would amount to a “minor hit” to school districts and to local governments. He stated that in 1993, when the figure was readjusted, that amount of money bought twice as much as it generates currently. However, he pointed out, the manufacturer's suggested retail price of cars continues to rise. He stated that the school districts will be able to make up that amount of money in a very short period of time because of the increase in car prices which increases the amount charged for the tax.
Senator Neal stated that he understands what Senator O’Donnell is attempting to do, but expressed his preference that the funding come from gaming rather than have it taken from the schools.
Mr. Parks said he understands there is a bill under consideration that would handle this issue.
Senator O’Donnell said A.B. 609, which is on the secretary’s desk in the Senate, is a vehicle that may be used for that purpose.
ASSEMBLY BILL 609: Extends authorized period of expenditure of certain money appropriated to department of motor vehicles and public safety. (BDR S‑1319)
Senator O’Donnell stated, however, that the budget will have to be allocated in terms of the new 129 positions. He said that can probably be done in the bill. He stated that he wanted to make the committee aware of this aspect.
Senator O’Donnell stated that he knows the Governor is extremely interested in solving this problem, but has left it up to the Legislature to figure out how they will accomplish it.
Mr. Perkins thanked Senator O’Donnell for providing the information. He added that he has several concerns he does not believe the committee can solve while they are considering this budget. He said that his concerns include the impact to the school districts and the local governments. He asked whether the administration is supportive of this specific method of solving this problem. He stated that all of these concerns collectively deserve a full and open hearing in the public’s eye so that kind of debate can be held.
Mr. Perkins acknowledged that the goal is laudable. He said some way must be found to reduce the lines. He stated that he would not be prepared to act on the proposal at this time.
Senator O’Donnell responded that Mr. Perkins’ comments are appropriate. He said the reason why he presented the information is to let the committee hear what exactly is being promulgated by himself and others who are interested in solving the problem. He agreed that Mr. Perkins is correct in that this needs to be debated and decided upon by the full bodies in both Houses, and he indicated he looks forward to that debate. He recognized that a decision cannot be made on this proposal at present, but stated that some method has to be sought to solve the problem. He stated that he realizes that a hearing may be necessary.
Senator O’Donnell explained that he is “floating this information out” for the committee to consider.
THE MOTION CARRIED.
* * * * *
DMV, Central Services – Budget Page DMV-21 (Volume 3)
Budget Account 201-4741
Mr. Krmpotic reviewed the overview, technical adjustments, and decision items on pages 28 through 31 of Exhibit C. Mr. Krmpotic stated that technical adjustments result in an increase in Highway Funds of $113,747 in FY 2001-02 and $266,742 in FY 2002-03.
Mr. Krmpotic stated staff has included revenue and expenditure authority of $145,000 each year in adjusted base for transfers from the special license plate account for the purchase of materials to produce special plates. He said staff has also reduced administration charges in adjusted base by $93,523 in FY 2001‑02 and $64,577 in FY 2002-03 to reflect revenue increases based on revised projections by the agency.
Mr. Krmpotic stated staff recommends an adjusted base reduction of $459 each year for the elimination of equipment under $500 per agency response dated December 21, 2000. He said the staff also recommends adjusted base increases in utility expenses of $3,944 each year in the License Plate Factory category to reflect actual expenses incurred by the Nevada Department of Prisons in FY 1999‑2000.
Mr. Krmpotic stated staff recommends an adjusted base decrease of $38,730 each year in the License Plate Factory category for special license plate materials purchased in FY 1999‑00. He stated that special plate materials should be funded through transfers from the special plate account.
M-100 Inflation and Per Unit Adjustment – Page DMV-23
Mr. Krmpotic state staff has eliminated increases in the administration charge in M‑100 of $2,490 in FY 2001-02 and $3,615 in FY 2002-03. He said staff recommends increases in M-100 of $2,202 in FY 2001-02 and $4,747 in FY 2002‑03 in utility expenses for the License Plate Factory.
M-101 Inflation – Page DMV-23
Mr. Krmpotic stated staff recommends decreases in additional license plate materials and the elimination of administration charges of $147,630 in FY 2001‑02 and $135,975 in FY 2002‑03.
M-301 Adds Step 9 and 4% COLA – Page DMV-24
Mr. Krmpotic stated staff has increased intra-agency cost allocations in module M‑301 by $2,313 in FY 2001‑02 and $5,833 in FY 2002‑03 for salary and fringe increases to cost allocated positions.
E-225 Reward More Efficient Operation – Page DMV-24
Mr. Krmpotic stated staff recommends the elimination of administration charges in module E‑225 by $750 in FY 2001‑02 and $1,441 in FY 2002‑03.
E-276 Working Environment & Wage – Page DMV-25
Mr. Krmpotic stated staff recommends a decrease in the cost of new computers in E‑276 of $5,490 in FY 2001-02 based on revised estimates from State Purchasing.
E-277 Working Environment & Wage – Page DMV-25
Mr. Krmpotic stated staff recommends changes to insurance charges in module E‑277 of $126 in FY 2001-02 and $128 in FY 2002-03.
E-710 Replacement Equipment – Page DMV-25
Mr. Krmpotic stated staff recommends the elimination of administrative charges in module E-710 of $13,585 in FY 2001-02 and $211,680 in FY 2002-03. He said staff also recommends a decrease of $65,016 in FY 2002-03 for license place embossing dies.
E-801 Revenue Allocation – Page DMV-28
Mr. Krmpotic stated staff recommends a change in the category designation for the intra-agency allocation proposed in decision module E-801.
M-101 Inflation – Page DMV-23
Mr. Krmpotic said staff has made technical adjustments based on revised calculations to reflect funding at $43,939 in FY 2001-02 and $86,464 in FY 2002‑03.
E-275 Working Environment & Wage – Page DMV-24
Mr. Krmpotic asked whether the subcommittee wishes to approve the new positions to the microfilm section in the Central Services Division; and if so, whether the subcommittee wishes to consider the proposed amendment by the Governor, with revisions to eliminate two positions from the request and to revise the start date beginning in October. He stated that if the proposed amendment is considered, staff would recommend the placement of the outsourcing cost into an isolated category. The revised recommendation would call for a total of nine positions to the microfilm section.
E-276 Working Environment & Wage – Page DMV-25
Mr. Krmpotic asked whether the subcommittee wishes to approve the recommendation to add ten positions to perform data entry, and if so whether it wishes to approve the Governor’s proposed amendment to eliminate five positions after one year and related equipment for all positions. He stated that, if it wished to approve these items, staff recommends that the new positions be added beginning October 2001 with five positions to sunset after one year.
E-801 Revenue Allocation – Page DMV-26
E-904 Administrative Direct Cost Allocation – Page DMV-27
Mr. Krmpotic said staff seeks approval to make changes to modules E-801 and E‑904 based on final approval of the budgets for the Administrative Services Division and the Director’s Office.
Mrs. Chowning noted that in decision unit E-276 there is a savings, and in E-277 there will be the spending of approximately $250,000 each year. She stated it appears they are continuations of the Governor’s recommendation for additional positions, both in the last budget and this one. She pointed out that this is continuing to reduce the waiting lines in DMV&PS offices. She expressed her support for that.
Mrs. Chowning asked whether there will be savings in E-276, and whether the money is being spent wisely. She asked whether positions need to be sunsetted or continued, so that the waiting lines can be kept at a minimum.
Mr. Krmpotic stated that these positions are used for staffing the Data Integrity Section, which is not a frontline customer service function. He said the section is responsible for updating and correcting information in the computer system. He stated that, to his knowledge, the consequence for not continuing the positions or approving the module would be a continual backlog for entry of information, and it would impede access to updated information on the computer system.
Mr. Krmpotic explained that the agency has gone through an extensive reevaluation of the volume of work it needs to address, and it recognizes the backlog needs to be reduced and ongoing volume needs to be addressed. He said the five of the ten positions they are requesting would sunset after the backlog is eliminated during the first year, and the continuing five positions would address the ongoing volume.
Mrs. Chowning pointed out that taking care of the backlog helps all of the other positions, which in turn helps the customers, so it does translate to reducing waiting lines. She stated that if information is not provided, people will have to come into the office, and by that time they are really frustrated. She stated that if the positions are approved, she would like to make it clear that the committee would like the agency to return to IFC to indicate whether the positions are going to need to be continued if the backlog does not get taken care of.
Ms. Lewis explained that the positions have responsibility over the date of entry of convictions and information provided to DMV&PS from the courts. She pointed out that this area of the operation has not been funded for an increase in staffing for 20 years. She explained that as the state has continued to grow there has been a corresponding increase in workload in this function. She insisted the backlog is tremendous, but it does not necessarily tie to the customer at the window. Ms. Lewis said that if the DMV&PS does not have up-to-date records it is not providing law enforcement and the courts with accurate information.
E-275 Working Environment & Wage – Page DMV-24
Assemblyman Beers drew attention to Decision Item 3 on page 30 of the closing packet concerning decision item E-275. He stated a memo from the Department of Museum, Library and Arts recommends use of microfilm rather than document imaging for long term preservation of records. He suggested the premise of the memo is out of date.
Mr. Beers pointed out that document imaging will last forever as long as it is backed up. He stated that if the backup has a time of finite duration, then it should be backed up again before the finite duration hits. He declared that he would hate to see the state “chasing down this microfilm path.” But, he suggested, the case is made that the committee has no choice.
Mr. Krmpotic pointed out that at this time the recommendation includes the addition of 11 positions to address the backlog and to explore the document imaging option, or to use that as a viable alternative. He stated that it would require a policy decision by the committee or Department of Museums, Library and Arts to accept document imaging as an acceptable archival source.
Mr. Krmpotic noted a couple of potential options may include sunsetting the positions and having the 2003 Legislature revisit the issue at that time if the policy decision is made during the interim. He said the continuing need for microfilming could be determined, and the agency could look at the cost benefit analysis of document imaging versus microfilming. He said that could be presented to the 2003 Legislature.
Mr. Beers asked whether it would be necessary to go back to all the other budgets that have been approved for document imaging and eliminate the document imaging.
Mr. Parks agreed that was a good question. He stated there seems to be some inconsistency in various policies. He noted that this issue refers to documents pertaining to driver and title records, and stated that he does not know what other government documents are microfilmed or imaged. He said he expects documents regarding receipts and insurance verifications relate to only a certain time and may not need to be microfilmed and saved in perpetuity.
Mr. Beers asked for DMV&PS to comment on this issue.
Richard Kirkland, Director, Department of Motor Vehicles and Public Safety, stated that this issue affects the entire state. He pointed out that microfilming is an antiquated process that is tied to the Nevada Administrative Code (NAC) and Nevada Revised Statutes (NRS) for record retention. He pointed out that the state is storing millions of hard copies of everything it does, and is renting garages for storage. He explained that various agencies use microfilm. He described it as “crazy” to be doing this with the technology that is available today. He stated that a technological method can be set up for archiving documents and the numbers of people and boxes involved can be eliminated. He said the present system “makes no sense, costs us a lot of money, [and] we need to fix this.”
ASSEMBLYWOMAN CHOWNING MOVED TO CLOSE BUDGET 201-4741 WITH ADJUSTMENTS RECOMMENDED BY THE STAFF.
SENATOR JACOBSEN SECONDED THE MOTION.
Mr. Parks stated that his concern is that, separate from this budget, the committee should look at the NAC that governs the retention of original records and stored images.
Mr. Parks pointed out that this motion also includes amendments made by the Governor to the budget.
THE MOTION CARRIED. (SENATOR NEAL WAS ABSENT FOR THE VOTE.)
* * * * *
DMV, Motor Carrier – Budget Page DMV-38 (Volume 3)
Budget Account 201-4717
Mr. Krmpotic reviewed the overview, technical adjustments, and decision items on pages 32 through 34 of Exhibit C. He stated that technical adjustments result in Highway Fund savings of $528,359 in FY 2001-02 and $530,671 in FY 2002‑03.
Mr. Krmpotic stated staff recommends an adjusted base increase in Government Services Tax Commissions and a corresponding increase in Highway Funds based on agency projections. He said staff also recommends the elimination of one-time costs in the adjusted base of $7,890 in each year.
E-125 Equitable, Stable Tax Structure – Page DMV-40
E-126 Equitable, Stable Tax Structure – Page DMV-41
Mr. Krmpotic said staff has adjusted computer software costs in module E-125 by $105. He said staff recommends the inclusion of vacancy savings for new positions in module E-126 of $6,405 in FY 2001-02 and $12,229 in FY 2002-03. He also said staff recommends a reduction in out-of-state audit travel in module E‑126 of $10,319 in FY 2001-02. He added that staff recommends an adjustment for the cost of including gas tax to the existing contract computer system by $9,200 in FY 2001-02 and $5,000 in FY 2002-03. He said staff has decreased the cost of software and computer equipment in module E-126 based on revised price estimates from State Purchasing.
Mr. Krmpotic stated that if the subcommittee chooses to approve module E-125, the staff suggests the elimination of modular furniture totaling $12,000 in FY 2001-02 from the recommendation, with direction to the department that modular furniture be purchased with the one-shop appropriation approved by the 1999 Legislature.
Mr. Krmpotic asked whether the subcommittee wishes to approve the recommendation in E-126 to add five positions to administer gasoline tax collections. He suggested that if it does it may wish to reduce the recommendation for the cost of two modular furniture setups and the substitution of traditional office setups for modular furniture for three auditors that will not be housed in Carson City, with direction that modular furniture for two positions should be purchased from the one‑shot appropriation from the 1999 Session. He added staff recommends a reduction in the cost of vehicles for the auditors from four-door, six‑passenger to four-door four-passenger vehicles.
E-720 New Equipment – Page DMV-42
Mr. Krmpotic said staff has increased the cost of software in Module E-720 based on revised price estimates from State Purchasing.
E-901 Trans From Taxation AB 584 of 70th – DMV-43
Mr. Krmpotic asked whether the subcommittee wishes to approve the transfer of positions in E-901, and if so whether it wishes to approve the reallocation of revenues from this program as suggested by staff. He said the subcommittee may wish to recommend a Letter of Intent to direct the agency to identify expenses related to the program over the next biennium and to submit a plan for funding expenses related to the program over the next biennium and to submit a plan for funding expenses related to the gas tax program in the 2003-05 biennial budget.
E-127 Equitable, Stable Tax Structure – Page DMV-41
Mr. Krmpotic asked whether the subcommittee wishes to approve module E-127 to fund the fuel tracking system at $225,000 in FY 2001-02 and $250,000 in FY 2002‑03 and Internet reporting at revised cost estimates of $116,500 in FY 2001-02 and $191,500 in FY 2002‑03. If so, he stated, staff recommends that funding to cover the cost of credit card transactions totaling $25,000 in FY 2001‑02 and $50,000 in FY 2002‑03 be included in the Administrative Services budget account, which contains department funding for credit card fees.
E-801 Revenue Allocation – Page DMV-42
E-902 Administrative Direct Cost Allocation – Page DMV-43
Mr. Krmpotic stated staff seeks approval to make changes to modules E-801 and E-902 based on final approval of the budgets for the Administrative Services Division and the Director’s Office.
Mr. Parks stated there are two major issues in this budget, the first one being the transfer of responsibility for gasoline tax collections and, subsequently, the motor fuel tracking system.
Mr. Stevens testified that discussions were held by Legislature leadership and the Governor as to where certain cuts can be made in the budget, and delaying implementation of the transfer of the gas tax collection from the Department of Taxation to the Department of Motor Vehicles and Public Safety from January 1, 2002 until July 1, 2002. He stated that the savings would be about $750,000 to the General Fund.
Senator O’Donnell stated that he did not believe the DMV&PS was advised of the delay of the tax transfer. He suggested the committee close the budget with the caveat that it may have to be reopened, depending upon what the Governor decides to do in terms of delaying this transfer.
Mr. Kirkland confirmed that his department was not aware of this proposal. He stated that he had talked to the Governor’s Office and there was some confusion there too. He stated that Senator’s O’Donnell’s recommendation would benefit everyone. He indicated that his department will cooperate with whatever decision is made on this issue.
SENATOR O’DONNELL MOVED TO CLOSE BUDGET 201-4717 WITH ADJUSTMENTS RECOMMENDED BY THE STAFF, AND WITH THE UNDERSTANDING THAT IT MAY NEED TO BE REVISITED DEPENDING UPON WHAT THE GOVERNOR DECIDES TO DO.
SENATOR JACOBSEN SECONDED THE MOTION.
Mr. Parks stated that he concurred with the motion, but he did not want revenue to slip away that might otherwise be applied to the fuel tracking system or the transfer of responsibilities.
Mr. Perkins suggested that, in light of the agency not understanding what the Governor had recently recommended, it would be more prudent to hold this budget open until there has been an opportunity to discuss it rather than make it necessary to reopen the budget and make the changes.
Senator O’Donnell said that would be fine with him. He indicated that he had intended to close major portions of the budget and just reopen this one issue. But he said Mr. Perkins’ option was acceptable to him.
Mr. Parks indicated there are other DMV&PS budgets scheduled for hearing next week, and this budget could be held over.
SENATOR O’DONNELL WITHDREW THE MOTION.
SENATOR JACOBSEN WITHDREW THE SECOND.
* * * * *
Mr. Perkins indicated to Mr. Kirkland and his staff that there is a plan recommended in the budget for the split of the DMV side from the Public Safety side of the department. He said the hearing on this issue is on Thursday of next week. He stated it is very important that individuals on both sides of the issue and those who may be “on the fence” to have information prior to the meeting instead of having to digest it while the hearing is in progress. He said that would provide them with a comfort level on the issue. He suggested that the committee would appreciate receiving the plans and budgetary numbers for whatever organizational plan is in the works a couple of days ahead of time.
DMV, Motor Vehicle Pollution Control – Budget Page DMV-55 (Volume 3)
Budget Account 101-4722
Mr. Krmpotic reviewed the overview, technical adjustments, and decision items on pages 35 through 37 of Exhibit C. He stated staff reduced revenues in FY 2000‑01 based on revised projections from the agency, and that this adjustment reduces the balance forward in FY 2001‑02 by $202,696, with a corresponding reduction in the reserve. He also said staff reduced transfers to the Division of Environmental Protection (DEP) in adjusted base to match the transfer of revenue received in the DEP budget.
Mr. Krmpotic said staff requests approval to increase base transfers by $4,051 each year to match transfers to the Management Services account.
M-301 Adds Step 9 and 4% COLA – Page DMV-57
Mr. Krmpotic said staff recommends increases in transfers to the Compliance Enforcement, Central Services, and Management Services budget accounts for changes resulting from the cost-of-living increase and fringe changes for positions allocated from the Motor Vehicle Pollution Control account.
E-801 Revenue Allocation – Page DMV-59
Mr. Krmpotic stated staff recommends a change in the category designation for the intra-agency cost allocation proposed in decision unit E-801 to better identify expenses associated with the allocation.
M-100 Inflation & Per Unit Adjustment – Page DMV-56
Mr. Krmpotic stated the Governor has recommended the elimination of excess reserve grants in adjusted base totaling $1,100,728 in FY 2001-02, correction for the purchasing assessment in module M-100 in FY 2002-03; and increases in the transfer to DEP each year in adjusted base by $79,800 to restore the reserve to a positive balance in the Bureau of Air Quality Budget. He asked whether the subcommittee wishes to approve the amendments recommended by the Governor.
E-279 Working Environment & Wage – Page DMV-58
Mr. Krmpotic stated that new technology, which automatically downloads information from the emission stations to the Genesis system, eliminates the need for manual review of the emission certificate at the time of registration. He asked whether the committee wishes to approve the elimination of the transfer of funds from the Motor Vehicle Pollution Control account for 11 positions to the Field Services budget account.
Mr. Krmpotic stated staff seeks approval to make changes to the amounts transferred to the Health Division depending on approved adjustments to the Governor’s recommended budget by the Subcommittee on Human Resources/K-12.
E-948 Administrative Direct Cost Allocation – Page DMV-59
Mr. Krmpotic stated staff seeks approval to make changes to the cost allocations in E-801 and E-948 based on final approval of the budgets for the Administrative Services Division and Director’s Office.
Mrs. Chowning asked what provisions were included in the amendment to S.B. 357.
SENATE BILL 357: Authorizes board of county commissioners of certain larger counties, in certain circumstances, to impose additional fee for each form certifying emission control compliance and revises provisions governing disbursement of money from pollution control account. (BDR 40-1180)
Mr. Krmpotic replied that the amendment includes a $6 fee while the original bill stayed at $3.
ASSEMBLYMAN MARVEL MOVED TO CLOSE BUDGET 101-4722 WITH ADJUSTMENTS RECOMMENDED BY STAFF, AND INCLUDING THE AMENDMENT PROPOSED BY THE GOVERNOR.
SENATOR O’DONNELL SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR NEAL AND ASSEMBLYMAN PERKINS WERE ABSENT FOR THE VOTE.)
* * * * *
DMV, Automation – Budget Page DMV-68 (Volume 3)
Budget Account 201-4715
Mr. Krmpotic reviewed the overview, technical adjustments, and decision items on pages 38 through 40 of Exhibit C. He said technical adjustments result in a Highway Fund savings of $18,059 in FY 2001‑02 because of computer price adjustments and the elimination of software and hardware costs for purchases made in December 2000.
E-275 Working Environment & Wage – Page DMV-70
E-277 Working Environment & Wage – Page DMV-70
E-278 Working Environment & Wage – Page DMV-71
Mr. Krmpotic asked whether the subcommittee wishes to approve additional training in module E-275 for database system security and performance optimization, module E-277 for network administration training, and module E-278 for training in PowerBuilder and DataBase 2 (DB2). He stated the training budget for this account will increase from $7,284 in FY 1999‑2000 to $195,741 in FY 2001‑02 and $183,557 in FY 2002‑03.
E-276 Working Environment & Wage – Page DMV-70
Mr. Krmpotic asked whether the subcommittee wishes to add funding for the 24‑hour help desk support to transfer to the Public Safety Information Technology Division budget account in the amount of $38,924 in FY 2001‑02 and $40,969 in FY 2002‑03.
E-279 Working Environment & Wage – Page DMV-71
E-281 Working Environment And Competition – Page DMV-72
Mr. Krmpotic suggested the subcommittee may wish to consider one of two options if it wishes to approve the new positions in modules E-279 and E-281. He said one option is to approve the positions with direction that they be reconsidered for continuation by the 2003 Legislature. He said the subcommittee may wish to consider a Letter of Intent to have the agency report to IFC on a semi-annual basis to report on progress towards solving the data corruption problems and resolving top priority tickets.
Mr. Krmpotic said the second option is to approve funding for the positions for one year, place FY 2002-03 funding in reserve and direct that the agency approach IFC to report on the progress made towards solving the data corruption problems and resolving top priority tickets prior to the release of funding in FY 2002‑03.
E-280 Working Environment & Wage – Page DMV-71
Mr. Krmpotic stated the agency has determined the position of Data Base Administrator in unit E-280 is no longer needed. He asked whether the subcommittee wishes to approve the elimination of the position.
E-282 Working Environment & Wage – Page DMV-72
Mr. Krmpotic stated that the agency has indicated the Computer Network Specialist position (webmaster) in E‑282, which had not been filled as of April 1, 2001, would be filled by May 7, 2001. He asked whether the subcommittee wishes to approve the recommendation to continue this position.
E-302 Maximizing Internet & Technology – Page DMV-74
Mr. Krmpotic stated funding needs identified by the agency for contracted services in E‑302 total $152,800 for FY 2001‑02. The amount recommended in The Executive Budget is $200,000. He asked whether the subcommittee wishes to approve the $200,000 recommendation for contract programming. If so, he said, the committee may wish to consider funding at the amounts identified by the agency of $152,800 in FY 2001‑02 and $38,400 in FY 2002‑03 and placing the excess amounts of $47,200 in FY 2001‑02 and $161,600 in FY 2002-03 in reserve with direction that the agency approach IFC to request spending authority as additional projects may be identified.
E-800 Cost Allocation – Page DMV-74
E-801 Revenue Allocation – Page DMV-74
E-947 Administrative Direct Cost Allocation – Page DMV-75
Mr. Krmpotic stated staff seeks approval to make changes to modules E-800, E‑801, and E‑947 based on approval of the budgets for the Public Safety Technology Division, Director’s Office, and Administrative Services.
SENATOR O’DONNELL MOVED TO CLOSE BUDGET 201-4715 WITH ADJUSTMENTS RECOMMENDED BY STAFF, AND APPROVE OPTION “A” IN DECISION ITEM 3 OF CLOSING LIST #8 ON PAGES 39 WITH A JULY STARTUP DATE, AND TO DELETE THE POSITION OF DATA BASE ADMINISTRATOR ADDRESSED ON PAGE 40, AND TO CONTINUE THE WEBMASTER POSITION ADDRESSED ON PAGE 40.
ASSEMBLYMAN MARVEL SECONDED THE MOTION.
Senator O’Donnell stated that all the positions included in this budget add to the efficiency and the ability of the DMV&PS to service their customers, and he expressed his wish to do as much as possible to make sure the customers are satisfied.
E-280 Working Environment & Wage – Page DMV-71
Mrs. de Braga asked whether the motion included decision unit E-280. Mr. Parks stated that the maker of the motion included E-280. Mrs. de Braga pointed out that testimony indicated that position is not needed.
Ms. Lewis stated that the department has hired an individual who has the skills of a database administrator, so the position in question is no longer needed.
Senator O’Donnell asked to have the motion reflect the deletion of that position. Mr. Marvel agreed to that deletion.
Mr. Parks asked whether the Computer Network Specialist position in decision item 5 on page 40 of closing sheet #8 has been filled. Ms. Lewis replied that position was filled during April.
THE MOTION CARRIED. (SENATOR NEAL AND ASSEMBLYMAN PERKINS WERE ABSENT FOR THE VOTE.)
* * * * *
Mr. Krmpotic asked for clarification that the motion included the placement of additional amounts for “contract programming” in reserve in Decision Item 9 of the closing packet that were not identified by the agency.
Senator O’Donnell responded that was included in the motion.
BUDGET CLOSINGS – PUBLIC SAFETY
Public Safety, Hazardous Materials – Budget Page PS-59 (Volume 3)
Budget Account 201-4728
Mr. Krmpotic reviewed the overview, technical adjustments, and decision items outlined on pages 41 and 42 of Exhibit C. He stated technical adjustments result in a net increase from the Highway Fund of $108 per year.
E-910 Transfer to B/A 4713 – Page PS-62
Mr. Krmpotic asked whether the subcommittee wishes to approve decision unit E‑910 to consolidate the Highway Patrol and the Hazardous Materials budget accounts and provide for the establishment of separate categories in the Highway Patrol budget account.
E-800 PSTD Cost Allocation – Page PS-62
E-801 Administrative Cost Allocation – Page PS-62
E-995 Direct Cost Distribution – Page PS-63
Mr. Krmpotic stated staff seeks approval to make changes in E‑800, E‑801, and E‑995 based on final approval of the budgets for the Public Safety Technology Division, Administrative Services Division, and the Director’s Office.
ASSEMBLYWOMAN CHOWNING MOVED TO CLOSE BUDGET 201-4728 WITH ADJUSTMENTS RECOMMENDED BY STAFF; TO APPROVE CHANGES TO MODULES E-800, E-801, AND E-995; AND TO APPROVE MODULE E‑910 TO CONSOLIDATE THE HIGHWAY PATROL AND THE HAZARDOUS MATERIALS BUDGET ACCOUNTS; AND TO PROVIDE FOR THE ESTABLISHMENT OF SEPARATE CATEGORIES IN THE HIGHWAY PATROL BUDGET.
ASSEMBLYMAN MARVEL SECONDED THE MOTION.
Senator O’Donnell noted the motion was to consolidate the Hazardous Materials and Highway Patrol accounts, but also to provide that separate categories be established. He asked why the accounts should be consolidated. He suggested the committee approve decision unit E-910 and “let it go at that.” He stated that this decision involves $900,000 and that the idea behind consolidations is to put less onus on people to do the detailed accounting they have to do. He stated it is tougher on the legislative staff to get a handle on what they are doing, but it is a lot easier for the department to facilitate accounting practices.
Senator O’Donnell suggested the committee “let them consolidate them and let them do what they need to do.”
Mr. Kirkland expressed agreement with Senator O’Donnell. He stated the intent was to consolidate accounts.
Mr. Ghiggeri stated that the recommendation for separate categories by staff would facilitate tracking the cost of the program. He said without separate categories the staff would not be able to track those costs.
Senator Jacobsen asked what kind of information will be transmitted to counties and fire departments for emergency purposes. He asked whether those agencies will receive any information about the movement of materials. He expressed concern that volunteer fire departments will have awareness of what is happening.
Michael E. Hood, Chief, Nevada Highway Patrol Division, Department of Motor Vehicles and Public Safety, explained that the intent in this issue is to consolidate accounts for better accounting and better control. He stated that nothing would change on the road or with allied agencies.
Mr. Parks asked Mr. Hood whether the highway patrol is the best place to put this account. He pointed out that there is one division for hazardous materials and another for motor carrier. He said it would seem more likely that this should be part of the motor carrier operation.
Mr. Hood pointed out that the hazardous materials account initially funded approximately 15 positions. He said the positions were kept separate and called the commercial enforcement section. He stated that these officers would work hazardous materials. He said the division no longer distinguishes between hazardous materials and commercial enforcement. He stated that budgeting these sections is nothing but an exercise in accounting.
Mr. Parks asked whether the commercial enforcement section is a part of the highway patrol. Mr. Hood replied that it is a program under the highway patrol, as is traffic and commercial enforcement.
THE MOTION CARRIED ON THE ASSEMBLY SIDE. (ASSEMBLYMAN PERKINS WAS ABSENT FOR THE VOTE.)
THE MOTION FAILED ON THE SENATE SIDE. (SENATOR O’DONNELL VOTED NO. SENATOR NEAL WAS ABSENT FOR THE VOTE.)
* * * * *
Public Safety, Dignitary Protection – Budget Page PS-73 (Volume 3)
Budget Account 101-4738
Mr. Krmpotic reviewed the overview, technical adjustments, and decision items on pages 43 and 44 of Exhibit C. He stated technical adjustments reflect General Fund decreases of $2,109 in FY 2001-02 and $792 in FY 2002‑03.
Mr. Krmpotic drew attention to one correction on this account. He said the vehicle price reduction is based on prices according to instructions from the Budget Division. He stated the Budget Division has indicated the budget should reflect prices actually paid this fiscal year. He stated that would effectively increase the reduction by approximately $2,000.
E-801 Administrative Cost Allocation – Page PS-76
He stated staff recommends a change in category designation for the intra-agency cost allocation proposed in E‑801 to better identify expenses associated with the allocation.
Mr. Krmpotic asked whether the subcommittee wishes to reduce out-of-state travel funding in the adjusted base by $3,706 each year, which would fund the recommended number of trips at a reduced cost. He said he recommends changes to the cost allocations in E‑801 based on final approval of the budgets for the Public Safety Technology Division, Administrative Services Division, and Director’s Office.
SENATOR JACOBSEN MOVED TO CLOSE BUDGET 101-4738 WITH ADJUSTMENTS RECOMMENDED BY THE STAFF, INCLUDING THE CORRECTIONS INDICATED BY THE STAFF.
ASSEMBLYMAN MARVEL SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR NEAL AND ASSEMBLYMAN PERKINS WERE ABSENT FOR THE VOTE.)
* * * * *
Public Safety, Forfeitures – Law Enforcement – Budget Page PS-95 (Volume 3)
Budget Account 101-4703
Mr. Krmpotic reviewed the overview, technical adjustments, and decision items outlined on page 45 of Exhibit C. He stated staff has decreased adjusted base by $55,260 to reflect the adjustment in the cost of vehicle purchases.
Mr. Krmpotic asked whether the subcommittee wishes to approve the elimination of Forfeiture fund transfers to the Narcotics Control budget account as matching funds for the Edward Byrne Memorial grant. He added that, if the subcommittee wishes to eliminate this module and continue transfers to the Narcotics Control Budget account, General Funds of $390,145 in FY 2001‑02 and $420,840 in FY 2002‑03 could be eliminated from the Narcotics Control budget account.
SENATOR O’DONNELL MOVED TO CLOSE BUDGET 101-4703 WITH ADJUSTMENTS RECOMMENDED BY THE STAFF, AND TO APPROVE THE ELIMINATION OF THE FORFEITURE FUND TRANSFERS TO THE NARCOTICS CONTROL BUDGET ACCOUNT.
ASSEMBLYWOMAN CHOWNING SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR NEAL AND ASSEMBLYMAN PERKINS WERE ABSENT FOR THE VOTE.)
* * * * *
The following budget accounts on Closing List #8 (Exhibit C) were not addressed in this meeting:
Public Safety, Capitol Police – Budget Page PS-123 (Volume 3)
Budget Account 710-4727
Public Safety, Highway Safety Plan and Administration – Budget Page PS‑139 (Volume 3) – Budget Account 101-4688
Public Safety, Fire Marshall – Budget Page PS-158 (Volume 3)
Budget Account 101-3816
Hazardous Materials Training Center – Budget Page PS‑165 (Volume 3)
Budget Account 101-3834
Transportation Administration – Budget Page NDOT-1 (Volume 3)
Budget Account 201-4660
The meeting adjourned at 10:35 a.m.
RESPECTFULLY SUBMITTED:
Bob Williston
Committee Secretary
APPROVED BY:
Assemblyman David R. Parks, Chairman
DATE:
Senator Lawrence E. Jacobsen, Chairman
DATE: