MINUTES OF THE
SENATE Committee on Finance
Seventy-First Session
May 15, 2001
The Senate Committee on Financewas called to order by Chairman William J. Raggio at 8:11 a.m., on Tuesday, May 15, 2001, in Room 2134 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. Exhibit B is the Attendance Roster. All exhibits are available and on file at the Research Library of the Legislative Counsel Bureau.
COMMITTEE MEMBERS PRESENT:
Senator William J. Raggio, Chairman
Senator Raymond D. Rawson, Vice Chairman
Senator Lawrence E. Jacobsen
Senator Joseph M. Neal Jr.
Senator Bob Coffin
Senator Bernice Mathews
COMMITTEE MEMBERS ABSENT:
Senator William R. O’Donnell (Excused)
GUEST LEGISLATORS PRESENT:
Assemblywoman Christina R. Giunchigliani
Assemblyman Jerry D. Claborn
Assemblyman John C. Carpenter
STAFF MEMBERS PRESENT:
Gary L. Ghiggeri, Senate Fiscal Analyst
Bob Guernsey, Principal Deputy Fiscal Analyst
Georgia J. Rohrs, Program Analyst
Russell J. Guindon, Deputy Fiscal Analyst
Rick Combs, Program Analyst
Jim Rodriguez, Program Analyst
Jennifer Ruedy, Committee Secretary
OTHERS PRESENT:
R. Michael Turnipseed, P.E., Director, State Department of Conservation and Natural Resources
Frank Cassas, Chairman, Commission for the Preservation of Wild Horses, Department of Conservation and Natural Resources
Catherine Barcomb, Administrator, Commission for the Preservation of Wild Horses, Department of Conservation and Natural Resources
Daniel G. Miles, Interim Vice Chancellor, Finance and Administration, University and Community College System of Nevada
Clay Thomas, Deputy Chief, Division of Parole and Probation, Department of Motor Vehicles and Public Safety
Julie Johnson, Operation Supervisor, Interstate Compact Unit, Division of Parole and Probation, Department of Motor Vehicles and Public Safety
Larry Struve, Lobbyist, Religious Alliance in Nevada (RAIN)
Jeanette Hills, Deputy Administrator, Program and Field Operations, Welfare Division, Department of Human Resources
Elizabeth Breshears, Family Program Officer, Division of Child and Family Services, Department of Human Resources
May S. Shelton, Lobbyist, Washoe County
David C. Love, Lobbyist, Bethel Renaissance Aging Council and Grandparents Raising Grandchildren
Bill Bradley, Vice Chairman, Board of Wildlife Commissioners
Robert Beach, Wildlife Services, United States Department of Agriculture
Gene Weller, Deputy Administrator, Division of Wildlife, Department of Conservation and Natural Resources
Stephanie Licht, Lobbyist, Nevada Woolgrower’s Association
Don Hataway, Deputy Director, Budget Division, Department of Administration
Senator Raggio opened the hearing on Assembly Bill (A.B.) 662.
ASSEMBLY BILL 662: Revises provisions relating to authorization for expenditure of money in Heil trust fund for wild horses. (BDR 45-1516)
R. Michael Turnipseed, P.E., Director, State Department of Conservation and Natural Resources, stated during past sessions of the Legislature a cooperative program was funded wherein $15,000 was spent out of the Heil trust fund to match $15,000 by the Bureau of Land Management to conduct a feasibility study of creating a private non-profit foundation and to determine the cost of the foundation for promotion of the Wild Horse and Burro Program. He pointed out the Bureau of Land Management (BLM) is planning to remove 6,500 wild horses from Nevada rangelands this year, and the adoption program is slowing down the entire effort. He commented the feasibility study evaluated the potential formation of a private non-profit foundation to market the wild horses and streamline the adoption process.
Mr. Turnipseed explained that present language in the law states the Heil trust fund cannot fall below $900,000 unless an emergency exists. He said A.B. 662 proposes to eliminate the language “money is needed for an emergency and the,” which would enable the money to be spent below the $900,000 level with the approval of the Legislature. He noted there is approximately $1.2 million in the trust fund and the Heil Trust operates on the interest of those funds. He said this bill proposes to remove the limiting language, which would enable the use of $400,000 out of the Heil Trust fund to match $400,000 from the BLM over a 2˝ to 3 year period to create this private non-profit foundation.
Senator Raggio requested clarification of the proposed use of the combined $800,000.
Mr. Turnipseed responded the $800,000 would be used to create a private non‑profit foundation, which he anticipates would be self-sustaining after 2˝ to 3 years of operation. He explained many corporations are reluctant to give money to the BLM or the state because it is not tax deductible, but they could donate money to a private non-profit foundation and receive a tax deduction. He indicated Catherine Barcomb, Administrator, Commission for the Preservation of Wild Horses, is present, and she could testify to the large number of individuals and corporations that are willing to donate money to the proposed foundation but not to the BLM or the state.
Senator Raggio stated there were strict guidelines regarding the use of the bequeathed funds. He questioned whether this proposed use is appropriate within those guidelines.
Frank Cassas, Chairman, Commission for the Preservation of Wild Horses, Department of Conservation and Natural Resources, stated he believes this proposal is within the guidelines of using the funds for the preservation of wild horses in the state of Nevada. He said half of the wild horses that are under the jurisdiction of the United States Government are in the State of Nevada, and this proposal would assist Nevada in maintaining balance of the herds and the rangelands.
Catherine Barcomb, Administrator, Commission for the Preservation of Wild Horses, Department of Conservation and Natural Resources, noted the Office of the Attorney General concurred that this proposed use of funds was within the parameters of the Heil trust fund guidelines.
Senator Raggio inquired whether she had a written opinion from the Office of the Attorney General. Ms. Barcomb responded that the Office of the Attorney General had not provided a written opinion, only a memorandum to Mr. Turnipseed.
Senator Raggio suggested she provide the memorandum to the committee. He clarified the balance of the Heil trust fund is $1.2 million and this bill would reduce the balance to approximately $800,000.
Mr. Turnipseed responded the balance of the fund depends on interest rates, which have been relatively low in the past few years. He noted the accrued interest in past years was sufficient to fund water development projects, but in recent years the interest has barely covered administrative costs of the commission.
Senator Raggio referred to the feasibility report (Exhibit C. Original is on file in the Research Library.) provided by Ms. Barcomb. He questioned whether the National Wild Horse and Burro Foundation is already in existence.
Mr. Cassas responded the foundation is not in existence yet, but there is an advisory board with members of the Commission for the Preservation of Wild Horses and the BLM.
Senator Raggio clarified the distribution of funds will not take place until the plans are firmly established and the BLM is committed to making a similar grant. Mr. Cassas responded affirmatively.
Senator Rawson inquired about the existing limitations of the Heil trust fund.
Mr. Turnipseed stated existing law prohibits the use of funds, unless in the case of emergency, that would diminish the balance below $900,000. He explained the language referencing use for emergencies only will be deleted with this bill, and the use of the funds will be strictly upon approval of the Legislature. He said expenditures have always been made from the interest on the fund until this proposal.
Senator Rawson questioned whether the trust fund balance restrictions were provided by the Legislature or the trust fund.
Ms. Barcomb responded the Heil trust fund was given to the state in the early 1970s with only one restriction, which is “for the preservation and protection of wild horses.” She said the rest of the restrictions were later added by the Legislature.
Senator Raggio commented Mr. Heil provided a $1 million trust fund for the preservation and protection of wild horses during a time when wild horses were a controversial topic. He said the bequest cannot be used for any other purpose, and it has been difficult to find appropriate uses for the funds. He clarified the $900,000 limit was set by the Legislature.
Senator Rawson questioned who oversees the trust fund.
Mr. Turnipseed responded the Legislature authorizes all expenditures from that trust fund including Ms. Barcomb’s salary, and the travel expenses of the commission members.
Senator Rawson questioned why the state would want to transfer their authority to oversee the trust fund to a private non-profit foundation.
Senator Raggio responded the biggest problem the Legislature has faced regarding this trust fund is finding appropriate means to spend the money. Senator Rawson asked whether the funds could be spent down.
Mr. Turnipseed commented Ms. Barcomb believes there are sufficient funds in the Heil trust fund to continue to fund her program for the next ten years without additional funds. He pointed out the foundation may be able to reimburse the start up funds to the Heil trust fund from donations provided to the foundation over the next few years. He said at some point during the next ten years, the Legislature would need to decide whether they want to continue to oversee the BLM’s activities concerning wild horse management.
Senator Rawson commented an option would be to transfer the remaining fund balance to the foundation at some point.
Senator Raggio asked what other potential sources of funding exist for this purpose.
Ms. Barcomb stated the BLM has been approached by Purina, Stateline Tack, Petsmart, Hostess, and Ford Motor Company indicating they would like to donate millions of dollars into this type of foundation. She said the companies have indicated a donation to this type of foundation would yield significant public relations benefits, but the companies do not want to give money to the state or the BLM. She said the biggest problem with the BLM’s wild horse management program is the adoption program is not working well. She said the foundation’s main goal would be to improve the adoption process through education and marketing. She commented the foundation’s proposed efforts would benefit public lands and the wild horses.
Mr. Cassas said this project has been on-going for two to three years. He said the feasibility study was authorized by the 1999 Legislature and cost approximately $40,000. He commented this bill is the culmination of that study and will benefit the state and the BLM.
Senator Raggio closed the hearing on A.B. 662 and opened the hearing on Senate Bill (S.B.) 496.
SENATE BILL 496: Revises provisions regarding bonding for facilities of University and Community College System of Nevada. (BDR S-1226)
Daniel G. Miles, Interim Vice Chancellor, Finance and Administration, University and Community College System of Nevada, provided a copy of his proposed amendment (Exhibit D) to S.B. 496.
Senator Raggio commented this bill was heard on April 9, 2001.
Mr. Miles stated this bill sets new bonding capacity levels for revenue bonds for the University of Nevada, Reno (UNR) and the University of Nevada, Las Vegas (UNLV) by amending a prior statute passed by the 1991 Legislature. He said the amendment he is proposing would increase UNR’s revenue bonding limit to $88.5 million from $58.5 million. He explained that initial legislation provided bonding authority for 18 years and 9 of those years have passed. He pointed out UNR presented numerous projects after the introduction of this bill thereby necessitating the amendment. He added that each project would require individual approval to determine sufficient revenue would be available to redeem the bonds.
Senator Raggio questioned whether the amount for UNLV remains the same.
Mr. Miles replied affirmatively. He pointed out the second proposed amendment would provide a $3 million revenue bond authority to Great Basin College in Elko, Nevada. He noted S.B. 97 requests a $2.5 million “one-shot” appropriation to Great Basin College for a portion of the funds necessary to begin a campus housing project.
SENATE BILL 97: Makes appropriation to State Public Works Board for construction of residence facilities at Great Basin College, Elko campus. (BDR S-697)
Mr. Miles articulated Great Basin College would need to borrow funds in addition to any appropriation they receive, so they have requested revenue bond authority as an alternative to a bank loan, which would be more expensive. He said the amendment is fairly long because this is the first time in a long time any community college has requested revenue bond authority. He commented that John Swendseid, bond counsel for the University and Community College System of Nevada (UCCSN), drafted the amendment.
Senator Coffin questioned whether the UCCSN is close to reaching their revenue bond limits.
Mr. Miles responded there is no statutory limit on the revenue bond authority. He explained:
What limits the revenue bonds is when you go to calculate net pledged revenues that will be available to redeem a particular bond, you have to pass a statutory test. And the statutory test is that revenues you know will be there, or you can prove will be there, will exceed your debt requirements, including existing bonds, by at least 1.1 times in any particular fiscal year. And the last time we ran this calculation for the parking garage bonds we did at UNLV, we were at about 1.5 or 1.55 times the requirement, so we were well over the statutory limitation. And that test is done for each individual issue.
Senator Coffin stated the parking garage is not completed yet.
Mr. Miles responded the calculations are based on the current revenues that would be available to pay off the debt plus an estimate of the new revenues, which in this case is increased parking fees. He said the bonds are submitted to buyers and the bonds may or may not sell.
Senator Coffin commented the parking fees have increased significantly, and there is no guarantee the students will purchase parking permits at the new rate. He said the bonding appears to have been contingent upon the increased fee, so he is concerned the yield from the parking fees may not be sufficient.
Mr. Miles explained there are numerous pledged revenue sources and the parking fees are only a small part of the pledged revenue for these bonds.
SENATOR O’DONNELL MOVED TO AMEND AND DO PASS AS AMENDED S.B. 496.
SENATOR JACOBSEN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR RAWSON WAS ABSENT FOR THE VOTE.)
*****
Senator Raggio opened the hearing on S.B. 497. He indicated the committee had received a letter (Exhibit E) from Dr. Rita Huneycutt, Interim President, Truckee Meadows Community College (TMCC), University and Community College System of Nevada, regarding S.B. 497.
SENATE BILL 497: Authorizes issuance of general obligation bonds by state for purchase of certain facilities. (BDR S-1475)
Mr. Miles explained TMCC has been leasing the Reno Town Mall facility since about 1989, and the current owner of the mall is trying to sell the facility. He said TMCC proposes to purchase the facility through the sale of a general obligation bond. He noted the appropriated rent payments are nearly as much as the purchase payments would be.
Senator Raggio questioned whether there were other long-term tenants currently leasing the facility.
Mr. Miles responded TMCC leases a large part of the mall, but there are other tenants. He noted the rent income from the other tenants could also be used to redeem the general obligation bond requested for the purchase. He commented the State Treasurer has requested an amendment to line 17 of this bill. He said the amendment would remove the language “lesser of.” He explained the original purpose of that language was to allow any excess funds appropriated for rent beyond the bond redemption cost to stay with the UCCSN. He said the State Treasurer prefers to ensure the bond redemption costs are covered regardless of the amount.
Mr. Miles pointed out the letter from Dr. Huneycutt addressed the proposed amendments, but he suggested the Legal Division of the Legislative Counsel Bureau should consult with the UCCSN’s bond counsel, John O. Swendseid, to draft the formal amendment.
Senator Raggio requested that John O. Swendseid provide an amendment. Mr. Miles agreed to comply with the request.
Mr. Miles addressed the second proposed amendment to S.B. 497. He said the language “or similar facility in Reno” would be added after “Reno Town Mall” on line 6 of the bill to allow better negotiation with the owner of the Reno Town Mall.
Senator Coffin questioned whether the purchase of the Reno Town Mall would make the state a landlord to non-affiliated businesses and how that would be handled.
Mr. Miles responded the state would be a landlord until TMCC requires all of the space for its own use. He commented other UCCSN agencies rent space in the mall, but there are other private tenants.
Senator Mathews stated this is not the first time UCCSN has been in this position because at one point there were also private tenants at the University of Nevada facility on the former Stead Air Force Base.
Senator Raggio opened the hearing on S.B. 194.
SENATE BILL 194: Makes changes pertaining to interstate compacts for supervision of offenders. (BDR 16-107)
Senator Raggio explained the Senate Committee on Judiciary referred this bill because of the appropriation. He requested a brief overview of the bill and its effective date.
Clay Thomas, Deputy Chief, Division of Parole and Probation, Department of Motor Vehicles and Public Safety, stated this bill would not become effective until 35 states have enacted this into law. He said currently 19 states have enacted this into law and all but 10 of the remaining states and territories are in the process of evaluating this issue to potentially enact it into law.
Mr. Thomas explained his division had provided a fiscal note based on estimated costs from the creation of this state council. He said the original bill proposed a five-member council, but it has been amended to include seven members. He commented the estimated cost of $2,184 is based on four members from northern Nevada and three members from southern Nevada meeting four times a year. In addition to the state council, there is one voting member who would attend the national council meeting probably twice a year in Washington, D.C., and that would cost about $3,320, he noted. He pointed out there would also be an annual fee for Nevada to be part of the ratified compact, which is estimated to be $25,000 per year. He concluded the total cost of the bill would be $30,504 each year.
Senator Raggio inquired about the purpose of establishing this interstate compact.
Mr. Thomas responded under the existing compact no sanctions could be taken against any state that is not in compliance with compact rules. Therefore it is basically an honor system, he added. He pointed out the implementation of a national committee would include the authority to promulgate rules and regulations and bring sanctions upon the states that choose not to comply.
Senator Raggio asked what those sanctions would be.
Mr. Thomas responded there are numerous potential sanctions, but the compact would first attempt to resolve any complaint with the state.
Senator Raggio commented Section B of Article 12 of the bill provides for the following sanctions: fines, fees, costs, remedial training, technical assistance and suspension from the compact. Mr. Thomas replied those were all proposed sanctions.
Senator Raggio inquired whether there would be any cost to Nevada prior to the effective date, which would be pursuant to 35 states enacting this into law. Mr. Thomas responded there would be no costs prior to the effective date.
Senator Raggio suggested the bill be adopted without the appropriation or the authority at this time. He questioned whether that would create any problems if 35 states enact this into law prior to next session.
Mr. Thomas said if 35 states enact this into law prior to funding of this bill, it would delay Nevada’s participation in the compact.
Senator Raggio stated the Interstate Compact levies an assessment according to the bill to cover the cost of the operations. He inquired whether Nevada would have any participation in the determination of those costs in any given year once this becomes effective.
Mr. Thomas responded each state that becomes a member of the compact would have one voting member who would share in the responsibility of promulgating the rules and regulations in adopting the Interstate Compact.
Senator Raggio opined it appears the Interstate Compact will decide the amount Nevada will pay each year to belong to the compact. He questioned whether Nevada would have any review of the amount.
Mr. Thomas stated the one voting member from Nevada could voice opinions. He said based on the number of individuals that would be involved in the compact from Nevada, the state’s dues would be approximately $25,000.
Senator Raggio asked whether Mr. Thomas had any indication as to the potential action of other states currently considering participation.
Mr. Thomas commented only 10 states are not taking action at this time, so it is likely 35 states will enact the bill this year.
Julie Johnson, Operation Supervisor, Interstate Compact Unit, Division of Parole and Probation, Department of Motor Vehicles and Public Safety, stated it is anticipated 35 states will enact similar legislation this year.
Senator Neal questioned whether membership in the Interstate Compact is part of the federal government’s request to have an overall structure to handle adult offenders.
Ms. Johnson stated the current compact administrators association decided to update the current compacting several years ago because they wanted to provide for sanctions against non-compliant states. She said the association enlisted the help of the National Institute on Crime (NIC), which basically drafted this bill.
Senator Raggio closed the hearing on S.B. 194 and opened the hearing on A.B. 15.
ASSEMBLY BILL 15: Requires establishment of program to provide supportive assistance to certain persons who obtain legal guardianship of certain children. (BDR 38-368)
Assemblywoman Christina R. Giunchigliani stated A.B. 15 establishes a kinship care program that would be funded by Temporary Assistance for Needy Families (TANF). She noted the subcommittees closed the related budget with that funding recommendation. She explained this bill allows a grandparent or other member of the family to take a child in lieu of the child being placed in foster care, and the family member would receive similar subsidization to a foster parent. She said the proposed bill is very conservative, providing for an age cap and a 90 percent funding match at this point. She indicated if additional TANF funding became available for this particular program, then the age limit could be lowered or funding could be increased to 100 percent.
Ms. Giunchigliani commented this program would be operated out of the Welfare Division instead of the Division of Child and Family Services (DCFS), which would eliminate social workers home visits. She said the bill provides for full payment of the family member’s application for guardianship because the courts require the guardianship to have the child in their home. She said there are grandparents and kinship care groups in northern and southern Nevada. She commented, “We are not thrilled with the age cap, but we recognize the dollars.”
Senator Raggio requested clarification of the age cap and which relatives qualify under this bill.
Ms. Giunchigliani pointed out line 1 on the second page of the bill provides for the department to specify a minimum age for participation in the program, and the age has been set at 62 years old currently. She said the specific age would not be in statute, but the funding mechanism is set for participants who are 62 years old or older. She noted kinship care includes any family member not just grandparents. She articulated any family member over 62 years of age who applies for guardianship of a child would have the guardianship application and fingerprinting costs paid for by this program. She commented this program would also assist them with the guardianship process, and the guardian would then be qualified to receive subsidization at the foster care rate, which is currently established at 90 percent.
Senator Raggio requested clarification regarding the requirement that the child have been in the care of the qualifying relative for not less than 6 months.
Larry Struve, Lobbyist, Religious Alliance in Nevada (RAIN), testified in support of A.B. 15. He pointed out he has some familiarity with this matter through his affiliation with the Grandparents Raising Grandchildren Support Group in northern Nevada. He stated the bill specifies a condition to receive the financial assistance is for the family member to have cared for the child for at least 6 months prior to applying for assistance.
Ms. Giunchigliani commented she believes that condition is federally mandated. She said the present situation is the children are monitored by DCFS and the family member providing care receives minimal financial assistance. She commented many of the family members who provide this care believe they provide a beneficial service to the state by keeping these children out of foster homes, but they do not believe they should incur additional financial hardship in doing so. She noted this bill moves the program from DCFS to the Welfare Division to eliminate the social worker intervention and allow larger compensation.
Senator Raggio questioned whether the Welfare Division had approved this transfer.
Ms. Giunchigliani responded Michael J. Willden, Administrator of the Welfare Division has approved the transfer. She commented he participated in the effort while organizing the TANF funding.
Mr. Struve noted there is an increased need for this type of foster care, and he urges support of this bill.
Senator Raggio inquired about the amount of funding included in the budget for this program. Ms. Giunchigliani responded the TANF funding is “$860,000 in the first year and it moves to $2,291,232.22 over the biennium.”
Senator Raggio questioned how many children would be covered over the biennium.
Ms. Giunchigliani responded there is sufficient funding for 165 in the first year and up to 396 by the second year.
Senator Raggio asked whether there were that many cases out there to qualify for this assistance. Ms. Giunchigliani responded affirmatively.
Senator Raggio questioned whether there is a “needs test” to qualify for assistance.
Jeanette Hills, Deputy Administrator, Program and Field Operations, Welfare Division, Department of Human Resources, stated family members would have to meet the same criteria as anyone else applying for TANF funding. She said these cases would be considered “non-needy caretakers,” which means the family member would be receiving assistance on behalf of the children not themselves. She clarified that the children would have to meet the income and resource requirements of the TANF program. She pointed out most children are not receiving income unless it is child support or Supplemental Security Income (SSI), and she added child support is typically not enough to make the children ineligible for TANF.
Senator Raggio asked whether the legal obligation of parents to provide financial support to their children is affected by this program of the family member providing the care. Ms. Hills stated the Welfare Division would pursue any requirement for absent parents to provide child support.
Elizabeth Breshears, Family Program Officer, Division of Child and Family Services, Department of Human Resources, commented she would like to correct an impression that may have been made earlier. She said:
That is for the family members who do not qualify for this program, if they are currently caring for the children and the children qualify, they do receive the regular, non-needy care rate, so this particular program is for those who will likely raise these children on a permanent basis to provide that legal permanent guardianship and to more closely match foster care rates.
Senator Raggio responded, “So that is an enhanced rate.” Ms. Breshears nodded affirmatively.
Ms. Giunchigliani pointed out there is a resource guidebook available to assist the family members on handling their new responsibilities as a foster parent.
May S. Shelton, Lobbyist, Washoe County, stated her support of this bill.
David C. Love, Lobbyist, Bethel Renaissance Aging Council and Grandparents Raising Grandchildren, testified in support of this bill. He provided a written copy of his testimony (Exhibit F). He offered numerous additional suggestions: to establish a child-centered Aid to Families with Dependent Children (AFDC) program, to relax the definition of a family member to include a step-grandparent, to recognize alternative forms of verification of caregiver status, to streamline the application process for AFDC and related programs, and to exempt grandparent caretakers from required participation in job requirements during social service applications.
Senator Raggio asked Mr. Love whether he supports this bill as currently written. Mr. Love responded affirmatively.
Senator Raggio closed the hearing on A.B. 15 and opened the hearing on A.B. 291.
ASSEMBLY BILL 291: Imposes additional fee for processing application for game tag for support of programs to control predators and protect wildlife habitat. (BDR 45-160)
Assemblyman Jerry D. Claborn testified in support of A.B. 291, which he said is designed to bring nature back into its proper balance. He said overpopulation of predators has caused a significant decline in the number of game animals. He commented this bill would enable the game animal population to begin to recover their numbers within a few years. He explained $3 would be added to every big game application to generate an estimated $290,000, which would be used to start an effective predator control program. He pointed out in October 2000 the Division of Wildlife hired a private company to do a survey on what action should be taken regarding the predators. He noted 64 percent of hunters who responded to the survey stated they would be willing to pay an additional $5 on their application to support an effective predator management program, but the bill sponsors decided to request only $3.
Assemblyman John C. Carpenter stated his support of A.B. 291. He pointed out sheep ranchers pay a “head tax” for predator control, but the sheep numbers in Nevada have been drastically reduced over the years resulting in a diminished predator control program. He said he believes the predators are diminishing the game population in the absence of sheep. He refuted the idea that the decline in the game population should be attributed to a decline in feed due to livestock. He commented he has lived in the Ruby Mountains for fifty years and livestock is practically non-existent there, and the feed is plentiful. He said the deer numbers continue to decline despite the plentiful feed because of the large number of predators. He said he believes an increased predator control program would result in increased wildlife.
Senator Raggio questioned what predators this program would cover.
Mr. Carpenter responded this additional funding would be used mostly for coyotes and selective predator control for sage grouse and other birds. He said he believes there is a predator control program in place for mountain lions, so this new program would target other predators. He suggested Robert Beach, Wildlife Services, United States Department of Agriculture, would be more prepared to address the specific details of the program.
Senator Raggio questioned whether this bill replaces S.B. 30, which similarly requested an increased fee for big game licenses to provide for greater predator control.
Mr. Claborn responded he thought the bill had been amended to omit that section.
Senator Raggio assured him that section has not been omitted from S.B. 30.
SENATE BILL 30: Makes various changes to provisions relating to wildlife. (BDR 45-647)
Bill Bradley, Vice Chairman, Board of Wildlife Commissioners, stated S.B. 30 included a $5 big game application fee and a $200,000 General Fund allocation to initiate the predator control program. He said he believes, from a sportsman’s perspective, A.B. 291 is the preferable bill at this stage.
Senator Jacobsen questioned whether an increase in big game fees would jeopardize Pittman-Robertson funds.
Mr. Bradley responded the concern was regarding the original draft of the bill; wherein the money generated from the big game tags would be directed to the Department of Agriculture. He commented the funds passing directly to the Department of Agriculture were deemed to jeopardize Pittman-Robertson funds. He explained the first reprint of the bill alleviated that concern by providing for the money to go directly to the Division of Wildlife. He articulated the Division of Wildlife then has the authority to distribute those funds to Wildlife Services, private contractors, or whomever they choose to perform the predator control duties. He stated that as long as the Division of Wildlife receives the money and subsequently decides to distribute those funds, it does not jeopardize Pittman-Robertson funds.
Senator Jacobsen stated he would like assurance those funds will not be jeopardized.
Mr. Bradley responded he believes Linda Eissmann, Senior Research Analyst, Research Division, Legislative Counsel Bureau, has spoken with the Director of the Fish and Wildlife Service from Portland to receive that assurance.
Robert Beach, Wildlife Services, United States Department of Agriculture, stated the raven would be one of the primary predators targeted by this program. He commented the raven is a recognized predator of the sage grouse and sharp-tailed grouse. He commented the raven is known to attack lambs and calves during the birthing period, so he believes it is possible the raven also attacks antelope and deer during the vulnerable birthing period.
Senator Neal commented the raven is a smart bird. He questioned whether the raven attacks chukar.
Mr. Beach commented the raven could find eggs in the middle of the night.
Senator Raggio inquired whether the raven is a detriment to the chukar population. Mr. Beach responded the raven is detrimental to all nesting birds.
Senator Coffin pointed out the raven also preys on the desert tortoise by tipping them over and eating the meat out of the shell. He questioned whether the raven performs a necessary service to the ecology of the desert.
Mr. Beach stated the raven is a federally protected bird. He said the raven is a good bird in its properly managed population because it cleans up surplus populations, but the raven population exceeds its natural population in Nevada. He said the raven population is supplemented by feeding off of roadkill, landfills, and dairies; therefore, the population does not wane during low feed periods. He commented ravens have definitely had a negative effect on the desert tortoise population.
Senator Raggio asked how to distinguish between the raven and the crow.
Mr. Beach stated the crow has the same profile as a blackbird whereas the raven has an enlarged bill. He commented that the raven is physically equipped to be more aggressive and elusive. He said ravens typically do not appear in large numbers, but that is not the case in Nevada because of the abnormal population. He pointed out Nevada has more ravens than crows. He said he would send Senator Raggio a photo illustrating the difference between ravens and crows. He noted federal law requires a permit to kill a raven whereas a crow does not.
Senator Jacobsen inquired about the status of the current predator control funds. He said, “The cattle and sheep people used to put in $10,000 and Wildlife used to put in $10,000. Is that still a reality?”
Mr. Beach commented predator control currently collects 10 cents per sheep, but the sheep numbers have been steadily decreasing. He acknowledged Wildlife Services continues to work with the woolgrowers.
Senator Jacobsen inquired whether cattlemen contribute to the predator control effort.
Mr. Beach responded Wildlife Services does not receive money directly from the Cattlemen’s Association, but Wildlife Services does receive money from 5 of the 6 grazing boards, which finance the aerial hunting program to a large degree. He acknowledged Wildlife Services receives a considerable amount of money from both the sheep and cattle grazers.
Gene Weller, Deputy Administrator, Division of Wildlife, Department of Conservation and Natural Resources, stated his division provides $140,000 each year to the predatory animal and rodent control program from sportsmen’s fees.
Stephanie Licht, Lobbyist, Nevada Woolgrower’s Association, provided a copy of a letter (Exhibit G) from Hank Vogler, President, Nevada Woolgrower’s Association. She read directly from the letter, which is in support of A.B. 291. She stated her association’s “strong support of on the ground predator control.” She said the Division of Wildlife Services has been responsible for predator control since 1931, so the division is very knowledgeable of the practice.
Ms. Licht provided an excerpt from the Sheep Industry News (Exhibit H). She pointed out the excerpt indicates predators cause $12.8 billion in damage every year to natural resources, public infrastructures, private property, and agriculture. She noted 32 diverse groups including the Airline Pilots Association support the Wildlife Services program.
Senator Raggio questioned whether A.B. 291 replaces S.B. 30.
Mr. Bradley commented that A.B. 291 is the preferable bill to stimulate the predator control program.
Senator Jacobsen stated he would like to discuss A.B. 662 again briefly before Paul J. Iverson, Director, State Department of Agriculture, leaves the committee meeting. He commented that S.B. 443 was indefinitely postponed on May 10, 2001.
SENATE BILL 443: Makes appropriation to Department of Prisons for stables for wild horses for prison industries. (BDR S-1379)
Senator Jacobsen asked Mr. Iverson whether Heil trust fund could provide the necessary funding to build the stables.
Senator Raggio questioned whether some related action was taken concerning the prison industry fund.
Mr. Ghiggeri responded that in the closing of the Prison Industry budget account 525-3719, $200,000 was authorized to construct the stables with Prison Industry funds.
Senator Jacobsen thanked Mr. Ghiggeri for the information.
Senator Raggio directed attention to S.B. 360.
SENATE BILL 360: Requires addition of certain marker on Mount Charleston on schedule for placement of historical markers. (BDR S-1227)
Senator Rawson proposed an amendment to S.B. 360 (Exhibit I). He noted the amendment deletes all appropriations and assigns to the administrator of the Office of Historic Preservation, Department of Museums, Library and Arts to add to its schedule of construction of historic markers. He said this bill provides for a historic marker for “the silent heroes of the Cold War” to be add to the long list of markers waiting for construction by the Office of Historic Preservation.
SENATOR RAWSON MOVED TO AMEND AND DO PASS AS AMENDED S.B. 360.
SENATOR O’DONNELL SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Senator Jacobsen commented many of the markers are in very poor condition and require maintenance. He suggested Prison Industry might be able to assist in the maintenance of the markers.
Senator Raggio asked Bob Guernsey, Principal Deputy Fiscal Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, for suggestions regarding the maintenance of the markers.
Mr. Guernsey stated the Office of Historic Preservation has been working closely with the Nevada Department of Transportation (NDOT). He explained NDOT is providing ongoing funding for restoration and replacement of markers when necessary. He noted the Department of Museums, Library, and Arts receives funds from the Highway Department to perform maintenance of the markers.
Senator O’Donnell stated the markers are a very important aspect of Nevada’s image and history. He questioned whether the Office of Historic Preservation, Department of Museums, Library and Arts, has sufficient staff to maintain the markers. He suggested the office might need an additional half-time position for this purpose.
Senator Raggio requested a volunteer to pursue Senator O’Donnell’s suggestion.
Senator O’Donnell volunteered.
Senator Coffin suggested the bill should not be held up while the additional position is being evaluated. He said, “There could be a marker placed along Highway 95 at this point indicating that this is an area near that, at least as a starting point, that could be done before the marker is even put up on the mountain.” He stated the Highway Department is in a better financial position to do the maintenance because the Department of Museums, Library and Arts is typically under funded.
Senator Jacobsen volunteered to assist Senator O’Donnell pursue a solution to the maintenance problem.
Senator Rawson commented the bill could be processed. Senator Raggio indicated the earlier motion to amend and do pass as amended S.B. 360 stands.
Senator Raggio opened the hearing on S.B. 402.
SENATE BILL 402: Creates advisory task force on long-term care. (BDR 17-972)
Senator Rawson proposed an amendment (Exhibit J) to S.B. 402, which deletes the appropriation. He indicated the amendment provides for the long-term care issues to be reviewed by the Legislative Committee on Health Care in lieu of a permanent task force.
SENATOR RAWSON MOVED TO AMEND AND DO PASS AS AMENDED S.B. 402.
SENATOR JACOBSEN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Georgia J. Rohrs, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, read verbatim from the Joint Subcommittee on K-12/Human Resources Closing Report: Department of Human Resources, Aging Services Division dated May 14, 2001 (Exhibit K).
HR, Aging Services Grants – Budget Page AGING-1 (Volume 2)
Budget Account 262-3140
Ms. Rohrs stated items proposed for this budget account are a new auditor position to conduct annual fiscal evaluations of programs and to prepare the annual fiscal report for the Governor and the Legislature. A Letter of Intent is also recommended, she added, with regard to the use of Tobacco Settlement Monies to fund positions in other division accounts. She said the committee indicated a Letter of Intent should direct the division to look to other revenue sources in the future to fund these positions.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 262-3140 AS RECOMMENDED BY THE JOINT SUBCOMMITTEE ON K-12/HUMAN RESOURCES.
SENATOR O’DONNELL SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
HR, Aging Older Americans Act – Budget Page AGING-4 (Volume 2)
Budget Account 101-3151
Ms. Rohrs pointed out the Joint Subcommittee on K-12/Human Resources approved four new administrative positions as recommended by the Governor to be funded by a combination of General Fund and federal funds: 1 Personnel Technician, 1 Management Analyst, 1 Computer Systems Technician, and 1 Policy and Planning Analyst. She noted the Policy and Planning Analyst, which was not sufficiently justified, is to be funded by vacancy savings, which reduced the funding required from the General Fund and from Medicaid.
Senator Raggio inquired whether the subcommittee’s recommendation to fund a new Policy and Planning Analyst by vacancy savings is realistic.
Ms. Rohrs responded the budget adjustment was satisfactorily accomplished. She stated it might require an additional adjustment to the Medicaid budget because the amount of Medicaid funding for this position would be reduced. She noted she would seek authority from this committee to do that.
Ms. Rohrs noted the subcommittee also recommended approval of a long-term care ombudsman position (Compliance Investigator) for the Reno-Sparks and outlying areas, which would be funded by a combination of state and federal funds.
Ms. Rohrs pointed out the subcommittee approved funding for a wide area network for the Las Vegas and Reno offices, which affects this budget account and the next two she will be addressing.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101-3151 AS RECOMMENDED BY THE JOINT SUBCOMMITTEE ON K-12/HUMAN RESOURCES.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
HR, Senior Services Program – Budget Page AGING-13 (Volume 2)
Budget Account 101-3146
Senator Raggio noted the wide area network funding also applies to this budget account.
Ms. Rohrs read verbatim from the Closing Report dated May 14, 2001 (Exhibit K). She indicated the subcommittee recommended closing the Senior Services budget, also known as the Community Home-Based Initiatives Program (CHIP), with an increase of $3 million for the upcoming biennium, from Medicaid and Tobacco Settlement funds, to fund caseload growth. Ms. Rohrs indicated funding would provide the resources to serve an additional 171 clients. She added that another $1.1 million in Medicaid funding for the 2001-2003 biennium was recommended by the subcommittee to expand CHIP to serve 160 additional clients. In total, she stated, the $4.1 million increase in funding over the upcoming biennium would serve an additional 331 clients. Further, she continued, 5 Social Workers, 2 Program Assistants, and 1 Social Work Supervisor positions were recommended for the Las Vegas office, along with a Social Worker position for the Reno office and 1 Accounting Clerk for the Carson City office. Ms. Rohrs indicated the subcommittee did not recommend funding another Computer System Technician position for the Las Vegas office.
Ms. Rohrs stated the subcommittee recommends an expansion of the Adult Group Waiver program for an addition of 100 seniors. She pointed out the eligibility criteria for this waiver will be modified to allow seniors better access to this program which is a less restrictive and less expensive level of care compared to institutionalization. She said 2 new social worker positions for the Las Vegas office and a Program Assistant position in the Carson City office are recommended to support the additional caseload.
Ms. Rohrs remarked the subcommittee recommends increasing the contract rates for service providers by 3 percent each fiscal year, at a cost of $574,042, for the 2001-2003 biennium. She indicated that funding would come from the General Fund, Tobacco Settlement monies, and Medicaid. She added this will assist recruiting efforts for service providers, especially in the rural areas where the number of agency providers is limited.
Senator Raggio clarified the subcommittee does not recommend funding the requested Computer Systems Technician position for the Las Vegas office. Ms. Rohrs explained the division had requested 2 Computer Systems Technician in addition to one they already have in Las Vegas.
Senator Raggio asked Don Hataway, Deputy Director, Budget Division, Department of Administration, to state any objections to the budget closing as the committee addresses each budget. Mr. Hataway indicated he would.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101-3146 AS RECOMMENDED BY THE JOINT SUBCOMMITTEE ON K-12/HUMAN RESOURCES.
SENATOR O’DONNELL SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
HR, EPS/Homemaker Programs – Budget Page AGING-19 (Volume 2)
Budget Account 101-3252
Ms. Rohrs read verbatim from the Closing Report dated May 14, 2001 (Exhibit K). She indicated the subcommittee recommends an expansion of the Homemaker program with $415,947 in Tobacco Settlement monies for the next biennium. Ms. Rohrs clarified the additional funding will provide for 1 Social Worker position for the Las Vegas office and add 100 elderly participants to the Homemaker program for in-home services to avoid institutional placement.
Senator Raggio inquired whether the recommendations of the Joint Subcommittee on K-12/Human Resources are consistent with the recommendations of the Governor. Ms. Rohrs responded affirmatively.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101-3252 AS RECOMMENDED BY THE JOINT SUBCOMMITTEE ON K-12/HUMAN RESOURCES.
SENATOR O’DONNELL SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Senior Citizens’ Property Tax Assistance – Budget Page AGING-23 (Volume 2)
Budget Account 101-2363
Russell J. Guindon, Deputy Fiscal Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, pointed out legislation is needed to enact the transfer of the Senior Citizens Property Tax Assistance Program from the Department of Taxation to the Aging Services Division as recommended by the Governor and the Joint Subcommittee on K-12/Human Resources.
Mr. Guindon noted the subcommittee recommends closing this budget as recommended by the Governor with technical adjustments with the exception of the enhanced funding of approximately $3.8 million in FY 2002 and $4.1 million in FY 2003. He explained the subcommittee has eliminated the enhanced funding originally recommended by the Governor to expand the level of refunds to senior citizens in this program. He noted the subcommittee’s decision to eliminate the enhanced funding is pursuant to the Economic Forum’s revised revenue outlook.
Mr. Guindon stated the subcommittee approved increased funding of approximately $66,000 in FY 2002 and $153,000 in FY 2003 to provide adequate support for demographic growth of the current program, which was based on revised information from the Department of Taxation. He noted the subcommittee also approved a photocopier lease and office space rental costs required by the Aging Services Division to accommodate the transfer of this program. He said, as recommended by the subcommittee, the closing of this budget results in a net General Fund savings of approximately $3.7 million in FY 2002 and $3.9 million in FY 2003.
Senator Raggio clarified the property tax assistance for senior citizens will be maintained at the same level according to these recommendations.
Mr. Hataway responded affirmatively and indicated the Governor agrees with that action.
Senator Raggio questioned how the motion to close this budget should address the transfer of the program.
Mr. Ghiggeri stated the motion should include a request for staff to request a bill to effect the transfer.
Senator Raggio requested a motion to close the budget as recommended by the subcommittee and to request the appropriate bill to effect the transfer of this program from the Department of Taxation to the Aging Services Division.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101-2363 AS RECOMMENDED BY THE JOINT SUBCOMMITTEE ON K-12/HUMAN RESOURCES AND TO REQUEST THAT STAFF REQUEST THE APPROPRIATE BILL TO EFFECT THE TRANSFER OF THIS PROGRAM FROM THE DEPARTMENT OF TAXATION TO THE AGING SERVICES DIVISION.
SENATOR O’DONNELL SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Public Employees Benefits Program – Budget Page PEBP-1 (Volume 3)
Budget Account 625-1338
Georgia J. Rohrs read verbatim from the Joint Subcommittee on General Government Closing Report: Public Employees’ Benefits Program dated May 15, 2001 (Exhibit L). She stated the subcommittee recommends state subsidy amounts of $357.50 per month, for FY 2002 and $384.50 per month, for FY 2003 for active state employees. Further, she added, the Public Employees’ Benefits Program Board (PEBP) adopted a rate structure that blends retiree rates with actives, which subsidizes retirees above the legislative subsidy amount.
Ms. Rohrs continued stating the subcommittee also recommends inflationary rates as recommended by the Segal Company, the actuary for PEBP. She added that an 8 percent increase per year is recommended for each fiscal year in the upcoming biennium for vision and dental costs; a 10 percent increase per year for medical costs; and a 20 percent increase per year for prescription costs. She pointed out medical claims are projected to reach $104,819,621 in FY 2002 and $117,820,562 in FY 2003.
Ms. Rohrs said the subcommittee recommends a reserve for incurred but not yet reported (IBNR) claims at 16.7 percent of medical claims, at a minimum, as recommended by the Segal Company. She clarified this is an amount approximately equal to 2 months of medical claims. Due to concerns about the financial stability of the PEBP, she said, the subcommittee recommends a Letter of Intent be issued directing the PEBP to report to the Interim Finance Committee (IFC) at the first meeting following the close of FY 2001 and FY 2002 on the financial stability of its budget, and, specifically, the reserve level.
Ms. Rohrs added that expenditures for the PEBP amounted to $120 million in FY 2000. She said the subcommittee recommends total expenditures of approximately $164.6 million for FY 2002 and $181.7 million for FY 2003.
Senator Raggio inquired whether those adjusted amounts differ from the original figures in the budget. Ms. Rohrs responded the Governor’s recommendations were issued in January 2001, and subsequent adjustments were necessary to achieve the levels recommended by the actuary.
Senator Raggio questioned whether the amounts are higher than the original amounts. Ms. Rohrs responded affirmatively.
Senator Raggio asked whether the state subsidy amounts of $357.50 for FY 2002 and $384.50 for FY 2003 were acceptable to the Governor. Mr. Ghiggeri responded the Governor recommended those amounts.
Ms. Rohrs stated the subcommittee also recommended the subsidy amounts.
Ms. Rohrs stated the subcommittee did not approve the recommended transfer and consolidation of the Retired Employee Group Insurance budget account with the Public Employees’ Benefits Program budget account.
Senator Raggio suggested Ms. Rohrs address the Retired Employee Group Insurance.
Retired Employee Group Insurance – Budget Page PEBP-8 (Volume 3)
Budget Account 101-1368
Ms. Rohrs stated the subcommittee approved the recommended state subsidy amounts of $202.34 for FY 2002 and $217.84 for FY 2003. She articulated the subcommittee also approved the recommended payroll assessment rate against state employee wages of 1.51 percent in FY 2002 and 1.69 percent in FY 2003 to pay the state subsidy for retiree group insurance. She noted the subcommittee further approved the recommended restructuring the assessment process to automatically collect the assessment charge for retirees on the fourth pay period into each fiscal year to ensure sufficient assessments are collected to cover the cost of retiree subsidies. She explained covering the cost of retiree subsidies has been a problem in the past.
Senator Raggio requested clarification of the payroll assessment to provide for retiree subsidies. Ms. Rohrs responded the subcommittee is recommending a lump sum be taken out of contributing budgets once, during the fiscal year, in lieu of the previous monthly assessment charge.
Senator Raggio clarified the assessment charge is taken from active employees not retirees. Ms. Rohrs concurred and explained the charge allows the retirees who pay a premium to pay the difference between the total premium and the state subsidy amount.
Mr. Ghiggeri commented at the budget hearing on March 30, 2001, information was provided, which indicated approximately $4 million to $6 million would be available to balance forward from FY 2001 to FY 2002. He noted that upon review, the Segal Company concluded $4.3 million would be balanced forward to the incurred but not reported (IBNR) reserve. He explained a Letter of Intent has been recommended by the subcommittee to verify that amount is balanced forward, and the IFC is able to monitor this matter closely.
Senator Raggio asked what the amount of the IBNR reserve would be after the $4.3 million balance forward. Ms. Rohrs responded the IBNR reserve is projected to total $21.8 million for FY 2002 and $24 million for FY 2003, including the transfer.
Senator Coffin questioned why the Segal Company requested 2 months worth of reserve in lieu of 3 months, which he stated is generally accepted for commercial clients.
Ms. Rohrs explained the Segal Company defined a range before settling on a specific number. She added that the rate could be higher.
Senator Coffin inquired about the range that had been defined.
Ms. Rohrs responded that she could provide that information at another time because she is recalling the information from memory and it may not be accurate. She responded the proposed 16.7 percent is a little higher than what was calculated for the last fiscal year as an IBNR reserve, and it is within the range. She said the claims for January through March of 2001 were lower than expected and would contribute to the $4.3 million “cushion” in the reserve. She noted 16.7 percent would be $19.7 million for FY 2002, and an additional $4.3 million is anticipated in that reserve.
Senator Coffin asked why the claims were lower than expected in January through March 2001. He asked whether that was the result of a reduction in benefits.
Ms. Rohrs responded that the lower claims were the result of the change in the plan and the withdrawal of Washoe Medical Center as a health maintenance organization (HMO). She said she did not believe it was related to a reduction in benefits.
SENATOR O’DONNELL MOVED TO CLOSE BUDGET ACCOUNTS 625-1338 AND 101-1368 AS RECOMMENDED BY THE JOINT SUBCOMMITTEE ON GENERAL GOVERNMENT.
SENATOR NEAL SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR RAWSON WAS ABSENT FOR THE VOTE.)
*****
AGRI, Administration – Budget Page AGRI-1 (Volume 1)
Budget Account 101-4554
Rick Combs, Program Analyst, Legislative Counsel Bureau, read verbatim from page 1 and 2 of the Joint Subcommittee on General Government Closing Report: Department of Agriculture, Division of Minerals dated May 15, 2001, (Exhibit M). He pointed out the closing actions resulted in a general fund savings totaling $312,843 in FY 2002 and $367,496 in FY 2003, when compared to the Governor’s recommended budget.
Mr. Combs pointed out The Executive Budget recommended the consolidation of most of the department’s non-general fund accounts into accounts that receive General Fund appropriations. He said the subcommittee voted to deny the consolidation of most of the department’s accounts due to the limited advantages to combining those accounts, and the difficulty in tracking revenues and expenditures. He stated the subcommittee agreed to consolidate several accounts, which include the High School Rodeo Association account, which is a pass-through account that includes about $20,000 each year, to be combined with the department’s Administration account. He indicated the Apiary Inspection account will be consolidated with the Plant Industry account. Also, he added, the subcommittee approved the department’s request to combine the Garlic and Onion Research and Promotion account with the Alfalfa Promotion account.
Mr. Combs reported that the subcommittee approved the implementation of the department’s cost allocation plan to fund the administrative costs of the department. He further explained that the cost allocation plan was a result of a Letter of Intent issued by the 1999 Legislature. Mr. Combs added that the implementation of the plan resulted in a reduction of General Fund support for the administrative account totaling $256,426 in FY 2002 and $241,791 in FY 2003.
SENATOR NEAL MOVED TO CLOSE BUDGET ACCOUNT 101-4554 AS RECOMMENDED BY THE JOINT SUBCOMMITTEE ON GENERAL GOVERNMENT.
SENATOR O’DONNELL SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR COFFIN WAS ABSENT FOR THE VOTE.)
*****
AGRI, Plant Industry – Budget Page AGRI-8 (Volume 1)
Budget Account 101-4540
Mr. Combs read verbatim from pages 2 and 3 of the Joint Subcommittee on General Government Closing Report: Department of Agriculture and Division of Minerals dated May 15, 2001 (Exhibit M).
Mr. Combs reported the subcommittee approved the continuation of 2 positions that were approved by the IFC during FY 2001. He added that the positions will conduct inspections of nurseries and landscaping companies in southern Nevada and assist with new licensing requirements for the pesticide industry. He explained the subcommittee voted to eliminate the reserve for the Plant Industry account that had been established in The Executive Budget.
Mr. Combs indicated the subcommittee based its decision on the fact the account receives a General Fund appropriation and that allowing a reserve in such an account would establish a precedent that would negatively impact the General Fund. He added that the subcommittee recommended a Letter of Intent, in that regard, directing the department to request contingency funds from IFC if an unanticipated need arises for the pest control licensing regulation, and Continuing Education Program or the Nursery Inspection Program.
Mr. Combs pointed out these were the programs that basically contributed to that reserve through fee increases during the interim. He said the subcommittee wanted to make sure that the unneeded General Fund was reduced and at the same time to note they had the ability to come to IFC if something were to happen in those programs.
Mr. Combs reported that, after the subcommittee closed the Plant Industry account, the department requested an adjustment to the budget. He added the department indicated that funding to be received from state and local agencies for reimbursement of weed control and weed survey activities was overstated in The Executive Budget by $34,411 in FY 2002 and $34,491 in FY 2003.
Mr. Combs stated he had reviewed the request and it appeared that an adjustment to the budget account is warranted. He added that, although the General Fund appropriation necessary to support the account will be increased by this adjustment, the overall General Fund appropriation for this account will still be reduced from the amount recommended by the Governor based on the subcommittee’s decision to eliminate the reserve.
Senator Raggio indicated he would accept a motion to close budget account 101‑4540 with the recommendations of the Joint Subcommittee on General Government, and an additional change recommended by staff that increases funding for the weed control and weed survey activities.
SENATOR NEAL MOVED TO CLOSE BUDGET ACCOUNT 101-4540 AS RECOMMENDED BY THE JOINT SUBCOMMITTEE ON GENERAL GOVERNMENT WITH THE ADDITIONAL RECOMMENDATION BY STAFF TO INCREASE FUNDING FOR THE WEED CONTROL AND WEED SURVEY ACTIVITIES.
SENATOR O’DONNELL SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS COFFIN AND RAWSON WERE ABSENT FOR THE VOTE.)
*****
AGRI, Weights & Measures – Budget Page AGRI-22 (Volume 1)
Budget Account 101-4551
Mr. Combs read verbatim from page 3 of the Joint Subcommittee on General Government Closing Report: Department of Agriculture and Division of Minerals dated May 15, 2001 (Exhibit M).
Mr. Combs reported the subcommittee voted to eliminate the reserve for the account that had been established in The Executive Budget. He added that similar to the Plant Industry account, the subcommittee based its decision on the fact that the account receives a General Fund appropriation and that allowing a reserve in such an account would establish a precedent that would negatively impact the General Fund. He added that the actions of the subcommittee in this account resulted in a General Fund savings totaling $53,267 in FY 2002 and $117,750 in FY 2003.
Senator Raggio inquired whether there is any reason to anticipate this agency would need to seek contingency funds from the IFC.
Mr. Combs responded that the agency receives General Fund support, so the agency has historically had the authority to seek contingency funds.
SENATOR NEAL MOVED TO CLOSE BUDGET ACCOUNT 101-4551 AS RECOMMENDED BY THE JOINT SUBCOMMITTEE ON GENERAL GOVERNMENT.
SENATOR O’DONNELL SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS COFFIN AND RAWSON WERE ABSENT FOR THE VOTE.)
AGRI, Gas Pollution Standards – Budget Page AGRI-28 (Volume 1)
Budget Account 101-4537
Mr. Combs stated there were a number of adjustments to decision units that resulted in some reduced costs. He noted this budget account is funded from a transfer from the Department of Motor Vehicles and Public Safety pollution control fund.
E-720 New Equipment – Page AGRI-31
Mr. Combs directed attention to the adjustments in this decision unit. He pointed out this decision unit recommends $99,980 in FY 2002 for equipment purchases to test petroleum products to ensure the products meet the requirements established by the Board of Agriculture. He explained the subcommittee voted to authorize staff to delete the expenditures for a minivap tester if the provisions of A.B. 629 are enacted, which would eliminate the need for the department to test liquefied petroleum gas. He said the Senate Committee on Natural Resources is currently considering that bill.
ASSEMBLY BILL 629: Clarifies standards for regulating petroleum products used in internal combustion engines. (BDR 51-543)
Senator Raggio inquired whether staff recommends closing the budget at this time. Mr. Combs responded the budget could be closed and requested the authority to make the necessary adjustment to decision unit E-720.
SENATOR NEAL MOVED TO CLOSE BUDGET ACCOUNT 101-4537 AS RECOMMENDED BY THE JOINT SUBCOMMITTEE ON GENERAL GOVERNMENT.
SENATOR O’DONNELL SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS COFFIN AND RAWSON WERE ABSENT FOR THE VOTE.)
*****
AGRI, Agriculture Registration/Enforcement – Budget Page AGRI-34 (Volume 1)
Budget Account 101-4545
M-200 Demographics/Caseload Changes – Page AGRI-36
Mr. Combs stated the subcommittee voted to approve the increased out-of-state travel as recommended in this decision unit at a reduced cost per trip.
Mr. Combs commented the only other issue in this budget account is the consolidation with the Plant Industry budget account, which is not recommended for approval.
Senator Raggio stated he assumes that Paul J. Iverson, Director, State Department of Agriculture is aware of these budget actions. Mr. Combs responded that Mr. Iverson is aware of the actions.
SENATOR O’DONNELL MOVED TO CLOSE BUDGET ACCOUNT 101-4545 AS RECOMMENDED BY THE JOINT SUBCOMMITTEE ON GENERAL GOVERNMENT.
SENATOR NEAL SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS COFFIN AND RAWSON WERE ABSENT FOR THE VOTE.)
*****
AGRI Grade & ID of Agricultural Products – Budget Page AGRI-41 (Volume 1)
Budget Account 101-4541
Mr. Combs stated the only adjustments made were technical and the decision units were related to the consolidation of this account with the Plant Industry account. He added the consolidation is not recommended for approval by the subcommittee. He said the main technical adjustments were to ensure there is sufficient funding in the budget to pay for the seasonal salary positions and the salary increase recommended by the Governor. He added that additional funding of $5,982 in FY 2002 and $8,243 in FY 2003 is recommended for transfer from reserve to salaries to address that concern.
SENATOR O’DONNELL MOVED TO CLOSE BUDGET ACCOUNT 101-4541 AS RECOMMENDED BY THE JOINT SUBCOMMITTEE ON GENERAL GOVERNMENT.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS COFFIN AND RAWSON WERE ABSENT FOR THE VOTE.)
*****
AGRI, Garlic & Onion Research – Budget Page AGRI-47 (Volume 1)
Budget Account 101-4544
Mr. Combs commented in this account there were no decision units recommended in The Executive Budget other than consolidation issues.
Senator Raggio questioned whether there were income problems with this budget account.
Mr. Combs replied the revenue problems Senator Raggio referred to were part of Grade & ID of Agricultural Products budget account 101-4541, on the grade and certification in which testing is done on seed fields and garlic seeds. Senator Raggio asked how that revenue loss was resolved. Mr. Combs replied they are still having problems collecting the revenue, and explained a garlic farmer has been experiencing difficulty obtaining funds to pay what is owed in budget account 101‑4541, but hopefully that will be resolved next biennium.
SENATOR O’DONNELL MOVED TO CLOSE BUDGET ACCOUNT 101-4541 AS RECOMMENDED BY THE JOINT SUBCOMMITTEE ON GENERAL GOVERNMENT.
SENATOR JACOBSEN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS COFFIN AND RAWSON WERE ABSENT FOR THE VOTE.)
*****
AGRI, Rural Rehabilitation Trust Fund – Budget Page AGRI-51 (Volume 1)
Budget Account 643-4553
Mr. Combs stated this budget account is basically the Nevada Junior Agricultural Loan Program, which provides low-interest loans to Nevadans who are under the age of 21 for conducting agricultural projects. He noted there was a technical adjustment to remove some expenditures from the mediation program, which is funded by the United States Department of Agriculture (USDA). He explained the mediation program was transferred to the Administration budget account 101-4554 via work program during the interim.
SENATOR O’DONNELL MOVED TO CLOSE BUDGET ACCOUNT 643-4553 AS RECOMMENDED BY THE JOINT SUBCOMMITTEE ON GENERAL GOVERNMENT.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS COFFIN AND RAWSON WERE ABSENT FOR THE VOTE.)
*****
AGRI, Livestock Inspection – Budget Page AGRI-55 (Volume 1)
Budget Account 101-4546
Mr. Combs read verbatim from page 4 of the Joint Subcommittee on General Government Closing Report: Department of Agriculture and Division of Minerals dated May 15, 2001 (Exhibit M). He reported the subcommittee approved the Governor’s recommendation for a new full-time Microbiologist position to assist with the department’s Food Safety and Quality Assurance Program. He added that this position will expand the department’s educational programs regarding food quality and safety and assist livestock owners in certifying that their animals meet new requirements imposed by livestock marketers as a result of the recent incidence of “mad cow” disease.
Mr. Combs indicated the subcommittee also approved the Governor’s recommendation to eliminate a Management Assistant position and to replace that position with a new full-time Program Officer position to collect the Livestock Head tax, which is one of the revenue sources used to support the account. He clarified that currently the Livestock Head tax is collected by the county assessors and transferred to the department.
Senator Raggio inquired whether this budget account included the activities of the brand inspector. Mr. Combs responded affirmatively.
Mr. Combs added that the subcommittee approved the Governor’s recommendation to increase a part-time Brand Inspector position to full-time, and to transfer that position and 3 additional Brand Inspector positions from this account to begin a new program to patrol highways throughout Nevada and to inspect agricultural materials and livestock at various designated points. Further, he added, the goal of the program is to ensure that agricultural products are free from invasive pests, noxious weeds, and disease. He explained these positions will be serving to inspect agricultural products that are not livestock, and will also be doing livestock inspections as well.
He pointed out the subcommittee approved the Governor’s recommendation to fund the new program at a cost to the General Fund of approximately 73 percent of the positions’ total costs, which was previously funded through fee revenue in the Livestock Inspection account. He stated that although the subcommittee supported the transfer of these positions, they did not support the transfer of the positions to the department’s Administration account. Instead, he offered, the subcommittee voted to transfer the positions to the Plant Industry account.
Mr. Combs explained that the subcommittee approved the use of four positions for a new program to patrol highways throughout Nevada and to inspect agricultural materials and livestock at various designated points. He said in lieu of approving the requested transfer of the four positions to the department’s Administration account, the subcommittee recommended transferring them to the Plant Industry budget account. He commented the subcommittee’s actions were based on the fact these positions did not fit into the purely administrative role and they would not be funded from the cost allocation plan. He noted peace officer positions that perform similar activities already exist in the Plant Industry account, so the subcommittee felt it would be better for the four positions to be moved to the Plant Industry account.
SENATOR NEAL MOVED TO CLOSE BUDGET ACCOUNT 101-4546 AS RECOMMENDED BY THE JOINT SUBCOMMITTEE ON GENERAL GOVERNMENT.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS COFFIN AND RAWSON WERE ABSENT FOR THE VOTE.)
*****
AGRI, Veterinary Medical Services – Budget Page AGRI-67 (Volume 1)
Budget Account 101-4550
Mr. Combs read verbatim from page 5 of the Joint Subcommittee on General Government Closing Report: Department of Agriculture and Division of Minerals dated May 15, 2001 (Exhibit M). He reported that the subcommittee did not approve the Governor’s recommendation to fund a new position to manage a Wild Horse-Gentling program in cooperation with the Nevada Department of Prisons (DOP). Instead, he commented, the subcommittee recommended that the position be funded in the Prison Industry program as an employee of the Department of Prisons.
Mr. Combs pointed out that, as recommended in The Executive Budget, approximately 85 percent of the costs for the position would have been funded through a General Fund appropriation, while the remaining costs would have been funded through the sale of estray horses. Mr. Combs explained the Horse-Gentling program uses prison inmates to tame and care for estray horses rounded up from the Virginia Range.
SENATOR O’DONNELL MOVED TO CLOSE BUDGET ACCOUNT 101-4550 AS RECOMMENDED BY THE JOINT SUBCOMMITTEE ON GENERAL GOVERNMENT.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS COFFIN AND RAWSON WERE ABSENT FOR THE VOTE.)
*****
Senator Raggio inquired which veterinarian directs Veterinary Medical Services. Mr. Combs replied that David S. Thain, D.V.M., is the current Nevada State Veterinarian.
AGRI, Alfalfa Promotion Account – Budget Page AGRI-73 (Volume 1)
Budget Account 101-4543
Mr. Combs stated technical adjustments were made to ensure the grant authority for promotion activities was accurate. He noted the other budget closing issues were related to the approval of the Governor’s recommended transfer of this account to the Garlic and Onion Research and Promotion account.
SENATOR O’DONNELL MOVED TO CLOSE BUDGET ACCOUNT 101-4543 AS RECOMMENDED BY THE JOINT SUBCOMMITTEE ON GENERAL GOVERNMENT.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS COFFIN AND RAWSON WERE ABSENT FOR THE VOTE.)
*****
AGRI, Noxious Weed & Insect Control – Budget Page AGRI-77 (Volume 1)
Budget Account 101-4552
Mr. Combs stated the only decision unit in this account was pertaining to the Governor’s recommended transfer to the Plant Industry account, which was denied by the subcommittee.
SENATOR O’DONNELL MOVED TO CLOSE BUDGET ACCOUNT 101-4552 AS RECOMMENDED BY THE JOINT SUBCOMMITTEE ON GENERAL GOVERNMENT.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS COFFIN AND RAWSON WERE ABSENT FOR THE VOTE.)
*****
AGRI, Predatory Animal & Rodent Control – Budget Page AGRI-80 (Volume 1)
Budget Account 101-4600
Mr. Combs stated the main issue in this budget account is the subcommittee recommended the issuance of a Letter of Intent regarding the costs of a contract with the federal government. He commented that during FY 2001 the Ely District Supervisor position was converted from a state position to a federal position. He explained the agency indicated the position requires biological knowledge and experience and recruiting on the federal level would provide a greater field of applicants with this specialized knowledge. He articulated the Letter of Intent was recommended to direct the agency to ensure that the costs of the contract never exceed the costs to hire a state position to perform the duties that are currently being performed by that federal employee, and that the information substantiating this be submitted by the department when it submits its budget request each biennium.
Senator Raggio clarified the state contracts with the federal government for this position. Mr. Combs responded affirmatively and commented the position currently costs the state less than it formerly did as a state position.
Senator Raggio questioned whether this agency is related to the predatory control program operated by the Division of Wildlife. Mr. Combs stated Mr. Beach, who was testifying earlier during the meeting, is a federal employee that directs the predatory control program for the United States Department of Agriculture.
SENATOR O’DONNELL MOVED TO CLOSE BUDGET ACCOUNT 101-4600 AS RECOMMENDED BY THE JOINT SUBCOMMITTEE ON GENERAL GOVERNMENT.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS COFFIN AND RAWSON WERE ABSENT FOR THE VOTE.)
*****
AGRI, Apiary Inspection – Budget Page AGRI-64 (Volume 1)
Budget Account 101-4549
Mr. Combs stated no revenue authority was built into this account in The Executive Budget, but the account remains in existence to inspect apiaries to ensure they are free from diseases and robber bees. He explained the subcommittee included $500 in revenue authority for each year of the biennium to allow the agency to collect fees for the inspections performed. He noted the subcommittee approved the Governor’s recommended transfer of this account to the Plant Industry account.
SENATOR O’DONNELL MOVED TO CLOSE BUDGET ACCOUNT 101-4600 AS RECOMMENDED BY THE JOINT SUBCOMMITTEE ON GENERAL GOVERNMENT.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS COFFIN AND RAWSON WERE ABSENT FOR THE VOTE.)
*****
Minerals – Budget Page Minerals-1 (Volume 1)
Budget Account 101-4219
Mr. Combs stated the subcommittee approved the Governor’s recommendation for 2 seasonal interns and associated equipment and operating supplies, including a four-wheel drive truck, to be used during the summers to secure abandoned mines throughout the state. He noted the subcommittee also approved funding for the costs of moving the division’s Las Vegas office from the Bradley Building to non state-owned rental space.
SENATOR O’DONNELL MOVED TO CLOSE BUDGET ACCOUNT 101-4219 AS RECOMMENDED BY THE JOINT SUBCOMMITTEE ON GENERAL GOVERNMENT.
SENATOR JACOBSEN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR RAWSON WAS ABSENT FOR THE VOTE.)
*****
DETR Director’s Office – Budget Page DETR-1 (Volume 2)
Budget Account 101-3270
DETR Administrative Services – Budget Page DETR-6 (Volume 2)
Budget Account 101-3272
Jim Rodriguez, Program Analyst, Legislative Counsel Bureau, provided the Joint Subcommittee on General Government Closing Report: Department of Employment, Training and Rehabilitation (DETR) dated May 15, 2001 (Exhibit N.) He stated the subcommittee approved the Governor’s recommended merger of the Director’s Office and Administrative Services budget accounts into a single Administrative budget account 101-3272. He noted the only other adjustments to the two accounts are technical.
Mr. Rodriquez reported the technical adjustments recommended by the subcommittee included an adjustment to reflect revised personal computer prices provided by the State Purchasing Division and to record software cost to the proper general ledger. He added that these adjustments result in a reduction in recommended funding of $11,240 in FY 2002 and $20,315 in FY 2003.
E-710 – Replacement Equipment Page-DETR-8
E-916 – Transfer from B/A 4770 – Page DETR-8
Mr. Rodriguez indicated the subcommittee approved the Governor’s recommendation transferring an Employment Service Officer II position to this budget from the Employment Security Division (ESD) Administration budget account to support the department’s Workforce Investment Act (WIA) activities. He clarified that, previously within the DETR ESD budget, this position was involved in WIA activities at the state implementation level. Further, he stated, the Employment Service Officer II position will also act as liaison between the Governor and the department in all WIA matters. He added that decision unit E-919 transfers E-710 equipment cost allocation dollars associated with the position from budget account 101-4770 ( DETR, Employment Security) to this budget.
E-930 – Transfer from B/A 3270 – Page-DETR-9
Mr. Rodriguez said The Executive Budget recommends the transfer of this budget account, in its entirety from budget account 101-3270 (DETR, Director’s Office) to budget account 101-3272 (DETR, Administrative Services). He pointed out this transfer is discussed in the closing of the Director’s Office budget.
SENATOR O’DONNELL MOVED TO CLOSE BUDGET ACCOUNTS 101-3270 AND 101-3272 AS RECOMMENDED BY THE JOINT SUBCOMMITTEE ON GENERAL GOVERNMENT.
SENATOR NEAL SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR RAWSON WAS ABSENT FOR THE VOTE.)
*****
DETR, Information Development and Processing –Budget Page DETR-11 (Volume 2)
Budget Account 101-3274
Mr. Rodriguez read verbatim from page 1 of the Joint Subcommittee on General Government Closing Report: Department of Employment, Training and Rehabilitation dated May 15, 2001 (Exhibit N). He reported that, in closing the budget of the Information Development and Processing Division, the subcommittee approved the recommendation to transfer to this budget account a Computer Network Technician position from the department’s One-stop Centers budget, which terminates at the end of this current biennium when federal funding for the project expires. He indicated the position transferred to this budget will continue to provide ongoing technical computer assistance to all the one-stop centers. He added that staff has made standard PC cost adjustments in this budget as well.
SENATOR O’DONNELL MOVED TO CLOSE BUDGET ACCOUNT 101-3274 AS RECOMMENDED BY THE JOINT SUBCOMMITTEE ON GENERAL GOVERNMENT.
SENATOR NEAL SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR RAWSON WAS ABSENT FOR THE VOTE.)
*****
DETR, Employment Security – Budget Page DETR-24 (Volume 2)
Budget Account 205-4770
Mr. Rodriguez stated the subcommittee closed the Employment Security budget account according to the Governor’s recommendation with staff technical adjustments. He articulated the subcommittee approved funding as recommended by the Governor of approximately $290,000 over the biennium for the department’s telephonic claims center and funding of $30,500 in each year for the ongoing maintenance of the new automated adjudication system. He noted the subcommittee also approved the Governor’s recommended transfer of the Technical Assistance and Monitoring budget account formerly known as the State Job Training Office into this budget account. He added the only adjustments are technical.
ASSEMBLY BILL 607: Makes various changes relating to unemployment compensation affecting Indian tribes to comply with federal law. (BDR 53‑1313)
Mr. Rodriguez pointed out A.B. 607 is not critical to the budget, but approval of the bill would increase the daily stipend for Board of Review members from $60 to $80 per day.
Senator Raggio questioned whether the passage of A.B. 607 would affect the budget. Mr. Rodriguez responded budget currently allows for this increase.
SENATOR MATHEWS MOVED TO CLOSE BUDGET ACCOUNT 205-4770 AS RECOMMENDED BY THE JOINT SUBCOMMITTEE ON GENERAL GOVERNMENT WITH STAFF ADJUSTMENTS.
SENATOR NEAL SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR RAWSON WAS ABSENT FOR THE VOTE.)
*****
DETR, Welfare to Work – Budget Page DETR-34 (Volume 2)
Budget Account 101-3226
Mr. Rodriguez read verbatim from page 5 of the Joint Subcommittee on General Government Closing Report: Department of Employment, Training and Rehabilitation dated May 15, 2001 (Exhibit N). He reported the subcommittee approved the transfer of the Welfare to Work budget to DETR from the Department of Human Resources as recommended by the Governor with technical adjustments. Mr. Rodriguez explained that Congress authorized states to expend currently approved federal funding, but did not provide additional funding for the programs beyond FY 2003. He cautioned that, unless additional federal funding is provided in the coming biennium, this budget will expire at the completion of FY 2003.
Senator Raggio asked whether this program will phase out at the end of FY 2002. Mr. Rodriguez replied it is currently programmed to phase out at the end of FY 2002, however, if there is funding left over it will carry over to FY 2003 unless additional federal funding is made available.
Mr. Rodriguez stated that, while no significant General Fund savings were identified in these accounts, the subcommittee’s recommendations provide additional resources to improve services for the department’s customers. He said this include funding to meet anticipated caseload increases, a new position to enhance services for blind students in Clark County, expansion of the department’s telephonic claim center, and the redevelopment and design of current service delivery process to improve the level of service provided to DETR clients.
SENATOR NEAL MOVED TO CLOSE BUDGET ACCOUNT 101-3226 AS RECOMMENDED BY THE JOINT SUBCOMMITTEE ON GENERAL GOVERNMENT.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR RAWSON WAS ABSENT FOR THE VOTE.)
*****
DETR, Career Enhancement Program – Budget Page DETR-38 (Volume 2)
Budget Account 205-4767
Mr. Rodriguez stated the Career Enhancement Program budget was closed by the subcommittee as recommended by the Governor including increased funding of $2.1 million over the biennium as recommended by the Governor for the purchase of additional training services, which was based on the department’s estimate they would experience 5 percent per year growth in demand for services as the result of an estimated increase in job growth between 2001-2003.
SENATOR O’DONNELL MOVED TO CLOSE BUDGET ACCOUNT 204-4767 AS RECOMMENDED BY THE JOINT SUBCOMMITTEE ON GENERAL GOVERNMENT.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR RAWSON WAS ABSENT FOR THE VOTE.)
*****
DETR, Employment Security – Special Fund – Budget Page DETR-44 (Volume 2)
Budget Account 235-4771
Mr. Rodriguez stated it was brought to the attention of the subcommittee this department is anticipating a $3.3 million shortfall assessment in federal funding. As the result of the anticipated shortfall, he explained the department proposes to fund a significant part of their operating expenses from this budget account, over the 2001-2003 biennium. He commented on the federal funding, “This is a one‑time event, next year they may get more or next year they may get less.”
Senator Raggio inquired about the source of funding for the Special Fund budget account. Mr. Rodriguez responded the funds are from penalties.
Mr. Rodriguez stated the subcommittee views this recommendation to use Special Funds as “a one-time stopgap measure to help the department deal with the shortfall.” He noted the subcommittee outlined major expenditures the funds may be used for by the Employment Security Division including: $1 million for salary increases, $686,000 to develop and implement the automated adjudication process, which is part of a pilot program being sponsored by the Social Security Administration, $2.1 million to complete phase 2 of the Unemployment Insurance Tax System. He noted that they completed phase 1 in July 1999.
Mr. Rodriguez stated another approved expenditure is $2 million to partially fund the department’s new administration building in Las Vegas. He said the subcommittee expressed its concern over the level of expenditures proposed by the department for this account. He explained the reserve level would go from $7.1 million to slightly over $2 million at the end of the biennium. He pointed out that the subcommittee received testimony from the department they believe this is not an area of concern, and the Fund balance may be greater than projected because of cost saving initiatives currently in place and to be implemented over the biennium.
SENATOR O’DONNELL MOVED TO CLOSE BUDGET ACCOUNT 235-4771 AS RECOMMENDED BY THE JOINT SUBCOMMITTEE ON GENERAL GOVERNMENT.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR RAWSON WAS ABSENT FOR THE VOTE.)
*****
DETR, Blind Business Enterprise Program – Budget Page DETR-90 (Volume 2)
Budget Account 101-3253
Mr. Rodriguez stated this committee previously closed this budget.
DETR, Rehabilitation Administration – Budget Page DETR-53 (Volume 2)
Budget Account 101-3268
DETR, Disability Adjudication – Budget Page DETR-58 (Volume 2)
Budget Account 101-3269
DETR, Equal Rights Commission – Budget Page DETR-95 (Volume 2)
Budget Account 101-2580
Mr. Rodriguez stated all three of these budget accounts were closed by the subcommittee as the Governor recommended with only technical adjustments.
SENATOR O’DONNELL MOVED TO CLOSE BUDGET ACCOUNTS 101-3268, 101-3269, AND 101-2580 AS RECOMMENDED BY THE JOINT SUBCOMMITTEE ON GENERAL GOVERNMENT.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR RAWSON WAS ABSENT FOR THE VOTE.)
*****
DETR, Vocational Rehabilitation – Budget Page DETR-64 (Volume 2)
Budget Account 101-3265
DETR, Vocational Assessment Centers – Budget Page DETR-73 (Volume 2)
Budget Account 101-3264
DETR, Services to the Blind & Visually Impaired –Budget Page DETR-83 (Volume 2)
Budget Account 101-3254
Mr. Rodriguez stated the subcommittee closed both budget accounts 101-3265 and 101-3254 as recommended by the Governor with technical adjustments. He stated funding was recommended to account for a projected increase in federal funding of approximately $2.9 million or 6.11 percent per year over the biennium. He articulated the subcommittee also approved recommendations to move the Vocational Assessment Centers account back into the Vocational Rehabilitation budget, which was separated during the last session. He explained the separation occurred under the belief that Vocational Assessment Centers would be self‑sustaining, which has not been the case.
Mr. Rodriguez commented that during the subcommittee’s consideration of additional funding for budget accounts 101-3265 and 101-3264, the subcommittee expressed concern regarding the bureau’s inability to use the existing level of funding or the increased funding anticipated. He said the anticipated additional federal funding would require the state to commit matching General Funds equivalent to 21.7 percent of the total program expenditures or approximately $790,000 over the biennium. He pointed out the department assured the subcommittee that the bureau would “take aggressive action to improve its service delivery process and procedures to ensure maximum utilization of the available funding and increased services provided to its clients.”
E-325 Improve Pupil Achievement – Page DETR-87
Mr. Rodriguez stated the subcommittee recommends funding for a Rehabilitation Coordinator II position, which was requested by the Governor to establish a pilot program within the Bureau of Services to the Blind and Visually Impaired to provide early intervention and training services to school aged children in Clark County School District. He commented this program would be funded solely through the department’s gift fund.
Mr. Rodriguez pointed out the subcommittee recommended a Letter of Intent be issued to direct the department to follow the recommendation of the Legislative Committee for the Fundamental Review of the Base Budgets of State Agencies, which requested that the department analyze the possibility of merging the two bureaus, Vocational Rehabilitation and Bureau of Services to the Blind and Visually Impaired, together to achieve cost savings and some management efficiencies.
SENATOR O’DONNELL MOVED TO CLOSE BUDGET ACCOUNTS 101-3265, 101-3264, AND 101-3254 AS RECOMMENDED BY THE JOINT SUBCOMMITTEE ON GENERAL GOVERNMENT INCLUDING STAFF ADJUSTMENTS AND THE LETTER OF INTENT.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR RAWSON WAS ABSENT FOR THE VOTE.)
*****
HR-DIR, COMMUNITY BASED SERVICES – Budget Page HR ADMIN-40 (Volume 2)
Budget Account 101-3266
HR-DIR, DEVELOPMENTAL DISABILITIES – Budget Page HR ADMIN-48 (Volume 2)
Budget Account 101-3154
Mr. Rodriguez stated the subcommittee approved both of these budgets as recommended by the Governor with technical adjustments. He noted there was significant debate as to the federal acceptability of the plan to transfer these two budget accounts to the Department of Human Resources. Therefore, the department decided to defer the request to transfer these budget accounts, and the accounts will now remain in DETR, he added. He commented that numerous technical adjustments were necessary to maintain the two budget accounts in the present department.
E-450 Reward Self-Sufficiency – Page HR ADMIN-45
Mr. Rodriguez explained the Governor proposed to increase the rate of reimbursement for Personal Service Attendants (PSA) by 3 percent. He explained there was considerable debate during the subcommittee hearing whether the 3 percent increase would be sufficient. He commented the subcommittee was notified that Medicaid had just raised its reimbursement rate to $17 per hour, but the Governor’s recommended increase would provide a rate of $15.49 per hour. He noted the subcommittee heard a request to equalize the rate with the Medicaid rate. He commented the Senate members of the subcommittee approved the $17 per hour rate, but the Assembly members of the subcommittee voted to close the budget as the Governor recommended.
Senator Raggio indicated he would accept a motion to close the budget with the increased reimbursement rate of $17 per hour.
SENATOR O’DONNELL MOVED TO CLOSE BUDGET ACCOUNTS 101-3266 101-3154 AS RECOMMENDED BY THE SENATE MEMBERS OF THE JOINT SUBCOMMITTEE ON GENERAL GOVERNMENT.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Mr. Rodriguez summarized the actions. He said no significant General Fund savings were identified in these budget accounts, but the subcommittee recommendations would provide additional resources to improve the department’s customers including funding to meet anticipated caseload increases, a new position to enhance services to the students in the Clark County School District who are visually impaired, expansion of the telephonic claim center, and the redesign of the service delivery process to improve the level of service provided to the department’s clients.
The meeting was adjourned at 10:54 a.m.
RESPECTFULLY SUBMITTED:
Jennifer Ruedy
Committee Secretary
APPROVED BY:
Senator William J. Raggio, Chairman
DATE: