MINUTES OF THE
SENATE Committee on Finance
Seventy-First Session
May 16, 2001
The Senate Committee on Financewas called to order by Chairman William J. Raggio at 9:15 a.m., on Wednesday, May 16, 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
COMMITTEE MEMBERS ABSENT:
Senator William R. O’Donnell (Excused)
Senator Bernice Mathews (Excused)
STAFF MEMBERS PRESENT:
Gary L. Ghiggeri, Senate Fiscal Analyst
Bob Guernsey, Principal Deputy Fiscal Analyst
Steven J. Abba, Principal Deputy Fiscal Analyst
Larry L. Peri, Senior Program Analyst
Mindy Braun, Education Program Analyst
Brian M. Burke, Senior Program Analyst
Michael J. Chapman, Program Analyst
Bob Williston, Committee Secretary
OTHERS PRESENT:
Don Hataway, Deputy Director, Budget Division, Department of Administration
BILL DRAFT REQUEST 18-1545: Transfers the office for hospital patients from the department of business and industry to the office of the governor. (later introduced as Senate Bill 573.)
Senator Raggio explained that this bill is required to effectuate the transfer of the Office for Hospital Patients from the Department of Business and Industry to the Office of the Governor. He stated that it is consistent with the committee’s closing activity.
SENATOR RAWSON MOVED TO INTRODUCE BILL DRAFT REQUEST 18‑1545.
SENATOR JACOBSEN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS MATHEWS AND O’DONNELL WERE ABSENT FOR THE VOTE.)
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Senator Jacobsen stated that he needs authorization to introduce a resolution on the Snowshoe Thompson Memorial being built in Genoa. He said the resolution has already been drawn and all he needs is the committee’s approval for introduction.
SENATOR NEAL MOVED TO AUTHORIZE THE INTRODUCTION OF A RESOLUTION ON THE SNOWSHOE THOMPSON MEMORIAL.
SENATOR JACOBSEN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS MATHEWS AND O’DONNELL WERE ABSENT FOR THE VOTE.)
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BUDGET CLOSINGS – HUMAN RESOURCES
HR, Welfare Administration – Budget Page WELFARE-1 (Volume 2)
Budget Account 101-3228
M-581 Welfare Automated Systems – Page WELFARE-5
Steven J. Abba, Principal Deputy Fiscal Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, stated that the subcommittee’s first major action involved decision unit M-581. He read the summary of this decision from page 8 of the Subcommittee on Human Resources/K-12 Closing Report, Welfare Division, May 15, 2001 (Exhibit C.) He stated the subcommittee approved funding for Nevada Operations Multi Automated Data Systems (NOMADS) as recommended in The Executive Budget with technical adjustments. He explained that technical adjustments were made to eliminate the development costs of the Voice Response Unit (VRU) that was implemented during the current fiscal year. He said the $225,000 for FY 2002 for the maintenance and operations of the On-line Automated Self-Sufficient Information System (OASIS) project was eliminated since the OASIS project will not come on line until FY 2003.
Senator Raggio asked whether the Welfare Division is now accepting of and committed to NOMADS. Mr. Abba replied that it is and that the subcommittee took testimony from both Clark County and Washoe County district attorneys. Both of the district attorney’s indicated they will “eat crow” because they never thought the system would come on line. He said they are very happy with the direction NOMADS is currently heading.
Senator Raggio asked whether this funding effort would bring NOMADS into the “modern era.” He pointed out that the committee had been told that it is an old system. Mr. Abba replied there would still be the “oldness” because it is built of a different technology. He explained the division would be refining the navigation to get to the various screens, and moving it to a server-based environment that will help. He stated that there is a lot more efficiency in terms of speed now, and that the system is now on a track that will allow it to be improved in the future.
Mr. Abba stated that there will be certain applications that will be taken off the mainframe during the current biennium. He said the division will be looking at taking more applications off and putting them on the server based environment in future biennia.
Mr. Abba also read the subcommittee’s decision on the OASIS project on page 7 of Exhibit C. He said the subcommittee approved the division’s request to re-start the OASIS project using the Temporary Assistance for Needy Families (TANF) High Performance Bonus funds. He said the subcommittee also approved issuing a Letter of Intent requesting the division report to the Interim Finance Committee (IFC) on a quarterly basis during the implementation process in order to monitor the progress of the project.
Senator Raggio asked how the OASIS system ties in with NOMADS. Mr. Abba explained that the employment and training has to tie into NOMADS because of the eligibility aspects of the individuals participating in employment and training programs.
M-584 Electronic Benefits Transfer – Page WELFARE-5
Senator Raggio asked whether the Electronics Benefits Transfer (EBT) system is required. Mr. Abba replied that it is, and stated that it has to be implemented by October 2002.
Mr. Abba summarized the subcommittee’s decision on Policy Issue #1 and Policy Issue #2 on pages 9 and 10 of Exhibit C. He stated that the subcommittee approved the resources to establish a central administrative unit to ensure the EBT system is implemented in a timely manner and operates efficiently. He said the subcommittee approved only three of the new positions recommended and eliminated the one new Management Analyst III position.
Senator Raggio asked how this system benefits the individual recipient. Mr. Abba explained that the benefit will be not so much for the individual recipient or the division. He pointed out that the recipient will have a magnetic card to be used similarly to when he goes to the grocery store and people use credit cards. He explained that it will automatically reconcile the accounts of the recipients. He stated that there will not need to be the paper transactions. He explained that the biggest benefit is to the federal government because they will not have to be involved in a lot of the paper processing.
Senator Coffin asked whether the system is set up so the vendor of goods to a person with an EBT card can easily bypass the technical problem of a card not working by inputting numbers that are implanted on the card. Mr. Abba replied that he does not know the answer to that question.
Mr. Abba stated that Citibank will be responsible for maintaining the system, which means also the units in each of the individual grocery stores.
Senator Coffin offered as an example a person who is in line at the grocery store and who has a number of people behind them in line, and a glitch occurs. He stated that he is curious what will happen when there is no backup to cover such a glitch. Mr. Abba stated that he would have to get some information on that possibility.
M-586 Disaggregated Data – Page WELFARE-6
Mr. Abba briefly summarized the M-586 Policy Issue on page 10 of Exhibit C. He stated that the subcommittee approved the new Management Analyst position for disaggregated reporting. He said the technical adjustments recommended reduce in‑state travel and operating costs because the Hearing Officer position that is to be eliminated was actually filled for a portion of the year. He added that computer hardware costs were reduced based on newer pricing information from the Purchasing Division.
SENATOR RAWSON MOVED TO CLOSE BUDGET 101-3228 AS RECOMMENDED BY THE JOINT SUBCOMMITTEE.
SENATOR NEAL SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS MATHEWS AND O’DONNELL WERE ABSENT FOR THE VOTE.)
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HR, Welfare Field Services – Budget Page WELFARE-12 (Volume 2)
Budget Account 101-3233
M-584 Electronic Benefits Transfer – Page WELFARE-5
Mr. Abba stated that the subcommittee approved designating an EBT coordinator for each of the division’s largest district offices based on the supporting justification supplied by the division. He said no technical adjustments were necessary because operational and outfitting costs were already built into the budget for the positions designated for elimination.
Mr. Abba said the subcommittee approved the new 20 eligibility workers needed for the elimination of the CHAP Assets Test and for expediting eligibility determinations for pregnant women and children. He said the subcommittee delayed the implementation date until July 1, 2002, for a savings of approximately $1.6 million over the upcoming biennium.
Mr. Abba stated that the subcommittee approved the five quality control positions recommended in The Executive Budget with an effective date of October 2001. He said the subcommittee also approved increasing the amount of vacancy savings in the budget to a level that recoups most of the additional costs in state funds for the new position’s salary and operational costs.
E-710 Replacement Equipment – Page WELFARE-7
E-720 New Equipment – Page WELFARE-8
Mr. Abba stated that the requests in E-710 and E-720 appear reasonable. The funding will provide for new and replacement office equipment and for the lease of eight additional vehicles from the State Motor Pool.
Mr. Abba said The Executive Budget recommended the classification of 24 existing front desk clerks. He said the subcommittee approved this proposal with the understanding that it does not create internal salary inequities because the division plans to assign more complex and higher-level responsibilities to the 24 positions. He indicated this is not a wholesale reclassification of clerical positions.
Senator Raggio asked what the two new initiatives are in this budget. Mr. Abba responded the two new initiatives include the elimination of the Child Health Assurance Program (CHAP) assets test and an initiative to expedite eligibility determination.
Senator Raggio asked what the present level is on the assets test. Mr. Abba replied that there is a $2,000 assets limit requirement. He pointed out that there are two eligibility requirements, income and assets. He explained that by eliminating the assets test the eligibility criteria will strictly focus on income. He stated the assets test covers such things as stocks, bonds, cars, and homes, and that pregnant women are likely not to apply for Medicaid if they are required to provide information regarding assets. However, he opined the elimination of that part of the test will encourage them to apply.
Mr. Abba pointed out that this is accompanied with an initiative to expedite eligibility. He said the division anticipates by using eligibility workers that are functioning as “hit teams,” they will be able to reduce the application period to 7 days for determining Medicaid eligibility of pregnant women and children. He said the idea is to get those eligible enabled on Medicaid as soon as possible.
Senator Raggio asked how long these initiatives will be delayed. Mr. Abba responded the subcommittee recommended a 1-year delay.
Senator Raggio asked whether this would result in a savings in the first year of the biennium, and Mr. Abba replied it would save the state approximately $6 million.
SENATOR RAWSON MOVED TO CLOSE BUDGET 101-3233 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR NEAL SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS MATHEWS AND O’DONNELL WERE ABSENT FOR THE VOTE.)
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HR, Welfare/TANF – Budget Page WELFARE-21 (Volume 2)
Budget Account 101-3230
Mr. Abba stated that the subcommittee recommends augmenting the TANF budget by approximately $8 million in Fiscal Year (FY) 2002 and by $4 million in FY 2003. He said the augmentation will account for the total amount of the annual TANF block grant award that is available to Nevada, in addition to supplemental TANF funding in FY 2002 that has previously been provided to Nevada, which has been designated a high population growth state.
Mr. Abba stated that the supplemental funding, which is approximately $4.7 million, will have to be reauthorized by Congress, which is currently debating the budget proposed by the President of the United States.
Senator Raggio asked if that funding has been assumed. Mr. Abba replied that it is assumed. He stated that he has had contact with the National Conference of State Legislatures (NCSL) staff in Washington D.C., who feel the funding is going to occur. He indicated, however, that it is not in the President’s budget, but also pointed out that there are a number of initiatives in the Senate and the House of Representatives to reestablish TANF funding for FY 2002 only.
Mr. Abba said the majority of the additional funds that were augmented will be placed in a TANF “rainy day” reserve. He stated the committee approved $2.4 million in FY 2002 and $2.6 million in FY 2003 to augment the cash assistance category. He said that was based on higher TANF caseload projections that were built into The Executive Budget.
Senator Raggio asked whether Mr. Hataway disagreed with that projection. Don Hataway, Deputy Director, Budget Division, Department of Administration, replied that he did not disagree with that projection.
Mr. Abba stated that the subcommittee approved the Governor’s recommendation to increase the TANF cash assistance grant from $348 per month to $535 per month for families with ill, incapacitated, or disabled members who cannot participate in work related activities. He stated that the increase recognizes the TANF recipients who are disabled, or care for a family member who is disabled, and has exceptional expenses. He pointed out that increase mirrors the increase that was provided to non-needy caretakers by the 1999 Legislature.
Senator Raggio asked whether that is the only area where there is an increase in the proposed TANF grant.
Mr. Abba replied that it is. He explained that the TANF grants for all other recipients will stay at the current levels, which is $348 for a family of 3 who do not have public housing, and $200 or $300 for a family of 3 that has public housing.
Mr. Abba read the subcommittee’s proposals on the Kinship Care Program on pages 32 and 33 of Exhibit C, which is designed to provide a non-needy relative caretaker with assistance in establishing guardianship of a relative child and provides for a higher monthly cash grant without going through the legal process in obtaining the child. The intent of the Kinship Care Program is to establish a permanent placement for the child.
Senator Raggio asked how much is set aside under Assembly Bill (A.B.) 15 (referred to in Exhibit C as A.B. 12) for TANF funding.
ASSEMBLY BILL 15: Requires establishment of program to provide supportive assistance to certain persons who obtain legal guardianship of certain children. (BDR 38-368)
Mr. Abba replied about $860,000 for FY 2002 and $2.3 million for FY 2003. He explained that the reason for the difference is there is a “ramp-up” aspect of the program.
Senator Raggio asked whether recipients had to be over age 62 and obtain legal guardianship. Mr. Abba replied that it correct.
Mr. Abba stated that the funding that is provided helps the family establish legal guardianship by paying for some of the fees and helping pay for some of the network activities for social programming.
E-351 Service at Level Closest to PEO – Page WELFARE-23
Mr. Abba described the new initiatives proposed to be funded with the TANF block grant funds, which are on page 33 and 34 of Exhibit C.
Mr. Abba said decision unit E-351 proposes that approximately $500,000 be appropriated for each fiscal year of the 2001-03 biennium to fund the Emergency Diversion Program, otherwise known as the Self-Sufficiency Grant and which was approved by the 1999 Legislature. He stated the subcommittee approved the funding for the Emergency Diversion Program, but delayed the funding until FY 2003 when the OASIS project is implemented.
E-450 Reward Self-Sufficiency – Page WELFARE-24
Mr. Abba stated decision unit E-450 proposes approximately $330,000 be appropriated for each year of the 2001-03 biennium to subsidize the employment of TANF recipients placed in clerical positions within the various divisions of the Department of Human Resources. He said the subcommittee determined the wage subsidy project has merit and approved the requested funding.
E-476 Effectiveness of Family Service – Page WELFARE-24
Mr. Abba stated decision unit E-476 proposes that $2 million be appropriated over the upcoming biennium for a new initiative to prevent and reduce out-of-wedlock births and to encourage the formation and maintenance of two-parent families. He said the subcommittee approved $1 million over the upcoming biennium to implement this initiative. He added the subcommittee determined the division’s proposals were worthwhile, but not fully developed. He explained the subcommittee reduced the request from $2 million to $1 million over the upcoming biennium and encouraged the division to document the results of the programs implemented to determine effectiveness. He said, depending on their effectiveness, enhanced funding could be supported in the next biennium.
E-479 Effectiveness of Family Service – Page WELFARE-25
Mr. Abba said decision unit E-479 recommends transferring TANF block grant funds in the amount of $3.9 million for each fiscal year of the 2001-03 biennium to various agencies within the Department of Human Resources to support programs or services that are eligible for TANF funding. He stated the subcommittee approved the use of TANF funds by other divisions within the department. He stated the closing adjustments to E-479 reduce the amount of TANF funds to be transferred. He said the reduction is based on a reconciliation provided by the division of the various budgets within the department that include TANF funding compared to the amount of funding transferred from the TANF budget. He explained that, based on this reconciliation, decision unit E-479 was overstated by $1,177,734 in FY 2002 and by $927,983 in FY 2003.
E-904 Transfer NEON From B/A 3267 – Page WELFARE-25
E-907 Transfer From B/A 3267 – Page WELFARE-25
Mr. Abba stated decision units E-904 and E-907 involve the transfer of the New Employees of Nevada (NEON) program. He said the subcommittee approved transferring the NEON program from the Employment and Training budget to the TANF budget as an organizational change designed to isolate all child-care related expenditures in one budget. He said the Employment and Training budget will be re-named the Child Care Assistance and Development budget.
SENATOR RAWSON MOVED TO CLOSE BUDGET 101-3230 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR NEAL SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS MATHEWS AND O’DONNELL WERE ABSENT FOR THE VOTE.)
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HR, Child Support Enforcement Program – Budget Page WELFARE-27 (Volume 2)
Budget Account 101-3238
Mr. Abba advised there is a new revenue source recommended by the Governor in this account entitled “cost recovery fees.” He recalled that the child enforcement budget has had funding difficulties in the current biennium and the division had to lay off approximately 45 individuals. He stated that the primary reason is that the TANF caseloads have been reduced so much that the state share of collections, which helps support this budget, have dropped dramatically. He said the cost recovery fees that have been included in this budget as a new revenue source will help maintain this budget at its current level.
Mr. Abba pointed out that there are three types of fees recommended in the budget, two of which can be implemented by regulation, and one that requires legislation. He stated that the two that can be implemented by regulation are fees that were established by the division for their efforts for pursuing arrearage child support money. He explained that they require a lot of effort on the part of the division as far as research. He stated that there would be a contract with the family that the division would get 5 or 10 percent of whatever is collected to pay for their efforts, and the family would get the rest. He said this would not impact the award level the family has been provided through the courts.
Mr. Abba said the other fee is a wage assignment fee, which requires legislation. He indicated that A.B. 69 was presented in the Assembly Committee on Ways and Means just recently.
ASSEMBLY BILL 69: Imposes fee each time employer withholds income for payment of support for child. (BDR 3-110)
Mr. Abba stated this legislation increases the wage assignment fee that is currently in statute from $3 to $5. He explained that the employers establish the assignment fee on the employee’s wage and currently collect a fee of up to $3 for their efforts. He explained that A.B. 69 would add $2 to that wage assignment, and the $2 fee would be split with the county of a 50-50 basis.
Senator Raggio asked whether the employer gets $3 and the state gets $2, to which Mr. Abba replied that is the correct amount.
Senator Raggio asked whether this fee produces much revenue. Mr. Abba replied that it is estimated in the budget at about $410,000 over the 2001-2003 biennium. Senator Raggio asked whether that is realistic, to which Mr. Abba replied that it is realistic.
Because only the state fees are shown in the child support budget, Mr. Abba said that it is anticipated the three fees will generate approximately $820,000. Senator Raggio asked whether the estimated $820,000 is likely to be accomplished. Mr. Abba replied that it is, according to current projections. However, he reiterated that this is dependent on the passage of A.B. 69.
Senator Raggio concluded that the main issue is to approve the funding through cost recovery fees, and one is by legislation and the other two is by regulation. Mr. Abba said that is correct.
Mr. Abba pointed out that the federal welfare reform that was enacted in 1996 requires that all child support payments be distributed through a central disbursement unit and be distributed within 48 hours of actual receipt of the child support check. He stated that there were problems after the initial implementation of this requirement, but according to testimony heard by the subcommittee, the process and the 48‑hour disbursement requirement is now working well.
Senator Raggio asked whether the $200,000 fee for the contract with Clark County for operation of the State Disbursement Unit is acceptable to the Clark County district attorney’s office. Mr. Abba replied that it is.
Mr. Abba explained that the state is going to slowly take over more of the operation of the State Disbursement Unit, because Clark County is taking over more of the operations dealing with TANF recipients and child support collection (public assistance cases), which constitutes a swap with the county.
SENATOR RAWSON MOVED TO CLOSE BUDGET 101-3238 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR NEAL SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS MATHEWS AND O’DONNELL WERE ABSENT FOR THE VOTE.)
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HR, Child Support Federal Reimbursement – Budget Page WELFARE-33 (Volume 2)
Budget Account 101-3239
Mr. Abba said the subcommittee recommended that the budget be closed as recommended by the Governor.
SENATOR RAWSON MOVED TO CLOSE BUDGET 101-3239 AS RECOMMENDED BY THE GOVERNOR.
SENATOR NEAL SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS MATHEWS AND NEAL WERE ABSENT FOR THE VOTE.)
* * * * *
HR, Assistance to Aged and Blind – Budget Page WELFARE-36 (Volume 2)
Budget Account 101-3232
Mr. Abba stated that only technical adjustments have been recommended for this budget. He said they are based on new caseload projections provided by the division.
Mr. Abba also said the subcommittee recommends a Letter of Intent be sent to the Welfare Division requesting the division report to the Interim Finance Committee (IFC) prior to implementing the annual federal Supplemental Security Income (SSI) cost of living increase. He pointed out that the SSI increase can be split between the personal needs allowance of the client and the payment rate to the adult group care operator. He stated that this continues a Letter of Intent that was approved by the 1999 Legislature.
SENATOR COFFIN MOVED TO CLOSE BUDGET 101-3232 AS RECOMMENDED BY THE JOINT SUBCOMMITTEE.
SENATOR JACOBSEN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS MATHEWS AND O’DONNELL WERE ABSENT FOR THE VOTE.)
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HR, Employment and Training – Budget Page WELFARE-38 (Volume 2)
Budget Account 101-3267
Senator Raggio asked whether the name has been changed on this budget. Mr. Abba replied that is correct. He stated that this budget will not look like the old Employment and Training budget. He stated this budget will house the child care funding that the state receives and will be renamed the Child Care Assistance and Development budget. He stated that the New Employees of Nevada (NEON) program, which is the division’s employment and training program, will be transferred to the TANF budget. As a result, there will be no employment and training related activities in this account. He reiterated that the account will also be renamed.
Senator Raggio asked why the NEON program is being transferred to the TANF budget.
Mr. Abba replied that there will be two transfers. He said the program aspect of NEON will be transferred to the TANF budget, and the employees will be transferred to the field services budget. He stated that in both cases the employees as well as the program aspects are all funded by TANF.
Mr. Abba read the policy issue proposal on pages 46 and 47 of Exhibit C. He stated that the subcommittee approved the division’s proposal, which will provide childcare funding for an additional 1,850 children per month for the upcoming biennium. He said the subcommittee also approved the request to establish a tiered reimbursement system for childcare providers who meet higher levels of quality and improvement grants for childcare providers who upgrade facilities to meet higher levels of accreditation.
Senator Raggio noted that this is a significant amount of new funding for this program. He asked whether that many more children will become eligible for this program. He also asked whether the recipients of these benefits are parents.
Mr. Abba replied that the money is distributed through two organizations, the Economic Opportunity Board (EOB) in the south and the Children’s Cabinet in the north. He stated that both entities are responsible for overseeing the childcare providers, licensing the providers, and ensuring they meet quality standards.
Senator Raggio asked who gets the money. Mr. Abba said the focus of the increased number of recipients will be in the “at risk” category of eligible individuals. Mr. Abba explained that these are low income families that are at risk of becoming TANF eligible.
Senator Raggio asked whether these individuals would have jobs. Mr. Abba stated that they have jobs, but the income level is low. He said the funding that will be directed toward those individuals will not in any way hurt the individuals that are TANF eligible, currently on the NEON program, or TANF eligible persons who have lost their eligibility because they are employed. He said the last group is Assistance with Childcare for the Employed (ACE) recipients.
Senator Raggio asked whether the providers will receive higher payments than they are presently getting. Mr. Abba replied the providers will receive higher payments under the tiered reimbursement method. He stated they are currently paid by age group, and the rate of pay is determined by the age group. He explained that if the provider shows he is paying workers a higher rate of pay, or if their workers have a higher accreditation standard, or improve their facilities to meet higher accreditation standards, a higher level of reimbursement will be issued.
Senator Raggio asked whether companies that provide childcare are eligible for this kind of a program. Mr. Abba stated that they could be eligible, depending on the eligibility of the employee.
SENATOR RAWSON MOVED TO CLOSE BUDGET 101-3267 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR NEAL SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS MATHEWS AND O’DONNELL WERE ABSENT FOR THE VOTE.)
* * * * *
HR, Energy Assistance – Welfare – Budget Page WELFARE-49 (Volume 2)
Budget Page 101-4862
Mr. Abba stated there are a few minor adjustments to this budget to reflect the available federal money that has been placed in reserve in the current fiscal year and to be brought forward into the upcoming biennium. He explained that this is additional money approved by the IFC at a recent meeting.
Senator Raggio asked what amounts are involved.
Mr. Abba said the amount currently in reserve is $2.2 million in FY 2001 that will be brought forward. He stated that half that amount will be used for energy assistance payments in FY 2002 and the other half will be brought forward into FY 2003 and used in that year for energy assistance.
SENATOR RAWSON MOVED TO CLOSE BUDGET 101-4862 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR NEAL SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS MATHEWS AND O’DONNELL WERE ABSENT FOR THE VOTE.)
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BUDGET CLOSINGS – HUMAN RESOURCES ADMINISTRATION
DHR Administration – Budget Page HR ADMIN-1 (Volume 2)
Budget Account 101-3150
Larry L. Peri, Senior Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, read Subcommittee Issue 1 on page 8 of the Subcommittee on Human Resources/K-12 Closing Report, Department of Human Resources, May 16, 2001 (Exhibit D).
Mr. Peri stated that the subcommittee approved adding $500,000 of MAXIMUS revenue and expenditure authority in each year of the 2002‑03 biennium for adolescent substance abuse treatment programs in the Bureau of Alcohol and Drug Abuse (BADA) budget. He said the subcommittee also agreed that any additional MAXIMUS funding realized would be directed towards services for a pilot program for seriously mentally ill and homeless adults in southern Nevada as enumerated in A.B. 346.
ASSEMBLY BILL 346: Provides for establishment of pilot program in southern Nevada for provision of program of intensive and integrated community services to adults who are seriously mentally ill and homeless. (BDR S-990)
Mr. Peri added the subcommittee recommended that a Letter of Intent be issued to the Department of Human Resources directing that no expenditures may be made until the MAXIMUS revenue is earned and materializes, in which case the funding can be used in both years of the biennium.
Senator Raggio asked how realistic this recommendation is with respect to MAXIMUS funding. Mr. Peri stated in the current year there was revenue collection authority of $2.5 million, but that amount has not been reached. Senator Raggio expressed his concern about that. Mr. Peri explained that is the reason for the safeguard of a Letter of Intent because the revenue may or may not materialize.
Senator Raggio requested the status of A.B. 346, to which Mr. Peri replied that he did not know the status.
Senator Rawson stated the consultant reported on A.B. 346. The consultant indicated he had been informed that Utah has an average 1-year institutionalization of children, which is greater than the 36-month average in Nevada. He concluded it is likely MAXIMUS will save money for the state.
Senator Raggio asked whether A.B. 346 is contingent on MAXIMUS obtaining the funding. Mr. Peri replied that it is not. He explained the bill contains an appropriation of $1 million each year, and the funding under discussion is an alternate funding source in the event the bill is not successful.
Senator Raggio asked why the subcommittee did not approve the Administrative Services Officer IV position being reclassified to an unclassified Deputy Director. Mr. Peri replied that the director’s office has an existing deputy director and the subcommittee did not feel the argument was compelling enough to create an additional deputy at an unclassified level.
SENATOR RAWSON MOVED TO CLOSE BUDGET 101-3150 ACCORDING TO THE SUBCOMMITTEE RECOMMENDATIONS.
SENATOR NEAL SECONDED THE MOTION.
Mr. Hataway stated there are several problems with the subcommittee closing in a number of the budgets, including the additional staff requested that was recommended by the subcommittee to not be included. He said it would remain to be seen whether all eight positions requested would be approved.
Senator Raggio asked what the reason was for not approving the positions that were requested.
Mr. Peri stated that the subcommittee requested a priority list of the new positions requested. He pointed out the reason is included in the last paragraph on page 8 of Exhibit D. Additionally, he indicated that no response had been received from the Governor’s office.
Senator Raggio explained the failure to submit a priority list of positions requested was a problem, and that, if an additional request with a reappraisal of that need is to be made, it should be done soon. Mr. Hataway agreed.
THE MOTION CARRIED. (SENATORS MATHEWS AND O’DONNELL WERE ABSENT FOR THE VOTE.)
* * * * *
Healthy Nevada Fund – Budget Page HR ADMIN-9 (Volume 2)
Budget Account 262-3261
Mr. Peri read the subcommittee issues summarized on page 10 of Exhibit D.
E-250 Eliminate Duplicate Effort – Page HR ADMIN-11
Mr. Peri asked whether the subcommittee wished to approve the transfer of the programs for the reduction of tobacco use and for health improvements for children and the disabled to the newly recommended Grants Management Unit budget. He stated the recommended adjustments eliminate the E-250 decision unit. He explained that during budget closings on April 19, 2001, the subcommittee did not approve the Grants Management Unit. He said the recommended adjustments comply with that action and restore programs for the reduction of tobacco use and for health improvements for children and the disabled to this budget account.
Mr. Peri said the subcommittee approved the payment of 25 percent of the Management Assistant III position in the Director’s Office from this budget. He said this adjustment is made in the base budget.
Senator Raggio asked whether the Grants Management Unit E-250 was not approved in its entirety. Mr. Peri replied that was correct. He explained those programs, which were put in place as the result of grants to reduce tobacco use, should improve the health of children and disabled persons.
Senator Raggio asked whether the eight positions that were denied would be retained in separate budgets. Mr. Peri said that is correct. He stated the proposal suggested that eight different budget accounts and programs be consolidated into the new Grants Management Unit. He pointed out that was not approved, so throughout the closing sheets the committee will see the restoration of those programs as they currently are.
Senator Raggio asked what the reason was for the recommendation for the Grants Management Unit. Mr. Hataway replied it was to streamline the allocation of grants in a comprehensive manner. He stated his department believes the concept is valid. He concluded that more work must be done to convince the subcommittee of the rationale for the proposal.
SENATOR RAWSON MOVED TO CLOSE BUDGET 262-3261 ACCORDING TO THE SUBCOMMITTEE RECOMMENDATIONS.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS MATHEWS, NEAL, AND O’DONNELL WERE ABSENT FOR THE VOTE.)
* * * * *
HR, Purchase of Social Services – Budget Page HR ADMIN-13
Budget Account 101-3237
Mr. Peri read the technical adjustments on page 12 of Exhibit D. He said the subcommittee approved each of the recommended technical adjustments in this budget. Those technical adjustments consisted of properly aligning the funding source of 20 percent of the costs of the Social Welfare Program Specialist III position in the budget; abolishing this budget’s decision unit E-250, which would have provided for transfer of this budget to the Grants Management Unit budget account 101-3195; and, increasing the administrative cost transfer to the State and Community Collaborations budget account 101-3276.
Mr. Peri stated the subcommittee approved the recommendation to increase Title XX funding support in the Homemaker Programs budget by $49,966 in FY 2002 and by $60,063 in FY 2003, eliminate the General Fund support of $14,633 each year, and apply the balance to direct services. He said the subcommittee also approved increasing the Title XX in the Southern Nevada Adult Mental Health Services (SNAMHS) budget to equal the transfers out of the Title XX budget, which reduces the General Fund in that budget by $33,606 in each year of the biennium.
E-350 Service at Level Closest to People – Page HR ADMIN-16
Mr. Peri stated the subcommittee approved increasing Title XX revenue authority to the actual FY 2001 grant award of $11,086,782 in each year of the biennium. He said the subcommittee also approved an increase of Title XX support for non-state agencies of $1,131,515 in FY 2002 and $1,131,603 in FY 2003. He said the remaining $1 million of Title XX in each year is to be distributed among various state agencies.
Senator Raggio asked what would be an example of a non-state agency that might receive grants in this budget. Mr. Peri replied they are non-profit agencies located throughout the state that have received Title XX money for quite a few years, and that provide social services. He stated he could provide a list of the agencies if necessary.
Mr. Peri referred to decision units reflected in the expenditures table on page 11 of Exhibit D. He pointed out that each of the adjustments shown increased Title XX.
Senator Raggio asked whether the increase indicated from Title XX revenue is realistic. Mr. Peri responded there have been several debates on that question, but the adjusted award amount is the amount of this fiscal year’s allocation. He said it is hoped the increase will remain constant over the next 2 years. He stated there are varying opinions as to whether the increase will continue, but the amount stated is the current award.
SENATOR RAWSON MOVED TO CLOSE BUDGET 101-3237 ACCORDING TO THE SUBCOMMITTEE RECOMMENDATIONS.
SENATOR JACOBSEN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS MATHEWS, NEAL, AND O’DONNELL WERE ABSENT FOR THE VOTE.)
* * * * *
HR, Community SVCS Block Grant – Budget Page HR ADMIN-18 (Volume 2)
Budget Account 101-4864
Mr. Peri read the technical adjustments on page 13 of Exhibit D. He stated that the subcommittee approved each of the recommended technical adjustments in the budget. Those technical adjustments included abolishing decision unit E-250, providing for its transfer to the Grants Management Unit budget account 101‑3195, and increasing the administrative cost transfer to the State and Community Collaborations budget account 101-3276.
SENATOR RAWSON MOVED TO CLOSE BUDGET 101-4864 ACCORDING TO THE SUBCOMMITTEE’S RECOMMENDATIONS.
SENATOR JACOBSEN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS MATHEWS, NEAL, AND O’DONNELL WERE ABSENT FOR THE VOTE.)
* * * * *
HR, Family to Family Connection – Budget Page HR ADMIN-22 (Volume 2)
Budget Account 101-3278
Mr. Peri stated the subcommittee approved each of the recommended technical adjustments. He read Subcommittee Issues Item 1 on page 15 of Exhibit D. He indicated the grant category is currently funded at $2,019,523 in FY 2002 and $2,029,941 in FY 2003. Funding the program at this level, he said, would result in the subcommittee being required to add General Fund support of $712,797 in FY 2002 and $673,899 in FY 2003.
Mr. Peri reported the subcommittee approved holding total General Fund support for the accounts in the director’s office at the level recommended by the Governor for the 2001-2003 biennium. He said the subcommittee also encouraged the department to develop procedures to assist local Infant Support Districts (ISD) and Family Resource Centers in designing and implementing sliding-fee scales and to pursue TANF and Child Care Development funds directly from the Welfare Division.
Senator Raggio indicated the committee has concerns about holding the General Fund support for the director’s office at the recommended levels. He noted the Governor recommended approximately $627,000 in each year of the Grants Management Unit.
Mr. Peri said the present budget recommendation of approximately $2.2 million for grants really makes the program available to any parents statewide, regardless of income. He stated the other approach proposed that only a certain percentage of the “at risk” population be served. He explained the Governor’s proposed to reduce the budget from $2.2 million down to approximately $600,000 in each year of the biennium, which results in savings of approximately $1.6 million per year.
Senator Raggio asked whether the savings had been put back into the budget. Mr. Peri replied in the affirmative.
Mr. Peri stated the Governor obligated $1.6 million savings to other budget areas, but the subcommittee suggested a number of other options. He explained that, if the Governor wanted to restore the grants to $2.2 million per year the state would have had to come up with an additional $1.4 million in General Fund support. He stated that the subcommittee chose not to do so, but rather to take the total General Fund support for accounts in the director’s office and hold them at the same total amount recommended by the Governor for the biennium. Mr. Peri explained that undoing the Grants Management Unit will result in the Family to Family Connection program being restored by $1.3 million in each year of the biennium.
Mr. Peri reiterated the subcommittee did not increase General Fund support for the director’s office. He added that the subcommittee also determined the grant requests from the existing Infant Support Districts for the coming biennium amount to approximately $1.3 million.
Senator Raggio commented this action must have affected other budgets. Mr. Peri replied the recommended funding was contained in the Grants Management Unit. He explained there was a substantial amount of General Fund revenue placed in this budget account, which has been reallocated.
Senator Raggio asked what suffered as a result of this increase recommended by the Governor. Senator Rawson stated it was his sense that this keeps more programs and services alive.
Senator Raggio asked what other programs were involved. Senator Rawson responded the restoration of funding keeps programs alive “generally speaking,” and pointed out the Grants Management Unit took resources away from a number of areas. He stated the subcommittee felt that there is a significant advantage in having grant writers and grant management, but the plan to accomplish this was not currently sufficiently developed. He said part of the concern expressed by all of the different agencies was this would have a negative effect. He stated he did not want to get those agencies in trouble with the budget office or the Governor, but there was a lot of undercurrent indicating a central Grants Management Unit would be destructive and the proposal was not put together appropriately. He said the subcommittee felt there would be time to structure this budget account in the future.
Senator Rawson said about $100,000 in savings would be realized in all the budget accounts by restoring this funding, and a lot of services and grants were restored. He said the subcommittee felt very strongly about this recommendation. He said he believes that if the committee tried to undo the subcommittee’s recommendations, it would be one of the “sticking points” of this legislative session.
Mr. Hataway stated that, regarding both the Grants Management Unit and the Family to Family Program, the Governor’s recommendation was rooted in the fundamental review process. He stated many state grant and contract programs were reviewed with local and non-profit organizations, and it was concluded that “the right hand does not know what the left hand is doing.” He stated there is multiplicity of grants to individual agencies, and the agencies do not know what other agencies are doing.
Mr. Hataway said for the first time the Budget Division is requiring the agencies to track all of the grants and contracts they have with local governments and non‑profit organizations, and the picture will probably become clearer as information is gathered.
Mr. Hataway explained that, in terms of getting additional grants, it was opined the recommendations were a foundation on which to lay the baseline for improvements in obtaining revenue for the state and local governments. He stated with the Family to Family program it is a philosophical point that the state cannot serve everyone, and revenue has to be placed in the most critical areas for “at risk” populations.
Mr. Hataway felt his division had put together a “good package,” which is long‑term in nature. He clarified benefits would be produced over a long-term period, similar to the child welfare transfer to local governments. He concluded the plan needed to go “back to the drawing board” and that a new proposal would be needed.
SENATOR COFFIN MOVED TO CLOSE BUDGET 101-3278 ACCORDING TO THE SUBCOMMITTEE’S RECOMMENDATIONS.
SENATOR RAWSON SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS MATHEWS AND O’DONNELL WERE ABSENT FOR THE VOTE.)
* * * * *
HR, Family Resource Centers – Budget Page HR ADMIN-27 (Volume 2)
Budget Account 101-3294
Mr. Peri read the technical adjustments on page 23 of Exhibit D. He stated that the subcommittee approved each of the recommended technical adjustments. The technical adjustments included eliminating decision unit E-250 transfers to the Grant Management Unit budget account 101-3195 and increasing the administrative costs transfers to the State and Community Collaborations budget account 101-3276.
Senator Raggio asked whether this budget was the same except for some reduction in the cost allocation. Mr. Peri said that was correct.
Senator Raggio asked whether the staff recommended a Letter of Intent be issued that would require an annual report to the IFC on program expenditures. Mr. Peri replied that was correct.
SENATOR RAWSON MOVED TO CLOSE BUDGET 101-3294 ACCORDING TO THE RECOMMENDATIONS OF THE JOINT SUBCOMMITTEE, AND ADDING THE LETTER OF INTEND SUGGESTED BY THE STAFF.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS MATHEWS AND O’DONNELL WERE ABSENT FOR THE VOTE.)
* * * * *
HR, Grants Management Unit – Budget Page HR ADMIN-31 (Volume 2)
Budget Account 101-3195
Mr. Peri stated that the closing actions on page 25 of Exhibit D totally eliminates this budget.
SENATOR RAWSON MOVED TO CLOSE BUDGET 101-3195 ACCORDING TO THE SUBCOMMITTEE RECOMMENDATION.
SENATOR JACOBSEN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS MATHEWS AND O’DONNELL WERE ABSENT FOR THE VOTE.)
* * * * *
HR, State and Community Collaborations – Budget Page HD ADMIN-35 (Volume 2)
Budget Account 101-3276
Mr. Peri read the technical adjustments on page 27 of Exhibit D. He stated that the subcommittee approved each of the recommended technical adjustments, including restoration and continuance of the federal Head Start grant; deleting decision unit E‑250 Grants Management Unit; and adjustments of $2,042 in FY 2002 and $5,200 in FY 2003 to properly reflect the cost allocation for the administrative and accounting support provided by positions in this budget to Title XX, Community Services Block Grant, Family Resource Centers and Family to Family Connection Program budget accounts.
Senator Raggio asked whether the cost allocation for the administrative and accounting support is a partnership in different programs with the state and the local communities. Mr. Peri explained that most entities recognize this program as the Chapter 1 Special Education budget account. He stated there would be no General Fund appropriation to this budget, and added that it is funded 100 percent by the federal Individuals with Disabilities Education Act (IDEA) grant, which provides a variety of services to developmentally disabled or delayed young children.
SENATOR RAWSON MOVED TO CLOSE BUDGET 101-3276 ACCORDING TO THE SUBCOMMITTEE’S RECOMMENDATIONS.
SENATOR JACOBSEN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS MATHEWS AND O’DONNELL WERE ABSENT FOR THE VOTE.)
* * * * *
HR, Public Defender – Budget Page PUB DEF-1 (Volume 2)
Budget Account 101-1499
Mr. Peri stated that the recommendations included on page 29 of Exhibit D involve revised computer prices for computer training in database and spreadsheet programs. Additionally, Mr. Peri indicated a total of $31,842 over the biennium was recommended for replacement equipment for an automated management information system. Cost savings, he indicated, would include the reduction of three personal computers and workstation installation charges, and reduction of three printers and revised prices for computers.
Senator Raggio stated there was an indication at one point that counties included in this budget account might opt out of the program. He asked whether that is reflected in this budget. Mindy Braun, Education Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, indicated that is not part of this budget account.
SENATOR RAWSON MOVED TO CLOSE BUDGET 101-1499 WITH TECHNICAL ADJUSTMENTS RECOMMENDED BY THE STAFF.
SENATOR JACOBSEN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS MATHEWS AND O’DONNELL WERE ABSENT FOR THE VOTE.)
* * * * *
Indian Affairs Commission – Budget Page INDIAN-1 (Volume 2)
Budget Account 101-2600
SENATOR RAWSON MOVED TO CLOSE BUDGET 101-2600 AS RECOMMENDED BY THE GOVERNOR.
SENATOR JACOBSEN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS MATHEWS AND O’DONNELL WERE ABSENT FOR THE VOTE.)
* * * * *
BUDGET CLOSINGS – DIVISION OF MENTAL HEALTH AND DEVELOPMENTAL SERVICES
Bob Guernsey, Principal Deputy Fiscal Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, read from pages 1 and 2 of the Subcommittee on Human Resources/K‑12 Closing Report dated May 16, 2001 (Exhibit E). He stated the subcommittee endorsed the program growth for the mentally ill, along with the caseload growth in the three regional development services budgets.
Regarding the Nevada Mental Health Institute (budget account 101-3162), Mr. Guernsey indicated the subcommittee authorized the movement of 7.67 FTE positions to the Psychiatric Emergency Services (PES) unit to allow that program to operate 7 days a week, 24‑hours a day, which is similar to the PES program operating in southern Nevada. He said the subcommittee authorized funding of $507,600 in FY 2002 and $676,800 in FY 2003 to move 12 chronically mentally ill clients from the inpatient hospital to intensive supported living arrangements in the community.
Mr. Guernsey said the subcommittee authorized the addition of 3 new Revenue Officer positions to improve collection and accounts receivable procedures in the three regional mental health agencies (Nevada Mental Health Institute, Rural Clinic and Southern Nevada Adult Mental Health Services).
Mr. Guernsey said the subcommittee recommended that full funding should be provided to Lakes Crossing Facility for the Mental Offender (budget account 101‑3645) for 48-inpatient beds, and revenue adjustments be made to cover the costs of providing services to the local jail facility.
Regarding the Southern Nevada Adult Mental Health Service (budget account 101‑3161), Senator Raggio asked whether the performance will be affected by a change in the flow of funding to Mojave Mental Health Services. Mr. Guernsey replied the change is nothing more than an accounting mechanism. He stated Medicaid payments to Mojave have grown significantly, and they estimate having almost $5.3 million in FY 2002 and $5.4 million in the final fiscal year for statewide Human Resources programs. He pointed out, with the state not getting credit at that estimated level of growth, the subcommittee felt strongly that issue needed to be addressed.
Regarding the Rural Clinics (budget account 101-3681), Mr. Guernsey pointed out the budget recommending 13.25 full-time employee positions to deal with caseload growth in rural Nevada was closed by the Assembly Committee on Ways and Means. He added the committee had received testimony in reference to an Assembly bill there was a potential interlocal agreement between the Department of Human Resources and Carson City. He stated the bill included a budget that would move approximately 2 positions from Child and Family Services and 1.75 of the recommended new positions for rural clinics to fund this interlocal agreement with Carson City. He stated the Assembly Committee on Ways and Means felt strongly this was not proper and recommended issuing a Letter of Intent to the director indicating those positions be filled and funding not be reallocated for those positions to fund another program.
Senator Raggio asked whether this was in reference to the 13 positions indicated, and why it would not be part of the rural program. Mr. Guernsey explained this would be a new program separate from the caseload growth.
Senator Raggio asked where the proposal originated, to which Mr. Guernsey replied it was a proposal instigated in response to a bill the Assembly Committee on Ways and Means heard earlier.
Senator Raggio asked whether the subcommittee recommended these positions, but not the additional position. Mr. Guernsey replied that was correct, adding that the Senate subcommittee had not heard anything about this additional proposal, but the Assembly Committee on Ways and Means became aware of it this week and they recommended an additional Letter of Intent be issued to the director of the department signifying these positions should be filled and funding should not be allocated for any other purpose.
Mr. Guernsey said the subcommittee recommended a Letter of Intent be issued to the division to return to the IFC if the division is unable to generate additional revenue or vacancy savings added to this budget.
Regarding the three developmental services budgets, Mr. Guernsey stated the subcommittee supports the proposed caseload growth and a rate increase for the provider of services and the community training services to assist a proposed 654 additional clients.
Mr. Guernsey pointed out that the combined actions by the subcommittee resulted in a General Fund savings of $648,188 in FY 2002 and $184,315 in FY 2003. He added that General Fund savings would increase by an additional $543,374 in FY 2003 as a result of the 51.54 percent Medicaid match increases, effective October 1, 2002. He said the total General Fund savings in FY 2003 will increase to $727,689.
HR, MHDS Administration – Budget Page MHDS-1 (Volume 2)
Budget Account 101‑3168
HR, Nevada Mental Health Institute – Budget Page MHDS-7 (Volume 2)
Budget Account 101‑3162
HR, Facility for the Mental Offender – Budget Page MHDS-13 (Volume 2)
Budget Account 101‑3645
HR, Rural Clinics – Budget Page MHDS-17 (Volume 2)
Budget Account 101‑3648
HR, Southern Nevada Adult Mental Health Services – Budget Page MHDS-25 (Volume 2) – Budget Account 101‑3161
HR, Southern Food Service – Budget Page MHDS-33 (Volume 2)
Budget Account 101‑3159
HR, Sierra Regional Center – Budget Page MHDS-37 (Volume 2)
Budget Account 101‑3280
HR, Desert Regional Center – Budget Page MHDS-43 (Volume 2)
Budget Account 101‑3279
HR, Family Preservation Program – Budget Page MHDS-49 (Volume 2)
Budget Account 101‑3166
HR, Rural Regional Center – Budget Page MHDS-51 (Volume 2)
Budget Account 101‑3167
HR, Mental Health Information System – Budget Page MHDS-56 (Volume 2)
Budget Account 101‑3164
Senator Raggio asked whether Mr. Hataway was in agreement with the decisions regarding caseload growth, to which Mr. Hataway indicated his agreement. Senator Raggio stated that unless the committee had specific questions on any of the budgets listed on page 4 of Exhibit E, he would take a motion to close all the budgets based upon the recommendations of the joint subcommittee.
SENATOR NEAL MOVED TO CLOSE BUDGETS 101‑3168, 101‑3162, 101‑3645, 101‑3648, 101‑3161, 101‑3159, 101‑3280, 101‑3279, 101‑3166, 101‑3167, AND 101‑3164 WITH THE RECOMMENDATIONS OF THE JOINT SUBCOMMITTEE.
SENATOR RAWSON SECONDED THE MOTION.
Senator Raggio asked whether this is satisfactory to staff, to which Mr. Guernsey stated it is.
THE MOTION CARRIED. (SENATORS MATHEWS AND O’DONNELL WERE ABSENT FOR THE VOTE.)
* * * * *
BUDGET CLOSINGS – DEPARTMENT OF CONSERVATION AND NATURAL RESOURCES
CNR Administration – Budget Page CNR-1 (Volume 3)
Budget Account 101-4150
Brian M. Burke, Senior Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, read from page one of the closing report of the Subcommittee on Public Safety, Natural Resources and Transportation dated May 16, 2001 (Exhibit F). He indicated the subcommittee recommended several technical adjustments, including: eliminating inmate stipends due to the discontinuance of the use of inmate labor; eliminating duplicate rent increases; reducing computer funding to reflect revised prices obtained from the Purchasing Division; adjusting rent to correctly reflect rent costs at the College Parkway Facility; reducing rent for the division’s lease space on Nye Lane in Carson City to $1.22 and $1.25 per square foot for FY 2002 and FY 2003 respectively; and moving water planning board salaries to the personnel category. Otherwise, he said, the subcommittee recommends closing the remainder of the budget as recommended by the Governor.
SENATOR JACOBSEN MOVED TO CLOSE BUDGET 101-4150 ACCORDING TO THE SUBCOMMITTEE’S RECOMMENDATIONS.
SENATOR RAWSON SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS MATHEWS AND O’DONNELL WERE ABSENT FOR THE VOTE.)
* * * * *
State Lands – Budget Page CNR-62 (Volume 3)
Budget Account 101-4173
Mr. Burke stated The Executive Budget inadvertently omitted an existing Seasonal Forester position to assist in managing 500 sensitive parcels in the Tahoe Basin. He said the subcommittee recommended funding to restore that position to the budget.
The subcommittee generally approved the budget as recommended by the Governor. Mr. Burke pointed out that the subcommittee approved the following technical adjustments: The inflation decision module is reduced by $1,380 in FY 2002 and $1,215 in FY 2003 pursuant to a revised Internet cost schedule provided by the Budget Division; rents are reduced for the department’s leased space on Nye Lane in Carson City (to $1.22 and $1.25 per square foot in FY 2002 and FY 2003, respectively); costs for personal computers, laptop computers, and a file server are reduced pursuant to revised price list provided by the State Purchasing Division; computer repair costs are reduced; and network adapter costs are eliminated.
Senator Raggio asked Mr. Hataway whether he had any objection to restoring the Forester position to the budget. Mr. Hataway replied that he had addressed that on March 9 and had no objections.
SENATOR JACOBSEN MOVED TO CLOSE BUDGET 101-4173 ACCORDING TO THE SUBCOMMITTEE’S RECOMMENDATIONS, INCLUDING REDUCING INTERNET COSTS BY $1,380 IN FY 2002 AND $1,215 IN FY 2003 PURSUANT TO REVISED COSTS SUBMITTED BY THE BUDGET DIVISION, REDUCING RENT FOR THE DEPARTMENT’S LEASED SPACE ON NYE LANE IN CARSON CITY TO $1.22 AND $1.25 PER SQUARE FOOT IN FY 2002 AND FY 2003, RESPECTIVELY, REDUCING COSTS FOR PERSONAL COMPUTERS, LAPTOP COMPUTERS AND A FILE SERVER PURSUANT TO A REVISED PRICE LIST PROVIDED BY THE STATE PURCHASING DIVISION AND REDUCING COMPUTER REPAIR COSTS AND ELIMINATING NETWORK ADAPTER COSTS.
SENATOR RAWSON SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS MATHEWS AND O’DONNELL WERE ABSENT FOR THE VOTE.)
* * * * *
Tahoe Regional Planning Agency – Budget Page CNR-162 (Volume 3)
Budget Account 101-4204
Mr. Burke read the summary for this budget account from pages 2 and 3 of Exhibit F. He said the subcommittee concurred with the Governor’s addition of 7 new positions in this budget. The subcommittee also recommended approval of the Senior Engineer, Associate Engineer, and Principal Planner positions, to be contingent upon passage of A.B. 177.
ASSEMBLY BILL 177: Authorizes issuance of general obligation bonds to carry out Environmental Improvement Program in Lake Tahoe Basin. (BDR S-701)
Mr. Burke clarified the 3 new positions in FY 2003 will provide regional coordination of the Environmental Improvement Program (EIP). Although California has not yet committed to support the 3 new positions, he indicated Nevada’s approval should be contingent on California providing the required two-thirds match funding.
Mr. Burke added the subcommittee concurred with the Governor’s recommendation for General Fund appropriations of $116,554 in each year of the biennium as Nevada’s share of salary comparability costs, and the committee supported threshold research funding for the Tahoe Regional Planning Agency (TRPA) as proposed by the Governor. However, he said the subcommittee recommended a combination of $200,000 in one-shot appropriations in FY 2002 and $200,000 in FY 2003 in EIP bond interest. He said approval should likewise be contingent upon approval of A.B. 177.
Mr. Burke stated that the subcommittee recommended a cost of living adjustment (COLA) for TRPA employees equivalent to the COLA provided to state employees in general. He added that any amounts provided to the TRPA, in the event California does not provide funding, must be utilized as a onetime salary bonus.
Senator Raggio asked whether the appropriation for salary comparability took into account the COLA recommended for state workers. Mr. Burke indicated that would be covered later in the report.
Senator Raggio asked whether the proposed threshold studies were covered by the proposed bond. Mr. Burke replied that they were not included as a project in the bond, but the interest revenue generated from the bonds in The Executive Budget would be directed to these initiatives.
Senator Raggio asked if this use is appropriate. Mr. Burke replied the interest revenue is for EIP projects and, therefore, appropriate.
Senator Raggio asked whether the proposed COLA would be in addition to the increase in the employee’s base salary. Mr. Burke replied that was correct. Senator Raggio asked whether the additional increase would be necessary. Mr. Burke replied it would bring employees to the current market average before the COLAs were implemented in California and Nevada.
Senator Raggio asked whether TRPA employees were being treated differently than other state employees. Mr. Burke replied he did not believe they were being treated differently and pointed out that, when the subcommittee approved the COLAs, it suggested the language approving the COLA should mirror the 1999 session language wherein the amounts transferred must not be utilized to increase an employee’s base salary unless the state of California provided the other portion.
SENATOR JACOBSEN MOVED TO CLOSE BUDGET 101-4204 ACCORDING TO THE RECOMMENDATIONS OF THE SUBCOMMITTEE, INCLUDING THE RECOMMENDATION THAT THESE PROPOSALS BE CONDITIONED UPON THE PASSAGE AND APPROVAL OF ASSEMBLY BILL 177 AND THAT CALIFORNIA PROVIDE ITS HISTORIC TWO-THIRDS MATCH.
SENATOR RAWSON SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR MATHEWS AND O’DONNELL WERE ABSENT FOR THE VOTE.)
* * * * *
Environmental Protection Administration – Budget Page CNR-12 (Volume 3)
Budget Account 101-3173
Michael J. Chapman, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, read the summary of this budget account from page 3 of Exhibit F. He stated the subcommittee concurred with the Governor’s addition of new positions. He said the subcommittee also recommended approval of additional funding for increased office space required because of moving the Las Vegas staff to non‑state owned building space.
SENATOR JACOBSEN MOVED TO CLOSE BUDGET 101-3173 ACCORDING TO THE SUBCOMMITTEE’S RECOMMENDATIONS.
SENATOR RAWSON SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS MATHEWS AND O’DONNELL WERE ABSENT FOR THE VOTE.)
* * * * *
DEP Air Quality – Budget Page CNR-20 (Volume 3)
Budget Account 101-3185
Mr. Chapman stated the subcommittee supported the Governor’s recommendation for a new bureau chief position to separate Air Quality into two separate bureaus: Air Quality Planning and Air Quality Permitting and Compliance.
SENATOR JACOBSEN MOVED TO CLOSE BUDGET 101-3185 ACCORDING TO THE SUBCOMMITTEE’S RECOMMENDATIONS.
SENATOR RAWSON SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS MATHEWS AND O’DONNELL WERE ABSENT FOR THE VOTE.)
* * * * *
DEP Waste MGMT and Federal Facilities – Budget Page CNR-27 (Volume 3)
Budget Account 101-3187
Mr. Chapman stated the subcommittee’s decision was split on the Governor’s recommendation to transfer funding from traditional categories to 13 special-use categories, expressing concern that budgetary control would be lost. He said the subcommittee concurred with additional funding to support clean-up activities associated with abandoned tire piles and recycling awareness programs in southern Nevada.
Mr. Chapman pointed out that the subcommittee was split on this budget. He stated that the Assembly did not agree with the Governor’s recommendation to transfer the funding from traditional categories to special use categories.
Senator Raggio asked Senator Jacobsen what his recommendation would be for this budget. Senator Jacobsen stated that he would recommend it be closed according to the subcommittee’s recommendations to allow special use categories.
Senator Raggio asked what action the Senate took on this budget, to which Mr. Chapman replied the Senate agreed to allow the division to utilize special use categories to align federal funding with expenditures. He stated the Assembly did not agree with the Senate’s recommendation.
Senator Raggio asked what their reason was for not agreeing with the recommendation. Mr. Chapman replied the Assembly was mainly concerned with budget category control and identifying expenses within certain categories, such as travel and operation.
Gary L. Ghiggeri, Senate Fiscal Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, explained that the Governor recommended the budget be set up in special expenditure categories to track the grants. He said the only issue would be control over spending on such things as travel and operating expenses, which is purely a policy decision.
Mr. Hataway stated that a person has to be familiar with the myriad of federal grants in this budget account. He said that, from a programmatic point of view, the Budget Division felt special categories would be the appropriate procedure to take. He concluded his division would have to demonstrate to the committee it could easily track accounts for better control.
Senator Jacobsen stated there were only two Senators present at the subcommittee meeting and each one had a different vote. He suggested the committee accept the Senate subcommittee’s recommendation to allow special use categories.
SENATOR JACOBSEN MOVED TO CLOSE BUDGET 101-3187 ACCORDING TO THE SENATE SUBCOMMITTEE’S RECOMMENDATIONS.
SENATOR RAWSON SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS MATHEWS AND O’DONNELL WERE ABSENT FOR THE VOTE.)
* * * * *
DEP Water Programs – Budget Page CNR-43 (Volume 3)
Budget Account 101-3186
Mr. Chapman stated the subcommittee recommended approval of a new Program Assistant III to provide clerical support and reduce a backlog in processing water permit applications. He said the subcommittee also concurred with the Governor’s recommendation to transfer the water planning capital improvement to the bureau of water quality.
SENATOR JACOBSEN MOVED TO CLOSE BUDGET 101-3186 ACCORDING TO THE SUBCOMMITTEE’S RECOMMENDATIONS.
SENATOR NEAL SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS MATHEWS AND O’DONNELL WERE ABSENT FOR THE VOTE.)
* * * * *
Water Planning – Budget Page CNR-147 (Volume 3)
Budget Account 101-4161
Mr. Chapman stated the subcommittee concurred with the Governor’s recommendation to dissolve the Water Planning Division. He explained this action would result in the elimination of 6.5 FTE positions and the transfer of 2 Flood Management positions and 1 Water Planning Engineer position to the Water Resources Division. He said the subcommittee supported transfer of the Water Education for Teachers (WET) program to the Bureau of Water Programs.
Senator Raggio asked whether the recommendation would result in the elimination of this budget, and Mr. Chapman replied in the affirmative.
SENATOR JACOBSEN MOVED TO CLOSE BUDGET 101-4161 ACCORDING TO THE SUBCOMMITTEE’S RECOMMENDATIONS.
SENATOR RAWSON SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS MATHEWS AND O’DONNELL WERE ABSENT FOR THE VOTE.)
* * * * *
Heil Wild Horse Bequest – Budget Page CNR-170 (Volume 3)
Budget Account 607-4156
Mr. Chapman said the main item of concern in this budget account is the subcommittee’s concurrence with the Governor’s recommendation to fund the state’s portion of a joint venture with the Bureau of Land Management to establish a wild horse and burro foundation.
Senator Raggio remarked by establishing a foundation the balance in the fund would drop below $900,000. Mr. Chapman agreed and said the fund balance would be reduced to approximately $700,000.
SENATOR JACOBSEN MOVED TO CLOSE BUDGET 607-4156 ACCORDING TO THE SUBCOMMITTEE’S RECOMMENDATIONS.
SENATOR RAWSON SECONDED THE MOTION.
Senator Raggio stated that is consistent with the provisions of 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)
THE MOTION CARRIED. (SENATORS MATHEWS AND O’DONNELL WERE ABSENT FOR THE VOTE.)
* * * * *
THE FOLLOWING BUDGETS WERE NOT DISCUSSED
Forestry – Budget Page CNR-70 (Volume 3)
Budget Account 101-4195
Forestry Honor Camps – Budget Page CNR-83 (Volume 3)
Budget Account 101-4198
Wildlife – Budget Page CNR-103 (Volume 3)
Budget Account 101-4452
Wildlife – Boating Program – Budget Page CNR-122 (Volume 3)
Budget Account 101-4456
State Parks – Budget Page CNR-132 (Volume 3)
Budget Account 101-4162
DEP Mining Regulation/Reclamation – Budget Page CNR-37 (Volume 3)
Budget Account 101-3188
Water Resources – Budget Page CNR-93 (Volume 3)
Budget Account 101-4171
Wildlife Obligated Reserve – Budget Page CNR-118 (Volume 3)
Budget Account 101-4458
Wildlife Account – Trout Management – Budget Page CNR-131 (Volume 3)
Budget Account 101-4454
Water Planning CAP Improvement – Budget Page CNR-157 (Volume 3)
Budget Account 101-4155
The meeting was adjourned at 10:58 a.m.
RESPECTFULLY SUBMITTED:
Bob Williston
Committee Secretary
APPROVED BY:
Senator William J. Raggio, Chairman
DATE: