MINUTES OF THE
SENATE Committee on Finance
Seventy-First Session
May 17, 2001
The Senate Committee on Financewas called to order by Chairman William J. Raggio at 8:28 a.m., on Thursday, May 17, 2001, in Room 2134 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. Exhibit B is the Attendance Roster. All exhibits are available and on file at the Research Library of the Legislative Counsel Bureau.
COMMITTEE MEMBERS PRESENT:
Senator William J. Raggio, Chairman
Senator Raymond D. Rawson, Vice Chairman
Senator Lawrence E. Jacobsen
Senator William R. O’Donnell
Senator Joseph M. Neal Jr.
Senator Bob Coffin
Senator Bernice Mathews
STAFF MEMBERS PRESENT:
Gary L. Ghiggeri, Senate Fiscal Analyst
Bob Guernsey, Principal Deputy Fiscal Analyst
Mark Krmpotic, Program Analyst
Bob Atkinson, Program Analyst
Carla Watson, Program Analyst
Rick Combs, Program Analyst
Jim Rodriguez, Program Analyst
Russell J. Guindon, Deputy Fiscal Analyst
Brian M. Burke, Deputy Fiscal Analyst
ElizaBeth Root, Committee Secretary
OTHERS PRESENT:
Don Hataway, Deputy Director, Budget Division, Department of Administration
Jackie Crawford, Director, Department of Prisons
DEPARTMENT OF CONSERVATION AND NATURAL RESOURCES
Forestry – Budget Page CNR-70 (Volume 3)
Budget Account 101-4195
Mark Krmpotic, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau (Mr. Krmpotic read from Closing Report 2 Exhibit C, page 1):
The subcommittee recommends the following:
1. Approval of the Governor’s recommendation for a new Program Assistant II position to provide accounting and clerical support for the combined forestry and wildlife air operations.
2. Adding a Management Assistant I position to replace an inmate worker and to add $13,728 in Fiscal Year (FY) 2002 and $14,552 in FY 2003 for salary increases for Dispatch positions at the Elko Dispatch Center. To offset this General Fund addition, the amendment eliminates a Crew Supervisor position assigned to the Jean Conservation Camp.
3. Continuation of the position assigned to the environmental improvement program (EIP) funded with General Fund appropriations and interest accumulated from the initial EIP bond issue.
4. Increasing the county cost allocation from $230,000 to $342,257 each year. Certain counties noted that allocation increases could result in firefighter layoffs. The subcommittee directed the agency to work with the counties in the interim to defray the impact of the increased allocation.
Chairman Raggio:
Are there any questions from the committee on that budget? There being no questions, I will entertain a motion.
SENATOR JACOBSEN MOVED TO CLOSE BUDGET ACCOUNT 101‑4195 AS RECOMMENDED BY STAFF AND SUBJECT TO THE RECOMMENDATIONS MADE BY THE SUBCOMMITTEE ON PUBLIC SAFETY, NATURAL RESOURCES AND TRANSPORTATION.
SENATOR NEAL SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
* * * * *
Chairman Raggio:
Was that a serious concern regarding the counties having to lay off firefighters due to the increase in cost allocation?
Mr. Krmpotic:
There was considerable discussion on this issue. One county in particular voiced concern over the increase in the allocation and its ability to pay for that increase over the next biennium. I had discussions with the Department of Forestry administrator who indicated they might be able to assist with defraying the cost impact the first year. However, the second year is uncertain as to how to handle that increased payment.
Chairman Raggio:
What county was having that problem?
Mr. Krmpotic:
That would be Elko County.
Chairman Raggio:
Is it the case that Elko County would have to pay about $60,000 more?
Mr. Krmpotic:
That is correct, Mr. Chairman.
Forestry Honor Camps – Budget Page CNR-83 (Volume 3)
Budget Account 101-4198
Mark Krmpotic, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau (Mr. Krmpotic read from Closing Report Number 2, Exhibit C, page 1):
The subcommittee approved an increase in honor camp revenues and a corresponding General Fund reduction of $418,702 each year based on an increase by the same amount in the Department of Transportation account.
The subcommittee recognized that the inmate population at the Silver Springs Conservation Camp did not justify the recommended number of crews. The subcommittee recommended a Letter of Intent stating the Division of Forestry should consider moving the crew supervisor to a camp with a population that would justify an additional crew.
Chairman Raggio:
Is this camp not being fully utilized?
Mr. Krmpotic:
The population capacity at this camp is about 113 inmates. The population projections are estimated to be about 99 inmates the first year and approximately 103 the second year of the biennium. The number of crews budgeted would call for a total of 96 inmates and then an additional in-camp crew would also require approximately 12 to 20 inmates.
Don Hataway, Deputy Director, Budget Division, Department of Administration:
We have no problem with that. The Department of Transportation has pledged to do whatever it can to earn that money to balance its budget. When we looked at it, we thought $300,000 was a more reasonable figure. For the record, I want to this committee to know this department will do whatever it can to earn this money. If it cannot, we may be back to the Interim Finance Committee (IFC) for assistance.
Chairman Raggio:
The revenues come from where?
Mr. Hataway:
The inmates from the honor camps pick up trash and are reimbursed from the Nevada Department of Transportation (NDOT).
Chairman Raggio:
If there are no further comments, I will take a motion.
SENATOR JACOBSEN MOVED TO CLOSE BUDGET ACCOUNT 101-4198 AS RECOMMENDED BY STAFF SUBJECT TO THE RECOMMENDATIONS MADE BY THE SUBCOMMITTEE ON PUBLIC SAFETY, NATURAL RESOURCES AND TRANSPORTATION, INCLUDING A LETTER OF INTENT TO THE DIVISION OF FORESTRY RESPECTING CREW SUPERVISION RELATED TO POPULATION.
SENATOR NEAL SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
* * * * *
Forestry Intergovernmental – Budget Page CNR- (Volume 3)
Budget Account 101-4227
Mark Krmpotic, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau (Mr. Krmpotic read from Closing Report Number 2, Exhibit C, page 2):
The subcommittee approved the inclusion of the Forestry Intergovernmental account in the Authorizations Act.
Chairman Raggio:
What does that mean?
Gary L. Ghiggeri, Senate Fiscal Analyst, Fiscal Analysis Division, Legislative Counsel Bureau:
This account has historically been presented in The Executive Budget. This time it was not included in The Executive Budget. There was discussion during the initial budget overview with the expressed desire to include it in The Executive Budget. The report recommended inclusion of this budget account in The Executive Budget.
Chairman Raggio:
What is in this budget account?
Mr. Ghiggeri:
This account provides for intergovernmental agreements with the local counties that offer funding to support the local fire departments. This gives the authority to place this budget in The Executive Budget. This account is “trued up” about once each fiscal year to reflect the property tax receipts.
Chairman Raggio:
So, it is satisfactory to include this account in the Authorizations Act?
Mr. Ghiggeri:
Yes, Mr. Chairman.
Chairman Raggio:
I will accept a motion to that effect.
SENATOR JACOBSEN MOVED TO CLOSE BUDGET ACCOUNT 101-4227 AS RECOMMENDED BY STAFF SUBJECT TO THE RECOMMENDATION MADE BY THE SUBCOMMITTEE ON PUBLIC SAFETY, NATURAL RESOURCES AND TRANSPORTATION AND TO INCLUDE THIS BUDGET ACCOUNT IN THE EXECUTIVE BUDGET.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR O’DONNELL WAS ABSENT FOR THE VOTE.)
* * * * *
Wildlife – Budget Page CNR-103 (Volume 3)
Budget Account 101-4452
Mark Krmpotic, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau (Mr. Krmpotic read from Closing Report Number 2, Exhibit C, page 2):
The subcommittee supports the implementation of a new license and boat registration system, but recommends a Letter of Intent to have the division provide a quarterly status report to IFC.
The subcommittee supports the Governor’s recommendation for the following new positions: a Computer Network Technician and the implementation of local and wide area networks; a Public Information Officer, staff Associate Engineer, and a Wildlife Area Technician for the Steptoe Wildlife Management Area; a Program Officer and a Public Safety Dispatcher.
Chairman Raggio:
Are there any comments from the committee? If not, I will entertain a motion.
SENATOR JACOBSEN MOVED TO CLOSE BUDGET ACCOUNT 101-4452 AS RECOMMENDED BY STAFF SUBJECT TO THE RECOMMENDATIONS MADE BY THE SUBCOMMITTEE ON PUBLIC SAFETY, NATURAL RESOURCES AND TRANSPORTATION AND TO INCLUDE A LETTER OF INTENT FOR A QUARTERLY STATUS REPORT TO THE INTERIM FINANCE COMMITTEE.
SENATOR RAWSON SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR O’DONNELL WAS ABSENT FOR THE VOTE.)
* * * * *
Wildlife-Boating Program – Budget Page CNR-122 (Volume 3)
Budget Account 101-4456
Mark Krmpotic, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau (Mr. Krmpotic read from Closing Report Number 2, Exhibit C, page 2):
The subcommittee recommends elimination of $119,000 in FY 2002 and $814,000 in FY 2003 for boat access projects. The agency may approach IFC at a later date as projects are identified for which funding may be used.
Chairman Raggio:
Where was that funding coming from?
Mr. Krmpotic:
That funding was coming from the reserve in this budget account.
Chairman Raggio:
Do they have the authority to do that without a Letter of Intent?
Mr. Krmpotic:
They do, Senator.
SENATOR JACOBSEN MOVED TO CLOSE BUDGET ACCOUNT 101-4456 ACCORDING TO STAFF RECOMMENDATION SUBJECT TO THE RECOMMENDATIONS MADE BY THE SUBCOMMITTEE ON PUBLIC SAFETY, NATURAL RESOURCES AND TRANSPORTATION AND TO ELIMINATE FUNDING FOR BOAT ACCESS PROJECTS BY $119,000 IN FISCAL YEAR 2002 AND $814,000 IN FISCAL YEAR 2003.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR O’DONNELL WAS ABSENT FOR THE VOTE.)
* * * * *
State Parks – Budget Page CNR-132 (Volume 3)
Budget Account 101-4162
Mark Krmpotic, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau (Mr. Krmpotic read from Closing Report 2, Exhibit C, page 3):
The subcommittee concurs with the Governor’s recommendation to increase the transfer from the Commission on Tourism by $443,040 in FY 2002 and $523,202 in FY 2003 with offsetting decreases to the General Fund.
The subcommittee approved the following new positions as recommended by the Governor: a Management Assistant I at the Valley of Fire; a Management Assistant at Lake Tahoe State Park; a Park Ranger II at Sand Harbor; a Park Ranger Technician III at Rye Patch; and a Maintenance Repair Worker to assist with the two parks located in the Elko Region. The subcommittee also recommended the continuation of the position assigned to the Lake Tahoe EIP team funded with tourism transfers and interest accumulated from the initial EIP bond issue.
Lastly, the subcommittee voted to close the following additional accounts as the Governor recommended with minor or technical adjustments:
Dep Mining Regulation/Reclamation – Budget Page CNR-118 (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 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 subcommittee’s recommendations for the Conservation and Natural Resources accounts result in General Fund reduction of $1.03 million in FY 2002 and $1.12 million in FY 2003.
Chairman Raggio:
If there are no questions, I will take a motion to approve the recommendations on the State Parks budget, as well as the following accounts: Regulation/Reclamation, Water Resources, Wildlife Obligated Reserve, Wildlife Trout Management, and Water Planning Cap Improvement.
SENATOR JACOBSEN MOVED TO CLOSE BUDGET ACCOUNTS 101-4162, 101-3188, 101-4171, 101-4458, 101-4454 AND 101-4155 SUBJECT TO THE RECOMMENDATIONS MADE BY THE SUBCOMMITTEE ON PUBLIC SAFETY, NATURAL RESOURCES AND TRANSPORTATION.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR O’DONNELL WAS ABSENT FOR THE VOTE.)
* * * * *
Senator Jacobsen:
Last summer I had the privilege of going with representatives of the State Department of Conservation and Natural Resources to spend a week visiting all of the parks from Carson City to the Great Basin. I would advise any on this committee to take that trip.
HR, Office of Health Administration – Budget Page HEALTH-1 (Volume 2)
Budget Account 101-3223
Bob Atkinson, Program Analyst, Fiscal Analysis Division, Legislative counsel Bureau (Mr. Atkinson read from the State Health Division Closing Report, Page 1, Exhibit D):
The subcommittee agreed to approve the Governor’s recommendation for $100,000 each year of the biennium to support a rural mammography program. Subsequent to the subcommittee closing, staff determined that the recommended budget failed to include a salary increase for the State Health Officer, which should be provided for in the State Employees Pay Bill, and the budget should be closed accordingly.
The subcommittee recommends a Letter of Intent advising the Health Division that the various positions that have been transferred into this account at the recommendation of the Governor are to be funded solely with indirect costs.
Chairman Raggio:
Any comments? If not I will entertain a motion to close this budget account subject to the recommendations, along with the Letter of Intent on the funding of the positions with indirect costs.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101-3223 ACCORDING TO STAFF RECOMMENDATIONS SUBJECT TO THE RECOMMENDATIONS MADE BY THE SUBCOMMITTEE ON HUMAN RESOURCES/K-12 AND TO INCLUDE A LETTER OF INTENT ON THE FUNDING OF RECOMMENDED POSITIONS WITH INDIRECT COSTS.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS O’DONNELL AND COFFIN WERE ABSENT FOR THE VOTE.)
* * * * *
HR, Vital Statistics – Budget Page HEALTH-7 (Volume 2)
Budget Account 101-3190
Bob Atkinson, Program Analyst, Fiscal Analysis Division, Legislative counsel Bureau (Mr. Atkinson read from Exhibit D, page 2):
The subcommittee recommends approving the transfer of the Biostatistician position from this account to the Health Administration account where the position will be funded with indirect costs. The Maternal Child Health funding saved in this account was redirected to reinstate two Public Service Intern positions in the Special Children’s Clinic account.
Chairman Raggio:
As I recall the testimony, we would fund two full-time positions, but the agency would be able to utilize these positions for a number of part-time employees.
Mr. Atkinson:
That is correct, Mr. Chairman. The Public Service Intern positions are not full-time positions. I believe the division also indicated that because of the way it is utilizing the Special Children’s Clinic account, the division would probably use these positions more in Las Vegas than in Reno.
Chairman Raggio:
Are there any objections, committee? I will entertain a motion.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101-3190 ACCORDING TO STAFF RECOMMENDATIONS AND SUBJECT TO THE RECOMMENDATIONS MADE BY THE SUBCOMMITTEE ON HUMAN RESOURCES/K-12.
SENATOR MATHEWS SECONDED THE MOTION.
Chairman Raggio:
I had a note on changing the Biostatistician position. Is that what they did to the Health Resource Analyst?
Mr. Atkinson:
The division had asked that if the Biostatistician position was moved, they would request the creation of a Health Resource Analyst. Instead of creating that Health Resource Analyst, the subcommittee chose to direct that funding to the Public Service Intern positions.
THE MOTION CARRIED. (SENATOR O’DONNELL WAS ABSENT FOR THE VOTE.)
* * * * *
HR, Cancer Control Registry – Budget Page HEALTH-10 (Volume 2)
Budget Account 101-3153
Bob Atkinson, Program Analyst, Fiscal Analysis Division, Legislative counsel Bureau:
Staff would recommend this account be closed as recommended by the Governor.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101-3153 SUBJECT TO THE RECOMMENDATIONS MADE BY THE GOVERNOR.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR O’DONNELL WAS ABSENT FOR THE VOTE.)
* * * * *
HR, Health Aid to Counties – Budget Page HEALTH-13 (Volume 2)
Budget Account 101-3209
Bob Atkinson, Program Analyst, Fiscal Analysis Division, Legislative counsel Bureau (Mr. Atkinson read from Exhibit D, page 2):
The subcommittee recommended a Letter of Intent to establish a goal of $1.10 for the next session and to try to work towards a goal of funding the $1.10 with 75 percent General Fund and 25 percent Pollution Control funding. Currently, it is about a 90 percent, 10 percent funding split, respectively.
Chairman Raggio:
Is this one of the items that was recommended for the reduction?
Mr. Ghiggeri:
Yes, this was one of the items that was under consideration for reduction, but the subcommittee did not adopt that reduction.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101-3209 AS RECOMMENDED TO STAFF SUBJECT TO THE RECOMMENDATIONS MADE BY THE SUBCOMMITTEE ON HUMAN RESOURCES/K-12, INCLUDING A LETTER OF INTENT TO FOCUS ON ATTAINING THE GOAL NEXT LEGISLATIVE SESSION WITH 75 PERCENT WITH GENERAL FUND APPROPRIATION AND 25 PERCENT POLLUTION CONTROL FUNDING.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR O’DONNELL WAS ABSENT FOR THE VOTE.)
* * * * *
HR, Consumer Health Protection – Budget Page HEALTH-15 (Volume 2)
Budget Account 101-3194
Bob Atkinson, Program Analyst, Fiscal Analysis Division, Legislative counsel Bureau (Mr. Atkinson read from exhibit D, page 2):
The subcommittee recommends this account be closed as recommended by the Governor.
Mr. Atkinson:
Subsequent to the action of the subcommittee, the division submitted a request for $5,200 each year in General Fund support to offset the loss of revenue due to the transfer of the dairy inspections to the Diary Commission if Senate Bill (S.B.) 505 is approved. Staff recommends approval of this additional request.
SENATE BILL 505: Makes various changes relating to transfer of responsibility for dairy inspection program to state dairy commission of department of business and industry. (BDR 51-401)
Chairman Raggio:
Did they lose the inspection fees?
Mr. Atkinson:
Correct. They had been collecting $5,200 a year, which now they will lose.
Chairman Raggio:
That request for $5,200 was recommended by staff?
Mr. Atkinson:
Correct.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101-3194 SUBJECT TO THE RECOMMENDATIONS MADE BY STAFF, WHICH INCLUDES $5,200 EACH YEAR OF THE BIENNIUM IN GENERAL FUND APPROPRIATION TO OFFSET THE LOSS OF REVENUE.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR O’DONNELL WAS ABSENT FOR THE VOTE.)
* * * * *
HR, Health Facilities Hospital Licensing – Budget Page HEALTH-26 (Volume 2)
Budget Account 101-3216
Bob Atkinson, Program Analyst, Fiscal Analysis Division, Legislative counsel Bureau (Mr. Atkinson read from Exhibit D, page 2):
The recommended budget includes increases in federal and fee revenue exceeding $1.5 million each year. The subcommittee recommends this account be closed as recommended by the Governor with a Letter of Intent.
Chairman Raggio:
Mr. Hataway, are you on top on this budget?
Don Hataway, Deputy Director, Budget Division, Department of Administration:
Yes, Mr. Chairman.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101-3216 AS RECOMMENDED BY THE GOVERNOR AND SUBJECT TO THE RECOMMENDATIONS MADE BY THE SUBCOMMITTEE ON HUMAN RESOURCES/K-12, WHICH INCLUDES A LETTER OF INTENT TO THE HEALTH DIVISION REQUIRING THE DIVISION TO APPEAR BEFORE THE FIRST INTERIM FINANCE COMMITTEE MEETING FOLLOWING THE SESSION TO INFORM THE COMMITTEE AS TO THE DETAILS OF THE FEE INCREASE. ADDITIONALLY, THE DIVISION IS REQUIRED TO REPORT QUARTERLY TO THE INTERIM FINANCE COMMITTEE ON THE STATUS OF REVENUES, EXPENDITURES AND RESERVE LEVELS IN THIS ACCOUNT.
SENATOR JACOBSEN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR O’DONNELL WAS ABSENT FOR THE VOTE.)
* * * * *
HR, Community Health Services – Budget Page HEALTH-30 (Volume 2)
Budget Account 101-3224
Bob Atkinson, Program Analyst, Fiscal Analysis Division, Legislative counsel Bureau:
Staff made some technical adjustments in this account. The subcommittee recommended the account be closed as adjusted.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101-3224 AS RECOMMENDED BY STAFF.
SENATOR JACOBSEN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR O’DONNELL WAS ABSENT FOR THE VOTE.)
* * * * *
HR, Health Communicable Disease Control – Budget Page HEALTH-34 (Volume 2)
Budget Account 101-3220
Bob Atkinson, Program Analyst, Fiscal Analysis Division, Legislative counsel Bureau:
Staff made some technical adjustments in this account. The subcommittee recommended the account be closed as adjusted.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101‑3220 AS RECOMMENDED BY STAFF.
SENATOR JACOBSEN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR O’DONNELL WAS ABSENT FOR THE VOTE.)
* * * * *
HR, Sexually Transmitted Disease Control – Budget Page HEALTH-42 (Volume 2)
Budget Account 101-3215
Bob Atkinson, Program Analyst, Fiscal Analysis Division, Legislative counsel Bureau:
Staff made some technical adjustments in this account. The subcommittee recommended the account be closed as adjusted.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101-3215 AS RECOMMENDED BY STAFF.
SENATOR JACOBSEN SECONDED THE MOTION.
Senator Coffin:
The agency is looking at 90 diagnosed cases in each of the years of the biennium. I thought I had read about a potential increase in tuberculosis. Did the subcommittee hear any evidence or testimony on increases in tuberculosis?
Senator Rawson:
No. There has been discussion for about 8 to 10 years now that we would see a tremendous increase in tuberculosis, but it has not materialized as an epidemic. There is a rise, but no epidemic.
Chairman Raggio:
Is there any objection to the motion?
THE MOTION CARRIED. (SENATOR O’DONNELL WAS ABSENT FOR THE VOTE.)
* * * * *
HR, Immunization Program – Budget Page HEALTH-46 (Volume 2)
Budget Account 101-3213
Bob Atkinson, Program Analyst, Fiscal Analysis Division, Legislative counsel Bureau (Mr. Atkinson read from Exhibit D, page 3):
The subcommittee recommends a Letter of Intent. Additionally, subsequent to the closing of this account, in closing the Purchase of Social Services budget, the subcommittee recommended the transfer into this budget of $200,000 of Social Services Block Grant (Title XX) funding each year of the biennium, resulting in a decrease in General Fund by that amount.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101-3213 AS RECOMMENDED BY STAFF AND SUBJECT TO THE RECOMMENDATIONS MADE BY THE SUBCOMMITTEE ON HUMAN RESOURCES/K-12, WHICH INCLUDES THE LETTER OF INTENT TO THE HEALTH DIVISION TO APPROACH THE INTERIM FINANCE COMMITTEE IF VACCINE USAGE INCREASES OR I THE ANNUAL FEDERAL DIRECT ASSISTANCE GRANT IS NOT SUFFICIENT TO PROVIDE FOR THE EXISTING CHILDHOOD SERIES OF IMMUNIZATIONS, AND TO REPORT ALL PROPOSED MODIFICATIONS TO THE CURRENT IMMUNIZATIONS PROGRAM PRIOR TO IMPLEMENTATION.
SENATOR JACOBSEN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR O’DONNELL WAS ABSENT FOR THE VOTE.)
* * * * *
HR, Maternal Child Health Services – Budget Page HEALTH-51 (Volume 2)
Budget Account 101-3222
Bob Atkinson, Program Analyst, Fiscal Analysis Division, Legislative counsel Bureau:
Staff made some technical adjustments in this account. The subcommittee recommended the account be closed as adjusted.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101-3222 AS RECOMMENDED BY STAFF.
SENATOR JACOBSEN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR O’DONNELL WAS ABSENT FOR THE VOTE.)
* * * * *
HR, Special Children’s Clinic – Budget Page HEALTH-57 (Volume 2)
Budget Account 101-3208
Bob Atkinson, Program Analyst, Fiscal Analysis Division, Legislative counsel Bureau (Mr. Atkinson read from Exhibit D, page 3):
The Governor’s recommended budget included the elimination of 10.5 Public Service Intern positions at the Special Children’s Clinics. The division testified that elimination of these positions will have no impact on services. Through funding saved from the transfer of the Biostatistician position, the subcommittee recommends restoration of two of these Public Service Intern positions.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101-3208 SUBJECT TO THE RECOMMENDATIONS MADE BY THE SUBCOMMITTEE ON HUMAN RESOURCES/K-12 AND STAFF RECOMMENDATIONS.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR O’DONNELL WAS ABSENT FOR THE VOTE.)
* * * * *
HR, WIC Food Supplement – Budget Page HEALTH-62 (Volume 2)
Budget Account 101-3214
Bob Atkinson, Program Analyst, Fiscal Analysis Division, Legislative counsel Bureau:
The subcommittee recommended the account be closed as recommended by the Governor.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101-3214 AS RECOMMENDED BY THE GOVERNOR.
SENATOR MATHEWS SECONDED THE MOTION.
Senator Coffin:
Was the amount added to the budget by the Governor sufficient to serve the expected increase to 40,800 clients during the coming biennium?
Mr. Atkinson:
The division testified that they would be able to serve the increased population with the amount in the budget as recommended by the Governor.
THE MOTION CARRIED. (SENATOR O’DONNELL WAS ABSENT FOR THE VOTE.)
* * * * *
HR, Emergency Medical Services – Budget Page HEALTH-66 (Volume 2)
Budget Account 101-3235
Bob Atkinson, Program Analyst, Fiscal Analysis Division, Legislative counsel Bureau:
Staff made a number of technical adjustments in this account. The subcommittee recommended the account be closed as adjusted.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101-3235 AS RECOMMENDED BY STAFF.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR O’DONNELL WAS ABSENT FOR THE VOTE.)
* * * * *
HR, Health, Alcohol & Drug Rehabilitation – Budget Page HEALTH-70 (Volume 2)
Budget Account 101-3170
Bob Atkinson, Program Analyst, Fiscal Analysis Division, Legislative counsel Bureau (Mr. Atkinson read from Exhibit D, page 4):
The subcommittee closed the director’s account with a recommendation to utilize $500,000 MAXIMUS funding each year for continuation of the Adolescent Treatment Program. The subcommittee recommends a Letter of Intent.
Chairman Raggio:
How has that program been funded previously?
Mr. Atkinson:
I believe last session was the first time that it was funded, and it was funded with MAXIMUS funding with a similar request for a Letter of Intent.
Chairman Raggio:
Was the funding actually received?
Mr. Atkinson:
It was, Mr. Chairman.
Chairman Raggio:
Okay. So, there is a likelihood that can be funded with MAXIMUS funding?
Mr. Atkinson:
It can be funded with MAXIMUS funding if the MAXIMUS funding materializes.
Chairman Raggio:
That is what I mean. Is it likely that will materialize this biennium? I understand it did last time. What does that mean?
Mr. Ghiggeri:
They contract with MAXIMUS to go out and secure unknown or unmatched funding. If they are successful in doing that, it will be done. If not, it will not.
Chairman Raggio:
I understand that, but last biennium they did get sufficient MAXIMUS funding. So, the likelihood is that they can obtain similar funding through MAXIMUS efforts?
Mr. Ghiggeri:
That is what is anticipated, Mr. Chairman.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101-3170 AS RECOMMENDED BY STAFF AND SUBJECT TO THE RECOMMENDATIONS MADE BY THE SUBCOMMITTEE ON HUMAN RESOURCES/K-12, INCLUDING DIRECTING THAT NO MAXIMUS FUNDING MAY BE OBLIGATED FOR THE ADOLESCENT TREATMENT PROGRAM UNTIL RECEIPT OF THAT FUNDING.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR O’DONNELL WAS ABSENT FOR THE VOTE.)
* * * * *
HR, Health Public Health Tobacco Fund – Budget Page HEALTH-79 (Volume 2)
Budget Account 263-3212
Bob Atkinson, Program Analyst, Fiscal Analysis Division, Legislative counsel Bureau:
The subcommittee recommended this account be closed as recommended by the Governor.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 263-3212 AS RECOMMENDED BY THE GOVERNOR.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR O’DONNELL WAS ABSENT FOR THE VOTE.)
* * * * *
DEPARTMENT OF PRISONS
Carla Watson, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau (Ms. Watson’s read from the Department of Prisons Closing Report, page 1, Exhibit E):
The following budgets closed by the subcommittee had no major changes outside of technical adjustments:
Northern Nevada Correctional Center – Budget Page PRISONS-44 (Volume 3)
Budget Account 101-3717
Ely State Prison – Budget Page PRISONS-67 (Volume 3)
Budget Account 101-3751
Southern Nevada Women’s Correctional Center – Budget Page PRISONS-39 (Volume 3) Budget Account 101-3761
Stewart Conservation Camp – Budget Page PRISONS-100 (Volume 3)
Budget Account 101-3722
Pioche Conservation Camp – Budget Page PRISONS-105 (Volume 3)
Budget Account 101-3723
Indian Springs Conservation Camp – Budget Page PRISONS-111 (Volume 3)
Budget Account 101-3725
Jean Conservation Camp – Budget Page PRISONS-134 (Volume 3)
Budget Account 101-3748
Silver Springs Conservation Camp – Budget Page PRISONS-139 (Volume 3)
Budget Account 101-3749
Restitution Center - North – Budget Page PRISONS-88 (Volume 3)
Budget Account 101-3724
Offenders’ Store Fund – Budget Page PRISONS-193 (Volume 3)
Budget Account 240-3708
Inmate Welfare Account – Budget Page PRISONS-201 (Volume 3)
Budget Account 660-3763
We have had one request by the Department of Prisons (DOP) since the closure of the Northern Nevada Correctional Center (NNCC) budget. This came in late in the afternoon on Tuesday, May 15, 2001. They have identified there is going to be a rate increase for water at NNCC, which will require an additional $23,356 per year.
Chairman Raggio:
Do you agree with that, Mr. Hataway?
Don Hataway, Deputy Director, Budget Division, Department of Administration:
Yes, Sir.
SENATOR NEAL MOVED TO CLOSE BUDGET ACCOUNTS 101-3717, 101‑3751,101-3761, 101-3722, 101-3723, 101-3725, 101-3748, 101‑3749, 101-3724, 240-3708, AND 660-3763 AS RECOMMENDED BY THE GOVERNOR SUBJECT TO TECHNICAL ADJUSTMENTS RECOMMENDED BY STAFF, INCLUDING $23,356 PER YEAR IN EACH YEAR OF THE BIENNIUM FOR NORTHERN NEVADA CORRECTIONAL CENTER.
SENATOR JACOBSEN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR O’DONNELL WAS ABSENT FOR THE VOTE.)
* * * * *
DEPARTMENT OF PRISONS
Correctional Facilities– Budget Page PRISONS-157 (Volume 3)
Budget Account 101-3177
Carla Watson, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau (Ms. Watson’s read from Exhibit E, page 1):
The Department of Prisons (DOP) is primarily driven by he projected number of inmates to be housed. The budget, as modified by the subcommittee, will provide for housing an average of 10,466 inmates in FY 2002 and 11,023 in FY 2003. This modification was the result of a reprojection of the inmate population by the Institute of Crime, Justice and Corrections at the George Washington University in March 2001.
Chairman Raggio:
Just for the record, in the past the Legislature has used the National Council of Crime and Delinquency, but I understand the same individual the Legislature had been working with is now with the George Washington University and so the source of our projections remains consistent. Is that correct?
Ms. Watson:
Yes, Mr. Chairman.
The Governor recommends “collapsing” all institutional camp accounts into one budget account in 101-3711. The Assembly Committee on Ways and Means and the Senate Committee on Finance did not approve the consolidation and recommended the budgets be returned to their “preconsolidation” status. As an alternative, the full committees recommend modifying the existing language in the Appropriations Act to allow the DOP greater flexibility for transfers between budget accounts up to the current limits allowed within budgets without first obtaining the approval of IFC.
Chairman Raggio:
That was a discussion we had earlier in the year and Mr. John P. Comeaux, Director, Budget Division, Department of Administration, finally came to some accord with our staff, and I believe that is acceptable, is it not?
Mr. Hataway:
Yes, Sir.
DOP Director’s Office – Budget Page PRISONS-1 (Volume 3)
Budget Account 101-3710
Carla Watson, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau (Ms. Watson’s read from Exhibit E, page 2):
In the Director’s Office budget account, the subcommittee supports the Governor’s recommendation to add 8 positions. The subcommittee also recommends approval of funding for enhanced travel and training. Technological advancements approved by the subcommittee include funding for statewide Internet access and expansion and development of the Nevada Criminal Information System. The subcommittee recommends approval for the department to pursue accreditation by the American Correctional Association (ACA) for the Lovelock Correctional Center and the Ely State Prison.
Chairman Raggio:
What is lacking in those two institutions? They are fairly new, so what is lacking?
Ms. Watson:
None of the institutions have been accredited by the ACA and the Director indicated that she would like to start pursuing accreditation.
Chairman Raggio:
What is the advantage of accreditation?
Ms. Watson:
The agency has indicated that by being accredited, it would minimize the risk of successful litigation and establish consistency.
The department has also provided an adjustment, which occurred Tuesday afternoon, May 15, 2001. They discovered they did not include funding for a copier for the commercial space and the need would be $9,200 per fiscal year.
Ms. Watson:
The Drug Court Program is scheduled to sunset on June 30, 2001. If passed, Assembly Bill (A.B.) 574 will reestablish the Drug Court Program.
ASSEMBLY BILL 574: Makes changes to provisions concerning programs of treatment for abuse of alcohol or drugs for certain offenders and provisions concerning sentencing of certain persons sentenced to imprisonment for life without parole. (BDR 16-1327)
Chairman Raggio:
As I understand it, the joint subcommittee recommendation needs to be augmented by $9,200 per year for a copier?
Ms. Watson:
Yes, Mr. Chairman.
Chairman Raggio:
Is there anything else in this budget?
Ms. Watson:
Yes, Mr. Chairman. The subcommittee recommends approval of reduced funding of $92,000 per fiscal year, which coincides with the department’s schedule for the actual cost of extraordinary repairs in FY 2000. The subcommittee recommends issuing a Letter of Intent. Lastly, the subcommittee recommends approval of 9 reclassifications proposed in the Director’s Office.
Chairman Raggio:
Mr. Hataway, does that meet with your concerns?
Mr. Hataway:
Yes, Sir.
Chairman Raggio:
Hearing no questions from the committee, I will take a motion.
Senator Neal:
We are privileged to have as director of this system an individual who is noted all over the country for her ability to run prisons. I wanted to have that noted for the record.
SENATOR NEAL MOVED TO CLOSE BUDGET ACCOUNT 101-3710 AS RECOMMENDED BY THE JOINT SUBCOMMITTEE ON PUBLIC SAFETY, NATURAL RESOURCES, AND TRANSPORTATION, TO INCLUDE $9,200 EACH YEAR OF THE BIENNIUM FOR A COPIER LEASE, TO INCLUDE A LETTER OF INTENT REQUIRING THE DEPARTMENT TO ESTABLISH A CRITERIA FOR THE USE OF FUNDS, AND TO PROVIDE STATUS REPORTS TO THE INTERIM FINANCE COMMITTEE EXPLAINING THE USE OF, AND ENDING BALANCE OF, THE FUNDS.
.
SENATOR JACOBSEN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR O’DONNELL WAS ABSENT FOR THE VOTE.)
* * * * *
Prison Medical Care – Budget Page PRISONS-17 (Volume 3)
Budget Account 101-3706
Carla Watson, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau (Ms. Watson’s read from Exhibit E, page 4):
The Governor’s recommended inmate-driven costs for this account for this biennium are significantly less than the amount budgeted for the last biennium. In response to inquiries on this subject, the DOP advised funding for the medical inmate-driven costs should be sufficient, with one exception. The one exception referenced by the DOP relates to new requirements resulting from the passage of the Federal Needlestick and Safety Prevention Law on November 6, 2000, effective August 1, 2001.
Chairman Raggio:
What is that law?
Mr. Ghiggeri:
It provides for additional safety measures and procedures that need to be followed by medical personnel when using sharp instruments.
Senator Mathews:
There is a new needle that has been developed, which costs a little bit more than the regular needle, and that is what the federal government advocates the states purchase.
Ms. Watson:
Adjustments are recommended by the subcommittee to provide for the addition of $87,087 in FY 2002 and $166,209 in FY 2003. Of this amount, $44,080 is funded from the General Fund in FY 2002 and $103,835 is funded from the General Fund in FY 2003.
Chairman Raggio:
Where does the rest come from?
Mr. Ghiggeri:
The rest would come from inmate co-payments and reimbursements for inmate injuries.
Ms. Watson:
Subsequent to closure of this budget by the Joint Subcommittee on Public Safety, Natural Resources and Transportation, it was determined no pay increases had been funded by the DOP (physicians, psychiatrists, and dentists). There are approximately 22.1 full-time equivalent (FTE) positions employed by the DOP that fall into this employment category. Funding for these positions is not reflected in this closure. However, approximately $271,000 will be funded in FY 2002 and $403,000 in FY 2003 for the cost of the pay increases for these personnel in the State Employees Pay Bill.
The majority of the recommended adjustments are related to the revised inmate population projections as provided by George Washington University on March 22, 2001, and the DOP’s biennial plan dated April 12, 2001. Based on that revised inmate population projections, funding for inmate-driven costs is increased in the amount of $114,298 in FY 2002 and $151,355 in FY 2003. Payments to Correctional Medical Services (CMS) are reduced by $5,124 in FY 2002 and increased by $6,901 in FY 2003. To partially offset General Fund cost, funding from “non‑General Fund” sources was utilized as has been done in past bienniums.
Chairman Raggio:
There was concern at one point about the contract at Ely State Prison and whether that company was going to continue the contract. Has that issue been resolved?
Mr. Ghiggeri:
To the best of committee staff’s knowledge, that has been resolved.
Jackie Crawford, Director, Department of Prisons:
Mr. Chairman, that contract has been resolved. At one time they were going to terminate the contract, but they have changed their direction, contacting me to inform me the contract is up for renegotiation and they are more than happy to continue.
Chairman Raggio:
What about the women’s correctional facility in Las Vegas? Is that contract going to continue?
Ms. Crawford:
Mr. Chairman, to my knowledge that contract is going to continue. It is my understanding, and we are working with them now on a number of the issues, but as I speak today, that contract is going to continue.
Chairman Raggio:
What about the “inmate driven costs?” Is staff comfortable with the joint subcommittee action taken on the amounts per year?
Mr. Ghiggeri:
Committee staff is as comfortable as they can be based on information provided by the DOP who has indicated that it is sufficient. Committee staff is a little “queasy,” though.
Chairman Raggio:
It is significantly less than the historical amount.
Mr. Ghiggeri:
Yes, Mr. Chairman, it is significantly less than the historical amount. Committee staff did query the DOP on this issue and they have assured us that this is sufficient.
Chairman Raggio:
Otherwise, you are going to have to do a lot of nursing on your own, over there. There being no further questions, I will take a motion.
SENATOR NEAL MOVED TO CLOSE BUDGET ACCOUNT 101-3706 AS RECOMMENDED BY THE JOINT SUBCOMMITTEE ON PUBLIC SAFETY, NATURAL RESOURCES AND TRANSPORTATION.
SENATOR JACOBSEN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS O’DONNELL AND RAWSON WERE ABSENT FOR THE VOTE.)
* * * * *
Nevada State Prison – Budget Page PRISONS-52 (Volume 3)
Budget Account 101-3718
Carla Watson, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau (Ms. Watson’s read from Exhibit E, page 6):
The Nevada State Prison (NSP) is projected to add 211 beds above emergency capacity effective December 2002 and remain above emergency capacity through the end of the biennium.
The subcommittee recommends approval of 3 new correctional officers and 1 new Correctional Caseworker effective October 2002 through June 2003, to cover the time period NSP is projected to operate above emergency capacity. These 4 positions should sunset June 30, 2003.
SENATOR MATHEWS MOVED TO CLOSE BUDGET ACCOUNT 101-3718 AS RECOMMENDED BY THE JOINT SUBCOMMITTEE ON PUBLIC SAFETY, NATURAL RESOURCES AND TRANSPORTATION, INCLUDING APPROVAL OF 3 NEW CORRECTIONAL OFFICERS AND 1 NEW CORRECTIONAL CASEWORKER EFFECTIVE OCTOBER 2002 THROUGH JUNE 2003, ALL POSITIONS TO SUNSET JUNE 30, 2003, UNLESS THERE IS JUSTIFICATION TO CONTINUE THE POSITIONS.
SENATOR NEAL SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS O’DONNELL AND RAWSON WERE ABSENT FOR THE VOTE.)
* * * * *
Southern Desert Correctional Center – Budget Page PRISONS-58 (Volume 3)
Budget Account 101-3738
Carla Watson, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau (Ms. Watson’s read from Exhibit E, page 6):
The subcommittee recommends approval of a Maintenance Repair Specialist 1 position. The subcommittee also recommends approval of a Therapeutic Community Program similar to that offered to offenders in the north at the Warm Springs Correctional Center.
The Governor recommends eliminating 13 existing Correctional Officer positions and creating 11 new positions, which consist of 2 Correctional Case Worker Specialist III positions, 2 Management Assistant II positions, 1 Rehabilitation Program Supervisor and 6 Substance Abuse Counselors. The program in the north is operated under a contract that is funded entirely with non-General Fund sources. The Governor recommends using the General Fund as the cash match for the program in the south. The subcommittee recommends that the cash-match requirement be funded by the Inmate Welfare Fund.
Chairman Raggio:
That is consistent with our action on the other institution. We did not place any General Fund money there, either. Do you object to that, Mr. Hataway?
Don Hataway, Budget analyst, Budget Division, Department of Administration:
No, Mr. Chairman.
Ms. Watson:
The subcommittee concurs with the Governor’s recommendation to the fund start‑up costs for the Youthful Offender Program established at the Southern Desert Correctional Center in December 2000. This program is designed to address the needs of the Youthful Offender, ages 14 to 21. The subcommittee recommends approval to transfer the Boot Camp Program from the Indian Springs Conservation Camp to the Southern Desert Correctional Center (SDCC). The subcommittee recommends reducing the staffing recommended for Unit 7 from 9.6 to 7 FTE positions and transferring the remaining 3 Custody Staff in Unit 7 to the High Desert State Prison to partially fill the staffing hole in Unit 8.
Chairman Raggio:
Is everyone involved in this transfer comfortable?
Ms. Watson:
The department has concurred.
SENATOR NEAL MOVED TO CLOSE BUDGET ACCOUNT 101-3738 AS RECOMMENDED BY THE JOINT SUBCOMMITTEE ON PUBLIC SAFETY, NATURAL RESOURCES AND TRANSPORTATION, WHICH INCLUDE THE TRANSFERS OF STAFF AND PROGRAMS.
SENATOR JACOBSEN SECONDED THE MOTION.
Chairman Raggio:
What is the reason for transferring the Boot Camp Program? Is it a better location for that program to operate?
Ms. Watson:
The department indicated that their vision is to have Southern Desert Correctional Center be more program oriented, and have the Boot Camp Program, Youthful Offender Program, and Therapeutic Community Program all located at that correctional center. Additionally, the department indicated that the 5 trailers that formerly housed the Boot Camp Program inmates are dilapidated and are not in good condition.
THE MOTION CARRIED. (SENATORS O’DONNELL AND RAWSON WERE ABSENT FOR THE VOTE.)
* * * * *
High Desert State Prison – Budget Page PRISONS-73 (Volume 3)
Budget Account 101-3762
Carla Watson, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau (Ms. Watson’s read from Exhibit E, page 8):
The subcommittee recommends $512,102 per year beyond the amounts included in The Executive Budget to fund fuel oil costs. The subcommittee also recommends approval on 1 Equipment Mechanic III position.
The Assembly subcommittee members recommend denial of funding for the Maintenance Repair Specialist II position. The Senate subcommittee members have not reached a decision on this position. The full committee will need to take action on this position.
Chairman Raggio:
Members of the committee, what is the situation here?
Senator Jacobsen:
I felt the Maintenance position was a necessity.
Chairman Raggio:
Senator Neal, you are on the subcommittee, do we need the Maintenance Repair Specialist II position?
Senator Neal:
I was going to move for closure as recommended by staff.
Chairman Raggio:
Committee staff has not taken a position on this issue. The issue is whether such a position is needed. Let us go on.
Ms. Watson:
The subcommittee recommends approval to extend the reversion date for $12,659 in “one-shot” funds beyond June 30, 2001, to June 30, 2002, for new equipment items recommended in the Governor’s budget. The subcommittee recommends approval of $73,695 in FY 2002 and $74,450 in FY 2003 for Property and Contents Insurance.
Senator Coffin:
When the first budget came out, I was not on this subcommittee. The first budget did not contain the construction modifications that I thought were necessary based on my tour of the facility when Senator Jacobsen and I visited it when it first opened. We found what we felt were flaws in the security catwalks and an inability for guards to see a number of places where prisoners would be in the yard. This is an old problem that has resurfaced. I brought it up with prison staff that very day, and I do not know how that issue was concluded. Was there discussion on extending those catwalks? They had problems with shelter on the catwalks, but in addition to that, some of the catwalks did not cover about 50 to 60 feet to allow a guard to get from one side of a unit to the other. The prison would need two guards to properly staff at any given time in that yard. So, what has happened on that issue?
Jackie Crawford, Director, Department of Prisons:
Senator Coffin, we took your comments very seriously and worked as closely as we could in attempting to correct some of those issues. We are continuing to correct some of those issues, and it may be when we go into Phase II or Phase III of the facility construction we will have to look at the design of that. But, we have made corrections. We did bring the contractor back out and there were some adjustments made to correct that in its totality. We assigned staff accordingly. Again, I agree with you that there are some corrections that need to be made, and we are doing the best we can with what we have at this point.
Senator Coffin:
There was adequate time from the period we inspected that, which was when the budget was being constructed. However, there was time. When someone notices a serious flaw in security issue to the employees and an obvious security matter for inmates, how are we going to expect that to be an adequate answer if in fact you say, “We will take care of it in the next phase?” How many years away will that be because this is a serious problem?
Ms. Crawford:
I am not saying that all of that is going to be corrected in Phase III. What I have said is we have done as much as we possibly can with that respective area, and there have been some corrections. For me to outline those corrections today would be difficult. I can get back to you this afternoon with those responses. Next, as far as the adjustment, as far as the air conditioning and those kinds of things, we have corrected that and we do have the air conditioning and the air circulation for those people who are up there on that catwalk. Their comfort level has been addressed.
Senator Coffin:
But there was a lack of a catwalk from building-to-building that would force a guard to run hundreds of yards around to be able to solve or see a problem. That should not have required a large capital expenditure and this afternoon is too late because we are closing this budget today. So, did you budget for this concern? Did you get some bids to correct this problem? Did you find out how much this would cost to resolve? Did you submit that information to the Budget Division and say, “We need to do this because it is a design flaw that was overlooked. It has been seen by members of the committee and now we need to fix it.”
Ms. Crawford:
We did submit bids and we did submit plans to the Public Works Board, which we have to go through to correct this problem. Those were outlined in the letter, and again I would be more than pleased to send that letter to you this afternoon.
Senator Coffin:
What did they say it would cost?
Ms. Crawford:
The Public Works Board is currently getting bids.
Mr. Ghiggeri:
Any adjustments that would be required for this facility should be addressed by the capital improvement projects (CIP) subcommittee. If that information could be submitted to committee staff today, we could utilize it for review by the CIP subcommittee.
Chairman Raggio:
All right. I will entertain a motion to close this budget.
SENATOR NEAL MOVED TO CLOSE BUDGET ACCOUNT 101-3762 AS RECOMMENDED BY THE JOINT SUBCOMMITTEE ON PUBLIC SAFETY, NATURAL RESOURCES AND TRANSPORTATION WITH THE INCLUSION OF THE MAINTENANCE REPAIR SPECIALIST II POSITION.
SENATOR JACOBSEN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS O’DONNELL AND RAWSON WERE ABSENT FOR THE VOTE.)
* * * * *
Senator Jacobsen:
A reasonable person has to realize when a new institution is constructed there are bound to be construction shortcomings. That is why I felt the Maintenance Repair Specialist position was a necessity to address these minor problems that cannot be anticipated during construction.
Lovelock Correctional Center – Budget Page PRISONS-81 (Volume 3)
Budget Account 101-3759
Carla Watson, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau (Ms. Watson’s read from Exhibit E, page 9):
The subcommittee recommends funding for a Correctional Caseworker Specialist position with a starting date of October 2001 to allow for one month of training. The position would sunset effective June 30, 2003.
Ms. Watson:
The department has applied for a grant from the U.S. Justice Department, which would provide up to half of the cost for bulletproof vests. The department will not receive a response to its application until after the session ends. Funding of $12,190 for protective vests is recommended in The Executive Budget for the Lovelock Correctional Center and the Ely State Prison. Additional funding of $12,872 is recommended in the “one‑shot” for replacement equipment in S.B. 442. If grant funding is approved, only a portion of the recommended General Fund appropriation will be needed. The subcommittee recommends issuing a Letter of Intent. Lastly, the subcommittee recommends funding to add a Chaplain position that was not included in The Executive Budget.
SENATE BILL 442: Makes appropriation to Department of Prisons for replacement equipment. (BDR S-1378)
Chairman Raggio:
What is the cost of the Chaplain position?
Ms. Watson:
The cost for the biennium was $81,928.
Chairman Raggio:
Mr. Hataway, do you have any objection?
Mr. Hataway:
No, Mr. Chairman.
Chairman Raggio:
Is our action conditioned on S.B. 442 being processed?
Ms. Watson:
Yes, Mr. Chairman. We are in the process of reconciling that with the DOP and the Budget Division to determine which items can be reduced.
Senator Neal:
This being the last prison budget to be heard today, what does this mean in terms of changing the prison’s name?
Chairman Raggio:
Do you mean changing the name of the department?
Mr. Ghiggeri:
Committee staff is currently attempting to review that bill in its spare time. As time permits committee staff is reviewing that bill and will bring it back to the committee once they have resolved all of their concerns. It will not affect the closings.
Senator Neal:
Can we expect that before we leave?
Mr. Ghiggeri:
Yes, Senator, hopefully you will.
Chairman Raggio:
On this we need to take action to approve the joint subcommittee report and then we will deal with S.B. 442 and, however that works out, we will adjust it. The closing of this account includes the Chaplain position. Director, regarding the Lovelock Correctional Center, are you still having a problem with recruitment of personnel?
Ms. Crawford:
I am pleased to announce that almost all of our positions are full. Perhaps right now we have about 6 vacancies versus where we used to be. I contribute our recruiting success to the Police Officers and Standards Training (P.O.S.T.). We went back to the P.O.S.T. Commission and they modified those positions to make them job-related, and we are having tremendous success in getting our positions filled.
Chairman Raggio:
I will take a motion.
SENATOR JACOBSEN MOVED TO CLOSE BUDGET ACCOUNT 101-3759 AS RECOMMENDED BY THE JOINT SUBCOMMITTEE ON PUBLIC SAFETY, NATURAL RESOURCES AND TRANSPORTATION WITH THE INCLUSION OF THE CHAPLAIN POSITION AND A LETTER OF INTENT REQUIRING THE DEPARTMENT TO TRANSFER THE REMAINING BALANCE OF GENERAL FUND APPROPRIATIONS FOR VESTS TO A RESERVE FOR REVERSION IF GRANT FUNDING IS RECEIVED.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS O’DONNELL AND RAWSON WERE ABSENT FOR THE VOTE.)
* * * * *
Senator Jacobsen:
I am sorry Senator O’Donnell is not here because he was a big promoter of the Chaplain position and I believed that position was a necessity.
Chairman Raggio:
The next budget account is the Commissioner for Veterans Affairs.
Commissioner for Veterans Affairs – Budget Page VETERAN-1 (Volume 3)
Budget Account 101-2560
Rick Combs, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau (Mr. Combs read from the Closing List, Exhibit F, page 1):
The subcommittee approved the continuation of 3 new positions that were approved by the IFC as temporary positions and $13,408 in FY 2002 and $16,029 in FY 2003 for costs to provide janitorial services and electricity for the new chapel and to water and fertilize the additional improved acreage at the cemetery.
The subcommittee approved $78,415 in FY 2002 and $43,725 in FY 2003 for the replacement of equipment at the Office of Veterans’ Services and the two state Veterans’ cemeteries, but reduced the costs for 2 dump trucks from $40,000 each to $27,000 each. The subcommittee also approved $10,323 in FY 2002 and $30,708 in FY 2003 for the purchase of new equipment for the agency’s office in Las Vegas and the two veterans’ cemeteries.
Senator Jacobsen:
I have a couple of comments, Mr. Chairman. The dump trucks were quite an expensive item. Currently we are using surplus equipment from the Department of Transportation. I did not see the need for a $40,000 piece of equipment, so we reduced the amount to $27,000. However, at that price these trucks will be new equipment for the use of grave burials.
I also want to commend the southern veteran’s cemetery on the new chapel. I have been there a couple of time and it is absolutely beautiful and you can conduct two services simultaneously, side-by-side. The community should be commended because much of the funds were raised by private donations.
The cemetery is especially noteworthy because of its beauty. The women inmate crews have been working there, and they have started a new process making cement plaques with information of those that are buried.
Chairman Raggio:
Apparently, there have been 10,000 burials there now in southern Nevada. On the Fernley site, the entrance to that site is the most unsightly and uninviting facility. Is there anything that can be done to get an easement for a better entrance to that cemetery?
Senator Jacobsen:
I have to admit, it is a disaster. I have a meeting scheduled for tomorrow. One of the sad things that happened is both our chairman and vice chairman have left their position and we have no people on this project. They will be picking new appointments for those positions. The road has been a controversy because the county commissioners agreed initially to pave the entrance way, but with added complications, the matter of paving this entrance is unresolved.
Chairman Raggio:
Well, is there not a better entry that could be obtained?
Senator Jacobsen:
We could use the entry coming across the underpass that accommodates Fernley’s other cemetery. We have a proposal on the agenda tomorrow and one of the county commissioners is supposed to be there. I believe they will agree to pave it and they also have the right-of-way secured through the truck-stop, so eventually you will see a new entry way.
Chairman Raggio:
That is good, because I think it does detract from what could be a nice cemetery.
Senator Jacobsen:
I agree. One of the things I have been proud of is we did not have any sign there and so I had the inmate camp put a sign together and it is absolutely beautiful.
Chairman Raggio:
I will take a motion to close this budget.
SENATOR JACOBSEN MOVED TO CLOSE BUDGET ACCOUNT 101-2560 AS RECOMMENDED BY THE JOINT SUBCOMMITTEE ON GENERAL GOVERNMENT, INCLUDING THE PURCHASE OF TWO DUMP TRUCKS AT A COST OF $27,000.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS O’DONNELL AND RAWSON WERE ABSENT FOR THE VOTE.)
* * * * *
Veterans Home Account – Budget Page VETERAN-7 (Volume 3)
Budget Account 101-2561
Rick Combs, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau (Mr. Combs read from Exhibit F, page 2):
The subcommittee voted to significantly revise the revenue projections that were included in The Executive Budget based on new projections provided by the Office of Veterans’ Services. The office provided the new projections after the subcommittee expressed concerns that certain non-General Fund revenue sources included in The Executive Budget may have been overstated.
The Veterans’ Home has decided not to accept Medicaid residents for the first 6 months of FY 2002. When the home does commence admitting Medicaid residents to the facility, it plans to do so using a reimbursement methodology based on the actual costs to operate the home rather than the prospective rate methodology that is used by private nursing care facilities in Nevada. The Office of Veterans’ Services has determined that delaying the receipt of Medicaid revenue while a state Medicaid plan change is sought will ultimately result in more Medicaid funding for the home because a majority of residents entering the home will receive per diem and aid and attendance payments from the federal government that will be offset against the Medicaid daily reimbursement rate. Under the cost reimbursement methodology, the home believes it will receive significantly more Medicaid revenue.
In addition to delaying the admission of Medicaid residents until January 2002, the home has also lowered its projected occupancy rate from 80 percent of available beds to 70 percent of available beds based on the revised August 2001 opening date for the home and information received from Nevada Medicaid regarding vacancy rates at other long-term care facilities in Nevada.
The subcommittee voted to reduce the amount of revenue that the home would be required to collect as a co-payment from residents. The subcommittee also voted to increase the General Fund appropriation in FY 2002 by $155,302 to authorize the home to accept non-wartime veterans in the first year of operation.
Chairman Raggio:
Why is there a difference?
Mr. Combs:
The projections that were provided by the agency on May 8, 2001, showed that all but two of the residents that would be admitted to the facility in the first year would be receiving what is called “aid and attendance” payments. Those payments are only available to wartime veterans. Since about 80 percent of the veteran population is considered wartime veterans, staff recommended to the subcommittee that unless they wanted to exclude non-wartime veterans in the first year, it would be reasonable to add General Fund appropriations to allow them authority to accept the non-wartime veterans the first year. That ended up being a reduction of 20 percent in the amount that was budgeted for aid and attendance payments and a corresponding increase to the General Fund.
The subcommittee voted to approve $406,281 in FY 2002 and $417,592 in FY 2003 to provide additional funding for laboratory services, drug testing of employees, and contract physical therapy, occupational therapy, and speech pathology services as recommended in The Executive Budget. Based on a comparison of past utility costs for the Desert Regional Center and the Boulder City Hospital, the subcommittee also voted to increase utility expenditures by $54,077 in FY 2002 and $50,309 in FY 2003 from the amount recommended in The Executive Budget.
Senator Jacobsen:
I should indicate that I serve as Chairman of the Nevada Veterans’ Services Commission and I am concerned about the Veterans’ Home. Its ultimate opening, which has been delayed three or four times, has been a concern. I have been there five times and I am pleased with the construction, which is adequate. We were criticized because of downsizing, which we did mostly because of not having sufficient funds to go “full-board.” We toured a number of other new Veterans’ facilities, trying to maintain the best. Some of you are aware Ed Gobel was very critical of our operation and indicated that we deceived not only the veterans, but the people of this state. There is no truth in that. We worked our hearts out to try to put this all together.
One of the items I might mention is that Chuck Abbott was the first one to leave us 2 years ago as a veterans’ commissioner, and then Ray Alcorn, former commanding officer of Fallon Naval Air Force Base. Commander Alcorn retired just recently because of ill health. He was a captive in Vietnam for 7 years, so that was understandable. We now have Chuck Fulkerson, who is a former member of the National Guard.
We have been on top of everything as far as I am concerned. We hired a director for the Veterans’ Home and, of course, we received criticism for that decision because Mr. Fulkerson was not certified or licensed. Mr. Fulkerson is more than qualified and he has been before this committee and has effectively represented the home.
I am sorry Senator O’Donnell is not here this morning because he was very critical of some of the decisions we had to make. I want to indicate this is the first Veterans’ Home we will have and so we did not have experience to go by. I thought we did the best we could do, and I think we are on top of the problems that exist. However, I am pleased with the progress made. We did not deceive anyone, which criticism hurt my feelings because I thought we put forth a great effort. The advisory committee is active and we have covered all of our bases and will continue to do so.
Chairman Raggio:
I will accept a motion to close this account.
SENATOR JACOBSEN MOVED TO CLOSE BUDGET ACCOUNT 101-2561 AS RECOMMENDED BY THE JOINT SUBCOMMITTEE ON GENERAL GOVERNMENT.
SENATOR NEAL SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS O’DONNELL AND RAWSON WERE ABSENT FOR THE VOTE.)
* * * * *
Senator Jacobsen:
The agency never had time to have a hearing on selecting a site for the northern part of the state. I had a thought that we could assign that project to the veterans’ commissioner. In the meantime, during the next 2 years that individual could come back to the Legislature next session with the recommendation of a proposed site. If we had any desire we could add a few dollars to his budget, or possibly there is sufficient funding in the account to allow the veterans’ commissioner to survey the veterans’ organizations and pick a site.
Chairman Raggio:
Do we need a Veterans’ Home in the north when you have the Veterans’ Hospital?
Senator Jacobsen:
I do not know. The veterans’ commissioner could make that recommendation.
Chairman Raggio:
Senator Jacobsen, would you ask the veterans’ commissioner what would be needed.
Senator Jacobsen:
That would be an easier way to handle it and go from there, realizing the federal government puts in 65 percent of the funding.
Chairman Raggio:
We ended up with less federal money on this project because the Veterans’ Home ended up with more state funding than we anticipated. Well, please ask the veterans’ commissioner about that issue. Let us go to the next budget.
Colorado River Commission – Budget Page CRC-1 (Volume 3)
Budget Account 296-4490
Jim Rodriguez, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau (Mr. Rodriguez read from the Colorado River Commission Closing List, Exhibit G, page 1):
The joint subcommittee voted to close the Colorado River Commission (CRC) budget account as recommended by the Governor with few modifications. In closing the budget of the CRC, the subcommittee provided approximately $1.2 million in additional funding to support the commission’s anticipated water and power research activities along the Colorado River.
Chairman Raggio:
Next time, if the action follows, they will not be under the State Budget Act, will they? They will still come to the Legislature for approval?
Mr. Rodriguez:
That is correct, Mr. Chairman.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 296-4490 AS RECOMMENDED BY THE JOINT SUBCOMMITTEE ON PUBLIC SAFETY, NATURAL RESOURCES AND TRANSPORTATION.
SENATOR NEAL SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR O’DONNELL WAS ABSENT FOR THE VOTE.)
* * * * *
DEPARTMENT OF TRANSPORTATION
Transportation Administration – Budget Page NDOT-1 (Volume 3)
Budget Account 201-4660
Jim Rodriguez, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau (Mr. Rodriguez read from The Nevada Department of Transportation Closing List, Exhibit h, page 1):
The joint subcommittee approved the budget as recommended by the Governor, subject to recommendations for technical adjustments proposed by committee staff.
Technical adjustments were made to the department’s equipment request, which reduced the cost for duplication. Adjustments were made to reflect current market prices, and the department concurred in the reevaluation. These adjustments resulted in a cost savings to the State Highway Fund of $745,651 over the biennium.
The subcommittee approved the Governor’s recommendation to authorize DOT to issue $322.2 million in bonds to fund its super projects. However, the subcommittee did express concern over the level of debt the state would be assuming.
Chairman Raggio:
I will take a motion.
SENATOR JACOBSEN MOVED TO CLOSE BUDGET ACCOUNT 201-4660 AS RECOMMENDED BY THE JOINT SUBCOMMITTEE ON PUBLIC SAFETY, NATURAL RESOURCES AND TRANSPORTATION.
SENATOR RAWSON SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR O’DONNELL WAS ABSENT FOR THE VOTE.)
* * * * *
DEPARTMENT OF TAXATION
Department of Taxation – Budget Page TAX-1 (Volume 1)
Budget Account 101-2361
Russell Guindon, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau (Mr. Guindon read from Exhibit I, page 1):
The subcommittee recommended closing the Department of Taxation budget as recommended by the Governor with technical adjustments, with the exception of the transfer of the Fuel Tax Collection Program. The subcommittee recommends delaying the transfer of this program from the Department of Taxation to the Department of Motor Vehicles and Public Safety (DMV&PS) by 6 months, generating a General Fund savings of approximately $740,000 in FY 2001-2002. The subcommittee recommends the transfer of 4 Information Systems Specialists from the Department of Information Technology to the Department of Taxation as recommended by the Governor.
Approved enhancements by the subcommittee include funding for the increased costs of printing cigarette stamps and software license renewal expenses not included in The Executive Budget. The department’s software license renewal funding request included $57,000 for its website software. The subcommittee was concerned with the vendor’s quoted renewal price of $57,000 for a 2-year contract, given the department originally paid only $35,000 to purchase the license for this software. The department has provided information that the vendor will accept $15,000 in FY 2002 and $10,000 in FY 2003, and the fee will remain at $10,000 each year thereafter. The Senate Committee on Finance will have to decide whether to approve funding of $25,000 for the 2001-2003 biennium for the license renewal of this website software.
Chairman Raggio:
I am not clear about how they would operate without this software.
Mr. Guindon:
The software actually allows the agency to manage the “frequently asked question” section of their website, as well as other things. If they do not have the software, then they would have to attempt to go to a manually-based method of maintaining this particular section of their website.
Chairman Raggio:
It sounds as if they will have to have the software.
Mr. Guindon:
I believe so, and given the significant reduction from the original quote to their current quote, I believe the software purchase is reasonable.
Mr. Ghiggeri:
The corresponding action for the transfer of the gas tax has not occurred on the “motor vehicle” side and, I believe, the Assembly Committee on Ways and Means has deferred action on that pending review of that issue on the “motor carrier” side. I think you can close this budget and approve everything except that one portion. Just hold the transfer of the gas tax portion and go ahead with everything else including the software price change.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101-2361 AS RECOMMENDED BY THE JOINT SUBCOMMITTEE ON PUBLIC SAFETY, NATURAL RESOURCES AND TRANSPORTATION SUBJECT TO STAFF RECOMMENDATIONS, TO INCLUDE $25,000 FOR THE 2001-2003 BIENNIUM FOR LICENSE RENEWAL OF THE AGENCY WEBSITE SOFTWARE, AND TO DEFER ACTION ON THE TRANSFER OF THE GAS TAX.
SENATOR MATHEWS SECONDED THE MOTION.
Senator Coffin:
I sit on the Senate Committee on Taxation, along with Senator Neal. We have found some problems with the department’s ability to handle returns and matters relating to computers. It relates to their inability to compute, scan and do other matters. I thought the department was catching up in their abilities, but I found out we cannot optically scan returns, which bothers me. Mr. Guindon, in the subcommittee meetings, was there discussion about these large deficiencies? What is the department’s future plan?
Mr. Guindon:
Senator Coffin, your question refers to Assembly Bill 519, which is a “one‑shot” appropriation, to allow the department funding to develop a new computer system, as well as develop a document and imaging or scanning system to address those concerns.
ASSEMBLY BILL 519:Makes appropriation to Department of Taxation for implementation of Phase II of Business Process Re-Engineering Project. (BDR S-1429)
Senator Coffin:
How much was that?
Mr. Guindon:
The “one-shot” appropriation was $1.3 million to allow them revenue to develop a new system. Then the Governor is recommending amending it by $800,000, which would be used for the document imaging scanning system.
Senator Coffin:
Mr. Guindon, in your opinion, is it a wise thing to reduce it at this point, knowing the load that is happening at the agency, and that projected legislation is on the way? Senator James’ bill would involve a tremendous workload on the department.
Mr. Guindon:
Since the bill has not actually had a hearing, I do not think at this point in time I am qualified to respond to that question. I have not had the opportunity to do the analysis on the information provided.
Senator Coffin:
But it is going to require every business to file some sort of return. So, we have to consider that possibility.
THE MOTION CARRIED. (SENATOR O’DONNELL WAS ABSENT FOR THE VOTE.)
* * * * *
UNIVERSITY AND COMMUNITY COLLEGE SYSTEM OF NEVADA
Brian Burke, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau (Mr. Burke’s comments are set forth in the Closing Report for the University and Community College System of Nevada, Exhibit J):
The joint subcommittee on Higher Education completed its review of the University and Community College System of Nevada’s (UCCSN) budgets. The subcommittee recommends numerous technical and enrollment-related adjustments to the UCCSN decision modules. The adjustments and the subcommittee’s policy recommendations are as follows:
1. Adjusted Base: The subcommittee recommends moving the former equity amounts from the special projects account to the individual campus budgets. The subcommittee also recommends technical corrections to fund Great Basin College (GBC) and Western Nevada Community College (WNCC) personnel shortfalls.
2. Student Enrollments: With the exception of University of Nevada, Reno (UNR) and GBC, recently projected enrollments are substantially lower than those used in calculating the Governor’s budget. System-wide, enrollment projections are reduced by 2,481 FTE in FY 2002 and 3,384 FTE in FY 2003.
3. Formula Calculations: Based on revised FTEs and headcounts, the formula amounts calculated at the 85.75 and 84.59 percent levels are reduced by $10.9 million in FY 2002 and $13.9 million in FY 2003.
4. Revenue Reprojections and General Fund Adjustments: The subcommittee amended revenue calculations in The Executive Budget and adjusted revenue projections based upon actual FY 2001 revenue data. For the biennium, the subcommittee’s actions reduce General Fund appropriations by $17.5 million and UCCSN revenues by $7.3 million at the 85.75 and 84.59 percent formula levels.
5. Student Credit Hour Miscalculation: UCCSN’s agency-requested budget miscalculated the conversion of student credit hours into FTE students for UNR and University of Nevada, Las Vegas (UNLV). To correct the conversion error, the subcommittee recommends General Fund additions of $1.85 million in FY 2002 and $1.59 million in FY 2003.
6. Community Colleges Equipment Formula: The new funding formulas include instructional equipment funding of $3,500 per existing community college faculty FTE position. The Executive Budget excluded funding for existing part-time positions. To correct this omission, the subcommittee recommends General Fund additions of $2.12 million in FY 2002 and $2.09 million in FY 2003.
7. New Space (Operations and Maintenance): Subsequent to the transmission of The Executive Budget, there were numerous changes to the new space schedules. Anticipated occupancy dates were delayed and square footage estimates reduced, resulting in new space General Fund cost savings of $1.44 million for the biennium.
8. Recharge: The subcommittee recommends additional General Fund appropriations to UNR of $1.71 million for the biennium to correct the omission of support for recharge distribution.
9. New Space Rental: The Governor recommends funding for new space rent for System Administration, GBC and Truckee Meadows Community College (TMCC). The proposed new space includes 30,000 square feet to expand programs at TMCC’s Edison Campus and conversion of the Old Town Mall lease to a master lease-purchase. The subcommittee recommends adjustments of $6,468 in FY 2002 and $6,786 in FY 2003 to correct the system administration lease amount.
10. Utilities: UCCSN estimates there will be a systemwide utility funding shortfall of approximately $5.57 million in FY 2002 and $6.68 million in FY 2003. The subcommittee deferred action on additional utility funding pending consideration of the issue on a statewide basis.
11. System Computer Services: The subcommittee recommends approval of funding for systemwide technology capacity improvements with adjustments that reduce ongoing costs by $72,270 for the biennium.
12. Law School Growth: The subcommittee concurs with the Governor’s recommendation of $841,262 in FY 2002 and $1.06 million in FY 2003 for anticipated law school enrollment growth.
13. Dental School: The Executive Budget provided no General Fun or estate tax support for the dental school. UNLV indicated the minimum level of state support needed to operate the dental school is $1.41 million in FY 2002 and $2.12 million in FY 2003. On May 10, 2001, the Board of Regents approved a proposal to add $3.52 million in estate tax funds for dental school operations. The subcommittee recommends approval of the additional estate tax support as recommended by the Board of Regents.
14. Decision unit M-594, Gender Equity: The Governor recommends General Fund appropriations of $1.075 million in FY 2002 and $1.083 million in FY 2003 to improve Title IX compliance. UCCSN amended its request and proposed equal allocations of $537,500 in FY 2002 and $541,438 in FY 2003 for UNR and UNLV.
15. FTE Positions: The subcommittee recommends authorizing staff to adjust FTE position counts based upon closing decisions.
16. Performance Funding: The subcommittee recommends denial of the Governor’s $3 million performance funding recommendation. However, the subcommittee concurs with the Board of Regents’ revised request that redirects $3 million of estate tax revenues to the Experimental Program for the Stimulation of Competitive Research (EPSCoR) match.
17. Student Fees: The subcommittee concurs with the recommended fee and tuition increase of more than 3 percent per year at UCCSN campuses and the $1 and 50 cent allocations to the capital and general improvement budgets. The subcommittee concurs with UCCSN’s amended proposal to increase nonresident tuition by $335 per year at the universities and $25 per credit for part-time nonresident college students to generate $1.5 million in additional revenues in FY 2003. The subcommittee recommends an increase in UNLV law school tuition of 3.5 percent in FY 2003 resulting in additional fee revenues of $87,088.
18. Nevada State College at Henderson: The subcommittee recommends approval of funding for Nevada State College (NSC) at Henderson. However, the subcommittee recommends reducing funding for instructional and related costs to a total of $4.44 million in FY 2003. The reduced funding would allow NSC’s first classes to begin in the fall of 2002 with an estimated enrollment of 500 FTE students rather than the 1,000 FTE students included in The Executive Budget.
19. Special Projects Cost of Living Increases: The subcommittee recommends additional General Fund appropriations of $13,219 in FY 2002 and $27,039 in FY 2003 and estate tax funds of $356,415 in FY 2002 and $731,850 in FY 2003, to provide cost of living adjustments (COLA) for the positions assigned to the special projects budget.
20. Course Classification (Taxonomy): The subcommittee recommends a Letter of Intent directing UCCSN to develop a consistent course taxonomy during the interim with quarterly reports on the progress of the analysis commencing January 2002.
21. Formula Reduction Scenario: The Governor’s staff and UCCSN worked jointly to develop a reduction scenario that cuts formula funding from 85.75 percent to 81.55 percent in FY 2002, and from 84.59 percent to 80.29 percent in FY 2003, but adds the General Fund appropriations needed to bring professional COLAs to 4 percent. The subcommittee concurs with the formula cuts that would result in net General Fund reductions of $14.5 million in FY 2003 and $11.3 million in FY 2003. The subcommittee recommends estate tax revenues to fund the “hold harmless” amounts to $6.92 million in FY 2002 and $6.76 million in FY 2003.
22. Board of Regents’ Proposals: The subcommittee concurs with the Regents’ requests to add estate tax revenue to provide $1 million for an emergency fund; $656,600 in FY 2002 and $743,400 in FY 2003 for the William S. Boyd School Law School clinic on the UNLV campus; and $130,000 per year for the ongoing baccalaureate programs at GBC. UCCSN must approach IFC for approval of allocations from the $1 million emergency fund pool.
23. Subcommittee Amendments: During the May 11, 2001, closing hearing, the subcommittee added funding for several items including: estate tax revenues of $253,500 in FY 2002 and $493,200 in FY 2003 for UNRs End of Life Program; estate tax revenues of $334,417 per year for the School of Medicine General Practice Residency; General Fund appropriations of $97,821 per year to support the UNLV radio station; and a General Fund appropriation of $152,158 in FY 2003 for the Basque Studies program.
The subcommittee’s actions result in General Fund reductions of $18.1 million in FY 2002 and $20.2 million in FY 2003 for a biennial General Fund reduction of $38.3 million.
Chairman Raggio:
Dr. Jane A. Nichols, Chancellor, System Administration Office, University and Community College System of Nevada, requested that we take a look at whether we could use that General Fund saving instead of estate tax.
Senator Rawson:
What is the status of the Harry Reid Center?
Chairman Raggio:
The Harry Reid Center is going to be funded, and the Chancellor assured us that it would be funded from the indirect cost allocation money of $250,000. That matter was placed on the record.
They did not change the amounts on the subcommittee additions. They just changed the source of funding. Is that correct?
Mr. Burke:
That is correct, Mr. Chairman.
Senator Coffin:
Senator, you and I just discussed an issue because it is something that has recently come up since the subcommittee last met. I have talked to Assemblyman Perkins and Dr. Richard Moore, Founding President, Nevada State College, Henderson, University and Community College System of Nevada. Dr. Moore may or may not have known about this issue, and I do not know if the Board of Regents knew.
I took a trip out to the proposed campus in Henderson. In viewing the site, I took into account that we had heard objections from nearby homeowners and found that the buffer zone proposed by the City of Henderson seems to be adequate.
What I am troubled about is something the UCCSN administration did not tell us in hearing. I am not sure whether the Board of Regents did “due diligence” in selecting this proposed site after they lost the former proposed site. The issue I am alluding to deals with what I discovered in walking the property, which is the existence of a high-pressure gas line. The map provided by UCCSN did not give us sufficient landmarks to know about the construction phases of the Nevada State College, which is to be built in three phases. Phase 1 is on land owned by Henderson and phase 2 is land owned by the Bureau of Land Management.
On Monday I faxed a copy of that map to Southwest Gas and ask them to please tell me where that high-pressure gas line is located in relationship to the plans of the Nevada State College proposed site. Yesterday they forwarded a map to me, which showed that the high-pressure gas line runs in phase 1 of construction of this proposed complex. I know there are issues related to building next to these kinds of structures, much less a school.
The question is, who is responsible for moving the pipeline, if they have such a right, because the company has an easement respecting this line? I wrote Assemblyman Perkins a letter explaining the situation and how troublesome it is to me.
Senator Rawson:
Mr. Burke, do you deal with the Capital Improvement Projects (CIP)?
Mr. Burke:
Rick Combs deals with that issue.
Senator Rawson:
Would you relay to Mr. Combs the committee’s desire to have answers to Senator Coffin’s inquiry by the time we deal with the CIPs so we may pursue this issue. I would accept a motion on this budget.
Senator Neal:
Senator Coffin has raised an issue impacting this particular budget account. Are you saying you would accept a vote on closing this budget?
Senator Rawson:
What I am saying is the issue Senator Coffin raised does not affect the operating revenue, but it can be handled during review of the CIP budget. I would direct committee staff to see if they can resolve or get answers to the issue raised by Senator Coffin. They are valid concerns and need to be pursued, but they do not affect this operating budget.
Senator Coffin:
This can be taken up with CIPs, with the understanding that the budgets, if closed, and the revenue go for proper use.
Chairman Raggio:
They will not be able to use the operating money unless they actually go ahead with the operation of the school.
Don Hataway, Deputy Director, Budget Division, Department of Administration:
This is truly a CIP issue. We built the budget based on the agency ultimately going to “a site,” which may be different from that site we are talking about now. However, it is our understanding that these funds will actually be used this biennium for sharing space on existing campuses and other sites. The operating costs need to be there regardless of where the ultimate Nevada State College is going to be located. These are legitimate questions, but it is a CIP issue.
Senator Coffin:
Mr. Hataway, if it turns out there are some difficulties in building the Nevada State College on this site, can we build at the existing community college? Was that considered?
Mr. Hataway:
That option is available on the public works side of the CIP program, to build jointly with the community college site. I emphasize that the operating cost is to begin as adjusted in the second year of the next biennium with the intent of having a permanent site somewhere at some time in the future.
Chairman Raggio:
Let us do this: let us approve the action subject to the college actually being operated. The funding is there. If they do not operate, they would not use the funding. But, the other issue should be taken up when we discuss the CIPs.
Senator Neal:
What are we approving here?
Chairman Raggio:
Let us see if we can condense this. The first part of Mr. Burke’s report discussed the adjustments, different items suggested by both the staff at UCCSN and subcommittee staff. The joint interests agreed upon certain “add ons” and items to subtract. The main situation is that the formula funding was reduced from 85.75 percent and 84.59 percent to an agreed upon funding formula of 81.55 percent and 80.29 percent.
As part of that reduction, the General Fund will appropriate the money that fully funds the 4 percent professional COLAs. That was the main concern. The additional items were funded to the extent indicated, either through General Fund appropriation or estate tax funding. There was general agreement between the joint subcommittee action and UCCSN. Is that a correct statement, Mr. Burke?
Mr. Burke:
That is correct, Mr. Chairman.
Chairman Raggio:
I will take a motion to close the budget as recommended by the joint subcommittee with the additional actions that were reflected by Mr. Burke. That would change some of the funding for the subcommittee additions from the estate tax to General Fund as indicated in the End of Life program, the School of Medicine residency and then the COLA for the dental school staff from the estate tax fund, and otherwise as the joint subcommittee recommended. Is that a correct statement, Mr. Burke?
Mr. Burke:
Did you also want to include a Letter of Intent?
Chairman Raggio:
Yes, that is something we have always done. That will entitle them to come in and ask for money for the weather modification program. That would make our action consistent with the Assembly Ways and Means action. I will take a motion to that effect.
Senator Neal:
Relative to Senator Coffin’s inquiry, would that taken up with CIP closing?
Chairman Raggio:
Yes, that would be for discussion at that time.
SENATOR NEAL MOVED TO CLOSE UCCSN BUDGET ACCOUNTS AS RECOMMENDED BY THE JOINT SUBCOMMITTEE ON HIGHER EDUCATION SUBJECT TO STAFF RECOMMENDATIONS, INCLUDING REDIRECTING $3 MILLION OF ESTATE TAX REVENUE TO THE EXPERIMENTAL PROGRAM FOR THE STIMULATION OF COMPETITIVE RESEARCH MATCH; ADDING ESTATE TAX REVENUE TO PROVIDE $1 MILLION FOR AN EMERGENCY FUND, $656,600 IN FY 2002 AND $743,400 IN FY 2003 FOR THE UNLV LAW SCHOOL CLINIC, AND $130,000 PER YEAR FOR THE BACCALAUREATE PROGRAMS AT GREAT BASIN COLLEGE; A LETTER OF INTENT TO DEVELOP A CONSISTENT COURSE TAXONOMY DURING THE INTERIM WITH QUARTERLY REPORTS ON THE PROGRESS OF THE ANALYSIS COMMENCING JANUARY 2002 AND DIRECTING THE UNIVERSITY AND COMMUNITY COLLEGE SYSTEM OF NEVADA TO APPROACH THE INTERIM FINANCE COMMITTEE FOR APPROVAL OF ALLOCATIONS FROM THE $1 MILLION EMERGENCY FUND POOL.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR O’DONNELL WAS ABSENT FOR THE VOTE.)
* * * * *
Chairman Raggio adjourned the hearing at 11:07 a.m.
RESPECTFULLY SUBMITTED:
ElizaBeth Root
Committee Secretary
APPROVED BY:
Senator William J. Raggio, Chairman
DATE: