MINUTES OF THE

JOINT SENATE Committee on Finance

AND ASSEMBLY COMMITTEE ON WAYS AND MEANS

 

Seventy-First Session

May 22, 2001

 

 

The Senate Committee on Financewas called to order by Chairman William J. Raggio at 10:20 a.m., on Tuesday, May 22, 2001, in Room 4100 of the Legislative Building, Carson City, Nevada.  Exhibit A is the Agenda.  Exhibit B is the Attendance Roster.  All exhibits are available and on file at the Research Library of the Legislative Counsel Bureau.

 

SENATE COMMITTEE MEMBERS PRESENT:

 

Senator 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

 

ASSEMBLY COMMITTEE MEMBERS PRESENT:

 

Mr. Morse Arberry Jr., Chairman

Ms. Christina R. Giunchigliani

Mr. Bob Beers

Mrs. Barbara K. Cegavske

Mrs. Vonne S. Chowning

Mrs. Marcia de Braga

Mr. Joseph E. Dini, Jr.

Mr. David E. Goldwater

Mr. Lynn C. Hettrick

Ms. Sheila Leslie

Mr. John W. Marvel

Mr. David R. Parks

Mr. Richard D. Perkins

Ms. Sandra J. Tiffany

 

STAFF MEMBERS PRESENT:

 

Gary L. Ghiggeri, Senate Fiscal Analyst

Bob Guernsey, Principal Deputy Fiscal Analyst

Mark W. Stevens, Assembly Fiscal Analyst

Steven J. Abba, Principal Deputy Fiscal Analyst

Jennifer Ruedy, Committee Secretary

 

OTHERS PRESENT:

 

Don Hataway, Deputy Director, Budget Division, Department of Administration

 

 

Senator Raggio directed attention to the Nevada Legislative Counsel Bureau Differences Closing Report dated May 21, 2001 (Exhibit C).  He asked staff to indicate the closing differences between the Assembly Committee on Ways and Means (Assembly) and the Senate Committee on Finance (Senate) for each budget account to be addressed.

 

Office of the Governor – Budget Page ELECTED-1 (Volume 1)

Budget Account 101-1000

 

E-375 Environmental Policies & Programs – Page ELECTED-3

 

Gary L. Ghiggeri, Senate Fiscal Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, stated the Senate closed the Governor’s office budget by reducing the funding in this decision unit for the Science, Engineering, and Technology function by $50,000 per year.

 

M-200 Demographics/Caseload Changes – Page ELECTED-2

 

Mark W. Stevens, Assembly Fiscal Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, stated the Assembly approved this decision unit, which provides 5 additional nonclassified, full-time positions.

 

M-201 Demographics Caseload Changes– Page ELECTED-2

 

Mr. Stevens pointed out the Assembly did not approve decision unit M-201, which provides for the creation of the Family Resources Program.

 

E-375 Environmental Policies & Programs – Page ELECTED-3

 

Mr. Stevens said the Assembly eliminated all of the funding in this decision unit for the Science, Engineering, and Technology function.

 

Senator Raggio asked whether there was any potential for agreement on this budget account.  Ms. Giunchigliani suggested the Senate concur with the Assembly decision to eliminate decision unit M-201 and the Assembly concur with the Senate decision regarding decision unit E-375.

 

Senator Raggio stated that appears to be a reasonable compromise and inquired whether the Senate members would concur with the proposal.

 

SENATOR NEAL MOVED TO CONCUR WITH THE ASSEMBLY’S ACTION TO ELIMINATE DECISION UNIT M-201.

 

SENATOR JACOBSEN SECONDED THE MOTION.

 

THE MOTION CARRIED UNANIMOUSLY.

 

*****

 

MS. GIUNCHIGLIANI MOVED TO CONCUR WITH THE SENATE’S ACTION BY FUNDING DECISION UNIT E-375.

 

MR. HETTRICK SECONDED THE MOTION.

 

THE MOTION CARRIED UNANIMOUSLY.

 

*****

 

Senator Raggio stated Senate and Assembly are in concurrence on the Office of the Governor budget account.

 

Mansion Maintenance – Budget Page ELECTED-5 (Volume 1)

Budget Account 101-1001

 

Senator Raggio pointed out that Senator Jacobsen discovered a need for some chandelier lighting and dishes that had not been requested for the mansion.  Therefore, he said, Senate included $1,400 in the budget for that purpose.  Mr. Arberry said that appears reasonable.

 

MR. MARVEL MOVED TO CONCUR WITH THE SENATE’S ACTION PROVIDING AN ADDITIONAL $1,400 IN BUDGET ACCOUNT 101-1001.

 

MS. GIUNCHIGLIANI SECONDED THE MOTION.

 

THE MOTION CARRIED UNANIMOUSLY.

 

*****

 

Senator Raggio stated Senate and Assembly are in concurrence in the Mansion Maintenance budget account.

 

Gov, Office of Consumer Health Assistance –Budget Page ELECTED-13 (Volume 1)

Budget Account 101-1003

 

Mr. Ghiggeri stated Senate closed this budget in concurrence with the Governor’s recommendation to consolidate this office with the Commission for Hospital Patients.  He pointed out Senate Bill (S.B.) 573 has been introduced to facilitate this transfer.

 

SENATE BILL 573:  Transfers office for hospital patients from department of business and industry to office of governor. (BDR 18-1545)

 

Senator Raggio said he believes this is the only difference between the closings of the two committees.  He asked Don Hataway, Deputy Director, Budget Division, Department of Administration, to provide further explanation of the transfer.

 

Mr. Hataway stated the process began at the end of the 1999 Legislature during consideration of the privatization of the Employees Insurance Company of Nevada (EICON) at which time the Office of Consumer Health Protection was created in the Office of the Governor.  The Budget Division and the Governor questioned the status of the Commission for Hospital Patients when the Office of Consumer Health Protection was created because of the similarity of the two programs.  He explained the Budget Division was told by the Legislature that it would be “a cleanup issue, not necessarily automatically approved, but a cleanup issue for this session.”  He said The Governor’s Steering Committee to Conduct a Fundamental Review of State Government decided that it made sense to consolidate services to the consumer in the health area in one location.  He said the proposal is to merge a 2-person office into an 8-person office to provide a single location for citizens to contact the state for assistance in hospital bill disputes, Medicaid issues, and other related matters.

Mrs. Chowning said Office of Consumer Health Protection is currently functioning very well and citizens know where to access assistance now.  She said she does not believe the current office should be eliminated.  She pointed out the separate budget accounts are easier to track.

 

Mr. Hataway stated it has never been an issue of whether the two offices were providing good service.  He said the consolidation was proposed because it made sense “to have a single locus of contact for consumers of this state.  We can still track the services they are providing.”  He said testimony at a past hearing indicated the Office of Consumer Health Protection had referred telephone calls to the Commission for Hospital Patients on several occasions because the assistance needed was within the commission’s realm of services.  He commented, “If you are interested in maintaining the status quo, fine.  But we felt that it made more sense to have a single office serving in this area.”

 

Senator Rawson commented this is the most common area for complaints from constituents, and he said a single locus for these services makes sense.  He articulated the consolidation completes what the Legislature started with the creation of the Office of Consumer Health Protection last session.  He reiterated this is a consolidation, not an elimination of any services.

 

Mr. Arberry said this issue would be held at this time.

 

Controller’s Office – Budget Page ELECTED-76 (Volume 1)

Budget Account 101-1130

 

Mr. Ghiggeri stated Senate closed this budget with the addition of a Management Assistant to provide clerical assistance throughout the State Controller’s office, but primarily in debt collection.

 

Senator Raggio pointed out the measure that authorizes state agencies to assign debt collection responsibilities to the State Controller’s office was recently passed, so the additional position would make sense.

 

Mr. Arberry said this issue would be held at this time.

 

Secretary of State – Budget Page ELECTED-81 (Volume 1)

Budget Account 101-1050

 

Mr. Ghiggeri articulated the Senate approved the Secretary of State budget as recommended by the Governor with 18 new positions and 2 additional positions for the Elections Division that were requested later by the office.  He said Senate reduced the software maintenance costs to zero in FY 2002 and $170,000 in FY 2003.

 

Mr. Stevens stated the Assembly approved 10 of the 20 new positions requested by the Secretary of State.  He added the Assembly approved software maintenance funding in the amounts of $140,000 in FY 2002 and $180,000 in FY 2003.

 

Senator Raggio stated there were additional discussions with the Secretary of State regarding which of the requested positions were essential.  He suggested another discussion with the Secretary of State might be necessary before addressing this matter in committee.  He stated the matter should be held.

 

Ms. Giunchigliani commented she agrees it is a good idea to wait for better justification from the Secretary of State for the 20 requested positions.  She asked whether Senate would consider concurring with the Assembly in the matter of software maintenance funding.  Senator Raggio said he would prefer to consult with the Secretary of State before taking further action on this budget.

 

State Treasurer – Budget Page ELECTED-88 (Volume 1)

Budget Account 101-1080

 

Mr. Ghiggeri stated Senate closed this budget by reducing the funding to the most current price available for the requested file server.

 

Mr. Stevens articulated the Assembly did not approve the requested file server.  He pointed out the current file server had been replaced only one year prior, so a new server was not necessary at this time.  He suggested a compromise might be to provide the server at a reduced price in the second year of the biennium.

 

Mr. Beers commented he met with representatives of the State Treasurer’s office several times to discuss this issue, and he believes providing the new file server in the second year of the biennium is appropriate.  He said the State Treasurer still has to integrate the “unclaimed property server into their suite, which they will be inheriting when they take over that office.”  Therefore, he suggested the new file server would be more appropriate for the second year of the biennium to allow the office sufficient time to complete that integration.  He noted the price for the new server is slightly more than the cost of new servers because it also includes specific software components that the office needs as well. 

 

MR. BEERS MOVED TO APPROVE FUNDING AT THE REDUCED COST FOR THE NEW FILE SERVER TO BE EFFECTIVE FOR THE SECOND YEAR OF THE BIENNIUM FOR BUDGET ACCOUNT 101-1080.

 

MR. MARVEL SECONDED THE MOTION.

 

THE MOTION CARRIED UNANIMOUSLY.

 

*****

 

Senator Raggio indicated he would accept a motion to concur with the Assembly action.

 

SENATOR RAWSON MOVED TO CONCUR WITH THE ASSEMBLY’S ACTION TO FUND THE NEW FILE SERVER AT THE REDUCED RATE IN THE SECOND YEAR OF THE 2002 – 03 BIENNIUM.

 

SENATOR JACOBSEN SECONDED THE MOTION.

 

THE MOTION CARRIED UNANIMOUSLY.

 

*****

 

Senator Raggio stated the actions of the Senate and Assembly are in concurrence and budget account 101-1080 is closed.

 

Proficiency Testing – Budget Page K12 ED-32 (Volume 1)

Budget Account 101-2697

 

Mr. Stevens stated the Assembly closed this budget account with an additional $500,000 for development and implementation of alternative assessments in lieu of high school proficiency exams for pupils with disabilities and for pupils whose primary language is not English.  He said the Assembly concurred with the joint subcommittee recommendation in closing this account.

 

Senator Raggio indicated this budget would be held.

 

W.I.C.H.E. Loan & Stipend – Budget Page WICHE-1 (Volume 1)

Budget Account 614-2681

 

Mr. Ghiggeri articulated the Senate closed this budget as recommended by the Governor.  He said Senate approved a $225,000 balance forward from FY 2001 to FY 2002 to fund professional slots in the fields of nursing, teaching, and mental health. 

 

Senator Raggio inquired how many slots that would fund.  Mr. Ghiggeri responded that 15 slots would be funded in each year of the biennium at a cost of $75,000 in FY 2002 and $150,000 in FY 2003.  He pointed out the Senate provided for a $50,000 reserve at the end of FY 2003.

 

Senator Raggio added the Senate also approved continuing the physical therapy slots.  Mr. Ghiggeri agreed that was true.

 

Mr. Stevens said the Assembly approved the balance forward of the entire reserve, which is approximately $550,000, and reduced General Fund appropriations in FY 2002.  He articulated that Assembly deleted the new physical therapy slots because of the program at University of Nevada, Las Vegas (UNLV) and applied that savings to 10 new nursing slots in each year of the biennium.  He stated the Assembly approved the reserve level in the second year of the biennium as recommended by the Governor.

 

Senator Raggio commented there are members from both the Senate and Assembly have a strong interest in this budget account.  He suggested this account should be held to allow those members to discuss these matters further.

 

Budget and Planning – Budget Page ADMIN-1 (Volume 1)

Budget Account 101-1340

 

E-275 Working Environment & Wage – Page ADMIN-4

 

Mr. Ghiggeri articulated Senate closed this budget by funding 1 Public Service Intern II position as recommended by the Governor.  Senator Raggio stated this is the only difference in this budget.  Mr. Stevens agreed.

 

Mrs. Chowning commented the Assembly did not believe the 1 Public Service Intern II position was of vital importance.  However, she added, the Assembly approved expenditures for overtime, so part-time personnel could be hired to assist during preparation of the budget.  She said she does not believe the intern position was “fought for in any way.”

 

Senator Raggio asked Mr. Hataway to comment on the intended purpose of the intern position.  Mr. Hataway said the Budget Division has been fortunate to have the assistance of numerous interns in the past few years for specific projects.  He said most of the interns have come from the University of Nevada, Reno (UNR), and the last intern did a statistical abstract for the division for college credit.  He noted the funding requested was intended to hire more than 1 intern for specific projects as they arise.  He said it is not the highest funding priority for the division, but it would raise the division’s activities to a higher level.

 

Mr. Arberry indicated he would accept a motion to concur with the Senate’s action on decision unit E-275.

 

MRS. CHOWNING MOVED TO CONCUR WITH THE SENATE’S ACTION TO FUND THE PUBLIC SERVICE INTERN II POSITION IN DECISION UNIT E-375 OF BUDGET ACCOUNT 101-1340.

 

MS. GIUNCHIGLIANI SECONDED THE MOTION.

 

THE MOTION CARRIED UNANIMOUSLY.

 

*****

 

Senator Raggio stated the committees are in concurrence on budget account 101‑1340.  He suggested the next two budgets should be reviewed together.

 

Agri, Nevada Junior Livestock Show Board – Budget Page AGRI-84 (Volume 1)

Budget Account 101-4980

 

Agri, High School Rodeo Association – Budget Page AGRI-87 (Volume 1)

Budget Account 101-1341

 

Mr. Ghiggeri stated Senate approved website maintenance funding for both of the budget accounts.  He said that, subsequent to the approval by the Senate, the Department of Information Technology (DoIT) revised their cost allocation.  He added the maintenance funding amounts have been reduced to $909 in FY 2002 and $1,116 in FY 2003.

 

Senator Raggio articulated there were no other differences in these two budget accounts.  Mr. Stevens agreed.

 

Mrs. de Braga said she believes the websites are unnecessary because both organizations could utilize the websites of their parent organizations to disseminate information without charge.

 

Senator Raggio asked the committee members from the rural counties whether they believe this funding is necessary.  Mrs. de Braga said both organizations have less expensive options to provide the same service, and she said she believes it is unnecessary.  Senator Jacobsen offered his opinion these projects are important to the rural areas.

 

Ms. Giunchigliani said she believes local participants in these organizations will not utilize a state website in lieu of the parent organization’s website.  She said the Assembly decided the state-operated websites were not necessary.

 

Mrs. Chowning said this money could remain in these budgets to be utilized in some other way to benefit the children in lieu of funding these websites.  She noted both budgets are very small, and the website funding constitutes approximately 14 percent of the total budgets.

 

Senator Raggio indicated he would accept a motion to concur with the Assembly on both of these budgets.

 

SENATOR NEAL MOVED TO CONCUR WITH THE ASSEMBLY’S ACTION ON BUDGET ACCOUNTS 101-4980 AND 101-1341 TO DELETE FUNDING FOR WEBSITE MAINTENANCE.

 

SENATOR O’DONNELL SECONDED THE MOTION.

 

THE MOTION CARRIED UNANIMOUSLY.

 

*****

 

Nevada Magazine – Budget Page ECON DEV & TOURISM-30 (Volume 2)

Budget Account 530-1530

 

Mr. Ghiggeri stated the Senate closed this budget with the Governor recommended funding for both out-of-state and in-state travel at the FY 2000 and FY 2001 work program levels.

 

Mr. Stevens articulated the Assembly closed this budget with the recommended funding for in-state travel at the FY 2000 actual level of $2,948 in lieu of the $5,091 requested.  He said there were no expenditures for out-of-state funding in the actual year, so the Assembly recommended $1,200 in lieu of the $4,000 amount requested.

 

Senator Raggio indicated he would accept a motion to concur with the Assembly’s action on budget account 530-1530.

 

SENATOR NEAL MOVED TO CONCUR WITH THE ASSEMBLY’S ACTION ON BUDGET ACCOUNT 530-1530 TO REDUCE FUNDING FOR OUT-OF-STATE AND IN-STATE TRAVEL FOR FISCAL YEARS 2002 AND 2003.

 

SENATOR JACOBSEN SECONDED THE MOTION.

 

THE MOTION CARRIED UNANIMOUSLY.

 

*****

 

Senator Raggio stated budget account 530-1530 is closed in concurrence with the Assembly.

HR-DIR, Community Based Services – Budget Page HR ADMIN-40 (Volume 2)

Budget Account 101-3266

 

Mr. Ghiggeri articulated the Senate closed this budget by adding approximately $134,000 in FY 2002 and approximately $138,000 in FY 2003 to provide for an increase in the hourly rate paid to personal service attendants to equalize that rate with the Medicaid rate, which is approximately $17 per hour.

 

Senator Raggio commented the Senate believed the state reimbursement rate for personal service attendants should be consistent with the Medicaid rate.

 

Ms. Giunchigliani noted the Assembly placed this measure on their priority list because they wanted to provide a consistent rate, but they were uncertain whether funding would be available. 

 

MS. GIUNCHIGLIANI MOVED TO CONCUR WITH THE SENATE’S ACTION TO INCREASE FUNDING TO ALLOW FOR AN HOURLY REIMBURSEMENT RATE FOR PERSONAL SERVICE ATTENDANTS CONSISTENT WITH THE MEDICAID RATE.

 

MR. PARKS SECONDED THE MOTION.

 

THE MOTION CARRIED UNANIMOUSLY.

 

*****

 

High Desert State Prison – Budget Page PRISONS-73 (Volume 3)

Budget Account 101-3762

 

Mr. Ghiggeri stated the Senate closed this budget as recommended by the Governor including funding for 1 Maintenance Repair Specialist II.

 

Mr. Stevens indicated the Assembly did not fund the position and this is the only difference between in this budget account.

 

Mr. Ghiggeri explained this position was originally requested to supervise inmates and perform work assignments, but the prison later clarified the position will be used as a locksmith.  Senator O’Donnell stated there is a definite need for a locksmith in a prison facility.

 

Senator Raggio indicated he would accept a motion to concur with the Assembly action on this budget account.

 

SENATOR JACOBSEN MOVED TO CONCUR WITH THE ASSEMBLY’S ACTION ON BUDGET ACCOUNT 101-3762 TO DELETE FUNDING FOR 1 MAINTENANCE REPAIR SPECIALIST II.

 

SENATOR NEAL SECONDED THE MOTION.

 

THE MOTION CARRIED.  (SENATOR O’DONNELL VOTED NO.)

 

*****

 

SENATE BILL 193:  Makes various changes concerning department of prisons. (BDR 16-311)

 

Senator Neal articulated S.B. 193, which would change the names of prisons to correctional institutions, is currently pending.  He questioned whether any additional funds should be included in the budget account to provide for the name change if it is approved.

 

Senator Raggio said cost of the name change should be addressed within the bill, and funding does not need to be included in the budget.

 

Dep Waste Mgmt and Federal Facilities – Budget Page CNR-27 (Volume 3)

Budget Account 101-3187

 

Mr. Ghiggeri stated the differences result from Senate closing the budget as the Governor recommended, to transfer funding from the traditional categories for out‑of-state travel, in-state travel, and operating into 13 special-use categories to facilitate the agency’s accounting for the different programs in operation.

 

Mr. Arberry indicated he would accept a motion to concur with the Senate in closing budget account 101-3187.

 

MR. DINI MOVED TO CONCUR WITH THE SENATE’S ACTION IN CLOSING BUDGET ACCOUNT 101-3187.

 

MR. MARVEL SECONDED THE MOTION.

 

THE MOTION CARRIED UNANIMOUSLY.

 

*****

 

The meeting was adjourned at 10:48 a.m.

 

 

RESPECTFULLY SUBMITTED:

 

 

 

Jennifer Ruedy

Committee Secretary

 

 

APPROVED BY:

 

 

 

                       

Senator William J. Raggio, Chairman

 

 

DATE:           

 

 

 

                       

Assemblyman Morse Arberry, Chairman

 

 

DATE: