MINUTES OF THE

budget subcommittee

OF THE LEGISLATIVE COMMISSION

 

January 25, 2001

 

 

The Budget Subcommittee of the Legislative Commission was called to order by Chairman William J. Raggio at 8:52 a.m., on January 25, 2001, in Room 1214 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

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 Ghiggeri, Senate Fiscal Analyst

Mark Stevens, Assembly Fiscal Analyst

Bob Guernsey, Principal Deputy Fiscal Analyst

Steve Abba, Principal Deputy Fiscal Analyst

Brian M. Burke, Senior Program Analyst

Georgia J. Rohrs, Program Analyst

Bob Atkinson, Program Analyst

Judy Jacobs, Committee Secretary

 

OTHERS PRESENT:

 

Dr. Jane A. Nichols, Chancellor, System Administrative Office, University and Community College System of Nevada

Daniel G. Miles, Vice Chancellor, Finance and Administration, System Administration Office, University and Community College System of Nevada

Dr. Carol C. Harter, President, University of Nevada, Las Vegas, University and Community College System of Nevada 

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

Richard J. Morgan, Dean, William S. Boyd School of Law, University of Nevada, Las Vegas, University and Community College System of Nevada

Dr. Stephen C. McFarlane, Interim President, University of Nevada, Reno, University and Community College System of Nevada

Dr. Ashok K. Dhingra, Vice President, Administration and Finance, Public Service Division, University of Nevada, Reno, University and Community College System of Nevada

Dr. Ron Remington, President, Great Basin College, Elko, University and Community College System of Nevada

Dr. Richard Moore, Founding President, Nevada State College Henderson, University and Community College System of Nevada

Dr. Rita Huneycutt, Interim President, Truckee Meadows Community College, Reno, University and Community College System of Nevada

Dr. Robert Silverman, Interim President, Community College of Southern Nevada, Las Vegas, University and Community College System of Nevada

Dr. Carol Lucey, President, Western Nevada Community College, University and Community College System of Nevada

Dr. Stephen Wells, President, Desert Research Institute, University and Community College System of Nevada

Mary Liveratti, Administrator, Aging Services Division, Department of Human Resources

Joel Pinkerton, Budget Analyst, Budget Division, Department of Administration

Yvonne Sylva, Administrator, Health Division, Department of Human Resources

Philip Weyrick, Administrative Services Officer l, Health Division, Department of Human Resources

Kevin Clint, Chairman, Bureau of Alcohol and Drug Abuse Advisory Committee 

 

After the roll call, Senator Raggio announced a quorum was present.  He requested that latecomers be indicated in attendance and that the time when they arrive be noted.  He asked Brian M. Burke, Senior Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, to present an overview of the many meetings held during the interim regarding the formula funding for the university and community college systems.  He drew attention to Legislative Counsel Bureau (LCB) Bulletin Number 01-4, entitled Committee to Study the Funding of Higher Education (Exhibit C.  Original is on file in the Research Library.).

Mr. Burke recalled that during the 1999 Legislative Session much discussion took place regarding the equity of funding formulas for higher education, which had been developed in 1986.  An equity study had been commissioned by the University and Community College System of Nevada (UCCSN) to investigate funding in Nevada and compare it to funding formulas in other states.  He said during the interim, the Committee to Study the Funding of Higher Education met seven times.  Incorporating the findings of the UCCSN study, the committee worked with two independent consultants and a working group comprised of staff from the UCCSN, LCB and Budget Division.

Mr. Burke noted the committee reported the UCCSN share of funding from the General Fund during the past 20 years had ranged from 18 to 20 percent.  However, he said, the committee had no intention of increasing that share.  He stated that under that context the formulas have no fiscal impact.  However, if the formulas are fully funded, he added, the increase will be 1.6 to 4.0 percent above the 1986 formulas.  He said the committee recommends the formulas be uniformly applied to each institution, regardless of the percentage funding.  He noted the committee intended the formula funding recommendation be viewed as a goal to be achieved over a period of time.

Mr. Burke summarized the items addressed by the committee, which take into consideration cost differences among various programs and disciplines.  He said a salary equity pool is recommended for the University of Nevada at Las Vegas (UNLV) to equalize salaries for existing faculty at the University of Nevada at Reno (UNR) and UNLV.  New faculty salaries will be budgeted at equal starting rates, rather than current actual averages, and will carry forward.  He noted formulas will shift approximately .5 percent of available funding from universities to community colleges.  Also, he said, rather than using system-generated projections of enrollments, full-time equivalent (FTE) student enrollment projections should be based on a weighted 3-year rolling average, with the current year having the highest weight.  He noted the weighted average would be used unless the system-generated projection is lower.

According to Mr. Burke, the formula for instructional funding uses a ratio for the student-faculty mix and a matrix, which is based on a formula from the state of Connecticut.  At Senator Raggio’s inquiry, Mr. Burke pointed out the ratios are listed on pages 41 and 43 of the LCB Bulletin (Exhibit C).  Senator Raggio averred the ratios should be emphasized as forming the basis of the instructional funding.  He noted there are different ratios for the various disciplines, ranging from lower division up to doctoral, at the universities and the community college.  Mr. Burke added the community college ratios take into account those that are rural or urban.

Mr. Burke said the community college full-time to part-time ratios are set at 60:40 rather than the 1986 ratio of 70:30.  He recalled that last session supplemental funding was provided to improve the ratio.  He noted the graduate FTE student enrollment counts will be modified to account for differences between masters and doctoral students.  He added the committee recommends $1,000 be provided for each faculty FTE for teaching assistants at the community colleges.

Mr. Burke stated equity is achieved at the universities by reflecting additional needs associated with larger faculties.  He said formulas will now address academic advisement, technology, and assessment.  He also pointed out the library acquisition rate has been reduced from 5 percent to 4.3 percent, which the committee used as a tool to balance added costs generated by the formulas.  He explained that library acquisitions have never been close to being fully funded. 

At the community colleges, Mr. Burke said, the funding percentages are being expanded because of added costs at the high-technology centers, with associated equipment, staffing, and operation.  He noted the committee recommended $1,000 be provided for each student with a documented disability to comply with Americans with Disability Act (ADA) requirements.  Also, he said, the new formulas will include inflation and campus security considerations.

 

Addressing operations and maintenance (O & M), Mr. Burke noted the Desert Research Institute (DRI) has been included in the formulas for the first time.  He added building age is also being considered in determining support and maintenance needs.  He said ongoing funding is recommended for instructional equipment based on the number of faculty and classified positions, including workstation replacement, instead of using a one-shot funding approach.  Operating and wage costs for each function will be budgeted at established rates, rather than at averages from previous years for each institution, thereby avoiding potential inequities.

 

Mr. Burke said the committee recommends establishment of a performance funding pool, and the Governor’s recommended budget includes $3 million for that funding.  He noted the formula recommendations consider the proposed Nevada State College (NSC) at Henderson.  He explained the NSC formulas fall between the community college and university recommendations.  He acknowledged the committee recognized that Great Basin College (GBC), NSC, and any other new campus sites are in the beginning process of developing associate or baccalaureate programs and additional funding may be required. 

 

Senator Raggio commented the committee should be aware the seven meetings held were long and, occasionally, contentious.  He said the committee was composed not only of members of the Legislature, but also of the Board of Regents, members of foundations of both universities, members of the Faculty Alliance, presidents of both universities and NSC, the director of the Department of Administration (John P. Comeaux), and a working group of fiscal experts from all institutions.  He pointed out many were non-voting participants, and much input took place at each meeting.  He said the committee retained two outside consultants who gave invaluable input to the committee concerning all aspects of funding of higher education throughout the country. 

 

Senator Raggio suggested legislators read the LCB Bulletin.  He asserted many of the misunderstandings, misstatements, and concerns expressed by legislators and the press during the last session regarding the funding were put to rest by the group.  He reiterated Mr. Burke’s statement that the equity pool at UNLV was established because of the discrepancy between the salaries at UNR and UNLV, which had been caused by the actions of the institutions themselves, not by the Legislature.  He said that under the plan new salaries will be budgeted at equal starting rates, rather than at the average salary rate.  As part of the recommendation, he reported, the committee strongly counseled that it will be up to the institutions to monitor the situation so inequities will not occur in the future.  He declared it is imperative the inequities not be created within the institutions or the system, and said the Legislature is adamant that it not occur again. 

 

Senator Raggio repeated that the recommendations are goals to be attained over the next few years and said he anticipates the budget will be adopted at funding levels between 75 and 80 percent of the recommended formula levels.  He voiced the understanding that the present budget is funded at over 85 percent for the coming biennium, which even the study committee did not anticipate.  He added that during the last ten biennial sessions the UCCSN budget has received between 18 and 20 percent from the General Fund, and staff analysis indicates 19.5 percent funding for fiscal year (FY) 2002, and 19.8 percent for FY 2003. 

 

Acknowledging he had missed part of the testimony by his late arrival and he had not had an opportunity to read the study, Senator Coffin questioned the reduction of the library acquisition rate.  Senator Raggio responded the reduction was agreed on by all the institutions so the overall recommendations could be accommodated to remain within the 18 to 20 percent of the General Fund budget. 

 

Senator Coffin agreed there were many compromises.  He requested representatives of the institutions report to him what they gained in exchange for the items they gave up.  Senator Raggio responded the committee seemed very content with the actions proposed by UCCSN.  He pointed out the library appropriation had not been fully funded at any time.

 

BUDGET OVERVIEW

UNIVERSITY AND COMMUNITY COLLEGE SYSTEM OF NEVADA

 

Dr. Jane A. Nichols, Chancellor, System Administrative Office, University and Community College System of Nevada, noted that during the past two legislative sessions Nevada has led the nation in percentage increases for higher education, largely due to enrollment growth, but also due to the support of the Legislature.  She expressed gratitude to the Legislature and to Governor for the budgets presented for UCCSN.  She cited statistics regarding the system from a commissioned study by the Rand Corporation set forth on the first page of a document (Exhibit D.  Original is in the Research Library.) prepared for the joint budget hearing.  She expressed particular concern in the area of diversity, saying UCCSN is not capturing minority students and keeping them enrolled.  She read a statement on that page indicating the state would realize additional tax revenue of $647 million if all ethnic groups had the same educational attainment and earnings as whites, and indicating personal income would total an additional $1.8 billion.  She said resolving this problem is part of the goals and plans for the future.

 

Dr. Nichols said the priorities set by the Board of Regents are the same as they have been for the past several legislative sessions, as depicted on the second page of Exhibit D.  She said the regents have started a process for the next 11 months reviewing the Rand Corporation study in progress that should result in a higher-education plan in Nevada for the next 10 to 20 years.  It will focus the mission for each institution, review programs that may be unnecessary or noncritical in nature, measure program quality, and hold the presidents accountable.  She quoted the Rand Corporation, “Access without quality is a hollow promise.” 

 

Dr. Nichols said incentives for institutional behavior to serve the needs of the state will be included in a plan providing the framework for new programs and institutions.  She noted the system has been accused of being whip-sawed by the latest wishes of particular communities or constituents, and she asserted there must be a specific plan for the future to use as a blueprint to determine whether requests should be granted. 

 

Dr. Nichols reported the second priority involves undergraduate access and success.  She noted the system has grown 43 percent in undergraduate enrollment during the past 10 years, while the state population has grown 67 percent.  She indicated regret that enrollment has not kept up.  She expressed gratitude for the millennium scholarship program, and said it is opening doors for students who may not have otherwise been able to attend college.  She surmised it will greatly impact enrollments and stated the system must be ready.  She said that during the first year of the scholarships 55 percent of high school graduates were eligible for scholarships, and 33 percent took advantage of the program. 

 

According to Dr. Nichols, the proposals and incentive initiatives will provide key ingredients to improve access and opportunity in southern Nevada.  She added that the programs at Great Basin College, the Western Nevada Community College (WNCC) in Fallon and the UNR Redfield Campus will address the issue of access. 

 

Mrs. Chowning said she had met with regent Dr. Jill Derby who told her the millennium scholarships are already having a positive impact on the university enrollments and a negative impact on community college enrollments.  Dr. Nichols responded more millennium scholarship recipients are choosing universities than community colleges, which she called a clear indication money does make a difference.  She declared the millennium scholarships provide a level playing field.  She admitted the scholarships are impacting the choice of institutions, but she acknowledged it will be difficult to understand the impact on total college attendance until additional data is available. 

 

Dr. Nichols pointed out externally-funded grants within the system have grown 35 percent over the last 3 years, with great success, especially at UNR, UNLV and DRI.  She said $140 million came into the system in 1999 from externally-funded research grants, which translates into approximately $350 million for the Nevada economy.  She declared increasing the amount of research, and thus enabling the technology transfer into the private sector, builds and supports new business.  She stated the Manufacturing Assistance Program (MAP) not only provides for use of the knowledge at universities and colleges, but also helps the economic sector grow.  She said the Office of the Lieutenant Governor, in concert with the Governor and the university system, just completed the Battelle study, which supports the notion that no major high-tech economy is created without the presence of research universities. 

 

As examples of the critical position of professional education, Dr. Nichols cited the establishment of the new School of Law Clinical Program, the Dental School, the GBC nursing program, and the School of Pharmacy.  According to Dr. Nichols, the best way to meet the needs of citizens and the work force in Nevada is through education.  She noted the shortage of professionals required to assist the growing elderly population in such disciplines as nursing and pharmacy. 

 

Dr. Nichols indicated she would not repeat discussion of the funding formulas since they have already been presented, but she emphasized the formula will shape equity across all institutions and it will eliminate funding disparities if followed as devised.  She pointed out the success of the formula is dependent on flexibility.  She promised that accountability comes with flexibility, and UCCSN will be tracking the impact of the formula. 

 

Senator Raggio asked whether the Governor’s recommended budget reflects an equitable distribution of available funding among the UCCSN institutions.  Dr. Nichols confirmed that it does.  She explained that the concept of performance funding was recommended in the formula study, and that it is the first time it has appeared in a budget request for UCCSN.  She said 37 states currently have performance funding or some method of performance budgeting.  She said the performance funding ties directly to the institution and individual indicators, and allocates resources for achieved, rather than promised, results.  She stated performance funding will be used as the key to the process of reaching goals.

 

Dr. Nichols voiced the intention of using a baseline in goals to be set related to the quality of student learning, retention and graduation success, and research and workforce development.  She said UCCSN is in the process of developing particular indicators, on which she will report later in the legislative session.  She suggested institutions be given a year in which to be measured on the indicators, and then funds will be distributed based on the results. 

 

Senator Raggio asked for assurances that performance funding will not be used to create inequities.  Dr. Nichols vowed that will not be the case.  She explained the performance funding will be used as a one-shot distribution based on an agreed‑upon amount in the beginning, which will protect equities.  She said for the first session UCCSN will use the indicators for graduation and retention with special emphasis on minorities, on research growth and focus, and on workforce development and focus.

 

Dr. Nichols pointed out UCCSN followed the new executive budget process put into place by the Governor.  She said the only budget requests submitted by UCCSN are the adjusted base budget and the enrollment growth and associated costs.  She said new initiatives in priority order were added, and one-time requests in priority order were added.  As part of the basic request, she said, UCCSN engaged in a fundamental review in the same way done by state agencies, although UCCSN was late starting the review.  It will be an on-going process, she added.

 

Dr. Nichols reported $15.5 million are being requested for new initiatives, and $26 million are being requested for one-time projects.  She declared the amount is much less than any previous request made by UCCSN in the past.  She said the list was pared down considerably before presenting it to the Legislature.  She noted the budget includes estate taxes which historically have been used for special initiatives related to student financial aid, quality, and other areas that are not generally funded by the formula or the General Fund. 

 

Dr. Nichols reiterated UCCSN engaged in its own review, which will continue over the next 11 months.  She said areas that need or have had reallocation of resources or efficiencies have been justified according to the Governor’s instructions.  Areas in which non-state resources can be used have also been identified.  She admitted she is unable to make a list of all the institutions and all of the savings because it is a continuing process.  She added there are examples of efficiencies that have been accomplished, including computer services, in which joint purchasing and joint agreements across the entire system have resulted in considerable savings in software and equipment costs.  She noted the majority of students now register electronically, and system libraries have worked hard to collaborate in the purchase of journals and electronic journals because of the increasing high costs.  She said UCCSN libraries have been able to survive and function by combining together across the system and with other states. 

 

Dr. Nichols related there is a fundamental review under way of student fees and tuition, especially out-of-state rates.  Other reviews are being made of optimal space utilization, evening and weekend classes, and partnerships with other entities such as businesses to ensure the system is maximizing those opportunities.  She said she is looking at search and recruitment costs for professionals, especially for national searches, and whether it is effective to make better use of electronic means of communication and advertising.  She indicated transfer policies are being studied, and UCCSN has implemented a common-course numbering system which will help students a great deal and will effect savings in costs.  She opined if students have clearer pathways to degrees they will take fewer courses, resulting in savings for both the students and the system.

 

According to Dr. Nichols, admissions are being reviewed to ensure students are guided into the institutions at which they can be successful immediately.  She added that faculty workload, class scheduling, and summer school are being considered with a view to providing students the classes they need on a 12-month schedule.  She said the plan should continue the self-supported nature of summer school, but will be reconfigured in a different way to provide necessary classes for students who want to attend year around rather than on a 9-month, 15-week semester basis. 

 

Dr. Nichols said the Rand Study includes program duplication, cost effectiveness, and the need to focus on key areas rather than trying to be all things to all people.  From that she anticipates resources will be used more effectively. 

 

Dr. Nichols mentioned bill draft requests (BDRs) being presented to the Legislature include expanding teaching scholarships to Great Basin College and Nevada State College when it opens, since those schools will be producing teachers at the baccalaureate level.  She requested that specific per-credit amounts for millennium scholars at the Nevada State College and for the upper-division level at community colleges be included.  She explained the per-credit fee is currently $80 at the universities and $40 at the community colleges, and the system is making a request for $60 per unit at GBC and NSC. 

 

Another BDR, said Dr. Nichols, will request a carryforward of 50 percent of any unexpended money within the General Fund, instead of reverting 100 percent.  She opined that will be an incentive for institutions to use the funds in the wisest way possible.  Dr. Nichols said a bill is being requested to ensure security clauses in the Uniform Commercial Code (UCC) are in compliance with action the state has already taken in other areas.

 

Turning to the enrollment section of her handout, Exhibit D, Dr. Nichols explained it is a brief report on current growth.   She pointed out there was a slight drop in enrollments from fall semester 1999 to fall semester 2000, primarily attributable to a drop of 5.4 percent at the Community College of Southern Nevada (CCSN).  She noted two factors in the preceding year contributed to the drop at CCSN.  Free classes were offered at CCSN to encourage students to attend college, but the amount expended on the classes exceeded the amount of financial aid available.  She stated a decision was made to pull back on the program to remain within the parameters of financial aid, which resulted in a drop in enrollment.  She added there was a drop in enrollment in the apprenticeship program because of the drop in the construction trade and business in Las Vegas.  She pointed out that the other institutions are growing. 

 

Dr. Nichols drew attention to the similar pattern in the full-time equivalent (FTE) statistics.  She acknowledged it is very difficult to predict enrollment, and that the job market has impact.  She said the new formula utilizing a 3-year rolling average may provide protection for UCCSN and the state regarding variations in enrollment.  She voiced the presumption that the drop is not a pattern that will continue, noting that right now at CCSN enrollment growth is at 10 percent when free classes and apprenticeship programs are excluded.

 

Turning to the following page, Dr. Nichols noted there is a long-term enrollment growth trend that has been consistent over time and will probably continue.  She stated the growth rate over the past 11 years has been 119 percent at the community colleges and 37 percent at the universities.  Referring to page 16 of Exhibit D, she noted the statistics from 1998 indicating Nevada ranked last in the nation with a continuation rate of 37.1 percent.  She opined the state will show a rate above Alaska when statistics for the next year become available, and when the effect of the millennium scholarships come into play.  Responding to a question from Senator Raggio, Dr. Nichols clarified the statistics refer to all institutions, public and private.

 

Mr. Marvel asked why other western states have higher rates of continuation, but lag behind the rest of the country.  Dr. Nichols replied most states have a greater variety of institutions, and they also do not have as many jobs available for their young people, which she surmised lure young people away from continuing their education.  She added that eastern states have a long tradition of college attendance, and they have a higher percentage of adults who are college graduates, while Nevada has one of the lowest percentages of adults who are graduates.  She acknowledged it is more difficult to entice first generation college students. 

 

Mr. Goldwater asked how the statistics were compiled.  Dr. Nichols replied they include both in-state and out-of-state students, which is why the statistics are not more timely.  The statistics are computed based on those students who enroll in college for the fall following high school graduation. 

 

Ms. Giunchigliani asked which disciplines have the most matriculation problems.  Dr. Nichols replied those with the most difficulty are generally the professional disciplines, especially those with accreditation requirements, and those courses about which there is disagreement regarding upper- or lower-division status.  She noted the faculty must resolve those issues to avoid the possibility the status may be undermined in subtle ways.  She reported the Board of Regents has demanded those problems be resolved by the faculties, or the board will resolve them. 

 

Dr. Nichols reminded the committee the millennium scholarship program does not bring in new funds to the system in the sense of another funding source.  She said the funds enter the system in the form of student fees and tuition.  She noted there were 4,291 students enrolled in the system in the fall with an estimated 55,135 credit hours.  She said the total funds advanced to UCCSN from the state treasurer’s office were $3,761,120.  She said the millennium scholarship office reports that 55.5 percent of high school graduates were eligible, 39 percent accepted, and 33 percent attended UCCSN institutions. 

 

Dr. Nichols acknowledged more effort must be made to capture students who do not take advantage of the scholarships, so programs are being instituted to reach out to all eligible millennium scholars.  She expressed regret that those who are not utilizing the offer are those who traditionally do not attend college. So, she said, more effort must be placed on students in eighth, ninth and tenth grades.  She explained the percentages were based on figures for 1999 and 2000, in which 12,953 graduated with standard diplomas.  She said recent data included in Exhibit D is continuation data for millennium scholars.  She noted that their eligibility at the community colleges and universities is dependent upon a 2.0 grade point average (GPA) and completion of 12 credit hours a semester at the universities and 6 credit hours a semester at community colleges.  She said the present continuation rate for millennium scholars is 77 percent.

 

Dr. Nichols continued, saying whenever scholars do not maintain their eligibility, institutions are putting in place programs to reach them, keep them enrolled, and help them regain eligibility. 

 

Dr. Nichols said the chart on page 19, Exhibit D, depicts tuition and fees that have been recommended for the biennium, a 3.4 percent increase per year.  She explained they are set by the standard formula used historically related to the price index and the Western Interstate Commission for Higher Education (WICHE) institutions.  She drew attention to the graduate fee at NSC listed under registration fees that has not been approved by the board.  She said the fee will depend on later action, if and when the institution provides a graduate program. 

 

Senator Raggio asked what use is anticipated for the revenues from the allocation of $1 to capital improvements and 50 cents to general improvements.  Dr. Nichols responded the funds are allocated to each university’s capital improvements.  She noted the funds going to UNR will be used as part of the matching funds for the library building.  At the community colleges they will be used for student services and a variety of projects including day-care centers.  She said the students agreed to the $1.50 to support projects important to them. 

 

Senator Mathews related several students had approached her regarding a fee imposed at UNR concerning health when they already had their own insurance and could provide proof of insurance.  She requested an explanation be given at some time during the session.

 

Senator Coffin disclosed that his wife teaches half time at UNLV.  He inquired why a 2 percent cost-of-living adjustment (COLA) is provided for teachers while other state employees will receive a 4 percent increase.  He admitted UCCSN has indicated it can make up the other 2 percent, and he asked where those funds will be found. 

 

Dr. Nichols responded UCCSN encouraged the Governor to fund the raise by the same percentage recommended for other state employees.  She stated the regents had recommended a 3 percent raise for each year, and she expressed confidence they will support 4 percent.  She said a variety of sources were investigated from which to obtain the matching funds, and she cannot state definitively where the funds will be found.  She explained problems have arisen, especially relating to the formula, because finding a source raises equity issues. 

 

Dr. Nichols opined tuition will not be raised to fund the COLA for faculty, because nobody wants to raise student fees to pay for faculty raises.  However, she said, tuition for out-of-state students is being reviewed to determine whether it is high enough when compared to other western states.  

 

Senator Coffin suggested tuition fees may be the only source for faculty raises.  He said, “I applaud you for considering out-of-state tuition because that is a bargain.”  He asserted many students come from California and other states because Nevada provides such inexpensive tuition.  He asked how many students come from out of state.  When Dr. Nichols was unable to give a figure, Senator Coffin surmised it is “a lot.”  He added, “We have tried to tell you in the past . . ., tried to tell the regents not to raise tuition, but they have done it anyway.” 

 

Dan Miles, Vice Chancellor, Planning and Administration, University and Community College System of Nevada, said the figures on page 20 of Exhibit D provide a summary of requests made to the Governor from the major institutions in the system, as well as the central computing center services, with all others grouped together.  He stated the budget follows the instructions from the Governor to provide a base budget with enrollment growth and with separate requests for special priorities for funding.  He noted the budget includes a 15 percent increase for the biennium overall, which he surmised may be the lowest the institution has submitted in a very long time.  He recalled that in 1999 a 49 percent increase was requested.

 

According to Mr. Miles, the request on page 20 of Exhibit D includes adjustments to the base, maintenance items, and formula funding for growth.  He said the overall request was created to stay within the 19.5 to 20 percent that UCCSN has historically enjoyed from state funds.  Page 21, he said, shows the breakdown of funds, and the decrease in the category “other” funds is primarily estate funds which may be impacted by potential federal action.  The following page indicates priorities for special funding, but not including a COLA.  He acknowledged none of the priorities listed were included in the Governor’s proposed budget.  He noted the list was established by the Board of Regents, with the law school being the number one priority.  He said the number five priority will fund additional support positions including two auditors and an attorney, which are critical to respond to the increasing workload. 

 

Mr. Miles said after the Governor convened the academic forum in Las Vegas last summer, there were indications from long-term projections that funds could be available for one-shot requests.  Those are listed on page 23 of Exhibit D at a total of $26 million with the top priority being the “hold harmless” funds for the formula.  He explained that under the formula funding recommendations, if the formula computed a lower dollar figure for any of the budget years than the campus was currently receiving, the campus would be held harmless for several biennia until it worked itself out, probably through enrollment growth.

 

Mr. Miles indicated the second priority matches the maintenance changes recommended by the Governor for system computing services, but the “hold harmless” aspect was not included since the calculation indicated there was no apparent need for it.  He noted the third through eighth priorities were not included in the Governor’s budget, but startup costs for NSC were, although the Governor recommended just $1 million.  He reported although the UCCSN requests total $26 million, the Governor recommended a total $3.9 million for “one-shot” requests.

 

Turning to page 24 of Exhibit D, Mr. Miles drew attention to the Governor’s recommendations, those requested by UCCSN, and the differences.  He noted the UCCSN request does not include the COLA funds, whereas the recommendation by the Governor includes proposals for both the classified COLA at 4 percent the first year and 4 percent the second year and the movement to step 9 on the salary schedule, as well as the professional COLA at 2 percent for each of the 2 years.  He reported that for the second year the UCCSN request is $528 million, while the Governor’s recommendation is $547 million.  He explained the Governor’s recommendation includes the COLA funding.  

 

Mr. Miles noted UCCSN plans to make the radiation safety programs self-supporting within the system. 

 

Mr. Miles indicated page 25 of Exhibit D outlines the sources of funds, with the main reason for the higher Governor recommendations being the inclusion of COLAs. He said all fees, tuition, some federal and county funds, indirect funds, and investment income appear under UCCSN Revenues.  He explained those are projected to be lower in the Governor’s recommended budget because after the initial budget request, which was based upon work done 2 years ago, the system submitted a revised request for the dental school.  Mr. Miles called the change an adjustment rather than a major reduction in higher education.

 

Senator Neal wanted to know where the fire science academy appears in the budget.  Mr. Miles replied it is a self-supporting entity and is not supported by the state.  He explained the budget under review is the one that requires legislative approval, with authority to spend student fees and estate tax.  He said the system has a number of self-supporting, restricted budgets in addition to those outlined in this budget.  He noted the legislative body generally asks for a report on the self-supporting budgets. 

 

Mr. Miles said page 26 of Exhibit D depicts approved expenditures from estate tax funding for the past two biennia and future requests and recommendations.  He noted the total requested for FY 2002-2003 is $40.12 million with the recommendation from the Governor at $54.8 million.  He stated most of the requests are for programs that are ongoing in nature, used for positions or for an ongoing service that has been in place for a number of years.  He said one large program is financial aid for students, and the top item is technology data warehousing. 

 

According to Mr. Miles, estate tax funds have been supporting the Applied Research Initiative, EPSCoR (Experimental Program for the Stimulation of Competitive Research), and other basic research grants.  He noted there were no funds several years ago to start gender equity programs, so the Legislature used funds from estate taxes to initiate programs at UNR and UNLV.

 

Senator Mathews asked whether that is the reason it appears that UNR receives nearly double the funding as UNLV.  Mr. Miles replied there is a new maintenance item in the operating budget recommended by the Governor for additional gender equity funds at both universities.  He acknowledged the amounts are different for UNR and UNLV.  Senator Raggio interjected he recollected the amount for UNR in the budget is $350,000 per year ($700,000 total) with a total of $1.5 million earmarked for UNLV.  He noted in the past those have been funded equally.  He asked for clarification. 

 

Dr. Nichols responded that is the way the system requested those funds, and she acknowledged the gender equity requests were not adequately discussed by the institutions.  She stated the matter will be re-examined and she will provide updated recommendations to the Legislature. 

 

Senator Raggio asked what impact the Governor’s recommendation will have on the endowments if the recommendation is approved.  He pointed out the usual amount received from estate tax has been around $35 million until last year when it reached approximately $55 million.  He voiced his understanding that the present endowment fund amounts to $130 million.  He asked what amount is projected to be added to the fund annually.  Mr. Miles responded the law requires $2.5 million go into the endowment fund, and UCCSN is allowed to expend whatever is authorized by the Legislature.

 

Mr. Goldwater explained one reason estate taxes rose was that a measure he introduced last session passed by the Legislature included taxation of “self-centered trusts,” which he characterized as “on-shore trusts,” estates of people from all over the nation that are domiciled in Nevada.  He stated he intends to follow up on that this year with a measure to amend the Constitution by repealing the prohibition against perpetuities.  He said a repeal of the prohibition against perpetuities should encourage people to establish trusts in Nevada.  Mr. Beers surmised it may take a long time to repeal the prohibition on perpetuities.

 

Continuing on page 26 of the handout (Exhibit D), Mr. Miles noted the Governor continues to recommend $500,000 for funding of the DRI operating and maintenance expenses, and to provide start-up costs for the baccalaureate programs at GBC at $1.86 million.  He added the Governor recommends equity funds that were included in the budget last session remain as estate tax funding at CCSN, UNLV, Truckee Meadows Community College (TMCC), and Western Nevada Community College (WNCC). 

 

Senator Raggio asked whether the Law School Clinical Program should be funded from estate taxes.  Mr. Miles replied there is a problem because of the annual limits on estate tax collections.  He explained there are two accounts for the estate tax.  One is a holding account from which expenditures are disbursed.  The other, he said, is the endowment account that is invested, as are other accounts in the system.  He pointed out FY 2000 was extraordinary in that UCCSN received $37 million, half the state windfall.  He noted the typical income is closer to $13 million.  Except for the windfall, he stated UCCSN would have been spending more than was being amassed in the form of income from interest earnings on the holding account as well as income on the endowment account. 

 

Mr. Miles estimated income in the current year will be nearly $10 million less than authorized expenditures.  He cautioned the situation may continue into the future unless there is a substantial increase in income.  He pointed out the overall balance in the holding account will probably start to decline gradually because of an assumption there will be an 8 percent increase in the market value of the endowments.  He called that a “risky proposition” or somewhat optimistic. He noted in July and November the endowments dropped by $9 million, rather than going up.  He voiced concern over the long-term health of the endowment, and said the Board of Regents passed a resolution that estate tax funds should only be used for one-time initiatives due to that concern and the possibility Congress may enact legislation phasing out estate taxes.  He reported the regents prefer that 50 percent of all new income go into the endowment to continue to increase it, and that the principal, which stands at over $100 million at present, never be spent. 

 

Senator Raggio asked whether UCCSN has any concern over the expenditures of estate taxes as outlined on page 26 of Exhibit D.  In the Governor’s budget, Mr. Miles responded, a limited amount of funding for expenses comes from estate taxes and the only concern relates to changes for formula costs.  Senator Raggio stated the Legislature may be looking for a way to trim $30 million from the budget by the end of session if the projections for gaming by the Economic Forum are not more encouraging by that time.

 

Senator Mathews remarked she has received many inquiries from part-time faculty members as to the inclusion of raises in the budget since many have served for several years without a pay raise.  Dr. Nichols said the Board of Regents has received similar complaints.  She said only minimal progress has been made although the institutions have attempted to raise salaries.  She added benefits are also an important issue for those working part time.  At this time, she said, there is no provision to raise salaries for part-time faculty members except for provisions under the equity formula.  Senator Mathew requested the equities between university and community college part-time salaries be considered.  Dr. Nichols agreed to do so, saying part-time wages are market driven.

 

In response to a question from Senator Raggio, Mr. Miles indicated the budget includes funding for the 2.5 percent merit pool, just as it has in the past, and staff up to the level of assistant deans will participate.

 

Senator Coffin disagreed that part-time wages are market driven.  He commented it is unfair to students and faculty to hire people who probably have lesser talents who are willing to teach at lower pay.  He suggested it may be very difficult to keep part-time faculty members when they do not receive higher pay.  Dr. Nichols admitted there is a serious problem with the salary rates for part-time teachers, and said the resolution may not be made as a budget request until the next session.  She said proposals are being considered to find a responsible way to address the problem over time.

 

Mr. Miles reviewed the capital improvement projects recommended by the Board of Regents set forth on page 28 of the handout (Exhibit D).  Senator Raggio interjected that the committee heard a discussion of those projects previously and suggested that all of them need not be addressed.  Mr. Miles said the Governor’s budget addressed the first four priorities, including completion of the Redfield campus.  Senator Raggio noted no funds have been included for operation of the school. 

 

Mr. Miles added funds for the build-out and furnishings for DRI South, the WNCC library, the CCSN science building, and the UNR medical building are included as priorities; they were planned during the last session but no funding was allotted at that time.  He said priority number 2, for the science and engineering lab at UNLV, is the first new project on the list of capital improvement projects (CIPs), and it was recommended by the Governor.  Senator Raggio recollected the project will cost approximately $50 million with most of it being funded by the state.  He asked for input on how much is anticipated from donations and contributions.  Dr. Nichols responded the presidents of each school would address their projects.

 

Mr. Miles noted priority 3 for the health science and bio tech building at CCSN was also recommended by the Governor, as were priority 4 for the TMCC student services center and priority 5 for Wright Hall at UNLV but at $5 million less than was requested.  He said priority 6, a request for classroom expansion at WNCC in Fallon, was not recommended by the Governor.  He explained the UNR library project is a $66 million project to be funded by the state, donors, and students, with recommendation for the full project by the Governor.  However, he said, the Governor is proposing that only $26 million be funded for the first building at NSC, rather than the requested $36 million. 

 

Mr. Miles reported the requests for funding at GBC and WNCC, listed as priorities 9 and 10, were not recommended by the Governor, nor were priorities 12 through 20.  Only funds for planning for the new UNLV student services project was recommended, although $6.5 million was requested.  Mr. Miles pointed out UCCSN requested $10 million from the Higher Education Capital Construction Fund for maintenance and renovation projects.  He added UCCSN also requested the authority to spend up to $5 million from the Special Higher Education Capital Construction Fund for the same purpose, as has been done for several biennia.   Those requests were approved by the Governor.  However, he explained, because of the backlog of projects in need of attention, the system requested an additional $5 million from the General Fund that was not approved by the Governor.

 

Dr. Nichols commented on the unfunded priorities, and especially voiced concern on finding a method to match the 2 percent COLA.  She added:

 

We also would ask that you consider that money that was put back into the Estate Tax by the Governor, if possible, to move that back into the state General Fund where the rest of the formula-driven support is, and that is a total of $14.6 million.  There is an issue that we would like to work with you on for Truckee Meadows Community College.  When we calculated there, their base with the adjustments made in it, they actually will be receiving less this year than they did last year, which will potentially mean some layoffs for them, and that is $0.3 million, so that would fall under the “hold-harmless” request that we had talked about, although it does not quite fit the definition developed of “hold harmless” by the committee.

 

Dr. Nichols acknowledged the academic forum convened in Las Vegas last summer did not take into account the necessary addition for such items as lease costs and step increases for employees. 

 

According to Dr. Nichols, UCCSN generally depends on one-shot funds when they are available for areas that do not fall into the formula.  She noted the students worked with the Board of Regents and supported a 4 percent fee for technology.  The board approved the fee with the idea it might be an incentive for the state to bear part of costs of equipment.  She declared the $6.5 million request is very important, especially since no funds for equipment and technology support were received from the state during the last biennium. 

 

Senator Raggio remarked the equipment items have been built into the formula, and UCCSN will receive 85 percent of the formula funds.  The formula funds will support instruction, academic support, student services, institutional support, operation and maintenance, and non-formula budgets, such as amounts per faculty member, amounts per classified position, and technology equipment.  Dr. Nichols agreed there are funds in the formula, driven by the work needs of employees, but not funding to cover the larger items such as instructional labs. 

 

Senator Raggio related the committee received basic information from the Budget Division and the LCB fiscal staff as to what will be available in the General Fund for teachers.  Because no on-going funds are available, bonuses are being considered, but he warned the request to take UCCSN above 19 percent may not be possible since UCCSN is nearly at the limit of General Fund capability according to what the Governor has recommended.  He told Dr. Nichols the Legislature would consider any suggestions for a source of funding she can offer.

 

Dr. Nichols admitted the outlook for increased revenue is not as promising as hoped.  She pointed out the system was unable to provide for EPSCoR last session when estate taxes were used for equity funds.  She said she has promised the federal government to find $4 million in matching funds, and over $2 million has been committed.  She said UCCSN has an opportunity to reach $3 million, and called it a good investment since those are leveraged funds.

 

Dr. Nichols reported the dental school request for $1.8 million will be used only for enrolled students.  She characterized it as the equivalent of funding for medical students or law students.  She noted the dental school is primarily self-funded, and the $1.8 million represents the small portion that is a per-student increase.

 

University of Nevada – Las Vegas – Budget Page UCCSN-42 (Volume 1)

Budget Account 101-2987

 

Dr. Carol C. Harter, President, University of Nevada, Las Vegas, UCCSN, made a visual presentation and distributed copies (Exhibit E) while she testified on the budget for UNLV.  She expressed approval of the results of the committee that reviewed the formulas and voiced her belief the long-term results will be very positive.  She welcomed the funds for a 2 percent COLA proposed by the Governor, the recognition of increased costs for utilities, and that gender equity is acknowledged in the Governor’s budget recommendations.

 

Dr. Harter admitted there are challenges.  Senator Raggio reiterated his request that anyone offering new proposals would do well to suggest a source of funding.  Acknowledging his request, Dr. Harter called the additional $5.2 million over the biennium for the matching 2 percent COLA an “enormous amount of money to be able to generate from inside our own budget.”  She expressed hope the problem can be resolved.

 

Senator Raggio recalled that the state was prepared to go up to 2 percent each year to achieve 4 percent each year.  He inquired whether that was to be a match.  Dr. Nichols remembered that initially the agreement was for the university system to match in order to reach 3 percent, and the Governor is aware the system may not be able to reach 4 percent.  She said UCCSN had hoped to use vacancy savings as part of the match. 

 

Senator Raggio interjected the budget already includes vacancy savings throughout, so those funds could not be counted.  Dr. Nichols responded that occurred during the past few weeks, so the university system is scrambling to find other sources for the match.  She admitted she is not confident that UCCSN can come up with sufficient funding to reach a 4 percent COLA. 

 

Don Hataway, Deputy Director, Budget Division, Department of Administration, stated the 2 percent COLA raise in the Governor’s recommended budget is not considered a match and is intended to be included whether or not UCCSN finds another 2 percent.  Senator Raggio directed the subject be discussed at a later budget hearing.

 

Dr. Harter explained an effort is being made to develop professional schools throughout the system.  She said that will give students opportunity to attend publicly supported professional schools, with medicine the first discipline supported by the state.  She said the first group will graduate from the law school in May.  She noted one request was made to accomplish the build-out of the law school by creating law clinics which are necessary for accreditation of the law school.  She said the law school has provisional accreditation, but it is necessary for the students to develop skills available in a law-school clinic.  Those include the working relationships with the public, especially indigent people who cannot afford legal help. 

 

Senator Raggio asked what time limit has been put in place for the school to establish clinics in order to achieve accreditation.  Dr. Harter replied the school hopes to approach the American Bar Association within 2 or 3 years.

 

UNLV Law School – Budget Page  UCCSN-52 (Volume 1)

Budget Account 101-2992

 

Richard J. Morgan, Dean, William S. Boyd School of Law, University of Nevada, Las Vegas, University and Community College System of Nevada, indicated the school’s intention is to apply for full accreditation in the summer of 2002.  He said the school will have 3 years beyond that time to achieve accreditation.  He said the school would, however, like to attain full accreditation and hit every benchmark as soon as possible.  Senator Raggio asked whether the school can still achieve full accreditation if the clinics are not funded this session.  Dr. Morgan replied the school will still have the opportunity to file, but advised the committee that the school will be in a better position to achieve full accreditation if the clinical program is in place. 

 

Dr. Harter continued, saying the university is establishing a school of dentistry to accommodate the population growth.  She said demographics show Nevada ranks between 48 and 50 in the number of dentists per capita, and the issue is becoming critical as more people, both young and old, move into the state.  She noted students in the discipline must attend very expensive private schools, such as the University of the Pacific which charges $42,000 in tuition for dental school, or must pay out-of-state tuition for public schools. 

 

Dr. Harter stated the university is attempting to make the dental school a self‑supporting entity.  She acknowledged the university has been unable to reach that goal, so support is being requested in the amount of $1.8 million for the first biennium.  She said the first class, in 2002, will have 75 students.  Responding to a question from Senator Raggio, she indicated the $1.8 million request will fund operating and maintenance, and there is a separate request to fund capital expenditures.  She noted the budget was recommended by the Governor, but the university intends to provide another $2 million beyond the budget request derived from clinic revenues and tuition.  She explained the entire budget is approximately $5 million of which the university will provide two-thirds. 

 

Dr. Harter said the School of Pharmacy is a joint program between UNLV and UNR, which she believes can be a model for professional schools. 

 

Dr. Harter reinforced Chancellor Nichols’ indication of the importance of EPSCoR funding because without it the federal funding will be lost.  She cited the importance of research in economic activity at the two universities and DRI for the

health of the state and for the development of the Nevada economy.  She reiterated funds for EPSCoR, research, and additional equipment, which focus on building high technology and biotechnology research capacity in the institutions, are critical to the university and to bringing new business into Nevada.

 

Dr. Harter reported escrow will close March 31, 2001, on 80 acres of prime property for a regional campus for UNLV at Summerlin.  This will allow for a  purchase over a 15-year period at a very reduced cost.  She drew attention to the request for $1 million for advance planning.  She said the university is holding conversations with “dot com” businesses that may wish to become partners in the development of Summerlin to create a school focused on high‑technology professionals, and research and development of high tech and biotechnology.  She clarified the time has come to hire a couple of administrators to conduct a business plan, build a curriculum, make feasibility studies, and plan for a skeleton staff and for building the initial faculty.  She noted that until this time the initial planning has had no funding.

 

Dr. Harter drew attention to the requested capital projects for UNLV.  She asserted the science and engineering complex will be the most important facility to be built at UNLV.  She said it will be a $75 million complex, adding classrooms, laboratories, and common space to be shared by scientists and engineers for research, offices, and some classroom spaces.  This will do away with the need for two separate buildings for science and engineering, she said, and it will accommodate growth.  She explained the infrastructure is very high tech to allow “cutting-edge science.” 

 

Senator Raggio noted the Governor has recommended just under $9 million for planning and the building of infrastructure.  He asked what portion of the $75 million will be funded by the state and what portion will come from donations.  Dr. Harter proposed $15 million come from other sources and $60 million come from the state.  Senator Raggio asked whether it is feasible that more may come from private sources.  Dr. Harter replied she knows the sources of $15 million, but she is unaware of other pending contributions.  Senator Raggio noted most of the major projects at other campuses and several projects at UNLV have come from private contributions.  He expressed hope others will be forthcoming, especially in light of the lack of capital construction resources and the necessity of going to bonding for maintenance.

 

Dr. Harter said the Governor cut the Wright Hall project request by $5 million.  She pointed out Wright Hall is the second oldest building on the campus, and it houses five major academic departments, including several that teach the greatest number of students at the lower division level, including political science, anthropology, history, gender and ethnic studies, and others.  She noted there is a very large faculty group there, and the building is in desperate need of renovation and additional space to house new faculty members.  She related plans to take down the auditorium and add a high-tech center to allow use of instructional technology in teaching and distance education.  She noted distance education is one of the new options to reach more students.

 

Senator Raggio inquired what use will be made of the additional $1 per credit fee for tuition at UNLV.  Dr. Harter responded there are faculty members who have no offices and the fee will help renovate facilities to provide new offices.  She said there is a need for 78 new offices for new faculty members.  Senator Raggio asked how much the fee will generate.  Dr. Harter estimated it may be $500,000 per year. 

 

Dr. Harter said the third item on the list of capital projects has been on the list for 3 or 4 biennia.  She said the project will create a facility for student services, where they can register, be admitted, obtain financial aid, obtain career information, access international student services, and obtain other services.  At present, she said, the facilities are situated at two ends of the campus, making it very inconvenient for students.  The proposed student services center will be more responsive to their needs, she noted.  She said that although the Governor has not approved the project, he has approved $300,000 for planning. 

 

Dr. Harter said the Summerlin campus planning request for $1 million will be used to plan the first facility, which is in addition to the operating planning fund request.  She added there is hope there will also be private funds to help support the project, perhaps from high-tech industry in the area. 

 

As to the fifth item on the list of capital projects listed in Exhibit E, Dr. Harter explained in order to have a fully-functioning dental school a very sophisticated facility will be required.  She said the facility will be used for clinical practice, classrooms, laboratories, faculty offices, and research purposes.  She stated the proposal is to provide $12 million from the university and to acquire $24 million from the state to build the facility. 

 

University of Nevada – Reno – Budget Page UCCSN-17 (Volume 1)

Budget Account 101-2980

 

Dr. Stephen C. McFarlane, Interim President, University of Nevada, Reno, University and Community College System of Nevada, distributed a two-page handout describing the mission of UNR, statistics, and the outreach and needs of the university (Exhibit F). Drawing attention to the item, Peer Review, on the back of the first page, hepointed out UNR was one of the few universities that moved up to the highest Carnegie Foundation ranking.  He stated there is no higher ranking than Doctoral/Research Extensive, which puts UNR into the same ranking as such schools as Harvard and Stanford.  He explained the ranking is applied only to approximately 150 universities in the United States out of several thousand. 

 

Dr. McFarlane noted the information presented by Chancellor Nichols and Vice Chancellor Miles indicated much of the $81 million worth of research performed last year was done by UNR, indicating UNR is a true research and doctoral university.

 

Dr. McFarlane called the millennium scholars a wonderful program, with 70 percent of the freshman class enrolled under that program.  He noted UNR has the highest retention rate for those students under the millennium scholarship program.  He added growth at UNR has been the highest in the system.

 

Dr. McFarlane agreed with previous comments that an increase to address the cost of living is one of the most critical needs for the university.  He drew attention to the request for a $2.8 million startup for the pharmacy school.  He stated the first year will not require the entire sum, but funds will be used to hire faculty.  He said the program will be fully articulated among the community colleges, UNR and UNLV.  He stressed the shortage of pharmacists in the United States and in Nevada.  He declared UCCSN and the country cannot afford to downgrade the training for pharmacists. 

 

Dr. McFarlane pointed out the university initially intends to use existing faculty, which will result in some savings, with some of the teaching falling to pharmacology faculty at the medical school.  He added construction of a building is not being considered at this time, either.

 

Dr. McFarlane noted there are three items needed for the School of Medicine, the crucial one being financial management.  He said the school is a $70 million operation, and it deserves an appropriate financial team to deal with problems inherent within the school system and within the health care system.  He said the second need is for research technicians to keep equipment calibrated, and that relates directly to the caliber of productivity. 

 

Senator Raggio asked what portion of the $1.3 million is related to each of the three items needed.  Dr. Ashok K. Dhingra, Vice President, Administration and Finance, Public Service Division, University of Nevada, Reno, University and Community College System of Nevada, responded.  Dr. Dhingra said the amount requested for the biennium for financial management is $300,452, for research technicians is $302,375, and for the pediatric diabetes program is $759,000.  Dr. McFarlane said the latter may be requested in the form of a bill draft. 

 

Dr. McFarlane stated that in 1983 discussion began with the Legislature about creating an ethics and health policy center.  The statewide Sanford Center was instituted by the Legislature in 1987, and was funded through a Robert Woods Johnson grant.  He said the Robert Woods Johnson grant has come to an end, and $746,700 is requested for the Sanford Center.  He noted society has become increasingly interested in end-of-life issues, and the center provides support and guidance on those issues. 

 

Senator Raggio acknowledged the program has been outstanding for people dealing with terminal illness.  He asked whether any other funding is available.  Dr. McFarlane responded the university is currently pursuing other sources.

 

Dr. McFarlane noted the entire $1.8 million requested for start-up operation of the Redfield campus will not be needed in the first year of the biennium.  Senator Raggio asked when construction will be completed and when move-in is anticipated.  Dr. McFarlane responded the construction should be completed by the summer of the first year of the biennium, but operating costs will start before that time.  He explained it will be necessary to start hiring before construction is completed.  He noted the Redfield campus is a cooperative effort between the community colleges and the university in the north, and it will provide outreach to the community.  He said he is working with WNCC and TMCC on the project.

 

Dr. McFarlane stated EPSCoR funds are provided by the federal government to stimulate research, and the money has been leveraged into the economy.  He explained approximately 40 percent of the EPSCoR funds will go to the university and will provide the match for federal funds.  He said UNR has one of the highest rates of success in the nation for funded grants, above 60 percent, which he said is unheard of in much larger universities.  He said to bring in $81 million on $131 million of requested grants speaks to the quality of the scientists.  He declared that money stimulates growth and it has a great economic impact on the entire area. 

 

Mrs. Chowning complimented the university on outreach to the K-12 programs in the state, especially the students whose major is Spanish who assist.  She said this activity gives the college students experience and effects savings for the state. 

 

Great Basin College – Budget Page UCCSN 64 (Volume 1)

Budget Account 101-2994

 

Dr. Ron Remington, President, Great Basin College, Elko, University and Community College System of Nevada, handed out a brochure depicting GBC requests for the upcoming biennium (Exhibit G).  He noted many of the requests have already been expressed by others.  He said last session GBC anticipated enrollment of 30 students in the elementary education program, but there are 89 students.  He added the college anticipated the first student would graduate in a couple of years, but one person already completed the requirements in December and 18 will graduate in May.

 

Dr. Remington reported the governing board has recommended a bachelor of applied science program.  He said the funding and curriculum are in place for the integrative and professional studies program, but it has not been approved by the governing board. 

 

Dr. Remington drew attention to the back of Exhibit G depicting the traditional service area.  He voiced his expectation the college will draw from a larger area now that it is offering bachelor degrees.  He pointed out it is challenging to serve such a large rural area, and the distance education area has expanded.  He said the school has focused on short-term employment, because, when mining is in a slump, GBC attempts to offer more programs in Ely and get people back on the job.

 

Dr. Remington reminded the committee it had approved $200,000 two sessions before to enhance the Ely facility.  Calling it a lovely facility, he invited the Legislators to visit it.  He said a contract was entered into with the Ely State Prison and many “talented” inmates worked on the project, enabling GBC to add an additional 5,000 square feet.  He stated $200,000 was spent on the project and it resulted in a facility worth about $700,000.  He reported the quality of the work was outstanding. 

 

Dr. Remington said the high tech center funded during the last session is under way and on schedule, with an anticipated completion date in August.  Senator Raggio asked whether it is located near the high school.  Dr. Remington replied the two properties abut.  He said the center is technically on university property, but it is adjacent to the high school.  He said the college has developed a fine relationship with the school district and the center should be of great help to both high school and college students.  He added GBC hopes the center will provide a home for professional development programs.

 

Dr. Remington related GBC was awarded $4.5 million by the Reynolds Foundation to enhance the campus.  He drew attention to the pictures in Exhibit G showing the bell tower and an amphitheater, among other projects being funded by the foundation.  He said most of the requests of the college have been addressed by Chancellor Nichols and Vice Chancellor Miles.  He noted the $930,0000 funding required for baccalaureate programs is ongoing, not new, funding, but it is included in the estate tax.  He said a portion of the $300,000 that appears to be new funding actually is, because GBC is requesting additional funds to support the nursing program.  The other $130,000 is earmarked for existing baccalaureate programs.  He talked about the nursing shortage and said the college would like to offer an associate degree for nursing and then build upon it for a bachelor of science degree in nursing. 

 

Regarding capital projects, Dr. Remington said the request to the system was perceived as a high-tech center, which he claimed it is not.  He said funds were requested for a facility to accommodate electrical and instrumentation programs that currently operate off campus. 

 

Nevada State College at Henderson – Budget Page UCCSN-80 (Volume 1)

Budget Account 101-3005

 

Dr. Richard Moore, Founding President, Nevada State College, University and Community College System of Nevada, addressed the committee.  He recollected that during the last session a bill was passed providing for a committee to study whether there was a need for a state college in Henderson.  He said if the committee found there was a need, it was to formulate a plan of implementation for a college.  The committee selected Dr. Nichols, then a senior academic planner, to perform the tasks set forth in the bill.  As a result, he said, the committee decided there was a need for the college and presented a plan to the Board of Regents. 

 

Dr. Moore drew attention to the mission statement in a handout (Exhibit H) indicating the first priority of the new school will be to prepare quality teachers for Nevada’s K-12 school districts.  He related the Clark County School District has indicated 20,000 new teachers will be needed over the next 10 years.  He said the second priority will be to ensure the smooth transition of students from community colleges to colleges that offer baccalaureate degrees.  He said fulfilling the need for professional health-care workers is high on the list of academic priorities.

 

Dr. Moore said the board honored him by appointing him the founding president of the college.  Dr. Moore noted he will have no contract in the event the Legislature chooses not to fund the college.  He indicated the endeavor will help the state as demand for college grows and he believes it is worth putting his future at risk.  He reported three task forces have been established, one of which is to decide on the architecture for the campus.  He said an initial donation of over 200 acres has been received, and he estimates the school will eventually encompass 400 acres.  He noted the donation is the largest made to Nevada for higher education and has a value between $30 million and $35 million.

 

Dr. Moore reported some 30 people on the architectural committee have challenged not only Nevada architects, but also those from around the world, to bring in the best plan.  He said academic planning is being considered by people in the Las Vegas Valley.  He pointed out the board recommended $3 million for start-up, whereas the Governor has recommended $1 million.  He opined if only $1 million is approved, the planning will be left to the administrators, but planning would be better if faculty can join in.

 

Dr. Moore stated those involved hope to open the college for 1,000 students in 18 months.  He said the Governor recommends a $7.2 million budget for operation in the first year, and $16 million towards building the project.  He noted the board has agreed to scale back the building if necessary.

 

Senator O’Donnell asked whether it is anticipated that operational costs will be met by revenues.  Dr. Moore replied the state’s contribution will be approximately $5.6 million and student registration fees will cover the balance.

 

Ms. Giunchigliani requested that figures be provided from UNLV on costs to use in comparison at a subsequent meeting.  She asked where the students will come from.  Dr. Moore replied many will enroll as a result of the millennium scholarship program.  He said since Nevada has the lowest rate in the country of high school graduates continuing their education, there is a concerted effort to encourage more participation.  He added NSC should enable more students from the community college to transfer to higher education for teaching and nursing.

 

Ms. Giunchigliani asked whether there will be duplication of courses offered at UNLV.  Dr. Moore responded NSC and UNLV are working together to work out such decisions by the end of spring.

 

Senator Raggio asked whether it is certain there will be no acquisition costs for the land.  Dr. Moore replied, “The land is free.”

Truckee Meadows Community College – Budget Page UCCSN-76 (Volume !)

Budget Account 101-3018

Dr. Rita Huneycutt, Interim President, Truckee Meadows Community College, Reno, University and Community College System of Nevada, gave the committee a two‑page handout (Exhibit I) displaying TMCC campus trends, requests, and other information.  She drew attention to the logo featuring the celebration of 30 years of operation at TMCC.

Dr. Huneycutt noted TMCC offers over 50 associate degrees and associate programs.  She pointed out enrollment has increased by over 46 percent in the last 5 years.  She said capital improvement requests now in progress include a student center and a high technology center.  She stated the faculty improvement request includes phases two and three of an office center which is fourth on the Board of Regents’ priority list. 

Dr. Huneycutt explained the student center will house existing student services currently scattered all over the campus and it will provide expansion of the culinary arts program.  She said renovation of 55,000 square feet will allow expansion of the current education programs, which are now capped by limited space.  She reported the Allied Health Science Building project needs funding for the feasibility study and design to accommodate expanding science programs.  She asserted access to science labs is the primary instructional bottleneck for students seeking degrees in allied health services.

Dr. Huneycutt pointed out remarks on the second page of the handout, which relate to workforce development and K-12 partnerships.  She stated the programs regarding ethnic diversity emphasize extensive participation in the training of the area’s ethnic community.  She noted those programs have been instrumental in the increase of the ethnic student population from 23 percent to 28 percent.  She stated the minority group at TMCC has been the fastest growing since the fall of 1994. 

Dr. Huneycutt asserted TMCC’s request for the hold harmless formula is critical to maintaining the faculty and services.

Community College of Southern Nevada – Budget Page UCCSN-72 (Volume 1)

Budget Account 101-3011

Dr. Robert Silverman, Interim President, Community College of Southern Nevada, University and Community College System of Nevada, asked the committee to look over his handout (Exhibit J) outlining accomplishments and issues related to the college.  He boasted of the accreditation visit that recognized CCSN as an outstanding college in meeting the needs of students and in measuring how these needs are met through assessment of learning outcomes.

 

Dr. Silverman reported the college has many new partnerships, with hospitals and medical centers, technological and media corporations, and several other entities interested in supporting programs at the school.  He said CCSN has established a workforce development center, which he characterized as a one-stop site similar to the one at TMCC. 

Dr. Silverman said the Science Experience Building is under construction and the health sciences and biotechnology building is on the Governor’s list of recommendations.  He said land acquisition is needed next door to the Charleston campus, an acquisition supported by the regents.  He noted the telecommunications building is not on the Governor’s list but is a viable project with CISCO and Sprint, two Las Vegas companies, acting as partners.

Dr. Silverman said there has been outreach to rural areas with facilities being planned in Mesquite and Pahrump.  He noted three high-tech centers approved at the last legislative session are under construction. 

 

Senator Mathews asked whether administration has been shifting to the Charleston campus because of growth in that area.  Dr. Silverman answered, “No,” saying two administrative offices are maintained, one at Charleston and one at Cheyenne.  Senator Mathews asked whether there has been a decline in student population at the Cheyenne campus.  Dr. Silverman replied Cheyenne continues to be the largest campus and there is room to grow.  He said procurement of a “telecom” building will ensure the future of laboratory space.  He indicated Cheyenne has been impacted primarily on laboratory space and support will be needed soon.

Western Nevada Community College – Budget Page UCCSN-68 (Volume 1)

Budget Account 101-3012

Dr. Carol Lucey, President, Western Nevada Community College, University and Community College System of Nevada, distributed a handout on WNCC (Exhibit K).  She said the inside cover includes the new strategic goals for 2000 to 2006, and the brochure speaks to updates of capital projects, capital requests, and priority needs for the coming biennium.  She noted some of the requests and needs have already been addressed by Chancellor Nichols.

Dr. Lucey pointed out the college is in transition, and WNCC intends to increase the number of degree-seeking students by 300 percent over the next 5 years.  She declared meeting that goal will make a major contribution to the state.  She opined the goal is consistent with the overall strategic direction set when the Legislature and Governor established the millennium scholarships. 

Dr. Lucey recited specific recommendations related to improving student success by improving academic advisement and academic outcomes assessment, and by connecting strategic goals to the budget.  She said a college transformation committee is in place to address those concerns and guide the college as it changes.  She said the library and student center projects enabled the college to do some important logistical planning for future growth on the campus, and to develop a flood control plan for the campus. 

Dr. Lucey declared it is time to give attention to master planning and curriculum planning in the service area.  She said in addition to the build-out, furnishings, and equipment for the Carson City Library Student Center project, she has requested funding for a facilities master plan for the Fallon campus.  She reiterated a needs assessment should be done for the rural areas.  She opined that will produce a clear need for programs such as wildlife management, veterinary science, land and water resource management, and alternative energy technology.

Dr. Lucey said more laboratory facilities will be needed to provide the technology for the programs listed above.  She said the last facility built in Fallon took place in 1991.  She pointed out that during the last biennium the Legislature funded a feasibility study for high-tech centers in the rural area, and one has been completed regarding funding in Yerington, Fernley, and Douglas County.

Dr. Lucey noted there are priorities listed in Exhibit K that may not need additional funding, but that would be very helpful in improving the quality of the system overall and WNCC in particular.  She requested the Legislators give consideration to the flexibility proposal which she opined will allow WNCC to enact strategic planning and link it to the budget.  She also offered support for the UCCSN performance funding proposal. 

 

Desert Research Institute – Budget Page UCCSN-60 (Volume 1)

Budget Account 101-3010

A handout (Exhibit L) was distributed by Dr. Stephen Wells, President, Desert Research Institute, University and Community College System of Nevada, describing the priorities approved by the Board of Regents and the Governor’s recommendations.  He noted the inclusion of operation and maintenance funding is new to the funding formula for DRI. 

Dr. Wells declared funding provided for activities such as EPSCoR, the Applied Research Fund, and basic research has made an incredible difference at DRI.  He said as a result two new integrated science programs, one on the watershed sustainability at Lake Tahoe, and one on the management of arid lands, have brought in approximately $2 million in revenue within an 8-month period.

Dr. Wells stated support by the Legislature fires DRI’s entrepreneurial spirit.  As an example, he said, DRI set a target of $19.9 million in research funding for the last biennium, but received $25 million, an increase of 25 percent.  He said the publication target was exceeded by 33 percent; National Science Foundation grants were $4.1 million in the 1997-99 biennium and $7.3 million in the last biennium, an 80 percent growth in funds and a 32 percent growth in the number of awards. 

 

Dr. Wells pointed out that $3 million invested in EPSCoR by the university system over the past 3 years leveraged $13 million in National Science Foundation funding, and resulted in more than $30 million in federal funding.

 

Dr. Wells said DRI has stayed at five academic components over the past 42 years.  He said strategic planning for the next 10 years revealed an interest in environmental technologies.  He said one request on the priority list supports environmental technologies. The request focuses on engineering of advanced environmental technologies, monitoring of the environment, information technology and development of tools for visualization and managing of environmental data, and engineering of the technology for alternative energy systems.  He added there will be a request for information technology positions, as well as for the director of a research park that is on the verge of moving forward through community support.

 

Dr. Wells said the number one priority of DRI is $1.2 million for the tenant improvements to finish the shell of the 60,000 square foot structure in Las Vegas.  Another project the Governor did not recommend is $5.6 million for a 30,000 square foot building to house small start-up businesses and high-tech industries that would partner with DRI and other components of the university system.  He said DRI is proposing $3.7 million from the state, with the remaining $1.9 million from other sources, which DRI does not have at this time. 

 

Senator Raggio recessed the meeting at 12:41 p.m.  He reopened the hearing at 2:05 p.m.

 

AGING SERVICES

 

Mary Liveratti, Administrator, Aging Services Division, Department of Human Resources, opened her remarks by saying, “If aging is not your issue, it soon will be.”  She stated Nevada has had, and is expected to continue to have, the highest percentage increase in its senior population in the nation.  She reported the increase was 55 percent between 1990 and 1998.  She said the National Association of Homebuilders reports Nevada is the highest rated state in terms of demand for households headed by persons over 55 who will be in the housing market between the years 2000 and 2006.

 

According to Ms. Liveratti, Nevada is projected to have the greatest success relative to its population in attracting persons 55 and older from out of state.  She described such new residents as those who have moved away from extended family and former associates.  She said as these residents age, their need for many services will increase, especially those related to caregiving, because they may not have the informal support they previously enjoyed in their former locations.  She noted their needs are compounded when a spouse dies, and the survivor often faces limited resources.

 

Ms. Liveratti called the situation a “time bomb of future needs” resulting from the influx of new senior residents.  She said Nevada ranked 49 out of 50 states in the percent of its population 85 years and older, which is the group with the greatest need for services.  She interpreted the situation to mean the demand for services will increase greatly over the next 10 years.  She warned Nevada should prepare for the aging of those in their 60s and 70s and for the baby boomers who will start turning 60 in the year 2005.

 

Ms. Liveratti stressed the importance of elder rights, community-based services, and grants management and resource development.  She explained the elder rights unit provides advocacy for Nevada seniors aged 60 and older and is comprised of three programs.  Longterm care ombudsmen provide advocacy for institutionalized seniors; others provide compensation, assistance, and advocacy for frail, at-risk seniors living in the community; and the third, Elder Protective Services (EPS), is responsible for investigating alleged abuse, neglect, exploitation, and isolation of seniors in the community.

 

Ms. Liveratti stated, “The home and community care services are vital components of the longterm care continuum and offer an important alternative to institutional care.”  She said the Community Home-Based Initiative Program (CHIP) offers independence to seniors in the least restrictive environment possible.  The CHIP program offers a variety of services, including case management, in-home attendants, homemaker services, emergency services, and others. 

 

Another program described by Ms. Liveratti is the Group Care Waiver Program that provides supervised care 24 hours a day in a residential facility, and is less expensive than nursing-home care.  She added the Homemaker Services program provides in-home services, such as general housekeeping, laundry, shopping, and preparing light meals.  She explained the community resource development unit coordinates community services, provides technical assistance, manages grants, and coordinates program development and enhancements.

 

Ms. Liveratti elaborated, saying grants management includes federal funds received under the Older Americans Act, state funds for senior services and transportation, and the Independent Living Grants Program funded by the tobacco settlements. 

 

Ms. Liveratti said the State Health Assistance Program provides information and counseling on Medicare, Medicaid, Medigap, and long-term care insurance, while the Senior Ride program provides subsidized taxicab rides in Clark County.  She stated the three primary initiatives in the budget for the next biennium are expansion of community-based services, expansion of longterm care ombudsmen services, and organizational improvement. 

 

HR, Aging Services Grants – Budget Page AGING-1 (Volume 2)

Budget Account 262-3140

 

Ms. Liveratti addressed budget account 262-3140, which she said is the result of the tobacco settlement.  It is a new budget account that supports the Independent Living Grants Program.  She reiterated the funds support services to enable older persons to live independently.  She noted there are no state funds in the budget account.

 

Ms. Liveratti pointed out a list of grant awards is included in the Nevada Department of Human Resources presentation book. (Original is on file in the Research Library as Exhibit E to the Minutes of the Budget Subcommittee of the Legislative Commission for January 24, 2001.)  She said in the first year of funding, FY 2001, the division received over 80 grant applications, totaling over $19 million, but less than $4.5 million was available.  She stated a variety of services have been funded. 

 

According to Ms. Liveratti, the funds enabled the division to grant twice the amount of federal funds that were received under the Older Americans Act.  She anticipates services will be provided to more than 7,000 seniors during the first year to allow them to live independently. 

 

Ms. Liveratti said Nevada was selected as one of 16 states to receive an Alzheimer’s Disease Demonstration Grant for the next 3 years.  She explained independent living funds were used to match the grant which totals over $1 million during the grant period.  She noted the grant will allow support for persons under 60 years old as well as those over age 60 with Alzheimer’s disease, will provide for outreach to minority care-givers, and will allow development of services in rural areas.  She said community partners include local Alzheimer’s chapters and an Alzheimer’s diagnostic and treatment center at the School of Medicine. 

 

E-450  Reward Self-sufficiency – Page AGING-2

 

Under enhancement E-450, Ms. Liveratti explained, a request is made to adjust funding for independent living grants based on the most current projection of the tobacco settlement funds.  She said an auditor position is requested to conduct annual fiscal evaluations of programs receiving the funds, and to prepare an annual report for the Governor and Legislature. 

 

Senator Raggio asked how much will be available from the grant each year.  Ms. Liveratti projected it will be $5.6 million each year.  She added the grant analyst position was approved by the Interim Finance Committee (IFC), and the only new position requested is the auditor.

 

HR, Aging Older Americans Act – Budget Pate AGING-4 (Volume 2)

Budget Account 101-3151

 

Ms. Liveratti listed the funding included in budget account 101-3151, the Aging Older Americans Act.  This budget provides general administration for the division, grants management, and elder rights.  She explained the funding is derived from federal funds, the General Fund, the Taxicab Authority Fund, Oil Overcharge Fund, and Senior Ride coupon sales. 

 

Ms. Liveratti noted there has been a 46 percent increase in the number of investigations completed by long-term care ombudsmen between FY 1997 and FY 2000.  She said the number of complaints in the past year increased 24 percent.  She pointed out 9,631 complaints were made in FY 1999, and there were nearly 12,000 complaints in FY 2000. 

 

M-200  Demographics/Caseload Changes – Page AGING-6

 

Ms. Liveratti said an additional ombudsman position is requested in decision unit M‑200. 

 

E-275  Working Environment and Wage – Page AGING-8

 

Ms. Liveratti declared planning and analysis is sporadic, demonstrating a critical need for management functions to be performed on a continuing basis.  She asserted the division must provide leadership for the aging service network to prepare for the impact of the growth in the number of aging residents in the state.  She explained the request for one management analyst position will fulfill a need to assist with policies, planning, and analysis, and another will assist with budget development, analysis, and will conduct cost analysis of existing programs.

 

Ms. Liveratti stated that personnel issues are overwhelming for the division staff.  She pointed out the agency grew from 75 positions in FY 1999 to 173 in FY 2001 because of the transfer of Title XX homemaker programs and Elder Protective Services.  She explained the personnel involved in homemaker programs find the programs to be complex and time consuming.  Also, she said, there has been a dramatic increase in the number of workers’ compensation, catastrophic leave, and disability issues.  She noted there is no staff position designated solely for personnel, so a request is made for 1 personnel Technician. 

 

Ms. Liveratti stated the division is struggling to maintain the information systems needed to manage the programs, so a computer technician is requested.  She noted there are nine major databases for the programs that require ongoing analysis and maintenance, and there is no position dedicated to overseeing 117 personal computers and local area networks in four regional offices.  The lack of technical support for both hardware and software impacts the ability of the staff to complete work in an efficient and timely manner. 

 

Ms. Liveratti said there is concern about communications within the division resulting from the doubling of the staff, so a wide area network is requested to tie the regional offices together.  She explained that a wide area network will provide access to statewide database information, document management control, individual E-mail accounts, and statewide activity coordination.  She noted a portion of the cost has been allocated to budget accounts 101-3151, 101-3146, and 101-3152.

 

In response to a question from Mr. Dini, Ms. Liveratti assured him the budget covering meals in the rural areas is still included.  She said it can be found under budget account 101-3151 on page AGING 5 in The Executive Budget under State Senior Services category.

 

Mr. Hettrick asked which account would apply to skilled nursing facilities.  He noted the nursing facilities in Douglas County have closed because of low payments, and he wondered whether a 3 percent raise would be adequate, since California reimburses at $212 a day and still loses money, whereas Nevada reimburses at $106.  Ms. Liveratti explained the Aging Services Division does not oversee skilled nursing, that it falls under the aegis of Medicaid.  She commented that is one reason the director of the Department of Human Resources is promoting the undertaking of a long-term strategic plan, not only for seniors now, but for those who will be reaching that age within the next decade.  Ms. Liveratti noted Medicaid also has a proposal for a rate study for hospitals, nursing homes, and in-home service providers.

 

E-451  Reward Self-Sufficiency – Page AGING-9

 

Senator Raggio asked why there is a negative number under Appropriation Control in module E-451.  Joel Pinkerton, Budget Analyst, Budget Division, Department of Administration, acknowledged it is an unusual entry and stated he will investigate and report back.  He surmised it was a later adjustment to the original agency request to balance the amount being received from the Taxicab Authority budget.

 

HR, Senior Services Program – Budget Page AGING-13 (Volume 2)

Budget Account 101-3146

 

Ms. Liveratti reported the budget contains the Community Home-Based Initiatives Program (CHIP) and the Group Care Waiver Program, funded by Medicaid, state funds, client co-payments, and tobacco settlement funds from the Independent Living Grants Program.  She said CHIP serves 1,003 frail older persons, 892 of whom are Medicaid recipients, and 111 of whom are state funded.  She said there are 690 on the waiting list for Medicaid/CHIP and 169 for the state/CHIP.  She said the average wait is about 3 months in the north and 6 months in the south of state.  She noted high-risk people are moved to the top of the waiting list.

 

M-200 Demographics/Caseload Changes – Page AGING-14

 

Ms. Liveratti said M-200 requests the Medicaid/CHIP program be expanded to accommodate demographic growth.  She noted 75 percent of the clients were over the age of 75 during the last fiscal year, and she estimates the number of clients needing service will grow by 6 percent in FY 2002 and 5 percent in FY 2003.  She said that means another 175 clients will need CHIP services.

 

Ms. Liveratti stated the tobacco settlement funds will be used to match the federal Medicaid funds.  The request includes contracted services, 2 Social Workers, 1 Program Assistant, and 1 Computer Assistance Technician. 

 

E-429 Nevadans with Health Insurance – Page AGING-16

 

Under E-429, Ms. Liveratti said, there is a request to expand CHIP further to address the waiting list and serve another 160 Medicaid/CHIP clients.  There is another request for contracted services, 4 Social Workers, 1 Supervisor, 1 Accounting Clerk, and 1 Program Assistant to serve another 331 seniors.

 

E-430  Nevadans with Health Insurance – Page AGING-16

 

Ms. Liveratti said E-430 requests expansion of the Adult Group Care Waiver Program for the elderly.  According to Ms. Liveratti, 101 clients are currently being served by the program, and there is a waiting list of only six clients.  She explained the long term care subcommittee recommended raising the income limit to 300 percent of Supplemental Security Income (SSI) which is the current level for CHIP and nursing home eligibility.  She requested an increase in the program to serve 201 over the biennium and to add 2 Social Workers and 1 Program Assistant.

 

E-450  Reward Self-Sufficiency – Page AGING-17 

 

Ms. Liveratti noted it is becoming increasingly difficult to find contractors to provide in-home services for CHIP clients, so a rate increase of 3 percent is requested under E-450.  She stated the raise will amount to $183,862 in the first year, and $390,180 in the second year of the biennium.

 

Senator Raggio asked what rate that would be for the provider.  Ms. Liveratti responded that the rates vary.  An adult companion receives approximately $7 per hour, a homemaker receives $15, and a personal care provider receives $16, which she noted are the highest rates paid by the agency.

 

Senator Raggio asked how the budget may impact waiting lists.  Ms. Liveratti replied it attempts to meet the needs, but there will likely always be a waiting list because of the eligibility process.  She explained how the process works, which includes referrals to other agencies to provide some of the services an aging person might need.  She described it as brokering a service, and then monitoring the client’s condition. 

 

HR, EPS/Homemaker Programs – Budget Page AGING-19 (Volume 2)

Budget Account 101-3252

 

Ms. Liveratti explained the budget account serves homemaker and elder protective services programs funded primarily through federal Title XX.  She reported elder protective service workers open approximately 120 cases each month.  She said no significant increase in investigations is anticipated over the FY 2000 number, which was just over 2,000 investigations.  She noted 632 people are currently being served under the homemaker program, with a waiting list of 402. 

 

Ms. Liveratti remarked the homemaker program provides services not only to older people, but also to disabled adults.  She explained the eligibility for this program is different from that of the previous program.  She explained that the Title XX income criteria differs, and there does not have to be a high risk of being placed in a nursing home.  CHIP clients are more fragile, whereas homemaker clients are a little more independent, she said. 

 

M-200  Demographics/Caseload Changes – Page AGING-20

 

Ms. Liveratti said a request is made under M-200 to use tobacco settlement funds to provide services to an additional 100 people.  She indicated some of the clients presently receiving services under the program may be able to be served under the increase in the disabled waiver, which would open some spaces for disabled adults.

 

Senator Raggio interjected that will still leave 300 persons waiting.  Ms. Liveratti responded there may be some people who can be served under CHIP if it is increased. 

 

Ms. Giunchigliani asked how many are disabled and how many are more fragile.  Ms. Liveratti replied there are generally 25 percent who are disabled, and 75 percent who are older and more frail. 

 

Ms. Leslie said there has been some controversy in Washoe County relating to Elder Protective Services.  She noted there does not appear to be a request in the budget for more staff there.  Ms. Liveratti stated she believes there is adequate staff to respond to EPS complaints.  She explained there are two components in EPS, the actual investigation when the allegation is received, and ongoing case management.  She said there is a need for the latter, because often there is no criminal activity, but only that the person is not receiving needed services.  She reported there have been two round-table discussions within the past few months in Washoe County including law enforcement, social services, senior services, guardianship services, mental health services, and other personnel to devise a plan to meet those needs.  She reiterated that there does not seem to be any problem with the investigation side of the program, but there is difficulty meeting ongoing case management. 

 

Senior Citizens’ Property Tax Assistance – Budget Page AGING-23 (Volume 2)

Budget Account 101-2363

 

In reply to a question from Senator Raggio, Ms. Liveratti stated the Governor’s budget proposed to transfer the Senior Citizens’ Property Tax Assistance account from the Department of Taxation to the Aging Services Davison as a result of a fundamental review of state government.  She explained the program provides a tax rebate for low-income seniors.  She said the division did not prepare the budget.

 

Senator Raggio asked what the qualification requirements are and what the reimbursements are.  Ms. Liveratti answered those work on a sliding scale based upon income.  She said the highest rebate amount now given is currently 90 percent.

 

HEALTH DIVISION

Yvonne Sylva, Administrator, Health Division, Department of Human Resources, requested those present to turn to the Health Division section of the Nevada Department of Human Resources overview book handed out on the previous day.  (Original is on file in the Research Library as Exhibit E to the Minutes of the Budget Subcommittee of the Legislative Commission for January 24, 2001.)  She noted the Health Division has 21 budgets, including five for which new enhancements are requested.  She said only one enhancement will be derived from the General Fund.  She explained the budget includes ten total enhancements, but seven involve transfers from one account to another.

 

Ms. Sylva said the General Fund request represents 16 percent of the overall budget, and in the past 3 to 5 years the only real increase in budget requests have been due to inclusion of protease inhibitors for Sexually Transmitted Disease (STD) control at a cost of $1.3 million in 1997, and the transfer of the Bureau of Alcohol and Drug Abuse (BADA) into the Health Division in 1999, which includes $3.5 million of General Fund support.  Otherwise, she noted, the Health Division budget has remained basically flat.

 

Ms. Sylva described the structure of the division.  The division includes a seven-member board, which is statutorily “supreme in all matters as it relates to public health” but which has no authority over administrative matters.  She added there are seven bureaus, two of which are regulatory.  One, the Bureau of Licensure and Certification, licenses and certifies medical facilities and long-term care facilities, laboratories and their personnel, and emergency medical services.  The other is the Bureau of Health Protection Services that has responsibilities for certain portions of the Safe Drinking Water Act, environmental engineering, sanitation (which includes food and restaurants), and radiological health with oversight of the low-level waste site at Beatty.

 

Ms. Sylva said the five remaining bureaus include the Bureau of Family Health Services with responsibility primarily for maternal and child health; the Bureau of Community Health Services, which includes community nursing and family planning programs located in the 15 rural counties; and Bureau of Alcohol and Drug Abuse (BADA).  She called the Bureau of Health Planning and Statistics the “backbone” of health planning because it contains all the birth and death records and other records that provide a health history.  Additionally, the Bureau houses the cancer registry and the other 35 health databases in the division.

 

Ms. Sylva stated the Bureau of Disease Control and Intervention Services provides oversight of communicable diseases and chronic diseases such as breast cancer, and cervical cancer, and diabetes.

 

According to Ms. Sylva, the four functions of public health are to control and investigate the outbreak of disease and illness, collect and analyze data, educate and inform the public, and promote and protect public health and the environment.  She noted Clark County and Washoe County participate in the oversight of public health.  She said those four priorities are the basis of funding decisions and allocations of the Health Division. 

 

Ms. Sylva reported there have been many questions over the years regarding protease inhibitors.  She recalled in 1997 there had been a debate during the session because of the waiting list and inability to provide protease inhibitors to all persons with human immunodeficiency virus (HIV) and acquired immunodeficiency syndrome (AIDS), but currently 468 individuals in the AIDS Drug Assistance Program (ADAP) are being served with protease inhibitors, and there is no waiting in this program. 

 

Because of the inflationary rise in the cost of drugs, Ms. Sylva said the General Fund appropriation request has increased to $1.5 million, but the federal AIDS Drug Assistance Program (ADAP) grant has doubled from $3 million to nearly $6 million since 1997.

 

Ms. Sylva expressed pride in the new breast and cervical cancer screening program which, since 1998, has increased the number of women enrolled by 1,600 percent.  She said there were 500 women screened in 1998, and 7,871 in 2000, because of the efforts of staff and of community coalitions.  She noted many women diagnosed with cancer have received treatment, often pro bono, and there is a proposal to include any women screened under the Women’s Health Connection program to be able to access Medicaid funding.  She said the mobile “mammovan” has been a “Godsend” to the rural areas that so badly needed access to mammograms.

 

Ms. Giunchigliani asked how many “mammovans” are available.  Ms. Sylva replied the division has no van.  She said after a campaign effort by U.S. Senator John Ensign, funding was received to purchased a van which is situated in the northern part of the state for half the year, and in the southern part of the state for the other half year.  There is also a private company in northern Nevada that provides services in a mobile van.

 

Ms. Giunchigliani asked whether the division has considered adding services to those vans to provide more rural outreach.  Ms. Sylva said she believes the northern van made available as a result of the efforts of Senator Ensign and operated by the Rural Health Centers, a federally qualified health care center for the area, provides other services. 

 

Ms. Sylva noted over the past biennium low interest loans have been made to community water systems, a major issue in Nevada and in the country.  She stated $9.5 million in low interest loans have been made at an interest rate of 4 percent to community water systems to bring them into compliance with the Safe Drinking Water Act.  She said some are small, but some serve very large populations.  She added the loans have ranged from $50,000 to $5.5 million. 

 

Ms. Leslie asked how much was available for the loans.  Ms. Sylva replied the division allocated a total $9.5 million over the biennium, and the fund perpetuates itself. 

 

Ms. Sylva reported a bill passed at the last session related to the tobacco settlement that provides that a portion of the funds will be placed into a self-perpetuating public health trust fund under the Health Division, and mandates that no more than 2 percent of the funds be used for administrative costs.  She said the bill provides that the only money that may be expended from the account is the earned interest.  She said one staff person was added last November to provide oversight of requests for proposal (RFP) that will be issued and to monitor the grants made from the fund.  Currently, she said, about $220,000 is available in the fund, and she expressed uncertainty as to whether any grants will be allocated in FY 2001 or whether the funds will accumulate and be granted in FY 2002. 

 

Ms. Sylva noted the Health Division has been part of the fundamental review process of state government, and the division has also done an internal review.  She stated the division took the opportunity to reorganize the delivery of services to communities and, when possible, transferred responsibilities to the communities.  She explained some of the functions of the breast and cervical cancer program have been allocated to the local level where the service may be more effective. 

She said staff had been traveling too often to Las Vegas, and it made more sense to base the services in Clark County. 

 

Commenting on the data warehouse, Ms. Sylva reiterated the Health Division has more than 35 separate databases, and it has become obvious the data should be cross-referenced.  Earlier in the biennium she had requested a review by the Department of Information Technology (DoIT), and based on recommendations from DoIT, several positions were transferred from one budget account to another, with the approval of IFC.  She said this will enable the Health Division to centralize database functions and provide easier access to data.  This, in turn, will allow the division to capture more federal funding and allow them to continue activities that started through grants but for which the grants have now ended.  She acknowledged the concern of Legislators who question programs initiated through federal funds, because the funds are not ongoing, and she opined the changes effected by DoIT will enable the Health Division better opportunities to find new federal grants.

                       

Mrs. DeBraga asked how emergencies requiring extra manpower, such as the leukemia situation in Fallon, are funded.  Ms. Sylva responded one of the major priorities of public health is to investigate and control the outbreak of disease.  She said the Health Division recently created the office of epidemiology.  Historically the state epidemiologist, who also served as bureau chief of the Bureau of Disease Control and Intervention Services had control over 55 staff members and a $15 million budget.  She said she instructed the epidemiologist to focus exclusively on Fallon.  She stated the division is able to mobilize rapidly for emergencies, and the state health officer and epidemiologist have been working long hours solely on the investigation of the situation in Fallon.  She admitted there could be some question of procedure should another major problem arise at the same time.

 

Ms. Sylva reported the Division of Internal Audit made a formal review of the water-related functions of the Bureau of Health Protection Services and the Division of Environmental Protection.  She noted there has been particular concern related to the Safe Drinking Water Act as to whether or not duplicate services were being provided, and whether services were being provided in the most cost-effective manner.  She declared the Division of Internal Audits was very helpful in identifying areas in which there could be better coordination of activities, and yet found no evidence of duplication of services.  She stated the audit indicated proper services have been delivered, and coordination in the field has been successful, with no need to consolidate the two divisions.

 

Ms. Sylva recalled that in 1989 when she started working for the Health Division, the testimony on Special Children’s Clinics (SCC) was very much the same as testimony today.  She said there are still waiting lists, with great demand.  She reported the division has attempted to determine what role government should play regarding early intervention services.  She admitted there is no set of answers, and there is insufficient staff and time to conduct a true analysis of the problem.  However, she said, the waiting time in northern Nevada has been reduced to a week for an initial appointment, but in Las Vegas the best the division has been able to achieve is a 4-week wait.  She acknowledged there seems to be no way to keep up with the problem because of population growth. 

 

Ms. Sylva asserted there must be an investment over the next biennium to conduct a major review of how early intervention services can be provided, and to either fully fund existing procedures or change the way early intervention is handled.  She said the Special Children’s Clinics and some of the other intervention programs are often the only services available, and it is time to find others willing to assume some of the responsibilities from the state.

 

Ms. Sylva said the Health Division faces many of the same problems as other state agencies, such as recruitment and retention.  She related that some classifications are more difficult than others, such as engineers, nursing staff, and particularly those working in licensing and certification.  She noted sometimes employees are recruited, but are gone the next day, and a lot of training investment goes into such positions as nurse-surveyor.  She said it takes at least 12 weeks to fill a position, and there is a turnover rate of 30 percent, with a current vacancy rate of 10 percent.  One agency within the Health Division, she reported, has had a 66 percent turnover rate. 

 

Ms. Sylva reiterated two bureaus of the Health Division have undergone audits by the LCB Audit Division during the biennium.  The first was the Bureau of Licensure and Certification with focus on the lack of a management information system.  She acknowledged information systems are often put together just sufficiently to keep going from day to day.  Since the audit, the division has been working closely with DoIT to put together a good management information system to allow tracking of complaints and responses.  She stated DoIT also has staffing problems, and there have been three different persons from DoIT working with the Health Division. 

 

Ms. Sylva said the other audit was the one requested by the Health Division when  BADA was transferred into the division on July 1, 1999.  She voiced her belief alcohol and substance abuse is a major public health issue, perhaps the leading one.  She included tobacco use in that scenario.  She reported the bureau chief resigned when the transfer took effect, adding to the normal problems of unfamiliarity with operation of BADA.  She said BADA had five bureau chiefs within 4 years.  She expressed hope the bureau will never again face issues such as those faced in recent years.  The division will introduce legislation to change some of the operations of BADA.  She opined the bureau chief should be a classified position which would provide protections for the chief that are not often provided at that level when the person is unclassified.  She also voiced the belief the position should function within the same policies and procedures as every other state employee, and should not be subjected to having to make decisions or implement decisions made by others that will not be in the best interest of the bureau. 

 

Ms. Sylva clarified she did not mean to suggest that any improprieties occurred, but she added, “Bureau chiefs need to feel some degree of comfort in their positions to be able to carry out the functions of their job, and not operate under the potential threat of losing their job, whatever the reason may be.”

 

Ms. Sylva related BADA has had four audits since transferring into the Health Division in July 1999, which has been a great strain.  She added the turnover rate in staff has been 66 percent, and there are very few people left in BADA from the time it was transferred.  She declared the bureau chief, Maria Canfield, hired in December 1999 deserves the utmost credit for many of the accomplishments of BADA. 

 

Ms. Sylva said findings in the audit conducted by the Legislative Counsel Bureau Audit Division were substantial, and will allow the Health Division to rebuild BADA and allow for the measurement of outcomes.  She noted a working relationship has been developed with alcohol and drug treatment programs within the state, and each entity is supportive of the other.  She said a 13-member advisory board was established to provide input as to what has been right, and what has been wrong, allowing for the division to correct them.  She recalled that last session there were bills introduced based on the fact that BADA had not been in a position to promulgate regulations to review the programs they funded.  She admitted the regulations have not yet been adopted, but the division has worked on a regular basis with the programs that will be regulated. 

 

Ms. Leslie expressed disappointment that the funding appropriated last session to increase substance abuse treatment for adolescents is gone and will not be continued.  She stated, “It looks like we are taking a giant step backward in terms of treatment.” 

 

Ms. Sylva said there were many mandates included in the legislation, including funding $500,000 for adolescent treatment programs, and this was funding designed for pilot projects through the Family Resource Centers.  She declared there is a great amount of effort involved in putting together RFPs, reviewing applications, allocating funds, and monitoring funds, but, she said, all were accomplished in a timely fashion.  She indicated there was no objective grant‑award process in place when BADA came into the division that could withstand the test of being objective.  She opined there is now a grant process in place that has suitable criteria with no subjectivity, and funds were allocated in the best way possible.

 

Ms. Sylva said a Senate bill last session required the Health Division and BADA to adopt regulations relating to the operation of half-way houses, a major concern in the Las Vegas area particularly.  She noted the concerns in Las Vegas are primarily related to proximity, similar to the concerns raised regarding group residential facilities.  She opined that issue is best resolved at the local level in terms of zoning issues.  She said the division had no authority to include those types of issues in state regulations, but the division continues to work with Las Vegas on the problem. 

 

Senator O’Donnell disagreed, explaining that the reasons for having half-way houses in safe areas are to ensure clients can make their way back into the community, and to ensure the environment surrounding the half-way houses is used as a positive influence.  He suggested the substance abuse organization does the opposite by creating a ghetto when nine or ten group homes are placed in one area.  He called it unfair and a “block-busting type of arrangement” when several half-way houses are placed in one community.  He reiterated it is not fair to homeowners or students, or the residents of half-way houses because the positive influence soon deteriorates.  He proposed the Health Division find a way to mitigate the situation regarding half-way houses.

 

Ms. Giunchigliani agreed and commented the issue of proximity is only one part, and she offered her belief the Clark County Commission is acting by adopting a zoning ordinance similar to the suggestions voiced by Senator O’Donnell.  However, she said, there is a secondary issue that some of the homes are not BADA-certified half-way houses.  She commended Maria Canfield for being helpful in recognizing that, and that there may be a problem with who does the licensing.

 

Senator Coffin suggested it could be useful to determine where methadone is supplied, because, he asserted, the proximity to methadone or a bus route is a key factor in where people choose to live.  He noted many people who use this treatment choose to live near the clinics. 

 

Ms. Sylva thanked the legislators for their comments and offered to work with them on any of those issues related to half-way houses in southern Nevada.  She said another piece of legislation was an Assembly bill that created a Board of Examiners for Alcohol and Drug Abuse Counselors.  She said that function is no longer part of the BADA budget and now has its own budget, and the board now certifies counselors.  She opined certification should not be mixed with treatment. 

 

Ms. Sylva acknowledged there is concern within BADA because funding for substance abuse prevention and treatment block grants has certain requirements.  She said the Synar Amendment requires that each state receiving the block grant must pass a law prohibiting the sale of tobacco to children under the age of 18.  It also requires that annual probability studies be conducted of all outlets to ensure the youth rate of purchasing tobacco products does not exceed 23 percent.  She said otherwise the potential penalty is withholding up to 40 percent of the Substance Abuse Prevention and Treatment (SAPT) block grant, which in Nevada means the potential withholding of up to $3.8 million. 

 

Ms. Sylva pointed out it is clear the SAPT funds cannot be used for enforcement.  She reported last year the United States Supreme Court ruled that the Food and Drug Administration (FDA) had no authority to enforce regulations prohibiting the sale of tobacco to minors, so the FDA stopped disbursement of a $240,000 grant to the Office of the Attorney General of Nevada that had been used for tobacco “sting” operations.

 

Ms. Sylva addressed the performance indicators included in the Health Division budget.  She said in August when the budget was prepared the division did not have complete information on some activities.  She drew attention to budget account 101-3153 on page HEALTH-10 in The Executive Budget and indicted the first indicator should show an actual figure of 89 percent rather than 60 percent.  She explained it was at 60 percent when the budget was submitted.  She added the projection for FY 2002 should read 90 percent. 

 

Ms. Sylva said the second indicator in account 101-3216 on page HEALTH‑26 of the budget shows only 35 percent of complaint investigations were conducted within established time frames, but it should say 66 to 68 percent.  She noted many complaints relate to paperwork compliance, often when the problem is simply a typographical error or minor information missing from a file.  She said that is not a priority, and complaints are prioritized when they come in.

 

Continuing, Ms. Sylva said the performance indicators for the immunization program in budget account 101-3213 on page HEALTH‑46 show a low number of persons entered into the program.  She explained over the past biennium the software company for the computer program went bankrupt, necessitating a change for the registry, all the information had to be downloaded and the information is inaccurate.  She said she understands 49,000 children have been entered into the database so far.

 

Ms. Sylva said the Health Division operated under four Letters of Intent during the biennium.  One required the division to report to IFC on the transfer of positions from the Maternal Child Health Services budget into the Special Children’s Clinic budget, which has been done. 

 

Another Letter of Intent related to budget account 101-3213.  Ms. Sylva said it   prohibited the addition of new vaccines to the immunization program, even though they may be authorized or recommended by the Advisory Committee on Immunization Practices of the Centers for Disease Control, until the IFC has given approval.  She added the letter also prohibits the division from expanding the vaccinations to include additional populations without advising IFC.  She pointed out the Advisory Committee on Immunization Practices did approve and recommend that Prevnar, a pneumococcyl vaccine, should be added to regular immunization packages for children. 

 

Ms. Sylva acknowledged Prevnar is the most expensive vaccine on the market, so the division advised IFC of the intention to add it only for the Vaccines for Children (VFC) program.  The federal government pays for those children on Medicaid, those who have no insurance, those who receive their services through federally qualified health services, those who are Alaskan Natives or Native Americans under the VFC program.  The IFC approved the use of Prevnar for those qualified under VFC. 

 

Ms. Sylva said the third Letter of Intent involved BADA and related specifically to MAXIMUS.  She explained last session there was concern the Department of Human Resources would not be able to provide $500,000 through MAXIMUS to fund substance abuse treatment programs for adolescents and BADA would be asked to reduce funding.  However, she said, the funds were available, and the intent of the letter was carried out. 

 

Ms. Leslie requested that a report be prepared for the subcommittee indicating how many youths would not receive services since the funding has been omitted from The Executive Budget.  She also wanted to know how many people were served with the funds, and how long those teens will be on a waiting list now and in the future.

 

Ms Sylva said the final Letter of Intent referred to budget account 101-3222 and the one-time funding for the dental initiative.  She said quarterly reports have been provided to IFC on the program. 

 

Senator Rawson noted continuation of the funding is not included in the Governor’s budget.  He asked for comment.

 

Ms. Sylva responded the funds that were available for the dental health initiative were unexpended Maternal Child Health Services block grant funds carried forward and used for a one-time project.  She said she anticipates those block grant funds will all be expended over the biennium and there will be no unobligated block grant funds available in the next biennium.  She noted many initiatives have been started, such as the passage of the Assembly bill that allocated tobacco settlement funds.  She said those funds have allowed communities to instigate dental programs that were not in existence earlier.

 

Ms. Sylva added an early childhood caries prevention program was implemented through the dental health initiative funds in Clark County.  She commended Sally Ellis who works in the Head Start program and who was active in ensuring that children had access to dental services.  According to Ms. Sylva, Ms. Ellis was instrumental in implementing the project with a curriculum developing parents’ involvement in sound oral health, including teaching children to brush their teeth properly.  Ms. Sylva announced the program has now gone nationwide as a result of Ms. Ellis’ efforts.

 

Ms. Sylva summarized budget requests for 2002 and 2003.  She reiterated there are 21 budget accounts, and the budget has been balanced within the cap due to the opportunity to allocate General Fund resources within different budgets.  As an example she said the Special Children’s Clinic budget, 101-3208, is not as high a priority as other core functions of public health, such as ensuring that water is safe to drink or restaurant food is safe to eat.  Because of that, she explained, a decision was made to cut 10.5 FTE public service intern positions from the Special Children’s Clinic budget that are not direct providers of services.  She explained the federal government now requires services be provided in a natural environment to children ages 1 to 3.  She described a natural environment as “one where there are other children involved and, in fact, who may not have a known or suspected developmental delay.”  She indicated a day-care center would be an appropriate environment for staff to provide treatment to the child.

 

Ms. Sylva stated public service interns have traditionally provided services in group settings, similar to classrooms.  She explained they prepare materials used by the therapists and then clean up after the children leave, but now the professional staff will have to assume some of those responsibilities.  She opined the situation should not result in much reduction of services.

 

Mr. Beers commented the new federal mandate inevitably will lead to fewer people being treated, especially if it necessitates travel to the site rather than having clients come to the service provider.  Ms. Sylva voiced agreement and suggested the federal rule will be far more costly and will reduce treatment time.  She stated it is a national issue, and states that accept funds must abide by the rules.  She noted the funds received for the program by the Health Division are passed through the Department of Human Resources. 

 

Ms. Sylva drew attention to budgets that include enhancements.  She noted enhancements are often simply the transfer of items from one budget account to another.  She said budget account 101-3223, the administration budget for the Health Division, includes four enhancements, three of which are “housekeeping” enhancements.  She said the only other enhancement is a General Fund request for $100,000 in each year of the biennium to continue cervical cancer and mammogram services for rural women. 

 

According to Ms. Sylva, budget account 101-3213 for the Immunization Program includes a transfer of information technology personnel to the administrative budget to provide overall centralized services to the division.  She said budget account 101-3222, Maternal Child Health Services, contains two enhancements, one a routine transfer, and another to purchase replacement equipment.  She stated budget account 101-3208, Special Children’s Clinic, has two enhancements.  One deletes the 10.5 FTEs, and the other, she said, transfers funds from the director’s office to the division for the Community Collaborations budget in the director’s office and places the funds where services are actually being provided. 

 

Continuing, Ms. Sylva said there is one $5,000 enhancement to replace equipment for the Women Infants and Children (WIC) program, and there is one enhancement for BADA to transfer 2.5 FTE into the administrative budget.  She stated those are the only enhancements for the Health Division budgets.

 

Senator Raggio asked whether Ms. Sylva anticipates a waiting list for the WIC program under current funding because the caseload will increase by about 4.25 percent.  Ms. Sylva replied she does not believe there will be a waiting list. 

 

Senator Raggio recollected the children involved in the Special Children’s Clinics are developmentally disabled.  He opined they should be a high priority rather than some other programs.  Ms. Sylva responded it is a higher priority to ensure that water and food are safe because those affect everyone, although she agreed children up to age 3 with known or suspected developmental problems are also a priority.  Senator Raggio indicated the subcommittee may have interest in the reasoning behind prioritization of available funding.

 

Senator Rawson expressed concern over the children with special health care needs whose families have incomes above the poverty level.  He asked whether programs still exist for those children.  Ms. Sylva replied in the affirmative. 

 

Ms. Sylva reported the agency has submitted three BDRs this session.  She said the first proposes that the transfer of BADA into the Health Division, approved by the last session, be completed and should be permanent.  She noted the BDR also asks that the position for bureau chief be changed to classified rather than unclassified to ensure the chief is permanent and will not have to be replaced five times in 4 years as was done in the immediate past.  She noted this will place BADA on the same playing field as every other bureau within the division in terms of promulgating regulations.  She explained all Health Division agencies must go through the State Board of Health to ensure oversight.

 

Ms. Sylva said the second bill draft is the result of a federal requirement to clarify language relating to administrative costs regarding the Safe Drinking Water Act in the Consumer Health Protection program.  The third BDR, she said, relates to the Certificate-of-Need program that requires an extensive study in the rural areas whenever a medical facility is being constructed at a cost over $2 million.  She commented most facilities will cost over $2 million, so nearly everything being built in the rural area will require certification.  She said the bill proposes that rural counties be given the option of doing their own certification or, if they prefer, asking the state to conduct the review. 

 

Senator Raggio noted many legislators have had inquiries from entities that have been denied funding, or in which funding has been reduced for alcohol and drug abuse programs.  He asked who makes the decisions regarding funding.  Ms. Sylva replied the Health Division has a standard RFP process to which affected organizations are required to respond.  She said applications are reviewed by an objective panel that makes recommendations to the bureau chief.  She stated she meets with the bureau chief to review the recommendations of the panel to ensure they are unbiased.  She added that the total requests always exceed the amount of funds available.  Senator Raggio requested Ms. Sylva to provide the staff with the list of applicants, the amounts requested, and the action taken over the last biennium. 

 

Ms. Giunchigliani noticed a shortfall in budget 101-3216, Health Facilities Hospital Licensing, of approximately $560,000, because the fees fell short of expectations.  She asked how Ms. Sylva intended to address that.  Ms. Sylva responded every facility has been inspected pursuant to the law over the last biennium.  This is the first legislative session where the Health Division has been able to report such performance related to inspections.  As part of the fundamental review process, she said, fees and federal funds were considered, and a major concern regarding billing to the federal government arose.  She said the federal government concurred a revised methodology would be appropriate which allowed the division to retroactively claim federal funds for the year 2000.  She indicated it was found the agency was undercharging the federal government and overcharging fee-paying entities, and the division will be working with the Budget Division and the LCB to determine what should be reflected in the budget.  She assured Ms. Giunchigliani that the program will continue, and there should be an acceptable balance forward.

 

Ms. Giunchigliani noted The Executive Budget recommends a General Fund appropriation for Substance Abuse Prevention and Treatment (SAPT) that is about $100,000 less than the 1999-2001 biennium.  She asked what impact it will have on the maintenance of effort requirement. 

 

Philip Weyrick, Administrative Services Officer IIl, Health Division, Department of Human Resources, responded that during budget preparations, while salary adjustments were being made, the division found there was a reduction of requested General Fund appropriations of approximately $100,000.  He reported the shortage has been identified for both the budget office and LCB with an expectation of having it corrected, because there will be a penalty if it is not corrected.  He warned if the required maintenance of effort (MOE) is not maintained the entire block grant process may be put on hold at the federal level while the division explains the lack of MOE.  He indicated that process can take from 4 to 6 months and would impact the programs.

 

Ms. Giunchigliani pointed out just 73.4 percent of children are being immunized.  Noting that the budget is unchanged, she asked what plans have been made to ensure more children will be immunized.  She asked whether the tobacco settlement will be reviewed to provide oversight funding for Special Children’s Clinics.  She also asked how many positions are unfilled in the division.

 

Ms. Sylva responded there is an authorization for 433 positions, and there may be 45 to 50 vacancies at any point in time. 

 

Senator Rawson voiced his understanding there were some reversions of funds in the Bureau of Licensure and Certification for the Emergency Medical Services (EMS) budget that were supposed to be held for grants.  He wondered whether that is being addressed and whether funds are being reverted that should continue.  He proposed the question be addressed at a subcommittee meeting.  He indicated problems develop with EMS periodically and the subcommittee should be prepared to deal with them.

 

Kevin Clint, Chairman, Bureau of Alcohol and Drug Abuse Advisory Committee, testified that BADA works closely with prevention and treatment providers, and he vouched for the recent success of the relationship.  He stated the common goal is to improve the quantity and quality of services, with a goal of providing those services on demand as much as possible.  He noted those involved are working on a comprehensive plan to be published and distributed next month.

 

Mr. Clint asserted BADA and the Health Division have made remarkable progress during the past year.  He reported LCB findings have been prioritized.  He added BADA views providers as customers and makes every effort to work with and be accountable to the advisory committee.  He declared, “This is a new BADA; it is a vital BADA; it is a smart BADA; and we are looking forward to working with them in the next years.”

 

Ms. Leslie disclosed that Mr. Clint is also the director of Join Together in Northern Nevada, a substance abuse coalition in which she serves as a volunteer.  She asked what percentage of the needs of adolescents requiring drug abuse help is being met by the state.  Mr. Clint estimated under 50 percent would be close to accurate.  He commented the provider association is interested in the MAXIMUS funding because the group wanted some of the funds already available to be included in the Governor’s budget to fund programs to serve adolescents.  He warned that youths not being served now will not be served when the funds are gone. 

 

Senator Raggio announced forthcoming scheduled meetings. He adjourned the hearing at 4:09 p.m.

 

 

RESPECTFULLY SUBMITTED:

 

 

 

Judy Jacobs

Committee Secretary

 

 

APPROVED BY:

 

 

 

                       

Senator William J. Raggio, Chairman

 

 

DATE:           

 

 

 

                       

Mr. Morse Arberry, Jr., Chairman

 

 

DATE: