MINUTES OF THE MEETING OF THE
JOINT SUBCOMMITTEE ON GENERAL GOVERNMENT
OF THE
SENATE committee on Finance
AND THE
ASSEMBLY COMMITTEE ON WAYS AND MEANS
Seventy-First Session
March 27, 2001
The Joint Subcommittee on General Government of the Senate Committee on Finance and the Assembly Committee on Ways and Meanswas called to order by Chairwoman Vonne S. Chowning at 8:10 a.m., on Tuesday, March 27, 2001, in Room 2134 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. Exhibit B is the Attendance Roster. All exhibits are available and on file at the Research Library of the Legislative Counsel Bureau.
ASSEMBLY COMMITTEE MEMBERS PRESENT:
Mrs. Vonne S. Chowning, Chairwoman
Mr. Bob Beers
Ms. Christina R. Giunchigliani
Ms. Sheila Leslie
Mr. David R. Parks
ASSEMBLY COMMITTEE MEMBERS ABSENT:
Mr. Lynn C. Hettrick (Excused)
SENATE COMMITTEE MEMBERS PRESENT:
Senator William R. O’Donnell, Chairman
Senator Lawrence E. Jacobsen
SENATE COMMITTEE MEMBERS ABSENT:
Senator Joseph M. Neal Jr. (Excused)
STAFF MEMBERS PRESENT:
Mark W. Stevens, Assembly Fiscal Analyst
Bob Guernsey, Principal Deputy Fiscal Analyst
Jim Rodriguez, Program Analyst
Michael J. Chapman, Program Analyst
Jennifer Ruedy, Committee Secretary
OTHERS PRESENT:
Bryan A. Nix, Senior Appeals Officer, Hearings Division, Department of Administration
Tracy Raxter, Chief, Administrative Services Division, Department of Administration
Kitti Barth, Administrator, Governor’s Committee on Employment of People with Disabilities, Department of Business and Industry
Myla C. Florence, Director, Department of Employment, Training and Rehabilitation
Bill Vance, Administrator, Division of Information Development and Processing, Department of Employment, Training and Rehabilitation
Marty Ramirez, Chief Financial Officer, Financial Management Section, Department of Employment, Training and Rehabilitation
Birgit K. Baker, Administrator, Employment Security Division, Department of Employment, Training and Rehabilitation
DEPARTMENT OF ADMINISTRATION
Dept of Administration – Hearings Division – Budget Page ADMIN-109 (Volume 1)
Budget Account 101-1015
Bryan A. Nix, Senior Appeals Officer, Hearings Division, Department of Administration, introduced his colleague Tracy Raxter, Chief, Administrative Services Division, Department of Administration, who would assist him in presenting the budget.
M-201 Demographics/Caseload Changes – Page ADMIN-110
Mrs. Chowning requested further clarification of the reserve in M-201. Mr. Raxter stated the reserve for the Hearings Division used to be in a separate Workers’ Compensation Hearings Reserve budget account, which was also utilized by the Nevada Attorney for Injured Workers. He explained the division would like to eliminate that account and transfer the funds to the Hearings Division budget account, but the funding source, Workers’ Compensation and Safety Fund, would remain the same. He said the division likes to have the reserve available in the event there is a significant workload increase to enable them to hire additional staff such as an appeals officer or clerical staff. He indicated the reserve could be used to pay for associated operating and equipment costs.
Mrs. Chowning asked how the reserve amount is determined. Mr. Raxter responded the amount recommended is $128,132 for Fiscal Year (FY) 2002 and $173,599 for FY 2003, which provides for 1 appeals officer, 1 legal secretary, associated operating costs and standard equipment including computers for both employees.
Mrs. Chowning inquired whether the division would return to the Interim Finance Committee (IFC) to request access to the reserve. Mr. Raxter responded affirmatively.
Mr. Nix pointed out the division does not anticipate adding a new position, but it would like to be prepared for any unanticipated workload increases. He explained that whenever the economy experiences a downturn, as it is currently, workers’ compensation claims tend to increase. He cited private insurance as another potential source of increased litigation.
Mrs. Chowning requested an update on the status of the automated tracking and scheduling system. She stated that the 1997 Legislature authorized $150,000 for its design and implementation, but the division reverted $115,000 of that amount back to the Workers’ Compensation and Safety Fund. She asked whether the division is providing adequate and timely notice of its hearings, or whether there is a continued need in this area.
Mr. Nix responded that the original system was to be provided by the Department of Information Technology (DoIT). DoIT was unable to integrate the software program and the entire system was aborted after minimal investment, he added. Subsequently, the division located a software program available for retail purchase, Time Matters, which is highly integrated, according to Mr. Nix. He stated the software was originally developed for law firms approximately eleven years ago, but it is now used for a broader range of businesses. He said he believes, after nine months of reviewing the product, it is an ideal solution to the division’s technology needs.
Mr. Nix explained the division would be bidding on a contractor that would provide, install, and customize the program to accommodate the needs of the division; therefore, the remaining $115,000 should be spent prior to June 2001. He said it is possible the funds would not be spent until the beginning of the next fiscal year. He expressed his enthusiasm for the program and stated the division is ready to proceed. He indicated the request for proposal (RFP) is basically prepared, and the system requirements and definitions are ready for DoIT’s approval. The system would be ready to go out for bid within the next two weeks, he added.
Mr. Beers asked who the bidders would be for an “off the shelf package.” Mr. Nix responded licensed consultants sell the program, Time Matters. He reiterated that bids would include the purchase, installation, and customization of the software.
E-710 Replacement Equipment – Page ADMIN-112
Mrs. Chowning inquired what the reasoning is behind the request for 54 desktop computers for 45 full time employees (FTE).
Mr. Nix stated the division’s computers are nearly five years old, so they are requesting replacement of them pursuant to the standards set forth by DoIT. He clarified the need for the extra nine computers is that computers are kept in each of the courtrooms for the use of the appeals officer while in court.
Mrs. Chowning questioned whether all the computers need to be replaced at the same time. Mr. Nix responded that the computers were all purchased at the same time, so pursuant to DoIT’s standards, they all need to be replaced now. He clarified the new software necessitates upgraded computers.
Mrs. Chowning asked Mr. Nix to provide information pertinent to this request to the LCB staff for further review. He agreed to comply.
Senator Jacobsen asked what the life span of a computer is.
Senator O’Donnell responded computers would continue to perform the functions they are initially designed to do for a very long time. However, new software requires more space in the operating system and increased memory, so new software generally necessitates new hardware, he explained.
Mr. Beers requested a detailed budget of how the $115,000 will be spent. Mr. Nix agreed to comply.
Mrs. Chowning asked whether the current computers were purchased in 1998 and said, that being the case, the computers would not yet be five years old. Mr. Nix responded that it would be five years by the time the replacement is approved and the equipment purchased.
E-720 New Equipment – Page ADMIN-113
Mrs. Chowning questioned the need for the four new printers. Mr. Nix responded the division hears approximately 18,000 to 20,000 cases each year, which necessitates the production of large volumes of decisions, orders and other documents. He explained these printers would replace five-year-old printers.
Mrs. Chowning asked how many people would be using these printers. Mr. Nix answered approximately 48 employees would be using the four printers.
E-806 Unclassified Pay Changes – Page ADMIN-113
Mrs. Chowning asked Mr. Nix to discuss the request to change an unclassified Hearings Officer to an unclassified Operations Officer. She stated the position had been vacant since May 30, 1997, and she questioned the need to fill the position.
Mr. Nix responded that the position was left vacant because the division did not need an additional Hearings Officer, but the Las Vegas office would currently benefit from additional administrative staff. He indicated the division’s website has generated a lot of work to keep information posted as current as possible. He said the division is attempting to utilize the position where the need is greatest, for administrative functions.
Mrs. Chowning questioned whether the Operations Officer position would be duplicative because the Administrative Services Division provides administrative and fiscal support to the Hearings Division. Mr. Nix answered it would not be duplicative and further stated the division’s growing need for this type of support.
Mr. Nix reiterated the need to upgrade all of their computers to ensure compatibility now and into the future with new software.
Victims of Crime – Budget Page ADMIN-115 (Volume 1)
Budget Account 287-4895
Mr. Nix said he is the coordinator of the Victims of Crime program in Nevada. He stated the program is able to handle an increased workload through greater efficiency without requesting additional funding this biennium. He explained that the program acquired sophisticated software at no charge because of its participation in federal Victims of Crime programs. The software is tailored to their specific program needs, but it will necessitate an upgrade in hardware, he stated.
Regarding performance indicators, Mrs. Chowning asked why FY 2000 actual average and total compensation awarded was higher than projected, and why the projections are lower in the 2001‑03 biennium. Mr. Nix replied that the projections are based on a formula, which is based on growth over a period of time. The cost of claims has been reduced considerably upon implementation of a new review procedure for medical bills, he added. He noted the payout limits have been increased for claims from $15,000 a few years ago to $50,000 per claim currently; although, a claim payout that reaches $50,000 is rare. He said the projections are progressively smaller over the next few years based on the formula used, but he anticipates the actual numbers will differ.
Mrs. Chowning pointed out their percentage of successful appeals was much higher than projections. She questioned whether this is a result of having been very cautious in their projections. Mr. Nix responded that projections are based on historical growth.
Mrs. Chowning asked whether he would like to see larger awards and a higher number of successful appeals. Mr. Nix responded that he does not like to see successful appeals because that means the decision of the compensation officer has been reversed and he does not like to see the awards get larger. He said he likes to minimize the costs paid on each claim.
Mrs. Chowning asked whether Mr. Nix thought Senate Bill (S.B.) 282 would impact the program.
SENATE BILL 282: Removes certain limitations on amount of compensation that may be provided for loss of earnings and support and for funeral expenses of certain victims of crime. (BDR 16-539)
Mr. Nix said he believes the bill would not have a significant impact, but he would like the flexibility on setting reimbursement costs. He said he believes the funeral expense reimbursement is currently limited to $2,500 by statute, but that figure is not always realistic. He indicated the Board of Examiners would have the authority to set costs without appealing to the Legislature every two years. He said the costs would increase corresponding to funeral reimbursements, but he does not anticipate a significant impact. Federal grant funds have increased for the division, he added.
E-710 Replacement Equipment – Page ADMIN-118
E-720 New Equipment – Page ADMIN-118
Mrs. Chowning questioned the agency’s request to replace eight computers for seven FTE positions. Mr. Nix responded an Account Clerk working for Victims of Crime is being transferred to the Budget Division, so he stated the extra computer will likely transfer to the Budget Division with the Account Clerk.
Mrs. Chowning asked whether the new printers would replace existing printers. Mr. Nix responded affirmatively.
Mrs. Chowning requested detailed information regarding the equipment requests. Mr. Nix agreed to comply.
Mr. Nix said the agency is experiencing an increase in caseload, which he attributes partially to increased domestic abuse in rural areas. He said he believes domestic abuse in rural areas tends to increase during economic downturns.
Mrs. Chowning thanked Mr. Nix for his efforts on behalf of an agency that assists innocent victims of violent crimes. He said the agency is efficient and effective in providing worthwhile assistance to innocent victims.
Senator O’Donnell asked whether Mr. Nix could offer any reasoning that domestic abuse claims had increased in the rural areas. Mr. Nix responded that he thinks the closure of mines in conjunction with a downturn of the economy usually results in frustrated individuals. Those frustrated individuals tend to hurt the people around them, he added. He said his agency is conducting a lot of outreach to increase awareness of the assistance available. He indicated the outreach efforts might result in increased claims.
Senator O’Donnell asked whether he anticipates an increase in domestic abuse in Reno and Las Vegas if the economy continues to experience a downturn. Mr. Nix responded domestic abuse claims have already increased in those cities.
Senator O’Donnell suggested the committee consider promoting public service announcements to educate the public regarding domestic abuse. Mr. Nix stated the claims the agency has received in the area of domestic abuse do not stem from minor injuries; the victims have been brutalized.
Senator O’Donnell said he anticipates the economy getting worse before it improves, which will apparently result in an increased number of cases of domestic abuse. He suggested preventive action should be implemented immediately.
Senator Jacobsen asked how the committee could evaluate the equipment needs. Mr. Nix replied that DoIT has explicit guidelines for equipment replacement that the division complies with. He added they are probably two years beyond DoIT’s recommended equipment upgrade cycle. He reiterated the new software requires new hardware to operate effectively. He said he relies on the expertise of DoIT to advise him regarding current and future hardware needs.
Mr. Parks asked where the staff for Victims of Crime is located. Mr. Nix replied the Reno office has two FTE and two volunteers from the Retired Senior Volunteer Program. He added that the Reno office has experienced significant increases in claims from the rural areas, which might necessitate additional staff in the future. He said he believes the program will be able to accommodate the increased workload at least through this biennium with assistance from the volunteers. He stated there is also a slightly larger office in Las Vegas that might be able to absorb some of the workload from the Reno office.
Mr. Parks asked why the Hearing Division and the Victims of Crime are grouped together under his supervision. Mr. Nix replied that Victims of Crime is a program of the Board of Examiners, and he works for the Department of Administration. He said approximately ten years ago, the budget director at that time, sought to increase supervision of the program. He explained the program did not begin as a state agency, so there was little funding to oversee the program when it became a part of the state system. He stated the Hearings Division is located next door to the Victims of Crime program, so it was relatively easy and cost-effective for him to take on the additional task of overseeing the program. He added that the program is too small to warrant a full-time director.
Mrs. Chowning asked where the Account Clerk that is being transferred from this program is currently located. Mr. Nix said the position is currently in the Las Vegas office, but it is being transferred to the Budget Division in Carson City. He explained that most other divisions have already transferred those positions into the Budget Division. He explained the Account Clerk is the person who receives and reviews all medical bills and then prepares vouchers for pre-audit and payment.
Senator O’Donnell requested explanation of the $194,075 line item in the Victims of Crime budget, which is a transfer from the Department of Motor Vehicles and Public Safety (DMV&PS). Mr. Nix stated the program receives funding from a variety of sources as illustrated in the budget. He explained the funds received from DMV&PS are provided pursuant to Nevada Revised Statute (NRS) 484.3791, which imposes a civil penalty on persons convicted of driving under the influence of intoxicating liquor or controlled or prohibited substance. He said Victims of Crime receives a portion of those funds, as do other programs and agencies.
Senator O’Donnell pointed out the budget does not include any funds from the DMV&PS for the years 2002 and 2003.
Mr. Raxter responded that previously this revenue was under general ledger (GL) 4721, and per the request of the Controller’s office that it be included under GL 4151 it now shows in civil penalties. He referred the committee to the civil penalties line item, which includes the DMV&PS funds for the years 2002 and 2003.
Senator O’Donnell asked whether the agency is still using that money for expenses. Mr. Raxter noted the program collected $223,679 in the last fiscal year, and he anticipates the same amount for the next biennium.
Senator O’Donnell inquired whether there is any reserve in the budget. Mr. Raxter referred the committee to page ADMIN-119 of The Executive Budget. He pointed out there is a projected reserve of $620,665 for FY 2002 and $598,520 for FY 2003.
Senator O’Donnell asked whether the program has adequate staff and interest to do some public service announcements (PSAs).
Mr. Nix responded they do not have sufficient staff to prepare PSAs. He suggested the program could use federal funds to do a video PSA or a radio PSA, but the agency would have to contract with someone to prepare the PSAs. He said federal funding guidelines allow them to use up to five percent of their funds for administrative expenses. They have discussed the possibility of doing a PSA or an informational video for distribution to police agencies and hospitals, he added. He stated he would look into the possibility of utilizing those federal funds to prepare PSAs addressing domestic abuse per Senator O’Donnell’s suggestion.
Senator O’Donnell explained that he and Mrs. Chowning pressed for PSAs for pedestrian awareness several years ago, which he felt were effective in reducing pedestrian-related accidents. He stated the PSA program appears to have been discontinued, and he believes accidents have increased now. He suggested PSAs would have a similar effect to decrease domestic violence. He said he would prefer to curb the abuse prior to occurrence rather than paying for it afterward. He asked staff to look into possible funding for a PSA program. He suggested there might be other private agencies that could assist in the implementation of the program. He said the public should be taught, “Real men don’t beat their wives.”
Mr. Nix said they would look into other potential sources of funding for a PSA program. He clarified Victims of Crime is a compensation program that typically does not provide services such as counseling and intervention programs, but he agrees it is a good idea.
Mrs. Chowning voiced her concern over the domestic abuse issue. She said a woman who recently died from domestic violence in Las Vegas was a former student of hers. She explained that this woman had told numerous people she feared for her life, but no one intervened. She articulated support for a PSA program to hopefully prevent future incidents of domestic violence through education.
Senator O’Donnell said he hopes the education of society will result in behavioral changes. He urged the committee to take immediate action because economic downturns cause increases in crime and domestic violence. The government needs to protect its citizens, he added.
Ms. Leslie asked Mr. Nix to coordinate his efforts with the task force in the Office of the Attorney General, Domestic Violence Prevention Council, which is directed by Deputy Attorney General Nancy Hart. Ms. Leslie indicated she serves on the task force. She further suggested The Nevada Network Against Domestic Violence would be an excellent resource for prevention programs in this area.
Mr. Nix commented he immediately considered the Office of the Attorney General when the domestic abuse topic surfaced. He stated that Attorney General Frankie Sue Del Papa is very involved in domestic violence issues and will be the keynote speaker at the upcoming Western Regional Victim of Crime conference. He said the Victims of Crime agency would like to assist by locating potential funding sources to fund programs provided by other groups. He added that he agrees with Senator O’Donnell’s comments that every case that can be prevented will save the program money to be used for other needs. He assured the committee he would coordinate his efforts with existing programs and experts in this area.
Senator O’Donnell said he agrees with Ms. Leslie’s suggestion to work with existing organizations, and he would like to locate funds to assist their efforts. He suggested the Office of the Attorney General might be able to apply for grants, which could be funded with the five percent federal funding Mr. Nix referred to earlier.
Mrs. Chowning asked Mr. Nix to keep the committee informed of his efforts on the domestic violence issue. She suggested he work with the Nevada Broadcaster’s Association. She closed the hearing on budget account 287-4895.
DEPARTMENT OF BUSINESS AND INDUSTRY
B&I, Governor’s Committee to Hire Handicapped –Budget Page B&I-123 (Volume 2)
Budget Account 101-3156
Mrs. Chowning opened the hearing on budget account 101-3156 and welcomed Kitti Barth, Administrator, Governor’s Committee on Employment of People with Disabilities (GCEPD), Department of Business and Industry.
Ms. Barth explained she has been the administrator for nearly one year during which the committee endured the following:
A rather forceful change of direction which has been paralleled with the change of direction with the President’s Committee on Employment of People with Disabilities being absorbed and re-created within the [United States] Department of Labor (DOL) as the Office of Disability Employment Policy.
Ms. Barth provided a packet of written materials (Exhibit C), which includes a copy of her testimony. She stated the Workforce Investment Act (WIA) represented a shift in the training and servicing of the current workforce to an employer-driven emphasis. GCEPD has been in operation since 1975 working with both employers and employees, but it is shifting to an employer-driven agency, she added. The agency is working with employers to assess employment needs and is acting as a liaison with the service providers to facilitate training programs to meet those needs. She pointed out the Federal Ticket to Work-Work Incentives Improvement Act (TWWIIA) was signed in December 1999. TWWIIA mandates that employers be included in national efforts to provide employment for people with disabilities, she added. She said TWIIA allows employers to partner with service providers and be financially rewarded for employing people with disabilities within the ticket-to-work system. She stated that this reward system would provide income to employment networks for up to five years.
Ms. Barth said GCEPD would endeavor to educate Nevada’s employers regarding the resources available to support their commitment to employees with disabilities. She pointed out that Nevada would likely have The Ticket to Work Act phased in beginning January 1, 2002. At that point GCEPD will need to have Employment Networks contracted with the Program Managers and be ready to provide services to the ticket holders, she added.
Ms. Barth directed the committee’s attention to a Memorandum of Understanding (MOU) issued October 10, 2000 (Exhibit C) between GCEPD and the Rehabilitation Division, Department of Employment, Training and Rehabilitation (DETR). She stated that the MOU addresses the decision by GCEPD to concentrate its efforts on servicing employers in lieu of continuing to provide advocacy and assistance to people with disabilities, which was a redundant feature with services provided by DETR’s Rehabilitation Division.
Ms. Barth pointed out that the Governor issued a new Executive Order dated July 14, 2000 (Exhibit C) further clarifying the role of GCEPD as facilitator of Nevada’s businesses and industries to prepare them for the employment opportunities offered under both the WIA and the TWWIIA. She noted that the Executive Order allowed for ten appointed committee members who have adopted new bylaws supporting the new focus of GCEPD. The committee also has a written and signed Memorandum of Understanding with Social Security (Exhibit C) to implement and facilitate Employment Networks to support the TWWIIA, she added. She stated GCEPD has already trained hundreds of employers and service providers, and is ready to implement the TWWIIA.
Ms. Barth noted that the President’s Committee on Employment of People with Disabilities received a similar focus and new executive order as of January 1, 2001. She said GCEPD cooperated with Vocational Rehabilitation Advisory Council (VRAC) to create and distribute an Americans with Disabilities Act (ADA) brochure, and they are now working jointly to produce a film for Nevada’s employers and people with disabilities. She mentioned GCEPD is also in the process of creating a website detailing resources for disability services. She pointed out GCEPD is in the process of creating new performance indicators specific to their new direction.
Ms. Barth explained GCEPD’s newsletter would be distributed via e-mail in an effort to utilize its limited funding effectively. Another cost-cutting measure is the relocation of both GCEPD’s northern Nevada and southern Nevada offices to smaller, less costly locations, she added. She mentioned GCEPD is currently negotiating shared space with DETR’s One-stop Career Centers, which would increase accessibility by the business community and people with disabilities seeking employment.
Mrs. Chowning stated the state saves money by having more people employed and she appreciates GCEPD’s efforts. She commented the performance indicators for GCEPD demonstrate the success of its efforts, but she questioned why the committee projects decreased activities and dissemination of information for the next biennium.
Ms. Barth responded GCEPD is hoping to participate in more cooperative efforts with other agencies instead of acting alone. She said she anticipates increased efforts disseminating information regarding ADA, but she hopes to amplify the results of the agency’s efforts by working with other agencies.
Mrs. Chowning commented she would be interested in reviewing GCEPD’s new performance indicators when they become available. She said she is particularly interested in seeing information on the number of people who have been employed as a result of their efforts.
Ms. Barth said she agrees the number of people who gained employment through GCEPD efforts should be a performance indicator. The number of people who are maintaining employment and have been able to decrease or completely eliminate their dependence on various welfare measures would also be a significant performance indicator, she added. She pointed out that every person who is able to forego state assistance would have a positive impact on the state’s budget.
Senator O’Donnell asked Ms. Barth whether she is lobbying any of the members of the Senate Committee on Taxation in support of S.B. 92, which he said he introduced this session to encourage employment of disabled persons.
SENATE BILL 92: Authorizes business that employs disabled person to apply tax credit against tax on privilege of conducting business in this state. (BDR 32‑783)
Ms. Barth replied she has not started her lobbying efforts yet, but it is next on her agenda. She commented that she and Senator O’Donnell had discussed the need for additional incentives to employers for the employment of disabled persons, and she thanked Senator O’Donnell for the introduction of S.B. 92. She assured him she has been lobbying the business community a great deal regarding S.B. 92 in an effort to encourage them to voice their support. She said the business community has been very receptive to this proposed legislation. She acknowledged many businesses make a financial commitment upon hiring people with disabilities, and they appreciate the financial reward this legislation would provide them for their efforts.
Senator O’Donnell urged Ms. Barth to lobby the members of the Senate Committee on Taxation. Ms. Barth responded affirmatively.
Mrs. Chowning requested a draft of the new performance indicators GCEPD is proposing. Ms. Barth agreed to provide them to the committee and indicated she has already started the draft.
Mrs. Chowning inquired regarding the overall effectiveness of GCEPD in the rural areas of the state. Ms. Barth agreed that information is not reflected in the material provided to the committee. Ms. Barth indicated the new focus of GCEPD, working directly with service providers, would enhance their ability to provide better figures reflecting all the specific areas of the state.
Mrs. Chowning asked her to discuss the gift fund. Ms. Barth replied the gift fund money is within the Department of Business and Industry.
Mrs. Chowning asked whether the fund was originally established in DETR. Ms. Barth replied affirmatively. Ms. Barth explained that money received from grants and contracts was deposited into this fund and is specifically used for training. GCEPD receives an annual $10,000 contract from the Pacific Disability and Business Technical Assistance Center. The revenue from that contract is deposited into the gift fund. The gift fund is used to train employers and assist them in complying with ADA requirements, she added.
Mrs. Chowning inquired regarding the balance in the fund and whether it is a constant source of funds. She asked whether the fund could be used to offset the general fund for various programs.
Ms. Barth replied it is not a constant source of funds. She stated GCEPD would not be renewing its contract with the Pacific Disability and Business Technical Assistance Center because the new direction of GCEPD does not include the services they seek, specifically instruction on “Title II and Title III access issues.” She said those funds would be diminishing as GCEPD completes the training necessitated by the WIA and the TWIIA.
Mrs. Chowning asked whether there are any new programs in addition to the website and newsletter by e-mail Ms. Barth would like to discuss. Ms. Barth replied the $500 saved from publication costs was transferred to the travel account to offset the expense of the increased number of committee meetings. The committee meets quarterly rather than biannually now, and one committee member lives in a very rural area, she added.
Mrs. Chowning asked whether there is any specific program provided by the gift fund. Ms. Barth responded affirmatively. Ms. Barth pointed out that GCEPD recently co-hosted an ADA training seminar in Las Vegas, which was presented by an attorney from the U.S. Department of Justice who works with the Midwest Center for Postsecondary Outreach, which promotes access for deaf persons. The cost of the seminar was paid by the gift fund, she added.
Mrs. Chowning said the seminar was a one-time event. She requested a plan for use of the gift fund during the next biennium.
Ms. Barth responded GCEPD plans to continue to provide training throughout the state including seminars presented by the same attorney from the U.S. Department of Justice. She said GCEPD would provide training on ADA and services for the hearing impaired, which is currently of great interest. She explained ADA is a law that is constantly being altered by legal decisions, which necessitate ongoing training.
Mrs. Chowning thanked Ms. Barth for her proactive efforts in education. Ms. Barth stated GCEPD recently completed a four-hour training program for executives of service providers and businesses in Las Vegas, which was well received by the participants involved. She said many participants provided feedback indicating they were not aware of the services available locally and statewide prior to this program.
Senator O’Donnell asked whether the Governor had appointed the new committee members. Ms. Barth responded there are only two members appointed while eight members are pending decision by the Governor.
Mrs. Chowning asked whether the recommendations for the remaining eight members were in place. Ms. Barth replied they were in place. Mrs. Chowning voiced her encouragement for the Governor to make his decisions soon.
Mrs. Chowning closed the hearing on budget account 101-3156 and opened the hearing on budget account 101-3270.
DEPARTMENT OF EMPLOYMENT, TRAINING AND REHABILITATION
DETR Director’s Office – Budget Page DETR-1 (Volume 2)
Budget Account 101-3270
E-930 Transfer to DETR Administration – Page DETR-4
Myla C. Florence, Director, Department of Employment, Training and Rehabilitation, indicated DETR is proposing to combine this budget account with Administrative Services budget account 101-3272 and to delete the Director’s Office budget account 101-3270.
Ms. Florence stated the only significant deviation in the performance indicators is in the percentage of satisfied customers surveyed. She explained DETR did not meet its goal of an 80 percent customer satisfaction rate. She said the agency intends to improve its method of survey to ensure a more accurate reflection of customer service. She pointed out that WIA requires surveys to be taken of employers and employees utilizing DETR services.
Ms. Florence commented that DETR has met or exceeded its goals in all of the other performance indicators with the exception of the financial management indicator, which establishes a goal of at least 70 percent of all transactions to be processed within five working days. She clarified DETR’s overall goal is 85 percent of all transactions to be processed within five working days, but the average number of days was closer to eight and a half. She attributed the lengthy processing time to high employee turnover. She said she believes the new integrated financial system will help improve performance in that area. Ms. Florence stated DETR maintains additional performance indicators that were not provided to the committee, and they will be provided upon finalization of the department’s analysis.
E-710 Replacement Equipment – Page DETR-3
Ms. Florence mentioned the only other issue within this account is the replacement of minor office equipment.
Mrs. Chowning requested explanation regarding the transfer of the Director’s Office budget account into DETR Administrative Services budget account. She questioned the purpose of the consolidation when the anticipated outcome is improved efficiency without cost savings.
Ms. Florence responded one position would be eliminated in the director’s office, which will result in cost savings. Primarily the savings will result from increased efficiency, she added.
Mrs. Chowning asked whether the director’s office has 12 or 11 FTE. Ms. Florence responded there are 12 FTE including the elimination of the one position.
Mrs. Chowning inquired whether all of the positions would remain in their current locations after the transfer. Ms. Florence replied they would all remain in Carson City.
Ms. Florence explained that cost savings are not easily perceived with the consolidation because the Director’s Office is primarily professional administrative staff, whereas Administrative Services performs transaction processing and human resources issues. The consolidation will save time, she added.
DETR Administrative Services – Budget Page DETR-6 (Volume 2)
Budget Account 101-3272
E-916 Transfer from B/A 4770 – Page DETR-8
Ms. Florence pointed out DETR is proposing to transfer a position from the Employment Security budget account 205-4770 to this Administrative Services budget account. She said the position acts as a liaison to the WIA Board, as well as coordinating department-wide activities related to the WIA. She added the position reports to the DETR Director or assistant directors.
DETR, Information Development and Processing –Budget Page DETR-11 (Volume 2)
Budget Account 101-3274
Bill Vance, Administrator, Division of Information Development and Processing, Department of Employment, Training, and Rehabilitation, provided a written copy of his testimony (Exhibit D). He pointed out there are two functional areas within the Information Development and Processing Division: Research and Analysis Bureau and Information Technology. The Research and Analysis Bureau provides comprehensive labor market and associated economic information, he added. The Information Technology groups provide DETR with complete internal support for all types of information technology services.
Mr. Vance discussed the five performance indicators (Exhibit D). He pointed out the first indicator is new and measures the use of self-service information technology by DETR customers. He commented the second indicator counts emergency calls attributable to problems associated with programming or operations. He said he believes a decrease in calls indicates better-constructed systems and procedures. He said the third indicator tracks customer satisfaction regarding services provided by the DETR help desk and computer production services. He articulated the fourth indicator is the exact percent of the time the DETR statewide network is up. Finally, the last indicator is new and measures customer satisfaction with services provided by network support services.
Mr. Vance pointed out there are no new programs requested in this budget account.
Mrs. Chowning requested further discussion of the second performance indicator specifically the increase in calls from 45 to 104. Mr. Vance explained the period Mrs. Chowning refers to includes January 1, 2000, which caused a significant increase in calls stemming from the conversion to year 2000 or “Y2K.” He said DETR did not experience any problems related to the conversion, but many concerned customers did call in regarding “Y2K” issues.
E-710 Replacement Equipment – Page DETR-13
Mr. Vance stated this request is for replacement furniture, software upgrades, replacement computers and replacement network equipment.
Mrs. Chowning questioned the need for equipment, which amounts to nearly $1 million over the biennium. Mr. Vance responded the software upgrade and network equipment constitute the largest portion of the request.
Marty Ramirez, Chief Financial Officer, Financial Management Section, Department of Employment, Training, and Rehabilitation, responded to Mrs. Chowning’s question regarding the cost of the requested equipment. He explained that this division is responsible for maintaining all of the software licenses for the entire department. Furthermore, many systems are being converted to Oracle based systems, which necessitates the purchase of new licenses for the Oracle systems, he noted. He said all of the other divisions pay for their systems through cost allocation in lieu of including the costs in their budget because the costs are all included in this one budget account.
Mrs. Chowning requested a detailed list of the equipment requested. Mr. Ramirez agreed to comply.
E-720 New Equipment – Page DETR-14
Mr. Vance stated this decision unit includes the request for new office furniture, new computer equipment, and new department-wide software.
E-922 Transfer from B/A 4772 Base – Page DETR-14
Mr. Vance pointed out the transfer of a Computer Network Technician from the One Stop Career Centers budget account 101-4772, which is being eliminated into budget account 101-3274 is requested. He said the duties of the position would not change.
Mr. Vance highlighted accomplishments of his division over the past biennium and future goals as outlined in Exhibit D. He stated that DETR and the information and development division would continue to strive to provide better customer service with greater efficiency through self-service options, e-commerce, and information technology.
Mrs. Chowning asked Mr. Vance to discuss the status of the division’s vacant positions. Mr. Vance responded all of the previously vacant positions are now filled. He cited high turnover and difficulty recruiting new employees as the key factors in the extended vacancies.
Mrs. Chowning asked whether low state salaries are a factor in the problem. Mr. Vance responded it is one factor in the problem, but it also requires time to locate good employees.
Mrs. Chowning asked whether the vacant positions should remain open. Mr. Vance stated that he was unclear what vacant positions she was referring to, but he would be happy to work with LCB staff on the vacancy issue. He noted his division needs all the help available to manage its current and anticipated workload.
Mrs. Chowning commented the division has implemented a great deal of new technology and questioned how much they owe DoIT for their services. Mr. Vance replied the division has incurred substantial technology expenses. He added that some of the division’s systems are being moved to servers which will decrease mainframe charges over the long term as the work is processed on the division’s machines instead of DoIT’s.
Mrs. Chowning inquired whether Mr. Vance is comfortable with the current budget and what would happen if the savings from use of their own servers do not materialize. Mr. Vance replied the division is confident and comfortable with its current budget.
Mrs. Chowning acknowledged Mr. Vance has a heavy workload and she appreciates his efforts.
DETR, Employment Security – Budget Page DETR-24 (Volume 2)
Budget Account 205-4770
Birgit K. Baker, Administrator, Employment Security Division, Department of Employment, Training, and Rehabilitation, introduced her staff prior to presenting the budget. She stated, “The mission of the division is to provide statewide labor exchange services, to conduct programs that promptly pay unemployment benefits, and to administer an efficient unemployment tax system.” She noted the division includes 390 FTEs and 30 to 50 part-time intermittent positions. She pointed out that 295, or 75 percent, of the FTEs are funded through the federal unemployment insurance grant. Furthermore, 58 FTEs or 15 percent are funded through the Wagner-Peyser Employment Service Grant, she added. She commented that the remaining 37 FTEs are supported by various federal grants from the U.S. Department of Labor, the largest grant being the Veteran’s Employment and Training Grant, which supports 19 of the 37 FTEs.
Ms. Baker commented that the decrease in federal funds combined with an increasing workload necessitates the consolidation of programs and increased dependence on automated technology. She pointed out this situation is occurring nationwide. She stated the following:
The imbalance between the congressional allocations and the U.S. Department of Labor requests has been passed on to states in the form of shortfall assessments in the unemployment insurance programs and flat funding in the Wagner-Peyser Employment Service programs. This has left states with inadequate funding to provide UI and ES [unemployment insurance and employment security] services in the traditional manner, which included a statewide network of local employment offices.
She noted the state of Ohio announced on February 3, 2001 they would close 56 of their regional employment offices as they shift to telephone and one-stop centers to reduce costs. She reiterated Nevada is one of many states impacted by these shortfall assessments.
Ms. Baker pointed out the division met or exceeded four of the nine performance indicators in FY 2000, and they are close to meeting two additional indicators in the current fiscal year. She referred the committed to indicators 2A and 2B within The Executive Budget. She said the DOL standard for 2A is 87 percent of first payments must be made within 21 days of the submitted claim. She noted that as of the end of February 2001, the division had improved the percentage from 81.9 percent actual for FY 2000 to 93.3 percent. She attributes the improvement to the implementation of a toll-free number for interstate claimants and ongoing training. She indicated the division had improved its performance under indicator 2B, which has a DOL standard that 80 percent of non-monetary unemployment eligibility decisions be issued within 21 days. She acknowledged the division accomplished 40.2 percent in indicator 2B in FY 2000, which has improved to 70 percent as of February 2001. She attributes much of their improvement to the stabilization of their workforce. She acknowledged increasing workloads would further complicate the satisfaction of their performance indicator goals.
Mrs. Chowning asked whether there were any repercussions for the division’s not having met the standards prescribed by the DOL. She further questioned how the division would handle the $3.3 million shortfall in its budget.
Ms. Baker replied the department is required to file a state quality service plan with the DOL each year. For all indicators in which the state does not meet the prescribed performance, the division must provide a corrective action plan to the DOL, she added. She commented they provided a corrective action plan for indicators 2A and 2B that indicated they would make significant progress by the end of the fiscal year, which they have already accomplished. She pointed out their long-term plans include the redesign of DETR’s unemployment insurance adjudication process. Many quality indicators, which are not reflected in the budget, are part of their corrective action plan, she added. She stated she believes no sanctions would be imposed on the division as long as it continues to improve, and she believes no sanctions have been imposed in the past.
Ms. Baker addressed the $3.3 million shortfall for FY 2001. She explained that the DOL traditionally included shortfall assessments upon issuance of state grants that were less than 3 percent of the total budget. However, in FY 1998, Nevada experienced a shortfall assessment of 13 percent of the UI budget, which forced the division to utilize UI grant reserves to compensate for the shortfall, she noted. She articulated that the UI grant reserves were diminished to $457,000 from $3.2 million in FY 1994. She pointed out the continued shortfall assessments necessitate the consolidation of operations, closure of offices, minimal staffing, and expanded use of technology. She said she does not anticipate any immediate relief from the DOL. She added the DOL will fund new projects such as the telephone initial claims filing system, and the division will pursue all funding available, especially for new technology programs.
Mrs. Chowning asked whether Ms. Baker thinks Nevada would have to close offices as Ohio has done.
Ms. Baker responded that if the shortfall continues, the division would likely have to close more offices. Ms. Baker added the one-stop system provided by WIA presents an opportunity for partnerships for her division to continue to provide its services through non-traditional means.
Mrs. Chowning asked whether WIA requires the drafting of new regulations. Ms. Baker responded the staff from the former state job training office that oversaw the Job Training Partnership Act funding is responsible to oversee the WIA funding. There is a proposal to combine the WIA program into the Employment Security Division, she added. She noted many of the division’s programs are mandatory partners in the one-stop service delivery system of WIA.
Senator O’Donnell asked how a potential increase in unemployment claims resulting from the downturn in the economy will affect Ms. Baker’s division. He referred to performance indicators 2A and 2B. Ms. Baker responded indicator 2A requires that 87 percent of first payments be made within 21 days, which they have recently accomplished. She said they continue to struggle to meet the goal set forth in performance indicator 2B, which concerns eligibility determination. She indicated she is requesting an enhancement specifically to address that area, which will be addressed later in her budget presentation.
Senator O’Donnell warned there will be a much heavier than normal workload resulting from the downturn in the economy.
Ms. Baker responded the division is preparing itself for the increased workload with a new telephone initial claims filing system and a proposed redesign of the UI adjudication process. She said the telephone initial claims filing system was funded by federal grants and will be implemented statewide by April 30, 2001. She pointed out the new system notably improved efficiency upon implementation in southern Nevada in March 1999. Ms. Baker added that the DOL has indicated it would provide additional funding for any increased workload resulting from a sustained downturn in the economy.
Senator O’Donnell asked whether the division has sufficient hiring authority to increase staff as needed during the interim to handle an increased workload. Ms. Baker replied the part-time intermittent positions are readily available and trained to promote to full-time positions as the positions become available. She cited another option is to have adjudicators and other UI staff to receive and process claims.
Mrs. Chowning inquired whether the reserve would continue to decrease from $7 million to $2 million. Ms. Baker clarified that reserve is within the DETR, Employment Security – Special Fund budget account 235-4771, and she is proposing to utilize those funds. Ms. Baker said she believes the new programs should reduce ongoing expenses and decrease their need for additional staffing through greater efficiencies.
Mrs. Chowning asked how the large decrease in the reserve would affect the next biennium especially in light of a sustained economic downturn.
Ms. Baker said the division anticipates absorbing up to 20 percent of the expected workload increase based on current population growth without any “severe economic downturns.” She indicated the short-term contingency plan for increased workload is that all UI positions would receive and process claims. She added the long-term plan is to rely on additional funding from the DOL.
Mrs. Chowning commented that the technology projects she has witnessed have never saved the state money or increased efficiency.
M-200 Demographics/Caseload Changes – Page DETR-26
Ms. Baker stated the division is requesting 1 new Economist II position to perform research and analysis support required under WIA. She commented the position will provide local Workforce Investment Boards (WIBs) with real time labor market information such as localized supply and demand information, skills and wage analysis, and identification of training requirements to meet employer demands. She pointed out the position will be funded 50 percent by the WIA reserve funds and 50 percent by the Employment Security Division.
E-250 Eliminate Duplicate Effort – Page DETR-28
Ms. Baker explained, “The intent of WIA is to integrate public employment programs and to realign and maximize resources for improved services to employers and job seekers.” This decision unit proposes to incorporate seven existing positions from the former State Job Training Office (SJTO) into the newly created Workforce Investment Support Services (WISS) Unit within the Employment Security Division. She said she believes this transfer will better enable her division to assist state and local boards in the integration of WIA.
SENATE BILL 502: Eliminates state job training office. (BDR 33-1314)
Ms. Baker stated the proposed legislation S.B. 502 would delete all references in the Nevada Revised Statutes (NRS) to the state job training office effective July 1, 2001. She explained the bill is a necessary step to complete the consolidation.
E-275 Working Environment & Wage – Page DETR-29
Ms. Baker stated this decision unit proposes to increase the compensation of the three members of the Employment Security Council and Board of Review from $60 to $80 per day consistent with other state boards and commissions.
ASSEMBLY BILL 607: Makes various changes relating to unemployment compensation affecting Indian tribes to comply with federal law. (BDR 53‑1313)
Ms. Baker pointed out section seven of A.B. 607 will implement decision unit E‑275. She commented A.B. 607 also addresses a federal conformity issue concerning the inclusion of Indian tribes in state laws. She indicated she would provide greater detail on the contents of the bill when committee reviews it.
E-300 Maximize Internet & Technology – Page DETR-29
Ms. Baker stated this decision unit provides the operating costs for the statewide telephone initial claims filing system. She added that since the implementation of the system in southern Nevada in March 1999, the division has processed approximately 150,000 claims and has responded to over 450,000 information calls received from southern Nevada UI claimants. She acknowledged the call wait times have been longer than her ideal, but the system allows claimants a viable option to going to their offices. She said she believes this is an example of technology improving their efficiency.
She stated in October 2000 the DOL approved the division’s grant request in the amount of $960,838 to expand the telephone initial claims filing system statewide, which will be fully operational by April 30, 2001. She said interstate claimants would receive a toll-free phone number to file their claims in lieu of mailing in the traditional blue card.
She commented the next phase of technological automation in the division would be the expansion of the claims filing system to the Internet. She added the division has received approximately $500,000 in DOL grant funds to accomplish this project.
Mrs. Chowning asked whether any funds were allocated within the budget for the maintenance of the telephone initial claims filing system. Ms. Baker responded that decision unit E-300 includes ongoing operational expenses for the statewide system. Ms. Baker pointed out there is an allocation of $99,022 for FY 2002 and $190,744 for FY 2003 for operational expenses.
Ms. Baker thanked her staff for their efforts in securing the DOL grant to expand the Internet claim filing system, as Nevada was one of only three states to receive both this grant and the one for their telephone system. She motioned to Fred Suwe, Deputy Administrator, Employment Security Division Regional Office, North, and thanked him for his accomplishments.
E-301 Maximize Internet & Technology – Page DETR-30
Ms. Baker stated this decision unit supports the maintenance costs of the new adjudication program, which is requested to automate the eligibility process. She mentioned the development costs are included in the DETR, Employment Security ‑ Special Fund budget account 235-4771. She said the new system was referenced in the corrective action plan, which was submitted to the DOL to address the timeliness standards discussed earlier.
Mrs. Chowning inquired how the $30,500 figure requested in decision unit E-301 was derived. Ms. Baker said she believes the Division of Information Development and Processing based the figure on historical costs. Mrs. Chowning expressed her hope the amount requested would be sufficient. Ms. Baker assured her the division would be able to work with it.
E-710 Replacement Equipment – Page DETR-30
E-720 New Equipment – Page DETR-31
Ms. Baker said decision units E-710 and E-720 consist largely of personal computers and printers to be replaced in accordance with the approved replacement schedule. She said the new software applications necessitate new hardware.
Mrs. Chowning commented the committee understands the need for new hardware, but the committee would appreciate further justification for the replacement of three agency vehicles. She said the mileage on each of those vehicles appears to be 42,000, 60,000 and 70,000. She questioned whether any of the requested items could be postponed until the next biennium. She asked why the division is requesting an upgrade to Corel WordPerfect instead of Microsoft Word.
Ms. Baker acknowledged there are numerous items requested in the budget. She commented the vehicles were included in the request because it is anticipated they will reach 80,000 miles during the next biennium, which is the predetermined replacement indicator. She added that the vehicles would not be replaced if their mileage does not surpass 80,000 miles or if they are still operating smoothly during the biennium. She stated the local office managers contributed to the list of requested items based on their perceived needs within each office. She added the division would not replace equipment in any office that would be closed, so there may be future cost savings.
Ms. Baker stated the UI contribution section, the tax section and the adjudication section currently use Corel WordPerfect. She said she hopes to have the entire division using Microsoft Word by the end of the biennium.
Mr. Beers questioned why the division is requesting Corel WordPerfect instead of Microsoft Word. Marty Ramirez replied the staff in the UI contributions section and the adjudication section have developed extensive forms and macros, which they have not been able to successfully convert from Corel WordPerfect at this point. Mr. Ramirez indicated the proposed implementation of an automated adjudication system would eliminate some dependence on Corel WordPerfect, and they felt it was futile at this point to force the conversion to Microsoft Word. Mr. Ramirez stated Corel WordPerfect is working well for the staff.
Mr. Beers questioned why the division should upgrade Corel WordPerfect if it is currently working well. Mr. Ramirez responded the division experienced difficulties when it upgraded their GroupWise Suite, so he wants to ensure the Corel WordPerfect continues to function properly.
Mr. Beers articulated:
I don’t believe that upgrading your WordPerfect will do anything to improve the relationship between WordPerfect and Novell. Have you tried converting it with one copy yet to make sure that WordPerfect itself, is forward compatible with the previous version?
Mr. Ramirez responded he is not certain.
Senator O’Donnell concurred with Mr. Beers’ comments. He added that the entire state is using Microsoft Word and the division needs to “bite the bullet” and change.
Mr. Vance responded to Senator O’Donnell:
You and I are in sync on this. Microsoft Word is a DETR standard with rare exceptions. What we are talking about here is not word processing. It is very elaborate macros. I guess if you would trust my judgment a little bit, these units did a very thorough quantitative analysis and qualitative analysis of what they needed to produce and tried to do it on Word. And I was convinced from what they showed me that it is not possible for Word to do it. I have forced dozens of people using simple word processing off WordPerfect. I totally concur, but this was a different animal. We’re upgrading it because I think the older versions are failing to be supported.
Senator O’Donnell responded he would trust Mr. Vance’s judgment.
Mr. Beers acknowledged Microsoft Word does not have the capabilities to automate workflow like Corel WordPerfect, and he inquired whether the division had explored other software options.
Mr. Vance responded new systems will include automated documents, which would then make continued use of the macros in Corel WordPerfect unnecessary.
Mr. Beers said he does not believe any better integration between Novell GroupWise and Corel WordPerfect would be achieved by upgrading Corel WordPerfect. He said he could understand their continued use of the current version of Corel WordPerfect until the new automated system is implemented, but he does not believe an upgrade of Corel WordPerfect is warranted. He stated he believes technical support can be located for the current version of Corel WordPerfect.
Mr. Vance said he would reconsider the proposed upgrades.
DETR, Welfare to Work – Budget Page DETR-34 (Volume 2)
Budget Account 101-3226
Ms. Baker stated the Governor is recommending the transfer of the Welfare to Work program including two positions to DETR’s Workforce Investment Support Services (WISS) Unit. She reiterated WISS was created to support the state and local boards in their efforts to implement WIA and one-stop delivery systems. She explained that WISS and Welfare to Work are federally mandated partners in the one-stop system with funding administered through the workforce boards. She said the transfer would enable the state board to advise the Governor on the distribution of the Governor’s Reserve Funds for both programs. She added, “The Welfare Division will continue to certify eligible participants and refer them to the local boards.” She said DETR would be responsible for financial reporting, as well as the state plan. She clarified the former state job training office was previously responsible for financial monitoring and development of state policies of the Welfare to Work program, which now falls within DETR.
Mrs. Chowning questioned whether there would be any budget modifications if all of the funds were not spent.
Ms. Baker responded that she recently spoke with Michael J. Willden, Administrator, Welfare Division, Department of Human Resources, regarding the funds in the budget. She said he indicated his division should have the expenditures in the current Fiscal Year, which includes General Fund money to match federal funds, reconciled by the beginning of next week. At that point, she will be aware of any necessary budget modifications, and will provide that information to LCB staff, she added.
Ms. Giunchigliani added that Mr. Willden had stated his division is working on that reconciliation at a hearing last week, so she anticipates the information will be available soon. She asked whether decision unit E-710 within the Employment Security budget account 205-4770 had been addressed, as she had been absent for much of the meeting.
Ms. Baker responded the decision unit had been addressed.
Ms. Giunchigliani asked what the ages of the three vehicles to be replaced are. She added that the mileage on the vehicles does not appear very high.
Ms. Baker reiterated the state’s policy is to replace vehicles after surpassing 80,000 miles, and these three vehicles would not be replaced during the next biennium unless they reach 80,000 miles and are not operating well. She said the vehicles were included in the request because it appeared they might reach the 80,000 thresholds during the biennium.
Ms. Giunchigliani asked what the vehicles are used for. Ms. Baker responded the vehicles are used for field audits, quality control programs, such as the benefit accuracy measurement program, and the benefit payment control program.
Ms. Giunchigliani inquired how old the vehicles are. Ms. Baker said she believes the oldest vehicle is eight years old. The rural areas use DETR vehicles to travel for training, she added.
Ms. Giunchigliani asked whether the vehicles were used in lieu of reimbursement for employees using their own vehicles. She said the issue had been discussed in the past.
DETR, Career Enhancement Program – Budget Page DETR-38 (Volume 2)
Budget Account 205-4767
Ms. Baker stated the Career Enhancement Program is an employment and training program with the primary goal of assisting unemployed job seekers to return to gainful employment. She added the program provides funding for skill enhancement training and reemployment services provided by a variety of vendors, including the state’s four community college systems. She indicated a significant variance occurred between the projected and actual performance indicators in FY 2000 as a result of a $700,000 revenue shortfall, which necessitated the reduction of client service expenditures in FY 2000. She said she anticipates a similar shortfall in FY 2001, which will result in lower than projected outcomes in the current fiscal year as well.
M-200 Demographics/Caseload Changes – Page DETR-39
She said the Governor is recommending an increase of approximately $2.1 million in client services over the biennium to meet the state’s workforce needs. She added Nevada anticipates growth of over 10 percent in the labor force and employers. She commented, “The division is projecting to serve approximately 3,400 additional clients through individual training programs that are funded from this decision unit during the upcoming biennium.” She indicated many of the customized programs funded through this budget account are for individuals entering the labor force for the first time or reentering after a prolonged absence. She said funding for these programs is available through a request for proposal (RFP) process and successful bidders will be required to track employment outcomes up to one year after the completion of training. She said the division projects serving up to 2,500 additional clients through these programs in each year of the biennium.
Mrs. Chowning asked Ms. Baker to comment on the level of revenue and expenditure performance demonstrated in this budget account. She questioned why only $3.9 million or 36 percent of its authorized budget of $10.75 million has been expended at this point. She asked whether the division would require the additional funding recommended in the budget. She said she would also appreciate revisiting the E-720 decision unit in the Employment Security budget account to discuss the request for new phone equipment.
Ms. Baker said the FY 2001 work program was approximately $9.1 million in revenue, but that revenue amount has now been revised to $8.2 million. She indicated the revenue shortfall would be offset by a decrease in client services. She said they would not reach their performance indicators on the individual training programs. She stated the customized training program is for groups, and the RFP process will make those funds available through contracts. The contracts for the first round of RFPs equaled approximately $500,000, and the second round of RFPs will include approximately $700,000 worth of contracts, she added.
Ms. Baker said she believes the program will be able to serve about 2,500 additional clients in each year of the biennium by utilizing these customized training programs. She stated she is confident they will accomplish their training goals.
Mrs. Chowning asked whether Ms. Baker believes she can accomplish the 10 percent growth anticipated. Ms. Baker replied affirmatively.
DETR, Employment Security – Budget Page DETR-24 (Volume 2)
Budget Account 205-4770
E-720 New Equipment – Page DETR-31
Ms. Baker responded to Mrs. Chowning’s request for further explanation of the request for a new telephone system. She explained the new telephone initial claims filing system requires an efficient, reliable system.
Mrs. Chowning asked who recommended the replacement of 80 phones in southern Nevada and 40 phones in northern Nevada. Ms. Baker responded this is a contingency plan to replace any or all phones when they cease to function properly. Ms. Baker added they will not replace phones that continue to function without incident, but they need to have replacement phones available for immediate use to maintain their operations.
Mrs. Chowning asked who recommended the replacement of 239 personal computers, 5 laptop computers, and 89 printers. Ms. Baker said the replacement of the computers and printers is based upon the replacement policy of DoIT. Ms. Baker added that the software they are using has become increasingly sophisticated necessitating more advanced hardware.
Mrs. Chowning asked who recommended the phone replacement. Ms. Baker responded she and her staff based the recommendation for the replacement of phones on historical experience with their phone system.
Mrs. Chowning asked who decides what type of phones and what phone company will be used. Ms. Baker said those decisions are made by DoIT. DoIT has a purchase agreement with Lucent Technologies and Avaya Communication, who provide the service to the division, she added.
DETR, Employment Security – Special Fund – Budget Page DETR-44 (Volume 2)
Budget Account 235-4771
Ms. Baker explained this fund is composed of all interest and forfeitures collected from employers for nonpayment or late payment of unemployment taxes; the funds are used by the administrator to cover division expenses for which federal funds are not available. This fund has typically been used for maintenance costs of agency-owned buildings and technological enhancements to UI programs not funded federally, she added. She pointed out the division is proposing to use these funds to augment its budget during the next biennium because of an anticipated shortfall in federal funding. She added the division is investing in technology to reduce future staffing needs and purchasing its own building in southern Nevada to reduce annual rental costs by over $300,000 each year.
Ms. Baker pointed out she has already discussed many of the decision units within this budget with the exception of E-302.
E-302 Maximize Internet & Technology – Page DETR-45
Ms. Baker stated $1.9 million was approved during the 1999 Legislative Session to begin a three-year rewrite of the Nevada Unemployment Insurance Contributions System. She commented this decision unit provides an additional $2.2 million over the next biennium for completion of this project.
E-850 Special Projects – Page DETR-47
Ms. Baker explained this decision unit provides $2 million from the Special Fund for construction of a 40,000 square foot building in southern Nevada. She said the total cost of the project is estimated to be $8.2 million. She indicated additional funding would be provided from the DOL Reed Act Funds in the amount of $1 million, proceeds from the sale of properties in Reno and Las Vegas, approximately $1 million, and the remaining $4.2 million to be financed through bonds. This project is included in the Governor’s Capital Improvement Program for the next biennium, she added.
Mrs. Chowning asked her to clarify the cost of the project.
Ms. Baker responded the total cost of the project is $8.2 million. She clarified the Capital Improvement Program indicates about $460,000 would be paid by the department in the first year of the biennium with the balance paid in the second year of the biennium. She said she believes an area of concern is the department’s principle and interest account does not reflect any funds being set aside for the first year of the biennium. She pointed out that the DOL Reed Act Funds are available to the department at any time, but they are not reflected in this account.
Mrs. Chowning questioned the need for the building besides saving on the rent expenses. Ms. Baker said the most significant advantage of the new building is the consolidation of the department’s offices, which are currently dispersed throughout southern Nevada. It is easier to maximize the department’s resources when they are in one physical location, she added. Ms. Baker said the savings in rent would reduce ongoing expenses and alleviate some of the division’s dependence on federal funds, which have been decreasing.
Mrs. Chowning asked where the new building would be located. Ms. Baker responded the proposed site is in Las Vegas, one block south of West Sahara, between Laredo and Eldora Avenues, which is in a residential area. She said the department is still considering other locations owned by the Bureau of Land Management (BLM) because of the residential status of the proposed site.
Mrs. Chowning commented the proposed site is definitely a residential area. She questioned what the next step would be if the proposed site must be abandoned.
Ms. Baker said there are numerous potential sites, and she will keep the committee informed of their decisions.
The meeting was adjourned at 10:49 a.m.
RESPECTFULLY SUBMITTED:
Jennifer Ruedy
Committee Secretary
APPROVED BY:
Assemblywoman Vonne S. Chowning
Chairwoman
DATE:
APPROVED BY:
Senator William R. O’Donnell, Chairman
DATE: