MINUTES OF THE
SENATE Committee on Finance
Seventy-First Session
March 29, 2001
The Senate Committee on Financewas called to order by Chairman William J. Raggio at 4:00 p.m., on Thursday, March 29, 2001, in Room 2134 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. Exhibit B is the Attendance Roster. All exhibits are available and on file at the Research Library of the Legislative Counsel Bureau.
COMMITTEE MEMBERS PRESENT:
Senator William J. Raggio, Chairman
Senator Raymond D. Rawson, Vice Chairman
Senator Joseph M. Neal Jr.
Senator Bob Coffin
Senator Bernice Mathews
COMMITTEE MEMBERS ABSENT:
Senator Lawrence E. Jacobsen
Senator William R. O’Donnell
STAFF MEMBERS PRESENT:
Gary L. Ghiggeri, Fiscal Analyst
Bob Guernsey, Principal Deputy Fiscal Analyst
Bob Atkinson, Program Analyst
Michael J. Chapman, Program Analyst
Lu Chen, Education Research Statistician
Judy Jacobs, Committee Secretary
OTHERS PRESENT:
Carlos Brandenburg, Ph.D., Administrator, Division of Mental Health and Developmental Services, Department of Human Resources
Michael Torvinen, Administrative Services Officer IV, Division of Mental Health and Developmental Services, Department of Human Resources
Dave Luke, Ph.D., Associate Administrator for Developmental Services, Division of Mental Health and Developmental Services, Department of Human Resources
Joel Pinkerton, Budget Analyst, Budget Division, Department of Administration
Scott Sisco, Acting Director, Department of Museums, Library and Arts
SENATE BILL 248: Makes supplemental appropriation to Department of Museums, Library and Arts for unanticipated additional utility costs, personnel costs and purchasing assessments. (BDR S-1255)
Senator Raggio asked the committee to review Amendment No. 79 to Senate Bill (S.B.) 248, which changes the amount being appropriated from the printed sum of $15,220 to $35,791. He explained the appropriation is for the Department of Museums, Library and Arts. He noted the amendment adds appropriations to the Division of Museums and History for $1,719 and to the Nevada State Railroad Museum for $488. It increases the administrative office appropriation to $19,226, the Nevada Museum and Historical Society in Las Vegas to $7,021, the Nevada Historical Society to $6,913, and the Lost City Museum to $424. He reminded the committee that Scott Sisco, Acting Director, Department of Museums, Library and Arts, requested the adjustments.
Senator Raggio asked whether the committee was satisfied with the amendment.
SENATOR COFFIN MOVED TO AMEND SENATE BILL 248 WITH AMENDMENT NO. 79 AND DO PASS AS AMENDED.
SENATOR NEAL SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS O’DONNELL, RAWSON, AND JACOBSEN WERE ABSENT FOR THE VOTE.)
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Senator Coffin asked whether Mr. Sisco’s estimate of utility rates was based upon budgets at the midpoint in the biennium.
Bob Guernsey, Principal Deputy Fiscal Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, replied the budgets were based upon the latest projections to the end of the fiscal year (FY), and the sums appropriated should cover all of their anticipated expenses. He said the amendment reflects the latest figures on their utility bills and discussions with the power company.
Senator Raggio indicated the amendment states, “unanticipated utility costs, personnel costs, and purchasing assessments.” The committee agreed with the provisions of the amendment.
Senator Raggio noted all the bills on the agenda contain appropriations included in The Executive Budget. He opened the hearing on Senate Bill (S.B.) 435.
SENATE BILL 435: Makes appropriation to Division of Mental Health and Developmental Services of Department of Human Resources for hardware, software and new and replacement computer equipment at Nevada Mental Health Institute. (BDR S-1367)
Senator Raggio noted the bill requests $450,000 for the Division of Mental Health and Developmental Services.
Carlos Brandenburg, Ph.D., Administrator, Division of Mental Health and Developmental Services, Department of Human Resources, said the language of S.B. 435 was intended to include new and replacement equipment and new and replacement computer hardware and software.
Senator Raggio asked whether it was still necessary to seek an appropriation for $450,000. Dr. Brandenburg confirmed that it would be. Senator Raggio drew attention to a packet of backup material provided by staff. (Exhibit C. Original is on file in the Research Library.)
Dr. Brandenburg summarized the materials, noting the bill provides for replacement of software programs, replacement of computers according to a planned 4-year replacement schedule, wiring upgrade to increase capacities at the Nevada Mental Health Institute, upgrading the system for dispensing of medication to increase medication accuracy, replacing refrigerators where medications are stored, new electronic blood pressure and pulse equipment for the nursing staff, furnishings for the psychosocial rehabilitation program, neuropsychological testing equipment for psychologists, and replacement of furnishings in client areas. He noted most of the furniture is 1950s vintage, and the institute has established a replacement schedule.
Senator Coffin asked whether the furniture would be replaced by furniture from prison industries. Dr. Brandenburg replied most likely the division will work with prison industries, as has been done in the past at other facilities.
Senator Raggio pointed out there is a likely potential that budgets will have to be trimmed, with “one-shots” to be the first to be considered. He requested that the division submit a priority list of the items with potential reductions of 5, 10, and 15 percent. He said staff suggested that computer prices be updated and adjusted.
Michael Torvinen, Administrative Services Officer IV, Division of Mental Health and Developmental Services, noted the list was prepared prior to the time new pricing came out, and the division is in the process of refining the numbers.
There being no further testimony, Senator Raggio closed the hearing on S.B. 435 and opened the hearing on S.B. 436. He noted the appropriation requests $35,204.
SENATE BILL 436: Makes appropriation to Department of Human Resources for software and new and replacement equipment for Rural Regional Center of Division of Mental Health and Developmental Services. (BDR S-1369)
Dr. Brandenburg said office copiers are designated for the Carson City and Elko offices; computer hardware is designated for various sites and includes five computers, two laptop computers, and upgrading software at those sites; a separate phone line, equipment and Internet access is designated for the Fallon and Winnemucca offices; and cellular phones are designated for the Winnemucca staff.
Senator Raggio requested that a priority list also be provided on the items with 5, 10, and 15 percent reductions. He went on to S.B. 439.
SENATE BILL 439: Makes appropriation to Division of Mental Health and Developmental Services of Department of Human Resources for new and replacement equipment and computer hardware and software at Desert Regional Center. (BDR S-1374)
Senator Raggio noted $164,442 was being requested. Dr. Brandenburg responded the bill provides for scheduled replacement of furnishings in residential homes. Also, he said, the request provides for major equipment replacement, including two hot water heaters, special equipment not provided by Medicaid for clients, vehicles to transport clients, adaptive equipment for intermediate care facility (ICF) clients, and telephone equipment.
Senator Raggio asked whether there would be any matching funds for any of the bills discussed, or whether all the requests would come from the General Fund. Dave Luke, Ph.D., Associate Administrator for Developmental Services, Division of Mental Health and Developmental Services, Department of Human Resources, responded a Medicaid match is available for each of the two large regional centers for furnishings such as the ICF equipment. Senator Raggio remarked that shows in the backup material (Exhibit C). He noted the $164,442 state appropriation provided in S.B. 439 would be supplemented by a Medicaid match of $136,293 over the biennium.
Senator Raggio asked whether the same applies to the other bill. Dr. Brandenburg replied it would not be the same for the institute in S.B. 435, but it would apply to the Rural Regional Center appropriation in S.B. 436. Dr. Luke agreed there are two items included in S.B. 436 that would be matched with federal funds. Senator Raggio noted there is a small operating lease payment that is ongoing, and he asked why it was included in a one-time appropriation. Mr. Torvinen explained all the costs are factored in to the case management rate, and costs are recovered from billing case management. He said the agency calculates that 45 percent of the expenditures for the equipment in S.B. 436 can be recovered from federal Medicaid funds through the case management rate, and that rate is adjusted annually.
Senator Raggio asked whether that has to be done through a one-shot appropriation, or whether it could be done through the budget. Mr. Torvinen said the “one-shot” includes only the General Fund portion of the cost of the items.
Senator Raggio asked whether staff would recommend doing it in that manner. Mr. Guernsey responded the lease cost would normally be an operating expense included in the budget. He said that historically such expenses have not been included in a “one-shot” request. He suggested working with the agency to determine the funding is in the best place. Senator Raggio noted there are other items in the one-time appropriation requests, such as telephone charges, that should be reviewed. Mr. Guernsey agreed.
Senator Rawson said by the time the budgets are reviewed, even the smaller items mount up, and the Legislature needs an accurate account of ongoing costs in order to determine the true revenue picture.
Dr. Brandenburg concurred and explained the items were included in the one-shot because they were above the Governor’s cap. Senator Raggio asked that the division work with the legislative staff. Senator Rawson interjected it should be done the correct way, regardless of the criteria from the Governor.
Senator Rawson stated it was important to ensure General Fund money was not being used for one-time appropriations if other revenues are available or if the requested items are not needed.
Senator Raggio informed Senator Rawson he had advised the agencies to provide priority lists with percentage reductions on the bills heard.
SENATE BILL 440: Makes appropriation to Division of Mental Health and Developmental Services of Department of Human Resources for new and replacement equipment and computer hardware and software at Sierra Regional Center. (BDR S-1375)
Dr. Brandenburg said the situation with S.B. 440 is similar to the previous bills in which it will provide new and replacement equipment and computer hardware and software for Sierra Regional Center. Dr. Luke added it will include replacement furnishings for ten homes, a wheelchair vehicle, and replacements for two other 10-year-old vehicles.
Senator Rawson asked whether the equipment would normally be funded with bond proceeds or paid out of the General Fund. Dr. Luke answered the purchase is usually made with General Fund, and then a portion of the cost is recaptured from Medicaid through depreciation and reimbursement for the cost to service it.
Senator Rawson asked what the life span would be. Dr. Luke responded there are a variety of replacement schedules and life spans ranging from 2 to 7 years. Senator Rawson asked staff whether it would be possible to put the items under a short-term bond, with the caveat nothing should be bonded that wears out before it is paid off. Gary L. Ghiggeri, Fiscal Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, commented there are computers and vehicles included in the budgets that would not warrant bonding because they would wear out before they were paid off.
SENATE BILL 441: Makes appropriation to Department of Human Resources for new and replacement equipment and computer hardware and software at Rural Clinics. (BDR S-1377)
Dr. Brandenburg testified the bill funds replacement of a 12-passenger van for the Carson City clinic, phone systems in Winnemucca and Lovelock because Nevada Bell will no longer service the system, a desk in Yerington, and medication carts in Ely, Silver Springs, Fernley and Dayton. He said it would fund chairs for reception areas in Winnemucca and fund a photocopier lease for Carson City, Elko, and Pahrump. Senator Raggio interjected the lease is another item that should be reviewed with staff. He also asked why refrigerators that no longer work should have to be replaced. Dr. Brandenburg replied they are used to store medications.
SENATE BILL 446: Makes appropriation to Department of Human Resources for new and replacement computer equipment and software for Division of Mental Health and Developmental Services. (BDR S-1385)
Senator Raggio pointed out the request in S.B. 446 was for $90,742. Dr. Brandenburg said S.B. 446 would replace equipment in the central office, including computer hardware, purchasing laptop computers, software upgrades, the facsimile machines, and other office equipment. Senator Raggio asked Dr. Brandenburg to update cost estimates on the computer requests.
SENATE BILL 454: Makes appropriation to Department of Human Resources for implementation of Business Process Re-Engineering Project for Division of Mental Health and Developmental Services. (BDR S-1410)
Senator Raggio reported the request was for $300,000 to provide a business process reengineering (BPR) study, and asked why it was necessary. Mr. Torvinen answered the funds would start the process of replacing the Advanced Information Management System (AIMS) computer program that is used for billing and data collection. He noted the recent Legislative Counsel Bureau (LCB) audit alluded to some of the problems with AIMS. He explained the BPR would start the design of a new system, reengineer the process to find the requirements needed, and allow the division to return next session with a good plan, including cost estimates.
Senator Raggio asked how the $300,000 estimate was reached. Mr. Torvinen said detailed planning went into the request, as indicated in the backup document. He stated temporary staff will be vital to help the consultant on the BPR so that the permanent staff can continue with ongoing duties.
Senator Raggio noted the bill requests 2 Management Analyst positions, and asked why they are included in “one-shot” requests. Mr. Torvinen responded the division anticipates they will only be employed for 2 years. Dr. Brandenburg interjected they would not continue after that.
Senator Raggio inquired whether the division had a contract entity in mind for the BPR. Mr. Torvinen said it did not, and a request for proposal (RFP) would have to be issued. Senator Raggio asked whether $300,000 would be adequate for all of that, and Mr. Torvinen responded it should be sufficient for getting the project going.
Senator Raggio noted the contract cost is estimated at $37,000 the first year and $24,000 the second year and asked what those appropriations would cover. Mr. Torvinen replied that would cover phase 1 for the first 90 days to bring in the consultant to do the BPR studies, and phase 2 to do the feasibility study including system evaluations and cost benefit analysis.
SENATE BILL 455: Makes appropriation to Department of Human Resources for new and replacement equipment, and hardware and software at Lakes Crossing Center. (BDR S-1419)
Dr. Brandenburg reported S.B. 455 provides $94,600 for Lakes Crossing Center, the facility for the mentally disorder offender. He said there are electronic doors, cameras, and monitors that need to be replaced to ensure client security, since it is a 24-hour per day, 7-day per week facility. He said the funds are also earmarked for replacement of software and hardware, new carpet to replace carpet that was installed 12 years ago, and equipment such as vacuum cleaners, televisions, worn-out chairs, and office furniture. He noted much of the furniture will probably be purchased through a contract with the Department of Prisons.
Senator Raggio asked what capacity Lakes Crossing Center has. Dr. Brandenburg answered it accommodates 48 people. Senator Raggio asked what the average census runs, to which Dr. Brandenburg replied it runs around 40.
Senator Raggio reiterated his request for priority lists on all the bills heard, to include reductions of 5, 10, and 15 percent on the major items.
Senator Coffin suggested items of safety be given high priority. Dr. Brandenburg responded the administrators would probably do just that.
Senator Raggio repeated his hope that it would not be necessary to make cuts, but added he would prefer to accommodate the division if budget cuts become necessary. He then asked the committee to turn to Closing List Number 2 (Exhibit D).
DEPARTMENT OF MUSEUMS, LIBRARY AND ARTS
Museums, Library and Arts
Nevada Historical Society – Budget Page CULTURAL-17 (Volume 1)
Budget Account 101-2870
Mr. Guernsey said the staff concurred with the Governor’s recommendations on closing Budget Account 101-2870, and he noted the Assembly Committee on Ways and Means had closed it accordingly. He voiced concern relating to two items, the first being the amount of revenue generated through admission charges. He said Mr. Sisco checked with the director of the museum who expressed confidence with the revenue of $7,500.
Mr. Guernsey said the other item of concern was Senate Bill 248, processed earlier in the hearing, which increased the amount of money required to pay rising utility bills by $6,913 during the current fiscal year. He noted that will amount to a total of $29,778 in the current fiscal year, which is more than is recommended in FY 2002, but less than the $33,748 recommended in FY 2003. He said the administration still seems comfortable with those figures. He surmised the agency may feel it can generate savings in the budget to offset that expense if utility costs continue to increase.
Senator Raggio noted that $6,913 was added to the bill for FY 2001. Mr. Guernsey responded that with that amount, the anticipated expenditures to the end of the current fiscal year, totals $29,778, which is more than is recommended for the following year. He noted the agency does not wish to modify its request.
Senator Raggio surmised the budget as presented accommodates the admission charge of $7,500 per year.
Senator Rawson suggested the Legislature should accommodate the probable increase in utility costs. Senator Raggio pointed out it would be difficult to estimate the increase at the present time. He noted the budget included an increase, and asked what formula was used to calculate the increase.
Joel Pinkerton, Budget Analyst, Budget Division, Department of Administration said he did not know, but suggested Mr. Sisco might. Mr. Guernsey interjected the staff did not know what policy the committee would prefer to pursue at this point. Senator Rawson asked whether the matter could be dealt with out of the Contingency Fund during the interim if it became necessary. Senator Raggio suggested it would be better to review it at that time rather than to simply guess at this time.
Scott Sisco, Acting Director, Department of Museums, Library and Arts, said for the remainder of the fiscal year the department used last year’s figures, then contacted the power companies and were given the figures approved by the Public Utilities Commission to the present. He said that included a 15 percent increase in electricity and a 30 percent increase in natural gas. Those figures, he said, were used in calculations to the end of the present fiscal year. He indicated he understood Mr. Guernsey’s concern, but acknowledged he had no answer for the upcoming budget.
Senator Raggio proposed closing the budgets with the understanding that there may be a necessity for agencies to return to the IFC for Contingency Fund approval.
SENATOR RAWSON MOVED FOR APPROVAL OF BUDGET ACCOUNT 101‑2870 AS RECOMMENDED BY THE GOVERNOR.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS O’DONNELL AND JACOBSEN WERE ABSENT FOR THE VOTE.)
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Comstock Historic District – Budget Page CULTURAL-33 (Volume 1)
Budget Account 101-5030
Senator Raggio commented he would delay the hearing on the Comstock Historic District budget because the composition of the district is still under discussion in the Senate Committee on Government Affairs.
Nevada State Library – Budget Page CULTURAL-40 (Volume 1)
Budget Account 101-2891
Mr. Guernsey reported the budget is fairly flat, and the staff concurred with the Governor’s recommendation on closing. He said the agency has 30.5 existing positions, moving up to 30.57 to ensure there will not be a duplicate payment of miscellaneous salary costs.
Mr. Guernsey pointed out the budget includes zero inflation for books and publications, and the Assembly Committee on Ways and Means held the budget to request additional information, which he provided in a copy of a memorandum from the department (Exhibit E). He said the memorandum makes reference to book inflation and attempts to pattern it after the budget for the Supreme Court Law Library. He explained the cost of a 6.1 percent inflation factor would be $14,442 in the first year and $15,506 in second year, for a total adjustment of $29,948 over the 2 years of the biennium.
Senator Raggio stated there is little doubt there will be inflation costs over the biennium. He suggested the prudent thing to do would be to close the budget with the industry standard rate. Mr. Guernsey commented that would be consistent with what is being considered for the Supreme Court Law Library.
SENATOR RAWSON MOVED TO CLOSE BUDGET 101-2891 AS PRESENTED IN THE EXECUTIVE BUDGET WITH THE ADDITION OF A 6.1 PERCENT INFLATION FACTOR FOR BOOKS AND PUBLICATIONS, FOR A TOTAL ADDITION OF $29,948.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS JACOBSEN AND O’DONNELL WERE ABSENT FOR THE VOTE.)
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Archives and Records – Budget Page CULTURAL-45 (Volume 1)
Budget Account 101-1052
Mr. Guernsey said staff recommends closing budget 101-1052 according to the Governor’s recommendation. However, he said, additional information should be brought to the attention of the committee.
Mr. Guernsey provided a handout dated March 28, 2001 (Exhibit F), which he explained was generated as a result of the hearing before the Assembly Committee on Ways and Means, which held the budget. He reminded those who serve on the Capital Improvements Projects (CIP) subcommittee that testimony was heard regarding the Southern Nevada Records Center in the Melrose Building. He said that when the budgets were constructed it was anticipated that the facility would not be completed for occupancy during the coming biennium. He reported it was his understanding that during testimony before the CIP subcommittee it was indicated the facility will be ready earlier than anticipated, so the Assembly committee requested budget information in reference to additional staffing. He admitted committee staff had not had time to fully review the information.
Senator Rawson opined the Melrose Building would be inadequate for records storage. He said the agency had indicated the building would be used as an interim facility for the next 6 years. He acknowledged record storage is necessary, but stated there should be an alternative plan and the planning funds should be used for something more permanent. He suggested it might be better to rent some space.
Senator Raggio noted that staff will be needed whether the project continues or whether space is rented. He decided to hold the budget for the time being.
Micrographics and Imaging – Budget Page CULTURAL-49 (Volume 1)
Budget Account 101-1055
Mr. Guernsey said there was only one exception to the Governor’s recommended closing. He explained there is a new item in the department’s administration budget to provide $17,000 for training, entirely allocated from the General Fund. He said the staff suggested prorating the costs, and to tap into the agencies that have their own funding sources rather than using all General Fund. He noted micrographics has its own funding source. He said the formula for the $17,000 was developed based on an annual cost of $100 per employee.
Mr. Guernsey said the staff recommends allocating the costs to the department’s budgets. He said funding would be transferred to the administration budget to offset the cost and reduce the General Fund cost. He indicated that should have a net effect of reducing funding in the budget by $1,200 in the first year and $2,400 in the second year. He noted the savings would be reflected in a separate account to be closed later.
SENATOR RAWSON MOVED TO CLOSE BUDGET 101-1055 ACCORDING TO THE STAFF RECOMMENDATION.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS JACOBSEN AND O’DONNELL WERE ABSENT FOR THE VOTE.)
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Nevada State Library – Literacy – Budget Page CULTURAL-54 (Volume 1)
Budget Account 101-2893
Mr. Guernsey pointed out there are just minor adjustments shown on page 6 of Closing List Number 2 (Exhibit D) to be considered to properly align the receipt of federal funds.
SENATOR MATHEWS MOVED TO CLOSE BUDGET 101-2893 WITH MINOR ADJUSTMENTS AS RECOMMENDED BY STAFF
SENATOR RAWSON SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS JACOBSEN AND O’DONNELL WERE ABSENT FOR THE VOTE.)
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Nevada State Library-CLAN – Budget Page CULTURAL-58 (Volume 1)
Budget Account 101-2895
Mr. Guernsey reported the staff recommended closing this budget according to the Governor’s recommendation. He pointed out that once final charges are received from the Department of Information Technology (DoIT) a number of the budgets within the department may have to be reconsidered. Senator Raggio noted that understanding was included in the closing of all the budgets. Mr. Guernsey responded the final budgets might result in savings in the General Fund.
SENATOR RAWSON MOVED TO CLOSE BUDGET 101-2895 ACCORDING TO THE GOVERNOR’S RECOMMENDATION.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS JACOBSEN AND O’DONNELL WERE ABSENT FOR THE VOTE.)
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ADMINISTRATION
Merit Award Board – Budget Page ADMIN-14 (Volume 1)
Budget Account 101-1345
Michael J. Chapman, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, said the staff recommends closing the budget in accordance with the Governor’s recommendation.
SENATOR RAWSON MOVED TO CLOSE BUDGET 101-1345 ACCORDING TO THE GOVERNOR’S RECOMMENDATION.
SENATOR MATHEWS SECONDED THE MOTION.
Senator Coffin asked Mr. Chapman to inform the committee whether the Assembly Committee on Ways and Means had closed any of the budgets with changes to the recommendations. Mr. Chapman responded the four administration budgets were all closed by the Assembly as recommended by the Governor or staff as depicted on Closing List Number 2 (Exhibit D).
THE MOTION CARRIED. (SENATORS JACOBSEN AND O’DONNELL WERE ABSENT FOR THE VOTE.)
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Indigent Supplemental Account – Budget Page ADMIN-23 (Volume 1)
Budget Account 628-3244
Mr. Chapman noted an adjustment recommended by staff set forth on page 9 of Closing List Number 2 (Exhibit D) to reflect correct property tax assessed valuation. He reiterated staff requests authority to modify that amount in the revenues and associated expenditures, should the assessed valuations be modified prior to the end of session.
Senator Raggio asked for confirmation on how the budget is funded. Mr. Chapman indicated the budget is funded through a 1-cent tax on $100 of assessed valuation. He said the Nevada Association of Counties (NACO) administers the account. He explained the account reimburses hospitals for unpaid bills in excess of $25,000 for medical treatment of indigents.
SENATOR RAWSON MOVED TO APPROVE BUDGET 628-3244 AS RECOMMENDED BY STAFF.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS JACOBSEN AND O’DONNELL WERE ABSENT FOR THE VOTE.)
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Indigent Accident Account – Budget Page ADMIN-25 (Volume 1)
Budget Account 628-3245
Mr. Chapman reported staff was recommending changes similar to those for the previous account to correctly reflect the property tax assessed valuations. He said staff requests authorization to modify those later if the assessed valuations are modified prior to the end of session.
Senator Raggio noted the percent paid from the account varies from year to year. He indicated it paid just 26 percent in 1995 because of limited funds, but in 1997 it paid as much as 51 percent, and last year it paid 37 percent. Mr. Chapman explained the counties submit claims to NACO, and then the price is set and certified. He said the Chairman’s observation is correct that the amount of money in the fund affects the percentage.
Senator Raggio asked how the amounts are determined. Mr. Chapman responded that when a hospital incurs expenditures in excess of $3,000 it submits claims to NACO, and NACO certifies the acceptable amounts. Senator Raggio observed this account is funded at 1.5 cents for each $100 of assessed value in the county.
Senator Rawson commented there have been discussions that the fund should be tied to some particular formula, because it could be catastrophic for a small county. He said if a tourist driving through the county had a serious accident that incurred costs of $1 million, it would devastate a small county. He asserted there should be some stop losses on the fund, and the state should endeavor to cover some percentage. He acknowledged there probably will not be time to address the problem during the present session. He suggested a small tax could be developed to be deposited to the fund and distributed to NACO. He noted all the counties approached the Senate Committee on Human Resources to express concern about the problem.
Senator Raggio pointed out there is a difference between billed charges and actual costs. Senator Rawson expressed the belief that the rates are based on Medicaid or Medicare rates. Mr. Chapman interjected there is a set formula that is used.
SENATOR RAWSON MOVED TO CLOSE BUDGET 628-3245 ACCORDING TO STAFF RECOMMENDATIONS AND WITH THE POSSIBILITY OF ADJUSTING FOR THE FINAL ASSESSED VALUATION.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS JACOBSEN AND O’DONNELL WERE ABSENT FOR THE VOTE.)
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Deferred Compensation Committee – Budget Page ADMIN-27 (Volume 1)
Budget Account 101-1017
Mr. Chapman recommended that the budget be closed as presented by the Governor.
SENATOR RAWSON MOVED TO CLOSE BUDGET 101-1017 AS RECOMMENDED BY THE GOVERNOR.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS JACOBSEN AND O’DONNELL WERE ABSENT FOR THE VOTE.)
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PERSONNEL
State Unemployment Compensation – Budget Page PERSNL-8 (Volume 1)
Budget Account 101-1339
Bob Atkinson, Program Analyst, Fiscal Analysis Division, Legislature Counsel Bureau, reported the staff recommended closing the budget as recommended by the Governor.
SENATOR RAWSON MOVED TO CLOSE BUDGET 101-1339 AS RECOMMENDED BY THE GOVERNOR.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS JACOBSEN AND O’DONNELL WERE ABSENT FOR THE VOTE.)
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ELECTED OFFICIALS
Ethics Commission – Budget Page ELECTED-19 (Volume 1)
Budget Account 101-1343
Lu Chen, Education Research Statistician, Fiscal Analysis Division, Legislative Counsel Bureau, said staff suggested closing the budget as recommended by the Governor. She proposed inclusion of a footnote that the commission counsel position is dependent upon passage of S.B. 501, which would repeal the expiration of the counsel appointment. Senator Raggio noted S.B. 501 was being heard in the Senate Committee on Government Affairs.
SENATE BILL 501: Repeals prospective expiration by limitation of provisions relating to appointment of commission counsel by commission on ethics. (BDR S-1317)
Senator Raggio asked whether the position was included in the budget. Ms. Chen replied it was included in the Governor’s recommended budget, so if S.B. 501 passes the budget would be correct.
SENATOR RAWSON MOVED TO CLOSE BUDGET 101-1343 ACCORDING TO THE GOVERNOR’S RECOMMENDATION.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS JACOBSEN AND O’DONNELL WERE ABSENT FOR THE VOTE.)
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The committee discussed touring some of the state properties being considered for acquisition or renovation and new buildings constructed by the state. There being no further business to come before the committee, Senator Raggio adjourned the hearing at 5:20 p.m.
RESPECTFULLY SUBMITTED:
Judy Jacobs,
Committee Secretary
APPROVED BY:
Senator William J. Raggio, Chairman
DATE: