Assembly Bill No. 600–Committee on Ways and Means

 

March 26, 2001

____________

 

Referred to Committee on Ways and Means

 

SUMMARY—Provides for preparation of legislative proposal for budget for state government. (BDR 17‑1132)

 

FISCAL NOTE:    Effect on Local Government: No.

                                 Effect on the State: Yes.

 

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to the legislature; requiring the fiscal analysis division of the legislative counsel bureau to prepare a legislative proposal for the budget for the state government; requiring the chief of the budget division of the department of administration to provide certain information to the fiscal analysis division of the legislative counsel bureau; repealing the provision that creates the budget subcommittee of the legislative commission; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

1-1    Section 1. Chapter 218 of NRS is hereby amended by adding thereto

1-2  the provisions set forth as sections 2 and 3 of this act.

1-3    Sec. 2.  1.  The fiscal analysis division shall prepare the legislative

1-4  proposal for the budget for the state government for each biennium for

1-5  presentation to the legislature for its consideration not later than the

1-6  second day of each regular session of the legislature.

1-7    2.  The legislative proposal for the budget must include:

1-8    (a) A complete financial plan for the next 2 fiscal years;

1-9    (b) All proposed expenditures for the administration, operation and

1-10  maintenance of the departments, institutions and agencies of the state

1-11  government, including, without limitation, those operating on money

1-12  designated for specific purposes by the constitution of this state or

1-13  otherwise;

1-14    (c) All interest and debt redemption charges during the next 2 fiscal

1-15  years;

1-16    (d) All expenditures for capital projects to be undertaken and executed

1-17  during the next 2 fiscal years; and

2-1    (e) The anticipated revenue of the state government and any other

2-2  additional means of financing the expenditures proposed for the next 2

2-3  fiscal years.

2-4    Sec. 3.  The interim finance committee shall:

2-5    1.  Advise the fiscal analysis division on matters pertaining to the

2-6  preparation of the legislative proposal for the budget for the state

2-7  government pursuant to section 2 of this act;

2-8    2.  Review fiscal issues that may require consideration by the

2-9  legislature at the next regular session of the legislature; and

2-10    3.  Carry out the duties set forth in this section before the

2-11  commencement of the next regular session of the legislature.

2-12    Sec. 4.  NRS 218.610 is hereby amended to read as follows:

2-13    218.610  As used in NRS 218.610 to 218.735, inclusive, and sections 2

2-14  and 3 of this act, “agency of the state” includes all offices, departments,

2-15  boards, commissions and institutions of the state.

2-16    Sec. 5.  NRS 218.686 is hereby amended to read as follows:

2-17    218.686  1.  The fiscal analysis division consists of the senate fiscal

2-18  analyst, the assembly fiscal analyst and such additional staff as the

2-19  performance of their duties may require.

2-20    2.  The fiscal analysis division shall:

2-21    (a) Thoroughly examine all agencies of the state with special regard to

2-22  their activities and the duplication of efforts between them.

2-23    (b) Recommend to the legislature any suggested changes looking

2-24  toward economy and the elimination of inefficiency in government.

2-25    (c) Ascertain facts and make recommendations to the legislature

2-26  concerning the budget of the state and the estimates of the expenditure

2-27  requirements of the agencies of the state.

2-28    (d) Prepare the legislative proposal for the budget for the state

2-29  government pursuant to section 2 of this act.

2-30    (e) Make projections of future public revenues for the use of the

2-31  legislature.

2-32    [(e)] (f) Analyze the history and probable future trend of the state’s

2-33  financial position [in order] so that a sound fiscal policy may be developed

2-34  and maintained for the State of Nevada.

2-35    [(f)] (g) Analyze appropriation bills, revenue bills, and bills having a

2-36  fiscal impact upon the operation of the government of the State of Nevada

2-37  or its political subdivisions.

2-38    [(g)] (h) Advise the legislature and the members and committees

2-39  thereof regarding matters of a fiscal nature.

2-40    [(h)] (i) Perform such other functions as may be assigned to the fiscal

2-41  analysis division by the legislature, the legislative commission or the

2-42  director of the legislative counsel bureau.

2-43    Sec. 6.  NRS 353.205 is hereby amended to read as follows:

2-44    353.205  [1.] The proposed budget for the executive department of

2-45  the state government for each fiscal year must be set up in three parts:

2-46    [(a)] 1.  Part 1 must consist of a budgetary message by the governor

2-47  [which] that outlines the financial policy of the executive department of

2-48  the state government for the next 2 fiscal years, describing in connection

2-49  therewith the important features of the financial plan. It must also embrace

3-1  a general summary of the proposed budget setting forth the aggregate

3-2  figures of the proposed budget in such a manner as to show the balanced

3-3  relations between the total proposed expenditures and the total anticipated

3-4  revenues, together with the other means of financing the proposed budget

3-5  for the next 2 fiscal years, contrasted with the corresponding figures for the

3-6  last completed fiscal year and fiscal year in progress. The general summary

3-7  of the proposed budget must be supported by explanatory schedules or

3-8  statements, classifying the expenditures contained therein by organizational

3-9  units, objects and funds, and the income by organizational units, sources

3-10  and funds.

3-11    [(b)] 2.  Part 2 must embrace the detailed budgetary estimates both of

3-12  expenditures and revenues as provided in NRS 353.150 to 353.246,

3-13  inclusive. The information must be presented in a manner which sets forth

3-14  separately the cost of continuing each program at the same level of service

3-15  as the current year and the cost, by budgetary issue, of any

3-16  recommendations to enhance or reduce that level of service. Revenues

3-17  must be summarized by type, and expenditures must be summarized by

3-18  category of expense. Part 2 must include a mission statement and

3-19  measurement indicators for each program. It must also include statements

3-20  of the bonded indebtedness of the state government, showing the

3-21  requirements for redemption of debt, the debt authorized and unissued, and

3-22  the condition of the sinking funds, and any statements relative to the

3-23  financial plan which the governor may deem desirable, or which may be

3-24  required by the legislature.

3-25    [(c)] 3.  Part 3 must include a recommendation to the legislature for the

3-26  drafting of a general appropriation bill authorizing, by departments,

3-27  institutions and agencies, and by funds, all expenditures of the executive

3-28  department of the state government for the next 2 fiscal years, and may

3-29  include recommendations to the legislature for the drafting of such other

3-30  bills as may be required to provide the income necessary to finance the

3-31  proposed budget and to give legal sanction to the financial plan if adopted

3-32  by the legislature.

3-33    [2.  Except as otherwise provided in NRS 353.211, as soon as each part

3-34  of the proposed budget is prepared, a copy of the part must be transmitted

3-35  to the fiscal analysis division of the legislative counsel bureau for

3-36  confidential examination and retention.

3-37    3.  Except for the information provided to the fiscal analysis division of

3-38  the legislative counsel bureau pursuant to NRS 353.211, parts 1 and 2 of

3-39  the proposed budget are confidential until the governor transmits the

3-40  proposed budget to the legislature pursuant to NRS 353.230, regardless of

3-41  whether those parts are in the possession of the executive or legislative

3-42  department of the state government. Part 3 of the proposed budget is

3-43  confidential until the bills which result from the proposed budget are

3-44  introduced in the legislature.]

3-45    Sec. 7.  NRS 353.211 is hereby amended to read as follows:

3-46    353.211  1.  On or before October 15 of each even-numbered year, the

3-47  chief shall provide to the fiscal analysis division of the legislative counsel

3-48  bureau:

4-1    (a) Computerized budget files containing the actual data regarding

4-2  revenues and expenditures for the previous year;

4-3    (b) The work programs for the current year; and

4-4    (c) Each agency’s requested budget for the next 2 fiscal years.

4-5    2.  On or before December [31] 15 of each even-numbered year, the

4-6  chief shall provide to the fiscal analysis division in printed form, in a form

4-7  available for access by computer and in any other form or on any other

4-8  medium requested by the fiscal analysis division:

4-9    (a) Each agency’s adjusted base budget by budgetary account for the

4-10  next 2 fiscal years[;] and any readily available, related information

4-11  requested by the fiscal analysis division; and

4-12    (b) An estimated range of the costs for:

4-13      (1) Continuing the operation of state government; and

4-14      (2) Providing elementary, secondary and higher public
education,

4-15  at the current level of service.

4-16    3.  The chief shall:

4-17    (a) Consult with the fiscal analysis division when preparing the

4-18  proposed budget of the executive department of the state government to

4-19  establish identical organizational coding schemes and coding schemes

4-20  for the computer to be used in the proposed budget of the executive

4-21  department of the state government and the legislative proposal for the

4-22  budget prepared pursuant to section 2 of this act.

4-23    (b) As soon as each part of the proposed budget of the executive

4-24  department of the state government is prepared and not later than the

4-25  date the part is sent to the printer, provide that part to the fiscal analysis

4-26  division.

4-27    4.  The chief shall provide each part of the proposed budget and the

4-28  final version of the proposed budget pursuant to subsection 3 in printed

4-29  form, in a form available for access by computer, and in any other form

4-30  or on any other medium requested by the fiscal analysis division. The

4-31  final version of the proposed budget must be available in a form that

4-32  allows automated comparison with the legislative proposal for the budget

4-33  prepared pursuant to section 2 of this act.

4-34    5.  The fiscal analysis division shall not disclose the contents of part 3

4-35  of the final version of the proposed budget described in subsection 3 of

4-36  NRS 353.205 until the bills that result from the final version of the

4-37  proposed budget are introduced in the legislature.

4-38    6.  The information provided to the fiscal analysis division pursuant to

4-39  subsections 1 and 2 is open for public inspection.

4-40    Sec. 8.  NRS 218.6824 is hereby repealed.

 

4-41  TEXT OF REPEALED SECTION

 

4-42    218.6824  Legislative commission: Budget subcommittee.

5-1    1.  There is hereby created a budget subcommittee of the legislative

5-2  commission.

5-3    2.  The chairman of the legislative commission shall appoint to the

5-4   subcommittee the persons designated by the speaker designate of the

5-5   assembly to be members of the assembly standing committee on ways and

5-6   means and the persons designated by the majority leader designate of the

5-7   senate to be members of the senate standing committee on finance for the

5-8   next ensuing session of the legislature.

5-9    3.  The budget subcommittee shall conclude its activities before the

5-10   next regular legislative session is convened.

5-11    4.  The budget subcommittee shall consider fiscal issues that may

5-12   require consideration by the legislature at the next ensuing session.

 

5-13  H