MINUTES OF THE meeting
of the
ASSEMBLY Committee on Ways and Means
Seventy-Second Session
May 14, 2003
The Committee on Ways and Meanswas called to order at 5:02 p.m., on Wednesday, May 14, 2003. Chairman Morse Arberry Jr. presided in Room 3137 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. Exhibit B is the Guest List. All exhibits are available and on file at the Research Library of the Legislative Counsel Bureau.
COMMITTEE MEMBERS PRESENT:
Mr. Morse Arberry Jr., Chairman
Ms. Chris Giunchigliani, Vice Chairwoman
Mr. Walter Andonov
Mrs. Vonne Chowning
Mrs. Dawn Gibbons
Mr. David Goldwater
Mr. Josh Griffin
Mr. Lynn Hettrick
Ms. Sheila Leslie
Mr. John Marvel
Ms. Kathy McClain
Mr. David Parks
Mr. Richard Perkins
COMMITTEE MEMBERS ABSENT:
Mr. Bob Beers (excused)
STAFF MEMBERS PRESENT:
Mark Stevens, Assembly Fiscal Analyst
Mark Krmpotic, Senior Program Analyst
Larry Peri, Senior Program Analyst
Bob Atkinson, Program Analyst
Mindy Braun, Education Program Analyst
Jeffrey Ferguson, Program Analyst
Joyce Garrett, Program Analyst
Tracy Raxter, Program Analyst
Susan Cherpeski, Committee Secretary
Carol Thomsen, Committee Secretary
Chairman Arberry called the meeting to order and indicated that the Committee would be hearing closing reports.
Assemblywoman Chowning, Chairwoman of the Joint Subcommittee on General Government, read the following closing report:
THE JOINT SUBCOMMITTEE ON GENERAL GOVERNMENT HAS REVIEWED THE BUDGETS FOR THE BUSINESS AND INDUSTRY SECTION OF THE EXECUTIVE BUDGET AND IS RECOMMENDING THE FOLLOWING CLOSING ACTIONS.
THE GENERAL GOVERNMENT SUBCOMMITTEE’S RECOMMENDATIONS FOR THE DEPARTMENT OF BUSINESS & INDUSTRY RESULT IN GENERAL FUND DECREASES OF $45,480 IN FY 2004 AND $23,952 IN FY 2005, COMPARED TO THE GOVERNOR'S RECOMMENDATION.
BA 101-4681 BUSINESS AND INDUSTRY ADMINISTRATION (101‑4681) B&I - PG 1
THE SUBCOMMITTEE APPROVED A NEW INFORMATION TECHNOLOGY POSITION WITHIN THE DEPARTMENT OF BUSINESS & INDUSTRY DIRECTOR’S OFFICE TO DEVELOP AND IMPLEMENT THE REAL ESTATE DIVISION’S LICENSING SYSTEM AND TO PROVIDE SUPPORT TO OTHER AGENCIES WITHIN THE DEPARTMENT. A PORTION OF THE FUNDING FOR THE POSITION IS TO BE TRANSFERRED TO THE DIRECTOR’S OFFICE (B/A 4681) FROM THE INFORMATION TECHNOLOGY PROJECTS BUDGET (B/A 1325, E-300). THE SUBCOMMITTEE APPROVED FUNDING OF $12,568 TO REPLACE A FILE SERVER IN FY 2004, WITH FUNDING OF $12,398 BUDGETED IN THE BASE FOR SERVER REPAIR COSTS. THE SUBCOMMITTEE APPROVED THE GOVERNOR’S RECOMMENDATION TO INCREASE IN-STATE TRAVEL OVER THE 2003‑05 BIENNIUM, PRIMARILY TO FUND TRAVEL REQUIRED DURING THE 2005 LEGISLATIVE SESSION. AN INCREASE IN OUT-OF-STATE TRAVEL WAS ALSO APPROVED TO ALLOW THE DIRECTOR TO ATTEND A CONFERENCE OF STATE BANK SUPERVISORS IN THE SAN FRANCISCO AREA IN FY 2004, AS WELL AS A SIMILAR CONFERENCE IN FY 2005 RELATED TO THE MISSION OF THE HOUSING DIVISION.
REAL ESTATE ADMINISTRATION (101-3823) B&I – PG 9
THE SUBCOMMITTEE INCREASED THE GOVERNOR’S RECOMMENDED LICENSE AND FEE REVENUE BY $29,160 TO $203,720 OVER THE 2003-05 BIENNIUM, CONTINGENT ON THE PASSAGE OF S.B. 428. THE SUBCOMMITTEE APPROVED THE GOVERNOR’S RECOMMENDED ADDITION OF 2.5 FTE POSITIONS: ONE PROGRAM OFFICER II, ONE ACCOUNT ASSISTANT III, AND A HALF-TIME ADMINISTRATIVE ASSISTANT II. THE SUBCOMMITTEE ALSO APPROVED THE ELIMINATION OF A VACANT AUDITOR II POSITION.
REAL ESTATE EDUCATION AND RESEARCH (216-3826) B&I – PG 17
IN CLOSING THIS BUDGET, THE SUBCOMMITTEE INCREASED THE GOVERNOR’S RECOMMENDED TRANSFER TO SUPPORT THE REAL ESTATE DIVISION’S NEW LICENSING SYSTEM (B/A 1325, E-300) BY $49,337 IN FY 2003-04 AND $13,416 IN FY 2004-05. THE SUBCOMMITTEE ALSO APPROVED $50,000 IN ADDITIONAL FUNDING IN EACH YEAR OF THE 2003-05 BIENNIUM FOR REAL ESTATE LICENSEE EDUCATION PROGRAMS.
COMMON-INTEREST COMMUNITIES (101-3820) B&I – PG 26
IN CLOSING THIS BUDGET, THE SUBCOMMITTEE RECOMMENDED ISSUING A LETTER OF INTENT TO THE AGENCY TO SUBMIT A REPORT TO THE INTERIM FINANCE COMMITTEE ON THE FUTURE RESERVE BALANCE IF S.B. 100 IS APPROVED. S.B. 100 CREATES A BOARD TO HEAR DISPUTES BETWEEN OWNERS AND BOARD MEMBERS AND PROVIDES FUNDING FOR SUPPORTING COSTS, INCLUDING SIX SUPPORT POSITIONS. IF S.B. 100 IS NOT APPROVED, THE REAL ESTATE DIVISION IS TO SUBMIT A PROPOSAL TO IFC TO ADJUST FEES IMPOSED ON COMMON-INTEREST COMMUNITIES. S.B. 100 IS CURRENTLY BEING CONSIDERED BY THE ASSEMBLY COMMITTEE ON JUDICIARY. THE SUBCOMMITTEE CONCURRED WITH THE GOVERNOR’S RECOMMENDATION TO APPROVE FOUR NEW POSITIONS -- A PROGRAM OFFICER III TO ATTEND TO ADMINISTRATIVE AND FISCAL ASPECTS OF THE PROGRAM; TWO PROGRAM OFFICER II POSITIONS TO WORK AS FIELD OFFICERS THROUGHOUT THE STATE IN THE AREAS OF MEDIATION, INFORMATION, AND EDUCATION; AND AN ADMINISTRATIVE ASSISTANT I POSITION TO PROVIDE STAFF SUPPORT; HOWEVER, THE SUBCOMMITTEE RECOMMENDED THE ELIMINATION OF ONE PROGRAM OFFICER II POSITION IF S.B. 100 IS APPROVED. THE SUBCOMMITTEE ALSO INCREASED SUPPORT FOR THE REAL ESTATE DIVISION’S NEW LICENSING SYSTEM (B/A 1325, E-300) BY $73,675 IN FY 2003-04 AND $30,832 IN FY 2004-05.
INSURANCE REGULATION (BA 101-3813) B&I – 34
ASSEMBLY BILL 1 OF THE 18TH SPECIAL SESSION ELIMINATES THE MEDICAL DENTAL SCREENING PANEL WITHIN THE INSURANCE DIVISION AS OF JUNE 30, 2003. AS A RESULT, THE SUBCOMMITTEE APPROVED THE GOVERNOR’S RECOMMENDATION TO ELIMINATE THE TWO POSITIONS THAT SUPPORT THE MEDICAL DENTAL SCREENING PANEL, PROVIDING GENERAL FUND SAVINGS OF $228,477 DURING THE BIENNIUM. THE SUBCOMMITTEE ALSO APPROVED THE TRANSFER OF THE PRODUCER LICENSING SUPERVISOR POSITION FROM THE INSURANCE EDUCATION & RESEARCH ACCOUNT TO THE INSURANCE REGULATION ACCOUNT. HOWEVER, INSTEAD OF FUNDING THE POSITION WITH 100 PERCENT GENERAL FUNDS AS RECOMMENDED IN THE EXECUTIVE BUDGET, THE SUBCOMMITTEE RECOMMENDS FUNDING 20 PERCENT OF THE POSITION’S COSTS WITH FUNDS TRANSFERRED FROM THE INSURANCE EDUCATION & RESEARCH ACCOUNT. THIS ADJUSTMENT REDUCES THE GENERAL FUND REQUIREMENT IN THIS ACCOUNT BY $13,792 IN FY 2003-04 AND $13,821 IN FY 2004-05. THE SUBCOMMITTEE BASED THIS RECOMMENDATION ON THE FACT THAT THE TRANSFERRED POSITION WOULD SPEND 20 PERCENT OF ITS TIME ON EDUCATION AND RESEARCH MATTERS. THE SUBCOMMITTEE ALSO APPROVED THE RECOMMENDATION TO ELIMINATE A VACANT ADMINISTRATIVE ASSISTANT II POSITION, WHICH WILL REDUCE THE DIVISION’S GENERAL FUND APPROPRIATION BY $74,622 DURING THE BIENNIUM.
PERSONNEL IN THE INSURANCE REGULATION ACCOUNT SUPERVISE OUTSIDE EXAMINERS THAT PERFORM INSURANCE EXAMINATIONS FUNDED THROUGH THE INSURANCE EXAMINERS ACCOUNT. THE SUBCOMMITTEE APPROVED THE RECOMMENDATION TO PASS THESE SUPERVISORY COSTS ON TO THE INSURER BY TRANSFERRING EXAMINATION FEES TOTALING $202,504 FOR THE BIENNIUM FROM THE INSURANCE EXAMINERS ACCOUNT TO THE INSURANCE REGULATION ACCOUNT. THIS RECOMMENDATION REDUCES THE GENERAL FUND REQUIREMENT IN THE INSURANCE REGULATION ACCOUNT BY $202,504.
INSURANCE EXAMINERS (BA 3817) B&I – 41
IN ADDITION TO THE EXAMINATION FEE TRANSFER PREVIOUSLY MENTIONED, THE SUBCOMMITTEE APPROVED THE RECOMMENDATION TO REDUCE AUTHORITY IN THE SPECIAL LIQUIDATION FUND BY $25,000 IN EACH YEAR OF THE BIENNIUM, THEREBY LOWERING THE AUTHORITY IN THE FUND TO $100,000 AND ALLOWING THE DIVISION TO INCREASE RESERVES BY $25,000 IN EACH YEAR OF THE BIENNIUM. THE SUBCOMMITTEE RECOMMENDS THIS ACTION IN ORDER TO ASSIST THE DIVISION IN MAINTAINING AN ADEQUATE RESERVE LEVEL IN THE ACCOUNT.
INSURANCE EDUCATION & RESEARCH (BA 3824) B&I – 49
THE SUBCOMMITTEE APPROVED THE GOVERNOR’S RECOMMENDATION TO CONVERT THE DIVISION’S CONTRACT RESEARCH ACTUARY, WHICH WAS AUTHORIZED BY THE IFC IN JUNE 2002, TO A PERMANENT UNCLASSIFIED LEAD ACTUARY POSITION. HOWEVER, THE SUBCOMMITTEE RECOMMENDS THE POSITION SUNSET AT THE END OF THE 2003-05 BIENNIUM, THEREBY REQUIRING THE INSURANCE DIVISION TO RE-JUSTIFY THE POSITION DURING THE NEXT BUDGET CYCLE IF IT WISHES IT TO CONTINUE INTO THE 2005‑07 BIENNIUM. THE SUBCOMMITTEE BASED ITS DECISION ON THE DIVISION’S NEED FOR PROFESSIONAL ASSISTANCE TO ADDRESS THE NUMEROUS ISSUES CURRENTLY FACING NEVADA’S INSURANCE INDUSTRY.
MANUFACTURED HOUSING (101-3814) – PG 73
BASED ON STAFF’S REVIEW OF CURRENT FISCAL YEAR REVENUE COLLECTIONS, IT APPEARS THAT REVENUES WILL NOT REACH BUDGETED LEVELS IN FY 2002-03. THE GOVERNOR’S RECOMMENDED REVENUE OF $1.1 MILLION IN EACH YEAR OF THE 2003-05 BIENNIUM IS BASED ON FY 2001-02 ACTUAL REVENUE, AND IT APPEARS TO BE OVERSTATED BY APPROXIMATELY $214,000 IN EACH YEAR OF THE UPCOMING BIENNIUM. THE SUBCOMMITTEE RECOMMENDED ISSUING A LETTER OF INTENT TO THE AGENCY TO REPORT REVENUE AND EXPENDITURE ACTIVITY TO IFC ON A QUARTERLY BASIS OVER THE 2003-05 BIENNIUM, AND TO INCLUDE ANY PLANNED ACTION TO ACCOMMODATE ANY REALIZED OR PROJECTED REDUCTION IN REVENUES. THE AGENCY HAS PROPOSED TO THE GOVERNOR INCREASING THE FEES THAT ARE ESTABLISHED IN THE NEVADA ADMINISTRATIVE CODE.
HOUSING DIVISION (503-3841) – PG 89
THE SUBCOMMITTEE CONCURS WITH THE GOVERNOR’S RECOMMENDATION TO INCREASE TAX CREDIT AUDIT FEE REVENUE TO PERFORM AUDITS, AS REQUIRED BY IRS SECTION 42, TO ENSURE PROJECTS RECEIVING TAX CREDITS ARE IN COMPLIANCE WITH FEDERAL TAX CODE. THE SUBCOMMITTEE APPROVED THE GOVERNOR’S RECOMMENDATION TO INCREASE TAX CREDIT PROGRAM EXPENDITURES. TAX CREDITS AWARDED TO THE HOUSING DIVISION BY THE U.S. TREASURY DEPARTMENT WILL INCREASE FROM $2.5 MILLION TO $3.5 MILLION OVER THE 2003-05 BIENNIUM. INCREASED ACTIVITY WOULD BE FUNDED THROUGH ADDITIONAL TAX CREDIT APPLICATION FEES. THE SUBCOMMITTEE APPROVED THE GOVERNOR’S RECOMMENDATION TO FUND THE COST OF ISSUING $15,000,000 IN BOND DEBT FINANCING FOR HOUSING PROJECTS THAT ADDRESS SPECIAL NEEDS PROJECTS (AFFORDABLE HOUSING FOR SENIORS, DISABLED, HIV, AND ALZHEIMER'S). FURTHER, THE SUBCOMMITTEE CONCURS WITH THE GOVERNOR’S RECOMMENDATION TO FUND A REPLACEMENT TELEPHONE SYSTEM, TWO LAPTOP COMPUTERS AND ONE FILE SERVER OVER THE 2003‑05 BIENNIUM.
LOW-INCOME HOUSING TRUST FUND (101-3838) – PG 96
THE SUBCOMMITTEE APPROVED THE GOVERNOR’S RECOMMENDATION TO FUND A SPECIAL NEEDS HOUSING PROJECT. THE PROJECT IDENTIFIED FOR FUNDING OVER THE 2003-05 BIENNIUM IS A LOW-INCOME HOUSING PROJECT IN SOUTHERN NEVADA. PROJECT FUNDING WOULD COME FROM THE PROGRAM’S DISCRETIONARY PORTION OF THE ANNUAL REAL PROPERTY TRANSFER TAX.
THE SUBCOMMITTEE APPROVED THE GOVERNOR’S RECOMMENDATION TO MAKE THE NECESSARY ADJUSTMENTS FOR THE BUDGET TO BECOME SELF‑FUNDED. DECISION UNIT E‑125 INCLUDES A GENERAL FUND APPROPRIATION OF $357,976 IN FY 2003-04, WHICH WOULD BE TREATED AS A LOAN TO THE DIVISION TO FACILITATE THE TRANSITION AND WOULD BE REPAID IN FULL BY THE END OF FY 2003-04. FY 2004-05 INCLUDES A $1,000 GENERAL FUND APPROPRIATION, WHICH WOULD PROVIDE THE DIVISION WITH ACCESS TO THE INTERIM FINANCE COMMITTEE AND THE GENERAL FUND TO SUPPORT OPERATIONS IF A FUNDING DEFICIT SHOULD OCCUR. THE $1,000 GENERAL FUND APPROPRIATION WOULD CONTINUE IN EACH FISCAL YEAR GOING FORWARD AND WOULD BE TREATED AS A LOAN TO THE DIVISION AS WELL, BEING REPAID IN FULL BY THE END OF EACH FISCAL YEAR. THE SUBCOMMITTEE ALSO APPROVED THE ELIMINATION OF A VACANT FINANCIAL EXAMINER II POSITION.
CONSUMER AFFAIRS (101-3811) – B&I - PG 115
THE SUBCOMMITTEE WITHHELD APPROVING $27,000 FOR A REPLACEMENT TELEPHONE SYSTEM, IN ORDER TO REVIEW ADDITIONAL PRICE QUOTES. STAFF HAS WORKED WITH DoIT TO OBTAIN ADDITIONAL QUOTES AS RECOMMENDED, AND IT APPEARS THAT THE $27,000 ESTIMATE WILL BE SUFFICIENT BASED ON PRICE QUOTES FROM SBC NEVADA BELL, SPRINT, AND HICKMAN TELECOMM. THE COMMITTEE NEEDS TO DETERMINE WHETHER TO APPROVE $27,000 FOR A NEW TELEPHONE SYSTEM. THE SUBCOMMITTEE REDUCED DATABASE MAINTENANCE FUNDING BY $9,000 IN EACH FISCAL YEAR. AFTER THIS REDUCTION, $6,249 REMAINS IN EACH YEAR FOR POTENTIAL DATABASE SYSTEM MAINTENANCE COSTS. THE SUBCOMMITTEE REDUCED FUNDING FOR TWO HIGH-END COLOR NETWORK PRINTERS BY $1,500 IN EACH YEAR OF THE UPCOMING BIENNIUM AND PROVIDED FUNDING FOR TWO BLACK AND WHITE NETWORK PRINTERS. THE SUBCOMMITTEE ALSO CONCURRED WITH THE GOVERNOR’S RECOMMENDATION TO ELIMINATE TWO VACANT ADMINISTRATIVE ASSISTANT II POSITIONS (VACANT SINCE JULY 2001 AND NOVEMBER 2002).
DIVISION OF INDUSTRIAL RELATIONS (210-4680) B&I – PG 119
THE SUBCOMMITTEE CONCURS WITH THE GOVERNOR’S RECOMMENDATION TO ELIMINATE TWO VACANT FTE POSITIONS, A QUALITY ASSURANCE SPECIALIST IV AND A HEARINGS OFFICER, OVER THE 2003-05 BIENNIUM. THE DIVISION DETERMINED THE POSITIONS WERE NO LONGER ESSENTIAL TO OPERATIONS. THE SUBCOMMITTEE ALSO CONCURS WITH THE GOVERNOR’S RECOMMENDATION TO TRANSFER THREE POSITIONS (TWO COMPUTER NETWORK TECHNICIAN I’S AND ONE ADMINISTRATIVE ASSISTANT I) INTO THIS BUDGET FROM THE OCCUPATIONAL SAFETY AND HEALTH ENFORCEMENT SECTION (B/A 4682, B&I-125) AS THE RESULT OF A REORGANIZATION. THIS TRANSFER OF POSITIONS HAS NO FISCAL IMPACT ON THE DIVISION AS A WHOLE. IN ADDITION, THE SUBCOMMITTEE APPROVED THE GOVERNOR’S RECOMMENDATION TO REPLACE THE EXISTING TELEPHONE SYSTEM IN THE RENO OFFICE AND TO REPLACE ONE PRINT SERVER AND FIVE FAX MACHINES.
NEVADA ATTORNEY FOR INJURED WORKERS (101-1013) B&I - PG 137
IN CLOSING THIS BUDGET, THE SUBCOMMITTEE CONCURRED WITH THE GOVERNOR’S RECOMMENDATION TO FUND THE RELOCATION OF THE LAS VEGAS OFFICE FROM THE GRANT SAWYER OFFICE BUILDING TO NON-STATE-OWNED SPACE IN THE RANCHO SAHARA CORPORATION CENTER. THE AGENCY’S REQUEST TO RELOCATE IS BASED ON THE MOVE OF THE HEARINGS AND APPEALS DIVISION FROM THE SAWYER BUILDING TO THE ABOVE-MENTIONED LOCATION. THE SUBCOMMITTEE REDUCED FUNDING FOR NEW OFFICE FURNISHINGS BY $16,356 TO REFLECT BUDGET GUIDELINES FOR NEW STAFF. APPROVED FUNDING INCLUDES A NEW TELEPHONE SYSTEM THAT WILL BE SHARED WITH HEARING AND APPEALS. THE SUBCOMMITTEE DID NOT APPROVE THE GOVERNOR’S RECOMMENDATION OF $6,452 IN ADDITIONAL IN-STATE TRAVEL FUNDING IN EACH YEAR OF THE 2003-05 BIENNIUM. THE SUBCOMMITTEE APPROVED FUNDING FOR A NEW CASE MANAGEMENT SYSTEM, WITH A $28,998 REDUCTION TO ELIMINATE FUNDING FOR CONTINGENCY RESERVE AND QUALITY ASSURANCE. THE SUBCOMMITTEE APPROVED FUNDING FOR THREE LAPTOP COMPUTERS AND ADDED FUNDING TO PURCHASE THREE DOCKING STATIONS TO ELIMINATE THE DUPLICATION OF DESKTOP COMPUTERS. THE SUBCOMMITTEE DID NOT APPROVE FUNDING FOR SOFTWARE UPGRADES, SINCE FUNDING FOR THE SAME UPGRADES WAS APPROVED BY THE 2001 LEGISLATURE. THE SUBCOMMITTEE APPROVED A $49,816 REDUCTION TO NEW EQUIPMENT TO ELIMINATE DUPLICATION OF COMPUTER EQUIPMENT EXPENSE. A NEW TELEPHONE SYSTEM FOR THE CARSON CITY OFFICE WAS ALSO APPROVED AS RECOMMENDED BY THE GOVERNOR. THE SUBCOMMITTEE CONCURRED WITH THE GOVERNOR’S RECOMMENDATION FOR THREE NEW POSITIONS TO ADDRESS ATTORNEY CASELOAD AND STAFF WORKLOAD IN THE LAS VEGAS OFFICE.
TAXICAB AUTHORITY (245-4130) B&I – PG 147
CONTINGENT UPON THE APPROVAL OF S.B. 288, THE SUBCOMMITTEE APPROVED THE GOVERNOR’S RECOMMENDATION TO INCREASE TAXICAB TRIP FEE AND PERMIT FEE REVENUE, RESTORE 11 POSITIONS, AND ADD THREE NEW POSITIONS AND SUPPORT COSTS (TWO SECURITY OFFICERS TO ESTABLISH ROUND-THE-CLOCK DISPATCH AND ONE MANAGEMENT ANALYST II TO INCREASE AND EXPAND AUDIT FUNCTIONS TO CONDUCT ADDITIONAL SCHEDULED AUDITS AND TO ADD SURPRISE AUDITS). ADDITIONALLY, THE SUBCOMMITTEE APPROVED THE GOVERNOR’S RECOMMENDATION TO FUND THE SENIOR RIDE PROGRAM AND TO REPLACE SIX PATROL VEHICLES IN ACCORDANCE WITH THE RECOMMENDED MILEAGE REPLACEMENT SCHEDULE. BOTH RECOMMENDATIONS ARE CONTINGENT UPON THE APPROVAL OF S.B. 288, WHICH PASSED OUT OF THE ASSEMBLY COMMITTEE ON TRANSPORTATION ON MAY 6.
BA 3922 TRANSPORTATION SERVICES AUTHORITY (226-3922) B&I – PG 152
S.B. 192 INCREASES THE AGENCY’S REGULATORY RESPONSIBILITY AND INCREASES FEES. CONTINGENT UPON THE APPROVAL OF S.B. 192, THE SUBCOMMITTEE APPROVED THE GOVERNOR’S RECOMMENDATION, AS AMENDED BY THE AGENCY, TO FUND 7.6 NEW FTE AND RELATED COSTS TO SUPPORT THE ADDITIONAL REGULATORY FUNCTIONS PROPOSED IN S.B. 192. TO ALIGN EXPENDITURES WITH REVISED REVENUE PROJECTIONS IN S.B. 192, EXPENDITURES WERE REDUCED BY ELIMINATING THE PURCHASE OF TWO VEHICLES, DOWNGRADING PROPOSED POSITIONS, ELIMINATING ONE NEW POSITION, AND ELIMINATING VARIOUS ENFORCEMENT EQUIPMENT. S.B. 192, AS AMENDED, IS CURRENTLY BEING CONSIDERED BY THE ASSEMBLY COMMITTEE ON TRANSPORTATION.
BA 3922 TRANSPORTATION SERVICES AUTHORITY ADMINISTRATIVE FINES (226-3923) B&I – PG 158
CONTINGENT UPON THE APPROVAL OF S.B. 192, THE SUBCOMMITTEE APPROVED THE GOVERNOR’S RECOMMENDATION, AS AMENDED BY THE AGENCY, TO FUND THE FOLLOWING: 1) THE PURCHASE AND IMPLEMENTATION OF LICENSING SYSTEM FOR LIMOUSINE AND TAXICAB DRIVERS, AS RECOMMENDED BY DoIT; 2) LEASE OF ADDITIONAL OFFICE SPACE TO SUPPORT THE PROPOSED LICENSING FUNCTION; 3) THE PURCHASE OF NEW ENFORCEMENT EQUIPMENT; AND 4) THE PURCHASE OF TWO NEW ENFORCEMENT VEHICLES.
THE FOLLOWING BUDGETS WERE CLOSED BY THE SUBCOMMITTEE AS RECOMMENDED BY THE GOVERNOR, WITH ONLY MINOR AND TECHNICAL ADJUSTMENTS:
· INDUSTRIAL DEVELOPMENT REVENUE BOND (101-4683) – PG 6
· B&I SELF INSURED – WORKERS COMPENSATION (BA 101 – 4684) B&I – 64
· DAIRY COMMISSION (233-4470) – PG 69
· MOBILE HOME LOT RENT SUBSIDY (630 -3842) – PG 77
· WEATHERIZATION (101-4865) – PG 100
· OCCUPATIONAL SAFETY AND HEALTH ENFORCEMENT (210-4682) B&I – PG 125
· SAFETY CONSULTATION AND TRAINING (210-4685) B&I – PG 129
· MINE SAFETY AND TRAINING (210-4686) B&I – PG 133
· EMPLOYEE MANAGEMENT RELATIONS BOARD (101-1374) – PG 144
· ATHLETIC COMMISSION (101-3952) – PG 162
· LABOR COMMISSIONER (101-3900) B&I – PG 165
Mrs. Chowning and Mr. Parks disclosed that they were licensed real estate agents.
Mark Stevens, Assembly Fiscal Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, said the Committee needed to make a decision regarding the telephone system in Consumer Affairs. He said the quotes were approximately $5,000 more than was built into the budget.
Chairman Arberry asked if that included the lowest bid. Mr. Stevens explained that the Fiscal Analysis Division had requested informal bids on the cost of the telephone system, and the initial information indicated more was needed than was currently included in the budget. The Committee would need to decide whether to include additional funding to pay for the replacement of the telephone system.
ASSEMBLYMAN GRIFFIN SECONDED THE MOTION.
MOTION CARRIED. (Mr. Andonov and Mr. Beers were not present for the vote.)
BUDGET CLOSED.
********
Mrs. Chowning read the following closing report:
DEPARTMENT OF TAXATION (101-2361) PAGE TAX-1
THE JOINT SUBCOMMITTEE ON GENERAL GOVERNMENT HAS COMPLETED THE REVIEW OF THE DEPARTMENT OF TAXATION’S BUDGET FOR THE 2003-05 BIENNIUM RECOMMENDING APPROVAL WITH CERTAIN ADJUSTMENTS WHICH HAVE RESULTED IN ADDITIONAL GENERAL FUND COST OF $119,954 IN FY 2004 AND $72,850 IN FY 2005.
IN APPROVING THE BUDGET FOR THE DEPARTMENT, THE SUBCOMMITTEE CONSIDERED THE FOLLOWING ISSUES:
1. CONTINUED PRIVATIZATION OF LOCKBOX SERVICES.
2. FUNDING REQUIRED FOR THE IMPLEMENTATION OF S.B. 314.
3. IMPLEMENTATION OF NEW/INCREASED TAXES AS RECOMMENDED BY THE GOVERNOR AND APPROVED BY THE 2003 LEGISLATURE.
THE SUBCOMMITTEE CONCURRED WITH BUDGET AMENDMENT #129 AS SUBMITTED BY THE BUDGET DIVISION, WHICH WILL CONTINUE THE PRIVATIZATION OF LOCKBOX SERVICES FOR THE DEPARTMENT. APPROVAL OF THIS AMENDMENT RESULTED IN ADDITIONAL GENERAL FUND SUPPORT OF $106,995 IN FY 2004 AND $92,630 IN FY 2005; TOTAL COST FOR THE SERVICE IS $414,000 PER YEAR. THE EXECUTIVE BUDGET ENVISIONED THE DEPARTMENT WOULD ASSUME THE LOCKBOX FUNCTION “IN-HOUSE” EFFECTIVE JULY 1, 2003 AND INCLUDED FOUR NEW POSITIONS, SEASONAL SALARY COSTS AND RELATED OPERATING FUNDS FOR THE ASSUMPTION OF THIS FUNCTION. NOT INCLUDED IN THE EXECUTIVE BUDGET WAS APPROXIMATELY $370,000 THAT WOULD HAVE BEEN REQUIRED FOR THE DEPARTMENT TO ACQUIRE THE NECESSARY EQUIPMENT AND TO HIRE STAFF DURING FY 2003 TO ASSUME THE FUNCTION EFFECTIVE JULY 1, 2003. SIX FIRMS RESPONDED TO RFP’S WITH BANK ONE BEING SELECTED AS THE VENDOR TO PROVIDE THE LOCKBOX SERVICE. THE CONTRACT WITH BANK ONE IS SCHEDULED FOR APPROVAL BY THE BOARD OF EXAMINERS AT THEIR MEETING ON MAY 13, 2003. IN APPROVING THIS FUNDING, THE SUBCOMMITTEE REQUESTED THE DEPARTMENT DEVELOP PERFORMANCE INDICATORS FOR REVIEW BY THE 2005 LEGISLATURE TO DOCUMENT THE VOLUME OF DOLLARS COLLECTED THROUGH THE LOCKBOX PROCESS. ADDITIONALLY, THE SUBCOMMITTEE REQUESTED THE DEPARTMENT TO EXPLORE THE USE OF ELECTRONIC FILING/COLLECTION OF TAXES IN THE DEVELOPMENT OF NEW TECHNOLOGY FOR THE COLLECTION OF NEW/INCREASED TAXES AS RECOMMENDED BY THE GOVERNOR AND APPROVED BY THE 2003 LEGISLATURE.
THE SUBCOMMITTEE ALSO APPROVED $25,000 TO PERMIT CONTRACTING WITH THE UCCSN (STATE DEMOGRAPHER) TO COLLECT DATA REGARDING ELECTRONIC COMMERCE THAT IS CONDUCTED IN NEVADA AND TO REPORT THE RESULTS OF THAT STUDY TO THE 73RD SESSION OF THE NEVADA LEGISLATURE. THE REPORT IS INTENDED TO PROVIDE INFORMATION TO THE NEVADA LEGISLATURE THAT WILL DISCLOSE THE FINANCIAL IMPACT MORE STRINGENT REQUIREMENTS FOR THE COLLECTION OF THE SALES AND USE TAX ON ELECTRONIC COMMERCE WOULD HAVE IN RETAILERS IN NEVADA (S.B. 314).
ALTHOUGH NOT INCLUDED IN THE DEPARTMENT’S BUDGET, THE SUBCOMMITTEE ACKNOWLEDGED $12.5 MILLION IN FY 2004 AND $20 MILLION IN FY 2005 THAT IS RECOMMENDED BY THE GOVERNOR FOR THE IMPLEMENTATION OF THE GOVERNOR’S RECOMMENDED TAX PLAN. THE FUNDING THAT IS RECOMMENDED WILL BE CONSIDERED AS A SEPARATE ISSUE WHEN A TAX PLAN HAS BEEN DECIDED, WITH THE FUNDING TO IMPLEMENT THE PLAN INCLUDED IN THE LEGISLATION FOR THE PLAN. THE SUBCOMMITTEE URGED THE DEPARTMENT TO WORK WITH FISCAL STAFF ON DEVELOPING DEFINITIVE COSTS FOR IMPLEMENTING THE COLLECTION OF WHATEVER TAX PLAN IS ULTIMATELY APPROVED.
THE SUBCOMMITTEE CONCURRED WITH STAFF’S TECHNICAL ADJUSTMENTS FOR VACANCY SAVINGS, BUILDINGS AND GROUNDS ASSESSMENTS, COPIER AND LEASE COSTS, AND COMPUTER HARDWARE AND SOFTWARE PRICES.
Mrs. Chowning expressed her appreciation for the hard work done by staff and the Joint Subcommittee on General Government.
ASSEMBLYMAN MARVEL MOVED TO APPROVE THE BUDGET AS RECOMMENDED BY THE JOINT SUBCOMMITTEE ON GENERAL GOVERNMENT.
ASSEMBLYMAN GRIFFIN SECONDED THE MOTION.
Assemblyman Goldwater asked if there was funding in the budget for an information system. Mr. Stevens said that within The Executive Budget there was $12.5 million in the first year and $20 million in the second year available to implement whichever tax plan would be adopted, and those funds could be used for staffing as well as data processing systems. He noted that issue was not included in the closing report and would be handled separately.
Mr. Goldwater said that was a substantial amount of money and using that money to improve the current system was a waste. He opined that the Department of Taxation needed a fairly comprehensive modern system as opposed to the system the Department used currently. Mr. Stevens said that the Legislature could choose to process a bill that would provide the funding for a new system as there was money in The Executive Budget. Mr. Goldwater stated that he hoped the Department would begin planning for a new system rather than spending a large amount of money to fix the antiquated system currently in use.
Assemblywoman Giunchigliani agreed with Mr. Goldwater and said the title of the Department of Taxation should be changed to the Department of Revenue. Chairman Arberry indicated that Ms. Giunchigliani should make a separate motion if she wished to change the name. The Committee voted on the motion already on the table.
MOTION CARRIED. (Mr. Andonov, Mr. Beers, and Mr. Perkins were not present for the vote.)
BUDGET CLOSED.
********
ASSEMBLYWOMAN GIUNCHIGLIANI MOVED TO CHANGE THE NAME OF THE DEPARTMENT OF TAXATION TO THE DEPARTMENT OF REVENUE.
ASSEMBLYWOMAN LESLIE SECONDED THE MOTION.
Ms. Giunchigliani explained that the name change had been a recommendation in previous years, and she felt it was appropriate at the current time.
Mr. Goldwater objected and said there would be paperwork costs for changing stationery and other items, and he did not feel anything would actually be accomplished by changing the name.
Ms. Giunchigliani said that part of the job of the Department was the collection of revenue and then expending that revenue based on the state’s programs. She pointed out that the change would not need to be effective immediately, but she thought the Department’s name should reflect its job.
MOTION FAILED WITH MR. GOLDWATER, MR. GRIFFIN, MR. HETTRICK, AND MR. MARVEL VOTING NO. (Mr. Andonov, Mr. Beers, Mrs. Chowning, and Mrs. Gibbons were not present for the vote.)
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Assemblywoman Leslie, Chairwoman of the Joint Subcommittee on K‑12/Human Resources, read the following closing report:
THE SUBCOMMITTEE’S ACTIONS FOR THE LISTED ACCOUNTS RESULTS IN A GENERAL FUND DECREASE OF $773,032 IN FY 2004 AND $356,587 IN FY 2005 FOR A TOTAL REDUCTION OF $1,129,619 FOR THE BIENNIUM.
DHR ADMINISTRATION (101-3150) PAGE HR ADMIN-1
IN CLOSING THIS BUDGET, THE SUBCOMMITTEE REDUCED THE AMOUNT OF MAXIMUS FEDERAL RECOVERY REVENUE FROM THE RECOMMENDED AMOUNTS OF APPROXIMATELY $2.9 MILLION ANNUALLY, TO THE REVISED AMOUNTS OF $1,675,000 IN FY 2004 AND $1,725,000 IN FY 2005. THE SUBCOMMITTEE ALSO APPROVED THE EXPENDITURE OF $836,102 OF MAXIMUS FUNDS IN FY 2004 AND $944,560 IN FY 2005. THE AMOUNTS WILL ASSIST IN FUNDING THE GRANTS MANAGEMENT UNIT, SUICIDE PREVENTION PROGRAMS WITHIN THE DEPARTMENT OF HUMAN RESOURCES AND IN DOUGLAS COUNTY, A KIDS COUNT AND AN ELDER COUNT STUDY AND OLMSTEAD COMPLIANCE EFFORTS. THE SUBCOMMITTEE ALSO INDICATED THE FUNDING SHOULD BE CONSIDERED AS ONE-TIME FOR THE 2003-05 BIENNIUM AND SHOULD NOT AUTOMATICALLY BE BUILT INTO CONTINUING BASE EXPENDITURES.
THE GOVERNOR RECOMMENDED AND THE SUBCOMMITTEE APPROVED A NEW AUDITOR III POSITION AS WELL AS THE TRANSFER IN OF AN EXISTING AUDITOR II FROM THE HEALTHY NEVADA FUND ADMINISTRATION BUDGET TO ESTABLISH AN AUDIT FUNCTION IN THE DIRECTOR’S OFFICE. THE NEW POSITION WILL BE FUNDED BY A TRANSFER FROM THE GRANTS MANAGEMENT UNIT, WHILE THE EXISTING AUDITOR II WILL BE FUNDED BY A TRANSFER FROM THE HEALTHY NEVADA FUND ADMINISTRATION BUDGET.
THE SUBCOMMITTEE ALSO APPROVED THE CREATION OF A FISCAL UNIT IN THE DIRECTOR’S OFFICE. THE GOVERNOR RECOMMENDED THE TRANSFER IN OF 2.51 FTE POSITIONS TO STAFF THE UNIT. THE SUBCOMMITTEE APPROVED SEVERAL TECHNICAL ADJUSTMENTS FOR THE UNIT, RESULTING IN A DECREASE OF $14,740 IN FY 2004 AND $17,010 IN FY 2005 IN TRANSFERS FROM THE GRANTS MANAGEMENT UNIT.
THE SUBCOMMITTEE ALSO REVIEWED THE DEPARTMENT’S PROPOSAL FOR COMPLIANCE WITH THE HEALTH INSURANCE PORTABILITY AND ACCOUNTABILITY ACT (HIPAA) PASSED BY CONGRESS IN 1996, WHICH PERTAINS TO THE PRIVACY OF INDIVIDUALLY IDENTIFIABLE HEALTH INFORMATION. THE SUBCOMMITTEE APPROVED FOUR OUT OF THE EIGHT POSITIONS RECOMMENDED IN THE DEPARTMENT OF HUMAN RESOURCES BUDGETS FOR HIPAA COMPLIANCE (1-DIVISION OF MENTAL HEALTH AND DEVELOPMENTAL SERVICES, 1‑DIVISION OF CHILD AND FAMILY SERVICES, 1‑HEALTH DIVISION, 1‑DIVISION OF HEALTH CARE FINANCING AND POLICY). THE SUBCOMMITTEE ALSO APPROVED SEVERAL TECHNICAL ADJUSTMENTS TO STATE-OWNED BUILDING RENT AND COMPUTER EQUIPMENT RESULTING IN A DECREASE OF GENERAL FUND SUPPORT OF $27,755 IN FY 2004 AND $27,236 IN FY 2005, AND ALSO ADDED $5,200 IN FY 2004 FOR NEW OFFICE EQUIPMENT.
DEVELOPMENTAL DISABILITIES (101-3154) PAGE HR ADMIN-8
THE COMMITTEE MAY RECALL THAT DURING THE 2001-02 INTERIM, THE LEGISLATIVE COMMISSION ASSIGNED A SUBCOMMITTEE TO STUDY THE STATE’S PROGRAMS FOR PROVIDING SERVICES TO PERSONS WITH DISABILITIES. ONE OF THE PRIMARY RECOMMENDATIONS OF THAT SUBCOMMITTEE WAS TO TRANSFER THE DEVELOPMENTAL DISABILITIES BUDGET, AS WELL AS THE BUDGET OF THE OFFICE OF COMMUNITY BASED SERVICES (OCBS) FROM THE DEPARTMENT OF EMPLOYMENT, TRAINING AND REHABILITATION (DETR) TO THE DEPARTMENT OF HUMAN RESOURCES (DHR). THE CONCEPT OF CENTRALIZING SERVICES, INFORMATION, AND SKILL SETS WAS CENTRAL TO THE LEGISLATIVE SUBCOMMITTEE’S PRIMARY GOAL OF DEVELOPING A PRACTICAL AND VIABLE MODEL FOR A “ONE-STOP” SHOP OF SERVICES AND INFORMATION TO THE DISABLED COMMUNITY. THE PROPOSAL TO TRANSFER THESE TWO BUDGET TO DEPARTMENT OF HUMAN RESOURCES WAS ALSO RECOMMENDED IN DHR’S STRATEGIC PLAN FOR PERSONS WITH DISABILITIES, ESTABLISHED BY A.B. 513 OF THE 2001 LEGISLATURE. THE SUBCOMMITTEE APPROVED THE BUDGET FOR DEVELOPMENTAL DISABILITIES AS RECOMMENDED BY THE GOVERNOR WITH TECHNICAL ADJUSTMENTS BY STAFF.
CHILDREN’S TRUST ACCOUNT (101-3201) PAGE HR ADMIN-12
THE EXECUTIVE BUDGET RECOMMENDED AND THE SUBCOMMITTEE APPROVED THE ELIMINATION OF THIS BUDGET ACCOUNT AND THE TRANSFER OF ALL PROGRAM COSTS AND GRANT EXPENDITURES TO THE NEW GRANTS MANAGEMENT UNIT. THE SUBCOMMITTEE MADE NO ADJUSTMENTS AND THE BUDGET WAS APPROVED AS RECOMMENDED BY THE GOVERNOR. ADJUSTMENTS WERE MADE TO THIS BUDGET IN THE NEW GRANTS MANAGEMENT UNIT AND ARE DISCUSSED IN THE NARRATIVE FOR THAT ACCOUNT.
COMMUNITY BASED SERVICES (101- 3266) PAGE HR ADMIN-16
IN COMPLIANCE WITH SENATE BILL 174, FROM THE 2001 LEGISLATURE, THE SUBCOMMITTEE APPROVED THE TRANSFER OF GENERAL FUNDS FROM THE AGING SERVICES SENIOR SERVICES PROGRAM IN THE AMOUNT OF $406,980 IN FY 2003‑04 AND $742,560 IN FY 2004-05 TO FUND PERSONAL CARE ASSISTANT SERVICES THROUGH THE OCBS. SENATE BILL 174 REQUIRES STATE AGENCIES THAT PROVIDE SUPPORT SERVICES TO THE DISABLED TO IDENTIFY AND QUANTIFY THE SUPPORT SERVICES NEEDS OF THE DISABLED COMMUNITY AND, TO THE EXTENT POSSIBLE, REPRESENT THAT NEED IN THE BIENNIAL BUDGET FOR CONSIDERATION BY THE GOVERNOR AND THE LEGISLATURE. NO OTHER MAJOR ISSUES WERE IDENTIFIED FOR THIS BUDGET AND THE SUBCOMMITTEE APPROVED THE BUDGET FOR THE OFFICE OF COMMUNITY BASED SERVICES AS RECOMMENDED BY THE GOVERNOR WITH THE NOTED TRANSFER OF GENERAL FUND FROM AGING SERVICES AND TECHNICAL ADJUSTMENTS MADE BY STAFF.
HEALTHY NEVADA FUND (262-3261) PAGE HR ADMIN-22
THE EXECUTIVE BUDGET RECOMMENDED GENERAL FUND SUPPORT IN THE AMOUNT OF $5 MILLION DOLLARS TO INCREASE THE NUMBER OF PARTICIPANTS IN THE SENIOR RX PROGRAM FROM THE CURRENT 7,500 PARTICIPANTS TO 12,160 PARTICIPANTS BY THE END OF THE UPCOMING BIENNIUM. BASED ON THE PER MEMBER PER PARTICIPANT COSTS NEGOTIATED IN THE NEW SENIOR RX CONTRACT, THE SUBCOMMITTEE RECOMMENDS THAT THE GENERAL FUND SUPPORT BE REDUCED TO $2.8 MILLION DOLLARS, WHILE STILL INCREASING THE NUMBER OF PARTICIPANTS TO 12,160, AS RECOMMENDED BY THE GOVERNOR. THE SUBCOMMITTEE RECOMMENDED THAT $300,000 OF THE REMAINING GENERAL FUND SUPPORT IN FY 2003-04 BE PLACED IN RESERVE FOR POSSIBLE FUNDING OF A SENIOR PRESCRIPTION DISCOUNT PROGRAM FOR ALL SENIORS IN THE STATE.
THE SUBCOMMITTEE RECOMMENDED A LETTER OF INTENT DIRECTING THE DEPARTMENT OF HUMAN RESOURCES TO ISSUE A REQUEST FOR PROPOSAL FOR A SENIOR PRESCRIPTION DISCOUNT PROGRAM FOR ALL SENIORS IN THE STATE SIMILAR TO THAT OFFERED BY WORLDDOCS. THE LETTER OF INTENT DIRECTS THE DEPARTMENT TO REPORT THE RESULTS OF THE REQUEST FOR PROPOSAL TO THE INTERIM FINANCE COMMITTEE FOR THEIR CONSIDERATION. THE INTERIM FINANCE COMMITTEE WOULD THEN DECIDE IF SUCH A PROGRAM SHOULD BE FUNDED, OR IF THE RESERVED FUNDING SHOULD BE PLACED IN THE SENIOR RX EXPENDITURE CATEGORY.
WITH THE SUBCOMMITTEE APPROVAL OF THE NEW GRANTS MANAGEMENT UNIT AS RECOMMENDED BY THE GOVERNOR, THE EXISTING MANAGEMENT ANALYST II, ALONG WITH THE ADMINISTRATIVE COSTS AND GRANT FUNDS TO IMPROVE THE HEALTH OF CHILDREN AND PERSONS WITH DISABILITIES AND TO REDUCE TOBACCO USE, WILL BE TRANSFERRED INTO THAT NEW UNIT. BASED ON THE APPROVAL OF A NEW AUDITOR POSITION IN THE DEPARTMENT OF HUMAN RESOURCES DIRECTOR’S OFFICE, THE SUBCOMMITTEE RECOMMENDED THAT THE CURRENT AUDITOR II POSITION IN THE HEALTHY NEVADA FUND BE TRANSFERRED INTO THE DHR ADMINISTRATION ACCOUNT IN ORDER TO CONSOLIDATE THE AUDIT FUNCTIONS FOR THE DEPARTMENT INTO ONE ACCOUNT. BOTH OF THESE POSITIONS WOULD CONTINUE TO BE SUPPORTED WITH FUNDING FROM THE HEALTHY NEVADA FUND.
DHR BLUE CROSS/BLUE SHIELD SETTLEMENT (101-3241) PAGE HR ADMIN-29
OVER THE 2003-05 BIENNIUM, A TOTAL OF $450,000 WILL ACCRUE TO THE BCBS BUDGET FROM THE ANNUAL PAYMENTS RECEIVED AS PART OF THE SETTLEMENT OVER THE MERGER OF ROCKY MOUNTAIN HOSPITAL AND MEDICAL SERVICES INC. AND NEVADA BLUE CROSS/BLUE SHIELD AND COLORADO BLUE CROSS/BLUE SHIELD. THE EXECUTIVE BUDGET RECOMMENDED RESERVING THE ANNUAL PAYMENTS FOR AN UNDESIGNATED USE IN THE FUTURE. THE SUBCOMMITTEE APPROVED THE TRANSFER OF $225,000 EACH FISCAL YEAR FROM THE BCBS SETTLEMENT BUDGET TO THE CHECK-UP BUDGET WITH THE INTENT THE ANNUAL PAYMENTS BE USED TO SUPPORT CASELOADS IN THE CHECK-UP PROGRAM. THE TRANSFER REDUCES THE AMOUNT OF GENERAL FUND NEEDED IN THE CHECK-UP BUDGET WHICH IS USED AS MATCH FOR FEDERAL FUNDS BY A LIKE AMOUNT. THE USE OF THE ANNUAL PAYMENTS TO HELP SUPPORT THE CHECK-UP PROGRAM MEETS THE INTENT OF THE SETTLEMENT AGREEMENT.
PURCHASE OF SOCIAL SERVICES-TITLE XX (101-3237) PAGE HR ADMIN-31
THE EXECUTIVE BUDGET RECOMMENDED AND THE SUBCOMMITTEE APPROVED THE ELIMINATION OF THIS BUDGET ACCOUNT AND THE TRANSFER OF ALL PROGRAM COSTS AND GRANT EXPENDITURES TO THE NEW GRANTS MANAGEMENT UNIT. THE SUBCOMMITTEE MADE NO ADJUSTMENTS AND THE BUDGET WAS APPROVED AS RECOMMENDED BY THE GOVERNOR. ADJUSTMENTS WERE MADE TO THIS BUDGET IN THE NEW GRANTS MANAGEMENT UNIT AND ARE DISCUSSED IN THE NARRATIVE FOR THAT ACCOUNT.
COMMUNITY SERVICES BLOCK GRANT (101-4864) PAGE HR ADMIN-38
THE EXECUTIVE BUDGET RECOMMENDED AND THE SUBCOMMITTEE APPROVED THE ELIMINATION OF THIS BUDGET ACCOUNT AND THE TRANSFER OF ALL PROGRAM COSTS AND GRANT EXPENDITURES TO THE NEW GRANTS MANAGEMENT UNIT. THE SUBCOMMITTEE MADE NO ADJUSTMENTS AND THE BUDGET WAS APPROVED AS RECOMMENDED BY THE GOVERNOR.
FAMILY TO FAMILY CONNECTION (101-3278) PAGE HR ADMIN‑43
THE EXECUTIVE BUDGET RECOMMENDED AND THE SUBCOMMITTEE APPROVED THE ELIMINATION OF THIS BUDGET ACCOUNT AND THE TRANSFER OF ALL PROGRAM COSTS AND GRANT EXPENDITURES TO THE NEW GRANTS MANAGEMENT UNIT. THE SUBCOMMITTEE MADE NO ADJUSTMENTS AND THE BUDGET WAS APPROVED AS RECOMMENDED BY THE GOVERNOR. THIS PROGRAM IS RECOMMENDED TO BE COMBINED WITH THE FAMILY RESOURCE CENTER PROGRAM IN THE GRANTS MANAGEMENT UNIT. THE SUBCOMMITTEE APPROVED THAT CONCEPT IN THE GRANTS MANAGEMENT UNIT BUDGET.
FAMILY RESOURCE CENTERS (101-3294) PAGE HR ADMIN-49
THE EXECUTIVE BUDGET RECOMMENDED AND THE SUBCOMMITTEE APPROVED THE ELIMINATION OF THIS BUDGET ACCOUNT AND THE TRANSFER OF ALL PROGRAM COSTS AND GRANT EXPENDITURES TO THE NEW GRANTS MANAGEMENT UNIT. NO ADJUSTMENTS WERE MADE BY THE SUBCOMMITTEE AND THE BUDGET WAS APPROVED AS RECOMMENDED BY THE GOVERNOR.
GRANTS MANAGEMENT UNIT (101-3195) PAGE HR ADMIN-54
THE GOVERNOR RECOMMENDED AND THE SUBCOMMITTEE APPROVED THE CREATION OF THIS BUDGET, WHICH CONSOLIDATES SIX GRANT PROGRAMS INTO ONE BUDGET ACCOUNT. THE NEW ACCOUNT TOTALS NEARLY $31 MILLION IN EACH YEAR (APPROXIMATELY $2.8 MILLION GENERAL FUND AND $28.2 MILLION IN FEDERAL AND OTHER FUNDS) AND CONSISTS OF 9.02 EXISTING FTE POSITIONS AND 1 NEW POSITION.
THE SUBCOMMITTEE REVISED THE AMOUNTS RECOMMENDED IN THE BUDGET FOR TITLE XX TO REFLECT A COMBINATION OF THE ACTUAL FEDERAL FY 2003 GRANT AWARD AND THE ESTIMATED AMOUNT FOR FEDERAL FY 2004. THE REVISED AMOUNTS RESULT IN AN INCREASE OF AVAILABLE TITLE XX OF $274,440 IN FY 2004 AND A SHORTFALL OF $77,060 IN FY 2005. TOGETHER WITH A PROJECTED BALANCE FORWARD OF $102,061 FROM FY 2003, ADDITIONAL TITLE XX REVENUE TOTALED $376,501. THE SUBCOMMITTEE DIRECTED $77,060 TO FY 2005 TO RESOLVE THE SHORTFALL AND APPROVED THE REMAINING $299,441 FOR THE AGING SERVICES HOMEMAKER SERVICES PROGRAM, RESULTING IN A CORRESPONDING DECREASE IN GENERAL FUND SUPPORT IN THAT BUDGET.
THE SUBCOMMITTEE ALSO APPROVED A REQUEST FROM THE DEPARTMENT TO INCREASE CHILDREN’S TRUST FUND GRANTS BY $160,000 IN EACH YEAR OF THE BIENNIUM FOR CHILD ABUSE AND NEGLECT PREVENTION GRANTS. THE SUBCOMMITTEE DID NOT APPROVE THE RECOMMENDATION TO CONSOLIDATE TITLE XX GRANTS OR TOBACCO GRANTS INTO ONE CATEGORY. THE REVERSAL OF THIS RECOMMENDATION ALLOWS MONEY COMMITTEE MEMBERS TO EASILY VIEW EXPENDITURES FOR INDIVIDUAL PROGRAMS RECORDED IN THE STATE’S ACCOUNTING SYSTEM.
STATE AND COMMUNITY COLLABORATIONS (101-3276) PAGE HR ADMIN-65
THE BUDGET RECOMMENDED AND THE SUBCOMMITTEE APPROVED THE REORGANIZATION OF THIS BUDGET AND THE TRANSFER OF STAFF AND PROGRAMS TO OTHER AGENCIES. THE SUBCOMMITTEE APPROVED THE TRANSFER OF 1.51 FTE TO THE DIRECTOR’S OFFICE FISCAL UNIT AND THE TRANSFER OF THE HEAD START-STATE COLLABORATION GRANT PROGRAM TO THE WELFARE DIVISION. THE REMAINING PERSONNEL AND COSTS ASSOCIATED WITH THE IDEA GRANT WERE APPROVED FOR TRANSFER TO THE HEALTH DIVISION.
THE SUBCOMMITTEE ALSO NOTED THAT TRANSFERS OF IDEA FUNDING FROM THIS ACCOUNT TO THE SPECIAL CHILDREN’S CLINIC BUDGET WERE UNDERSTATED BY APPROXIMATELY $1.4 MILLION. THE SUBCOMMITTEE APPROVED THE ADDITION OF $318,682 IN IDEA FUNDS EACH YEAR TO SPECIAL CHILDREN’S TO FURTHER REDUCE OR ELIMINATE WAITING LISTS. THE REMAINING AMOUNTS OF $397,494 IN FY 2004 AND $389,505 IN FY 2005 WERE ALSO ADDED TO SPECIAL CHILDREN’S BUDGET, RESULTING IN A CORRESPONDING DECREASE IN GENERAL FUND SUPPORT IN THAT BUDGET
PUBLIC DEFENDER (101-1499) PAGE DEFENDER-1
THE SUBCOMMITTEE APPROVED FUNDING OF $5,443 IN EACH YEAR FOR OFFICE SPACE IN THE HUMBOLDT COUNTY COURTHOUSE CURRENTLY OCCUPIED FREE OF CHARGE. ADDITIONALLY, THE SUBCOMMITTEE APPROVED THE GOVERNOR’S RECOMMENDATION TO FUND FOUR LAPTOP COMPUTERS.
Ms. Leslie expressed her gratitude to staff and the Joint Subcommittee on K‑12/Human Resources for their hard work.
ASSEMBLYWOMAN GIUNCHIGLIANI MOVED TO APPROVE THE BUDGET AS RECOMMENDED BY THE JOINT SUBCOMMITTEE ON K-12/HUMAN RESOURCES.
ASSEMBLYMAN MARVEL SECONDED THE MOTION.
Assemblyman Hettrick thanked Ms. Leslie and the members of the Subcommittee for helping obtain MAXIMUS funding for the Douglas County suicide prevention program. The program was important, and Mr. Hettrick said he appreciated Ms. Leslie’s support in that endeavor.
MOTION CARRIED. (Mr. Beers, Mrs. Chowning, and Mr. Griffin were not present for the vote.)
BUDGET CLOSED.
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DMV, MOTOR POLLUTION CONTROL (101-4722) BUDGET PAGE DMV – 83
Mark Krmpotic, Senior Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, presented Budget Account 101-4722. He said the pollution control budget had been discussed previously and the Committee had been advised that the budget account was projected to end the next biennium with a negative reserve of approximately $300,000. He noted that amount assumed full funding of the Department of Agriculture’s petroleum laboratory in Reno and other adjustments made to the Governor’s recommended budget. Those changes included the elimination of $800,000 set aside over the biennium for a projected DMV emission’s lab in Las Vegas, the removal of increased revenues of approximately $2.6 million each year of the biennium and corresponding distributions to Clark and Washoe Counties of approximately $1.3 million based on the failure of S.B. 419 in the Senate, adjustments in distributions to the Division of Environmental Protection and the Department of Agriculture, and technical adjustments to computer software and hardware costs.
Mr. Krmpotic indicated there were four options for the Committee to consider in closing the budget account in order to result in a positive reserve at the end of the biennium. The Committee considered the following options:
Mr. Krmpotic remarked that the Committee had previously expressed concern regarding the $1.3 million transfer to the Division of Environmental Protection (DEP), and he indicated that representatives from the DEP were present to answer any questions.
Chairman Arberry asked if the Committee had any additional questions or comments. There were none, and Chairman Arberry indicated he would take a motion from the Committee.
ASSEMBLYWOMAN GIUNCHIGLIANI MOVED TO CLOSE BUDGET ACCOUNT 101-4722 AS RECOMMENDED BY STAFF WITH APPROVAL OF A FEE INCREASE OF $1 AND OTHER TECHNICAL ADJUSTMENTS.
ASSEMBLYMAN PARKS SECONDED THE MOTION.
MOTION CARRIED. (Mr. Beers was not present for the vote.)
BUDGET CLOSED.
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Assemblywoman Giunchigliani, Chairwoman of the Joint Subcommittee on K‑12/Human Resources, read the following closing report:
THE K-12/HUMAN RESOURCES JOINT SUBCOMMITTEE REVIEWED THE BUDGET FOR THE DISTRIBUTIVE SCHOOL ACCOUNT AND MADE A NUMBER OF RECOMMENDATIONS FOR THE CLOSING OF THAT ACCOUNT. THESE SUBCOMMITTEE RECOMMENDATIONS RESULT IN INCREASED GENERAL FUND EXPENDITURES IN THE AMOUNT OF $41,641,525 FOR FY 2003-04 AND $122,559,672 FOR FY 2004-05.
THE DISTRIBUTIVE SCHOOL ACCOUNT BUDGET, AS RECOMMENDED BY THE GOVERNOR AND APPROVED BY THE SUBCOMMITTEE, INCLUDES INCREASES FOR THE TWO PERCENT MOVEMENT ON SCALE, TYPICALLY CALLED THE “ROLL-UP”; A TWO PERCENT SALARY INCREASE EFFECTIVE JULY 1, 2003; AND AN INCREASE FOR ENROLLMENT GROWTH. WEIGHTED ENROLLMENT GROWTH IS PROJECTED TO INCREASE BY 3.61 PERCENT IN FY 2003-04 AND 3.56 PERCENT IN FY 2004-05, WHICH EQUATES TO AN ADDITIONAL 26,186 STUDENTS OVER THE BIENNIUM.
THE EXECUTIVE BUDGET RECOMMENDED FUNDING IN THE AMOUNT OF $24.2 MILLION TO IMPLEMENT A FULL-DAY KINDERGARTEN PROGRAM IN APPROXIMATELY 30 PERCENT OF THE SCHOOLS IN FY 2004-05. THE SUBCOMMITTEE DOES NOT RECOMMEND APPROVAL OF THIS PROPOSAL AS SUBMITTED, BUT RATHER RECOMMENDED A PROPOSAL SUBMITTED BY THE NEVADA ASSOCIATION OF SCHOOL SUPERINTENDENTS IN THEIR INVEST PLAN TO IMPLEMENT A COMPETITIVE GRANT FOR A FULL-DAY KINDERGARTEN PILOT PROGRAM AT A COST OF $2,800,000 IN FY 2003-04 AND $3,235,000 FOR FY 2004-05.
THE SUBCOMMITTEE CONCURRED WITH THE GOVERNOR’S RECOMMENDATION TO CONTINUE THE STUDENT/TEACHER RATIONS THAT ARE CURRENTLY FUNDED IN THE CLASS SIZE REDUCTION PROGRAM; SPECIFICALLY 16 TO 1 IN 1ST AND 2ND GRADE, AND 19 TO 1 IN 3RD GRADE, AS WELL AS 23.5 AT-RISK KINDERGARTEN TEACHERS. IN ADDITION, THE SUBCOMMITTEE APPROVED THE ADDITION OF APPROXIMATELY $14 MILLION IN FY 2004-05 TO IMPLEMENT A CLASS SIZE OF 16 TO 1 FOR ALL KINDERGARTEN CLASSES.
THE EXECUTIVE BUDGET RECOMMENDED FUNDING FOR TWO STIPEND PROGRAMS THROUGH THE DISTRIBUTIVE SCHOOL ACCOUNT: HIGH IMPACT STIPENDS AND AT-RISK SCHOOL STIPENDS. AS RECOMMENDED BY THE GOVERNOR, HIGH IMPACT STIPENDS WOULD PROVIDE ANNUAL STIPENDS IN THE AMOUNT OF $3,000 FOR LICENSED EDUCATIONAL PERSONNEL IN THE SUBJECT AREAS OF MATH, ENGLISH AS A SECOND LANGUAGE (ESL), SPECIAL EDUCATION, AND PSYCHOLOGISTS. THE AT-RISK SCHOOL STIPEND PROGRAM, AS RECOMMENDED BY THE GOVERNOR, WOULD PROVIDE ANNUAL STIPENDS IN THE AMOUNT OF $2,000 TO TEACHERS AND ADMINISTRATORS WHO REMAIN IN “AT-RISK SCHOOLS.”
THE ASSEMBLY SUBCOMMITTEE APPROVED THE ELIMINATION OF BOTH STIPEND PROGRAMS, AS WELL AS THE TEACHER SIGNING BONUS PROGRAM RECOMMENDED BY THE GOVERNOR IN THE OTHER STATE EDUCATION PROGRAMS BUDGET ACCOUNT. IN MAKING THIS DECISION, THE ASSEMBLY SUBCOMMITTEE DIRECTED THAT A PORTION OF THE FUNDING BE REDIRECTED TO EXPAND THE PURCHASE OF RETIREMENT CREDITS INCLUDED IN NRS 391.165 TO INCLUDE ALL AT-RISK SCHOOLS, AS WELL AS SCHOOLS DESIGNATED AS NEEDING IMPROVEMENT, AT A COST OF $2,689,206 FOR FY 2003-04 AND $7,045,056 FOR FY 2004-05; $9 MILLION ANNUALLY WAS REDIRECTED FOR SALARIES FOR NEGOTIATING THE IMPLEMENTATION OF A SKILL BASED, CAREER LADDER PAY; WITH THE BALANCE OF THE FUNDING REDIRECTED TO A POOL OF FUNDING TO BE APPLIED TOWARD INCREASING THE BEGINNING TEACHER SALARY TO $30,000.
THE EXECUTIVE BUDGET RECOMMENDED FUNDING OF $2.9 MILLION IN EACH FISCAL YEAR FOR EARLY CHILDHOOD EDUCATION PROGRAMS. FUNDING OF $2.6 MILLION IS CONTAINED IN B/A 2610 – DISTRIBUTIVE SCHOOL ACCOUNT (DSA) TO CONTINUE THE STATE EVEN START PROGRAM AND OTHER DISTRICT AND COMMUNITY-BASED PROGRAMS, AND $301,000 WAS CONTAINED IN B/A 2699 – OTHER STATE EDUCATION PROGRAMS FOR THE CLASSROOM ON WHEELS (COW) PROGRAM.
THE SUBCOMMITTEE APPROVED FUNDING FOR EARLY CHILDHOOD EDUCATION PROGRAMS AS RECOMMENDED BY THE GOVERNOR AND APPROVED THE TRANSFER OF FUNDING FOR THE CLASSROOM ON WHEELS (COW) PROGRAM FROM THE OTHER STATE EDUCATION PROGRAMS BUDGET TO BE ADDED TO THE FUNDING PROVIDED IN THIS ACCOUNT. IN ADDITION, THE SUBCOMMITTEE REQUESTED THAT STATE FUNDS FOR EARLY CHILDHOOD EDUCATION PROGRAMS BE RESTRICTED TO ITEMS DIRECTLY RELATED TO INSTRUCTION OF PUPILS AND THAT LONGITUDINAL EVALUATIONS BE CONDUCTED FOR ALL EARLY CHILDHOOD PROGRAMS AS PART OF RECEIPT OF GRANT FUNDS.
THE EXECUTIVE BUDGET RECOMMENDED FUNDING IN THE AMOUNT OF $10.5 MILLION IN FY 2003-04 AND $10.8 MILLION IN FY 2004-05 FOR PROFESSIONAL DEVELOPMENT PROGRAMS FOR TEACHERS AND ADMINISTRATORS. THE PROGRAMS INCLUDE THE REGIONAL PROFESSIONAL DEVELOPMENT PROGRAMS (RPDPs), THE NEVADA EARLY LITERACY INTERVENTION PROGRAM (NELIP) AND PROJECT LEAD (LEADERSHIP IN EDUCATIONAL ADMINISTRATION DEVELOPMENT).
THE SUBCOMMITTEE APPROVED THE CONSOLIDATION OF THE RPDP AND NELIP PROGRAMS WITH THE INCLUSION OF THE PROJECT LEAD FUNDING FROM THE OTHER STATE EDUCATION PROGRAMS BUDGET ACCOUNT; THIS CONSOLIDATION RESULTED IN A STATE GENERAL FUND SAVINGS OF $3.1 MILLION OVER THE BIENNIUM. IN APPROVING THE INCLUSION OF PROJECT LEAD FUNDS THROUGH THE RPDPS, THE SUBCOMMITTEE STRESSED THAT THE STATEWIDE COORDINATING COUNCIL FOR THE RPDPS SHOULD PROVIDE COMPARABLE SERVICES TO ADMINISTRATORS THAT HAVE BEEN PROVIDED IN THE PAST THROUGH PROJECT LEAD AND REQUESTED THAT LANGUAGE BE INCLUDED IN THE SCHOOL FUNDING BILL TO THIS EFFECT.
THE EXECUTIVE BUDGET RECOMMENDED FUNDING OF $12.7 MILLION FOR REMEDIAL PROGRAMS FOR LOW- PERFORMING SCHOOLS AND BEFORE/AFTER/SUMMER/INTERSESSION PROGRAMS FOR AT‑RISK PUPILS.
THE SUBCOMMITTEE APPROVED FUNDING AS RECOMMENDED BY THE GOVERNOR. HOWEVER, WITH REGARD TO FUNDING FOR BEFORE/AFTER/SUMMER/INTERSESSION TUTORING FOR AT-RISK PUPILS, THE SUBCOMMITTEE REQUESTED THAT THE FUNDS BE UTILIZED TO PROVIDE SUPPLEMENTAL SERVICES, AS DEFINED BY THE NO CHILD LEFT BEHIND ACT, TO PUPILS IN NON-TITLE I SCHOOLS DESIGNATED AS DEMONSTRATING NEED FOR IMPROVEMENT FOR TWO OR MORE CONSECUTIVE YEARS. IN MAKING THIS DECISION, THE SUBCOMMITTEE APPROVED AN INCREASE OF $500,000 IN FUNDS FOR AT-RISK PUPILS, WITH A CORRESPONDING DECREASE IN REMEDIATION FUNDS FOR LOW PERFORMING SCHOOLS. THIS CHANGE SHOULD PROVIDE ADEQUATE FUNDS DURING THE BIENNIUM TO ASSIST PUPILS IN NON-TITLE I SCHOOLS DESIGNATED AS DEMONSTRATING NEED FOR IMPROVEMENT, AS WELL AS SUFFICIENT FUNDS FOR THE IMPLEMENTATION OF EFFECTIVE PROGRAMS IN ALL SCHOOLS DESIGNATED AS DEMONSTRATING NEED FOR IMPROVEMENT.
THE EXECUTIVE BUDGET RECOMMENDED FUNDING OF $18.6 MILLION IN FY 2003-04 AND $19.2 MILLION IN FY 2004-05 TO PROVIDE $50 PER PUPIL FOR TEXTBOOKS, INSTRUCTIONAL SUPPLIES, AND INSTRUCTIONAL SOFTWARE.
THE SUBCOMMITTEE APPROVED THE RECOMMENDED FUNDING, WITH A PROVISION THAT THE FUNDING MUST SUPPLEMENT, NOT SUPPLANT, EXISTING FUNDING.
THE EXECUTIVE BUDGET INCLUDED A 10 PERCENT INCREASE IN THE COST OF HEALTH INSURANCE FOR ALL SCHOOL DISTRICT PERSONNEL. THE SUBCOMMITTEE APPROVED INCREASING THIS PERCENTAGE TO 15 PERCENT AT A COST OF $6.8 MILLION IN FY 2003-04 AND $7.9 MILLION IN FY 2004-05.
THE EXECUTIVE BUDGET DID NOT RECOMMEND A SALARY INCREASE FOR K ‑12 PERSONNEL ABOVE THE ADJUSTED BASE AMOUNT OF TWO PERCENT. THE SUBCOMMITTEE APPROVED AN ADDITIONAL TWO PERCENT IN FY 2003-04, AT A COST OF $37.5 MILLION AND AN ADDITIONAL FOUR PERCENT IN FY 2004‑05, AT A COST OF $119.3 MILLION.
Assemblyman Marvel questioned the difference between the Governor’s recommended budget and the Subcommittee’s recommended budget. In response, Ms. Giunchigliani said the Subcommittee’s budget was an increase of approximately $41 million the first year and $122 million the second year of the biennium.
Ms. Giunchigliani said the Subcommittee had added five additional days to the “wish list.” She pointed out that the iNVest plan had requested 10 additional days, but the Subcommittee had reduced that to 5 days in the second year of the biennium for the Committee’s consideration.
Assemblyman Griffin expressed confusion regarding the difference between the Governor’s recommended budget and the Subcommittee’s recommended budget. Mr. Stevens explained that the Subcommittee’s budget exceeded the Governor’s budget by $41.6 million in the first year and $122.6 million in the second year of the biennium. Ms. Giunchigliani noted that there were other items on the “wish list,” including additional funding for inflation costs in textbooks, supplies, and materials, and the starting salary goal of $30,000. She said the “wish list” would be important as the Senate and Assembly met to negotiate various differences in the budget, and she did not want the Committee to lose sight of those “wish list” items if the funding became available.
Assemblyman Andonov asked Ms. Giunchigliani to explain the “wish list.” Ms. Giunchigliani said the “wish list” concept had started several sessions earlier, as a way to remind the Committee of those items for which funding might become available through the negotiation process. She emphasized that the “wish list” was not included in the budget closing but might be used during negotiations.
Mr. Andonov noted that he had a summary of the Distributive School Account (DSA) for the biennium that said the net change in the biennium appropriation requirement was $384,328,771, and he asked if that total could be explained. Bob Atkinson, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, explained that the $384,328,771 was the Governor’s recommended increase for the upcoming biennium over the current biennium. The other amounts that had been discussed, the $41.6 million and the $122.6 million, were the difference between the Governor’s recommended budget and the Subcommittee’s recommended budget.
Assemblywoman Gibbons asked if Ms. Giunchigliani had spoken to Dr. James Hager, Superintendent of Washoe County Schools, regarding the funding increase and whether it would help those schools that had made cuts. Ms. Giunchigliani said she had not spoken with Dr. Hager, but the local districts were in the process of making their budget cuts based on what might happen legislatively. She pointed out that Nevada’s funding per pupil was 46th in the nation, which was a much lower level than the school districts would like. However, those numbers might change as the budget was solidified and the school districts would then be able to determine the results of the Legislature’s actions.
Mr. Griffin asked what would happen if the budget was approved with substantial changes from the Governor’s recommended budget as well as from the Senate’s budget. He commented that he did not disagree with many of the items in the budget, but the budget would necessitate tax increases, and he wanted clarification of the process.
Ms. Giunchigliani offered to provide a brief summary of the differences between the Senate and the Assembly DSA budgets. She said the Senate put a pilot program for all-day kindergarten on its “wish list,” but had not included it in the budget, while the Assembly had included approximately $6 million for a pilot program. The Senate changed the current law on class-size reduction from the 16 to 1 ratio for first and second grade and the 19 to 1 for third grade to a 22 to 1 flexibility. The Assembly had not changed the class-size reduction and had included a 16 to 1 ratio for kindergarten classes. The Assembly had also altered the stipends, which were provided to aid at-risk schools, high-impact shortages, and recruitment.
Ms. Giunchigliani commented that she had spoken to teachers who had not felt the $2,000 stipend was sufficient. In addition, when the law regarding stipends for teachers at schools deemed in need of improvement was put in place, there were only nine schools in that category. She indicated that it had seemed more appropriate to allow the teachers in the at-risk schools to earn one-fifth more retirement credit than to give them a one-time stipend. The retirement credit would be of more value to the teacher and would reward new and experienced teachers, and Ms. Giunchigliani indicated that replacing the stipend with retirement credit had reduced that portion of the budget.
Continuing her summary, Ms. Giunchigliani explained that the high-impact shortages, which were teacher shortages in special education, English as a Second Language, English, and math, were not consistent and school districts experienced yearly changes in those areas. Because of those changes, the money could not be tracked. Thus, the Subcommittee decided to use the stipends for recruitment and for high-impact shortages and place them in a pool. The pool of money would be used in negotiating contracts on a different salary schedule that would include various factors, such as skills-based, mentor, career, and high-impact areas. If there were any remaining funds, they would be used to work toward the goal of raising the beginning salary to $30,000, which Ms. Giunchigliani opined was a better incentive than a one-time stipend.
Mr. Griffin said he hoped that the portions of the budget were funded at reasonable levels and that would aid negotiation. Ms. Giunchigliani agreed that the differences would need to be resolved and that the negotiation process would allow the Senate and Assembly to determine which differences were a philosophical matter and which were a financial matter, and once that picture was clear, agreement could be reached.
ASSEMBLYWOMAN LESLIE MOVED APPROVAL OF THE DSA BUDGET AS RECOMMENDED BY THE JOINT SUBCOMMITTEE ON K-12/HUMAN RESOURCES.
ASSEMBLYMAN PERKINS SECONDED THE MOTION.
Mr. Andonov inquired whether the Senate and Assembly had closed differently in regard to the $50 per pupil textbook funding. Ms. Giunchigliani said the amount agreed to was the same in both houses, but the Senate had “fenced off” the funds, meaning the funds could not be used in the collective bargaining process. The Assembly had disagreed and had not included that language, but had stipulated that the money would be used for textbooks and supplies.
Mr. Goldwater interjected that he had been a main proponent of stipulating the use of, rather than “fencing off,” funds, and he explained that the school districts were already spending in excess of $50 per pupil so it seemed unnecessary to “fence off” the funds.
MOTION CARRIED WITH MR. HETTRICK AND MR. MARVEL VOTING NO. (Mr. Beers was not present for the vote.)
BUDGET CLOSED.
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Ms. Giunchigliani thanked the staff and the members of the Subcommittee for their hard work.
Chairman Arberry adjourned the meeting at 6:12 p.m.
RESPECTFULLY SUBMITTED:
Susan Cherpeski
Committee Secretary
APPROVED BY:
Assemblyman Morse Arberry Jr., Chairman
DATE: