MINUTES OF THE
BUDGET SUBCOMMITTEE
OF THE LEGISLATIVE COMMISSION
Seventy-second Session
January 27, 2003
The Budget Subcommittee of the Legislative Commission was called to order by Chairman William J. Raggio, at 10:28 a.m., on Monday, January 27, 2003, in Room 4100 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 Dean A. Rhoads
Senator Barbara K. Cegavske
Senator Sandra J. Tiffany
Senator Bob Coffin
Senator Bernice Mathews
ASSEMBLY COMMITTEE MEMBERS PRESENT:
Mr. Walter Andonov
Mr. Bob Beers
Mrs. Vonne Stout Chowning
Ms. Dawn Gibbons
Mr. Joshua B. Griffin
Mr. Lynn C. Hettrick
Ms. Sheila Leslie
Mr. John W. Marvel
Ms. Kathryn A. McClain
Mr. David R. Parks
Mr. Richard D. Perkins
ASSEMBLY COMMITTEE MEMBERS ABSENT:
Mr. Morse Arberry Jr., Chairman (Excused)
Ms. Christina R. Giunchigliani, Vice Chairman (Excused)
Mr. David E. Goldwater (Excused)
STAFF MEMBERS PRESENT:
Gary L. Ghiggeri, Senate Fiscal Analyst
Mark W. Stevens, Assembly Fiscal Analyst
Bob Guernsey, Principal Deputy Fiscal Analyst
Steven J. Abba, Principal Deputy Fiscal Analyst
Jeffrey A. Ferguson, Program Analyst
Pamela Carter, Committee Secretary
OTHERS PRESENT:
Dennis K. Neilander, Chairman, State Gaming Control Board
Peter C. Bernhard, Chairman, Nevada Gaming Commission
Scott Scherer, Board Member, State Gaming Control Board
Myla C. Florence, Director, Department of Employment, Training and Rehabilitation
Tom Stephens, P.E., Director, Nevada Department of Transportation
Virginia Lewis, Director, Department of Motor Vehicles
Dana Mathiesen, Deputy Director, Department of Motor Vehicles
STATE GAMING CONTROL BOARD – BUDGET OVERVIEW
Dennis K. Neilander, Chairman, State Gaming Control Board (SGCB), stated there are two major proposals for this biennium. The first proposal involves SGCB’s added responsibility of compliance with lawful requirements for issuing work permits. The second proposal relates to expansion of SGCB’s electronic services laboratory. The electronic services laboratory is a division within the SGCB that tests slot machines and other gaming equipment. Mr. Neilander said funding for expansion of the electronic services laboratory will come from a fee increase, not the General Fund.
Mr. Neilander referred to the State Gaming Control Board and Nevada Gaming Commission Legislative Budget Presentation handout (Exhibit C. Original is on file in the Research Library). He pointed out the SGCB’s mission and goal statements taken from Nevada Revised Statutes (NRS) 463.0129 are “to promote growth, maintain stability within the industry, ensure accurate collection of revenues, and provide for the proper regulation of the industry through enforcement and oversight.” Mr. Neilander highlighted relevant facts in the handout noting SGCB’s 2002 budget was $30,674,749 and the 2003 budget was $32,560,680. He stated SGCB’s 432.5 total employees have remained constant for several years. He said there are 6002 total table games in the state, 388 poker tables, and 212,493 slot machines.
Assemblyman Beers asked Mr. Neilander whether historical budget amounts could be provided to compare the past 6 years with today. Mr. Neilander said he would provide the information.
Mr. Neilander stated slow recovery of the gaming industry is resulting from soft economic conditions in 2001, September 11, 2001, and today’s struggling economy. He said high technology is changing the way patrons gamble. Mr. Neilander explained advances in types of computers now used in slot machines and table games are the result of increased processing power in computers over the past 5 years. He stated Internet gaming continues to grow outside Nevada. Mr. Neilander noted cashless wagering is increasing. He said there has been a 137-percent increase in the number of cashless systems in use since 2001.
Senator Raggio asked where Internet gaming is located. Mr. Neilander said there are offshore books in the Caribbean, and Internet gaming is legal in the United Kingdom provinces and Australia. Mr. Neilander explained the federal government has prohibited Internet gaming by enactment of the Federal Wire Act. He said the SGCB is struggling with this issue. Mr. Neilander noted Native American gaming continues to grow throughout the United States.
Senator Raggio commented that the Governor’s State of the State message indicated Indian gaming revenues had grown to $5 billion annually compared to Nevada’s total annual revenue of $10 billion. Senator Raggio pointed out how rapidly Indian gaming is growing. Mr. Neilander confirmed the annual amounts and agreed Indian gaming is growing. He added there is a proposal in California to expand the number of slot machines available to Indian tribes there. He stated California Indian tribes have approximately one quarter (5312) the number of slot machines Nevada has in place state-wide.
Senator Rawson asked Mr. Neilander the status of gaming in Nevada. Mr. Neilander replied an annual gaming abstract would be available within the next 2 weeks. He explained the abstract will break down both expenses and revenues to present both leverage and indebtedness. Mr. Neilander stated when the economy is soft there is a definite impact on the gaming industry.
Senator Tiffany asked whether revenue will be affected if new electronics staff positions are added. Mr. Neilander replied more revenue could be generated because more staff testing slot machines will enable slot machines to be placed back on the casino floor in a shorter length of time.
Senator Rhoads asked if Indian casinos sell liquor. Mr. Neilander replied he was unaware of any restrictions on alcohol sales in Indian casinos. Mr. Neilander added he would look into any restrictions on alcohol sales in Indian casinos.
Mr. Neilander pointed out five major issues facing the SGCB in this biennium. He stated the hiring freeze has left 39 positions vacant. He said a 3-percent reduction in the budget has forced SGCB to cut travel. He explained a limited ability to travel has affected the audit division because many out of town audits were rearranged to save money on travel. Mr. Neilander stated SGCB is asking for a $90,000 increase to catch up on travel for out-of-town audits.
Senator Raggio asked for the status of current audits. Mr. Neilander replied the current audit cycle is slightly over 3 years for SGCB to conduct an audit. Senator Raggio asked what the ideal situation would be for an audit cycle. Mr. Neilander stated SGCB would like an audit cycle to come in consistently at 2.5 years. He explained the statute of limitations on gaming issues is 5 years. He said, with an average cycle of 3 years, SGCB is getting into the 4-year zone before an audit is completed. Mr. Neilander explained when an audit is performed and taxes are owed, it is more cost effective when the SGCB can get in sooner to perform an audit.
Mr. Neilander stated SGCB should improve the electronic services laboratory with new external technology. He said internally SGCB has tried for several years to move out of a debt based computer system into a personal computer (PC) based computer system. Mr. Neilander mentioned increasing facilities expenditures by stating SGCB is like any other State agency with increased facility costs. Mr. Neilander noted the complexity of gaming because it is driven by the economy and the present economy is soft.
Senator Raggio asked the level of staffing in the securities division. Mr. Neilander replied the Corporate Securities Division currently has 18 staff members. He stated 18 competent, professional staff members are adequate for the securities division.
Senator Raggio asked what year the wait period went into effect when someone retires from the Nevada Gaming Commission (NGC) administration. Mr. Neilander replied 1993. Senator Raggio asked whether someone employed prior to 1993 is subject to a wait period. Mr. Neilander replied anyone employed by SGCB prior to 1993 is not subject to a wait period. Mr. Neilander stated anyone employed after 1993 is subject to a 1-year cooling off period.
Senator Raggio asked whether the SGCB is losing employees to private industry because private industry can pay higher salaries. Mr. Neilander replied yes, they are still losing employees to private industry. He said the salary increases SGCB received during the last Legislative session helped lower the turnover rate to 3 percent.
Mr. Neilander stated approximately 33 percent of the State’s revenue is collected from gaming. He said other revenue has increased somewhat because the sales tax has increased over the last 2 years. Mr. Neilander explained the breakdown of the gaming revenue. He stated in fiscal year (FY) 2002, the SGCB collected $711,578,089. He said 78 percent of $711,578,089 is gaming percentage fees. Mr. Neilander stated the casino entertainment tax came in at 9 percent of $711,578,089. Mr. Neilander said SGCB does generate significant revenue for the State through investigative fees, work permit fees, electronic lab services fees, and other fees.
Senator Raggio asked what the entertainment tax covers. Mr. Neilander replied the entertainment tax is a 10-percent tax applicable to admissions, food and beverage, and merchandise in those facilities defined by State law as showrooms and bars where entertainment is offered.
Mr. Neilander said in the General Fund, SGCB is flat from year to year except for investigative fees generated from work permits and electronic services lab fees from cashless wagering and modifications to approved gaming devices.
Assemblywoman Gibbons asked for an explanation of the $90,000 request for make-up travel. Mr. Neilander explained the SGCB had to absorb the increased cost of State per diem, airline travel, and motor pool fees within the budget. Mr. Neilander said the Governor ordered a freeze on nonessential travel. He stated SGCB put off some regular audits until the next biennium. Mr. Neilander explained SGCB performed some work but not a full audit and now it needs to perform full audits in Wendover and Elko.
Assemblyman Marvel asked whether those entities receiving an audit pay for a portion of travel. Mr. Neilander replied they do not.
Mr. Neilander stated employee turnover rate at the time of the last Legislative session was 12 percent. He stated salary increases, coupled with credential pay, are key factors in bringing the turnover rate down to 3 percent. Mr. Neilander requested the committee continue the credential pay program within the current budget because it has been critical in recruiting and retaining professional employees. Mr. Neilander explained the credential pay program is available only to credentialed employees who hold an engineering certificate or work as a certified public accountant (CPA) or attorney.
Senator Rhoads asked whether the new entertainment and amusement taxes proposed by the Governor are included in SGCB revenues. Mr. Neilander replied they are not. He explained the existing casino entertainment tax is included in SGCB revenues.
Mr. Neilander stated enhancement decision unit E-176 is the work permit program. He explained State law provides primary jurisdiction to local governments for issuing work permits. Mr. Neilander said if local governments do not issue the work permits, the State will issue them.
Senator Raggio asked net cost to the State to issue work permits. Mr. Neilander replied approximately $134,000 over the biennium. Mr. Neilander stated approximately 20,000 work permits are issued in 1 year at a cost of up to $75 per permit.
Senator Cegavske asked whether the SGCB would continue to issue non-gaming work permits. Mr. Neilander replied non-gaming work permits were created in Las Vegas. He said SGCB has no interest in issuing non-gaming work permits. Senator Cegavske asked the cost for a work permit per employee. Mr. Neilander replied the maximum cost is $75 per work permit per employee. He stated some rural jurisdictions are charging less than $75.
Senator Cegavske asked whether SGCB is able to screen employees at local and national levels. Mr. Neilander replied yes, local governments must use uniform criteria in determining eligibility for a work permit at the initial application process. Mr. Neilander added fingerprints are rolled and sent to state and national repositories. Senator Cegavske commented if SGCB issues work permits using uniform criteria they will know if every criterion is met in the screening process.
Senator Cegavske asked whether the employer is notified when someone has a work permit for 5 years and commits a crime. Mr. Neilander replied yes, SGCB will be notified, a review will be conducted, the employee will be entitled to an analysis at an agent level, a hearing will be conducted, the SGCB and the NGC will hear the case, and if it needs to go further, the case goes to court.
Mr. Neilander said the work permit program formed and developed at the local government level. He explained during the last Legislative session uniform screening criteria were developed. Mr. Neilander stated if work permits are not issued at the local level, they will be issued at the State level.
Senator Raggio stated it is imperative SGCB work with legislative staff to fully understand the impact on E-176, because for the next 2 years, General Fund appropriations are approximately $816,000 the first year and over $758,000 the second year. Senator Raggio emphasized total expense for issuing work permits is $1.6 million the first year and $1.538 million the second year. He noted SGCB stated there might be some cost over the biennium of only $134,000. Senator Raggio stated SGCB should ensure the work permit program is paying for itself because there is so much General Fund money being appropriated for this program. He said it does not look as if the program is paying for itself because current operations demonstrate a tremendous General Fund cost.
Senator Raggio stated SGCB should work with Legislative staff to get a clear understanding of the cost to the State. Mr. Neilander stated he would keep Legislative staff, subcommittees, and the budget office updated on the cost of the work permit program over the biennium.
Mr. Neilander explained enhancements decision unit E-177 involves electronic services laboratory expansion due to the complexity of gaming devices now being reviewed.
Senator Raggio noted more than 11 percent of the budget is going to be funded by General Fund appropriations and the remaining 89 percent by investigative fees. He asked Mr. Neilander if it is possible to fully fund expansion of the electronic services laboratory with gaming investigative fees to eliminate general fund appropriations from this module.
Mr. Neilander replied it is certainly possible. He said the SGCB would like authorization to begin expansion of the electronic services laboratory and hiring additional staff enabling SGCB to collect investigative fees. Mr. Neilander stated he would like everything in place by the end of this Legislative session. He said SGCB is asking for six engineers and one support staff to allow the SGCB to better analyze the gaming devices and handle the new technology.
Senator Raggio asked Mr. Neilander the net result if seven clerical positions are eliminated and two electronic lab engineer positions are added in E-275 and if two positions are deleted in E-600. Mr. Neilander responded the net result is the deletion of five positions.
Senator Raggio requested the committee and Mr. Neilander to look at budget account 4067. Mr. Neilander explained budget account 4067 is a new account the Legislature created during the last session. He stated account 4067 provides funding for one additional staff person reporting solely to NGC to assist on policy matters. Mr. Neilander said the senior research position has been important to NGC and requests the committee continue that position.
Senator Raggio asked Peter Bernhard, Chairman, Nevada Gaming Commission, whether the proposed budget is going to be adequate for his purposes. Mr. Bernhard replied after reviewing the proposed budget with Chairman Neilander, coordination with existing staff, and the assistance of Mr. Warren who filled the senior research position, it was determined the proposed budget would be adequate.
Senator Raggio asked whether the proposed budget accommodates NGC’s travel needs. Mr. Bernhard responded yes, it does relative to existing travel plans. He stated NGC is coordinating with other jurisdictions to ensure NGC regulatory schemes remain at the forefront of gaming control. Mr. Bernhard said this does not provide very much for coordination with other jurisdictions, but NGC believes, given their history and position within worldwide gaming, it is adequate to maintain their position within the gaming industry.
Senator Raggio asked why decision unit E-720 appears in NGC’s budget and not SGCB’s budget to purchase equipment for the electronic services laboratory. Mr. Neilander responded there is a small amount of technology funding SGCB tried to put into account 4067. He stated the senior research staff person dedicated to NGC is working heavily on Internet gaming.
Assemblywoman Leslie asked whether SGCB or the NGC looked at limiting the work permit list defining a casino employee. Mr. Neilander replied SGCB has not looked at the list. He stated the list defining a casino employee is contained in Nevada statutes and there is no consensus between SGCB and NGC on limiting the list. Mr. Neilander said he is open to reforms if they do not harm the ability of the State to maintain the public confidence in gaming. He stated it is critically important for most employees handling money and dealing with patrons to go through a background check.
Scott Scherer, Board Member, State Gaming Control Board, said the definition of gaming employee in NRS 463.0157 is reasonably narrow already. He stated it would not cover anyone in a restricted location of a convenience store or bar. He added it would only cover casino employees in a non-restricted location.
Senator Tiffany asked if the State of Nevada was considering a lottery, should it be privately held or controlled by SGCB. Mr. Neilander replied Nevada’s population is not sufficient to support an in-state lottery that relies solely on Nevada residents. He stated if a lottery was held on a cooperative basis with other states, enough revenue might be generated for large jackpots ensuring a high interest level with residents. Mr. Neilander emphasized the State should oversee the operation of a lottery.
Senator Tiffany asked whether expansion of the number of slot machines in convenience and grocery stores has been considered. Mr. Neilander responded it has. He stated the policy over the last decade has been to restrict access to convenience gaming. Mr. Neilander said the restriction happened as a result of S.B. No. 208 of the 69th Session limiting gaming to enterprise districts and to eliminate neighborhood gaming. Mr. Neilander stated SGCB adopted a regulation placing a cap on the number of machines in convenience stores, eliminated gaming in laundromats, coffee shops, and liquor stores. Senator Tiffany asked whether expansion of slot machines would require a different type of license. Mr. Neilander responded it would require a restricted license up to 15 machines. He added a gross gaming revenue tax is not paid because a tax is paid on each machine under a restricted license.
Senator Coffin asked how the tax rates for Nevada casinos compare to tax rates for casinos in other states. He also asked how SGCB determines tax rates and how tax rates affect the bottom line. Mr. Neilander replied SGCB concentrates on revenue to ensure tax policies set by the Legislature are carried out and collected. He stated determination of tax rates and how it affects the bottom line requires an analysis of revenues and expenses. Mr. Neilander said the Nevada abstract would show both revenue and expenses and yearly comparisons on revenue and expenses. He stated SGCB does not keep statistics on tax rates in other states, but he would supply the information to Senator Coffin.
DEPARTMENT OF EMPLOYMENT, TRAINING AND REHABILITATION – BUDGET OVERVIEW
Myla C. Florence, Director, Department of Employment, Training and Rehabilitation (DETR), read from a statement (Exhibit D) explaining the declining economy and events of September 11 have fully tested the unemployment insurance compensation and employment services systems. Ms. Florence referred to the Budget Overview handout (Exhibit E. Original is on file in the Research Library.) page 1 departmental budget summary. She stated DETR is proposing 31.5 new positions spread through 14 departments, 30 intermittent positions, and the elimination of 6.5 positions for a total DETR staffing of 888.5 full time employees (FTEs). Ms. Florence said the proposed 31.5 new positions do not impact the General Fund because the General Fund comprises only 3.7 percent of DETR’s total departmental budget. Ms. Florence cited workforce development enhancements on page 3. She stated DETR is requesting an additional $5.3 million in career enhancement program funds to support employment and training opportunities for Nevadans who are unemployed or underemployed. Ms. Florence said DETR is proposing to expand the program to include incumbent worker training. She stated employers have indicated a strong need for incumbent worker training for skills upgrades to keep pace with technological changes.
Senator Raggio asked whether there will be an employer contribution for training incumbent workers. Ms. Florence responded DETR will be training incumbent workers using existing revenues acquired through the current contribution.
Ms. Florence stated DETR is proposing creation of the office of disability employment policy to focus on strategies to increase employment of persons with disabilities. She said the office would be created through the current Governor’s Committee on Employment of People with Disabilities and with vocational rehabilitation staff to obtain federal funds coming available from the U.S. Departments of Labor, Health and Human Services, and Education. Ms. Florence stated the creation of this office would save approximately $400,000 in General Funds because DETR will be using other federal funds to support the program.
Assemblyman Marvel asked how many people would be trained under both programs. Ms. Florence responded approximately 7,000 people would be trained under the career enhancement program and no one will be trained under the office of disability employment because training funds will come from other sources within the department who will train the disabled.
Assemblyman Marvel asked whether DETR is able to place most disabled persons in positions. Ms. Florence responded yes, she has statistics she will share with the committee.
Ms. Florence stated the Governor is recommending 20 new positions in service enhancements to meet the increased disability determinations required for Social Security Disability Insurance (SSDI) and SSDI applications through the Bureau of Disability Adjudication (BDA). She said the budget is fully federally funded and dependent on revenues derived by DETR. She stated planning targets for Social Security Administration (SSA) recognize DETR growth and SSA is encouraging DETR to provide authority for additional positions.
Senator Raggio asked whether adding 20 DETR positions would have a significant impact on the adjudication backlog. Ms. Florence responded yes, it would help. Senator Raggio asked why the adjudication process takes so long. Ms. Florence replied the process is presently taking less time, and productivity counts have improved for individual workers. She stated a major problem is SSA will fund only so many positions, and in many cases SSA will authorize funding for overtime but not for additional positions. She said it is a matter of resources available to handle demand.
Senator Raggio stated when someone needs adjudication, there is an inordinate amount of wait time to get the result. Ms. Florence responded there are disputes between the physician and the individual relative to the individual’s ability to work. Senator Raggio emphasized there must be some way to expedite the process. Ms. Florence responded statistics will show DETR is doing everything possible to shorten the adjudication time.
In reference to vocational rehabilitation, Ms. Florence explained the Governor is proposing to fully match available federal funds with State General Fund money for service enhancements. She said $608,000 in State monies would give DETR $2.2 million in federal funds for vocational rehabilitation services. She stated no new positions would be added because DETR will fill existing positions and provide additional client services. She stated the matching ratio is nearly 1 to 5, or 21.3 percent, of General Fund money that will access 78.7 percent in federal funding. Ms. Florence said the Governor is recommending two compliance investigator positions to the Nevada Equal Rights Commission. She stated DETR can continue to make progress in addressing the growing backlog of cases with the two compliance investigator positions.
Ms. Florence stated during the last Legislative session, a new office building in Las Vegas was proposed to consolidate DETR administrative operations. Ms. Florence said there were some concerns at that time about locating a State office building on Bureau of Land Management (BLM) land. She stated DETR is proposing to purchase land near the Bradley Building to complete another State complex in Las Vegas. Ms. Florence said DETR is proposing to expand the building from 40,000 square feet to 60,000 square feet. She stated $12 million would be utilized from additional Reed Act funds, and $3 million in previously approved Reed Act funds will be used. Ms. Florence said $600,000 in State rents will be saved and bonds will not have to be used.
Ms. Florence noted during the last Legislative session, a major rewrite of the Unemployment Insurance Contributions Program was discussed. She said DETR modified the project in July 2002 to provide for Internet business registration and tax filing. Ms. Florence explained the project was delayed by the need to implement employment benefits over the past year. She stated DETR is proposing 8.5 new positions in information technology to work on new and expanding technology.
Ms. Florence cited page 5 in the handout, the Governor’s 3 percent General Fund reduction. She stated DETR areas affected were the Nevada Equal Rights Commission and Vocational Rehabilitation services. She added both divisions would experience a net gain with the Governor’s support in matching funds.
Senator Tiffany questioned the impact on client services because it appears the blind and the visually impaired will experience a reduction in services. Ms. Florence replied there is actually a net gain in client services. She explained the Governor’s 3 percent General Fund reduction, coupled with matching funds recommended by the Governor for 2002, and anticipated matching fund increases for 2004 and 2005, there would be an overall increase in funds available for client services.
Ms. Florence stated two bill draft requests (BDR) will be coming before the committee. She stated one BDR affects the Employment Security Division Nevada Revised Statutes (NRS) chapter 612. She noted one aspect of the BDR complies with recommendations made by the Legislative auditor to provide additional tools in collections of over payments. Ms. Florence said other aspects of the BDR relate to expansion of incumbent worker training and relief to employers who have on-call workers.
Ms. Florence stated the second BDR addresses Nevada Equal Rights Commission compliance to the Legislative auditor’s recommendation to model the charge prioritization process for complaints of discrimination. Ms. Florence said the current statute requires DETR to hold an informal settlement conference in each case. She stated a conference for each case is not possible and hopes this BDR will allow DETR to accomplish this goal.
Ms. Florence referenced Nevada JobConnect on page 11 of the handout, noting a total of 193,533 persons utilized JobConnect in 2002. She stated the total does not reflect those persons who accessed JobConnect over the Internet.
Ms. Florence noted pages 13 and 14 of the handout indicate industrial employment in Nevada exceeds the national average, and Nevada unemployment rates are below the national average. She stated excessive unemployment claims and continued claims in 2002 were attributed to the events of September 11. Ms. Florence noted on page 17 the unemployment insurance trust fund balance is $444 million, and the DETR solvency requirement is $345 million. She stated DETR was able to weather increased claims without having to increase employer taxes. She noted employer taxes have not increased during the past 4 years.
Ms. Florence referred to page 18 of the handout, citing elimination of the administrative services officer position and the addition of a maintenance repair worker to support the administrative offices in Carson City.
Ms. Florence cited page 19 of the handout, information development and processing. She noted the department has demonstrated the worth of investing in information technology over the past 3 biennia because DETR can now perform many tasks over the telephone and Internet. She said DETR is clearly in line with the Governor’s e-commerce initiative, and DETR is often given access to federal funding for these projects.
Senator Tiffany asked whether DETR accepts credit cards over the Internet or will accept them in the future. Ms. Florence responded that DETR does not yet accept credit cards over the Internet. She stated DETR is currently developing a plan for that capability. She said DETR is moving on many information technology fronts, including the overhaul of 25 and 30 year mainframe applications and extremely large databases. She explained DETR is moving toward a data warehouse, Internet expansion into business registration and payment, and expansion of DETR capacity on Internet claims filing.
Senator Tiffany asked if the information technology plan will be accomplished quickly or over several years. Ms. Florence replied several information technology plans will be accomplished within 1 year. She noted Internet-claims filing and payment process will be accomplished by September 30, 2004.
Ms. Florence drew attention to page 21 of the handout from the Employment Security Division. She stated this account provides for the unemployment insurance compensation program and employment services. She said DETR is a major partner in Nevada’s JobConnect system. Ms. Florence stated the major request related to this budget is the reinstatement of 30 intermittent staff positions. She explained positions are filled as demand increases. Ms. Florence said with over 400 staff, DETR has a significant amount of personal computer and vehicle replacement as they age.
Ms. Florence referenced page 22, the welfare-to-work (WTW) account. She said this account is closing. She explained clients currently being served by the program are being dual enrolled in other assistance programs such as Title I, Workforce Investment Act, the Career Enhancement Program, and Vocational Rehabilitation. Ms. Florence stated she does not anticipate any interruption of service for persons transitioning from the WTW program to other DETR and welfare programs.
Senator Tiffany questioned whether the federal government would reinstate some funding for Welfare-to-Work. Ms. Florence replied there are no plans to reinstate funds.
Ms. Florence stated the major issue with the career enhancement program is provision of additional funds above the base to expand employment and training opportunities and incumbent worker training. She stated the employment security special fund revenue is available for programs not federally funded. She said major issues relate to Employment Security Division infrastructure needs and the new building in Las Vegas. Ms. Florence said the only issue in the rehabilitation administration account is transferring one position from that budget account to the vocational rehabilitation account because added quality assurance responsibilities have redefined duties.
Ms. Florence stated 20 new positions are being proposed in the Bureau of Disability Adjudication. She explained this account is fully federally funded and dependent upon resources received from SSA. She stated productivity factors are improving because last year Nevada led the nation in productivity per worker in social security determination.
Ms. Florence stated the Governor is recommending full federal funding in vocational rehabilitation which will result in increased client-service funding. She said page 29 of the handout shows employment outcomes have risen steadily from 1992 through 2002, and page 30 demonstrates the average cost of providing services has remained generally stable.
Ms. Florence noted page 31 describes the DETR Office of Disability Employment Policy. She stated the Department of Labor has structured a similar initiative at the federal level. She said the President’s task force on people with disabilities concluded its work during the summer, and the Department of Labor has created a similar Office of Disability Employment Policy. Ms. Florence stated Nevada is in a good position to demonstrate its dedication to this issue regarding all employment services provided by DETR.
Ms. Florence referenced page 32, the Client Assistance Program required by the Rehabilitation Act for receipt of federal funds. She stated the purpose of the program is early intervention to ensure an individual is being properly served in hearings by the rehabilitation division. Ms. Florence noted one position would be eliminated from the Services to the Blind budget account. Ms. Florence referenced page 38 citing the Nevada Equal Rights Commission budget. She stated the Governor is recommending two new positions to handle complaints and provide more timely determinations.
Senator Tiffany asked whether the vocational rehabilitation numbers and waiting time to be approved have changed. Ms. Florence replied the proposed two new positions would greatly improve the wait time. She explained the wait time for an eligibility determination is between 80 and 90 days.
NEVADA DEPARTMENT OF TRANSPORTATION – BUDGET OVERVIEW
Tom Stephens, P.E., Director, Nevada Department of Transportation (NDOT), referenced the presentation handout (Exhibit F. Original is on file in the Research Library.). He stated there are 1700 employees at NDOT and a budget proposal of over $600 million per year in each of the next 2 years. Mr. Stephens stressed NDOT revenues are generated from user-based fees and taxes because there is no General Fund money in NDOT’s budget. He explained during the past 2 years NDOT has completed many projects. He stated Nevada’s major highways are the best maintained in the nation, the Cheyenne, Sahara, and Durango interchanges have been completed in Las Vegas, phase one of the US 95 widening project in Las Vegas has been completed, and I-15 widening from Las Vegas to Primm has been completed. He explained projects under construction today include the Reno “spaghetti bowl,” US 95 bridges in northwest Las Vegas, the Hoover Dam bypass, the Fallon to Fernley phase one project, and the widening of US 95 south of Railroad Pass.
Senator Raggio asked for an explanation of the Fallon to Fernley phase one project. Mr. Stephens replied this project is widening the highway from outside of Fallon to the junction where US 50 and US 50 Alternate split. He explained the highway will be widened to four lanes with a center left turn lane.
Mr. Stephens stated projects going out for bid this year are the Rainbow and Lamb interchanges in Las Vegas, the Rancho Drive widening in Las Vegas, the Henderson “spaghetti bowl,” the Saint Rose Parkway widening in Henderson, the US 95 phase three, the Clearacre interchange in Reno, the Carson bypass phase one, the Freeway Arterial System of Transportation (FAST) program, and the Carson City Bypass.
Senator Raggio asked for an explanation of FAST. Mr. Stephens replied the FAST program is a system of signs, ramp meters, and television cameras to be installed on the US 95 and I-15 freeways in Las Vegas to monitor the traffic, offer people alternative routes, and respond to accidents.
Mr. Stephens stated tab D in the handout shows most roads are in rural areas of Nevada, while 90 percent of Nevada’s population resides in Clark and Washoe Counties and Carson City. He explained approximately 81 percent of NDOT money for capacity projects went to Clark County, and approximately 76 percent of the maintenance projects went to rural areas where the roads are located. He said in FY 2002 NDOT performed more maintenance projects on the local streets in Clark County because they had been ignored while the freeway projects were under construction.
Mr. Stephens referred to tab E, NDOT’s 10-year cash projection. Senator Raggio asked for an explanation of the difference between $705 million in FY 2005 NDOT miscellaneous revenue and receipts, and $458 million in FY 2002. Mr. Stephens replied the difference is from bond proceeds. Senator Raggio asked if the bonds are revenue bonds. Mr. Stephens replied yes, they are revenue bonds supported by future federal and state monies.
Assemblyman Hettrick asked what impact bond proceeds have on operations, and whether NDOT is allowed to use future Highway Fund monies to pay off bond proceeds. Mr. Stephens replied that on page 2 of the 10-year cash flow projection, bond expenditures began in FY 2001 and continue through FY 2007. Assemblyman Hettrick asked whether the highway fund balance will be sufficient. Mr. Stephens referred to page 2 of the 10-year cash flow projection and replied NDOT is not actually spending $540 million for capital improvements in the current fiscal year. He stated the year the bonds are sold shows an automatic expenditure, but that money will be paid out over the next year from the $199 million in bonds NDOT is selling this year. He explained $199 million in bonds will be sold in the near future but it is shown as an immediate expense.
Mr. Marvel asked where acquisitions are shown. Mr. Stephens replied NDOT does not have acquisitions shown separately, but they would be in capital improvements. He stated NDOT could certainly give the committee a breakout on acquisitions. Assemblyman Marvel asked whether road construction is included in capital improvements and can be broken out. Mr. Stephens replied yes, it is, and NDOT can provide a breakout on road construction.
Senator Raggio asked for an explanation of the line-item bond expenditures. Mr. Stephens replied the bond expenditures item was a transfer to capital improvements, and in future years the capital improvements account will grow. Senator Raggio asked whether debt service on the bonds is in the bond interest and redemption fund. Mr. Stephens replied yes, it is, and on page 2 of the cash flow projection the bond interest and redemption fund grows between FY 2003 and FY 2007, stabilizes between FY 2008 and FY 2010, and decreases between FY 2011 and FY 2012 due to retirement of the bonds that were sold earlier. He stated NDOT is proposing to sell 20-year bonds at 6 percent interest and the $199 million in bonds being sold now are calculated at a 5 percent retirement rate. He said NDOT has projects ready to go, and spending this kind of bond money now will create approximately 10,000 jobs in Nevada’s economy over a 2-year period.
Mr. Stephens explained the Hoover bypass was put out to bid by the federal government at $28.5 million, and it received 13 bids. He said the low bid was $21.5 million, or $7 million under the $28.5 million. Mr. Stephens stated the bond money would be spent on safety and congestion relief projects.
Mr. Marvel asked whether most of the labor force on the Hoover bypass would be living in Nevada or Arizona. Mr. Stephens replied Nevada, because there is no community in Arizona near Hoover Dam, and all construction would be staged out of Las Vegas. Mr. Stephens explained nothing will be used in the construction project that is prefabricated or built at a different location and then shipped to Nevada. He stated everything will be built in Nevada utilizing Nevada employees, and this will help Nevada’s economy.
Mr. Stephens explained the Nevada approach to the Hoover bypass will go to bid in June, and this fall the river bridge will go to bid. He stated both bids will generate another $140 million worth of work in addition to any shown in the NDOT 10-year cash flow projection. He said $140 million represents additional money NDOT will receive from working with Nevada and Arizona congressional delegations. He stated the 10-year cash flow projection reflects a $20 million Nevada appropriation in the current fiscal year, a $20 million appropriation from Arizona, and an additional $200 million from the federal government. Mr. Stephens explained the bill now in Congress has an additional $15.75 million for the Hoover bypass and language that authorizes the transportation secretary to sell grant anticipation revenue vehicle (GARVEE) bonds to fund the river bridge. He added GARVEE bonds are from the Federal Reserve System.
Assemblyman Perkins stated his concern was the increase in bond expenditure over the 10-year projection and reaching capacity at a time when Nevada may want to have more flexible spending. He asked what would be accomplished if millions of dollars are paid on bond interest instead of actual construction. Mr. Stephens replied bond interest would be $70 million per year in the out years, but the income would be $600 million in FY 2013. He referred to the 10-year cash flow projection and stated NDOT will continue operations into the future at least at the same level as in the past without bonds.
Senator Raggio stated $70 million will be spent on debt service on the bonds in the out years. He noted NDOT will not have the money in the out years it has today for the projects currently under construction at a lesser cost than they will cost in future years. Mr. Stephens agreed.
Assemblywoman Chowning asked whether Nevada contractors would be used for the Hoover bypass. Mr. Stephens replied yes, absolutely. He explained Nevada licensed general contractors and subcontractors will be utilized. He stated Nevada cannot dictate to the Federal government that only Nevada contractors be used on any project receiving federal funding.
Mrs. Chowning asked the wage standard for the Hoover bypass construction project. Mr. Stephens replied the Nevada wage standard on the Nevada approach would be used. He stated he could find out the wage standard used on the river bridge because the Federal Highway Administration (FHWA) would administer the contract.
Mr. Stephens explained the Highway Fund balance decreases in the 10-year cash flow projection. He stated $100 million is needed for cash working capital and no innovative assumptions have been made. He added NDOT spent only $212 million in FY 2002 because after September 11, 2001, NDOT geared the program down. He said NDOT can adjust and govern a program, given a few months notice, because NDOT does not want to run out of money. He explained NDOT closely monitors the Highway Fund on a weekly basis.
Mr. Stephens referred to the inflation plus growth chart in the handout. He stated population growth steadily increases between FY 2001 and FY 2005. Assemblyman Beers said state demographic population forecasts indicate lower population growth than NDOT forecasts. Mr. Beers asked how revenue will be affected if State demographic population forecasts are accurate. Mr. Stephens replied NDOT does not solely depend on population growth because it looks at vehicle miles. He said there was no fallout after September 11 because more people started driving.
Mr. Stephens referred to tab G in the handout. He stated 42 new positions are requested in order of priority. He explained the majority of new positions are maintenance positions. He said the transportation tech III position is federally funded and travels to general aviation airports in the State to perform an analysis of airport conditions.
Mr. Stephens stressed NDOT’s partnership with local governments. He explained each metropolitan area in the State formulates a transportation improvement program. He stated NDOT continually works in cooperation with local governments in Clark and Washoe Counties and Carson City in a comprehensive manner to ensure there are no conflicts. He explained local governments have regional transportation commissions with specialized transportation staff working with them to formulate this program.
Mr. Stephens referenced tab I, the County Consultation Process. He explained NDOT travels to each of the 14 counties without metropolitan planning organization status to make presentations to county commissions. He stated NDOT works with county staff to formulate a transportation, maintenance, or enhancements program.
Mr. Stephens said all major construction projects are in the three metropolitan planning organizations of Clark and Washoe Counties and Carson City and funded by federal monies. He cited the importance of the Stewardship Plan described in tab J. He explained the Stewardship Plan is an agreement between FHWA and NDOT allowing for the transfer of federal funds to local governments for local projects. Mr. Stephens noted there are various projects throughout the state under the Stewardship Plan.
Mr. Stephens cited tab K, the pending legislation to implement a package of tax increases to support transportation improvements in Clark and Washoe Counties. He said the initiatives were taken to voters in their respective counties. He explained NDOT supports the initiatives because NDOT is able to concentrate on State freeways if counties spend more money on roads and there is less pressure on the State to grant money for local roads.
Mr. Stephens explained every 6 years a new federal highway bill is passed. He said in 1991 the IntermodaI Surface Transportation Efficiency Act (ISTEA) was passed giving departments of transportation throughout the country a huge increase in funding. He explained ISTEA was renewed in 1998 and called the Transportation Equity Act for the 21st Century (TEA-21). Mr. Stephens stated Nevada’s share of federal highway money increased from $130 million per year to $200 million per year with the passage of TEA-21. He said TEA-21 is expiring on October 1, 2003. Mr. Stephens stressed he was recently elected vice president of the American Association of State Highway and Transportation Officials (AASHTO). He said in this position he will chair the reauthorization committee for all state departments of transportation representing 52 people. He explained he will be testifying before Congress a number of times on behalf of AASHTO and putting in a word for Nevada.
Mr. Stephens explained tab M shows how much Nevada will be sanctioned if the State does not pass the .08 blood alcohol content as the standard for impaired driving. He stated there will be two bills before the Legislature this session. He said one bill covers driving a motor vehicle on the highways while under the influence, and one bill addresses driving a motorized boat on lakes while under the influence. He stressed the sanctions are costly.
Senator Raggio asked whether the sanctions will be mandatory, because in past years the sanctions have not been enforced. Mr. Stephens replied the sanctions will be mandatory and will be enforced.
Mr. Stephens explained in tab O the cost per mile of sound wall construction is $2 million. He stated the federal government will pay 50 percent of sound wall construction expense. He said for sound wall retrofit construction projects, state monies will pay the entire cost. Mr. Stephens explained NDOT is trying to install sound walls as a part of the new “spaghetti bowl” projects. Mr. Stephens stated the Davis-Bacon Act on wage determination for contractors and subcontractors will apply to the Hoover Bridge.
DEPARTMENT OF MOTOR VEHICLES – BUDGET OVERVIEW
Virginia Lewis, Director, Department of Motor Vehicles (DMV), read from a 20 page budget Overview (Exhibit G. Original is on file in the Research Library.) and referenced DMV’s handout, Department of Motor Vehicles Budget Overview (Exhibit H. Original is on file in the Research Library.). Ms. Lewis explained the accomplishments and savings by DMV over the past 2 years. She stated DMV goals are to provide progressive, responsive service delivery to DMV customers, enhance capabilities through the use of emerging technologies, protect state consumers and businesses against fraud and unfair business practices, develop programs to recognize and reward DMV employees for exceptional service, provide opportunities for continued growth, and responsibly manage DMV resources enabling DMV to fulfill its mission.
Ms. Lewis requested two DMV technician positions for the renewal by mail section to bring the department in compliance with NRS 353.250(3), two driver/warehouse workers for the license plate factory, one personnel analyst, six program officer positions within Management Services for training, two and one half full time equivalency (FTE) positions for title production, two FTEs for insurance, one chief accountant position, and one compliance enforcement investigator.
Senator Raggio asked what has been done about alleviating lack of information coming from insurance companies. Ms. Lewis replied DMV is getting books of business from larger insurance companies and some of the smaller insurance companies. She explained books of business are client listings from specific business entities. Senator Raggio asked how DMV works with an insurance company not providing a book of business. Ms. Lewis replied DMV could work through the Division of Insurance because it oversees insurance companies.
Assemblyman Beers asked whether sending out notices to uninsured motorists would be continued. Ms. Lewis deferred the question to Dana Mathiesen, Deputy Director, Department of Motor Vehicles. Mrs. Mathiesen replied the insurance verification program is working very well. She stated the American Motor Vehicle Association (AMVA) has been working during the past year on a formula for all states to identify insured motorists. She said DMV tested the program after enhancements were made, and over 200,000 records on file have been matched with insurance.
Senator Mathews asked whether the DMV sells lists. Ms. Lewis replied lists are released to law enforcement, some companies under contract with DMV, and local city governments to use for directories and vehicle safety recalls. Senator Mathews asked whether insurance books of business are sold. Ms. Lewis replied insurance books of business are for use by DMV to link an insurance record to the DMV registration database. She stated DMV would never sell an insurance book of business. Senator Mathews asked whether university license plates have to be changed. Ms. Lewis replied the university plates were exempt from the reissue.
Ms. Lewis stated DMV is requesting funding for a public education campaign; Q -Matic enhancements, the system to serve clients by number; upgrades; expanding the networking system to Carson City headquarters; a storage area network (SAN); replacement of 11 servers; maintenance on two router switches; enhancing the local area network (LAN) band within Carson City headquarters; central services equipment; a fraud unit to protect Nevadans against vehicle and identification fraud; expansion of the management services and programs training unit; and bringing DMV workstation equipment into compliance by being ergonomically comfortable.
Ms. Lewis stressed the average wait time in a Clark County metropolitan DMV office is 59 minutes because Nevada remains the fastest growing state in the nation and Las Vegas is the fastest growing city in the nation.
Senator Raggio asked why no one is taking advantage of emissions renewals at emission stations. Ms. Lewis replied software development is in process to put on emission analyzers. She stated DMV has over 400 emission stations throughout Nevada, and if 200 participate in emission software enhancement a huge utilization impact will be realized.
Assemblyman Beers asked whether DMV had given thought to imposing a surcharge to persons who come into DMV offices when they could utilize one of DMV’s technologies. Ms. Lewis replied yes, DMV has thought of it. She explained a surcharge is a drastic approach because many DMV customers are cash customers without a checking account or credit card. Assemblyman Beers asked what percentage of cash money is collected in a DMV office. Ms. Lewis replied DMV will supply Assemblyman Beers with this information.
Senator Cegavske asked how many customers a DMV employee handles in one day. Ms. Lewis replied around 40 customers per technician per day. Senator Cegavske asked whether DMV has breakdowns on types and numbers of transactions at different DMV metropolitan offices. Ms. Lewis replied it does. She explained when DMV refers to customer counts it is cumulative data because several types of transactions can be completed at one window.
Senator Cegavske asked where the money in the pollution control account is from and how it is spent. Ms. Lewis replied counties apply for grants from the pollution control account. She explained a $500,000 minimum reserve is required and counties apply for grants from the excess of the reserve.
Senator Raggio asked whether the smog certificate fee is being raised from $5 to $7 beginning July 1, 2003, resulting in $2.5 million additional annual revenue. She explained DMV’s department of administration is submitting a bill draft request (BDR) increasing the fee from $5 to $7. She stated the proposal gives an additional dollar to Clark and Washoe Counties, removes those counties from the priority list, and gives them ability to apply for any excess reserves.
Senator Raggio asked whether half of the additional revenue or $1.3 million goes to Clark and Washoe Counties. He asked whether the remaining proceeds or $746,165 in FY 2003 and FY 2004 and $1 million in FY 2004 and FY 2005 go to the Division of Environmental Protection and the Department of Agriculture. He also asked whether $517,427 in FY 2003 and FY 2004 and $775,221 in FY 2004 and FY 2005 goes to the Pollution Control account reserve. Ms. Lewis replied the 5-year projection for the pollution control account is based on a $7 certification fee. She explained it identifies all monies agencies have reflected in the Executive Budget and remaining monies in the reserve.
Senator Raggio asked whether some of the reserve money is going to construction of an emission laboratory in Las Vegas. Ms. Lewis replied the approach DMV took in this forecast was identification of every future expense in the program. She explained DMV identified the need for an additional emission lab in Las Vegas. She said when the projections were done, some monies were isolated in a set-aside fund for a future need like an emission laboratory in Las Vegas.
Ms. Lewis stated DMV is proposing a staffing package ensuring improved coverage at service windows in Las Vegas and Reno, Monday through Saturday. She stated DMV is asking for 162 technicians, 17 supervisors, and 5 revenue positions. She explained the additional positions are needed to support increased staffing required for change banks at the start and end of the day.
Senator Raggio asked how many new FTEs are being requested for the entire budget. Ms. Lewis replied 184, to address wait times. She stated other requested positions total 29.
Ms. Lewis explained implementation for this proposal is 17 supervisors and staff. The Carey office will begin training in August 2003 and staffing in October, Sahara office staff begins training in October and staffing in December, Flamingo office staff begins training in December and staffing in February 2004, Henderson office staff begins training in February 2004 and staffing in April 2004, Carson City staff begins training in April 2004 and staffing in June 2004, and Reno staff begins training in June 2004 and staffing in August 2004. She stated this approach is responsive because DMV will address the most critical offices first and evaluate wait time improvements at kiosks and emission enhancements.
Ms. Lewis explained the Executive Budget addresses three noteworthy revenue -neutral realignments within the department. She stressed DMV has moved 18 positions from field and central services to compliance enforcement in order to deliver efficient and effective service in licensing. Ms. Lewis stated six positions have been realigned from field services to motor carrier services in branch offices. She said four positions have been moved to information technology (IT) from field services because computer application testers have been performing IT functions since DMV went live in 1999.
Ms. Lewis stated the positions function as super users of the application and serve as first point of contact when technicians have problems with a computer application. She said computer application testers trouble shoot issues, guide the technicians through complex transactions, or interface with programmers in IT if a technical issue arises. Ms. Lewis explained the budget request realigns DMV’s personnel unit from administrative services to the director’s office. She stated the previous reporting structure through administrative services created a less than equitable role for the personnel officer in carrying out responsibilities counseling all division administrators.
Senator Cegavske asked whether overtime is paid to technicians between 5 p.m. and 6:30 p.m. Ms. Lewis replied yes, DMV pays overtime to technicians if they are serving customers. Senator Cegavske asked what hours DMV is open. Ms. Lewis replied DMV opens at 8 a.m. and closes at 5 p.m. Senator Cegavske asked whether DMV has considered opening at 7 a.m. until 7 p.m. Ms. Lewis replied when the staffing proposal was developed, DMV had four options. She stated DMV met with Governor Guinn to consider numbers and expand hours. She said requested staff would have to double to cover a 12-hour day.
Senator Raggio said a BDR should be presented to increase the cap from 22 percent to 29 percent, and asked whether it is necessary to accommodate the number of requested positions. Ms. Lewis replied yes, and referred to the worksheet in the handout. She stated one projection is made in the Executive Budget for FY 2004 and FY 2005 utilizing the 22 -percent cap and one projection is made using the 29 -percent cap. She said the staffing proposal is a Highway Fund request. Senator Raggio noted the staffing percentage is 28.2 percent in the second FY and asked whether that is the reason for the 29 percent cap request. Ms. Lewis replied it is. Senator Raggio asked whether the 29 percent is exclusive of the gasoline tax. Ms. Lewis replied yes. Senator Raggio asked whether there is another 1 -percent request on the gasoline tax. Ms. Lewis replied no, it is not part of DMV’s budget.
Assemblyman Beers asked if the cap is at 22 percent now. Ms. Lewis replied yes. Assemblyman Beers asked how the 7 -percent increase would be used. Ms. Lewis replied the monies would remain in the highway department. Assemblyman Beers noted no one likes to stand in line at DMV and asked if the choices are standing in line once a year at DMV or enduring worse traffic congestion every day of the year. Ms. Lewis replied DMV has requested what is needed to increase and improve services.
Assemblyman Hettrick asked whether DMV has investigated going to four 10 hour days without additional staffing and paying overtime. Ms. Lewis replied DMV had looked at expanding hours of service and already implemented four 10-hour days to enable employees two consecutive days off because DMV offices are open Monday through Saturday. She stated this has worked very well. She said if DMV went from 7 a.m. to 7 p.m. window coverage, a large number of additional staff would be required. Mr. Hettrick stated he would be interested in seeing the numbers because it appears if DMV went to a 12-hour day, a large number of additional staff should not be required. Mr. Hettrick noted a 12-hour day might be more cost effective than paying overtime. Ms. Lewis replied DMV would certainly consider all options.
Assemblyman Griffin asked how many clients visit a DMV office in 1 month. Ms. Lewis replied, at any one of the Las Vegas offices, DMV serves an average of 1,000 clients per day. Assemblyman Griffin asked how many of the 1,000 clients could utilize DMV’s website. Ms. Lewis explained for the first 6 months of FY 2003, 44 percent of registration renewals were processed in a DMV office, 268,000 renewals in 6 months. She said if renewals are clean transactions, there are alternatives. She stated DMV is trying to target cash customers to utilize kiosks or emission stations. Assemblyman Griffin asked whether alternative methods to DMV transactions could be promoted to those who could utilize them. Ms. Lewis replied yes, one DMV function is educating the public about the alternatives. She stated DMV has a request in the budget for $100,000 each year for 5 years with a portion of the $100,000 for public education.
Senator Raggio noted a significant number of people are reluctant to conduct DMV transactions over the Internet and no amount of information will change their minds.
Ms. Lewis called attention to DMV’s capital improvement projects. She explained DMV has requested a full-service facility for North Las Vegas to offer commercial drivers license testing. She stated North Las Vegas is a replacement for the Carey facility since it is not a State-owned building. Ms. Lewis said the Carey facility lease would expire in December 2005.
Ms. Lewis explained DMV has requested remodeling of service windows and information counters at the Sahara office. She stated, as part of the 10-year plan, DMV has indicated to the public works board there will be a need for additional full-service offices in Clark and Washoe Counties. She said the public works board included funds for the next biennium to address land acquisition in Washoe County. She stated this is a new approach because it allows the State to purchase a site and build a facility later. Ms. Lewis explained the Highway Fund authorization for DMV budgets cannot exceed 22 percent of DMV monies collected and distributed to the Highway Fund, according to NRS 408.235. She stated the 22 percent funding cap has been in place since the 1950s and represents an arbitrary limitation, given the present demand for DMV services.
Ms. Lewis said the State has invested a large amount of resources in DMV. She stated DMV has delivered on its commitment to improve services although that commitment has not been completed. She explained DMV affects many Nevadans, and settling for less than acceptable service levels does not make sense. Ms. Lewis asked the committee to allow DMV to continue to progress with the resources it needs to provide efficient service. She stated DMV holds itself to the highest possible standards.
Senator Raggio asked why $670,000 is needed at this time for a toll-free telephone number. Ms. Lewis replied that was submitted in August when the agency request budget was submitted. She stated the savings DMV has experienced from modification to the toll free line should significantly reduce or eliminate the request.
Assemblywoman Chowning noted a large amount of money has already been spent on alternative methods of transacting DMV functions. She asked how many more dollars are going into alternative methods of transacting DMV functions when the majority of methods are renewing through mail and walking into a DMV office. Ms. Lewis replied DMV is going to participate in technology day to display future ideas on getting all transactions out of the DMV office. She stated the future is on the web and there is more DMV can do.
Senator Tiffany asked whether DMV accepts electronic bank transfers. Ms. Lewis replied at this time DMV does not accept them.
Senator Tiffany asked whether the functions performed at the kiosk and on the Web are identical. Ms. Lewis replied registration renewals and drivers license renewals are performed at the kiosk because these functions do not require technician intervention. She stated registration renewals, drivers license renewals, fee estimation for vehicle registration, and driving record access can be performed on the website.
Senator Tiffany asked whether the kiosk could offer the same functions as the website. Ms. Lewis replied yes, the kiosk could do anything it is programmed to do.
The Chairman adjourned the meeting at 4:06 pm.
Pamela Carter,
Committee Secretary
APPROVED BY:
Senator William J. Raggio, Chairman
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Assemblyman Morse Arberry Jr., Chairman
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