MINUTES OF THE
SENATE Committee on Finance
Seventy-second Session
February 4, 2003
The Senate Committee on Financewas called to order by Chairman William J. Raggio, at 8:29 a.m., on Tuesday, February 4, 2003, in Room 2134 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. Exhibit B is the Attendance Roster. All exhibits are available and on file at the Research Library of the Legislative Counsel Bureau.
COMMITTEE MEMBERS PRESENT:
Senator William J. Raggio, Chairman
Senator Raymond D. Rawson, Vice Chairman
Senator Barbara K. Cegavske
Senator Bob Coffin
Senator Bernice Mathews
Senator Dean A. Rhoads
Senator Sandra J. Tiffany
STAFF MEMBERS PRESENT:
Gary L. Ghiggeri, Senate Fiscal Analyst
Bob Guernsey, Principal Deputy Fiscal Analyst
Judy Coolbaugh, Committee Secretary
OTHERS PRESENT:
Scott K. Sisco, Interim Director, Department of Cultural Affairs
John P. Comeaux, Director, Department of Administration
Marcia W. Britton, Administrator, Division of Museums and History, Department of Cultural Affairs
Ronald M. James, State Historic Preservation Officer, Office of Historic Preservation, Department of Cultural Affairs
Caryl Gobel, Service Officer, Veterans of the Vietnam War, Inc.
Sara F. Jones, Administrator, Division of State Libraries and Archives, Department of Cultural Affairs
Susan Boskoff, Executive Director, State Arts Council, Department of Cultural Affairs
Chairman, William J. Raggio opened the meeting by welcoming back the veteran members of the Finance Committee and welcoming the new members, Senator Tiffany and Senator Cegavske.
Senator Raggio referred the Senate Committee on Finance to Standing Rules, 2003 Session (Exhibit C) for governance of this committee. Senator Raggio explained these rules are the same as the 2001 session.
SENATOR RAWSON MOVED TO ADOPT THE COMMITTEE RULES.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Senator Raggio announced the subcommittee assignments with the chairperson of each group named first as depicted on Exhibit D.
DEPARTMENT OF CULTURAL AFFAIRS
Cultural Affairs Administration – Budget Page CULTURAL-1 (Volume 1)
Budget Account 101-2892
Scott K. Sisco, Interim Director, Department of Cultural Affairs referred to his budget presentation entitled Budget Presentation to the 2003 Legislature. (Exhibit E. Original is on file in the Research Library.)
Mr. Sisco stated the Department of Cultural Affairs currently has a vacancy rate of over 12 percent due to the budget crisis and the hiring freeze.
Mr. Sisco indicated his budget presentation is broken down into six main sections. The first section provides general information about the department including major department undertakings and initiatives, an overview of the department budget cuts, funding sources, and overall budget cuts. The detail of the director’s office budget is the second section of the report followed by each of the other four divisions of the Department of Cultural Affairs.
Senator Raggio requested Mr. Sisco prepare an organizational chart for his department that shows the names of the people who head each division. Mr. Sisco said he would provide one. Mr. Sisco continued, saying the back of the report has information on funding and the Department of Cultural Affairs Capital Improvement Projects.
Mr. Sisco indicated the Governor is a strong supporter of cultural leadership and services provided by the State. The Governor is aware there are more needs than funds. He explained the cuts included in the budget presentation are not what the Governor wanted for the department, but this action is necessary given the current revenue situation.
Mr. Sisco stated his department was not asking for one more dollar than what is included in the Governor’s Executive Budget, because present economic conditions are not conducive to providing the desirable level of funding. Demand for the department’s services continues to grow as rapidly as the population. He said the Nevada Arts Council receives many more requests for services than it is able to provide. The State museums have minimal funding to maintain buildings and even less funding for updating exhibits. He added rural libraries “grapple to keep their aging bookmobiles on the road,” while all the libraries have difficulty meeting basic needs for purchasing current books.
Mr. Sisco said the Department of Cultural Affairs entered the Governor’s fundamental review process from a slightly different perspective than other State agencies. He explained suggestions submitted to the fundamental review committee recommended transfer of basic components of the Department of Cultural Affairs that effectively would have eliminated the department. As asserted the committee members, including businessmen and women and members of the public, and the process itself clearly produced a consensus that the services provided by the department are essential to citizens and visitors and for the economic diversity of the State.
Mr. Sisco stated history shows that the country has developed and prospered around communities with access to culture, the arts, museums, libraries, and the humanities. He suggested New York, San Francisco, Denver, Santa Fe, and numerous other cities have been desirable to businesses because of the availability of cultural activities. Today, he said businesses continue to look for these resources when deciding where to move and which communities to invest in. Mr. Sisco stated more and more citizens and local businesses recognize the importance of, and the need to support cultural resources.
Mr. Sisco pointed out last November Nevadans approved Question 1 providing $200 million in bond sales to protect, preserve, and improve cultural resources and they turned down two special use tax exemptions. The bond included $35 million to fund a new state museum in Las Vegas.
Mr. Sisco said no discussion on culture would be complete without discussing cultural tourism, which has become a prominent factor over the last decade in how travelers select vacation destinations. He added cultural tourism brings visitors to every community in the State, and those who travel for these purposes stay longer and spend more.
Mr. Sisco explained this is why the department feels strongly about the need for support and services provided by the Department of Cultural Affairs. Mr. Sisco distributed the Biennial Report for the Department of Cultural Affairs (Exhibit F. Original is on file in the Research Library.), which highlights the department’s mission, accomplishments, objectives, and challenges.
Mr. Sisco referred the committee to the department’s five major undertakings and initiatives depicted under the first tab in Exhibit E. The first item is the new State museum to be built in the Las Vegas Springs Preserve. A video detailing plans for the preserve was shown.
Mr. Sisco noted the environmental-and archeological-sensitive nature of the land generated considerable concerns about meeting the timelines with the amount of construction going on. Mr. Sisco indicated he has met with the State Public Works Board and the Las Vegas Springs Preserve committee, and they are currently finalizing details to enter into a cooperative agreement for Las Vegas Springs Preserve to build the project. The State Public Works Board will act as an owner/representative for the Department of Cultural Affairs, but in order to meet the project timelines and be most efficient on the project all agreed the best way to complete the museum is to build it simultaneously with the entire complex. Public works will be there to protect the State’s interests.
Mr. Sisco drew attention to the map on page 3 of Exhibit E that show the location of the new Nevada State Museum at the Las Vegas Springs Preserve. Mr. Sisco projected attendance figures will increase to 500,000 from the current 40,000 figure.
Mr. Sisco continued stating a program coordinator is required to examine all needs of the museum, how it will operate, how it will interact with the rest of the preserve, and how it will achieve the best possible outcome for the State and the visitors who will go to the facility.
Senator Cegavske asked how the large concrete artwork being erected as walls would be financed. Mr. Sisco answered those are actually sound walls filled with hay. The mural artwork on the walls is receiving mixed reviews, he said.
Senator Cegavske inquired who was paying the costs. Mr. Sisco said he believed the Clark County Water District paid for the project. He further said it was definitely not part of the Department of Cultural Affairs bond issue.
Senator Raggio requested that Mr. Sisco investigate the financial arrangements for the walls and report back to the committee. Mr. Sisco agreed to do so.
Senator Rhoads asked how much Question 1 money the Department of Cultural Affairs would receive if any. Mr. Sisco answered that $35 million was specifically dedicated to build the museum.
Senator Raggio inquired about the status of the museum at Lorenzi Park.
Mr. Sisco answered that originally the City of Las Vegas was interested in purchasing the museum from the Department of Cultural Affairs, and those funds would be used to help build the new museum. He said 3 years ago the department recognized the need to move the museum as the urban area of Las Vegas developed around it and tour buses were no longer going there. Since that time, the City of Las Vegas reviewed the lease on the land and found a contractual clause that states if the Department of Cultural Affairs stops operating the museum there, the land reverts to the City of Las Vegas free and clear.
Mr. Sisco explained the Department of Cultural Affairs has requested during the last four Legislative sessions the need for construction of a southern Nevada records center in Las Vegas. He stated the department is exploring the possibility of converting the old museum building at Lorenzi Park into a combined departmental set of offices for the southern Nevada records center, the Library for the Blind and Physically Handicapped, the Nevada Arts Council, the southern Nevada office of the humanities, and a cultural center.
Senator Raggio inquired about the necessity for having a southern Nevada records center.
Mr. Sisco responded the expense of shipping records to the Carson City center has been a major problem. Records currently in storage in Las Vegas could be moved from the high-rent office space where they are now stored to a southern Nevada records center, and save the State a lot of money.
Senator Raggio asked Mr. Sisco to provide the committee with an analysis of how this will save money for the State in the long run. Mr. Sisco said his department would do that.
Senator Raggio asked what the timelines on the cultural center and issuance of bonds would be. Mr. Sisco indicated the treasurer is ready to start issuing bonds as soon as the timelines are provided to him for drawdowns on the bonds.
Senator Raggio asked whether there is funding in the budget to service these bonds. Mr. Sisco deferred the question to Mr. Comeaux.
John P. Comeaux, Director, Department of Administration said he did not believe there was money in the budget to service the bonds.
Senator Raggio inquired how the project would be financed since the bonds were passed. The State still has responsibility for servicing the bonds. Senator Raggio requested Mr. Comeaux to work with the staff on developing financial arrangements. Mr. Comeaux said he would.
Mr. Sisco said his department had figures for the cost of the southern Nevada records center and would update those, and get the information to the committee’s staff as soon as possible.
Mr. Sisco discussed the Commission for Cultural Affairs, established by the Legislature in 1991, to preserve historic structures and establish a network of community cultural centers throughout the State. Between 1993 and 2002, sixty projects have benefited from the Commission of Cultural Affairs funding. Forty-four of those projects have opened, and over 556,000 people have visited those facilities, he said. In a Commission for Economic Development study it was reported that visits to cultural-affairs-supported facilities resulted in a $19 million contribution to the State’s economy. Mr. Sisco further commented that construction projects and the resulting facilities have made a $103 million impact on the State’s economy.
Mr. Sisco reviewed the Oasis conferences sponsored by a group of cultural organizations and public agencies. He explained the purpose of the conferences was to develop a sense of community and common purpose for people involved in arts, education, libraries, humanities, preservation, and history. This year the Department of Cultural Affairs and the Nevada Humanities Committee will host the 2003 Oasis Conference in Carson City. The conference will address a number of topics including accessibility, technology, museum programming, literacy, public art, and the development of cultural capital.
Senator Raggio asked what Oasis stood for. Mr. Sisco said Oasis is not an acronym, but the title is to indicate this is not a cultural wasteland.
Senator Raggio inquired whether there is funding in the budget for the Oasis Conference. Mr. Sisco answered there was no funding request in the budget. Registration fees for the conference provide the funding.
Senator Raggio referred back to the Las Vegas Springs Preserve and asked whether it includes funding other than bond proceeds. He asked if private funds are available. Mr. Sisco said the $35 million from the bond issue is the total sum available.
Mr. Sisco reported on the Sarah Winnemucca Statue Project. The Legislature passed A.B. 267 of the 71st Session, now Nevada Revised Statutes (NRS) Chapter 215, which provides for a committee to select an artist to create and approve the design for the Sarah Winnemucca Statue. The statue is to be placed in the United States Capitol Building. As of January 2003, the Nevada Women’s History Project has raised $32,283. The projected date of completion is summer 2004.
Senator Raggio asked what the goal is for fund raising. Mr. Sisco answered the goal is $150,000.
Mr. Sisco discussed the Nevada History CD-ROM Project initiative. Seed money was provided by the 1999 Legislature in the amount of $50,000 along with an additional $10,000 Nevada Bell Grant. The CD-ROM Project, entitled, “Nevada Riches: The Land and People of the Silver State,” has been completed and is being shipped to schools throughout the State.
Mr. Sisco directed the committee’s attention to several charts and graphs that summarize the Department of Cultural Affairs Fiscal Year (FY) 2003 through FY 2005 budget request.
For the entire department there is $591,069 in General Fund budget cuts. Of that amount, the Governor restored $92,964. He stated the department had a staff reduction of 10.89 full-time equivalent (FTE) employees. He added only enhancement unit is requested for the entire department in the amount of $39,600 for rent of the Las Vegas Library for the Blind and Physically Handicapped. He said there are requests from various funding sources to replace five pieces of equipment.
Mr. Sisco referred to the General Fund expenditure pie chart on page 5 of in Exhibit E that shows Department of Cultural Affairs at a 0.48 percent sliver of the total pie. He also commented on the matrix showing the percentage of total state General Fund appropriations tracked by year since the department’s creation in 1993. Increases in FY 2004 and FY 2005 are attributable to replacement of tourism funding transfers with General Funds due to depletion of tourism reserve. He explained this increase in tourism transfers had been approved to fill a budget gap in the 2001 Legislative session. Had the transfers continued, the biennium actual would have been a new General Fund low point of 0.39 percent.
Senator Raggio asked whether tourism funds were being replaced with General Funds. Mr. Sisco answered that was correct.
Mr. Sisco directed the committee’s attention to a bar graph on page 6 of Exhibit E showing the citizen use of department services for FY 2002 totaling 4,938,831. He noted agency budget cuts and Governor restorations are shown by department. The Governor restorations included $6000 for an adobe maintenance project at the Lost City Museum. The Nevada State Museum had $1800 restored to its research project. The Las Vegas Museum and Historical Society had $3850 restored in their travel and operating budgets. The State Library Services had $35,375 restored for the rural counties book mobile funding and the database funding shared by the libraries, along with a small amount for operating budget.
Archives and Records – Budget Page CULTURAL-47 (Volume 1)
Budget Account 101-1052
Micrographics and Imaging – Budget Page CULTURAL-52 (Volume 1)
Budget Account 101-1055
Mr. Sisco covered the total staff position reductions of 10.89 FTEs. The monuments coordinator position was cut; the Nevada Historical Society cut two part-time positions; the Nevada State Railroad Museums cut two positions from the Boulder City railroad facility; the State Library Services cut all student positions down from 0.5 FTE to 0.45 FTE; the Archives and Records cut a student position from 0.51 FTE to 0.5 FTE; and the Archives and Records Micrographics and Imaging program cut 7 positions. He pointed out the Department of Cultural Affairs will be left with a 153.66 FTE total for the biennium.
Mr. Sisco discussed the tourism fund exchange. He stated in the FY 2003 transfer year $2.5 million was transferred to the departments’ budgets. The amount available for transfer in FY 2004 is $123,456, and $716,767 is available for transfer in FY 2005, making the biennium total $840,223. He said the Legislature utilized those funds to fill a budget gap. The majority of the funds were to come from the tourism reserve, but growth of the reserve also slumped when the economy started to decline. The replacement of those funds was to rebuild a reasonable reserve to cover tourism expenses.
Mr. Sisco drew the committee’s attention to a graph on page 9 of Exhibit E that shows where the FY 2003 budget increases will come from. When the Legislature gives state employee raises, the funds are put in the Board of Examiners distributive account, and then agencies apply for the funds when they are required. He explained there is a negative in the current budget for vacancy savings, but in order to show comparable statistics the amount was reinserted into the FY 2003 numbers. He noted the same procedure applies to the frozen merits and work programs for FY 2003. The FY 2003 adjusted base amount is multiplied by 2, and it is compared to this figure to calculate what the actual increase or decrease is. The actual figures show an overall department budget decrease of 5.20 percent. If the tourism transfer funds had not taken place, he said the actual increase would have been 2.79 percent.
Cultural Affairs Administration – Budget Page CULTURAL-1 (Volume 1)
Budget Account 101-2892
In the director’s office budget request there are $8000 in budget cuts, according to Mr. Sisco, with no changes in staff positions and no enhancement units. He indicated there is one request for a department-wide computer equipment replacement. He said there are no new programs included in the Executive Budget. The director’s office budget is divided into two groups, the Department of Administration, which handles the overall administration, and the Public Information Program, which increases public awareness and interest in the many cultural offerings. None of the budgets in the department have any funding set aside for marketing. The public information officer works with the museums, art councils, and historic preservation to develop marketing plans and provide information to the public and the press about statewide cultural affairs events.
Mr. Sisco referred the committee to section 3, of the Budget Presentation to the 2003 Legislature, (Exhibit F.) - Performance Measurements, and said the Department of Cultural Affairs has no measurement indicators.
All performance measurements and workload statistics are tracked for individual programs within the agency.
Mr. Sisco directed attention to section 5 Budget Reductions. The first budget cuts were made starting in FY 2002, he said when the department froze travel and developed targets for reversions to try to balance the budget in FY 2002. In FY 2003, 3 percent is being cut. In FY 2004 and FY 2005, he explained the department will use the “two times” rule. A formula developed by the Executive Branch for determining budgets for FY 2004 and FY 2005, which limits agency request. Therefore, in programs with some turnover, the cuts can be moved around to save money.
M-400 Restoration of Travel and Training Funds Reverted – Page CULTURAL-3
Mr. Sisco explained the decision unit restores travel and training funds that were frozen and reverted in the base budget due to the Governor’s directive to curtail travel and training as a result of the budget crisis. He asserted failure to restore these funds would be detrimental if continued indefinitely. This amount $9603 in FY 2004, and $9603 in FY 2005, will be restored to the budget under maintenance unit M-400.
E-600 Budget Reductions – Page CULTURAL-3
Mr. Sisco stated this enhancement (E) decision unit was detailed in section 5 of the budget presentation to the 2003 Legislature (Exhibit F). The 3 percent and combined “2003 X 2” rule budget cut requirements amounted to $4000 in FY 2004 and $4000 in FY 2005.
E-710 Replacement Equipment – Page CULTURAL-4
Mr. Sisco said a decision unit within this budget account provides for a department-wide computer and software upgrade and replacement program. The amount required for replacement and upgrade for FY 2004 is $158,626 and for FY 2005 is $110,967.
Mr. Sisco added there are no one-shot requests in this or any other budget in the department. He described the program challenges for the Department of Cultural Affairs to continue to provide services to a rapidly growing population. Technological and other reporting requirements have increased significantly, he said.
Senator Tiffany asked if the department had a one-shot request that was ongoing.
Mr. Sisco answered last session the department had a one-shot request for computer replacement equipment, and it was able to purchase a little over half the equipment before the funds were frozen.
Senator Rhoads asked how the department was proceeding with the design of the Nevada state quarter and when it will be out?
Mr. Sisco deferred the question to the Governor’s office, which is planning a statewide competition. The announcement for the competition is expected in the near future.
Marcia W. Britton, Administrator, Division of Museums and History, Department of Cultural Affairs, explained the Division of Museums and History is Nevada’s “attic” just as the Smithsonian Institution is for the nation. She stated her department caretakes over 3 million objects with the professional guidance of 82 staff and 350 trained volunteers. The volunteers have put in 34,000 hours in FY 2002 both behind the scenes and in serving the public.
Museums and History – Budget Page CULTURAL-6 (Volume 1)
Budget Account 101-2941
Ms. Britton said the budget was cut by $249,650, of which $23,400 was restored by the Governor, and the staff was reduced by 3.02 FTEs. She stated there are no requests for new programs, maintenance units, enhancement units, or one-shot requests.
Lost City Museum – Budget Page CULTURAL-9 (volume 1)
Budget Account 101-1350
Ms. Britton stated Lost City Museum is a reconstructed pueblo structure built by the Civil Conservation Corps following the Hoover Dam construction. It has interior and exterior exhibits and public programs. She indicated that, in keeping with the current national trend, attendance is down.
Ms. Britton continued saying there are no reductions in the budget account due to the existing fund limitations. There are no maintenance units, no enhancement units, and no one-shot requests. The primary program challenge, she said, is to maintain the integrity of the unique historic adobe structure, but public accessibility might by increased by computerization of collections.
Senator Raggio asked whether the amount budgeted would be sufficient to stabilize the facility.
Ms. Britton answered there are enough funds at the present time, and the Governor did restore $6000.
Nevada Historical Society – Budget Page CULTURAL-12 (Volume 1)
Budget Account 101-2870
Ms. Britton explained the Nevada Historical Society on the University of Nevada, Reno, campus is the oldest museum in the State. The hundredth anniversary of its founding will be in 2004 and there are plans for celebrations. The museum houses documentary collections, manuscripts, photographs, books, maps, and newspapers. The museum stores more than a half million items. There are no new programs, no maintenance units, and no one-shot requests, she said.
E-600 Budget Reductions – Page CULTURAL-14
Ms. Britton reported reductions in the budget totals are in the amounts of $5841 for FY 2004 and $5841 for FY 2005. Primary cuts were made in the operations and conservation divisions.
E-605 Budget Reductions – Positions – Page CULTURAL-15
Ms. Britton explained this decision unit eliminates two part-time positions including a museum attendant and an archives and records assistant. She said these positions are funded with museum-dedicated trust funds and, with the downturn in the economy, the funding has not materialized to fill the positions.
E-711 Replacement Equipment – Page CULTURAL-15
Ms. Britton explained this decision unit provides funding to replace one of the two microfilm reader/printers used by visitors to the museum. Replacement costs in FY 2004 will amount to $12,874, and there are no funds for replacement costs budgeted in FY 2005. There are no maintenance units or one-shot requests in this budget.
Senator Raggio asked whether any fees provide revenue for this budget, and, if so, whether they are decreasing.
Ms. Britton responded admission fees are collected, and, with the decline in attendance, the amount of admission fees collected has decreased. Mr. Sisco commented the total admission fees collected in FY 2002 amounted to $6124. The private grant money normally goes for a specific purpose and the grant funds have run out.
Senator Mathews asked whether the Nevada Historical Society uses university land, if it is leased, and whether there has been any talk about moving it. Ms. Britton answered the Nevada Historical Society has a long term lease with the university for use of the land and there has been no talk about canceling it.
State Museum, Carson City – Budget Page CULTURAL-18 (Volume 1)
Budget Account 101-2940
Ms. Britton said the Nevada State Museum is a full-service museum with programs encompassing Nevada history, natural history, earth sciences, anthropology, and clothing and textiles. The museum is housed in the former United States Mint building, which itself is an artifact.
E-600 Budget Reductions – Page CULTURAL-20
Ms. Britton explained the budget cuts were made in the anthropology research department in the amount of $5359 for each year of the biennium. She conceded current reductions are manageable, but continued budget cuts will have long-term impact on staff research. Ms. Britton said there are no one-shot requests in this budget.
Senator Raggio noted the budget included approximately $200,000 in General Fund money for FY 2002, but the Governor recommends $1.3 million in the first year and $1.4 million in the second year from the General Fund for the budget. He asked whether tourism is down to the point where fee collections cannot be utilized in this and other budgets.
Mr. Comeaux responded in the last session tourism had built up a fairly healthy reserve, so routine transfers from tourism to cultural affairs and other budgets continued, but at a decreased amount. Tourism made transfers during this biennium when revenues drastically declined because of the national economic situation.
Senator Raggio asked whether there is some way to minimize the General Fund impact.
Mr. Comeaux answered he would provide that information. Further, he offered to provide a forecast of the room tax revenues based on an increase in tourism over the next 2 years.
Museum and Historical Society - LV – Budget Page CULTURAL-23 (Volume 1) Budget Account 101-2943
Ms. Britton commented the Museum and Historical Society in Las Vegas is poised for a major change with movement of the museum to the Las Vegas Springs Preserve. She asserted the museum is a leading institution for collection and interpretation of history, anthropology, and natural history in southern Nevada. It is also the only accredited museum in southern Nevada.
Senator Raggio asked whether admission fees are projected for FY 2004 and FY 2005 are realistic. Ms. Britton responded they are more realistic than they have been in the past. Senator Raggio asked how much in fees might be collected over the biennium. Mr. Sisco answered the department projects collections of $12,166 per year.
Senator Raggio asked whether approximately $1000 is collected from admissions each month.
Mr. Sisco replied reduction in staff positions has created problems in keeping the museum open. He added climate control must be constant in museums so there is no saving on utilities when the museum is closed.
Senator Raggio asked whether the primary attendance came from school field trips.
Mr. Sisco answered absolutely, adding the museum is extremely important to educators in southern Nevada.
E-600 Budget Reductions – Page CULTURAL-25
Ms. Britton indicated budget reductions for the exhibit program would be in $369 in each year of the biennium. She stated there are no maintenance units and no one-shot requests.
Ms. Britton noted program challenges include planning for relocation of the museum to the Las Vegas Springs Preserve. She surmised further exhibit development would be a positive incentive to engage new audiences.
State Railroad Museums - Budget Page CULTURAL-27 (Volume 1)
Budget Account 101-4216
Mr. Sisco stated removing the Boulder City Railroad Museum from the administrator’s budget and combining all three railroad museums into a single budget account was designed to provide efficiency in accounting procedures. He said the new single account covers the Railroad Museum in Carson City, the East Ely Railroad Depot Museum in Ely, and the Boulder City Railroad Museum in Boulder City. The museums collect, preserve, interpret, and operate historical railroad equipment. He added there are no new programs or one-shot requests in the budget.
E-600 Budget Reductions – Page CULTURAL-30
Mr. Sisco indicated that in FY 2003 actual cuts amounted to $8892. The frozen staff positions were included in the money that was planned for reversion. In FY 2004 and FY 2005 if the decision was made to permanently eliminate the positions, the budget cuts would be dramatically increased to $99,222 for FY 2004 and $103,990 for FY 2005. The two positions were eliminated to realize this savings. The annual reductions include $100 cut from the maintenance and grounds budget in East Ely and $1900 cut from the restoration shop budget in Carson City. Another $1892 was cut from the operating and buildings maintenance budget in Boulder City. These amounts totaled $3892 in FY 2004 and $3892 in FY 2005.
E-605 Budget Reductions – Page CULTURAL-30
Mr. Sisco stated this decision unit eliminated the restoration supervisor and the restoration specialist positions from the Boulder City facility. One of the reasons for this choice was the Nevada Department of Highways (NDOT) recently released plans that bypass the existing road. This means the Department of Cultural Affairs has a future opportunity to utilize track that is already in place on the west side of the highway versus building the loop track extension. Mr. Sisco added in reducing immediate staffing needs, the department will explore possible concessionaire alternatives for operating the excursion train in the interim.
Senator Raggio inquired why $338,000 was required in each year of the biennium. Mr. Sisco responded a business plan was created and funded in the last session with 4-years worth of contracts that would refurbish and reconstruct one engine and two coaches. He added funds are included to build a “Y” for switching and turning engines and construction of shore power.
Senator Raggio said the question remains with this time of tight money whether these projects could be deferred over the biennium. Mr. Sisco answered when the project is up and running it will be the one museum in the entire system that has the potential to actually make money.
Senator Raggio commented this seems like an obvious place to save $500,000 to $600,000 over the biennium by letting the funding stay at the current level. He asked what the essential amount is to maintain the status quo and requested the department to provide that figure.
Ms. Britton concluded the presentation by showing actual objects from the Carson City Native American museum exhibit and a brochure distributed by the museum on Nevada’s Native American heritage.
Comstock Historic District Commission – Budget Page CULTURAL-33 (Volume 1) Budget Account 101-5030
Ronald M. James, State Historic Preservation Officer, Office of Historic Preservation, Department of Cultural Affairs, introduced the Comstock Historic District budget. The 1969 Legislature created the Comstock Historic District Commission to address concerns about saving historic structures and to assist in management of over 14,000 acres spanning two counties and five communities.
Mr. James said the commission has participated in three Save America’s Treasures grants to help with the Fourth Ward School, Piper’s Opera House, and cemetery restoration. He indicated there are no new programs, no maintenance units, no enhancement units, and no one-shot requests in this budget.
State Historic Preservation Office – Budget Page CULTURAL-36 (Volume 1)
Budget Account 101-4205
Mr. James said the State Historic Preservation Office was created in 1977 to assist state agencies, local governments, non-profit organizations, and private citizens to preserve historic buildings and archeological sites.
E-600 Budget Reductions – Page CULTURAL 38-39
Mr. James reported this decision unit eliminates the half-time monuments coordinator position that was created in the 2001 Legislature as well as associated costs. He added this decision unit reduces the State grants program that supports historic and archeological projects throughout the State by $6071. Combining these amounts will result in $38,129 in FY 2004: and $39,910 FY 2005 reductions in costs for the biennium.
Senator Raggio asked for an update on the status of the historic marker program. Mr. James replied the program was supported by $10,000 from the tourism commission.
Senator Raggio asked how the funds are used. Mr. James responded funds are used for the historic marker booklet, which is reprinted on a regular basis. Also the NDOT provides $20,000 for the rehabilitation of markers throughout the State and augments the collection by a few markers every year. Senator Raggio asked whether there is any money in the tourism budget to cover expenses, and whether these funds will be sufficient to continue the program.
Mr. James answered NDOT funds can only be used to rehabilitate markers on State rights-of-way nothing else, and there are no tourism budget funds to cover those expenses.
Senator Raggio asked who said NDOT funds are limited to the rehabilitation on markers on State rights-of-way. Mr. James replied NDOT said so. Senator Raggio commented someone may have to talk to NDOT.
Mr. Sisco clarified the answer by stating the marker program still has $29,950 from the General Fund. Although the historic marker program has been moving at a steady pace, he said, some of the funds might have to be used to manage the program. He added the program currently has only one support person who serves a dual function as the program manager for the marker program.
Mr. James continued saying the Commission for Cultural Affairs is a statewide advisory board that is also the granting authority for its program of rehabilitation of historic structures to be used as cultural centers. Senator Raggio asked how long the funds would be available. Mr. James said the legislation refers to 10-year cycles in the bonding program. The first 10-year cycle will end in 2004.
Senator Raggio asked whether $2 million is available over the next biennium. Mr. James answered the commission will be reviewing applications it has received for the 2003 bonding on March 13 and 14. Then, he said the commission would request $2 million in the sale of bonds to cover expenses.
Mr. James added recent archeological discoveries in Nevada have generated much interest and nationwide publicity for the State.
Caryl Gobel, Service Officer, Veterans of the Vietnam War, Inc, explained the Veterans Museum is housed in a 12,000 square foot building that was donated for a $1 per year lease by a private party. She stressed the museum is not just about artifacts, but it is about the lives of veterans from the Civil War to Desert Storm. Brochures are being prepared she said. She urged the committee to approve the request to encourage younger generations respect and honor the veterans.
Nevada State Library – Budget Page CULTURAL-41 (Volume 1)
Budget Account 101-2891
Sara F. Jones, State Librarian, Division Administrator, Department of Cultural Affairs, introduced the Nevada State Library and Archives budget, stating its function is to provide a range of information and library services to state and local governments, Nevada libraries, and citizens throughout the State.
Ms. Jones called the committee’s attention to the report she distributed entitled Nevada Public Libraries Collection Development Grants, Reports from Participants (Exhibit G. Original is on file in the Research Library). She said the report provides detailed information about every library facility in the State.
Ms. Jones outlined the department’s budget request as displayed in Exhibit E. She reported the amounts include $168,980 in General Fund budget cuts of which the Governor restored $69,664, a reduction in staff made by cutting 7.36 FTEs, one enhancement unit request of $39,600, and one request for replacement equipment.
E-350 Library for Blind and Physically Handicapped (LBPH)
- Page CULTURAL-44
Ms. Jones explained this decision unit provides for payment of annual rent costs for 2,000 square feet of space in Las Vegas for the LBPH. The amount will be $39,600 for each year of the biennium.
Ms. Jones pointed out $1.2 million in federal money comes from the Library Services and Technology Act (LSTA). It supports the LBPH function as a federal program operated by the Library of Congress. The LSTA funds support all operating costs for the program in Southern Nevada. The remainder of LSTA funds support all libraries in Nevada through grants made directly to libraries and for cooperative arrangements among libraries.
E-600 Budget Reductions – Page CULTURAL-45
Ms. Jones stated the FY 2004 budget cuts include five student positions from 0.51 FTE to 0.45 FTE and associated assessments and costs for a total of $33,263 in FY 2004 and $37,119 in FY 2005. Further cuts were made in operating supplies of $2,000, insurance expenses of $45, and Department of Information Technology assessment charges of $67 in FY 2004. Additional cuts in FY 2005 include operating supplies of $2,000, insurance expenses of $47, and Department of Information Technology assessment charges of $61.
Senator Tiffany asked whether this budget has a $1.2 million recurring one-shot budget request.
Ms. Jones answered that is correct. She explained there is a statutory formula for the State collection development money NRS 378.150, but the one-shot $1.2 million request did not make the Governor’s recommended budget. This is a matching grant fund in which the largest amounts go to the small rural libraries and the smallest matches go to the urban libraries.
Senator Tiffany expressed concern that losing these funds would particularly impact the rural areas. She asked whether there is any way to shift other funds so the match would be possible. Mr. Sisco answered the Governor also considered the funds a priority, but the request did not make the final cut.
Ms. Jones said it would not be possible to cut $1.2 million, nearly a third of the total budget, from other budgets in order to provide the matching funds.
Nevada Arts Council – Budget Page CULTURAL-64 (Volume 1)
Budget Account 101-2979
Susan Boskoff, Executive Director, Nevada Arts Council, Department of Cultural Affairs, handed out Nevada Arts Council Annual Report 2002 (Exhibit H. Original is on file in the Research Library), which details the myriad of activities and events that the Nevada Arts Council sponsors.
Ms. Boskoff also distributed one page describing the culture grants online Web site (Exhibit I).
Ms. Boskoff stated the mission of the Nevada Arts Council (NAC) is to enrich the cultural life of the state through leadership activities that preserve, support, and make accessible excellence in the arts for residents and tourists alike. Ms. Boskoff explained the NAC budget request, saying the NAC had total General Fund budget cuts of $86,400 for the biennium. The budget has no staff reductions and no one-shot requests.
E-711 Replacement Telephone Equipment – Page CULTURAL-67
According to Ms. Boskoff, this decision unit provides funding to replace an antiquated telephone system for the Carson City office of the NAC. The amount requested is $18,195 in FY 2004. There is no funding request for this equipment in FY 2005.
Ms. Boskoff requested two letters of support for the NAC be entered into the record. One,from Steven High, Nevada Museum of Art, is marked Exhibit J, and the other, from Robert Alessandrelli, Reno Arts and Culture Commission, is marked Exhibit K.
Ms. Boskoff had museum collection baskets passed around to the committee members as a demonstration of the actual materials shown in classrooms as part of the folklorist program.
Ms. Jones gave the committee a brief preview of the video Nevada Riches CD-ROM project. Governor Guinn and Senator Cegavske were readers on the video.
Senator Cegavske complimented and thanked everyone associated with the video project and announced the cds will be for sale. She asked how much revenue is projected from the sales that can help in the production of CD II.
Mr. Sisco responded that the cds were in Nevada gift shops about a month before Christmas, but there has not been an opportunity to tally the figures. He added stores sold out within 2 days.
Senator Cegavske asked what the selling price was for the video. Mr. Sisco answered it sells for$19.95.
The committee did not discuss the following budgets.
Nevada State Library – Literacy – Budget Page CULTURAL-57 (Volume 1)
Budget Account 101-2893
Nevada State Library-CLAN – Budget Page CULTURAL-61 (Volume 1)
Budget Account 101-2895
Chairman Raggio adjourned the hearing at 10:58 a.m.
RESPECTFULLY SUBMITTED:
Judy Coolbaugh,
Committee Secretary
APPROVED BY:
Senator William J. Raggio, Chairman
DATE: