MINUTES OF THE
JOINT Subcommittee on
Human Resources/K-12
of the
Assembly Committee on Ways and Means
AND THE
Senate Committee on Finance
Seventy-second Session
April 16, 2003
The Joint Subcommittee on Human Resources/K-12 of the Assembly Committee on Ways and Means and the Senate Committee on Finance was called to order by Chairman Sheila Leslie at 8:13 a.m. on Wednesday, April 16, 2003 in Room 3137 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.
Assembly COMMITTEE MEMBERS PRESENT:
Ms. Sheila Leslie, Chairman
Ms. Christina R. Giunchigliani
Mr. David E. Goldwater
Mr. Lynn Hettrick
Senate COMMITTEE MEMBERS PRESENT:
Senator Raymond D. Rawson, Chairman
Senator William J. Raggio
Senator Bernice Mathews
Senator Barbara Cegavske
COMMITTEE MEMBERS ABSENT:
Mrs. Dawn Gibbons (Excused)
STAFF MEMBERS PRESENT:
Mark W. Stevens, Assembly Fiscal Analyst
Gary L. Ghiggeri, Senate Fiscal Analyst
Larry L. Peri, Senior Program Analyst
Jim Rodriguez, Program Analyst
Pamela Carter, Committee Secretary
OTHERS PRESENT:
Mary Liveratti, Deputy Director, Department of Human Resources
Michael J. Willden, Director, Department of Human Resources
Edward E. Cotton, Administrator, Division of Child and Family Services, Department of Human Resources
Larry Carter, Juvenile Justice Commission Staff, State of Nevada Juvenile Justice Commission, Department of Human Resources
Steven Thaler, Director, China Spring Youth Camp/Aurora Pines Girls Facility
Developmental Disabilities – Budget Page HR ADMIN–8 (Volume 2)
Budget Account 101-3154
Jim Rodriguez, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau:
Programs within the developmental disabilities budget provide grants to community-based entities to design and implement new models of delivery systems serving the disabled community. Funding may only be used for design and implementation of new expanded services, and not for the extended distribution of actual services.
A primary recommendation of the legislative Subcommittee to Study State Programs for Providing Services to Persons with Disabilities was to transfer the developmental disabilities budget from the Department of Employment, Training, and Rehabilitation (DETR) to the director’s office within the Department of Human Resources (DHR). The subcommittee’s recommendation is based on the premise that consolidating like resources and skills would deliver the most efficient and productive disability services in Nevada. In considering the transfer of this budget account to DHR, the committee considered two options with regard to the DETR administrative cost allocation the department built into the budget. The Department of Employment, Training, and Rehabilitation included an administrative cost allocation prior to realizing that DHR did not assess an administrative cost to the budgets contained within the director’s office.
Option one would reallocate the budget interagency cost allocation, resulting in a General Fund savings of $9596 in fiscal year (FY) 2003-2004 and $10,087 in FY 2004‑2005. Because of the match requirement for the various grants in this budget account, there would also have to be an increase in funding to client services of $24,872 in FY 2003-2004 and $23,878 in FY 2004-2005. Option two would reallocate funding for the cost allocation totally to client services, resulting in increased client services of $34,468 in FY 2003-2004 and $34,725 in FY 2004-2005 with no offset to General Funds.
In the 71st Legislative Session, the Legislature approved a total federal grant allocation of $408,984 for the developmental disabilities budget for FY 2001‑2002. The actual grant award came in at $446,374. Currently the budget can match $436,565 in FY 2003-2004 and $436,546 in FY 2004-2005 of the federal grant award, leaving $9809 in FY 2003-2004 and $9828 in FY 2004-2005 unmatched. The department requests additional General Fund money to match this amount. This is a small amount that would garner a very large amount, roughly $1 for every $4 gained. There is a correction to the General Fund request in this element, having to do with the way costs were allocated in category 80. The General Fund request should be $2845 in FY 2004 and $3358 in FY 2005. This is still a three-to-one ratio in federal funds to General Fund.
Assemblywoman Giunchigliani:
What would be the impact on the other budgets if we closed this way and they wanted to do an allocation down the road? Would they have to come to the Interim Finance Committee (IFC)?
Mr. Rodriguez:
There would be no impact to the other DHR budgets from this adjustment to the Office of Community-Based Services (OCBS) or developmental disabilities interagency cost allocations. The dollars in the cost allocation, cost category 80, were placed in the account by DETR as a place holder for the DHR cost allocation. DETR was not aware that DHR did not have a director cost allocation when those dollars were placed in the account. This adjustment merely reallocates the dollars to client services, and if approved by the committee, reverts excess match to the General Fund. Staff request the authority to make necessary adjustments based on the closing decisions made by this committee. As they close, the final allocations will be calculated and staff can go back and make the adjustments.
Assemblywoman Giunchigliani:
Could this happen before the end of the session?
Mr. Rodriguez:
Yes.
Assemblywoman Giunchigliani:
I would prefer the second option of diverting the total cost-allocation to client services. The difference in the amount is small, but it makes a difference in services.
Senator Rawson:
What client service needs do we have?
Mary Liveratti, Deputy Director, Department of Human Resources:
The Developmental Disabilities Planning Council decides how to spend budgeted monies, and client services monies are directed to demonstration projects or support of limited-time projects, usually 3 to 5 years. The federal requirement is that we cannot funds a program for more than 5 years with this money. In the past several years, we have funded such projects as respite care for families and housing options for people with disabilities. We will also be looking at having a minority summit and other issues in the strategic plan for people with disabilities.
Senator Rawson:
If we followed option one and your General Fund allocation was reduced by approximately $10,000 in each year of the next biennium, would that have much of an impact on what you can do?
Ms. Liveratti:
We could certainly use the $10,000 for services and would prefer to see that happen.
Senator Rawson:
Matching grant funding will cost $2700 the first year of the biennium and $3300 the second year of the biennium. This seems to me to be the best money we will ever spend because we get such a good match for it.
Senator Cegavske:
I feel more comfortable with the first option.
Assemblywoman Giunchigliani:
The first option simply reduces the General Fund by $9000. The second option improves client services and gets us more for our money. This is an area we have been underfunding for quite some time.
Senator Raggio:
There is a savings of nearly $20,000 in the first option. This is an opportunity to minimize the impact on the General Fund without any real effect on client services.
Assemblywoman Leslie:
Staff confirm that the trade-off is $68,000 worth of direct services to clients over the biennium.
Senator Rawson:
The first option results in a $20,000 General Fund savings and increases client services by $24,000 in the first year and $23,000 in the second year. I like the fact that we can still add some services. There is no General Fund savings in the second option, and we need to try to save where we can.
Assemblywoman Giunchigliani:
Taxes will have to be increased at some point. It might be helpful to create a list of programs that can be funded later if there is additional revenue.
Assemblywoman Leslie:
That is a good idea. I will ask for a motion on this issue.
SENATOR RAWSON MOVED TO ACCEPT OPTION ONE AND RECONSIDER OPTION TWO AT A LATER DATE.
ASSEMBLYMAN HETTRICK SECONDED THE MOTION.
THE MOTION CARRIED. (ASSEMBLYWOMAN GIBBONS WAS ABSENT FOR THE VOTE.)
*****
Assemblywoman Leslie:
I will ask for a motion on the rest of the budget account with technical corrections.
ASSEMBLYWOMAN GIUNCHIGLIANI MOVED TO APPROVE AND CLOSE THE DEVELOPMENTAL DISABILITIES BUDGET ACCOUNT WITH TECHNICAL CORRECTIONS.
SENATOR RAWSON SECONDED THE MOTION.
THE MOTION CARRIED. (ASSEMBLYWOMAN GIBBONS WAS ABSENT FOR THE VOTE.)
*****
Community Based Services – Budget Page HR ADMIN–16 (Volume 2)
Budget Account 101-3266
Mr. Rodriguez:
The Executive Budget recommends the OCBS be transferred from DETR to DHR. This budget has the same issues as the previous one. Decision unit E-451 requests additional General Funds of $59,313 in FY 2003-2004 and $58,492 in FY 2004-2005 to restore client services in personal assistance services, traumatic brain injury (TBI), independent living, and deaf resource center programs.
In decision unit E-500, the OCBS recommends the transfer of $867,272 in FY 2003-2004 from the Trust Fund for a Healthy Nevada. This amount represents the remaining balance of a one-time $5 million allocation of tobacco funds that were approved by the Legislature in the 70th Legislative Session for the Life Transition Center in Las Vegas. The transfer has no effect on the agency’s operating budget. There is a further $4.4 million in the fund that is unobligated at this point, but the contractor for the project notes there have been some delays in processing the expenditures. They anticipate $3.5 million would be expended by the end of this biennium.
The 3 percent General Fund reduction of $70,801 in each year of the biennium, as represented in decision unit E-600, meets the Governor’s 3 percent budget reduction mandate. This results in decreased funding for TBI, independent living, and the deaf resource center client assistance programs during the next biennium and is offset by option one.
The OCBS transfer from DETR to DHR includes $80,496 in FY 2003-2004 and $81,098 in FY 2004-2005, representing the OCBS share of administrative support costs allocated to budgets operating within DETR’s rehabilitation division. Similar to the committee choices presented in the Developmental Disabilities budget account, there are two choices associated with the DETR cost allocation dollars established in this budget account. They include allocating the cost allocation funding of $80,496 in FY 2003-2004 and $81,098 in FY 2004-2005 to the General Fund, or reallocating that funding client services with no offset to the General Fund.
Senator Rawson:
Would this amount go to maintain services at the regular level, or would it actually mean an increase in services?
Mr. Rodriguez:
It would increase client services.
Senator Rawson:
How many people are there on the client services waiting list?
Mr. Rodriguez:
I do not know that number. I will get the information from the department and get it to you.
Assemblywoman Leslie:
Could you touch on the technical items?
Mr. Rodriguez:
The DHR is planning to transfer General Funds in the amount of $406,980 in FY 2003-2004 and $742,560 in FY 2004-2005 from aging services to OCBS for personal care attendant (PCA) services. This complies with the requirements of Senate Bill (S.B.) No. 174 of the 71st Legislative Session. This funding would allow OCBS to provide PCA services to 15 disabled clients in FY 2003-2004 and 30 disabled clients in FY 2004-2005. Staff note S.B. No. 174 requires the budget to identify the necessary resources to meet the demand for services, but it did not require the Legislature to actually fund those services. Funding for those services is contingent upon the availability of sufficient state funds.
Staff note there has been an amendment to S.B. 164 assessing charges to cellular telephone usage at the same rate as land lines. Approximately $70,000 will be directed to the deaf resource centers program for General Fund replacement. Staff are currently researching the exact amount.
SENATE BILL 164: Creates the Office of Disability Services within Department of Human Resources to coordinate and administer certain services and programs for persons with disabilities. (BDR 38-701)
Senator Mathews:
I understand from testimony in yesterday’s committee meeting that cellular telephone usage charges are already being assessed, and this bill would just redirect that money.
Gary L. Ghiggeri, Senate Fiscal Analyst, Fiscal Analysis Division, Legislative Counsel Bureau:
Charges are being assessed but not collected; some companies are not paying. This will put some additional enforcement into the law.
Senator Rawson:
I recommend we close the OCBS budget with that idea and allow staff to make adjustments if the Assembly does not approve that bill.
Assemblyman Hettrick:
I support the idea of adding back the service level in the first option, but I am not certain how we end up in option four with the elimination of the administrative cost allocation. Is the net effect savings of $20,000 in FY 2003‑2004 and $20,000 in FY 2004-2005, or $59,313 in FY 2003-2004 and $58,492 in FY 2004-2005?
Assemblywoman Leslie:
The higher number is still less than the $70,000 per year that was cut by the 3 percent reduction, correct?
Mr. Rodriguez:
Yes. There is actually a double effect here. There is a recovery of $59,313 in FY 2003-2004 and $58,492 in FY 2004-2005 relating to the Governor’s 3 percent budget reduction. The savings realized in DETR’s administrative cost allocation will be additional to that. The OCBS would be directing approximately $130,000 to client services in each year of the biennium as a result of the 3 percent budget reduction initiative and reallocation of the DETR cost allocation funding.
Assemblywoman Leslie:
That still leaves us $10,000 short. I would like to see us recover at least the $70,801 that was cut in decision unit E-600, the 3 percent General Fund reduction initiative.
Senator Rawson:
We could create a third option to restore $70,801 in reductions and save the remaining monies for the General Fund.
Mr. Ghiggeri:
I may be mistaken, but I believe $23,600 of the $70,801 will be restored to the deaf resource center monies from cellular telephone usage charges.
Assemblywoman Leslie:
I would like the DHR to address the waiting list issue.
Ms. Liveratti:
There are approximately 60 people on the waiting list for the TBI program and 100 on the list for the PCA program. Of that, we project 30 will meet the criteria for the severely disabled program. In order to qualify for that last program, the person must need assistance with feeding, toileting, and bathing.
Senator Raggio:
I hate to see anything cut from this area. We have spent a decade trying to accomplish these goals.
Michael J. Willden, Director, Department of Human Resources:
The DHR’s two major concerns are moving funds out of aging services into OCBS to phase in the 30 people who qualify for services to those with severe disabilities, and directing cellular telephone monies to the OCBS budget.
Assemblywoman Leslie:
Those two issues are easy to resolve. We are wrestling with whether we save money or take the opportunity to address issues like the inadequacy of the TBI program. Why are there 60 people on the TBI waiting list?
Ms. Liveratti:
Currently there is a wait of 12 to 18 months to be admitted to the TBI program.
Assemblywoman Leslie:
What happens to the 60 clients waiting for treatment?
Ms. Liveratti:
The burden of their care falls on their families. The program in Las Vegas has some transition housing and limited residential facilities, where people with brain injuries can learn to live independently. They also have support programs for the families, including respite care and training to manage difficult behaviors.
Mr. Rodriguez:
If approximately $23,000 was realized from cellular telephone usage charges, the third option allows client services to be maintained, while still resulting in a $70,000 General Fund savings.
Senator Rawson:
Within the third option, existing services would be maintained if approximately $23,000 was realized from cellular telephone usage charges and the $80,496 from DETR was reduced to $69,000, resulting in a $70,000 General Fund savings. If S.B. 164 passes both Houses, it will restore approximately $40,000 for client services.
SENATOR RAWSON MOVED TO ACCEPT OPTION THREE.
ASSEMBLYWOMAN GIUNCHIGLIANI SECONDED THE MOTION.
THE MOTION CARRIED. (ASSEMBLYWOMAN GIBBONS WAS ABSENT FOR THE VOTE.)
*****
Child Care Services – Budget Page DCFS–25 (Volume 2)
Budget Account 101-3149
Larry L. Peri, Senior Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau:
The significant overall funding decrease in the Child Care Services budget is due primarily to the transfer of 10 full-time equivalent (FTE) positions to Clark County and 2 FTE positions to Washoe County for child welfare integration. The adjusted base budget recommends the continuance of 15.55 FTE positions.
There are no major closing issues in this budget account. Decision unit E-475 recommends the addition of a new Administrative Assistant II to improve and expedite the processing of State and FBI fingerprint background checks on child care providers and residents of child care facilities. The new position would be fully funded by federal child care development funds in the amount of $42,000 for each year of the next biennium.
There are two technical adjustments. The Budget Division has submitted an amendment correcting the revenue split for increased fingerprint background check costs included in the Child Care Services budget. The amendment reduces General Fund support by $798 in each year of the biennium and increases child welfare Title IV-E funds by $798 in each year of the biennium. The Budget Division has submitted a second amendment correcting upgrades to four social worker positions for an occupational study recommendation from the Department of Personnel. The positions were incorrectly upgraded to level three positions rather than level two positions. The General Fund reduction is $5065 in FY 2004 and $5134 in FY 2005.
Senator Raggio:
I suggest holding action on the Child Care Services budget because the Child Care Services budget hinges on approval of the final phase of child welfare integration.
Assemblywoman Giunchigliani:
I would argue the opposite for the Assembly. We have made a commitment to moving this program forward, and we need to make sure we allow it to be successful. Closing the Child Care Services budget will not impact the child welfare integration and will send a message that we are committed to the program. We can make necessary adjustments later.
Assemblywoman Leslie:
I will entertain a motion.
ASSEMBLYWOMAN GIUNCHIGLIANI MOVED TO CLOSE THE CHILD CARE SERVICES BUDGET ACCOUNT 101-3149 WITH THE AMENDMENTS PROPOSED BY STAFF.
ASSEMBLYMAN GOLDWATER SECONDED THE MOTION.
Senator Raggio:
As I said, I recommend holding this budget until we determine whether we are able to continue phase 2 of the welfare integration. If that occurs, we can readdress this budget. I will vote against the motion to close the Child Care Services budget account (BA) 101-3149.
Assemblywoman Giunchigliani:
I am concerned to hear you say if we are able to move to phase 2. Washoe County’s program is in place, and the commitment has been made to Clark County. My intent is to show that is where we are heading.
Senator Raggio:
I do not disagree. However, the long-term cost of this is still an outstanding issue. We need to make sure we are able to do this, and we have declined to close other budgets for this reason.
Senator Rawson:
There are revenue discussions that need to be brought into this issue. I am firmly committed to this program, and I do not want to come to an impasse now. It might be worthwhile to bypass a decision on the Child Care Services budget at this time.
Assemblywoman Leslie:
Alternately, we could amend the motion to apply to the Assembly only.
Assemblywoman Giunchigliani:
I so amend the motion.
THE MOTION CARRIED BY THE ASSEMBLY MEMBERS. (ASSEMBLYWOMAN GIBBONS WAS ABSENT FOR THE VOTE, ASSEMBLYMAN HETTRICK VOTED NO.)
*****
Transition From Foster Care – Budget Page DCFS–37 (Volume 2)
Budget Account 606-3250
Mr. Peri:
This budget account administers funds for assisting youth transitioning from foster care at 18 years of age, providing assistance with training, housing, and medical insurance costs. It can also be granted to nonprofit organizations or used to match federal funds. It is a new budget account established by the passage of A.B. No. 94 of the 71st Session, which authorized county recorders to charge and collect additional county fees for this purpose. Additional county fees are directed to BA 606-3250. The current account balance is slightly over $1.4 million. The division indicated they intend to expend $500,000 in FY 2003 between rural Nevada and Washoe and Clark Counties. To date, almost $133,542 has been expended during FY 2003. The base budget recommends the continuation of the program, with $1 million to be collected and spent in each year of the biennium.
Senator Mathews:
Was this $133,542 spent on children or administrative costs?
Mr. Peri:
I do not know. That distribution was made to Clark County, and I do not believe it was spent on administrative costs.
Edward E. Cotton, Administrator, Division of Child and Family Services, Department of Human Resources:
At least 90 percent of the $133,542 was spent on children in Clark County; no more than 10 percent may be spent on administrative costs. Also, $38,335 was spent on children in Washoe County with the same stipulation that at least 90 percent must be spent on services for children.
Assemblywoman Leslie:
I am glad to see money finally going out of this account. Will $500,000 be expended this fiscal year for children, or will a portion roll over to the next fiscal year?
Mr. Cotton:
A portion of the $500,000 will roll over to the next fiscal year. Part of the delay was caused by the need to form the three community groups required by the statute.
Assemblywoman Leslie:
I request a motion.
ASSEMBLYWOMAN GIUNCHIGLIANI MOVED TO CLOSE THE BUDGET ACCOUNT 606-3250 AS RECOMMENDED BY THE GOVERNOR.
SENATOR RAWSON SECONDED THE MOTION.
THE MOTION CARRIED. (ASSEMBLYWOMAN GIBBONS WAS ABSENT FOR THE VOTE.)
*****
Victims of Domestic Violence – Budget Page DCFS–41 (Volume 2)
BUDGET ACCOUNT 101-3181
Mr. Peri:
This budget account has historically been funded by a fee of $15 collected by county clerks on each Nevada marriage license sold. Assembly Bill No. 94 of the 71st Session increases that fee from $15 to $20, effective July 1, 2003. That measure also required an assessment of $5 be collected by justices of the peace for actions celebrating a marriage effective October 1, 2001, and that commissioners of civil marriage collect a $5 fee effective July 1, 2001. The funds collected are granted to nonprofit agencies to provide direct services to victims of domestic violence, including shelter, crisis phone access, emergency assistance, advocacy, hospital accompaniment, and counseling. The adjusted base budget recommends an increase in grant expenditures from approximately $2.2 million in FY 2003 to $3.5 million in FY 2004, and $3.1 million in FY 2005. This is due to a projected increase in revenue and the division’s proposal to reduce the reserve and maintain it at approximately $500,000 thereafter. There are no positions in BA 101-3181, and staff suggests this budget be closed as recommended by the Governor.
Assemblywoman Leslie:
This budget account is one of the best examples of progressive legislation in Nevada. It has helped many programs throughout the State with domestic violence issues. I will entertain a motion.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101-3181 AS RECOMMENDED BY THE GOVERNOR.
Assemblyman Goldwater SECONDED THE MOTION.
THE MOTION CARRIED. (ASSEMBLYWOMAN GIBBONS WAS ABSENT FOR THE VOTE.)
*****
HR, DCFS – Juvenile Accountability Block Grant – Budget Page DCFS–46 (Volume 2)
Budget Account 101-3262
Mr. Peri:
The Juvenile Accountability Incentive Block Grant account was established in FY 1999 to pass 75 percent of the funds through to Nevada’s judicial districts for programs reducing juvenile delinquency. Fifteen percent of the grant is discretionary and recommended to be transferred to the Summit View Youth Correctional Facility budget, BA 101-3148, to assist in operational costs. The recommended amount for Summit View Youth Correctional support is $292,365 in each year of the next biennium. The remaining 10 percent of the grant is retained in the account to fund the continuance of 2.51 FTE positions and related costs. The budget reflects the most recent grant award of $1,949,100 for federal FY 2002, and the President’s budget does not contain funding for this program in federal FY 2004. Staff recommends the budget be closed as recommended by the Governor.
Senator Raggio:
Regarding the 15 percent of the grant to be transferred to Summit View, what would occur if we do not operate it as a State facility? We have not made that decision yet.
Mr. Peri:
That money would still go to support Summit View regardless of whether it was operated by the State or by a private contractor.
Assemblywoman Leslie:
I will entertain a motion.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101-3262 AS RECOMMENDED BY THE GOVERNOR.
SENATOR MATHEWS SECONDED THE MOTION.
Assemblywoman Leslie:
Which grant award are we using, the existing one?
Mr. Peri:
We are using the figure recommended in the Governor’s budget, on the top of page 16, which is $1,949,100. That is the latest actual federal FY 2002 grant award. Fifteen percent of that is $292,365.
Assemblywoman Leslie:
If the amount of the federal grant is different, will we adjust it accordingly?
Mr. Peri:
Yes. The proportions will stay the same. If adjustments need to be made, the division will bring them to the IFC.
Assemblywoman Leslie:
My understanding is that President Bush’s budget has zeroed out this grant.
Larry Carter, Juvenile Justice Commission Staff, State of Nevada Juvenile Justice Commission, Department of Human Resources:
The President’s budget does not fund this program for federal FY 2004, but federal funds may be reinstituted at a later date. This is not an uncommon practice.
Assemblywoman Giunchigliani:
Is the motion to close the budget and have them come back at a later date to tell us whether the recommendation is for Summit View to be state-run or outsourced?
Assemblywoman Leslie:
We will deal with Summit View in a separate budget account. The facility will still receive this 15 percent regardless of the decision on that matter.
THE MOTION CARRIED. (ASSEMBLYWOMAN GIBBONS WAS ABSENT FOR THE VOTE.)
*****
Youth Alternative Placement – Budget Page DCFS–49
Budget Account 101-3147
Mr. Peri:
This budget account funds the China Spring Youth Camp in Douglas County and the Spring Mountain Youth Camp in Clark County. This is primarily a continuation budget with no major closing issues.
Decision unit E-400 recommends salary and operating cost increases for the China Spring facility. The budget recommends that $329,210 in FY 2004 and $385,104 in FY 2005 be fully funded by county participation fees. Historically, costs have been shared, with 36.83 percent coming from the State General Fund and 63.17 percent from the counties. China Spring representatives have informed us that the salary increases are for merit raises rather than cost‑of‑living adjustments. Decision unit E-402 recommends adding a full-time maintenance position to China Spring. The cost is $39,810 in FY 2004 and $41,455 in FY 2005, and this would also be supported with county participation fees. If these two recommendations are approved, future funding will be approximately 30 percent from General Fund support and 70 percent from county funding. It is likely this will become the accepted ratio for future funding at the China Spring facility.
Decision unit E-600 recommends a reduction of approximately 3 percent in General Fund support. The reduced General Fund support in decision unit E-600 totals $30,534 in each year of the biennium. A total of $1616 has also been reduced in each year in the base budget by the elimination of the purchasing assessment.
For your information only, Assembly Bill (A.B.) 368 requests a $103,175 General Fund appropriation to Douglas County for the construction of an emergency well at China Spring. The current well has failed, and the total estimated cost for constructing an emergency well is $300,000. Douglas County anticipates 75 percent, or $225,000, will be funded by a federal United States Department of Agriculture (USDA) Rural Development grant. The requested appropriation would cover the remaining 25 percent, or $75,000, plus $28,175 to cover the cost of hauling water until construction on the well is completed. Four wells have been constructed over the last 20 years, and each has failed. Douglas County’s long-term solution is the construction of a pipeline for an estimated $3.5 million to $4 million. Douglas County will pursue funding for the pipeline during the next legislative session.
ASSEMBLY BILL 368: Makes appropriation to Douglas County for construction of emergency well at China Spring Youth Camp. (BDR S-1192)
Senator Rawson:
Is the land between Gardnerville and China Spring federal land or land that can be developed?
Steven Thaler, Director, China Spring Youth Camp/Aurora Pines Girls Facility:
The majority of the land between Gardnerville and China Spring is federal, tribal, and private land. The entrance to China Spring is bordered by tribal land, and the camp is bordered by federal, tribal, and private land.
Senator Rawson:
Can you give us an idea of the total investment in China Spring? What is the value of the facilities?
Mr. Thaler:
We probably have between $10 million and $12 million invested in infrastructure, including dormitories, the cafeteria, and the vocational building. We now own 160 acres, most of which is a buffer zone created by Douglas County. The value of China Spring is in the children attending the camp. The long-term investment is correcting the water problem.
Senator Rawson:
China Spring is a good facility that definitely meets a need, but it is in a location with a water failure. We need to consider whether there might be another piece of land with better infrastructure. This is a stopgap measure, and we need a better long-range plan.
Mr. Thaler:
We have argued there should be another facility. We have a 6-month waiting list, and there are more kids out there who need this type of treatment. The cost of constructing a pipeline is huge, I agree.
Senator Raggio:
We could probably justify helping on the pipeline if there were other purposes. That is a very high cost for one facility, and installation is not the only cost of piping in water.
Assemblywoman Leslie:
I would like to see all of the youth camps in Nevada included in an interim study. Does Aurora Pines share the water source with China Spring?
Mr. Thaler:
Yes, it does.
Assemblyman Hettrick:
There was a proposal some time ago to have Rite of Passage take over Clear Creek. The residents in the area were vehemently opposed to it, and any program with a confinement aspect would probably meet the same opposition. Replacing the existing infrastructure would probably cost more than constructing a pipeline.
Senator Mathews:
During the last session, we were assured the water problem had been taken care of. What happened?
Mr. Thaler:
China Spring has had water problems ever since I have been there.
Assemblywoman Leslie:
I will entertain a motion.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101-3147 AS RECOMMENDED BY THE GOVERNOR INCLUDING THE RECOMMENDED COUNTY PARTICIPATION FEES.
Assemblyman Hettrick SECONDED THE MOTION.
THE MOTION CARRIED. (ASSEMBLYWOMAN GIBBONS WAS ABSENT FOR THE VOTE.)
*****
Juvenile Correctional Facility – Budget Page DCFS–53 (Volume 2)
Budget Account 101-3148
Mr. Peri:
This budget account funds the operation of the Summit View Youth Correctional Center, a 96-bed secure facility for serious and chronic male offenders located near Nellis Air Force Base. The facility opened in June 2000. The division contracted for the private operation of the facility with Youth Services, International, a subsidiary of Correctional Services Corporation. In September 2001, Correctional Services Corporation notified DHR of its intention to exercise the 6‑month termination clause in the contract and cease facility operation in March 2002. The last resident was removed in January 2002, and the facility has been empty and essentially mothballed since March 2002.
Decision unit E-350 recommends State operation of the facility. A total of 84 new FTE positions are recommended in the budget. Staff cannot provide any closing options today because the Division of Child and Family Services (DCFS) has not provided an amended budget to the Fiscal Division with a revised phase‑in schedule. A revised budget should be provided by April 21 in order to close this budget by May 1.
Senator Rawson:
My first impulse is to save $9 million by cutting it, since we do not have a budget on it. I recommend we bypass this budget today.
Assemblywoman Leslie:
Why is there no revised budget? We discussed this last on April 3, 2003, when you indicated the facility was desperately needed.
Mr. Willden:
Staff are working on the budget as quickly as they can. It should be completed by April 25, 2003.
Mr. Cotton:
A draft was submitted to DHR on April 15, and it is being reviewed.
Senator Cegavske:
I am very disappointed a request for proposal (RFP) was not submitted for the private operation of this facility. If we move forward on this, we need to look at outsourcing some of the services. An RFP needs to be considered by this body.
Assemblywoman Leslie:
That is certainly a possibility. There is strong support in the Assembly for considering the Governor’s recommendation to have it staffed by State employees.
Assemblyman Goldwater:
I concur, though this is certainly not the view of the entire committee.
Mr. Willden:
The budget we are preparing is based on the facility being staffed by State employees rather than outsourced. It is the top priority.
Assemblywoman Leslie:
We will hold BA 101-3148 at this time.
Youth Parole Services – Budget Page DCFS–68 (Volume 2)
Budget Account 101-3263
Mr. Peri:
The Youth Parole Bureau provides supervision and case management services to delinquent youth committed to State-operated correctional facilities, youth on parole from State facilities, youth referred to Nevada from other states for parole supervision through the Interstate Compact, and youth under 12 years of age who by law cannot be placed in an institutional setting. This budget continues 36.02 existing positions for the next biennium.
Decision unit M-502 recommends $113,520 in General Fund support in each year of the biennium for psychiatric consultations and medications to address the needs of youth in residence diagnosed with mental health or substance abuse disorders. This complies with the Civil Rights for Institutionalized Persons Act (CRIPA) investigation conducted by the U.S. Department of Justice at the Nevada Youth Training Center. The recommendation provides for 16 hours of contract psychiatric services per month for the Nevada Youth Training Center, the Caliente Youth Center, and the Youth Parole Bureau. The contract costs total $69,120, travel time expenses total $14,400, and medications total $30,000.
An amendment proposed by DCFS in their April 15, 2003, “Memorandum to John P. Comeaux, Director, Department of Administration,” removes costs from decision unit M-502 for the Caliente Youth Center and the Nevada Youth Training Center from BA 101-3263 (Exhibit C). The General Fund reduction is from $113,520 to $41,520 in each year of the biennium, a proposed reduction of $72,000 each year. The Budget Division has not yet made recommendations on this amendment.
Senator Raggio:
Are psychiatric services readily available at the youth facilities?
Mr. Willden:
The question is unanswered at this time. In the rural clinics, we struggle with this every year. We have great difficulty attracting mental health professionals to rural Nevada, and I am sure the facilities at Elko and Caliente will also struggle with it.
Senator Raggio:
As a practical matter, before we approve these funds I would like some inquiry to be made to determine whether psychiatric services are available in the rural areas and meet CRIPA standards. I agree it might be essential.
Senator Rawson:
This is an ongoing problem we have been dealing with for many sessions. My sense is there are no mental health services in Caliente, partly because there is no airport.
Mr. Willden:
These services will no doubt have to be contracted from the Las Vegas or southern Utah areas.
Assemblywoman Giunchigliani:
Could mental health services be outsourced to the rural areas?
Mr. Willden:
The division could consider outsourcing mental health services.
Assemblywoman Leslie:
I am very disappointed that we had the CRIPA hearing on March 20, 2003, and we did not get this information until yesterday afternoon. I am told more information is coming over, so I think we should hold this budget until we have all the data.
Mr. Willden:
As you know, there are multiple issues with the CRIPA investigation and process. We have tried to concentrate on those issues with no financial component.
Assemblywoman Leslie:
We want as much time as possible to consider these matters. We will hold this budget until we have more information.
Assemblywoman Leslie:
There being no further business, the meeting is adjourned at 9:46 a.m.
RESPECTFULLY SUBMITTED:
Lynn Hendricks,
Committee Secretary
APPROVED BY:
Assemblywoman Sheila Leslie, Chairman
DATE:
Senator Raymond D. Rawson, Chairman
DATE: