MINUTES OF THE
JOINT Subcommittee on
Public Safety/Natural Resources/Transportation
of the
Senate Committee on Finance
AND THE
Assembly Committee on Ways and Means
Seventy-second Session
April 17, 2003
The Joint Subcommittee on Public Safety/Natural Resources/Transportation of the Senate Committee on Finance and the Assembly Committee on Ways and Means was called to order by Chairman Dean A. Rhoads at 8:15 a.m. on Thursday, April 17, 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.
Senate COMMITTEE MEMBERS PRESENT:
Senator Dean A. Rhoads, Chairman
Senator Sandra J. Tiffany
Senator Bob Coffin
Assembly COMMITTEE MEMBERS PRESENT:
Mr. David R. Parks, Chairman
Ms. Christina R. Giunchigliani
Mr. Joshua B. Griffin
Ms. Sheila Leslie
Mr. John W. Marvel
Mr. Richard D. Perkins
STAFF MEMBERS PRESENT:
Bob Guernsey, Principal Deputy Fiscal Analyst
Steven J. Abba, Principal Deputy Fiscal Analyst
Mark Krmpotic, Senior Program Analyst
Michael J. Chapman, Program Analyst
Brian M. Burke, Senior Program Analyst
Mindy Braun, Education Program Analyst
Denise Davis, Committee Secretary
OTHERS PRESENT:
Virginia Lewis, Director, Department of Motor Vehicles
R. Michael Turnipseed, Director, State Department of Conservation and Natural Resources
Catherine Barcomb, Administrator, Commission for the Preservation of Wild Horses, State Department of Conservation and Natural Resources
Glenn Clemmer, Program Manager, Nevada Natural Heritage Program, State Department of Conservation and Natural Resources
Wayne R. Perock, Administrator, Division of State Parks, State Department of Conservation and Natural Resources
Steve Robinson, State Forester Firewarden, Division of Forestry, State Department of Conservation and Natural Resources
Pete Anderson, Deputy State Forester, Division of Forestry, State Department of Conservation and Natural Resources
Steven Bremer, Administrative Services Officer III, Division of Wildlife, State Department of Conservation and Natural Resources
Kelly Clark, Chief, Conservation Education, Division of Wildlife, State Department of Conservation and Natural Resources
Giles E. Vanderhoof, Major General, The Adjutant General of Nevada, Office of the Military
DEPARTMENT OF MOTOR VEHICLES
DMV, Director’s Office – Budget Page DMV-1 (Volume 3)
Budget Account 201-4744
Mark Krmpotic, Senior Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau:
My remarks are contained in “Closing List #3,” pages 2 and 3 (Exhibit C. Original is on file in the Research Library.).
E-300 Maximize Internet & Technology – Page DMV-3
Enhancement unit 300 (E-300) recommends Highway Fund appropriations of $100,000 in each year of the biennium to fund a continuous public awareness campaign to increase use of alternative technologies by citizens requiring a vehicle registration or driver’s license renewal. If the subcommittee approves the recommended funding for the media campaign, staff suggests isolating it in a special category in the Department of Motor Vehicles (DMV) Director’s Office budget.
E-909 Transfer From B/A 4745 – Page DMV-5
E-950 Transfer From B/A 4745 – Page DMV-6
E-951 Transfer From B/A 4745 – Page DMV-6
E-952 Transfer From B/A 4745 – Page DMV-7
Decision units E-909, E-950, E-951, and E-952 concern the recommended transfer of the personnel unit from the Administrative Services Division budget account to the DMV Director’s Office budget account. The transfer appears reasonable to staff. Staff has made technical adjustments to E-909 to include vacancy savings and to eliminate telephone expenses. If the subcommittee approves the transfer, staff requests approval to make changes to these decision units based on final approval of the Administrative Services Division budget account.
E-226 Reward More Efficient Operations – Page DMV-3
Decision unit E-226 recommends Highway Fund appropriations for travel to attend American Association of Motor Vehicle Administrator conferences. Staff notes the amounts recommended represent the net increase over the base budget to provide for this travel. Staff has made technical adjustments to reduce recommended funding.
E-500 Accessible, Flexible, Cost-Efficient Government – Page DMV-3
Decision unit E-500 recommends $1100 in each year of the biennium for press kit materials and professional organization membership dues. Staff has eliminated $130 of initiation fees in the second year of the biennium because they will not recur.
E-715 Computer/Printer Replacements – Page DMV-4
Decision unit E-715 recommends funding for computer equipment and software. Staff has decreased this module to reflect recent price revisions from the Purchasing Division and to reflect the change from network printers to stand‑alone printers.
E-720 New Equipment – Page DMV-4
Decision unit E-720 recommends Highway Fund appropriations for assorted office equipment. Staff eliminated the laminator due to lack of justification from the agency and eliminated the laptop computer and software because the agency can share existing laptop computers among internal audit staff.
Staff seeks approval to make changes to the cost allocation in this budget account based on final approval of the cost allocations for the department’s budget accounts.
Assemblywoman Giunchigliani:
Could we discuss the advertising campaign? Since everyone wants to go beyond the cap to the Highway Fund, I have some concerns about taking the money for this purpose at this time.
Virginia Lewis, Director, Department of Motor Vehicles:
We are currently in the middle of an advertising campaign approved by the Interim Finance Committee (IFC). We have reached 17 percent usage on the Web site; statistics show that when we have an advertising campaign, usage increases. It is critical that we make an effort to get the information out because we find many people do not know that alternative services are available. If we intend to reduce the number of people in the DMV offices, it is important to inform people of the alternatives.
Assemblywoman Giunchigliani:
What other evaluation do you perform? Do employees ask people who come into the office if they have seen or heard the advertisements? Throwing $200,000 at this will not penetrate the market or make much of a difference.
Ms. Lewis:
We have weekly statistics on every alternative service we provide. We monitor those benchmarks. If customers have already come into the office, they are there for a reason: they have no other choice, they have cash, or they want the decal when they leave the office.
Assemblywoman Giunchigliani:
Do you ask people using the Internet how they learned about the Web site?
Ms. Lewis:
When we started the Web site, we asked people how they had conducted their transactions the previous year. We were trying to determine whether we were decreasing DMV office visits or the renewal by mail program. Statistics indicated it was evenly split. We have operated our Web site for 3 years; we stopped our inquiry about a year ago because results remained steady. My experience with public groups has been lack of information; once people know about the Web site and try it, they like it.
Assemblywoman Giunchigliani:
Who is doing the advertising campaign?
Ms. Lewis:
It is done in-house; we have two public information officers.
Assemblywoman Giunchigliani:
What would $200,000 achieve over the biennium?
Ms. Lewis:
Our current campaign alternates monthly between northern Nevada and southern Nevada. We use a lot of radio in Las Vegas to reach commuters. We did television in the north. Print is very expensive, but it is the best way to reach the rural areas. We get the best results through radio and television.
Assemblywoman Giunchigliani:
Television is very expensive.
Senator Coffin:
I do not have problems with any of the units in the budget, although I do think the department can do better in the media methods. My point is all the money will come out of the Highway Fund; I am not ready to approve any vote that takes money out of the Highway Fund for the DMV until the overall issue of raising money to avoid spending 29 percent of the Highway Fund on the department is resolved. It takes away money to build roads that we desperately need. For that reason, I am not going to vote to approve at this point.
ASSEMBLYMAN PARKS MOVED TO CLOSE BUDGET ACCOUNT 201‑4744 AS RECOMMENDED BY STAFF.
ASSEMBLYWOMAN LESLIE SECONDED THE MOTION.
Senator Coffin:
I feel fees need to be increased; a method for increasing fees has been devised and proposed but has not yet been accepted by the DMV. It would be beneficial for all of us to consider how we increase fees, so we might stop “robbing” the Highway Fund to help this agency along. The DMV needs help, but we are taking it from the wrong source.
Assemblywoman Giunchigliani:
Could we clarify what we are voting on? At a previous meeting, staff presented several different options for funding.
Mr. Krmpotic:
The first option discussed increases the cap to 29 percent. The second option primarily includes fee increases to maintain the department at the existing 22 percent cap. One item in this option doubles the vehicle registration fee and the driver’s license fee for new transactions only, not renewal transactions. A second item in this option adds a $2 increase to record search fees. Staff suggests using reversions from the records search account to offset Highway Fund appropriations in the Central Services and Records Division budget; this will help bring the department under the 22 percent cap because the cap is measured strictly against Highway Fund appropriations. The proposal has two parts: one, move the record search reversions to the Central Services and Records Division budget; and two, increase record search fees by $2, which will generate approximately $2.7 million each year to offset Highway Fund appropriations.
A third item included in the 22 percent cap option is an added charge to dealer reports of sale of approximately $8.25 per report; this will add approximately $2 million each year. Staff proposes this amount be moved to the Administrative Services Division budget to offset Highway Fund appropriations. Staff included the possible passage of Assembly Bill (A.B.) 30 (1st Reprint), which restricts refunds, in the 22 percent cap option.
ASSEMBLY BILL 30 (1st Reprint): Revises provisions regarding registration of motor vehicles. (BDR 43-67)
If A.B. 30 (1st Reprint) passes, staff estimates $1.1 million of additional revenue to the Highway Fund; this will increase the DMV’s funding by 22 percent. The administration is still discussing the two options.
Assemblywoman Giunchigliani:
Do we have to take action today on that part to close the budget?
Mr. Krmpotic:
Enhancements in this account will increase Highway Fund appropriations to the DMV Director’s Office. If the subcommittee considers a solution to keep the department under the 22 percent cap by reducing expenditures, some of the enhancements could be considered to achieve that.
Assemblywoman Giunchigliani:
Perhaps we could recommend the items staff and the administration have worked out so far and set aside the other items; we can indicate our intent is to stay below the 22 percent cap. We would increase the record search fee and double the fees on new titles and driver’s licenses.
Senator Rhoads:
Is that a motion?
Assemblywoman Giunchigliani:
I will add that wherever we have items to discuss with the administration, we can still address those and bring them back to the subcommittee.
Ms. Lewis:
When I brought the proposal including fee increases to the Governor, he accepted everything except increasing the registration and driver’s license fees.
Assemblywoman Giunchigliani:
The Governor proposed the Highway Fund reversions from the Verification of Insurance account. Maybe we should take those items out of this motion. Our intent is to stay below the 22 percent cap. We can agree on the other revenue streams and work the rest out while the other closings are pending.
Assemblyman Parks:
I will be happy to accept that amendment to the motion.
ASSEMBLYWOMAN GIUNCHIGLIANI MOVED TO CLOSE BUDGET ACCOUNT 201-4744 AS RECOMMENDED BY STAFF, WITH THE INTENT TO STAY BELOW THE 22 PERCENT CAP AND TO EXPLORE ADDITIONAL REVENUE STREAMS AND TO INCREASE THE RECORD SEARCH FEE.
ASSEMBLYWOMAN LESLIE SECONDED THE MOTION.
Assemblyman Perkins:
One ongoing concern is the pressure new residents are putting on the DMV. I know there are difficulties in getting funds from new and not existing residents, but I would like to see some type of fee when nonresidents turn in their driver’s licenses and registrations from other states.
ASSEMBLY: THE MOTION CARRIED UNANIMOUSLY.
SENATE: THE MOTION CARRIED. (SENATOR COFFIN VOTED NO.)
*****
Senator Coffin:
Now that we have voted, I would like to add I met with the Governor yesterday on this issue. His understanding was the fee increase was not for new transactions only; the fee increases would apply to every transaction. Staff and the Governor need to clarify the proposal. The proposal I put forth is very similar to Assemblyman Perkins’ proposal; the new residents who are putting pressure on the DMV and the road system should pay some of the costs of dealing with that pressure. I do not think the Governor was given correct information.
Ms. Lewis:
At a previous subcommittee meeting, I pointed out the department cannot isolate new residents for purposes of projections and revenues. The proposal identified all first-time registrations and driver’s licenses. I made it very clear to the Governor it would affect people moving into the state; it would also affect current residents who purchase a new vehicle. I cannot give you any data regarding revenue from new residents moving into the state.
Senator Coffin:
That revenue has been calculated by you and included in documents I have seen. The registration fee does not have to be doubled from $33 to $66; to maintain the 22 percent cap, the increases could be less. I understand it is difficult for you to determine whether I just moved to Nevada and bought a car or whether I am an existing resident buying a car; any new car registered will pay a higher fee. Driver’s licenses are a different situation; when the old license is turned in, you know the person is from a different state. These are the scenarios I explained to the Governor and he has a clearer understanding of my intent.
Ms. Lewis:
I understand what you are saying; I am saying I cannot give staff data so we can calculate fees to meet expenditures.
DEPARTMENT OF CONSERVATION AND NATURAL RESOURCES
Heil Wild Horse Bequest – Budget Page CNR-14 (Volume 3)
Budget Account 607-4156
R. Michael Turnipseed, Director, State Department of Conservation and Natural Resources:
In previous hearings, the Virginia Range group presented some misinformation; they testified much of the work done by the Commission for the Preservation of Wild Horses duplicates U.S. Bureau of Land Management (BLM) work. This is not true. The horses in the Virginia Range are within the jurisdiction of the U.S. Department of Agriculture, not our program. If Assembly Bill (A.B.) 474 does not pass, we will have to close the commission’s office in 2005.
ASSEMBLY BILL 474: Revises provisions governing payment of expenses of Commission for the Preservation of Wild Horses from money in Heil Trust Fund for Wild Horses. (BDR 45-1261)
Staff has projected a balance of $22,000, but that amount is dependent on interest rates and other expenditures. This is a one-person office; Leo Heil willed money for the office to the State. If the office closes, the money will sit in its account until enough interest is earned to reopen the office. Principal will be used to pay annual leave and other expenses even if the office is closed.
Michael J. Chapman, Program Analyst, Fiscal Analysis Division, Legislative Counsel bureau:
My remarks are contained in “Closing List #3,” pages 4 and 5. The original bequest was $485,440; the Executive Budget recommends an ending reserve of $578,051. Two items not reflected in the Executive Budget will reduce the reserves to $508,042. If passed, A.B. 474 will amend Nevada Revised Statutes (NRS) 504.450 to allow the agency to use principal from the bequest once interest earnings are exhausted. There has been discussion regarding unclassified salary adjustments for the administrator’s position; unclassified salary adjustments have not been included in the Executive Budget and could impact this account if approved.
M-400 Travel & Training Adjustment – Page CNR-16
Maintenance unit 400 (M-400) reinstates in-state and out-of-state travel not incurred during the current biennium.
E-375 Environmental Policies & Programs – Page CNR-16
Decision unit E-375 recommends $540 each year in reserve funding for printing costs to reflect the relocation of the commission’s office to the Washoe Valley forestry building. Staff recommends an adjustment to eliminate the costs in the second year of the biennium.
Senator Rhoads:
What is the status of A.B. 474?
Mr. Turnipseed:
It was heard in the Assembly Committee on Ways and Means on April 15. The stipulation that the commission could only use the interest income was not in Leo Heil’s will; that was done by the 68th Session.
Senator Rhoads:
Who is sponsoring A.B. 474?
Mr. Turnipseed:
The State Department of Conservation and Natural Resources is sponsoring it.
Catherine Barcomb, Administrator, Commission for the Preservation of Wild Horses, State Department of Conservation and Natural Resources:
During the 71st Session, the Legislature endorsed funding for the Wild Horse and Burro Foundation, which is a joint effort with the BLM. We knew this would not leave enough money in the bequest for operations in perpetuity, but we projected operations for 10 to 12 years. Reduced interest rates have forced us to use principal sooner than planned.
Assemblyman Marvel:
In view of the drought we have been experiencing, it is imperative we draw from the Heil fund to preserve the wild horses. There seemed to be some confusion about how the money will be used. By my estimate, the ranchers have provided more improvements for the horse program than the BLM has. I am in favor of A.B. 474.
Mr. Chapman:
Staff requests authority to make technical adjustments for the changes in the cost-allocation to the director’s office based upon budget closing actions in that account.
Assemblyman Marvel:
What will happen if we close this budget as recommended by staff and A.B. 474 does not pass?
Mr. Turnipseed:
There will be a “cushion” of about $2000, based on staff recommended expenditures. If A.B. 474 does pass, there will be more flexibility in the budget. The “cushion” is based on projected interest income.
Assemblyman Marvel:
If we close the budget as recommended by staff and A.B. 474 does not pass, can we revisit this budget?
Mr. Chapman:
The ending reserve will be $22,000, not $2000. This is based on recommended expenditures in the budget; the agency typically has not spent the entire amount budgeted. Interest income has been adjusted down by the agency to $19,000 in the first year of the biennium and $17,000 in the second year. If the interest income is depleted before the end of the biennium, there is a dilemma; to comply with State law, the office would have to close. If the bill does not pass, the committee can revisit the budget.
ASSEMBLYMAN MARVEL MOVED TO CLOSE BUDGET ACCOUNT 607‑4156 AS RECOMMENDED BY STAFF, CONTINGENT ON PASSAGE OF ASSEMBLY BILL 474.
ASSEMBLYMAN PARKS SECONDED THE MOTION.
Assemblywoman Giunchigliani:
If we close the budget as it is, does that mean no principal amount will be used? If A.B. 474 does not pass, there is nothing else we can do.
ASSEMBLY: THE MOTION CARRIED UNANIMOUSLY.
SENATE: THE MOTION CARRIED UNANIMOUSLY.
*****
Nevada Natural Heritage – Budget Page CNR-27 (Volume 3)
Budget Account 101-4101
Mr. Chapman:
My remarks are contained in “Closing List #3,” page 6. Staff notes no major closing issues in this account.
M-400 Travel & Training Adjustment – Page CNR-29
Decision unit M-400 recommends funding to reinstate travel that was not incurred during the current biennium.
E-710 Replacement Equipment – Page CNR-30
Decision unit E-710 recommends federal funding to replace computer software and hardware. Staff recommends replacing one of the computer-aided design and drafting workstations with a standard desktop computer for the accounting assistant position. Staff recommends technical adjustments for revised computer prices as provided by the Purchasing Division.
Staff requests authority to make technical adjustments to the director’s office cost-allocation based on closing actions by the Legislature.
Senator Rhoads:
What is the definition of a “sensitive species”?
Glenn Clemmer, Program Manager, Nevada Natural Heritage Program, State Department of Conservation and Natural Resources:
“Sensitive species” is a generic term used to avoid the federal term “threatened and endangered species;” it includes species from BLM and Nevada Native Plant Society lists which are threatened, vulnerable, or rare. There is no regulatory definition.
Senator Rhoads:
Is sage grouse a “sensitive species?”
Mr. Clemmer:
We track the sage grouse; the Division of Wildlife keeps the primary records. The term could include grasshoppers if there is a small, endemic population; I do not know of any such population in Nevada. We also track plants and invertebrates.
ASSEMBLYMAN MARVEL MOVED TO CLOSE BUDGET ACCOUNT 101‑4101 AS RECOMMENDED BY STAFF.
ASSEMBLYMAN PARKS SECONDED THE MOTION.
ASSEMBLY: THE MOTION CARRIED. (ABSENT FOR THE VOTE WAS ASSEMBLYWOMAN GIUNCHIGLIANI.)
SENATE: THE MOTION CARRIED UNANIMOUSLY.
*****
State Parks – Budget Page CNR-38 (Volume 3)
Budget Account 101-4162
Mr. Chapman:
My remarks are contained in “Closing List #3,” pages 8 through 11.
E-840 AB9 Conservation Bonds – Page CNR-44
Decision unit E-840 concerns three new positions for implementation of the Question 1 bond program approved by voters in the November 5, 2002, election. Based on the information submitted by the agency, the positions appear to be reasonable. Staff recommends technical adjustments for revised computer software pricing.
Question 1 includes $1.5 million in bond funds for Floyd Lamb State Park. Senate Bill (S.B.) 444 may transfer the park to the City of Las Vegas.
SENATE BILL 444: Authorizes transfer of certain real property owned by State of Nevada to City of Las Vegas. (BDR S-517)
If S.B. 444 passes and the park is transferred, the division will not use the $1.5 million. If the park is not transferred, the division intends to use the funds to make improvements.
E-275 Working Environment & Wage – Page CNR-41
Decision unit E-275 recommends a new accounting assistant I position. No General Fund support is recommended for this position; it will be funded through increased user fees and increased compliance with fee payment. A technical adjustment has been made to eliminate an input error. Based on information justifying the position, the recommendation appears to be reasonable.
E-276 Working Environment & Wage – Page CNR-41
Decision unit E-276 recommends a maintenance repair worker position. This position is funded with General Fund appropriations; General Fund appropriations for the adjusted base budget for seasonal positions has been reduced to compensate for the General Fund need to support this position. Staff recommends technical adjustments to remove duplicate uniform allowance costs and eliminate Department of Information Technology Internet charges. Staff recommends adjustments to seasonal salary costs in the adjusted base budget, with a corresponding adjustment in General Fund appropriations.
Senator Tiffany:
We heard a lot about the transfer of Floyd Lamb State Park in the Senate Committee on Government Affairs. If the park is transferred, is there any way the bond money could be used for the Belmont Courthouse State Historic Park?
Wayne R. Perock, Administrator, Division of State Parks, State Department of Conservation and Natural Resources:
We would be open to a variety of ideas. If Floyd Lamb State Park is transferred, we will assess our other needs; we have more projects than we listed. We want to do a feasibility study on the Belmont Courthouse.
Senator Tiffany:
The Belmont Courthouse has fallen to the bottom of the list for the last 4 years; the building continues to decay.
Mr. Perock:
One of our first projects planned after the bonds are sold is a feasibility study to direct us.
Senator Coffin:
I visited Ward Charcoal Ovens State Historic Park 3 years ago and was impressed with the shape they were in. I hope they have not deteriorated due to lack of staff.
Mr. Perock:
We have been doing stabilization for the last few years. A ranger works between Ward Charcoal Ovens and Cave Lake State Park; we have an on-site presence to protect the historic resources. We plan to expand the campground for greater services at the park.
Senator Coffin:
Will the new position be on-site to help prevent defacing and other vandalism?
Mr. Perock:
To restore the structures, we used inmate crews to repoint the mortar. This position is a maintenance position; the likelihood of vandalism decreases any time there is a physical presence.
E-377 Tahoe License Plate Funding Adj – Page CNR-42
Mr. Chapman:
To continue the park ranger position assigned to the Lake Tahoe Environmental Improvement Program, the Executive Budget proposes replacing the lodging tax receipts with General Fund appropriations in the adjusted base budget due to reduced lodging tax receipts. The General Fund appropriations will be replaced with transfers from the Lake Tahoe license plate account. Due to an error during the budget process, the Lake Tahoe license plate funding was duplicated in the adjusted base budget and E-377. Staff recommends an adjustment eliminating the duplicate funding from the license plate fund as displayed in the adjusted base budget, and restoration of the General Fund appropriations.
Due to concerns regarding the use of the Lake Tahoe license plate funds, the Budget Division submitted a second amendment to replace the license plate funding with bond proceeds and interest earnings from the 1996 Tahoe Bond Act account. The amendment also reduces General Fund support for the position. In order to enable the funding change from General Fund appropriations to 1996 Tahoe Bond Act funds, staff recommends the subcommittee request legislation to amend A.B. No. 13 of the 68th Session to include “and other programs to protect Lake Tahoe.”
If the subcommittee does not wish to approve the amendment, there are other options to consider. Approval of E-377 can be denied and General Fund appropriations will be used to continue support of the position. Bond and interest earnings from the Fund to Protect Lake Tahoe could be utilized to support the position in lieu of the 1996 Tahoe Bond Act funds. Decision unit E‑377 can be denied and General Fund appropriations supporting the position can be denied.
Lodging tax receipts have been significantly reduced in the adjusted base budget.
E-730 Maintenance of Buildings and Grounds – Page CNR-43
E-731 Maintenance of Bldgs and Grounds – Page CNR-44
E-732 Maintenance of Bldgs and Grounds – Page CNR-44
Decision units E-730, E-731, and E-732 recommend General Fund appropriations for continuation of park facility maintenance, including minor maintenance projects and improvement projects.
E-712 Replacement Equipment – Page CNR-43
Decision unit E-712 recommends General Fund appropriations to replace equipment that did not fall within the “two times” rule, an Executive Branch formula to limit agency budget requests. Staff recommends technical adjustments reflecting revised computer hardware and software pricing as provided by the Purchasing Division.
Several items are listed under “Other Items” on page 11 of “Closing List #3.” The Division of State Parks submitted a list of items funded through previous legislation to the Budget Division; this list is on pages 12 and 13. The subcommittee may wish to recommend legislation be introduced to amend Sections 5 and 7 of S.B. No. 448 of the 71st Session to extend the reversion date to June 30, 2005. The subcommittee may also wish to recommend legislation be introduced to amend Section 17 of S.B. No. 586 of the 71st Session to authorize the Division of State Parks to carry forward lodging tax receipts balances for park improvements into the 2003-2005 biennium.
Assemblywoman Giunchigliani:
I would like to discuss the elimination of the lodging tax transfers in the Executive Budget. Were they eliminated because there was not enough money in the fund at that time?
Mr. Chapman:
The short answer is yes. Receipts have dropped off and reserves will be reduced to approximately $1 million by the end of this biennium. The lodging tax receipts have been used to continue tourism’s operating budget.
Assemblywoman Giunchigliani:
In the Assembly, we are discussing the consolidation of economic development and tourism and giving the grants directly to development authorities. We might be able to capture some of the money saved through this move if it is approved.
Senator Rhoads:
Do we have to do anything different in regard to Floyd Lamb State Park?
Mr. Chapman:
No; funding is provided through Question 1. Transfers to support the three recommended positions come from Question 1.
Senator Rhoads:
If we do not amend A.B. No. 13 of the 68th Session, do we have to choose one of the three alternatives listed on page 10? Does staff recommend we amend A.B. No. 13 of the 68th Session?
Mr. Chapman:
That would be the preferable approach at this time; it is supported by the Budget Division and the Legal Division.
Senator Rhoads:
Does staff recommend we extend S.B. No. 448 of the 71st Session so these projects can continue?
Mr. Chapman:
Yes; the subcommittee will have to recommend legislation to the Senate Committee on Finance or the Assembly Committee on Ways and Means.
Assemblywoman Giunchigliani:
In other subcommittees, we have started lists of things to consider augmenting if additional revenues became available.
ASSEMBLYWOMAN GIUNCHIGLIANI MOVED TO CLOSE BUDGET ACCOUNT 101-4162 AS RECOMMENDED BY STAFF WITH AUTHORITY FOR STAFF TO MAKE TECHNICAL ADJUSTMENTS, AND TO RECOMMEND LEGISLATION BE INTRODUCED AMENDING SECTIONS 5 AND 7 OF S.B. NO. 448 OF THE 71ST SESSION TO EXTEND THE REVERSION DATE TO JUNE 30, 2005, AND TO RECOMMEND LEGISLATION BE INTRODUCED AMENDING SECTION 17 OF S.B. NO. 586 OF THE 71ST SESSION AUTHORIZING THE DIVISION OF STATE PARKS TO BALANCE FORWARD LODGING RECEIPTS FOR PARK IMPROVEMENTS INTO THE 2003-2005 BIENNIUM, AND TO UTILIZE BOND AND INTEREST EARNINGS FROM THE FUND TO PROTECT LAKE TAHOE TO SUPPORT E-377 POSITION COSTS IN LIEU OF 1996 TAHOE BOND ACT FUNDS.
ASSEMBLYMAN PARKS SECONDED THE MOTION.
Assemblyman Marvel:
Do you have to wait for the Question 1 bonds to be sold before the positions funded by them can be filled?
Mr. Perock:
Recruiting will start right away. When the money becomes available, the positions will be filled. When the bond program is completed, the positions will cease to exist.
Senator Rhoads:
Staff recommends we write a Letter of Intent.
Mr. Chapman:
When we closed some of the other conservation accounts last week, the subcommittee recommended that a Letter of Intent be issued that provided for approval of these positions contingent upon funding becoming available through the issuance of the Question 1 bonds.
Assemblywoman Giunchigliani:
I agree with that suggestion.
ASSEMBLYWOMAN GIUNCHIGLIANI MOVED TO CLOSE BUDGET ACCOUNT 101-4162 AS RECOMMENDED BY STAFF WITH AUTHORITY FOR STAFF TO MAKE TECHNICAL ADJUSTMENTS, AND TO RECOMMEND LEGISLATION BE INTRODUCED AMENDING SECTIONS 5 AND 7 OF S.B. NO. 448 OF THE 71ST SESSION TO EXTEND THE REVERSION DATE TO JUNE 30, 2005, AND TO RECOMMEND LEGISLATION BE INTRODUCED AMENDING SECTION 17 OF S.B. NO. 586 OF THE 71ST SESSION AUTHORIZING THE DIVISION OF STATE PARKS TO BALANCE FORWARD LODGING RECEIPTS FOR PARK IMPROVEMENTS INTO THE 2003-2005 BIENNIUM, AND TO UTILIZE BOND AND INTEREST EARNINGS FROM THE FUND TO PROTECT LAKE TAHOE TO SUPPORT E-377 POSITION COSTS IN LIEU OF 1996 TAHOE BOND ACT FUNDS, AND TO ISSUE A LETTER OF INTENT REGARDING THE APPROVAL OF POSITIONS CONTINGENT UPON FUNDING BECOMING AVAILABLE THROUGH THE ISSUANCE OF THE QUESTION 1 BONDS.
ASSEMBLYMAN PARKS SECONDED THE MOTION.
ASSEMBLY: THE MOTION CARRIED UNANIMOUSLY.
SENATE: THE MOTION CARRIED. (SENATOR COFFIN WAS ABSENT FOR THE VOTE.)
*****
Forestry – Budget Page CNR-109 (Volume 3)
Budget Account 101-4195
Mr. Chapman:
My remarks are contained in “Closing List #3,” pages 15 through 17. The first closing issue deals with funding modification due to changes in policy regarding Division of Forestry and Division of Wildlife air operations. This item was not included in the Executive Budget; an amendment reflecting the changes in the revenue sources for three positions was submitted. The changes noted in the budget amendment appear to be adequate to effectuate the change in funding methodology.
E-377 Tahoe License Plate Funding Adjustment – Page CNR-114
Decision unit E-377 is similar to the issue previously explained during the budget discussion for state parks; it is a funding shift for a forester position assigned to the Lake Tahoe Environmental Improvement Program. The Executive Budget recommends replacing General Fund appropriations with transfers from the Lake Tahoe license plate account. An amendment replaces license plate funding with transfers of interest earnings from the 1996 Tahoe Bond Act account. Funds from the Lake Tahoe Environmental Improvement Program support the remaining costs for this position. Staff recommends the subcommittee take a closing action similar to the action taken in the budget for state parks.
E-500 Accessible, Flexible, Cost-Efficient Government – Page CNR-114
Decision unit E-500 is a reduction in the county cost-allocation receipts received to support Division of Forestry administration for county fire protection districts. During the interim, the state forester developed a task force to develop a more realistic and equitable formula for future calculations. The new calculation reduces the allocation by $56,230. On June 18, 2002, the IFC approved the transfer of a program information specialist from the intergovernmental agreement account to the Forestry budget; the position would be funded equally by federal grants and a transfer from the intergovernmental agreement account. The adjusted base budget reflects support for 50 percent of the transferred position.
The Executive Budget recommends eliminating a forestry staff specialist position that has been vacant to fund the allocation reduction. It has been recommended that the slight increase in General Fund appropriations, combined with savings from the eliminated position, be used for a maintenance contract for the heating, ventilating, and air conditioning system in the Elko dispatch center.
E-502 Accessible, Flexible, Cost-Efficient Government – Page CNR-115
Decision unit E-502 concerns a new administrative services officer position. A shared position was approved by the 71st Session, but the Governor now recommends keeping that position in the director’s office fiscal unit. This new position will support the Division of Forestry fiscal unit; a recent Legislative Counsel Bureau audit report identified numerous concerns regarding payroll, overtime, fire reimbursements, and fire reimbursements made to other State agencies. Based on information submitted by the agency, the recommendation for the new position appears to be reasonable. Staff recommends technical adjustments with the addition of vacancy savings for the position and to reflect revised computer software and hardware prices.
The Division of Forestry fiscal unit has been transferred back to the supervision of the state forester’s office; the Executive Budget transfers the associated funding to the Division of Forestry account. Staff recommends technical adjustments to align the proper grade and step of positions transferred to the amounts included in the adjusted base budget in the director’s office. Staff also recommends a technical adjustment eliminating the rent for a building not owned by the State.
E-277 Working Environment & Wage – Page CNR-114
Decision unit E-277 recommends General Fund appropriations to support two seasonal accounting positions utilized during the fire season.
Additional technical adjustments are recommended by staff to reduce General Fund appropriations based on amounts provided by the Buildings and Grounds Division. A technical adjustment to reduce General Fund appropriations for vacancy savings for increased fringe benefit costs in M-300 is also recommended.
Steve Robinson, State Forester Firewarden, Division of Forestry, State Department of Conservation and Natural Resources:
I have nothing to add.
ASSEMBLYMAN MARVEL MOVED TO CLOSE BUDGET ACCOUNT 101‑4195 AS RECOMMENDED BY STAFF AND WITH TECHNICAL ADJUSTMENTS RECOMMENDED BY STAFF.
ASSEMBLYWOMAN LESLIE SECONDED THE MOTION.
Senator Rhoads:
We need to add a recommendation to that motion.
Steven J. Abba, Principal Deputy Fiscal Analyst, Fiscal Analysis Division, Legislative Counsel Bureau:
You need to include a request for legislation to continue funding for the positions, similar to what you did during the state parks budget.
ASSEMBLYMAN MARVEL MOVED TO CLOSE BUDGET ACCOUNT 101‑4195 AS RECOMMENDED BY STAFF AND WITH TECHNICAL ADJUSTMENTS RECOMMENDED BY STAFF AND TO RECOMMEND LEGISLATION BE INTRODUCED AMENDING SECTION 3 OF A.B. NO. 13 OF THE 68TH SESSION TO INCLUDE “AND OTHER PROGRAMS TO PROTECT LAKE TAHOE.”
ASSEMBLYWOMAN LESLIE SECONDED THE MOTION.
ASSEMBLY: THE MOTION CARRIED. (ABSENT FOR THE VOTE WAS ASSEMBLYWOMAN GIUNCHIGLIANI.)
SENATE: THE MOTION CARRIED. (ABSENT FOR THE VOTE WAS SENATOR COFFIN.)
*****
Forest Fire Suppression – Budget Page CNR-120 (Volume 3)
Budget Account 101-4196
Mr. Chapman:
My remarks are contained in “Closing List #3,” pages 18 and 19. Similar to the issue previously explained during the Forestry budget discussion, recent changes in policy regarding air operations have resulted in a budget amendment. Staff recommends the same closing action for this account as was made in the Forestry budget.
ASSEMBLYMAN PARKS MOVED TO CLOSE BUDGET ACCOUNT 101‑4195 AS RECOMMENDED BY STAFF.
ASSEMBLYWOMAN LESLIE SECONDED THE MOTION.
Assemblyman Marvel:
What is the “Other Fund” noted on page 18?
Mr. Chapman:
It is the projected fire reimbursement costs, based on an average from the last several years. This amount fluctuates depending on the nature of the fire season.
Assemblyman Marvel:
Are all accounts receivable paid?
Mr. Robinson:
No. In anticipation of that question, I had an update prepared.
Pete Anderson, Deputy State Forester, Division of Forestry, State Department of Conservation and Natural Resources:
For fiscal year (FY) 2000, the outstanding balance is about $9000; this amount is in litigation with the Union Pacific Railroad. Of over $6 million in FY 2001, there is $47,000 outstanding; this also involves litigation and should be settled soon. In FY 2002, there was approximately $3 million billed; about $629,000 of that amount is outstanding. For FY 2003, which would be from July to the present, $712,000 was billed and approximately $646,000 is outstanding. We consolidated our billing process into the State office; we now have a centralized accounting system instead of three regional offices.
Assemblyman Marvel:
What is your total accounts receivable?
Mr. Anderson:
Approximately $1.5 million.
Assemblyman Marvel:
How soon will that be collected?
Mr. Anderson:
I know approximately $100,000 was processed this last week. The collection of the older balances depends on the Office of the Attorney General. At least $500,000 from FY 2002 should be received in the next few months.
Assemblyman Marvel:
That will leave over $100,000 outstanding for FY 2002.
Mr. Anderson:
Approximately $56,000 is in litigation or under discussion between agencies.
Assemblyman Marvel:
Is some of that amount a payback to the contingency fund?
Mr. Anderson:
Yes, there are still amounts to be paid back to the contingency fund.
ASSEMBLY: THE MOTION CARRIED. (ABSENT FOR THE VOTE WAS ASSEMBLYWOMAN GIUNCHIGLIANI.)
SENATE: THE MOTION CARRIED UNANIMOUSLY.
*****
Forestry Honor Camps – Budget Page CNR-123 (Volume 3)
Budget Account 101-4198
Mr. Chapman:
My remarks are contained in “Closing List #3,” pages 20 and 21.
E-600 Budget Reductions – Page CNR-126
Decision unit E-600 recommends elimination of four camp crew supervisor positions which have become vacant due to retirements, transfers, and resignations. The elimination of positions does not affect the number of inmates located at the camps; it will reduce the number of crews available for projects.
M-100 Inflation & Per Unit Adjustments – Page CNR-124
Decision unit M-100 concerns the waiver of the statewide cost-allocation plan (SWCAP). The Executive Budget recommended the increase in the SWCAP assessment for the honor camp program be waived due to concerns over the level of the increase; the budget office later indicated to staff that the full SWCAP should be assessed to the agency. Staff requests authority to assess the full amount of the SWCAP to the agency in the 2003-2005 biennium when the final adjustment has been determined.
E-712 Replacement Equipment – Page CNR-126
Decision unit E-712 recommends radio and vehicle replacements. Staff has no concerns in this area.
Staff recommends closing this budget with technical adjustments.
Assemblyman Marvel:
Is there a contingency plan to do away with the honor camps?
Mr. Robinson:
Before this session began, we considered individual camps and what the impact of closing single camps and multiple camps would be on the overall budget. There is not a contingency plan. We will deal with the situation if it arises.
Assemblyman Marvel:
What would happen to the inmates? Would they all be pardoned?
Mr. Robinson:
The inmates belong to the Nevada Department of Corrections (NDOC). We utilize them during the day, but they return to NDOC; NDOC would have to consider issues such as potential release and keeping inmates within the institutions.
Assemblyman Marvel:
If inmates return to institutions, they cost about twice as much as they do at the honor camps.
Mr. Robinson:
It would be more expensive.
Assemblyman Parks:
I am concerned about this issue. With the elimination of the four crew supervisors, will people be in the camps but not going out on work detail because there are not enough supervisors?
Mr. Robinson:
The inmates will still be in the camps; there will be fewer supervisors of the 12‑person camps. The number of crews allowed to go out on projects will be less. We will do less work.
Assemblyman Parks:
Is work available for them to do?
Mr. Robinson:
We have more work for them to do than they can accomplish.
Assemblyman Marvel:
Assemblyman Parks makes a good point. Is this a case of being “penny wise and pound foolish?”
Mr. Abba:
I spoke with Glen Whorton, Assistant Director of Operations at NDOC this morning. Since officers currently work four 10-hour shifts, they are accustomed to overseeing more inmates within the camps; they are able to maintain security for the inmates within the camps. The department does not foresee any problems if these positions are eliminated.
Assemblyman Marvel:
Assemblyman Parks makes a good point. If the amount of work that can be done is going to be reduced, maybe this is not a good choice. If they can maintain the same workload with the reductions, then eliminating the positions is acceptable.
Mr. Robinson:
We will give priority to fire suppression whether the positions are eliminated or not. I want to make it clear that fire suppression will not be impacted by this decision. We will do fewer of our “good” projects, such as cleaning up cemeteries and highways.
Senator Rhoads:
I will accept a motion to amend this item and restore the positions.
ASSEMBLYMAN MARVEL MOVED TO CLOSE BUDGET ACCOUNT 101‑4198 AS RECOMMENDED BY STAFF AND WITH TECHNICAL ADJUSTMENTS RECOMMENDED BY STAFF AND TO RESTORE THE FOUR CAMP CREW SUPERVISOR POSITIONS ELIMINATED IN E‑600.
ASSEMBLYMAN PARKS SECONDED THE MOTION.
Mr. Abba:
If you want to restore the positions, that is fine. We will need to work with the Division of Forestry in terms of how the positions will be funded because it will be a combination of honor camp revenue and General Fund appropriation.
ASSEMBLY: THE MOTION CARRIED. (ABSENT FOR THE VOTE WAS ASSEMBLYWOMAN GIUNCHIGLIANI.)
SENATE: THE MOTION CARRIED UNANIMOUSLY.
*****
CNR Forestry Inter-Governmental Agreements – Budget Page CNR-129
(Volume 3) Budget Account 101-4227
Mr. Chapman:
My remarks are contained in “Closing List #3,” pages 22 and 23. There is no money from the General Fund in this account. Staff has not identified any major closing issues in this account. As was previously explained during the Forestry budget discussion, there has been a reduction in the cost-allocation transfer to the Forestry account to support administrative costs. Staff recommends a technical adjustment to align the transfer of funding to support 50 percent of the salary costs of a program information specialist who was transferred to the Forestry budget. Staff also recommends a technical adjustment to eliminate duplicate uniform allowance costs included in the adjusted base budget.
ASSEMBLYMAN PARKS MOVED TO CLOSE BUDGET ACCOUNT 101‑4227 AS RECOMMENDED BY STAFF AND WITH TECHNICAL ADJUSTMENTS RECOMMENDED BY STAFF.
ASSEMBLYMAN MARVEL SECONDED THE MOTION.
ASSEMBLY: THE MOTION CARRIED. (ABSENT FOR THE VOTE WAS ASSEMBLYWOMAN GIUNCHIGLIANI.)
SENATE: THE MOTION CARRIED UNANIMOUSLY.
*****
Wildlife – Budget Page CNR-139 (Volume 3)
Budget Account 101-4452
Mr. Chapman:
My remarks are contained in “Closing List #3,” pages 25 through 28. Before I begin discussion on closing items, I want to remind the committee that S.B. 420 has been introduced; it provides for fee increases.
SENATE BILL 420: Makes various changes relating to Division of Wildlife of State Department of Conservation and Natural Resources. (BDR 45-1254)
This budget has been built on the assumption that the fee increases are implemented.
E-501 Accessible, Flexible, Cost-Efficient Government – Page CNR-144
Decision unit E-501 concerns the increased fees recommended in S.B. 420. As currently amended, the fees will generate approximately $2.6 million over the biennium. The fee increases proposed in S.B. 420 include a consumer price index inflation adjustment; this has been a concern with the Senate Committee on Natural Resources. If the inflation increases are removed, FY 2004‑2005 revenues will be decreased by approximately $81,000.
E-275 Working Environment & Wage – Page CNR-142
E-375 Environmental Policies & Programs – Page CNR-143
Decision units E-275 and E-375 are the recommended maintenance and one‑time improvement projects for wildlife facilities throughout the State; the projects are listed on page 26. The overall impact of the two decision units is about $2.6 million. Reserves could be impacted if S.B. 420 is not approved or is substantially modified.
The Executive Budget recommends an ending reserve balance of $1.5 million at the end of the 2003-2005 biennium. If the subcommittee closes the budget as recommended by the Governor with the budget office amendments and technical adjustments noted by staff, the projected ending reserve will be $1.9 million. If S.B. 420 is not approved and the budget is closed with E-275 and E-375 supporting the recommended expenditures, the projected ending reserve is negative $659,014. If S.B. 420 is not approved and E-275 and E‑375 are not funded, the projected ending reserve is $1.7 million.
If S.B. 420 is approved with minimal fee changes, the revenue projections appear to be adequate to support the recommendations in E-275 and E-375. One option available to the subcommittee includes approving the Executive Budget with the fee increases and associated expenditures; if the budget closes and S.B. 420 is not approved, or is substantially modified, the budget could be revisited if there is time left in the session. Another option is to issue a Letter of Intent to direct the agency to come back if S.B. 420 is not approved or is substantially modified. Staff recommends issuing the Letter of Intent for Wildlife to return to the IFC if S.B. 420 fails to pass or is substantially modified.
Base budget funding changes are discussed on page 27. Similar to the budget for state parks, lodging tax receipts are less than projected, so the transfer from the Commission on Tourism is being recommended for elimination. The Governor replaces the lodging tax receipts with increased General Fund appropriations. General Fund appropriations have historically supported the non‑game activities of the division while the lodging tax receipts have supported the game-related activities. The subcommittee may wish to consider not approving the Governor’s recommendation to replace the lodging tax receipts transferred from tourism with additional General Fund appropriations. The agency can use reserves to support operations with the adjustments recommended by staff and the budget office. The projected ending reserve is $1.9 million. If the subcommittee chooses to replace the General Fund appropriation with reserve funding, the projected ending reserve is $1.5 million.
E-605 Budget Reductions – Page CNR-144
Decision unit E-605 concerns the elimination of 3.51 full-time equivalency positions due to long-term vacancies.
E-710 Replacement Equipment – Page CNR-145
E-720 New Equipment – Page CNR-145
Decision unit E-710 recommends replacing a number of items of significance; the items are listed on page 27. The major item in E-720 is a new vehicle for the new wildlife diversity bureau chief.
As previously explained during the Forestry budget discussion, an amendment has been submitted to eliminate the transfer to the Division of Forestry for positions supporting air operations due to changes in policy. Staff recommends the subcommittee take the same closing action as in the Forestry account.
Staff recommends technical adjustments to aircraft insurance and property and contents insurance to align with the amounts provided by the Risk Management Division.
Senator Rhoads:
We need to make a decision concerning the yearly $200,000 lodging tax receipts transfer which is proposed for elimination. Are we going to replace it from the General Fund or reserves? What are the results under each option?
Mr. Chapman:
The projected ending reserve balance decreases from approximately $1.9 million to $1.5 million if the Executive Budget recommendations and technical adjustments by staff are approved. I believe this is a policy issue for the subcommittee.
Assemblyman Parks:
What is the advantage of having a reserve of $1.9 million? Is that typical? It seems like a large reserve to me. Is there a justification for maintaining a large reserve?
Mr. Chapman:
On the surface, $1.9 million seems like a large reserve. The reserve provides cash for agency operating needs as they come due, such as payroll. The bulk of this agency’s revenue is received near the end of the fiscal year. When you consider the funding need of this budget account is about $28 million, the $1.9 million reserve may not be large.
Steven Bremer, Administrative Services Officer III, Division of Wildlife, State Department of Conservation and Natural Resources:
Mr. Chapman is correct; the bulk of our revenues are earned in the latter part of the year. We are very dependent on reserves to meet our expenditure needs, especially payroll, which is approximately $600,000 per payroll. If we did not have reserves available, we would have to borrow from the General Fund.
Senator Rhoads:
Does the subcommittee want to approve the Governor’s recommendation, or take the $200,000 a year from the reserves?
Assemblyman Marvel:
How much reserve is needed? Is $1.5 million sufficient?
Mr. Bremer:
Actually, $1.9 million is marginal; it represents about 3 payrolls. By the end of the biennium, we will definitely be tight, fiscally.
Assemblyman Marvel:
Do you not get a lot of money in March?
Mr. Bremer:
Yes; the bulk of our money comes in from March to May because of the sales of new licenses. We have minimal revenues during the first part of the year; we use our reserves. We try to start the year with a large reserve, then decrease it considerably and try to survive until the new license revenues arrive. We delay large expenditures until the latter part of the year so we have cash in the bank to pay expenses.
Assemblyman Marvel:
If the new fee increases are approved, do you think there will be a reduction in applications for licenses?
Mr. Bremer:
No, I do not believe there will be. When we raised the application fee from $5 to $10, we anticipated a 10 percent reduction in applications, but we actually experienced an increase in applications. Simultaneously, we introduced an Internet application. We have had very positive feedback from our consumers. We also had an enormous amount of public support to increase the fee to provide services.
Assemblyman Marvel:
If you are comfortable with a fee increase, I am comfortable with a fee increase.
Senator Rhoads:
Are we going to approve the Governor’s recommendation on this issue?
Senator Tiffany:
Is that the recommendation to keep the $200,000? Are you taking a motion on the entire budget account?
Senator Rhoads:
We need to make a separate decision regarding the $200,000. The Governor recommends increased General Fund appropriations.
SENATOR TIFFANY MOVED TO TAKE $200,000 PER YEAR OUT OF RESERVES TO REPLACE THE LODGING TAX RECEIPTS ELIMINATED IN THE ADJUSTED BASE BUDGET.
ASSEMBLYWOMAN LESLIE SECONDED THE MOTION.
ASSEMBLY: THE MOTION FAILED. (ASSEMBLYMEN MARVEL AND PARKS VOTED NO. ASSEMBLYMEN GRIFFIN AND PERKINS WERE ABSENT FOR THE VOTE.)
SENATE: THE MOTION CARRIED UNANIMOUSLY.
*****
Senator Rhoads:
Can we close this budget account before S.B. 420 is acted upon?
Mr. Chapman:
I believe you can handle the situation one of two ways. The budget can be closed as recommended by the Governor with the amendments and expenditure units and assuming S.B. 420 passes; since the decision units do not affect General Fund monies, the subcommittee can revisit the budget if S.B. 420 does not pass or is substantially modified. Alternatively, the agency can come before the IFC with budget changes reflecting changes in funding. Staff suggests that if you approve the budget today, you issue a Letter of Intent directing the agency to submit program changes to the IFC.
SENATOR TIFFANY MOVED TO CLOSE BUDGET ACCOUNT 101‑4452 AS RECOMMENDED BY STAFF WITH AUTHORITY FOR STAFF TO MAKE TECHNICAL ADJUSTMENTS AND TO ISSUE A LETTER OF INTENT REGARDING WORK PROGRAM CHANGES IF S.B. 420 IS NOT APPROVED OR IS SUBSTANTIALLY MODIFIED.
ASSEMBLYMAN PARKS SECONDED THE MOTION.
ASSEMBLY: ASSEMBLYWOMAN GIUNCHIGLIANI, ASSEMBLYWOMAN LESLIE AND ASSEMBLYMAN PARKS VOTED YES. (ASSEMBLYMEN GRIFFIN, MARVEL, AND PERKINS WERE ABSENT FOR THE VOTE.)
SENATE: THE MOTION CARRIED UNANIMOUSLY.
*****
Assemblyman Parks:
Does anyone know what happened with S.B. 420 at the hearing on April 9, 2003? Was approval recommended?
Kelly Clark, Chief, Conservation Education, Division of Wildlife, State Department of Conservation and Natural Resources:
The recommendation was to review the consumer price index issue and amend the bill to exempt Native Americans, disabled veterans, and servicepeople from the fee increase. There were also slight increases for outfitters and guides; another bill was included in this fee bill.
Assemblyman Parks:
Was there an approval?
Ms. Clark:
Yes; the bill has moved on to the Senate Committee on Finance.
Senator Rhoads:
We referred it to the Senate Committee on Finance; there was a large audience at the hearing with positive comments regarding the increase.
Wildlife-Boating Program – Budget Page CNR-149 (Volume 3)
Budget Account 101-4456
Mr. Chapman:
My remarks are contained in “Closing List #3,” pages 29 and 30.
E-501 Accessible, Flexible, Cost-Efficient Government – Page CNR-152
Decision unit E-501 increases boat titling and registration fee revenues. Provisions in NRS 488.075 require that one-half of the boat registration fees collected be transferred to the county school district where the fee originated; this does not include titling fees. Decision unit E‑501 provides for the transfer of the additional revenues to the county school districts. An amendment has been submitted to correct the allocation of boat registration fees to the county school districts. If boat titling and registration fee increases in S.B. 420 are not approved, the projected ending reserve balance will be decreased from approximately $1.3 million to $455,384. The proposed expenditure plan, which I will discuss next, is not dependent on fee increases; there are adequate reserves to support the expenditures in E-275.
E-275 Working Environment & Wage – Page CNR-151
E-375 Environmental Policies & Programs – Page CNR-151
Decision unit E-275 recommends federal boat aid and reserve funding for renovation of Division of Wildlife boating access facilities statewide. A number of items recommended by the Governor are listed on page 30. Decision unit E‑375 recommends funding for one-time projects listed on page 30.
E-710 Replacement Equipment – Page CNR-152
Decision unit E-710 recommends reserve funding for replacement equipment. The item to note in this decision unit is the replacement of one boat each year of the biennium; one boat would be replaced at Lake Tahoe and one at Lake Mead.
Senator Rhoads:
To close this budget, we need to specify that if S.B. 420 is not approved, the agency can return to the IFC.
Mr. Chapman:
If S.B. 420 is not approved, the agency should be able to cover the recommended expenditures and have funds remaining in the reserve account.
ASSEMBLYMAN PARKS MOVED TO CLOSE BUDGET ACCOUNT 101‑4456 AS RECOMMENDED BY THE GOVERNOR WITH AUTHORITY FOR STAFF TO MAKE TECHNICAL ADJUSTMENTS AND TO ALLOW THE AGENCY TO RETURN TO THE INTERIM FINANCE COMMITTEE IF S.B. 420 IS NOT APPROVED OR IS SIGNIFICANTLY MODIFIED WITH RESPECT TO BOAT TITLING AND REGISTRATION FEE INCREASES.
ASSEMBLYMAN MARVEL SECONDED THE MOTION.
ASSEMBLY: THE MOTION CARRIED. (ASSEMBLYMAN GRIFFIN WAS ABSENT FOR THE VOTE.)
SENATE: THE MOTION CARRIED UNANIMOUSLY.
*****
Wildlife Account-Trout Management – Budget Page CNR-155 (Volume 3)
Budget Account 101-4454
Mr. Chapman:
My remarks are contained in “Closing List #3,” pages 31 and 32.
E-501 Accessible, Flexible, Cost-Efficient Government – Page CNR-156
Decision unit E-501 concerns the continuation of the hatchery refurbishment program. During the 71st Session, a capital improvement program was approved for a long-term refurbishment program. The Governor recommends issuing $14.5 million in bonds over the biennium; S.B. 416 reduces the bonds issued to $14.0 million and makes a $0.5 million adjustment.
SENATE BILL 416: Authorizes issuance of bonds and other securities for completion of Fish Hatchery Refurbishment Project. (BDR S-1212)
The budget office has submitted an amendment to align the latest cash flow projections for bond proceeds, interest earnings, and program expenditures for the refurbishment program in the upcoming biennium. Debt servicing for the bond proceeds will come from continued collection of the trout stamp fees and federal sport fish funds. Trout stamp fees were increased during the 71st Session from $5 to $10.
Staff has included the budget amendments reflecting changes in funding and program expenditures. Staff recommends closing the budget with these amendments; if funding or expenditure changes occur, the agency can return to the IFC and present a work program.
SENATOR TIFFANY MOVED TO CLOSE BUDGET ACCOUNT 101‑4454 AS RECOMMENDED BY STAFF AND INCORPORATING THE AMENDMENTS PROVIDED BY THE BUDGET DIVISION AND TO ALLOW THE AGENCY TO RETURN TO THE INTERIM FINANCE COMMITTEE WITH A WORK PROGRAM IF FUNDING OR EXPENDITURE CHANGES OCCUR.
ASSEMBLYMAN PARKS SECONDED THE MOTION.
ASSEMBLY: THE MOTION CARRIED. (ASSEMBLYMAN GRIFFIN WAS ABSENT FOR THE VOTE.)
SENATE: THE MOTION CARRIED UNANIMOUSLY.
*****
Wildlife Obligated Reserve – Budget Page CNR-158 (Volume 3)
Budget Account 101-4458
Mr. Chapman:
My remarks are contained in “Closing List #3,” pages 33 and 34.
E-501 Accessible, Flexible, Cost-Efficient Government – Page CNR-160
Decision unit E-501 concerns an increase in duck stamp fees and two new recommended fees. The revenues generated from the new upland game fee are included in E-501. The revenues from the new habitat conservation fee are not included in the Executive Budget. The duck stamp increase is not included in the Executive Budget. The budget office submitted an amendment to incorporate these fees. The new fees and increase in duck stamp fees are included in S.B. 420.
The $10 upland game fee is to be assessed to licenses for hunting upland game birds listed on page 34. The Executive Budget originally placed those fees into an expenditure category; an amendment from the budget office moves those fees from the expenditure category to reserves until a spending plan is developed and the agency can return to the IFC.
The new $3 habitat conservation fee will be assessed on all hunting, fishing, trapping, or combination licenses. If S.B. 420 is approved, it is recommended that these additional fees be placed in reserves and the agency can return to the IFC to request authority to expend the funds when a spending plan is developed.
An increase in duck stamp fees from $5 to $10 is proposed in S.B. 420. It is recommended that these additional fees be placed in reserves until a spending plan is developed and the agency can return to the IFC.
If any of these fees in S.B. 420 is not approved, staff will seek authorization to make necessary adjustments. If there is inadequate time left in the session, the agency can return to the IFC to make necessary program changes.
E-375 Environmental Policies & Programs – Page CNR-159
Decision unit E-375 recommends wildlife restoration funding, reserve funding, and gifts and donations for one-time projects; the list of projects is on page 34. The Governor recommends an additional $300,000 each year for the wildlife mining program. Staff received no documentation identifying specific projects associated with this program. Staff recommends the $300,000 per year be removed from the wildlife mining program category and placed in reserves until a spending program is developed and the agency can return to the IFC.
Senator Rhoads:
Does that mean the wildlife mining program will not have $300,000 for programs?
Mr. Chapman:
The fees the mining companies pay are transferred from the wildlife account. The money comes into the obligated reserve account and can be used for expenditures supporting reclamation projects affecting habitat. The $300,000 per year will still be available for that purpose once the agency identifies a plan for the funds.
ASSEMBLYWOMAN GIUNCHIGLIANI MOVED TO CLOSE BUDGET ACCOUNT 101-4458 AS RECOMMENDED BY THE GOVERNOR WITH AUTHORITY FOR STAFF TO MAKE TECHNICAL ADJUSTMENTS.
ASSEMBLYMAN PARKS SECONDED THE MOTION.
ASSEMBLY: THE MOTION CARRIED. (ASSEMBLYMAN GRIFFIN WAS ABSENT FOR THE VOTE.)
SENATE: THE MOTION CARRIED UNANIMOUSLY.
*****
Tahoe Regional Planning Agency – Budget Page CNR-162 (Volume 3)
Budget Account 101-4204
Brian M. Burke, Senior Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau:
My remarks are contained in “Closing List #3,” pages 35 through 37.
E-377 Environmental Policies & Programs – Page CNR-164
Decision unit E-377 recommends $200,000 per year for Nevada’s share of phase II of the Pathway 2007 threshold efforts initiated during the 71st Session. Page 36 lists the projects included in phase II. The Executive Budget planned to use interest earnings on Lake Tahoe Environmental Improvement Program bonds. The Budget Division submitted an amendment to use interest earnings from the 1996 Tahoe Bonds Act account instead; the Legal Division has determined that A.B. No. 13 of the 68th Session permits this.
At the March 25, 2003, subcommittee hearing, the Tahoe Regional Planning Agency reported FY 2001-2002 threshold research will be completed by the end of the current biennium. However, the agency does not anticipate fully expending the FY 2002-2003 funds and seeks authority to carry forward the $99,792 balance from Nevada’s share into FY 2003-2004. It also asks for the authority to use the FY 2003-2004 funds in both years of the 2003‑2005 biennium.
I am submitting three decisions to the subcommittee regarding E-377. The subcommittee can approve $200,000 annually in bond interest revenues for phase II of the Pathway 2007 threshold efforts; the funding will come from the 1996 Tahoe Bonds Act account interest revenue rather than the Lake Tahoe Environmental Improvement Program bond interest. The subcommittee can allow the Tahoe Regional Planning Agency to bring forward unspent threshold research revenue and expenditure authority from FY 2002-2003 to FY 2003‑2004; if approved, language will be included in the Authorization Act. If funding is approved for phase II, the subcommittee can approve availability of the FY 2003-2004 funding for both years of the biennium; if approved, language will be included in the Authorization Act.
ASSEMBLYWOMAN GIUNCHIGLIANI MOVED TO APPROVE $200,000 ANNUALLY IN BOND INTEREST REVENUES FOR PHASE II OF THE PATHWAY 2007 THRESHOLD EFFORTS, WITH FUNDING PROVIDED FROM THE 1996 TAHOE BOND ACT ACCOUNT INTEREST REVENUE RATHER THAN LAKE TAHOE ENVIRONMENTAL IMPROVEMENT PROGRAM BOND INTEREST.
ASSEMBLYWOMAN LESLIE SECONDED THE MOTION.
ASSEMBLY: THE MOTION CARRIED. (ASSEMBLYMAN GRIFFIN WAS ABSENT FOR THE VOTE.)
SENATE: THE MOTION CARRIED. (SENATOR TIFFANY WAS ABSENT FOR THE VOTE.)
*****
ASSEMBLYWOMAN GIUNCHIGLIANI MOVED TO ALLOW THE TAHOE REGIONAL PLANNING AGENCY TO BRING FORWARD UNSPENT THRESHOLD RESEARCH REVENUE AND EXPENDITURE AUTHORITY FROM FY 2002-2003 TO FY 2003-2004 AND TO INCLUDE SUCH LANGUAGE IN THE AUTHORIZATION ACT.
ASSEMBLYMAN PARKS SECONDED THE MOTION.
ASSEMBLY: THE MOTION CARRIED. (ASSEMBLYMAN GRIFFIN WAS ABSENT FOR THE VOTE.)
SENATE: THE MOTION CARRIED. (SENATOR TIFFANY WAS ABSENT FOR THE VOTE.)
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Assemblywoman Giunchigliani:
Is there enough interest revenue from the 1996 Tahoe Bonds Act account for both years of the biennium?
Mr. Burke:
According to projections by the Budget Division, there is enough money.
ASSEMBLYWOMAN GIUNCHIGLIANI MOVED TO APPROVE AVAILABILITY OF THE FY 2003-2004 FUNDING FOR BOTH YEARS OF THE BIENNIUM AND TO INCLUDE SUCH LANGUAGE IN THE AUTHORIZATION ACT.
ASSEMBLYMAN PARKS SECONDED THE MOTION.
ASSEMBLY: THE MOTION CARRIED. (ASSEMBLYMAN GRIFFIN WAS ABSENT FOR THE VOTE.)
SENATE: THE MOTION CARRIED. (SENATOR TIFFANY WAS ABSENT FOR THE VOTE.)
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Mr. Burke:
There are no other major decisions in this budget. Staff notes the adjusted base budget does continue the funding cuts implemented by California and matched by Nevada. The Executive Budget reports 78 full-time equivalency positions for this agency; the correct number is 75. This error did not affect the accuracy of the Governor’s salary and fringe benefit calculations.
ASSEMBLYMAN PARKS MOVED TO CLOSE BUDGET ACCOUNT 101‑4204 AS RECOMMENDED BY STAFF WITH AUTHORITY FOR STAFF TO MAKE TECHNICAL ADJUSTMENTS.
ASSEMBLYWOMAN LESLIE SECONDED THE MOTION.
ASSEMBLY: THE MOTION CARRIED. (ASSEMBLYMAN GRIFFIN WAS ABSENT FOR THE VOTE.)
SENATE: THE MOTION CARRIED UNANIMOUSLY.
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Military – Budget Page MILITARY-1 (Volume 3)
Budget Account 101-3650
Mindy Braun, Education Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau:
My remarks are contained in “Closing List #3,” pages 39 and 40. The first closing issue concerns funding shortfalls for utilities. For FY 2002-2003, the agency projects a shortfall in utility costs of $193,972; the State is responsible for $170,941 of that amount. A supplemental appropriation of $131,604 has been requested in S.B. 493; the remainder of the shortfall will be raised through savings identified within the budget.
SENATE BILL 493: Makes supplemental appropriation to Office of the Military for unanticipated shortfall in money for utility costs in Fiscal Year 2002‑2003. (BDR S-1335)
Staff has worked with the agency to determine potential utility shortfalls in the Executive Budget and recommends increases and funding as outlined on page 39. In making this recommendation, staff has included federal funding for the army armories located at the new Readiness Center. In the past, utility costs for this facility have been funded 100 percent by the State. In January 2003, an agreement with the United States Planning and Financial Office was reached to provide 50 percent of costs for utilities at all army armories. The Readiness Center has not previously been included because the federal government and the Nevada National Guard are negotiating the square footage that will be included in the 50/50 split agreement. If an agreement is not reached, the agency may need to request an allocation from the IFC to cover additional shortfalls in utilities expenses.
The second closing issue also concerns utilities. During a previous subcommittee hearing, information was provided that appeared to indicate the General Fund request could be reduced to reflect the agreement with the U.S. Planning and Financial Office. Upon further review, staff has confirmed the reduction has been appropriately made to the General Fund amount and no additional adjustments are required.
Staff has adjusted the recommended budget to reflect the State’s obligation for property and contents insurance for the Office of the Military; previously, the State has paid 100 percent of the costs for property and contents insurance for buildings constructed with full or partial funding from the federal government and contents that are 100 percent federal property. The General Fund savings in FY 2003-2004 is $63,706 and $64,264 in FY 2004-2005.
The Executive Budget removes federal funds in each year of the biennium for SWCAP. In the FY 1980 Department of Defense Appropriations Act, Congress prohibited the National Guard from using its appropriations to reimburse indirect costs to states. The Budget Division has submitted an adjustment to this budget account recommending the removal of the SWCAP allocation and associated funding; staff concurs with the recommendation.
Funding for in-state travel has been reduced in each fiscal year of the biennium to correct an error in the Executive Budget.
E-710 Replacement Equipment – Page MILITARY-3
Decision unit E-710 requests funding to replace two computers and related software. The Executive Budget has been reduced in each fiscal year to reflect revised costs.
Giles E. Vanderhoof, Major General, The Adjutant General of Nevada, Office of the Military:
We are squeezed about as much as we have ever been squeezed. The federal government has been cooperative in working with us. The 50 percent split is almost unprecedented in the country and I believe we will be successful in negotiating it for the Readiness Center.
ASSEMBLYMAN MARVEL MOVED TO CLOSE BUDGET ACCOUNT 101‑3650 AS RECOMMENDED BY STAFF WITH AUTHORITY FOR STAFF TO MAKE TECHNICAL ADJUSTMENTS.
ASSEMBLYMAN PARKS SECONDED THE MOTION.
ASSEMBLY: THE MOTION CARRIED. (ASSEMBLYMAN GRIFFIN WAS ABSENT FOR THE VOTE.)
SENATE: THE MOTION CARRIED. (SENATOR TIFFANY WAS ABSENT FOR THE VOTE.)
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National Guard Benefits – Budget Page MILITARY-8 (Volume 3)
Budget Account 101-3653
Ms. Braun:
My remarks are contained in “Closing List #3,” page 47. Senate Bill 306 would expand the educational tuition reimbursement to include recruits.
SENATE BILL 306: Revises provisions governing educational benefits provided to members of Nevada National Guard. (BDR 36-991)
Although the agency is authorized to reimburse up to 100 percent of qualifying tuition reimbursement requests, the current reimbursement rate is approximately 42 percent due to the number of members participating in the program. The Governor recommends $92,572 from the General Fund in each fiscal year of the biennium to continue the program; this amount includes a 3 percent reduction in each fiscal year. Staff recommends this budget be closed as recommended by the Governor.
Senator Coffin:
This is a policy issue in this case. I am not inclined to support the Governor’s recommendation, which includes a cut in the educational tuition reimbursement. It is an important recruiting and retention tool. For morale’s sake, we want to keep these 800 to 1000 young men and women who will be returning. It is important for us to keep them and help them with their studies; to do that, we need to increase the amount appropriated.
Senator Rhoads:
What will it cost to do that?
Ms. Braun:
What percentage of funding were you considering?
Senator Coffin:
Were we at 50 percent?
Major General Vanderhoof:
We have not had a 50 percent reimbursement rate for quite some time. The law changed a few sessions ago to allow us to pay up to 100 percent, but we were never appropriated at that level. We have ranged from about 30 percent to almost 50 percent. It takes about $10,000 to raise the reimbursement rate 5 percent.
Senator Coffin:
Is the reimbursement rate at about 40 percent now?
Major General Vanderhoof:
It is almost 50 percent now.
Senator Coffin:
To get to a 50 percent reimbursement rate, it will cost us at least $10,000.
Major General Vanderhoof:
We are in an unusual time. Everything you said about the people returning is correct, but I do not know when they are returning. Our figures are skewed due to the mobilizations.
Senator Coffin:
The regular military people are starting to return now. What is the maximum length of time a reservist can be kept on active duty?
Major General Vanderhoof:
The maximum length of time is 2 years. We have some reservists who have been on active duty for 1.5 years already.
Senator Coffin:
They will start returning. My point is, we should “put our money where our mouth is.” We have authorized up to 100 percent reimbursement rate but never appropriated for 100 percent; we have never made 50 percent. I should think there is enough money in the General Fund to bring the reimbursement rate up to at least 50 percent.
ASSEMBLYWOMAN GIUNCHIGLIANI MOVED TO CLOSE BUDGET ACCOUNT 101-3653 AS RECOMMENDED BY THE GOVERNOR.
ASSEMBLYWOMAN LESLIE SECONDED THE MOTION.
ASSEMBLY: THE MOTION CARRIED UNANIMOUSLY.
SENATE: THE MOTION FAILED FOR LACK OF A QUORUM. (SENATOR COFFIN VOTED NO. SENATOR TIFFANY WAS ABSENT FOR THE VOTE.)
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Senator Rhoads:
We are adjourned at 10:25 a.m.
RESPECTFULLY SUBMITTED:
Denise Davis,
Committee Secretary
APPROVED BY:
Senator Dean A. Rhoads, Chairman
DATE:
Assemblyman David R. Parks, Chairman
DATE: