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 29, 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 Tuesday, April 29, 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
COMMITTEE MEMBERS ABSENT:
Mr. Richard Perkins (Excused)
STAFF MEMBERS PRESENT:
Bob Guernsey, Principal Deputy Fiscal Analyst
Steven J. Abba, Principal Deputy Fiscal Analyst
Mark Krmpotic, Senior Program Analyst
Tracy Raxter, Program Analyst
James D. Earl, Committee Secretary
OTHERS PRESENT:
Jackie Crawford, Director, Department of Corrections
Amy Wright, Chief, Division of Parole and Probation, Department of Public Safety
Charles W. (Chuck) Fulkerson, Executive Director, Office of Veterans’ Services
Gary Bermeosolo, Director, Veterans’ Home, Office of Veterans’ Services
Darrell L. Hansen, Administrative Services Officer, Veterans’ Home, Office of Veterans’ Services-
Lawrence Jacobsen
Ronald Kruse, Chairman, Nevada Veterans’ Services Commission
Darryl Mobley
Ron Gutzman
David Wyble
Virginia (Ginny) Lewis, Director, Department of Motor Vehicles
DEPARTMENT OF CORRECTIONS
Senator Rhoads:
We will first address the budget of the Southern Desert Correctional Center. Please see Closing List No. 5 (Exhibit C. Original is on file in the Research Library.).
Southern Desert Correction Center – Budget Page NDOC-58 (Volume 3) Budget Account 101‑3738
Tracy Raxter, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau:
There is one major issue in this budget account (B/A): the proposed transfer of the Offenders Acting in Solidarity to Insure Sobriety (OASIS)Substance Abuse Treatment Program to the proposed Correctional Programs Division. Both the department and the Governor have recommended this new division be created within the Department of Corrections. The new division would centralize inmate programs dealing with substance abuse, education, and mental health. The programs would continue to reside at the institutions; the new division would provide oversight and some standardization. Transfer of this program would be contingent on committee approval of the new division; that budget is scheduled for closing in 4 days.
Other items include enhancement unit E-500. The Governor recommends additional funding for inflationary costs of food. This item has been heard in other budget accounts of the Department of Corrections. In our last meeting, the Assembly subcommittee voted to delay a decision until this week. The Senate subcommittee voted to keep food inflation costs in the budget.
Assemblywoman Giunchigliani:
I want to clarify our vote. The Assembly subcommittee voted “No.” We did not vote to delay decision. Speaker Perkins read a position statement into the record. We voted not to include the inflationary costs.
Mr. Raxter:
That is correct. The Assembly Committee on Ways and Means voted not to include the inflationary costs.
Senator Rhoads:
Our rationale was the national average was $4 a day.
Mr. Raxter:
The other item is the Governor’s recommendation to transfer correctional officers responsible for inmate local transportation at both the Southern Desert Correctional Center and the High Desert State Prison to the department’s central transportation section within the Director’s Office. The department believes this transfer will result in efficiencies in scheduling and possible elimination of duplication of effort.
Staff has also made technical adjustments in this account. The Governor requests approval in decision unit E-731 for construction of steel wall units in inmate cells for personal property. The request involves 850 wall units. There has been a modification submitted by the Budget Division to provide funding from federal substance abuse treatment funds. This modification would provide for the wall units in the 200‑bed housing unit that supports the OASIS Substance Abuse Treatment Program. That is $25,000 of federal funding that can be used to offset general funds in this decision unit.
E-731 Special Projects – Page NDOC-62
There is another technical adjustment to reduce the overall cost by $6000 to reflect the 850 units requested. Other technical adjustments in the base budget include elimination of one-time equipment rental costs and modification of the yearly maintenance contract expense to the current level. Lastly, there is an adjustment to the purchasing division assessment.
One item in this budget account, and in other institutional budget accounts to be heard later, involves inmate-driven revenues and expenditures. Staff seeks approval to make changes in these accounts based on final approval of the inmate population counts for each year of the biennium. Staff also notes that the final, agreed inmate population numbers will be available this week.
Senator Rhoads:
Can we close this budget?
Mr. Raxter:
You can close it by including the authorization for staff adjustments. This recommendation is similar to those in other institutional budgets.
SENATOR PARKS MOVED TO CLOSE BUDGET ACCOUNT 101‑3738, INCLUDING TRANSFER OF THE OASIS SUBSTANCE ABUSE TREATMENT PROGRAM, EXCLUDING INFLATIONARY INCREASES FOR FOOD, INCLUDING TRANSFER OF THE INMATE TRANSPORTATION PROGRAM, AND INCLUDING OTHER TECHNICAL ADJUSTMENTS AS RECOMMENDED BY STAFF.
SENATOR COFFIN SECONDED THE MOTION.
ASSEMBLY: THE MOTION CARRIED. (ASSEMBLYMAN PERKINS WAS ABSENT FOR THE VOTE.)
SENATE: THE MOTION CARRIED UNANIMOUSLY.
*****
Ely State Prison – Budget Page NDOC-65 (Volume 3)
Budget Account 101‑3751
Mr. Raxter:
The one major closing issue relates to the Governor’s recommendation to eliminate 14 correctional officers. Staff notes the department has recommended elimination of the positions and management through the position relief factor and pull and shut down posts. Staff notes the position relief factor is budgeted within the custody positions of the department for annual leave, sick leave, and training days off. The pull and shut down posts are identified for leaving posts vacant on a temporary basis. Pull posts are vacated for a portion of an 8-hour shift, and shut down posts are left vacant for a full shift. This budget also includes a major increase in the vacancy savings for this budget account. In the current biennium, the vacancy savings is $300,000 annually. The Governor is recommending an increase of $1 million, bringing the vacancy savings to approximately $1.3 million annually. That amount equates to roughly 22 positions left vacant. For the first 8 months of this year, an average of 29 positions were vacant. If 22 positions are planned for vacancy, and 14 positions eliminated, then, considering the vacancy rate to date, it appears that personnel would have to be laid off. Although staff appreciates the department’s attempt to manage these position reductions, it is our recommendation the decision unit not be approved since the amount of vacancy savings is $1.3 million. It would be too difficult to manage the post staffing at this institution without eliminating posts and laying off personnel. If the 14 positions were reinstated in the budget, there would be a cost to the General Fund of $744,000 the first year and approximately $772,000 the second year.
Other closing items in this account include food inflation and a recommendation to transfer a chaplain position to the new Correctional Programs Division. This transfer would centralize all religious programs within that new division.
Staff has made technical adjustments for weapons pricing, uniform allowances, and wastewater permit fees.
Senator Coffin:
Is the chaplain position filled? Are all chaplain positions filled?
Mr. Raxter:
Yes, it is. There are four chaplain positions within the department. All are filled.
Assemblywoman Giunchigliani:
We wanted to discuss an additional chaplain position. Did we ever receive a budget estimate?
Jackie Crawford, Director, Department of Corrections:
Our analysis shows a yearly cost of approximately $60,000 including benefits for a chaplain.
Assemblywoman Giunchigliani:
Are the current chaplains volunteers or are they paid?
Ms. Crawford:
All chaplains are in paid positions.
Assemblywoman Giunchigliani:
We talked about expansion. Are there numbers to which we can react?
Ms. Crawford:
American Correctional Association standards are relatively high. We thought that we might start with an additional chaplain, and we would ask for additional staff when budget constraints were less severe.
Assemblywoman Giunchigliani:
When would the additional chaplain come on board?
Ms. Crawford:
He would begin in July.
Assemblywoman Giunchigliani:
I would like the committee to consider a second chaplain position during the second year of the biennium. I think the position is necessary from a safety standpoint. I have also attended several prisoners’ meetings and know there are a number of volunteer chaplains. There is a demonstrated need.
Senator Coffin:
I agree with Assemblywoman Giunchigliani. Which institutions do not have full‑time chaplains?
Ms. Crawford:
We have one chaplain at High Desert Prison who also covers the Southern Desert Correctional Facility. The latter facility does not have a chaplain on site. The Carson City chaplain serves the Nevada Correctional Center, the Nevada State Prison, and the Warm Springs Correctional Center. There is one full-time chaplain at the Lovelock Correctional Center and one at the Ely State Prison.
Senator Coffin:
Are there no chaplains at the women’s facilities?
Ms. Crawford:
We have a contract chaplain at the women’s facility.
Senator Coffin:
These positions have both religious and counseling functions. Both are important in these institutions. Who performs these functions in lieu of a chaplain?
Ms. Crawford:
Usually a counselor or case manager would fill in. However, a case manager will normally have a caseload of 125. Having a chaplain on site produces stabilizing effects. I agree with you; chaplains fulfill a number of functions. They counsel families of ill inmates, for example. I support having as many chaplains as this committee might be willing to provide.
Senator Coffin:
I do not know the level of chaplain support Assemblywoman Giunchigliani had in mind. I certainly think we should consider adding one or two. Three institutions in the north share a single chaplain. In the south, some 2500 inmates share a single chaplain. This stretches our coverage. If we cannot agree, we certainly should take the issue to committee.
Mr. Raxter:
The committee may want to address the issue of chaplain support within the Correctional Programs Division budget account. That budget should be heard within several days.
Senator Rhoads:
We will take the matter up at that time.
Mr. Raxter:
Staff has made other technical adjustments to the Prison Industries utility cost reimbursements. Those are all the items in this budget account.
Senator Rhoads:
Was the contract for medical services in Ely renewed?
Mr. Raxter:
A request for proposal (RFP) was released several months ago. State purchasing has now received responses. A final decision has not yet been made. The department has submitted a proposal that includes cost alternatives; we would normally consider this in several days when we deal with that budget.
Senator Rhoads:
I ask because I am receiving quite a bit of mail on the issue.
Ms. Crawford:
We will be presenting a proposal to the committee in several days. We will be discussing State operating costs as compared to the “best and final” offers in the RFP process. We think this will be informative.
ASSEMBLYMAN PARKS MOVED TO CLOSE BUDGET ACCOUNT 101‑375, EXCLUDING THE ELIMINATION OF CORRECTIONAL OFFICERS, LEAVING THE INFLATIONARY INCREASE IN THE FOOD ACCOUNT TO BE DETERMINED FOR THE ASSEMBLY SUBCOMMITTEE, INCLUDING TRANSFER OF CHAPLAIN POSITIONS TO THE CENTRAL ACCOUNT, INCLUDING AN INCREASE FOR A SECOND CHAPLAIN IN THE SECOND YEAR OF THE BIENNIUM, AND INCLUDING OTHER TECHNICAL ADJUSTMENTS AS RECOMMENDED BY STAFF.
ASSEMBLYWOMAN GIUNCHIGLIANI SECONDED THE MOTION.
Assemblywoman Giunchigliani:
Is there any interest in adding a second chaplain in the first year of the biennium, so that two would be added in the first year and one in the second year?
Senator Rhoads:
Staff suggested we consider that when we address the chaplain issue in several days.
Assemblywoman Giunchigliani:
That is fine.
ASSEMBLY: THE MOTION CARRIED. (ASSEMBLYMAN PERKINS WAS ABSENT FOR THE VOTE.)
SENATE: THE MOTION CARRIED UNANIMOUSLY.
*****
Senator Rhoads:
We will open the hearing on the Offenders’ Store Fund.
Offenders’ Store Account – Budget Page NDOC-138 (Volume 3)
Budget Account 240‑3708
Mr. Raxter:
There are two adjustments in this budget account. One relates to maintenance unit M-200, caseload growth. The Governor recommends including projected increases in sales and inventory costs attributable to increased prison population. Staff has made an adjustment based on inmate population projections submitted in March 2003. We also included an additional transfer to the inmate welfare account based on the population projection; this amounts to $136,000 in the first year and $198,000 in the second year of the biennium. Profits from inmate stores and the telephone commissions that enter this budget account are transferred to the inmate welfare account to fund inmate programs including law libraries, recreation expenses, and satellite television.
Staff has made one additional technical adjustment. There has been a recent change in the inmate package program. A commission is now collected in conjunction with that program. The department estimates about $107,000 annually will be generated in commissions. Staff has included that amount in the budget.
ASSEMBLYWOMAN GIUNCHIGLIANI MOVED TO CLOSE BUDGET ACCOUNT 240-3708 AS RECOMMENDED BY STAFF.
ASSEMBLYWOMAN LESLIE SECONDED THE MOTION.
ASSEMBLY: THE MOTION CARRIED (ASSEMBLYMAN PERKINS WAS ABSENT FOR THE VOTE.)
SENATE: THE MOTION CARRIED UNANIMOUSLY.
*****
Senator Rhoads:
We will open the hearing on inmate welfare.
Inmate Welfare Account – Budget Page NDOC-143 (Volume 3)
Budget Account 240‑3763
Mr. Raxter:
This account provides funding for the inmate literacy program in addition to those programs I mentioned earlier. The Governor recommends the four academic teacher positions in the inmate literacy program be transferred to the Correctional Programs Division and that they be funded by general funds. The biennium cost to the General Fund would be $575,000.
Staff has made some technical adjustments in this account that provide additional funding. These funds would go to retained earnings in the account. The adjustments involve M-200 population growth. As I noted earlier, there was an increased transfer to this budget account of $136,000 the first year and $198,000 the second year. Inmate population growth provides an additional $140,000 over the biennium in additional retained earnings.
Staff has provided the committee three options to use these additional funds for the inmate literacy program. Option one provides funding for all six literacy program positions, a coordinator, an administrative assistant, and four academic teachers, as well as the operating costs. Funding would come from the Inmate Welfare Account. Staff has concerns with this proposal as described by the Department of Corrections. This option would reduce the reserve level in the Offenders’ Store Fund by approximately $150,000 below the Governor’s recommendation. The department notes the telephone commissions in the Offenders’ Store Fund have decreased in the current fiscal year. Additionally, the contract with the telecommunications provider is up for renewal; it expires on June 30, 2003. An RFP has been issued, and bids are currently being reviewed. There is concern about the level of funding and the stability of that funding in the future. The department has expressed concern about the retained earnings level.
Option two is the Governor’s recommendation. The coordinator and the administrative assistant would continue to be funded by this budget account. Funding for the four teachers and the operating costs would come from the General Fund, contingent on the creation of the Correctional Programs Division. As I mentioned earlier, the General Fund impact is $575,000 over the biennium.
Option three continues funding for the coordinator and administrative assistant from this budget account. Three of the four teacher positions would also be funded from this account. This option would maintain the reserve level in the Offenders’ Store Fund at the level recommended by the Governor. It would reduce the reserve level in the Inmate Welfare Account by only $13,000 annually from the level recommended by the Governor. It would use funding identified in the M-200 account relating to population increase. This option would result in General Fund savings of $443,000 over the biennium. Approval of this option requires a decision whether to fund the fourth teacher position from the General Fund.
There are several other items in this budget. Decision unit E-226 involves a recommendation by the Governor to consolidate inmate law libraries into a single budget category. A similar recommendation was made during the last two Legislative Sessions and was not approved based on the difficulty of tracking the expenses of an individual law library after consolidation. Staff recommends this decision unit not be approved.
There are technical adjustments within the account. Staff made a technical adjustment within the base budget to provide a General Fund payback related to medical claims associated with inmate self-inflicted injuries, inmate-to-inmate injuries, or recreational inmate injuries. Current statutes require medical payments either through an inmate’s personal property account or, in the case of indigent inmates, through the inmate welfare account.
Senator Rhoads:
I recommend option three, but would like to open discussion.
Assemblywoman Giunchigliani:
I concur with option three.
ASSEMBLYWOMAN GIUNCHIGLIANI MOVED TO CLOSE BUDGET ACCOUNT 240-3763 AS RECOMMENDED BY STAFF OPTION THREE, EXCLUDING LAW LIBRARY CONSOLIDATION, INCLUDING TECHNICAL ADJUSTMENTS.
ASSEMBLYMAN PARKS SECONDED THE MOTION.
Senator Coffin:
Option three seems to do the least damage to the Inmate Welfare Account. This keeps benefits flowing back to inmates from the money they earn.
ASSEMBLY: THE MOTION PASSED. (ASSEMBLYMAN PERKINS WAS ABSENT FOR THE VOTE.)
SENATE: THE MOTION PASSED UNANIMOUSLY.
*****
Mr. Raxter:
I would like clarification on the vote. What is the committee decision on the fourth teacher position?
Senator Rhoads:
We included it in the motion, to be funded from the General Fund.
Let us turn to parole and probation issues.
DEPARTMENT OF PUBLIC SAFETY
Public Safety, Parole and Probation – Budget Page PS-90 (Volume 3)
Budget Account 101‑3740
Mr. Raxter:
Budget reductions proposed by the Governor are the main issue in this account. These involve about $1.3 million in the first year of the biennium and about $1.4 million in the second year. Staff notes these are a continuation of budget reductions initiated in FY 2003 based on the 3 percent reduction directive. The reductions include elimination of positions remaining vacant more than 6 months. Twenty-six positions would be eliminated: seven sworn officers, two revenue positions, two substance abuse program positions, a program officer, and 14 administrative support staff. The budget reductions also include reduction of drug testing, saving $26,000 annually; community service in Washoe County, $10,000 annually; microfilming documents for record retention, $25,000 annually; staff training; parolee/probationer absconder returns; residential confinement program; and various building maintenance and equipment repair costs.
Staff has made a technical adjustment to increase the supervision fee revenue to the actual amount in FY 2002, $2,775,000, based on collections in that year and collections during the current fiscal year. We believe the budget should be adjusted to reflect the FY 2002 actual level of supervision fees. This adjustment adds $151,000 to supervision fees in each year of the biennium. The committee could either reduce the General Fund support for this account by a like amount, or it could utilize some or all of this additional funding to reverse some of the budget reductions just outlined. There have been other technical adjustments netting a General Fund savings of $90,000 the first year and $92,000 in the second year. These savings would be available to fund some of the proposed budget reductions. These issues have been discussed with the agency.
We have agency recommendations for priority of expenditures should the recommended budget reductions be reversed by the committee. The first priority is reinstatement of money for drug testing. The second priority would restore funding for the residential confinement program. The third priority would restore funding for microfilming. The fourth priority would restore money for staff training; the fifth would restore funding for community service in Washoe County. Funding for the top five priority items totals about $100,000 annually, or about $10,000 more than the $90,000 available within the General Fund savings.
Assemblywoman Giunchigliani:
Is the residential confinement program scheduled for total elimination? What impact would this have?
Mr. Raxter:
I understand it would affect rural areas, but greater information might be obtained from the department.
Amy Wright, Chief, Division of Parole and Probation, Department of Public Safety:
The residential confinement program is an offender-paid program in urban areas. In rural areas, the State pays because it is not a full-service program; offenders remit the cost back to the division.
Assemblywoman Giunchigliani:
What is the net savings eligible for redistribution?
Mr. Raxter:
It is $90,000 the first year and $92,000 the second year.
Senator Raggio:
Do the division’s top priority programs total $100,000 per year or for the biennium?
Mr. Raxter:
That figure is $100,000 annually.
ASSEMBLYWOMAN GIUNCHIGLIANI MOVED TO CLOSE BUDGET ACCOUNT 101-3740 AS RECOMMENDED BY STAFF, INCLUDING PROPORTIONATE RESTORATION OF FUNDS FOR DRUG USAGE TESTING, COMMUNITY SERVICES IN WASHOE COUNTY, ABSCONDER RETURNS, MICROFILMING, AND THE RURAL AREA RESIDENTIAL CONFINEMENT PROGRAM; AND TO MOVE FUNDS ASSOCIATED WITH DECISION UNIT E-400 FROM BUDGET ACCOUNT 101-3740 TO THE DRUG COURT BUDGET UNDER THE ADMINISTRATION OF THE ADMINISTRATIVE OFFICE OF THE COURTS THEREBY CONSOLIDATING FUNDING FOR DRUG COURT PROGRAMS; AND TO INCLUDE STAFF TECHNICAL ADJUSTMENTS.
ASSEMBLYWOMAN LESLIE SECONDED THE MOTION.
Mr. Raxter:
There is one additional issue you may wish to consider. Decision unit E-401 involves a modification submitted by the Budget Division of $28,710 annually to fund the ongoing costs of the Interstate Compact for Adult Offender Supervision.
Assemblywoman Giunchigliani:
I would like to include that in my motion.
Assemblywoman Leslie:
I agree.
ASSEMBLYWOMAN GIUNCHIGLIANI MOVED TO CLOSE BUDGET ACCOUNT 101-3740 AS RECOMMENDED BY STAFF, INCLUDING PROPORTIONATE RESTORATION OF FUNDS FOR DRUG USAGE TESTING, COMMUNITY SERVICES IN WASHOE COUNTY, ABSCONDER RETURNS, MICROFILMING AND THE RURAL AREA RESIDENTIAL CONFINEMENT PROGRAM; TO MOVE FUNDS ASSOCIATED WITH DECISION UNIT E-400 FROM BUDGET ACCOUNT 101-3740 TO THE DRUG COURT BUDGET UNDER THE ADMINISTRATION OF THE ADMINISTRATIVE OFFICE OF THE COURTS THEREBY CONSOLIDATING FUNDING FOR DRUG COURT PROGRAMS; TO FUND $28,710 IN EACH YEAR OF THE 2003-2005 BIENNIUM FOR ONGOING COSTS OF THE INTERSTATE COMPACT FOR ADULT OFFENDER SUPERVISION; AND TO INCLUDE STAFF TECHNICAL ADJUSTMENTS.
ASSEMBLYWOMAN LESLIE SECONDED THE MOTION.
Assemblyman Parks:
Did Assemblywoman Giunchigliani include the cost of microfilming in her motion?
Assemblywoman Giunchigliani:
Yes.
ASSEMBLY: THE MOTION PASSED. (ASSEMBLYMAN PERKINS WAS ABSENT FOR THE VOTE.)
SENATE: THE MOTION PASSED UNANIMOUSLY.
*****
Senator Rhoads:
We will move on to the parole board issues.
Public Safety, Parole Board – Budget Page PS-167 (Volume 3)
Budget Account 101-3800
Mr. Raxter:
The Governor recommends funding for videoconferencing equipment and ongoing telecommunications costs for the State Board of Parole Commissioners (Parole Board). Videoconferencing began last fiscal year. Usage has increased slowly, but the Parole Board is now being bumped from equipment use because the current equipment is borrowed from other governmental agencies and there is growing demand by the board for usage. The Parole Board would like to have its own equipment. This would eliminate scheduling problems associated with crime victims and other interested persons. The board requests $35,000 the first year and approximately $20,000 the second year. Staff recommends approval.
The budget includes reduction in travel, related in part to the growth of videoconferencing. The agency indicates that videoconferencing could also delay the need to add another commissioner position. There are technical adjustments for property contents insurance and cost allocations in the Public Safety Technology and Administrative Services Divisions budgets.
ASSEMBLYMAN MARVEL MOVED TO CLOSE BUDGET ACCOUNT 101‑3800 AS RECOMMENDED BY STAFF, INCLUDING FUNDING FOR VIDEOCONFERENCING.
ASSEMBLYMAN COFFIN SECONDED THE MOTION.
Senator Coffin:
I have used videoconferencing twice. It has been a great help to me in testifying in hearings. It also provides additional security for the families of victims; they may be afraid to be in the same room as the offender. The Senate subcommittee has shown no indication of support for additional travel because of increased costs. As a consequence, we must approve videoconferencing.
ASSEMBLY: THE MOTION PASSED. (ASSEMBLYMAN PERKINS WAS ABSENT FOR THE VOTE.)
SENATE: THE MOTION PASSED UNANIMOUSLY.
*****
Senator Rhoads:
We have a number of veterans here from outside Carson City. We will address the budgets dealing with veterans’ affairs next.
COMMISSIONER FOR VETERANS AFFAIRS
Commissioner for Veterans Affairs – Budget Page VETERAN-1 (Volume 3)
Budget Account 101‑2560
Bob Guernsey, Principal Deputy Fiscal Analyst, Fiscal Analysis Division, Legislative Counsel Bureau:
The Governor recommends one new administrative assistant position to help operations in the Reno office in light of the increasing number of veterans in the state and the increased responsibilities of that office. The Governor has already increased significantly burial and cemetery interment fees. Staff and the agency believe that the anticipated fee collection can be increased by $10,000 each year. This would result in a General Fund savings. Additionally, adjustment to computer hardware prices would result in savings of $865 the first year.
ASSEMBLYWOMAN LESLIE MOVED TO CLOSE BUDGET ACCOUNT 101‑2560 AS RECOMMENDED BY STAFF.
ASSEMBLYMAN PARKS SECONDED THE MOTION.
ASSEMBLY: THE MOTION CARRIED. (ASSEMBLYMAN PERKINS WAS
ABSENT FOR THE VOTE.)
SENATE: THE MOTION CARRIED UNANIMOUSLY.
*****
Veterans Home Account – Budget Page VETERAN-6 (Volume 3)
Budget Account 101‑2561
Mr. Guernsey:
There has been considerable discussion regarding this account. Staff is not recommending closure today in light of a revised budget, the subject for today. The 70th Legislative Session approved a budget for the home based on a construction completion date of June 2000 with the first admissions in July 2000. There were numerous construction delays. The first veterans were not admitted until August 2002. The home currently operates with 48 veterans and a staff of 75. There has been considerable turnover, particularly among key positions, the director of nurses, the administrator of the agency, and the administrative services officer. The Budget Division was placed in the position of not having viable budget to present this session. It submitted the 2001 budget for consideration again this year, spending a considerable amount of time examining the revenue portion with the understanding that there would be major adjustments to the expenditure portion of the budget once new senior staff members were hired.
The requisite senior personnel have been hired; they have worked quite hard with the Budget Division. The home administrative staff has done a great job submitting a revised budget for consideration by this committee. Staff received the revised budget on April 25, 2003. We discovered a calculation error relating to the relief factor; a 1.4 factor was used rather than the correct 1.6 figure used in the mental health and corrections fields. The numbers are being recalculated. The initial revised budget results in considerable savings of $570,000 to the General Fund the first year and $1.2 million the second year. These numbers are under revision. I estimate the savings numbers will not be quite as large because we will need to add some direct care staff to provide adequate 24-hour coverage in the facility. Initially, we were looking at a reduction of about 55 positions. This reduction resulted from conversion to contractor-provided services in the areas of grounds, activity therapy, and housekeeping. The new administrator believes efficiencies can be gained if these services are provided on a contract basis.
The original budget anticipated 80 percent of the veterans would qualify for Medicaid. After examining the qualification rate in other states, it now appears that figure is too high. The figures in other states run from 55 percent to 73 percent Medicaid qualification among veterans in veterans’ homes. The revised budget lowers our figure to 60 percent of the veterans. It is also anticipated that 80 percent of the veterans will qualify for Veterans Administration (VA) per diem reimbursement at a rate of $57.78 per day. In order to receive these funds, the facility needs to be certified by the VA. That survey was completed recently, and the facility was determined to have no deficiencies. Once paper confirmation is received, funds can be received. We do not know whether that funding will be retroactive.
We had considerable discussion on the issue of State operation of the home as opposed to contracting the entire operation. The daily rate comparisons for neighboring western states, based on 2002 information, show privately operated homes cost somewhat less, at least in Montana, Oregon, and Utah, when compared to state-operated homes in Arizona, California, Idaho, Montana, New Mexico, and Washington. However, this comparison is apparently not one comparing apples to apples. There are significant differences in the level of care, staff turnover levels, and unfavorable management experiences. Further information will be presented by the agency.
The committee should have an understanding of the agency proposals prior to closing the budget. Based on availability of staff, I anticipate being able to close the budget within the next week depending on committee reaction to the latest information.
Senator Rhoads:
We will not close the budget today. I suggest waiting until our next meeting.
Charles W. Fulkerson, Executive Director, Office of Veterans’ Services:
Mr. Guernsey presented a fine analysis of our recent history and present situation. I would only add a few comments. The adjustments in this budget are based on our experience after the home began admitting residents in August 2002 and on input from our administrator, applying his working knowledge from the successful operation of three state-run homes in Idaho over a 19-year period. I want to emphasize the knowledge basis for these revisions. We did not base the budget on estimates of State employees without operating experience in nursing homes as was done in previous Legislative Sessions. The revised budget submitted on April 25 included impacts of a partial operation in FY 2004 instead of the full operation initially anticipated.
Gary Bermeosolo, Director, Veterans Home:
You have my written testimony presenting an update of our FY 2004‑2005 budget (Exhibit D). I would like to highlight the following accomplishments: modification of the FY 2004 budget request to reflect the opening of our two remaining patient wings; modification of our Medicaid patient mix calculations to a more realistic rate of 60 percent; increasing our private pay patient mix projections from 13 percent to 33 percent; reducing our staffing request by 41 positions; contracting housekeeping, laundry, and landscape services for total annual savings of approximately $430,000; and reducing our overall budget request by approximately $1.26 million. Additionally, I am pleased to report VA surveyors reported a finding of “no deficiencies” and a recommendation to VA Central Office for full recognition, after spending 3 full days inspecting the home. We will continue to work closely with both the Budget Division and Legislative staff in preparation for closing of our budget.
Senator Rhoads:
How many patients do you have currently?
Mr. Bermeosolo:
We have 48 patients. Our general admission rooms are filled to capacity. The special care unit, the dementia unit, has vacancies. We have exhausted its waiting list. I believe the veterans’ community knows we are continuing to operate with only one patient wing, and we are not accepting general patients. I am confident the special care unit will fill over the next year.
Senator Rhoads:
Have you exhausted the entire waiting lists?
Mr. Bermeosolo:
We have exhausted the dementia residents’ waiting list. We have 93 people on the general waiting list, or in the process of addition to the list. My experience is that about a third of those will be admitted. Opening the next patient wing will probably exhaust that list, having admitted perhaps 35 or 40 people from the list.
Mr. Guernsey:
The facility has three wings, one of which is in operation. Current funding, excluding the VA reimbursement, will be insufficient to last through July 1 if the home opens another wing. The home is limited by the VA certification allowing receipt of federal funds. If the home were to expand capacity at this time, it would need a supplemental appropriation.
Senator Rhoads:
What numbers does the federal government consider in determining funding for the Nevada home? Is this population based?
Mr. Bermeosolo:
The federal government computes a national average per diem rate and attempts to provide a reimbursement rate at one-third of that amount. Currently, that is little more than $56. The recommendation in next year’s budget is a little more than $57. Essentially, the federal government picks up one-third of the national average.
Senator Rhoads:
Your statement mentions that 46 states have veterans’ homes, what do the other states do for care?
Mr. Bermeosolo:
Three states do not have veterans’ homes, Alaska, Hawaii, and Delaware. Delaware’s legislature has authorized a study. Alaska and Hawaii are complex situations driven by geography. Hawaii, with three major and several minor islands, faces questions of service. The focus there is on a home health model. The cost of care is tremendous in Alaska. Alaska has pioneer homes and is considering designating a wing in each home for veterans. That will require special legislation, and Alaskan congressmen are working on that.
Senator Rhoads:
Of the 46 states having homes, how many are private?
Mr. Bermeosolo:
Actually 47 states have homes counting Nevada. Eighty-seven percent of these homes are operated by the state.
Senator Coffin:
Did you mention the per diem reimbursement for Alzheimer’s patients? Supervision of these patients is much more intensive. What does the federal government take into account for that population?
Mr. Bermeosolo:
The federal government pays the same per diem rate for Alzheimer’s patients as for other patients. Its computation involves an average cost per bed. There should be additional money forthcoming. The national association of veterans’ homes is attempting to obtain VA recognition of the differences in cost. Of course, you are correct; dementia patients require considerably more care.
Senator Coffin:
How many people in the population suffer from dementia?
Mr. Bermeosolo:
Probably about 5 percent suffer from dementia.
Mr. Fulkerson:
The VA has identified untreated Alzheimer’s as one of the largest unmet needs in senior America. It did not identify numbers.
Senator Coffin:
I recognize the magnitude of the problem. Our medical budget will increase, and we could be in considerable trouble without adequate staff.
Mr. Bermeosolo:
I would like to point out that there are many types of dementia. I suspect my 5 percent estimate is relatively accurate.
Senator Coffin:
I would like to see an age breakdown. You know you will receive more dementia patients, and you know that some existing patients will be afflicted in the future. We need to take that into account. Would you provide a breakdown of ages with brackets narrower than 5 years?
Mr. Guernsey:
The committee now has before it updated figures provided by the agency in Mr. Fulkerson’s written testimony (Exhibit F). The first sheet shows the percentage of clients anticipated under the VA reimbursement program. The second sheet contains revenue projections developed jointly by the agency and the Budget Division; it shows various sources of revenue to support admitted veterans. The last sheet, subject to modification, contrasts the original Governor’s recommended budget with the working version. I cannot yet verify these numbers, but the sheet shows a General Fund savings of $1.2 million for the biennium.
Darrell L. Hansen, Administrative Services Officer, Nevada Veterans’ Nursing Home:
The first sheet of the handout you have before you indicates the patient mix as Mr. Guernsey mentioned. Spouses and Gold Star parents can be admitted to the home, and they are included in the percentage figures since they are not eligible for the VA per diem payment. Turning the second sheet, the 120 average patients for FY 2004 represents our patient ramp up averaged over the year. We anticipate having about 68 residents in July and adding 10 residents a month thereafter until we reach 158 patients or 88 percent capacity, our estimated effective capacity. Patient days, and VA per diem entries involve straightforward calculations. Medicare payment rates can vary based on the acuity of the patient. Medicaid entries include adjustments for the number of anticipated Medicaid residents and the change in the per diem rate. After much examination, we use the State rate of $121 dollars per patient day. Private pay entries involve a $50 per day rate and our estimate of patients in this category. The last worksheet reflects Medicaid changes. Personnel expenses have been decreased to reflect our elimination of 4 positions and a pay scale necessary to attract quality caregivers. The contract entries include anticipated costs of housekeeping, laundry, and groundskeeping as well as other minor contracts we have to put together.
Senator Rhoads:
Our staff will be going over these figures with you in the next several days.
Mr. Guernsey:
Please note the license plate charge on the sheet provided by the agency indicating revenue sources and derived funding. That charge is projected at $97,569 each year. There is a current bill, which if passed without amendment, would require license plate funds to go into a separate account for the veterans’ use and would not go to support the home directly. Passage of the bill as it stands would entail a General Fund increase of the $97,569 annually.
Assemblyman Parks:
Is this money that would go into the gift account for the veterans home? I know there are several bills dealing with this issue.
Mr. Guernsey:
That is correct. It would not go to the direct support of the home.
Senator Rhoads:
Are there other issues we need to discuss?
Mr. Fulkerson:
We are prepared to discuss the issue of State management and for-profit management of homes.
You have before you an information packet, including my written testimony, on the operational choice between for-profit or State management of veterans nursing homes in Nevada (Exhibit E, Original is on file in the Research Library.) I strongly recommend our home remain under State management. I want to emphasize several points. The key issue is control of the quality of care; the decision cannot be made solely based on economics. Eighty-seven percent of state veterans’ nursing homes open today are managed by state employees because states want a higher standard of care and a level of stability that cannot be delivered by a for-profit manager. For‑profit homes have a staff turnover rate of 114 percent compared with 35 percent for state-operated homes. Employee longevity equals superior care and the cost of training new employees is greatly reduced.
There are other compelling reasons for State operation. State-operated homes attract large numbers of volunteers whose labor makes possible a level of care that cannot be approached by a for-profit operator. While the State might contract with a for-profit provider, the State retains responsibility for the performance of the contractor. With a for-profit operation, particularly in light of the unfortunate experiences of other states referenced in my written testimony, the potential for political embarrassment is expanded rather than reduced. Control of quality of care and quality of life are the two determining factors of nursing home operation that make the difference.
Assemblywoman Giunchigliani:
Mr. Fulkerson, I think you have reiterated what many of us thought initially. When I began working on this issue with Senator Jacobsen, we both felt a State‑managed program was best for Nevada veterans. The State is accountable, and the quality of care is the most important issue. I appreciate the information confirming our past concerns.
Senator Tiffany:
I have a lot of confidence now in our new director. I think you are coming around. I want to ensure the home is run as efficiently as possible, and I think you are taking the requisite steps. I encouraged you to look at privatization seriously. Those of us on the Interim Finance Committee will be keeping our eyes on you, but I hope you continue to move forward along your present path. I think you have appropriately contracted for some services, cut staff, and considered what staff should be hired at what developmental stage. Keep doing a good job.
Mr. Fulkerson:
Thank you, senator. Mr. Bermeosolo’s history in Idaho demonstrates a keen interest in addressing the issues about which you too have concerns.
Senator Rhoads:
Senator Jacobsen, do you have anything to add? No one has worked harder on this program than you have, especially during your many years in the Legislature.
Lawrence Jacobsen:
We have come a long way. I do not think you will ever realize how much effort has been expended. I chaired the Nevada Veterans’ Service Commission for the past 2 years, and do not think I ever accepted a job with more challenges, particularly trying to build a veterans home. I certainly oppose privatization. I have toured homes in other states and like our arrangement best. This is borne out by the amount of money we have in the gift fund. I just do not know how best to explain the amount of time many people spend on the veterans home.
The people of Boulder City have been tremendously accepting. They turned out on a weekend and did landscaping and other beautification work. I think every one of you should stop by for a visit.
Chuck Fulkerson has kept his nose to the grindstone day-by-day trying to address problems as they come up. Many do not realize that we are in charge of the guardianship program, so the children of veterans may also become our responsibility.
Many people do not yet realize the veterans home is available. I am sure every county would consider having a veterans’ officer in light of the program’s success in Las Vegas.
In our state, various veterans’ organizations have helped to carry the load. If you look around, you will see we are aging, and just cannot do all the things we used to do. Very seldom do veterans complain to the Legislature. They look after themselves as best they can. I think we owe them the debt of gratitude. The volunteer effort is most important, probably the most important thing to be lost in privatization. The private veterans homes I visited reminded me of prisons. I would like to introduce the current chairman of the Nevada Veterans’ Service Commission.
Ronald Kruse, Chairman, Nevada Veterans’ Services Commission:
I am a retired chief petty officer, and have been with the commission for 4 years. I was the vice chairman under Senator Jacobsen and learned a tremendous amount. I speak today for the majority of veterans in Nevada. We are growing rapidly. I belong to a number of veterans’ organizations. I am in total support of the budget you have before you. I have been involved with the home project since its 1993 inception. While there have been many ups and down, we now have the proper personnel in place to do the job. We need to give them the tools to make the veterans home a standout in its field.
Darryl Mobley:
I carry a message from the Adjutant of the Veterans of Foreign Wars (VFW) of Nevada. The VFW opposes the privatization of the Nevada Veterans Home. I implore you to continue to give support to those who have sacrificed in service.
Ron Gutzman:
I represent the American Legion at the State level. I also speak for the Disabled American Veterans and the Marine Corps League at the local level. After I learned of the privatization issue, I contacted a number of my veteran colleagues throughout the state. The veterans unanimously oppose privatization. The most significant reason is the volunteer work available to state-run homes. The American Legion recently gave one of its members an award for 10,000 hours of volunteer work at the veterans’ hospital in Reno. That was 3 years ago; he now has 12,000 hours of volunteer service, the equivalent of 6 years full-time work. This activity would be jeopardized by privatization.
David Wyble:
I am the Department of Nevada Disabled American Veterans Vice-Commander. I am also the Commandant of the Marine Corps League within the state. I want to emphasize what my colleagues have said. We have many disabled veterans performing volunteer service in hospitals and nursing homes. Privatization will definitely do more harm than good.
Senator Rhoads:
I will close the hearing on this budget, and ask staff to return to us with a final recommendation.
We will go back to the administrative services budget.
DEPARTMENT OF MOTOR VEHICLES
DMV, Administrative Services – Budget Page DMV-9 (Volume 3)
Budget Account 201-4745
Mark Krmpotic, Senior Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau:
Before focusing on this budget, I would like to provide an overview of the 22 percent cap status. Action was taken on April 17, 2003, to transfer excess reversions from the record search account to other budget accounts receiving Highway Fund appropriations to offset or reduce Highway Fund appropriations thereby aiding the department to remain under the 22 percent cap. Staff has implemented those adjustments in the budget accounts you will review today. We have also made several technical adjustments to the budget accounts, and we suggest other reductions throughout the budget accounts, which, if approved, would assist in maintaining the department below the 22 percent cap as directed by the committee on April 17. The department previously suggested a fee charged for dealer’s reports of sale of new vehicles. Staff recently learned the Governor supports expansion of the $8.25 fee on the dealer’s reports of sale to third-party sales as well. Ms. Lewis can provide additional information. Were the committee to approve the adjustments recommended by staff throughout these accounts, then, including the increased revenue from dealer’s reports of sale and adjustments involving the Highway Fund I have outlined, the department would be under the 22 percent cap by approximately $1.9 million in FY 2004 and $208,000 in FY 2005.
Virginia (Ginny) Lewis, Director, Department of Motor Vehicles:
I would like to discuss the expansion of the use of the dealer’s report of sale. The fee would also apply to third-party sales of vehicles, and the assessment would be at the same $8.25 level. This fee would apply to your purchase of a neighbor’s vehicle. The provision would allow you to operate the vehicle legally for 10 days, allowing for smog inspection to be performed.
Senator Rhoads:
Today, were I to sell a car to you, would I have to pay anything?
Ms. Lewis:
You could get a temporary movement permit at no fee. It is questionable whether people are actually doing that. Our proposal provides a parallel with a purchase from a dealer. If you buy from a dealer, you have 30 days to operate the vehicle without a registration. I think this is an appropriate fee collection. The Governor supports this new $8.25 fee.
Mr. Krmpotic:
The first item for decision relates to the addition of five new accounting assistant positions found in enhancement unit E-351. These positions provide support functions in field offices by assisting with revenue deposits and providing change to technicians. Approval of additional positions in this module would depend on committee action taken regarding positions in the major metropolitan field offices. A decision to eliminate or significantly reduce recommended positions in the field services account for a particular office would result in a reduction to this module. Staff suggests action be taken while considering E-350 in the field services account, or staff be permitted to adjust accordingly.
Senator Rhoads:
I suggest the committee agree to let staff act accordingly when we act on these other matters.
Mr. Krmpotic:
The next item deals with the addition of a chief accountant to assist with the fiscal operations of the Administrative Services Division. The agency provided an organization chart reflecting the chief accountant overseeing the revenue section. An administrative services officer presently oversees that section. According to the organization chart, that position would become primarily responsible for the supervision of accounts payable. The agency reported it was implementing a general ledger system put in place about March 1, 2003. Its function is to assist in the reconciliation of revenue collection and distribution. The system flows from an audit exception noted by the Legislative auditor and accepted by the agency last year.
It appears the department may benefit from the expertise of a chief accountant. However, staff is not convinced that an additional position is necessary. The committee may wish to consider an upgrade of the existing administrative services officer to a chief accountant in lieu of approving a new position. An upgrade rather than a new position would result in savings of approximately $73,000 the first year and $85,000 the second year. This item was identified as a possible reduction to assist the department remaining under the 22 percent cap.
The next item recommends a personnel analyst for the department. This position would process requests for reclassification, establish a tracking system to ensure completion of employee evaluations, oversee employee satisfaction surveys, and develop reports on equal employment opportunity. Staff has laid out the ratio of personnel staff to total staff as compared to other agencies. We have no concerns about adding this position.
The next item would add $25,000 annually to fund ergonomic equipment. The department reports this request is driven by the fact that risk management will no longer fund such purchases. In evaluating this recommendation, staff considered the State administrative manual used by Executive Branch Agencies; it states the Risk Management Division encourages agencies to provide their own ergonomic equipment. That division might provide funds where the agency does not have funding. Staff noted several instances where economic equipment such as keyboards, computer glare screens, and chairs were recommended in department budget accounts. If the committee approves this module, staff suggests a letter of intent indicating the funding is to be used solely for the purpose of preventing or correcting a worker-related illness or injury. If funding exists to meet routine ergonomic needs, those funds should be used first prior to expenditure of funds recommended in this module. Further, staff suggests the letter of intent require the agency report quarterly on expenditures using these funds.
While there are other items, I want to identify one in particular. Staff has eliminated funding in decision module E-730 for $15,000 annually. This was recommended in the budget as a contingency for facility maintenance repairs. Staff recognizes that major repair requirements will arise, but we suggest removal of this funding, and that the agency seek a contingency fund allocation from the Highway Fund portion of that account should it become necessary.
Finally, staff seeks approval to make changes to several modules based on final approval of the technology division account. We also seek approval to make changes to the interagency cost allocation based on final approval of the budgets for the department.
Senator Coffin:
I have long been concerned about fees and wait times. The wait times in the Field Services Division are projected to be about 90 minutes in Las Vegas and 30 minutes in Reno.
Mr. Krmpotic:
My recollection is the wait times in Las Vegas offices were running about 73 minutes according to the department. Reno has consistently been below an hour.
Senator Coffin:
How will only five positions improve the wait times? That seems to be the key question.
Mr. Krmpotic:
These positions would have an indirect relationship to wait times. For instance, were a technician to run out of change in a cash drawer, the technician would have to leave the window and go to the office of the revenue staff. The additional staff would allow a faster turnaround, allowing the technician to receive change sooner.
Senator Coffin:
Where will these positions go?
Mr. Krmpotic:
The positions would be located in the major metropolitan offices in Las Vegas, one per office, and in the major office in Reno.
Senator Coffin:
I do not see that as aiding a decrease in wait time. Maybe the 147 position compromise in the field office budget would help as much as this. I want to ensure that our approval of this reduced budget will not harm the implementation of other budgets. My intention is to instill in the minds of committee members the necessity of finding money to make the system work better. People in Las Vegas report the wait is longer than 73 minutes. Averages can be deceiving. The average person will report the wait is more like half a day.
Mr. Krmpotic:
You are correct, the 73 minutes is an average. Some wait times are 2 to 3 hours based on statistics I have seen. I can only add that this seems driven by the fact that the staffing recommended in field services would require additional windows to have more cash. These positions would assist in providing change and also in reconciling the amount of cash received at the end of the day. The recommendation is driven by the number of additional windows staffed by these positions.
Assemblywoman Giunchigliani:
My only concern about the ergonomic equipment is that the State should be buying the appropriate equipment the first time. Was this an inappropriate initial purchase?
Mr. Krmpotic:
Staff is suspect of the amount of money recommended. The amount of $25,000 is based on that amount budgeted in FY 2000. I noted while going through other accounts that the agency has requested keyboards, ergonomic chairs, mouse trackballs, and screens.
Assemblywoman Giunchigliani:
All of that is necessary, but it should have been purchased initially. Maybe we could look at a letter of intent as staff recommended, and then contact purchasing to ensure the proper materials are available. We should not fund recommendations if agencies do not purchase the right equipment in the first place. I will include that in the motion.
ASSEMBLYWOMAN GIUNCHIGLIANI MOVED TO CLOSE BUDGET 201‑4745 AS RECOMMENDED BY STAFF, EXCLUDING THE CHIEF ACCOUNTANT POSITION AND SUBSTITUTING AN UPGRADE OF THE EXISTING ADMINISTRATIVE SERVICES OFFICER POSITION, INCLUDING A LETTER OF INTENT ON ERGONOMIC EQUIPMENT, INCLUDING REDUCTIONS IN TRAVEL IN E-500 BY $2100 THE FIRST YEAR AND $4200 THE SECOND YEAR AND ELIMINATION OF TRAVEL IN THE SECOND YEAR IN E-501, AND DIRECTING THAT $15,000 ANNUALLY BE REMOVED FROM E-730 TO SUPPORT A CONTINGENCY FOR UNANTICIPATED BUILDING REPAIRS THROUGHOUT THE STATE.
ASSEMBLYMAN PARKS SECONDED THE MOTION.
ASSEMBLY: THE MOTION CARRIED. (ASSEMBLYMAN PERKINS WAS ABSENT FOR THE VOTE.)
SENATE: THE MOTION CARRIED UNANIMOUSLY.
*****
DMV, Field Services – Budget Page DMV-29 (Volume 3)
Budget Account 201‑4735
Mr. Krmpotic:
The main issue is increased staffing for field offices. The Executive Budget recommended $3.8 million in FY 2004 and $7.4 million in FY 2005 to add 179 new positions to provide 100 percent window staffing at the five major metropolitan offices in Las Vegas and Reno and to provide vehicle registration and driver’s licensing services to citizens on Saturdays in Carson City. The Budget Division has submitted an amendment reducing funding by approximately $600,000 the first year and $1.1 million in FY 2005 for a reduction in positions from 179 to 154 based on changes to the department’s staffing formula. Staff recommends further reduction by $248,000 the first year and $339,000 the second year and a corresponding reduction in positions from 154 to 147 based on responses from the agency regarding the number of hours available by position for certain office functions and for adjustments in equipment and computer prices.
The committee may wish to consider the department has proposed 24 hours of customer service training in its relief factor. This is ongoing training each year for each employee in the major metropolitan offices. Sixteen hours of customer service training is currently provided to new employees in initial training in the Field Services Division. Once customer service training is provided to new employees, it is not clear why ongoing training is necessary. Removal of 24 hours of customer service training from the relief factor would result in a reduction of seven positions from the staffing recommendation. Staff estimates this amounts to approximately $114,000 the first year and about $209,000 the second year.
You should consider elimination of 11 positions for Saturday operations in the Carson City office until the department can fully justify the need to add Saturday services and increase staffing on weekdays. Staff also recommends the approval of a queue system for the Carson City office, which should help the agency in its management of customer flow throughout the office. It would also aid the determination of customer volume and whether there is a future need for service expansion.
The staffing formula takes into account the average period of time an office conducts transactions following the close of operations at 5 p.m. each day. In Las Vegas, this equates to 1.5 hours each weekday. In Reno, the average time is 0.5 hours. Staff has identified overtime expenses of approximately $280,000 each year incorporated into the budget based on overtime spent to conduct transactions beyond 5 p.m. If the committee approves the increase in staffing, a reduction in overtime in this amount should be considered.
Wait time statistics for the Reno office reflect average wait times consistently below an hour. The Governor recommends the implementation of these positions beginning in June 2004. The committee may wish to place funding for these positions in reserve and have the department return to the Interim Finance Committee (IFC) to justify use of these funds. Staff notes the Reno office positions are ranked 17th of 19 on the department’s priority listing.
Senator Coffin:
I would like to address the issue of staffing and wait times. There is a problem in the entire Clark County area. Staff has identified our major constituent complaint. There is no greater concern than having to go to the Department of Motor Vehicles (DMV). It is not the DMV’s fault; it is the Legislature’s fault. We have to decide on the number of people working in field offices. The Las Vegas office is open an hour and a half past closing. Even the Reno office is open later than it should be.
We are told the wait time averages about 70 minutes, yet the offices are closing 1.5 hours late. This identifies the impact of wait time in a different manner. If the DMV is down to 147 needed bodies from an interim figure of 154, down from the original figure of 179, then the question remains what the DMV requested initially. What was the initial request to the Governor? We no longer see this. Was it over 200 positions? What was the number identified to solve the problem?
Mr. Krmpotic:
This item received special consideration. There is no entry in the “agency recommendation” column in the Executive Budget. The agency requested 179 positions in its item for special consideration. That was approved by the Governor.
Senator Coffin:
Before I can approve any part of this budget, I need to feel we have done the right thing. I do not think we have. If the agency has tightened from 179 to 147 positions, and the committee will be aware that the agency had to have wanted more, then long wait times will continue. We have a way to find the money by increasing fees on newcomers to the state. This is being driven by politics. There is a reluctance to increase fees. I am not afraid to raise fees if it is for an important reason. How did we drop 32 positions? What can we do? Is there an appetite to tell the DMV to provide us with a number of positions it really wants so that we can consider what fee is appropriate?
Senator Rhoads:
I think the DMV is raising some fees.
Senator Coffin:
I mean the large fees. We have the rough data. We simply do not have the dollar amount in front of us delineating what we would need to reduce wait times to what our constituents would think reasonable. We should make this problem go away.
Assemblyman Griffin:
I agree substantially with Senator Coffin, but want to advocate a different direction. It seems we are spending a lot of money to build infrastructure to deal with a legitimate need in a traditional way. We are implementing a traditional solution at the same time we are undertaking the kiosk studies. Rather than respond traditionally, perhaps we should emphasize a nontraditional approach. I also have a hesitancy to deal with this budget, but I tend to look for a new approach. What do these kiosks do and what benefits can they yield? I see it is a small pilot program. I think we asked the question in a pre-session meeting, “How many people in line could be conducting their business over the Internet?” We could do more to encourage choice. The kiosks might be one of the alternatives. Rather than grow traditional infrastructure, perhaps we should invest in kiosks in a couple of years if they work well.
Senator Coffin:
Wait until you return from this Legislative session, your first, and you suffer the complaints you receive from your friends about this problem. You have not lived through the most significant complaint you will receive. You have in your hands the opportunity to solve it. I believe the kiosks are a major part of the solution. We are not really talking about an old fashioned approach. We will have to spend money, and we know where we can find it. We should enhance window service, and we should have more kiosks. We should get rid of this problem.
Senator Rhoads:
I think Mr. Krmpotic has done an excellent job in pointing out present deficiencies and the improvements we need to make. I would like the agency to respond to the questions posed by Senator Coffin and Assemblyman Griffin. Will the 147 new positions actually reduce waiting times?
Ms. Lewis:
We brought forward this staffing package because we believe wait times are unacceptable. Senator Coffin is correct; the average wait time in Las Vegas is over 70 minutes, but that is an average. There are customers who wait 2 to 3 hours. We are acutely aware of that. Kiosks and the emission station software upgrade are solutions. We are very excited about them. However, the kiosks are a pilot program. We start in May. We hope to operate for several months to work out the bugs and collect some data. We will then be able to see what a kiosk can produce in an hour and in a day. If the Legislature decides we should then go to a full-blown kiosk pilot, we could address the needs of customers in the office in this new way.
Assemblyman Griffin is correct. Getting the word out about service alternatives to a DMV office visit is critical. However, we cannot forget that customers will come to DMV offices, and there is nothing we can do to address their presence other than a solution within the DMV office. We are referring to some of these solutions as “virtual technicians” so that a human does not have to interact with all customers.
Let me address the reduction in our staffing proposal. I went back to the Governor because our original staffing request described 100 percent efficiency for the Carson City field office. We were trying to provide Saturday service in Carson City. We took the 19 positions originally identified and considered the number needed to provide just Saturday service. We reduced that number from 19 to 11 positions. We worked closely with Mr. Krmpotic, who was a tremendous help, to fine‑tune our staffing formula. We made some technical adjustments. As a result, the decrease from 179 to where we are today represents a legitimate assessment. Our goal is 100 percent efficiency in the metropolitan offices. Our requested staffing, if approved, will achieve that objective.
Senator Coffin:
What number will reduce the wait times, 179 or 147?
Ms. Lewis:
We are proposing 147 positions today. That number addresses the five metropolitan offices and includes Saturday service in Carson City.
Senator Coffin:
I still do not believe this. I am not saying you are a liar, not at all. I think there is incredible pressure being applied to bring the increased positions back to something in the 22 percent range rather than the 29 percent range of the original goal in order to avoid additional charges to the Highway Fund. Am I correct?
Ms. Lewis:
My responsibility is to bring forward an accurate staffing proposal. I believe the 147 proposal is accurate. I would be remiss had I inflated the staffing formula. I do not do business that way. The 147-position proposal, taking account of the fine-tuning of the formula, is a solid one.
Senator Coffin:
I believe you are truthful in what you say. However, I think you are in denial.
Assemblywoman Giunchigliani:
I want to proceed along two different lines. I do believe we should raise the fees on first-time registrants. I am also concerned about increasing bureaucracy. Once we do that, we are stuck with the result. I like the idea of the kiosks. We need to know if they work, of course. I think we need more computer access. Can we build computer access into DMV offices? This would provide an alternative for people who do not have computers at home. A DMV host could take people out of line and show them how to conduct transactions on line. We talked about hosts years ago. Additionally, we should consider travel teams, especially where businesses are hiring numbers of personnel. We could deal with issues on site, charging what was appropriate. We never got the budget up and running to provide travel teams. I know there are small businesses that would pay to have their problems alleviated. Perhaps we should segregate our increases so that we do not simply add bodies to traditional functions. Instead we could use innovative ways to address our concerns.
Ms. Lewis:
If the initial kiosk trial is successful, the third phase is to implement the concept outside the building in an ATM-like manner in order to provide 24-hour service. We cannot lose sight of the fact that customers want to come to our sites and walk away with their decals. This can be accomplished using the kiosks.
Assemblywoman Giunchigliani:
Can a decal be dispensed like stamps from a stamp machine?
Ms. Lewis:
A kiosk will provide change, a registration receipt, and a decal.
Travel teams are clearly a convenience for the public. We have learned a lot in the implementation of travel teams. Unfortunately, they are not comparatively efficient if one compares in-office worker productivity to productivity per member of a travel team. We considered this in our proposal. I believe Assemblywoman Giunchigliani was instrumental in legislation allowing DMV personnel to visit companies with an appropriate service surcharge. That project never got off the ground. We submitted a report to the Legislature describing its lack of success. There was a sunset clause in the legislation, and we stopped the program.
Senator Coffin:
The DMV has high personnel turnover. What is the number?
Ms. Lewis:
The turnover is about 2.5 percent in the field services staff.
Senator Coffin:
Concern has been expressed that we are building infrastructure by adding personnel. We are adding people, but they are not permanent. Staffers come to the DMV; some succeed; some retire. We would not be building a bureaucracy by adding personnel. The people we would add are service personnel, interfacing with the public. Whatever we spend here may be offset by personnel attrition. Five percent will leave the DMV by the end of the biennium. How many people will that be, and how many of them will be counter or other service personnel?
Ms. Lewis:
We factor in a 2.1 percent vacancy rate in our staffing formula to accommodate for those vacancies.
Senator Coffin:
If I lose my argument, and we end up with only 147 staff additions, we will end up with fewer than 147 people at the end of the biennium. We will be below that new number, and wait lines will still be long. I do not know if you want to resolve this issue this morning, Mr. Chairman.
Senator Rhoads:
We will let staff go through the remainder of the budgets and address that issue at the conclusion.
Mr. Krmpotic:
The points made by staff regarding the elimination of 24 hours of customer service training, the Carson City positions, and the overtime were factors in bringing the department under the 22 percent cap in the second year of the biennium.
The committee will recall the agency received approval to begin the kiosk pilot project this fiscal year. There is $50,000 this year to continue funding and $2 million in the second year of the biennium to expand that pilot. The agency requested to use the $2 million during the first year of the biennium based on its estimate that the pilot program would end during FY 2004. Staff recommends including language in the appropriations act to allow the department to transfer funding from FY 2005 to FY 2004 if needed. If the committee approves this module, staff further recommends a placement of funding in each year in the director’s office budget account with a transfer of funds in FY 2005 to the reserve. In that event, the agency could return to the IFC to demonstrate the results of the pilot project before expanding it.
The Governor recommended a driver examiner position in Fallon and a vehicle appraiser position in Reno. The Governor also recommended the transfer of 6 positions to the motor carrier account and 18 positions to the compliance enforcement account. Staff has no concerns with these recommendations.
Decision module E-301 recommended additional queuing system keypads for field office windows totaling about $97,000 in FY 2004. Staff recommends removal of this funding because of lack of justification by the agency. Finally, staff requests the ability to make adjustments for Budget Division amendments reducing expenditures in the first year by approximately $6700 for rent allocation in the Ely office.
Senator Rhoads:
Committee, how would you like to proceed? Are there additions or deletions to this budget? This is largely a Clark County issue.
Senator Coffin:
I would like to continue where I left off. We need more money. There are important opportunities here. I think we should implement kiosks; it should not merely be a pilot program. We know this works. It will just take some more money up front. Let us not study this for 2 years, let us put money into it now. I cannot present a cogent motion with a dollar figure because I do not know how much it will cost to bring DMV back to where it needs to be.
Senator Rhoads:
Perhaps we could ask that the DMV return to us with an estimate.
Senator Coffin:
I appreciate that. Someone became alarmed upon being told I wanted to double the fees. However, doing what I want will not necessarily involve a doubling of the fee on first-time registrations. Doubling would raise almost $40 million. We do not need $40 million to solve this problem. It might only take a $5 or $20 increase on first-time registrants to raise what is needed. I simply cannot present an appropriate motion based on the data we have.
Senator Rhoads:
Would you like additional figures based on several options?
Senator Coffin:
Thank you for the offer, Mr. Chairman. I would like to learn whether the committee has an appetite for this. We have put both our staff and the agency through a lot. Even the Governor has come to me to say he was unaware I was contemplating a fee increase only on first‑time registrations. There is doubt in my mind as to whether all of us shared the same basis for decision. Now we see a reduction in staffing to meet the budget. If there is appetite by the committee, I would like to wait a day or so for additional information.
Assemblyman Parks:
I think there is interest in holding this budget for a future meeting. We will be meeting later this week and again next week. I think we can work this in. I do not have a problem with closing part of this budget and leaving the major issue open for subsequent discussion. I will so move if I can get help on the appropriate motion structure.
Senator Rhoads:
Mr. Krmpotic, could you help us identify what can be in a motion that leaves the issues in question open? Ms. Lewis, would you please remain so we can provide you some direction?
Mr. Krmpotic:
The two contentious issues are increased staffing in major metropolitan offices and the kiosk pilot project expansion. The other items in this budget do not appear to relate to increased staff or the kiosk pilot project. The committee might defer decision on these two issues while approving the remainder of the budget items.
ASSEMBLYMAN PARKS MOVED TO CLOSE BUDGET ACCOUNT 201‑4735 AS RECOMMENDED BY STAFF, DEFERRING CONSIDERATION OF INCREASED STAFFING IN MAJOR METROPOLITAN FIELD OFFICES AND THE KIOSK PILOT PROJECT EXPANSION.
ASSEMBLYWOMAN GIUNCHIGLIANI SECONDED THE MOTION.
Assemblyman Parks:
Mr. Chairman, thank you for this opportunity. I am nervous about bureaucratic expansion regardless of funding. I would like to see the kiosks and alternative sites expand to fill additional demand. I would like to see that included in the additional information we receive if at all possible.
Assemblywoman Giunchigliani:
I recommend including elimination of 11 positions for Saturday service in Carson City in the motion we consider. I think this will clarify the issue for staff in consideration of the numbers.
Senator Rhoads:
Is that amenable to Assemblyman Parks?
Assemblyman Parks:
Yes.
ASSEMBLYMAN PARKS MOVED TO CLOSE BUDGET ACCOUNT 201‑4735 AS RECOMMENDED BY STAFF, ELIMINATING ELEVEN POSITIONS FOR SATURDAY OPERATIONS AT THE CARSON CITY OFFICE, AND DEFERRING CONSIDERATION OF INCREASED STAFFING IN MAJOR METROPOLITAN FIELD OFFICES AND THE KIOSK PILOT PROJECT EXPANSION.
ASSEMBLYWOMAN GIUNCHIGLIANI SECONDED THE MOTION.
ASSEMBLY: THE MOTION CARRIED. (ASSEMBLYMAN PERKINS WAS
ABSENT FOR THE VOTE.)
SENATE: THE MOTION CARRIED UNANIMOUSLY.
*****
Senator Rhoads:
Ms. Lewis, are you clear on the committee request?
Ms. Lewis:
I believe you have asked we verify 147 less 11 positions for Saturday service to reduce wait times. I think it is important to establish DMV needs initially and address funding secondarily. I do not see the reduction in staff flowing from the 22 percent cap issue. We have had that issue from the initial budget submission. We all know we have dealt with the 22 percent issue for many sessions and have now busted it wide open.
Senator Coffin:
I think there is some misunderstanding. We would like to know how much we would have to raise fees for first-time registrants and first-time licensees to bring the number of additional employees to 179.
Ms. Lewis:
After the last budget hearing and the discussion at that time, I went back to the Governor’s office to ensure there was no misunderstanding. There was not. There was no appetite to increase fees.
Senator Coffin:
I am sorry he has no appetite for this. I am tired of receiving complaints. I am tired of having to yell at you and your staff for help. I do not care if the Governor does not care. I care. I want to know how much money you need. I am trying to help you so you can help me. The Governor does not take my constituents’ calls; I do.
Ms. Lewis:
The Governor’s office takes quite a few calls as well. We are all looking for a solution.
Senator Rhoads:
I think staff is quite reasonable and has made a good recommendation.
Assemblywoman Giunchigliani:
I appreciate the time we have taken and understand we will not close today. If we were to immediately expand the kiosk program in some way, if we were to provide computer assistance, if we were to expand travel teams, what would that take in terms of dollars and staff? That is my understanding of what Senator Coffin and others would like to see. You will still need additional staff because any one alternative will not solve the problem completely. We want to have options so we can consider how to balance innovation in order to diminish the number of people coming to DMV offices to stand in line. If you or the agency is in an awkward position, perhaps we will have to ask Mr. Krmpotic to identify some options and tradeoffs. We are not criticizing either you or your agency. We are anxious to move forward.
Assemblyman Parks:
I think we have looked at the kiosk issue from the perspective of a pilot project. I think we should not go beyond the pilot stage until we know where we are going. I thought we had decided as much in our last meeting on this issue. I recently read an article in the New York Times about the New Jersey DMV, reputed to be one of the worst in the country. One program included an ability to do partial transactions on the Internet even if the entire procedure could not be accomplished on line. That seems interesting to me. If, for example, a person was unable to complete a transaction because of lack of a credit card, there was an option to bring partially completed paperwork to the DMV for final payment. This could save time.
Senator Rhoads:
Ms. Lewis, would you get that information to Mr. Krmpotic for analysis, then he will present it to us?
We will now turn to the central services budget.
DMV, Central Services – Budget Page DMV-46 (Volume 3)
Budget Account 201‑4741
Mr. Krmpotic:
The first item includes an increase in controls in the mail-in renewal section. This is a two-part request. The Governor requested two positions to assist with the logging and deposit of checks. The request is based on a statutory requirement that amounts in excess of $10,000 must be deposited by the following working day. The agency is not meeting that requirement currently. Staff believes this request to be reasonable. The second part of that request is for a document imaging system. It would record the checks received using a scanning system that retains a digitized image. Staff suggests elimination of the document imaging equipment following technical adjustments of $156,000 the first year and $15,000 the second year. If the committee approves the requested two positions to assist with deposits, those individuals can use personal computers to maintain a check log.
The next item involves additional staff of 2.5 positions to assist in reducing the title backlog. The agency goal is 14 days to process a title request. These staffers would assist in maintaining that period. This appears reasonable to staff.
The third item involves $400,000 the first year and $70,000 the second year to purchase a document imaging system to replace existing optical character reading technology. The agency indicates its existing equipment was purchased in 1991 and 1995; it is currently experiencing significant downtime. This module has been decreased by $36,451 in FY 2004 to eliminate a contingency incorporated into equipment cost and by $80,000 in FY 2005 to eliminate existing microfilm expenses rendered unnecessary were this system approved. Based on the condition of existing equipment and the ability to meet statutory record retention requirements, staff believes this recommendation to be reasonable.
Item four deals with replacement of an outside vendor for data mailers and decals. Funding was recommended at approximately $451,000 each year to enable the department to acquire equipment to produce license plate decals and data mailers. The department sends decals to citizens when a registration is renewed in a manner other than over the counter in a field office. Staff notes the agency has identified savings of $35,000 in each year through the elimination of waste. Staff has reduced the recommendation by $111,000 the first year and $31,000 the second year based on the elimination of a contingency and delayed implementation until October 1, 2003, which saves $80,000. Staff believes the recommendation reasonable. Should the committee approve the recommendation, reductions in the administrative services account are recommended at $26,000 the first year and $35,000 the second year, representing the elimination of waste associated with the internal production of decals and data mailers.
Next, continuation of two driver/warehouse positions is recommended. These positions were previously funded through a one-shot appropriation for the license plate reissue program. The agency indicates continuation would allow compliance with Occupational Safety and Health Administration (OSHA) requirements to have two staff present when working on high-voltage equipment in the license plate factory. Agency has provided staff with relevant OSHA requirements. The recommendation seems reasonable to staff.
Finally, Staff recommends eliminating funding of dues to participate in the National Motor Vehicle Title Information System based on a delayed implementation until FY 2005. Assembly Bill 325 calls for the expansion of salvage titles and a 2-day processing period. That bill may have a fiscal impact, and staff requests the ability to make changes should that legislation be approved.
ASSEMBLY BILL 325: Makes various changes relating to motor vehicles that have sustained certain damages. (BDR 43-222)
ASSEMBLYMAN PARKS MOVED TO CLOSE BUDGET 201-4741 WITH STAFF RECOMMENDATIONS, INCLUDING INCREASES IN THE MAIL-IN RENEWAL SECTION, THE TITLE BACKLOG REDUCTION, THE NEW DOCUMENT ARCHIVE TECHNOLOGY, THE DATA MAILERS AND DECALS, CONTINUATION OF THE DRIVER/WAREHOUSE POSITIONS, AND TECHNICAL ADJUSTMENTS.
SENATOR COFFIN SECONDED THE MOTION.
ASSEMBLY: THE MOTION CARRIED. (ASSEMBLYMAN PERKINS WAS
ABSENT FOR THE VOTE.)
SENATE: THE MOTION CARRIED UNANIMOUSLY.
*****
Senator Rhoads:
We will open the motor carrier budget.
DMV, Motor Carrier – Budget Page DMV-65 (Volume 3)
Budget Account 201‑4717
Mr. Krmpotic:
There is one major item for consideration in this account, the addition of a management analyst position recommended to provide detailed analysis of revenue and program information. The department has indicated that managers currently perform these tasks. It appears that the department currently has the ability to perform the tasks described for the new position. Staff seeks approval to make further modifications to the allocation of revenues for the gas tax program based on additional closing actions, changes to insurance rates State‑owned building rent, technology assessments, purchasing assessments and statewide cost allocation.
Senator Rhoads:
The issue here is staff’s recommendation we not approve a new management analyst position.
ASSEMBLYMAN PARKS MOVED TO CLOSE BUDGET ACCOUNT 201‑4717 AS RECOMMENDED BY STAFF.
ASSEMBLYWOMAN GIUNCHIGLIANI SECONDED THE MOTION.
ASSEMBLY: THE MOTION CARRIED. (ASSEMBLYMAN PERKINS WAS
ABSENT FOR THE VOTE.)
SENATE: THE MOTION CARRIED UNANIMOUSLY.
*****
Senator Rhoads:
We will turn to verification of insurance.
DMV, Verification of Insurance – Budget Page DMV-77 (Volume 3)
Budget Account 201-4731
Mr. Krmpotic:
This account has a single issue, the addition of two positions recommended to increase the number of verification cards sent each day from 900 to 1200. The department believes this increase has the potential of reducing the uninsured motorist rate by identifying those citizens whose coverage has lapsed. This recommendation appears reasonable to staff.
ASSEMBLYWOMAN GIUNCHIGLIANI MOVED TO CLOSE BUDGET ACCOUNT 201-4731 AS RECOMMENDED BY THE GOVERNOR WITH STAFF ADJUSTMENTS.
ASSEMBLYMAN PARKS SECONDED THE MOTION.
ASSEMBLY: THE MOTION CARRIED. (ASSEMBLYMAN PERKINS WAS
ABSENT FOR THE VOTE.)
SENATE: THE MOTION CARRIED UNANIMOUSLY.
*****
Senator Rhoads:
Records search is next.
DMV, Records Search – Budget Page DMV-89 (Volume 3)
Budget Account 201‑4711
Mr. Krmpotic:
Staff would like to identify the transfers out of the records search reversion based on committee actions of April 17, 2003. The transfer of the reversions has been split evenly between the central services account and the automation account to avoid cash flow issues for those accounts with the removal of Highway Fund appropriations. Staff recommends other adjustments to the Governor’s recommendations on this account.
ASSEMBLYMAN PARKS MOVED TO CLOSE BUDGET ACCOUNT 201‑4711 BASED ON STAFF RECOMMENDATIONS.
ASSEMBLYWOMAN GIUNCHIGLIANI SECONDED THE MOTION.
ASSEMBLY: THE MOTION PASSED. (ASSEMBLYMAN PERKINS WAS
ABSENT FOR THE VOTE.)
SENATE: THE MOTION PASSED UNANIMOUSLY.
*****
Senator Rhoads:
Let us move to the automation account.
DMV, Automation – Budget Page DMV-94 (Volume 3)
Budget Account 201‑4715
Mr. Krmpotic:
This account contains the continuation of 14 positions approved by the last Legislature with the recommendation they be considered by this Legislature. The department believes these positions should be continued in light of the 1300 system change requests it has identified. Between 75,000 and 100,000 work hours will be required to complete this work. The department has also identified additional on-line transactions and services over the next biennium requiring additional programmer time. Pending legislation would, if passed, require programming changes. Based on information provided by the agency, this recommendation appears reasonable. The agency also identified this as its number one priority.
The Governor recommends funding of $402,000 to purchase a storage area network, tape backup, and central storage device. The agency has cited improved customer service as one of the benefits of such a storage area network since technicians would not have to leave their workstations to look up historical information maintained on microfilm. Staff has eliminated a 10 percent contingency built into the cost of this module totaling $39,000. The recommended equipment seems reasonable to staff.
The Governor recommended $341,000 in FY 2004 and $34,000 in FY 2005 to upgrade the existing telephone call center system and interactive voice response systems. The department estimates the upgrade would reduce abandoned calls and talk time by 25 seconds per call. It would also provide the ability to communicate questions in English or Spanish. The department indicates the upgrade of the interactive voice response system is necessary because the vendor is ceasing support. Based on information supplied by the agency, the upgrades appear reasonable. Staff recommends elimination of the redundant interactive voice response system totaling approximately $153,000 the first year and $18,000 the second year based on information provided by the department regarding down time of 3 days in FY 2002. It does not appear the redundant system is necessary. Staff has made other technical and closing adjustments.
Assemblywoman Giunchigliani:
Regarding the interactive voice system, why would the department want someone to call them back? How much time would that eliminate if citizens can leave messages for the department?
Mr. Krmpotic:
This system provides the ability to allow callers to leave messages for the technician to call them back. The agency has indicated that it experiences “lost calls,” where a caller will wait and then give up on obtaining a response from the department.
Assemblywoman Giunchigliani:
Is the idea they would have talked to someone anyway? Returning these phone calls could involve a horrendous charge. I want to be careful about that. If we move in the direction of kiosk service, would the phone system be programmable to indicate how a caller might access a kiosk depending on the desired payment method?
Ms. Lewis:
Yes, the interactive voice system would provide the flexibility to expand the menu. Clearly, the more information given to customers up front, the better we will be able to advise regarding alternative services.
ASSEMBLYWOMAN GIUNCHIGLIANI MOVED TO CLOSE BUDGET ACCOUNT 201-4715, INCLUDING THE UPGRADE OF THE EXISTING TELECOMMUNICATIONS SYSTEM WHILE ELIMINATING THE REDUNDANT SYSTEM, INCLUDING CHANGES IN THE PUBLIC SAFETY TECHNOLOGY ALLOCATION, INCLUDING STAFF RECOMMENDATIONS AND TECHNICAL ADJUSTMENTS.
ASSEMBLYMAN PARKS SECONDED THE MOTION.
ASSEMBLY: THE MOTION CARRIED. (ASSEMBLYMAN PERKINS WAS
ABSENT FOR THE VOTE.)
SENATE: THE MOTION CARRIED UNANIMOUSLY.
*****
Assemblywoman Giunchigliani:
I did not include the continuation of 14 positions nor the storage area network issue in my motion. I would like guidance on how to proceed.
Senator Rhoads:
We are open for discussion.
ASSEMBLYWOMAN GIUNCHIGLIANI MOVED TO CONTINUE THE 14 POSITIONS APPROVED DURING THE 71ST LEGISLATIVE SESSION AND TO APPROVE FUNDING FOR STORAGE AREA NETWORK AND TAPE BACKUP EQUIPMENT.
ASSEMBLYMAN PARKS SECONDED THE MOTION.
ASSEMBLY: THE MOTION CARRIED. (ASSEMBLYMAN PERKINS WAS
ABSENT FOR THE VOTE.)
SENATE: THE MOTION CARRIED UNANIMOUSLY.
*****
Assemblywoman Giunchigliani:
I want to express appreciation to Mr. Krmpotic for all his work. There were a number of mix-ups in this budget. Mr. Krmpotic was very creative in the way in
which he assisted us in dealing with the percentage caps. We have great staff; they have worked very hard on this and other issues, and we are grateful.
Senator Rhoads:
I would like to add my appreciation as well. We stand adjourned at 11:05 a.m.
RESPECTFULLY SUBMITTED:
James D. Earl,
Committee Secretary
APPROVED BY:
Senator Dean A. Rhoads, Chairman
DATE:
Assemblyman David R. Parks, Chairman
DATE: