MINUTES OF THE
SENATE Committee on Finance
Seventy-second Session
May 12, 2003
The Senate Committee on Finance was called to order by Chairman William J. Raggio, at 4:23 p.m., on Monday, May 12, 2003, in Room 2134 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. Exhibit B is the Attendance Roster. All exhibits are available and on file at the Research Library of the Legislative Counsel Bureau.
COMMITTEE MEMBERS PRESENT:
Senator William J. Raggio, Chairman
Senator Raymond D. Rawson, Vice Chairman
Senator Dean A. Rhoads
Senator Barbara K. Cegavske
Senator Sandra J. Tiffany
Senator Bob Coffin
Senator Bernice Mathews
STAFF MEMBERS PRESENT:
Gary Ghiggeri, Senate Fiscal Analyst
Bob Guernsey, Principal Deputy Fiscal Analyst
Mark Krmpotic, Senior Program Analyst
Michael J. Chapman, Program Analyst
Jim Rodriguez, Program Analyst
Julie Walker, Committee Secretary
OTHERS PRESENT:
Jerry Ross, Chief of Financial Management, Nevada Department of Transportation
Virginia Lewis, Director, Department of Motor Vehicles
John P. Comeaux, Director, Administration
Senator Raggio asked staff to present the closing report for the Division of Mental Health and Developmental Services with recommendations by the Joint Subcommittee on K-12/Human Resources.
MENTAL HEALTH/DEVELOPMENTAL SERVICES DIVISION
Michael J. Chapman, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, presented the Human Resources subcommittee’s recommendations for the budgets within the Division of Mental Health and Developmental Services. The recommendations of the subcommittee generate a General Fund savings of $614,678 in fiscal year (FY) 2004 and $1,760,439 in FY 2005. There is a summary of the General Fund adjustments by agency on page 9 of Mr. Chapman’s report “Joint Subcommittee on K-12/Human Resources Closing Report” (Exhibit C. Original is on file in the Research Library.).
Prior to discussing the individual budgets, Mr. Chapman explained that during the budget closing process, the staff consolidated common issues of several agencies. On page 1, “service provider rate increases,” enhancement module E‑350, for example, issues pertinent to both mental health agencies and developmental services agencies were discussed by Mr. Chapman. He stated the subcommittee concurred with the Governor’s recommendations. The results appear on pages 1 and 2. There were technical adjustments for several agencies.
SENATOR RAWSON MADE A MOTION TO APPROVE THE INCREASES IN THE SERVICE PROVIDER RATES REFLECTED IN E-350 FOR BUDGET ACCOUNTS 101-3161, 101-3162, 101-3279, AND 101-3280.
SENATOR RHOADS SECONDED THE MOTION.
THE MOTION PASSED UNANIMOUSLY.
*****
Senator Raggio stated that the approval of the motion would be reflected in the vote for appropriate budgets. Mr. Chapman proceeded to the next heading on page 2, “increases in medication costs, various decision units.” In the four mental health agency accounts there were a number of decision units, including inflation, M-101; caseload increases, M-200; and increases addressing waiting lists for clients, E-431 and E-356. He said the subcommittee recommended approval of the Governor’s recommendation to increase medication costs for the mental health agencies, subject to technical adjustments. A budget amendment was approved reducing the cost of medication and generating General Fund savings.
Senator Raggio said the committee could approve the budget subject to staff review, and if a review changes the amount, it could be adopted. He then asked Mr. Chapman if the result of the amendment would be at least a $1 million General Fund savings in the biennium, to which Mr. Chapman answered it would.
SENATOR RAWSON MOVED TO APPROVE THE BUDGET AMENDMENT APPLICABLE TO BUDGET ACCOUNTS 101-3161, 101-3162, 101-3279, 101‑3280, AND 101-3648 ON REVISED CALCULATIONS FOR THE COST OF MEDICATION THAT REDUCES THEM, AS COVERED BY DECISION UNITS M-101,. M-200, 3-431, AND E-356, SUBJECT TO REVIEW BY STAFF AND ADOPTION IF THE AMOUNT CHANGES.
SENATOR RHOADS SECONDED THE MOTION.
THE MOTION PASSED UNANIMOUSLY.
*****
Senator Raggio stated that motion would be the decision in all of the various units.
The next item presented by Mr. Chapman affects the Northern Nevada Adult Mental Health Services (NNAMHS) and the Southern Nevada Adult Mental Health Service (SNAMHS) budget accounts classified as “pharmacist reclassifications” in module E-805. The subcommittee recommended approval of the Governor’s recommendation. Mr. Chapman’s discussion of this item appears on the bottom of page 2 of the exhibit.
SENATOR RAWSON MADE A MOTION TO APPROVE E-805 BUDGET ACCOUNTS 101-3162 AND 101-3161 AS RECOMMENDED BY THE GOVERNOR.
SENATOR RHOADS SECONDED THE MOTION.
THE MOTION PASSED UNANIMOUSLY.
*****
HR, MHDS Administration – Budget Page MHDS-1 (Volume 2)
Budget Account 101-3168
Mr. Chapman indicated that the budget he was discussing was on page 13. He said the subcommittee concurs with the Governor’s recommendation for a new management analyst IV position. The responsibilities of the position are to oversee the development, implementation, and adherence to the division’s policies covering privacy and access to client information in conformance with the Health Insurance Portability and Accountability Act of 1996 (HIPAA). It also voted to restore funding of $143,969 per year for the psychiatric residency program at the University of Nevada, Reno (UNR) recommended for elimination by the Governor. He told Senator Raggio that this position was one of the eight originally recommended by the Department of Human Resources, now cut to four positions, of which the subject position ranked second in priority. Further, Mr. Chapman said the subcommittee also concurs with the Governor’s recommendation to transfer one 0.75 licensed psychologist position to Lakes Crossing Center to continue to provide evaluation and treatment services to clients under the review of the Department of Corrections sex offender panel.
SENATOR RAWSON MOVED TO APPROVE THE JOINT SUBCOMMITTEE RECOMMENDATION FOR BUDGET ACCOUNT 101-3168
SENATOR RHOADS SECONDED THE MOTION.
THE MOTION PASSED UNANIMOUSLY.
*****
HR, Northern NV Adult Mental Health – Budget Page MHDS-7 (Volume 2)
Budget Account 101-3162
The budget, shown on page 16, was discussed next by Mr. Chapman, who indicated that the subcommittee concurred with the Governor’s recommendations as presented on page 3.
SENATOR RAWSON MADE A MOTION TO APPROVE BUDGET ACCOUNT 101-3162, INCLUDING A LETTER OF INTENT BE ISSUED DIRECTING NNAMHS TO INCORPORATE PERFORMANCE INDICATORS FOR THE MENTAL HEALTH COURT PROGRAM INTO THE EXECUTIVE BUDGET IN FUTURE BIENNIA.
SENATOR RHOADS SECONDED THE MOTION.
THE MOTION PASSED. (SENATOR TIFFANY VOTED NO.)
*****
HR, Facility for the Mental Offender – Budget Page MHDS-18 (Volume 2)
Budget Account 101-3645
Mr. Chapman stated that the subcommittee concurs with the Governor’s recommendation to increase the 0.75 licensed psychologist position transferred from the administration account to a full-time position. The subcommittee also concurs with the Governor’s recommendation to eliminate five positions providing mental health services to the Clark County Detention Center and the Las Vegas City jails. Mental health services for the facilities are provided through the University and Community College System of Nevada (UCCSN) medical school.
SENATOR RAWSON MADE A MOTION TO APPROVE BUDGET ACCOUNT 101-3645 AS RECOMMENDED BY THE GOVERNOR.
SENATOR RHOADS SECONDED THE MOTION.
THE MOTION PASSED UNANIMOUSLY.
*****
HR, Rural Clinics – Budget Page MHDS-25 (Volume 2)
Budget Account 101-3648
The rural clinics budget discussion was presented by Mr. Chapman. He referred the committee to page 23. He stated that the subcommittee concurred with the Governor’s recommendation for funding caseload increases in the medication clinics, outpatient services, psychosocial rehabilitation, and community residential placements. Mr. Chapman indicated that approval is recommended for 18.29 full-time equivalency (FTE) positions, including 12.52 FTE clinical positions, to support the caseload increases. Approval to add 1.27 FTE positions to provide services to individuals on waiting lists in clinics statewide is also recommended. Increased service and travel hourly rates paid to contract psychiatrists were approved for additional funding. The last item covered under this budget by Mr. Chapman was the recommendation of a Letter of Intent to direct rural clinics to review the methodology in developing budgetary revenue estimates.
SENATOR RAWSON MADE A MOTION TO APPROVE BUDGET ACCOUNT 101-3648 AS RECOMMENDED BY THE SUBCOMMITTEE AND INCLUDING THE LETTER OF INTENT.
SENATOR RHOADS SECONDED THE MOTION.
THE MOTION PASSED. (SENATOR TIFFANY VOTED NO.)
*****
HR, Southern Nevada Adult Mental Health Services – Budget Page MHDS-34 (Volume 2) Budget Account 101-3161
The discussion of budget account 101-3161 by Mr. Chapman appears on page 5. Mr. Chapman referred the committee to page 27 for details of the budget and indicated that the subcommittee concurs with the Governor’s recommendations for that budget.
SENATOR RAWSON MADE A MOTION TO APPROVE BUDGET ACCOUNT 101-3161 AS RECOMMENDED BY THE GOVERNOR.
THE MOTION WAS SECONDED BY SENATOR COFFIN.
THE MOTION CARRIED. (SENATOR TIFFANY VOTED NO.)
*****
HR, Mental Health Information System – Budget Page MHDS 78 (Volume 2)
Budget Account 101-3164
Mr. Chapman stated the subcommittee concurs with the Governor’s recommendation to include funding of $17,844 in the 2003-2005 biennium for overtime for information systems staff during the conversion from the Advanced Information Management System (AIMS) client information and billing system to the Avatar system. The Joint Subcommittee on General Government approved the conversion project in the Department of Administration’s information technology projects account on May 8, 2003. The subcommittee recommends issuing a Letter of Intent directing the division to provide quarterly reports, including project cost information, to the Interim Finance Committee during the 2003-2005 biennium. He told the committee that the budget details could be found on page 31.
SENATOR RAWSON MADE A MOTION TO APPROVE BUDGET ACCOUNT 101-3164 AS RECOMMENDED BY THE SUBCOMMITTEE AND WITH INCLUSION OF A LETTER OF INTENT AS DESCRIBED BY STAFF.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION PASSED UNANIMOUSLY.
*****
Mr. Chapman indicated that the next group of accounts would deal with the developmental services agencies. Similar to mental health, the subcommittee heard and reviewed the accounts on a consolidated basis regarding caseloads and waiting lists. Senator Raggio asked whether the three budgets would be included together in the discussion, and Mr. Chapman listed the three accounts that would be covered.
HR, Sierra Regional Center – Budget Page 51 (Volume 2)
Budget Account 101-3280
HR, Desert Regional Center – Budget Page 59 (Volume 2)
Budget Account 101-3279
HR, Rural Regional Center – Budget Page 70 (Volume II)
Budget Account 101-3167
He stated the subcommittee approved the Governor’s recommendation for increased funding to serve caseload increases and waiting list clients at Sierra Regional Center and Rural Regional Center. However, the increased funding for caseload increases and waiting list clients at Desert Regional Center were approved by the subcommittee at less than the Governor recommended. An additional 26.54 FTE positions for the three regional centers were approved as well.
Mr. Chapman noted that the subcommittee concurs with the Governor’s recommendation to reduce 12 beds each at the Desert and Sierra Regional Centers as a continuation of the 3 percent budget reductions. A budget office amendment reducing an additional 10 beds at Desert Regional Center was also approved by the subcommittee. The last item Mr. Chapman discussed was the subcommittee’s concurrence with the Governor’s recommendation to return 14 individuals at out-of-state institutions back to Nevada. Mr. Chapman instructed that his presentation was fully outlined in pages 6, 7, and 8. In addition, budget details regarding budget accounts 101-3280, 101-3279 and 101-3167 are on pages 38, 40, and 44, respectively.
SENATOR RAWSON MADE A MOTION TO APPROVE BUDGET ACCOUNTS 101-3280, 101-3279 and 101-3167 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR RHOADS SECONDED THE MOTION.
THE MOTION PASSED. (SENATOR TIFFANY VOTED NO.)
*****
HR, Family Preservation Program – Budget Page MHDS-67 (Volume 2)
Budget Account 101-3166
The last budget account Mr. Chapman discussed appears on page 46. He explained that the Family Preservation Program provides monthly assistance to low-income families who provide care in their homes to relatives with severe mental retardation or children under 6 with developmental delays. He stated that the subcommittee concurs with the Governor’s recommendation to restore the monthly payment of $310 per month, as approved by the 2001 Legislature, for 234 families currently served in the program. The subcommittee also agreed with the Governor’s recommendation to provide the $310 per month payment to an additional 34 families in FY 2003-2004 and 56 more families in FY 2004‑2005.
SENATOR RAWSON MADE A MOTION TO APPROVE BUDGET ACCOUNT 101-3166 AS RECOMMENDED BY THE SUBCOMMITTEE.
THE MOTION WAS SECONDED BY SENATOR COFFIN.
THE MOTION PASSED. (SENATOR TIFFANY VOTED NO.)
*****
Public Utilities Commission – Budget Page PUC-1 (Volume 1)
Budget Account 224-3920
Mr. Chapman reported that the Joint Subcommittee on General Government closed the budget account on April 16, 2003. He said the subcommittee concurs with the Governor’s recommendation to add a new unclassified hearings officer position contingent upon the current Legislature repealing Section 28 of A.B. No. 661 of the 71st Session. The bill expands the Public Utilities Commission (PUC) from three to five commissioners effective October 1, 2003. A Letter of Intent was recommended to direct the PUC to submit the appropriate work program changes to the Interim Finance Committee (IFC) increasing the PUC from three to five members should the 2003 Legislature not repeal Section 28 of A.B. No. 661 of the 71st Session. The subcommittee also recommends including in the Letter of Intent that, should the PUC expand to five members, the work program changes include eliminating the funding for the hearings officer position. The subcommittee recommends the position be included in the unclassified pay bill, and the recommended salary of $89,092 be forwarded to the unclassified salary committee of senate finance and assembly ways and means committees for consideration.
Mr. Chapman stated that the subcommittee also approved the PUC’s and budget office amendment to reduce the mill assessment from 2.50 mills as recommended in the Executive Budget to 2.25 mills. In addition, approval was given for an amendment requested by the PUC and the budget office to change the title of an unclassified supervising administrative attorney to that of an administrative attorney. The subcommittee recommends forwarding the unclassified salary adjustments and title changes for three positions to the unclassified salary subcommittee of senate finance and assembly ways and means. Finally, Mr. Chapman reported, the subcommittee closed the remainder of the PUC’s budget as recommended by the Governor, with technical adjustments proposed by staff. Mr. Chapman stated that details of the discussion and budget can be found in Exhibit D.
Senator Raggio asked whether the motion included the salaries for the unclassified positions, and Mr. Chapman explained they would be considered outside of the motion. Senator Rawson wanted verification that there was no General Fund money in the budget under discussion. Mr. Chapman stated there was no General Fund money in the account because it was primarily driven by mill assessments revenues with some federal funding supporting rail safety and the gas pipeline safety programs.
SENATE BILL 102 (1st Reprint): Revises provisions relating to the Public Utilities Commission of Nevada. (BDR 58-968)
Senator Raggio asked whether S.B. 102 (1st Reprint), had been approved, allowing the PUC’s commission to remain with three members, and Mr. Chapman said the bill was in the Assembly. It has not been heard since May 2, 2003, and if the bill is not processed or approved, and no other action is taken, the commission will increase to five members and the agency must come to IFC with work program changes.
SENATOR TIFFANY MADE A MOTION TO APPROVE BUDGET ACCOUNT 224-3920 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR RHOADS SECONDED THE MOTION.
THE MOTION PASSED UNANIMOUSLY.
*****
Jim Rodriguez, Fiscal Analyst, Fiscal Analysis Division, Legislative Counsel Bureau made the next budget presentation, in the record as “Joint Subcommittee on General Government Closing Report,” (Exhibit E. Original is on file in the Research Library.). It consists of both his discussion with the committee and details of the budgets for the Department of Employment, Training and Rehabilitation as outlined in the Joint Subcommittee on General Government’s closing report. In reviewing the report, Mr. Rodriguez noted the closing actions resulted in an overall General Fund savings of $32,967 in FY 2003-2004 and $264,398 in FY 2004-2005 when compared to the Governor’s budget.
DETR, Administration – Budget Page DETR-1 (Volume 2)
Budget Account 101-3272
According to Mr. Rodriguez, the subcommittee recommended funding for a Maintenance Repair Worker III position to address facility maintenance needs at the state’s administration building. It also recommended to change the employment status of the department’s two assistant directors from classified to unclassified. Approval of funding would be contingent upon actions taken by the Legislature on the unclassified pay bill. Mr. Rodriguez indicated page 10 sets out details of the budget in full.
SENATOR TIFFANY MOVED FOR APPROVAL OF BUDGET ACCOUNT 101-3272, AS RECOMMENDED BY THE SUBCOMMITTEE AND NOT TO INCLUDE THE UNCLASSIFIED POSITIONS.
SENATOR RHOADS SECONDED THE MOTION.
THE MOTION PASSED UNANIMOUSLY.
*****
DETR, Information Development and Processing – Budget Page DETR-7 (Volume 2) Budget Account 101-3274
Mr. Rodriguez referred to page 13, reporting that the subcommittee recommended funding of $406,106 in the first year of the biennium and $512,653 in FY 2005 for eight new programmers, three data network support technicians, and the upgrade of a half-time programmer to full-time programmer. The subcommittee also recommended funding of $69,845 in each year of the biennium for additional training and $31,252 in each year of the biennium for standby pay to provide technical support coverage 24 hours, 7 days a week for the department’s critical information technology and computing services.
SENATOR TIFFANY MOVED TO APPROVE BUDGET ACCOUNT 101‑3274 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR RHOADS SECONDED THE MOTION.
THE MOTION PASSED UNANIMOUSLY.
*****
DETR, Research & Analysis – Budget Page DETR-12 (Volume 2)
Budget Account 101-3273
Mr. Rodriguez stated there were no new major programs or enhancements recommended by the Governor for the biennium in this budget. The subcommittee recommended funding for the research and analysis budget as recommended by the Governor with technical adjustments made by staff. The details of the budget are located on page 17 of the subcommittee’s closing packet.
SENATOR TIFFANY MOVED TO APPROVE AND CLOSE BUDGET ACCOUNT 101-3273 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION PASSED UNANIMOUSLY.
*****
DETR, Employment Security – Budget Page DETR-18 (Volume 2)
Budget Account 205-4770
For the Employment Security Division, Mr. Rodriguez reported the subcommittee concurred with the Governor’s recommendation for $1.2 million in each year of the biennium to allow the department to hire up to 30 intermittent positions to address short-term increases in workloads that are beyond the division’s ability to address with existing permanent full-time staff. Mr. Rodriguez said the subcommittee also recommended approximately $1.8 million over the biennium from the Employment Security Division Special Fund for replacement equipment, computers, and software. He added that the budget details are found on page 19 of the committee’s closing document.
Senator Raggio asked whether the funding for this budget was primarily federal funding, and Mr. Rodriguez replied that it was nearly all federal funding.
SENATOR TIFFANY MOVED FOR APPROVAL AND TO CLOSE BUDGET ACCOUNT 205-4770 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR RHOADS SECONDED THE MOTION.
THE MOTION PASSED UNANIMOUSLY.
*****
DETR, Career Enhancement Program – Budget Page DETR-27 (Volume 2)
Budget Account 205-4767
The Career Enhancement Program (CEP) budget was closed as recommended by the Governor. Contingent upon passage of S.B. 423, the subcommittee also recommended funding to expand job training services to Nevada’s incumbent workers. Mr. Rodriguez explained by statute, the CEP Program can only provide job training services to unemployed Nevadans. S.B. 423 expands the scope of the CEP to include workers who are not unemployed but are looking for career enhancement training or advancement opportunities.
Senator Raggio asked where the funding comes from for this account, and Mr. Rodriguez stated that it comes from a 0.5 percent tax on employer’s payroll.
SENATOR TIFFANY MOVED TO APPROVE AND CLOSE BUDGET ACCOUNT 205-4767 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR RHOADS SECONDED THE MOTION.
THE MOTION PASSED UNANIMOUSLY.
*****
DETR, Employment Security – Special Fund – Budget Page DETR-33 (Volume 2)
Budget Account 235-4771
According to Mr. Rodriguez, budget details for this account can be found on page 25 of the committee’s closing document. He said that the subcommittee noted the department is facing federal funding reductions in state FY 2004 and an additional proposed federal fund reduction of $2.6 million in state FY 2005. Therefore, the subcommittee recommended funding from the Employment Security Division (ESD) special fund, which is derived from interest and forfeitures collected from employers for nonpayment or late payment of unemployment taxes. Those revenues would be used to fund a portion of operating and equipment expenses for the ESD and Information Development Processing budgets. However, Mr. Rodriguez noted that approval for use of this funding is provided as contingency funding with assurance from the department that if the federal funding shortfall does not materialize, or is not as significant as anticipated, funds would remain in reserve until qualifying federal funds are first utilized. With this understanding, Mr. Rodriguez told the committee, the subcommittee recommended the use of penalty and interest (P&I) funds for the following ESD expenditures: $592,784 over the biennium to fund ESD’s share of the 8.5 programmer and network positions recommended in DETR’s Information Development and Processing Bureau (ID&P) and to purchase ID&P replacement computing equipment and software, and $1.5 million for the purchase of computing equipment and software for the ESD.
It was noted by Mr. Rodriguez that the subcommittee concurred with the Governor’s recommendation to provide approximately $1.4 million in each year of the biennium in P&I funding for the rewrite of the department’s unemployment insurance tax system. The subcommittee also recommended the use of $15 million in federal Reed Act funds for the design and construction of the department’s new administration building in Las Vegas as approved by the Public Works Board. He closed his discussion of the budget account by stating that no other significant issues were identified in the ESD budget.
Senator Raggio asked Mr. Rodriguez the status of the building that was approved in 2002. According to Mr. Rodriguez, the funding for the project was going to utilize $2 million from this fund plus proceeds from the sale of property and Reed Act funds. Since then the department received authorization for $15 million in Reed Act funds that can be used in total for the construction of the new building. He stated that would completely fund the project and the original allocation from this fund can be reverted to fund the building.
SENATOR TIFFANY MOVED TO APPROVE AND CLOSE BUDGET ACCOUNT 235-4771 AS RECOMMENDED BY THE SUBCOMMITTEE..
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION PASSED UNANIMOUSLY.
*****
DETR, Rehabilitation Administration – Budget Page DETR-38 (Volume 2)
Budget Account 101-3268
It was stated by Mr. Rodriguez that the subcommittee recommended closing DETR’s rehabilitation administration budget as recommended by the Governor with technical adjustments. He said the subcommittee also recommended the transfer of an administrative assistant IV position from this budget account to the Bureau of Vocational Rehabilitation Budget Account 101-3265 to support the bureau’s newly-established quality assurance unit.
SENATOR TIFFANY MOVED TO APPROVE AND CLOSE BUDGET ACCOUNT 101-3268.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION PASSED UNANIMOUSLY.
*****
DETR, Vocational Rehabilitation – Budget Page DETR-49 (Volume 2)
Budget Account 101-3265
Mr. Rodriguez said that budget details were provided on page 32 of the committee’s closing document. In further presentation to the committee, he said the subcommittee did not recommend approval of the request for 20 new positions, because, though approved by the Social Security Administration (SSA), the funding was not made available to the department. The subcommittee directed the department to resubmit a request for the 20 new positions to the IFC when that funding becomes available. The subcommittee approved the recommendation to continue the paperless process pilot program, and approved the federal Social Security Administration (SSA) funding in the amount of $40,000 each year of the biennium for upgrades to the system’s equipment software.
Senator Raggio discussed a portion of the budget details found on page 33. He read the following to Mr. Rodriguez and asked for an explanation:
According to the department, 1800 cases had to be passed on to federal disability units outside the state of Nevada for processing in FY 2000-2001 because the Bureau of Disability Adjudication did not have sufficient resources to complete the job. The department has provided caseload projections that indicate workloads may exceed 29,000 in FY 2003-2004 and 32,000 by FY 2004-2005.
Mr. Rodriguez confirmed the information and stated it was the current projection. He said the department receives cases not only for Nevada, but cases from out-of-state. When the cases overflow and cannot be handled, they are sent to the federal office. Senator Raggio stated that he frequently received letters discussing timeframe and that issue was indicated in the budget details on page 33. He said in 2001 it took over 104 days to adjudicate a disability claim. He asked what the subcommittee had decided on the 10 positions that appeared not to be filled. Mr. Rodriguez explained that though the 10 positions were approved, the SSA had not provided the funding. He further noted that without the funding, they would not be able to fill the positions. When Senator Raggio inquired of the likelihood that the funding would be made available, Mr. Rodriguez responded that authority had not yet been received for the first 10 positions. When the 20 positions are received, IFC will be requested to give authority.
SENATOR TIFFANY MOVED FOR APPROVAL AND TO CLOSE BUDGET ACCOUNT 101-3269 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION PASSED UNANIMOUSLY.
*****
DETR, Vocational Rehabilitation – Budget Page DETR-49 (Volume 2)
Budget Account 101-3265
In the discussion of the vocational rehabilitation budget, Mr. Rodriguez referred the committee to page 35 of the committee’s closing document. Based on concerns of the bureau’s past inability to utilize federal funds and a question of whether the bureau would be able to fully utilize additional federal funding, the subcommittee reduced the General Funds in decision units E-451, E-452 and E‑453. The subcommittee recommended a change in employment classification of the bureau’s chief from unclassified to classified. Mr. Rodriguez explained that the bureau had four chiefs, and this would provide equity for all four of the positions. The subcommittee also recommended the transfer of an Administrative Assistant IV position referenced earlier.
SENATOR RHOADS MOVED TO CLOSE BUDGET ACCOUNT 101-3265 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR TIFFANY SECONDED THE MOTION.
THE MOTION PASSED UNANIMOUSLY.
*****
DETR, Office of Disability Employment Policy – Budget Page DETR-58 (Volume 2) Budget Account 101-3156
Mr. Rodriguez presented his discussion of budget account 101-3156 on page 6 of the subcommittee’s closing document and stated the budget details were located on page 40. He said the subcommittee recommended transferring the functions and existing staff of the Governor’s Committee on Employment of People with Disabilities from the Department of Business & Industry to DETR. The agency’s title would change to the Office of Disability Employment Policy. The transfer would result in a reduction of General Fund support in the budget account.
SENATOR RHOADS MOVED TO APPROVE AND CLOSE BUDGET ACCOUNT 101-3156 AS RECOMMENDED BY THE GOVERNOR.
SENATOR TIFFANY SECONDED THE MOTION.
THE MOTION PASSED UNANIMOUSLY.
*****
DETR, Client Assistance Program – Budget Page DETR-63 (Volume 2)
Budget Account 101-3258
Mr. Rodriguez stated that there were no new programs or enhancements recommended by the Governor for this budget. The subcommittee recommended the client assistance program budget be closed as recommended by the Governor.
SENATOR TIFFANY MOVED TO CLOSE BUDGET ACCOUNT 101-3258 AS RECOMMENDED BY THE GOVERNOR.
SENATOR RHOADS SECONDED THE MOTION.
THE MOTION PASSED UNANIMOUSLY.
*****
DETR, Services to the Blind & Visually Impaired – Budget Page DETR-67 (Volume 2) Budget Account 101-3254
Mr. Rodriguez reported that the subcommittee recommended that the budget for the Bureau of Services to the Blind and Visually Impaired (BSBVI) be closed as recommended by the Governor with minor technical adjustments. He read the report on pages 6 and 7, and gave budget details from page 44.
SENATOR TIFFANY MOVED TO APPROVE AND CLOSE BUDGET ACCOUNT 101‑3254 AS RECOMMENDED BY THE GOVERNOR WITH TECHNICAL ADJUSTMENTS.
SENATOR RHOADS SECONDED THE MOTION.
THE MOTION PASSED UNANIMOUSLY.
*****
DETR, Blind Business Enterprise Program – Budget Page DETR-75 (Volume 2)
Budget Account 101-3253
Mr. Rodriguez noted that details of the budget are on page 47 of the committee’s closing document. He said the subcommittee recommended the funding of $744,525 in FY 2003-2004 and $732,550 in FY 2004-2005 for the expansion of the department’s Blind Business Enterprise Program (BBEP), but did not recommend the associated expenditure authority. The subcommittee received testimony from the blind vendors that indicated the department’s budget submittal and program expansion plan did not adequately take into account or consider the input from the Nevada Committee of Blind Vendors (NCBV) as required by the Randolph-Sheppard Act. The subcommittee directed the department to reevaluate the proposed program expansion plan and to seek input from the NCBV as well as input from the blind vendors themselves on the feasibility and acceptability of the plan. Mr. Rodriguez indicated the subcommittee directed the department to submit its revised BBEP expansion plan to the IFC for approval and authorization to expend funds. Senator Raggio asked whether that action was required by the Randolph-Sheppard Act, and Mr. Rodriguez stated that the Randolph-Sheppard Act requires the department to have a committee and consult with it. Senator Raggio asked what was to be closed in the budget, and Mr. Rodriguez explained that the subcommittee was authorizing funding to be in place, but not the expenditures. The expenditures would be authorized by IFC when the plan is revised and after it has received input from the blind vendors and the NCBV.
Further, Mr. Rodriguez indicated a Letter of Intent was recommended to encourage the bureau to be more proactive in adhering to directives set forth in NAC 426.080 to 426-500 (administrative code governing the administration of the BBEP and establishment of the NCBV) and to seek input from the blind vendors and the NCBV in developing recommendations for the BBEP 2005-2007 biennial budget. The Letter of Intent also encourages the bureau to seek input from the NCBV on all major proposed BBEP program modifications and enhancements during the 2003-2005 interim.
SENATOR TIFFANY MOVED TO APPROVE CLOSE BUDGET ACCOUNT 101‑3253 AS RECOMMENDED BY THE SUBCOMMITTEE WITH LETTERS OF INTENT TO BE ISSUED THAT AND THE REVISED EXPANSION PLAN WILL BE SUBMITTED TO THE INTERIM FINANCE COMMITTEE.
SENATOR RHOADS SECONDED THE MOTION.
THE MOTION PASSED UNANIMOUSLY.
*****
DETR, Equal Rights Commission – Budget Page DETR-80 (Volume 2)
Budget Account 101-2580
Mr. Rodriguez noted details for this budget could be found on page 50 of the exhibit. He reported that the subcommittee recommended closing the budget as proposed by the Governor with minor technical adjustments by staff. He stated the recommendation includes funding for two additional compliance investigators as well as providing funding and resources to allow the department to increase and improve services for Nevada’s unemployed and disabled community. Mr. Rodriguez concluded his budget presentation.
Senator Mathews disclosed that her daughter sits on the Equal Rights Commission. She stated that it would not affect her interests.
SENATOR RHOADS MOVED TO APPROVE AND CLOSE BUDGET ACCOUNT 101-2580 AS RECOMMENDED BY THE SUBCOMMITTEE AND WITH TECHNICAL ADJUSTMENTS.
SENATOR TIFFANY SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Senator Raggio announced that Closing List #11 (Exhibit F. Original is on file in the Research Library.) would be the next item to be discussed.
Transportation Administration – Budget Page NDOT-1 (Volume 3)
Budget Account 201-4660
Mr. Rodriguez indicated that page 10 of the committee’s closing document contains the details of budget account 201-4660. As yet the budget had not been heard in subcommittee. He indicated there were four budget issues identified by staff that would required the committee’s consideration. Item 1 is the recommendation for bond sales of $135 million in the first year of the biennium and $190 million in the second year to fund highway projects. Mr. Rodriguez said the projects were U.S. 95, I-15, widening of I-15 between Stateline and Las Vegas, the Carson City bypass, the Reno-Carson freeway, and the I-215-515 interchange in Las Vegas. He reported that in order to get the projects underway and completed, the department’s current level of funds would not support the revenue needed to initiate these projects, and therefore, the bonds were necessary. The initial bond issue was completed in September 2000 with the IFC’s approval in the amount of $100 million, and it funded the U.S. 95 and I-580 interchange. Mr. Rodriguez stated there will be a total of $657.6 million in highway bonds sold by the end of FY 2007. Without the sale of bonds, the department would not be able to fund these projects.
Item 2 is the addition of 42 new positions for the department. Mr. Rodriguez said a table on page 10 outlines the 42 positions, of which 18 would be in Las Vegas, 17 in Carson City, and 7 in Reno. In total, there would be 16 engineering or technical support positions, 23 maintenance positions, and 3 administrative positions.
Item 3 increases funding for additional highway projects of $81.1 million in FY 2004 and $89.8 million in FY 2005. Mr. Rodriquez informed the committee that the funding requested in E-175 and E-850 totaled $433.4 million in the first year of the biennium and $389 million in the second year for construction projects. This funding, if approved, would represent an increase in construction activity of 104 percent in 2004 and as much as 130 percent in FY 2005 when compared to the actual expenditures experienced in FY 2002.
Item 4, Special Projects, decision unit E-851, consists of three high-priority special projects for the department over the 2003-2005 biennium. Details for the projects, as well as the remaining issues in item 4 are outlined on page 12 of the committee’s closing document. Decision unit E-851 also recommends funding of $376,000 in FY 2003-2004 and $315,000 in FY 2004-2005 for a DoIT Master Services Agreement (MSA) Project Manager to manage the development and implementation of the project. After a review of the plan and type of services to be provided by the MSA contractor, Mr. Rodriguez indicated the cost of a contractor would be three times that of a full-time State-employed project manager for the project. The State-employed project manager would garner a salary of approximately $101,000 per year. Senator Raggio asked whether an individual could be found for the position and whether the position would continue on after completion of the project.
Jerry Ross, Chief of Financial Management, Nevada Department of Transportation, stated that while the cost of the project manager was disproportionate to the overall cost of the project, it was a concern that a State or NDOT employee who would only be on the project for a 2-year period would create a problem. It appeared to Mr. Ross that it might be difficult to locate an employee who would be willing to stay for only 2 years. The other consideration would be that a qualified person would be available for hire, especially for such a limited time.
Senator Coffin stated that he remembered NDOT made a commitment to put project managers near the job and asked Mr. Ross to verify that his recollection was accurate. Mr. Ross stated it was correct; however, he further stated a project manager is actually involved in the design of a project from beginning to end, working with consultants to build the system itself. He explained that this project manager is strictly involved in the design and implementation of a soft‑ware program that would be obtained from other states. It would be a program that is already written, but must be adapted to Nevada.
Senator Coffin asked Mr. Rodriguez whether the statements made by Mr. Ross were consistent with the testimony heard previously from NDOT, and Mr. Rodriguez verified that Mr. Ross was correct.
Mr. Rodriguez continued with his discussion of item 5. Decision module E-735 recommends Highway Funds of $1.4 million in FY 2003-2004 and $601,740 in FY 2004-2005 for operating expenses associated with the operations and maintenance of the department’s two aircraft. In addition, the department has requested Highway Funds in the amount of $52,650 in each year of the biennium to cover the increased cost of jet fuel.
ASSEMBLY BILL 519: Revises provisions relating to awarding of design-build contracts by Department of Transportation. (BDR 35-542)
Mr. Rodriguez said item 6 concerns the submission of A.B. 519 for consideration by the Legislature, and he explained that an amendment to the bill proposes to add an assistant director of NDOT that would be assigned to Las Vegas.
The projected cost would be $165,439 in FY 2003-2004 and $137,236 in FY 2004-2005. These costs are not reflected in the Executive Budget. Mr. Rodriguez also presented a number of “other closing items,” including decision unit M-630, funding for the operating expenses of the Nevada Bicycle Advisory Board; decision unit E-710, funding to purchase replacement equipment and vehicles for the department’s mobile fleet; decision unit E-720, funding to purchase new equipment and vehicle; and decision unit E-730, Highway Funds for various building and maintenance projects throughout the state. He stated that staff recommends the approval of all of these decision units with one technical adjustment of decision unit E-720 to reflect the elimination of a street sweeper.
Senator Raggio reviewed the items, asking the committee for any questions they might have on any of the items. There were no objections on any of the items, including the closing items.
Mr. Rodriguez brought up another item on the budget. It dealt with NDOT’s building in Las Vegas that was not included in the closing list. He explained the building would be ready for occupation by highway patrol in October of 2004, and the department and the Nevada Highway Patrol have agreed that the highway patrol would pay NDOT $374,400 per year rent. It is not currently in NDOT’s budget, but LCB staff is building it into the DMV budget.
SENATOR COFFIN MOVED FOR APPROVAL ON ALL OF THE ITEMS AS INDICATED FOR BUDGET ACCOUNT 201-4660, INCLUDING CONTRACTING FOR THE PROJECT MANAGER FOR THE SPECIAL PROJECT AS RECOMMENDED BY STAFF.
SENATOR RAWSON SECONDED THE MOTION.
THE MOTION PASSED UNANIMOUSLY.
*****
DMV, Field Services – Budget Page DMV-29 (Volume 3)
Budget Account 201-4735
Mark Krmpotic, Senior Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau referred to Exhibit F, Closing List #11, page 3. He indicated there were two items to be considered with respect to the Field Services Account. The first, according to Mr. Krmpotic, deals with the addition of positions for field services of the field offices in the major metropolitan offices in Las Vegas and Reno. The Executive Budget originally 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. The Budget Office has submitted Amendment No. 122 to reduce funding by $625,000 the first year of the biennium and $1.1 million in the second year for a reduction in the number of positions recommended from 179 to 154. Staff reduced the module further by $250,000 the first year and $340,000 the second year for a reduction in positions from 154 to 147. Mr. Krmpotic requested the committee review the bulleted items on page 4, summarized as removal of 24 hours of customer service training from the relief factor resulting in a reduction of 7 positions, elimination of 11 positions for Saturday operations at the Carson City office, consideration of a reduction in overtime of $283,580 each year, representing overtime spent to conduct transactions after 5 p.m. in Reno and Las Vegas offices, if increase in staffing is approved, and placing funding for the positions in the Reno office in reserve for a return to IFC, if necessary.
Mr. Krmpotic noted that staff indicated the subject of the 22 percent cap underwent considerable discussion in the subcommittee, found in the “Joint Subcommittee on Public Safety, Natural Resources and Transportation Closing Report”(Exhibit G. Original is on file in the Research Library.) Based on the subcommittee’s closing actions thus far and the technical adjustments recommended by staff, the department exceeds the 22 percent cap by approximately $600,000 in the first year and $3.2 million in the second year of the biennium. He said that the removal of ongoing customer training resulting in a reduction of seven positions, and the elimination of $300,000 in overtime expenses, would assist in keeping the department within the 22 percent cap. In keeping with the 22 percent cap, the Governor also recommended establishment of an $8.25 fee for dealer report of sale on new sales and third party sales of vehicles. The result would generate $3.2 million per year. In projecting the effect on the 22 percent cap, Mr. Krmpotic said staff prorated the first year, beginning October 1, to allow the agency time to implement the fee increase if approved by the Legislature.
The other outstanding item in the field services budget deals with the recommendation to continue the kiosk pilot project in FY 2004 at a total of $50,000 for expansion and continuing in FY 2005 for a total of $2 million. Mr. Krmpotic indicated that the agency wished to receive authority to spend the approved $2 million in both the first and second years. Staff recommends maintaining the $2 million appropriation to expand the pilot project in the second year of the biennium and to include language in the Appropriations Act to allow the department to transfer funding to FY 2004 if needed. If the committee approves this module, staff recommends the placement of funding recommended in each year in the director’s office budget account with the transfer of funding in FY 2005 to reserve, allowing the agency to return to IFC to request the use of funding and to report on the results of the kiosk pilot project.
Senator Raggio told the committee a decision should be made on increased staffing. Senator Tiffany indicated the subcommittee had considered the wait‑time, and although Senator Coffin said he wanted to add staff to decrease the wait-time, Senator Tiffany said she was in favor of reprogramming the public’s behavior and not in favor of adding staff. Rather, she indicated that she wished to accelerate the kiosk project so it could handle cash and credit card and have the capability to give the decals to encourage expansion of the kiosk facility. Senator Tiffany explained the use of the Web had been very low and she felt online use should be encouraged.
Virginia Lewis, Director, Department of Motor Vehicles, stated use of DMV registration on the internet is currently at 17 percent, which is very high. Senator Tiffany responded that, in her opinion, it was very low.
Senator Tiffany said no resolution was reached in the subcommittee, but she spoke with the Governor’s staff after the meeting. The Governor’s staff asked Senator Tiffany whether she would be in favor of cutting the new positions to 60, delaying the Carson City implementation, and putting the bulk of the positions in two DMV locations in the south. There was no agreement reached.
Mr. Krmpotic interjected that staff has made adjustments based on calculations that were revised for the formula used to calculate the increase in positions. He said the subcommittee approved the elimination of the 11 positions for Saturday operations in the Carson City office.
Senator Coffin said he was puzzled because he did not think a closing had been reached which would keep the budget below the cap. He stated that there had been no discussion of the work Senator Tiffany had done since they had finished in subcommittee. He said disputes in subcommittee had been resolved amicably, several had voted no, and he believes he ultimately supported the end-result budget. He stated that he and Senator Rhoads were confused when Mr. Krmpotic presented the array because it went out of order from the printed material. He said in order to get to the 22 percent cap, approximately $600,000 would have to be cut.
Mr. Ghiggeri stated the items being brought back to the full committee are items that were unresolved in the subcommittee closing. He indicated that the subcommittee took action on a number of items; however, they did not take action on the staffing nor the kiosk portion of the closing, and those are the two items he brought back for the committee’s consideration at this time.
Mr. Krmpotic explained the subcommittee had acted to eliminate the positions for the Carson City office. There were 147 positions that staff recommended based on adjustments to the formula as recommended by the Governor and staff. With the elimination of 11 positions from the Carson City office, there would be a total of 136 positions for field offices. He pointed out that would encompass the office in Reno and major offices in Las Vegas.
Senator Rawson stated he did not know where the resources should be focused, and he inquired of Ms. Lewis where that focus should be. Ms. Lewis suggested that the number of customers in Carson City and the actual wait-time could be monitored accurately with objective data over the next 2 years. Without that Q-Matic, the same data available in the metropolitan offices is not available for Carson City.
Ms. Lewis further indicated there are two critical offices in Las Vegas. One is the Sahara office, and the other is the Carey office. They do not achieve the less than 1-hour wait-time. The Flamingo office and the Henderson office, according to Ms. Lewis, are subject to the growth in the Las Vegas area, just as all the offices are. She stated her agency was trying to plan for the future growth that is not going to stop. The entire package prepared in the Executive Budget recognizes that the offices need to be maximized, but technology must be used to assist in addressing wait-time. Senator Rawson asked how much staff was recommended for the Sahara and Carey offices. Mr. Krmpotic stated the Carey office includes a total of 31 staff and the Sahara office includes 19 staff.
Mr. Ghiggeri said staff is not aware of the 60 staffing positions. The original request as recommended in the Executive Budget was 179 positions. It was reduced to 147. A number of positions were eliminated based on calculation fine-tuning that was done after the budget was submitted. Mr. Ghiggeri stated he believed Mr. Krmpotic was indicating that if 3 days of customer service training was eliminated on an annual basis, reduction of the number of positions by seven was possible. Finally, he stated that Mr. Krmpotic indicated the subcommittee voted to eliminate 11 positions. Taking 147 positions, the starting point once the corrections were made in the calculations, reduced by 7 for the elimination of customer service training, eliminating the 11 for Carson City, would drop it down to 129 positions. Senator Raggio reiterated the count and elimination of positions expressed by Mr. Ghiggeri and asked whether, by taking that action, the budget would fall within the 22 percent cap. Mr. Ghiggeri answered that if the proposed action were taken, along with the other actions in the closing, it would be possible to fall to approximately 21 percent in FY 2004 and approximately 21.7 percent in FY 2005.
Senator Raggio inquired when the implementation would begin. Mr. Krmpotic responded the implementation of new positions would begin office-by-office beginning in August of 2003, with the funding for the 31 Reno positions being put in reserve. He further responded that would cover the immediate need for the Sahara and Carey offices in Las Vegas.
Senator Raggio suggested a motion on this issue should authorize the increased staffing in the amount of 129, rather than 179, based upon the analysis just reviewed. He said that would delete the 11 positions from the Carson City office and the need for the 7 positions for customer service training. It would put into reserve the funding for the 31 Reno office positions. The department would then return to IFC for the use of that funding. That would also eliminate the overtime expense.
Senator Mathews asked if the 100 percent window staffing would be reduced if the number of positions were reduced to 129. Mr. Krmpotic said the reduction to 129 would still result in 100 percent window staffing at the major metropolitan offices. Senator Mathews inquired whether, by the formula used for break time at the windows, the 100 percent staffing would still apply, and Mr. Krmpotic assured her that the formula was designed to provide 100 percent window staffing when technicians were away from their windows for break time, lunch time, sick time, vacation time, and training time.
Senator Tiffany indicated she was not in favor of the increased positions because she believes the interaction between the customer and DMV needs to change. She believes a move toward more use of technology needs to be made instead of increasing the number of employees. She indicated she would vote against this budget.
Senator Cegavske asked what the General Fund money’s use would be in the budget, and Mr. Ghiggeri responded that it was used for voter registration. Senator Coffin addressed Senator Mathews’ concerns by adding that he too was concerned there would not be enough staff. Mr. Ghiggeri assured the committee that staff would not drop the number of positions needed just to make it fit within a budget. He explained it as a mechanical calculation using DMV’s formula, revising the budget submitted by the Governor, and making adjustments based on discoveries of some inconsistencies in the application of the formula.
Senator Coffin inquired what the wait-time would be in the general southern Nevada area over the next 2 years if staffing was implemented as discussed before the motion. Ms. Lewis responded that the formula would allow for 100 percent coverage for the windows to maximize the use of the offices. She indicated there are certain components that cannot be controlled, such as the number of customers coming to the offices at 5 p.m. or 7 a.m. She stated she cannot control the reasons or the times they come to the office. If those variables were known and could be controlled, a wait-time prediction could be made.
Senator Cegavske stated she did not have enough information and asked what would happen to the money if it were not used. Mr. Krmpotic responded that if the Legislature funded the money and it was not used to staff the positions, the funding would revert to the Highway Fund at the end of the year.
SENATOR RAWSON MOVED ON ITEM 1 TO INCREASE POSITIONS TO 129, DELETE 11 POSITIONS FROM THE CARSON CITY OFFICE, AND TO DELETE THE NEED FOR 7 POSITIONS REQUIRING CUSTOMER SERVICE TRAINING; AND TO PUT INTO RESERVE THE FUNDING FOR 31 POSITIONS ALLOCATED TO THE RENO OFFICE, WITH THE DEPARTMENT TO RETURN TO IFC FOR USE OF THAT FUNDING.
SENATOR RHOADS SECONDED THE MOTION.
THE MOTION PASSED. (SENATORS COFFIN, TIFFANY AND CEGAVSKE VOTED NO.)
Senator Raggio directed discussion to the portion of the budget dealing with the kiosk project expansion, item 2.
SENATOR RAWSON MOVED TO CLOSE ITEM 2 OF THE BUDGET WITH THE APPROPRIATION RECOMMENDED IN FY 2005 AND INCLUSION OF THE LANGUAGE IN THE APPROPRIATIONS ACT TO ALLOW THE DEPARTMENT TO TRANSFER FUNDING TO FY 2004 IF NEEDED; WITH PLACEMENT OF THE FUNDING EACH YEAR IN THE DIRECTOR’S OFFICE BUDGET ACCOUNT FOR THE TRANSFER OF FUNDING IN FY 2005 TO RESERVE.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION PASSED UNANIMOUSLY.
*****
Senator Tiffany said if there was a possibility of the kiosk pilot project expansion, then, instead of implementing all of the new positions, she would like to reserve the option at IFC to convert the positions into more kiosk capacity. Senator Raggio indicated that it was feasible.
SENATOR RAWSON MOVED TO APPROVE BUDGET ACCOUNT 201‑4735 WITH RECOMMENDATIONS AND WITH THE DETERMINATION MADE ON ITEM NUMBER ONE THAT STAFFING IS 129 POSITIONS AND THE KIOSK PILOT PROJECT EXPANSION IS FEASIBLE THROUGH IFC.
SENATOR RHOADS SECONDED THE MOTION.
THE MOTION PASSED UNANIMOUSLY.
*****
DMV, Motor Vehicle Pollution Control – Budget Page DMV-83 (Volume 3)
Budget Account 101-4722
Mr. Krmpotic indicated that page 7 includes details of his discussion on budget account 101-4722. He reported staff had recently learned that revenue projections in FY 2003 and recommended in each year of the 2003-2005 biennium are overstated by approximately $400,000 per year. This was the result of a revenue account error in FY 2002. He said the repayment of overstated revenue to the Motor Vehicle Fund and projections have been revised for FY 2003. These modifications reduced the beginning cash balance in FY 2004 from $2.2 million to $1.4 million. He said staff included revised revenue projections from the agency in each year of the 2003-2005 biennium with corresponding reductions in the one-fifth portion of the certificate revenue distributed to counties per NRS 445B.
Mr. Krmpotic stated several additional recommendations or modifications were made by staff. These include an increase in the transfer to the State Public Works Board for the Department of Agriculture’s petroleum laboratory in Reno; the elimination of the $800,000 set aside over the biennium for a projected DMV emissions laboratory in Las Vegas; and removal of increased revenues and corresponding distributions to Clark and Washoe Counties based on the failure of S.B. 419 to reach a constitutional majority. S.B. 419 called for a $2 increase on pollution control fee.
SENATE BILL 419: makes various changes to provisions governing Pollution Control Account administered by Department of Motor Vehicles. (BDR 40-1266)
He stated staff also made adjustments and distributions to the Division of Environmental Protection and the Department of Agricultural based on subcommittee closing actions approved for those agencies and adjustments to computer hardware and software modules E-500 and E-710. Based on the adjustments described by staff, the pollution control account is projected to have a negative reserve at the end of the biennium of approximately $300,000. He asked the committee to consider one of several options to close the pollution control account with a positive reserve balance at the end of the 2003-2005 biennium.
The options would include the approval of a $1 fee increase generating approximately $1.2 million in increased revenues each year and would result in a projected reserve at the end of the biennium of $2.1 million. If this option is approved, a change in the distribution of the counties from one-fifth to one-sixth of the fee for each certificate sold to maintain existing distribution levels should be considered.
Mr. Krmpotic described the second option as the elimination of the transfer of funding from the Department of Agriculture’s petroleum laboratory addition totaling $1.1 million, leading to an end-of-biennium reserve of $800,000. The committee could consider increased transfers of funding and fees to the Division of Environmental Protection Bureau of Air Quality totaling $1.3 million over the biennium to add 6 positions to address new federal rules mandated to the agency. Decision module E-500 could be removed from the pollution control account that would have added a compliance enforcement investigator position to expand the heavy-duty diesel enforcement program to Washoe County at a cost of $143,000. He asked the committee to note that the last item would not by itself result in a positive reserve at the end of the biennium if eliminated by the committee. He also noted that staff would request authority to revise cost-allocations paid to the director’s office administrative services account based on final approval of the budget accounts for DMV.
Senator Rawson asked the importance of the Agriculture Department’s petroleum laboratory if the transfer was eliminated.
John P. Comeaux, Director, Department of Administration, answered that he felt the Agriculture Department response would be that it was critical. He said they have been trying to find a way to finance the petroleum laboratory for years. He agreed it is critical. Senator Raggio indicated that another option would be to run another bill to see whether it passed. Senator Coffin asked the substance of the previous bill. Senator Rhoads answered that it called for a $2 increase in the pollution control fee. Senator Raggio inquired whether a $1 increase instead of a $2 increase would provide sufficient funding for the laboratory, to which Mr. Krmpotic answered that sufficient funding would be provided to fund the petroleum laboratory addition and the increased transfers to the Division of Environmental Protection. Senator Raggio asked whether it would reduce the amount of funds going to the counties. Mr. Krmpotic said those amounts would remain the same. Senator Rhoads said the option would only affect Clark and Washoe counties, therefore he recommended the addition of just $1. Senator Coffin asked whether that would put a two-thirds requirement on the rest of the bill and Mr. Krmpotic stated it would.
Senator Mathews asked why the additional money is needed when there is a large positive balance. Mr. Ghigerri answered that the balance forward in the Executive Budget was predicated upon the $2 fee increase which did not materialize.
SENATOR RAWSON MOVED TO REQUEST A BILL DRAFT ADDING A FEE INCREASE OF $1 TO ACCOMMODATE THE DEPARTMENT OF AGRICULTURE’S PETROLEUM LABORATORY ADDITION.
SENATOR RHOADS SECONDED THE MOTION.
THE MOTION PASSED UNANIMOUSLY.
* * * * *
Peace Officers Standards & Training Commission – Budget Page POST-5 (Volume 3) Budget Account 101-3774
Mr. Krmpotic reviewed page 15 by stating that the base budget for the Peace Officers Standards and Training (P.O.S.T.) Commission was reduced by 4 positions and operating expenses totaling approximately $460,000 each year of the biennium. He stated the expenses represented the cost to operate the basic training bureau, and the Executive Budget recommends the continuation of expenses related to the basic training bureau in decision unit E-125, funded by administrative court assessments. He said staff noted this decision unit anticipates an increase in the administrative court assessment based on A.B. 29, which provides for an increase in the administrative assessment of $10, 49 percent of which would be eligible for distribution to Executive Branch functions identified in NRS 176.
ASSEMBLY BILL 29 (1st Reprint): Makes various changes concerning administrative assessments and forfeiture of bail. (BDR 14-130)
He further stated that the Governor also recommends through decision module E-125, increases of $173,000 in the first year and $119,000 in the second year to provide for relocation of the training academy. The next item discussed by Mr. Krmpotic was the facility manager position addition. He said the staff was not convinced the duties to be performed would require a full-time position and a half-time position should be considered. Senator Raggio questioned the feasibility of finding an employee who would be willing to work half-time who would be qualified. Mr. Krmpotic added that a half-time or part‑time employee would be necessary and he believed one could be found.
Mr. Krmpotic said Module E-501 deals with record storage. The Governor recommends the addition of an administrative aide position and funding for contract services of $45,000 in FY 2004 to microfilm peace officer records presently maintained in paper form. The Executive Budget also includes funding to purchase a software program to track peace officer records. Other closing items mentioned by Mr. Krmpotic appear on page 16.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101-3774 AS RECOMMENDED BY STAFF WITH A RECOMMENDATION TO INCLUDE A HALF-TIME POSITION FOR THE FACILITIES ADMINISTRATIVE AIDE.
SENATOR RHOADS SECONDED THE MOTION.
THE MOTION PASSED UNANIMOUSLY.
*****
Senator Raggio adjourned the meeting at 6:46 p.m.
RESPECTFULLY SUBMITTED:
Julie Walker,
Committee Secretary
APPROVED BY:
Senator William J. Raggio, Chairman
DATE: