MINUTES OF THE
SENATE Committee on Finance
Seventy-second Session
May 14, 2003
The Senate Committee on Finance was called to order by Chairman William J. Raggio at 8:14 a.m. on Wednesday, May 14, 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 L. Ghiggeri, Senate Fiscal Analyst
Bob Guernsey, Principal Deputy Fiscal Analyst
Mark Krmpotic, Senior Program Analyst
Tracy Raxter, Program Analyst
Julie Brand, Program Analyst
Bob Atkinson, Program Analyst
Mindy Braun, Education Program Analyst
Judy Coolbaugh, Committee Secretary
OTHERS PRESENT:
John P. Comeaux, Director, Department of Administration
Virginia Lewis, Director, Department of Motor Vehicles
Dr. Ted D’Amico, Medical Director, Carson City, Department of Corrections
Douglas C. Thunder, Deputy Superintendent for Administration and Fiscal Services, Department of Education
Bill Hanlon, Lobbyist, Professional Development Program, Southern Nevada
Keith Rheault, Deputy Superintendent for Instructional, Research, and Evaluative Services, Department of Education
Senator Raggio:
A copy of “Senate Finance Closings, May 14, 2003” (Exhibit C) has been distributed to the committee. We are going to start with the closing of budgets in the Department of Motor Vehicles (DMV). A handout entitled “Senate Committee on Finance, Joint Subcommittee on Public Safety, Natural Resourcesand Transportation, Closing Report, Department of Motor Vehicles” (Exhibit D. Original is on file in the Research Library.) has been distributed to the committee.
DEPARTMENT OF MOTOR VEHICLES
Mark Krmpotic, Senior Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau:
The subcommittee did not support an increase in the cap from 22 percent to 29 percent, as recommended by the Governor. Nevada Revised Statutes (NRS) 408.235 states the department may not expend more than 22 percent of the fees collected for the Highway Fund on administration. The budgets for the department, as recommended by the Governor, exceed the 22 percent cap in each year of the biennium. The subcommittee has approved the following measures to maintain the department’s budgets to within 22 percent of fees and taxes collected for the Highway Fund.
The subcommittee approved the transfer of excess revenues over expenditures in Highway Fund reversions from the Record Search account to the Central Services and Automation accounts for a total amount of $5.7 million in fiscal year (FY) 2003-2004 and $6 million in FY 2004‑2005, with offsetting decreases in Highway Fund appropriations by the same amounts.
The subcommittee approved an increase in record search revenue of approximately $2.7 million in each year of the biennium, which represents a $2 increase in the record search fees, raising the fee from $5 to $7. The subcommittee approved a transfer of the $2.7 million in increased revenue to the Central Services and Automation account with offsetting decreases in Highway Fund appropriations in the same amount. The increase in fees by the DMV can be made administratively; it does not require statutory authority. The subcommittee approved the elimination of 11 positions from the Field Services account, and recommended to support Saturday services at the Carson City office.
Senator Raggio:
Does a combination of both adjustments keep expenditures within the 22 percent cap?
Mr. Krmpotic:
The department will still exceed the 22 percent cap by $216,750 in FY 2003‑2004 and $2.6 million in FY 2004-2005.
Senator Raggio:
What measures are necessary to get the DMV budget under the 22 percent cap?
Mr. Krmpotic:
The Governor has proposed a fee of $8.25 on each dealer report of sale for new and third party automobile sales, which would generate $2.4 million in FY 2003-2004 and $3.2 million in FY 2004-2005.
Senator Raggio:
Mr. Comeaux, is that the Governor’s recommendation?
John P. Comeaux, Director, Department of Administration:
Yes, it is.
Senator Raggio:
Where would the fee increase fit into these budgets?
Mr. Krmpotic:
If the committee were to consider the fee increase, staff would recommend the funds be placed in the Administrative Services budget account, (B/A) 210‑4745, with offsetting reductions in Highway Fund appropriations.
Senator Tiffany:
Other than using the increase of fees as the solution to the funding problem, can a reduction in the approved 129 new positions get the budget under the 22 percent cap?
Senator Raggio:
Were the 129 new full time employee (FTE) positions approved in the Field Services budget account?
Mr. Krmpotic:
Yes, that is correct. The committee approved 129 positions.
Senator Tiffany:
If we reduced the figure to only 60 new full-time employee (FTE) positions, would that be enough of a decrease to get the DMV budget account under the 22 percent cap?
Mr. Krmpotic:
The second year of the biennium is the problematic year with respect to the cap. If 60 positions were eliminated, it appears it would not get the budget under the cap in the second year.
Senator Tiffany:
If we go down to 60 new positions, and only assign them to the two busiest offices in Clark County, could we get the waiting time in those offices under the 1-hour maximum? It is not a removal of 60 existing FTE positions, but a reduction in the amount of newly approved positions. What effect would the reduction have in the second year of the biennium?
Mr. Krmpotic:
I estimate staffing the Reno, the Flamingo, and the Henderson DMV offices would take about $3.4 million.
Senator Tiffany:
The Henderson office was not the one mentioned. There were two offices in Clark County that were over the 1-hour waiting time maximum.
Mr. Krmpotic:
The offices were the Carey and Sahara DMV offices.
Senator Tiffany:
Yes, that is correct. If 30 new FTE positions were dedicated to window service in those offices to bring the waiting time down to the 1-hour maximum, what effect would that action have on getting under the cap in the second year of the biennium?
Mr. Krmpotic:
If the remaining positions were eliminated for the other offices, it appears it would bring the total funding under the 22 percent cap in the second year of the biennium.
Senator Tiffany:
I thought so, and I would like to extend this action as a possible solution instead of adopting fee increases.
Senator Coffin:
By assigning the new positions to the two offices indicated, you seem to be only shifting the problems in Clark County to some other office.
Senator Tiffany:
The suggestion was not to cut positions, but to not add the full amount of FTE positions recommended. There were only two offices identified as over the 1-hour waiting line time limit.
Senator Coffin:
In the subcommittee’s discussions, it was felt something had to be done to improve service. If you cut positions anywhere, service will be reduced, and waiting line time increased. We need the additional positions.
Senator Raggio:
The action in the subcommittee was to defer the Reno positions, and place the funds in the reserve.
Senator Tiffany:
Customers at the DMV have several options. They can call and make appointments, they can mail in renewals, they can get registrations at emission stations, and they can do renewals over the Internet. There will also be a kiosk to speed up service. There are lots of alternatives to waiting in line for window service, and we want to encourage the public to take advantage of the different methods available. The subcommittee agreed that any office whose waiting line time was an hour or less was acceptable, because other alternatives are available. If we could place 60 new positions in each of the Clark County offices, where the waiting line time is over the 1-hour maximum, we would not have to raise the fee. This solution makes a lot of sense.
Virginia Lewis, Director, Department of Motor Vehicles:
The agency looked at the total picture over the biennium. The solution to the funding problem has many facets. Staffing the DMV offices at 100 percent, using technology, and educating the public are parts of the solution. If the new staffing positions are not approved, the DMV would not be able to guarantee that waiting line times would stay under the 1-hour maximum. The agency hopes technology will become a larger part of the solution, but without the resources to operate the offices, there is no guarantee the waiting times can be diminished.
Senator Raggio:
It seems that the suggested new fee of $8.25 may provide more funds than are needed to bring the agency’s budget within the 22 percent cap. There is a $216,750 shortfall in FY 2003-2004 and a $2.6 million shortfall in FY 2004‑2005. If the fee were lowered, could the DMV budget still get under the cap?
Mr. Krmpotic:
In the second year of the biennium, with the suggested $8.25 fee, the fee would bring in $3.2 million. If the $8.25 fee were approved, the DMV would be under the cap by approximately $580,000 in the second year of the biennium.
Senator Raggio:
Can the fee increase be implemented in the first year of the biennium?
Mr. Krmpotic:
The increased fee would be implemented around October 1, 2003, to allow the DMV time to program the system for the transition.
Senator Raggio:
Currently, the DMV budget is over the cap by approximately $200,000 in FY 2003-2004 without the fee increases.
Mr. Krmpotic:
With the fee increase, the DMV budget would be under the cap by $2.2 million in FY 2003-2004.
Senator Raggio:
Then why do we have to raise the fee so much?
Mr. Krmpotic:
In the second year of the biennium, the budget would be very close to going over the 22 percent cap. The DMV budget would only be under the cap by approximately $500,000.
Senator Raggio:
Can the increased funding in the first year of the biennium be used to offset the shortfall in the second year?
Mr. Krmpotic:
The operating expenses of the DMV, including the recommended new positions, are phased in over the first year of the biennium, but the agency experiences the full annualized expense in the second year of the biennium. In other words, the expenses associated with the additional staff positions are much greater once those positions are filled.
Senator Raggio:
Is it possible to use a smaller fee increase and still bring the DMV budget under the cap? Is it possible to apply the extra funds collected in the first year to the second year of the biennium?
Gary L. Ghiggeri, Senate Fiscal Analyst, Fiscal Analysis Division, Legislative Counsel Bureau:
As Mr. Krmpotic indicated, the increased fee will put the budget about $2.2 million below the cap in FY 2003-2004, and approximately $580,000 below the cap in FY 2004-2005. The new positions are phased in so the full cost of the positions is not felt until the second year of the biennium. The fee has to be set in the NRS, so it might be preferable to set the new fee at the suggested amount of $8.25. Otherwise, the DMV will probably have to come back for an additional increase in the next biennium, which would again require a statutory change. When the subcommittee approved the new positions, it did so with instructions to the DMV to explore expanding the kiosk services, and to not utilize the positions if the kiosk services were successful in decreasing the waiting line times.
Senator Cegavske:
With the addition of the new positions, what will be the starting and closing times for the field service offices of the DMV? If the offices opened up earlier and stayed open later, would the longer operational hours reduce the waiting line times?
Ms. Lewis:
The staffing formula developed for the new positions was based on an 8 a.m. to 5 p.m. schedule of office hours. If customers are already in line at 5 p.m., they are all taken care of before the office closes. Many times the offices do not close at 5 p.m., but remain in operation until about 6:30 p.m. to take care of the waiting customers. The formula addresses a 10.5-hour day in Las Vegas. In Las Vegas, employees are outside walking the lines and checking customers’ paperwork about 7 a.m. By the time the doors open at 8 a.m., the staff can start processing the paperwork as fast as possible.
Senator Cegavske:
Would there be any problems if the offices opened at 7 a.m.?
Ms. Lewis:
Even if the offices opened at 7 a.m., I could not guarantee 100 percent window service coverage. The formula addresses a 10.5-hour daily work schedule to allow for the variables of operation.
Senator Cegavske:
Could the two offices in Las Vegas, with the waiting line time over the 1-hour maximum, have the new staff start at 7 a.m. and work until 4 p.m.? The method would provide for an overlap in shifts.
Ms. Lewis:
All of the metropolitan Las Vegas offices have staggered shifts. Even if the offices opened at 7 a.m., the offices still would not have all the service windows open. Our goal is to maximize the use of every window.
Senator Cegavske:
I agree with Senator Tiffany’s suggestion to staff 30 new positions at each of the Las Vegas offices that are over the 1-hour waiting line time maximum.
Senator Raggio:
We have closed the budget based on staff’s recommendations. To reduce the new positions from 129, we would have to reopen the budget and discussions.
Senator Cegavske:
I think we should reconsider the number of new positions.
Senator Raggio:
If the committee wants to reopen the budget and reconsider, we would have to complete that action first.
Senator Cegavske:
I would like to make a motion to reopen the budget and reconsider the number of new positions.
Senator Raggio:
I will accept your motion, but I do not want to reopen the budget.
Senator Tiffany:
I would second the motion.
ASSEMBLYWOMAN CEGAVSKE MOVED TO REOPEN BUDGET ACCOUNT 201-4735 AND RECONSIDER THE PREVIOUS ACTION OF THE COMMITTEE.
SENATOR TIFFANY SECONDED THE MOTION.
Senator Tiffany:
The motion would reconsider the addition of the authorized 129 new positions by lowering the amount to a total of 60 new positions to be evenly split between the two Las Vegas offices with the longest waiting line times.
Senator Raggio:
We first need to vote on the motion to reconsider.
Senator Tiffany:
I was just trying to clarify the motion.
Senator Raggio:
The effect of the motion to reopen the budget and reduce the authorized new positions would be elimination of additional positions for the Reno office and the other offices.
THE MOTION FAILED. (SENATOR TIFFANY, SENATOR CEGAVSKE, AND SENATOR MATHEWS VOTED AYE.)
*****
Mr. Krmpotic:
Staff performed a quick calculation and has estimated a $5 fee would generate about $1.9 million on an annualized basis. It would not generate sufficient revenue to allow the DMV to be within the cap in the second year of the biennium.
Senator Raggio:
What is the amount of the fee necessary to bring the DMV budget within the cap? Is the amount still $8.25?
Mr. Krmpotic:
Yes, that is correct.
DMV, Administrative Services – Budget Page DMV-9 (Volume 3)
Budget Account 201-4745
Senator Raggio:
I will accept a motion to close this budget account with a fee of $8.25. That fee, coupled with the other three adjustments recommended by staff, would bring this budget within the 22 percent cap. The motion would be to obtain a bill draft request (BDR) for the purpose of instituting a fee of $8.25 for each report of sale for both new and used motor vehicles.
SENATOR RHOADS MOVED TO CLOSE BUDGET ACCOUNT 201-4745 WITH A REQUEST FOR A BDR TO INSTITUTE AN $8.25 FEE FOR EACH REPORT OF SALE FOR BOTH NEW AND USED MOTOR VEHICLES AND WITH AUTHORITY FOR STAFF TO MAKE TECHNICAL ADJUSTMENTS.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED, (SENATOR TIFFANY AND SENATOR CEGAVSKE VOTED NO.)
*****
Senator Coffin:
The subcommittee did not hear some of the suggestions presented today. I did support doing more with the kiosk services, but we could not reach full subcommittee agreement. If we do not support the BDR for a bill to increase the fee, we will have a problem providing services for customers at the DMV offices throughout the state.
Senator Raggio:
The other alternative would be to amend NRS 408.325 to allow a raise in the administrative cap. The raise in the cap would serve in lieu of a fee.
Senator Coffin:
The subcommittee considered raising the cap, but the effect would be to reduce available road funds.
DMV, Director’s Office – Budget Page DMV-1 (Volume 3)
Budget Account 201‑4744
Mr. Krmpotic:
The subcommittee concurs with the Governor’s recommendation to expend $100,000 in each year of the biennium to provide for a continuous public awareness campaign to increase the use of alternative technologies, including the Internet, interactive voice response, and emission stations, by citizens requiring a vehicle registration or driver’s license renewal. The subcommittee approved the Governor’s recommendation to transfer the personnel unit from the Administrative Services budget account to the Director’s Office, consistent with an organizational change implemented by the department. There are no other major closing issues.
Senator Raggio:
I will accept a motion to close this budget account.
Senator Mathews:
How many positions will be added to the Director’s Office?
Mr. Krmpotic:
The Director’s Office goes up to 18 positions with the transfer of the personnel unit.
Senator Raggio:
Are these new positions, or are they being transferred from other budgets?
Mr. Krmpotic:
These positions are being transferred from the Administrative Services account into this budget account.
Senator Mathews:
Are any of these positions new?
Mr. Krmpotic:
There were no new positions recommended or approved for the Director’s Office.
SENATOR RHOADS MOVED TO CLOSE BUDGET ACCOUNT 201-4744 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Mr. Krmpotic:
Taking into consideration the new technician positions, the subcommittee authorized staff to make adjustments to the number of accounting assistant positions recommended in the major metropolitan field offices. The subcommittee did not approve the addition of a new chief accountant position, but did approve the reclassification of an administrative services officer II position to a chief accountant position. The subcommittee approved the addition of a personnel analyst position and a transfer of the position to the Director’s Office. The subcommittee concurred with the Governor’s recommendation to add funding in the amount of $25,000 in each year of the biennium for ergonomic equipment. The subcommittee recommended a Letter of Intent to state this funding is to be used solely for the purpose of preventing or correcting a work-related illness or injury, and that the agency will submit a quarterly report to the Interim Finance Committee (IFC) showing expenditures from these funds.
Senator Raggio:
I will accept a motion to close this budget account.
SENATOR RHOADS MOVED TO CLOSE BUDGET ACCOUNT 201-4745 AS RECOMMENDED BY THE SUBCOMMITTEE AND WITH A LETTER OF INTENT SPECIFYING ERGONOMIC FURNITURE FUNDS CAN ONLY BE USED FOR PREVENTING OR CORRECTING A WORK-RELATED ILLNESS OR INJURY AND THAT A REPORT TO THE IFC WILL BE SUBMITTED QUARTERLY SHOWING EXPENDITURES FROM THESE FUNDS
SENATOR TIFFANY SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
DMV, Compliance Enforcement – Budget Page DMV-21 (Volume 3)
Budget Account 201-4740
Mr. Krmpotic:
The subcommittee expressed concern over the increases in the number of fraud cases projected in the 2003-2005 biennium, which supported the addition of eight positions recommended for the establishment of a fraud unit. The subcommittee approved the addition of eight positions to establish a fraud unit with the direction that the positions be reconsidered by the 2005 Legislature. The subcommittee also recommended a Letter of Intent to have the agency report program activity for the fraud unit to the Interim Finance Committee (IFC) on a semiannual basis. The subcommittee recommended the expenditure of $228,172 in FY 2003-2004 and $284,348 in FY 2004-2005 from authorized revenues to support fingerprint expenses paid by the compliance division to the criminal history repository.
Senator Raggio:
Where does the money come from to fund the fingerprint expense?
Mr. Krmpotic:
Each applicant is charged a fee when applying for a business or occupational license.
Senator Raggio:
Is that amount adequate to reduce the use of Highway Funds for that purpose? Record the answer as “yes” since Mr. Krmpotic is nodding his head. I will accept a motion to close this budget account.
SENATOR COFFIN MOVED TO CLOSE BUDGET ACCOUNT 201-4740 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR RHOADS SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
DMV, Field Services – Budget Page DMV-29 (Volume 3)
Budget Account 201‑4735
Mr. Krmpotic:
The subcommittee did not concur with the Governor’s recommendation to add 11 positions to provide Saturday services in the Carson City office. The subcommittee did not act on the recommendation to add 136 positions to the major metropolitan field offices in Las Vegas and Reno. The subcommittee did not act on the recommendation to increase funding to continue the kiosk pilot project. The subcommittee approved a driver examiner position at the Fallon office, an appraiser position at the Reno office, a transfer of 6 positions to the Motor Carrier budget account, and 18 positions to the Compliance Enforcement budget account.
Senator Raggio:
I will accept a motion to close this budget account.
SENATOR COFFIN MOVED TO CLOSE BUDGET ACCOUNT 201-4735 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR TIFFANY SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
DMV, Central Services – Budget Page DMV-46 (Volume 3)
Budget Account 201-4741
Mr. Krmpotic:
The subcommittee approved the Governor’s recommendation to add two positions to the mail-in renewal section. The subcommittee did not support the document-imaging equipment purchase request that accompanied the recommended positions. The subcommittee supported the Governor’s recommendation to add 2.5 FTE positions to maintain a goal of 14 working days to process a title request. The subcommittee approved the purchase of a document-imaging system for the purpose of archiving documents.
Senator Raggio:
How much is the equipment?
Mr. Krmpotic:
The amount is $400,960 in FY 2003-2004 and $70,368 in FY 2004-2005.
Senator Tiffany:
Is there conversion built into the $400,000 figure, because it seems very high?
Mr. Krmpotic:
To the staff’s recollection, the amount included only equipment and software.
Senator Tiffany:
We have approved many scanning systems throughout these budgets, and $400,000 is an extremely high figure for the purchase of the equipment compared to the amount requested in the other budgets.
Senator Raggio:
They have reduced the amount by $36,000.
Senator Tiffany:
Even with that reduction, the $400,000 is way too high.
Mr. Krmpotic:
Staff does not recall that the amount included any funds for conversion.
Senator Raggio:
Does anyone have the answer to the question? We will not close this budget until we get a response on why the amount for the equipment purchase is so high.
DMV, Management Services – Budget Page DMV-58 (Volume 3)
Budget Account 201-4742
Mr. Krmpotic:
The subcommittee supports the Governor’s recommendation to add four new training positions. The subcommittee did not support the recommendation to add two positions to provide training to entities external to the department.
Senator Raggio:
I will accept a motion to close this budget account.
SENATOR TIFFANY MOVED TO CLOSE BUDGET ACCOUNT 201-4742 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
DMV, Motor Carrier – Budget Page DMV-65 (Volume 3)
Budget Account 201-4717
Mr. Krmpotic:
The subcommittee did not support the Governor’s recommendation to add a management analyst position. The subcommittee recommends that program managers continue to perform these tasks.
Senator Raggio:
I will accept a motion to close this budget account.
SENATOR TIFFANY MOVED TO CLOSE BUDGET ACCOUNT 201-4717 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
DMV, Verification of Insurance – Budget Page DMV-77 (Volume 3)
Budget Account 201-4731
Mr. Krmpotic:
The subcommittee supports the Governor’s recommendation to add two positions to increase the number of insurance verification cards sent out daily from 900 to 1200.
Senator Raggio:
Many people have received notification of non-insurance even though they were fully insured. Has this situation been corrected?
Ms. Lewis:
Yes, the situation was resolved last fall.
Senator Raggio:
I will accept a motion to close this budget account.
SENATOR RHOADS MOVED TO CLOSE BUDGET ACCOUNT 201-4731 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR RAWSON SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
DMV, Records Search – Budget Page DMV-89 (Volume 3)
Budget Account 201-4711
Mr. Krmpotic:
The subcommittee concurs with the transfer of two positions. One position will go to the automation account, and the other position will go to the Central Services account. The subcommittee recommends the transfer of revenue in excess of expenditures for reversion to the Highway Fund of approximately $5.7 million in FY 2003-2004 and $6 million in FY 2004-2005. The subcommittee approved the transfer of increased revenue generated from the fee increase to the Central Services and Automation accounts to further offset Highway Fund appropriations to the Central Services and Automation accounts with offsetting decreases in Highway Fund appropriations. The subcommittee also approved a $2 increase in the record search fee, which would generate increases in authorized revenue of approximately $2.7 million in each year of the biennium.
Senator Tiffany:
Does the increase in the fee go towards the scanner and document management system?
Mr. Krmpotic:
A portion of the fee, approximately half of the increase, and the existing reversions would provide a funding source for the whole account. The funding is not specifically for the document-imaging equipment.
Senator Tiffany:
Is this the account where automation occurs?
Mr. Krmpotic:
The document-imaging equipment is included in this account.
Senator Tiffany:
What specific purpose will the increase in funds be used for?
Mr. Krmpotic:
The fee increase was primarily recommended to offset Highway Fund appropriations to allow the department to be within the 22 percent cap.
Senator Tiffany:
The fee increase has more to do with getting the budget account under the 22 percent cap rather than to use the funds for automation. Is that correct?
Mr. Krmpotic:
Yes, that is correct.
Senator Raggio:
I will accept a motion to close this budget account.
SENATOR RHOADS MOVED TO CLOSE BUDGET ACCOUNT 201-4711 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
DMV, Automation – Budget Page DMV-94 (Volume 3)
Budget Account 201-4715
Mr. Krmpotic:
The subcommittee supports the Governor’s recommendation to continue 14 positions approved by the 71st Session. The subcommittee also supports the addition of a storage area network and tape back-up equipment to allow the department to consolidate data from multiple areas within the department. The subcommittee did concur with the recommendation to enhance the telecommunications system, but did not concur with the Governor’s recommendation to add a redundant interactive voice response system for back‑up purposes.
Senator Raggio:
I will accept a motion to close this budget account.
SENATOR RHOADS MOVED TO CLOSE BUDGET ACCOUNT 201-4715 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR TIFFANY SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Senator Raggio:
Do we have an answer to the question on budget account 201-4741 that we held?
Ms. Lewis:
I am waiting for the information.
Senator Raggio:
When you have that information, we will take up that budget account for closure. We are going to take a 5-minute recess. The committee is called back to order, and we take up Senate Bill (S.B.) 263.
SENATE BILL 263: Makes supplemental appropriation to State Department of Agriculture for unanticipated shortfall in money for Fiscal Year 2002‑2003 resulting from unexpected increase in expenses. (BDR S‑1268)
This bill, originally heard on March 24, 2003, gives a supplemental appropriation to the Department of Agriculture. An amendment was suggested for the reclassification of some staff. Is that correct?
Mr. Ghiggeri:
The legislation proposes a supplemental appropriation of $53,309 in FY 2002‑2003 to cover an unanticipated shortfall resulting from an unexpected increase in expenses. Staff recommends the amount be reduced to $41,308.
Senator Raggio:
Why do I have a $29,000 figure?
Mr. Ghiggeri:
The department had funds that were reserved for reversion in category 93. A portion of those funds came from excess collection of fees. Some of those funds will go back to Section 7 in the Authorization Act, as the agency is not allowed to spend more than what it collects. The net result is the supplemental appropriation figure of $41,308.
Senator Raggio:
Do you concur, Mr. Comeaux?
Mr. Comeaux:
Yes, I concur with the bill’s amendment.
Senator Raggio:
I will accept a motion.
SENATOR COFFIN MOVED TO AMEND AND DO PASS AS AMENDED S.B. 263 BY APPROVING A SUPPLEMENTAL APPROPRIATION OF $41,308.
SENATOR RHOADS SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Senator Raggio:
We are going to continue budget closings with the Department of Corrections. A handout entitled “Senate Committee on Finance, Joint Subcommittee on PublicSafety, Natural Resources, and Transportation Closing Report, Department ofCorrections” has been distributed as (Exhibit E. Original is on file in the Research Library.).
DEPARTMENT OF CORRECTIONS
Tracy Raxter, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau:
The subcommittee’s recommendations will result in a General Fund savings of approximately $2.3 million in FY 2003-2004 and an additional General Fund cost of approximately $2.5 million in FY 2004-2005 as compared to the Governor’s recommended budget. The department’s budget is primarily driven by the projected number of inmates to be housed. The Executive Budget provided funding to house an average of 10,397 inmates in FY 2003-2004 and 10,607 inmates in FY 2004-2005. The budget, as modified by the subcommittee, will provide funding to house an average of 10,510 inmates in FY 20003-2004 and 10,765 inmates in FY 2004-2005, plus an additional 421 inmates from the states of Wyoming and Washington. The budget modification was the result of an updated projection of the inmate population by the Institute on Crime, Justice, and Corrections at the George Washington University in March 2003, and by the department’s proposal to house inmates from Wyoming and Washington.
The subcommittee approved a Letter of Intent to be issued to the department indicating that if the actual inmate population during the biennium is below the inmate population projections, the department should reserve the excess funding for inmate-driven expenses, so those funds can be reverted.
The Executive Budget includes additional funding in the amount of $297,567 in FY 2003-2004 and $449,688 in FY 2004-2005 for inflationary increases in food costs. The Senate members of the subcommittee concurred with the Governor’s recommendation to provide funding for the inflationary increases in food costs. The Assembly members of the subcommittee withheld a vote on this item for the institutional and conservation camp budgets, with the exception of the High Desert State Prison budget, in which inflationary food costs were approved.
Senator Raggio:
Why did the Assembly members approve the inflationary food cost increases for one facility, but not for the others? What was the rationale?
Mr. Raxter:
The Assembly members of the subcommittee withheld the vote on this item until they got to the last budget. It was unclear why a vote was not taken for all of the institutional and conservation camp budgets.
Senator Raggio:
I will accept a motion to adopt the recommendation of the Senate members of the subcommittee.
SENATOR RHOADS MOVED TO ADOPT THE RECOMMENDATIONS OF THE SENATE MEMBERS OF THE SUBCOMMITTEE TO APPROVE INFLATIONARY FOOD COST INCREASES FOR ALL THE INSTITUTIONAL AND CONSERVATION CAMPS.
SENATOR TIFFANY SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Senator Raggio:
This motion will be applicable for all of the institutional and conservation camp budget account closings.
High Desert State Prison – Budget Page NDOC-71 (Volume 3)
Budget Account 101-3762
Mr. Raxter:
The subcommittee approved the housing of 421 inmates from the states of Wyoming and Washington for both years of the biennium. The department indicates the housing of out-of-state inmates has the potential to generate $6.2 million annually in General Fund savings. The budget, as modified by the subcommittee, only includes a General Fund savings of $1.8 million in FY 2003‑2004 to reflect the continued housing of existing Wyoming inmates in the department’s facilities. Any revenue in excess of the expenses incurred with the contract with the State of Washington should be placed in reserve for reversion to the General Fund.
Senator Raggio:
I will accept a motion to close this budget account.
SENATOR TIFFANY MOVED TO CLOSE BUDGET ACCOUNT 101-3762 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Casa Grande Transition Housing – Budget Page NDOC-38 (Volume 3)
Budget Account 101-3760
Mr. Raxter:
The subcommittee did not support the Governor’s recommendation for a 436‑bed transition housing facility, but it did support a 200-bed transition housing facility in southern Nevada to be operated by the department beginning in October 2004. The subcommittee expressed concern about the department’s transition housing plan. The subcommittee recommended funding of $2,163,960 be allocated to the IFC with a Letter of Intent directing the department to request from the IFC a funding allocation to operate the transition housing facility upon submittal of a comprehensive transition housing plan.
Senator Raggio:
I will accept a motion to close this budget account.
SENATOR TIFFANY MOVED TO CLOSE BUDGET ACCOUNT 101-3760 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR CEGAVSKE SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Prison Medical Care – Budget Page NDOC-13 (Volume 3)
Budget Account 101-3706
Mr. Raxter:
The subcommittee concurs with the Governor’s recommendation to reclassify a total of 52 forensic specialist positions in the Medical Division to the correctional officer series, and transfer the positions to the individual institutional budgets. The reclassification provides for a two-grade salary increase for these positions.
The subcommittee did not concur with the Governor’s recommendation to continue the use of contracted medical services in Ely. The department provided information indicating an additional cost of $1.3 million for the 2003‑2005 biennium over the recommended amounts included in the Executive Budget to continue privatization of Ely medical services. The subcommittee recommended that the Ely prison medical services be provided by the department at an additional cost of approximately $200,000 over the amount recommended by the Governor during the 2003-2005 biennium. The department indicated that a majority of the existing contract staff would be willing to accept State employment to fill the medical positions at the Ely prison.
The subcommittee approved the Governor’s recommendation to eliminate 22 FTE positions within the medical division. The subcommittee recommends approval of the Governor’s recommendation to move a total of five pharmacist positions within the department from the regular classified pay schedule to the classified medical pay schedule. The subcommittee approved an additional $1.4 million over the amount included in the Executive Budget for inflationary increases in inmate medical costs, based on a budget modification submitted by the Budget Division
Senator Raggio:
This report gives the chair a great deal of concern, because we went through a similar discussion years ago. We could not staff the medical program at the Ely prison because people did not want to live in Ely. That was the reason the medical services were contracted out to a private vendor. How many years have the medical services been contracted out?
Mr. Raxter:
The services have been contracted out since 1995.
Senator Raggio:
What is the name of the present contractor?
Mr. Raxter:
The name of the private vendor is Correctional Medical Services (CMS).
Senator Raggio:
Was CMS disinclined to continue the service?
Dr. Ted D’Amico, Medical Director, Carson City, Department of Corrections:
About a year ago, CMS terminated its contract. The agency tried to help solve some of the problems CMS was having with outside medical costs. CMS has since rescinded its termination of the contract, and has agreed to carry out its contract, which ends June 30, 2003. The agency has assumed some of CMS’s fiscal responsibilities by trying to utilize the agency’s regional medical facility to guide it through outside medical costs. Because CMS did not sign a contract with a capitation figure, its outside medical costs went sky high, and CMS did not believe it was making a profit. Since that time, CMS is making some profit, and it is willing to once again bid on the contract.
Senator Raggio:
What does the statement “based on a superior bid received in response to a request for proposal (RFP) issued by the State Purchasing Division” mean?
Dr. D’Amico:
Two companies answered the RFP. The CMS bid was the superior bid.
Senator Raggio:
My concern is the State had such a difficult time staffing for medical care at the Ely prison that the agency had to go to a private contractor. What assurance is there that this situation is not going to reoccur?
Dr. D’Amico:
The situation has changed. Seven years ago, the system was in disarray. I characterized the system as “bleeding financially.” In the last 7 years, the medical staff has more than proved its credibility in cooperating through a cost‑efficient operation to recruit high-caliber doctors and nurses. The system the agency created is the envy of many states. The agency has been complimented for saving the State money, and it provides a high level of medical care. The system is a strong organization, capable of recruiting and providing care for the agency’s facilities throughout the State.
Senator Raggio:
Do you believe the agency can recruit and retain the specialty positions that are required to properly staff the prison? It is a maximum prison facility, and we do not want to get into another court decree.
Dr. D’Amico:
Yes, the agency can do that as well as provide a better level of care and a better operation. I can assure you the agency will provide the same caliber of care at the Ely prison as it provides for the rest of the state.
Senator Raggio:
The report indicated a majority of the existing contract staff would be willing to accept state employment. Has a survey been completed?
Dr. D’Amico:
Yes, it has been surveyed. The agency does not want to rehire some of the staff. However, the majority of the current staff has indicated a willingness to become state employees. The agency is working on developing a better supervisory cadre at Ely, so a few nursing positions may need reclassification. The agency estimates 95 percent of the current staff would accept state employment.
Senator Raggio:
If we approve this subcommittee report, the State would take over the operation in June 2003. Is that correct?
Dr. D’Amico:
Yes, that is correct. The State would take over on July 1, 2003.
Senator Raggio:
Are you prepared to take over the operation?
Dr. D’Amico:
The agency has been preparing behind the scenes, just in case. The agency did have an action plan already developed from CMS’s prior termination, so some of the groundwork is covered. Usually transition periods are much longer, but the agency’s staff is fully capable of taking over the operation.
Senator Coffin:
By permitting CMS to finish its contract, did the agency avoid a lawsuit?
Dr. D’Amico:
Although the agency remains ultimately responsible for the inmate population, private contractors handle its own litigation.
Senator Coffin:
I was referring to the fact that CMS dropped out of its contract. I am sure there was some discussion about legal action when CMS left the agency in the lurch.
Dr. D’Amico:
The agency was not very happy about the situation. It has not been happy with many of the operations provided by its private contractors. At this particular time, the agency feels the State is more than qualified and can do a better job of providing medical services.
Senator Raggio:
I assume you understand that the spotlight is on you in this issue. If we have a recurrence of the inability of the agency to provide adequate medical care, it will be difficult to explain.
Dr. D’Amico:
I understand.
Senator Raggio:
I will accept a motion to close this budget account.
SENATOR COFFIN MOVED TO CLOSE BUDGET ACCOUNT 101-3706 AS RECOMMENDED BY THE SUBCOMMITTEE AND APPROVE STATE OPERATION OF THE ELY MEDICAL SERVICES.
SENATOR TIFFANY SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR RAGGIO VOTED NO.)
*****
NDOC Director’s Office – Budget Page NDOC-1 (Volume 3)
Budget Account 101-3710
Mr. Raxter:
The subcommittee recommends approval of a new victim’s services officer position. The subcommittee did not concur with the Governor’s recommendation to establish a new grant analyst position. The subcommittee concurs with the Governor’s recommendation to provide funding for the department to conduct pre-employment psychological testing. The subcommittee concurs with the Governor’s recommendation to eliminate six positions and approves the transfer in of 10 correctional officer positions from the correctional institutions in southern Nevada.
Senator Raggio:
I will accept a motion to close this budget account.
SENATOR TIFFANY MOVED TO CLOSE BUDGET ACCOUNT 101-3710 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Correctional Programs – Budget Page NDOC-33 (Volume 3)
Budget Account 101-3711
Mr. Raxter:
The subcommittee concurs with the Governor’s recommendation to create a new correctional programs division. A total of 31.5 transfer-in positions are recommended to staff this new division, and they will be transferred in from other budgets within the department. The subcommittee recommends one new chaplain position, which was not recommended by the Governor. The subcommittee did not concur with the Governor’s recommendation to provide General Fund support for four academic teacher positions for the inmate literacy program. Instead, the subcommittee recommends that three of the four positions and the literacy program costs continue to be funded from the Inmate Welfare account, and General Fund support be provided for the cost of one academic teacher position.
Senator Raggio:
How many academic teacher positions were recommended?
Mr. Raxter:
The recommendation was for one position to be supported by the General Fund.
Senator Raggio:
I will accept a motion to close this budget account.
SENATOR TIFFANY MOVED TO CLOSE BUDGET ACCOUNT 101-3711 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Inmate Welfare Account – Budget Page NDOC-143 (Volume 3)
Budget Account 240-3763
Mr. Raxter:
The subcommittee did not concur with the Governor’s recommendation to consolidate the budget categories for the inmate law libraries because of the difficulties consolidation would cause in monitoring the expenditures.
Senator Raggio:
I will accept a motion to close this budget account.
SENATOR COFFIN MOVED TO CLOSE BUDGET ACCOUNT 240-3763 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR TIFFANY SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Senator Rawson:
Was there some issue about the inmate literacy programs?
Senator Tiffany:
From what I remember from the subcommittee meeting, the Assembly side did not want the literacy staff doing the teaching job. It was felt the school district should provide the instruction. The people on the literacy staff pointed out they work with inmates other than those in the K/12 group. They work with older prisoners, getting them up to speed to qualify for their GEDs. I felt the literacy staff had a strong argument for their program. They work with a different subset of prisoners, and have a different goal than the school district teachers.
Senator Coffin:
There was a general uncomfortable feeling at the subcommittee meeting about inmate general welfare services and funds. There was a tendency in the budget recommendations to move away from the literacy program and redirect resources to other areas, such as the new chaplain position. The changes made by the subcommittee were motivated by its interest in reinforcing prison security, and achieving peace and calm in the prison facilities.
Senator Raggio:
The Governor recommended General Fund support for four academic teacher positions in the inmate literacy program that are currently funded by the Inmate Welfare account’s federal grant, which terminates in August 2003. The subcommittee recommended funding for three of the academic teacher positions, and proposed the literacy program operating costs be handled through existing revenue sources. The subcommittee recommended General Fund support for one academic teacher position. Does my statement reflect the subcommittee’s recommendation?
Mr. Raxter:
Yes, you are correct in your statement. All four teaching positions would be reporting to correctional programs. There was insufficient funding in the Inmate Welfare account to fund the fourth teacher position.
Senator Raggio:
The General Fund is supporting the fourth teacher position. Is that the subcommittee’s recommendation?
Mr. Raxter:
Yes, that is correct.
Senator Rawson:
I was not familiar with all the discussions that took place at the subcommittee’s hearing, but I do know the Governor was concerned that literacy among the inmate population should be considered an important issue.
Senator Raggio:
The Governor wanted the entire program funded by the General Fund. The subcommittee retained those positions in its recommendation, but the funding is as the subcommittee indicated. The literacy program will continue.
Warm Springs Correctional Center – Budget Page NDOC-27 (Volume 3)
Budget Account 101-3716
Mr. Raxter:
The subcommittee concurs with the Governor’s recommendation to eliminate 28 custody positions at the Warm Springs Correctional Center related to the conversion of the facility from a medium custody to minimum custody institution, effective July 2003.
Senator Raggio:
I will accept a motion to close this budget account.
SENATOR TIFFANY MOVED TO CLOSE BUDGET ACCOUNT 101-3716 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR CEGAVSKE SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Ely State Prison – Budget Page NDOC-65 (Volume 3)
Budget Account 101-3751
Mr. Raxter:
The subcommittee did not concur with the Governor’s recommendation to eliminate 14 correctional officers. The General Fund costs for these positions are $744,530 in FY 2003-2004 and $771,775 in FY 2004-2005.
Senator Raggio:
Mr. Comeaux, what is the Governor’s position on this issue?
Mr. Comeaux:
Originally, because of difficulties in recruiting and retaining staff, the Governor’s position was to recommend the elimination of the 14 positions because of the chronic staff vacancy rate at the Ely State Prison. The subcommittee’s difficulty with the recommendation was that no specific adjustment was made to the institution’s post chart. The prison indicated the post staffing would be managed through the position relief factor.
Senator Raggio:
The subcommittee felt the prison would not be able to manage its staffing requirements. Is that it?
Mr. Raxter:
Yes, that is correct.
Senator Raggio:
I think I would concur with the subcommittee’s action, because this prison is a close-security maximum classified facility. I will accept a motion to close this budget account.
SENATOR COFFIN MOVED TO CLOSE BUDGET ACCOUNT 101-3751 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR TIFFANY SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Northern Nevada Correctional Center – Budget Page NDOC-45 (Volume 3) Budget Account 101-3717
Mr. Raxter:
The Governor’s budget recommendations include approximately $250,000 for various special maintenance projects. The subcommittee supported funding within this budget for these special maintenance projects with the exception of a $20,891 paving project. The subcommittee also recommends a Letter of Intent be issued to the State Public Works Board indicating this paving project should be prioritized so it can be completed with the funding approved by the 72nd Session for the capital improvement project statewide paving program. The subcommittee concurs with the Governor’s recommendation to eliminate two correctional officer positions, based on the elimination of the canine program department-wide.
Senator Raggio:
What is the canine program?
Mr. Raxter:
The prisons have used canines for perimeter and grounds patrol.
Senator Raggio:
I will accept a motion to close this budget account.
SENATOR COFFIN MOVED TO CLOSE BUDGET ACCOUNT 101-3717 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Lovelock Correctional Center – Budget Page NDOC-79 (Volume 3)
Budget Account 101-3759
Mr. Raxter:
The subcommittee supported funding within this budget for special maintenance projects, with the exception of a $24,000 paving project, which will be included in the statewide paving program administered by the State Public Works Board. A Letter of Intent to the board, similar to the one recommended in the Northern Nevada Correctional Center, is to be included.
Senator Raggio:
I will accept a motion to close this budget account.
SENATOR RHOADS MOVED TO CLOSE BUDGET ACCOUNT 101-3759 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR CEGAVSKE SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Southern Desert Correctional Center – Budget Page NDOC-58 (Volume 3) Budget Account 101-3738
Mr. Raxter:
The subcommittee concurs with the Governor’s recommendation to eliminate two vacant positions, and to realign caseworker staffing to the Legislatively authorized staffing ratio of 1 caseworker to 125 inmates at this institution.
Senator Raggio:
I will accept a motion to close this budget account.
SENATOR CEGAVSKE MOVED TO CLOSE BUDGET ACCOUNT 101-3738 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR RAWSON SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Nevada State Prison – Budget Page NDOC-53 (Volume 3)
Budget Account 101-3718
Southern Nevada Women’s Correctional Facility – Budget Page NDOC-41
(Volume 3) Budget Account 101-3761
Offenders’ Store Fund – Budget Page NDOC-138 (Volume 3)
Budget Account 240-3708
Indian Springs Conservation Camp – Budget Page NDOC-101 (Volume 3)
Budget Account 101-3725
Stewart Conservation Camp – Budget Page NDOC-91 (Volume 3)
Budget Account 101-3722
Mr. Raxter:
The subcommittee also reviewed the budgets for the Nevada State Prison, B/A 101-3718, Southern Nevada Women’s Correctional Facility, B/A 101-3761, Offenders’ Store Fund, B/A 240-3708, Indian Springs Conservation Camp, B/A 101-3725, and the Stewart Conservation Camp, B/A 101-3722. The chart on page 9 of the Closing Report (Exhibit E) summarizes the General Fund costs and savings resulting from the subcommittee’s actions. The subcommittee recommends these budgets be closed as recommended by the Governor.
Senator Raggio:
What are the total costs and savings for all these budget accounts?
Mr. Raxter:
The General Fund savings are $2,321,265 in FY 2003-2004, and the General Fund costs are $2,522,483 in FY 2004-2005.
Senator Raggio:
Is the largest cost item for medical expense?
Mr. Raxter:
There are several items of noteworthy mention in both costs and savings. Delaying the opening of the Casa Grande Transition Housing facility generated the savings in FY 2003-2004. The contract for housing Wyoming inmates also generated a savings in the first year of the biennium. The costs in FY 2004‑2005 were driven by the opening of the Casa Grande Transition Housing facility, by medical inflation costs, and by the increase in the inmate population at the Southern Nevada Women’s Correctional Facility.
Senator Raggio:
A handout entitled “Senate Committee on Finance, Joint Subcommittee onGeneral Government, Closing Report, Judicial Branch” (Exhibit F. Original is on file in the Research Library.) has been distributed to the committee.
JUDICIAL BRANCH
Julie Brand, Program Analyst, Fiscal analysis Division, Legislative Counsel Bureau:
The subcommittee reviewed the 11 budgets of the Judicial Branch. Contingent upon passage of Assembly Bill (A.B.) 29, the recommendations of the subcommittee decrease the General Fund support in these budgets in the amount of $2.2 million in FY 2003-2004 and $1.6 million in FY 2004-2005.
ASSEMBLY BILL 29: Makes various changes concerning administrative assessments and forfeiture of bail. (BDR 14-130)
The pending legislation affects all the accounts of the Judicial Branch, and is not separately discussed within the individual budget accounts. The following is a summary of the more significant closing recommendations of the subcommittee.
Assembly Bill 29 provides for an additional $15 administrative assessment to be collected in certain cases involving misdemeanors in which the defendant is found guilty or pleads guilty. Five dollars of this assessment is to be allotted to specialty courts via the Office of the Court Administrator, and $10 of this assessment increases existing administrative assessments per NRS 176.059, which provides a 51 percent distribution to the Judicial Branch, and a 49 percent distribution to the Executive Branch. The effect of passage of this bill is currently reflected in judicial budget accounts supported by court administrative assessments. If legislation is not passed, adjustments will be necessary in these budget accounts. In the event A.B. 29 is approved, the subcommittee recommends funding six new positions, restoring judicial education programs, increasing the implementation of statewide technology projects, and restoring reserves. Senate Bill 106 proposes to impose an additional filing fee of $30 for each additional party in multi-party cases.
SENATE BILL 106 (1st Reprint): Provides for imposition of certain fees in certain actions and proceedings filed in courts of this state. (BDR 2-614)
Of this fee, $10 is for the support and maintenance of case management systems, statewide technology projects, and distribution to the courts for local technology projects. Five dollars is for the payment of retired justices and retired district judges who serve on the court. The effect of the passage of this bill is currently reflected in the Uniform System of Judicial Records budget account and the Retired Justice Duty Fund. If S.B. 106 is not passed, adjustments will be necessary in these budget accounts.
Supreme Court – Budget Page COURTS-3 (Volume 1)
Budget Account 101-1494
Ms. Brand:
The subcommittee concurred with the court’s request to offset the General Fund appropriation by $1.4 million based on the passage of A.B. 29. The subcommittee recommends approval of four new positions to provide technology support for the Supreme Court. The subcommittee recommends approval to defer costs associated with the court’s move into the regional justice center. The anticipated moving date has been changed from July 2003 to July 2004. Deferral of this move reduces the General Fund appropriation by $473,865 over the biennium. The subcommittee recommends a General Fund reduction of $117,931 over the biennium originally requested to replace technological equipment and ergonomic furnishings. The subcommittee concurs with the court’s request to reclassify ten justices’ judicial assistants to judicial chambers administrators in order to align the salaries with the equivalent positions in the two largest judicial districts.
Senator Raggio:
There has been some concern about the cost of ergonomic furnishings for the Supreme Court. What did the subcommittee recommend?
Ms. Brand:
The subcommittee recommended the amount of $45,280, full funding over the biennium to replace ergonomic furniture in the Supreme Court.
Senator Tiffany:
We just closed the DMV budgets, and gave them $25,000 for ergonomic furnishings. We should specify the inclusion of a Letter of Intent stating the funds can only be used if a situation develops that might involve worker’s compensation or other special circumstances.
Senator Raggio:
We should specify the funds may only be used to avoid workplace injury or illness.
Senator Coffin:
The subcommittee did engage in a long discussion about approving the funds for the ergonomic furnishings. An employer has to be preemptive in preventing injuries in the work place.
Senator Raggio:
The subcommittee recommended approximately $22,000 in each year of the biennium for this purpose. Is that correct?
Ms. Brand:
Yes, that is correct.
Senator Tiffany:
How many employees are getting these furnishings?
Senator Raggio:
The Supreme Court has 88 FTE positions.
Senator Tiffany:
Then, the furniture funding must have been for all employees.
Senator Raggio:
We can approve the funding with a Letter of Intent stating the funds are only to be used upon demonstrated need. I have also heard some public comment expressing concern about the purchasing of ergonomic furnishings. In reclassifying the judicial assistant positions are we getting salary figures out‑of‑line with the level of salaries for attorney positions? Are these attorney positions?
Ms. Brand:
The positions are judicial assistants.
Senator Raggio:
I will accept a motion to close this budget account.
SENATOR TIFFANY MOVED TO CLOSE BUDGET ACCOUNT 101-1494 AS RECOMMENDED BY THE SUBCOMMITTEE AND TO INCLUDE A LETTER OF INTENT SPECIFYING USE OF ERGONOMIC FURNITURE FUNDING.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Administrative Office of the Courts – Budget Page COURTS-12 (Volume 1) Budget Account 101-1483
Ms. Brand:
Contingent upon the passage of A.B. 29, the subcommittee recommends the transfer of the judicial branch auditor position requested in the Division of Planning and Analysis budget to this budget account. The transfer will be funded with court assessments instead of the General Fund. The subcommittee also recommends the reduction of ergonomic furnishings to a total cost of $539 per FTE position.
Senator Raggio:
Since all of these budget accounts contain some amount for ergonomic furnishings, I suggest that when we close each of these budgets we include the appropriate Letter of Intent. I will accept a motion to close this budget account.
SENATOR TIFFANY MOVED TO CLOSE BUDGET ACCOUNT 101-1483 AS RECOMMENDED BY THE SUBCOMMITTEE AND TO INCLUDE A LETTER OF INTENT REGARDING ERGONOMIC FURNISHINGS.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Division of Planning & Analysis – Budget Page COURTS-16 (Volume 1)
Budget Account 101-1484
Ms. Brand:
The subcommittee recommends the approval of an assistant court research analyst to assist the senior court research analyst in collecting data for the critical expansion of the Uniform System of Judicial Records. Contingent upon the passage of A.B. 29, the subcommittee recommends the transfer of the judicial branch auditor from this budget account to the Administrative Office of the Courts budget account, as the requested position would support the entire court system.
Senator Raggio:
I will accept a motion to close this budget account.
SENATOR COFFIN MOVED TO CLOSE BUDGET ACCOUNT 101-1484 AS RECOMMENDED BY THE SUBCOMMITTEE AND TO INCLUDE A LETTER OF INTENT REGARDING ERGONOMIC FURNISHINGS.
SENATOR TIFFANY SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Supreme Court Rural Drug Court – Budget Page COURTS-31 (Volume 1)
Budget Account 101-1495
Ms. Brand:
Contingent upon the passage of A.B. 29, the subcommittee recommends continued support for the mental health drug court to remain in the Department of Human Resources and be administered by the Division of Mental Health and Developmental Services. The subcommittee also supports maintaining the rural drug court and drug courts in Washoe and Clark Counties within this budget account, to be administered by the Judicial Branch. The subcommittee recommends continued funding of the rural drug court in the amount of $300,000 over the biennium, and continued funding of the drug courts in Washoe and Clark Counties in the amount of $1,050,000 over the biennium, to be funded with court assessments in lieu of General Funds.
The subcommittee provided a 6-month funding start-up of $337,500 in FY 2003-2004 from the General Fund for the drug courts in the judicial budget. Court assessments received in excess of current obligations were approved by the subcommittee for expansion of current drug court programs and implementation of drug court programs in the rural areas. Funding for these programs is to be separately designated by a revenue and expenditure category.
Senator Raggio:
Was there an additional request for drug court funding that was not approved?
Ms. Brand:
During the budget closing, there was testimony that indicated the additional request with excess court assessment money would be approximately $2.9 million per year. That continues to provide for expansion into the rural districts, which is approximately $760,000 in each year of the biennium; it also provides additional funding for expansion of the mental health court in Washoe County.
Senator Raggio:
Apparently, there has been some concern that we are not funding an expansion of the drug court program.
Ms. Brand:
I did not include the details of the drug court expansion program in the closing document, but I can get copies for the committee.
Senator Raggio:
We will hold on closing this budget account until we have the information.
Judicial Dst Judges and Widows Pension – Budget Page COURTS-1 (Volume 1)
Budget Account 101-1491
Uniform System of Judicial Records – Budget Page COURTS-21 (Volume 1)
Budget Account 101-1486
Judicial Education – Budget Page COURTS-25 (Volume 1)
Budget Account 101-1487
District Judges Travel – Budget Page COURTS-33 (Volume 1)
Budget Account 101-1493
Retired Justice Duty Fund – Budget Page COURTS-36 (Volume 1)
Budget Account 101-1496
Law Library – Budget Page COURTS-40 (Volume 1)
Budget Account 101-2889
Judicial Discipline – Budget Page COURTS-43 (Volume 1)
Budget Account 101-1497
Ms. Brand:
The subcommittee reviewed the budgets for the Judicial District Judges and Widows Pension, B/A 101-1491, Uniform System of Judicial Records, B/A 101‑1486, Judicial Education, B/A 101-1487, District Judges Travel, B/A 101-1493, Retired Justice Duty Fund, B/A 101-1496, Law Library, B/A 101-2889, and Judicial Discipline, B/A 101-1497. The subcommittee recommends all these budget accounts be closed with minor technical adjustments.
Senator Raggio:
I will accept a motion to close these budget accounts.
SENATOR RHOADS MOVED TO CLOSE BUDGET ACCOUNTS 101-1491, 101-1486, 101-1487, 101-1493, 101-1496, 101-2889, AND 101-1497 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR TIFFANY SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Senator Raggio:
A handout has been distributed to the committee entitled “Senate FinanceCommittee, Joint Subcommittee on K-12/Human Resources, Closing Report,Department of Education”(Exhibit G. Original is on file in the Research Library.).
STATE DEPARTMENT OF EDUCATION
Bob Atkinson, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau:
The closing actions of the subcommittee for the Department of Education (DOE) resulted in General Fund savings in the amount of $323,009 in FY 2003-2004 and $330,232 in FY 2004-2005. The closing report amounts may differ, because some of the savings reflected in the Other State Education Programs account is actually transferred to the Distributive School Account (DSA). The following summary covers the more significant recommendations of the subcommittee.
Education State Programs – Budget Page K12ED-1 (Volume 1)
Budget Account 101-2673
Mr. Atkinson:
The Executive Budget recommended using the General Fund in this account for one new position, and for the continuation of a vacant position approved by the 71st Session. The subcommittee did not approve a recommended administrative assistant position, but suggested, if it is determined in the future that the position is required, it should be requested with federal funding support. The subcommittee agreed with the recommendation for a computer programmer position to support the Statewide Management of Automated Record Transfer (SMART) system. Instead of funding the position in this budget account with General Fund support, the subcommittee approved the position with federal funding from the No Child Left Behind Act (NCLBA). These recommendations result in General Fund savings of $88,501 in FY 2003-2004 and $98,879 in FY 2004-2005.
Douglas C. Thunder, Deputy Superintendent for Administration and Fiscal Services, Department of Education:
If the department can demonstrate the need for the administrative assistant position, can the department be given authority now to go ahead with the hiring without further approval?
Mindy Braun, Education Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau:
The department could come back and ask for this position. I believe the agency has also requested some other positions to process accountability information that are not recommended for approval at this time. The subcommittee’s concern was there might not be sufficient federal funds for all of the requested new positions. The subcommittee’s recommendation was to hold on approval and wait for additional position justification information.
Senator Raggio:
What access can we provide the department for hiring needed staff positions?
Ms. Braun:
An option would be to request approval for the funding from the IFC.
Senator Raggio:
We can handle the position funding with a Letter of Intent for the IFC.
Senator Rawson:
There was some concern about not filling the positions. The department has a first quarter implementation plan, which will not go forward without the resources. We have left the department for several months without the authority to hire positions. Would this situation be workable for the department? If it is not, we should deal with the funding problem.
Senator Raggio:
Would a Letter of Intent permitting the department to access funds for needed positions satisfy the department’s requirements?
Mr. Thunder:
Yes, it would.
Senator Raggio:
I will accept a motion to close this budget account.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101-2673 AS RECOMMENDED BY THE SUBCOMMITTEE AND TO INCLUDE A LETTER OF INTENT FOR HIRING NEEDED POSITIONS WITH APPROVAL FROM THE IFC.
SENATOR CEGAVSKE SECONDED THE MOTION.
Senator Cegavske:
With the Letter of Intent, does the department still have to go before the IFC to get approval?
Senator Raggio:
Yes, the department would have to do that.
THE MOTION CARRIED UNANIMOUSLY.
*****
Other State Educ Programs - Budget Page K12ED-12 (Volume 1)
Budget Account 101-2699
Ms. Braun:
The subcommittee recommended reinstating funding of $346,239 in each year of the biennium for the local education agency (LEA) library books, $300,000 in FY 2003-2004 for public broadcasting, and $51,429 in each year of the biennium for the National Board Certification program for teachers. The Governor recommended these programs for deletion, and had inadvertently placed the recommended funds in a reserve for reversion category. For this reason, the subcommittee was able to reapprove the programs with no additional General Fund support. The subcommittee approved a new name for the SMART system. It will be called the System for Accountability Information in Nevada (SAIN). The subcommittee made the following decisions with reference to the SAIN system. The one new computer systems program recommended by the Governor using appropriations from the General Fund will be supported with federal funds. The subcommittee also approved an additional $105,000 in each year of the biennium in federal NCLBA funds for department technical support. The Governor had recommended the appropriation come from the General Fund. These decisions were made based upon a Letter of Intent from the 71st Session, which noted that the funding approved by the 71st Session for hardware, software, and personnel costs to support the SMART program is one-time in nature, and should not be considered an ongoing, continuing responsibility of the State.
The subcommittee again referred to the Letter of Intent from the 71st Session in reference to the funding for the district-level technical support required for implementation of the NCLBA. The subcommittee noted the NCLBA actually increases the demand for immediate access to high-quality education data across the pre-K-12 education system, and it approved the one-time funding for district-level technical support through the 2003-2005 biennium. In approving these funds, the subcommittee requested these funds be placed in a reserve category in the budget account, with the requirement that the department provide justification to the IFC prior to accessing the funds.
With regard to the actual system components required for the SAIN system, the subcommittee approved General Funds in the amount of $850,000 in FY 2003‑2004 and $750,000 in FY 2004-2005. The subcommittee approved an additional $11,900 in each year of the biennium to form a high-level SAIN advisory committee to oversee implementation of the upgraded system.
The Governor recommended $5 million in each year of the biennium to continue signing bonuses in the amount of $2000 for teachers who are newly hired by the school districts. The Senate members voted to approve the funding for the signing bonuses, while the Assembly members voted to utilize funding from this source, as well as two other stipend programs to finance additional retirement credits for at-risk schools, and to address the minimum teacher salary and skills‑based compensation.
The subcommittee approved General Fund appropriations in the amount of $285,460 in FY 2004-2005 to support, for the first time, nationally certified school counselors and school psychologists. The subcommittee approved the transfer of funds in the amount of $80,000 in each year of the biennium for the Leadership in Educational Administration Development program (LEAD) to the budget for the DSA. The subcommittee requested language be included in the school-funding bill to require that the identity of the LEAD program not be lost with the transfer of the funds. The subcommittee approved a transfer of funds in the amount of $301,000 in each year of the biennium for the classroom on wheels (COW) program to the budget of the DSA. The subcommittee requested language be included in the school‑funding bill that would provide the approved funding for the COW program without participating in the competitive grant process, but would require the program to participate in all required evaluations for each childhood program.
Senator Rawson:
Did we agree some type of retirement credit benefit could cover the signing bonuses? We said we would look at that alternative, if it was cost neutral.
Senator Raggio:
We have a report from staff. Ms. Braun, can you respond to the question? I believe a continuing cost was indicated.
Ms. Braun:
Staff has provided some information regarding the retirement credits. One option is to look at providing retirement credits for all schools designated as in need of improvement.
Senator Raggio:
We are giving the retirement credit to teachers at those schools if the teachers have served 5 years.
Ms. Braun:
Yes, that is correct. In those cases, the funding required would be approximately $2.7 million in FY 2003-2004 and $7.1 million in FY 2004-2005. The number of schools with eligible teachers is estimated to be 58 in FY 2003‑2004, but in the second year of the biennium, under the NCLBA, the estimate is 150 schools.
Senator Raggio:
The subcommittee took action to cap the amount.
Ms. Braun:
Actually, S.B. 191 contained the bonuses for teachers in at-risk schools, and those funds were capped.
SENATE BILL 191: Makes various changes in governing education to facilitate implementation of federal No Child Left Behind Act of 2001. (BDR 34‑635)
The bonuses would be up to $2000 per teacher, but would be reduced, depending on the number of eligible teachers. The retirement credit bonuses were amended out in S.B. 191 because of the high fiscal impact for the school districts.
Senator Tiffany:
Will Legislators be included on the SAIN advisory committee, or is the committee restricted to the DOE staff?
Ms. Braun:
There will be a Letter of Intent going out, and we could add in a provision to have Legislators serve on the advisory committee.
Senator Tiffany:
Legislators were included on the SMART oversight committee, but they never showed up. I think we should continue to have at least two Legislators, one from each House, serve on the committee.
Senator Raggio:
Has the make-up of the committee been identified?
Ms. Braun:
The make-up has not been identified.
Senator Raggio:
Is this appropriation for funding for the committee?
Ms. Braun:
Yes, that is correct. The department recommends funding in the amount of $11,900 in each year of the biennium.
Senator Raggio:
Does the formation of the SAIN advisory committee require a BDR?
Ms. Braun:
No BDR would be required.
Senator Tiffany:
When we had the SMART committee, the Legislators did not show up for the meetings because they were not compensated for travel and expenses. If we agree to put Legislators on the committee, we should compensate them for personal expenses.
Senator Raggio:
Your recommendation seems reasonable, but we do not have to make the decision now about committee make-up and compensation for personal expenses.
Mr. Thunder:
Travel costs for the members of the committee were paid in the past. Some of the other commissions requiring Legislator participation get reimbursement through the Legislative Fund.
Senator Raggio:
Who wants to come up with a proposal for the composition of the SAIN advisory committee?
Mr. Thunder:
I will do it, or have staff at the DOE prepare a proposal.
Senator Rawson:
We need to emphasize that the SAIN advisory committee will not be a technician‑level committee, but will be a high-level committee.
Senator Tiffany:
Could staff explain why the work program for this budget account shows a 183 percent increase from FY 2003-2004 to FY 2004-2005?
Ms. Braun:
The signing bonuses drive the percentage up. In the 71st Session, the bonuses were handled in a separate bill, but now the funds are built into the budget. Signing bonuses require a $5 million appropriation in each fiscal year of the 2003-2005 biennium.
Senator Tiffany:
Are the signing bonus funds being placed in the DSA?
Senator Raggio:
No, they will remain in the other State education budget account.
Mr. Thunder:
The department requested that the $75,000 in each year of the biennium for district‑level technical support for the SAIN system be put in reserve with the requirement that the department make a request to IFC before the funds are released from reserve. Without the funding, district level personnel involved in the start-up process during the first year would be working on the promise of future payment for their services. The department would like to request reinstatement of the funds to the budget account.
Ms. Braun:
One option the committee could consider is to provide up-front funding for the first quarter, and then request a report prior to releasing additional funds. The intent of the subcommittee was to provide accountability and justification for fund distribution.
Senator Rawson:
The concern of the subcommittee was just turning over a lump sum of funds with no accountability process in place. Yet, we do not want to bring the process to a standstill. Perhaps, the committee can authorize the department to request quarterly funds with the proviso the request be made to the IFC to release the funds. Otherwise, the department will be facing staff lay-offs.
Senator Raggio:
Is that agreeable with the committee? Does that serve your purpose, Mr. Thunder?
Mr. Thunder:
That solution would be acceptable, assuming the start of the payment quarters would coincide with IFC meeting dates.
Senator Rawson:
We need to coordinate the funding release with the IFC so we do not leave the department with any funding gaps.
Senator Raggio:
The committee should accept the recommendation, and prepare a Letter of Intent with the stipulations.
Bill Hanlon, Lobbyist, Professional Development Program, Southern Nevada:
The retirement credit bonus for teachers at the at-risk schools is for 1 year. I would like to see the bonus extended so teachers will be encouraged to remain at the school. It would be preferable to have the staff stay at the school so the school remains off the needs improvement list.
Senator Raggio:
My concern is the overall continuing cost for retirement credit bonuses.
Mr. Hanlon:
I understand your concern.
Senator Coffin:
What testimony did the subcommittee hear concerning the retirement credit bonuses?
Senator Raggio:
For many years, there has been strong opposition to any type of stipends or bonuses. This is additional funding the subcommittee felt was appropriate for the high-impact subjects, such as mathematics, science, and special education in the at-risk schools.
Senator Cegavske:
Are the retirement credit and stipend bonuses included in the “hold harmless” agreement we have for the at-risk schools?
Mr. Atkinson:
Staff would have to check the provisions of NRS 391.165 to answer your question.
Senator Cegavske:
I would like the answer.
Senator Raggio:
I will accept a motion to close this budget account.
SENATOR CEGAVSKE MOVED TO CLOSE BUDGET ACCOUNT 101-2699 WITH THE RECOMMENDATIONS APPROVED BY THE SENATE MEMBERS OF THE SUBCOMMITTEE.
SENATOR RAWSON SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Teacher Education and Licensing – Budget Page K12ED-17 (Volume 1)
Budget Account 101-2705
Ms. Braun:
The subcommittee approved the Governor’s recommendation to approve $100 in General Funds in each year of the 2003-2005 biennium to provide for continued access to the IFC in the event the budget account encountered a shortfall that could not be remedied. The NCLBA requires teacher-licensing databases to be linked to student information systems. Currently, the Department of Information and Technology manages the databases, and the department requests the databases be transferred to in-house. The subcommittee requested a quarterly report to staff on the status of the DOE’s study to potentially migrate the database systems in-house, and to report any cost savings associated with the move for development of future biennia budgets.
Senator Tiffany:
Will parents have access to the teacher certification information? Could we include a Letter of Intent stating the department can post the information on its Web site?
Keith Rheault, Deputy Superintendent for Instructional, Research, and Evaluative Services, Department of Education:
The department has developed a separate system not directly hooked to the actual licensing files. It will be made available to all school districts and parents next year. NCLBA requires the data be made available.
Senator Tiffany:
Will it be on the Web site?
Dr. Rheault:
It is a Web site posting, and it will only have non-confidential information available to the public. The license information on the Web site will include teacher endorsements and any special provisions.
Senator Coffin:
I want assurance the system will be secure from hackers. Can data be transferred from one database to the other? Is the department considering filters and firewalls for security protection?
Dr. Rheault:
It will be a truly separate system. The public Web site will only have information the department can legally provide and post. There will be no direct links to the full teacher licensure files.
Senator Raggio:
I will accept a motion to close this budget account.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101-2705 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR TIFFANY SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Proficiency Testing – Budget Page K12ED-25 (Volume 1)
Budget Account 101-2697
Ms. Braun:
The subcommittee recommended approval of additional General Fund support in the amount of $148,602 in FY 2003-2004 and $251,837 in FY 2004-2005 to address a shortfall in the Governor’s recommended budget for the 8th grade criterion referenced test (CRT). In reviewing the Governor’s budget, the department found savings in both the norm referenced test (NRT) and the high school proficiency examination (HSPE), which were used to offset the shortfall in the CRTs. The savings for the NRTs amounted to $49,179 in FY 2003‑2004 and $7091 in FY 2004-2005. The savings in the amounts of $286,984 in FY 2003-2004 and $230,984 in FY 2004-2005 for the HSPE were based on the delay of the science portion of the HSPE until the graduating class of 2008-2009, as mandated in the NCLBA. Language is currently included in S.B. 191 to delay the science portion of the HSPE until the graduating class of 2008-2009.
Senator Raggio:
I will accept a motion to close this budget account.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101-2697 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR CEGAVSKE SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Improving America’s Schools – Titles II, V, & VI – Budget Page K12ED-30 (Volume 1) Budget Account 101-2713
Ms. Braun:
This budget includes Title II funds for the teacher quality and education technology grants, Title V funds for the innovative education grant, and Title VI funds for the State assessment grant. In closing this budget, the subcommittee approved a total of $752,885 in additional federal funds, over the Governor’s recommended amounts, for each year of the biennium. The focus of the discussions for this budget account was the request for positions to support the State’s efforts to comply with the provisions of the NCLBA. The subcommittee approved the following positions.
The subcommittee approved funding of $70,913 in FY 2004-2005 for one FTE education consultant position with related operational costs. The subcommittee authorized the position to begin in the second year of the biennium. The subcommittee approved federal Title VI funding for one FTE computer systems programmer and department technical support for the SAIN system.
Positions not approved by the subcommittee include one FTE adequate yearly progress consultant and one FTE program officer I. The subcommittee did not approve these positions, because the IFC already approved two FTE positions in June 2002, which will be performing the duties specified. In addition, in making the decisions, the subcommittee noted there are limited funds available through the Title VI assessment grant, and the primary purpose of these funds is to assist the State in funding the additional assessments required under the NCLBA. It is imperative that sufficient federal funds exist to fund the required assessments.
Senator Raggio:
Is Title VI the State assessment grant funding?
Ms. Braun:
Yes, that is correct.
Senator Raggio:
I will accept a motion to close this budget account.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101-2713 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR CEGAVSKE SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Individuals with Disabilities (IDEA) – Budget Page K12ED-61 (Volume 1)
Budget Account 101-2715
Mr. Atkinson:
This account includes the NRS 395 program, which includes funding for special education costs for a child who cannot be accommodated in his home school district. The subcommittee recommends General Fund support in this account be reduced by $192,410 in each year of the biennium, with a provision that funding could be used in either year of the biennium, and that if the funding was insufficient, a request could be made for an allocation from the IFC contingency fund.
Senator Raggio:
Under the NRS 395 program, how many out-of-state students would we be bringing back with this proposal? Does this bring most of the students back?
Mr. Thunder:
The department has those numbers available, but the figures were not brought here today. The number of students has dropped significantly.
Senator Raggio:
I will accept a motion to close this budget account.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101-2715 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR CEGAVSKE SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Improving America’s Schools – Title I – Budget Page K12ED-66 (Volume 1)
Budget Account 101-2712
Ms. Braun:
This budget account contains the majority of NCLBA federal funds that are pass-through funds to the school districts. This budget account also includes the federal even start program, the comprehensive school reform program, and the new reading first program (RDFP). In closing this budget, the subcommittee approved a total of $6.3 million in additional federal funds above the Governor’s recommended amounts in each year of the 2003-2005 biennium. The focus of discussions concerning this budget account was the transition from the federal reading excellence act (REA) to the RDFP. Both programs have the same goal, which is to ensure all pupils will be able to read at grade level by the end of the third grade. In order to support the transition between the REA program, which ends August 2004, and the new RDFP, which was approved in April 2003, the department recommended the transfer of funding from the discretionary grants restricted account to this account to fund a new position effective July 1, 2003, through August 31, 2004, when the REA grant ends. To complete the REA to the RDFP transition, beginning September 1, 2004, this position would continue at the department with funds from the RDFP grant.
Senator Raggio:
Does the staff believe this is the best use of these funds?
Ms. Braun:
Staff agrees this is the best use of the funds. The federal law requires a transition from the REA and the RDFP, so this funding would support that activity.
Senator Raggio:
I will accept a motion to close this budget account.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101-2712 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR RHOADS SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
NDE GEAR UP – Budget Page K12ED-82 (Volume 1)
Budget Account 101-2678
Ms. Braun:
The subcommittee expressed concern with the way the department currently administers the Nevada Gaining Early Awareness and Readiness for Undergraduate Programs (GEAR UP). During the subcommittee hearings, it was noted that the GEAR UP program administered by the University of Nevada, Las Vegas’ (UNLV) Center for Academic Enrichment and Outreach may have developed a higher quality program than the program developed by the DOE. Upon review of additional information showing a comparison between the state GEAR UP program and the UNLV GEAR UP program, the subcommittee approved the continuation and administration of the state GEAR UP program through the department. However, the subcommittee requested a Letter of Intent be sent to the department asking the agency to work with the UNLV GEAR UP program to develop a plan that would utilize the state GEAR UP program funds more efficiently and effectively. The Letter of Intent to the department will require the submission of the plan to the IFC on or before July 1, 2003.
Senator Raggio:
The concept of the GEAR UP program is excellent. The goal of the program is to prepare students academically to enter higher education institutions. I will accept a motion to close this budget account.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101-2678 AS RECOMMENDED BY THE SUBCOMMITTEE AND WITH APPROVAL OF A LETTER OF INTENT TO THE DOE TO DEVELOP A PLAN IN COOPERATION WITH THE UNLV GEAR UP PROGRAM AND SUBMIT THE PLAN TO THE IFC ON OR BEFORE JULY 1, 2003.
SENATOR CEGAVSKE SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Senator Raggio:
Are there any other education budget accounts?
Education Support Services – Budget Page K12ED-39 (Volume 1)
Budget Account 101-2720
Nutrition Education Programs – Budget Page K12ED-48 (Volume 1)
Budget Account 101-2691
Occupational Education – Budget Page K12ED-71 (Volume 1)
Budget Account 101-2676
NDE Continuing Education – Budget Page K12ED-75 (Volume 1)
Budget Account 101-2680
Ms. Braun:
The subcommittee reviewed the following accounts, which had no major closing issues. The list of budgets includes Education Support Services B/A 101-2720, Nutrition Education Programs, B/A 101-2691, Occupational Education, B/A 101‑2676, and NDE Continuing Education, B/A 101-2680. The subcommittee recommends these budget accounts be closed as recommended by the Governor, and with approval for staff to make technical adjustments.
Senator Raggio:
I will accept a motion to close these budget accounts.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNTS 101-2720, 101-2691, 101-2676, 101-2680 AS RECOMMENDED BY THE GOVERNOR AND WITH APPROVAL FOR STAFF TO MAKE TECHNICAL ADJUSTMENTS.
SENATOR CEGAVSKE SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Senator Rawson:
In response to an e-mail that criticized the wasting of education funds on nutrition programs, I would like to note the nutrition program has approximately $200,000 of General Fund support. The other $56 million designated for the program comes from pass-through federal funds.
Senator Raggio:
We will continue the remainder of the budget closings scheduled for this morning at 4 p.m. today. The meeting did not resume, therefore, was adjourned at 11:02 a.m.
RESPECTFULLY SUBMITTED:
Judy Coolbaugh,
Committee Secretary
APPROVED BY:
Senator William J. Raggio, Chairman
DATE: