MINUTES OF THE
SENATE Committee on Finance
Seventy-second Session
May 17, 2003
The Senate Committee on Finance was called to order by Chairman William J. Raggio at 8:18 a.m. on Saturday, May 17, 2003, in Room 2134 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. Exhibit B is the Attendance Roster. All exhibits are available and on file at the Research Library of the Legislative Counsel Bureau.
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
Steven J. Abba, Principal Deputy Fiscal Analyst
Rick Combs, Deputy Fiscal Analyst
Larry L. Peri, Senior Program Analyst
Jim Rodriguez, Program Analyst
Denise Davis, Committee Secretary
OTHERS PRESENT:
Marybel Batjer, Chief of Staff, Office of the Governor
John P. Comeaux, Director, Department of Administration
Gary L. Ghiggeri, Senate Fiscal Analyst, Fiscal Analysis Division, Legislative Counsel Bureau:
The first item is the amendment to Assembly Bill (A.B.) 353.
ASSEMBLY BILL 353 (1st Reprint): Makes various changes to provisions regarding University and Community College System of Nevada and Board of Regents of University of Nevada. (BDR 34-76)
Amendment No. 751 (Exhibit C) deletes Section 6, as requested.
Senator Raggio:
This bill concerns the composition of the university regents and the credit card policy. We considered the amendment yesterday; this is the corrected amendment.
Mr. Ghiggeri:
The amendment also includes the definition of commercial purposes.
SENATOR RAWSON MOVED TO AMEND AND DO PASS AS AMENDED A.B. 353 WITH AMENDMENT NO. 751.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Mr. Ghiggeri:
Several letters of correspondence have been distributed to the committee. The memorandum from program analyst Michael Chapman (Exhibit D) explains further adjustments made to the Desert Regional Center budget account, 101‑3279. When information was entered into the budget system, additional reductions were found; he wanted the committee to be aware of this development. The letter from the attorney general (Exhibit E) provides information regarding the plans and actions of the Office of the Attorney General. The memorandum from fiscal analyst Joyce Garrett (Exhibit F) answers questions asked by Senator Raggio regarding the Low Income Housing Trust Fund budget account, 101‑3838.
Senator Raggio:
Is this the low-income housing project in Las Vegas?
Mr. Ghiggeri:
Yes; you asked questions about it during the closing hearing.
BUILDINGS AND GROUNDS DIVISION
Buildings & Grounds - Budget Page ADMIN-59 (Volume 1)
Budget Account 710-1349
Rick Combs, Deputy Fiscal Analyst, Fiscal Analysis Division, Legislative Counsel Bureau:
My remarks are contained in “Joint Subcommittee on Higher Education and Capital Improvements Closing Report, Division of Buildings and Grounds and State Public Works Board” (Exhibit G. Original is on file in the Research Library.). Information regarding this budget account can be found on pages 1, 2, and 5 through 9.
The subcommittee concurs with the Governor’s recommendation to increase the monthly rental rate for state‑owned buildings to approximately $1.14 per square foot in fiscal year (FY) 2004 and $1.15 per square foot in FY 2005. The subcommittee also approves the Governor’s recommendation to use only one rental rate, regardless of the security provided for the building. The rental rate increase is largely due to increased costs for contract maintenance services and utility costs during the 2001-2003 biennium. Because of the expenditure increases, many of the building maintenance and renovation projects approved by the 71st Session have been deferred until the 2003-2005 biennium; this has also contributed to the rate increase.
The subcommittee has created a new category of expenditures that includes all expenditures directly related to the maintenance of buildings and grounds of state facilities. The new category will enable the division to better track the costs directly attributable to maintaining the state facilities that the division is responsible for.
E-730 Maintenance of Buildings and Grounds – Page ADMIN-65
The subcommittee concurs with the Governor’s recommendation to approve approximately $1.4 million in FY 2004 and $1.6 million in FY 2005 for building maintenance and renovation projects. A list and brief description of the projects recommended for the 2003-2005 biennium is included on page 9; most of these projects were approved by the 71st Session.
Senator Raggio:
Most of the items appear to be deferred maintenance items.
Mr. Combs:
That is correct.
SENATOR RHOADS MOVED TO CLOSE BUDGET ACCOUNT 710-1349 AS RECOMMENDED BY THE SUBCOMMITTEE ON HIGHER EDUCATION AND CAPITAL IMPROVEMENTS.
SENATOR RAWSON SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Clear Creek Youth Center - Budget Page ADMIN-73 (Volume 1)
Budget Account 101-1353
Mr. Combs:
Information regarding this budget account can be found on pages 2, 10, and 11. During the subcommittee hearings, the division indicated it was in negotiations with the Future Farmers of America (FFA) to allow the FFA to take over the operations and maintenance of this facility. The division later indicated the Governor directed it to begin the process of selling the property. The subcommittee believes the property has significant value to the State; it voted to close the budget as recommended by the Governor, including funding for one maintenance repair specialist position. The subcommittee also recommends issuing a Letter of Intent indicating the subcommittee’s opinion that the facility be retained as a state facility.
The subcommittee has directed the division to provide staff with a list of any additional repair and maintenance projects for consideration when the capital improvement program budget is closed. This list will be in addition to approximately $1.6 million of deferred maintenance projects approved by the 71st Session; this maintenance has been held pending resolution of the facility’s fate. The subcommittee’s intent is to complete the deferred maintenance and present all necessary items for consideration when the budget is closed.
Senator Raggio:
The subcommittee feels that, once this property is sold, it is irretrievable; it feels every effort should be made at this time to retain the property as a state facility and perform the maintenance necessary to keep the facility useful. This includes keeping one maintenance person on the property.
Senator Rhoads:
Does FFA still have a role in this facility?
Senator Raggio:
It could; the State is going to continue with the property. I guess it is still feasible for the group to continue to negotiate, if it wants to. If the State sells the property, there will be nothing to negotiate for.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101-1353 AS RECOMMENDED BY THE SUBCOMMITTEE ON HIGHER EDUCATION AND CAPITAL IMPROVEMENTS, INCLUDING ISSUING A LETTER OF INTENT.
SENATOR RHOADS SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Marlette Lake - Budget Page ADMIN-77 (Volume 1)
Budget Account 712-1366
Mr. Combs:
Information regarding this budget account can be found on pages 2, 3, and 12. The subcommittee has voted to approve the Governor’s recommendation for this budget.
E-720 New Equipment – Page ADMIN-79
Enhancement unit 720 (E-720) recommends $17,000 in the first year of the biennium for the purchase of two snowmobiles; they will be used during the winter to maintain the system and properly regulate water flow from the lake.
SENATOR COFFIN MOVED TO CLOSE BUDGET ACCOUNT 712-1366 AS RECOMMENDED BY THE SUBCOMMITTEE ON HIGHER EDUCATION AND CAPITAL IMPROVEMENTS.
SENATOR RAWSON SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
STATE PUBLIC WORKS BOARD
Mr. Combs:
The subcommittee approves the transfer of an administrative assistant IV position from the inspection account, 401-1562, to the administration account, 101-1560; decision unit E-900 in both budget accounts is in regard to this transfer. The subcommittee also approves the transfer of two administrative assistant III positions from the administration account to the inspection account; decision units E-901 and E-902 in both budget accounts are in regard to these transfers. The net impact is one new position in the inspection account, and the reduction of one position in the administration account.
Public Works Administration - Budget Page ADMIN-81 (Volume 1)
Budget Account 101-1560
Mr. Combs:
Information regarding this budget account can be found on pages 3, 13, 14, and 15. The subcommittee has voted to continue the facility condition analysis program in the base budget; it also approves a Letter of Intent directing the manager of the board to develop performance indicators for the program, and to include them in the budget for the 2005-2007 biennium. During the 71st Session, the subcommittee considered eliminating the program because audits were not completed as promised; employees were also being used for functions other than the facility audit program. Rather than delete the program, the subcommittee directed the manager in 2001 to return in 2003 and indicate the benefits of the program. The subcommittee is satisfied that the program is operating as intended.
E-277 Working Environment & Wage – Page ADMIN-83
The subcommittee does not approve the Governor’s recommendation to provide $1719 in each year of the biennium for continuing education credits.
Senator Raggio:
The reason is we do not provide for those credits in other budgets; we are trying to be consistent.
SENATOR MATHEWS MOVED TO CLOSE BUDGET ACCOUNT 101-1560 AS RECOMMENDED BY THE SUBCOMMITTEE ON HIGHER EDUCATION AND CAPITAL IMPROVEMENTS.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Public Works Inspection - Budget Page ADMIN-87 (Volume 1)
Budget Account 101-1562
Mr. Combs:
Information regarding this budget account can be found on pages 4, and 16 through 19.
E-275 Working Environment & Wage – Page ADMIN-89
E-276 Working Environment & Wage – Page ADMIN-90
E-277 Working Environment & Wage – Page ADMIN-90
The subcommittee approves the Governor’s recommendation to reduce management and inspection fees by approximately $85,000 each fiscal year, and to replace those fees with $35,000 each fiscal year from inspections performed by the Buildings and Grounds Division at buildings leased by the State. These inspections are to ensure compliance with the Americans with Disabilities Act; they are currently performed on a contract basis. The State Public Works Board would prefer to perform the inspections for the Buildings and Grounds Division. There is also $50,000 in increased architectural and engineering fees paid to the board from capital improvement projects on which the board does in-house design work. The subcommittee does not approve the request to include an additional $163,300 each fiscal year for plan review fees. The subcommittee has decided the $136,670 included in the base budget is enough for in-house plan review services, based on the size of the capital improvement program and the fact it should be the major goal of the agency to complete the program as quickly as possible.
Senator Raggio:
Is this all interagency funding?
Mr. Combs:
Yes; the funding is from the capital improvement program or other projects, such as school district projects.
E-903 Transfer In From BA 1371 – Page ADMIN-94
The subcommittee approves the recommendation to transfer an accounting assistant I position from the Administrative Services Division to the Public Works Inspection account.
Senator Raggio:
Is this where the additional position shows up? Do we also delete a position from the other budget?
Mr. Combs:
In this account, a building construction inspector III position is eliminated because it has been vacant for more than 6 months, so there is a net effect of zero.
Senator Raggio:
Why is there an increase in the full-time equivalent (FTE) positions from 50 to 51?
Mr. Combs:
Two positions are transferred from Public Works Administration, budget account 101-1560, to this account; one position is transferred from this account to the Public Works Administration account. The net result is an increase of one position in the Public Works Inspection account, and a reduction of one position in the Public Works Administration account.
Senator Raggio:
The General Fund impact of the budgets we have discussed today from the State Public Works Board and the Division of Buildings and Grounds is shown in the table on page 4.
SENATOR COFFIN MOVED TO CLOSE BUDGET ACCOUNT 101-1562 AS RECOMMENDED BY THE SUBCOMMITTEE ON HIGHER EDUCATION AND CAPITAL IMPROVEMENTS.
SENATOR RAWSON SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
DEPARTMENT OF HUMAN RESOURCES
Steven J. Abba, Principal Deputy Fiscal Analyst, Fiscal Analysis Division, Legislative Counsel Bureau:
My remarks are contained in “Subcommittee on K-12/Human Resources Closing Report, Department of Human Resources, Welfare Division” (Exhibit H. Original is on file in the Research Library.), page 1.
The major fiscal issues addressed by the subcommittee for the Welfare Division include: the Governor’s recommendation for significant staffing increases, primarily to address caseload growth; the projected growth of Temporary Aid to Needy Families (TANF) caseloads, which is funded exclusively with State General Fund money; and the overallocation of TANF funds throughout the division’s various budgets.
The subcommittee is pleased to report that numerous recommended changes to the Executive Budget will provide significant savings to the General Fund. These adjustments include reducing the number of new positions recommended, reducing the projected growth in TANF caseloads to more realistic levels, and correcting the overallocation of TANF funds. In summary, the subcommittee’s recommendations will reduce the General Fund appropriation for the Welfare Division by $7,491,632 for FY 2004 and $10,985,896 for FY 2005, for a net reduction of $18,392,525 over the 2003-2005 biennium.
HR, Welfare Administration - Budget Page WELFARE-1 (Volume 2)
Budget Account 101-3228
Information regarding this budget account can be found on pages 2, and 7 through 11
M-200 Demographics/Caseload Changes – Page WELFARE-3
M-501 HIPAA-Health Insurance Portability – Page WELFARE-5
The Executive Budget recommends a total of 23 new positions over the 2003‑2005 biennium to support division administration, administrative services, program and field operations, personnel services, and information services. The subcommittee recommends approving 12 of the 23 new positions recommended by the Governor. The subcommittee’s recommendation to eliminate 11 positions takes into consideration the additional resources and support the division will receive with the 12 new positions that are recommended, new positions that would be helpful but not essential for the division’s day-to-day operations, and new information which does not fully justify the need for certain positions.
M-100 Inflation & Per Unit Adjustments – Page WELFARE-2
M-201 Demographics/Caseload Changes – Page WELFARE-3
E-301 Maximize Internet &Technology – Page WELFARE-6
The subcommittee also recommends a number of technical adjustments to the budget, including reduced Department of Information Technology facility charges, because charges are overstated; reduced costs for the electronic benefit transfer system, based on revised caseloads; and reduced Master Service Agreement contractors support for the Nevada operations multi‑automated data systems (NOMADS).
Senator Tiffany:
What specifically is the need for the 12 new positions in this administration account?
Mr. Abba:
The need is a result of a combination of things: growth in general; growth in the field services office, which requires a new personnel position in administration to deal with the new positions in the field services account; four new computer network technicians are going to be located in satellite and district offices of the division; and the division is understaffed in comparison to the total number of positions supported.
Senator Tiffany:
I am confused; it sounds like the positions are being added in the field services account and other budget accounts, but are being paid for through the administration budget.
Mr. Abba:
Even though a position is located in another office, such as a computer network technician in a district office, the position is “housed in” and funded through the administration budget.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101-3228 AS RECOMMENDED BY THE SUBCOMMITTEE ON K-12/HUMAN RESOURCES.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
HR, Welfare Field Services - Budget Page WELFARE-11 (Volume 2)
Budget Account 101-3233
Mr. Abba:
Information regarding this budget account can be found on pages 2 through 4, and 12 through 17.
M-200 Demographics/Caseload Changes – Page WELFARE-13
M-202 Demographics/Caseload Changes – Page WELFARE-13
E-425 Nevadans With Health Insurance – Page WELFARE-16
E-432 Nevadans With Health Insurance – Page WELFARE-16
E-600 Budget Reductions – Page WELFARE-17
The Executive Budget recommends a total of 255 new positions over the 2003‑2005 biennium, and the continuation of 84.5 new positions approved by the Interim Finance Committee (IFC) during the interim. The subcommittee is concerned that the new positions are phased in over the upcoming biennium; the total costs for these positions will not be realized until the 2005‑2007 biennium. More importantly, of the 107 new positions recommended for FY 2004, only 20 eligibility workers are recommended during the first 6 months of FY 2004. These 20 new eligibility workers will not effectively assist the division in addressing problems currently experienced with the timely processing of food stamp, Medicaid, and TANF applications; the inventory of pending applications; and performing timely redeterminations of individuals as required by the schedule. In addition, 65 of the new positions recommended are phased in to begin January 2005. The effective date of these positions will provide little opportunity to recruit, fill the positions, and train the individuals hired to address the caseload problems before the end of FY 2005.
In light of these concerns, the subcommittee recommends a staffing alternative that eliminates 125.5 of the 255 new positions recommended by the Governor. The staffing alternative will allow the division to accelerate hiring in FY 2004 to address the caseload processing concerns previously noted. The positions will be phased in to coincide with the division’s training schedule; this will allow groups of at least 20 eligibility workers to be trained for several months, then moved out to the field services offices. The subcommittee also recommends approving funds for a new district office in Las Vegas to house the new positions, as well as existing staff that may be relocated to it, in lieu of the two new district offices recommended in the Executive Budget.
The subcommittee’s staffing alternative will allow the division to fill 26.5 eligibility worker positions that are currently frozen, and the rollout schedule for new eligibility worker positions will provide 79 eligibility worker positions to address caseloads within the first 6 months of FY 2004. Compared to the staffing proposal recommended in the Executive Budget, the subcommittee’s staffing alternative will save approximately $1.7 million in General Fund money over the 2003‑2005 biennium. The recommendation to eliminate 125.5 new positions will save approximately $11 million in total salary costs for the 2005‑2007 biennium, as compared to the total salary costs for all 255 new positions recommended in the Executive Budget.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101-3233 AS RECOMMENDED BY THE SUBCOMMITTEE ON K-12/HUMAN RESOURCES.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS CEGAVSKE AND TIFFANY VOTED NO.)
*****
HR, Welfare/TANF - Budget Page WELFARE-20 (Volume 2)
Budget Account 101-3230
Mr. Abba:
Information regarding this budget account can be found on pages 4, 5, and 18 through 22. Since July 2002, TANF caseloads have declined; the high point was over 35,100 recipients per month in May 2002. The Executive Budget recommends growth in TANF caseloads that appears to be unrealistic based on current caseload trends. During review of the TANF budget, the subcommittee expressed concern that the division’s projections do not fully take into consideration the decline that TANF caseloads have experienced over the last 9 months, and that the number of caseloads appears to be stabilizing.
The subcommittee has reviewed a number of caseload options and recommends funding that will support TANF caseloads of 32,430 average monthly recipients for FY 2004 and 35,430 average monthly recipients for FY 2005. This caseload option is approximately 7400 average monthly recipients lower than the TANF caseloads recommended in the Executive Budget for FY 2004, and 10,825 average monthly recipients lower for FY 2005. The subcommittee’s recommended TANF caseload provides for a margin of caseload growth if the economy deteriorates and caseloads increase. The subcommittee’s recommended caseload reductions will save approximately $13.8 million in State General Fund money over the 2003-2005 biennium. The savings would have been greater, but the Executive Budget overallocated TANF funds by approximately $6.5 million in each fiscal year of the 2003-2005 biennium. The additional savings that would have been generated from the subcommittee’s recommended caseload is needed to offset the overallocation of TANF funds.
The Welfare Division has implemented a number of budget reductions during the current biennium; the Executive Budget, as well as the subcommittee, does not recommend replenishing any of the TANF funds that were reduced.
Senator Tiffany:
Is the TANF reduction in comparison to numbers after September 11, 2001? The increase in TANF was not exponential until after September 11.
Mr. Abba:
The TANF caseloads were increasing at the end of the 71st Session, before September 11; the caseloads increased significantly after that. Caseloads have decreased to approximately 30,100 average monthly recipients. The projections in the Executive Budget have caseloads in FY 2004 of over 41,000, and up to 46,000 in FY 2005; this is why the subcommittee recommends substantially reducing the caseload projections. There is a potential for a slight increase.
Senator Tiffany:
Did you take the “spike” out of the numbers?
Mr. Abba:
Yes, the spike was removed. A much more gradual increase is anticipated.
Senator Tiffany:
What is the relationship between the TANF requirements and qualifying for welfare benefits? Are the requirements usually similar? It appears we are adding a lot of eligibility workers and staffing for growth, as opposed to preparing for gradual increases.
Mr. Abba:
Temporary Aid to Needy Families is a welfare cash assistance benefit. Food stamp caseloads have not decreased like TANF caseloads have; major problems with caseload processing are being experienced in the Food Stamp Program and in Medicaid. Food stamp caseloads are well over 105,000 recipients per month.
During the 71st Session, I believe we were looking at approximately 60,000 average monthly recipients.
Senator Tiffany:
Is the problem mainly in the Food Stamp Program, with a smaller problem in Medicaid?
Mr. Abba:
Medicaid is also increasing; during the last biennium, there were 110,000 to 115,000 average monthly recipients. There are currently about 167,000 average monthly recipients, and increases are projected.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101-3230 AS RECOMMENDED BY THE SUBCOMMITTEE ON K-12/HUMAN RESOURCES.
SENATOR RHOADS SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
HR, Child Support Enforcement Program - Budget Page WELFARE-25 (Volume 2)
Budget Account 101-3238
Mr. Abba:
Information regarding this budget account can be found on pages 5, and 23 through 26. The subcommittee recommends approving the Child Support Enforcement Program budget as recommended by the Governor, with numerous technical adjustments.
M-200 Demographics/Caseload Changes – Page WELFARE-26
The subcommittee concurs with the Governor’s recommendation for nine new positions; the positions will be supported entirely with the state share of collections and matching federal funds.
E-450 Reward Self-Sufficiency – Page WELFARE-28
The Child Support Enforcement Program budget includes funding from a new revenue source to support the program in future years. The new revenue source will be generated from fees collected through wage assignments on employees paying child support. The $2 fee will be split evenly between the State and the county district attorneys. Senate Bill (S.B.) 186 has been introduced and passed in the Senate to enact this change; it is currently under review in the Assembly Committee on Judiciary.
SENATE BILL 186 (1st Reprint): Imposes fee upon obligor of child support who is subject to withholding of income by his employer. (BDR 3-446)
The subcommittee also recommends allowing the division to retain a $750,000 reserve each year in the Child Support Enforcement Program budget for cash flow purposes.
Senator Raggio:
Is this a processing fee? Is the fee being increased from $3 to $5?
Mr. Abba:
That is correct; employers can currently assess employees $3 for handling the processing of wage withholding for child support. The fee will be increased by $2; the State will retain $1 and the local district attorneys participating in the program will receive $1.
Senator Raggio:
Is closing this budget contingent on the passage of S.B. 186?
Mr. Abba:
If S.B. 186 does not pass, the division will have sufficient funding for the 2003‑2005 biennium; the $750,000 reserve will not materialize.
Senator Raggio:
Will the reserve be the only item affected?
Mr. Abba:
Yes, the reserve will be affected.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101-3238 AS RECOMMENDED BY THE SUBCOMMITTEE ON K-12/HUMAN RESOURCES.
SENATOR RHOADS SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
HR, Child Assistance and Development - Budget Page WELFARE-37 (Volume 2)
Budget Account 101-3267
Mr. Abba:
Information regarding this budget account can be found on pages 6, and 30 through 33. The subcommittee recommends approving the Child Assistance and Development budget with numerous adjustments, primarily to correct an error in the Executive Budget; it overstates the availability of federal child care funds by approximately $9.1 million for each fiscal year of the 2003‑2005 biennium. The Welfare Division is considering several measures designed to remain within the federal child care allocations projected for the upcoming biennium, and to continue the availability of child care services to the most needy clients, referred to as the “mandatory population.” The mandatory population includes current TANF recipients enrolled in various work‑participation activities, as mandated by federal welfare reform, and former TANF recipients who become ineligible for cash assistance as a result of earned income. The measures the Welfare Division is considering include changes that will tighten eligibility, and assessing minimum co‑payments for clients who currently are not required to make co‑payments.
The Welfare Division anticipates having sufficient child care funding for the child care needs of the mandatory population for the upcoming biennium. However, the committee should note there will likely be a significant increase in the waiting list for the non-mandatory populations.
Senator Coffin:
Is this anticipated change for the non-mandatory populations due to the fact that they fall just above the income threshold to qualify as part of the mandatory population?
Mr. Abba:
That is part of the expected increase. The division’s focus has always been to take care of the mandatory population first, which is people currently receiving TANF who are enrolled in work-participation activities, and people no longer receiving TANF because they have a job. The latter group is assisted for a year to transition off of cash assistance, and they pay a co-payment for child care, depending on income.
The two groups affected by these proposals, and the areas where waiting lists will grow, are the “at-risk” and the “discretionary” groups. The at-risk group is individuals who have transitioned off of TANF, or are at risk of returning to TANF; individuals in the discretionary group have higher income levels, but are still relatively poor.
Senator Coffin:
Because we underestimated at the budget level, were the federal funds underestimated?
Mr. Abba:
During the current biennium, there was an overallocation of funds in the Executive Budget, but there was a significant “ramp up,” primarily because of TANF caseloads going up to increase services. Other issues include whether child care is paid per day or per week in southern Nevada. There is an accelerated level of spending of child care money during FY 2003 that possibly should have been scaled back to accommodate the needs of the upcoming biennium.
Senator Coffin:
Is there some point during that 1-year time period where, if a person earns just a bit more than the eligibility requirements, he or she is out of the program? Is there an incentive to return to the program, or is a person prohibited from rejoining the program once he or she is out of it?
Mr. Abba:
If a person exceeds a certain income level, which I believe is 185 percent of need, not 185 percent of poverty, that person does not qualify for any of these programs. If an individual from the mandatory population earns more income, but still less than 185 percent of need, and moves to the at-risk group or discretionary group, he or she will not likely receive services in the 2003‑2005 biennium.
Senator Coffin:
If we want to correct that error, would we need to find about $19 million in General Fund money?
Mr. Abba:
That is one solution. There is approximately $18 million of General Fund money in the child care budget for the biennium, and over $30 million in federal funds; there is a possibility, at the federal level, that additional child care money might become available. The United States Congress is considering reauthorizing welfare, and a number of discussions are taking place regarding increasing child care.
Senator Tiffany:
When I worked in the Welfare to Work program, we sent the people who were referred to us to the Economic Opportunity Board of Clark County for child care. I believe the welfare groups can also use this resource. Some people are concerned because they were “kicked off” this service; the Economic Opportunity Board of Clark County ran short of federal funding the last year of the biennium, I believe. What do you know about this?
Mr. Abba:
The Economic Opportunity Board of Clark County and the Children’s Cabinet are the primary programs that federal money is funneled through to different areas of the state. The State Welfare Division contracts with the entities to provide for the administration of child care services; they do the eligibility work and disperse the money.
Senator Tiffany:
Do they now have a shortfall because of a federal funding problem?
Mr. Abba:
There is a defined amount of child care money; the Children’s Cabinet and the Economic Opportunity Board of Clark County will have a certain amount of money available to disperse to clients for the upcoming biennium, based on the projected amount of child care money.
Senator Tiffany:
Did they run short of money?
Mr. Abba:
They are able to provide for the mandatory population, but it does not appear they will be able to provide for the number of at-risk and discretionary individuals currently covered, or new recipients of child care.
Senator Tiffany:
As I recall, the problem was the program ran short of money and eligibility was changed. Some of the people who were put to work were “kicked off” the child care program.
Mr. Abba:
As I understand the situation, child care is paid on a daily or a weekly basis; the weekly stipend is less than the daily stipend. The division changed its policy in an attempt to promote access to child care providers, and to provide weekly stipends equal to daily stipends. During the interim, that was discontinued for budget savings. A number of child care providers attended an IFC hearing and voiced their concerns; they viewed the change as a reimbursement reduction. The clients using the providers could still use the providers and receive child care funding, but the clients might have to pay more out of pocket.
Senator Tiffany:
What do we need to do in this budget to ensure program participants receive child care? Do we have to appropriate more money?
Mr. Abba:
There is sufficient money in the recommended budget, including necessary adjustments, to provide for the mandatory population. There will be a growing waiting list for the at-risk and discretionary populations.
Senator Tiffany:
This program is very important; to enable women to work, they must have child care.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101-3267 AS RECOMMENDED BY THE SUBCOMMITTEE ON K-12/HUMAN RESOURCES.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
HR, Child Support Federal Reimbursement - Budget Page WELFARE-32
(Volume 2) Budget Account 101-3239
Mr. Abba:
Information regarding this budget account can be found on pages 6 and 27.
HR, Assistance to Aged and Blind - Budget Page WELFARE-35 (Volume 2)
Budget Account 101-3232
Information regarding this budget account can be found on pages 6, 28, and 29.
HR, Energy Assistance - Welfare - Budget Page WELFARE-42 (Volume 2)
Budget Account 101-4862
Information regarding this budget account can be found on pages 6, and 34 through 36.
The subcommittee recommends closing these three budget accounts as recommended by the Governor, with minor technical adjustments.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNTS 101-3239, 101-3232, AND 101-4862 AS RECOMMENDED BY THE SUBCOMMITTEE ON K-12/HUMAN RESOURCES.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Mr. Abba:
My remarks are contained in “Subcommittee on K-12/Human Resources Closing Report, Division of Health Care Financing and Policy” (Exhibit I. Original is on file in the Research Library.), page 1.
The major fiscal issues addressed by the subcommittee for the upcoming biennium for the Division of Health Care Financing and Policy include Medicaid caseloads and costs that were projected again in April for the upcoming biennium and are significantly higher than recommended in the Executive Budget; the budget reduction/cost saving initiatives recommended by the Governor; the recommendation to establish a new program, Health Insurance for Work Advancement (HIWA), which will allow employed disabled individuals to obtain Medicaid coverage through a buy-in mechanism; the elimination of the Children’s Health Assurance Program (CHAP) assets test; and the Governor’s recommendation to continue the expansion of Medicaid waivers.
The subcommittee recommends numerous changes to the Executive Budget that will provide for General Fund savings of $9,723,742 in FY 2004 and $7,446,421 in FY 2005, for a net reduction of $17,170,163 over the 2003‑2005 biennium.
Health Care Financing & Policy - Budget Page HCF & P-1 (Volume 2)
Budget Account 101-3158
Information regarding this budget account can be found on pages 2, and 9 through 11.
M-501 HIPAA-Health Insurance Portability – Page HCF & P-4
The subcommittee recommends approving one new position to serve as the division’s privacy officer, to ensure staff and the division comply with privacy procedures required by the Health Insurance Portability and Accountability Act (HIPAA). The subcommittee’s intent is for this position to be available to support sister agencies, such as the Aging Services Division, with their HIPAA compliance activities.
Senator Raggio:
Is this one of the four HIPAA positions approved of the original eight requested?
Mr. Abba:
Yes, it is.
E-900 Trf Accounting Staff From BA 3178-Check Up – Page HCF & P-6
E-901 Trf IT Staff From BA 3178-Check Up – Page HCF & P-6
E-902 Trf Clerical/Admin Support From BA 3243-Medicaid – Page HCF & P-7
E-903 Trf Compliance and Policy Unit From BA 3243-Medicaid –
Page HCF & P-7
E-905 Trf IT Staff From BA 3243-Medicaid – Page HCF & P-8
E-906 Trf Provider Services From BA 3243-Medicaid – Page HCF & P-9
E-909 Correct Cost Allocation to Funding Sources – Page HCF & P-9
The subcommittee recommends approving the reorganization proposed in the Executive Budget that involves the transfer of existing positions from the Medicaid and Nevada Check Up programs to this administration budget. The reorganization will assist the division in implementing a new cost-allocation plan, and will save over $300,000 in General Fund money in each fiscal year of the upcoming biennium.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101-3158 AS RECOMMENDED BY THE SUBCOMMITTEE ON K-12/HUMAN RESOURCES.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
HR, HCF&P, Nevada Medicaid, Title XIX - Budget Page HCF & P-11 (Volume 2)
Budget Account 101-3243
Mr. Abba:
Information regarding this budget account can be found on pages 2 through 6, and 12 through 27. At the division’s last budget hearing, it presented information regarding the projected Medicaid expenditures for the upcoming biennium, based on the “rerunning” of the Medicaid payment projection (MPP) model. According to the latest MPP, Medicaid expenditures are projected to increase by approximately $17 million for FY 2004, and by $37 million for FY 2005. The General Fund portion of the projected increase is approximately $24.1 million over the 2003-2005 biennium. The division has identified three primary reasons for the projected increase. First, health maintenance organization providers participating in the managed care program will receive an actuarially determined rate increase of 6.9 percent, effective July 2003, which is not built into the Executive Budget. Second, the medical expenses for the noncitizen population were inadvertently left out of the Executive Budget; this is a small but costly population. Third, the caseload and “cost per eligible” for the CHAP population has increased.
M-200 Demographics/Caseload Changes – Page HCF & P-14
M-501 HIPAA-Health Insurance Portability – Page HCF & P-16
To counterbalance the projected increase in Medicaid expenditures, the subcommittee recommends numerous offsets that will eliminate the budget impact from the MPP analysis and will fund the program expenditures that were not included in the Executive Budget. The offsets include a reduction in the amount of funding that is budgeted for FY 2004 to reduce claims inventory, to ensure the smooth transition to the Medicaid management information system (MMIS) system. The reduction in claims inventory is occurring at a much more accelerated rate during the current fiscal year than was anticipated, which provides for the savings in FY 2004. The reduction the subcommittee recommends will not jeopardize the implementation of the MMIS system, which is scheduled for October 2003. Additional savings will be realized from the reduction in TANF caseloads; this issue was discussed during the TANF budget. The subcommittee also recommends approving numerous reductions to the MPP, based on revised assumptions and technical corrections due to changes in the federal match participation rate.
The subcommittee recommends funding that will support Medicaid caseloads at 179,535 average monthly recipients for FY 2004 and 196,947 average monthly recipients for FY 2005. These recommended caseloads are approximately 5100 average monthly recipients lower than the Medicaid caseload recommended in the Executive Budget for FY 2004, and approximately 6800 average monthly recipients lower for FY 2005. The division concurs with the subcommittee’s recommendation for caseload growth.
E-600 Budget Reductions – Page HCF & P-23
E-601 Cost Containment Initiatives – Page HCF & P-23
The subcommittee recommends approving the budget reduction and cost saving initiatives proposed by the Governor for the 2003-2005 biennium. The administration has requested a number of changes to the budget reduction and cost saving initiatives that reduce the amount of savings that will be realized over the upcoming biennium. The estimated savings in General Fund money from these initiatives is reduced from $18.9 million to $14.9 million in FY 2004, and from $20.5 million to $18.5 million in FY 2005; this is a net reduction of $6 million in the amount of savings estimated over the upcoming biennium, compared to amounts in the Executive Budget. State General Fund money will have to make up for this reduction in anticipated savings.
Several of the budget reduction and cost saving initiatives in the Executive Budget have already been implemented, and the subcommittee recommends their continuation for the upcoming biennium; these include managed utilization of certain prescription drugs and the reduction in pharmacy reimbursement. The new recommended initiatives include the implementation of a preferred drug list, the managed utilization of personal care aides, the implementation of maximum allowable cost pricing for generic prescription drugs, and changing the reimbursement methodology for physician groups.
E-425 Nevadans With Health Insurance – Page HCF & P-18
The subcommittee recommends approving the new HIWA program; it will allow employed disabled individuals to obtain Medicaid coverage through a buy-in mechanism. Due to technology issues, the HIWA program cannot be implemented in October, as recommended in the Executive Budget. The subcommittee recommends funding to implement the HIWA program beginning in July 2004.
E-426 Nevadans With Health Insurance – Page HCF & P-19
The subcommittee concurs with the Governor’s proposal to ensure there is sufficient funding in the Medicaid budget when a county is unable to meet its financial obligation under the county match program. The proposal is for the State to pay for long-term care expenditures, regardless of the county’s responsibility for payment, if that county has collected and spent up to 8 cents of property tax proceeds for long-term care expenditures under the county match program. This proposal will especially help rural counties that historically experience problems meeting their long-term care obligations.
Senator Raggio:
To obtain the federal money, do all counties have to participate?
Mr. Abba:
Yes, they do.
Senator Raggio:
Does this proposal require the counties to maximize their efforts in order to obtain subsidies?
Mr. Abba:
That is correct.
E-432 Nevadans With Health Insurance – Page HCF & P-19
The subcommittee does not recommend approving the elimination of the CHAP assets test for the 2003-2005 biennium; the CHAP assets test is an existing eligibility requirement for the Medicaid program. Eliminating the CHAP assets test is projected to significantly increase caseloads and costs. Not approving the elimination of the CHAP assets test will save approximately $3.9 million in General Fund money over the upcoming biennium.
M-592 Welfare Omnibus Budget Reconciliation Act – Page HCF & P-17
E-455 Reward Self-Sufficiency – Page HCF & P-21
E-456 Reward Self-Sufficiency – Page HCF & P-21
E-457 Reward Self-Sufficiency – Page HCF & P-22
The subcommittee recommends funding to expand several existing Medicaid waivers by adding new slots over the 2003-2005 biennium. The subcommittee recommends expanding the community home-based initiative waiver, the adult group care waiver, and the physically disabled waiver. The expansion of waiver slots will address population growth, as well as projected waiting lists; it will also address the State’s efforts to comply with the Olmstead decision regarding the Americans with Disabilities Act. The expansion of the adult group care waiver will provide for additional levels of care in a group care setting, and allow for waiver services to be provided in an assisted-living model.
M-101 Inflation – Page HCF & P-14
E-350 Service at Level Closest to People – Page HCF & P-17
E-351 Service at Level Closest to People – Page HCF & P-18
The subcommittee recommends mandatory rate increases for pharmacy providers, and discretionary rate increases for a small number of critical providers and services, including therapy services, transportation providers, air ambulance providers, and orthodontia and dental services. The rate increases for dental services are designed to improve access to dental care for children.
Senator Raggio:
Do both houses of the subcommittee recommend not approving the elimination of the CHAP assets test?
Mr. Abba:
The Senate members of the subcommittee recommend not approving the elimination of the CHAP assets test; the Assembly members of the subcommittee recommend delaying the start date until July 2004.
Senator Raggio:
How long will the CHAP assets test continue under the Assembly’s plan?
Mr. Abba:
Until July 2004.
Senator Raggio:
Does the Senate subcommittee agree with the Governor’s recommendation to eliminate the CHAP assets test?
Mr. Abba:
No, the Senate subcommittee members approve the continuation of current eligibility criteria, including an assets test.
Senator Raggio:
Are there any other areas in this budget that the two houses do not agree on?
Mr. Abba:
No, this is the only area.
Senator Mathews:
I notice representatives from the Governor’s office are shaking their heads in disagreement with the explanation. Could we hear from them?
Marybel Batjer, Chief of Staff, Office of the Governor:
In listening to the conversation, it sounds as if you said the Governor’s recommended budget does not support elimination of the assets test.
Senator Raggio:
No, the Governor’s recommendation is to eliminate the CHAP assets test.
Ms. Batjer:
That is correct.
Senator Raggio:
The Assembly subcommittee members recommend retaining the CHAP assets test until July 2004; then it will be eliminated. The Senate subcommittee members recommend retaining the CHAP assets test. Is that correct?
Mr. Abba:
That is correct.
Senator Raggio:
My understanding is the Governor wishes to eliminate the assets test.
Ms. Batjer:
Yes, for the entire 2003-2005 biennium.
Senator Raggio:
What is the cost for this?
Mr. Abba:
The primary costs are found in the Medicaid budget; it is roughly $4.5 million. There are other costs when caseloads are increased, such as additional eligibility workers; there is a contingent of 13 eligibility workers in the field services budget recommended for the additional caseloads. There is a minimal amount of savings in the Nevada Check Up program because it is anticipated that individuals will migrate from Check Up to Medicaid. If the CHAP assets test is retained, when you consider all the budgets involved, the net reduction in General Fund money is about $3.9 million over the biennium.
Senator Raggio:
Is that all General Fund savings?
Mr. Abba:
Yes, it is.
Senator Raggio:
If we do not follow the Governor’s recommendation to eliminate the assets test, will almost $4 million in General Fund money be saved?
Mr. Abba:
That is correct.
Senator Raggio:
If we concur with the Assembly subcommittee members’ recommendation, do we save half that amount?
Mr. Abba:
Yes, roughly half will be saved.
Senator Raggio:
By following the Assembly subcommittee’s recommendation, the assets test will not be eliminated until July 2004; that might be prudent, so we can be in agreement on this issue.
Senator Coffin:
Why did the Assembly subcommittee decide to do this in a year? This will begin during the interim; we will be unable to act. It seems to me this is a policy decision; if we are going to pay for 1 year, we should pay for 2 years.
Senator Rawson:
I think this is a compromise I proposed.
Senator Raggio:
The result is, things will continue as they are until July 1, 2004; after that date, the CHAP assets test will not be used as an eligibility requirement.
Senator Rawson:
I think the Assembly subcommittee members are also willing to delay the “ramp up” of the positions; if this is phased in, there will be a bit of a lag.
Mr. Abba:
For a second year in the Medicaid budget, the General Fund cost is $1,556,000; this is in lieu of a full year of operation, which costs roughly $2.8 million. I indicated there are 13 positions in the Welfare Field Services budget; 7 of those positions will be eliminated.
Senator Raggio:
Is this if the elimination of the assets test is phased in during July 2004?
Mr. Abba:
Yes; I believe that adds about $100,000 in General Fund money, so the cost will be roughly $1,656,000.
Senator Raggio:
I suggest we concur with the Assembly subcommittee’s recommendation to eliminate the CHAP assets test in July 2004; otherwise, we will adopt the Senate subcommittee’s recommendations.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101-3243 AS RECOMMENDED BY THE SUBCOMMITTEE ON K-12/HUMAN RESOURCES, AND TO ELIMINATE THE CHILDREN’S HEALTH ASSURANCE PROGRAM ASSETS TEST EFFECTIVE JULY 1, 2004.
SENATOR MATHEWS SECONDED THE MOTION.
Senator Mathews:
Do federal dollars follow this?
Mr. Abba:
Yes, they do.
Senator Mathews:
Are they matching dollars?
Mr. Abba:
It is actually more than 1-to-1.
Senator Mathews:
Are we going to lose federal money if we do not do something with this?
Mr. Abba:
You have to come up with the State money first to get the federal money, the Title XIX money.
THE MOTION CARRIED. (SENATORS CEGAVSKE AND TIFFANY VOTED NO.)
*****
Senator Coffin:
I have another question in regard to Medicaid. Does this budget include reimbursements to physicians who are pediatric specialists?
Mr. Abba:
Yes, it does.
Senator Coffin:
I wanted to check on the news story reporting that; I do not think the subcommittee realized until they heard it in the news that the State will lose some specialists. I think the average pediatrician is fine, but not the specialists
Senator Rawson:
I think Mr. Duarte, the administrator of the Division of Health Care Financing and Policy, testified that he will be able to deal with that issue; he will protect the interests of the pediatric physicians because so much concern has been expressed about that issue. He thinks he can take care of it with the funding he has now.
HR, HCF&P, Nevada Check-Up Program - Budget Page HCF & P-31 (Volume 2)
Budget Account 101-3178
Mr. Abba:
Information regarding this budget account can be found on pages 6, 7, and 28 through 31.
E-425 Nevadans With Health Insurance – Page HCF & P-33
The subcommittee recommends approving funds to allow enrollment in the Nevada Check Up program to increase to 27,532 children per month in FY 2004 and 31,023 children per month in FY 2005. The enrollment growth recommended by the subcommittee is lower than the level of growth recommended in the Executive Budget, but it is based on more recent projections. The lower level of enrollment will save approximately $1.24 million in General Fund money over the 2003-2005 biennium.
The subcommittee also recommends increasing the quarterly premium assessed to families who have children enrolled in the program. The increase ranges from $5 to $20, depending on the family’s income level. The quarterly premiums that families currently pay have not been increased since the inception of the program in 1998.
E-600 Budget Reductions – Page HCF & P-34
The subcommittee recommends approving the Governor’s recommendation to eliminate the reimbursement differential paid to managed care providers participating in the Nevada Check Up and Medicaid programs. The savings recommended by the subcommittee are greater than the amounts included in the Executive Budget; the subcommittee’s savings are based on more recent information received from the division’s actuary. This action will provide for additional savings to the General Fund of $888,000 in FY 2004 and $1.1 million in FY 2005.
Senator Raggio:
Staff is indicating that we need to make an adjustment in this budget account, based on our action in the Medicaid budget.
Mr. Abba:
That is correct; E-432 is the “savings module” for caseloads migrating from Nevada Check Up to Medicaid if the CHAP assets test is eliminated. The savings will be less because the assets test is eliminated only for 1 year of the biennium.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101-3178 AS RECOMMENDED BY THE SUBCOMMITTEE ON K-12/HUMAN RESOURCES WITH AUTHORITY FOR STAFF TO MAKE TECHNICAL ADJUSTMENTS.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS CEGAVSKE AND TIFFANY VOTED NO.)
*****
HCF&P Intergovernmental Transfer Program - Budget Page HCF & P-38
(Volume 2) Budget Account 101-3157
Mr. Abba:
Information regarding this budget account can be found on pages 7, 8, and 32 through 34. The subcommittee recommends approving the intergovernmental transfer (IGT) program as proposed in the Executive Budget. The IGT program will generate a benefit to the State of approximately $17.5 million in FY 2004 and approximately $18.2 million in FY 2005. The public hospitals and counties that participate in the program will receive approximately $20 million in additional funds for each fiscal year of the 2003‑2005 biennium in the form of disproportionate share payments from the Medicaid program.
The subcommittee recommends several adjustments to the IGT budget to establish the revenue and expenditure authority to operate the upper payment limit (UPL) program for the upcoming biennium. The UPL program was approved by the IFC at the February 2003 meeting; it provides supplemental payments to qualifying hospitals. The UPL program will provide the State with a net benefit of approximately $4.9 million in FY 2004 and $6.2 million in FY 2005. The net benefit the State will accrue from the UPL program is not included in the Executive Budget. In light of this, the subcommittee recommends additional transfers from the IGT budget to the Medicaid budget in the amount of $5 million for FY 2004 and $6 million for FY 2005. The additional IGT transfers will be used as the State match in the Medicaid budget, and will reduce State General Fund money by the amount of the additional transfers. The subcommittee’s recommendation will leave the IGT budget with a sufficient reserve to maintain cash flow for the 2003-2005 biennium.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101-3157 AS RECOMMENDED BY THE SUBCOMMITTEE ON K-12/HUMAN RESOURCES.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR RAGGIO ABSTAINED FROM THE VOTE.)
*****
DEPARTMENT OF INFORMATION TECHNOLOGY
Jim Rodriguez, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau:
My remarks are contained in “Joint Subcommittee on General Government Closing Report, Department of Information Technology” (Exhibit J. Original is on file in the Research Library.), page 1. The joint subcommittee on General Government has completed its review of the budgets for the Department of Information Technology (DoIT); the closing actions have resulted in an overall reduction in DoIT expenditures of $1,865,236 in FY 2003‑2004 and $2,391,781 in FY 2004-2005. Breakdowns of these amounts can be found on page 7. Based on information provided by the department indicating that approximately 50 percent of the revenue received from State agencies for DoIT services is General Fund money, this would translate into an estimated General Fund savings of approximately $2.1 million over the 2003‑2005 biennium, when compared to the Governor’s recommended budget.
DoIT Director’s Office - Budget Page DOIT-1 (Volume 1)
Budget Account 721-1373
Information regarding this budget account can be found on pages 1 through 3, and 8 through 15 of the closing document. The subcommittee concurs with the Governor’s recommendation to create two new assessments for state agencies that access DoIT services. The subcommittee recommends the creation of a new common enterprise access assessment that will allocate the department’s cost associated with providing and maintaining the State’s Internet portal and data communications backbone infrastructure for all state agencies under the oversight authority of DoIT.
E-300 Maximize Internet & Technology – Page DOIT-3
The subcommittee also concurs with the recommendation to create a new information technology security assessment that will allocate the cost of the department’s statewide information technology security planning and disaster preparedness activities to all state agencies that fall under the purview of the department’s oversight authority as established by statute. The subcommittee did not concur with the Governor’s recommendation to establish a chief information officer (CIO) cost assessment, based on insufficient identification of authority and functional responsibilities to justify the allocation of costs for the CIO function as recommended by the Governor.
The subcommittee concurs with the Governor’s recommendation to establish an Information Technology (IT) Security Unit within DoIT, with modifications. The subcommittee recommends funding for two new information technology security positions, and the transfer from the Planning and Research (P&R) Unit of an information technology security manager position. The subcommittee did not concur with the Governor’s recommended $200,000 to conduct a security assessment study. The subcommittee's actions are intended to provide the department with sufficient resources to develop a better understanding of the State’s IT security needs, and to identify specific vulnerabilities in the State’s IT infrastructure. The Governor recommends four positions, plus the position transfer and the security assessment study, but the subcommittee feels, based on the information provided, that the tasks and definition of the IT Security Unit justifies adding only two positions. The subcommittee’s reasoning regarding the study is the current situation needs to be assessed and evaluated so the parameters of the study can be better defined for the 2005-2007 biennium.
E-276 Working Environment & Wage – Page DOIT-3
E-805 Major Reclassifications – Page DOIT-5
E-905 Move From BA1370 to BA1373 – Page DOIT-5
E-911 Move From BA1365 to BA1373 – Page DOIT-5
The subcommittee does not concur with the Governor’s recommendation to continue funding for the department’s software executive position, based on insufficient demand for services to support continuing the position. The subcommittee supports the upgrade of two positions and the transfer of a computer system technician from the Application Design and Development (AD&D) Unit to assist in the operation of the department’s Contract Administration Unit. The subcommittee does not concur with the recommendation to transfer the chief of planning from the P&R Unit to the DoIT Director’s Office; the subcommittee believes the functional responsibilities and duties of the chief of planning will be more appropriately cost allocated from the P&R Unit budget account.
The subcommittee has identified several DoIT budget accounts that generate excess levels of reserves. The subcommittee recommends that DoIT adhere to the federal cost-accounting standard for budgeted reserves, which represents 60 days of operating expenses. The subcommittee authorizes staff to make necessary technical adjustments upon closing the department’s budgets to adjust reserves to equal 60 days of operating expenses.
Senator Raggio:
Are there any differences in this budget between the Senate subcommittee and the Assembly subcommittee?
Mr. Rodriguez:
No, both houses agree on this budget account.
SENATOR RHOADS MOVED TO CLOSE BUDGET ACCOUNT 721-1373 AS RECOMMENDED BY THE SUBCOMMITTEE ON GENERAL GOVERNMENT.
SENATOR TIFFANY SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
DoIT Planning & Research Unit - Budget Page DOIT-7 (Volume 1)
Budget Account 721-1370
Mr. Rodriguez:
Information regarding this budget account can be found on pages 3, and 16 through 18 of the closing document.
E-275 Working Environment & Wage – Page DOIT-9
E-904 Move From BA1370 to BA1365 – Page DOIT-9
The subcommittee does not concur with the Governor’s recommendation for an increase in funding of $22,330 in each year of the 2003-2005 biennium for additional training, travel, and operating expense. The subcommittee does not concur with the Governor’s recommendation to transfer the department’s project management functions to the AD&D Unit. Based on testimony and supporting documentation provided by the department, the subcommittee believes the department’s goal of maximizing personnel resources and skills will be more effectively achieved by retaining the project management function within the P&R Unit. The planners in this unit deal with tasks at a “pre‑budgeting level”; project managers deal with the same tasks at a “post‑budgeting level.” Both positions share the same skills, so the subcommittee feels this cost-allocation is preferable.
SENATOR RHOADS MOVED TO CLOSE BUDGET ACCOUNT 721-1370 AS RECOMMENDED BY THE SUBCOMMITTEE ON GENERAL GOVERNMENT.
SENATOR TIFFANY SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
DoIT Application Design & Development Unit - Budget Page DOIT-12 (Volume 1)
Budget Account 721-1365
Mr. Rodriguez:
Information regarding this budget account can be found on pages 4, 5, and 19 through 23 of the closing document.
E-276 Working Environment & Wage – Page DOIT-14
The subcommittee concurs with the recommendation to restore five NOMADS programming positions eliminated in the base budget in order to maintain a positive reserve.
Senator Raggio:
Does that increase the number of positions from 59 to 64?
Mr. Rodriguez:
That is correct. Declining demand from state agencies for programming services has created a significant revenue shortfall problem for this budget account, which required the Governor to make significant reductions within this account. The Welfare Division has identified sufficient programming tasks to justify the return of five NOMADS programmers.
E-904 Transfer Project Mgt From BA1370 – Page DOIT-16
E-906 DBA and Web From BA1385 – Page DOIT-16
The subcommittee concurs with the Governor’s recommendation to transfer the department’s database administration and Web development functions to the AD&D budget account, with some modifications. The transfer of these functions was recommended by the Governor to maximize the cross-utilization of staff and skill sets, and to improve service. The subcommittee recommends the transfer of only one Web developer from the Computing Division to the AD&D budget account, and the change in cost recovery for the position from direct bill to a cost-allocation. The subcommittee recommends that a second Web developer remain in the Computing Division budget account in support of the department’s Web hosting services; the cost recovery for this position will remain as a direct billing through the Web hosting cost pool.
Senator Raggio:
What does “Web hosting” mean? Does it mean you create Web sites?
Mr. Rodriguez:
Web services is divided into two sections: Web page development, where programmers create the pages you see on the screen; and Web hosting, which is the infrastructure, the hardware.
The subcommittee does not support the continuation of the third Web developer position recommended by the Governor, based on insufficient demand for that service. The Governor originally proposed transferring ten database administrators, three Web developers, and one administrative assistant to this budget account. Based on information provided by DoIT, the subcommittee has determined there is sufficient justification to transfer one Web developer position to AD&D. It is recommended the second Web developer position remain as a direct bill position captured in the Computing Division’s Web hosting services. Based on insufficient demand for the third Web developer position, the subcommittee recommends it be eliminated.
M-501 HIPAA-Health Insurance Portability – Page DOIT-14
The subcommittee concurs with the Governor’s recommendation to add a project manager to support development and implementation of the Health Division’s environmental public health tracking system. The subcommittee also recommends the position be transferred to the P&R Unit, based on the previous recommendation that project management be retained within the P&R Unit. The subcommittee recommends the transfer of two UNIX support positions to the Computing Division budget to support the department’s expanding UNIX server support functions.
Senator Raggio:
What is UNIX?
Mr. Rodriguez:
It is a computer operating system similar to Windows. UNIX is just a different operating system under a different operating environment.
SENATOR RHOADS MOVED TO CLOSE BUDGET ACCOUNT 721-1365 AS RECOMMENDED BY THE SUBCOMMITTEE ON GENERAL GOVERNMENT.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR RAWSON WAS ABSENT FOR THE VOTE.)
*****
DoIT Computing Division - Budget Page DOIT-19 (Volume 1)
Budget Account 721-1385
Mr. Rodriguez:
Information regarding this budget account can be found on pages 5, 6, and 24 through 32 of the closing document.
E-715 Replacement Equipment-Mainframe – Page DOIT-23
The subcommittee recommends funding to upgrade the State’s R-35 mainframe computer. The department has proposed two primary options for the mainframe upgrade, including the Governor’s recommendation to purchase a new generation International Business Machine Z‑900 mainframe, for a total purchase cost of $6.34 million. The alternative option would be to upgrade the current mainframe architecture to a newer generation chip at a projected purchase cost of $5.29 million. Based on information provided by DoIT, the subcommittee feels the most cost-effective alternative is the second option, upgrading the current mainframe to a newer generation R-36 chip, and associated software upgrades. This option will result in a cost savings to the State of approximately $1.1 million, when compared to the purchase and maintenance costs associated with the purchase of the Z-900.
E-713 Web Infrastructure – Page DOIT-23
E-714 Replacement Equip and Vendor Services – Page DOIT-23
The subcommittee recommends additional funding of $813,197 in FY 2003-2004 and $854,197 in FY 2004-2005 to purchase additional data storage capacity and maintenance for the State’s mainframe operations; the subcommittee also recommends $722,787 over the biennium to upgrade the department’s Web services hardware and software infrastructure.
The subcommittee recommends funding for the expansion and renovation of the computer facility, capital improvement project 2003 C-10, and security upgrades to DoIT facilities. In total, these projects are estimated to cost approximately $5.3 million.
E-805 Major Reclassifications – Page DOIT-24
The subcommittee concurs with the Governor’s recommendation to reclassify six computer facility support positions, but based on the documentation provided by DoIT, the subcommittee does not concur with the reclassification of four other positions.
SENATOR TIFFANY MOVED TO CLOSE BUDGET ACCOUNT 721-1385 AS RECOMMENDED BY THE SUBCOMMITTEE ON GENERAL GOVERNMENT.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
DoIT Data Communications & Technical Services - Budget Page DOIT-28
(Volume 1) Budget Account 721-1386
Mr. Rodriguez:
Information regarding this budget account can be found on pages 6, and 33 through 35 of the closing document.
E-300 Maximize Internet & Technology – Page DOIT-30
E-710 Replacement Equipment – Page DOIT-31
E-805 Major Reclassifications – Page DOIT-33
The subcommittee recommends funding of approximately $1.6 million over the biennium to support upgrades and continued maintenance for the State’s SilverNet data communications infrastructure and phone systems as recommended by the Governor and with technical adjustments made by staff. The subcommittee also concurs with funding recommended by the Governor to reclassify four positions that have been reassigned to support additional functions within the computer facility.
SENATOR TIFFANY MOVED TO CLOSE BUDGET ACCOUNT 721-1386 AS RECOMMENDED BY THE SUBCOMMITTEE ON GENERAL GOVERNMENT.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
DoIT Telecommunications - Budget Page DOIT-35 (Volume 1)
Budget Account 721-1387
Mr. Rodriguez:
Information regarding this budget account can be found on pages 6, and 36 through 38 of the closing document. The subcommittee concurs with the telecommunications budget as recommended by the Governor, with technical adjustments recommended by staff.
E-500 Accessible, Flexible, Cost-Efficient Government – Page DOIT-37
E-710 Replacement Equipment – Page DOIT-37
E-805 Major Reclassifications – Page DOIT-39
The subcommittee recommends funding of $826,000 over the biennium for increases in Wide Area Telecom/Telephone Service charges and services, and the reclassification of an administrative assistant II to an administrative assistant IV. The subcommittee also recommends $595,653 over the biennium to upgrade the department’s call management system and call accounting system.
SENATOR TIFFANY MOVED TO CLOSE BUDGET ACCOUNT 721-1387 AS RECOMMENDED BY THE SUBCOMMITTEE ON GENERAL GOVERNMENT.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
DoIT Communications - Budget Page DOIT-41 (Volume 1)
Budget Account 721-1388
Mr. Rodriguez:
Information regarding this budget account can be found on pages 6, 7, and 39 through 41 of the closing document.
E-730 Maintenance of Buildings and Grounds – Page DOIT-45
E-805 Major Reclassifications – Page DOIT-45
The subcommittee concurs with the Governor’s recommendation to close the Communications budget account with technical adjustments, including funding for the renovation of the State’s microwave mountaintop sites and the reclassification of a communications system supervisor to a communications system manager II.
Senator Raggio:
Does this budget account have any connection with the State’s radio problem?
Mr. Rodriguez:
No, it does not.
SENATOR TIFFANY MOVED TO CLOSE BUDGET ACCOUNT 721-1388 AS RECOMMENDED BY THE SUBCOMMITTEE ON GENERAL GOVERNMENT.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Senator Tiffany:
I would like the IFC to think about creating a technology subcommittee, due to all the new systems that will be coming online, such as the taxation system and the transition to the Avatar system in the Department of Human Resources. Another issue to consider is a centralized system to process credit card transactions, since several of the smaller agencies are interested in it but are unable to afford it.
Senator Raggio:
That would have to be implemented by the Legislative Commission.
Senator Tiffany:
What do we need to do to start the process?
Senator Raggio:
There has to be some funding.
Senator Tiffany:
Would it be a subcommittee from the IFC?
Senator Raggio:
It would be created by the Legislative Commission.
Senator Tiffany:
I am thinking of a subcommittee of the IFC.
Senator Raggio:
We do not have many subcommittees out of the IFC.
Mr. Ghiggeri:
There have not been subcommittees out of the IFC for a number of interims; however, subcommittees have been appointed by the chairman of the IFC during the interim.
DEPARTMENT OF HUMAN RESOURCES
Larry L. Peri, Senior Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau:
My remarks are contained in “Joint Subcommittee on K-12/Human Resources Closing Report, Department of Human Resources, Division of Child and Family Services, May 17, 2003. (Exhibit K. Original is on file in the Research Library.).
HR, UNITY/SACWIS - Budget Page DCFS-20 (Volume 2)
Budget Account 101-3143
Information regarding this budget account can be found on pages 1, 7, and 8.
E-475 Effectiveness of Family Services – Page DCFS-22
E-901 Transfer in From 3142 – Page DCFS-23
The subcommittee approved two new positions recommended by the Governor for design and development functions necessary to meet requirements of the Adoption and Safe Families Act, and to meet additional Statewide Automated Child Welfare Information System (SACWIS) requirements. The subcommittee did not approve the recommended transfer in of two existing positions from the Child Welfare Integration budget, which was created solely to account for the costs of integration.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101-3143 AS RECOMMENDED BY THE SUBCOMMITTEE ON K-12/HUMAN RESOURCES.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Senator Raggio:
Staff has requested we hold the Youth Community Services budget, which is budget account 101-3229.
Transition from Foster Care - Budget Page DCFS-37 (Volume 2)
Budget Account 606-3250
Mr. Peri:
Information regarding this budget account can be found on pages 2 and 16. The subcommittee approved this budget as recommended by the Governor. The budget estimates collecting and expending $1 million in each year of the biennium to assist youth transitioning out of foster care.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 606-3250 AS RECOMMENDED BY THE SUBCOMMITTEE ON K-12/HUMAN RESOURCES.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR TIFFANY WAS ABSENT FOR THE VOTE.)
*****
HR, Victims of Domestic Violence - Budget Page DCFS-41 (Volume 2)
Budget Account 101-3181
Mr. Peri:
Information regarding this budget account can be found on pages 2, and 17 through 20. The subcommittee made no adjustments in this budget and approved it as recommended by the Governor.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101-3181 AS RECOMMENDED BY THE SUBCOMMITTEE ON K-12/HUMAN RESOURCES.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR TIFFANY WAS ABSENT FOR THE VOTE.)
*****
HR, DCFS-Juvenile Accountability Block Grant - Budget Page DCFS-46
(Volume 2) Budget Account 101-3262
Mr. Peri:
Information regarding this budget account can be found on pages 2 and 21. The subcommittee has made no adjustments in this budget and approves it as recommended by the Governor. The budget recommends a transfer of $292,365 in federal funds in each year of the biennium to the Summit View Youth Correctional Center budget to assist in funding the costs of that facility.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101-3262 AS RECOMMENDED BY THE SUBCOMMITTEE ON K-12/HUMAN RESOURCES.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR TIFFANY WAS ABSENT FOR THE VOTE.)
*****
HR, Youth Alternative Placement - Budget Page DCFS-49 (Volume 2)
Budget Account 101-3147
Mr. Peri:
Information regarding this budget account can be found on pages 2, and 22 through 27. The subcommittee made no adjustments in this budget and approved it as recommended by the Governor.
E-400 Reduce Recidivism & Juvenile Violence – Page DCFS-50
E-402 Reduce Recidivism & Juvenile Violence – Page DCFS-50
The budget recommends additional county participation fee funding for the China Spring Youth Camp totaling $369,020 in FY 2004 and $426,559 in FY 2005.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101-3147 AS RECOMMENDED BY THE SUBCOMMITTEE ON K-12/HUMAN RESOURCES.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR TIFFANY WAS ABSENT FOR THE VOTE.)
*****
HR, C&FS-Juvenile Correctional Facility - Budget Page DCFS-53 (Volume 2)
Budget Account 101-3148
Mr. Peri:
Information regarding this budget account can be found on pages 2, 3, and 28 through 35.
E-350 Service at Level Closest to People – Page DCFS-56
The Governor recommended, and the subcommittee approved, the State operation of the Summit View Youth Correctional Center. The subcommittee approved an amendment to the budget reflecting a revised start-up date of July 2003; the opening of 24 beds is scheduled for November 2003. The ramp‑up schedule proposes to go to 48 beds in January 2004, 72 beds in May 2004, and full operation of the facility in August 2004. A total of 84 new positions are requested in the budget.
The subcommittee also approved an amendment that includes a new maintenance decision unit M-502 (M‑502), which adds contract psychiatric consultations, medications for youth, and enhanced training for staff. The amendment also adds a new correctional nurse position, and requests the reclassification of a licensed practical nurse to a correctional nurse. The total additional General Fund support approved by the subcommittee for these items is $175,041 in FY 2004 and $171,438 in FY 2005.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101-3148 AS RECOMMENDED BY THE SUBCOMMITTEE ON K-12/HUMAN RESOURCES.
SENATOR COFFIN SECONDED THE MOTION.
Senator Raggio:
I reluctantly voted for this, but I am still not convinced it would not have been more prudent to utilize a request for proposal (RFP) and continued some private operations. However, a serious backlog of clients exists for this facility, and the facilities in Caliente and Elko are at capacity. Something has to be done to get this moving, and without an RFP or agreement, I do not see any other alternative. I do, however, request this be monitored, and I am asking that a Letter of Intent be issued requesting a quarterly report to the IFC as to the operation, efficiency, and performance of the State at this facility.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101-3148 AS RECOMMENDED BY THE SUBCOMMITTEE ON K-12/HUMAN RESOURCES, AND TO ISSUE A LETTER OF INTENT REQUIRING QUARTERLY REPORTS AS DISCUSSED.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR TIFFANY WAS ABSENT FOR THE VOTE.)
*****
HR, Caliente Youth Center - Budget Page DCFS-58 (Volume 2)
Budget Account 101-3179
Mr. Peri:
Information regarding this budget account can be found on pages 3, 4, and 36 through 42.
M-502 Federal Mandate – Page DCFS-60
The subcommittee approved 19 new positions as recommended in the budget in response to recommendations made by the U.S. Department of Justice. The Department of Justice conducted a Civil Rights for Institutionalized Persons Act (CRIPA) investigation at the Nevada Youth Training Center (NYTC) in February 2002, and issued findings and recommendations leading to the need for additional staff. New positions are recommended in this budget because it is staffed with a ratio similar to NYTC.
The subcommittee also approved an amendment from the Budget Division to address the mental health needs of youth in residence. The amendment adds one new correctional nurse, contract psychiatric services, medication costs for youth, and enhanced training for staff. The General Fund support added by the subcommittee totals $179,575 in FY 2004 and $196,165 in FY 2005.
E-400 Reduce Recidivism & Juvenile Violence – Page DCFS-60
The subcommittee also approved a new assistant superintendent position recommended in the Executive Budget.
Senator Raggio:
Are there any differences between the houses in closing these accounts?
Mr. Peri:
No; the accounts were closed in unison in the subcommittee.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101-3179 AS RECOMMENDED BY THE SUBCOMMITTEE ON K-12/HUMAN RESOURCES.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR TIFFANY WAS ABSENT FOR THE VOTE.)
*****
HR, Nevada Youth Training Center - Budget Page DCFS-63 (Volume 2)
Budget Account 101-3259
Mr. Peri:
Information regarding this budget account can be found on pages 4, and 43 through 48.
M-502 Federal Mandate – Page DCFS-64
The Executive Budget recommended, and the subcommittee approved, 23 new positions based on the CRIPA investigation to enhance the direct care staff ratio and medical care.
The Budget Division also submitted an amendment to this budget to improve mental health care for youth. The subcommittee approved the amendment; it adds a new correctional nurse, contract psychiatric services, medications, and enhanced training for staff. The total General Fund support added by the subcommittee for the amendment is $214,313 in FY 2004 and $230,903 in FY 2005. The subcommittee also added $22,639 for a new van to assist in transporting youth.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101-3259 AS RECOMMENDED BY THE SUBCOMMITTEE ON K-12/HUMAN RESOURCES.
SENATOR RHOADS SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR TIFFANY WAS ABSENT FOR THE VOTE.)
*****
HR, Youth Parole Services - Budget Page DCFS-68 (Volume 2)
Budget Account 101-3263
Mr. Peri:
Information regarding this budget account can be found on pages 4, and 49 through 52.
M-502 Federal Mandate – Page DCFS-70
The subcommittee approved this budget substantially as recommended by the Governor, including recommendations to address the CRIPA findings. The subcommittee approved an amendment which reduces CRIPA-related costs by $72,000 each year, and redirects those resources to the Caliente Youth Center and NYTC. The budget originally included funding for those facilities in this account. Total General Fund support for this decision unit is reduced to $41,520 per year, and will provide for psychiatric consultations and medications for youth.
The subcommittee also approved $850,000 each year, as recommended in the Executive Budget, for the continuation of the Transitional Community Reintegration program, which assists in relieving overcrowding in both local juvenile detention facilities and State-operated training centers.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101-3263 AS RECOMMENDED BY THE SUBCOMMITTEE ON K-12/HUMAN RESOURCES.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR TIFFANY WAS ABSENT FOR THE VOTE.)
*****
HR, Northern Nevada Child & Adolescent Services - Budget Page DCFS-72
(Volume 2) Budget Account 101-3281
Mr. Peri:
Information regarding this budget account can be found on pages 5, and 53 through 55. The subcommittee approved this budget primarily as recommended by the Governor; it also eliminated a HIPAA privacy officer position. Three HIPAA positions are included in the Division of Child and Family Services’ budgets for HIPAA compliance; two are being withdrawn by the Department of Human Resources.
M-501 HIPAA-Health Insurance Portability Act – Page DCFS-74
One new information systems specialist was approved to assist in the replacement of the agency’s automated billing and data collection system.
E-902 Transfer HAPPY Program to Health Div – Page DCFS-76
E-904 Transfer Infant Enhancement Program to Health Div – Page DCFS-76
The subcommittee approved the transfer out of the Infant Enhancement Program and the Home Activities Program for Parents and Youth to the Health Division’s Special Children’s Clinic budget, budget account 101-3208.
Senator Raggio:
Is that the reason for the reduction in full-time equivalent positions?
Mr. Peri:
Yes, it is.
Senator Raggio:
Are the programs being continued?
Mr. Peri:
Yes, they are.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101-3281 AS RECOMMENDED BY THE SUBCOMMITTEE ON K-12/HUMAN RESOURCES.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR TIFFANY WAS ABSENT FOR THE VOTE.)
*****
HR, Southern Nevada Child & Adolescent Services - Budget Page DCFS-79
(Volume 2) Budget Account 101-3646
Mr. Peri:
Information regarding this budget account can be found on pages 5, and 56 through 64.
E-200 Implement Zero Based Budgeting – Page DCFS-84
E-203 Implement Zero Based Budgeting – Page DCFS-85
The Executive Budget recommended the closure of two inpatient programs at the Desert Willow Treatment Center. The 8-bed children’s acute care unit is recommended for closure in July 2003, while the 12-bed specialized adolescent treatment center is scheduled for closure in July 2004. The subcommittee did not approve the recommendations; it approved funding for the continuation of the programs during the next biennium. The General Fund support added by the subcommittee for the programs totals $1,320,796 over the 2003‑2005 biennium. Although a formal Letter of Intent was not recommended, the subcommittee discussed a request that the agency provide quarterly reports to the IFC on the status of the programs during the 2003‑2005 biennium.
Senator Raggio:
What is the recommendation for closure of the inpatient programs based on? Are the programs no longer needed? Are enrollments declining?
John P. Comeaux, Director, Department of Administration:
Obviously, we were trying to reduce the budget where we could; these programs were seen as being underutilized. That was the basis for the recommendation.
M-200 Demographics/Caseload Changes – Page DCFS-81
M-501 HIPAA-Health Insurance Portability – Page DCFS-83
E-325 Improve Pupil Achievement – Page DCFS-86
Mr. Peri:
The subcommittee approved a new information systems specialist for the planned replacement of the agency’s billing and data collection system (M-501), and three new mental health counselors for projected growth in early childhood mental health services (M-200). Three new positions were also recommended in the budget and approved for projected waiting list reductions for early childhood services (E-325). The subcommittee added an additional 0.51 FTE position for early childhood mental health services based on revised waiting list projections.
M-201 Demographics/Caseload Changes – Page DCFS-82
E-326 Improve Pupil Achievement – Page DCFS-86
A total of six new positions were recommended in the budget for the First Step Early Childhood Services program for projected caseload growth and waiting lists. The subcommittee eliminated two of the positions based on revised caseloads projections. The First Step program was also approved for transfer to the Health Division’s Special Children’s Clinic budget. The subcommittee also eliminated one HIPAA privacy officer recommended in the budget (M-501).
In summary, the subcommittee’s actions regarding these budgets results in a General Fund increase of $715,862 in FY 2004 and $1,333,031 in FY 2005.
Senator Raggio:
Is the increase primarily due to the retention of the two inpatient programs?
Mr. Peri:
Yes; the two inpatient programs for Southern Nevada Child and Adolescent Services and the addition of all the HIPAA compliance components in the youth correctional budgets account for the increase.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101-3646 AS RECOMMENDED BY THE SUBCOMMITTEE ON K-12/HUMAN RESOURCES.
Senator Raggio:
Does your motion include a Letter of Intent regarding the continuation of the inpatient programs?
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101-3646 AS RECOMMENDED BY THE SUBCOMMITTEE ON K-12/HUMAN RESOURCES, AND TO ISSUE A LETTER OF INTENT REGARDING THE INPATIENT PROGRAMS.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR TIFFANY WAS ABSENT FOR THE VOTE.)
*****
Senator Coffin:
I appreciate the perceptions of the joint subcommittee, and the foresight regarding children’s mental health by adding positions. It is a large problem in the southern part of the State. We had too many discussions to review everything today, but I am appreciative of all the efforts in this area.
Senator Raggio:
We are out of time today to discuss more budgets; we are adjourned at 10:16 a.m.
RESPECTFULLY SUBMITTED:
Denise Davis,
Committee Secretary
APPROVED BY:
Senator William J. Raggio, Chairman
DATE: