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 4:29 p.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
Larry L. Peri, Senior Program Analyst
Bob Atkinson, Program Analyst
Mindy Braun, Education Program Analyst
Michael J. Chapman, Program Analyst
Joyce Garrett, Program Analyst
Jim Rodriguez, Program Analyst
James D. Earl, Committee Secretary
OTHERS PRESENT:
John P. Comeaux, Director, Budget Division, Department of Administration
Douglas C. Thunder, Deputy Superintendent for Administrative and Fiscal Services, Department of Education
Dave Hosmer, Chief, Nevada Highway Patrol, Department of Public Safety
Philip H. Brown, Acting Chief, Investigation Division, Department of Public Safety
Scott Slobe, Lobbyist, Department of Public Safety Employee Association
Steve Albertson, Under Sheriff, Carson City Sheriff’s Office
Doyle G. Sutton, State Fire Marshal, State Fire Marshal Division, Department of Public Safety
DEPARTMENT OF EDUCATION
Senator Raggio:
We will continue on our closing schedule. We will begin with the Distributive School Account (DSA).
Distributive School Account – Budget Page K12ED-7 (Volume 1) Budget Account 101‑2610
Bob Atkinson, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau:
The Joint Subcommittee on K-12/Human Resources reviewed the budget for the DSA and made a number of recommendations for closing that account. These subcommittee recommendations result in General Fund savings in the amounts of $27,764,896 for fiscal year (FY) 2004 and $45,703,732 for FY 2005. The DSA budget, as recommended by the Governor and approved by the subcommittee, includes increases for the 2 percent movement on scale, typically called the “roll-up” in salary costs; a 2 percent salary increase effective July 1, 2003; and an increase for enrollment growth.
Senator Raggio:
I want to make certain we are clear on these issues. In addition to the “roll-up,” the 2 percent salary increase was based on the commitment if the 2 percent that was to be triggered did not trigger, then we would build it into the base. That was a commitment from the last session. Is that correct, Mr. Comeaux?
John P. Comeaux, Director, Budget Division, Department of Administration:
That is correct.
Senator Coffin:
I have a question on the same subject. Previously, about 40 to 50 percent of the teachers had capped salaries. What is that percentage as of the date of the subcommittee’s action?
Mr. Atkinson:
We did not discuss that issue in the subcommittee. However, your figures are in the right neighborhood. It takes about a 2 percent “roll-up” to fund the 4 percent merit increase that about half of the district employees receive.
Senator Coffin:
I think you may have misunderstood my question. People who are capped out do not receive the 2 percent increase. That is the number I am interested in. Do you think it would be about half? Are we saying the same thing using different words?
Mr. Atkinson:
If we take the amount of merit increases and spread it out over the entire salary costs, it amounts to about 2 percent of the salary costs. That would not necessarily mean half were at the top. We did not look at the number of teachers that are topped out. Mr. Thunder may have the number of teachers who are completely topped out. I do not.
Senator Raggio:
Mr. Thunder, do you have that information?
Douglas C. Thunder, Deputy Superintendent for Administrative and Fiscal Services, Department of Education:
I do not have that information. We can calculate that easily, and I will do so.
Mr. Atkinson:
Weighted enrollment growth is projected to increase by 3.61 percent in FY 2004 and 3.56 percent in FY 2005. This equates to an additional 26,186 students over the biennium.
The Executive Budget recommended funding in the amount of $24.2 million to implement a full-day kindergarten program in approximately 30 percent of the schools in FY 2005. The subcommittee did not recommend approval of this proposal. However, the subcommittee requested full-day kindergarten be placed on a priority list in the event additional funding were to become available.
The Executive Budget recommended funding in the amount of $108.7 million in FY 2004 and $114.7 million in FY 2005 to continue the class size reduction program. These amounts would continue the current pupil-teacher ratios of 16 to 1 in Grades 1 and 2, and 19 to 1 in Grade 3, as well as funding for 23.5 “at risk” kindergarten teachers.
The subcommittee approved a change in the class size reduction program to provide funding for a mandatory student/teacher ratio of 22 to 1 in Grades 1 through 5, with flexibility for Grade 6 as appropriate. This recommendation results in General Fund savings of approximately $22 million in FY 2004 and $24 million in FY 2005.
The Executive Budget recommended funding for two stipend programs through the DSA: high impact stipends and “at risk” school stipends. As recommended by the Governor, high impact stipends would provide annual stipends in the amount of $3000 for licensed educational personnel in the subject areas of math, English as a second language (ESL), special education, and for psychologists. The “at risk” school stipend program, as recommended by the Governor, would provide annual stipends in the amount of $2000 to teachers and administrators who remain in “at risk” schools.
The subcommittee approved the high impact and “at risk” stipends as recommended by the Governor; however, the actual amount of the individual stipends would be reduced if necessary in order not to exceed the budgeted amount. For the high impact stipends, science was included as a high impact area, and the subcommittee approved flexibility for school districts to determine, on a yearly basis, the positions within the eligible areas that would be considered high impact based on need. In addition, a 2-year commitment to remain at the school will be part of the eligibility requirements for receipt of the stipends.
The Executive Budget recommended funding of $2.9 million in each fiscal year for early childhood education programs. Funding of $2.6 million is included in the DSA to continue the State Even Start program and other district- and community‑based programs, and $301,000 was included in the Other State Education Program account for the Classroom on Wheels (COW) program.
The subcommittee approved funding for the early childhood education programs as recommended by the Governor, and approved the transfer of funding for the COW program from the Other State Education Programs budget account to be added to the funding in the DSA. The subcommittee also requested State funds for early childhood education programs be restricted to items directly related to instruction of pupils, and that longitudinal evaluations be conducted for all early childhood programs as part of the receipt of grant funds.
The Executive Budget recommended funding in the amount of $10.5 million in FY 2004 and $10.8 million in FY 2005 for professional development programs for teachers and administrators. The programs include the Regional Professional Development Programs (RPDPs), the Nevada Early Literacy Intervention Program (NELIP), and Project Leadership in Educational Administration Development (Project LEAD).
The subcommittee approved the consolidation of the RPDPs and NELIP with the inclusion of the Project LEAD funding from the Other State Education Programs budget account. This consolidation resulted in General Fund savings of $3.1 million over the biennium. In approving the inclusion of Project LEAD funds through the RPDPs, the subcommittee stressed the statewide coordinating council for the RPDPs should provide comparable services to administrators who have been provided in the past through Project LEAD, and requested that language be included in the school funding bill to this effect.
The Executive Budget recommended funding of $12.7 million for remedial programs for low-performing schools for the before/after/summer/intersession programs for “at risk” pupils. The subcommittee approved funding as recommended by the Governor. However, with regard to funding for before/after and summer/intersession tutoring for “at risk” pupils, the subcommittee requested the funds be utilized to provide supplemental services, as defined in the No Child Left Behind Act, to pupils in non-Title I schools designated as demonstrating need for improvement for 2 or more consecutive years. In making this decision, the subcommittee approved an increase of $500,000 in funds for “at risk” pupils, with a corresponding decrease in remediation funds for low performing schools. This change should provide adequate funds during the biennium to assist pupils in non-Title I schools designated as demonstrating need for improvement, as well as sufficient funds for the implementation of effective programs in all schools designated as demonstrating need for improvement.
The Executive Budget recommended funding of $18.6 million in FY 2004 and $19.2 million in FY 2005 to provide $50 per pupil for textbooks, instructional supplies, and instructional hardware.
The subcommittee approved the Governor’s recommended funding. However, in making the approval, it requested all funds for textbooks, instructional supplies, and instructional hardware, totalling $64.4 million in FY 2004 and $66.7 million in FY 2005, be “fenced off.”
SENATOR RAWSON MOVED TO APPROVE THE SUBCOMMITTEE REPORT.
SENATOR MATHEWS SECONDED THE MOTION.
Senator Raggio:
Mr. Thunder, do you have a question?
Mr. Thunder:
I was wondering about the amounts for technology and textbooks. Is the amount normally included for replacement also included in those figures?
Senator Raggio:
Please repeat your question.
Mr. Thunder:
There is an amount the districts have as part of their normal budgets. The total amount includes funds for textbooks and instructional supplies. I see now. You are taking out those separate line items.
Senator Raggio:
That is correct.
Senator Coffin:
Are you asking for a quick vote on the whole package just to get it out of the way?
Senator Raggio:
The Assembly did not agree to some of this. This is the action of the Senate subcommittee.
Senator Coffin:
We do not really have a 4 percent increase here. I have to differ. I may vote no. I am not sure. I want to know what the pay raise actually is.
Senator Raggio:
The action by the subcommittee approved the 2 percent “roll-up.” It approved the 2 percent salary increase effective July 1. In addition, the Assembly wanted to add some salary increases. That did not receive joint subcommittee support, but there was approval on the items before us.
Senator Coffin:
I would like to find out how many teachers are capped. This is why. My wife is a university professor. Two years ago, I voted for a 4 percent pay raise in each year of the biennium, including potential merit increases through the merit pool. I feel it would be hypocritical for me not to support at least that amount in this budget. If that amount is not in this account, I cannot support a consolidated motion. I do not oppose your action. Without separating the items, I cannot support a motion that does not contain a 4 percent increase.
Mr. Atkinson:
I may be able to provide clarification. The 2 percent “roll-up” is really a budgeting mechanism. It gives no one a raise in the form of a cost-of-living allowance. It will put sufficient money into the DSA so people entitled to a move up the salary scale will be able to get the increase. The only cost-of-living increase built into the budget is the 2 percent amount effective July 2003.
THE MOTION CARRIED. (SENATOR COFFIN VOTED NO.)
*****
DEPARTMENT OF HUMAN RESOURCES
Senator Raggio:
The Department of Human Resources Administration is the next budget.
DHR Administration – Budget Page HR ADMIN-1 (Volume 2)
Budget Account 101‑3150
Larry L. Peri, Senior Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau:
As a summary, the actions of the subcommittee on K-12/Human Resources resulted in a General Fund decrease of $773,302 in FY 2004 and $356,587 in FY 2005 for a total reduction of $1,129,619 for the biennium.
In closing the administration budget, the subcommittee reduced the amount of MAXIMUS federal recovery revenue from the recommended amounts of approximately $2.9 million annually to the revised amounts of $1.675 million in FY 2004 and $1.725 million in FY 2005. The subcommittee also approved the expenditure of $836,102 of MAXIMUS funds in FY 2004 and $944,560 of expenditures in FY 2005. The amounts will assist in funding the Grants Management Unit, suicide prevention programs within the Department of Human Resources and, in Douglas County, and a children and elder count study. The funds will also assist Olmstead decision compliance efforts. The subcommittee also indicated the funding should be considered as one-time for this biennium and should not automatically be built into continuing base expenditures.
Additionally, the Governor recommended, and the subcommittee approved, a new auditor III position as well as the transfer in of an existing auditor II from the Healthy Nevada Fund administration budget to establish an audit function in the director’s office. The new position will be funded by a transfer from the Grants Management Unit, while the existing auditor II will be funded by a transfer from the Healthy Nevada Fund administration budget. The subcommittee also approved the creation of a fiscal unit in the director’s office. The Governor recommended the transfer in of 2.51 full-time equivalent (FTE) positions to staff the unit. The subcommittee approved several technical adjustments for the unit, resulting in a decrease of $14,740 in FY 2004 and $17,010 in FY 2005, which reduced transfers from the Grants Management Unit.
The subcommittee also reviewed the department’s proposal for compliance with the Health Insurance Portability and Accountability Act (HIPAA) passed by Congress in 1996, pertaining to the privacy of individually identifiable health information. The subcommittee approved four of the eight positions recommended by the department for HIPAA compliance: one in the Division of Mental Health and Developmental Services, one in the Division of Child and Family Services, one in the Health Division, and one in the Division of Health Care Financing and Policy. The subcommittee also approved several technical adjustments to State-owned building rent and reduction in computer equipment costs, resulting in decreases in General Fund support of $27,755 in FY 2004 and $27,236 in FY 2005. The subcommittee added $5200 in FY 2004 for new office equipment.
Senator Raggio:
Was the reduction in MAXIMUS revenue a result of the most recent estimates?
Mr. Peri:
That is correct.
SENATOR RAWSON MOVED TO APPROVE THE SUBCOMMITTEE REPORT.
SENATOR TIFFANY SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR RHOADS WAS ABSENT FOR THE VOTE.)
*****
Developmental Disabilities – Budget Page HR ADMIN-8 (Volume 2)
Budget Account 101-3154
Mr. Peri:
During the 2001-2002 interim, the Legislative Commission assigned a subcommittee to study the State’s programs for providing services to persons with disabilities. One of the primary recommendations of that subcommittee was to transfer the Developmental Disabilities budget and the budget of the Office of Community-Based Services (OCBS) from the Department of Employment, Training and Rehabilitation (DETR) to the Department of Human Resources (DHR). The budget recommended that. The concept of centralizing services, information, and skill sets was central to the legislative subcommittee’s primary goal of developing a practical and viable model for a “one-stop” shop of services and information for the disabled community. The proposal to transfer these two budgets to DETR was also recommended in DHR’s strategic plan for persons with disabilities, established by Assembly Bill (A.B.) 513 of the 71st Legislature. The subcommittee approved the budget for Developmental Disabilities as recommended by the Governor, with technical adjustments by staff.
SENATOR RAWSON MOVED TO APPROVE THE SUBCOMMITTEE REPORT.
SENATOR TIFFANY SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR RHOADS WAS ABSENT FOR THE VOTE.)
*****
HR, Children’s Trust Account – Budget Page HR ADMIN-12 (Volume 2) Budget Account 101‑3201
Mr. Peri:
The next budget is the Children’s Trust Account. The Executive Budget recommended, and the subcommittee approved, the elimination of this budget account and the transfer of all program costs and grant expenditures to the new Grants Management Unit. The subcommittee made no adjustments and the budget was approved as recommended by the Governor. Adjustments were made to this budget in the new Grants Management Unit and will be discussed in the presentation for that account.
Senator Raggio:
We will take up adjustments when we get to that account. A motion is in order for approval of the subcommittee recommendation for elimination and transfer of this account.
SENATOR RAWSON MOVED TO APPROVE THE SUBCOMMITTEE REPORT, INCLUDING THE ELIMINATION OF BUDGET ACCOUNT 101‑3201 AND THE TRANSFER OF ITS PROGRAM COSTS AND EXPENDITURES TO THE GRANTS MANAGEMENT UNIT.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR RHOADS WAS ABSENT FOR THE VOTE.)
*****
Community Based Services – Budget Page HR ADMIN-16 (Volume 2) Budget Account 101-3266
Mr. Peri:
Pursuant to Senate Bill (S.B.) 174 of the 71st Session, the subcommittee approved the transfer of general funds from the Aging Services Grants to the Senior Services Program in the amount of $406,980 in FY 2004 and $742,560 in FY 2005 to fund personal care assistant services through the OCBS. Senate Bill 174 requires State agencies that provide support services to the disabled to identify and quantify the support service needs of the disabled community, and, to the extent possible, represent that need in the biennial budget for consideration by the Governor and the Legislature. No other major issues were identified for this budget. The subcommittee approved the budget for OCBS as recommended by the Governor with the noted transfer of General Fund money from aging services and technical adjustments made by staff.
Senator Raggio:
Apparently, there are no major issues.
SENATOR RAWSON MOVED TO APPROVE THE SUBCOMMITTEE REPORT, INCLUDING THE TRANSFER OF $406,980 IN FY 2004 AND $742,560 IN FY 2005 IN GENERAL FUNDS FROM AGING SERVICES TO THE OFFICE OF COMMUNITY BASED SERVICES, WITH TECHNICAL ADJUSTMENTS BY STAFF.
SENATOR TIFFANY SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Healthy Nevada Fund – Budget Page HR ADMIN-22 (Volume 2)
Budget Account 262‑3261
Mr. Peri:
The Executive Budget recommended General Fund support of $5 million to increase the number of participants in the Nevada Senior Rx program from the current 7,500 participants to 12,160 participants by the end of the upcoming biennium. Based on the per member per participant costs negotiated in the new senior Rx contract, the subcommittee recommended General Fund support be reduced to $2.8 million, and the number of participants be increased to 12,160 as recommended by the Governor. The subcommittee recommended that $300,000 of the remaining General Fund support in FY 2004 be placed in reserve for possible funding of a senior prescription discount program for all seniors in the State.
The subcommittee recommended a Letter of Intent directing the DHR to issue a request for proposal (RFP) for a senior prescription discount program for all seniors in the State similar to that offered by WorldDocs. The Letter of Intent directs the department to report the results of the RFP to the Interim Finance Committee (IFC) for its consideration. The IFC would then decide whether such a program should be funded, or whether the reserved funding should be placed in the senior Rx expenditure category.
With the subcommittee approval of the new Grants Management Unit as recommended by the Governor, the existing management analyst II, in addition to the administrative costs and grant funds to improve the health of children and persons with disabilities and to reduce tobacco use, will be transferred into that new unit. Based on approval of a new auditor position in the DHR director’s office, the subcommittee recommended the current auditor II position in the Healthy Nevada Fund be transferred into the DHR administration account in order to consolidate the audit functions for the department into one account. Both of these positions would continue to be supported with funding from the Healthy Nevada Fund.
SENATOR RAWSON MOVED TO APPROVE THE SUBCOMMITTEE REPORT.
SENATOR CEGAVSKE SECONDED THE MOTION.
Senator Tiffany:
The Governor’s budget amount was $5 million, and the subcommittee reduced it to $2.5 million. Why was money put aside into a reserve account? Why was a particular amount selected?
Senator Rawson:
The costs for this program were less than previously budgeted. We expect costs to be reduced further. A presentation suggested a way for all seniors to become members of a program affording them a significant discount. The reserve allows an RFP to be developed for that program, thereby extending service to all seniors in the State. The existing program would also benefit from savings if the new program were to go into effect.
Senator Tiffany:
I assume the thinking is that if the tobacco settlement money were to go away, then there would need to be some backup to the prescription drug program. Is this correct? Are you considering a program to supplement Medicare?
Senator Rawson:
The basic program in operation now was developed for low-income seniors. Any new program would benefit all seniors. No one is predicting the failure of this program now, but prescription services for seniors is one of the large expenditures in the State. This is an attempt to bring costs down for all senior citizens.
Senator Tiffany:
If the response to an RFP were a program benefiting all seniors, would there be a General Fund supplement? Would additional costs come from the pockets of seniors?
Senator Rawson:
There would be some type of transaction fee. There would be no additional cost to the State. Were that the case, the State would not be interested in considering the program.
THE MOTION CARRIED UNANIMOUSLY.
*****
DHR BCBS Settlement – Budget Page HR ADMIN-29 (Volume 2)
Budget Account 101-3241
Mr. Peri:
Over the next biennium, a total of $450,000 will accrue in this budget from the annual payments received as part of the settlement involving the merger of Rocky Mountain Hospital and Medical Services Inc., and Nevada Blue Cross/Blue Shield and Colorado Blue Cross/Blue Shield. The Executive Budget recommended reserving the annual payments for an undesignated use in the future. The subcommittee approved the transfer of $225,000 each fiscal year from this account to the Nevada Check-Up budget with the intent the annual payments be used to support caseloads in that program. The transfer reduces the amount of general funds needed in the Nevada Check-Up budget, which is used as a match for federal funds by a like amount. The use of annual payments to help support this program meets the intent of the settlement agreement.
Senator Raggio:
How much are the payments annually?
Mr. Peri:
I think the amount is $150,000.
Senator Raggio:
Do they run through 2006?
Mr. Peri:
I think we accrue $150,000 this year and $150,000 in each of the next 2 years for a total of $450,000. Dividing that amount by two yields the $225,000 in each of the next two years.
SENATOR RAWSON MOVED TO APPROVE THE SUBCOMMITTEE REPORT.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR TIFFANY WAS ABSENT FOR THE VOTE.)
*****
HR, Purchase of Social Services – Title XX – Budget Page HR ADMIN-31
(Volume 2) Budget Account 101-3237
Mr. Peri:
The Executive Budget recommended, and the subcommittee approved, the elimination of this budget account and the transfer of all program costs and grant expenditures to the new Grants Management Unit.
Senator Raggio:
I will take a motion for approval.
SENATOR RAWSON MOVED TO APPROVE THE SUBCOMMITTEE REPORT, INCLUDING ELIMINATION OF BUDGET ACCOUNT 101‑3237 AND THE TRANSFER OF ALL ITS PROGRAM COSTS AND GRANT EXPENDITURES TO THE GRANTS MANAGEMENT UNIT.
SENATOR CEGAVSKE SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR TIFFANY WAS ABSENT FOR THE VOTE.)
*****
HR, Community SVCS Block Grant – Budget Page HR ADMIN-38 (Volume 2) Budget Account 101-4864
Senator Raggio:
Did the subcommittee recommend elimination of this account as well?
Mr. Peri:
Yes.
Senator Raggio:
I will take a motion to approve.
SENATOR RAWSON MOVED TO APPROVE THE SUBCOMMITTEE REPORT, INCLUDING ELIMINATION OF BUDGET ACCOUNT 101‑4864 AND THE TRANSFER OF ALL ITS PROGRAM COSTS AND GRANT EXPENDITURES TO THE GRANTS MANAGEMENT UNIT.
SENATOR CEGAVSKE SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR TIFFANY WAS ABSENT FOR THE VOTE.)
*****
HR, Family to Family Connection – Budget Page HR ADMIN-43 (Volume 2) Budget Account 101-3278
Mr. Peri:
This budget is also recommended for elimination.
Senator Raggio:
Is this budget recommended for transfer into the new Grants Management Unit?
Mr. Peri:
Yes,it is.
SENATOR RAWSON MOVED TO APPROVE THE SUBCOMMITTEE REPORT, INCLUDING ELIMINATION OF BUDGET ACCOUNT 101‑3278 AND THE TRANSFER OF ALL ITS PROGRAM COSTS AND GRANT EXPENDITURES TO THE GRANTS MANAGEMENT UNIT.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR TIFFANY WAS ABSENT FOR THE VOTE.)
*****
Senator Raggio:
Did the subcommittee recommend the same for the Family Resource Centers budget?
HR, Family Resource Centers – Budget Page HR ADMIN-49 (Volume 2) Budget Account 101-3294
Mr. Peri:
That is correct.
SENATOR RAWSON MOVED TO APPROVE THE SUBCOMMITTEE REPORT, INCLUDING ELIMINATION OF BUDGET ACCOUNT 101‑3294 AND THE TRANSFER OF ALL ITS PROGRAM COSTS AND GRANT EXPENDITURES TO THE GRANTS MANAGEMENT UNIT..
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR TIFFANY WAS ABSENT FOR THE VOTE.)
*****
Senator Raggio:
I believe the Grants Management Unit is next.
HR, Grants Management Unit – Budget Page HR ADMIN-54 (Volume 2)
Budget Account 101-3195
Mr. Peri:
The Governor recommended, and the subcommittee approved, the creation of this budget, which consolidates six grant programs into one budget account. The new account totals nearly $31 million in each year, approximately $2.8 million in General Funds and $28.2 million in federal and other funds, and consists of 9.02 existing FTE positions and 1 new position.
The subcommittee revised the amounts recommended in the budget for Title XX to reflect a combination of the actual federal FY 2003 grant award and the estimated amount for federal FY 2004. The revised amounts result in an increase of available Title XX funds of $274,440 in FY 2004 and a shortfall of $77,060 in FY 2005 as compared to the Governor’s recommended number. The overage in the first year combined with the projected balance forward of $102,061 from FY 2003 yielded additional Title XX revenue of $376,501. The subcommittee directed $77,060 of that amount be carried forward to FY 2005 to resolve the shortfall and approved the remaining $299,441 for the Aging Services‑Homemaker Services Program, resulting in a corresponding decrease in General Fund support in that budget.
The subcommittee also approved a request from the department to increase children’s trust fund grants by $160,000 in each year of the biennium for Child Abuse and Neglect Prevention grants. The subcommittee did not approve the recommendation to consolidate Title XX grants or the two separate tobacco grants into one expenditure category. The reversal of this recommendation allows the money committee members to easily view expenditures for individual programs recorded in the State’s accounting system.
SENATOR RAWSON MOVED TO APPROVE THE SUBCOMMITTEE REPORT.
SENATOR MATHEWS SECONDED THE MOTION.
Senator Coffin:
Was the subcommittee comfortable with the consolidation of these accounts? I would like to know how this was done. We have already passed the Family to Family Connection budget; I received the most mail concerning that account. Have you been assured services will not be cut?
Senator Rawson:
Discussion began during the interim and flowed from the Healthy Nevada Fund. A recommendation suggested the State could do better with its various grants if it had a Grants Management Unit. The idea evolved into a reorganization project. Undoubtedly there will be changes in the future. We had particular concerns about the Family to Family Connection Program. We are assured that program will continue to the extent it is currently funded. It has been cut since its inception, but it is protected now.
Senator Raggio:
Is that your understanding, Mr. Comeaux?
Mr. Comeaux:
Yes.
THE MOTION CARRIED UNANIMOUSLY.
*****
HR, State and Community Collaborations – Budget Page HR ADMIN-65 (Volume 2) Budget Account 101-3276
Mr. Peri:
The Executive Budget recommended, and the subcommittee approved, the reorganization of this budget and the transfer of staff and programs to other agencies. The subcommittee approved the transfer of 1.51 FTE positions to the director’s office fiscal unit and the transfer of the Head Start/State collaboration grant program to the Welfare Division. The remaining personnel and costs associated with the Individuals with Disabilities Education Act (IDEA) grant were approved for transfer to the Health Division.
The subcommittee also noted transfers of IDEA funding from this account to the Special Children’s Clinic budget were understated by approximately $1.4 million. The subcommittee approved the addition of $318,682 in IDEA funds each year to the Special Children’s Clinic budget to further reduce or eliminate waiting lists. The remaining amounts of $397,494 in FY 2004 and $389,505 in FY 2005 were also added to the Special Children’s Clinic budget, resulting in a corresponding decrease in General Fund support in that budget account.
SENATOR RAWSON MOVED TO APPROVE THE SUBCOMMITTEE REPORT.
SENATOR RHOADS SECONDED THE MOTION.
Senator Raggio:
I think the subcommittee was very concerned about reduction of the wait list in the Special Children’s Clinic budget. I commend the subcommittee for doing what it could.
THE MOTION CARRIED UNANIMOUSLY.
*****
HR, Public Defender – Budget Page DEFENDER-1 (Volume 2)
Budget Account 101‑1499
Mr. Peri:
There were only minor adjustments within this account. The primary one involved funding for office space in Humboldt County. The office obtained space at no charge in the past. There were mold issues. Money was put into the budget to allow for the lease of office space.
Senator Raggio:
Does this allow the continuation of existing operations?
Mr. Peri:
Yes.
SENATOR RHOADS MOVED TO APPROVE THE SUBCOMMITTEE REPORT.
SENATOR RAWSON SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
DEPARTMENT OF PUBLIC SAFETY
Senator Raggio:
Mr. Krmpotic, do you have information on the Department of Motor Vehicles (DMV) issue?
DMV, Central Services – Budget Page DMV-46 (Volume 3) Budget Account 201‑4741
Mr. Krmpotic:
A document imaging system was the subject of discussion while closing the DMV central services account. There was concern about cost. Staff received additional cost details from the agency. The system includes document-imaging capability as previously indicated. It also provides microfilming capability thereby enabling the agency to comply with State record retention requirements. The cost of the system also includes two scanners and two software licenses to allow the agency to reach the processing level necessary to address its document backlog. The agency currently has two cameras and two optical character readers to achieve the same capability. The document-imaging portion costs about $140,000; the remainder of the cost is attributed to the microfilming capability and the high volume scanners. The backlog is currently about seven million documents.
Senator Tiffany:
What staff will be used?
Mr. Krmpotic:
The agency has staff for microfilm preparation. The 71st Session of the Legislature approved an increase of 10 to 12 positions to microfilm additional documents.
Senator Tiffany:
Does the agency have 10 to 15 people to do this?
Mr. Krmpotic:
It has approximately that number.
Senator Raggio:
With this information, is the committee prepared to move to accept the subcommittee recommendation?
SENATOR RAWSON MOVED TO ACCEPT THE SUBCOMMITTEE REPORT.
SENATOR RHOADS SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Senator Raggio:
Were the next budgets all heard by the subcommittee on public safety?
Mr. Krmpotic:
The subcommittee heard these next budgets, but they were not closed.
Senator Raggio:
Senator Rhoads, were none of these budgets closed?
Senator Rhoads:
We ran out of time.
PS, Dignitary Protection – Budget Page PS-49 (Volume 3) Budget Account 101‑4738
Senator Rhoads:
This account contains staff to guard the mansion, the Governor, and his family. The primary issue is an amendment submitted by the Budget Division. It reclassifies four Nevada Highway Patrol trooper positions to Capitol Police Division officers. It also adds one capitol police officer position with the savings generated from the reclassifications. This will provide for security at the mansion on a 24-hour basis. The impact on the General Fund is a net decrease of $3,040 over the biennium. Staff seeks approval to change the administrative cost allocation and the public safety technology allocation once those accounts are approved.
Senator Raggio:
For those in the audience, the committee is in the process of closing budgets. Ordinarily, we do not take testimony. However, if there is some limited testimony necessary on a particular issue, the chair will try to recognize you on that issue. Is there anyone wishing to speak on this issue?
SENATOR RHOADS MOVED TO CLOSE BUDGET ACCOUNT 101-4738, APPROVING BUDGET DIVISION AMENDMENT NUMBER 64 TO RECLASSIFY FOUR NEVADA HIGHWAY PATROL TROOPER POSITIONS TO CAPITOL POLICE OFFICERS, AND ADDING ONE CAPITOL POLICE OFFICER POSITION TO PROVIDE SECURITY AT THE GOVERNOR’S MANSION.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Public Safety, Highway Patrol – Budget Page PS-55 (Volume 3) Budget Account 201-4713
Mr. Krmpotic:
This account contains seven issues for consideration.
The Governor recommends $800,000 to address problems with the high-band radio system in southern Nevada. The department reported the new system design did not include extenders built into vehicle radios. As a result, handheld radios are required to communicate through mountaintop antennas. This affects clarity of communications between the officer and the dispatch center in southern Nevada. Staff has recently learned problems with the radio system are greater than those associated with extenders. The agency does not own the frequency channels necessary for system operation. The Federal Communications Commission (FCC) is requiring the agency to acquire usable channels. The agency has proposed an intermediate solution using a conventional system that does not involve trunking. This would require acquisition of some 50 to 60 channels statewide. The long-term solution proposed by the agency is the appropriation of about $15 million from the Highway Fund and $1.8 million from the General Fund to migrate to the 800-megahertz (MHz) system of the Nevada Department of Transportation (NDOT). Staff has been briefed on the issues and has received preliminary estimates. The agency and the Executive Branch believe this may be the solution over the long term. The agency has requested this $800,000 appropriation be removed in light of the other issues.
Senator Raggio:
Where are you on this, Mr. Comeaux?
Mr. Comeaux:
Mr. Krmpotic has provided a good summary. Based on available information, the long-term solution appears to be migration to the 800-MHz system.
Senator Raggio:
Does that require $15 million from the Highway Fund and $1.8 million from the General Fund?
Mr. Comeaux:
Those are the current estimates.
Senator Raggio:
Is that the Governor’s recommendation?
Mr. Comeaux:
Yes, it is.
Senator Tiffany:
I have an e-mail from someone I do not know. There are about 10 paragraphs expressing concern about the 800-MHZ issue. She discusses statewide incompatibilities. She states the millions of dollars that might be spent to build out the 800-MHz system to accommodate the highway patrol would be better spent on health and education systems. She asserts there is relevant pending legislation. Can you tell me anything about that?
Mr. Krmpotic:
Staff is not familiar with any such legislation.
Senator Rawson:
We could spend $30 million to develop the systems we really need in the State. That would involve the 800-MHz system and some interoperability. I do not know if you have all of the answers yet. Given what the State has faced in the last several years, and the distances in the State, we have to address communications issues. We do this every session. It is time to solve the problem. If this is what is necessary, I am inclined to say we need to move ahead.
Senator Tiffany:
This e-mail expresses concern about pending legislation that would address incompatibilities and interoperability. There is a suggestion that the highway patrol not be required to join the NDOT system until after a subcommittee review of merging the technologies. Do you know anything about this?
Dave Hosmer, Chief, Nevada Highway Patrol:
Our issue is not which system is better, a 150-MHz system or an 800-MHz system. The FCC has told us to stop using frequencies for which we do not have licenses. We do not have sufficient licenses at this time to operate our trunked system the way it is designed to operate. We see no other option. The FCC has requested we cease operation by June 9.
Senator Tiffany:
Are you going to move to the NDOT system? Is that what you are saying? What is your proposed solution if we have not completed a State plan?
Mr. Hosmer:
We do not have a proposed solution yet. Every time we turn around, we are told by yet another expert there is yet another alternative. We have been working with the Department of Information Technology (DoIT) and NDOT to come up with the best solution. After discussions with the Governor’s office, we are asking for the ability to return to the IFC with a request involving large sums of money in the event that will be required.
Senator Rawson:
The issue before us now is taking the $800,000 out of this budget. The long‑term issue will be solved through another budget or through legislation. We are not being dismissive of the issue if we take money from this budget item. I think the suggestion is that a plan is required before that kind of money is expended.
Senator Tiffany:
Absolutely. Apparently, the problem is not close to a solution.
Senator Rawson:
It seems appropriate to take money out of this budget and deal with other matters later.
Senator Raggio:
We will delete the $800,000 from the Highway Fund from the budget. Let us move on to the next issue.
Mr. Krmpotic:
The Governor recommends the addition of 10 dispatcher positions in Las Vegas to address increased workload by staffing a fifth console on a 24-hour, 7‑day‑per‑week basis, and to provide relief for dispatchers staffing existing consoles. The recommendation also includes the addition of five positions to answer 90 percent of the telephone calls received in the dispatch center within 10 seconds. Staff has reviewed the agency formula to justify these positions. The calculations appear reasonable. The department has indicated dispatch services are also provided to various State and local agencies not funded from the Highway Fund. Providing services to non-highway-funded agencies through positions completely financed by the Highway Fund violates Article 9, Section 5, of the Nevada Constitution. The department does not have information that would enable staff to equitably allocate costs of dispatch services to other agencies. If the committee wishes to approve funding for 10 dispatch positions, the committee should consider a Letter of Intent directing the department to identify expenses relating to dispatch services and submit a funding plan for consideration in the next biennium budget.
Senator Raggio:
Chief Hosmer, do you understand that?
Mr. Hosmer:
I understand and completely agree.
Mr. Krmpotic:
The Governor recommends the elimination of eight trooper positions vacant longer than 6 months. Staff has previously noted elimination of these positions, in conjunction with reclassifications, results in a loss of 15 troopers. Currently, the ratio of sergeants to troopers is approximately one to seven. If the committee eliminates eight trooper positions, staff suggests the elimination of one sergeant position, based on the number of trooper positions proposed for elimination and the existing staff ratio.
Senator Raggio:
Would you like to comment?
Mr. Hosmer:
We concur with these staff recommendations. I have sufficient vacancies so it would take me 2 years to fill the positions recommended for elimination.
Mr. Krmpotic:
The agency has transferred about 60 vehicles to local entities. The Storey County Sheriff’s office has received 42 vehicles. Staff has received an opinion from legal staff indicating motor vehicles purchased with money from the Highway Fund cannot be transferred to local governments or other local entities, for use other than construction, maintenance, or repair of public highways or associated administration expenses, without receipt of consideration equal to the market value of the vehicle. The Nevada Constitution mandates this prohibition. Staff suggests a Letter of Intent directed to the Department of Administration and the Department of Public Safety indicating vehicles purchased out of the Highway Fund not be given to any entity that will not use the vehicles exclusively for the construction, maintenance, and repair of the public highways.
Senator Raggio:
With that limitation, to whom could the vehicles be given? Could other law enforcement agencies receive them?
Mr. Hosmer:
The Nevada Department of Transportation (NDOT) may be the only agency to which we could give vehicles. That agency does not need them. We can sell the vehicles.
Senator Raggio:
What action does staff recommend?
Mr. Krmpotic:
We suggest the Letter of Intent I described.
Senator Raggio:
Could the receiving agency pay some reasonable value?
Mr. Krmpotic:
Yes, it could.
Mr. Hosmer:
At present, we turn our vehicles over to State purchasing for disposition.
Mr. Krmpotic:
The department received IFC authority to reclassify two trooper positions to information system specialists. The department requested reclassifications during the interim to accelerate development of an automated system to capture officer time and activities to provide a management tool to evaluate workload and resource allocation. This recommendation appears reasonable.
The next item involves the dyed, or non-taxed, fuel program. The Governor recommends funding of $81,499 each year to support enforcement. Staff notes that A.B. 521, currently under consideration by the Assembly Committee on Ways and Means (Ways and Means), would expand responsibilities related to enforcement of these matters to the DMV. However, staff does not perceive a conflict. This recommendation appears reasonable.
ASSEMBLY BILL 521: Expands title and duties of Section for Control of Emissions from Vehicles of Department of Motor Vehicles to include enforcement of certain matters relating to use of special fuel. (BDR 43‑1273)
Senator Raggio:
What is this all about? Is this because some people use dyed fuel for agricultural purposes?
Mr. Hosmer:
It involves a tax evasion issue. Someone might be using dyed fuel for purposes other than those authorized. Mining and ranching are examples of authorized uses.
Senator Mathews:
It is a way to track authorized uses.
Mr. Krmpotic:
The next issue involves a budget analyst position. The Governor had recommended an additional budget analyst, citing additional duties and responsibilities associated with the Integrated Financial System Staff has made minor adjustments to this module, but we have recently learned the agency has received approval to reclassify a program officer position to an administrative services officer to provide additional administrative and fiscal support. In light of this reclassification and the existence of two management analyst positions, the addition of a budget analyst position does not appear reasonable to staff.
Senator Raggio:
Do you want to comment, Chief Hosmer?
Mr. Hosmer:
We concur.
Mr. Krmpotic:
Decision module enhancement E-278 recommends funding of approximately $1 million in FY 2004 to provide for furniture, equipment, and additional telecommunication and network wiring for the new highway patrol building in Las Vegas, due to be completed in June 2004. The original project cost for the building reflected $55,000 for furniture and $88,000 for data and telecommunication wiring. This recommendation has been amended by the Budget Division to add $300,000 to provide for telephone system and data drop lines. Staff recommends removal of this funding from the budget, and inclusion of the recommended funding in an appropriation bill to enable the department to spend funding over the biennium. The recommended funding is from the Highway Fund.
Senator Raggio:
We have noted your technical adjustments. Does any committee member object to the suggestions or recommendations on the issues we have discussed? These issues involve doing away with $800,000 for the high-band radio system in E‑279, approving the dispatch positions in E-277, and including elimination of one sergeant position in E-605. The equipment request item would be accompanied by an appropriate Letter of Intent. We would include reclassification of two trooper positions in E-805, and approval of the dyed fuel program. Mr. Krmpotic, you did not comment on it, but do you recommend including the high sulfur analyzers?
Mr. Krmpotic:
Yes.
Senator Raggio:
We would delete the budget analyst position in E-276 and remove funding as indicated for furnishings and equipment for the highway patrol building in Las Vegas. That will be covered in an appropriations bill. If that is the pleasure of the committee, I will accept a motion.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 201‑4713 AS RECOMMENDED BY STAFF.
SENATOR CEGAVSKE SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR COFFIN WAS ABSENT FOR THE VOTE.)
*****
Public Safety, Forfeitures – Law Enforcement – Budget Page PS-74 (Volume 3)
Budget Account 101-4703
Jim Rodriguez, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau:
Staff has not identified any significant issues in this budget account. It is a pass‑through account; it is paired with the Narcotics Control budget account (B/A 101-3744). This account provides the 25 percent match to the Byrne Grant funding. The Governor’s recommendations would result in a $1.3 million reserve at the end of the biennium. This amount includes the elimination of narcotics task forces. The Governor has not identified uses for the reserve at this time. Staff will refer back to this account when we discuss Narcotics Control issues.
Senator Raggio:
Do you have any comment on this, Mr. Comeaux? Is this the Governor’s recommendation?
Mr. Comeaux:
I have no comments; this is the Governor’s recommendation.
SENATOR RAWSON MOVED TO APPROVE THE RECOMMENDATION TO ELIMINATE THE NARCOTICS TASK FORCE EXPENDITURE.
SENATOR TIFFANY SECONDED THE MOTION.
Senator Rhoads:
Is this the agency that operates in the rural area? Is that to be eliminated?
Mr. Rodriguez:
Yes, this is the fund that funds the narcotics control task forces. The task forces operate mainly in the rural areas of the State and in Las Vegas in concert with the federal task force.
Senator Rhoads:
I thought we had an answer to this with the forfeiture money and part of the Byrne fund.
Mr. Rodriguez:
That issue was discussed in the subcommittee. The recommendation to eliminate funding for the Narcotics Task Force was made by the Governor based on an indication from the department that there would not be sufficient forfeitures to fund the operations of the Narcotics Task Force for the biennium. Since submittal of the agency requested budget, the department has identified additional forfeiture funds that could be used to fund the operations of the taskforce. Currently, there is approximately $1.7 million in cash reserves in the forfeiture accounts. Based on discussion with the agency, there are sufficient forfeiture funds to cover the Byrne Grant through the biennium and then some.
The primary concern with the funding for this budget account is with the federal FY 2004, the State’s FY 2005, funding. The President is recommending the Byrne Grant will be reallocated. Based on the President’s recommendations, it appears the State could suffer a 40 percent reduction in Byrne Grant funds. Given the level of funding from the forfeiture funds, should the 40 percent reduction materialize, the State would have sufficient funds to cover the projected reduction. However, this would require that additional forfeiture funds be obligated in anticipation of the 40 percent reduction.
Senator Raggio:
What is staff’s specific recommendation?
Mr. Rodriguez:
Can we begin discussion of budget account 101-3744?
Senator Raggio:
All right. Let us look at that so we can understand what you are suggesting.
Public Safety, Narcotics Control – Budget Page PS-84 (Volume 3)
Budget Account 101-3477
Mr. Rodriguez:
This account provides funding for the operations of the narcotics control task forces. Task forces operate primarily in rural areas of the State and participate with the federal task force in Las Vegas. Participation with the federal task force is the major funding source for the forfeiture account. The Governor is recommending elimination of the task force. There are no General Funds, Highway Funds, or other State funds associated with this budget account.
The Governor’s recommendation for the elimination of the narcotics task forces was based on information from the department indicating there would not be sufficient forfeitures to support the task forces through the 2004-2005 biennium. Since that initial determination, the department has secured $1.7 million in the forfeiture accounts. The Executive Budget reflects a total funding need of $875,259 to match the Byrne Grant and to continue the operations of the task forces. With the anticipated 40 percent reduction in the Byrne Grant, staff estimates another $352,000 would be needed to cover that reduction, based on the current funding structure, which involves a waiver from the local authorities to make up the difference. Those waivers are not guaranteed. In order to cover that shortage as well, staff recommends obligating another $526,317 in forfeiture funds to ensure there is adequate funding for the entire biennium in the event the 40 percent reduction is effective and the State does not obtain the waivers from the local governments.
Senator Raggio:
Mr. Comeaux, what is the Governor’s position on this?
Mr. Comeaux:
The Governor’s original recommendation for the narcotics task force was based on the understanding there would not be sufficient funding from forfeitures. I believe his position is if there now appears to be funding available, then he would not object to funding being reinstated.
Senator Raggio:
Is that the option suggested by staff?
Mr. Comeaux:
That is correct.
Senator Raggio:
Is anyone here from the narcotics task force? Would you come forward? Would you tell us what the narcotics control task force has been doing and the reason it should be continued?
Phillip H. Brown, Acting Chief, Investigation Division, Department of Public Safety:
We have had discussions with staff as well as with the subcommittee concerning narcotics control task forces. If the committee is interested in reinstating this funding, then 18 positions are saved. Mr. Rodriguez has explained that we do have funding in the forfeiture account sufficient to cover the operations of the task forces through the biennium. The narcotics control account also blends in with budget account (B/A) 101-3743, the next account to be discussed. These budget accounts are complementary. I do not want to say we could not operate under the Governor’s recommendation of 40 positions plus the 18 positions recovered in the narcotics control budget, B/A 101‑3744. In addition, there are 21 positions recommended for elimination in B/A 101‑3743. There is some crossover between these accounts. The narcotics control account, involving federal matching funds and forfeiture funds, is funded without cost to the State.
Senator Raggio:
Mr. Rodriguez, how does this tie to B/A 101-3743, involving the Investigation Division? What funding, if any, is available for retention of those positions?
Mr. Rodriguez:
Budget account 101-3473 is funded with general funds. The Governor recommends 21 positions be cut from that account to eliminate redundant functions between the metropolitan districts it serves and the Investigation Division. There are personnel in that budget account who interact daily and integrally with the narcotics task force. We have discussed which positions the Budget Division wants to recall. This was discussed in the subcommittee. There was disagreement over the positions requested by the division for reinstatement. Staff identified four positions that interact with the task forces in rural areas.
Senator Raggio:
Is that 4 of the 21 positions?
Mr. Rodriguez:
Four of the twenty-one positions were directly related to the task force. These positions were not in Las Vegas. There are additional positions that interact with the federal high intensity drug trafficking task force. The subcommittee felt there was sufficient involvement with that task force so the narcotics investigation division did not need to add additional resources to the effort.
Senator Raggio:
We have covered three different budget accounts. I think we need to consider where we are.
Senator Mathews:
Are there positions elsewhere that could absorb the 21 positions from the Investigation Division? Is that what you said? You mentioned four positions; can only those be absorbed?
Senator Raggio:
I think he said four of those positions to be eliminated interact with the narcotics control task force.
Mr. Rodriguez:
That is correct.
Senator Raggio:
This is in the rural areas outside Clark County.
Mr. Rodriguez:
That is correct.
Senator Mathews:
Are we putting the rest of them out on the street?
Mr. Rodriguez:
There are six or seven positions that interact with the federal task force operating in Las Vegas. There are four other positions identified by staff, with agency concurrence, which interact with the task force by providing direct support. In addition, there are some administrative positions the department has requested come back in order to support the investigators who support the task force. However, staff has identified 4 positions supporting the task force out of the 21 positions recommended for deletion.
Senator Mathews:
I do not understand. Twenty-one positions are recommended for deletion, and four positions are safe because they deal with another agency. Is that right?
Mr. Rodriguez:
This is complicated because of the interaction among the three accounts, the funding account and the two enforcement accounts. The task forces operate in the rural areas and in Las Vegas. They have 21 positions from the Investigation Division account, funded by the General Fund. The agency submitted to the subcommittee a list of 15 positions it wanted to call back. These positions supplied some type of support to the task force. Part of those 15 were for the federal program.
Senator Mathews:
I understand now.
Senator Raggio:
Well, I am not clear on this. Is the Governor still recommending the elimination of all of the positions in the Division of Investigations account? What is the situation regarding the other budget accounts?
Mr. Comeaux:
The Governor recommends the elimination of 21 positions less the 4 or 5 connected with the narcotics task forces. Apparently there is some supervisory relationship involved. If we reinstate the narcotics task force, then the related positions should not be eliminated. Apparently there are 6 positions altogether, so we would be talking about the elimination of 15 positions from the Investigation Division instead of 21 positions.
Senator Raggio:
Let us go back to B/A 101-4703. Can this be funded using the forfeitures? Is that the idea?
Mr. Rodriguez:
Budget account 101-4703 is the forfeiture fund. It funds the task force. That involves 18 positions in B/A 101-3744. There are sufficient funds. Staff recommends funding the task force as recommended in the Executive Budget and obligating an additional $526,312 to ensure funding.
Senator Raggio:
I am trying to understand how that is tied to B/A 101-3744 and B/A 101-4703. How do we cover those two budgets? What are you recommending to retain the task force?
Mr. Rodriguez:
In order to retain the task force, independent of the Investigation Division positions, funding would come from the forfeiture account, B/A 101-4703. We would fund the task force as recommended by the Governor, and obligate $526,312 in additional forfeitures to ensure that, should the 40 percent Presidential reduction materialize, sufficient funds would exist for task force operation without having to draw on the General Fund or some other fund source.
Senator Raggio:
If we take that action with respect to B/A 101-3744, how will B/A 101-4703 be affected?
Mr. Rodriguez:
Budget account 101-4703 funds that task force. That is where the money comes from.
Senator Raggio:
Would that be consistent?
Mr. Rodriguez:
Yes, if you approve the task force, you would need to approve the funding.
Senator Raggio:
Let us address that issue first.
Senator Coffin:
Clark County feels the Investigation Division rural unit was very useful. There were many drug busts in rural areas. Drug activity would migrate from metropolitan areas, such as Clark County and Washoe County, into rural areas if fewer personnel were available to police those rural areas. This is one of the areas where I have to disagree with the Governor’s budget.
Senator Raggio:
We are not talking about that.
Senator Coffin:
Are they not all linked?
Senator Raggio:
I think not, at least as concerns this particular item. Is it linked too?
Mr. Rodriguez:
Budget account 101-4703 is the funding budget account. Budget account 101‑3744 funds the task force; it is the task force itself. Those two accounts are tied.
There is an indirect and a direct relationship to the General Fund budget account, B/A 101-3743. We can deal with those separately, if you like. There is no necessity to fund the Investigation Division and the task force. The task force can function without the additional positions.
Senator Rhoads:
The bottom line is if we adopt the staff recommendation, the task force will come alive again. Is that right?
Mr. Rodriguez:
That is correct.
Senator Raggio:
That is what I thought we should deal with initially.
Senator Rhoads:
If you want, I will make a motion.
Senator Raggio:
I will take a motion to, as I understand it, continue the narcotics task force in B/A 101-3744, to fund it with the Byrne Grant and matching forfeiture funds, and to obligate $526,312 in additional forfeiture funds to secure revenue to offset the anticipated 40 percent reduction in the Byrne Grant, and, should that reduction not occur, those funds would redistributed to augment whatever Byrne Grant funds are received. Is that correct?
Mr. Rodriguez:
Yes.
Senator Raggio:
That would take care of B/A 101-3744 and B/A 101-4703. Is there a second to that motion?
Mr. Rodriguez:
If the committee takes that action, Legislative Counsel Bureau legal staff recommends that a bill draft request (BDR) be submitted to change the statute in order to allow forfeiture funds to be used in the required manner.
Senator Raggio:
Why would we need a BDR to accommodate this?
Mr. Rodriguez:
Currently, there is statutory language making it unclear whether this use of the forfeiture fund is justified. The legal recommendation is to resolve any doubt through a BDR.
SENATOR RHOADS MOVED TO CLOSE BUDGET ACCOUNT 101‑4703 AND BUDGET ACCOUNT 101-3744 BY CONTINUING THE NARCOTICS TASK FORCE THROUGH THE USE OF FORFEITURE FUNDS, OBLIGATING $526,312 IN ADDITIONAL FORFEITURE FUNDS TO COVER POSSIBLE BYRNE GRANT REDUCTIONS, PROVIDED THAT SUCH ADDITIONAL FUNDS WOULD BE REDISTRIBUTED TO AUGMENT BYRNE GRANT FUNDS SHOULD THE POTENTIAL REDUCTION IN BYRNE GRANT FUNDS NOT OCCUR.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Senator Raggio:
The next issue is the BDR. Do we need a BDR now that we have closed the budgets in the manner we used?
Mr. Rodriguez:
That is correct.
Senator Raggio:
Do the motion’s sponsor and the motion’s seconder support the BDR?
Senator Rhoads:
Yes.
Senator Coffin:
Yes.
Senator Raggio:
Now let us take up the Investigation Division budget. The Executive Budget indicates some of the investigative services are redundant. Mr. Comeaux has indicated, upon reflection, at least six of these positions should not be eliminated. This is where we are at the moment. These are all supported by General Fund appropriations.
Public Safety, Division of Investigations – Budget Page PS-77 (Volume 3)
Budget Account 101-3743
Mr. Rodriguez:
Staff has no additional information on this decision unit. The funding in this unit is about 96 percent from the General Fund.
Scott Slobe, Lobbyist, Department of Public Safety Employees Association:
During a previous hearing, the counties noted the Investigation Division assists them with major crimes calls. The division does homicide, sexual assault, and internal affairs investigations for various counties. Removal of 21 positions would limit the ability of the division to serve rural counties. In addition, the division also provides assistance to Clark County. One example is the AeroTech fire investigation for which the division provided numerous investigators. All 17 counties either submitted letters or provided testimony before the government affairs committees recommending no positions be eliminated from this budget.
Senator Raggio:
Are any of these positions vacant?
Mr. Brown:
Ten positions are currently vacant in B/A 101-3743.
Mr. Slobe:
Should it be the pleasure of the committee, my association would go along with the reduction of those positions currently open if the division were allowed to fill its lieutenant and deputy chief positions. A number of people are acting supervisors within this division. We hope you would entertain that thought.
Senator Raggio:
Would you repeat your point?
Mr. Slobe:
Currently, there are vacant lieutenant and deputy chief positions. We would like to see those vacant positions filled. This would provide proper supervision.
Senator Raggio:
What would the net effect be?
Mr. Slobe:
I do not have a dollar figure.
Senator Raggio:
I was speaking of the number of positions. You would like to see the recommendation changed. The 10 vacant positions would not be filled, but what else is it you want?
Mr. Slobe:
We would like the division to fill the vacant lieutenant positions and the deputy chief position.
Senator Raggio:
Would there still be 10 vacant positions?
Mr. Slobe:
Yes, there would be.
Senator Raggio:
I think we need to know the cost to the General Fund. Has staff worked on this?
Mr. Rodriguez:
This is the first I have heard of this particular option.
Senator Raggio:
Is there any funding available to address this matter other than the General Fund?
Mr. Rodriguez:
I am not aware of any other funding source. I can provide information regarding the impact on the General Fund of the options involving 4 positions, 6 positions or 21 positions. I was unaware of the option just suggested dealing with vacant positions.
Senator Raggio:
At the very least, we need to know the General Fund impact. There would be an additional expense to the budget as recommended if we were to approve the elimination of 10 positions instead of 21 positions. What are the costs associated with filling these positions?
Mr. Slobe:
There are two deputy chief positions. I believe one of those would be eliminated. I do not know how many lieutenant positions are unfilled statewide. I believe there are at least five.
Mr. Brown:
I have information that may provide a broad overview. Elimination of the 21 positions would result in about $1.6 million annually. One of the proposals discussed involved retention of 15 of those positions, eliminating only 6 positions.
Senator Raggio:
How did ways and means close this budget?
Mr. Rodriguez:
The subcommittee has not closed this budget.
Senator Raggio:
Rather than go back and forth tonight, I will ask staff to work with interested parties to look at the several suggested scenarios. We need to know what the existing General Fund cost will be. Are two deputy chief positions to be filled?
Mr. Slobe:
There are two deputy chiefs assigned. I would like to discuss this with the chief of the division to determine whether two deputy chiefs are needed.
Senator Raggio:
Do not push too far. There are several scenarios, the one Mr. Slobe just mentioned, and the one mentioned by Chief Brown. I think you should cost these out, because we would have to deal with General Fund money in the consideration of either option. We cannot decide this tonight. We will take this up at our next meeting.
Senator Coffin:
It sounded as though one of the scenarios would result in the layoff of five or six personnel. Is that true?
Mr. Brown:
Layoffs would depend on what positions are eliminated. If we reinstated 15 positions, as proposed by the subcommittee, and then reexamined the vacancies, that might eliminate any layoffs. That decision turns on the exact positions recommended for elimination and the cost. I think we have the cost figures associated with each of the options discussed, but we may not be organized sufficiently to present them right now. I believe we distributed a color-coded organizational chart (Exhibit C). The positions in red are those to be added back in the 15-position option. The saving to the General Fund under this option would be $879,000 over 2 years.
Senator Raggio:
This issue will be discussed at our next meeting. Are there other matters we can take up now?
Mr. Rodriguez:
The Executive Budget recommends elimination of a criminal investigator position and a polygraph position. The resulting savings would total $157,419 in FY 2004 and $157,697 in FY 2005. Staff recommends approval.
Senator Raggio:
Chief, do you have any problem with that recommendation? It eliminates several positions.
Mr. Brown:
That is not a problem for us. This is our 3 percent reduction.
Mr. Rodriguez:
Another small item properly allocates the partial cost of the Mesquite office. Should the committee entertain the recall of Investigation Division positions, some of those positions may be in the Mesquite office. If the Mesquite office positions are not retained, this decision unit would cease to exist.
Senator Raggio:
I do not think we can approve much else today. We will wait until our next meeting on this budget.
Senator Mathews:
I appreciate the delay. Some of my questions remain to be answered.
Senator Raggio:
Why do you not let them know what your questions are? They can be taken into consideration.
Senator Mathews:
My questions concern the positions pending decision.
Senator Raggio:
Is there new or additional testimony?
Steve Albertson, Under Sheriff, Carson City Sheriff’s Office:
I speak for most of the chiefs and sheriffs in the counties. We have appeared a number of times for these hearings. We disagree with the contention the Investigation Division performs activities that are redundant with those of individual counties. The division plays a vital role within all the counties of the State. There are times we need other agencies to do work for us such as internal investigations. We support reinstatement of all the division’s positions.
Senator Raggio:
Thank you. We will consider this at our next meeting. Let us go to the next budget.
Public Safety, Fire Marshal – Budget Page PS-132 (Volume 3)
Budget Account 101-3816
Mr. Rodriguez:
There are several major decision items in this account. The Governor recommends the addition of 22 new positions. This involves $538,096 in the first year and $823,057 in the second year. The new positions include fire inspection, training, and administrative support. Funding for these positions is also provided from hazardous materials certificates of $93,700 in FY 2004 and $355,800 in FY 2005. Fifteen positions would be added during the first year and the additional seven positions during the second year of the biennium. The Governor recommends adding 11 deputy fire marshals, 1 grants and project analyst, 4 trainers, 1 supply technician IV, 4 administrative assistants, and an account assistant I.
The primary basis for the staffing recommendation is the projection of the number of life and safety inspections and the number of hazardous materials inspections. The State Fire Marshall Division has provided some information on these projections. However, the fire marshal has been unable to provide consistent data to substantiate the inspection and revenue projections. The fire marshal has indicated there is not sufficient information to make these projections. As a result, the division itself is unsure of its workload.
Staff agrees with the primary findings of the blue ribbon committee established to examine fire marshal operations and to provide recommendations. The division has incorporated the committee recommendations in the budget account. The position increase stems from those recommendations. The division needs to find a stable funding source to support operations. Staff is not able to support the expenditures recommended in the Executive Budget. The agency information does not support the number of additional staff nor the allocation of proposed personnel.
Staff recommends an alternative plan: the addition of a deputy I, a hazardous material inspector; a deputy II, a life and safety inspector; a trainer to provide services in Las Vegas; a grant analyst to research additional funding for the division; an additional deputy I to serve the Elko, Eureka, and White Pine region; and an administrative position to assist the inspectors. This staff proposal would assist the development of sufficient information to determine the responsibilities of the division. This would lead to a plan to meet the division’s statutory requirements. It would also allow the development of a deployment plan for inspectors into the areas where needs have been identified. Staff believes there has been insufficient time to analyze the issues. These recommendations have been discussed with the fire marshal’s staff; while there is agreement in principle, the agency has provided additional input indicating a need for resources above that recommended by staff. The division has reported a license backlog of 5 months. Staff has just received this information and has not had time to analyze it.
There are ancillary costs associated with the 22 positions, including cars for the inspectors, vans for the trainers, and additional equipment. The Governor recommends $180,640 in the first year and $157,440 in the second year to purchase vehicles for each deputy marshal and trainer. Two cargo vans and two sedans are also requested. The cargo vans would be used to take equipment to training classes. The sedans would also be used by the trainers in normal day‑to‑day activities. The division is also requesting two administrative use vehicles. Staff has considered that request and has determined the agency has three general-purpose vehicles. Staff does not recommend funding because the additional two vehicles have not been justified. Such actions would result in a reduction of General Fund expenditures of $20,340 in the first year.
Senator Tiffany:
Why not remain at status quo funding until the action plans are completed? We have done this in other budget accounts. I am hearing about several training and information positions, but I do not hear any of these positions are imperative. The division has worked with 20 personnel for the last biennium. Why do we have to have the proposed personnel explosion?
Mr. Rodriguez:
The Governor’s recommendation for 22 new positions was based on recommendations from the blue ribbon committee. That group determined the agency has not met its existing statutory obligations for years. The committee did not suggest a funding level; rather, it identified division weaknesses and staffing deficiencies. There is a need to find a stable source of funding. The recommendations of the Governor address those issues. Staff is concerned the agency projections are not reliably based on data simply because the data does not exist. We have potential inspection levels from the agency.
Senator Tiffany:
I do not see inspectors among the recommended staff.
Mr. Rodriguez:
The position of deputy fire marshal I is a hazardous materials inspector. Deputy fire marshal II positions are life and safety inspectors.
Senator Tiffany:
The staff recommendation contains three personnel to address inspection issues. The other three positions do not add to that function.
Mr. Rodriguez:
There are multiple issues with this agency. The primary issue staff is trying to point out is the lack of sufficient data and a current plan to adequately address the issues identified by the blue ribbon committee. There is not a lot of empirical data to substantiate the personnel recommendations. Staff recommends the agency get sufficient personnel to consider the issues and develop a plan. The major objective of the plan is the identification of the locations and owners of hazardous materials, and a concept for inspection.
Senator Tiffany:
Do you think a staff of six is what is needed to build a plan and obtain the operational information?
Mr. Rodriguez:
That is correct. That is the reason we recommend some staff dedicated to that effort.
Senator Raggio:
Before the session began, we received a letter from Senator Townsend, the chairman of the Legislative Commission’s Subcommittee on Industrial Explosions. That letter enclosed the report of the blue ribbon committee.
I understand the staff recommendation of six personnel, but what is the issue relating to licensing?
Mr. Rodriguez:
Last night, I received an e-mail from the agency outlining the need for an additional administrative position to assist in the licensing function. The division indicated there are two licensing periods that need to be addressed. The administrative position is needed to help address the current backlog. Staff has not had time to validate this need.
Doyle G. Sutton, State Fire Marshal, State Fire Marshal Division, Department of Public Safety:
When I took office, we underwent review by the blue ribbon committee. It addressed the questions of what it would take to do the things needed to support firefighters in the State and to put the fire marshal’s office in a position where it could meet its statutory mandates.
We received information from various agencies within the State. Approximately 30,000 to 40,000 businesses in the State were of concern, but we could not substantiate those numbers. We extrapolated how many inspections a hazardous materials inspector could perform and how many a fire, life, and safety inspector could perform. We developed numbers of what it would take for us to meet our mandates. We incorporated our cooperative agreements with counties and cities into the calculation. This involves our sharing and delegating responsibilities to local officials. This led us to the recommended positions. We still have mandates we have not addressed. For example, since 1966, the fire marshal has had the mandate to provide public education about fire prevention. We have never had a position to do that, nor have we had any funding. We used a trainer for that function with the understanding that the incumbent would be multitasking. One administrative position is related to the licensing section. The person we have there now probably works in excess of 60 or 70 hours weekly to try to stay on top of things. There is a backlog now. We try to cross-train our people because we do not have sufficient staff to do the work.
When I arrived, I found an agency in deplorable condition. It did not have proper personal protective equipment. There was no detection equipment. There were no tools to do the job. There has been a consistent theme connected with the State Fire Marshal Division: place mandates on the division without providing people or equipment necessary to do the job. Our recommendation is based on what it would take to do the job we have. I understand we lack raw data in support of our personnel request. My predecessor estimated there were 30,000 businesses in the State. I do not like to deal with numbers I cannot substantiate.
Senator Raggio:
What would you do if we adopted the staff recommendation? That would provide six positions. You indicated an additional position would be necessary to deal with licensing. Would that be appropriate?
Mr. Sutton:
We could develop a plan with actual numbers. We have started a needs assessment. We have assigned deputies to the regions to collect data. It is very difficult to place personnel on special assignment, considering the fee‑based nature of the division. Building a database does not result in division income. If we were to take these positions, we could not depend on them to generate fees.
Senator Raggio:
I am not sure what you are telling us. If we follow staff recommendations augmented by the administrative licensing position, will that serve your purposes?
Mr. Sutton:
It will meet the licensing need.
Senator Raggio:
Will you have the ability to do the other things?
Mr. Sutton:
If we had the other personnel, we could develop the plan. We have already begun. Adding personnel would help us finish.
Senator Raggio:
How many others would be needed to continue plan development other than these seven we are talking about?
Mr. Sutton:
We would need at least one more deputy in White Pine County and another to work in the Tonopah area on data collection. Those two, added to the seven positions, would give us enough personnel to start the process.
Senator Raggio:
Would you explain these additional two positions.
Mr. Sutton:
One position would be a hazardous materials deputy, and one would be a fire, life, and safety deputy.
Senator Raggio:
I would like you to work with staff to figure out the costs of that option. We will take this up at our next meeting. There are other items in this budget we did not address; we will cover them at our next meeting as well.
Hazardous Materials Training Center – Budget Page PS-146 (Volume 3)
Budget Account 101-3834
Mr. Rodreguez:
This account is tied to the previous account. The fire marshal’s recommendation is to merge the hazardous materials inspectors with the State Fire Marshal Division. Other than this and the projections the fire marshal makes for these positions, there are no other issues in this account.
Senator Raggio:
Is a Letter of Intent recommended to provide quarterly reports?
Mr. Rodreguez:
Yes, we recommend a quarterly report to the IFC on the status of fee revenue.
SENATOR RHOADS MOVED TO CLOSE BUDGET ACCOUNT 101‑3834 BASED ON STAFF RECOMMENDATIONS.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR TIFFANY WAS ABSENT FOR THE VOTE.)
*****
DEPARTMENT OF BUSINESS AND INDUSTRY
Senator Raggio:
We will take up the issue of Nevada Attorney for Injured Workers.
B&I, NV Attorney for Injured Workers – Budget Page B&I-137 (Volume 2) Budget Account 101-1013
Joyce Garrett, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau:
The subcommittee concurred in the Governor’s recommendation to fund the relocation of the Las Vegas office from the Grant Sawyer State Office Building to the space in the non-State Rancho Sahara Corporate Center. The agency’s request to relocate is based on the similar proposed move of the Hearings Division and Appeals Office. The subcommittee reduced funding for office furnishings by $16,356 to reflect budget guidelines for new furniture. The subcommittee approved funding for a new phone system all three offices will shared.
The subcommittee did not approve the Governor’s recommendation of $6452 in additional in-state travel funding in each year of the biennium. It did approve money for a new case management system with a $28,998 reduction that eliminated funding for a contingency reserve and quality assurance. The subcommittee approved funding for three laptop computers and added additional funding to purchase three docking stations in order to eliminate duplication with desktop computers. The subcommittee did not approve funding for software upgrades since that funding was approved by the 71st Legislature. A $49,816 reduction for new equipment was approved in order to eliminate duplication of computer equipment expenses. A new telephone system for the Carson City office was also approved as the Governor had recommended.
Let me now turn to the new positions requested by the agency. Three new positions are requested for the Las Vegas office. The associated operating expenses recommended by the Governor combine for a total cost of $213,000 the first year and $202,000 in the second year. The positions are to address attorney caseload and staff workload in the Las Vegas office. The positions include a deputy attorney, a legal secretary, and a legal research assistant. The legal research assistant position would restore an existing position eliminated in another decision unit.
After discussions with the agency and examination of performance indicators, it appears the caseload has remained static over the last 7 years, increasing overall by 0.4 percent. This is a questionable basis for staff expansion.
Staff has proposed alternatives to the addition of three new positions. The first is to assign a half-time deputy attorney position from the Carson City office to the Las Vegas office where the agencies identifies the greater need. Secondly, a half-time deputy attorney position could be converted to a full-time position in the Las Vegas office. That would represent additional salary costs of $35,600 annually.
Senator Raggio:
Is this the issue that did not receive concurrence?
Ms. Garrett:
That is correct. A motion did not pass in the Senate subcommittee.
Senator Tiffany:
I believe Senator Coffin voted with the Assembly members, and Senator Rhoads and I voted together. I did not feel there was a compelling reason to add three positions.
Senator Raggio:
What about changing a half-time position to full time in the Las Vegas office?
Senator Tiffany:
The option we had was to assign the position from Carson City or approve converting the half-time position in Las Vegas to a full-time position. I think we were willing to do that, but unwilling to fund all positions.
Senator Raggio:
Is not one alternative to creating three positions simply to make the half-time Las Vegas position into a full-time position?
Senator Tiffany:
We had three options before us. We thought it would be fine to convert the half-time position to full time, but we did not agree to fund all three positions.
Senator Coffin:
The reason I went along with the Governor’s recommendation was the individual attorney. She is good and very fair. She has more work, and I thought she made a good case based on increased workload, although I understand staff is saying that performance indicators show no caseload growth. I think she testified there was growth, but maybe she did not present a document, or maybe it did not make it into the budget process. I think this is a natural outgrowth of the change in workers’ compensation. There are more people wanting help with the private companies handling workers’ compensation. This is now an entirely different thing.
Senator Tiffany:
The agency had seven positions that remained unfilled throughout the biennium. There was a huge turnover for various reasons. She simply did not make the case. The seven positions need to be filled, and the staff needs to be stabilized. The workload has not increased. The agency is getting a new management system. We were willing to provide an additional position, but not all three requested.
Senator Mathews:
Is there any General Fund money in this budget? I agree with Senator Coffin that privatization has increased the need. People do not know where to go, and go to the attorneys as a result. I suggest we adopt the Governor’s recommendation.
Gary L. Ghiggeri, Senate Fiscal Analyst, Fiscal Analysis Division, Legislative Counsel Bureau:
I believe this is funded through assessments with a dollar-for-dollar credit on the insurance premium tax for those entities paying insurance premiums. So, this would affect the General Fund. The payers get a credit on their insurance premium taxes. As a result, indirectly, there is a reduction on the insurance premium tax paid, based on this assessment.
Senator Raggio:
Let me suggest we approve this item with the enhancement of the half-time position in Clark County. We will have to go to conference on this budget. Are there other items in this budget not in concurrence with the Assembly position?
Ms. Garrett:
There are none in this account.
SENATOR TIFFANY MOVED TO CLOSE BUDGET ACCOUNT 101‑1013 BASED ON THE JOINT SUBCOMMITTEE RECOMMENDATION WITH APPROVAL OF FUNDING TO CHANGE A HALF-TIME DEPUTY ATTORNEY POSITION IN THE LAS VEGAS OFFICE TO A FULL-TIME POSITION.
SENATOR CEGAVSKE SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR COFFIN VOTED NO.)
*****
Mr. Ghiggeri:
I would like to verify my last intervention. If I am wrong, I will inform the committee.
DEP Air Quality – Budget Page CNR-57 (Volume 3)
Budget Account 101‑3185
Michael J. Chapman, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau:
This account was heard and closed by the Joint Subcommittee on Public Safety/Natural Resources/Transportation. The subcommittee’s recommendation was to hold this account open until the DMV Motor Vehicle Pollution Control account was closed. The subcommittee was concerned about the availability of adequate funds in that account to support recommended program changes in this account.
The subcommittee approved six new positions in this account, as recommended by the Governor, to address increasing air monitoring programs arising from new federal regulations and the non-attainment status with federal air quality standards in the Pahrump Valley. The subcommittee also recommended closing this account by reducing the transfer from the DMV Motor Vehicle Pollution Control account in the second year of the biennium from $400,000 to $200,000 in anticipation of reduced revenue due to the projected December 2005 closure of the Mojave generating facility in Laughlin. The new positions and associated costs, and the increased transfer to support the reserves, are funded with increased transfers from the DMV Motor Vehicle Pollution Control account. This was in anticipation of increasing the vehicle emission certification fee from $5 to $7 as provided for in Senate Bill 419. That bill failed to pass the Senate.
SENATE BILL 419: Makes various changes to provisions governing Pollution Control Account administered by Department of Motor Vehicles. (BDR 40‑1266)
Senator Raggio:
We took action in this committee to increase that fee by $1.
Mr. Chapman:
That is correct.
Senator Raggio:
Where does that leave us on this budget?
Mr. Chapman:
If that bill is introduced and passed, it will provide the funding necessary to support the six recommended positions. In recent discussions with the Division of Environmental Protection, I learned additional revenue will be generated from new business enterprises falling under new federal regulations. The division projects approximately $60,000 in the first year of the biennium and another $120,000 in the second year. These fee revenues have not been included in the Executive Budget. If the committee chooses to close this budget now with these positions included, staff recommends placing these additional revenues into the budget account with an offsetting reduction in the transfers from the DMV pollution control account.
This committee may also wish to reconsider the closing action taken in the DMV pollution control account to reduce the transfers into this account, thereby restoring the reserves by the amounts I just referenced.
Turning to other items in the account, the subcommittee approved a budget amendment that reduced federal funds received by this account. The subcommittee also recommended closing other items as recommended by the Governor with technical adjustments recommended by staff.
If the legislation to increase the vehicle emission certification fee by $1 does not pass and this decision unit is approved, then the division would have to return to the IFC to adjust decision unit maintenance M-590.
Senator Raggio:
I am not clear on what action we should take on the pollution control account. If we base this budget on the additional $1 fee, what action would we need to take? Do we have two options in that event?
Mr. Chapman:
Since the committee has closed the DMV pollution control account with the recommendation to introduce legislation increasing the fee by $1, I believe you can close this account as recommended by the subcommittee with the understanding, or the issuance of a Letter of Intent, that if the legislation does not pass, then the division would have to come to the IFC with work program adjustments for this increased funding.
SENATOR RHOADS MOVED TO CLOSE BUDGET ACCOUNT 101‑3185 AS RECOMMENDED BY THE SUBCOMMITTEE, ISSUING A LETTER OF INTENT TO THE DIVISION OF ENVIRONMENTAL PROTECTION STATING THAT, IN THE EVENT LEGISLATION INCREASING THE VEHICLE EMISSION CERTIFICATION FEE FAILS TO BECOME LAW, THE DIVISION SHOULD PROVIDE A REVISED WORK PROGRAM TO THE INTERIM FINANCE COMMITTEE.
SENATOR COFFIN SECONDED THE MOTION.
Senator Raggio:
What else has to be in the motion? I understand that we do not have to reopen the DMV account.
Mr. Chapman:
You do need to reopen the pollution control account in order to reduce the transfers by $60,000 in the first year and $120,000 in the second year.
Senator Raggio:
Let us consolidate this into a single motion The motion would include opening the DMV account, making the adjustments, and closing that account. Is there any objection from the sponsors?
SENATOR RHOADS MOVED TO CLOSE BUDGET ACCOUNT 101‑3185 AS RECOMMENDED BY THE SUBCOMMITTEE, ISSUING A LETTER OF INTENT TO THE DIVISION OF ENVIRONMENTAL PROTECTION STATING THAT, IN THE EVENT LEGISLATION INCREASING THE VEHICLE EMISSION CERTIFICATION FEE FAILS TO BECOME LAW, THE DIVISION SHOULD PROVIDE A REVISED WORK PROGRAM TO THE INTERIM FINANCE COMMITTEE; AND, IN AN ANCILLARY ACTION, TO REOPEN BUDGET ACCOUNT 101-4722, DECREASE TRANSFERS FROM THAT ACCOUNT TO BUDGET ACCOUNT 101-3185 BY $60,000 IN FY 2004 AND $120,000 IN FY 2005, AND RECLOSE BUDGET ACCOUNT 101‑4722.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Senator Raggio:
We stand adjourned at 6:56 p.m.
RESPECTFULLY SUBMITTED:
James D. Earl,
Committee Secretary
APPROVED BY:
Senator William J. Raggio, Chairman
DATE: