MINUTES OF THE
ASSEMBLY COMMITTEE ON WAYS AND MEANS
June 3, 1993
The Assembly Committee on Ways and Means was called to order by Chairman Morse Arberry, Jr., at 8:00 a.m., on Thursday, June 3, 1993, in room 352 of the Legislative Building, Carson City, Nevada. Exhibit A is the Meeting Agenda, Exhibit B is the Attendance Roster.
COMMITTEE MEMBERS PRESENT:
Mr. Morse Arberry, Jr., Chairman
Mr. Larry L. Spitler, Vice Chairman
Mrs. Vonne Chowning
Mr. Joseph E. Dini, Jr.
Mrs. Jan Evans
Ms. Christina R. Giunchigliani
Mr. Dean A. Heller
Mr. David E. Humke
Mr. John W. Marvel
Mr. Richard Perkins
Mr. Robert E. Price
Ms. Sandra Tiffany
Mrs. Myrna T. Williams
COMMITTEE MEMBERS ABSENT:
STAFF MEMBERS PRESENT:
Mark Stevens, Fiscal Analyst
Gary Ghiggeri, Deputy Fiscal Analyst
ASSEMBLY BILL 634Delays perspective expiration of certain provisions concerning program for investment in new enterprises.
Mrs. Evans explained AB 634 was a continuation of AB 286 of the 66th session. AB 634 would change the expiration date from June 30, 1993 to June 30, 1994 for the Nevada Capital Investment Program feasibility study.
Larry Struve, Director, Nevada Department of Commerce, advocated the passage of AB 634. He referred to a memorandum which gave brief history of how funds were appropriated from AB 286, (Exhibit C). He explained the Department of Commerce raised approximately $66,000 through private sector donations to match a $50,000 1991 state appropriation. Economic International was selected to perform the study. He explained venture capital fund expenditures for FY 1993 were $99,778.14, (Exhibit C). Expenditures were as follows: (1) first payment to Economic Innovation, $30,000 on November 3, 1992; (2) second payment to Economic Innovation, $30,000 on April 19, 1993; and (3) third payment to Economic Innovation, $27,000 scheduled for June 15, 1993. The remaining balance, $10,880, under the current schedule was obligated to Economic Innovation but would have to be expended by June 30, 1993. The unobligated balance, $1,877, would revert to the General Fund.
Mr. Struve said if AB 634 was passed it would allow Economic Innovation, Department of Economic Development and the private sector steering committee to complete Phase III of the project during the 1993-94. He requested a letter of intent to permit the state to continue to work with the private sector steering committee over the next biennium. Mr. Struve provide a list of items to be included in the letter of intent, (Exhibit D). He suggested reporting the progress of the fund back to the 1995 session.
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MRS. EVANS MOVED DO PASS AB 634 TO INCLUDE A LETTER OF INTENT TO ENDORSE CONTINUED STATE AND PRIVATE SECTOR COOPERATION.
MR. MARVEL SECONDED THE MOTION.
MOTION CARRIED UNANIMOUSLY BY VOICE VOTE.
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ASSEMBLY BILL 660Makes appropriation to Life Line Pregnancy and Vocational Training Center.
Senator Joseph Neal, District 6, supported AB 660. He acknowledged the importance of financial support for programs such as Life Line Pregnancy and Vocational Training Center. He explained the original one-shot appropriation request had been reduced from $200,000 to $194,000 because of a $6,000 private donation.
Lynn Richmond-Scales, Executive Director of Programs, Family Life Pregnancy Assistance Vocational Educational Center, gave a three minute video presentation to the committee and read from prepared testimony, (Exhibit E). She said the Life Line Pregnancy Center was founded in Las Vegas 19 years ago. The agency's caseload had increased from 35 clients per month to 550 per month. The client load had reached such a level that without substantial monetary awards, pregnant women, families in crisis and in particular pregnant teens would have to be turned away. She asserted Life Line was the only support service agency available for parenting males and females with such a broad spectrum of available services in the Las Vegas area. The agency requested funding to support counseling, education and support services necessary to help teen parents with the responsibilities of parenting. She urged the committee to support AB 660.
Mrs. Williams asked if the program worked in conjunction with the Hatchery House. Ms. Richmond-Scales stated they did not.
Ms. Giunchigliani asked if the agency was a non-profit organization registered with the Secretary of State's office. Ms. Richmond-Scales replied it was a registered non-profit agency. Ms. Giunchigliani asked the agency's source of funding. Ms. Richmond-Scales replied from United Way and private donations. Ms. Giunchigliani asked who helped sponsor the education program. Ms. Richmond-Scales stated the Clark County Adult Education Department provided instructors for GED and computer courses. Ms. Giunchigliani asked the qualifications of the agency's counseling staff. Ms. Richmond-Scales replied counselors and social workers were licensed by the state. The agency also had a registered nurse on staff. Ms. Giunchigliani asked if the agency counseled for abortions. Ms. Richmond-Scales stated the agency did not counsel for abortion.
Bobbie Gang, Nevada Womans Lobby, opposed AB 660. She asserted in such difficult budget times the program should be funded through private donations and public grants. Many other programs which served the same population had been cut in both the state and county budgets. Ms. Gang suggested funding state programs that were eligible for federal matching funds, specifically the WIC program, presumptive eligibility for prenatal care and grants for prenatal care for low income women.
SENATE BILL 107 Makes appropriation to legislative fund for computer equipment and software for legislative counsel bureau.
Senator Bill O'Donnell, District 5, sponsored SB 107. He explained SB 107 would allow for minimal growth in the data processing center of the Legislative Counsel Bureau. Senator O'Donnell referred to a list of equipment and software which had been recommended to the Commission's Subcommittee on Computer Application to the Legislative Process to increase utilization of automated functions within the legislature and legislative staff, (Exhibit F). Three scenarios were presented to the legislative subcommittee: expected growth; $444,100, minimal growth; $213,450, and no growth, $132,700. Recognizing severe budget constraints the subcommittee recommended pursuing funding the no growth scenario. This required an appropriation of $132,700 which was a little over one quarter of what was authorized last biennium. The purchase would result in the smallest data processing expense in the last decade. The recommended appropriation covered three areas: central hardware; central software; and decentralized equipment.
John Crossley, Director, Legislative Counsel Bureau (LCB), explained effective computer operations were essential to the legislature. Mr. Crossley asserted the small equipment purchase would serve to maintain current operations.
Mrs. Evans recalled a computer equipment purchase during the 65th session which helped designate reapportionment during the 66th session. She asked how the equipment was currently being utilized. Fred Dugger, Manager, Information Systems, replied two of the five workstations originally purchased for reapportionment were currently being utilized for Geographic Information Services. The remaining three workstation were integrated into the VACS cluster network and were being utilized for photo composition work.
Mrs. Evans reminded the committee the Legislative Counsel Bureau reverted $105,000 of the original computer allocation. She was convinced the LCB had requested only what was essential for effective operations.
SENATE BILL 492 Makes appropriation to legislative fund.
Mr. Crossley explained SB 492 made an appropriation $1,521,364 to finance the 1993 legislative session through June 30, 1993, (Exhibit G). Revenues from publications sales, NELIS subscriptions, lobbyist fees and bill mailing service would be received at a later date. Operating, personnel and travel costs expenditures were listed in Exhibit G.
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MR. MARVEL MOVED DO PASS SB 492.
MRS. EVANS SECONDED THE MOTION.
MOTION CARRIED UNANIMOUSLY BY VOICE VOTE.
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SENATE BILL 280 Creates account for Lake Tahoe Nevada State Park and authorized expenditures for sewer and water systems.
Wayne Perock, Chief, Field Operations, Nevada State Parks, explained recommendations within SB 280 were a result of an interim study conducted on State Parks. SB 280 would establish a special account to fund sewer and water systems at the Lake Tahoe Nevada State Parks. The Tahoe Regional Planning Association (TRPA) imposed unique and costly requirements on the system. Mr. Perock said charges which were anticipated to raise approximately $30,000 in additional revenue would be imposed on park users during the high season to fund the additional requirements. SB 280 would also allow the reserve to balance forward. The reserve balance would be utilized to fund major renovation and repair to the system every ten years. Over the last fiscal year State Parks expended $114,000 to renovate and repair sewer and water systems in Lake Tahoe. The bill would also fund operations and maintenance, $29,000 annually, for the system.
Mr. Perock requested an amendment to set up similar accounts in other Nevada state parks.
Chairman Arberry asked if the bill requested $144,000 for major renovations. Mr. Perock replied State Parks was completing approximately $114,000 in major renovations such as electrical upgrade, replacement pumps and tank maintenance. However he was not aware of a need for another allocation for renovations. Chairman Arberry concluded the $144,000 allocation was not needed at this time. Mr. Perock replied the allocation was not necessary at this time, however, the account to fund major renovations in the future was critical. Chairman Arberry asked if the $29,000 request for maintenance over the next biennium was essential. Mr. Parock explained the system would meet certification requirements over the next biennium without an additional allocation for maintenance and repair.
Mr. Marvel asked how many other state parks could utilize a special account for sewer and water treatment. Mr. Perock noted Cave Lake State Park in Ely had special Environmental Protection Agency requirements which cost an additional $4,000 annually for testing.
Chairman Arberry asked Mr. Perock to provide the proposed amendment to the Legislative Counsel Bureau for review. Mr. Perock would provide the information.
Senator Thomas Hickey, District 2, testified in support of SB 280. He asserted the park system in the Lake Tahoe and other areas of the state had experienced tremendous deterioration and urged the committee to pass SB 280. He argued the State could use its parks system to generate revenue particularly in the small rural counties.
Senator Hickey asked Mr. Perock to explain the proposed amendment. Mr. Perock explained the amendment would set up similar water and sewer system repair accounts in other state parks.
Senator Hickey intended to submit a separate bill which would transfer responsibility for road maintenance and repair from State Parks to the Nevada Department of Transportation. Gas tax would be the funding source for the repairs. He noted washouts in the Valley of Fire, one of the top tourist attractions in southern Nevada, took two years to repair.
SENATE BILL 385 Increases required balance of prison revolving account.
Eunice Garrett, Department of Prisons, supported SB 385. She explained the revolving fund provided money to released indigent prisoners for meals called "gate money". Gate money totalled approximately $21 per day. The revolving fund was insufficient and it was necessary to constantly replenish the fund. SB 385 would increase the revolving fund to $10,000. The number of released inmates in 1980 was 845 that number increased to 3,152 in 1990. The average meal check provided to inmates was approximately $26.
Mr. Marvel asked if the bill was posed because of the Facilities Capacity Act. Ms. Garrett replied additional funds were requested in response to the Facilities Capacity Act. Mr. Marvel asked the fiscal impact of the proposed Facility Capacity Act on the prison revolving fund. Ms. Garrett explained 1,000 inmates were anticipated for release as a result of the Facilities Capacity Act therefore approximately $26,000 would be needed. She noted only indigent prisoners would receive gate money upon release.
Bob Seale, Nevada State Treasurer, opposed SB 385 because he did not agree with revolving funds and the number of bank accounts within the Nevada state system. He asserted 350 individual bank accounts with significant sums of money were trapped in demand deposits which the state was unable to invest. He approximated the total untapped resources within the accounts was $30 million. He clarified increasing the prison revolving fund from $5,000 to $10,000 was not of significant impact to the system, however, the money within the revolving fund would better serve the state if it was part of the General Fund and warrants were distributed through the normal process. He remarked this method was far more efficient and allowed the Treasurer the opportunity to invest the money for the state. Recently 112 bank accounts had been closed. He was not suggesting the prison revolving fund be closed. Instead, he asserted the bill would perpetuate the problem rather than solve it.
Chairman Arberry asserted released prisoners needed cash not a check and asked how this dilemma could be solved. Mr. Seale's recognized prisoners needed cash rather than a check. He did not have a solution for the problem, however, the solution should not include increasing the size of the revolving fund.
Mrs. Evans was alarmed by Mr. Seale's statement that $30 million in untapped resources existed in various bank account. She was not aware of the number and resources within the accounts and asked how the state could better distribute and gain interest from the accounts. Mr. Seale recommended a more responsive accounting system than the one currently utilized by the state Controller's Office. The current system was over 20 years old and inadequate to perform the duties required. He was working closely with the Controller to resolve some of these problems. Improvements would be implemented regardless of legislation.
Mrs. Evans requested the Treasurer and the Budget Office report the number and balance of the accounts by midsummer, 1993. Mr. Seale agreed to provide the information. Chairman Arberry suggested the information be provided to the Interim Finance Committee.
Mrs. Williams asked why the Controllers balance sheet did not report the information on the accounts. Mr. Seale replied tracking the balance within the accounts was not a problem, depositing the funds to the account in a timely manner was a problem. He noted one agency averaged a 15-day delay in depositing moneys. Until the checks were deposited it was impossible for the Treasurer or the Controller to track the funds. Mrs. Williams asked how this problem impacted revolving funds. Mr. Seale replied it had no impact.
Ms. Garrett understood the Treasurer's concerns; however, they had no impact on SB 385. She noted the revolving account was also used for infrequent and small payments such as water rights and payments to BLM. The revolving account was necessary because the Department of Prisons did not know the number of prisoners which would be released at any given time. She noted if deposits to the revolving fund had not occurred, the account would have been insolvent several times.
Mr. Spitler asked the impact of designating the account for only gate money. Ms. Garrett replied the other small bills totaled approximately $100 annually and had little or no impact on the account. She noted in FY 86 the account paid approximately $45,000. In FY 92 approximately $80,000 was paid.
DATA PROCESSING SUBCOMMITTEE REPORT
Mr. Spitler said as Chairman of the Ways and Means Subcommittee on Data Processing, he appreciated the opportunity to report the subcommittee's recommendations to the Committee on Ways and Means. He publicly thanked the members of the subcommittee - Assemblywomen Evans, Chowning and Tiffany, for their hard work and assistance in formulating the recommendations.
The Subcommittee conducted two meetings including the work session to review the Executive Budget's proposal to consolidate Information Service functions, including telecommunications and the state communications system for most state agencies, into a single centralized agency within the proposed Department of Administration. The subcommittee unanimously agreed the Governor's proposal to consolidate Information Services theoretically and technically had merit. However, the subcommittee also unanimously agreed a proposal of this magnitude which could lead to the potential elimination of up to 46 positions representing reorganization savings in the approximate amount of $3.3 Million should be completely supported by a feasibility study, iron clad analysis and well formulated and documented conclusions. To approach the issue of consolidation of information services in this manner would ultimately lead to the development of a well thought-out implementation plan with reasonable milestones and documented objectives based on the supporting analysis performed. The subcommittee, in reviewing the consolidation proposal and the two different scenarios to implement the Executive Budget's recommendations submitted by the Department of Data Processing, determined a thoroughly planned and documented approach to the consolidation issue had not been conducted. The subcommittee was particularly concerned the Executive Budget's consolidation proposal did not address the potential impact to agency service levels, did not include a realistic cost benefit analysis and did not include conclusive expectations as to what benefits consolidation would or could accomplish.
Therefore, the subcommittee, in unanimous agreement, recommended an alternative to the administration's consolidation proposal, premised on the joint agreement between the Assembly Ways and Means and Senate Finance Committees, to retain the Department of Data Processing as a cabinet level state agency, rather than a division under the proposed Department of Administration, and in concurrence with the joint money Committees' agreement, to retain the planning functions for information services within the operating agency rather than locating this function within the proposed Department of Finance as recommended in the Executive Budget.
The legislative alternative the subcommittee was proposing consisted of five primary recommendations which were as follows: first, the subcommittee recommended that a far reaching feasibility study be commissioned to review the pros and cons for consolidating data centers, payroll systems, network integration, communications consolidation and the 800 mhz issue. The study must include fully documented findings which support the study's conclusions. The conclusions must address and include a specific implementation plan complete with milestones, documented costs for implementing the study's findings and/or savings which were projected to be accrued. The savings and/or costs to be accrued must be specifically delineated within the study's findings. The study's findings and recommendations should be completed prior to the beginning of the 1995 Executive Budget process for appropriate consideration in developing the Governor's 1995-97 budget.
Second, the subcommittee recommended to unbundle the centralization of all Data Processing and communications positions transferred and consolidated into the proposed information technology contracting services budget and to fully fund each position within their current state agency location and budget. This would ensure agency information service requirements were not arbitrarily jeopardized pending the outcome of the interim feasibility study.
Third, the subcommittee recommended reestablishing the Director's Office, Information Services, which was recommended to be eliminated in the Executive Budget.
Fourth, the subcommittee recommended, as proposed in the Executive Budget, to transfer the Telecommunications Division from the Department of General Services and the State Communications Board from the Department of Motor Vehicles to the Department of Information Services and maintain these entities as separate divisions. This recommendation would ensure a cohesive administrative approach for managing the state's information resources and the means for communicating and transmitting those resources.
Fifth, the subcommittee recommended that the Advisory Committee for Data Processing, the Telecommunications Advisory Board, and the State Communications Board be consolidated into one Information Technology Advisory Board. With the transfer of the Telecommunications Division and the State Communications Board in the Department of Information Services, the need for three separate boards is no longer necessary.
The recommendations Mr. Spitler cited summarized the major actions proposed by the subcommittee. He addressed the specific subcommittee recommendations by budget account.
As indicated, the subcommittee recommended to reestablish the Director's Office with its existing staffing component of five positions. The Director's Office would continue to provide for the overall administrative direction and financial support to the revamped Department of Information Services. The subcommittee recommended a vacant Planning Analyst position currently in the Planning Division and reflected as reorganization savings in the Executive Budget be transferred to the Director's Office and be given responsibility for contract administration. The Director, Department of Data Processing, testified the Department must become far more proactive and readily available to provide guidance and much needed expertise to state agencies in the development of contracts and the enforcement of contract stipulations as more original software development work was contracted out to private sources. Currently, this expertise was not readily available within the Department. Therefore, state agencies must rely upon internal resources and staff which might not possess the level of expertise needed to assure the state's safety from liability, to assure the state receives the quality product they contracted for and to hold private contractors liable for their performance.
The subcommittee recommended the Director's Office budget be funded via assessments collected from each division within the department including the State Communications Board and the Telecommunications Division based upon a position count cost allocation methodology. Allocating the costs for the Director's Office in this manner would provide for a more equitable and uniform distribution of costs to the supporting divisions.
As indicated earlier, the subcommittee, in total agreement with the joint money Committees, recommended to reestablish the Planning Division within the Department of Information Services with its existing staffing configuration less the one vacant Planning Analyst position recommended to be transferred to the Director's Office. By reestablishing the Planning Division within the operating agency, there was no need for the proposed Information Technology Advancement Division which was recommended to be located in the proposed Department of Finance. The subcommittee recommended the Information Technology Advancement Division be eliminated since it would basically duplicate the functions of the Planning Division at a savings of approximately $790,000 over the biennium.
The Planning Division would play an instrumental role in providing the professional support for the comprehensive feasibility study of Information Services the subcommittee has recommended to be completed during the interim. As a resource tool for the department, the subcommittee recommended $75,000 for FY 1994 and $100,000 for FY 1995 be included in the Planning Division Budget to be used to hire expert consulting services. The subcommittee recommended this funding be made available to hire, as needed, contract consultants for the interim study as well as for services the Department might require during the biennium, but might not possess the specific expertise or capability in- house.
The subcommittee, in recognition of the growing relationship between Information Services and the various forms of increasing complex communications mechanisms which were used to transmit information, recommended a vacant Computer Operations Analyst position in the computer facility budget be transferred to the Planning Division to be responsible for communications planning. The communications planning component for the overall strategic planning process would be of significant importance during the biennium especially with the subcommittee's recommendation to consolidate the functions of the state telecommunications and the microwave communications system into the Department.
INFORMATION TECHNOLOGY SERVICES
As indicated, the subcommittee recommended to unbundle the consolidation of all Data Processing and communication positions transferred into this budget and fully fund these positions and transfer them back to their current agency location and budget. Although this subcommittee recommendation by far reflects the most significant action taken in this budget, other significant budgetary actions were proposed.
The subcommittee recommended the approval of four (4) new positions and their support costs included in the Executive Budget for the Welfare Division's Nomad's project. The approval of these four positions would allow the Department to work closely with the Nomad's development contractor early in the development stage of the project which would help facilitate a smooth transition for when the state assumes responsibility for the completed Nomads system.
The subcommittee recommended eliminating four (4) new microcomputer specialist positions recommended in the Executive Budget and their support costs for an estimated savings of approximately $290,000 over the 1993-95 biennium. The justification for the recommended Microcomputer Specialist staff became less significant with unbundling the consolidation proposal and transferring back data processing staff to the agency from where they originated. Additionally, the Department of Data Processing, in their two consolidation proposals identified these four new Microcomputer Specialist positions as savings to assist in accomplishing the level of reorganization savings which had been recommended in the Executive Budget.
The subcommittee recommended approval of the Department's proposed personal computer network upgrade. This recommendation would provide $110,200 for FY 1994 to accomplish the necessary personal computer software and hardware upgrades which would provide for increased productivity and allow for the use of special computer software development tools such as computer aided software and joint application development techniques.
INFORMATION PROCESSING SERVICES
The Information Processing Services Budget provides for the operation and maintenance of the state's mainframe computer. Based upon a reevaluation of projected facility revenues and costs for the 1993-95 biennium, several of the Executive Budget's recommended enhancements which were delayed until the second year of the biennium, were recommended to be initiated in FY 1994 as originally requested by the Department. The subcommittee's recommendation would allow for the initiation of Phase I of the Disaster Recovery Implementation Planning process in FY 1994 which would provide the Department a greater degree of flexibility to complete the Phase I deliverables and report back to the 1995 Legislature with the results of their analysis. Phase I of the Disaster Recovery Implementation Planning process consisted of hiring a consultant to develop a master disaster recovery plan for users of the state's mainframe; a physical security review to identify potential disaster prevention methods and techniques; a risk assessment and business impact analysis; a back up plan for the ES 9000; an assessment of ES 9000 customers to determine critical applications and an action plan for future phases.
The subcommittee also recommended the purchase of specialized software in FY 1994 versus FY 1995 which would allow the computer facility an automated means to track hardware and software products used at the facility as well as customer agencies. This capability would automate tracking and maintenance schedules and equipment and parts replacement planning and would be used to maintain an automated inventory system, an important component for disaster recovery planning.
The subcommittee also recommended a more equitable distribution of training funds between fiscal years of the 1993- 95 biennium. The Executive Budget had recommended training funds for fiscal year 1995 only which would not allow for the much needed continuing training and education on the new mainframe computer.
The subcommittee concurred with the Executive Budget's recommendation to provide for special equipment purchases for the mainframe system critical to the development and implementation of the welfare Nomad's project. The equipment recommended would be lease/purchased and would include an additional communications controller, expanded memory capacity, additional disk storage and an upgrade to the system's tape cartridge drive. Since the lease purchase of these equipment upgrades would not occur at the beginning of FY 1994 as reflected in the facility's budget, the subcommittee was able to reduce the lease purchase costs for the upgrade by approximately $64,300 for FY 1994.
The subcommittee, in reevaluating the computer facility's projected revenue sources, estimated approximately $1.1 million in additional facility revenue over the amounts recommended in the Executive Budget would be generated primarily as a result of the Welfare Division's Nomads project. Since many uncertainties still remained with the projected milestones as well as mainframe computer requirements for Nomads, the subcommittee recommended a letter of intent be transmitted to the Department instructing the Department if the projected revenues were realized, user agencies should receive facility rebates and/or adjustments to their facility billings taking into consideration the facility's operating costs and need for a reasonable reserve for operating.
Mr. Spitler stated one item was pending subcommittee recommendation, the finalization of structure of the Telecommunications Board. Recommendations would be presented at a later date.
MRS. EVANS MOVED TO ADOPT THE DATA PROCESSING SUBCOMMITTEE RECOMMENDATIONS.
MS. TIFFANY SECONDED THE MOTION.
MOTION CARRIED UNANIMOUSLY BY VOICE VOTE.
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ATTORNEY GENERAL - PAGE 17
Chairman Arberry asked for staff recommendations. Mr. Stevens state staff and the Data Processing subcommittee recommended the restoration of a Information System Specialist, $55,665 in FY 94 and $56,004 in FY 95, and associated in-state travel, operating, training expenses.
Staff did not make any recommendations related to the enhancement positions. Mr. Stevens said a case could be made for each of the additional positions. He noted several of the positions were funded through General Fund allocations. He explained the information had been distributed as a result of a request from the committee. Mr. Stevens asked the committee to consider phasing in or starting the positions October 1, 1993, since the length of the session could precluded July 1, 1993 hirings.
Mr. Stevens remarked the base budget included $78,300 in FY 94 and $205,150 in FY 95 for computer hardware. The request would restore budget cuts offered up in FY 92. Additionally, a memorandum from the agency indicated they shorted themselves in rent for Las Vegas and requested an additional $25,200 annually for leased space for new positions. He asked the committee to note that there were about $175,000 annually requested for rent in the SIIS Fraud and Telemarketing budgets, most of which would be in Las Vegas. Additionally, in FY 95, the Attorney General would be moving to the Adams Building and increasing their space from 11,957 sq. ft. to 14,592 sq. ft.
Mr. Humke asked if the positions listed for Telemarketing and SIIS Fraud Unit budgets had been negotiated. Mr. Stevens indicated in addition to the positions recommended in the Executive Budget, potentially eight Telemarketing and 26 SIIS Fraud positions would be included in the Attorney General's budget. He was unsure of the final outcome of the two budgets. Mr. Humke explained as a member of the Telemarketing subcommittee he had recommended members of the Attorney General's office, Department of Commerce and the Consumer Affairs Department negotiate the number of additional positions needed to perform the Telemarketing function and report back. Mr. Stevens explained regardless of actions taken to close the Attorney General's budget, Telemarketing and SIIS Fraud unit recommendations would have to be handled separately.
Mrs. Evans interjected the telemarketing bill had not been processed by the Senate. She informed the committee the Director of the Department of Commerce was attempting to resolve some of the remaining questions related to the Telemarketing budget. She hoped an answer would be available soon.
Mrs. Evans explained telemarketing considerations should not prevent the committee from closing the Attorney General budget.
Mr. Humke clarified the telemarketing function should not have General Fund impact. Mr. Stevens clarified the Telemarketing and SIIS Fraud unit would be handled separately. Additionally, if adjustments were necessary the budget could be reopened.
MRS. EVANS MOVED TO CLOSE THE ATTORNEY GENERAL BUDGET AS RECOMMENDED BY STAFF TO INCLUDE RESTORATION OF THE INFORMATION SYSTEM SPECIALIST POSITION.
MR. SPITLER SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY BY VOICE VOTE.
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GAMING CONTROL BOARD - PAGE 320
Chairman Arberry asked for staff recommendations. Mr. Ghiggeri noted the reduction recommended for Overtime Pay was consistent with the actions of the Legislature in the past; historically, overtime had not been funded in this budget. The agency did not concur with the adjustment. Based upon budget reductions the agency advised they must have overtime funded to accomplish their job responsibilities. Mr. Ghiggeri commented an adjustment under Base for Racing Commission, $20,000 for each year of the biennium, would provide an additional $15,000 per year as requested by the Gaming Control Board to assume the function and segregate the cost associated with that function into a separate category. This funding would provide for dues, lab fees, and independent contractor expenses; actual expenses in FY 92 were $32,740. In order to be consistent with the actions of both the Assembly Ways and Means and Senate Finance Committee funding for the Purchasing Assessment, $5,400 in FY 93 and $4,418 in FY 95, was recommended for deletion. The agency anticipated a 5 percent increase in State Motor Pool rates and requested an additional $11,500 in In-State Travel for each year of the biennium to cover the costs. However, a rate increase was no longer anticipated and the funds were recommended for deletion.
Mr. Ghiggeri explained a reduction under M-200 for Other Contract Services, $10,500 in each year of the biennium, reflected the anticipated savings that would be accrued in maintenance contracts based upon a cost per copy agreement for the lease of six new copy machines. Operating Lease Equipment Rent provided for the continuation of the lease of the two existing and lease of six additional copiers. A recommendation for the six new copy machines had been included in the Executive Budget, however, a corresponding reduction in Other Contract Service was not made. The reduction in Non-State Owned Building Rent, $50,167 in FY 95, provided the agency sufficient funding for seven months of rent in Las Vegas prior to relocation to the Adams Building.
Mr. Ghiggeri suggested the committee delete funding for the Sound System, $12,000 in FY 95, for the meeting room in Las Vegas Office Building. He stated the item could be included in the construction/furnishing of the Las Vegas Building. He noted a CIP project in excess of $2 million which would provide furnishing and grounds improvements for the building would be reviewed by the CIP subcommittee.
Mr. Stevens recommended the committee adopt the following recommendations: (1) remove the funds budgeted for a 5 percent increase in State Motor Pool Rates; (2) reduce Other Contract Services by $10,500 in each year based on renegotiated maintenance contracts; (3) reduce Non-State Owned Building Rent by $50,167 in FY 95 to coincide with anticipated rental charges; and (4) remove the purchasing assessment $5,400 in FY 94 and $4,418 in FY 95.
Mr. Stevens asked the committee for direction on the following: (1) fund Overtime Pay, $60,064 in each year of the biennium (although this item had not been approved in the past, the agency indicated because of budget reductions they could not complete there job duties without the allocation); (2) increase the allocation for Racing Commission Expenses by $15,000; and (3) to delete the Sound System allocation from the Las Vegas Office Building and include it in the CIP budget.
MR. MARVEL MOVED TO CLOSE THE GAMING CONTROL BOARD BUDGET TO EXCLUDE OVERTIME PAY ALLOCATION AND TO INCREASE THE RACING COMMISSION EXPENSES ALLOCATION BY $15,000 PER YEAR, DELETE THE PURCHASING ASSESSMENT $5,400 IN FY 94 AND $4,418 IN FY 95, REDUCE IN-STATE TRAVEL BY $11,500 IN EACH YEAR OF THE BIENNIUM, REDUCE OTHER CONTRACT SERVICES BY $10,500 IN EACH YEAR OF THE BIENNIUM, REDUCE NON-STATE OWNED BUILDING RENT BY $50,167 IN FY 95 AND INCLUDE THE SOUND SYSTEM ALLOCATION IN THE CIP BUDGET.
MR. PERKINS SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY BY VOICE VOTE. MR. PRICE, MS. GIUNCHIGLIANI AND SPEAKER DINI WERE ABSENT.
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Mr. Stevens explained there might be a need for additional agents to enforce 6-A Regulations. Information as supplied by the Gaming Control Board indicated changes to this regulation were pending. The Gaming Control Board estimated that three new Agent II positions might be required if Regulation 6-A was amended to adopt the U.S. Treasury's new requirements. Mr. Stevens suggested a letter of intent should be provided to the agency indicating they should approach the IFC if Regulation 6-A was amended and additional staff was required.
Mr. Stevens noted funding was recommended by the Governor (E-700) to provide additional positions (4 agents and 1 clerical) to implement the Slot Route Operator Tax. Mr. Stevens recommended if the tax was not approved, those positions and costs be deleted; $253,070 in FY 94 and $243,974 in FY 95. He noted this item would be pending until a decision was reached in the Assembly Committee on Taxation.
MR. MARVEL MOVED TO INCLUDE A LETTER OF INTENT TO THE GAMING CONTROL BOARD INDICATING THEY SHOULD APPROACH THE IFC IF REGULATION 6-A WAS AMENDED AND ADDITIONAL STAFF WAS REQUIRED.
MR. HELLER SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY BY VOICE VOTE. MR. PRICE, MS. GIUNCHIGLIANI AND SPEAKER DINI WERE ABSENT.
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INVESTIGATION FUND - PAGE 329
Chairman Arberry asked for staff recommendations. Fiscal staff had no recommendations for this budget.
MR. PERKINS MOVED TO CLOSE THE BUDGET AS RECOMMENDED BY THE GOVERNOR.
MR. MARVEL SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY BY VOICE VOTE. MR. HELLER, MR. PRICE, MS. GIUNCHIGLIANI AND SPEAKER DINI WERE ABSENT.
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SMALL BUSINESS - PAGE 508
Chairman Arberry asked for staff recommendations. Mr. Stevens indicated a revised budget had been provided by the Budget Office for this account. The revenue source to fund the Small Business Program was inadvertently excluded from the original budget and was included in the revised budget. The revised budget included: (1) reduce the Transfer From Community Service which was included in the Agency Transfer category by $85,200 in FY 94 and $85,520 in FY 95, (2) increase vacancy savings for the value of a small business associate position which was approximately $45,000 in each year of the biennium, and (3) reduce operating expenses by $40,000 in each year of the biennium. Mr. Stevens noted the reduction in revenue would be offset by a reduction in expense. Some concern had been expressed about eliminating the Small Business Associate position. Mr. Stevens asked if the committee was interested in hearing an alternative plan which would include funding for the position.
Chairman Arberry noted the Small Business Associate position was highly important to the operations of the program and was the only position eliminated within the budget account.
Mrs. Evans asked if the Executive Budget proposed to transfer the position. Mr. Stevens indicated the position was proposed to be placed in the Department of Business and Industry. The consensus of both money committees had been to retain the position within the Commission on Economic Development. He noted if the position was transferred to the Department of Business and Industry there was potential for loss of Department of Defense matching funds. Mr. Stevens indicated the safest route was to keep the position within the Commission on Economic Development.
Mr. Stevens identified two funding sources for the position. The first option was a General Fund allocation of $45,200 in each year of the biennium. The second option was to increase the use of Petroleum Overcharge Rebate Funds reserve. Currently reserves totaled $359,606 in each year of the biennium. Mr. Stevens noted $800,000 in revenue had been generated in the current year. The Executive Budget projected revenues for the Petroleum Overcharge Rebate Fund would be $575,000 in each year of the biennium. Mr. Stevens explained if additional Petroleum Overcharge Rebate funds were utilized for the position the reserve balance at the end of the next biennium would be approximately $268,000.
MRS. EVANS MOVED TO CLOSE THE SMALL BUSINESS BUDGET ACCOUNT TO RESTORE THE SMALL BUSINESS ASSOCIATE POSITION TO THE COMMISSION ON ECONOMIC DEVELOPMENT TO BE FUNDED BY PETROLEUM OVERCHARGE REBATE FUNDS.
MR. MARVEL SECONDED THE MOTION.
MOTION CARRIED UNANIMOUSLY BY VOICE VOTE. MR. PRICE, SPEAKER DINI AND MS. GIUNCHIGLIANI WERE ABSENT.
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MOTION PICTURES - PAGE 593
Chairman Arberry asked for staff recommendations. Mr. Stevens noted in response to inquiries from the committee, the Director of the Motion Picture Division indicated he would use additional funds for the following: (1) new professional position in the southern Nevada office; (2) increase a .5 clerical to full-time; and (3) utilize $60,000 in contract services location photography, script breakdown and analysis. Mr. Stevens explained the Director proposed collecting contract services, $60,000, through sale of advertising in the annual Production Services Directory or through service fees for obtaining various permits.
Mr. Stevens explained the General Fund impact of the agency's requests: (1) advertising revenue $60,000, no General Fund impact; (2) professional and clerical positions would be funded with 75 percent room tax revenue, $37,302 in FY 94 and $47,221 in FY 95, and 25 percent General Fund revenue, $12,434 in FY 94 and $15,740 in FY 95.
Chairman Arberry asked how the Senate closed the budget. Mr. Stevens indicated Senate action funded the full-time professional position in southern Nevada and .5 clerical position with 75 percent room tax and 25 percent General Fund allocation.
Mrs. Evans asked if the Lieutenant Governor, Commission on Tourism and Commission on Economic Development concurred with the funding distribution. Mr. Stevens had not received concurrence from the parties. Mrs. Evans explained the Lieutenant Governor supported a bill which capped expenditures from tourism, and since concurrence from the Commission on Tourism, Commission on Economic Development and the Lieutenant Governor had not been achieved, she was hesitant to support using room tax revenue for these positions. Mr. Stevens noted the estimated tourism reserve balance at the end of the biennium was $780,000. If the positions were approved, the reserve balance would be lowered to approximately $700,000.
Mr. Humke did not oppose hearing the opinion of the Lieutenant Governor, however, funding positions within the Motion Picture budget with tourism funds was very appropriate since tourism efforts were closely related to the purposes of the Motion Pictures budget. He asserted this use of room tax revenue was more appropriate than many other room tax allocations.
Mrs. Evans was concerned the Lieutenant Governor and the agencies had not concurred with the recommendations, she did not oppose authorizing the positions.
Mrs. Chowning argued authorization for the $60,000 in contract services would have no impact on the General Fund and should be approved by the committee. Chairman Arberry noted Senate action did not include authorization for additional contract services but the Assembly Committee could do so if it wished.
MR. HUMKE MOVED TO CLOSE THE MOTION PICTURES BUDGET AS RECOMMENDED BY THE GOVERNOR TO INCLUDE ONE FULL-TIME PROFESSIONAL POSITION IN SOUTHERN NEVADA, .5 CLERICAL POSITION TO BE FUNDED 75 PERCENT ROOM TAX REVENUE AND 25 PERCENT GENERAL FUND AND AUTHORIZE GENERATING $60,000 FOR CONTRACT SERVICES TO BE FUNDED THROUGH ADVERTISING REVENUE.
MS. TIFFANY SECONDED THE MOTION.
Mr. Spitler stated he would vote against the motion because these type of allocations eroded the room tax revenue base.
MOTION CARRIED. MR. MARVEL, MRS. CHOWNING, MR. HELLER, MR. PERKINS, MS. TIFFANY, MR. HUMKE, MR. PRICE AND CHAIRMAN ARBERRY VOTED YES. MRS. EVANS AND MRS. WILLIAMS AND MR. SPITLER VOTED NO. MS. GIUNCHIGLIANI AND SPEAKER DINI WERE ABSENT.
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COMMISSION ON TOURISM - PAGE 602
Chairman Arberry asked for staff recommendations. Mr. Stevens recommended adjusting the room tax rate to the level the agency requested, 4.5 percent in FY 94 and 6 percent in FY 95. The adjustment would generate revenue totaling $27,515 in FY 94 and $17,356 in FY 95. Some additional technical adjustments to expenditures were needed. For example, a position was funded as .75 rather than full-time in the second year of the biennium because of an October 1, 199_ effective date. If the position was upgraded to full-time it would cost $9,173. Mr. Stevens noted adjustments to fringe benefits were required to offset the cost of upgrading the positions to full-time; $3,600 in FY 94 and $1,600 in FY 95. Reserve funds would have to be adjusted if the revenue estimates were slightly increased. Mr. Stevens noted as a result of action taken earlier, an increase in the agency transfer from this account to the Motion Picture budget was necessary.
Mr. Spitler asked how the Washington office was funded. Mr. Stevens replied the office was funded by Commission on Economic Development, Commission on Tourism and Department of Transportation.
MR. MARVEL MOVED TO CLOSE THE COMMISSION ON TOURISM BUDGET AS RECOMMENDED BY STAFF.
MRS. EVANS SECONDED THE MOTION.
THE MOTION CARRIED. MR. SPITLER VOTED NO. SPEAKER DINI, MS. GIUNCHIGLIANI AND MRS. WILLIAMS WERE ABSENT.
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HAZARDOUS MATERIALS TRAINING - PAGE 1440
Chairman Arberry asked for staff recommendations. Mr. Stevens remarked this budget account had been held pending approval or disapproval of several bills affecting hazardous materials. A major item was an agency transfer from the Department of Environmental Protection to the hazardous materials account for disposal at the Beatty Dump Site. Projection were estimated to be $459,000 over the next biennium. Mr. Stevens said new revenue projections were $250,000 to $260,000 for the current fiscal year. He noted a slight reserve of $325,000 existed. Staff recommended reducing the revenues from Environmental Protection by $199,000 in FY 94 and $194,000 in FY 95. The reduction would lower the original projections from $459,000 to $260,000 in FY 94 and $265,000 in FY 95. As a result of lower revenue estimates the reserve category would be depleted.
Mr. Stevens noted the hazardous material subcommittee supported AB 113 which required the state fire marshal to establish a mobile training team to train volunteer firemen to respond to incidents involving hazardous materials. Mr. Stevens indicated if the bill passed it would cost $23,400 in FY 94 and $21,000 in FY 95. Initially the reserve balance was thought to be a possible funding source, however, new revenue estimates eliminated that option. SERC grants were suggested as an alternative funding source because AB 113 trained volunteers for incidents involving hazardous materials. If SERC was utilized as a funding source, the reserve account in the budget would be reduced from $239,000 to $194,000 in the second year of the biennium.
MR. PERKINS MOVED TO CLOSE THE HAZARDOUS MATERIALS TRAINING CENTER BUDGET AS RECOMMENDED BY STAFF.
MR. MARVEL SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY BY VOICE VOTE. SPEAKER DINI AND MS. GIUNCHIGLIANI WERE ABSENT.
The meeting was adjourned at 10:55 a.m.
Assembly Committee on Ways and Means
June 3, 1993