MINUTES OF THE MARCH 23, 2005 MEETING OF THE INTERIM FINANCE COMMITTEE LEGISLATIVE COUNSEL BUREAU Carson City, Nevada
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1 MINUTES OF THE MARCH 23, 2005 MEETING OF THE INTERIM FINANCE COMMITTEE LEGISLATIVE COUNSEL BUREAU Carson City, Nevada Chairman William J. Raggio called a meeting of the Senate Committee on Finance and the Assembly Committee on Ways and Means sitting as the Interim Finance Committee (IFC) to order on Wednesday, March 23, 2005, at 8:00 a.m. in Room 4100 of the Legislative Building. Exhibit A is the agenda. Exhibit B is the guest list. All exhibits are available and on file at the Fiscal Analysis Division of the Legislative Counsel Bureau. COMMITTEE MEMBERS PRESENT: Senator William J. Raggio, Chairman Assemblyman Morse Arberry Jr., Chairman Assemblyman Moises Denis Assemblywoman Heidi Gansert Assemblywoman Christina R. Giunchigliani Assemblyman Lynn Hettrick Assemblyman Joseph Hogan Assemblywoman Ellen Koivisto Assemblywoman Sheila Leslie Assemblyman John Marvel Assemblywoman Kathy McClain Assemblyman Richard Perkins Assemblyman Bob Seale Assemblywoman Debbie Smith Assemblywoman Valerie Weber Senator Bob Beers Senator Bob Coffin Senator Bernice Mathews Senator Dean Rhoads Senator Dina Titus COMMITTEE MEMBERS EXCUSED: Senator Barbara Cegavske LEGISLATIVE COUNSEL BUREAU STAFF: Scott G. Wasserman, Chief Deputy Legislative Counsel Mark W. Stevens, Fiscal Analyst, Assembly 1
2 Gary L. Ghiggeri, Fiscal Analyst, Senate Robert Guernsey, Principal Deputy Fiscal Analyst Connie Davis, Recording Secretary Carol Thomsen, Ways and Means Committee Secretary A. ROLL CALL. Carol Thomsen, Assembly Committee on Ways and Means Committee Secretary called the roll, and Chairman Raggio announced a quorum of each House was present. *B. APPROVAL OF MINUTES FROM THE JANUARY 12, 2005, MEETING. ASSEMBLYMAN MARVEL MOVED APPROVAL OF THE MINUTES FOR THE JANUARY 12, 2005, MEETING MINUTES. ASSEMBLYMAN HETTRICK SECONDED THE MOTION. THE MOTION CARRIED. (Senator Cegavske, Senator Titus, Assemblyman Arberry and Assemblyman Perkins were not present for the vote.) C. WORK PROGRAMS APPROVED BY THE GOVERNOR DUE TO AN EMERGENCY PURSUANT TO NRS (5) (a) (INFORMATIONAL ONLY). Chairman Raggio announced that the work programs under Item C were approved by the Governor due to an emergency and were reflected as informational items only. 1. Department of Conservation and Natural Resources Division of Forestry Intergovernmental Forestry FY 05 Addition of $154, in Receipts from Elko County, $21, in Receipts from Eureka County, and $20, in receipts from White Pine County to reconcile approved budgets with the legislative approved amounts. The work program was approved by the Governor in an effort to prevent utilities from being turned off at various Division of Forestry county fire stations. Requires Interim Finance approval since the amount added to the Elko County category exceeds $50, The following work programs, submitted by the Department of Corrections to repair and replace hot water loop lines and hot water heaters in Units 8 and 11 at the Nevada State Prison, were approved by the Governor pursuant to NRS (5) (a). Without the necessary repair, there would be no heat or hot water for the inmates, and the inability to relocate inmates due to crowded conditions had created a critical situation. 2
3 2. Department of Corrections Nevada State Prison FY 05 Addition of $106, to accept a budgetary transfer from Warm Springs Correctional Center to fund an emergency project to repair the hot water loop lines and hot water heaters in Units 8 and 11 at the Nevada State Prison. Requires Interim Finance approval since the amount added to the Maintenance of Building and Grounds category exceeds 10% of the legislatively approved level for that category. 3. Department of Corrections Warm Springs Correctional Center FY 05 Deletion of $106, to provide for a budgetary transfer to fund an emergency project to repair the hot water loop lines and hot water heaters in Units 8 and 11 at the Nevada State Prison. Requires Interim Finance approval since the amount deducted from the Personnel Services category exceeds $50, *D. APPROVAL OF GIFTS, GRANTS, WORK PROGRAM REVISIONS, ALLOCATION OF BLOCK GRANT FUNDS AND POSITION CHANGES in accordance with Chapter 353, Nevada Revised Statutes. Chairman Raggio announced that testimony would be heard on the following work programs: Items 24; 27 and 28 required a public hearing; 30 required a public hearing; 31 was withdrawn; 37; 39 required a public hearing; 42; 47; 52 was withdrawn; 67 and 70 were withdrawn; and 87. Chairman Raggio also noted that the position change request for the Office of Veterans Services, Nevada State Veterans Home, had been withdrawn. ASSEMBLYMAN HETTRICK MOVED APPROVAL OF ALL WORK PROGRAMS AND POSITION CHANGES NOT ENUMERATED BY CHAIRMAN RAGGIO. ASSEMBLYWOMAN LESLIE SECONDED THE MOTION. THE MOTION CARRIED. (Senator Cegavske, Senator Titus, Assemblyman Arberry and Assemblyman Perkins were not present for the vote.) I. Work Program Revisions Requiring Interim Finance Committee Review. 1. Attorney General - Administration - FY 05 - Transfer of $20, from the Operating category to the In-State Travel category, $21, from the Operating category to the Equipment category, and $45, from the Operating category to the Information Services category to fund projected 3
4 expenditures for the remainder of the fiscal year. Requires Interim Finance approval since the amount transferred from the Operating category exceeds $50, Attorney General - Medicaid Fraud - FY 05 - Addition of $53, in Federal State Medicaid Fraud Control Unit grant funds to cover projected expenditures for the remainder of the fiscal year. Requires Interim Finance approval since the amount added to the Litigation Expense category exceeds 10% of the legislatively approved level for that category. 3. Attorney General - Tort Claim Fund - FY 05 - Transfer of $1,000, from the Reserve category to the Tort Claims category to fund anticipated tort settlements for the remainder of the fiscal year. Requires Interim Finance approval since the amount transferred to the Tort Claims category exceeds 10% of the legislatively approved level for that category. 4. Secretary of State FY 05 Addition of $30, in Training Charges to continue providing training classes for notaries. Requires Interim Finance approval since the cumulative amount added to the Notary Training category exceeds $50, Secretary of State Help America Vote Act Elections Account FY 05 Transfer of $2,500, from the Statewide Voter Registration category to the Voting Machine Replacement category to provide funding for the final payment to Sequoia Voting Systems. Requires Interim Finance approval since the amount transferred to the Voting Machine Replacement category exceeds $50, Department of Administration Motor Pool FY 05 Addition of $190, in Vehicle Rental revenue to fund projected expenditures for the remainder of the fiscal year due to an increase in the number of miles driven by state employees and significant increases in fuel costs. Requires Interim Finance approval since the amount added to the Vehicle Operation category exceeds 10% of the legislatively approved level for that category. 4
5 7. Department of Administration Purchasing Division Commodity Food Program FY 05 - Addition of $848, in Direct Sales to allow for an increase in the amount of processed food orders for school districts. Requires Interim Finance approval since the amount added to the Food Processing Program category exceeds 10% of the legislatively approved level for that category. 8. Department of Personnel FY 05 Addition of $11, in Certified Public Managers (CPM) Program Training Charges; transfer of $ from the Outof-State Travel category to the CPM Program category, $1, from the In- State Travel category to the CPM Program category, $40, from the Operating category to the CPM Program category, and $9, from the Reserve category to the CPM Program category to accurately track and sufficiently fund the CPM Program. Requires Interim Finance approval since the cumulative amount transferred from the Reserve category exceeds $50, Department of Education Other State Education Programs - FY 05 Transfer of $71, from the Reserve category to the System for Accountability Information In Nevada (SAIN) category to allow for the fourth quarter payments school districts for support staff related to the SAIN program. Requires Interim Finance approval since the amount transferred to the SAIN category exceeds 10% of the legislatively approved level for that category. 10. Department of Education Comprehensive School Health HIV/AIDS FY 05 - Addition of $207, in Comprehensive School Health federal grant funds to align budget authority with grant authority approved by the federal government for improving the health, education, and well-being of young people through coordinated school health programs. Requires Interim Finance approval since the amount of the grant exceeds $100, Department of Education Improving America s Schools Act (No Child Left Behind) Title I Grants FY 05 Addition of $17, in Reading First federal grant funds and a transfer of $921, from Reading First Aid to Schools category to the Reading First State Grant Administrative and Technical Assistance category to align revenue authority and administrative and technical assistance expenditure authority with the levels approved by the federal 5
6 government. Requires Interim Finance approval since the amount transferred to the Reading First State Grant Administrative and Technical Assistance category exceeds 10% of the legislatively approved level for that category. 12. Department of Education Improving America s Schools Act (No Child Left Behind) Title I Grants FY 05 Addition of $22, Basic/Concent federal grant funds, $3, in Migrant Aid federal grant funds, and deletion of $ in Even Start federal grant funds, $14, in Transfer from Other Budget Account, and transfer of $3, from State Neglected or Delinquent Aid to Schools category to State Neglected or Delinquent Administration category, $21, from the Migrant Aid to Schools category to the Migrant Administration category, $49, from the Even Start Aid to Schools category to the Even Start Administration, $182, from the Basic Aid to Schools category to the Program Improvement Administration category, $2,406, from the Basic Aid to Schools category to the Program Improvement ATS category, $51, from the Basic Aid to Schools to the Program Improvement State category, $213, from the Reading First Aid to Schools category to the Reading First Administration, $388, from the Comprehensive School Reform All Schools category to the Comprehensive School Reform - Title I category, $81, from the Comprehensive School Reform All Schools category to the Class Size Reduction Comprehensive School Reform Administration and Technical Assistance category to align revenue authority and administrative and technical assistance expenditure authority with the levels approved by the federal government. Requires Interim Finance approval since the amount transferred to the Reading First State Grant Administration and Technical Assistance category exceeds 10% of the legislatively approved level for that category. 13. Department of Education Continuing Education FY 05 Addition of $289, in Adult Basic Education federal grant funds to allow for prior year refunds for the Adult Basic Education program. Requires Interim Finance approval since the amount added to the Adult Basic Education Aid to Schools category exceeds 10% of the legislatively approved level for that category. 14. Department of Cultural Affairs State Historic Preservation Office FY 05 Addition of $230, in federal Historical Preservation grant funds and $225, in federal Survey and Planning grant funds to align federal National Park Service grant authority with anticipated receipts and expenditures for survey and planning contract costs. Requires Interim Finance 6
7 approval since the amount added to the Survey and Planning category exceeds 10% of the legislatively approved level for that category. 15. Department of Cultural Affairs State Library and Archives FY 05 Addition of $929, in federal Library Title I grant funds to provide authority for an anticipated increase in drawdowns by subgrantees for federal reimbursement grants to public libraries. Requires Interim Finance approval since the amount added to the Library Development Title I category exceeds 10% of the legislatively approved level for that category. 16. Department of Cultural Affairs State Library and Archives Literacy Coalition FY 05 Addition of $22, in federal Adult Basic Education grant funds transferred from the Department of Education to align federal authority with actual receipts and anticipated expenditures in order to adequately provide for grant-related expenditures associated with statewide leadership and training activities. Requires Interim Finance approval since the amount added to the Teacher Training category exceeds 10% of the legislatively approved level for that category. 17. Department of Agriculture Plant Industry - Pest, Plant Disease, and Noxious Weed Control FY 05 Addition of $4, in United States Department of Agriculture (USDA) Fire Ants grant funds, $4, USDA Wood Borer grant funds, $8, in USDA Bio-Control grant funds, $15, in USDA Gypsy Moth grant funds, and transfer of $39, from the Personnel Services category to the USDA Pest Detection category, $4, from the Personnel Services category to the USDA Wood Borer category, and $8, from the Personnel Services category to the USDA Bio-Control category to pay for obligations incurred prior to the conclusion of existing USDA insect infestation control grants. Requires Interim Finance approval since the amount transferred from the Personnel Services category exceeds $50,
8 18. Department of Agriculture Registration and Enforcement FY 05 Transfer of $61, from the Equipment Reserve category to the Equipment category to replace an old gas chromatograph with a new gas chromatograph with a mass spectrometer, and to acquire a freezer for a new termite monitoring program. Requires Interim Finance approval since the amount transferred to the Equipment category exceeds $50, Department of Agriculture Animal Health Veterinary Medical Services FY 05 Addition of $12, in Public Health Preparedness grant funds transferred from the Health Division and transfer of $11, from the Transfer to Livestock Inspection (Budget Account 4546) category to the Personnel Services category to continue the West Nile Surveillance Program. Requires Interim Finance approval since the cumulative amount transferred to the Personnel Services category exceeds $50, Department of Business and Industry Insurance Division Captive Insurers FY 05 Addition of $7, in Application Fees and $45, in Examination Fees to fund qualifying examinations of applicants for licensing as domiciled Nevada captive insurers. Requires Interim Finance approval since the amount added to the Program Expenses category exceeds 10% of the legislatively approved level for that category. 21. Department of Business and Industry Real Estate Division Real Estate Education and Research FY 05 Transfer of 34, from the Reserve category to the Operating category to produce and distribute agency newsletters to licensees. Requires Interim Finance approval since the amount transferred to the Operating category exceeds 10% of the legislatively level for that category. 8
9 22. Department of Business and Industry Financial Institutions Division FY 05 Transfer of $20, from the Reserve category to the Operating category and $20, from the Reserve category to the Equipment category to cover projected operating expenditures for the remainder of the fiscal year and to provide funds for furnishings and equipment for the move to the new Department of Conservation and Natural Resources building. Requires Interim Finance approval since the amount transferred to the Operating category exceeds 10% of the legislatively approved level for that category. 23. Department of Business and Industry Housing Division Low Income Housing Trust Fund FY 05 Addition of $7,052, in Real Property Transfer Taxes to provide funding necessary to assist and encourage the private sector and other governmental entities in the creation and maintenance of affordable housing throughout the state. Requires Interim Finance approval since the amount added to the Loan Disbursements category exceeds 10% of the legislatively approved level for that category. 24. Department of Business and Industry Housing Division Energy Weatherization Program FY 05 Transfer of $6, from the Reserve category to the Personnel Services category and $6, from the Training category to the Personnel Services category to provide funding for one new Compliance/Audit Investigator III position. Requires Interim Finance approval since the amount transferred to the Personnel Services category includes new staff. Lon DeWeese, Chief Financial Officer, Department of Business and Industry, Housing Division, appeared before the Committee to request approval to transfer funds to the Personnel Services category to pay the personnel costs for one new full-time Compliance/Audit Investigator position. Mr. DeWeese explained the request for a new position was based on the results of a statutorily required annual program evaluation for fiscal year 2003, which indicated the Housing Division s Energy Weatherization Program was understaffed and recommended a Compliance/Audit Investigator III position. Mr. DeWeese said it was believed the position would generate immediate savings over the funds being paid to a private contractor to conduct the compliance/investigation work. Noting the report had recommended two positions, Chairman Raggio asked for comments on why only one position was requested. 9
10 Mr. DeWeese indicated the Housing Division practiced fiscal responsibility and did not want to add positions that might not be needed in the future. Additionally, Mr. DeWeese indicated a reluctance to add a second position until it was determined whether pending legislation would affect the amount of revenue the Housing Division received in a negative or positive manner. In response to a question from Chairman Raggio, Mr. DeWeese indicated the Compliance/Audit Investigator III position would be added immediately upon approval of the position. Craig Davis, Grants and Projects Analyst Supervisor, Housing Division, Weatherization Program, advised that the individual hired to fill the position would be located in Las Vegas and would provide specialized training to the program s sub-grantees, develop training manuals, and inspect weatherized homes for compliance with program standards. Mr. Davis explained that currently the Weatherization Program did not have a staff member located in Las Vegas where approximately 70 percent of the Weatherization Program work was conducted. Mr. Davis explained that the Request for Proposal (RFP) the Division issued for a consultant to perform inspections and training resulted in only one response, and training for Nevada s sub-grantees sometimes involved a six-month wait as a result of being in competition with California s Weatherization Program. With the new position, however, Mr. Davis indicated problems in the field or training needs could be immediately addressed. In response to a question from Chairman Raggio regarding the function of a Compliance Audit Investigator, Mr. Davis explained that the individual filling the position would work with sub-grantees, service providers and their contractors, develop policy and procedure manuals, and inspect weatherized homes for compliance with program standards. In response to a question Chairman Raggio asked regarding the contract service, Mr. Davis indicated the new position would eliminate the need for the contract work. In response to questions Senator Beers asked regarding why contract services funding would not be eliminated at the time the position was filled, Mr. Davis advised that the contract services funding would be reduced. Additionally, Mr. Davis said that approximately $170,000 had been spent on contract services for the current fiscal year. In response to additional questions Senator Beers asked regarding the contract termination date, Mr. DeWeese explained that the contract would have ended on June 10, 2005, and rather than providing a 60-day notice for termination 10
11 without cause, it was suggested to continue the contract through June 10, Senator Beers asked if a flat dollar per month fee was paid to the contractor whether or not any work was performed. Mr. Davis advised that while the costs varied depending on the type of training or third-party inspections conducted, typically about $5,000 a week was paid to the contractor for services performed. In response to questions from Senator Beers regarding the high cost of the services, Mr. Davis indicated the Weatherization Program was very specialized, and there was some difficulty in finding individuals who had the knowledge, skills, and ability to perform the required services. Mr. Davis reiterated that only one response to the RFP was received from the consultant who ultimately received the contract. Assemblywoman McClain disclosed she served on the Board of Trustees for Help of Southern Nevada, one of the sub-grantees. ASSEMBLYMAN MARVEL MOVED APPROVAL OF THE REQUEST TO TRANSFER FUNDS TO THE PERSONNEL CATEGORY. ASSEMBLYMAN SEALE SECONDED THE MOTION. THE MOTION CARRIED. (Senator Cegavske and Assemblyman Arberry were not present for the vote.) 25. Department of Business and Industry Division of Mortgage Lending FY 05 Transfer of $19, from the Reserve category to the Personnel Services category to cover a projected shortfall due to accelerated steps approved by State Personnel for three existing positions that were budgeted at step one. Requires Interim Finance approval since the cumulative amount transferred to the Personnel Services category exceeds $50, Department of Business and Industry Taxicab Authority FY 05 Transfer of $29, from the Reserve category to the Operating category to fund projected expenditures for fuel and outside vehicle maintenance for the remainder of the fiscal year. Requires Interim Finance approval since the amount transferred to the Operating category exceeds 10% of the legislatively approved level for that category. 11
12 Chairman Raggio announced that Items 27, 28, and 30 would be considered concurrently. 27. Department of Human Resources Health Care Financing and Policy Administration FY 05 Addition of $19, in Ticket to Work federal grant funds and deletion of $19, in federal Title XIX grant funds to allocate estimated payroll costs for administrative, accounting and information technology services related to the Ticket to Work grant from the Medicaid account. Requires Interim Finance approval since this action involves the allocation of block grant funds and requires a public hearing. Patrick Cates, Administrative Services Officer, Department of Human Resources, Division of Health Care Financing and Policy (HCFP), appeared before the Committee and advised that work programs 27, 28, and 30 requested the transfer of authority from the Ticket to Work grant for payroll expenditures to reduce Title XIX receipts by the same amount. Mr. Cates advised that the allocated funds for administrative, accounting, and information technology services, related to the Ticket to Work grant, for staff in the Nevada Check Up and Health Care Financing and Policy administration accounts would decrease the need for State General Funds. Noting that work program Items 27, 28, and 30 required a public hearing, Chairman Raggio opened the hearing for public testimony. There was no public testimony, and the Chairman closed the hearing. ASSEMBLYWOMAN LESLIE MOVED APPROVAL OF WORK PROGRAMS 27, 28, AND 30. ASSEMBLYMAN HOGAN SECONDED THE MOTION. THE MOTION CARRIED. (Senator Cegavske and Assemblyman Arberry were not present for the vote.) 28. Department of Human Resources Health Care Financing and Policy Nevada Check Up FY 05 Addition of $21, in Ticket to Work federal grant funds and deletion of $21, in federal Title XXI grant funds to allocate estimated payroll costs for administrative, accounting and information technology services related to the Ticket to Work grant from the Medicaid account. Requires Interim Finance approval since this action involves the allocation of block grants funds and requires a public hearing. Refer to Item 27 for narrative and motion for approval. 12
13 29. Department of Human Resources Health Care Financing and Policy Medicaid FY 05 Addition of $3,006, in Federal Title XIX funds and $2,394, in Long-Term Care Provider Tax fees transferred from the Increased Quality of Nursing Care budget account to align revenue authority to fiscal year 2005 projections which will be used to increase nursing facility reimbursements and related federal funds to Medicaid providers through enhanced rates. Requires Interim Finance approval since the amount added to the Medicaid Assistance to the Aged, Blind and Disabled category exceeds $50, Department of Human Resources Health Care Financing and Policy Medicaid FY 05 Addition of $40, in federal Title XIX grant funds and deletion of $40, in Ticket to Work federal grant funds to allocate estimated payroll costs for administrative, accounting and information technology services related to the Ticket to Work grant for staff in the Nevada Check-Up and Health Care Financing and Policy administration accounts. Requires Interim Finance approval since this action involves the allocation of block grants funds and requires a public hearing. Refer to Item 27 for narrative and motion for approval. 31. Department of Human Resources Mental Health and Developmental Services Administration FY 05 Addition of $11, in Data Infrastructure grant funds transferred from the Mental Health and Developmental Services Management Information Systems budget to pay for staff overtime associated with implementation of the new AVATAR client billing system. Requires Interim Finance approval since the cumulative amount added to the Personnel Services category exceeds $50, Chairman Raggio announced Item 31 was withdrawn. 32. Department of Human Resources Mental Health and Developmental Services Rural Regional Center FY 05 Transfer of $570, from the Certified Community Training Centers Jobs and Day Training category to the Non-Certified Community Training Centers Jobs and Day Training category to continue contracts with non-certified providers of jobs and day training programs on behalf of individuals with developmental disabilities. Requires Interim Finance approval since the amount transferred to the Non-Certified Community Training Centers Jobs and Day Training category exceeds $50,
14 33. Department of Human Resources Mental Health and Developmental Services Desert Regional Center FY 05 Transfer of $1,366, from the Certified Community Training Centers Jobs and Day Training category to the Non-Certified Community Training Centers Jobs and Day Training category to continue contracts with non-certified providers of jobs and day training programs on behalf of individuals with developmental disabilities. Requires Interim Finance approval since the amount transferred to the Non-Certified Community Training Centers Jobs and Day Training category exceeds $50, Department of Human Resources Mental Health and Developmental Services Northern Nevada Adult Mental Health Services FY 05 Addition of $103, in Independent Living subgrant funds transferred from the Division of Aging Services and $31, in Medicaid funds to continue providing mental health outreach services to senior citizens residing in northern Nevada. Requires Interim Finance approval since the cumulative amount added to the Personnel Services category exceeds $50, Department of Human Resources Mental Health and Developmental Services Northern Nevada Adult Mental Health Services FY 05 Addition of $31, in Projects for Assistance in the Transition from Homelessness grant funds to continue mental health outreach services for the homeless in Washoe County. Requires Interim Finance approval since the amount added to the Homeless Assistance category exceeds 10% of the legislatively approved level for that category. 36. Department of Human Resources Mental Health and Developmental Services Northern Nevada Adult Mental Health Services FY 05 Addition of $259, in federal Department of Housing and Urban Development (HUD) Shelter Plus Care grant funds to continue providing housing assistance and residential support services to clients with mental illness so they are able to live independently. Requires Interim Finance approval since the amount added to the Transitional Living-HUD category exceeds $50, Department of Human Resources Health Division Health Facilities FY 05 Addition of $435, in Centers for Medicare and Medicaid Services Background Check Pilot Program grant funds to conduct a pilot 14
15 program to evaluate the effectiveness of background checks for prospective employees of long-term care facilities with direct access to patients. Requires Interim Finance approval since the amount of the grant exceeds $100, Amy Roukie, Administrative Services Officer, Department of Human Resources, Health Division, appeared before the Committee to request approval for the Health Division to utilize federal grant funds from the Centers for Medicaid and Medicare Services (CMS) to implement a Background Check Pilot Program. Ms. Roukie indicated the pilot program was in the early stages of development and provided the following amendments to the work program that would allow the Division to collect additional information prior to implementation of the program: Category 11 $332,640 Delete equipment costs Category 1 $63,312 Personnel costs to establish the working group Category 11 $39,966 Associated costs Total Request $103,278 Ms. Roukie also indicated that Health Division representatives were working with the Committee s staff to modify the Health Facilities budget to allow for expenditure authority in fiscal year 2006 and fiscal year Chairman Raggio requested additional information regarding the Background Check Pilot Program. Pam Graham, Chief, Bureau of Licensure and Certification, advised that federal funding was received in January 2005 from the Centers for Medicare and Medicaid Services to conduct a Background Check Pilot Program. The pilot program would develop and expand a statewide electronic fingerprint capture and transmission for prospective employees of long-term care facilities through an internal network of agencies within the Department of Human Resources. Ms. Graham advised that a statewide steering committee composed of members of the Office of Public Safety, Highway Patrol, and other law enforcement personnel was being convened to recommend the most advantageous locations in which to provide additional fingerprinting services. Ms. Graham further advised that one of the goals of the expanded system was to reduce paper and ink fingerprinting and to transmit fingerprints electronically to the Office of Public Safety. Currently, Ms. Graham said software was being developed by the Office of Public Safety, which would allow fingerprints to be electronically submitted to the Federal Bureau of Investigation (FBI) and speed up the time in which prints were transmitted. 15
16 In response to questions Chairman Raggio asked regarding when the provision of services would be available, Ms. Graham advised that additional electronic fingerprinting services were projected to be available by summer either through the purchase of equipment or through a contract with a company that would provide the service. Additionally, Ms. Graham said that by increasing the number of long-term care facilities that would be required to fingerprint their personnel and the ability to access fingerprints electronically was projected to reduce abuse and neglect in health care facilities by more timely screening of prospective employees. Chairman Raggio asked if staff was in agreement with the amendments to revise the request to $103,278. Gary Ghiggeri, Senate Fiscal Analyst, concurred with the changes suggested by the agency representatives, which he provided again for the record: o Reduce Revenue to $103,278 o Personnel Services would remain unchanged at $63,312 o Reduce Category 11 to $39,966 In response to questions Assemblywoman Giunchigliani asked regarding previous legislation approved to fingerprint employees in health care facilities, Ms. Graham advised that the Bureau of Licensure and Certification currently required fingerprinting for personnel employed in skilled nursing facilities, residential facilities for groups, home health agencies, and intermediate care facilities for the mentally retarded. Plans were underway to expand current statutory requirements to also require fingerprint checks for foster care parents, hospice caregivers, personal care attendants, adult day care workers, and for hospitals that provided skilled nursing beds. In response to questions Ms. Giunchigliani asked about the cost for the service, Ms. Graham advised that currently the cost was $45 paid by the service providers to the Office of Public Safety. When hired, the worker was required to reimburse the service provider half of the charge. MS. GIUNCHIGLIANI MOVED FOR APPROVAL OF THE REQUEST WITH THE AMENDMENTS PROVIDED BY THE AGENCY. ASSEMBLYWOMAN SMITH SECONDED THE MOTION. THE MOTION CARRIED. (Senator Cegavske and Assemblyman Arberry were not present for the vote.) 38. Department of Human Resources Health Division Women, Infants and Children (WIC) Food Supplement FY 05 Addition of $3,773, in 16
17 rebates received for infant formula and cereal to continue providing food to eligible clients. Requires Interim Finance approval since the amount added to the Aid to Indigent-Rebate category exceeds $50, Department of Human Resources Welfare Low-Income Home Energy Assistance FY 05 Addition of $1,307, in Low-Income Energy Assistance federal grant funds to balance forward unspent federal fiscal year 2004 funds for the purpose of providing assistance to more low-income households in paying their energy/utility bills. Requires Interim Finance approval since this action involves the allocation of block grant funds and requires a public hearing. Nancy Ford, Administrator, Department of Human Resources, Welfare Division, appeared before the Committee to request approval to balance forward unspent federal fiscal year 2004 grant authority to fiscal year In response to a question from Chairman Raggio, Ms. Ford indicated the Low Income Home Energy Assistance Program was projected to serve 22,000 households in the coming year. Chairman Raggio opened the hearing for public testimony. There was no public testimony, and the Chairman closed the hearing. ASSEMBLYWOMAN LESLIE MOVED APPROVAL OF THE REQUEST. ASSEMBLYMAN SEALE SECONDED THE MOTION. THE MOTION CARRIED. (Senator Cegavske and Assemblyman Arberry were not present for the vote.) 40. Department of Human Resources Aging Services Division Older Americans Act FY 05 Addition of $200, in State Health Insurance Assistance Program grant funds to augment revenue and expenditure authority for the State Health Insurance Assistance Program as a result of a Long-Term Care supplemental award for supporting volunteers, education, outreach, and long-term care planning through subgrants to providers. Requires Interim Finance approval since the amount added to the State Health Insurance Assistance Program category exceeds $50,
18 41. Department of Human Resources Aging Services Division Elder Protective Services/Homemaker Programs FY 05 Transfer of $80, from the Personnel Services category to the Purchase of Services category to cover projected expenditures for the remainder of the fiscal year. Requires Interim finance approval since the amount transferred to the Purchase of Services category exceeds 10% of the legislatively approved level for that category. Chairman Raggio announced that work program Items 42 and 87 would be considered concurrently. 42. Department of Human Resources Child and Family Services Transition from Foster Care FY 05 Transfer of $1,241, from the Reserve category to the Transitional Assistance category to continue providing goods and services to persons who attained the age of 18 while in foster care in Nevada to make the transition from foster care to economic self-sufficiency. Requires Interim Finance approval since the amount transferred to the Transitional Assistance category exceeds $50, Diane Comeaux, Deputy Administrator, Department of Human Resources, Division of Child and Family Services, identified herself for the record and introduced Theresa Anderson, Deputy Administrator, Division of Child and Family Services. Ms. Comeaux appeared before the Committee to request approval to transfer $1,241,391 from the Transition from Foster Care Budget Reserve Category to the Transitional Assistance Category. Approval of the transfer would provide the ability to continue payments for goods and services to assist youth in transition from Foster Care to economic self-sufficiency and to align the budget with the current sub-grant awards. Ms. Comeaux advised that the chart titled BA 3250 Transition from Foster Care (Exhibit D) provided information that supported the request. Chairman Raggio asked Division representatives to comment on the purpose of granting the funds in the remaining three and one-half months of fiscal year Ms. Comeaux advised that the budget was being aligned with current sub-grants and remaining unspent funds would be balanced forward at the close of the fiscal year. Chairman Raggio asked if specific needs or spending proposals for the funding had been identified. 18
19 Ms. Comeaux reiterated that the work program simply balanced the authority to the sub-grant awards issued by the Division to Washoe County, Clark County, Job Opportunities in Nevada (JOIN), and Stepping Stones. Assemblywoman Leslie requested specific information on how the funding would be used in the last three and one-half months of fiscal year Ms. Comeaux advised that to date $830,000 had been expended from a total of $1 million, and the work program, if approved, would transfer the funding from the Reserve Category to the Transitional Assistance Category to align the category to the grants. At the end of the fiscal year, the remaining authority would be balanced forward to begin fiscal year In response to a question from Ms. Leslie, Ms. Comeaux indicated she did not believe the $1.2 million would be expended in the last three months of fiscal year Chairman Raggio provided the following information reflected on the Transition from Foster Care chart (Exhibit D): Total authority needed in fiscal year $2,738,002 Total authority needed for Clark County - $1,699,101 Total authority needed for Washoe County - $256,402 Total authority needed for Job Opportunities in Nevada $396,677 Total authority needed for Stepping Stones $385,821 Current authority in Category 11 $1,496,072 Total authority needed in fiscal year 2005 $2,738,002 Additional authority needed from Reserve in fiscal year 2005 $1,241,930 Since it appeared there was no specific plan to expend the funds in the next three months, Ms. Giunchigliani indicated that a projected spending plan should be submitted to the Committee. Reiterating that the purpose of the work program was to simply align the budget, Ms. Comeaux provided the following accounting of the $830,000 in expenditures: Washoe County expenditures to date $200,000 Clark County expenditures to date $400,000 JOIN expenditures to date $230,000 In response to a question from Ms. Giunchigliani regarding the expenditures, Ms. Comeaux indicated the year-to-date expenditures were not reflected on the chart (Exhibit D). Ms. Comeaux advised that the chart reflected the amount that was sub-granted in fiscal year 2005, the unspent balance from fiscal year 2004, and the total authority needed in fiscal year
20 In response to a question from Ms. Giunchigliani regarding the total authority needed in fiscal year 2005, Ms. Comeaux advised that the sub-grant awards were issued, and the sub-grantees had the ability to draw up to that amount before the end of the fiscal year. Providing additional information requested by Ms. Giunchigliani, Ms. Comeaux explained that the Transition from Foster Care budget had a slow start, and the first sub-grant awards were issued for approximately $1 million. With $3 million in Reserve, Ms. Comeaux indicated the sub-grants were awarded for more than the available authority in order to provide the grantees the ability to plan and develop their programs. Since the funds would not be expended in the next three months, Ms. Giunchigliani asked that the request be deferred until the next Interim Finance Committee meeting. Chairman Raggio indicated the Committee s concern was in regard to the lack of a projected spending plan and asked if the program was having a problem gearing up. Ms. Comeaux advised that the grantees had been gearing up over the last several months, and the Division wanted to ensure the availability of funding for them. Chairman Raggio announced that the request would be deferred to an Interim Finance Committee hearing that would be scheduled for March 31, 2005, at 7:30 a.m. Ms. Leslie requested an accounting of what the sub-grantees had spent in the last several months and what they projected to spend through June 30, 2005, which she indicated needed to match the amount the Division requested to transfer from the Reserve. Assemblywoman McClain asked that additional information be provided to include the number of foster children served thus far, the number that would become eligible to receive services in the next few months, the cost for goods and services per person, and what was provided in terms of goods and services to gain self-sufficiency. Ms. Comeaux agreed to provide the requested information but advised that since services were provided based on each individual child, only an estimate of the cost per child could be provided. 43. Department of Human Resources Child and Family Services Youth Corrections Services FY 05 Addition of $188, in Serious and 20
21 Violent Offender Reentry grant funds to continue programs designed to reduce recidivism, increase public safety, and reintegrate serious and violent juvenile offenders back into their communities. Requires Interim Finance approval since the amount added to the Personnel Services category exceeds $50, Department of Employment, Training and Rehabilitation Career Enhancement Program FY 05 Transfer of $5, from the Reserve category to the In-State Travel category and $19, from the Reserve category to the Operating category to provide funding for travel to the Winnemucca Job Connect Office and funding for the costs of operating jobconnect offices. Requires Interim Finance approval since the cumulative amount transferred from the Reserve category exceeds $50, Department of Corrections Director s Office FY 05 Deletion of $11, in Budgetary Transfer to fund projected operating expenditures at the Wells Conservation Camp, Ely Conservation Camp and Ely State Prison for the remainder of the fiscal year. Requires Interim Finance approval since the amount deducted from the Utilities category exceeds 10% of the legislatively approved level for that category. 46. Department of Corrections Prison Medical Care FY 05 Transfer of $7, from the Operating category to the Utilities category and $4, from the Operating category to the Equipment category to fund projected utility expenditures for the remainder of the fiscal year and to replace a defibrillator at the Southern Nevada Women s Correctional Center which is inoperable. Requires Interim Finance approval since the amount transferred from the Operating category exceeds 10% of the legislatively approved level for that category. 47. Department of Corrections Correctional Programs FY 05 Addition of $33, in funds transferred from the Inmate Welfare budget and $99, in Residential Substance Abuse Treatment (RSAT) funds transferred from the Department of Public Safety to fund the Willing Inmates in Nevada Gaining Sobriety (WINGS) program located at the Northern Nevada Correctional Center. Requires Interim Finance approval since the amount added to the RSAT (WINGS) category exceeds $50,
22 Darrel J. Rexwinkel, Assistant Director, Support Services, Department of Corrections, appeared before the Committee to request approval to augment the Residential Substance Abuse Treatment Grant (RSAT) for the Willing Inmates in Nevada Gaining Sobriety (WINGS) program at the Northern Nevada Correctional Center for fiscal year Mr. Rexwinkel explained that Vitality Center, a private contractor, provided substance treatment to incarcerated inmates under the WINGS program, which was funded 75 percent ($132,232) with RSAT funds transferred from the Department of Public Safety, Office of Criminal Justice, and 25 percent ($33,058) from Inmate Welfare funds. Mr. Rexwinkel explained that enough funding existed for the fiscal year 2006 WINGS program, but a shortfall was projected for fiscal year 2007 depending on Congressional action. Mr. Rexwinkel advised that the previous RSAT grant totaled $25 million from which Nevada received a proportionate share. Although difficult to predict Congressional action, Mr. Rexwinkel said that if the new $44 million grant was approved and Nevada received its proportionate share, funding for fiscal year 2007 would not be an issue. In response to questions Chairman Raggio asked regarding the OASIS (Offenders Acting in Solidarity to Insure Sobriety) program at Southern Desert Correctional Center, Mr. Rexwinkel advised that with the reduction in RSAT grant funding over the last few years, the OASIS program at Southern Desert Correctional Center, in order to continue, required a General Fund appropriation. Mr. Rexwinkel recalled that during the 2001 Legislative Session, staff at the Southern Desert Correctional Center was reduced by 13 Correctional Officers. If the request for funding to continue the OASIS program was not approved, Mr. Rexwinkel indicated it would perhaps be necessary to re-employ the Correctional Officer staff, which would be more expensive at approximately $920,000 a year. In response to questions Chairman Raggio asked regarding the effectiveness of the WINGS and OASIS programs, Jay Terrell, Nevada Department of Corrections, Correctional Substance Abuse Program Director, indicated a 96 percent success rate over the time of operation. The statistics were based on inmates who had completed the program and were released as well as those who had not yet been released. Ms. Terrell advised that with 70 percent of inmates incarcerated for substance abuse problems or related crimes, inmates who had been released and did not continue treatment were returned to prison within a three-year period. Additionally, Ms. Terrell indicated the RSAT Grant was funded by the federal government since it was determined the programs funded by the grant provided an effective approach to reducing recidivism. 22
23 In response to additional questions from Chairman Raggio regarding substance abuse programs, Ms. Terrell advised that the Department of Corrections institutions had established several DUI (Driving Under the Influence) programs, while some programs that addressed addiction had been established by Department of Corrections psychologists. Additionally, Ms. Terrell advised that volunteer self-help groups, such as Alcoholics Anonymous and Narcotics Anonymous, had been established in Department of Corrections institutions but were not considered treatment programs, were not regulated, and did not fall under the Department s control. After visiting the various Department of Corrections institutions, Assemblywoman Leslie attested to the effectiveness of the programs and indicated she believed the intensity offered through the OASIS and the WINGS programs was needed. However, Ms. Leslie took issue with the statement regarding a 96 percent success rate indicating an 80 percent success rate would be considered an excellent rate. Ms. Terrell agreed but explained the statistics were based on being in operation for only a short time period. A similar program Ms. Terrell coordinated in Florida for ten years averaged a 65 percent success rate with 35 percent recidivism. Assemblywoman Giunchigliani asked whether OASIS and WINGS programs would be continued in the Department s transitional housing programs, such as Casa Grande. Ms. Terrell advised that continuing the OASIS and WINGS programs for inmates transitioning to housing programs, such as Casa Grande and Going Home Prepared, was considered a key factor in maintaining inmates sobriety and socialization. Ms. Giunchigliani expressed concern that effective programs, such as OASIS and WINGS might be lost while inmates were transitioning; however, she indicated the subject could be discussed during legislative committee hearings. Chairman Raggio noted that if the Committee members approved Item 47 for fiscal year 2005, funding to continue the program during the biennium would require additional discussion. ASSEMBLYWOMAN LESLIE MOVED APPROVAL OF ITEM 47 FOR THE TRANSFER OF FUNDS FROM THE INMATE WELFARE BUDGET AND DEPARTMENT OF PUBLIC SAFETY TO FUND THE WINGS PROGRAM FOR FISCAL YEAR
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