>> I think what we will do is we will
go ahead and call this meeting to order.
If Mr. clerk, if you could take
rollcall, please?
>> Roll Call: Brooks, here. Cancela,
here. Denis, here. Goicoechea, here.
Kieckhefer, here. Parks, here.
Settelmeyer, Settelmeyer, here.
Woodhouse, here. Benitez-Thompson,
here. Frierson, here. Leavitt, here.
Jauregui, here. Kremer, here.
Monroe-Moreno, here. Neal, here.
Spiegel, here. Munk, here. Swank,
here. Backus, present. Titus, here.
Wheeler, here. Carlton, here.
>> Thank you, all very much. I
believe we have everyone present.. So
with that I will go ahead and began. The
first item B will be public comment.
As publish on the agenda public
comment may be made by mail, fax or
calling into the number designated and
following the sign interactions on the
agenda. Due to time constraints public
him and will be limited to two minutes
per speaker and I will take up to a
proximally 45 minutes of public comment
at the beginning of the meetings. And
an additional opportunity to make
public comment will be available at the
end of the meeting. For all those
making public comment or testifying
before the committee today please state
your name and organization you are at
the beginning of your testimony. Please
come also restate your name in response
to any questions that may be asked of
your providing testimony to the
committee. For all participating in for
today's virtual ISE meeting please
remember to mute your microphone when
you are not speaking. LNV's broadcast
production services staff who has been
fantastic through this whole thing will
be interacting with those making public
comment and providing testimony to
facilitate, participation in the
meeting. Staff and our broadcasting
production services will add the callers
and the testifier as we move
through the meeting. So with that if I
could be had and ask our broadcast and
production staff to please add the
first color under public comment.
>> Color with the last three, 525.
Please, state and spell your name for
the record. You are ready. Hello,
caller with a last three of 525, you
are ready. I apologize Mme. Chair.That
was the only color on the line for
public comment and I'm not hearing
anything from the line.
>> Okay. All right. Then I think we
will go ahead and move forward,
committee. So, as we move forward,
since this meeting is being conducted
virtually our Senate fiscal analyst Mr.
- - will assist us in conducting
rollcall votes for each item requiring
action to make sure the vote is
recorded correctly. Given the virtual
environment is difficult to tell who is
present at the time of the vote.
Please respond yes or no and when your
name is called on a vote as it can be
difficult to distinguish between the
yeas and nays. So that members I
believe we can move on to item C on our
agenda. Did I hear someone join? Okay,
moving forward. We will go ahead and
start with item C-one. So I am C-one
office of the Gov. work program. If we
would go ahead and bring up the person
testifying on this item, please?
>> Can you hear us?
>> Ms. Brown?
>> Yes. Good morning.
>> Good morning.
>> This is Susan Brown and with me
today of Michelle White governors staff
>> Good morning
>> Good morning.
>> Thank you Mme. Chair and
councilmembers for the record this is
Michelle White governors staff. The
request before you today transfers
51,004 and $42 in CARES Actt funds to
the governor's office to fund to
positions to provide statewide
coordination supportive of the states
effort in preparing sustaining and
expanding the response to the COVID 19
pandemic. This is a federally supported
state managed and locally executed
effort and outlined in the governor's
plan. In addition, it will work with
federal state and local partners to
identify and coordinate funds that the
state - - that the benefits the state
by Nina be placed in the state account.
>> Okay. Thank you very much Ms.
White. If you could elaborate on the
intended responsibilities of these
positions? And the level of pay? We
realize the governor's office does get
their own amount and then they decide
how they will pay people. We understand
the process, but we would still like to
know exactly with the responsibilities
and pay levels will be as we move
forward with this?
>> Sure. All go through the response
was then kick it over to director Brown
to talk about the pay. So again there's
two positions to CARES Act funding,
temper a positions. And the associated
operating costs and coordinating the
state's response to COVID 19 pandemic.
The first position is for a COVID 19
statewide response director. This
person we tasked with work with federal
state and local partners in coordinated
COVID 19 contact tracing, testing,
coordination of resources part about
rebut robust and ongoing effort and
expansion of work across the state to
address the public health crisis. In
addition to other response efforts they
will work with all agencies and daily
communication with specifically with
the agencies like state HHS, divert
division of emergency management and
Nevada national government within the
agencies at the forefront of leading
this effort. The second position is the
COVID 19 administrator. This person
will be tasked with identifying all
federal funding related to the pandemic
and being the liaison from the
governor's office. Again work with the
governor's finance office, with
legislative leadership, and
legislature, with our agencies and
federal and local partners to make sure
that we are utilizing those funds to
the best ways possible to address the
crisis both in the immediate and
long-term.
>> Okay. And these two positions, Ms.
White, you have confirmed the cost of
these will be supported through the
coronavirus act, correct? I never know
what acronym to use with this one.
>> A lot of acronyms. Correct,
Susan if you want to go into the
funding?
>> Thank you. He was Susan Brown for
the record. Where using the coronavirus
funds at directly later in these
possessions will be directly related
to working to COVID 19 issues will make
him eligible for payment from this
account.
>> All right. Thank you. So committee
members, any questions from any of the
committee members at this point on this
item? Mr. Wheeler.
>> Thank you Mme. Chair I appreciate
it. I'm just wondering, realize these
are COVID 19 funds coming from the
federal government not going to affect
our budget so much but no matter where
the funds come from, they still are tax
money. Is there anyone who is
basically, furloughed right now within
our government we can take and move
over there and maybe remove some of
those funds? Obviously, were looking
from funds anywhere we can get them
from now. I'm just wondering if we can
take someone from a different
department that's currently not
working, for instance and move them
into these positions and reduce that
other position? Thank you for your
time.
>> Thank you. Michelle White for the
record. We have identified someone for
the position the statewide response
director who was on loan at the
beginning of this crisis and has been
helping to manage the overall effort
and wanted to assistedto formalize
Errol and expand that role due to the
urgent need. But we will certainly
continue looking for positions that
are available throughout the state
government as we explore filling the
position.
>> Other questions? Sen. Goicoechea
>> Thank you Mme. Chair. I'm look at
these numbers and 51,000 this is just
going to carry us until June 30 Isom
and then we looking for another
appropriation? 51,000 is not a lot of
money given a new position so, what is
the timeframe? I'm just assuming we
are going until June 30.
>> That is correct. The funds you
are[inaudible] for the rest of the
fiscal year annual scene another work
for him coming forward probably
[inaudible] positions. For another six
months.
>> Thank you for the clarification.
>> Are there any other questions from
any other members at the moment?
>> Mme. Chair this is Sen. Brooks
>> Yes. Sen.
>> I will be abstaining from this vote
because it creates a positions in the
assembly member's office
>> Okay. Thank you, Sen. Thank you,
Sen. Appreciate that. So if there's no
other questions from any committee
members come I believe we can go ahead
and process at this time with this item.
Hearing or seeing no objections I will
take a motion to approve this item from
Sen. Woodhouse and second from Ms.
Benitez-Thompson. Any questions or
comments on the motion? Hearing none,
please call the role. Remember,
committee members just say yes or no.
Thank you.
>> Roll Call Vote: Benitez-Thompson,
aye. Frierson, aye. Leavitt,, aye.
Jauregui, aye. Kremer, aye.
Monroe-Moreno, aye. Neal, aye. Spiegel
, aye. Munk, aye. Swank, aye.
Backus, aye. Titus, aye. Wheeler,
aye. Carlton, aye.
>> Earlier wei Sen. Brooks who is
abstaining from the vvote. All indicate
him as an abstention
>> Roll Call Vote: Cancela, aye.
Denis, aye. Goicoechea, aye.
Kieckhefer, aye. Parks, aye.
Settelmeyer,, aye. Woodhouse, aye.
>> The motion passes.
>> Be much. We will go ahead and moved
to item, number two, Department of
Health and Human Services public
behavioral health communicable diseases
. I believe this has to do with the
Ryan White HIV AIDS program that I
don't believe staff had any questions
or concerns about this. Did we have
someone here to testify on this item?
>> Mme. Chair this is Jeff from
broadcast productions. I see Julia --
Please, unmute your microphone.
>> This is Julia - - can you hear me
okay?
>> Yes. We have you now, thanks.
>> Good morning everybody. For the
record me my name is Julie p deputy
ministers for the behavioral health.
I'm joined remotely by our service
program manager for HIV program and
Christina Hardwick who serves as our
chief financial officer for the
division. To date we are requesting
authority for the Ryan White part B
COVID 19 response grant. It's received
from the Department of health and human
services health resources and services
administration. This noticeable what
provides one time funding to support
preventing caring for and responding to
COVID 19 as outlined in the coronavirus
eight release and economic security
act or CARES Act. First it authorize
the recipient to incur pre-award costs
to be effective date at the federal
award dating back January 20, 2020.
This grant does not cover match or
maintenance of effort required. The
Ryan White CARES Act is broken up into
five different programs or parts. Today
we are looking at part B. Part B rental
provides two territories to improve
health equity for those living with
HIV on AIDS. Sprint provides medication
and services to eligible Nevada's
living with HIV and AIDS. The assistant
program also known as [inaudible] is
another program under part B the
provides approved medication to people
living with HIV who are either uninsured
or underinsured. Nevada's formulary is
geared towards optimum patient care
medications maintained in a
coordination with and by the
recommendation of our medical advisory
committee. This award will give Ryan
White HIV AIDS recipients the
flexibility to meet the evolving needs
in their respective communities
including expanding operational hours,
increase in staffing hours, purchasing
additional equipment, enhancing
workforce training and capacity
development, and providing critical
services to people with HIV during the
coronavirus pandemic. Funds will be
subject to northern Nevada host and
accessed for community and cultural
education programs and training.
[inaudible] because they are est. under
the Ryan White part B recipient
who currently provide supportive
services and have a proven track record
to provide these services to our HIV
positive clients. The sub grantees will
provide direct services such as home
delivered meals, emergency housing,
housing assistance and medical
transportation to HIV positive clients
and their families. The number of
clients served are unknown at this time
due to the evolving nature of COVID 19
pandemic. As noted, the Ryan White part
B is looking to utilize Nevadans home
delivered meals which also allows for
the purchase and distribution of PPE
for clients and personnel, housing,
which allows for the payment of
claimant's rent, and medical
transportation for medical and
supportive services. This funding is
delivered in watershed County but could
change as client needs a merge. There's
no real providers at this time in Ryan
White part B clients are
provided washing and often seek care at
[inaudible]. Park County receives the
Ryan White part [inaudible] a grant
serves the entire state including Park
County. However as much before the
CARES Act funding for this work program
will primarily serve Washoe County and
Clark County will use Ryan White part B.
We are happy to take any questions
you may have regarding these funds.
Thank you.
>> Thank you very much. I think the
only question or comment I would have
is we would look forward to a report
back in the data you accumulate on how
these dollars are being spent and the
folks that are actual being served so
we can use that in the future. That
would be the only comment I would have.
Are there any other comments or
questions from any committee members at
this time? Seeing none, don't speak
up - - with that, - - guess? Sen.
Denis, I'm sorry.
>> Just a quick question. She mentioned Clark
part B but I thought it talked
about in materials part B being used in
Washington the roles. Is that correct?
>> Julie -- for the record. That is
correct.
>> Okay. Just want to make sure the
record was correct for
>> Thank you, Sen. Any other questions
or comments from committee members on
item number two? Seeing or hearing
none, I would go ahead and accept a
motion to processitem number two from
Sen. Woodhouse and a second from Ms.
Benitez-Thompson. Any discussion on the
motion?
>> Mme. Chair, did you want to add
reporting to that motion as you
indicated in your comments?
>> Yes. Please. If everyone is good
with that, sorry about that. Any
discussion? If not, we will go ahead
and ask to call the role, please.
>> Roll Call Vote: Benitez-Thompson,
aye. Frierson, aye. Leavitt, aye.
How to get the, aye. Kremer, aye.
Monroe-Moreno, aye. Neal, aye.
Spiegel aye. Munk, aye. Swank, aye.
Backus,, aye. Titus, aye. Wheeler,
aye. Carlton, aye. Brooks, aye.
Cancela aye. Denis, aye. Goicoechea,
aye. Kieckhefer,, aye. Parks, aye.
Settelmeyer, aye. Woodhouse, aye.
>> The motion passes.
>> Thank you. With that we will go to
item number three, Department of
employment training and rehabilitation.
If we could go ahead and queue up the
person who will be presenting, please.
>> Mme. Chair, this is Jeff from
broadcast productions. I'm not seen
anyone unmute their microphone or way
that me.
>> I'm seen a wave on my top left
corner of the box. I believe it is - -
and their staff in their room. There
we go. Have they been unmuted on muted?
>> Yes. They have. Please unmute the
phone at your desk or whatever device
you are using, please.
>> Good morning. Proceed.
>> Okay. Good morning. For the record
Christopher Sewall Department of
employment training and rehabilitation.
Director's office. This morning we have
on the agenda work program C 75206.
This work program is to establish
revenue and expenditure authority for
federal pandemic unemployment
compensation, also known as FUC
in the amount of $5,073,075 and
pandemic unemployment assistance also
known as - - in the amount of
$5,073,075. And pandemic emergency
unemployment compensation also known as
EUC in amount of 190,000. These
funds are for one-time implementation
costs for federal pandemic
unemployment compensation unemployment
systems and pandemic unemployment,
division grant programs. The total for
the implementation grant is $5,418,000.
At our conference room we have our
director, our administrator and deputy
administrator for the employment
security division and our CFO ready to
answer any questions.
>> Okay. Thank you very much Mr.
Sewall and I think as we go forward you
may need to get a little closer to the
microphone. It was a little low in
volume. So with that, I think I
will go ahead and open up to Ms.
Benitez-Thompson for the first round of
questions and we will proceed from
there. Ms. Benitez-Thompson
>> Thank you very much Mme. Chair I
appreciate that. So I was wondering if
you could - I'm sorry - I'm asking if
you could spell out for us a little bit
more about the role that the staff is
going to have in this process? For
example, taking claims, adjudicating
claims, handling appeals. Could you
talk about a little different specific
task they are going to be doing?
>> Thank you. For the record this is
Kimberly Goddard. administrator for the
employment security division. We have
been hired to provide complement for
pandemic unemployment assistance,
specifically, to December of this year. For
all lifecycle cases of both types of
claims. So that will include, claim
filing which started this week,
payments and weekly filing. Assistance
on the phone. And adjudication of those
claims. That is their current role.
>> Thank you very much. We note that
you have some existing staff who are
trained and have these jobs. So do you
have an idea, for example when we talk
about adjudication,, are they expected
to handle five percent of that with
traditional staff doing 95 percent of
it? Is it looking to be 50-50? I just
did not know if there was a kind of a
take away we could walk away with, with
an uncertain of how much of the work
they will be doing?
>> This is Kimberly Goddard for the
record again. All the [inaudible] we
have oversight with management from B
for that function.
>> So, I imagine then we can - - we
will know in a couple weeks as we take
a look back we will be able to ask
about the percentage of workload being
done by staff vs. contract staff and we
will know that in coming weeks then, is
that right?
>> Yes. We will.
>> Okay. Great. Then the last question
here, is just, regarding the contractor
,, the call center, can you share with
us documentation, or assurances, that
we received that your department has
received from the federal government
that this - - that everything, this
contract and this manner of using
contract employees at the call center
is allowable?
>> Mme. Chair this is director of
Department of public training and
revalidation. Thank you for the
question assemblywoman. We have worked
in coordination [inaudible]..
>> I'm sorry?
>> You are breaking up. Were only
getting a couple of words I believe.
>> Okay. I try to speak slow again. So
I was thanking the assemblywoman for
her question. And wanted to let the
committee know that we worked closely
with the Atty. Gen.'s office along with
the governor's legal team to work on a
directive to the governor's office to
allow for the waiver of nonmerit staff.
This waiver allows us to use the team
to help assist with adjudication of
claims. We worked with the state of
Indiana, who has an approved waiver,,
or proclamation, from there governor to
allow, and we worked in lockstep with
their legal and our legal to put our
proclamation together. If you have any
further questions about the directive,
we can incorporate conversation with
the Atty. Gen.'s office. He was Ms.
Benitez-Thompson, any follow-up?
>> Yes. I guess, I just the waiver is
ushering you have done that with our
AG's office, and I think that really
answers the state law piece, and I
think the federal government is going
to probably have to look back about how
quick the states went to pivot in
different manners in which we have
pivoted to try to get staff in a place
where we could meet people's needs. I
think the ball is probably more in
they are core to make sure that that
federal piece gets sorted out.
>> Okay. Thank you. Ms. - - just on
and note for myself, we are always very
wary when we subcontract out state
functions to other folks because it is
our job to do what we understand
there's extenuating circumstances here,
but we just want to make sure that this
doesn't open up the door or try to set
a precedent of subcontracting out
these types of jobs. Because we need to
be able to control the folks were
making these decisions over these
people's lives because we've seen in
the last two months how important this
function is to folks survival. So I
just want to make sure I put that on
the record.
>> Mme. Chair, I was just going to say
that the federal government allows for
the continuation of the claims only
through the month of December. So I can
assure you that work will come back in
house after that is - - this money
has run out or authority runs out.
>> Okay. Thank you. We are going to be
very interested to see how the data on
this one also, later on when it is
done. I believe Sen. Brooks had a
question?
>> Yes. Thank you Mme. Chair. I just
want to knowyou said programs the 5.5
$5.4 million on the CARES Act money,
has the agency received approval from
the feds to use this money to grant
funds that way? And if not, do you
anticipate when you will?
>> This is David Schmidt, acting
deputy administrator for the security
division for the record. The
supplemental budget request submitted
to the Department of labor does
identify the contract for the portion
of the application. The piece that will
pay for the call center, there is only
a small piece of that within the
contents of this work program.. The
implementation cost, there some money
set aside in here for training for the
call center. But the other expenses of
the call center will be paid for to the
ongoing reimbursement for the PUA
program. However, because this is the
training component of the call-center
time is included within this grant, we
have not got any questions or pushback
from the Department of labor on using
that call-center for this purpose.
Further, the CARES Act does have a
section that explicitly allows for
relaxation of the use of merit staff
through the end of 2020. So it is,, has
been especially federally authorized.
>> Thank you.
I think that answers it. I'm asking if
you got explicit approval from the
federal government to do the 5.4
million in the way you are proposing to
use it and it sounds like you are
saying, you don't necessarily need that
because it's already stated in the rules
. Is that correct? did I hear you
correctly?
>> David Schmidt again director. That
is our understanding, yes.
>> Okay. Thank you.
>> Mme. Chair I have another question
if possible?
>> Please go ahead senator, follow-up.
>> Can you please discuss the agencies
plan for the personal services category
including overtime? Existing staff,
the numbers and types of additional
positions that you plan to hire and the
timing of that higher?
>> Thank you for the question. This is
good but we got her for the record. We
do have a staffing plan related to
that which is HR-62 which is explicitly
designed to address our own staffing
for the pandemic specifically. We have
submitted position requests to the
governor's finance office to do
additional staffing augmentation, and
that is currently in the process right
now. But as far as for the care sacked
specifically I think we have only asked
for them I want to say, 12 positions
related to this that would ultimately
be absorbed back into UI operations at
the end of December this year. In order
to continue that expected workload that
will go past that date just because of
appeals and overpayments and related
type of workload. Based on her
experience from the great recession.
>> Thank you.
>> Okay. Ms. Neal did you have a
question?
>> Yes. Mme. Chair. So, thank you Mme.
Chair. I just have a quick question.
For deductible income how are you guys
handling that? You guys - - there
was a press release that can out and
said it would take four weeks to get
that all rolled in. How does that fit
into this overall system change with a
deductible income folks who are seeking
unemployment assistance?
>> Thank you for the question.
Kimberly Goddard for the record. The
deductible income component is a piece
regarding program integrity on the
standard unemployment system. We have
been running automated jobs to address
those claims that have a deductible
income component to it. We have held
the first four weeks of the filers
benefits so we can get through that
adjudication process in compliance with
law and regulation. And released
payments post that fourth week. We
realize there may be potentials for
overpayments but that was the decision
made in order to get benefits out to
the constituency as quickly as
possible. And we were weighing the
information of potential severance pay,
or, other pay that was ongoing during
furloughedperiods in order to make that
determination. And that started now two
weeks ago and so we have been releasing
payments for those people with
deductible income issues on their
claims but that issue must be
adjudicated per regulation and we will
continue to adjudicate that while they
are receiving pay.
>> Thanks Mme. Chair.
>> If I may assemblywoman Neal, jumping
or just for a moment. So I heard you
say on this particular case with these
claims you are going to err on the side
of paying people and then after it's
adjudicated deal with it that way. That
is not how you dealt with the original
filers under the current system. Those
people are still waiting and have to go
through the process. Is that correct?
>> Thank you for the question. Kimberly
Goddard. No. I was referring to the
deductible income issue for standard
unemployment. That is what I believe
the assemblywoman was asking about. As
far as current claims the payment
component will be deployed we hope by
this weekend. And the intent is to, as
soon as presumptive eligibility is
determined, we would move to minimum
weekly benefit amounts under the act,
in order to start payment immediately.
As long as we can verify that baseline
eligibility. Then, we would adjudicate
on the back and if there's additional
eligibility to increase the benefit up
to the maximum allowed per state law.
>> Thank you for clarifying that. I
just want to make sure he was clear. Is
my understanding, though there is
approximately 50,000 out there
that have not been dealt with but yet
we're taking on another set of claims.
So can you tell me where those 50,000
are? If you are moving forward and
erring on the side of getting the money
to the families, and truing it up later
how is it we still have 50,000 claims
still out there. I just have to tell
you I people on the phone every day in
tears because they cannot get their
benefits and they don't know what they
are going to do next. So I just want to
understand, about those other 50,000
claims that are out there.
>> Thank you for the question.
Kimberly Goddard for the record. The
reference of 50,000 claims are a group
of claims we continue to work on groups
of claim type issues to see what other
additional automation jobs we can start
building out and running. But the
number of claims left tend to have
multiple issues and become more
complicated as we have going on. And
require full adjudication. So I don't
know that I can specifically say in two
weeks all 50,000 will have an answer
and have a payment. It just has to do
with the nature of the claim types and
the specifics related to the claims.
And we have been instructed on multiple
times by the department of labor that
OIG is looking at our efforts in order
to [inaudible] for integrity. So we're
doing everything we can to keep that in
balance but we continue to address the
buckets of the claims as we are
calling it internally, to try to get
those moved as quickly as possible.
>> Did I hear laughing? So, let's -
- here's the thing. If were going to
err on the side of make it your people
get money so they can survive, I would
hope we would figure out how to err on
the side of those 50,000 folks even
know they are complicated claims. So
that they can get where they do be also.
So we would just go from there. I
believe the speaker had a question?
>> Thank you Mme. Chair. I think I want
to to the concern but I want to first
say, we are asking the question and I
the chair mention this earlier, we are
asking questions not out of undo
aggression but for clarity sake. I note
your folks are working and taking these
calls. We are delivering food and take
these calls and emails as well. We are
just trying to make sure we get all the
information. I appreciate, though, that
you are trying to do the claims in an
expedited way it's not going to be
pretty necessarily because you are
trying to get caught up and help these
folks. To the chairs point, is there
any - - I don't know if this is an
opportunity in the right context - -
but is there an effort or structure in
place to make sure as were working
through the claims and in particular
more difficult claims, is there a
structure in place to do it in order so
we are doing the oldest cases first?
And work - - is that something in
place?
>> Thank you, this is Heather - -
for the record.I want to just outline
a couple of different priorities that
the department is working on at the
same time so that everyone has some
context on - - the work we are doing
on and unemployment. So as you are
probably aware, this weekend we went
out what I would call a significant
technological system that has offered
up the ability for 38,000 out of 8:30
AM Nevadans to file claims for the
pandemic unemployment assistance. That
was and continues to be an enormous
technological lift that is one of the
things we're working on. Second to that
is working closely with our call-center
vendors and trying to stand up some
cloud-based call-center and implement
in that. The third technological lift
that we are working on, and is constant
and frequent that is addressing the
backlog of c claims and working on
resolutions. So we had the ability and
continue to run data fixes on a weekly
basis to address all of the income
deductible issues. We are looking at
and working towards resolution for
several other buckets that are within
that 51--70,000 as of last week's
number. We do address each of these
claims in order of their coming winter
came in fi step we are worki looking at
those claims in order of priority that
way.
>> Thank you very much.
>> I believe Sen. Brooks had another
question?
>> Thank you Mme. Chair. I just want to
follow-up on my previous question about
the federal approval of the funding for
the implementation and operation of the
three programs that we are discussing.
So lacking explicit approval, how is it
the agency currently funding the
operational cost of those three
programs? Is it through the federal
funding? Because they don't feel the
need the approval, or, is using some
other monies?
>> This is David Schmidt. Currently,
we are awaiting the approval of the
grants that have been submitted. The
Department of Labor, the delay is not a
awaiting for authorization or approval.
It is just that they have a couple of
hundred applications across all these
programs, total across all the states
they're looking through their own
backlog to try to address. As far as
where the funding is coming from in the
meantime, we do still have our
unemployment administration grant. We
do have unemployment administration
grant. We do have the 5.3 million in
CARES Act funny we received so far. We
also haveabove base funding of
approximately $8.3 million for the UI
administration grant as well. So
there's a number of sources of funding
that can be used in the meantime, and
then adjusted as necessary once the
federal revenue for these specific
implementation programs is made
available to Nevada.
>> Thank you.
>> Other questions from other
committee members at this time? I am
pretty sure you discuss this earlier.
I'm not sure if it was really clear as
far as the authority that you have as
far as adjudicating claims. I know
there was guidance earlier this year
that allows the subcontracted entity to
perform different functions, but I am
not sure if they are actually allowed
to do the adjudication under that
guidance. So you had spoke aboutcase
out of Indiana. You talk about our
Atty. Gen. Does the information that
you have substantiate the fact that the
subcontracted entity can actually do
adjudication because it appears that
under the CARES Act they can't actually
adjudicate. So I just want to make sure
we have a very clear and on the record.
>> Mme. Chair Heather - - for the
record. Thank you. Yes, so the team has
worked closely with the state of
Indiana who has a DOL approved waiver
that is exactly the same. As ours. DOL
is aware that we have made this
decision and any other questions about
our directive explicitly we can talk
with the Atty. Gen.'s office about if
you have questions. I am happy to share.
>> I guess to
>> [Multiple speakers]
>> I guess my last question would be
is if one of our constituents went
through this subcontracted entity and
was denied benefits and later found out
that they were wrongfully denied, who
is going to be responsible for that?
The subcontractor or the state?
>> The denial, denied applicant has
the appeal rights, and that will be
worked through the department, and the
department is fully responsible for the
work that's being done under our
contractor.
>> Okay. Good. We just need to make
sure we get this on the record because
you know something is going to happen
later onand we will be able to come
back and say, this was the discussion,
these were the answers and this is how
the process was supposed to be. So
thank you very much I appreciate you
putting that on the record very
clearly. Committee members, any other
questions on item number three? From
anyone? Okay.With that come I believe
we can go ahead and proceed. I would
take a motion to process item number
three from the speaker and a second
from vice chair Woodhouse. Any comments
or questions on the motion? Hearing
none, call the role, please
>> Roll Call Vote: Benitez-Thompson,
aye. Frierson, aye. Leavitt,, aye.
Jauregui, aye. Kremer, aye.
Monroe-Moreno, aye. Neal, aye.
Spiegel, aye. Munk, aye. Swank, aye.
Backus aye. Titus, aye. Wheeler, aye.
Carlton,, aye. Brooks, aye. Cancela,
aye. Denis,, aye. Goicoechea, aye.
Kieckhefer, aye. Parks, aye.
Settelmeyer, aye. Woodhouse, aye.
>> The motion carries.
>> Be much. So I believe that takes us
to item, D, statement of the account.
I'll go to Ms. Jones.
>> Thank you Mme. Chair. Item D is a
statement of the account to stabilize
operation of state government. Also
known as a Rainy Day account. The
information by the balance of the
account is found on page 71 of your
packet. At the beginning of the fiscal
year starting fiscal year starting
July 1, 2019 the balance in the fund is
331,000,006 94, eight $33. Two
transfers have been made to increase
the amount in the fund. Went for a
little over $25 million based on our
estimate. [inaudible]. With this
section says is at the end of a fiscal
year if the fund balances over seven
percent of the appropriations for the
next year, 40 percent of that excess
balance is transferred to the Rainy Day
fund. The second transfer is pursuant
to 353.281 B, in the amount of $44.5
million and that is the one percent of
revenue transfer. At the beginning of a
fiscal year the estimated revenue is
projected by the economic form, one
percent of that revenue mount is
transferred over to the Rainy Day fund.
The current balance of the Rainy Day
fund - excuse me - is $401,186,000.. So
that is the amount that would be
discussed under the next action item.
Thank you Mme. Chair. Happy to answer
any questions.
>> Thank you Ms. Jones. Any questions
For Ms. Jones?Seeing none, I believe
we can go to item, E, with that this is
a request for approval of transfer
funds from the account to stabilize
operation of government, the rainy day
fund. Following the different
declarations. I believe we do have a
question for the governor's finance
office, if they are available. Is Ms.
Brown available? I see Ms. Brown but
I cannot hear her.
>> Can you hear me?
>> We have you now. That is great,
thank you.
>> Okay. Sorry. This is a red finance
office.
>> Okay. So I guess the big question
of the day is, we are moving the rainy
day fund.. We understand that would
just go to support the general fund
basically, to take care of their
sponsor but is that we already have on
the books. Can you give us any
indication of what future plans you
might have in addressing the remainder
of the shortfall for this fiscal year?
>> Susan Brown, for the record
government finance office. We are
working through proposals that were put
forth by state agenciesand we will be
coming forward with a plan to IFC. We
are also looking at one time monies and
other ongoing - - this includes
ongoing and one-shot monies. And there
are a few other items we are looking at
doing some research to make sure those
are valid options to use. To help fill
the gap
>> Okay. Thank you. I know this is a
difficult question and every day seems
like a week, lately. Maybe, a month for
you. Do we have an idea of when we will
be getting some of this information and
I hope that you will reach out to us
and to our staff to help. We would love
to be part of this conversation to make
sure we are kind of on the same page.
So do you have any ideas when you might
be receiving some of this?
>> Susan Brown for the record. The FY
20 numbers come I think at this moment
are pretty solid. We have gone through
all of that. I have a few questions
from agencies on that item more than
happy to reach across and talk your
staff about all these proposals that we
are vetting at this point. We have
provided them some information at this
point in time so they can also be
reviewing proposals that the agencies
have made.
>> Well, thank you very much. We
appreciate that. As I've discussed with
a number of members and a phone call
with the governor just recently, this
is all about communication. We all have
to be on the same page moving forward.
It's about what's to invest for the
state and making sure that Nevadans
are taken care of. So we look forward
to working with you on this as we move
forward.
>> Thank you.
>> You are welcome. Speaker did you
have something? Yes?
>> Thank you for your indulgence Mme.
Chair. I just want to reiterate that
and also reiterate that we rely so
incredibly heavily on our fiscal staff
and the decisions we make and when we
make them are dependent on information
they're able to get for us. So it is
fair to say that if fiscal staff are
reaching out that is us reaching out.
They do so at our direction. So I just
one - - I know you guys are taking a
ton of calls, a lot of them articles
about people wanting to satisfy
curiosity. And time is short and we
realize that, but if our fiscal staff
are calling, I just wanted to put it
out there that is from us. So hopefully
it will help reduce the number of calls
back and forth if we are able to make
sure they get their questions answered
when they call because otherwise they
call us and they don't have all the
information and then we end up
duplicating calls. We don't want to do
that to you guys.
>> Okay. With that,committee members
any other comments from any other
members at this time? Mr. Wheeler.
>> Thank you Mme. Chair. Moving this
money over come I understand we are
going to have to do it. Were in a
problem here I believe but before we
can do that I like to see with the cuts
and the fiscal moves are going to be.
Is it a two to one ratio? We are going
to have a problem here with our bond
rating of course when we don't have a
reserve fund the bond rating changes.
If we need to re-bond if we need to a
new bond etc. that's got cost us more
money. I like to see - - we have CIP
programs I like to see us moving money
to programs. We could go into furlough
programs. There's a lot of things.
There's Medicaid. We did not have
people in the queue in Medicaid for
instance over the last couple months in
less it was an emergency. I like to
know what those numbers are and save is
there maybe we can transfer out of the
HHS into the general fund and back out
from one account to another. I like to
see you where they are. Without a 221
count I don't think I can vote to move
this money over. As you said Mme. Chair
and I agree with you completely, and
some communication here and I just have
not seen it yet. I know everybody just
going crazy. This is a true emergency,
but give us some idea other than we are
looking at things that I think were
going to be okay for FY 20. Ms. Brown
said that if I 20's pre-much done but
again, as a member of this committee
and I think all of us members in this
committee should probably know how it
is done before we start moving money
over. And thank you for letting me talk
about this. I appreciate it
>> Mr. Wheeler I will address that so
you understand how it is done.
Unfortunately my career I've had to do
this couple times. So I understand
there's a lot of uncertainty I felt
that uncertainty the first time that I
was put in a position to vote for
something like this. We actually had to
be called into special session to do
it. Luckily, now that we could do it
this way. Basically what we are doing
is,, Mr. Wheeler, is the state is
moving its money from its savings
account to its checking account to pay
the bills. So everything that you voted
on and all the budgets that you are
involved in during the last just of
session, all those decisions that we
made in a bipartisan fashion to fund
the state is where the money from the
rainy day fund will be going to support
those issues. Now, knowing full well
this amount is not going to be enough
to get there, that is the part of the
plan that we need to still keep working
on. I have been looking at different
things for the other members of this
committee have been looking at things
and so has the governor's office. But I
think it is incumbent upon us to be
prudent and make sure that we fund the
government the weight we promised to
fund it when we voted last June almost
a year ago, to fund all these programs.
So that is the purpose of the rainy
day fund, and that is what we are doing
right now. I believe you are looking at
the second part of the discussion that
needs to be had, which speaker and I
just discussed with Ms. Brown on where
do we go from there. But this first
part, basically moving the money is
just making sure that we uphold our
responsibilities to fund the programs
we all voted for. Excuse me.
>> May I follow up Mme. Chair yes him
Mr. Wheeler.
>> Thank you. I agree with you that
things have changed. There's no doubt
about that. When we were looking at a
very very solvent economy,, good money
coming in, we voted on a lot of things.
But, circumstances have changed. So
going back and saying, we voted on
these budgets and we need to push them
through, I think we need to change a
few things, and that is pretty much
what we have to do. The governor's
office can come up with a plan I believe
, but most importantly, we need to know
what the plan is before we start moving
money around. And even we are going to
try to do this or try to do that and I
think we can save some money here and I
think we can save some money there, I
would like to hear what some of those
details are. We are just not getting
that communication and I appreciate it.
It's a very weird situation. So, don't
get me wrong to my do appreciate that,
but I want to thank you for your time
and take the governor's office for
their time. I hope we can all actually
communicate were together and say,
because everybody -- there are 63 of us in
the building basically. Everybody would
have some good ideas I think. So let's
get together and talk about it.
>> And, Mr. Wheeler, I believe that
time will come when it is time to
address the next fiscal year's budget,
but I believe all the items that you
have cited, there would be no gain or
benefit from the changes between net
now in mid-May for just six weeks was
up those impacts of furloughs and CIP
projects and things along that line
would not have an impact. We have to
give state employees a 30 day notice.
So in essence it would be a two-week
impact. So I don't believe there is any
significant changes that we could make
right now that would impact us until
June 30. Those discussions will be based
on the next fiscal year and what
changes we have to make in the next
fiscal year. So with that come I
believe I had Dr. Titus had one had
wanted to speak to I'm sorry. I've the
speaker next and then I'll go to Dr.
Titus.
>> Thank you Mme. Chair. I just want to
say, that we have projected anywhere
from five, over $600 million in
shortfall. We, for the first time put
money away in the rainy day fund into
thousands of name for this exact
purpose and thank God that we did that
we have this money in the rainy day
fund. I don't thinkyou stop paying your
power bill because you don't know
what's going to happen next week. We
have bills that we have approved. Now
with respect to federal aid that's a
different issue about after the money
is going to be used. And with respect
to any proposed cuts, that is an issue
that we have to deal with, but I think
it is quite frankly disingenuous
hijacker rainy day fund that was
created for this purpose because we
don't like the way things are going and
want to have more information before we
feed our kids. That is essentially what
we are saying. When are going to feed our
kids until we get more information. No.
We fear kids we take care of our
response was that we move forward. I
think Susan Brown has indicated that
though come up with a plan or some
proposals for the remaining 200 for the
remaining 200 million may be, but to
withhold rainy day funds that we put in
a savings account essentially for this
purpose, is like leaving money in
savings account are not paying your
bills and not putting food on the table
and I don't think we need to politicize
using the rainy day fund to try to get
more information in another capacity. I
think it's not how we govern. It's not
how we take care of Nevadans who
are for hurting. -- the only political
games. Yes, we need to continue to
communicate as director Brown has
indicated you to follow up and provide
us with direction and information but
people are hurting right now. Not in
two weeks not in four weeks. We need
to put money in the rainy day fund for
this purpose and so I would hope that
we would do right by the citizens of
Nevada and take care of our bills in
our state's needs and continue to work
together to address what's on the
horizon, not just today.
>> Thank you, speaker. I have queued
up folks who have wanted to speak. I
believe Sen. Kieckhefer next. So Sen.
Kieckhefer
>> Thank you Mme. Chair. I appreciate
it. To follow along be example, I've
not heard yet we have a cash flow
problem that's requiring this transfer.
If we are transferring money from her
Simmons account or checking account we
need to do so because our checking
account is running out. I've not heard
that yet. Ms. Brown are we not paying
her bills? do you have a timeline
when you're going to need this extra
cash?
>>Mme. Chair if someone is speaking I
don't hear anything.
>> There is Ms. Brown. Ms. Brown, we
cannot hear you.
>> Can you hear me now?
>> Yes. Thank you.
>> Okay. Thank you. Sorry Susan Brown
for the record. As far as cash flow
issues go, with the DSA payments which
are in excess of $150 million a month
and payments to the system of higher
education we would need some cash to
buy the end of this month.
>> Okay. Do you have an estimate - -
let me follow up with another question
in. I've seen guidance from the
treasury is allowing states to use
their CARES Act money to Acca's cash
flow. Not spent it for other purposes
that are not allowed by the CARES Act
but using it for cash flow and we just
in our last meeting received $836
million in cash when the Fed will
assume our treasury is fairly flush at
this point? In my correct in that?
>> Susan Brown for the record. I have
heard that may be the case that the
money can be used for cash flow.
However, that does not change the fact
that by the end of this fiscal year we
would have a general fund balance that
would be below.
>> I appreciate that. I certainly
>>
>> [Multiple speakers]
>> Ms. Brown, appreciate that I
sorely don't question the ultimate need
for this money to be used this fiscal
year to help us come up with a
comprehensive solution for a budget
deficit but the argument has been made
that we need to pay our bills doesn't
seem to carry water when we have cash
in the treasury to pay our bills. I
think you would make more sense for us
to come together with a conference of
solution that can alleviate some the
concerns that might be faced by rating
agency by credit rating agencies with a
look at drawdowns of reserve accounts.
This is an appropriate use of a reserve
account. When we have declining
revenues but it is always put in
conjunction with spending reductions
and if needed, tax increases. That's
how they look at them as a three-legged
school to stabilize our treasury
during times of recession. So if we are
only addressing one leg of that stool
at this time I think that offers some
uncertainty over the states plan moving
forward with the we have one to address
our broader shortfalls. So if there's
not a cash flow issue I think would
make more senseMme. Chair, breast to
hold back on this. We are going to need
it more immediately we could draw down
a part of it but if were needing it
once or twice a week we could certainly
drop down more from the rainy day fund
if we needed to at a subsequent
meeting, for the end of this month. So
those are my thoughts at this timeMme.
Chair.
>> Thank you Sen. full I Believe Ave.,
Doctor Titus, next.
>> Thank you Mme. Chair. I appreciate
the opportunity. I just want to thank
you for your statement Mme. Chair about
the need for key mitigation because I
think is going to be the neck crux of
this and make sure we all communicate.
I also appreciate the speaker's name
about not politicizing all this. To
that and I think what we need to do is
be fiscally responsible. And we have
lessons we learned during the recession
and in how we manage our funds at that
time. Lessons we don't want to repeat
perhaps. I think the bonding issue is a
real one. I think we need to be
responsible and not repeat the mistakes
we made then and lower the bonding
rating those considered go cost us more
money in the end. So I echo what the
senator just said regarding maybe not
the need to transfer the entire fund at
this time. Perhaps we do it in document
to which only have a capability, too. I
did we need to be a response about this
and they attention to her the money is
going out to the will be a need
everybody on this call I think
everybody - excuse me - everything the
state knows we are going to need to
have good fiscal responsibility. So I
appreciate the opportunity for that and
will be my belief that be thoughtful
about this, not transfer this entire
fund at this time Make sure we
understand the process and what we did
in the past and not repeat that. So
thank you for the opportunity.
>> Thank youDr. Titus for I can assure
you we are all being thoughtful.. Thank
you. So I believe Ed Sen. Settelmeyer,
next.
>> Thank you Mme. Chair. I cannot
support the drawdown of the entire
rainy day fund I think we need to worry
about our bond rating. I am afraid we
can create a situation will cost us
more with existing bonds are still out
there without the cost will go up. Vs.
the money, still in the bank account. I
also look at this is your were looking
at deficit by the next year were
looking at potential a billion-dollar
deficit. I go back to the fact that
when the wind shut down a couple days
later the governor made the right
decision to shut down the casinos. We
all knew that's about $100 million a
month had we not be receiving revenue.
Yet there was no plan in March to start
reducing cost. In April, again, no
plans for reducing cost. May, there
still no plans to reduce cost. Without
that I cannot approve it. Thank you.
>> I believe I've Sen. Cancela, next.
>> Thank you Mme. Chair. This is for
clarification or that anything because
while it is true that we have a
significant of CARES Act dollars
sitting in our state coffers, Ms.
Brown, could you please clarify and
make sure that it is clear on the
record that CARES Act dollars cannot
be used to pay our bills for lack of a
better description, the same way rainy
day funds can't and that the two funds
operate for different purposes?
>> Susan Brown for the record. The
rainy day fund dollars are general fund
and be used to pay the state bills was
up the CARES Act of these for cash flow
but there is parameters around how the
funds can be spent in has to be related
to costs associate with COVID 19 and
reacting and responding to COVID 19. I
would also add the CARES Act fundsare
only available until December 30 and we
will be dispersing those funds in the
near future as plans are approved for
those funds to got the door.
>> Thank you Ms. Brown. I just have a
quick follow-up Mme. Chair. We have a
real opportunity to be thoughtful and
forward thinking with our CARES Act
dollars. I understand they need to
pay down our bills and I appreciate the
decision before us today. I think it's
the right one but as we move forward
with the CARES Act dollars and with our
rainy day fund,, we have an opportunity
to be creative as a state about how the
two interact in making sure that, while
they certainly operate for certain
cost, we continue to be for thinking
about those dollars.
>> And, thank you Sen. Cancela. As we
talk about the CARES Act dollars, if we
do use those for our cash flow issues
than they are not available to help the
Nevadans were truly in the right now.
So I believe we would be put in a tough
position of making that choice whereas
we do have money in the savings account
right now to help us get through and
figure out how to get all these bills
paid. So I appreciate that. I believe
- - I'm not sure who I have next in
the queue. I have Ms. Benitez-Thompson,
and then I will go to you, Sen. Goicoechea.
>> Thank you Mme. Chair. I'm taking
notes just trying to follow the
information that's given us.. Ms. Brown
I heard you say that we have got
payments for the DSA so payments to
schools for educating our kids and then
also payments to our higher education,
system of higher education. So those
are the two big payments that we have
in the next couple of weeks that, once
we make those, we will - - are fund
balance will be too low to have the
cash on hand to pay stuff in June. So
did I get that right? Those are the
two big expenditures this month?
>> Susan Brown for the record. Yes,
those are the two big expenditures and
there's Medicaid payments that go out
monthly as well, and I don't have the
numbers
>> Thank you. I was can ask about that.
I appreciate that. I was going to ask
just that because we know our biggest
pieces of the budget, by far our
education and health and human
services. So I was wondering about the
health and human service piece. So if
we don't move over this money we are
putting education and Medicaid dollars,
we tried those up. And we will not be
able to make those payments as a state
without moving the savings over four
DSA and Medicaid payments?
>> Am I getting it accurately?
>> Susan Brown for the record.. Yes,
you are accurate about that. That is
correct.
>> Any follow-up Ms. Benitez-Thompson?
>> I guess, no. I know that the board
of examiners met yesterday. I know that
- - or, recently. It feels like we
have met - - well it looks like we've
est. all the legal requirements for
what shortfall is and the provisions
that this legislature voted on her
when we could move this money. I think
that we as a body were very thoughtful
and reflective last session, even
though we would not be in this, to say
if we moved rainy day money over what
would be the statutory climates for
doing that. We want to make sure that
some Dover willy-nilly. We want to make
sure the state is really in a place
where it needs these funds and build
the language you trigger it that way. I
feel like we have met the precedents
that we put out there as a body and I
would sure hate to see educators that
notice that at school districts get
noticed in our Medicaid providers get
notice that they are not going to get
checks at the beginning of June because
we are not taking this action here
today.
>> So, I want to make sure I understand
this correctly. Ms. Brown, would you
repeat again what is the amount, as far
as the DSA goes?
>> Susan Brown for the record. The DSA
payment runs somewhere north of $150
million a month, I believe.
>> 150 million a month and you had
mentioned - -
>> I'm sorry, 115 million a month.
>> 115, okay. That's why we repeat.
>> [Multiple speakers]
>> There are months where it is
higher. Because some school districts
get their payments quarterly rather
than monthly.
>> Okay. Does that include the
shortfall from the - - or is that our
portion?
>> That is just our portion.
>> So, then we need to add the shortfall
from the LL ST that is documented that
the state is required to backfill.
Correct?
>> Susan Brown for the record that is
correct.
>> And, if I think of those numbers, if
you think over 400 million we are
moving right now, most of that I
believe will end up going to education,
am I correct?
>> You could say that, yes. It just a
big pot of money and that is one of our
biggest expenses. So that would be
accurate to say that.
>> Okay. I think there is still a
little bit of confusion. Sen.
Kieckhefer had asked a clarifying
question because one of the answers
with the majority leader he is little
confused also Sen. Kieckhefer did you
want to come back in?
>> I appreciate that's be one. I heard
what I heard was different. You
indicator based on the amount of cash
we have in the treasury we would be
unable to pay the DSA and higher Ed
payments at the end of this month.
That sounded just different the what
you told me. That we will be able to
make those plans based on the cash flow
flexibility allowed through the CARES
Act and what we currently have in the
general fund. Through our natural
general fund dollars.
>> Susan Brown for the record. For
clarification, those payments, we have
a casual issue in the general fund.
Obviously, based on what you have said
with a CARES Act money, that money is
sitting in our bank account and we can
use that for cash flow. We cannot use
it to balance the budget.
>> Right. So I'm not suggesting we use
it to supplant revenue,. I'm saying, if
we have to pay the check, write a check
to the school district we can use that
money temporarily to cover that outlay
to the school district knowing that we
will have to backfill it with either
rainy day fund money or some other
cutdown money, right?
>> Susan Brown for the record. That's
my understand but I been told that is
the case that we can use the CARES Act
money for cash flow?.
>> Right. So were not at risk of not
cutting a check for the school, right?
C was Susan Brown for the record. Not
at this time.
>> Thank you Mme. Chair I patient
everything for Karthik Asian
>> And, I appreciate that Sen., but
there is no guarantees that money will
be paid, that money will end up going
back into the CARES Act because we know
what it takes to deal with revenue in
this state. So, saying that we should
push that decision off and I believe,
would be irresponsible at this time. I
believe we know we have a
responsibility to get this money where
it needs to go. We have the dollars
available to do it. The CARES Act
cannot be used to deal with general
fund type issues. We would have to
figure out a way to put that money back
in later on. So you would just in
essence push the problem out rather
than dealing with a problem that's in
front of us right now. So that is my
concern. We just don't know where we
will be six, seven months from now. We
may be in more dire straits then we are
in now. So come I believe we should
address the problem that we have in
front of us now and make sure that we
go from there. But I do appreciate you
clarify exactly where we are when it
comes to these two funds of money. It
has been very confusing to a number of
folks how these two funds work in
parallel, but not really to support
each other. So, with that, I believe
Sen. Goicoechea has been waiting
patiently
>> Thank you Mme. Chair. I don't think
there's any argument amongst anyone on
the committee that there is a need to
transfer at least a portion of the
rainy day fund. I think it's just a
time of when and if and how much.
Clearly, I believe because we do have,
assuming 800 million, plus from CARES
Act money that is presently residing in
the bank account, technically, that can
be used as an asset just to cover that
account materially until June 30. So I
don't think anybody's arguing whether
be in fact need to transfer from the
rainy day fund. Just the amount. I can
transfer half. We are meeting twice
this week were to continue to meet over
the next 30 days. I feel a lot more
comfortable for a feeling where we were
15 June for exactly what cuts do we
have in place, what was going to be
required and yes, we all understand
that even additional 200 million if we
only forwarded half of the committee to
enter million would be enough, but at
least we would have an idea where we
are headed. If we throw the 400 and,
last time I changed some money from my
savings to checking, pretty much went
through it in one day. It rolls right
along. We've got time we got the body
in place. Let's take a look at just
exactly where we are. I can support
half of the rainy day account but give
it 30 days. Let's see where we are in
our plan. I'm afraid we are hanging all
of this on maybe a federal stimulus
package that might be coming and might
not be coming down the road and I do
want to try to balance the budget on
that either. So with that I cannot
support transferring the whole rainy
day fund. I could definitely go with
half of it and let's see where we are
in 30 days. Were going to have to make
some cuts. We cannot bounce this on
just the rainy day account and the
rainy dunce rainy day fund balance.
Thank you
>> So, all go to th with that I'll go
to Sen Woodhouse Woodhouse.
>> Thank you Mme. Chair. I have a
comment. I want to circle around to
some of the information that we know
and that we've also heard from today.
First of all, Mme. Chair you and
speaker Frierson laid that out, very
good reasons why we need to move the
entire many day fund today. And I want
to thank Ms. Brown and everyone in the
governor's office regarding the
commitment to us to keep us in the loop
about what kinds of plans that they
see,, especially as they look at
reversions, one time once of times
they cut one time funding. Things we
will have to change, and make those
cuts. We are really fortunate in this
last legislative session that we put
some additional - - we put money into
the rainy day fund.. It's not been
something that's been there every
single legislative session. So this is
our first, I guess you would call, pot
of money, to go after in order to
address this huge deficit that we have
that is probably going to grow. We know
it's going to grow bigger. So this is
the way to get started and then we have
to look at reversions. We have to look
at one time funding we have to make
cuts from. A number of us were here
back in the recession in 2008 through
11, and for those of you who have not
had that experience, I can tell you how
difficultthat is when we look at
services and people and really word
prefer to say people first and then
services, that are going to be hurt by
what's happening with the pandemic. So
I just want to reiterate the comments
made, particularly by the speaker and
the chair, in that this is the
appropriate time for us to move the
fold rainy day fund. It's 400, plus
million and a deficit we have is going
to be exceedingly larger than that. So
it is time to begin the work that we
have to do. So thank you Mme. Chair.
>> Thank you all very much. I believe
in response, if the conversation with
moving it twice, it would require
another BOE. It would require us to do
the process all over again. So at this
time I believe it is more appropriate
to go ahead and move the whole amount.
We know we are going to need it. We
know we will be working on this.
Splitting it in two, I don't believe
serves any purpose other than to slow
it down and possibly cause more
misinformation out there about what
the state is doing with its rainy day
fund so, with that are there any other
comments? Are there any other comments?
Did I see a hand raised because
speaker Frierson. I will let Mr.
Settelmeyer go first and then speaker
Frierson. Sen. SettelmeyerB thank you
Mme. Chair. What is the total amount
necessary in order to cover educational
BSA expenses and the LLC backdrop you
mention?
>> Ms. Brown do you have that number
available?
>> Susan Brown for the record. I do
not have an exact amount at this moment
in time. But I believe it's pretty high.
>> Do you have an estimate, by chance?
>> I do not have an estimate. I don't
have that right in front of me where I
am at. Without looks like. But I would
say, - - while I won't say a number
because I don't have it in front of me
and I don't want to misspeak.
>> Thank you Mme. Chair.
>> Thank you, Sen. I have some
forecast but they are not definitive
and I would hate to put a number out
there in the public that we cannot
actually substantiate. Staff has taught
me very well to be careful about
approximating certain things, but I
think we can all agree that it's
pretty bad and that we are going to
have a lot to deal with before the end
of this year. So with that, speaker
Frierson.
>> I just want to make clear, I
appreciate the interest in wanting more
information. I think that what we do,
we pick up the phone and call and
communicate to be statesmen and states
woman to participate and urge
communication and collaboration but
again, for somebody living
month-to-month they don't get a payday
loan when they know have money in their
savings account. What is being proposed
is that if we transferred in entirety
recognizing it still less than what
project meeting, and we still have the
opportunity, not only to have
conversations with the governor about
likely future cuts and how we can
actually get there, but priorities as
far as ongoing obligations. But it
doesn't relieve us of the obligation to
talk and pick up the phone and call
instead of withholding to force it.
So you don't wait until you bounce a
check to transfer money into the
checking account easily don't borrow
from a search of the back when you know
you have money in your savings account
to meet those obligations. At that
point I would get a need to use that
money for Cashel? Maybe and it will be
there until the end of the year, but
again, wedon't have money in the fund
the rainy financial 2017. So I think
the fact that we have it there will
provide certainty to folks that were
doing everything we can that we will
continue to look at ways to either cut
or otherwise get by but doesn't relieve
us of any opportunity to talk and
collaborate and communicate. I don't
think that - - I don't think moving
the rainy day funds is going to in any
greater way divided opportunity to do
that. I think we still need to do that.
>> Thank you, speaker. With that come
I don't have anyone else signaling
they have any questions, or comments.
So can I believe we can go ahead and
proceed. With that I will go ahead and
stay the motion to make sure that we
are explicitly clear in what we are
doing. I will accept a motion to
transfer $401 million from the account
to stabilize the operation of state
government to the state general fund as
recommended by the board of examiners
on the 14th 2020 in accordance with an
RS 353.282 subsection 7. I will take a
motion from the speaker and I'll take a
second from by chair Woodhouse. Other
questions or comments on the motion as
stated? Sen. Kieckhefer..
>> I was look at a statue the packet.
It says were supposed to do this by
resolution. We have a resolution we are
looking at?
>> Ms. Jones, do you want to clarify
that?
>> Yes, Mme. Chair.. There's a
resolution to be signed by the chair
just as resolutions are when we
transfer funds from the contingency
account to various programs. If you
would like we can distribute that to
members.
>> I don't a guy need it. I just want
to know there's a document we are
looking at. It's transferring a balance
that's pretty much what it says?
>> Yes. Sen. Kieckhefer, yes. It's
prepared by the legal division per our
resolutions when we do other transfers
from the contingency account.
>> Yes, Sen., typically after the
meeting after the motion and the second
and a vote before I leave the room Ms.
Jones hands me the resolutions that we
have passed so they can be signed. This
one will be signed with my electronic
signature. So after the vote is taken.
So are there any other questions or
comments? I want to make sure everyone
is comfortable. Seeing no other hands
or voices being raised, I will ask to
call the role, please.
>> Roll Call Vote: Benitez-Thompson,,
aye. Frierson,, aye. Leavitt, nay.
Jauregui, aye. Kremer, nay.
Monroe-Moreno,, aye. Neal, aye.
Spiegel,, aye. Munk, aye. Swank, aye.
Backus, aye. Titus, nay. Wheeler,
nay. Carlton,, aye. Brooks, aye.
Cancela, aye. Denis, aye.
Goicoechea,, nay. Kieckhefer, nay.
Parks, aye. Settelmeyer, nay.
Woodhouse, aye.
>> Mme. Chair the motion carries.
>> Can you hear me? Can you hear me?
>> We can hear you.
>> Okay. Good. I lost you guys for
moment. Sorry about that. So with that,
the motion passes. We can go ahead and
move on to the next item. Item F,
request for approval to accept gifts
and grants expeditious program for the
department of education CARES Act
elementary and secondary school
emergency relief funds.
>> If we could queue up the presenter,
please.
>> Thank you Mme. Chair I members of
the committee. This is Joanbeaver State
Superintendent of Pub. instruction.
Today I have with me deputy
superintendent Heidi parks and as you
noted we are requesting the acceptance
and the ability to expand the federal
funds under the elementary and
secondary school emergency relief
funds, which they are referring to as
[inaudible]. The funds are allocated
through the coronavirus aid relief and
economic security act in the amount of
$170 m 185 - excuse me - $185,045 to
assist local education agencies
throughout the state and provide
support for remote learning. The US
Department of education made the
application of Abel on Friday, April 28
. The Department of Education submitted
the application on the Tuesday
following, which was April 20 and the
state did receive those funds on May 1.
The department of education was
allocate 90 percent of the funds to the
- - according to FY 19 title I
methodology. And that amounts to
105,000,004 and $66,000. MD may set
aside 10 percent of those dollars which
is just over 11 million for statewide
activities, and the funds must be
expended by September 2022. The
allowable use for all of those funds,
even though they are allocated based on
title Idesignation for those funds may
be used across the entire LDA as well
as the public charters and authority
schools will they must also have
consultation with private schools to
allocate those funds. They may use them
in response to all of the efforts and
preparation related to COVID 19, such
as coordination with our school
districts and our local health
officials. And they provide
professional development for educators
to support families and communities,
social emotional health.. They also may
use the dollars to cure educational
technology which we know we about
100,000 devices short in our state to
provide a one-to-one assistance. Make a
note of mental and social emotional
learning supports and the activities
necessary to maintain the operation of
and continuity of services and local
educational agencies such as PPE and
other equipment needed. So this does
not represent a list of all the things
that they may expend their funds on.
But it does provide you with an
overview. We have been working with
school districts to coordinate the use
of these funds,, not only locally, but
across school districts. A lot of great
coordination in that area. And we are
seeking your approval this morning.
Thank you.
>> Thank you very much. I will go
ahead and open it up for questions. I
believe I've Sen. Woodhouse, first.
>> Thank you Mme. Chair. Thank you,
Superintendent Ebert. This is going to
be extremely helpful I want to ask you,
you indicated some guidance they are for
schools, public schools and charter
schools. So, what - - in addition to
the guidance that has been provided
will you be doing any more in depth
guidance what kind of oversight will
they department provide two school
districts and charter schools when they
access these cares dollars?
>> Thank you very much vice chair. So
these funds and everyone knows this all
of this work has been moving very
quickly. At the department we created a
committee to support schools. I speak
with assumer tenants at least once a
week individually, multiple times as
well. The superintendents have also
have been creating their committees as
we learn more what the pandemic - -
as we try to move forward as a state
and nation and globally. What that
means for educating our children to
ensure continuity of education. The
accountability piece right now, within
the application we have built in that
identify where they expect to expend
those funds, and we know that there
will be - - it's not your traditional
application that we have had in the
past, where we build including the
federal government normally has an
application and timeline for issuing a
funds. But it's over many months. They
were actually, once we submitted our
application, and ensure the funds
within three days. So we know that the
process on the front end has built in
the expectation with accountability on
the backend. So what we did with our
application working with[inaudible] as
well to make sure we can provide the
funds in a timely manner, that portions
of identification where those funds
will be are in the application and
working with the districts to make sure
that as we move through accountability
is there through the entire process.
Not waiting until the very end.>> Thank
you. Mme. Chair, I have a follow-up
question if that's acceptable
>> Yes. Please, go ahead Sen.
>> Thank you. It is my understanding
that there is no math requirement for
the funding but a maintenance of
effort. Could you explain the
maintenance of effort to come in and
associate with the funding and how the
department plans to comply with that or
do you plan to seek a waiver in order
to handle this issue?>>
>> Can you hear me?
>> Yes. Be so these funds do come with
a maintenance of effort requirements
and the federal government is asking
each state to the extent possible to
continue the level of funding in
fiscal year 20 and 21. That would agree
to the average funding they have for
elementary and secondary education as
well as higher education in the three
previous fiscal years. In the event
that states are unable to do that, the
secretary of education of the United
States department of education will
establish a process they can request a
waiver. To my knowledge we have not
received any guidance on how that
waiver can be requested and until such
time as we know what if any budget
reductions are implement it, we don't
know if we will be able to continue
funding at the average over those
three specific fiscal years or if we
will need a waiver to meet the
maintenance of expectation.
>> Thank you. Any follow-up?
>> Yes. I do have one quick question.
Do the mental health hospitals that
have schools, with a qualify for
receiving any of these funds? Some of
them had to purchase computers and that
sort of thing to do the distance
learning. So is there any assistance
there?
>> So that 90 percent of the funds are
allocated directly to the school
districts as well as the state public
school charter authority. The
additional 10 percent that is set
aside, we do fully expect they will be
able to to apply for those funds.
>> Very good. Thank you very much.
>> Thank you, Sen. I believe I have
Sen. Denis the next.
>> Thank you Mme. Chair. So as was
mentioned, Ms. Ebert you mentioned
there were about 100,000 short to do
one-to-one technology. Is that correct?
>> That is correct. Last time we
survey the school doesn't districts
that the number we were provided.
>> Because I know we have been adding
for several years trying to get to this
one to one and we been short for a while.
We've already added some during the
pandemic is that correct?
>> That is correct.
>> Do we know what the numbers?
>> Superintendent Ebert for the
record, I apologize. The number that I
quoted you was actually inclusive of
the devices that have been ordered by
school districts. When we started
collecting this data in mid March
specifically March 18 the school
districts actually reported they were
130,000 devices short They have been
able to deploy 30,000 devices over the
last six weeks. So which is about 80
percent of students have access. It is
the 20 percent, the last mile that we
are missing.
>> Okay. So as I thought about this,
because we have been emphasizing a lot
on the one to one so they could get something
when they're not able to be in a
building with a teacher. Are we
allocating money to staff up, to be
able to maintain these? If you have
issues with the commuters, have - -
are they staffing up for training?
Curriculum development, those kind of
things? Is that something that is
going to be monitored as we go through
this?
>> Superintendent Ebert for the
record. Thank you Sen. Sen. These
questions are spot on. This is a
system. It doesn't matter - - if we
provide every single students in our
state with a device and we don't
provide family support more parent
support, teacher support and how do you
make a shift, we have some educators
that have great experience in our state
that have been doing distance learning
for over two decades, and then we have
other teachers that are not had the
opportunity to teach students at a
distance. So we need to make sure that
we create a system that has the
technology and Internet access. So
hopefully, which is currently in the
heroes act. We will see additional
support for broadband for schools and
familiesdirectly into the home. The
second bucket, high quality content
high quality professional development
for teachers, and to use content and
then professional development. So we
are looking at cross the entire system
to make sure we have all of those
pieces in place was up the school
districts have collaborated with that
we have been working closely with them
to leverage the teachers that are
experienced to be able to support
teachers that are just new to this
experience. So we are building that
system out very thoughtfully and are
very short period of time. Like many
other test we are doing during this
pandemic.
>> Thank you. Then the last concern
that I have it has to do with the
actual deployment. When we say one to one,
are we really saying, one to one. One of the
concerns I have one a lot of the
started getting done as they would call
family and the family has one device
but they have three kids or for kids,
it's very difficult for all for kids to
get access to the device. So I want to
make sure when were talking one to one
every child has access to a device. So
that they are not inhibited in their
ability to be able to learn.
>> Thank you Sen. Denis. For the
record set superintendent Ebert. In my
mind one to one is one to one, one
child when device. You are exactly
right it doesn't make sense to three
children and household trying to share
one technology piece. It would be like
giving them each a pencil were one
pencil in St., please share this and
complete your work. So we are making a
shift and should be one device per
student. I will make sure we are having
that same conversation with all of the
superintendents and charter school
authority.
>> Thank you very much. Thank you Mme.
Chair.
>> Thank you Sen. Denis. I'll go to
assemblywoman Neal next
>> Thank you Mme. Chair. So I had a
question on the supplanting provision.
I was reading in the backup that the
ESS are allows the supplanting and it
actually allows the funds to take
place at the state and local funds for
allowable activity. CSST is getting,
what is that, 83 million? Have they
broken out what they're going to use it
for, and how they are going to fill in
their budget?
>> Thank you assemblywoman Neal for
superintendent Ebert for the record.
Like the conversation before I think a
lot of moving parts. The school
district are looking at what the budget
reductions will be along with these
funds. And not looking at each
individual piece in isolation. So I
can't speak for the Clark County school
District specifically. They are aware
of the dollars that are being made
available within the CARES Act and
then I'm sure they will move forward
accordingly. You're actually right on
the supplement vs. a plan. They have
made these dollars extremely flexible,
that if they choose to use all the
dollars on devices, and Internet
connectivity for children, that they
may and/or use all the dollars, the 83
Millie Dawes for social emotional
learning. So it is incumbent upon the
school district leaders to make sure
they have a plan that meets the needs
of their individual school districts.
Each school district is unique as you
well know and the public school charter
authority is as well so we have some
schools that accelerate and continue to
accelerate in this arena and others that
quite frankly, have struggled.
>> Mme. Chair, just a quick follow-up..
>> Yes.
>> Director Ebert, did have to give
you a plan? At of the listed items did
have to tell you, we are going to fight
out of 11 and then show youhow there
around student learning there is a
clear equity piece.. Do they have to
illustrate to you how they were
equitable with those subpopulations?
>> Thank you Mme. Chair and
assemblywoman. The focus is on the
highest [inaudible] students. The way
we have constructed this so they can
achieve, receive the dollars to meet
the needs of the students quickly is
that, we have built it out with the
various categories that I explained
earlier, and then they are to explain
how they will focus and meet the needs
of our low income students come our
children with disabilities, our English
language learners, racial, ethnic
minorities that are not experiencing
success in our educational system,
homelessness, foster care, all those
are high-priority focus within these
dollars are allocated to the districts.
>> Thank you. So I believe we can go to
Sen. Cancela, next.
>> Thank you Mme. Chair. Dir. Ebert, I
have heard that procurementof
materials, whether it is tablets or
computers, has been a challenge because
we are up against the entire country
potentially the whole globe, in getting
these digital tools to our students and
getting them ordered and get any orders
fulfilled. Do you have a timeline of
when you anticipate these materials
will actually be in the hands of
students and is there anything we can
do to support moving that along as
quickly as possible?
>> Thank you Sen. for that question,
superintendent Ebert for the record. It
has been roughly, school district are
reporting in somewhere between six and
eight weeks for devices to come in. At
this point in time, it really is a
matter of funding. The funding needs to
be made available so they can place
orders. You are right, the sub supply
chain with the school district across
the nation looking, and the dollars
being made available, for devices, the
sooner these orders are placed the
quicker we can get devices and
connectivity to our students and
families in their homes.
>> All right. Are there any other
questions from committee members at
this time? Seeing none, I believe we
can go ahead and move forward with this
item. So I would accept a motion to
process item number three - excuse me -
item 7, making sure I've the right
number here. Item F. I will accept a
motion from vice chair Woodhouse and a
second from Majority Leader
Benitez-Thompson. Are there any questions
or comments on the motion? Hearing
none, I will go ahead and call the role
>> Roll Call Vote: Benitez-Thompson,
aye. Frierson, aye. Leavitt, aye.
Jauregui, aye. Kremer, aye.
Monroe-Moreno aye. Neal, aye.
Spiegel, aye., Spiegel, aye. Munk,
aye. Swank, aye. Backus, aye.
Titus, aye. Wheeler, aye. Carlton,
aye. Brooks, aye. Cancela,, aye.
Denis, aye. Goicoechea, aye.
Kieckhefer, aye. Parks, aye.
Settelmeyer, aye. Woodhouse, aye.
>> The motion carries.
>> Thank you. So with that item number
F is taken care of. I believe our next
item is a discussion point only.. I
will go ahead and turn it over to
speaker Frierson,, as far as the
discussion about establishing a
committee foroversight and input on the
COVID 19 money. So speaker Frierson.
>> Thank you Mme. Chair. As we briefly
discussed at our last meeting and have
been abundantly apparent both in that
meeting and this meeting, there is not
only a desire but a focus on us in the
legislative branch, looking at the
influx of federal dollars.. And having
hearings on where money has gone and
hearing from different stakeholders
about where money should go. And making
recommendations based on those
hearings. Again if we did this in 2009
with federal aid and I would envision
that the structure and process would be
similar regarding the composition and
oversight. This would be done in
conjunction with the executive and
having these hearings and making these
recommendations, and so it would be my
wish to have that subcommittee formed
and on Thursday, on Thursday, get
moving on the creation of that, so that
we can envision getting more information
and collectively having some
conversations about how that money has
been used and how it should be used. I
will also say that the intention is
for it to be broad enough that any
future federal dollars that may come
would also be in conference. So we will
have to do this based on the narrow
CARES Act in and of itself and rather
related to coronavirus and the pandemic
so we continue to do the work of where
the money is and input from the crayon
where it should go forward.
>> Thank you speaker. So committee this
is a discussion point for now. A
meeting has been noticed for Thursday
at 1:30 PM to actually create this
subcommittee of the interim finance
committee. So are there any questions
or comments from other members at this
time? No vote on this will be taken
today. This is merely the public
discussion part of it. Committee
members? Did I see a hand? Sen.
Woodhouse I am sorry, yes.
>> Thank you chair Carlton. I just
want to say come I want to thank
speaker Frierson and the chair and Sen.
for working on this oversight committee
idea. I believe this is truly a way we
can make sure that we are using - -
that we are utilizing the CARES Act
dollars that will help the Nevadans
to deal with a crisis at hand and it's
also an opportunity for us to
communicate how these dollars are being
expended in the most efficient way.. So
that all of the stakeholders in state
government, legislature our local
officials as well as well as the
communities in which we all live, that
we know what is happening with these
dollars. Because it is very very
important that we do adjust the needs
of our community. So thank you very
much for the opportunity to make a
comment.>> Thank you Sen. Woodhouse.
Any other questions or comments from
any other committee members at this
time? I don't see anyone wishing to be
recognized at this moment. So with that
committee members will take our
standard two-minute pause in order to
allow folks wish to make a public
comment to be able to dial in and be
queued up. The clock that I have right
now is citing about 11:15 AM. In the
interest to make it your will go until
about 11:18 AM and will check our
broadcast services staff to see if
anyone is in a queue for public
comment. So with that we will stand
eddies for the next couple of minutes.
Thank you.
>> >> [Recess]
>> Broadcast services do we have
anyone in a comment, please be was we
have one caller. Caller, please were
the last three numbers 535, please be
addressed
>> Good morning Mme. Chair and
committee. My name is Jim Sullivan. I'm
here representing the [inaudible]. As
CARES Act money starts to flow into our
state the culinary union believes the
lattice of prioritize getting displaced
workers back to work to protecting
those that 142 we remain unemployed.
As communities plan to reopen casinos,
it's imperative that CARES Act money
used for allocated to first ensure that
all hospitality employees - excuse me -
first to ensure that all hospitality
employees are testable for they return
to work and it's crucial to address was
sufficient time for workers to receive
results before their scheduled to
return to work. In addition, CARES Act
money should be set aside to assist
workers for long-term unemployment and
food housing and rental assistance. The
culinary union is also demanding
transparency as Nevada stores plan to
reopen. We are at all elected officials
on the interim finance committee to
contact Nevada gaming commission and
asked them to do things immediately.
One, incorporate the culinary unions
proposed public health guidelines at a
minimum standard in evaluating casino
companies individual plans. Second,
publicly release all reopen plans
submitted by the gaming establishment.
The safety of the matter of lady life
and death for workers with gaming
comedies are responsible to be
transparent with another Nevadans and
[inaudible] control the pandemic of the
call: are you will can do to be vocal
and issued to make sure workers are
saved thank you for your time and
estimate this as written testimony
after this meeting. Thank you.
>> Thank you Mr. Sullivan. Please, do
submit written testimony. Either any
other public comment requests?
>>
>> Mme. Chair, that concludes the
public comment queue at this time.
>> Thank you very much care services
you are doing a great job keeping us on
track and this is getting easier and
easier every time so, thank you very
much for all your hard work. So with
that committee members there's no more
business in front of us for today. The
meeting has been posted for Thursday at
1:30 PM. Please please, do try to sign
in early on the queue if you can to
make sure that we are ready to go at
1:30 PM. Please, do remember that these
are broadcast on the Internet and this
is just like every other meeting. Side
conversations and other work should be
kept at a minimum while were doing the
people's work in this committee
meeting. I like to say we were
officially kiddie bombs earlier at Ms.
Spiegel's residence so we have now
crossed over into having a pet attend
one of our meetings. We knew it was
gonna happen sooner or later so
congratulations Ms. Spiegel. You're the
first one to have a pet attend and IFC
remaining. So with that committee
members, thank you very much. We are
adjourned.
>> >> [Event concluded]