Bill Summary for Bill Number Briefing by the Joint Budget Committee

Final
Briefing by the Joint Budget Committee

COMMITTEE ON JOINT FINANCE

Votes:

Action Taken:

<none>

09:39 AM -- JBC Briefing on Departmental Budget Requests

Senator Sandoval, chair, called the meeting to order. Members of the Joint Budget Committee (JBC), Senator Tapia, Representative Plant, Representative Buescher, and Representative Hall, presented information on the budget requests for the Department of Revenue and the Department of Treasury. A copy of their presentation is provided as Attachment A.

Department of Revenue:

Senator Tapia discussed the funding sources for the Department of Revenue. The department is mostly funded from cash funds; the General Fund provides 17 percent of the revenue for the department in FY 2004-05. The department's key responsibilities include: taxation; transportation functions, such as the implementation of the state's motor vehicle laws relating to the issuance of driver's licenses and vehicle registration; and enforcement functions, such as the regulation of the manufacture and distribution of alcoholic beverages, and the regulation of horse and greyhound racing. Senator Tapia also highlighted the factors that drive the department's budget. These factors include: revenue and tax collections; motor vehicle licensing and registration; the increasing amount of postage required due to state population increases; commercial vehicle traffic; and the need to continue to find ways to update the department's information technology.

Senator Teck inquired about the department's computer problem that resulted in inaccurate revenue data which impacts the estimated revenue shortfall for the FY 2004-05 budget. Senator Tapia explained that the JBC has only recently found out about the issue and that he wanted to obtain more information before commenting.

Senator Tapia indicated that the department's decision items for FY 2005-06 include savings of $29,000 in General Fund money resulting from increased efficiencies in the Executive Director's Office. Further, base reductions for the department for FY 2005-06 include a General Fund reduction of $562,902 due to reduced growth in personal services expenditures. Overall, the department is requesting a $9.7 million General Fund increase from FY 2004-05 to FY 2005-06.

Senator Tapia discussed the biggest issues facing the department in the future. He indicated that the department is looking at strategies to cash fund the motor vehicle division, ensuring a smooth implementation of the state's new vehicle registration system, and improving the performance of the state lottery.

09:50 AM

Department of Treasury:

Senator Tapia discussed the funding sources for the Department of Treasury. The department is mostly funded from cash fund exempt sources; the General Fund provides 1.7 percent of the revenue for the department in FY 2004-05. He also explained the key responsibilities of the department, such as acting as the state's banking and investment officer, preparing financial and accounting reports, administering the Unclaimed Property Program, making loans under the Elderly Property Tax Deferral Program, providing short-term interest-free financing to school districts, and distributing local government shares of the Highway Users Tax Fund (HUTF).

Representative Judd asked about the impact of delaying the General Fund payments to the Fire and Police Pension Association (FPPA). Senator Tapia and Representative Buescher responded that the payments will only be extended for an additional couple of years and that the state will pay the interest for the two years that the payments were delayed.

Senator Tapia stated that the department's decision items involved only $18,187 in General Fund money. Excluding changes in the HUTF and FPPA, which are dictated by statute, the department is requesting an increase of $378,987 in total funding.

Representative Judd asked about the need to update the department's computer system to ensure the effective administration of the state's Unclaimed Property Program. Representative Plant indicated that the issue was one of the decision items for the department in FY 2005-06.