S.B. 42
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SENATE BILL NO. 42–COMMITTEE ON GOVERNMENT AFFAIRS
(ON BEHALF OF THE OFFICE OF FINANCE
IN THE OFFICE OF THE GOVERNOR)
PREFILED NOVEMBER 18, 2024
____________
Referred to Committee on Government Affairs
SUMMARY—Revises provisions of the State Budget Act.
(BDR 31-278)
FISCAL NOTE: Effect on Local Government: No.
Effect on the State: No.
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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.
AN ACT relating to state financial administration; removing
requirements to include certain information relating to
performance goals and objectives in the proposed budget
for the Executive Department of State Government;
removing the requirement for the Chief of the Budget
Division of the Office of Finance in the Office of the
Governor to establish the schedule for the analysis of
incentives for economic development performed by
certain agencies; and providing other matters properly
relating thereto.
Legislative Counsel’s Digest:
Existing law prescribes the contents of the proposed budget of the Executive 1
Department of State Government. (NRS 353.205) Existing law requires each 2
proposed budget to include: (1) an identification of each long-term performance 3
goal of the Executive Department for core governmental functions and other 4
governmental services; (2) an identification of each intermediate objective for the 5
next 2 fiscal years toward achieving those goals; and (3) an explanation of the 6
means by which the proposed budget will provide adequate funding for those 7
functions and services so that those intermediate objectives will be met and 8
progress will be made towards achieving those goals. (NRS 353.205) The proposed 9
budget must also include a mission statement articulating the intermediate 10
objectives and long-term performance goals each department, institution or other 11
agency of the Executive Department is tasked with achieving and the measurement 12
indicators that will be used to determine whether the department, institution or 13
other agency is successful in achieving those objectives and goals. (NRS 353.205) 14
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Section 1 of this bill eliminates the requirement for each proposed budget to 15
include: (1) an explanation of the means by which the proposed budget will provide 16
adequate funding for core government functions and other governmental services 17
such that the intermediate objectives will be met and progress will be made toward 18
achieving the long-term performance goals for such functions and services; and (2) 19
the mission statement articulating the intermediate objectives and long-term 20
performance goals of each department, institution or other agency and the 21
measurement indicators for measuring the success of each department, institution or 22
other agency in achieving those objectives and goals. 23
Section 1 eliminates the requirement for the Budget Division of the Office of 24
Finance in the Office of the Governor to post on its Internet website, as soon as 25
practicable after the Governor transmits the proposed budget to the Legislature: (1) 26
the information required to be included in the proposed budget regarding the 27
identification of the long-term performance goals of the Executive Department for 28
core governmental functions and other governmental services and the intermediate 29
objectives toward achieving those goals for the next 2 fiscal years; and (2) certain 30
additional information which section 1 eliminates from inclusion in the proposed 31
budget. 32
Existing law requires the Chief of the Division to require the Office of 33
Economic Development and the Office of Energy to each periodically conduct an 34
analysis of the costs and benefits of each incentive for economic development 35
previously approved by the respective office and in effect during the immediately 36
preceding 2 fiscal years and to report the result of the analysis to the Chief. (NRS 37
353.207) Existing law requires the result of each such analysis to be included in the 38
proposed budget for the Executive Department. (NRS 353.205) Section 2 of this 39
bill maintains the requirement to conduct and report this analysis but eliminates the 40
requirement for the Chief to establish a schedule for performing and reporting 41
the results of the analyses to ensure that the results of the analyses are included in 42
the proposed budget. 43
On or before September 1 of each even-numbered year, existing law requires 44
the departments, institutions and other agencies of the Executive Department to 45
submit to the Chief estimates of the expenditure requirements of the department, 46
institution or agency for the next 2 fiscal years, together with all anticipated income 47
from fees and other sources. (NRS 353.210) Section 3 of this bill makes a 48
conforming change by removing the requirement for these estimates to include a 49
mission statement and measurement indicators in adequate detail to comply with 50
certain provisions regarding the contents of the proposed budget removed by 51
section 1. 52
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 353.205 is hereby amended to read as follows: 1
353.205 1. The proposed budget for the Executive 2
Department of the State Government for each fiscal year must be set 3
up in four parts: 4
(a) Part 1 must consist of a budgetary message by the Governor 5
which includes: 6
(1) A general summary of the long-term performance goals 7
of the Executive Department of the State Government for: 8
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(I) Core governmental functions, including the education 1
of pupils in kindergarten through grade 12, higher education, human 2
services and public safety and health; and 3
(II) Other governmental services; 4
(2) [An explanation of the means by which the proposed 5
budget will provide adequate funding for those governmental 6
functions and services such that ratable progress will be made 7
toward achieving those long-term performance goals; 8
(3)] An outline of any other important features of the 9
financial plan of the Executive Department of the State Government 10
for the next 2 fiscal years; and 11
[(4)] (3) A general summary of the proposed budget setting 12
forth the aggregate figures of the proposed budget in such a manner 13
as to show the balanced relations between the total proposed 14
expenditures and the total anticipated revenues, together with the 15
other means of financing the proposed budget for the next 2 fiscal 16
years, contrasted with the corresponding figures for the last 17
completed fiscal year and fiscal year in progress. The general 18
summary of the proposed budget must be supported by explanatory 19
schedules or statements, classifying the expenditures contained 20
therein by organizational units, objects and funds, and the income 21
by organizational units, sources and funds. The organizational units 22
may be subclassified by functions and by agencies, bureaus or 23
commissions, or in any other manner determined by the Chief. 24
(b) Part 2 must embrace the detailed budgetary estimates both of 25
expenditures and revenues as provided in NRS 353.150 to 353.246, 26
inclusive. The information must be presented in a manner which sets 27
forth separately the cost of continuing each program at the same 28
level of service as the current year and the cost, by budgetary issue, 29
of any recommendations to enhance or reduce that level of service. 30
Revenues must be summarized by type, and expenditures must be 31
summarized by program or budgetary account and by category of 32
expense. Part 2 must include: 33
(1) The identification of each long-term performance goal of 34
the Executive Department of the State Government for: 35
(I) Core governmental functions, including the education 36
of pupils in kindergarten through grade 12, higher education, human 37
services, and public safety and health; and 38
(II) Other governmental services, 39
and of each intermediate objective for the next 2 fiscal years 40
toward achieving those goals. 41
(2) [An explanation of the means by which the proposed 42
budget will provide adequate funding for those governmental 43
functions and services such that those intermediate objectives will 44
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be met and progress will be made toward achieving those long-term 1
performance goals. 2
(3) A mission statement and measurement indicators for each 3
department, institution and other agency of the Executive 4
Department of the State Government, which articulate the 5
intermediate objectives and long-term performance goals each such 6
department, institution and other agency is tasked with achieving 7
and the particular measurement indicators tracked for each such 8
department, institution and other agency to determine whether the 9
department, institution or other agency is successful in achieving its 10
intermediate objectives and long-term performance goals, provided 11
in sufficient detail to assist the Legislature in performing an analysis 12
of the relative costs and benefits of program budgets and in 13
determining priorities for expenditures. If available, information 14
regarding such measurement indicators must be provided for each of 15
the previous 4 fiscal years. If a new measurement indicator is being 16
added, a rationale for that addition must be provided. If a 17
measurement indicator is being modified, information must be 18
provided regarding both the modified indicator and the indicator as 19
it existed before modification. If a measurement indicator is being 20
deleted, a rationale for that deletion and information regarding the 21
deleted indicator must be provided. 22
(4)] Statements of the bonded indebtedness of the State 23
Government, showing the requirements for redemption of debt, the 24
debt authorized and unissued, and the condition of the sinking 25
funds. 26
[(5)] (3) Any statements relative to the financial plan which 27
the Governor may deem desirable, or which may be required by the 28
Legislature. 29
(c) Part 3 must set forth, for the Office of Economic 30
Development and the Office of Energy, the results of the analyses 31
conducted by those offices and reported to the Chief pursuant to 32
NRS 353.207 for the immediately preceding 2 fiscal years. 33
(d) Part 4 must include a recommendation to the Legislature for 34
the drafting of a general appropriation bill authorizing, by 35
departments, institutions and agencies, and by funds, all 36
expenditures of the Executive Department of the State Government 37
for the next 2 fiscal years, and may include recommendations to the 38
Legislature for the drafting of such other bills as may be required to 39
provide the income necessary to finance the proposed budget and to 40
give legal sanction to the financial plan if adopted by the 41
Legislature. 42
2. Except as otherwise provided in NRS 353.211, as soon as 43
each part of the proposed budget is prepared, a copy of the part must 44
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be transmitted to the Fiscal Analysis Division of the Legislative 1
Counsel Bureau for confidential examination and retention. 2
3. Except for the information provided to the Fiscal Analysis 3
Division of the Legislative Counsel Bureau pursuant to NRS 4
353.211, parts 1 and 2 of the proposed budget are confidential until 5
the Governor transmits the proposed budget to the Legislature 6
pursuant to NRS 353.230, regardless of whether those parts are in 7
the possession of the Executive or Legislative Department of the 8
State Government. Part 4 of the proposed budget is confidential 9
until the bills which result from the proposed budget are introduced 10
in the Legislature. [As soon as practicable after the Governor 11
transmits the proposed budget to the Legislature pursuant to NRS 12
353.230, the information required to be included in the proposed 13
budget pursuant to subparagraphs (1), (2) and (3) of paragraph (b) of 14
subsection 1 must be posted on the Internet websites maintained by 15
the Budget Division of the Office of Finance.] 16
Sec. 2. NRS 353.207 is hereby amended to read as follows: 17
353.207 1. The Chief shall: 18
(a) Require the Office of Economic Development and the Office 19
of Energy each periodically to conduct an analysis of the relative 20
costs and benefits of each incentive for economic development 21
previously approved by the respective office and in effect during the 22
immediately preceding 2 fiscal years, including, without limitation, 23
any abatement of taxes approved by the Office of Economic 24
Development pursuant to NRS 274.310, 274.320, 274.330, 360.750, 25
360.753, 360.754, 360.890, 360.950, 361.0687, 374.357 or 26
701A.210, to assist the Governor and the Legislature in determining 27
whether the economic benefits of the incentive have accomplished 28
the purposes of the statute pursuant to which the incentive was 29
approved and warrant additional incentives of that kind; and 30
(b) Require each office to report in writing to the Chief the 31
results of the analysis conducted by the office pursuant to paragraph 32
(a) . [; and 33
(c) Establish a schedule for performing and reporting the results 34
of the analysis required by paragraph (a) which ensures that the 35
results of the analysis reported by each office are included in the 36
proposed budget prepared pursuant to NRS 353.205, as required by 37
that section.] 38
2. Each report prepared for the Chief pursuant to this section is 39
a public record and is open to inspection pursuant to the provisions 40
of NRS 239.010. 41
Sec. 3. NRS 353.210 is hereby amended to read as follows: 42
353.210 1. Except as otherwise provided in subsections 6 and 43
7, on or before September 1 of each even-numbered year, all 44
departments, institutions and other agencies of the Executive 45
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Department of the State Government, and all agencies of the 1
Executive Department of the State Government receiving state 2
money, fees or other money under the authority of the State, 3
including those operating on money designated for specific purposes 4
by the Nevada Constitution or otherwise, shall prepare, on blanks 5
furnished them by the Chief, and submit to the Chief: 6
(a) The number of full-time equivalent positions within the 7
department, institution or agency. 8
(b) The number of full-time equivalent positions within the 9
department, institution or agency that have been vacant for at least 10
12 months, the number of months each such position has been 11
vacant and the reasons for each such vacancy. 12
(c) Any existing contracts for services the department, 13
institution or agency has with temporary employment services or 14
other persons, the proposed expenditures for such contracts in the 15
next 2 fiscal years and the reasons for the use of such services. If 16
such contracts include any privatization contracts, a copy of each of 17
those privatization contracts together with: 18
(1) A statement specifying the duration of the privatization 19
contracts; 20
(2) The number of privatization contracts proposed for the 21
next 2 fiscal years and the estimated expenditures for the 22
privatization contracts; and 23
(3) An analysis of each of the privatization contracts, which 24
includes, without limitation: 25
(I) For the preceding, current and next fiscal years, the 26
annual amount required to perform each of the privatization 27
contracts; and 28
(II) For the preceding and current fiscal years, the number 29
of persons the department, institution or agency employed pursuant 30
to the privatization contracts, reflected as the equivalent full-time 31
position if the persons were regularly employed by the department, 32
institution or agency, including the equivalent hourly wage and the 33
cost of benefits for each job classification. 34
(d) If the department, institution or agency has any existing 35
performance contracts that it has entered into pursuant to chapter 36
333A of NRS, any request to reinvest any savings realized under 37
such a contract for the next 2 fiscal years. 38
(e) Estimates of expenditure requirements of the department, 39
institution or agency, together with all anticipated income from fees 40
and all other sources, for the next 2 fiscal years compared with the 41
corresponding figures of the last completed fiscal year and the 42
estimated figures for the current fiscal year. 43
2. The Chief shall direct that one copy of the forms submitted 44
pursuant to subsection 1, accompanied by every supporting schedule 45
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and any other related material, be delivered directly to the Fiscal 1
Analysis Division of the Legislative Counsel Bureau on or before 2
September 1 of each even-numbered year. 3
3. The Budget Division of the Office of Finance shall give 4
advance notice to the Fiscal Analysis Division of the Legislative 5
Counsel Bureau of any conference between the Budget Division of 6
the Office of Finance and personnel of other state agencies 7
regarding budget estimates. A Fiscal Analyst of the Legislative 8
Counsel Bureau or his or her designated representative may attend 9
any such conference. 10
4. The estimates of expenditure requirements submitted 11
pursuant to subsection 1 must be classified to set forth the data of 12
funds, organizational units, and the character and objects of 13
expenditures by program or budgetary account and by category 14
of expense . [, and must include a mission statement and 15
measurement indicators in adequate detail to comply with the 16
requirements of subparagraph (3) of paragraph (b) of subsection 1 of 17
NRS 353.205.] The organizational units may be subclassified by 18
functions and by agencies, bureaus or commissions, or in any other 19
manner at the discretion of the Chief. 20
5. If any department, institution or other agency of the 21
Executive Department of the State Government, whether its money 22
is derived from state money or from other money collected under 23
the authority of the State, fails or neglects to submit estimates of its 24
expenditure requirements as provided in this section, the Chief may, 25
from any data at hand in the Chief’s office or which the Chief may 26
examine or obtain elsewhere, make and enter a proposed budget for 27
the department, institution or agency in accordance with the data. 28
6. Agencies, bureaus, commissions and officers of the 29
Legislative Department, the Public Employees’ Retirement System 30
and the Judicial Department of the State Government shall submit to 31
the Chief for his or her information in preparing the proposed 32
executive budget the budgets which they propose to submit to the 33
Legislature. 34
7. On or before September 1 of each even-numbered year, the 35
Tahoe Regional Planning Agency shall submit the budget which the 36
Agency proposes to submit to the Legislature to: 37
(a) The Chief for his or her information in preparing the 38
proposed executive budget. 39
(b) The Fiscal Analysis Division of the Legislative Counsel 40
Bureau. 41
8. The information provided by a department, institution or 42
agency pursuant to paragraph (c) of subsection 1 is a public record 43
and must be open to public inspection. 44
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9. As used in this section, “privatization contract” means a 1
contract executed by or on behalf of a department, institution or 2
agency which authorizes a private entity to provide public services 3
which are: 4
(a) Substantially similar to the services performed by the public 5
employees of the department, institution or agency; and 6
(b) In lieu of the services otherwise authorized or required to be 7
provided by the department, institution or agency. 8
Sec. 4. This act becomes effective on July 1, 2025. 9
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