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- 83rd Session (2025)
Senate Bill No. 462–Committee on Finance
CHAPTER..........
AN ACT relating to state financial administration; revising
provisions relating to the preparation of the budget of the
Executive Department of the State Government; revising
provisions governing the Account to Stabilize the O peration
of the State Government; revising provisions relating to the
preparation of the statewide cost allocation plan; and
providing other matters properly relating thereto.
Legislative Counsel’s Digest:
The State Budget Act sets forth the process for t he preparation and submission
of the proposed biennial budget for the Executive Department of the State
Government. (NRS 353.150 -353.246) In part, the Act requires the Chief of the
Budget Division of the Office of Finance to provide to the Fiscal Analysis Division
of the Legislative Counsel Bureau each agency’s adjusted base budget by program
or budgetary account for the next 2 fiscal years. (NRS 353.211) The Act also
requires the Chief to prepare a final version of the proposed budget, which is
required to include the adjusted base budget for each department, institution and
agency of the Executive Department. (NRS 353.230) Existing law defines the term
“adjusted base budget” to mean the amount appropriated or authorized to support
ongoing expenditures budg eted to the department, institution or agency by the
Legislature for the second year of the current biennium, as adjusted for: (1) the
removal of any one -time appropriation or authorization that was appropriated or
authorized by the Legislature to the department, institution or agency for the second
year of the biennium; (2) statewide fringe benefits, assessments, rent, insurance
premiums and cost allocations; (3) contractual obligations that are approved or
expired during the current biennium; (4) ongoing expenditures approved by the
Interim Finance Committee during the current biennium; (5) any annualization of
costs that occurred for part of the second year of the current biennium; (6) actual
caseloads incurred during the first year of the biennium; (7) r ate changes that are
projected to affect the budget of the department, institution or agency during the
next biennium; and (8) any other adjustment that is necessary based on the limit
upon total proposed expenditures or as otherwise determined by the Chie f. (NRS
353.211, 353.230) Sections 1 and 2 of this bill revise the adjustments that are
authorized to be made to an agency’s base budget for purposes of these provisions.
Under existing law, the Account to Stabilize the Operation of the State
Government, also known as the Rainy Day Account, is an account created in the
State General Fund into which surplus state revenues are required to be transferred
annually to be used in case of fiscal emergencies. Such a transfer is required to
occur after the close of the previous fiscal year and before the i ssuance of the State
Controller’s annual report. The balance in the Account is prohibited from
exceeding 26 percent of the total of all appropriations from the State General Fund
for the operation of all departments, institutions and agencies of the State
Government and for the funding of schools and authorized expenditures from the
State General Fund for the regulation of gaming for the fiscal year in which the
revenue will be transferred to the Account. (NRS 353.288) Section 3 of this bill
changes the measurement for this limitation on the balance of the Account from the
total of such appropriations and authorized expenditures for the fiscal year in which
the revenue will be transferred to the Account to the total of such appropriations
and authorized expenditures for the previous fiscal year.
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Under existing law, the Administrator of the Administrative Services Division
of the Department of Administration is required to pre pare annually a statewide
cost allocation plan that distributes the indirect costs of service agencies among the
agencies of the Executive Department of the State Government. (NRS 353.331)
Section 4 of this bill transfers this duty to the Chief of the Budget Division of the
Office of Finance.
EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 353.211 is hereby amended to read as follows:
353.211 1. On or before October 15 of each even -numbered
year, the Chief shall provide to the Fiscal Analysis Division of the
Legislative Counsel Bureau:
(a) Computerized budget files containing the actual data
regarding revenues and expenditures for the previous year;
(b) The work programs for the current year; and
(c) Each agency’s requested budget for the next 2 fiscal years [.]
, which must include, without limitation:
(1) The adjusted base budget of the agency;
(2) The costs for continuing programs of the agency at the
levels of service during the preceding biennium; and
(3) The costs, if any, for any new program provided by the
agency or any enhancement or reduction of an existing program
provided by the agency.
2. On or before December 31 of each even -numbered year, the
Chief shall provide to the Fiscal Analysis Division:
[(a) Each]
(a) Computerized budget files containing each agency’s
adjusted base budget by program or budgetary account for the next 2
fiscal years; and
(b) An estimated range of the costs for:
(1) Continuing the operation of State Government; and
(2) Providing elementary, secondary and higher public
education,
at the current level of service.
3. The information provided to the Fiscal Analysis Division
pursuant to subsections 1 and 2 is open for public inspection.
4. The Governor may authorize or direct an agency to hold
public hearings on a budget submitted pursuant to paragraph (c) of
subsection 1 at any time after the material is provided pursuant to
subsection 1.
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5. As used in this section, “adjusted base budget” mea ns the
[amount appropriated or authorized to support ongoing expenditures
budgeted to ] revenues received and expenditures made by the
agency [by the Legislature for] during the [second] first year of the
current biennium, as adjusted for:
(a) The removal of any [one-time] :
(1) One-time appropriation or authorization that was
appropriated or authorized by the Legislature to the agency for the
[second year of the] current biennium;
[(b) Statewide]
(2) Operating expenditures that are no longer required to
be made by the agency as a result of the expiration of a program;
(3) Contractual obligation that has expired or will expire
during the current biennium and is no longer needed by the
agency; and
(4) One-time statewide fringe benefits [, assessments, rent, ]
and compensation for state officers and employees for the current
biennium, including, without limitation, payment for overtime,
seasonal work, shift differential and standby pay;
(b) Any increase or decrease, as applicable, in:
(1) Authority for revenue, internal transfers and reserves
based on revenue projected for the next biennium;
(2) The costs of in-state and out-of-state travel based on the
market rate for such travel in the second year of the current
biennium and for any change in the location of a reoccurring
event that is included in the base budget for the current biennium;
(3) The costs of renting building space pursuant to NRS
331.102 or a rental or lease agreement, except costs associated
with moving, and including, without limitation, costs for:
(I) The renewal or renegotiation of a rental or lease
agreement; or
(II) The relocation of the office space of an agency if
the relocation is necessary as a result of the expiratio n of an
existing lease, unavailability of the current facility or other
operational requirements of the agency and the new facility is of a
comparable size and functionality as the current location of the
agency;
(4) Assessments, insurance premiums and cost allocations [;
(c) Contractual] based on projections for the next biennium;
(5) The costs:
(I) To continue services provided pursuant to
contractual obligations that [are] were approved [or expired] by the
Legislature during the current biennium [;
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(d)] at the same level as provided during the second year of the
current biennium; and
(II) For ongoing contractual obligations;
(6) Expenditures that occur in only one year of a biennium;
(7) Ongoing expenditures approved by the Interim Finan ce
Committee during the current biennium;
[(e)] and
(8) Actual caseloads incurred during the first year of the
current biennium;
(c) Any annualization of [costs] :
(1) Costs that occurred for part of the [second year of the ]
current biennium;
[(f) Actual caseloads incurred during the first year of the
biennium;
(g) Rate changes that are projected to affect the budget of the
agency during the next biennium;] and
(2) Revenue from grants and corresponding expenditures;
and
[(h)] (d) Any other adjustment that is necessary:
(1) Based on the limit upon total proposed expenditures
calculated pursuant to NRS 353.213; or
(2) As otherwise determined by the Chief.
Sec. 2. NRS 353.230 is hereby amended to read as follows:
353.230 1. The Chief shall review the estimates, altering,
revising, increasing or decreasing the items of the estimates as the
Chief may deem necessary in view of the needs of the various
departments, institutions and agencies in the Executive De partment
of the State Government and the total anticipated income of the
State Government and of the various departments, institutions and
agencies of the Executive Department during the next fiscal year. In
performing the duties required by this subsection, the Chief shall use
the projections and estimates prepared by the Economic Forum
pursuant to NRS 353.228.
2. The Chief shall meet with a Fiscal Analyst of the Legislative
Counsel Bureau or his or her designated representative and
personnel of the vari ous departments, institutions and agencies of
the Executive Department to discuss:
(a) The budgetary requests of each department, institution and
agency; and
(b) The budgetary recommendations of the Budget Division for
each department, institution and agency,
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for the next 2 fiscal years. The Chief shall allow the Fiscal
Analyst of the Legislative Counsel Bureau or his or her designated
representative full access to all materials connected with the review.
3. The Chief shall then prepare a final vers ion of the proposed
budget, in accordance with NRS 353.150 to 353.246, inclusive, and
shall deliver it to the Governor. The final version of the proposed
budget must include the adjusted base budget for each department,
institution and agency of the Execut ive Department, the costs for
continuing each program at the current level of service and the
costs, if any, for new programs, recommended enhancements of
existing programs or reductions for the departments, institutions and
agencies of the Executive Department for the next 2 fiscal years. All
projections of revenue and any other information concerning future
state revenue contained in the proposed budget must be based upon
the projections and estimates prepared by the Economic Forum
pursuant to NRS 353.228.
4. The Governor shall, not later than 14 calendar days before
the commencement of the regular legislative session, submit the
proposed budget to the Director of the Legislative Counsel Bureau
for transmittal to the Legislature. The Governor shall simultaneously
submit, as a separate document:
(a) An analysis of any new programs or enhancements of
existing programs being recommended; and
(b) Any increase in or new revenues which are being
recommended in the proposed budget.
The document must specify the total cost by department,
institution or agency of new programs or enhancements, but need
not itemize the specific costs. All projections of revenue and any
other information concerning future state revenue contained in the
document must be based upon the projections and estimates
prepared by the Economic Forum pursuant to NRS 353.228.
5. On or before the 19th calendar day of the regular legislative
session, the Governor shall submit to the Legislative Counsel
recommendations for each legislative meas ure which will be
necessary to carry out the final version of the proposed budget or to
carry out the Governor’s legislative agenda. These
recommendations must contain sufficient detailed information to
enable the Legislative Counsel to prepare the necessa ry legislative
measures.
6. During the consideration of the general appropriation bill
and any special appropriation bills and bills authorizing budgeted
expenditures by the departments, institutions and agencies operating
on money designated for specifi c purposes by the Constitution or
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otherwise, drafted at the request of the Legislature upon the
recommendations submitted by the Governor with the proposed
budget, the Governor or a representative of the Governor have the
right to appear before and be hear d by the appropriation committees
of the Legislature in connection with the appropriation bill or bills,
and to render any testimony, explanation or assistance required of
him or her.
7. As used in this section, “adjusted base budget” means the
[amount appropriated or authorized to support ongoing expenditures
budgeted to ] revenues received and expenditures made by the
department, institution or agency [by the Legislature for] during the
[second] first year of the current biennium, as adjusted for:
(a) The removal of any [one-time] :
(1) One-time appropriation or authorization that was
appropriated or authorized by the Legislature to the department,
institution or agency for the [second year of the] current biennium;
[(b) Statewide]
(2) Operating expenditures that are no longer required to
be made by the agency as a result of the expiration of a program;
(3) Contractual obligation that has expired or will expire
during the current biennium and is no longer needed by the
agency; and
(4) One-time statewide fringe benefits [, assessments, rent,]
and compensation for state officers and employees for the current
biennium, including, without limitation, payment for overtime,
seasonal work, shift differential and standby pay;
(b) Any increase or decrease, as applicable, in:
(1) Authority for revenue, internal transfers and reserves
based on revenue projected for the next biennium;
(2) The costs of in-state and out-of-state travel based on the
market rate for such travel in the second year of the current
biennium and for any change in the location of a reoccurring
event that is included in the base budget for the current biennium;
(3) The costs of renting building space pursuant to NRS
331.102 or a rental or lease agreement, except costs associated
with moving, and including, without limitation, costs for:
(I) The renewal or renegotiation of a rental or lease
agreement; or
(II) The relocation of the office space of an agency if
the relocation is necessary as a result of the expiratio n of an
existing lease, unavailability of the current facility or other
operational requirements of the agency and the new facility is of a
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comparable size and functionality as the current location of the
agency;
(4) Assessments, insurance premiums and cost allocations [;
(c) Contractual] based on projections for the next biennium;
(5) The costs:
(I) To continue services provided pursuant to
contractual obligations that [are] were approved [or expired] by the
Legislature during the current biennium [;
(d)] at the same level as provided during the second year of the
current biennium; and
(II) For ongoing contractual obligations;
(6) Expenditures that occur in only one year of a biennium;
(7) Ongoing expenditures approved by the Interim Finan ce
Committee during the current biennium;
[(e)] and
(8) Actual caseloads incurred during the first year of the
current biennium;
(c) Any annualization of [costs] :
(1) Costs that occurred for part of the [second year of the ]
current biennium;
[(f) Actual caseloads incurred during the first year of the
biennium;
(g) Rate changes that are projected to affect the budget of the
department, institution or agency during the next biennium;] and
(2) Revenue from grants and corresponding expenditures;
and
[(h)] (d) Any other adjustment that is necessary:
(1) Based on the limit upon total proposed expenditures
calculated pursuant to NRS 353.213; or
(2) As otherwise determined by the Chief.
Sec. 3. NRS 353.288 is hereby amended to read as follows:
353.288 1. The Account to Stabilize the Operation of the
State Government is hereby created in the State General Fund.
Except as otherwise provided in subsections 3 and 4, each year after
the close of the previous fisc al year and before the issuance of the
State Controller’s annual report, the State Controller shall transfer
from the State General Fund to the Account to Stabilize the
Operation of the State Government:
(a) Forty percent of the unrestricted balance of the State General
Fund, as of the close of the previous fiscal year, which remains after
subtracting an amount equal to 7 percent of all appropriations made
from the State General Fund during that previous fiscal year for the
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operation of all departments, in stitutions and agencies of State
Government and for the funding of schools; and
(b) Commencing with the fiscal year that begins on July 1,
2017, 1 percent of the total anticipated revenue for the fiscal year in
which the transfer will be made, as projecte d by the Economic
Forum for that fiscal year pursuant to paragraph (e) of subsection 1
of NRS 353.228 and as adjusted by any legislation enacted by the
Legislature that affects state revenue for that fiscal year.
2. Money transferred pursuant to subsecti on 1 to the Account
to Stabilize the Operation of the State Government is a continuing
appropriation solely for the purpose of authorizing the expenditure
of the transferred money for the purposes set forth in this section.
3. The balance in the Account to Stabilize the Operation of the
State Government must not exceed 26 percent of the total of all
appropriations from the State General Fund for the operation of all
departments, institutions and agencies of the State Government and
for the funding of scho ols and authorized expenditures from the
State General Fund for the regulation of gaming for the previous
fiscal year . [in which that revenue will be transferred to the
Account to Stabilize the Operation of the State Government.]
4. Except as otherwise provided in this subsection and NRS
353.2735, beginning with the fiscal year that begins on July 1, 2003,
the State Controller shall, at the end of each quarter of a fiscal year,
transfer from the State General Fund to the Disaster Relief Account
created pursuant to NRS 353.2735 an amount equal to not more than
10 percent of the aggregate balance in the Account to Stabilize the
Operation of the State Government during the previous quarter. The
State Controller shall not transfer more than $500,000 for any
quarter pursuant to this subsection.
5. The Director of the Office of Finance in the Office of the
Governor may submit a request to the State Board of Examiners to
transfer money from the Account to Stabilize the Operation of the
State Government to the State General Fund:
(a) If the total actual revenue of the State falls short by 5 percent
or more of the total anticipated revenue for the biennium in which
the transfer will be made, as determined by the Legislature, or the
Interim Finance Committee if the Legislature is not in session; or
(b) If the Legislature, or the Interim Finance Committee if the
Legislature is not in session, and the Governor declare that a fiscal
emergency exists.
6. The State Board of Examiners shall consider a request made
pursuant to subsection 5 and shall, if it finds that a transfer should
be made, recommend the amount of the transfer to the Interim
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Finance Committee for its independent evaluation and action. The
Interim Finance Committee is not bound to follow the
recommendation of the State Board of Examiners.
7. If the Interim Finance Committee finds that a transfer
recommended by the State Board of Examiners should and may
lawfully be made, the Committee shall by resolution establish the
amount and direct the State C ontroller to transfer that amount to
the State General Fund. The State Controller shall thereupon make
the transfer.
8. In addition to the manner of allocation authorized pursuant
to subsections 5, 6 and 7, the money in the Account to Stabilize the
Operation of the State Government may be allocated directly by the
Legislature to be used for any other purpose.
Sec. 4. NRS 353.331 is hereby amended to read as follows:
353.331 The [Administrator of the Administrative Servi ces
Division of the Department of Administration shall annually prepare
and submit to the ] Chief of the Budget Division of the Office of
Finance shall prepare annually a statewide cost allocation plan
distributing service agency indirect costs among the va rious
agencies in accordance with the principles and procedures
established by federal regulations and guidelines. [The Chief of the
Budget Division shall review, revise as necessary and approve the
plan.]
Sec. 5. This act becomes effective on July 1, 2025.
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