THE GOVERNMENT PERFORMANCE PROJECTReport Card: Nevada FINANCIAL MANAGEMENT: B Nevada has traditionally been very conservative about estimating its revenues; now it's clear that this was a sensible thing to do. The gaming industry may have looked like a stable source of funds, but it's hurting at the moment, faced with competition from other states and the absence of big rollers from Asia. As a result, state revenues fell about 2.2 percent short of estimates in the current biennium. Fortunately, spending has been below estimates as well, due mainly to declining Medicaid and welfare caseloads. State agencies don't seem to have adjusted too well to the unfamiliar shortfall, but the state budget office has kept things in balance, cutting some $1 billion from $4.2 billion in proposed agency spending. At the same time, Nevada's budget stabilization fund is well stocked, with a little more than 8 percent of general expenditures. Though the state tries to project the fiscal impact of new programs, some agencies downplay the long-term costs in order to get a project going. Legislators don't always pay attention to the projections in any case. Cash management and debt policies are reasonably good in Nevada, and the state monitors its contractors effectively. CAPITAL MANAGEMENT: B+ It's a little surprising that Nevada, the fastest-growing state in the country, doesn't have a long-term capital plan. It does, however, have a clear capital budgeting process, which extends for a two-year time frame. Once a project is approved, it is carefully monitored. The State Public Works Board has performance indicators for new building, including a comparison of planned costs versus actual costs, and sends reports to the legislature quarterly. The Public Works Board also maintains a database on the condition of state facilities, and reports to the legislature on that as well. The controller's office keeps an inventory of assets, updated on a regular basis. The executive branch develops a plan for preventive maintenance of existing facilities, which is funded in some instances through agency rentals. Nevada has done an excellent job at keeping up with maintenance. HUMAN RESOURCES: D The classification system in Nevada has about 1,300 classes—not an overly large number—but the list is subjective, and difficult to explain to employees. The state's plans to reform the classification system were derailed by legislative funding cuts less than two months ago. Nevada uses a traditional civil service approach that controls hiring and favors seniority. The state administers tests and gives agencies a list of the top five scores (ties result in more names). Since tests are designed for entire classes, the roster of top applicants can be short on the skills required for specific jobs. The 30-year-old compensation system has defied attempts at reform. With few tools to reward good performance, the legislature gives across-the-board increases. Employee groups that lobby well can be rewarded. Last year, law enforcement classes got 10 percent raises. There is no workforce planning here. However, when the state finishes updating its 20-year-old personnel computer system later this year, agencies will be able to design more useful reports on the state workforce. MANAGING FOR RESULTS: C Despite legislative prodding, there has been a fair amount of resistance in Nevada to the use of outcome measures. Agencies complain that they shouldn't be held accountable for delivering results over which they don't have complete control. The state does use input and output indicators fairly well, however, and most of the approximately 600 budget accounts utilize performance measures, which are included in the governor's executive budget. This gives them a fair amount of impact. "The legislative money committees do look at the indicators," says the state's chief planner. Unfortunately, little effort is made to communicate them to citizens. Nevada has an overall strategic plan, but it has remained essentially the same since its publication in 1994. That may change as the new Guinn administration settles in this year. INFORMATION TECHNOLOGY: C Nevada has new or revamped systems online or in the works for nearly every category of information. The biggest item is a newly introduced integrated financial system that links accounting, budgeting, personnel, payroll and purchasing. The state is also working on major systems for its Department of Motor Vehicles and the child/family program. It's upgrading Medicaid technology and is developing a revenue reporting system for the department of taxation. Finally, it's in the process of enhancing its statewide network. "We were so far behind, we recognized the need to aggressively move in the technology area," says IT director Marlene Lockard. "In some areas, they've been working with a number two pencil and a legal pad." Nevada has just developed a five-year strategic IT plan, and Lockard's position, already given cabinet-level status, is getting more legislative support. Though many statewide information standards are in place, a handful of large agencies don't fall under central control. The Department of Transportation has its own data center and is exempt from any central planning. Why? That's the way it has always been. Some other areas are in need of improvement as well. The procurement process is slow and paper-intensive, and the state is still deficient in training funds, though the IT office is aggressively going after more money for that effort. AVERAGE GRADE: C+
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