FEDERAL

GOVERNMENT SHUTDOWN IMPACT ON NEVADA STATE GOVERNMENT

October 08, 2013

Overview DHHS Welfare Supplemental Nutrition Assistance Program (SNAP) DHHS Public and Behavioral Health Women, Infants, & Children (WIC) DHHS Public and Behavioral Health Rape Prevention Education DHHS Directors Office Title XX Grant Nevada National Guard DETR Vocational Rehabilitation DETR Vocational Rehabilitation - Older Individuals who are Blind DETR Independent Living Grant (Transferred to Aging Services) DETR Bureau of Disability Adjudication (Social Security Disability) DETR Research & Analysis DETR Employment Security Unemployment Insurance DETR Employment Security Veterans Employment Training Services (VETS) Program Attorney General Violence Against Women Grant NSHE Desert Research Institute

3 5 6 7 8 9 11 12 14 15 17 19 21 23 24

Federal Shutdown Impacts on Nevada State Government

Overview We have compiled information from all State agencies to determine the impacts of a suspension and possible reduction in federal funding. Initially and prior to the shutdown, we asked agencies to evaluate their cash flow and ability to sustain operations for a period of three weeks. Virtually all state agencies reported that they had the ability to address this length of a shutdown with limited consequences and with very limited impacts on service levels. Following the shutdown, we asked agencies to focus more directly on whether the Federal government would reimburse the state for any programs we continue. Further, we focused very directly on whether programs had the needed cash flow to sustain operations. In this request, we asked agencies to evaluate their ability to continue operations through November 30th (essentially a two month shutdown). This package details the programs identified as significant risk because there is insufficient cash flow to sustain operations and/or the Federal government has provided no assurance that it will reimburse states for expenditures we pay up front. Please note that this analysis focuses only on the impacts of the federal shutdown. If the Federal government does not raise the debt ceiling and goes into default status, much more catastrophic problems will occur. It is very possible that programs currently unaffected such as Medicaid, Social Security, Medicare and unemployment benefits would be impacted. Options to Address Funding Concerns for Programs The Budget Division has already provided guidance to department directors to be vigilant about controlling any unnecessary costs. This included directions to hold back on filling any federally funded positions. Additional options for consideration are as follows: 1. Institute a statewide hiring freeze this would create additional vacancies and allow for better possibilities of movement of individuals from federally funded positions to state funded positions. Additional value of this is to reduce overall costs if we fear the larger impacts of federal problems will spill over to our overall economy.

2. Declare a fiscal emergency and place employees on Leave Without Pay. This would be targeted to only the programs identified with cash flow concerns a Declaration of Financial Emergency would be required to implement this step. 3. Reduce or shutdown programs identified. We have been in contact with many other states. They are all preparing to shut down programs and to take similar measures we are recommending. We did not hear of any states that indicate plans to keep any major programs fully operational. Similar to the sequestration discussion, it appears most states will be shutting down or seriously reducing programs in response to continued federal funding uncertainty. Programs that need to be significantly reduced or closed are as follows: DHHS - Supplemental Nutrition Assistance Program (SNAP) DHHS - Women, Infants and Children (WIC) DHHS - Rape Prevention Education DHHS - Social Services Block Grant Military - Nevada National Guard DETR - Vocational Rehabilitation DETR - Older Individuals who are Blind DHHS - Independent Living Grant DETR Bureau of Disability Adjudication DETR Research and Analysis DETR Employment Security Division DETR Veterans Employment Training Services Attorney Generals Office - Violence Against Women by October 31st by October 31st by October 31st by October 31st immediately (reduce to only essential personnel) by October 18th by October 18th by October 18th immediately (reduce to only Fed covered functions) by October 31st by October 31st (many administrative functions) by mid- November immediately (no other funding stream available)

Department of Health and Human Services - Welfare

Supplemental Nutrition Assistance Program (SNAP) BA 3228 & 3233 Description of Program The Supplemental Nutrition Assistance Program (SNAP) (formerly Food Stamps) is the largest nutrition assistance
program administered by the United States Department of Agriculture (USDA). The program provides monthly benefits to eligible low-income families which can be used to purchase food. Average number of monthly participants is approximately 362,000.

Financial Impact of Federal Shutdown FY 2014 Total Budgeted Federal Funding - $22,491,151 Admin costs only benefits are paid directly by the federal agency through direct deposits to JP Morgan. Will the Federal Government Cover State fronted costs Unknown no commitment for benefit funding after October 31, 2013. FFY 13 carryover funds available to cover Admin costs for six months. SNAP benefits are estimated at $45 million per month.

Impact on Services and Impact on Individuals (if known) if Program is Reduced or Suspended
DWSS October projections, which will be released later this month, estimate that 368,500 recipients (including ACA estimates) will not receive their November SNAP benefits. These individuals would need to seek food assistance elsewhere like food banks, food pantries, and other nonprofit organizations. These facilities may not have sufficient supplies to serve the number of recipients that will be seeking their assistance.

Potential Impact on Employees How many State employees are fully Federally funded NA Admin costs available through the end of October. How many State employees are partially Federally funded - NA Admin costs available through the end of October. Options Available other than Program Reduction or Suspension As a discretionary grant, there is no certainty the Federal government will reimburse the state. The state can elect to operate this program at full costs, at reduced levels or to suspend operation of the program. If the state elects to continue operating this program at full or reduced levels for SNAP benefits, a Special Session of the Legislature would likely be needed to appropriate additional General Funds.

Department of Health and Human Services - Public & Behavioral Health

Women, Infants and Children (WIC) BA 3214 Description of Program The Special Supplemental Food Program for Women, Infants, and Children, commonly known as WIC, provides nutritious foods to supplement the diets of pregnant, postpartum and breastfeeding women, infants, and children under age five who have limited income and been determined to be at nutritional risk. The average monthly participation is 73,748. Financial Impact of Federal Shutdown FY 2014 Total Budgeted Federal Funding - $52,373,648 Will the Federal Government Cover State fronted costs No discretionary program and no certainty of reimbursement. Carryover FFY 13 Funds are available to fund the program through October. The state costs are estimated at $4,019,278 per month to maintain program at current levels.

Impact on Services and Impact on Individuals (if known) if Program is Reduced or Suspended Approximately 73,000 people would not receive benefits. WIC clinics would no longer be funded; this would affect approximately 300 individuals who are employed at the WIC clinics. Participants would not have a resource to get breastfeeding support or nutrition education for themselves and their children. Potential Impact on Employees How many State employees are fully Federally funded 18 FTE (3 are currently vacant) How many State employees are partially Federally funded - none Options Available other than Program Reduction or Suspension This budget account does not have a General Fund appropriation; therefore, contingency funds are not an option.

Department of Health and Human Services - Public & Behavioral Health

Rape Prevention Education BA 3222 Description of Program The Rape Prevention Program provides rape prevention education and funds the Crisis Call Center, the Rape Crisis Center and the Nevada Network Against Domestic Violence (NNADV) through sub-grants. Financial Impact of Federal Shutdown FY 2014 Total Budgeted Federal Funding - $243,043 Will the Federal Government Cover State fronted costs Unknown communication has been received from CDC that they cannot issue the first allotment FY 14 Notice of Award until there is an approved 2014 Budget or CR. The current funding ends October 31st. Impact on Services and Impact on Individuals (if known) if Program is Reduced or Suspended The largest impact for loss of funding will be to the sub-grantees that provide rape prevention education and services. Current sub-grantees include the Rape Crisis Center, the Crisis Call Center and the Nevada Network Against Domestic Violence (NNADV).These sub-grantees rely on this funding for operations and currently employ 16 staff. Potential Impact on Employees How many State employees are fully Federally funded 0 How many State employees are partially Federally funded - 1 Options Available other than Program Reduction or Suspension The State position is currently funded 75% with Rape Prevention funding and 25% with Maternal Child Health (MCH) Block Grant. This would be an allowable expense for the MCH Block Grant and funding is available to cover the position. As a discretionary grant, there is no certainty the federal government will reimburse the state. The state can elect to operate this program at full costs, at reduced levels or to suspend operation of the program. If the state elects to continue operating this program at full or reduced levels, a contingency request would be needed.

Department of Health and Human Services/ Directors Office BA3195

Social Services Block Grant Title XX Grant

Description of Program This grant provides assistance to states with a wide range of social policy goals, including preventing child abuse, increasing the availability of child care, and providing community-based care for the elderly and disabled. The majority of these funds are sub-granted to several divisions within the department (92%) and a small portion goes to non-state entities. This grant provides funding that would be impacted if the funding is reduced or eliminated. This grant does not provide direct services to the residents of Nevada. Financial Impact of Federal Shutdown FY 2014 Total Budgeted Federal Funding - $14,316,605 Will the Federal Government Cover State fronted costs Unknown - draws from prior awards may be used during an appropriations lapse using the Payment Management System Impact on Services and Impact on Individuals (if known) if Program is Reduced or Suspended The Grants Management Unit could review requests for funds and hold off on larger reimbursements to divisions with a large amount of other funds and focus on reimbursing smaller, single-funded grantees. Potential Impact on Employees How many State employees are fully Federally funded 0 How many State employees are partially Federally funded 11 staff in two budget accounts (BA3195 & BA3150) Options Available other than Program Reduction or Suspension This budget account does have General Funds so using IFC Contingency Funds is an option. Existing funds are available through the end of October then approximately $1,193,000 per month is needed if funding to other divisions is kept whole.

Nevada National Guard

Description of Program The mission of the Office of the Military is to enlist, organize, arm, equip, and train the state's militia and National Guard units to defend the Constitution and protect the lives and property of the public in times of emergency, disorder, or disaster. Financial Impact of Federal Shutdown FY 2014 Total Budgeted Federal Funding - $12,823,672 Will the Federal Government Cover State fronted costs Unknown. The federal guidance indicates the Master Cooperative Agreement is now subject to available federal funding (a shift from the past). Essential federal employees (fire protection, security, etc.) are excepted from the federal furlough. The federal guidance received on September 27 explicitly states there is no guarantee for federal funding for state employees performing similar essential functions to the excepted federal employees. There is even less certainty for state employees performing non-essential functions. Over the weekend, most federal technicians supporting the guard were called back but the guidance again states this does not apply to state employees. All major federal expenditures have been suspended where possible but get increasingly difficult the longer the delay occurs. The related budget accounts have GF and override authorization so cash flow is being fronted by GF. The agency is incurring $233,021 in unfunded federal liability each week for state personnel, utilities, and fixed expenses. Additional expenditures may be accruing as projects require.

Impact on Services and Impact on Individuals (if known) if Program is Reduced or Suspended A reduction or suspension would presumably be limited to non-essential functions (maybe 25% of the current staffing) so the impact is strictly limited to the effected state employees. If an emergency should arise, the guard would call in personnel and deploy as needed under an excepted authorization so no emergency services will be compromised. It would be significantly more problematic if essential function employees (maybe 75% of the current staffing) and programs were also suspended. Potential Impact on Employees How many State employees are fully Federally funded 78 (excludes vacant positions) How many State employees are partially Federally funded 39 (excludes vacant positions)

Options Available other than Program Reduction or Suspension The accounts have GF (provides access to the Contingency Fund) and override. If the feds do not cover retroactively, the accounts will require restored funding. Non-essential employees may be furloughed or reassigned to other agencies but it is recommended to retain continued services from essential employees.

10

Department of Employment, Training, and Rehabilitation

Vocational Rehabilitation (VR) Description of Program The program serves individuals who have physical or mental impairments that present barriers to employment and assists them in preparing for obtaining and retaining meaningful competitive employment. Financial Impact of Federal Shutdown FY 2014 Total Budgeted Federal Funding - $17,117,586 Will the Federal Government Cover State fronted costs Unknown Carryover federal funds are available to fund program through September 30th. Then state General Fund costs would be over $388,000 per week to maintain program at current levels. Federal Funds available Oct 1 Nov 30: $0 Impact on Services and impact on Individuals (if known) if Program is Reduced or Suspended If services are suspended, Nevadans with disabilities, most notably those with visual impairments, currently receiving services such as retina and cataract surgeries will be at risk of their disability progressing to an irreversible stage. Additional at risk participants are those seeking services to maintain employment. If services are suspended for this population they may become unemployed. Reduced or suspended services creates a risk situation for all VR participants, some greater than others. Nevada will not be in compliance with the federal mandate charged in the VR Program. Potential Impact on Employees How many State employees are fully Federally funded 0 How many State employees are partially Federally funded - 87, plus 15 DETR admin positions Options Available other than Program Reduction or Suspension Use GF until exhausted with the expectation that federal funding will be restored. These two budget accounts have enough State General Funds to cover expenses that began October 1 for roughly 5 weeks. There is no guarantee from the federal agency that funding will be retroactive to October 1.

11

Department of Employment, Training, and Rehabilitation

Vocational Rehabilitation - Older Individuals who are Blind Description of Program VR also administers the Older Individuals who are Blind (OIB) grant (Title VII of the Rehabilitation Act), which provides services to individuals over age 55 who are blind or visually impaired and is funded with 90% federal funds and 10% state General Funds. OIB services are geared towards assisting participants in gaining skills to live independently, travel safely around the community, and avoid institutionalization. Financial Impact of Federal Shutdown FY 2014 Total Budgeted Federal Funding - $266,141 Will the Federal Government Cover State fronted costs Unknown Carryover federal funds are available to fund program through September 30th. Then state General Fund costs would be over $5,110 per week to maintain program at current levels. Federal Funds available Oct 1 Nov 30: $0 Impact on Services and Impact on Individuals (if known) if Program is Reduced or Suspended If services are suspended, Nevadans with disabilities, most notably those with visual impairments, currently receiving services such as retina and cataract surgeries will be at risk of their disability progressing to an irreversible stage. Additional at risk participants are those seeking services to maintain employment. If services are suspended for this population they may become unemployed. Reduced or suspended services creates a risk situation for all VR participants, some greater than others. Nevada will not be in compliance with the federal mandate charged in the VR Program. Potential Impact on Employees How many State employees are fully Federally funded 0 How many State employees are partially Federally funded - 10 Options Available other than Program Reduction or Suspension

12

Use General Fund until exhausted with the expectation that federal funding will be restored. There is enough General Fund to cover expenses that began October 1st for 2 days. There is no guarantee from the federal agency that funding will be retroactive to October 1st.

13

Department of Employment, Training, and Rehabilitation

Independent Living Grant Description of Program This funding is transferred to Aging Services. The purpose is to collaboratively case-manage and cost-share goods and services for individuals that are a mutual client of both the Aging Independent Living (IL) and VR programs. Financial Impact of Federal Shutdown FY 2014 Total Budgeted Federal Funding - $311,766 Will the Federal Government Cover State fronted costs Unknown Carryover federal funds are available to fund program through September 30th. Then state General Fund costs would be over $5,980 per week to maintain program at current levels. Federal Funds available Oct 1 Nov 30: $0 Impact on Services and Impact on Individuals (if known) if Program is Reduced or Suspended Aging Services will not be reimbursed by DETR for services provided to individuals that are clients of both IL and VR. These clients will continue to receive services from IL, but without VR participation the IL program will not be able to sustain the level of services currently offered. Potential Impact on Employees How many State employees are fully Federally funded 0 How many State employees are partially Federally funded - 0 Options Available other than Program Reduction or Suspension There are no options available to cover costs that VR would have shared with IL. Aging was notified on October 4th of the unavailability of FFY14 funding and they will need to determine how to reduce expenditures or cover costs.

14

Department of Employment, Training, and Rehabilitation

Bureau of Disability Adjudication (Social Security Disability) Description of Program The Bureau is responsible for processing all applications for disability benefits under the Social Security Disability Income (SSDI) and Supplemental Security Income (SSI) disability programs, and for conducting evidentiary hearings for those disability beneficiaries who are recommended for benefit termination. Financial Impact of Federal Shutdown FY 2014 Total Budgeted Federal Funding - $16,749,7030 Will the Federal Government Cover State fronted costs Unknown Carryover federal funds are available to fund program through September 30th. Then state costs would be over $298,077 per week to maintain program at current levels. Federal Funds available Oct 1 Nov 30: $0 Impact on Services and Impact on Individuals (if known) if Program is Reduced or Suspended Nevadans who have applied for SSI or SSDI will either have their case suspended with no action or the case may be transferred to another state for processing. If the case is suspended with no action as is likely due to the impact experienced by all states, the disability determination process will be greater than the current 117 days, thus the claimant will be without a benefits determination for an extended period of time and unable to receive the financial benefit received as a result of the adjudication. Potential Impact on Employees How many State employees are fully Federally funded 91, plus 20 DETR admin positions How many State employees are partially Federally funded - 0 Options Available other than Program Reduction or Suspension DETR proposes to continue operating in the red thereby borrowing against the General Fund until federal resources have been restored. BDAs standard function has been identified as non-reimbursable. However, Jen Mitchel from SSA indicated that their staff could work on the essential functions and that SSA would reimburse once funding was restored. This conversation actually took place twice - once with Administrator Hendren and once with Deputy Director Perea to confirm this position. Also the link in their

15

guidance letter directs individuals to their site which reiterates this position. However, this is a commitment and not codified in law, so their ability to guarantee this is questionable.

16

Department of Employment, Training and Rehabilitation - Research & Analysis

Research & Analysis Bureau of Labor Statistics and Workforce Information Grant Description of Program In partnership with the Department of Labor, R&A is responsible for the collection, development, and dissemination of a variety of information such as labor force, employment, occupational, economic, and demographic data and analyses important to policymakers, the business community, and Nevada citizens. In addition, R&A provides analytical services and products designed to support the programs administered by the department and state and local workforce investment. Financial Impact of Federal Shutdown FY 2014 Total Budgeted Federal Funding - $1,342,452 Will the Federal Government Cover State fronted costs Unknown The BLS Grant currently has 8.9 FTE coding to this grant. As of 09/30/2013, annual funding for the Bureau of Labor Statistics has expired and no additional Federal funds will be provided under this agreement until the Federal shutdown has been resolved. All BLS activities are suspended effective 10/01/2013. The weekly cost for BLS is $16,300 and for WIG is $8,930. At a rate of $8,930 per week the WIG can sustain 5 staff for 46 weeks. If the Division adds the 5 staff from BLS at a rate of $14,553 per week, it can sustain 10 staff for 17 weeks. (WIG Grant total $411,657 $23,483 = 17 weeks) Federal Funds available Oct 1 Nov 30: $411,657 available in the WIG grant, $0 BLS

Impact on Services and Impact on Individuals (if known) if Program is Reduced or Suspended R&A provides key information that is utilized by a number of different customer groups in both the public and private sectors. Public policymakers (the Governors Office, the Legislature, GOED, etc.) require access to R&As information in order to make sound decisions. Employers contemplating business expansion/relocation also utilize their information extensively in making decisions, as do job seekers and students contemplating career options. Potential Impact on Employees How many State employees are fully Federally funded 14 BLS / WIG and 2 associated Administrative positions

17

How many State employees are partially Federally funded - 14 and 10 associated Administrative positions due to the reliance of cost allocated positions on the Section 110 and UI grants, ten employees will need to be laid off at the beginning of November.

Options Available other than Program Reduction or Suspension Since R&A does not know if the funding, once restored, will be retroactive to October 1, the Department has the following suggestions to maintain operations: The division has evaluated the activities of their staff to determine if they can be accommodated in the Workforce Information Grant (WIG). It was determined that 5 staff can be moved to the WIG grant and perform the same tasks. The remaining 4.9 FTEs can be funded out of reserve for a maximum of one month. This would result in a reduction the reserves of approximately $40,000. If the shutdown goes longer than one month, a program reduction or suspension would become necessary for all non-critical positions.

18

Department of Employment, Training & Rehabilitation/ Employment Security Division

Unemployment Insurance Description of Program The Unemployment Insurance (UI) program is a joint state/federal insurance program that provides temporary wage replacement to protect workers against the hardships of unemployment. Nevadas UI program is organized into two sections. The Benefits section ensures the timely and proper payment of benefits to unemployed persons. The Contributions section is responsible for maintaining the employer tax system. For the week ending 9/28/2013, the Division paid 26,703 regular UI benefit payments and 18,338 Emergency Unemployment Compensation (EUC) (federal) payments totaling $8,742,913. Financial Impact of Federal Shutdown FY 2014 Total Budgeted Federal Funding $39,038,917 Will the Federal Government Cover State fronted costs Unknown The cost to administer the UI program is $160,000 a day ($3.5 million a month). Federal Funds available Oct 1 Nov 30: $0 (No grant funding has been received for FFY 2014 for the administration of the UI program.) Impact on Services and Impact on Individuals (if known) if Program is Reduced or Suspended This program provides services to unemployed Nevadans. Without this program, thousands of unemployed individuals will not receive benefits and may not be able to pay rent or provide their families with food and other necessities. Potential Impact on Employees How many State employees are fully Federally funded 393 UI staff and 64 associated Administrative positions How many State employees are partially Federally funded Approximately 10 Contributions staff that collect CEP taxes along with Regular UI taxes will also be impacted and 1 associated Administrative position. Options Available other than Program Reduction or Suspension As the FFY 2014 funding for this program has not been awarded by DOL, the Division is exhausting $924,817.08 in carryover funds from FFY 2013 and has elected to fund the administration of the program using $2.6 million of Penalties and Interest funds to cover the costs of the UI program through the end of October 2013. If the State elects to fund the administration of the UI program, at full

19

or reduced levels after October 31, 2013, General Funds would be required. The Division does not have General Fund appropriation. There is no certainty that the federal government will reimburse the state these funds. The EUC program (both administration and benefit payments) is supported federally. The processing of new claimants will be slowed and will depend on the number of ESD staff remaining. The Division has requested guidance from DOL on the impact of the Federal Debt ceiling on the Divisions ability to pay UI benefits. The Division has not received official guidance at this time, however, fiscal staff from the National Association of Workforce Administrators has advised that the UI Benefits Trust Fund is included as part of the Federal Debt, and they believe payments would be stopped.

20

Department of Employment, Training & Rehabilitation/ Employment Security Division

Veterans Employment Training Services (VETS) Program Description of Program The Veterans Employment and Training Services provide job referral and placement for Veterans. Nevada VETS staff provides outreach activities to economically or educationally disadvantaged Veterans unable to reach their employment goals without intensive services. The outreach efforts seek out homeless Veterans in the local community needing employment and training services. The VETS program consists of the Disabled Veteran Outreach Program (DVOP) and the Local Veterans Employment Representative (LVER) program. DVOP program provides case management services for Veterans including job placement, job referrals, and career guidance. The LVER program provides Veterans with job development and outreach to employers. Financial Impact of Federal Shutdown FY 2014 Total Budgeted Federal Funding $1,818,000 Will the Federal Government Cover State fronted costs Unknown (if yes, please state source of information, if NO, please state why) - The cost to administer the DVOP program is $70,000 a month. The cost to administer the LVER program is $50,000 a month. Federal Funds available Oct 1 Nov 30: $0 (No grant funding has been received for FFY 2014 for the administration of the VETS program.) Impact on Services and Impact on Individuals (if known) if Program is Reduced or Suspended If the program is reduced or suspended, DVOP and LVER staff will be funded with the Wagner Peyser (WP) grant. DVOP and LVER staff will be providing Wagner Peyser service to all clients and no longer be able to exclusively serve the Veteran population, however, all Veterans will still receive priority of services as WIA requires priority of Veterans. Potential Impact on Employees How many State employees are fully Federally funded 15 DVOP & 8 LEVR How many State employees are partially Federally funded 0

21

Options Available other than Program Reduction or Suspension As the FFY 2014 funding for this program has not been awarded by DOL, the DOL VETS LEVR program has been suspended. The Division is continuing to deliver VETS LEVR services under the Wagner Peyser (WP) program. Once DVOP FFY 2013 carry over is exhausted (10-18-2013) the Division will also continue to provide DVOP services under the WP program. The WP program will be able to sustain VETS services for approximately 2 to 3 months due to the adequate 2013 carry over funds in the WP program; however, this will have an impact on the future carry over funds for the WP program.

22

Attorney General Violence Against Women Grants (BA 1040)

Description of Program The Violence Against Women Grant account in the Office of the Attorney General receives grant funding to support law enforcement and prosecution projects, victim services programs, and courts programs addressing domestic, sexual, or dating violence and/or stalking. To include children who have been exposed/experienced domestic and sexual violence as well as the statewide coordinator for Drug Endangered children. This funding supports 5 state employees and numerous sub grantee positions. The 2012 year-end reports state that 13,702 people are served with these funds to include 73 children. Financial Impact of Federal Shutdown FY 2014 Total Budgeted Federal Funding - $2,239,453 Will the Federal Government Cover State fronted costs Unknown - if the state will receive reimbursement to cover state fronted costs. The weekly cost to operate is approximately $71,367 Impact on Services and Impact on Individuals (if known) if Program is Reduced or Suspended Services would need to stop as there is no other funding source available to fund this program Potential Impact on Employees How many State employees are fully Federally funded 5 How many State employees are partially Federally funded - 0 Options Available other than Program Reduction or Suspension This budget is entirely federally funded with no general funds or access to IFC Contingency Funds.

23

NSHE Desert Research Institute (BA 3010)

Description of Program The Desert Research Institute (DRI) is the environmental research arm of the Nevada System of Higher Education. DRI conducts cutting-edge applied research in air, land and life, and water quality across Nevada. Note: this was taken from DRIs website DRI on a very broad scale receives about $113,000 per working day in federal or federal pass through funding through grants and contracts. The total federal funding comprises 55% of DRIs total revenue. Financial Impact of Federal Shutdown FY 2014 Total Budgeted Federal Funding unknown Will the Federal Government Cover State fronted costs unknown Impact on Services and Impact on Individuals (if known) if Program is Reduced or Suspended DRI has received several stop work orders affecting 25 principal investigators and 47 support staff. Some of the staff has been able to move their time to other projects that are currently unaffected. However the number of stop work orders is expected to increase. The lost time from stop work orders received to date equates to approximately $20,000 a day in lost compensation for researchers and staff and about $14,200 in lost indirect cost recovery funding. Potential Impact on Employees How many State employees are fully Federally funded 302 How many State employees are partially Federally funded - 50 Options Available other than Program Reduction or Suspension One option is for faculty and staff to reallocate their time to other projects. Staff that does not have other projects may use accrued leave to cushion the impact of lost time; part time employees have no cushion. Budget Office Comments: Traditionally NSHE has been required to address this type of shortfall. A concern about utilizing accrued leave for staff to cushion the impact of lost time does not address the loss of federal funding.

24