Senate panel approves prison budget

CARSON CITY - A Senate panel approved a $300 million-plus budget Saturday for Nevada's prison system that doesn't include Gov. Kenny Guinn's plan to have a private company take over inmate medical care.

But Senate Finance Chairman Bill Raggio said the prison system's medical division must prove in the coming two-year budget cycle that its costs can be controlled.

"We've delayed this for over a decade," Raggio, R-Reno, said. He warned the Department of Prisons that the 2001 Legislature wouldn't tolerate the cost overruns that have plagued the medical division.

A 1998 legislative audit found the current state-run prison medical system had been hemorrhaging money, costing the state nearly $30 million a year. That's about 20 percent of the prison's budget.

Guinn fought to privatize the medical care for inmates, estimating it could save the state $4.5 million in a tight budget year. Two companies bid on the $58 million contract, which now won't be awarded.

But state-employed medical staffers, facing unemployment or transfers, fought back by promising they could save the state money if given a chance.

The prison budget was recommended by a subcommittee on prisons, whose members balked at privatization, saying what's essentially the state's responsibility shouldn't be turned over to a for-profit corporation.

Included in the approved budget is a 5 percent salary increase for guards at the state's maximum-security prison at Ely and the prison at Lovelock. Those prisons are understaffed, and Guinn recommended the differential to help recruit guards to the remote locations.

Raggio also asked the Department of Prisons to explore the viability of the state providing housing to prison employees as an incentive for the facilities where workers are scarce.

Fiscal analyst Gary Ghiggeri said the state prisons would save $2 million by housing some women prisoners out of state. Though the female inmate population is expected to rise, the net savings would still be around $1.4 million, he said.

The Prison Department will also study scheduling at the state prisons in Ely and Lovelock to relieve staffing problems.

The committee also approved Guinn's plan to shut down the Southern Nevada Correctional Center in Jean in time for the opening of the new Cold Springs prison in September 2000.

The medium-security Jean prison could reopen in 2004 as a minimum security facility. The Department of Prisons is also considering leasing the facility.

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