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Subcommittee approves major CIP projects including forensic facility, veterans home and state office purchases; staff flag $25.3M shortfall and financing option
Summary
The subcommittee approved a slate of major 2025 CIP projects — including a 300‑bed forensic facility, replacement Desert Regional Center buildings, a North Las Vegas veterans home and multiple state office purchases — and adopted funding‑source and maintenance changes while staff flagged a $25.3 million shortfall.
The joint subcommittee reviewed and acted on the governor’s revised 2025 Capital Improvement Program, approving a set of major construction projects, planning initiatives and a series of consolidated maintenance projects. Staff flagged a $25.3 million funding shortfall in the revised CIP and presented an option to reclassify up to roughly $147.2 million of general‑fund financed projects to general‑obligation bonds for projects with 20‑year useful lives.
Major projects approved: - Southern Nevada Forensic Facility (CIP 25CO1): Governor recommended $381.8 million in GO bonds for a 300‑bed forensic psychiatric facility on the West Charleston DHHS campus; approval was contingent on approval of CIP 25CO2 (see next item). Staff said state law (NRS chapter 178) requires admission within seven days of a court order and that existing facilities are at or beyond capacity; fines have been imposed for delays. - Desert Regional Center facilities, Las Vegas (CIP 25CO2): Approved at the timeline corrected by the State Public Works Division; the project would replace aging buildings and provide land for the new forensic facility. - North Las Vegas State Veterans Home (CIP 25C03): Approved funding totaling $223.2 million ($78.1M GO bonds; $145.1M federal funds) for a 120‑bed skilled nursing facility. Staff noted federal grant funds must be awarded before construction begins; the project does not include FF&E, which would be requested in the 2027 CIP. - State office building purchases (CIP 25C26 and 25C27): Subcommittee approved purchase and improvement of multiple Las Vegas buildings (including a separate $7.5M general‑fund amendment to acquire three additional buildings for intermediate care beds) and approved a revised purchase price for a Reno office building at $20.2M (reduced from an earlier recommendation). - Hobart Reservoir Dam rehabilitation (CIP 25C05): Approved an increase of $4.6M in GO bonds and motion language included replacing a lost $10M FEMA grant with bond funds and monitoring FEMA accounts.
Maintenance and planning actions: - The subcommittee approved consolidated maintenance projects across several agencies (DHHS, Administration, Corrections) but removed small line items budgeting emergent maintenance dollars (e.g., $570,312 in several consolidated projects and $1.13M for DOC emergent maintenance), directing that emergent work be funded from realized savings or reprioritization rather than the consolidated contingency line. - The subcommittee approved most shaded “other construction” projects and a set of planning projects; it also approved 2‑year extensions for projects originally authorized in the 2019 and 2021 CIPs where requested.
Statewide program decision: - The subcommittee did not approve a new statewide move program (CIP 25S10) funded with $1.8M in general fund appropriations. Instead, it directed the State Public Works Division to track staff time spent on agency office moves, to seek reimbursement from available one‑time funds (SB 456/SB 452 related funding referenced in staff comments) or to bill agencies directly, and the committee issued a letter of intent instructing the division to stop charging unrelated CIP project fees for agency move work.
Funding gap and financing option: Staff reported the governor’s revised CIP rose to about $1.157 billion (up roughly $29.2 million from the original recommendation) after amendments. Due to eliminations and reassignments of earlier bond proceeds and one‑time appropriations, staff identified a current $25.3 million shortfall to fund the 72 recommended projects. Fiscal staff presented an option to convert eligible long‑life general‑fund projects (about $147.2 million) to GO bond financing to realize general‑fund savings; the subcommittee approved the staff request to move forward with that financing option and authorized staff to adjust funding sources as needed in the closing recommendations to the full committee.
Why it matters: The approved projects include high‑cost, high‑priority facilities for behavioral health, veterans services and state operations. The shortfall and the option to move some general‑fund projects to bond financing will affect the state’s budget flexibility and debt profile.
What’s next: The package and funding‑source adjustments will be presented to the full joint committee; staff will continue to coordinate with Governor’s Finance Office and the State Treasurer on affordability and any needed budget amendments.
