Joint subcommittees approve transfer of Nevada emergency management to governor, back revolving loan program contingent on SB39 and FEMA grant

The joint legislative subcommittees on Public Safety, Natural Resources and Transportation approved a package of budget closings for the Office of the Military that included a recommended transfer of the Division of Emergency Management, an authorization tied to the proposed Storm Act revolving loan fund and several personnel and technical funding adjustments.

The transfer recommendation would move the Division of Emergency Management, inclusive of the Office of Homeland Security, from the Office of the Military to the Office of the Governor, contingent on passage of enabling legislation. The governor's proposal also includes additional general‑fund appropriations of $37,591 in each year of the 2025–27 biennium to cover human resources costs associated with the transfer. Daniel Miller, fiscal analyst with the Legislative Counsel Bureau (LCB) fiscal analysis division, told the subcommittees the agency said the reorganization “would improve the timeliness and effectiveness of decisionmaking by ensuring that the governor has access to the most current and relevant information available in emergency situations.” A motion to approve the transfer recommendation, moved by Assemblymember Brown May and seconded by Senator Winn, passed on a voice vote.

Why it matters: committee members emphasized that placing emergency management directly under the governor’s office is intended to speed executive access to operational information during crises. The approval is contingent on statutory changes; the subcommittees repeatedly noted that the transfer cannot occur until enabling legislation is enacted.

Loan program, FEMA timeline and hiring approach

The subcommittees also took up the governor's recommendation to fund a staff position and related costs to establish the Safeguarding Tomorrow through Ongoing Risk Mitigation Act (the Storm Act) revolving loan fund, a program planned to be capitalized with a potential Federal Emergency Management Agency (FEMA) capitalization grant. LCB staff described the program timeline: if enabling legislation is enacted, the division would complete program requirements by August 2026, accept proposals from communities in November–December 2026, and apply for the FEMA capitalization grant in January 2027. The fiscal staff warned that FEMA’s initial $500 million capitalization window is expected to be available through Sept. 30, 2026, and that applying in January 2027 could miss that funding window.

Because of that timing concern, the subcommittees approved a motion — moved by Assemblymember Brown May and seconded by Senator Winn — to fund a contracted position rather than creating a permanent state loan officer immediately. The approved decision included technical adjustments removing projected additional rent costs and provided general‑fund appropriations of $92,681 in FY 2026 and $104,206 in FY 2027 to fund one contract position (rather than a new classified loan officer), contingent on passage of Senate Bill 39 or other enabling legislation and contingent on any FEMA award and required state match. LCB staff noted the division would need to provide a 10% match if FEMA awards the capitalization grant; the governor's recommended budget did not include matching funds, and staff said the state could seek a match later via the Interim Finance Committee or the next legislative session.

Personnel reclassifications and technical adjustments

The subcommittees approved a fiscal staff recommendation to reclassify a classified Deputy Administrator position to unclassified status and to include Public Employees' Retirement System (PERS) contributions in the calculation. LCB recommended adding PERS costs rather than reflecting a savings; fiscal staff said that adjustment increases costs by $16,701 in FY 2026 and $9,810 in FY 2027. The motion to approve the governor’s recommendation inclusive of that technical adjustment passed on a voice vote.

Other approved transfers and position changes

- The subcommittees approved the governor’s recommendation to transfer one unclassified analyst supervisor (the Nevada Analytical Intelligence Center manager/NAIC manager) and associated general‑fund appropriations ($147,523 in FY 2026 and $145,457 in FY 2027) from the Office of Homeland Security to the Department of Public Safety’s Investigation Division. The agency said the position already supervises Department of Public Safety staff in the Nevada Threat Analysis Center, and the transfer would better align supervision and operations.

- The panel approved funding for two new unclassified psychological health positions — a clinical manager and a psychological health manager — intended to expand mental‑health support for the roughly 4,400 uniform personnel in the Nevada National Guard and their families. The governor recommended $127,879 in FY 2026 and $304,324 in FY 2027; fiscal staff recommended a technical adjustment removing one position from the FY 2026 FTE count, reducing FY 2026 general‑fund appropriations by $899. The motion passed.

- The committee approved a funding source change for an existing IT professional position that LCB said had previously been supported by declining Department of Defense funds. Fiscal staff adjusted amounts to reflect the full salary and benefits total, increasing general‑fund appropriations to align with the position’s total cost ($123,301 in FY 2026 and $127,610 in FY 2027) with a corresponding reduction in federal Department of Defense funds.

Battle Born Youth Challenge program staffing reductions

The governor recommended eliminating 11 positions in FY 2026 associated with the Battle Born Youth Challenge program (six cadre team leaders, four food service cooks and one unclassified deputy administrator) and reinstating two of those positions in FY 2027. The office projects enrollment of 20 students in FY 2026 and 30 students in FY 2027; LCB and the agency said federal funding — the program is funded roughly 75% by the National Guard Bureau with a 25% state match — is not expected to support seven additional vacant positions. Fiscal staff recommended an additional elimination of seven vacant positions, which the subcommittees approved; staff said eliminating those seven positions would yield additional savings of $669,824 in FY 2026 and $690,356 in FY 2027. The package of eliminations and technical adjustments was approved on a voice vote.

Other staff‑closed budgets

Fiscal staff presented several other staff‑closed budget accounts for the Office of the Military (including emergency management assistance grants, the Military Emergency Operations Center, state active duty funding and several National Guard benefit and relief accounts) with technical language included to permit carryforward or to add specific authorizations. The subcommittees approved the staff recommendations and granted staff authority to make technical adjustments where needed.

What was not decided

Every approved item that involves organizational transfers or new program accounts is contingent on any required enabling legislation or federal awards. Committee members repeatedly noted that many approvals hinge on statutory changes, federal funding awards, or future appropriations actions, and several motions were explicitly approved “contingent upon” those external events.

Quotations and attribution

Daniel Miller of the LCB fiscal analysis division provided staff detail and timelines for multiple items. Assemblymember Brown May moved multiple motions to approve staff recommendations; Senator Winn seconded several of those motions. Chair Watts and Chair Taylor presided over the joint session at different points while the subcommittees conducted the closings.

Ending

The subcommittees completed the Office of the Military closings and recessed briefly for staff rotation before taking up the Department of Veterans Services budgets.