Bill grows for welfare computer system

Friday, June 26, 1998 | 10:24 a.m.

Although he backed the latest $900,000 expenditure, Assemblyman Morse Arberry told Welfare Division Administrator Myla Florence he isn't happy with the overdue and costly project.

"We have shown the utmost confidence in you and your staff," Arberry, D-North Las Vegas, said as the Legislature's Interim Finance Committee discussed the funds Thursday.

"But it's campaign time and we have to go door to door. What do we say to people who ask us how we could spend more than $90 million on this?" he added.

Florence told the IFC she expects Nevada will be assessed $714,000 in federal penalties because of its inability to complete the computer system. The federal government will withhold child support funds to the state.

States were supposed to finish the welfare computer systems by Oct. 1, 1997. Nevada and 21 other states have missed the deadline.

The state has been working since 1993 on the Nevada Operations of Multi Automated Data computer system, commonly called NOMADS. The original contract, signed with Integrated Systems, placed system costs at $12 million.

IBM later took over construction of the system, which gets two-thirds of its funding from federal grants.

Florence wanted $900,000 from the legislative committee to hire a company that would carry out quality assurance work as IBM finishes the computer system, perhaps by next May.

But Sen. Ray Rawson, R-Las Vegas, won unanimous support for his plan to spend most of the money on training for state workers in use of the new system.

"My concern is if all the money is spent on quality assurance, we won't have anything for training," Rawson said.

Florence accused legislators of making an end run around her request, saying, "I feel a level of trust has been violated."

She said her agency's workers desperately need an automated computer system, and $900,000 is a small price to pay to ensure its effectiveness.

Florence said later she suspects IBM officials went to legislators behind her back and sought money for their firm to carry out training activities.

She said her own staff can handle training of employees in the use of the computer system. Florence added IBM has refused to talk about training activities with her.

The state could face the loss of an additional $1.6 million next year if the computer system still isn't completed. Sen. Jack Regan, D-North Las Vegas, told Florence she should withhold money from IBM to induce the company to finish the system.