09-10 JAC BUDGET HEARINGS
Folder: C:\Documents and Settings\HAppropriations\Desktop\Recordings
0 ~ 12/10/2007 7:15:43 AM ~ Start Recording
31 ~ 12/10/2007 7:16:13 AM ~ First day of Hearings, December 10, 2007
51 ~ 12/10/2007 7:16:33 AM ~ Stop Recording
51 ~ 12/10/2007 7:22:10 AM ~ Start Recording
1:02 ~ 12/10/2007 7:22:21 AM ~ Pause
1:02 ~ 12/10/2007 8:19:29 AM ~ Resume
1:07 ~ 12/10/2007 8:19:34 AM ~ Chairman Philp called meeting to order
1:18 ~ 12/10/2007 8:19:44 AM ~ Steve Sommers went through the rules, New members introduced just budget hearings this week we will not be voting on anything no decisions this weeks. White rod on your desk updated Nov 30th two columns ending status on biennium and then gov recommendations that the gov has made, 16.9 million dollarxs is left to spend after the gov made recs. General fund 105 million is the statutory set aside; gove required to leave in the account he is required to put it there. 325 is the lsra no erc by gov to put any more in there. Schools gov did recommend that basically swept fiscal program ---inviolate fund; gov recs that we repeal that and if we sweep the program that it gets put into the building fund. If you look in first column you will see a figure --estimate his rec is to put in the cap fund; 120 million is rec is to sweep the fund in 2010 and we are doing two things there. That Mr. Chairman gives you 420 million; rest is for major maintenance before all said and done there will be several recommendatrions
6:54 ~ 12/10/2007 8:25:21 AM ~ Chairman Nicholas: The biggest reve drop is the lack of the budget reserve carry over
7:16 ~ 12/10/2007 8:25:42 AM ~ Sommers: First we had a lot of money to carry over from 2006 into 2007 and 2008 so we did a pretty good job of taking care of that slush. 2006 was our biggest year.
8:20 ~ 12/10/2007 8:26:46 AM ~ Nicholas: 2006 income is that gas prices
8:31 ~ 12/10/2007 8:26:58 AM ~ Sommers: Yes
8:35 ~ 12/10/2007 8:27:02 AM ~ Nicholas: Turning to the school budget...That is just less than we thought we would have
9:02 ~ 12/10/2007 8:27:29 AM ~ Sommers: That is just an estimate primarily with the foundation program it funnels into....2006 was the largest year...recapture that funneled into the 2008 years
10:01 ~ 12/10/2007 8:28:28 AM ~ Nicholas: On the colis ...
10:17 ~ 12/10/2007 8:28:43 AM ~ Sommers: Last of our big years is 2009. Only one sale...two sales in the last couple months were rejected. Will not reiissue until after the sale....after you guys left town. You are not going to have any more before you leave town. 160 mill or 184 mill which are a little bit of royalties...if no other source you won't be able to fund many projects
12:07 ~ 12/10/2007 8:30:34 AM ~ Chairman Philp: Any more questions?
12:22 ~ 12/10/2007 8:30:48 AM ~ Sommers: That is about all I have
12:29 ~ 12/10/2007 8:30:56 AM ~ Chairman Philp: I have a question about the drop in the governors budget
12:46 ~ 12/10/2007 8:31:12 AM ~ Somers: Actuals for 2007 and the other is what we will face in 2009-2010 That pretty much sums it up. Hathaway will be fully funded in 2008 plenty of money factored into these numbers
13:53 ~ 12/10/2007 8:32:20 AM ~ Sommers: One more thing the 17 mill we have is 3 mill higher than what the governor has in his report---we had 3 mill more after we reviewed some of the budgets.
14:45 ~ 12/10/2007 8:33:11 AM ~ Pause
14:45 ~ 12/10/2007 8:44:18 AM ~ Resume
14:46 ~ 12/10/2007 8:44:19 AM ~ Governor arrived
14:53 ~ 12/10/2007 8:44:26 AM ~ Governor: What's the story? I have only one and I am sticking with it. If Siommers would raise the estimates we would all be ok. I am sure you have already been approached by agencies and interest groups and they are not happy with all my proposals. Those contacts reflect that revenues are reasonably stable and we have increased the general spending. I emphasis at the outset that no one's budget was cut and no one's complete request was granted. There are a couple exceptions---DFS we cut some monies with the agency's support because they are expecting some federal money. There was another exception in senior aid because people are not taking advantage of those services. We have tried to live within in our means. We took the approach that he revenue estimates---we would stay well within those programs---all could have been funded and that would have meant going into the revenue mineral trust fund. No reason for us tyo go there. Gov could have recommended funding it all but that would have meant going into those funds and I will not recommend that and I hope you will not either. Stay within our means is what I think we should do. Did we address that fundamentally that we need to take care of the human capital. We are extremely frugal in capital construction. Reduced by us---I looked at things that were essentially ready to go--2/3 is consumed by two items--major maintenance and the other was a for state buildings. That is how the 54.8 mill divides out. UW school of business takes ...the other building ready to go is the Game and Fish building--feel we can get it done...the runway at Guernsey is ready to go and will be used by people from around the world. The feds will build the hangers and the buildings. In the long run added to the economy. Fairly generousstandard budget. k-12 was given 4.3% and the state employees got less so you will hear about that I am sure. Added significant budgets---there is some dispute about some decisions about what is in the standard budget and what is out of it. I am not comfortable with--- I am comfortable that McVeigh and Sommers did do the right things in the budget. As we move forward I will talk about my recommendations and then agency budgets and then I will take questions. In the context of this budget there are 79 positions trhat are impacted--15 are eliminated, 23 new positions, 17 of which are funded by general funds...I lwill walk through these, new ft one is in Sec of State, 2 at public defenders, 2 at auditors, 5 game in fish, 1 at corrections, We transferred some PT to FT---this reflects that some of these have been working full time all ready. Family services 2, corrections 1 and Casper 1. AWACs have been recognized... when they come to talk to me we are drinking more and are using wine...can't explain it...game and fish 3, corrections 10, A&I time limited 1 of those goes to full time. We have some positions that have...some funded at game and fish and we are trying to move some of that. Some positions removed, ...health dept--3 moved to state engineer's office of those 23 17 are funded by general fund dollars; a couple things might be worth referencing one is you will notice I have rec in this budget a general fund of 28 mill to cover last thing on gov recs that is probably funds you can use. In regard to school capital we have been forced to reach back into this biennium and take money 147 mill and even with that we did not fill the request they wanted. Coal is soft and we have not been getting good sales---we don't consider the funding until the actual sale is complete. essentially use this money as reserve. Hope rings eternal---Licncoln. We can manage that....the balance available is 13 mill since we did our budget, Mr. Sommers found an error in McVeigh's work so there is an additional 3 million to spend. We left auditors budget in case we needed more for medicaid. We are about done with mmap...another source you can go to. Because I am telling you this, does not mean we recommend you go there. Auditor's budget can be reduced---they feel pretty good about the numbers but don't believe they need as much as is there. We don't want to do away with it entirely. With regrad to gov office budget it includes homeland security, etc. We have asked for an expansion for ... Several agencies what a contingency fund so if there is a disaster...want under the province of the governor...4.5 million...what we did was...effort made to shooting incident...nothing sacred about this number...language limits its use and the state services...regard to homeland security....on the formula the big cities win...special interoperability...with regards to endangered species...budget to build on experience with sage grouse and mice..moved money to governor's budget for control...prebble mouse about 800K over the next two years. We have separte funding in the game and fish to deal with the ...we want to be in a position to deal with this. A couple agencies that will need additional attention....does not mean that any other agency won't need attention...Treasurer's office---we have been approached by the retirement fund--requesting 2% on the basis that without that funding they can not provide cost of living to retirees....before we head down that road I want to know that everything is okay. Not implying that anything is wrong but that they show us the need. 2.1 mill to tribal schools needs to move from gove to schools. A&I budget are recommended prior to McVeigh taking the directoship...I will tell you that there are some things that are in this budget and .... didn't spend it all in last budget and we are asking for it to be carried over what was not spent. I think when I watch the system they make good use of the ...1.5 should be enough to maintain state buildings. Military budget about youth challenge program half foundation and half federal...number of students was not what they expected...Sold on a 50/50 basis and I want to hold them to that. I encourage them to share that with you. Talked about Public Defender--reflects increase because of higher workload in Gillette. I confirmed that myself byu calling a judge up there. As you know they are funded by general fund...We have been careful to do these loans in the event that we write them off if they are not paid. The status of those at this stage is....I am not prepared to say that the people who practice this form of law, I don't want to say they are incorrect...maintain their independence...the Ag department--want to talk about their cap con program...I find if I give them that it becomes their base and they come back for more. I want them to prove need. What you see is that we have done this in a number of places. In revenue department increased 50 mill increase. Atty general budget is pretty straight forward. Children's advocacy center was not funded completely...capital construction there is money for the...intended to pay for ceramic bullets when they are training. We use to charge them per student and we are going to manage it from one fund. A couple license groups came for money---we denied them. We essentially sat down and said we do not need one for every group. DEQ most substanial request....largest expenditure is air quality monitoring...I would recommend you fund this...increasing issue with health concerns...Dept of audit 2 positions is not funded by general funds...State Parks---3 mill in that budget and I hope you will continue....Historic context Devlpment---useful evolution to get theri clearancesbefore they can build a pipline there is a substantial request in regards to roads...What happened was we asked them what they really needed...alot of gravel roads will have to be addressed in the future. Of course, they wanted all the money... Workforce services we removed 8 positions, I was encouraged...director coopperated by going into the budget and prioritized all the request...want money immediately. If we give them 4 mill and they don't use it all we won't give them more. School facilities I have addressed briefly 3 million in infra structure...current policy is we pay half of the construction..hopefully that policy will continue. Community can pay their half. I have created a footnote....Asked applicants to provide document to ...Not my intent that we deny them but trying to get them to think about rural fire district needs another truck, need another officer to manage the outlying area created...I am hopeful that it will work...Health Dept transfers 4 position to state engineering...but not the funding because I cannot do that.....wildlife and natural resources trust....43 mill to go into the trust account...I realize that everyone does not like this process...not everything we do works but this one does...Wyoming values....Game and Fish it is all pretty straight forward...disease management...sage grouse mapping is the most urgent request they brought forward....additional funding to put programs together..contained in that budget wolf management...not sure if we will need more money....at this stage it appears that things are on track...not prepared to guarantee...major item game and fish department....mad at the agency...set that aside....it falls into the category of should be done....efforts on carbon...channel efforts to advance clean cola business...money may move in future to UW...I draw it to your attention...use it to make the state and country to use coal....dept of transportation many were worried about 100 mill for road construction....airline moved from 6 mill to 3 mill because they get to carry forward their money not spent in addition to the 3 mill.. by all accounts that should be adequate for their programs....Also, money for airport improvements....federal funds and these dollars for work around the state....Dept of Health...denied some pilot programs not becasue they weren't great programs but that we need to work to live within our means...growth in this budget has been significant and I don't think where we ended up was wrong...a whole lot of great things...limitations I don't find this ..there aqre just lots of things I would have wanted to fund but we can't do them all so we tried to allocate the funds to a wide variety of needs....some think that we should give all the money to the Health dept instead of the county and cities. You will discover that at this time there will be alot of disappointed people...Community Colleges, same pattern we did ...salary program...I wasn't a big fan of that appropriation when it went through. ... I did deny the 16 mill request...no funding formula until just a couple days before I had to work on their budget....we did fund nursing salaries....then put 2.5 mill in the tv fund endowment...give them a shot to raise their monies like we have other departments... I thought ok it dovetails well with their 25 anniversary. The one I came close to funding was the Sheridan dormitory at Gillette because they didn't want dollars....Moeny was used for funding a dormitory in Riverton...chose not to recommend the money for Gillette . Seems to me that questions about community colleges...not ready to make tough choices.. Static student enrollment Looking for non traditional students---moved the ball some down the road but still not there yet. Standard budget...I suggested that we would park about 300 mill which I think should go to local governments...some to be used to offset the loss of tax on food...communities lost that money fact that I did not include a formula has drawn some criticism...the money for the gov residence is something that I would not want to address...uses alot of water....we need to do something about the grounds...I lack the courage to address that budget and you can do whatever you want. 1.6 million in advertising costs....Some staffing in there along I-90....also in capital construction budget for the welcome center coming up from Denver...on the wrong side of the road trying to work with developers. Not the most important project but it does need to be addresses....UW pretty straight forward...ML funding to fund School of Energy....can spend it on energy development...carbon gasses...Need to do some work now...we have some of the most unique formations we need to experiment with them and start moving forward...I think it is good for the nation and a priority for the state. On the NCAR funding we only funded 1 mill and that is because they haven't spent the last mill we gave them. 4.3 mill for athletic facility that has been worked out with the Treasurer's office. They have worked that out so we do not have to fund it...We have to put in 5.4 mill for the medical contracts it continues to go up...on the personnel side they had a huge request...100 vacant positions in Rawlins of the 22 positions they will go to....Business Council.... New buildings will get done this session...Child care facilities and the business council....Bus Council sent a special request for more and I said we won't do that...District Atty...1.7 mill request we passed it because you approved it last year. Changed the formula...Medical education straight forward...We would essentially be in a position that school facilities would add an additional....(Governor outlined the entire school facilities budget) Long way of saying that we have built in significant funding -----money that would have gone to savings and now doesn't. I have available if you would like,.,,,health care commission I have not recommended to fund beyond July 2009. It is funded but it is up to you if you continue. Thank you
1:31:00 ~ 12/10/2007 10:00:32 AM ~ Pause
1:31:00 ~ 12/10/2007 10:03:42 AM ~ Resume
1:31:02 ~ 12/10/2007 10:03:45 AM ~
1:31:08 ~ 12/10/2007 10:03:50 AM ~ Pause
1:31:08 ~ 12/10/2007 10:17:16 AM ~ Resume
1:31:23 ~ 12/10/2007 10:17:31 AM ~ chairman P are we ready to start
1:31:50 ~ 12/10/2007 10:17:58 AM ~ s Meier I am cncerned about the federal jobs that we have lost. I am concerned about that area
1:32:24 ~ 12/10/2007 10:18:32 AM ~ Governor We need to decide which speacial districts we may end up with less fedral money and expertise. We mahy need to add more people to Land Board,. We need to decide if we need to inclllude the stat e through the rural developement dervice. j The feds pulled aback all of that money. I guess that was what I was hoping for and what entities wkould be ellgleible and would that include special districtsd. that the waster districts would need. When we talk to the agenacies. Is there something that is less important than what you are doing.
1:34:47 ~ 12/10/2007 10:20:55 AM ~ S. Meier Although I did nkot support. I did apply for one for 20 or 30 thousand dollars. Did receive it. When there is that much continuing revenue and we lose our oversight. We had spent tens of millions of dollars.j I have different priorities. We are losing our s3ense of priorities kAre any of that land purchases or we would really like to fund
1:36:52 ~ 12/10/2007 10:23:00 AM ~ Governor. They did not have specified projects. What that number was based on. Based on level of funding. Did not specify certain projects. I would be disappointed if they had selected. Itr is really lnot a level playing ground. We do nkot share the same vision of the jstare. I don't like it. I would encourage you to think about how little jwe allocaste to wild life as cmpared to other places. You don't come to Wyoming to attend the opera. j It is a definition of what we are all aabout. It will not turn into a If we start to prserve habvitat concern of the mineral industry. I hope that we willl have a chance to continue the disscussion.
1:39:51 ~ 12/10/2007 10:25:59 AM ~ R Warren I have struggled with the the state parks. They came up with a good long term plan. If you had this funding can yo8u spresd it out. A big part of Wyonming is tourism and outdoor rec.f
1:40:58 ~ 12/10/2007 10:27:06 AM ~ Governor The circumstances is the long term plan assuming only plan for the state. /wWhat we did in that requeest was to pick up other chunks. I cannot take from another budget. The cultural trusdt fund is only 10 million and recognize that the jpriorities We are in this jsituation because we have put money in human sercvices. It takes nothing away from from jRep simposn and other have done. You appoint people who are passionate about thier jobs. j You end of in a series of meeting that people go away diaapointed. Unfortunately you are in the jsame postion as we are.s People are absoulutely dedicated to parks and resources. Went out as if he had been veawt with a stick. We try to addr3ess each priortiy
1:44:17 ~ 12/10/2007 10:30:25 AM ~ Rep Jorgensen Not the most important. When this request was before us. State parks wanted to set sup their own budget.,.We have duplicate shops. We have programs that overlap. HKopefully, Mcefvay will lhave authority.j
1:45:27 ~ 12/10/2007 10:31:35 AM ~ Gov I will tell yo8u that the actual numbers came from the high wahy department. l I watached that battle in the 70's. I try not to leave blood jon hillsd that we jcannot take. We are trying to do some jthins jointly. We could through the joint powers. As of late we have not had to do loains. 23 sherriffs tried to luynch me.
1:47:10 ~ 12/10/2007 10:33:18 AM ~ S Townsend. I have a comon view with my fellow senator. I had the list of llthe applications. Amounted to 17 million. The denounced the jfunding.j In that group a lot on mkooney toward easenents. I wanted to know the urgency of easdment payment.
1:48:23 ~ 12/10/2007 10:34:31 AM ~ Gov. Easment is nothing more than to try to protect the invesment. It is not free title. Mty worry is if yu don't get want you jbargain for. As a consequenced. You might talk to Mr. Budd. You need time tio develop havitate in these drought time. I hope that I can get you to move with you. I am butj your mear servant
1:50:04 ~ 12/10/2007 10:36:11 AM ~ S Peterson. We talk briefly about c colleges in break. We have particiapted in some of the capital projects. We gave a challenge to the c college community. The listed one andtwo Casper College. Northwest was a local 3 million matach. I say local commlissioners back off. We need to work together more closely. I was wondering if you had seen the report
1:51:58 ~ 12/10/2007 10:38:06 AM ~ Gov I did have the benefit of the list. I hadj a differet perspective. The process is In regard to that I jpicked those that had jlinks to training. Casper was classroom not workforce related. it may be over timek. Need to have more money available. The state recognizes that we have a weorkforce shortage. We need to have peoople live in thos dodrms. All of tjyou can find fitimes that I engaged in clever argument. There are a nuymber of recommendations. They have political muscle. Are we going to limit to what is in the state interest.
1:54:52 ~ 12/10/2007 10:41:00 AM ~ S Job Every year one of lthe big issues is money to llocal jgovernment and we don;t give all. How do lyou come to y9ur recomendati9n . I think that we have jbeen pretty generous. HKow did you determine
1:56:00 ~ 12/10/2007 10:42:07 AM ~ Gov. The request ffrom local gove is any thing jform j Numbers range from 3 to 6 o 7 million. None of the agencies got cut. Comes to 400 million. Give or take a little less jthan what jthey received last session. The allocation then becm es the jissue. j State land office to get to that 40 million needs to offset the loss of sales. The small communities are much more dependent on sales tax on food. The 260 I would take the o45. We have run formulas. We have use the inverse formula. You might want to move to Niobrara county. Inverse ratio We have looked at wiehghted averages. It costs this much We looked at o[ption of county block options. I've seen at least 9 of the paread sheerts. Shared with D Richardsjjon. I wanted to avoid Secret appjropriations formula, The number itself. Just like we did for everything eslse. Less of an add on than we did for other agencies,. Mike and I are javailable. My biasis are clear. We have to figure out away to help. Need to help. Part on block and kother on wieghte
2:01:43 ~ 12/10/2007 10:47:51 AM ~ SJob How does yur recommendation allign
2:02:00 ~ 12/10/2007 10:48:08 AM ~ Gov when I first testified in front of them. Decisdion will be made in 08. Individual have some thought. I don'[t know if the committee I know when it get to the floor. Everyone gets frustrated at the las minute.
2:03:10 ~ 12/10/2007 10:49:17 AM ~ S Nicholas One of these days bring you back the last day. The ALM dollars do we get it by aplicaton.
2:03:56 ~ 12/10/2007 10:50:03 AM ~ Gkov It isj all abut the jinterest. They cannot tell us how to spend it. They cannot reject a drawdown. I see one question. We talked about it yesterday. The drawdown on the letter of credit. I saw in newspaper. The state has already set aside funding . I am not sure in the end if we do to do that. Mine land jReclamation. Wierd stuff that they do ....None of it interferes with jThey willl set abut getting it corrected. I will encourage you to make it work even betterf
2:06:24 ~ 12/10/2007 10:52:31 AM ~ s Nicholas How does it work
2:06:44 ~ 12/10/2007 10:52:51 AM ~ Gov. The ppropriate balance 7 million. Ankother set of revenue. Pay a fee or each amkount of coal mined. Some used for miners health fund. We can take part of the mkoney and phasse in new revenue. That money
2:07:59 ~ 12/10/2007 10:54:06 AM ~ S N j Two questions. If there is going to be a grant process. Does a legislator need to decide or the direactor iof corps ....here is ja whole bunc. j Shoud we put together a list
2:08:55 ~ 12/10/2007 10:55:02 AM ~ Gkov If yiu don't draw down the jfund it will be availaable the next year. They have changed the rules. You guys have to authorize. l I could jkput it jall in the WL Trust
2:09:47 ~ 12/10/2007 10:55:54 AM ~ S Nic You did discuss....are there unrealized capital gains. You touched on what your jview are.
2:10:17 ~ 12/10/2007 10:56:25 AM ~ Gove As I understand,j capital jgains when we move into 50 percent equity. I suggest that yu raise that number The revenue account MTF Liquid saving invested at a pretty good jrate. Hit general fund under contst
2:11:35 ~ 12/10/2007 10:57:42 AM ~ S Nicholas If we raise the jspending account balance. What type jof increasew.
2:12:04 ~ 12/10/2007 10:58:12 AM ~ GKov jRase from 300 million---not the percent. I would like jto look into it
2:12:33 ~ 12/10/2007 10:58:41 AM ~ S Nich I am interested in know if it is uniqe to lthe permanent minteral trust fund. In regard to the retirement fund.s It looks like you stop short about board
2:13:29 ~ 12/10/2007 10:59:36 AM ~ Gov The limitation is that it is ja request for 100 million dollars oar rasie by 2 percent. Structural quesstion would require a staturary language and not modified here.
2:14:22 ~ 12/10/2007 11:00:30 AM ~ S Nic the retirement fund is what can happen when you get into the stock market.
2:14:47 ~ 12/10/2007 11:00:55 AM ~ Gov. I would defer to expertise of Treasuure
2:15:03 ~ 12/10/2007 11:01:11 AM ~ S Nicolas.j I think that we do have resources to do 2 and a half percent. We have hit it and j1.5 is adequate. f
2:15:42 ~ 12/10/2007 11:01:50 AM ~ Gov I think that yiou have mischararacterized. How much we were spending on maintenace. We have caught up... but we may need more when j I don't want to put words in Mr Cathcarts mouth. We may still need to supplement. Within the context of balancing the various request. I don't want to imply
2:17:37 ~ 12/10/2007 11:03:44 AM ~ S Nicolas. Of all the priorities. Ruckles House.
2:17:59 ~ 12/10/2007 11:04:06 AM ~ Gov The Ruckes house has been in existence. How do we want to move forward in this ste. What I was trying to do was stimulate more discussion. What are we dioing today that will affect future. jI placed it as a priority. We have conference in January. How are we going to make his work.
2:19:20 ~ 12/10/2007 11:05:28 AM ~ S NIcholas Did yyu look at vacancies
2:19:35 ~ 12/10/2007 11:05:42 AM ~ GKov We went tthrough those. Honestly Budget Office went throught it. f
2:20:04 ~ 12/10/2007 11:06:12 AM ~ S Nic. Mike you gave to me jAgencies codes need names. Ease our analysis
2:20:41 ~ 12/10/2007 11:06:48 AM ~ Mike mcVay I have a two month old vacancies list
2:21:09 ~ 12/10/2007 11:07:17 AM ~ S Nic Want updated vacancies jlist.
2:21:26 ~ 12/10/2007 11:07:34 AM ~ Gov We have not spent all that money. Hej doesn't even trust me to lread number.
2:21:51 ~ 12/10/2007 11:07:59 AM ~ MIke M We have j6 million. You appropriated 2.8 pool remaining. 2/3 mkarket dollars . Less than 1/2 million.
2:22:42 ~ 12/10/2007 11:08:50 AM ~ S Nic Are hyu talking abut jholding the categories
2:23:02 ~ 12/10/2007 11:09:09 AM ~ Gkove. The jxband. j Best Mc vay will st4aighted out.
2:23:23 ~ 12/10/2007 11:09:30 AM ~ S. Nic Ifj the legislature hold tax on food. j We willl have to use modified formusal
2:23:55 ~ 12/10/2007 11:10:03 AM ~ S. Nic Did you chect on where money is going
2:24:12 ~ 12/10/2007 11:10:20 AM ~ Gov Generally represented at session that lthey would be made whole.
2:24:34 ~ 12/10/2007 11:10:42 AM ~ S. Nic Within that acategory.. earmarked fhousing and do by grant or allocation
2:25:03 ~ 12/10/2007 11:11:11 AM ~ gkov. You can do it either way. Serer water curb gutter. If jwe jare going to do something. Direct it jworard infra structure. I don't know right jnumber. ANot conumed in operating dollars. You can do it either jwayt. For argument jsake. j If you do it by grant or by formulas--meed to demonstate goes to infrastructure. It is separted out from the 5th and 6th -penny. Reconfigure the jform so get better information. Need to figure out what it takes jto run a city. Cannot gleam from data that is received. IOne mayor fills
2:28:21 ~ 12/10/2007 11:14:29 AM ~ S Nicholas When they came--not go to general fund dollars. Funding to get reimbursed. Bond proceeds can be paid back. Measursed by issuance of bons. The question is should we diviate from that funding measurement. Do we measure success by issuing b9ndse
2:29:59 ~ 12/10/2007 11:16:07 AM ~ Gov. The part that was persausive to me was that if jthey isssued bonds. Frankly, the bond issues not issued because of low interest rate. Powerlines and pipelines need to be tax exempt. I do believe both of entities.. I don't supprt to state construction iof pipelines. Doesn't make sense to me. Has more to do with market clearing. We finally Rocky Mt Power company---I 'm not sure that it really ever becomes viable unless shift in interest rate. Energy projects
2:32:35 ~ 12/10/2007 11:18:42 AM ~ S Nichlas I don';t know Lo9ok starange if we jforgive.. Historical context. We turned down Parks and Rec--where are the matching dollars. Parks and Rec and the jpeople who do work would like expansion
2:33:43 ~ 12/10/2007 11:19:51 AM ~ Gov I made the inquiry aboiut wanting to match money. They said that they pay taxes.
2:34:10 ~ 12/10/2007 11:20:17 AM ~ S Nic j They are going to spend it any way.
2:34:27 ~ 12/10/2007 11:20:35 AM ~ KKGov We will make an jinquiryf
2:34:39 ~ 12/10/2007 11:20:47 AM ~ S Nic Are you going to have a problem if we distribute quarterly. Are you going to have heartbun --money at end of quarter
2:35:21 ~ 12/10/2007 11:21:28 AM ~ Gkov f I would disttinguis. Not merit based. Life would be a lot easier--that way it jwoulod jbe easier on us. If that is jwhat you want jj8ust say it. Askj for a little gentler instruction. We can't commit. They tend jto make a --offer the jsuggestons
2:37:01 ~ 12/10/2007 11:23:08 AM ~ S Nich Are you wanting to spend th 4 million2
2:37:18 ~ 12/10/2007 11:23:25 AM ~ Gov. Not necessar
2:37:27 ~ 12/10/2007 11:23:35 AM ~ Sen N What kind of increassed expenditure
2:37:47 ~ 12/10/2007 11:23:55 AM ~ Gov Under structural deficent Truth is that we have collectively continued to add to these. Adjusted revenue. jWe need to be careful
2:38:53 ~ 12/10/2007 11:25:00 AM ~ S Nic Need to come jup with an empirical j What the jincrease is in on going dollars. Need numbers to work with as we go lthrough session.
2:39:27 ~ 12/10/2007 11:25:35 AM ~ Gov. Glad to do that. Reflection j I don't want to jlget into LSO budget. What really is our revenue projection. Fit executive and we are short of money
2:40:21 ~ 12/10/2007 11:26:28 AM ~ S Nic Where is our jspending.. What is ongoing. Great concern. The ability of sustain our spsend8ing in schools. Margins now decline. Should we look at the structual janalysis of the foundation. Is it time to lookk at how we fund jschools. Should we look at some of the taxes we have removed. Take off burden from school foundation. Pjart of structural
2:42:10 ~ 12/10/2007 11:28:18 AM ~ Gov jWe have two really high ticksets items. Controlled by LSO. In response to Supreme Court. Gas prices can be jstron jto 20102012. We are headed toward a structural funding shortfall in education. Items that we jaddes--bounced it up0 more than 200- million,. Serious issue. Are we going to need additional jresouraces. If lease cycle on coal changes--payments out over five yars. If we get a national jrecession. Marginal pring.
2:44:57 ~ 12/10/2007 11:31:04 AM ~ S Nic Need empirical analysi...lConstitutional says will have to come out of general fund. Larger reserve accounts.s Investment revenues jincreasw. We have used up margin to fund Hathaway. I don't see a lot of margin. De
2:46:24 ~ 12/10/2007 11:32:32 AM ~ Gov You are absolutely rightj 147 jmillion short
2:46:58 ~ 12/10/2007 11:33:05 AM ~ S. Meirer j Did not put money directly . Fees to genral fund. I doubt if pipeline authority will lpay back. Numbers will increase.
2:47:58 ~ 12/10/2007 11:34:06 AM ~ S. Nic Agree. We do fund quasi governmental funds. If we expectation of refunding. Someione may have to write off. Let's examine it now,. We shuld not put on later
2:49:06 ~ 12/10/2007 11:35:13 AM ~ Gov It's kind of on a list of things I need to do before I loeave. So not dealt with by new jperson.
2:49:44 ~ 12/10/2007 11:35:52 AM ~ S Meier We might need to a constitutional amendment. Positions that went from Healt to Engineer. Positions went but money did not. Are there any restrictionsj?f
2:50:53 ~ 12/10/2007 11:37:01 AM ~ Gov Contract the services. Did not pay enough. Money is supposed to be sused for the same function. If that is the case need to Essentially go out to contract to a third jpary.
2:51:55 ~ 12/10/2007 11:38:03 AM ~ R Jorgensen Folllow up on infrastructure. Urban spraw.--bmust be inside of city and town.
2:52:37 ~ 12/10/2007 11:38:45 AM ~ Gov Lot of state would be forced into annexations. Leave out rural fire districts.
2:53:31 ~ 12/10/2007 11:39:39 AM ~ R Jorgensen A developer can set up a district ans slip by.
2:53:57 ~ 12/10/2007 11:40:04 AM ~ Gov It may be appropriate if it goes to a speciao improvement district, we may be able jto aske how they will have fire,--take into account full cost of develoment
2:54:51 ~ 12/10/2007 11:40:59 AM ~ R Philp Thank you governor Gov Thank you commitee
2:56:13 ~ 12/10/2007 11:42:20 AM ~ Chris Try to answer every question in three minues or less. I would mention homeland security. Would hyou want them?
2:57:53 ~ 12/10/2007 11:44:01 AM ~ S Nic Might want to get person for Endangered species. Ryan Lamb.
2:58:29 ~ 12/10/2007 11:44:36 AM ~ Chris Pages 11 and 12 contractual services. This is a request for 334,000 dollars in travel funds. Significant offereings to governors office...energy research. Couple of folks in contractrual service. Line item for them. These are folks we contract for a reasdonalble jprice. Steve Ellenbecker.
3:00:35 ~ 12/10/2007 11:46:43 AM ~ S. Nic. Give us a break down on all sectrion 900. Just give us a spread sheet. We will be asking that from all agencies. Energy advisors.. These are folks that demand larger resouces.
3:01:48 ~ 12/10/2007 11:47:55 AM ~ Chris it is difficult to say how long the relationshiip would last. These folks have particular talents. It would be difficult to bring in
3:02:34 ~ 12/10/2007 11:48:42 AM ~ S Nic What are we doing so the public understand that they are performing roles important roles as an advisors.
3:03:15 ~ 12/10/2007 11:49:23 AM ~ Chris These flds are considered representatives of the government. They present themselves in that fashion. I would suggest the reason the governor of Wyoming is asked to participate in national and internation energy issues. There are legal aspects, people who work in Washington. Bring to governor information on remarkable issues. Energy issues with valuable resources. Can bring information to the governor.
3:05:33 ~ 12/10/2007 11:51:41 AM ~ S Nic Is there any conflict of interest?
3:05:50 ~ 12/10/2007 11:51:58 AM ~ Chirsi We have not perceived any conflict of interest. We should be aware of.
3:06:22 ~ 12/10/2007 11:52:29 AM ~ Chris Increased dues to three identified organization. On page 24
3:07:00 ~ 12/10/2007 11:53:08 AM ~ S Nic What are we doing on instate increase in travel
3:07:28 ~ 12/10/2007 11:53:36 AM ~ Mike McV Based on what the standard increase. What cost increase, if reasonable then would be approved.
3:08:11 ~ 12/10/2007 11:54:18 AM ~ S Nic 21,000
3:08:20 ~ 12/10/2007 11:54:28 AM ~ Chris Per annum
3:08:35 ~ 12/10/2007 11:54:43 AM ~ S Nic What are we spending on our jets and what it costs
3:08:58 ~ 12/10/2007 11:55:06 AM ~ Chris That should be available
3:09:12 ~ 12/10/2007 11:55:19 AM ~ Chris Tribal, p28 Commission on Related travel jcommsion
3:10:26 ~ 12/10/2007 11:56:33 AM ~ S nic Who?
3:10:34 ~ 12/10/2007 11:56:41 AM ~ Chris Next request Tribal Council schools. Those funds jare currently funded through the governor's offic3.l Should go through the dep of Education No questions P 35 Special contingency balance to five million dollars for the bi
3:12:18 ~ 12/10/2007 11:58:26 AM ~ S Nic Is that jgovenors decision//formally declare emergency
3:12:39 ~ 12/10/2007 11:58:46 AM ~ Chris As I remember not necessary to declare to an emergency formally.f
3:13:16 ~ 12/10/2007 11:59:24 AM ~ Philp Is money left in contingency fund?
3:13:37 ~ 12/10/2007 11:59:45 AM ~ S. Nic What are all the funds where there are discresionary funds.
3:14:06 ~ 12/10/2007 12:00:14 PM ~ Chris We will get into that. Now jinto Homeland Security. I would ask Mr. Moore of homeland security. Page 45 Federal fund reduction on pages 49 and 50.
3:15:21 ~ 12/10/2007 12:01:29 PM ~ Sen N Policy of governor not to replac3e federal funds.
3:15:47 ~ 12/10/2007 12:01:55 PM ~ Chris Reducedj federal funds. Not so much a reflection of Just to make the committee aware.
3:16:24 ~ 12/10/2007 12:02:32 PM ~ S Nic Are we picking up fed funds?
3:16:41 ~ 12/10/2007 12:02:49 PM ~ Chris.. No not a general fund. Not clear on answer
3:17:00 ~ 12/10/2007 12:03:07 PM ~ S Meier Little jdiscussion. When did we start getting large funds for federal---assuming after 911. Federal funds, I'm just wondering if we are spending this money effectively
3:18:16 ~ 12/10/2007 12:04:24 PM ~ Chris Fed funds under homeland security. I would defer to Mr. Moore. We continue to reduce federal funds. We have a bulls eye on us. President has suggested reductions. Discussi9ns for ankother day.
3:19:31 ~ 12/10/2007 12:05:38 PM ~ Mr. Moore Prior to 911 financed under grant--we receive on a annal basis. Allocation based on threat after 911--Since 2002 85 percent to local jauthorities. Could be used for training and equipment. We have met the timeline. Now have a new assessment. We could have a definite impact becausde of resouces. Allocated formalas through 2011--appropriations in us congress. Now down to 6.5 million. Base congress set. You are correct thatj there is a decrease. President told to eliminate--serious consequences. We dn't have infra structture
3:23:19 ~ 12/10/2007 12:09:27 PM ~ S Meier What was the match
3:23:29 ~ 12/10/2007 12:09:36 PM ~ Mr. Moore Money funds county coordinators in repective quanities.
3:24:00 ~ 12/10/2007 12:10:08 PM ~ S. Nic the 22 million 80 percent to counties. They have expend3s 36 million. 59 percent of all monies went toward to link .
3:25:44 ~ 12/10/2007 12:11:52 PM ~ Sen N Please give us copies of WYOLINK On page 65 discuss what yhou may want us to footnote before distribute to counties. Make sure that everyone has operable systems.
3:26:48 ~ 12/10/2007 12:12:55 PM ~ Chris Third grant to to fund communications. We would have equipment available to first responders. Sent out to assist in case of disasters. Formulas have not been reached. As well as funding to the jWyoming depart of transportation.
3:28:27 ~ 12/10/2007 12:14:34 PM ~ S. Nic Is that part jof the jten millionf
3:28:39 ~ 12/10/2007 12:14:47 PM ~ Chiris Yes it is
3:29:00 ~ 12/10/2007 12:15:08 PM ~ S N Who determines jhow it is allocated what is match
3:29:26 ~ 12/10/2007 12:15:33 PM ~ Chris j It is a match
3:29:36 ~ 12/10/2007 12:15:43 PM ~ Sen N Do we want to footnote these funds
3:29:59 ~ 12/10/2007 12:16:06 PM ~ Chris j I would reserve that for the governor
3:30:13 ~ 12/10/2007 12:16:20 PM ~ S Nic We want to make sure that the wyolink wrorks and that the syste. Need footnote language so that we knkow every county works.
3:31:04 ~ 12/10/2007 12:17:12 PM ~ Chris Runs until 2010. I cannot answer on behalf of Wyolink.
3:31:35 ~ 12/10/2007 12:17:43 PM ~ Chkris
3:31:57 ~ 12/10/2007 12:18:05 PM ~ S Job Who is answering for Wyolink Who is that
3:32:22 ~ 12/10/2007 12:18:29 PM ~ Chris There is a committee out there I am trying to remember the acronym.
3:32:54 ~ 12/10/2007 12:19:02 PM ~ S. Nic Who is the best person Wydot person? Let him know we want an update
3:33:32 ~ 12/10/2007 12:19:39 PM ~ S Peterson We are not quite 50 percent completef
3:33:56 ~ 12/10/2007 12:20:04 PM ~ Mr. Moore I would defer to the D of Transportation.
3:34:18 ~ 12/10/2007 12:20:26 PM ~ R Philp I think that yu are right. Any further questions.
3:34:53 ~ 12/10/2007 12:21:00 PM ~ Chris There a couple that I have not mentioned. There uis a reduction 0052 and 53. The governor need to spend significant amount money thej crash on Interstate 80. Amount of money--wants to increase to 500,000.
3:36:40 ~ 12/10/2007 12:22:47 PM ~ S Nic jAre any o those expenses recoverable
3:37:01 ~ 12/10/2007 12:23:09 PM ~ Chris No. df
3:37:30 ~ 12/10/2007 12:23:37 PM ~ S Job Would that money come out of the contingency fund.
3:37:54 ~ 12/10/2007 12:24:02 PM ~ Mc Vay These dollars are not reloated to state services per sey That related where we aid in searches.
3:38:41 ~ 12/10/2007 12:24:48 PM ~ S. Job Is that defined?
3:38:52 ~ 12/10/2007 12:25:00 PM ~ Mc vay Yes
3:39:10 ~ 12/10/2007 12:25:17 PM ~ S Nic Give us what yu paid for consulting fees.
3:40:05 ~ 12/10/2007 12:26:13 PM ~ Roberts I have that available today. A summary. A data book that will come out in January. How to insure the uninsures. Mandates, pooling or subsidies. Rural health care,. Pilot project in Carbon county. Ruaral delivery system A demonstration.
3:41:41 ~ 12/10/2007 12:27:49 PM ~ S Meier We need to figure out a way to go across state lines
3:42:06 ~ 12/10/2007 12:28:14 PM ~ Roberts We would have to look aacross state lines
3:42:27 ~ 12/10/2007 12:28:34 PM ~ Meier Look at state line
3:42:45 ~ 12/10/2007 12:28:53 PM ~ Roberts 90,000 uninsdured. Mandate is an option.
3:43:14 ~ 12/10/2007 12:29:22 PM ~ RPhilpl Thank you
3:43:31 ~ 12/10/2007 12:29:39 PM ~ Chris. There is no standard budget. You should have received.;f
3:44:10 ~ 12/10/2007 12:30:17 PM ~ R Philp You might have to resubmit
3:44:27 ~ 12/10/2007 12:30:35 PM ~ S. Nic 901 series just for consulting.
3:44:43 ~ 12/10/2007 12:30:51 PM ~ Chris I don't know if is.
3:44:58 ~ 12/10/2007 12:31:06 PM ~ Ryan Lance The 1.5 million goes out in a variet of different ways . There are also dollars that are granted to AF for legislation. Lots of different folks
3:45:54 ~ 12/10/2007 12:32:02 PM ~ S Nic Is it a place holder
3:46:09 ~ 12/10/2007 12:32:16 PM ~ Ran Lance Endangered species act--just ja best guess for what we seew on the horizon
3:46:33 ~ 12/10/2007 12:32:41 PM ~ jS Nic
3:46:48 ~ 12/10/2007 12:32:56 PM ~ S Nic Need to let know where the money is going
3:47:08 ~ 12/10/2007 12:33:16 PM ~ Ryan Yes
3:47:14 ~ 12/10/2007 12:33:22 PM ~ R Warren What is referenced in the materials
3:47:34 ~ 12/10/2007 12:33:42 PM ~ Ryan They apply on three different grant jperiods. We review those. Award is given to budget office.
3:48:15 ~ 12/10/2007 12:34:23 PM ~ S Nic We don't appropriate at this level. What do we need to be doing?
3:48:40 ~ 12/10/2007 12:34:48 PM ~ McV We move money into new category
3:49:03 ~ 12/10/2007 12:35:10 PM ~ S Job. Grants in Aid question. Are there hard measures that they have to account for
3:49:33 ~ 12/10/2007 12:35:41 PM ~ Ryan They need to account for the money. Also reports that we receive jback. They talk about waht they d9d
3:50:18 ~ 12/10/2007 12:36:26 PM ~ S Job If they have made a difference--it should be visible and aaccountable. Are they doing that
3:50:55 ~ 12/10/2007 12:37:03 PM ~ Ryan Yes they are.j Example of east gate jclosure. We received a partial victory, Rawlins..Result of their comments have made changes. Glacial changes. We have seen movement.
3:52:07 ~ 12/10/2007 12:38:15 PM ~ Chris. Final item page 87-88
3:52:59 ~ 12/10/2007 12:39:07 PM ~ S nNc 1,3 you have intended to--not sure how you use section 600 for that type of work
3:53:57 ~ 12/10/2007 12:40:04 PM ~ Ryan We have funded pocket gopher...allows us the option of various species.
3:54:25 ~ 12/10/2007 12:40:33 PM ~ S Meier There is a difference what the game and fish does with this office.
3:55:01 ~ 12/10/2007 12:41:08 PM ~ Ryan The money is there for the governor's office for the political issue of the endangered species act. There lots of species that people want listed. This account is set up to respond to political lmotivation. As a result we will do the assessment and have it closser to this committee's jurisdiction
3:56:43 ~ 12/10/2007 12:42:50 PM ~ S Meier Is there any thing that can be developed betweenthe game and fish and the jgovernors office.
3:57:31 ~ 12/10/2007 12:43:39 PM ~ Ryan The 1.6 million was arrived at with the Gameand Fish. Make sure that we are not duplicatingl
3:58:29 ~ 12/10/2007 12:44:37 PM ~ Chris. That's all I have.
3:58:47 ~ 12/10/2007 12:44:55 PM ~ R Philp Discussion about lunch. Adjourned
3:59:34 ~ 12/10/2007 12:45:40 PM ~ Pause
3:59:34 ~ 12/10/2007 1:47:33 PM ~ Resume
3:59:34 ~ 12/10/2007 1:47:33 PM ~ Chairman
3:59:38 ~ 12/10/2007 1:47:37 PM ~ Chairman Philp called the meeting back to order Secretary of State Max Pat Arp and Karen Wheeler are with him Diverse agency, outlined all the funcitions he is responsible for has discovered that this is not like the auditor job that he recently left...pages 17 and 18 is his request right now it takes in over 26 mill with an operating budget of 6 million We should not be managing this much money with only one person who spends most of her day tabulating checks...we need funding for a position but not the position itself. We need to provide funding. Third exception is for technology and maintenance. In 2007 employed a large entity business--very popular program. We need funds now to do needed technology maintenance. this is one time funding not ongoing budget. Thank you Mr. Chairman.
4:04:30 ~ 12/10/2007 1:52:30 PM ~ Chairman Philp: Isd there more budget items you want to discuss.
4:04:51 ~ 12/10/2007 1:52:50 PM ~ Rep. Petersen: Question do you notice an imapct in your office with the position requests. Are you noticing an increase in collections etc.
4:05:58 ~ 12/10/2007 1:53:58 PM ~ Max: We are limited to five day turn around time ---very difficult to maintain. Just hasn't risen to the top of the scree. This rose to the top when we discovered how much time is being used....
4:06:53 ~ 12/10/2007 1:54:53 PM ~ Philp: We found that notaries can only charge up to $2.00...is that a good idea
4:07:19 ~ 12/10/2007 1:55:19 PM ~ Pat: That would not have much affect on our office. What they charge---we get no monies. It has been $2.00 for a long time.
4:07:53 ~ 12/10/2007 1:55:53 PM ~ Philp: I thought they told us it was $50.00---whatever..
4:08:08 ~ 12/10/2007 1:56:08 PM ~ Nicholas: You have asked for two positions or three?
4:08:22 ~ 12/10/2007 1:56:21 PM ~ Max: Want funding but no position and then...
4:08:50 ~ 12/10/2007 1:56:50 PM ~ Nicholas: So you will hire an AWAC for one year? Pat: The governor said he would want to try a pilot program and there are only so many positions that the state can have. We are trying to see if this pooling can work.
4:10:26 ~ 12/10/2007 1:58:26 PM ~ Nicholas: Will we see a reduction in A&I?
4:10:47 ~ 12/10/2007 1:58:47 PM ~ Mike: This may be a position that will reside in A&I--used to support salary for someone to work on state issues. This person may not spend 100% of their time supporting the secretary of state bu might also work for the audtior for example.
4:12:05 ~ 12/10/2007 2:00:05 PM ~ Nicholas: So I don't want to beat a dead horse but will we get the funding back from A&I?
4:12:33 ~ 12/10/2007 2:00:32 PM ~ Mike We would not collect those dollars from another agency.
4:12:48 ~ 12/10/2007 2:00:47 PM ~ Nicholas: You are not going to charge out those dollars? Will there be a savings to you?
4:13:10 ~ 12/10/2007 2:01:10 PM ~ Max: Do not have funding for that position--we have not expanded into that area. We welcome the opportunity to work with A&I to see if this job sharing can work.
4:14:00 ~ 12/10/2007 2:01:59 PM ~ Nicholas: Do you have the space already for this position?
4:14:15 ~ 12/10/2007 2:02:14 PM ~ Pat: We do not need additional space. They would be housed with us.
4:14:39 ~ 12/10/2007 2:02:38 PM ~ Nicholas: Mike, if we need to dedicate more space...do they not get it unless they aske for it?
4:15:01 ~ 12/10/2007 2:03:00 PM ~ Mike: What we try to do, not always successful---asking for additional position, and it requires space we have the agency ask for that in the original agency budget request.
4:15:55 ~ 12/10/2007 2:03:55 PM ~ Nicholas: Should we put in a footnote that no space can be granted unless the legislature approves?
4:16:49 ~ 12/10/2007 2:04:49 PM ~ Mike: I would be hesitant to agree to that.
4:17:00 ~ 12/10/2007 2:05:00 PM ~ Max: Currently we do not lease any space outside the capitol.
4:17:17 ~ 12/10/2007 2:05:17 PM ~ Chairman Philp: More questions?
4:17:28 ~ 12/10/2007 2:05:27 PM ~ Petersen: We had trouble with the bucking horse, any more queries or is it fixed?
4:18:00 ~ 12/10/2007 2:05:59 PM ~ Max: Ongoing issues. We have that mark so it is incumbant on us to continue to watch it or we will loose it. Our office continues to monitor it and we consider it a high priority.
4:19:02 ~ 12/10/2007 2:07:02 PM ~ Rep. Warren: I guess we are pod friendly, information of the joint corporations committee...will they need more positions?
4:19:46 ~ 12/10/2007 2:07:46 PM ~ Pat: We have been working with the joint corporations committee. There will be two new bills brought forward during the session....(She explained both) The first bill there will be a fiscal note and will be brought forward if the bill gets introduced. I think it is $250K the second bill there is no fiscal note.
4:21:19 ~ 12/10/2007 2:09:19 PM ~ Nicholas: I would like a copy of all your 900 budget requests.
4:21:41 ~ 12/10/2007 2:09:40 PM ~ Chairman Philp: Thank you for your time and patience.
4:22:09 ~ 12/10/2007 2:10:09 PM ~ Pause
4:22:09 ~ 12/10/2007 2:10:20 PM ~ Resume
4:22:11 ~ 12/10/2007 2:10:22 PM ~ Chairman Philp: Next budget is the State Auditor budget
4:22:42 ~ 12/10/2007 2:10:52 PM ~ Rita Meyer: Introduce Vickie Cogan and Susan Green, Tom Roe and Jeanette Beaman. Want to talk about three things before I jump into the budget. I just ask that if you have questions please stop me and I will attempt to answer. Gone from a mainframe to web based system. Quantum leap! Cost is built into our budget so I am not asking for any monies to support that. Better visibility over budgets. The budget table is updated instantaneously. Vendor bills are updated immediately instead of two times a ymonth like we did before. We have a user friendly system that shows expenses in real time. In addition I have made it a priority to show vendors...so tax payers know what contracts we are using. also we ware in the process of ...in 12 months we have ....checks in a year. 50K credit card transactions a year. Carolyn will taak about outreach...
4:28:15 ~ 12/10/2007 2:16:25 PM ~ Carolyn: We have been able to meet twice with the auditors concerning flexibility of receiving checks from us. EFT was the process. Very hard to determine how to distribute the funds. Now they have the option on how they receive their monies. Local banks are receiving some of the EFT payments...not all are able to accept. EFT payments are on the website. Good chance to work with our agencies and facilitate how they process the checks.
4:30:21 ~ 12/10/2007 2:18:32 PM ~ Rita: Button on website that allows us to educate the payments.In terms of outlook, trying to squeeze more out of ....certainly there is an opportunity to gain more effieciency. Try to get closer to paperless environment. Had to make some adjustments. We run a payroll advice that sends paycheck information to the employee. Significant cost with that. Opportunity to download w-2s and there is a high cost for the state if we continue to send this all out. 50cents per transaction for just the envelope and stamp...Add in the employee cost and you can see that it increases that cost dramatically. Payroll process is in the auditors budget and wonder if that is the right place. The other factor is what is being bought is implemented. As we move forward with the contract in the future we will be having these questions.
4:34:39 ~ 12/10/2007 2:22:50 PM ~ Nicholas: First time I have ever heard that confidence in A&I. How is it working?
4:35:07 ~ 12/10/2007 2:23:17 PM ~ Meyer: No longer problem. Our down time is minimal. Internet and groupwise downtime has dropped off significantly.
4:35:51 ~ 12/10/2007 2:24:02 PM ~ Vickie: We have essentially four types of contracts. Managed Services runs the payroll and financial systems. Not on any mainframe--worked on servers dedicated to the state of wyoming. Security audit being done . Covers the whole payroll systems. Payroll is paid for and the software. It is in the state auditors office. It is CTI began in 1980 which is a 30 year license. The license is a one time fee. STandard computer maintenance and essentially that is an update for the software. Based on current price. The other kind of contract is a essentially support services contract. Pay for professional assistance that is not covered in other contracts. Required by wyoming statutes. Take software and migrate it inot current update service.
4:40:08 ~ 12/10/2007 2:28:18 PM ~ Nicholas: Becky, the CTI contracts are about 12 mill for the biennium?
4:40:35 ~ 12/10/2007 2:28:46 PM ~ Becky: 8 mill going out to the contract We have negotiated that down 400K then we also pay for support services and paying for them on a case by case basis. That expenditure has average 600K per year. One exception....
4:41:54 ~ 12/10/2007 2:30:04 PM ~ Nicholas: When you are hosting 8.9 mill what is the off site that we funded last year?
4:42:17 ~ 12/10/2007 2:30:28 PM ~ Becky: 8.8 mill for the hosting---facility was there but operated off cgi system now it is off a web based. It was off site but now it is housed in the auditor office. Disaster recovery site is now available. The number of operations are almost doubled.
4:43:37 ~ 12/10/2007 2:31:47 PM ~ Nicholas: What part of these services do you intend to send to A&I?
4:43:55 ~ 12/10/2007 2:32:06 PM ~ Becky I think I will let auditor Meyer...
4:44:14 ~ 12/10/2007 2:32:25 PM ~ Meyer: I wan't referring to the fact that they will keep this in house. Looking to have the negotiation take place....
4:44:52 ~ 12/10/2007 2:33:02 PM ~ Nicholas: What are you evaluating what can be brought back to Wyoming in the future.
4:45:14 ~ 12/10/2007 2:33:24 PM ~ Meyer: Not sure what will reside her...not sure if it will be a good fit....set with this contract for three more years.
4:45:49 ~ 12/10/2007 2:34:00 PM ~ Philp: Any more questions?
4:45:58 ~ 12/10/2007 2:34:09 PM ~ Meyer: Vickie has spent more than 70% of her time on this process...much smarter moving forward.
4:46:30 ~ 12/10/2007 2:34:41 PM ~ Nicholas: This is a huge contract. Are we getting our bang for our buck? Did you get a good deal?
4:46:53 ~ 12/10/2007 2:35:04 PM ~ Meyer: Very impressed with CGI performance, less happy with how the costs keep coming at us. Vickie has done some hard core negotiations. Not a lot of technology firms that work with government. I am happy with what they provide.
4:48:05 ~ 12/10/2007 2:36:15 PM ~ Berger: Your agency going through the revamp of this wolf process. Has there been discussions....
4:48:36 ~ 12/10/2007 2:36:46 PM ~ Meyer: We have talked about us on our staff....I think there is still a patchwork quilt...many modules that CGI has that can increase our capabilities. Pushing hard to make sure that that happens.
4:49:42 ~ 12/10/2007 2:37:53 PM ~ Philp: Further questions? I guess we can go through your budget.
4:50:07 ~ 12/10/2007 2:38:18 PM ~ Meyer: 2 mill exception request. I will let Vickie explain that.
4:50:28 ~ 12/10/2007 2:38:39 PM ~ Vickie: The first request on page 12 upgraded support services. Trying to put them into a package so we ar aware of what they actually provide. That essentially is what the upgrade is. It is a tiny bit less than what has been spent in the last four years. This is the common fee charged and it is essentially established by the software provider. The fees have been artifically low because the software provider ...that discount expired right when the new administration took over. The discount will be halved...we refused to lock into any contract through 2011.
4:53:38 ~ 12/10/2007 2:41:49 PM ~ Rep Jones: Your request is on page 13 and that will be lowered by $400K that request for 292 will be lowered to 300K?
4:54:39 ~ 12/10/2007 2:42:50 PM ~ Vickie: That is correct.
4:54:51 ~ 12/10/2007 2:43:01 PM ~ Nicholas: I am not surprised that Jones discovered it before me.
4:55:12 ~ 12/10/2007 2:43:23 PM ~ Vickie: I think auditor Meyer doubled that for effect....
4:55:35 ~ 12/10/2007 2:43:46 PM ~ Vickie: itc for computer technology. Modification for basleine software. Bulk of this request is for modification to address cost accounting. And accounted for to the federal government. It also would make it much easier for the state auditor on revenue and expenditure....The rest of that request is for a potential modification..certification is required for travel refund requests. Electronic syustem---would like to have an online modification.
4:57:58 ~ 12/10/2007 2:46:09 PM ~ Jones: Does that mean one time funding?
4:58:10 ~ 12/10/2007 2:46:21 PM ~ Vickie: That is correct---one time expense for building the software. When we do custom modification it is included in the package....
4:59:01 ~ 12/10/2007 2:47:11 PM ~ Nicholas: Vickie when you negotiate how do you know if you are getting a good deal. Do you look at other vendors.
4:59:31 ~ 12/10/2007 2:47:42 PM ~ Vickie: Not so good at that. Essentially we are under a 30 year contract. Looking as far across the industry as we can to see if these costs fit. Very comprable fees but hard to determine how they determine what the current cost of software really is.
5:00:35 ~ 12/10/2007 2:48:45 PM ~ Nicholas: Does the 30 year contract expire in three years?
5:00:49 ~ 12/10/2007 2:49:00 PM ~ Vickie: No that is the licensing agreement. No set standard fee. Licesning agreement is 30 years--expires in 2019, hosting is five years and will expire 2011, if we enter into the support service agreement we are trying to enter into two years but may have to enter in longer----package of services you get the lower the rate. That is what we have done. 2011 is the huge contract.
5:02:59 ~ 12/10/2007 2:51:10 PM ~ Meyer: That would require some lead time to negotiate a different contract.
5:03:19 ~ 12/10/2007 2:51:30 PM ~ Vickie: The contract has extreme termination fees.
5:03:56 ~ 12/10/2007 2:52:07 PM ~ McVeigh: The governor has asked for a reduction in some of thecontracts. Game Fish recoupment....various exemptions...made to state auditor ...2007 appropriation request. Game and Fish gave some additional information that indicated that change.
5:05:42 ~ 12/10/2007 2:53:53 PM ~ McVeigh: Appropriation for the health seems to be tracking pretty well. Look at bottom of page 23 but
5:06:31 ~ 12/10/2007 2:54:41 PM ~ nicholas:
5:06:35 ~ 12/10/2007 2:54:46 PM ~ McVeigh: We have two pools of individuals...one group that is retired or who will be retiring before the end of this biennium the second pool who will retire after the 2009/2010 budget. Built standard budget that added a .....general fund...intended to not deposit into an interest bearing account. Start building a fund that would become self funding...group and health plan...should have report in early January..preliminary thinking is....
5:08:39 ~ 12/10/2007 2:56:49 PM ~ Nicholas: 1% becomes actually supported...
5:08:53 ~ 12/10/2007 2:57:04 PM ~ McVeigh: If we collect 1%...if the fund can earn interst that 1% will be reduced over time...intention is that allowing that account to earn interest it will over time support itself.
5:09:48 ~ 12/10/2007 2:57:59 PM ~ Nicholas: Staying in the plan..
5:09:59 ~ 12/10/2007 2:58:10 PM ~ McVeigh: The graying of the state employees...health insurance plan...more likely to stay in the plan...wont hold employees out to be actuairy.
5:10:36 ~ 12/10/2007 2:58:46 PM ~ Nicholas: If 1% works we should put it into schools as well. This currently applies to ....but not anyone currently outside the state health plan.
5:11:27 ~ 12/10/2007 2:59:38 PM ~ McVeigh: Evaluation of the system...he agreed to do that.
5:11:43 ~ 12/10/2007 2:59:54 PM ~ Nicholas: Ask Ralph to see if we can do it for the schools. Expand it state wide.
5:12:10 ~ 12/10/2007 3:00:20 PM ~ Meier: Essentially you are just setting up an interst account?
5:12:28 ~ 12/10/2007 3:00:38 PM ~ McVeigh: Right now when the auditor runs payroll, this would simply be another account--"trustfund" that would be there to pay future benefits.
5:13:10 ~ 12/10/2007 3:01:21 PM ~ Meier: I am just wondering if there should be a footnote that would have to be revisited each year.
5:13:42 ~ 12/10/2007 3:01:53 PM ~ McVeigh: You are right we would need some language fior this year.
5:14:04 ~ 12/10/2007 3:02:14 PM ~ Sommers: Mike is right we need to put something in the budget this year for the next two.
5:14:24 ~ 12/10/2007 3:02:35 PM ~ Meier: Just went through a whole retirement discussion today. I agreeed with all the assesment--the right way to do it--but we want under 100K.......Don't disagree that we should do it but...why we should do....and now we are jumping on this bandwagon...go ahead and have the full discussion...the right way to do it. Raelyn could probably give us a good discussion of how it should be done. We can't pay for COLA and we are talking abut paying for health benefits. We are adding another program and the state will pay and we can't pay for COLA.
5:17:06 ~ 12/10/2007 3:05:16 PM ~ Nicholas: When you say you have made a 1% assessment on employers.....
5:17:31 ~ 12/10/2007 3:05:41 PM ~ McVeigh: Refer you to page 18 of the auditor's budget...that's where the money shows up.
5:18:06 ~ 12/10/2007 3:06:16 PM ~ Nicholas: How much?
5:18:12 ~ 12/10/2007 3:06:23 PM ~ McVeigh: Including all the impacted employees 10.3 mill of that the general fund is 7 mill.
5:18:52 ~ 12/10/2007 3:07:02 PM ~ Nicholas: On top of that would be 3.....
5:19:04 ~ 12/10/2007 3:07:15 PM ~ Mcveigh: That is correct. If we begin the 1% what would it cost if we add school teachers?
5:19:32 ~ 12/10/2007 3:07:42 PM ~ McVeig: Don't even have the info available.
5:19:46 ~ 12/10/2007 3:07:57 PM ~ Nicholas: Where would we go to get it?
5:19:55 ~ 12/10/2007 3:08:05 PM ~ McVeigh: Probably Brenda in LSO.
5:20:09 ~ 12/10/2007 3:08:19 PM ~ Nicholas: Not sure we understand it well enough to write a bill. Niholas: Need to maintain a list for interim study. Put down one percent for employee health, 2nd Apply to school districts next. Steve can you put together a footnote?
5:21:34 ~ 12/10/2007 3:09:45 PM ~ Sommers: Yes.
5:21:40 ~ 12/10/2007 3:09:51 PM ~ Meyer: Is that not driven by the ....calculate non pension benefits...I think that is part of this whole discussion.
5:22:22 ~ 12/10/2007 3:10:32 PM ~ McVeigh: It is. The reason I sugest this approach...should we ever want to issue bonds....not on a pay as you go basis.
5:22:50 ~ 12/10/2007 3:11:00 PM ~ Nicholas: I think this is a good thing for us to get. We can have that discussion later.
5:24:35 ~ 12/10/2007 3:12:46 PM ~ Nicholas: Mr. Chairman you are now on page 29.
5:25:01 ~ 12/10/2007 3:13:11 PM ~ Philp: Do we need a footnote?
5:25:10 ~ 12/10/2007 3:13:20 PM ~ McVeigh: We have gone to 300.
5:25:22 ~ 12/10/2007 3:13:33 PM ~ Meyer: 8.5 million is still in there for the remaining biennium.
5:25:48 ~ 12/10/2007 3:13:58 PM ~ Philp: Any questions on that?
5:26:00 ~ 12/10/2007 3:14:11 PM ~ Philp: Moving on to Medicaid reserve. Kind of the same thing.
5:26:17 ~ 12/10/2007 3:14:28 PM ~ McVeigh: I am thinking i should be on Rita's payroll. Per the governor we want pandemic flu funding and....
5:26:44 ~ 12/10/2007 3:14:55 PM ~ Nicholas: I think that footnote..
5:26:52 ~ 12/10/2007 3:15:03 PM ~ Sommers: started out with...governor said would not need the full 39 mill
5:27:17 ~ 12/10/2007 3:15:27 PM ~ McVeigh: Take the 39 mill down to 23 mill. Pandemic flu was 5 mill and we have spent....for ,,
5:27:48 ~ 12/10/2007 3:15:59 PM ~ Nicholas: And this was with the footnote that that could not be changed without legfislative approval.
5:28:13 ~ 12/10/2007 3:16:24 PM ~ Meier: The program for the 911 commission and the money out there was slush fund throughout the state could they use fthat for the pandemic flu.
5:28:51 ~ 12/10/2007 3:17:02 PM ~ McVeigh: Joe Meyer was talking about homeland funds...don't know that we can use that to buy flu shots.
5:29:29 ~ 12/10/2007 3:17:39 PM ~ Meier: No not that...emergency situations...if we could check in on that...double funding that.. Would like to have that double checked.
5:30:03 ~ 12/10/2007 3:18:13 PM ~ Warren: On the market adjustments..now 8.5 instead of 10. I thiought we would have our salaries comparable to other states. Is that what this market fund is in reference to?
5:30:54 ~ 12/10/2007 3:19:05 PM ~ McVeigh: I will take a stab at that. Last market adj was 2006 we are just now doing 2007 my staff is now handing out some of that money. That simply takes as best we can that we have for any position and employee has 2 or more years. we move them to the market leverl
5:32:07 ~ 12/10/2007 3:20:18 PM ~ Warren: How come there is so much money there?
5:32:20 ~ 12/10/2007 3:20:31 PM ~ McVeigh: Part of the reason is that we have made a great deal of........Caught us up significantly this last fiscal year we were able to give 5.3%. Some positions the market does not change in fact some have gone down...all that results in to we have not spent everything you have appropriated to us.
5:33:54 ~ 12/10/2007 3:22:04 PM ~ Warren: Perhaps we could take some of that money and put it into the Wildlife trust Fund....
5:34:25 ~ 12/10/2007 3:22:35 PM ~ Petersen: Convulted at least...how do you handle it?
5:34:43 ~ 12/10/2007 3:22:53 PM ~ Meyer: It is just housed in the auditors office but I do not make decisions on how it is drawn down.
5:35:17 ~ 12/10/2007 3:23:28 PM ~ Meier: How it is invested?
5:35:25 ~ 12/10/2007 3:23:36 PM ~ Meyer: Housed in the treasurer's office.
5:36:00 ~ 12/10/2007 3:24:11 PM ~ Chairman Philp: Any other questions? Thank you for your information
5:36:20 ~ 12/10/2007 3:24:30 PM ~ Meyer: We are reaching out to you and your agancies.
5:36:42 ~ 12/10/2007 3:24:52 PM ~ Job: Quick question,.....is this the program you are talking about
5:37:22 ~ 12/10/2007 3:25:32 PM ~ Sommers: I have a two volume set that I will bring down for your review.
5:37:39 ~ 12/10/2007 3:25:50 PM ~ Philp: Want a quick break. Come back at 3:40 p.m.
5:38:04 ~ 12/10/2007 3:26:13 PM ~ Pause
5:38:04 ~ 12/10/2007 3:41:29 PM ~ Resume
5:39:54 ~ 12/10/2007 3:43:19 PM ~ Meyer I will tell you if you wish. There is an amount not needed because college invest is run out of a firm in Colorado. Could be placed into the Hathaway fund.
5:40:51 ~ 12/10/2007 3:44:16 PM ~ Sen Nic kAre these actually dollars paid out.
5:41:08 ~ 12/10/2007 3:44:34 PM ~ Sharon They were not marketing the program the way that we had agreed upon and that is what the settlement $ were for.
5:41:44 ~ 12/10/2007 3:45:09 PM ~ Meyers Coy of letter to select committee and am ready to appoint another advisory commiteee. I will use internal funds if members need it. I will know before the budget session what funds need to be paid . Cost from generall budget. There was an advisory committee from interested groups affected by tresurers office. Two investment types and Wyo Star programs and not affected by sub prime melt down. My vision would be that they would receive quarterly reports. Two meetings a year to allow lmore public input. Finally, you a copy of sveral changes to state investment policies. Those will be available to committee.
5:45:04 ~ 12/10/2007 3:48:29 PM ~ Sen Nich What do you understand about unrealized gains.
5:45:34 ~ 12/10/2007 3:48:59 PM ~ mMeyers Sharon has that information. Unrealized gains and losses infro that she has given to Steve. If you would like these to be passes out for further discussion.
5:46:24 ~ 12/10/2007 3:49:49 PM ~ Sharon The pages that meyers is refering to will show projected income. The amount that would flow back to corpus over 80 million is 66 million. Will flow back. That would leave an ending balance 101 million plus . l The income projection is over the projected 75 percent would remain and the over amount would jflow into the copus. In Hathaway we are projecting income of over 3 million--thus nothing back to corpus. We project the higher education fund woild be fully funded by the end of this fical year.
5:49:11 ~ 12/10/2007 3:52:36 PM ~ Sen Nic Are there additional gains to be accounted.
5:49:31 ~ 12/10/2007 3:52:57 PM ~ Newman Steve is making copies of this piece of paper. Should wait. Can we get a copy of the protfolio.
5:50:49 ~ 12/10/2007 3:54:14 PM ~ Sen Nic What are yur interesst rate returns on the funds.
5:51:12 ~ 12/10/2007 3:54:37 PM ~ Meyers one year common school 13.9 percent five year. Those are the main ones State agency pool etc
5:52:02 ~ 12/10/2007 3:55:27 PM ~ S Nic Are those combined?
5:52:16 ~ 12/10/2007 3:55:41 PM ~ Meyers yes
5:52:31 ~ 12/10/2007 3:55:56 PM ~ Sen Nic What kind of return on retirement fund?
5:52:45 ~ 12/10/2007 3:56:11 PM ~ Meyers I don't have it. There tend to be more unbalanced loss and gain. State 50 50.
5:53:21 ~ 12/10/2007 3:56:46 PM ~ S Nic Are you on the reitirement board Don't yu know
5:53:51 ~ 12/10/2007 3:57:16 PM ~ Meyer I'm not sure. Micael justj gave me the one on Sept 30th.
5:54:26 ~ 12/10/2007 3:57:51 PM ~ Newman If you turn to page 14 of the report. On page 14. This the perfrmance report from our investment report. by fund of jpge 14. j jPages 15-17 give you performance by pool. Turn to page 18-19 and gives you report by manager. Back to retirement. jl The treasurer sits on the retirement board. The jretirement syst3em. The state is limited in equity funds. The retirement system has no restrictions. They are running awt 70 percent. That can affect managers report. 14 percent for the jlast year. If you look at permanet five year fund is 9 percent and five year for total retirement is 14.3 percent
5:57:53 ~ 12/10/2007 4:01:18 PM ~ S Nic You have expressed concern, but those figures show they are doing ok. People are getting jhigher wages.
5:58:40 ~ 12/10/2007 4:02:05 PM ~ Meyers I found out that I have not played a rle in that . The difference between the state portfolio. They average3 over five years. One year a sub par peformasnce. That happenks with market cycles. it jcan vary. State is long term holder. Retirement is what you can pay out in the future. The other question that I have had, discussion, their jrebalancing policy--that acuary projection will tell you one thing and willl tell you to diversify. Therefore, the retirement system doesn't recapture as much. There are companies that do an overview. The question that advised if yu are going to do that sort of thing...that kind of depth of oversight. Several retirement system. If you get asked for a large sum of money, you need to know. I am not violating any confidences. If that is the only way, that's find, There are some states that jrequire within that braoad framewoerk--before you put up 38 million dollars. I am stuck with two duties and that is where we are dright jnow.
6:03:51 ~ 12/10/2007 4:07:16 PM ~ S Meier Ray and AI sit on the retirement board. You will get the exact figures on Wednesday. We are trying to give a 3 percent COLA. We have looked at a bill as to how fast we have to move on this. I don't agree with everything the retirement board does--we will probably get the study and we will lose a year and we will have to pick up the states contribution. Even with jmassaging. We are going to have to go for j2 --need to get the balll rololing to see how high we have to go,. We assdume jan 8 percent return. Looking at things there may be changes . It is good to look at it and if we wait we could be carged without doing anything. There is a problem that we have not been able to keep up with inflation. We have some ideas on how to fix it and have a review at the same tiem.
6:07:44 ~ 12/10/2007 4:11:09 PM ~ Meyer I talked to the governor, you culd probably get an overview done to avoid a delay. I agree with what Sen Meier to ffocus on putting some money into an account...put a periodic increase in contribution.
6:09:28 ~ 12/10/2007 4:12:53 PM ~ Sen NIc Talk to us about
6:09:45 ~ 12/10/2007 4:13:10 PM ~ Newman We invest in equities and fixed incomes. They are pools in which we invest money. Our internal fund. Buy bonds for funds. Externally managed. Tthe numbers you are referring to when you get to the middle of the page. Those are our large equity magangers. So those as the treasdurer referred to. We look at balancing. That is what we looked at in July with State Street to bring more in line withj long term goals. We aalso realized capital gains.
6:12:04 ~ 12/10/2007 4:15:29 PM ~ Meyer Index Fund not managed for gains or loss. The remaining actively manage. We have visited with all the people. How you manage in a down market. Almost done with it. We will know in few months which work better. The question I asked--what is your strateg? They take the most gain off the table and continue the dame as we would do with an index fund. I want to know when hyou have this thype of profit--are you managing to the bench mark. Will take the large jgainers and give us the capital gains back.
6:14:56 ~ 12/10/2007 4:18:22 PM ~ S Nic There is an unrealized gain. At any given time yu will have significant gains--to take jgains at a fixed times... there will be unrealized gains. Why is the leggislature being jasked to sell unrealized gains.
6:16:05 ~ 12/10/2007 4:19:30 PM ~ Meyer I won't ask any one to take excess gain. Half hyour money is from dividentds and gains. If hyou were to at the jmarket, with rebalanacin. A couple of years ago capital loss. Paper gain or loss until hyou take one or the other. Sell one and jput it into another. Your capial gains have to go . Cannot be regained. Percentage. Just the differenace in operation. Here is how our system works. Five elected officials weigh if it too far over or too far under. From new money comes in and then reinvest.
6:19:02 ~ 12/10/2007 4:22:27 PM ~ S Nic The governor's message--perhaps we could regoggnize and capture before they hit jthe reserves. We could raise the jcap on the spending cap. I am sdtruck by Sharon's projections--they take alll lthe unrealized..this is the type of income that we could have. If it is an extrodinary event.
6:20:53 ~ 12/10/2007 4:24:18 PM ~ Meyer What we have said we cannot project what capital gaions that hyou will get. We are overwiehted..money will come in on capital gains nothing we can project. I would not count on the flow next year. What I can asure is that they have too much money. Want to see yhour protfolio...what is your strategy and take some joff the table. It has nothing to do
6:22:41 ~ 12/10/2007 4:26:06 PM ~ S Nic I ssee that it of interest of unrealized gains. Needs to sell billions to get gain---what does it have to do with perdiciting the future. Mineral Trust fund more jacurate.
6:23:51 ~ 12/10/2007 4:27:16 PM ~ Meyers Might want to put capital gains back into corpus. You are getting 170 million in royalties. It is the automatic spillover. There is jan automatic spillover. You do whatever you feel comfortablle with. The reserve account. That corpus will remain there. I have told you how the system operates
6:25:12 ~ 12/10/2007 4:28:37 PM ~ S Nic Right now we are jprojected to jput 66 million back iinto the corpus. Your office projects that there will be no returrn. You are not going to see any of these. the notice is that we would do something this year. Should we try to recognize some of these gains. Is yhur office saying that don't recognize these gains utntil the session is over. That would be recognized over 5 or 10 years.
6:27:26 ~ 12/10/2007 4:30:51 PM ~ Meyers. You are talking about unpredictable situation. That's a fact that it goes into certaiin funds. What does five years mean or five jpercent. I have no other major points to make
6:28:36 ~ 12/10/2007 4:32:01 PM ~ S Job What have we done with the unrealized gains and losses...what is different than what has jdone in the pst years?
6:29:18 ~ 12/10/2007 4:32:43 PM ~ Meyer What you take off to the table goes into funds--put money back into the corpus. jI am not propsing anything different. I am not propsoing anything now.
6:30:18 ~ 12/10/2007 4:33:43 PM ~ S Nic In governors message the goverrnio talkked about jlegislative jreserve account... Should we raise. Right now we do not have a savings jccount. Maybe we could make some fby capturing thej capital gains. So the policy still works. When I had that discussion I did not jkunderstand the jnature of the unrealized captured gains. Rather we ought jto be tinkering with the junrealized gains. We have to decide we all need to decide upon the governor's recommendation. The dollars once they exceed the jfund.. then can be recaptured. My sense is that it jwill not happen
6:33:04 ~ 12/10/2007 4:36:30 PM ~ Meyer I would like to see capital gains and put into growth. Gov said jbefore you spill over --need to cap that. It would not occur util the jgov and legislature needs to give the ok. It should have nothing to do --this money may go over this time to build up so ---it will wbe hyou gutys decision.
6:34:56 ~ 12/10/2007 4:38:21 PM ~ R Berger I would jlike a clarification 2001 8% yo 5%.
6:35:22 ~ 12/10/2007 4:38:47 PM ~ Meyer The experts did not turn out to be true.
6:35:46 ~ 12/10/2007 4:39:11 PM ~ Sharon 8% was decided on because the state was spending every dollar. The income of the state waqs much betyter then we could step down to 5% and jwe have remained at that 5% level.
6:36:57 ~ 12/10/2007 4:40:22 PM ~ R Philp Start through budget.
6:37:18 ~ 12/10/2007 4:40:43 PM ~ Sharon I am willing to g through page by page. Turn to page 3. jgThat is the summary of the budget. Standard request and the agencies ...the governor has made recomendations for additional funds. Five seprate.....
6:39:13 ~ 12/10/2007 4:42:38 PM ~ S. Nic We work the budget is to go throughthe jecceptions request.
6:39:36 ~ 12/10/2007 4:43:01 PM ~ Sharon. Exceptional Need 400,000 dollars for increase of fees dReplace 4 PCs and upgrades to software. replacing a server. The gov rec is to decrease. Independent review of the retirement system.
6:41:48 ~ 12/10/2007 4:45:13 PM ~ S Nic You have had a change of heart.
6:42:05 ~ 12/10/2007 4:45:30 PM ~ Meyer. One legislator was concerned that the eleacted officials turn over for long term stability. Train present jemployees. It would be diifficult to back out. Michael sits on top. A position or two--the jlong term stability is training the employees. He does need a back up athat the organization to grow.
6:44:15 ~ 12/10/2007 4:47:40 PM ~ S Nic Did you not replace a position? Are jhyu lookjing for a back up for Michael
6:45:01 ~ 12/10/2007 4:48:26 PM ~ Sharon We are looking for an assistant for Michael to ffill ltlhat position.
6:45:32 ~ 12/10/2007 4:48:57 PM ~ Sen Nic What if newman get hit by a truck?
6:45:50 ~ 12/10/2007 4:49:15 PM ~ Newman The position was made Garland became deputy I was then hired to become cheif investment officers. The position is nothing like Garland's. We jhave adopted a team approach. There is an overlap with a couple of the divisions. The banking fall under my pevue. I balance with state's check book.l The complexity of the jfinancial situation of the jstate has jgrown. If there would be a back up Sharon is sitting next to me. I supervise that. The last three years has rmeined the same jsized and the jportfooio has increased.
6:49:08 ~ 12/10/2007 4:52:34 PM ~ Meyer The maturation of the jinvestment jpolicy. Michaelo more so than me. Sharon could do that but she is busy with lots of other things. Cheyenne capital and other operations. What I see is firming it up.
6:50:52 ~ 12/10/2007 4:54:17 PM ~ Sharon Turn to page 16 the veterans tax exemption. We receive the information from the counties. There were some changes in the 2007 session. It eliminated those who were no longer elgible. When we received the request from the department of revenue we had a shortfall. We are asking for the shortfall--short for 900,000 need it immediately.
6:53:05 ~ 12/10/2007 4:56:31 PM ~ S Nic The standard budjet will not be able to handle it.
6:53:31 ~ 12/10/2007 4:56:57 PM ~ Sharon. We received 07 08 bieniuim. We are short from the 07 08 budget. We are not asking for any more money. We should have sdufficient mkoney.
6:54:39 ~ 12/10/2007 4:58:04 PM ~ S Meier Now I am confused There is not enough
6:55:07 ~ 12/10/2007 4:58:32 PM ~ Sharon 3.2 million has been granted--appropriation was shor in the 07 08 budget. We did not ask for that and would come back in the supplemental budget.
6:55:57 ~ 12/10/2007 4:59:22 PM ~ Meyer. We are asking for 900-,000 to pahy counties. In this budget, we
6:56:45 ~ 12/10/2007 5:00:10 PM ~ S Meier I am trying to figure out what the tax exemtion for the jelderly and one way we could go abut it. Where can I get that number.
6:57:35 ~ 12/10/2007 5:01:00 PM ~ Sharon We usually go to thej dept of revenue.
6:57:46 ~ 12/10/2007 5:01:11 PM ~
6:57:48 ~ 12/10/2007 5:01:13 PM ~ R Harshman You may be jcomimg back to ask for more like 3 million or more.
6:58:19 ~ 12/10/2007 5:01:44 PM ~ S Nic Question is how long that group stays that large.
6:58:41 ~ 12/10/2007 5:02:07 PM ~ Sharon Manger payment. Fees are based on the percentage of market value of asset being magaged. You will find a breakdown of the managers fees. j We currently in our budget asking for an additional 4 million plus. These are estimates. If we need it to spend it
7:00:43 ~ 12/10/2007 5:04:08 PM ~ R Petersen How long are these contracts?
7:01:05 ~ 12/10/2007 5:04:30 PM ~ Sharon The state loan and investment board hires them and ithey are long term. The fees are negotiated. The investment managers are monitored. Quarterly investment jreporss--will ask to be replacesd. Can terminate w 30 day notice.
7:02:20 ~ 12/10/2007 5:05:45 PM ~ S Meier When everyone knows hat the budget is does that put you at a disadvantage with this. Competition as good as it used to be. You are at a 50 % increase. I thinnk they would be
7:03:24 ~ 12/10/2007 5:06:49 PM ~ Newman Two thins. Our managers are in place and we donn't anticipate and jRFP in the near future. Fees negotiated and we keep them as low as we can. We know what other people have paid. Second pint. Our porttfolio has grown and that aaccounts for the increase. Build budjet thinking about incsrease.
7:05:08 ~ 12/10/2007 5:08:33 PM ~ Meyer We have fired five who did not meet bench marks. If they are still making hyu money over the index. There are indexes--the most expensive look--these two firms might be indicator that they are worth it as opposed to index
7:06:35 ~ 12/10/2007 5:10:00 PM ~ R Philps Next one
7:06:56 ~ 12/10/2007 5:10:21 PM ~ Sharion Indian motor vehicle tax exmptions according to statutes --came in higher and need imlmediately.
7:07:46 ~ 12/10/2007 5:11:11 PM ~ Philps Anhy futher questions
7:07:56 ~ 12/10/2007 5:11:21 PM ~ Warren How much was the state affected by the jsub prime mortagage.
7:08:28 ~ 12/10/2007 5:11:53 PM ~ Newman We have constant communiication. When the subprime hit--bringing it today--headlines from the state of Florida. They pool money. When the articles came jacross, the Florida manages most of the money--essentially they had a run on the bank . the week that that happen. We let our folks know that there was no exposure to sub prime--alll were AAA rated--that was two weeeks ago. l And there will be a more expanded reply. It was a chance to survey our managers. Mainly they described and recapped the situation. We do have some exposure. The primary ofjective to protect corpus and make some money to give to public schools. State statues. Our investment policy follows that. Some minimal exposure. The credit is too hight.j Some bank papers are held and some banks not doing well. State's investments are safe and sound. 3% exposure at most.
7:13:48 ~ 12/10/2007 5:17:13 PM ~ R Berger What is a long term contract?
7:14:16 ~ 12/10/2007 5:17:41 PM ~ Newman Ten plus years. Mangers need that to develop good relationship. We measure with guidelines and can be evaluated over a market cycle. Some have not been with us jlong enough to measure it. Some things can precipitate like but the team lelft the firm to form their own firm--movedd with investment team
7:16:26 ~ 12/10/2007 5:19:51 PM ~ S Meierj Capitaql gains and name of firm?
7:17:09 ~ 12/10/2007 5:20:34 PM ~ Newman The name of the firm changed.
7:17:21 ~ 12/10/2007 5:20:46 PM ~ R Phillps Do hyu have any additonal comments. We are ajdjourned.
7:17:52 ~ 12/10/2007 5:21:16 PM ~ Pause
7:17:52 ~ 12/10/2007 5:24:19 PM ~ Stop Recording