File name: JAC Budget Hearings FY 13-14_20120112_081113.dcr Folder: C:\Documents and Settings\HAppropriations\Desktop\Recordings 14 ~ 1/12/2012 8:17:34 AM ~ Nicholas: Chairman of the Day 22 ~ 1/12/2012 8:17:42 AM ~ Boswell: Introductions Rory Horsley, Administrators, Buck McVeigh is retiring. 2:31 ~ 1/12/2012 8:19:50 AM ~ Boswell: SS A&I Agency 006, 006A and B, Very few general fund rquests in A & B, only 2. Board are stewards of theri own funds, require legislative approval, Reports in in box, 600, 900 series expenditures for 11/12 bienium, impact of federal funds cuts, 10 year employment history which is relatively constant, number of AWAC employees has had wide swings because of newspaper project through the library, 6:37 ~ 1/12/2012 8:23:57 AM ~ Boswell: document outlining proposed cuts, 2, 5 and 8 % cuts. Quick rundown; Will reach the 2 and 5% standard general fund cuts. 8% cuts involve elimination of vacant position, move to reduce my own salary, property, 4 filled positions, one from Central mail would be eliminate, facilities operations (janitorial staff), janitorial and utilites appropriations, construction management position, 50,000 in contractural, drop in real property rental. Hathaway probably ready at end of 2013. Reduce intern funding duget by 50%, bad message to eliminate it, agencies can hire their own, eliminate standard budget amount for work with the Hay Group, may have to contract with them in the future. elimination of WEST program. That program initiated in last year, one person in the program. Identifies position tied to person by name. 11:26 ~ 1/12/2012 8:28:46 AM ~ Von Flatern: What document? 11:36 ~ 1/12/2012 8:28:56 AM ~ Nicholas: Thumb drive document 11:46 ~ 1/12/2012 8:29:06 AM ~ Nicholas: New Governor's budget,: What is total operating budget range? Not a significant increase to the operating budget. Exception requests form of one time, similar reductions to the standard to balance overall 12:44 ~ 1/12/2012 8:30:03 AM ~ Nicholas: 4 or 5 % increase in health. Brett, operatin increases what is the total dollar amount, one time and operating 13:17 ~ 1/12/2012 8:30:37 AM ~ Jones: Not immediately available, Governor proposed overall, reduction in standard budget, one time funding exception request. 13:57 ~ 1/12/2012 8:31:17 AM ~ Nicholas: Department of Health. Makes no sense to give increase then take it back. Beginning place should be flat line. If serious can not afford increases, makes no sense. Will hear about Cregg tomorrow. Gas prices down, we know impact. Figure out realistically wehre we are. What happens if we flatline everybody. Demand for highways. Ask your budget staff to think about flat line. If we flat line, future decreases; 2 to 4% decreases for supplemental budget, 8% total for the next biennium. Each agency meet with legislative committee to discuss cuts. Joint discussion. Health would meet with labor oversite committee. Bound by CREGG estimates What do you think is best way to forge forward these big issues and bring budget in line with our revenues? 18:43 ~ 1/12/2012 8:36:03 AM ~ Boswell: Any across the board hold the line calculation must keep in line political realities of budgeting. Have exception requests while proposing reductins in the standard. Suggestion accomplished by meetins and dialogue. There is enough time to do this in next few days. Not sure under way yet. Question of CREGG numbers will significantly change how people look at this budget. Excpectation of prices rebounding is eroding. Need for talks about this in off camera setting. 21:09 ~ 1/12/2012 8:38:29 AM ~ Nicholas: Left health to the end so we would have better understanding of our budgets 21:59 ~ 1/12/2012 8:39:19 AM ~ Nicholas: What happens if we flatline? Budget books, jpage 8 Department summaries are great. In future budgets can we add two more columns? Representation of GF or other fund; Governor's rec Is it easy enough to have that prepared? 23:51 ~ 1/12/2012 8:41:11 AM ~ Boswell: I believe so, involves drafting work. 24:07 ~ 1/12/2012 8:41:27 AM ~ Nicholas: More helpful. Question to Bill: Budget pg 8, add sources of funding in column, add column of Gov's rec on approved or not on total amount. Gov's recs. Total GF of the agency. Do not want to create confusion. Great tool developed. Make it more useful. 26:51 ~ 1/12/2012 8:44:11 AM ~ Boswell: Very doableOffice of Chief Information Officer and IT office have been seperated out.See in agency 306. Have handed over ITD responsibility to Mr. Waters. 28:08 ~ 1/12/2012 8:45:28 AM ~ Nicholas: Centralization of ITD services. Centralization to make improvements and lower costs. Most every agency have an ITD guy, leaders and bright. Goal to consolidate those functions and bring those people in a a group. Partly supervisors, inovation, answer to Director. Consolidation into A&I changes those dynamics. May have to do to cost. Do we lost a skill set? How do we preserve that skill set? 30:14 ~ 1/12/2012 8:47:34 AM ~ Boswell: IT a problem. Not one solution. Challenges if consolidation proceeds. I think it is necessary. Agencies doing their own thing, paying too many people to do work that has been completed. Expensive master service agreements. There is abetter way. Uncomfortable for agencies and people to change. Not efficient and does not work for big picture for state. Natural progression for this consolidation, not without challenges. New agency or consolidated portion of A&I, depending on what happens. Leadership and judgement of folks in charge and responding to requests. Discussion about Flint's capabilites and efforts. Has inherent potential conflicts that will have to be addressed. 34:46 ~ 1/12/2012 8:52:06 AM ~ Nicholas: Structure: Is IT really a seperate area that deserves own agency or structure as part of A&I. 35:52 ~ 1/12/2012 8:53:12 AM ~ Boswell. Either way. Statutes are in conflict. Seperate agency not much different than what is happening now. Reasonable to create agency. Problem solving by a group is good solution. Have crazy mushrooming of master service agreements. Need to placesome degree of authority within OCI office and ITD. Agencies will struggle with it. Generally, will work well. Efficiencies here. Workforce Services. Recognize potential conflict and history of agencies.Centralization of authority is absolutely worthwhile 39:03 ~ 1/12/2012 8:56:23 AM ~ Nicholas: IT services model: What model will provide highest level of service? Assessment. 41:12 ~ 1/12/2012 8:58:31 AM ~ Boswell: Director of new division needs to be eye to eye with agency directors. Has not been the case for chief information officer. Contract position in past, level of expertise in position has advanced with each step. Maturing process. Recognize importance of the internet. Issues with internet yesterday. What caused this was an agency going on their own which broke big pieces of this. Outage culd have been avoided if agencies had to contact OCI. 44:12 ~ 1/12/2012 9:01:31 AM ~ Boswell Page 5 Gov has recommended reduction of 1 to 246 248 Lets head into the Division work I am going to focus on exception requests 46:11 ~ 1/12/2012 9:03:31 AM ~ Nicholas I want to make sure how the new members know how the reserve accounts are used 46:38 ~ 1/12/2012 9:03:58 AM ~ Boswell I'll mention Page 12 standard budget Page 13 computer replacementts Menu of prices for equipment You will see adjustment numbers 48:13 ~ 1/12/2012 9:05:33 AM ~ Nicholas Not all your prices are low 48:28 ~ 1/12/2012 9:05:47 AM ~ Boswell 48:53 ~ 1/12/2012 9:06:13 AM ~ Nicholas You see an enourmous of time We don't have any scunity of your budget and CIO budgets. Every request has a request for $3000 But that will become the case if we achieve the new agency. 50:42 ~ 1/12/2012 9:08:02 AM ~ Boswell Professionall Licensing Board For the A&I supported boards 006a Page 20 there is an error That should read special revenue. That is the only exceptional request Page 26 & 27 The routine exception for computers 53:06 ~ 1/12/2012 9:10:26 AM ~ Nicholas I assume now that we now replacing instead of leasing. Is that all now behind us? 53:42 ~ 1/12/2012 9:11:02 AM ~ Boswell, 53:49 ~ 1/12/2012 9:11:09 AM ~ Jones One have found at least one additional agency Family Services. They are being converted over. 54:22 ~ 1/12/2012 9:11:42 AM ~ Nicholas We have the budget footnote for at least one other biennium. Is that broad enough. What we are trying to do, we had a number of agencies leasing computers. That lease amount was just getting folding into the standard budget. Now we are trying to pry those number out 56:27 ~ 1/12/2012 9:13:47 AM ~ Mai It's pretty extensive 56:41 ~ 1/12/2012 9:14:01 AM ~ Nicholas We will see those footnotes when they come out. 57:01 ~ 1/12/2012 9:14:21 AM ~ Mai I appoligize too I am assuming you are just talking about leasing? 57:25 ~ 1/12/2012 9:14:45 AM ~ Nicholas AS we consolidate, we will get 57:38 ~ 1/12/2012 9:14:58 AM ~ Berger We have had presentations up to this point that replacement times are 3, 4, 5 years or until they die. 58:24 ~ 1/12/2012 9:15:43 AM ~ Boswell There has been a suggestion that once a computer runs out of warrant, we should get rid of it. Mr. Waters says he has employees that are certified to repare computers 59:38 ~ 1/12/2012 9:16:58 AM ~ Nicholas Lets suppose we set up a new CIO office, is there still a component that should remain in A&I or does that carry over to CIO? 1:00:39 ~ 1/12/2012 9:17:59 AM ~ Boswell Some would still remain in A&I 1:00:54 ~ 1/12/2012 9:18:14 AM ~ Boswell Page 30 General Services procurement Page 34 Surplus property Page37 Risk Management 10.288 mill I could not figure out how we could get 8% cut. The self insurnace fund maintains a sufficient balance. They offer low, medium, high risk payoffs. Frankly, we just had too much money in there. This is a 4 mill reduction The self insurance fund carries over from year to year. 1:05:19 ~ 1/12/2012 9:22:39 AM ~ Von Flatern Could I have a definition of reasonable balance? 1:05:39 ~ 1/12/2012 9:22:59 AM ~ Boswell That is where is actuary wanted us to be 1:06:05 ~ 1/12/2012 9:23:25 AM ~ Nicholas Previously Joyce would give us those figures. This would be tort claims 1:06:45 ~ 1/12/2012 9:24:05 AM ~ Von Flatern That is a separate fund? 1:06:58 ~ 1/12/2012 9:24:18 AM ~ Nicholas We have a level of self insurance, regular insurance, The judiciary committee to looking at changing to tort claim cap. Local governments also pay into it. We have millions of dollars of assetts. 1:08:53 ~ 1/12/2012 9:26:13 AM ~ Boswell It is not uncommon to contract for additional risk insurance. 1:09:31 ~ 1/12/2012 9:26:51 AM ~ Nicholas So we a paying about 7 mill 1:09:48 ~ 1/12/2012 9:27:08 AM ~ Horsley I can't answer that question 1:10:49 ~ 1/12/2012 9:28:09 AM ~ Nicholas All state buildings have value 1:11:09 ~ 1/12/2012 9:28:29 AM ~ Von Flatern The 7.5 mill that we have budgeted each year. 1:11:37 ~ 1/12/2012 9:28:57 AM ~ Horsley, They way this fund works is that any money that goes into the fund,stays in the fund. 1:12:19 ~ 1/12/2012 9:29:39 AM ~ Nicholas Wouldn't the interest income already be imbedded. 1:12:49 ~ 1/12/2012 9:30:09 AM ~ Boswell I don't believe it reflects a change to the general fund 1:13:19 ~ 1/12/2012 9:30:39 AM ~ Nicholas Utlimately you are reducing the flow into that fund by 4 million dollars. I remember when these funds were underfunded. What I am concerned about is that when we drop from 10 mill ro 6 mill that that is enough. 1:15:04 ~ 1/12/2012 9:32:24 AM ~ Boswell We feel that is enough. 1:15:40 ~ 1/12/2012 9:33:00 AM ~ Berger What has been the payout historically 1:15:58 ~ 1/12/2012 9:33:18 AM ~ 1:16:20 ~ 1/12/2012 9:33:40 AM ~ Haosley, This is just swapping out that authority 1:16:49 ~ 1/12/2012 9:34:09 AM ~ Nicholas This 1:17:12 ~ 1/12/2012 9:34:31 AM ~ Nicholas At the contribution account rate of 10 mill. for a total of 40 mill, the actuary said 6 mill is suffient amount to contribute 1:18:13 ~ 1/12/2012 9:35:33 AM ~ Horsley It will still increase. 1:18:36 ~ 1/12/2012 9:35:56 AM ~ Nicholas When we see this bill revisiting raising the cap, the fiscal note might change 1:19:17 ~ 1/12/2012 9:36:37 AM ~ Boswell The fiscal note said it was hard to determine. Is Glendo State Park going to flood again? 1:20:18 ~ 1/12/2012 9:37:37 AM ~ Nicholas Acturaies gives me great concern What level of comfort do you have with them. 1:20:49 ~ 1/12/2012 9:38:09 AM ~ Boswell They have not weighed in on this budget decision. I went to the bottom line. 1:21:48 ~ 1/12/2012 9:39:08 AM ~ Nicholas My concern is 4 mill is a lot, 2 mill a year isn't much But making it up years down the road is a problem. Are they on contract 1:23:22 ~ 1/12/2012 9:40:42 AM ~ Berger What is you spending authority? 1:23:39 ~ 1/12/2012 9:40:59 AM ~ Nicholas you pay it out of your 40 mill 1:23:55 ~ 1/12/2012 9:41:15 AM ~ Horsley Spending authority is 8.5 mill In excess would be a B-11 process 1:24:41 ~ 1/12/2012 9:42:01 AM ~ Nicholas The number of claims is not capped, they amount is If it is a civil rights case, it gets outside the cap amount. That is an area you see break down Retirement account, we considered for everything except for a catastophic loss. Paying 5 mill a year didn't seem like that much, paying only 3 mill makes me feel unconfortable.. 1:28:07 ~ 1/12/2012 9:45:27 AM ~ Peterson This account reached a level when it was low, when was that. 1:28:45 ~ 1/12/2012 9:46:05 AM ~ Boswell What I remember, there would be times when it would need to be bolstered. In the last ...... dozen years, that contribution seemed adequate. 1:30:05 ~ 1/12/2012 9:47:25 AM ~ Nicholas Lets go back for the last 15 years. A good example is dynamic compaction The AG is protecting those funds. One of the Senators feels that he is protecting them too zeliously. 1:31:47 ~ 1/12/2012 9:49:07 AM ~ Boswell We have a new Risk Mang. Tammy Houper 1:32:25 ~ 1/12/2012 9:49:44 AM ~ Nicholas Break 1:32:50 ~ 1/12/2012 10:16:19 AM ~ Meeting resumes - Agency 006 A&I 1:33:30 ~ 1/12/2012 10:16:59 AM ~ Boswell: Central Mail pg 41 Central Mail postage pg 44. Traditional OCIO switchout pg 42 81,969 pg 45 Mail equipment out of warranty, needed replacement , specialized equipment, entered into a lease resulted in GF request. New equipment there, asking you to pay for it. Was going to eliminate position, could not do that as it was vacated through retirement. That position will be eliminated for a savings of 77,00. Need clean up in language.. Elimination of position would go towards payment of equipment. 1:36:47 ~ 1/12/2012 10:20:16 AM ~ Nicholas: Number for employee? 1:36:56 ~ 1/12/2012 10:20:25 AM ~ Boswell: # 3007 on page 42. in narrative. Should have been reflected int he standard budget 1:37:50 ~ 1/12/2012 10:21:19 AM ~ Nicholas: Should 3007 go down? 1:38:07 ~ 1/12/2012 10:21:36 AM ~ Boswell: yes General Services vehicle replacement pg 47 Depreciation reserve fund. Request for replacement of vehicles, schedule for replacement of vehicles. MVMS is to get after agencies requesting large vehicles with large vehicles. Dropped midsized SUVs and made them small SUv's. 1:40:17 ~ 1/12/2012 10:23:46 AM ~ Nicholas: Natural gas capacity of new vehicles 1:40:27 ~ 1/12/2012 10:23:55 AM ~ Boswell: Natural gas vehicle conversion process. New vehicles equipped from factory do not exist, require conversion. even ones made for conversion require non factory conversion. Last session 200,000 general fund for conversion to natural gas fueling has been slow. Some vehicles are on the ground and in the fleet. Expensive process, difficult to find contractors. One is located in Lander. About to receive a couple of vans that are natural gas only. One for Mail, one for DOT. Governor's vehicle will be converted.Process in its infancy for large fleet usage 1:42:46 ~ 1/12/2012 10:26:14 AM ~ Nicholas: Maintenance farmed out to WYDOT. Any discussion we develop internal capacity? 1:43:10 ~ 1/12/2012 10:26:39 AM ~ Boswell: In short run, MVS, motor vehicle service, more cost effective to contract out then to send employees to training. 1:43:49 ~ 1/12/2012 10:27:18 AM ~ Nicholas: Fast fuel station in Cheyenne. 1:44:01 ~ 1/12/2012 10:27:30 AM ~ Boswell: One in Cheyenne, Rock Springs, Evanston, Riverton, Pinedale. Challenge of where to fill up vehicles. Should state participate in network around the state? How do you determine when state is in competion with private sector. 1:45:02 ~ 1/12/2012 10:28:31 AM ~ Nicholas: Missing in western corridor 1:45:18 ~ 1/12/2012 10:28:47 AM ~ Boswell: Industry meeting with state representatives to discuss enhancing the network. Vehicles with dual capabilites, jsut fill the gas tank if out of natural gas. Have a smaller trunk capability but full size gas tank. 1:46:28 ~ 1/12/2012 10:29:57 AM ~ Nicholas: For new vehicles anything to askf or? 1:46:38 ~ 1/12/2012 10:30:06 AM ~ Boswell: Not that I am aware of. 1:46:45 ~ 1/12/2012 10:30:13 AM ~ Edmonds: MVMS depreciation. District Court asked for a permanently assigned vehicle. Paying 488 monthly. Do we swap out every 5 years, vehicle trade in, Calculation? 1:47:25 ~ 1/12/2012 10:30:54 AM ~ Boswell: No mileage trigger for trade in of vehicle. Intelligent judgment call. Charges agency paying for permanent vehicle include gasoline, insurance, which are charges paid for by the state. To authroize a new vehicle agency, not provided for in past budgets, you get funding authority. Payments into depreciation accountallow agency to trade in vehicle. Depreciation reserve is mechanism for replacement of vehicle on a regular basis 1:49:22 ~ 1/12/2012 10:32:51 AM ~ Esdquibel: Leasing versus buying? 1:49:31 ~ 1/12/2012 10:33:00 AM ~ Boswell: Leasing, buying, privatization of fleet. This has been found to be most cost effective. Lobbyist asked for consideration of rental of vehicles. 1:50:32 ~ 1/12/2012 10:34:00 AM ~ Nicholas: Lease Vehicle from us, front end loaded. Portion of fee goes into depreciation reserve. Accurate? 1:51:46 ~ 1/12/2012 10:35:15 AM ~ Boswell: Vehicle is still used after full depreciation. Equipment routinely 10 years old used by Rich Cathcart's people 1:52:35 ~ 1/12/2012 10:36:04 AM ~ Nicholas: Management audit for information 1:52:44 ~ 1/12/2012 10:36:12 AM ~ Boswell: Information online. 1:52:55 ~ 1/12/2012 10:36:24 AM ~ Boswell: Clarification could have been game and fish vehicles specifically. 1:53:15 ~ 1/12/2012 10:36:44 AM ~ Boswell: MVMS pg 50 Governor's recommendation is funding switch, Exception request #1 pg 51, pg 52 is for 2.3 million dollars for fuel and supply increase. Request built on $4 gas. High oil prices, low gasoline prices. Difficult to forecast, intent to not adjust rates upward in the middle of the biennium. 1:55:42 ~ 1/12/2012 10:39:11 AM ~ Boswell pg 55 OCIO swap 1:55:59 ~ 1/12/2012 10:39:28 AM ~ Boswell: General Services, pg 58 Rockwell Building maintenance Exception request for OCIO switch. 1:56:30 ~ 1/12/2012 10:39:59 AM ~ Von Flatern: Seems high on sq. footage. Is this custodial and maintenance for building and grounds at $8 per sq. foot. Capital complex is only $2 per sq foot. Quotes, contracts? 1:57:12 ~ 1/12/2012 10:40:41 AM ~ fNicholas: Issue with Rockwell building: Extrordinary opportunity to buy at great cost. Found to have high maintenance cost. Talked about selling and replacement cost of the building. Is it appropriate building to be in our inventory? 1:58:19 ~ 1/12/2012 10:41:47 AM ~ Cathcart: General Services construction management: General maintenance put out for bid. Bidder was substantially lower. contract less than what was profiled, had over 200,000 per year in spreadsheet. Open public bid. 1:59:54 ~ 1/12/2012 10:43:23 AM ~ Von Flatern: Something unique about his building? 2:00:25 ~ 1/12/2012 10:43:54 AM ~ Cathcart: Buildings, grounds, routine maintenance. Something like a boiler going out is not covered. 2:00:56 ~ 1/12/2012 10:44:24 AM ~ Berger: Rockwell is complex facilities 2:01:05 ~ 1/12/2012 10:44:34 AM ~ Nichols: What agency is in there, is it full? 2:01:14 ~ 1/12/2012 10:44:42 AM ~ Cathcart: 53000 sq ft leasing. DEQ is in building, largest agency in Sheridan. Moved dept of Health and some attorney general. 2:01:52 ~ 1/12/2012 10:45:20 AM ~ Nicholas: Is it below lease cost? 2:02:02 ~ 1/12/2012 10:45:30 AM ~ Cathcart: Would reduce lease cost. 2:02:10 ~ 1/12/2012 10:45:39 AM ~ Nicholas: Site large enough to do an expanion. Dollar cost average some of higher cost into other space. 2:02:29 ~ 1/12/2012 10:45:58 AM ~ Cathcart: Lot is large, could add more facility, have a full parking garage in basement that could have added office space and usable space. 2:03:00 ~ 1/12/2012 10:46:29 AM ~ Von Flatern: Not advocating selling. Did we save 187,000 in other leases? 2:03:31 ~ 1/12/2012 10:47:00 AM ~ Cathcart: Cost profiled in spreadsheet to determine if more cost effective to buy or to lease. More cost effective over 40 year life cycle. Have equity in building at end of life cycle. 23,000 sq ft office buildiing built at that time would have been 10.2 million. Bought this building for less than hjalf. 2:04:59 ~ 1/12/2012 10:48:28 AM ~ Von Flatern: Would liek to see lease costs and savings. 2:05:12 ~ 1/12/2012 10:48:41 AM ~ Cathcart: Ms. Hefenieder does the speadsheets. Can give you a 40 year lifecycle spreadsheet 2:05:41 ~ 1/12/2012 10:49:10 AM ~ Berger: ownership of property? 2:05:51 ~ 1/12/2012 10:49:20 AM ~ Cathcart: Own the lot and the historic barn. Historic preservation group would like to move barn to fairgrounds. State building commission is fine with gifting the barn. Historical group would pay to move it. 2:06:39 ~ 1/12/2012 10:50:08 AM ~ Esquibel: When we lease a building do we pay for routine maintenance? 2:06:58 ~ 1/12/2012 10:50:26 AM ~ Cathcart: All sorts of lease arrangements. Most are lease per sq. ft. Lease includes the maintenance and utilites. Landlord is responsible for those costs. 2:07:36 ~ 1/12/2012 10:51:04 AM ~ Nicholas: History of Rockwell Building. If economics change, can sell. 2:09:46 ~ 1/12/2012 10:53:15 AM ~ Boswell: Facilities operations pg 60 OCIO, pg 61 exception recommendations, pg 62 51000 in GF for new equipment. Floor sweeping, cleaning equipment located in new liquor warehouse, new one is not replacement, it will be added to fleet. 2:11:18 ~ 1/12/2012 10:54:47 AM ~ Boswell: Custodial services equipment replacemtn 66,437 to replace equipment that is at least 15 years old. snow removal equipment, floor care equipment 2:12:05 ~ 1/12/2012 10:55:34 AM ~ Boswell : pg 66 Trades Management Pg 67 Exception request, Pg 68 185,521 for maintenance agreements for equipment , primarily in the lab, Discussion of continuing agreement, open to risk if do not have those . 2:13:47 ~ 1/12/2012 10:57:16 AM ~ Nicholas: Looked at at create a self insured account and pay for maintence 2:14:17 ~ 1/12/2012 10:57:46 AM ~ Boswell: no 2:14:20 ~ 1/12/2012 10:57:49 AM ~ Nicholas: May not be practical, may look at self insured. 2:14:35 ~ 1/12/2012 10:58:04 AM ~ boswell: Will ask those questions 2:14:43 ~ 1/12/2012 10:58:12 AM ~ Nicholas: It is a lot of money 2:14:55 ~ 1/12/2012 10:58:24 AM ~ Boswell: Downside risk significant 2:15:06 ~ 1/12/2012 10:58:35 AM ~ Boswell: Pg 68 four positions AWEC Monitor Technicians, typcially college students or retirees monitoring alarms in off hours. Put in budget and be up front about it. I suggested to the Governor that he deny this and work with OCIO. OCIO?ITD have people monitoring things on 24 hour basis. Try to do this without B11's or appropriations. 2:16:52 ~ 1/12/2012 11:00:21 AM ~ Boswell: Pg 72 General Services Adminstration 7.4 million 2:17:16 ~ 1/12/2012 11:00:45 AM ~ Boswell : Construction Mangagment pg 74, 75, 76 pg 80 Real property rental: All leased space are handled through A&I. Moving to roughly 25 million in standard budget. Exception request to reduce by 610,000 2:18:53 ~ 1/12/2012 11:02:21 AM ~ Von Flatern: pg 81 recomemndation of approval of 610, page 82, answered own question 2:19:33 ~ 1/12/2012 11:03:02 AM ~ Boswell: Human Resources. Dean Fausset . Tremendous work and progress in human resources. pg 84, 85. pg 85, 86 and beyond merit pay increases. My recommendation to Governor Mead: Put in placeholders. Page 86 put in 16 million placeholder. Governor broken into two parts of 5 million for one time merit and for merit based market increases. Supplemental budget. Performance Appraisal ratings for state employees. Discussions of performance measurement was weak. Appraisal process reqorked, engineered, put into place, then seek merit based compensations. budget reflects that work. Dean Fausset can go into specifics. Classified and at will employees have performance evaluatino under way. Initial discussions between supervisors and employees implementation rate is 90% or higher. 2:24:28 ~ 1/12/2012 11:07:56 AM ~ Nicholas: Merit pay, merit pay adjustments. What is happening in school system with flat lining? need to confirm that judiciary lags behind us. Are employees lagging? Are we bringing up to wher other state employees are and then issue of hitting 91%. UW and community colleges, school nonclassified folks. Need discussion. Overall of where we are.,. 2:26:45 ~ 1/12/2012 11:10:14 AM ~ Boswell: Distinction of one time and ongoing appropriations. 2:27:10 ~ 1/12/2012 11:10:38 AM ~ Nicholas: One time merit pay to someone at 89 versus 91 is different. Can decide what we want to do. Need to understand it. All state employees, all categories before mark up. 2:27:54 ~ 1/12/2012 11:11:22 AM ~ Boswell: Governor's recommendation for state employees to begin. 2:28:14 ~ 1/12/2012 11:11:42 AM ~ Fausset: Handout Letter . Performance goals evaluated again in September. In past pay raises in July. Now recommending raises in Dec. 19 month calculation for review. Do not know what to expect for actual ratings of employees, rating level distribution. On the handout there were two specific areas we wanted to talk about. First the merit section This is a one time costs How much money we would appropriate for each individual. If an agency has 20% of the general fund obligation, they would get 20% For those agencies that get funds from some other source, they would have to come up with that money themeselves. That criteria puts bumbers on it so one emeployee would not get it all. The max would be $2000. We went from a 3 level to a five level. 2:34:07 ~ 1/12/2012 11:17:36 AM ~ Nicholas Are we providing enough funding for all employees 2:34:38 ~ 1/12/2012 11:18:06 AM ~ Fausset There is not enough money is all employees were rated superior Mid level would receive merit pay. 2:35:33 ~ 1/12/2012 11:19:02 AM ~ Nicholas What is the actural number for the state employees 2:36:05 ~ 1/12/2012 11:19:33 AM ~ Fausset 10,000 employees, 9,000 eligiable for merit pay. 2:36:55 ~ 1/12/2012 11:20:24 AM ~ Nicholas 2:37:10 ~ 1/12/2012 11:20:39 AM ~ Boswell The intent is for 19 months 2:37:27 ~ 1/12/2012 11:20:56 AM ~ Nicholas If you use money at the end of the year...... 2:38:19 ~ 1/12/2012 11:21:48 AM ~ Von Flatern Doesn't that $5mill become part of the standard budget? 2:39:04 ~ 1/12/2012 11:22:33 AM ~ Boswell That would incurr 2:39:34 ~ 1/12/2012 11:23:03 AM ~ Nicholas If you know you hae an extrodinary employee, you will have one average employee 2:40:32 ~ 1/12/2012 11:24:01 AM ~ Nicholas If is respricted by it's resources If you have an agency that is mostly engineers If $2000 is the cap. The max they could get is $2000 2:43:01 ~ 1/12/2012 11:26:30 AM ~ Fausset The market component Last year when me moved employees , 4,600 employee, 62% are still below the 91% Those would be less than 200 2:44:50 ~ 1/12/2012 11:28:19 AM ~ Nicholas What percentate are above 2:45:25 ~ 1/12/2012 11:28:54 AM ~ Fausset 2:45:34 ~ 1/12/2012 11:29:03 AM ~ Nicholas 6,000 2:45:52 ~ 1/12/2012 11:29:20 AM ~ Faussett 100% of market 2:46:13 ~ 1/12/2012 11:29:42 AM ~ Nicholas If our target was 91%, 2:46:34 ~ 1/12/2012 11:30:03 AM ~ Pedersen We had 42 employeess above mpp If you are working with 9,000 employees 2:47:20 ~ 1/12/2012 11:30:48 AM ~ Nicholas What I want to do is give me the numbers for 91%. above 91%. below 91% 2:48:30 ~ 1/12/2012 11:31:59 AM ~ Fausset In the abstract you have a people below,, 2:49:10 ~ 1/12/2012 11:32:39 AM ~ Nicholas Can you tell me haw many are going to get 2:49:55 ~ 1/12/2012 11:33:23 AM ~ Fausset It's a combingation of items 2:50:43 ~ 1/12/2012 11:34:11 AM ~ Nicholas They are below MPP The guys that are working but 2:51:38 ~ 1/12/2012 11:35:07 AM ~ Fausett Than could be a concern No employee will get above market. 2:52:43 ~ 1/12/2012 11:36:12 AM ~ Nicholas Tha'ts why we have directorys. We have employee where they do or do not have chemistry with the doctor. 2:54:01 ~ 1/12/2012 11:37:30 AM ~ Pedersen I think there has been a push for MPP. But those how are at 100% are waiting for the rest to catch up. 2:55:56 ~ 1/12/2012 11:39:25 AM ~ Boswell That why we have limited credit rating 2:56:43 ~ 1/12/2012 11:40:12 AM ~ Pederdesen That tis 27% constigency It's those 2800 Still leaving 6,2000. Those are the one saying we are getting .. I'm giving it a two different IT's only 18 momths, it will be a third higher. I am only bringing up a point 2:59:26 ~ 1/12/2012 11:42:55 AM ~ Nicholas 2:59:35 ~ 1/12/2012 11:43:03 AM ~ Pedersen You get 2/3 of the people, 20% of the people will not get represented Both the 6200 and the 2800 3:00:38 ~ 1/12/2012 11:44:06 AM ~ Edmons Is that a twist from the past 3:00:54 ~ 1/12/2012 11:44:22 AM ~ Faussett We built this system on performance. 3:01:22 ~ 1/12/2012 11:44:51 AM ~ Edmonds What about employee that dispute the ratings 3:01:52 ~ 1/12/2012 11:45:21 AM ~ Fausseer We do believe we have a robust system We have multiple checks within the agency. 3:02:44 ~ 1/12/2012 11:46:13 AM ~ Edmonds They simply have to have measurable goals. Someone who continately using their sick leave each month 3:04:05 ~ 1/12/2012 11:47:33 AM ~ Fausett All correctional officers will .................. 3:04:46 ~ 1/12/2012 11:48:15 AM ~ Berger That is my concern for status que. It makes 3:05:21 ~ 1/12/2012 11:48:50 AM ~ Boswell The supervisor have talked about the years ahead. Here is how is needs to be done. Her is how we are going to rate There is a spot there for it. There will be a mid year review and then again at the end of tehyear. 3:07:05 ~ 1/12/2012 11:50:34 AM ~ Fausset We have created an online program. First the supervisor sits down with the employee and sets goals for the year. Then the employee goes online to look at and agrree to it. 3:08:54 ~ 1/12/2012 11:52:23 AM ~ Nicholas Is there a way to impliment a fantum plan? That way we siee how it works 3:09:53 ~ 1/12/2012 11:53:22 AM ~ Boswell Of course we could do that I'll make a pitch that if do it........I recognize what you are saying 3:11:05 ~ 1/12/2012 11:54:34 AM ~ Nicholas Suppose we leave here and do put money in the merit plan, 3:12:10 ~ 1/12/2012 11:55:39 AM ~ Boswell Without know what the actual appraisal ratings are going to be, it is hard to determine. Say most the employees get a superior or commendable rating, we could model that 3:13:51 ~ 1/12/2012 11:57:20 AM ~ Pedersen Lets say we split the 10 million Now a portion MPP, and a portion not MPP MPP will creep up. Those ... 3:15:35 ~ 1/12/2012 11:59:04 AM ~ Boswell I hope Dean gets an opportunity to explain this. What you are saying doesn't fit with where the govenor was heading. 3:17:02 ~ 1/12/2012 12:00:31 PM ~ Nicholas I'm not sure we have the respnsibility to move everyone to MPP. We might just tell them where MPP is and let the suupervisor get 3:18:41 ~ 1/12/2012 12:02:10 PM ~ Boswell Yes they can use vacancy's to fund MPP but I think it's just theory 91% reflects minimum. If Dean could go through the 2nd half 3:20:19 ~ 1/12/2012 12:03:48 PM ~ Fausett In determining the amount of funds available to an employee What is shows is that how the stand in relationship to Mpp Only the top 3 levels are eleigiable for an increase That is also The employee that is furtherst from MPP and gets the exceptional rating, will get the highest amount. There is some consistency in the plan but it could very from agency to agency. Employees would eleigiable to get raises but would be based on performance. The reason we did that was to give some accountability to the agency director 3:25:32 ~ 1/12/2012 12:09:00 PM ~ Boswell When 3:25:45 ~ 1/12/2012 12:09:14 PM ~ Nicholas What sort of work load would it be to have the gov. look at it first. 3:27:00 ~ 1/12/2012 12:10:29 PM ~ Boswell 3:27:10 ~ 1/12/2012 12:10:39 PM ~ Nicholas Any questions before lunch. Please bring back this handout Be back at 1:15 3:28:05 ~ 1/12/2012 12:11:34 PM ~ Wallis would be nice to get an electronic copy 3:28:49 ~ 1/12/2012 12:12:17 PM ~ Mai It would be a lot easier to bring it 3:29:23 ~ 1/12/2012 12:12:51 PM ~ Nicholas From here on out 20 copies and PDF copy to MAI 3:30:01 ~ 1/12/2012 12:13:30 PM ~ Mai The control freak is coming out 3:30:15 ~ 1/12/2012 12:13:43 PM ~ Nicholas Think about it, maybe a specific name in the subject line that would send it to a specific site. See you at 1:15