File name: JAC Budget Hearings FY 13-14_20120119_133541.dcr Folder: C:\Documents and Settings\HAppropriations\Desktop\Recordings 0 ~ 1/19/2012 2:22:15 PM ~ 11 ~ 1/19/2012 2:22:26 PM ~ Berger: ECA discussion and vote. 25 ~ 1/19/2012 2:22:40 PM ~ Nelson: Information for you: salaries, teacher salary and rankings, axel to model staff differences. Came up in November during dicussions. Shared information with Education committee. 3 documents 2:37 ~ 1/19/2012 2:24:53 PM ~ Berger: Listed the three documents: Summary of Acutal Wyoming Average 3:02 ~ 1/19/2012 2:25:17 PM ~ Nelson: Did not modify the October action of no external cost adjustment be recommend . Education committee forwarded legislation that will implemented regional cost adjustment and will...the external cost adjustment. 4:01 ~ 1/19/2012 2:26:16 PM ~ Steward: Letter from Chairman of Ed Com. Was there an adjustment for material and ...in the letter or not? 4:22 ~ 1/19/2012 2:26:37 PM ~ Nelson: no. In the bill is an adjustment butr it applies only to the consultants model..cost basis pica model. 4:44 ~ 1/19/2012 2:26:59 PM ~ Harshman: Refresher of ECA 5:09 ~ 1/19/2012 2:27:24 PM ~ Nelson: do not have books with us. 5:23 ~ 1/19/2012 2:27:39 PM ~ Harshman: sitting at 11/12 school year, about to decide on 13/14. 5:39 ~ 1/19/2012 2:27:54 PM ~ Willmarth: ECA numbers: FY 2008 which is 7/8 school year 4.3% ECA, 3.7%; 3.7% for FY 10. 12.27 cumulative since implentation in 2006/7. Correction to 6:57 ~ 1/19/2012 2:29:12 PM ~ Willmarth: 2008 was 3.8%; for 7/8 school yr 4.3%; 3.7% for a cumulative. The last recalibration was last fiscal year which was 2011 so 2011/2012 was the first year of the recalibration 8:01 ~ 1/19/2012 2:30:16 PM ~ Berger: recalibrated in 2006? 8:11 ~ 1/19/2012 2:30:26 PM ~ Willmarth: correct 8:23 ~ 1/19/2012 2:30:38 PM ~ Harshman: Education cost index,. ON those days must have running tally of inflation per year in Wyoming? 8:58 ~ 1/19/2012 2:31:13 PM ~ Willmarth: I do not, difficult to determine how much of an impact ECA change has,..salry changes, etc. 9:33 ~ 1/19/2012 2:31:48 PM ~ Teeters: Economist on our committee ran numbers, shrunk 1.7%, can get . have run spending faster than rate of inflation. 10:28 ~ 1/19/2012 2:32:43 PM ~ Nicholas: Hear from Mr. Mai, school foundation program, compression between revenues and expenses. 10:50 ~ 1/19/2012 2:33:05 PM ~ Mai: Limiting discussion to? 11:06 ~ 1/19/2012 2:33:21 PM ~ Nicholas 11:09 ~ 1/19/2012 2:33:24 PM ~ Mai: Cumulative effect of that change in natural gas, dropped .75 off price projection in 12, .50 in 13 and .25 in 14. It is proportional. Pg 3 of CREG report, graph that shows the result from the Jan GREG report. Severance tax and FMR, did not revise, estimates or other minierals only the price of natural gas. Revenue standpoint, drop in gas price due to change in FS valuation and ...Current level of expenditures, disregarding transfer at bottom. 19.9 million transfer to school cap con. Expenditures out of SFP of 1.6 billion, roughly 1.74 billion in revenue . Have 60 million excess in revenuie to fund ... A similar price drop in gas, had to revise the projection with same magnitude. 74.7 million under water. 15:01 ~ 1/19/2012 2:37:17 PM ~ Nicholas:Fuondation at 100 million typically, now at 41 million, start next biennium 60 millon low is that right? 15:29 ~ 1/19/2012 2:37:44 PM ~ Mai: Right, complicated because of transfer. The transfer goes down. The net effect is actually greater than that. If not transferring money to school cap acct..or transferring money in same amounts, transfer ...Add 18 million tobottom line that is your total swing. 16:26 ~ 1/19/2012 2:38:42 PM ~ Nicholas: when folks ask what is a rainy day? That is it. To what extent does mineral reductions you see now delay into the school foundation account, impact? 17:07 ~ 1/19/2012 2:39:23 PM ~ Mai: Two part answer, part is relatively immediate and part of it is two year delay, assessments, mill levy. Effects felt in 14, two years to fully feel impacts in school foundation from this CREG change. If forecasts stay where they are $3 range, means...lower property tax, severance tax,. Acct being buffered from high prices two years ago. 18:28 ~ 1/19/2012 2:40:43 PM ~ Mai: Correct. Works flip, If $2 inc next year in price of gas would not see effect for 2 yrs in that piece. 18:51 ~ 1/19/2012 2:41:06 PM ~ Steward: Goldenrod: Sweep cap con over 100 millionleaving balance. Why sweeping to leave balance below 100 million? 19:27 ~ 1/19/2012 2:41:42 PM ~ Mai: to fund cap con at a certain level and to have balance. Balance over 100 million, now need money to fund cap con under gov's recs. 19:57 ~ 1/19/2012 2:42:12 PM ~ Willmarth: 19.9 million transfer from foundation to cap con occurs on annual basis .119.9 million so 19.9 million sweeps at th end of 13, at end of 14 ..balaqnce occurs. Sweep from land fund occurs on bieenial basis. 20:42 ~ 1/19/2012 2:42:57 PM ~ Steward: At what point, analysis that shows demand exceeds what is there? To make decisions... 21:20 ~ 1/19/2012 2:43:35 PM ~ Nicholas: Statutory change, just let it ride. During markup last order of business, as a committee, look at 11/12 school cap con account and address the issue to allow the normal passage of the 653 million in to school land fund acct. Second decision if to release into corpus of permanet school land fund. Discussion if we want to hold up triggers in budget and how much. Three equally imp policies, hold operating expenses, develop resources for cap con, build corpus for school permanet land fund. Revenue limitations. 24:04 ~ 1/19/2012 2:46:19 PM ~ Steward: Do not have authority to suspend 19 million during markup oh..we do. 24:31 ~ 1/19/2012 2:46:47 PM ~ Berger: questions or comments. Consider motion 24:41 ~ 1/19/2012 2:46:56 PM ~ Nicholas: Given nature of where we are and consistent with what Iexpect will be the mark up position, hold the ECA to zero and will follow same position in mark up and zero out salary increases for state employees for community colleges and UW about 30 million, 2, 5, 8% cuts, makes no sense to buyild budgets up and start reducing them. First step is to constrain growth, hold amounts. Motion is No ECA's; Second by Edmonds 26:32 ~ 1/19/2012 2:48:47 PM ~ Harshman: Inflation rates, 12.6% cumulative inflation, 1.9% this last year. Everyone would like a pay increase. Given our revenue picture we can wait one more year. Give raises, then take cuts, someone will lose job. We can wait a year. I support the motion. 27:51 ~ 1/19/2012 2:50:06 PM ~ Steward: Speak against the motion. Motion from a month ago of 1% for about 14 million, balance out with 19 million sweep. Discussions of ECA were derailed where we were talking about inflation and overly funded and properly funded. Co Chairmans letter captured those thoughts. To change motivation for ECA is not based upon .....Remind committee does not necessarily mean a raise in teacher's salaries. ECA is importatn to retain integrity of the model. 30:13 ~ 1/19/2012 2:52:28 PM ~ Meier: Clarification: Preliminary figures of utilittes and material underfunded. What is that status? Components 30:44 ~ 1/19/2012 2:52:59 PM ~ Teeters: In school finance bill passed yesterday, acknowledged them in bill and in consultants cost based model. It is block grant, grant in entirety we are above.... Our labor market study showed that teacher salary structure is top or #2 in nation. If we had several hundred million dollar surplus, it does not justify ECA. Will continue to monitor when actual costs intersect with cost basis. 32:11 ~ 1/19/2012 2:54:26 PM ~ Meier: Components? 32:20 ~ 1/19/2012 2:54:35 PM ~ Nelson: Two salry levels of prof and nonprof, materials and utilites. The adjustments to the cost consultants model were minor, the utilites at .2% materials 8.2 million. Legislatviely funded model above the consultants model so that backs decision by the committee. 33:31 ~ 1/19/2012 2:55:46 PM ~ meier: legislative add ons to top of model. Model underfunded in 2 areas but added on 1200 million in legislative add ons. 34:10 ~ 1/19/2012 2:56:25 PM ~ Nelson: 100 million 34:15 ~ 1/19/2012 2:56:30 PM ~ meier: 34:17 ~ 1/19/2012 2:56:32 PM ~ Harshman: Over funding, under funding are policy choices, added summer school ,tutors which had nothing to do with the model. Made choice to be number 1 in country. Since our first recalibration every trend in education is moving in the rate direction. We are making progress, never arrive.Legislature made choices, to be #1 in country. Appreciate work of education .. 35:50 ~ 1/19/2012 2:58:05 PM ~ Nicholas: If overfunding is that we have added on optional, non obligatory programs. If we had not funded those other things ......enhancements drive up costs. Obligated to say we are driving up.. for model and legislative enhancements. Budget is as much a part of the planning as is the statute. If districts have to lower element of enhancements, ....so long as total resources going in ...free to recommend something lower than the total basket. Legislatures free to add on on the floor. Economy, budgets, natural gas prices. Recommendation to hold the budget where it is. Whjen made decision to add on, you made it as a statutory policy in view of what our resources were, entitled to revisit those at any time. Less generous when you have less money. Are we compelled to assume all those legilstive gratuities made without consideration of fiscal restraints, I say no. There will be constraints on some of the additional items. 39:47 ~ 1/19/2012 3:02:02 PM ~ Haster: Motion repeated. 39:53 ~ 1/19/2012 3:02:09 PM ~ Berger: Accept JAC proposal for zero ECA 40:29 ~ 1/19/2012 3:02:45 PM ~ Roll call: Eight ayes, 4 no's. 41:16 ~ 1/19/2012 3:03:31 PM ~ Berger: School facilites department Meeting at 4. New groupss 42:33 ~ 1/19/2012 3:04:48 PM ~ Catelllier: Commision members. Diane Bailey, Introduction of District superintendents 44:16 ~ 1/19/2012 3:06:31 PM ~ Catelllier: Brought back info. asked for and handed out. Budget document. Diane Baily business administrator 45:02 ~ 1/19/2012 3:07:17 PM ~ Bailey: pg 10, operations unit 101; gov rec on std budget has ITD and telecommunication cost be moved to OCIO; exception budget for priority #6, 28000+ Gov denied 10,807. pg 15 : Planning projects unit 206, no std budget, exception req for priority 7, table shows funding justification. Pg 17 blanks in funding justification is formatting issue, pg 19 47:37 ~ 1/19/2012 3:09:52 PM ~ Harshman: Is planning dollars going to these folks and getting to owrk 47:54 ~ 1/19/2012 3:10:10 PM ~ Catellier: SF 16 last year, help us assess capacity needs in districts. 48:08 ~ 1/19/2012 3:10:24 PM ~ Bailey: total is 820,000. gov rec approves entire 820,ooo sb school capital construction funds. 48:44 ~ 1/19/2012 3:10:59 PM ~ Berger: additional funds 48:50 ~ 1/19/2012 3:11:05 PM ~ Catellier: Planning funds are adequate. 49:01 ~ 1/19/2012 3:11:16 PM ~ Bailey: pg 22 Design projects 207, no std budg. Exception budget for priority 8, funding justification, to pag 24, 8,895,987 dollars, Gov rec is approval from school foundation funds. 50:15 ~ 1/19/2012 3:12:31 PM ~ Catellier: Some projects under funded.Page in handout, blue items in facility commision rec, tried to go back to costs seen today and adjust budget for that 4.9 million short in design funds. 51:38 ~ 1/19/2012 3:13:53 PM ~ Berger: Consider in mark up. 51:44 ~ 1/19/2012 3:13:59 PM ~ Bailey: pg 26 Construction projects unit 208, no dtd, exc requ for priorit 2, funding justification. pg 28 bieenial total is 246,961,989. Gov rec is spproval from school capital construction funds. 52:55 ~ 1/19/2012 3:15:10 PM ~ Cavellier: cost, allowed for inflation, Handout; Shortfall of 64 million. 53:38 ~ 1/19/2012 3:15:53 PM ~ Bailey: pg 32 contingency unanticpated unit 406, no std, exc requ is priority 4, conditions chagne during desiign or...4%, 10,245,928 asking amount, Gov rec is full amount. Pg 35, demolition projects, exc for priority 12, total is 102,240. Gov rec approval. pg 38: land purchases , 408, no std, exc for priority 5, funding justification, total of 15,322,301 on page 40. Gov rec is approval through school cap construction fund. 56:00 ~ 1/19/2012 3:18:15 PM ~ pg 42 ancillary facilities, exc budgetr for #10 for 1,412,000 page 43, Gov rec approval pg 45 Track projects, exc for priority 9, 450,000 gov rec approval. pg 48 component projects, exc for priority 3, for 5,796,000 Category columsn and legend for columns. Gov rec is approval. pg 53: major maintnenance unit 501, has standard budget request driven by statue. exc requ for prioritty # 1, 19,231,513, gov rec approval and approval of std budget. pg 57 Engineering and technical service contracts unit 601 exc request priority 11,...will begin compliance audits this fiscal year prior to close out Total requested is 6,069,154 . Gov rec approval. 59:36 ~ 1/19/2012 3:21:52 PM ~ Steward: Casper is an alternative school? Is the new caps school an alternative school 1:00:59 ~ 1/19/2012 3:23:14 PM ~ Ian It is not a caps school This project in 2009. 1:01:39 ~ 1/19/2012 3:23:55 PM ~ Steward If it is not an alternative school, what is it? 1:01:59 ~ 1/19/2012 3:24:14 PM ~ Ian It is a center for advanced professional studies. Mr. Harshman can 1:02:34 ~ 1/19/2012 3:24:50 PM ~ Nicholas 1:02:39 ~ 1/19/2012 3:24:55 PM ~ Steward Program spaces using alternative guidelines 1:03:08 ~ 1/19/2012 3:25:23 PM ~ Ian That may be correct. Until we adopt alternataive school guidelines 1:03:58 ~ 1/19/2012 3:26:14 PM ~ Nicholas Can you give us the assurances that they will or will not 1:04:21 ~ 1/19/2012 3:26:36 PM ~ Matt It is square footage driven From the s.f. they are using will not be taken our of the natrona block. I'm not sure 1:05:12 ~ 1/19/2012 3:27:27 PM ~ Ian What we too was the square foot allowable. Their home school is Kelley Walsh and Natrona High School 1:06:00 ~ 1/19/2012 3:28:15 PM ~ Harshman What is caps? 1:06:17 ~ 1/19/2012 3:28:32 PM ~ Matt The caps will not be funded as a seperate high school. 1:06:46 ~ 1/19/2012 3:29:01 PM ~ Berger So the funding 1:07:03 ~ 1/19/2012 3:29:18 PM ~ Nichlos: The staff recommended @a 1:07:26 ~ 1/19/2012 3:29:41 PM ~ Ian the 2b model 1:07:37 ~ 1/19/2012 3:29:52 PM ~ Ian There will be some ..... that is the only difference the two. 1:08:00 ~ 1/19/2012 3:30:15 PM ~ Nicholas The only difference is between 2a & 2b is the staggered start. 1:08:37 ~ 1/19/2012 3:30:52 PM ~ Ian We are not far enough in to these projects to determine that. This was 1:09:12 ~ 1/19/2012 3:31:27 PM ~ Nicholas What if we give you the power to keep workers employed in this state. 1:09:48 ~ 1/19/2012 3:32:03 PM ~ Ian I believe we are too early on to know the impact. To me it makes sense if we don't have to build extra classrooms. But if we do have to, we will. 1:11:19 ~ 1/19/2012 3:33:34 PM ~ Harshman A shared facility is considered a caps We make Kelley Walsh and N C AS soon we passed, they Midwest built for 500, 600 kids, maybe has 100 kids now. Pretty soon you have a lot of square footage 1:14:08 ~ 1/19/2012 3:36:23 PM ~ Matt Alternative school is an alternative enviroment for learning. But it is still a struggle to determine what an alternative school is. 1:16:04 ~ 1/19/2012 3:38:19 PM ~ Von Flatern: That sounds like a charter school 1:16:29 ~ 1/19/2012 3:38:44 PM ~ Harshman Alternative schools are your right, Gillette has an alternative school 1:17:17 ~ 1/19/2012 3:39:32 PM ~ Nicholas We need to get moving I have 4 pages of that I would like to see folded in. It also provides for .....If you have a budget for Swing.... we don't care as long as they do it with their money. 1:19:04 ~ 1/19/2012 3:41:20 PM ~ Ian I believe it does It is clearly not an alternative high school 1:19:30 ~ 1/19/2012 3:41:45 PM ~ Nicholas You get to drive the scheduling and we want you to control that. I've spent a lot of time at KW but also .......... Finally I don't know if I'm a fan of ............ That is a debate we are not going to solve today. If we do something like that, does that take care of that. 1:22:07 ~ 1/19/2012 3:44:22 PM ~ Ian This is early on and we can take care of it. 1:22:25 ~ 1/19/2012 3:44:40 PM ~ Harshman We want to get going that's what they want 1:22:57 ~ 1/19/2012 3:45:12 PM ~ Nicholas What I read and wrote there does that work for you. 1:23:31 ~ 1/19/2012 3:45:46 PM ~ Von Flatern Did they use swing space Did you say do it, or consider it 1:24:28 ~ 1/19/2012 3:46:43 PM ~ Peterson Where are they finding the extra nichols Where are they finding 1:24:57 ~ 1/19/2012 3:47:12 PM ~ Nicholas South High here in town This community was able to part a million a year to get 10mill worth of enhancments. Are we going to solve it today. 1:26:20 ~ 1/19/2012 3:48:35 PM ~ Peterson Why is my daughter's knees less valuable than another girls 1:27:02 ~ 1/19/2012 3:49:17 PM ~ Edmonds Different learning environment 1:27:20 ~ 1/19/2012 3:49:35 PM ~ Harshman There is other sources 1:27:37 ~ 1/19/2012 3:49:52 PM ~ Berger 1:28:06 ~ 1/19/2012 3:50:21 PM ~ Berger Do you want to go through the handouts 1:28:20 ~ 1/19/2012 3:50:35 PM ~ Ian I would like to do that. If you look on page 1 of this handout Column That was budgeted at $211 per square foot. We have just come to understand what our trends are. We don't want to get to the point that these funds are under funded. They do reflect what we get I believe you & I it is from the supplemental budget of last year. That is 9.9 mill Unita Natrona Laramie Sweetwater Converse Johnson So Ian you will get a copy of that Effective immediately Handout #73 This is an efert to get our capacity projects underway The total of this on page 4, $44+ mill. Disc 1:33:34 ~ 1/19/2012 3:55:49 PM ~ Pederson Saddle back grade school Over capacity in our gradeschools This shows what a 16:1 ratio that is a massive capacity projects 2010 Session school We appropriated .... That included 50,000 for........ According Um what happened , 3 sites looked at in Cheyenne, Originally Made a line orginally a site in the "Point" worried ,, 2nd site in Ridge Road , Came back up , the people in Point wanted to competed again. One of the things is now to move out on a 20 acre piece out of Cheyenne. I don't think we need to bus kids out to a school, they should be in town. It's one of the engineer , It is 9,1 acrs, that is less than 5% 1:40:57 ~ 1/19/2012 4:03:12 PM ~ Nicholas Is that suite suitable for a school,, Could we have a waiver? 1:41:31 ~ 1/19/2012 4:03:46 PM ~ Ian We could, the problem is that is is long and narrow 1:41:54 ~ 1/19/2012 4:04:10 PM ~ Nicholas Can you make exceptions Is it acceptable for a two section school? Is there any reason why you can't work with the State. 1:43:04 ~ 1/19/2012 4:05:19 PM ~ Ian The district needs a 3 section school. 1:43:34 ~ 1/19/2012 4:05:49 PM ~ Berger 1:43:41 ~ 1/19/2012 4:05:57 PM ~ Nicholas everything has been covered We are going to deal this at markup. I would like to have a section 300 that acc 1. provide a reservoir account to cover costs increases 2 Adopt a select committe recomendationfor 100% except for the Midwest scool amendeded amount 3 We will provide the capacity for new facilites to be calculated based on enrollment at the five year from teh time of the forcasted date of occupancy. 4 Provide for effective immediate funding as proposed by SFC staff. 5 Provede that consturtion commer. date, and schdules be directed by SFC Director w/consultantion of the Governor to (A) maximize cost savings or gbelow the project budgets (B) optimia=ze Wyoming workforce opportunities at a predictabel and manageabe level, and (C) provide for as uniform as possible cosntruction througt the State of Wyoming ging consideration to other large construction projects 6 Provision for a required state holders grou0p responsible for planning. The group to include legislatorss, community leaders, parents and others to meet and provide recommends for all aspect of the project. 7. Natrona project will be funded on basis or option that allows for staggered constuction but also privedes for participation by NCSD#1 in planning and contributing S>D> resources for cost of switn space NCSD#1 shall agree in advance that the CAPS facility will be treated as Normal H.S. square footage I not as an altternative H.S. Space. any optional swing space paid for by NCSD#1 shall remain teh obligation of the District with the SFC regs 8 The SFD is directed to condstruct the Prairie Wind Elementary School district with in the Pointe subdivision and provide for any required waivers for the consturuction of a 3 section elem school . This requirment shall not terminat in the even that the SFC director in consultation with the Governor determines that the Pointe Property can nto be purchase for and amount not to acxceed fair market value and a max price of $1,250,000 1:50:11 ~ 1/19/2012 4:12:26 PM ~ Peterson Could Dorothy Lane be moved north. 1:51:25 ~ 1/19/2012 4:13:41 PM ~ Edmonds The Point I will say that I don'r represnet the point We need to get stack holders involved. 1:52:16 ~ 1/19/2012 4:14:32 PM ~ Ian All due respect I think this interfers with the 1:52:49 ~ 1/19/2012 4:15:04 PM ~ Pederson It was my point that a 300 serries funded I have been informed The cost of moving dirt greatly increases when you get over 3%. 1:54:08 ~ 1/19/2012 4:16:23 PM ~ Berger You adjust to that can be very expensive We have a million dollar retaining wall. If you have some 1:54:58 ~ 1/19/2012 4:17:13 PM ~ Matt We are going to get something drafted before the weekend starts 1:55:20 ~ 1/19/2012 4:17:36 PM ~ Nicholas I think I confered with every county legislator in Laramie My recomendation to you is meet with them 1:56:16 ~ 1/19/2012 4:18:31 PM ~ Ian I will continue to do that 1:56:50 ~ 1/19/2012 4:19:05 PM ~ Ian We did bring back a couple of thi