File name: JACBudgetHearings2014_20131218_072223.dcr Folder: C:\Documents and Settings\happropriations\My Documents\JAC Audio 2014 0 ~ 12/18/2013 7:56:27 AM ~ Start Recording 6 ~ 12/18/2013 7:56:33 AM ~ Wednesday, Dec 18, 2013 042-WSGS - Geologic Survey 28 ~ 12/18/2013 7:56:55 AM ~ Bebout is Chariman for the day. 34 ~ 12/18/2013 7:57:01 AM ~ bebout: During WRS, will talk about issues but not get into the legislation until theafternoon. 1:58 ~ 12/18/2013 7:58:26 AM ~ Richards: Roll - Call. Quorom 2:32 ~ 12/18/2013 7:58:59 AM ~ Bebout: Welcome to Tom Drean. public Land Task Force. overview, then page by page in the budget. 3:30 ~ 12/18/2013 7:59:57 AM ~ Drean: 4.9 M biennium request. Budget is 85% salary and benefits. 320,000 less than last biennium, even after the last cuts. Staff level down, replaced employees with lesse xperienced people, so less cost basis. State has difficult time attracting quality people because we underpaid. UW grad in oil industry for 80,000 per year. I have managers with 30 years that earn ...less. We hire less experienced and train so salary totals down. 6:17 ~ 12/18/2013 8:02:44 AM ~ bebout: Given nature of where you are at and what you do...you train, teach, utilize and a % will move on? 6:38 ~ 12/18/2013 8:03:05 AM ~ Dream: Possible. Exception request for servers moving to cloud. not requesting more, shift of where the expenditures are. will meet statutory requirement except for work on fossil...no staff. Other entitites work on fossils, state museum, geology museum. Budget book overview: exc request in support services, comp tech. 86,000 will be payment to ETS. reduce expenditures in 200 sereis, shifts to 400 series. Headcount flat after reductions last year. 9:09 ~ 12/18/2013 8:05:36 AM ~ Drean: Handout - slides graphs show peak of 31 now reduced to 23, less people but more efficient. ...meeting requirements, deadlines, objectives. morework with fewer people. Reorganizaton took time to recruit..avg of 12-18 months to fill a position. Totally staffed next biennium so will expend funds. 11:37 ~ 12/18/2013 8:08:04 AM ~ Bebout: Operational aspects. 11:54 ~ 12/18/2013 8:08:21 AM ~ Drean: WSGS was not focused on what would deliver best value to state... 12:39 ~ 12/18/2013 8:09:06 AM ~ bebout: focus on coal sequestration so concentrated on that. DON- SER, Carbon mgt institute info. any exposure from state in terms of revenue, Email or meeting. 13:30 ~ 12/18/2013 8:09:57 AM ~ Burkhart: Trouble attracting people. How much are we below mkt for geologists? 13:50 ~ 12/18/2013 8:10:17 AM ~ Drean: 50% - Most attractive thing is to work in Wyoming and get out in the field. Reasons for category shift. Migrating from our servers to the cloud.. SAves the survey and the stae 41,000 by going to the cloud. 15:07 ~ 12/18/2013 8:11:34 AM ~ Bebout: how do you quantify? 15:13 ~ 12/18/2013 8:11:40 AM ~ Drean: Did an analysis, detailed spreadsheet 15:33 ~ 12/18/2013 8:12:00 AM ~ Bebout: Share summary, comments. 15:46 ~ 12/18/2013 8:12:13 AM ~ Lucke: Cost comparison over 4 years - about the time a local server of 213000 would be used. clous cost less. Most savings from backup system We create physical tapes. We will pay for space used, not holding empty space. 16:52 ~ 12/18/2013 8:13:19 AM ~ bebout: Send spreadsheet. 17:01 ~ 12/18/2013 8:13:28 AM ~ Drean: From an agency standpoint, will ETS charge what they say or could it go up. built conservative numbers. 17:40 ~ 12/18/2013 8:14:07 AM ~ Bebout: relationship 17:46 ~ 12/18/2013 8:14:13 AM ~ Nicholas: Relationship with ETs and transition, timeliness, money cost 18:04 ~ 12/18/2013 8:14:32 AM ~ Drean: Cnsolidation - worked fairly well, we still have 2 indiviuals housed within survey. 1/2 day of week they do outside services for ohter agencies. At times, there has been confusion on priorities. Communication between Flint and I. Weekly alls between Lucke and his counterpart at ETS...Since then worked pretty good. 19:30 ~ 12/18/2013 8:15:57 AM ~ Nicholas: ETS of your people, for outside agencies, does that money come back to your agency? 20:04 ~ 12/18/2013 8:16:31 AM ~ Drean: no 20:11 ~ 12/18/2013 8:16:38 AM ~ Nicholas: two FT employees, not working full week? 20:25 ~ 12/18/2013 8:16:52 AM ~ Drean: I would have kept the system. We work on a team approach.. fi it was a call in basis, would ahve lost teamwork and efficiency. Consolidated but doing same work. 21:10 ~ 12/18/2013 8:17:37 AM ~ Nicholas: who determines the allocation of their hours? 21:19 ~ 12/18/2013 8:17:46 AM ~ Drean: We do. 21:23 ~ 12/18/2013 8:17:50 AM ~ Nicholas: could ask for 40 hrs a week. 21:32 ~ 12/18/2013 8:17:59 AM ~ Drean: yes, basis of weekly phone calls. Prior to establishing that, it was dog's breakfst, did not know when they were coming and going. Collaberative effort with ETS. 22:11 ~ 12/18/2013 8:18:38 AM ~ Nicholas: do you need them for 40 hrs per week? 22:27 ~ 12/18/2013 8:18:54 AM ~ Dream: ETS has bowed to our wishes. Servers, has freed up space, do not need a server room so cut utilities cost. 900 Sereis expenditures, good use of state because we do not have our own labs, ....lIs Survey a good investment. Costs 2.5 B, support x billion revenue per year so yes. Rare Earth Report, work on oil and gas side. 24:22 ~ 12/18/2013 8:20:49 AM ~ Bebout: Future potential to develop natural gas with federal overreach, Report at public lands task force, circulate that report. summary of Casper preentation. 25:01 ~ 12/18/2013 8:21:28 AM ~ Drean: Unconventional aka shale or horizontal plays ....Pennsylvania will be 32 natural gas producer because of shale play. Balkan in ND, Industries are preferntially going to theareas where they can get started fster and use technology they want which is private land. 3 to 5 year range. On federal land, it would take a cycle time of 5 to 8 years. Wyoming encouraged by Powder River Basin, Oil curve for wyoming is upswing on production. believe it will continue if price of oil stays above 90 per barrell. Operators go through learning curve and efficiency curve, lower production and higher cost in the beginning...drilling time and well performance goes up over time. Powder River bsin has more private land..more initial results. Will hear more about unconventional methods. . Two staff in survey work on oil and gas insdustry, ...On gas side, Wyoming is not resource limited, lots of gas reserves.. Decline in gas production, wil contine, partly due to price and ainability for operators to get large projects off the ground due to permitting and...phase. ....Moneta divide.. Gas prices have gone up..hope it continues. Plays like Pennsylvania are putting a lot of gas in mkt, wil not be in shortage phase any time soon. 30:57 ~ 12/18/2013 8:27:24 AM ~ Drean: Trona, reserve..best , most atttractive natural trona reserves in world. It is economy, mkt driven. Coal is an end market story, pressure on power plnats. Wy has low cost production, good quality coal (low sulfur, low mercury). wy coal may displace other states. Best hope for sign inc for full production is export. Coal is being displaced by gas in USA. EPA regulations onc coal 32:54 ~ 12/18/2013 8:29:22 AM ~ Drean: Uranium - if price goes up, could go from 2.5M lbs to 10M . Resource is there but price is low. US and Russia agreement to bring Russia uranium into the mkt place is ending. Hope to inc. demand for mined uranium. 33:58 ~ 12/18/2013 8:30:25 AM ~ Stubson: Uranium price depression 34:38 ~ 12/18/2013 8:31:05 AM ~ Drean: short term flip. bigger impact is inc production in Kazaykstan. They have in situ like we do, so lower cost production. Put higher costs mines out of usiness. 35:41 ~ 12/18/2013 8:32:09 AM ~ Dream: Bentonite: as the oil industry goes so goes the Bentonite. Valuable resource. Staff looking after all those resources. Companies contact us...we provide resource assessment, evaluation and maps for entities looking to do business in the state. 36:56 ~ 12/18/2013 8:33:23 AM ~ harshman: Moneta Divide, how close and how big. 37:08 ~ 12/18/2013 8:33:35 AM ~ Drean: thousands of wells, uniqueness and challenges is sign water production with the gas production. How to efficiently handlt the water and the regulatory process? The more you have to handle water, the higher the operating costs, the lower the profit margin. 38:03 ~ 12/18/2013 8:34:30 AM ~ Burkhart: Thanks...Platte county wants to develop silica. Non-routine minerals like gold? general view? 38:43 ~ 12/18/2013 8:35:10 AM ~ Drean: Gold - hobby gold enthusiasts, gold with rare elements deposit in Sundance. we do not hae concentrated gold so no large mine. People underestimate geo tourism. Gold paning, jade hunting, dinosaurs, picking up rocks, siica_ fracing uses sand, silitca, - environmental concerns from mining so looking for sources closest to use.. We have clean, appropriatesiica source. 41:29 ~ 12/18/2013 8:37:56 AM ~ Bebout: Monetas divide - water issue, if treat water to DEQ and EPA, discharge- poinson creek, ..bad water creek, picks up other things people don't want in boysen. Canna is talking about a pipeline to avoid that. permiting - 350 wells apllication to BLM, AFter 6 years no answer to EMI application. Permiting delays and federal overreach impact Wy in millions of dollars. 43:15 ~ 12/18/2013 8:39:43 AM ~ Drean: Pg 3 -salary 43:41 ~ 12/18/2013 8:40:08 AM ~ Bebout: where you made cuts, vacant positions? 43:52 ~ 12/18/2013 8:40:20 AM ~ Drean: eliminated vacant positions, 44:04 ~ 12/18/2013 8:40:31 AM ~ Bebout: 220,000 submitted 44:12 ~ 12/18/2013 8:40:39 AM ~ Drean: lower salary and benefit adjustment by state. 200 series exc request -- Central svc inc. 800 and 900 series ..800 is resale..like purchase maps from GS..then resell ..Resale funds go into GF, we do not get credit for that resale. FTE stayed same at 23 45:40 ~ 12/18/2013 8:42:07 AM ~ Wallis: 39 when? now 23 which is appropraite 45:51 ~ 12/18/2013 8:42:18 AM ~ Drean: 31 in 2011-12, now reduced to 23 46:03 ~ 12/18/2013 8:42:30 AM ~ Drean: pg 4 - Qualifty of life - Natural resources. Geological survey came into existance because of threat of Wyomng being broken up, so territorial legislature securred assay people and geologisits, quantified the natural resources,, 47:35 ~ 12/18/2013 8:44:02 AM ~ WAllis: Seal says 1933? 47:55 ~ 12/18/2013 8:44:22 AM ~ Drean: was called state assay until 1933 - propectors could bring in some samples..in 1870. 1890, state geologist position formed. During depression, surevey was formed, because state was under financial pressure, wanted to quantify resources more. Approved by legislature in 1933. 49:18 ~ 12/18/2013 8:45:45 AM ~ Drean: pg 5 basic facts...Performance measure is feedback from public and industry. internet, web... pg 6 priorities..integrated. 52:18 ~ 12/18/2013 8:48:45 AM ~ Bebout: cellphones? 52:23 ~ 12/18/2013 8:48:50 AM ~ Drean: 2 phones for 2 years. 52:34 ~ 12/18/2013 8:49:01 AM ~ Bebout: agency had 2 cell phones for 2800 for 2 years. 52:48 ~ 12/18/2013 8:49:16 AM ~ Drean: i havea cellphone and the outreach person. 53:05 ~ 12/18/2013 8:49:33 AM ~ Bebout: specific request on page 12... 53:22 ~ 12/18/2013 8:49:50 AM ~ Drean: Have David Lucke do it. 53:35 ~ 12/18/2013 8:50:03 AM ~ Drean: hardware replacement, have a schedule. Reviewed and aproved by ETS, copy machines, we have large printers for maps, network security and application, 54:53 ~ 12/18/2013 8:51:20 AM ~ Stubson: network security system is SNORT? 55:03 ~ 12/18/2013 8:51:31 AM ~ Drean: yes..Software, apps, ; maintenance contracts, cellphones, 56:08 ~ 12/18/2013 8:52:35 AM ~ Bebout: ... 56:21 ~ 12/18/2013 8:52:48 AM ~ Drean: cloud - ETS. 57:30 ~ 12/18/2013 8:53:57 AM ~ Bebout: 57:35 ~ 12/18/2013 8:54:02 AM ~ meier; cell phone, get calling plan or ETs provides? 57:49 ~ 12/18/2013 8:54:16 AM ~ Drean: ETs provides plans. 57:57 ~ 12/18/2013 8:54:24 AM ~ Perkins: Software needs hardware to adequately run. 58:13 ~ 12/18/2013 8:54:40 AM ~ Lucke: replacement of computers, shelf life 4 to 5 years same for hardware and printers. 58:37 ~ 12/18/2013 8:55:04 AM ~ Esquibel: building on east incolnway? 58:47 ~ 12/18/2013 8:55:14 AM ~ Drean: on campus next to the geology building on campus. 59:05 ~ 12/18/2013 8:55:33 AM ~ Bebout: Thanks.. doubt there will be a callback. 59:39 ~ 12/18/2013 8:56:06 AM ~ 014-MHB-Miner's Hospital Board 59:56 ~ 12/18/2013 8:56:23 AM ~ bebout: Welcome, instructions. budget and bill.. 1:00:18 ~ 12/18/2013 8:56:45 AM ~ Richards: Voted and approved the bill for sponsorship 1:00:30 ~ 12/18/2013 8:56:57 AM ~ bebout: further discussion? 1:00:41 ~ 12/18/2013 8:57:08 AM ~ Group: no 1:00:45 ~ 12/18/2013 8:57:13 AM ~ Mary ellen Young: Introduces Don Stauffenberg. 1:01:02 ~ 12/18/2013 8:57:29 AM ~ Young: no 600 sereis. 900 series is majority of budget 1:01:48 ~ 12/18/2013 8:58:16 AM ~ Young: pg 4 Quality of Life contributions, possible mines opening means possibly more people enrolled in our program 1:03:08 ~ 12/18/2013 8:59:35 AM ~ Bebout: balance of fund? 1:03:15 ~ 12/18/2013 8:59:42 AM ~ Young 89 M 1:03:23 ~ 12/18/2013 8:59:50 AM ~ Bebout: revenues from interst income, good rate of return? 1:03:34 ~ 12/18/2013 9:00:01 AM ~ Young: around 5%, budget allows us to spend 5% but we have not been spending it. 1:04:02 ~ 12/18/2013 9:00:29 AM ~ Bebout: state Treasurer allowsspending? 1:04:14 ~ 12/18/2013 9:00:41 AM ~ young: yes...active, disabled, incapacitiated miners. We are a payer of last resort by statute. 1:04:39 ~ 12/18/2013 9:01:06 AM ~ Stubson: Payor of last result, what does that mean for deductibles and co pays. 5000 allowance under miners asst program can it be used for that dedcutibel. 1:05:13 ~ 12/18/2013 9:01:40 AM ~ Young: yes - we help them with their out of pocket expenses. With change in health care program and higher deductible, we will hae a higher draw on our money..not sure legally what we can do. Board had 4 programs, now offers 3. Movile wellness was suspended in 2012 ..955 duplication of benefits with miner's employers. Money was still in budget so did not have to raise money for miner's medical assistance and hearing aid program. Those programs are flat, but could be over budget wihtout using that money. 1:07:01 ~ 12/18/2013 9:03:28 AM ~ meier: changes and federal structure..may be able to institue wellness benefit... Federal structure limits to once every 5 years. Wy structure is once a year.. ...revisit details. 1:08:06 ~ 12/18/2013 9:04:34 AM ~ Young: small group of miners with no optons other than wellness vans. It was 1% or less. wording of statute 1:09:18 ~ 12/18/2013 9:05:46 AM ~ Stauffenberg : explanation. We did not elimniate paying those, 1:10:05 ~ 12/18/2013 9:06:33 AM ~ Young: hearing aid purchasing program...contract with preferred provider, miner reimbursed 2000, outside of network reimbursed 1500. 1:10:43 ~ 12/18/2013 9:07:10 AM ~ hastert: Hearing Aid Program - avg cost of hearing aids? 2000 to 6000 cost. 1:11:14 ~ 12/18/2013 9:07:41 AM ~ Young: not discussed now..hearing aid claims never submitted to primary ins first so we were not recapturing money from priamry so miners could double dip. As of Dec 1, claims must go to primary first, unless miner only has medicare, which will not pay for hearing aids.... 1:12:16 ~ 12/18/2013 9:08:43 AM ~ Young: miners medical assitance program is largest program. 500 per year per miner to be spendt. Reined in spending, as out of proportion, also helpedwith prescripton drugs.. ..worker's comp case... not going to cover expenses, clearly not related to mining. chronic reoccuring respiratory.. 1:14:41 ~ 12/18/2013 9:11:08 AM ~ young: ID card - 2009 statute change - ... 1:16:45 ~ 12/18/2013 9:13:12 AM ~ Bebout: 365,000 paid in April? 1:16:58 ~ 12/18/2013 9:13:25 AM ~ Young: Even if you say don't bill miner's association they will do it anyway, 1:17:27 ~ 12/18/2013 9:13:54 AM ~ Young: report EBMS - adminster plans or pay claims on our behalf, all money in 900 is for that program. Miners getting repaired before retirement.. 1:18:33 ~ 12/18/2013 9:15:00 AM ~ Stubson: EBMS arrangement for services, RFP periodically, how often, good response? 1:18:52 ~ 12/18/2013 9:15:20 AM ~ Young: Every 3 years, last 3 x the EBMS has been the only bidder - bid 350,000 last time, negotiatied down to 315,000 because we took over responsibilites. 1:19:48 ~ 12/18/2013 9:16:15 AM ~ Stubson: Why so little interest? 1:19:58 ~ 12/18/2013 9:16:25 AM ~ young: procurement sent out 12 RFP, Denver, Rock springs, billings, Gillettee. do not know why there is a lack of interest. 1:20:22 ~ 12/18/2013 9:16:49 AM ~ Esquibel;? 1:20:43 ~ 12/18/2013 9:17:10 AM ~ young: time and advertising costs..job to switch records over. 1:21:04 ~ 12/18/2013 9:17:31 AM ~ Esquibel: Better off to negotiate then take time and money to do RFp? 1:21:26 ~ 12/18/2013 9:17:53 AM ~ Young: had not sent one in 6 years so tried it... Telecommuncitions, office supplies and travel, increased because of responsibilities taken ferom EBMS. in house registrations, phone calls, pg 8 = exception requests. 1:22:56 ~ 12/18/2013 9:19:23 AM ~ bebout: go through as pop up so start on page 12 1:23:08 ~ 12/18/2013 9:19:35 AM ~ Stubson: pg 11, mobile wellness testing...not an active program, don't know what youare doing, still have request for 1 M? 1:23:38 ~ 12/18/2013 9:20:05 AM ~ Young: yes, Had exception rquest for 1 M for miners medical assistant, He suggested dropping the exc request and use the 1 m for the mobile testing..had been 2.5 M 1:24:17 ~ 12/18/2013 9:20:44 AM ~ Stuson: intent to use as part of medical asst program so accurate reflection is to put in that part of the budget. 1:24:40 ~ 12/18/2013 9:21:07 AM ~ Young: Correct. 1:24:48 ~ 12/18/2013 9:21:15 AM ~ Stauffenberg: some members would vote program back into the budget. If that happened, would be back in the interim to refund. 1:25:36 ~ 12/18/2013 9:22:03 AM ~ Stubson: Does use require a B-11 or a process? 1:25:48 ~ 12/18/2013 9:22:15 AM ~ Jones: The funding for all of these programs is contained within the std budget so does not take formal action, B-11, to move the $. 1:26:16 ~ 12/18/2013 9:22:44 AM ~ bebout: 7.536 M dollar revenue, incl exc reuest, bottom of pg 11 total requ = 8.5 M. next page object code is 8595. Why do we see the ? 1:27:10 ~ 12/18/2013 9:23:37 AM ~ JOnes? 1:27:16 ~ 12/18/2013 9:23:43 AM ~ bebout: pg 11 pg 12 1:27:28 ~ 12/18/2013 9:23:55 AM ~ Jones 8595865 is relfective of original submission, Conversation with Gov reflected Boards decision to discontinue testing so 1:28:07 ~ 12/18/2013 9:24:34 AM ~ Bebout: bottom of pg 11 the 1 M is out so budget started at 7. 1:28:25 ~ 12/18/2013 9:24:53 AM ~ Jones: best relected on table on page 14 ; std budget =, exc req = overall 7536407 dollars. 1:29:06 ~ 12/18/2013 9:25:33 AM ~ Bebout: 8.5 M ? 1:29:16 ~ 12/18/2013 9:25:43 AM ~ Young: right - I was going to write a budget exception request. 1:29:31 ~ 12/18/2013 9:25:58 AM ~ Young: Pg 12 priority one - board travel . previously board travel and employee travel were grouped, now seperate. 6585 dollars. 8000 for office supplies, do more mailings. telecommunications request..866 number used by miners. 19348 total dollars for exc request. 1:31:41 ~ 12/18/2013 9:28:09 AM ~ Stubson: money attached to expanded duties. Is there a savings? 1:31:59 ~ 12/18/2013 9:28:27 AM ~ Young: cut annual payment by 45,000 plus we have miners registering that should be registered. In past, anyone who filled out paper and registered were approved because of lack of understanding of criteria. 1:32:36 ~ 12/18/2013 9:29:03 AM ~ Bebout; thanks..serve needs of miners. 1:32:57 ~ 12/18/2013 9:29:24 AM ~ Stauffenberg: State mining inspector for 16 years - attempts to legislate what we could not do by rule has caused reduction in peole who wer enot eleigilbe for benefits but wer recieveing them....People who deserve the benefits are getting them. 1:34:01 ~ 12/18/2013 9:30:28 AM ~ hastert: Board somewaht in infancy, put together in 2000. Commend the board. 1:35:10 ~ 12/18/2013 9:31:37 AM ~ Bebout: Senate file.? 1:35:22 ~ 12/18/2013 9:31:50 AM ~ hastert: senate file. 1:35:29 ~ 12/18/2013 9:31:56 AM ~ bebout: senate file, hs to be introduced 2/3 , would appreciate you both available to testify. 15 minute break, 9:50 begin retirement, work budget first,....then talk about the options, go through clearly, then work the bills. 1:36:44 ~ 12/18/2013 9:33:11 AM ~ Harshman: 1:37:18 ~ 12/18/2013 9:33:46 AM ~ Bebout: closing. 1:37:33 ~ 12/18/2013 9:34:00 AM ~ Pause 1:37:33 ~ 12/18/2013 9:53:17 AM ~ Resume 1:37:53 ~ 12/18/2013 9:53:36 AM ~ 072 WRS Wyoming Retirement System Ruth Ryeson, Executive Director Steve Sommer, Board Vice-Chair Harry Wales, Deputy Director Laura Ladd, Board Chairman 9 investment plans, 2 for volunteer; 24% retirees, 8% active. Board is 11 member, which governs retirement system. Volunteer groups governed by different boards, each 6 members. In 2008, 1 point below average pension plans. 1:44:42 ~ 12/18/2013 10:00:25 AM ~ Nicholas: Average basis point has from 6.9 to 10+ points over timeframe. 1:45:08 ~ 12/18/2013 10:00:51 AM ~ Ryeson: Plans now include legal costs. Basis point 1:46:16 ~ 12/18/2013 10:01:59 AM ~ Ladd: Basis point = $500,000. 1:47:15 ~ 12/18/2013 10:02:59 AM ~ Bebout: Defined pension plans, basis points? 1:47:39 ~ 12/18/2013 10:03:22 AM ~ Ryeson: 35 basis points, defined contribution. 1:48:30 ~ 12/18/2013 10:04:13 AM ~ Ryeson: Pie charts, rating system.20% of budget over last few years. Page 6, breakdown of employees in plan. Page 5, rate of return on plan. Total fund up 9.1%; as of November, up 12.3% Benchmark rate of return 1:52:18 ~ 12/18/2013 10:08:01 AM ~ Harshman: 9 months, $7.6M. benchmark, or less active, investment. 1:53:01 ~ 12/18/2013 10:08:44 AM ~ Ladd: 2-3 basis points, 5 year strategic benchmark as opposed to now.Team makes tactical decisons within asset classes. 1:54:57 ~ 12/18/2013 10:10:40 AM ~ Bebout: Rate of return, State Treasurer's Office and Retirement 1:55:58 ~ 12/18/2013 10:11:42 AM ~ Ryeson: STO has different goals as opposed to Retirement System. Retirement has higher goals than trearuer, so different investments. 1:57:59 ~ 12/18/2013 10:13:43 AM ~ Bebout: Pension plans nationwide? 1:58:08 ~ 12/18/2013 10:13:51 AM ~ Ryeson: Many plans lower contributions when stock market returns are good instead of continued investments at level rate. 2:01:23 ~ 12/18/2013 10:17:07 AM ~ Sommers: Have tightened up benefits, COLA 2:02:37 ~ 12/18/2013 10:18:21 AM ~ Ladd: No automatic COLA for state of WY has assisted in overall funding. 2:03:16 ~ 12/18/2013 10:18:59 AM ~ Harshman: How many people are utilizing 402(K) contribution? 2:05:19 ~ 12/18/2013 10:21:02 AM ~ Reyson: 12,000 - 13,000 participants, particularly state employees. 2:06:26 ~ 12/18/2013 10:22:10 AM ~ Nicholas: 2006, $150M contribution to Retirement system for school district employees. 2:07:04 ~ 12/18/2013 10:22:47 AM ~ Sommers: 8% interest over 30 years was a lot of money 2:07:35 ~ 12/18/2013 10:23:19 AM ~ Hastert: $20 match for 401(K) 2:09:27 ~ 12/18/2013 10:25:10 AM ~ Ryeson: Deferred compensation plan, first contribution of $20 by employee matched $20 by state. 2:10:20 ~ 12/18/2013 10:26:03 AM ~ Ryeson: 12,438 members currently utilize $20 match. 2:11:25 ~ 12/18/2013 10:27:08 AM ~ Ryeson: Can opt out of retirement plan when new employee 2:12:44 ~ 12/18/2013 10:28:28 AM ~ Meier: Manager fees, enhance ability that those types of returns are possible 2:14:04 ~ 12/18/2013 10:29:47 AM ~ Ladd: 2 major components in investment program: size of staff and compensation. Compensation continues to be issue with higher level of professionals at least at a median level. 2:16:56 ~ 12/18/2013 10:32:39 AM ~ Hastert: Deferred compensation, sign up? 2:17:22 ~ 12/18/2013 10:33:05 AM ~ Ryeson: State sponsored program with state employees, optional for school district employees. 2:18:04 ~ 12/18/2013 10:33:47 AM ~ Hastert: Cost to employers? 2:18:20 ~ 12/18/2013 10:34:04 AM ~ Ryeson: No cost, unless school district(s) want to match contribution. 2:19:27 ~ 12/18/2013 10:35:10 AM ~ Ryeson: Page 10, priorities. 2:20:18 ~ 12/18/2013 10:36:02 AM ~ Ryeson: Retirement system expenses paid thru investments, not much general fund money. Page 14, revenues, investment income variable, contributions, $300M, pay out closer to $400M in benefits. Investment income pays remainder of benefits, than invested in corpus of investments. 2:23:03 ~ 12/18/2013 10:38:46 AM ~ Sommers: Big plan, 50% contributions paid by school districts. State employees only 22%. 2:24:22 ~ 12/18/2013 10:40:05 AM ~ Ryeson: Exception, RAIN program. Ongoing costs of $15M, received $7M to update system. Spent $6.4M, should be total of $9M. Ongoing costs of $3M for continued programming and licenses, however, contract outside provider for $489,000 and licenses of $120,000 for biennium. 2:26:57 ~ 12/18/2013 10:42:40 AM ~ Ryeson: Original option included more programming . Live in spring, 2014. 2:30:01 ~ 12/18/2013 10:45:45 AM ~ Bebout: approved budget of $8M. 2:30:19 ~ 12/18/2013 10:46:02 AM ~ Ryeson: Legal capabilities, one general counsel, added during last 5 years; additional assistance to general counsel. Investment contracts work is at least half of work load. 2:33:41 ~ 12/18/2013 10:49:24 AM ~ Meier: Need to have good legal counsel to protect investment team. 2:34:59 ~ 12/18/2013 10:50:42 AM ~ Ryeson: Current general counsel more training with legal assistant. 2:36:32 ~ 12/18/2013 10:52:15 AM ~ Ryeson: Page 20 and 33, salary issues 2:36:46 ~ 12/18/2013 10:52:29 AM ~ Ladd: Base salary increase of $66,000 of executive director salary per year at median. denied by governor. Page 33, investment personnel base salary $33,000 per year at median level. 2 investment officers and analysts salary increase, $470,000 increase over biennium for investment team, denied by governor. 2:41:48 ~ 12/18/2013 10:57:31 AM ~ Jones: Excess spending authority being requested, ability to increase salary over biennium by agency 2:43:32 ~ 12/18/2013 10:59:15 AM ~ Sommers: Pay competitively, request to governor and AandI. Be made contractors at requested levels of money. JAC wanted full-time positions. Board given authority to establish salaries for 5 positions discussed. Maximum amounts of salary of individual jobs noted in footnote. Budget listed actual salary, not maximum allowed. Asking monies to allow maximum amounts of salary previously footnoted in FY13-14. 2:47:38 ~ 12/18/2013 11:03:21 AM ~ Ryeson: Page 21, request for IRS termination letters. Ongoing process, requalify plans periodically. governor recommended approval 2:49:39 ~ 12/18/2013 11:05:22 AM ~ Ryeson, page 22, ETS cost of phones, admin section 2:50:16 ~ 12/18/2013 11:06:00 AM ~ Ryeson: page 26, RAIN, one time cost, project manager, develop training, ETS approved, Page 31, alternative investment consulting services, 2:56:02 ~ 12/18/2013 11:11:45 AM ~ Bebout: Why need now? 2:56:09 ~ 12/18/2013 11:11:53 AM ~ Sommers: Different types of investments, never utilized before. Need addiitonal expertise, hedge funds and private equity investments. 2:57:10 ~ 12/18/2013 11:12:53 AM ~ Perkins: State Treasurer has this type of expertise. 2:58:03 ~ 12/18/2013 11:13:47 AM ~ Ryeson: Need good knowledge to invest in particular funds, including hedge funds. 3:00:52 ~ 12/18/2013 11:16:35 AM ~ Sommers: Board has been very cautious to participate in these new investments. 3:03:11 ~ 12/18/2013 11:18:54 AM ~ Ryeson: Pagte 32, Outside legal consulting. $225,000 biennium, govenor approved less than half. $5,000-$12,000 per contract for a new manager. 3:06:13 ~ 12/18/2013 11:21:57 AM ~ Ryeson: Special revenues, increase COLAs to highway patrol, game and fish 3:07:33 ~ 12/18/2013 11:23:16 AM ~ Ryeson: Voluntary EMT budget, standard budget, general fund money. 3:08:46 ~ 12/18/2013 11:24:30 AM ~ Harshman: Enough money? 3:09:01 ~ 12/18/2013 11:24:44 AM ~ Sommers: 10% of premium, should be enough. 3:09:33 ~ 12/18/2013 11:25:17 AM ~ Meier: 10% investment 3:09:51 ~ 12/18/2013 11:25:34 AM ~ Sommers: Flows into retirement fund. 3:10:15 ~ 12/18/2013 11:25:58 AM ~ Richards: Fireman's fund gets 50%. 3:10:33 ~ 12/18/2013 11:26:16 AM ~ Ryeson: Deferred Compensation Plan. Members pay investment costs, Grown in membership and contributions. 3:13:03 ~ 12/18/2013 11:28:46 AM ~ Stubson: assets in plan, page 50? 3:13:29 ~ 12/18/2013 11:29:13 AM ~ Ryeson: partly 25% passthru to deferred compensation. 3:14:07 ~ 12/18/2013 11:29:50 AM ~ Bebout: decision made by each participant as to amount. 3:15:01 ~ 12/18/2013 11:30:45 AM ~ Ryeson: Exception request of $145,000 to cover investment consultant contract for biennium. Monies moved to admin, replacement dollarrs 3:16:41 ~ 12/18/2013 11:32:24 AM ~ Jones: Have to take a look. 3:16:48 ~ 12/18/2013 11:32:32 AM ~ Ryeson: Requested an additional retirement educator on staff to discuss retirement benefits and deferred cost. Great West provides person, focused on bringing in new members as opposed to explaining benefits. Cost savings ($56,000) if obtain new person as opposed to using Great West personnel. governor denied. 3:21:41 ~ 12/18/2013 11:37:24 AM ~ Kerry: WY Education Association. Education is good. 3:22:49 ~ 12/18/2013 11:38:33 AM ~ Beardsley: WY Association of Employees. Request by employees for more information, an additional person would be good. 3:23:41 ~ 12/18/2013 11:39:24 AM ~ Jones: page 55, increase from base to standard budget, estimated based on most current plan for cost allocation to all agencies. 3:27:18 ~ 12/18/2013 11:43:01 AM ~ Nicholas: Increases, overall costs? 3:27:30 ~ 12/18/2013 11:43:13 AM ~ Ryeson: Current budget of $7.5M this year, after 2014, RAIN will be completed. 3:28:17 ~ 12/18/2013 11:44:00 AM ~ 3:28:42 ~ 12/18/2013 11:44:26 AM ~ Stop Recording