File name: JAC Budget hearings 2013_20121213_131546.dcr Folder: C:\Documents and Settings\happropriations\Desktop\JAC Hearings 2013 0 ~ 12/13/2012 1:20:44 PM ~ December 13, 2012 JAC AGency Hearings Retirement Department Williams: Introduction of staff at hearing, 0 ~ 12/13/2012 1:20:44 PM ~ Start Recording 10 ~ 12/13/2012 1:20:54 PM ~ December 13, 2012 JAC Agency Hearings 29 ~ 12/13/2012 1:21:12 PM ~ Wyoming retirement system 40 ~ 12/13/2012 1:21:24 PM ~ Director Williams: Introduction of staff, will give update of fiscal health, reports are in a packet provided electronically and paper includes plan closure document. Discussion of change from defined benefit to defined contribution..myriad impacts, cultural, ecomonic impacts for system, employees and members of the state. Reports are extensive and comprehensive. How to fund cola options. since 2008, WRS has not been able to afford to pay COLA. In the past, surplus funds used to pay for required increases. In 08, tere was a 30% decline in the assets of the fund. Legislature now has responsiblilty to recommend and permit colas with input from board. There are stipulations that funding is available. Never included a contribution level seperate and sufficient to fund Cola. We had good investments and good returns. We think there needs to be additional funding whether from GF, or matched contributions, we have no position on that. COLA's will require additional funding. Before we can produce the COLA, money must be sufficient in the plan. We want to hve a cushion in fund after COLA is granted so the fund is in good health. Final report is about salary spiking..benefits paid are a retirement of highest avg salary so prior to retirement, salaires would be inc. inordinately through increases, overtime bonuses, promotions, all to increase the avg pay. The compensation and benefits would not have been funded over life time... 6:46 ~ 12/13/2012 1:27:30 PM ~ Williams: Intro of Steve Sommers, Chair of WSR board, Mark Randall, represents GRS, our acturial firm, Diane Hunt, acturiaral from Denver, Polly Scott, manager of deferred compensation fund, Ben Brandis, attorney is general counsel, ami denama, communication officer: websites, town halls, ... Wyoming Retirement System health in all measures is strong. Changes, modifications, amendments will substantiate that. Pugh Reports characterize us as a strong performing fund. Virtually all assessment organizations have us in the top 10% of nation. success = 80% funding level or higher. Board monitors all aspects of the plan. Will make changes in assumptions...Funding ration is 81.% The actuarial method to incorporate gains and losses into system involves smoothing so gains or losses are not over represented in a given year. Midst of acturarial evaluation, effective jan 1, 2013. Likely to see a small dip from 81.9% Each year for last 5 years have been smoothing in loss of the last 5 years. If we do better than assumed rate we have gains, if less we have losses. We think there will be a positive trend. National level fiscal cliff...We are up for the year about 12$ but if hit fiscal cliff or no agreement, do not know what the decline may be. We hve 4 investment professionals who have done an excellent job in positoning our investment portfolio. Moved steadily up in the last 5 years, top quartile in last 3 years. 2010 had a modest increase in contribution rate, Last year introduced a new tier for new employees. Reduced year from 3 to 5 for averaging. change retirement age. Those changes have represented about 1.2 billion in normal costs. Normal costs are benefits accrued annually. Will save 1.2 billion over the next 30 years. Reduced anticipated unfunded liability. Sign. changes to ensure health of the plan. In short term, things can upset basket..long term..no Possible to pay colas to any specific plan: If legislature wanted to provide 3%, there would not be a sufficient cushion. 17:36 ~ 12/13/2012 1:38:20 PM ~ Nicholas; age adjustment.. 17:44 ~ 12/13/2012 1:38:28 PM ~ Meier: acturarial changes, different way to look at mortality tables..may be adopted at 18:56 ~ 12/13/2012 1:39:39 PM ~ Williams: External factors ..acturarial firm...recommendation adoption ofn ew generational mortality tables..can modify as much as you want. by incorporating tables, we get a more realistic view of cost. Other ranges of assumptions have minor effects. Investment return has a larger affect. Assumed 8% rate of return. Stock mkts, bonds, private investment, hedge funds, commoditites make up the return. Look at a variety of sources, historic performance, acuary company,...What you cn anticipate is weighted on asset allocation. WE may be able to sustain the 8% return, an integration of input from a great variety of experts. a low return environment for the next decade or so..reduce assumption by some percentage. Each 1/4 of a % could transalate into 1 or 2 % inc. in contribution requirement. Do it out of conservatism. In the midst of receiving input, come together in Feb, may modify. Inflation assumption and real return assumption may be modified. it is a comprehensive process. Investment assumption is another. Board is reviewing, will make a decision on a recommendation. 24:50 ~ 12/13/2012 1:45:34 PM ~ Acturarial; If changes are implemented, would probbably drop slightly. Funded rate across nation is 70 some %. Drop to 7.5% assumption rate of return. changing the mortality rate..Life expenctanices are incresing so need to be reflected, benefits are more costly. Can adjust mortality rates when necessary. Once you make a mortality rate change, it is for the long-term. Cost contribution rate state =7.12% would go to 9%. In public employee plan, the annual payroll is about 1.7 billion, 36,000 actives in plan, 1% inc =17 million . Currently state is putting in 125 million, would increase. 28:58 ~ 12/13/2012 1:49:42 PM ~ Summers: Baord has decided changes in assumptions will be after the evaluation is finished. Likely the funding ratio will drop. then additional 2% on top of that. Same with contribution. 2012 evaluation projected forward. Economic, demographic, acturial assumptions looking at about 9.15% so if weadopt new assumptions, would add 3.5 to 4% increase in contribution going forward. 31:04 ~ 12/13/2012 1:51:48 PM ~ Nicholas: Do you think we are at that point? 31:18 ~ 12/13/2012 1:52:02 PM ~ Sommers: how accurate is assumption? We don't know until the evaluation is completed. I would recommend we can come in this summer and give you a better idea. You may be able to phase it in over several budgets. 32:27 ~ 12/13/2012 1:53:11 PM ~ Nicholas: 4% inc fiscal impact = 40 millin per year? 32:40 ~ 12/13/2012 1:53:24 PM ~ Sommers: no: 1% increases 18 million per year so 72 million dollars. 33:07 ~ 12/13/2012 1:53:51 PM ~ Nicholas: Total impact, GF employees would be half of that 33:22 ~ 12/13/2012 1:54:06 PM ~ Sommers: State employees are only bout 22% of total, there are teachers, colleges. Certain % covered by other funds like hihgway, game and fish, etc. 33:56 ~ 12/13/2012 1:54:40 PM ~ Nicholas: Never mad ea decision that evaluator did not say the fund can take it. Looking back, made a series of decisions with catastrophic consequences. With 4% will be contribuing at law enforcement rate without law enforcement benefits. Why is that program better? 35:43 ~ 12/13/2012 1:56:27 PM ~ Sommers: Law enforcement is considerable higher and still would be even at ..%. All of plans will have increases. 36:19 ~ 12/13/2012 1:57:03 PM ~ Nicholas: Budget: Gov says bring back 8% lower but GF hit or 4% reffective eduction in salaries if assigned to employees. Biggest fiscal impact along with medicaid/medicare changes. Meet with staff to work on section 300, to reevaluate and work on certain triggers. Ex: if we do not move above 82% committee will bring a recommendation. Then legislature will make decision. 38:24 ~ 12/13/2012 1:59:08 PM ~ sommers: What we will provide this summer is an estimate. not clear on trigger. takes a statutory change. 38:47 ~ 12/13/2012 1:59:31 PM ~ Nicholas: Come back with recommended solution. We will decide right now, that we will do something to turn the ship next year, not wait two years. We can no continue to allow erosion. Do you agree? 39:46 ~ 12/13/2012 2:00:30 PM ~ Sommers: you have that perogative now. 40:04 ~ 12/13/2012 2:00:48 PM ~ Nicholas: JAC has a change in membership. It is easier for them to make decision when this group realizes we have a problem and need to put in corrective measures. Problem was not fixed last year. Do not predict the solution. Going to say we see a certain level of improvement or changes by next summer, the JAC will consider legislation for future action. New chair and committee? 41:35 ~ 12/13/2012 2:02:19 PM ~ Meier: Acturarial assumptions: When legislature brings forth salary increase, take half of it and put into retirement fund. Have that be policy and monitor retirement system. Part of salry increase goes to retirement contribution and part to employee pay. Employees do not take a hit, will converge to 100% acturially funded system.. Acturarially over 30 years. We have some time to move and evolve without an unreasonalbe hit to folks coming through process. 44:39 ~ 12/13/2012 2:05:23 PM ~ Nicholas: salary increases do not work that way. WE give a salry block to UW and comm. colleges, they distribute in terms of Hay study. One may get zero, one a more sign amoutn. People move through steps, bands.... 45:45 ~ 12/13/2012 2:06:28 PM ~ Meier I can see where that will not work and I agree with you. You do have those steps and that is what we see. Actuaries can do that. That will be built into the actuary programs. That would move the error in relative terms..... That would drive it in the 47:26 ~ 12/13/2012 2:08:10 PM ~ Bebout I came from a different frame of mind. I don't believe 8% is a realistic return. I think we have to be more aggressive. I am saying we need to be more aggressive. Steve I think we need to have a serious discussion. I don't want to see the State Retirement Plan to be in jeorperdy. 49:37 ~ 12/13/2012 2:10:21 PM ~ Harshman I think we will get more information after the first of the year. I think there are a lot of options out there. I think there are a lot of thiings we could talk about. I think the Retirement Board can bring options to us. 51:03 ~ 12/13/2012 2:11:47 PM ~ Nicholas We know that we are going to have a 3 or 4% increase. We could do a bill this year for 2% and additional increase next year. Next year we can decide what the rate should be. Tom do 52:31 ~ 12/13/2012 2:13:15 PM ~ Williams I have heard what are saying. When we say that we are conservative, we are saying as that we want to make decisions based on the best information available. Raisers - 5 1/2% is what we are considereing over future years. We make these forcasts for over a 30 years program. We can fix the plan today by increases the plan, say 6%, put could overfund the plan. I would not harm us in any way 56:13 ~ 12/13/2012 2:16:57 PM ~ Harshman WE know that it is going be more than 1% 56:36 ~ 12/13/2012 2:17:20 PM ~ Nicholas We will prepare a bill for 2% this year and 2% the following year. It's an announcement th the world that we are considereing these changes. What I am hearing is that something is required. I don't think we can sit here and just wait for April 58:35 ~ 12/13/2012 2:19:19 PM ~ Williams I think the board..... we wanted to come with our best information. 59:18 ~ 12/13/2012 2:20:02 PM ~ Nicholas We will have a bill prepared for January 59:50 ~ 12/13/2012 2:20:34 PM ~ Bebout I'm relying on the callback information. I looking forward to that opportunity to hear those options. 1:01:04 ~ 12/13/2012 2:21:48 PM ~ Nicholas I don't think there is lack of support. Part of that committment is fully funding this plan. 1:01:38 ~ 12/13/2012 2:22:22 PM ~ Edmonds We have talked about changes to the plan over the year. I don't think ....... It's not being discussed a defined contributuion plan. 1:03:12 ~ 12/13/2012 2:23:56 PM ~ Nicholas Any other questions. 1:03:34 ~ 12/13/2012 2:24:18 PM ~ 1:03:49 ~ 12/13/2012 2:24:33 PM ~ Nicholas My personal view is that we eventually need to get back to a 50/50 split 1:04:43 ~ 12/13/2012 2:25:26 PM ~ Harshman What you have said is fine. We will change it as needed 1:05:12 ~ 12/13/2012 2:25:55 PM ~ Nicholas Dave include 1:05:28 ~ 12/13/2012 2:26:12 PM ~ Dave Next question, 1:05:41 ~ 12/13/2012 2:26:25 PM ~ Steve Once the board accepts those recomendation/assumptions. We are real hard to be looking at a 7.75% return. What I am requestion is that 1:07:32 ~ 12/13/2012 2:28:16 PM ~ Nicholas We have two plans 1:07:55 ~ 12/13/2012 2:28:39 PM ~ Steve Everyone one of the plans with the acceptions 1:08:23 ~ 12/13/2012 2:29:07 PM ~ Nicholas 1:08:34 ~ 12/13/2012 2:29:18 PM ~ Dave 2% in 2013, and 2% in 2014. 1:09:12 ~ 12/13/2012 2:29:56 PM ~ Harshman That could be a little strong 1:09:38 ~ 12/13/2012 2:30:22 PM ~ Steve Start Dec. 2013 1:10:09 ~ 12/13/2012 2:30:53 PM ~ Dave Our plan would be to send this over to all the employees. Is that fine. 1:10:39 ~ 12/13/2012 2:31:23 PM ~ 2 1:11:08 ~ 12/13/2012 2:31:52 PM ~ Nicholas Lets work for another 40 minutes. 1:11:29 ~ 12/13/2012 2:32:12 PM ~ Williams Impact of the public employees plan SOme calrity of the benifins of closing or increasing to the employees. We have discussed our belief that a defined benefit program. It's a lower fee The are 45% more efficient than difined contribution. We would agrue that the defined contribution plan........ New employess are required to go under a defined contribution plan..... It would produce a lesser benefit than the defined benefit plan We are talking about closing it off to all new hires. New people will be coming in to help pay for the older ones going on the plan. If you close the plan, that would not be an option.If you close the plan, the average worker would have about 9 years left in the plan. I believe that we would have to contribute $250 per year. If you have a closed group, those moves quite coming into the plan. Therefore, the investment stratagy would have to change. Terminating does not rid us of any responsibility. 1:20:21 ~ 12/13/2012 2:41:05 PM ~ Nicholas The statuts state that ...... The state cane say, we dare not 1:21:12 ~ 12/13/2012 2:41:56 PM ~ Williams My sense is that there are I don't think there is any pressure for the state There is proliferal so long as we have somies sufficie to fund those responsibilites. 1:23:35 ~ 12/13/2012 2:44:19 PM ~ Randall Any benenifits left over. A decission was made Bankrupt quit sending paychecks to retirees 1:25:08 ~ 12/13/2012 2:45:52 PM ~ Williams We have Mr He have significantly less experience in this areana Becuase he has this contract and anticipated that anything that needs actuarial we can call on them. 1:26:55 ~ 12/13/2012 2:47:39 PM ~ Randall We have worked with other states around the countary. We have worked with both types of plans. We have worked with 36 of the 50 states. In Neveda, we developed a hybred approach. In Utah, the state is capped.. In Mass. the defined plan is being gradually reduced as the defined begefit plan is being stagged in. Individual investors never fare as well as group plans. Self direct defined contribution approach. 1:31:07 ~ 12/13/2012 2:51:51 PM ~ Edmonds Do you advise whcih way to go 1:31:31 ~ 12/13/2012 2:52:15 PM ~ NIcholas 1:31:41 ~ 12/13/2012 2:52:24 PM ~ Williams $6.6 billion 1:31:58 ~ 12/13/2012 2:52:42 PM ~ NIcholas If we were 100% funded we are 19% underfunded. That is about 1/2 of our bi-annual budget. Lets take a break! 1:57:40 ~ 12/13/2012 3:18:24 PM ~ Nicholas closure fund 300m lost . 1:58:23 ~ 12/13/2012 3:19:07 PM ~ Harshmann one billion dollar event- uptick 1:58:47 ~ 12/13/2012 3:19:30 PM ~ williams investment earnings smoothed in . new assumptions, 8% to a 7.23% 1:59:57 ~ 12/13/2012 3:20:41 PM ~ Nichalos All we have to do is continue forwad 2:00:34 ~ 12/13/2012 3:21:17 PM ~ Harshman We are also making 5 year smoothing 2:00:56 ~ 12/13/2012 3:21:40 PM ~ Randall What you are saying that is that once you get beyond the 5 years should improve When you see a 12% return is good however we are looking @8% so it is only 4% better than we planned. 2:03:04 ~ 12/13/2012 3:23:47 PM ~ Williams We won't have to go through Tab B Tab C we were asked to develop this study. Some people can increase the last 3 or 5 years can get an increased salary to increase their retirement. That is unfair when a majority of their career has been at a lower pay. We understand that that is it not unusal for people higher salaries later in career. This just gives us the authority to investigate any "spike" salaries and make adjustments to thier retirement amount if appropriate. There is no evidence that that is happening in the State of Wyoming. 2:07:55 ~ 12/13/2012 3:28:38 PM ~ Nicholas is overtime calculated 2:08:25 ~ 12/13/2012 3:29:09 PM ~ Williams yes. 2:08:36 ~ 12/13/2012 3:29:19 PM ~ Nicholas still takes place. Faculty members with summer classes still take place 2:09:19 ~ 12/13/2012 3:30:03 PM ~ Williams not reflected in data. new system will show employment . higher level percent increase. 2:10:10 ~ 12/13/2012 3:30:54 PM ~ Nicholas Police officers knew who was retireing 2:10:40 ~ 12/13/2012 3:31:24 PM ~ williams not significant. ways to exclude it from total pay. 2:11:16 ~ 12/13/2012 3:31:59 PM ~ Nicholas have to have people doing overtime. benefit to it. if impairing system, 2:11:59 ~ 12/13/2012 3:32:43 PM ~ Williams does not have a significant impact. law enforcement in separate plan. looking at police 2:12:48 ~ 12/13/2012 3:33:31 PM ~ Perkins rules to address spiking 2:13:04 ~ 12/13/2012 3:33:48 PM ~ Williams does not create a tier in plan. 2:13:39 ~ 12/13/2012 3:34:23 PM ~ Randall look at other plans. gains in very low salaries. spiking not sig 2:14:25 ~ 12/13/2012 3:35:08 PM ~ Meier High paid university employees. how the system plays out 2:15:02 ~ 12/13/2012 3:35:46 PM ~ Williams don't know . IRS limitations on pentions. 2:15:37 ~ 12/13/2012 3:36:20 PM ~ Nicholas. would like to know number 2:15:51 ~ 12/13/2012 3:36:35 PM ~ williams IRS limitations. don't want income excluded from taxes 2:16:42 ~ 12/13/2012 3:37:25 PM ~ Nicholas people ask alot 2:16:58 ~ 12/13/2012 3:37:42 PM ~ Harshman give us some figures 2:17:18 ~ 12/13/2012 3:38:02 PM ~ Esquibel cut off for high salaries 2:17:42 ~ 12/13/2012 3:38:25 PM ~ williams qualified plan different requirements. 51,000 max contribution to base plan. no benefits beyond cap. Catch up role for prior roles. 2:19:26 ~ 12/13/2012 3:40:10 PM ~ Randall 205,000 cap next year 2:19:57 ~ 12/13/2012 3:40:41 PM ~ Perkins salary spike - does board see if 2:20:37 ~ 12/13/2012 3:41:21 PM ~ Williams board has power to disreguard spike. Expert looks at compensation month by month. 1000 dollar flag. determine how increase occurred. New system will look at spiking. Was position properly been filled. 2:23:05 ~ 12/13/2012 3:43:49 PM ~ Perkins benefits admn. looks at retirement salary. 2:23:46 ~ 12/13/2012 3:44:30 PM ~ williams will identify unusual situation. conclusion potential tighting that could be added. no evidence of abuse. 2:25:07 ~ 12/13/2012 3:45:51 PM ~ Nicholas need additional info on spiking? 2:25:55 ~ 12/13/2012 3:46:39 PM ~ Nicholas cap out on contributions next item 2:26:19 ~ 12/13/2012 3:47:03 PM ~ willliams cola protection. inability of retirement system. Identify alternatives. Buck consultants. three major studies. Planned design. IRS certification met. extensive dialog on cola. inability to afford them. identify objectives for cola plan. use of existing 457 plan. cash balance plan. document describes each. lifetime income to offset inflation. contribution level to get there. meaningful cola benefit. programs better for new hires. limit unfunded liabilities. flexibility when funds not available. low admin cost. matching employee contributions. Recommendation contributions by employee and employer. manditory program unacceptable. not recommending to develop manditory plan. Rec two things. if state wants to give employee a way to contribute.with state match. 457 plan with restrictions. no loans, early withdraw. less burdensom to administer. A step, not a solution to CoLA. Propose voluntary cola match.. 70% participation rate. ability to market 457 plan. level of individual responsibility. can't anticipate cola's anytime soon 2:38:13 ~ 12/13/2012 3:58:57 PM ~ Williams These Page 13 There is a description of the first priotity. These are the legal and consultant contracts This is the 900 series. We are asking to spend $425,000 to hire legal council and special investment people These are called alternative investments: real estae, mining, It increases in diversity of the program. They are called limited partnerships. To optimize to select the best managers. We want to hire the best councel. 2:41:24 ~ 12/13/2012 4:02:08 PM ~ Harshman Of course the Governor denied this. So this is expertise beyond what we have now. 2:41:54 ~ 12/13/2012 4:02:38 PM ~ Williams There are thousands out there but we have to protect our priorities. To balance those needs 2:42:49 ~ 12/13/2012 4:03:33 PM ~ Harshman Is this a onetime deal 2:43:01 ~ 12/13/2012 4:03:45 PM ~ Williams I think it would be biannualized It depends on the size of the program. Ican't impress strongly enough that our current consultants don't have this expertize. Without it, we would have to reduce the amount that we are going to invest. It seems like a lot of money but compared to the amount we are looking to invest, it is not that much and very well spent. Our general councel helps us greatly with our standard type of investments. If litigation were to accurr,...... We would work closesly with the outside councel and gradually bring it in to our house councel 2:46:59 ~ 12/13/2012 4:07:42 PM ~ Wallis IN the Gov's message He notes that the Retirement System...... What is different about this that what was done before. 2:47:47 ~ 12/13/2012 4:08:31 PM ~ Williams DIfferent services. Those were absulutely necessary services. These are different services than those services. These are vitally necessary services. 2:49:04 ~ 12/13/2012 4:09:48 PM ~ Nicholas We invest in Capital ...... Funds. Are we talking about going into venture captial funds? 2:49:48 ~ 12/13/2012 4:10:32 PM ~ Williams Hedge Funds Not invest in Cheyenne Capital necessarily. You can't be effected by 2:50:39 ~ 12/13/2012 4:11:23 PM ~ Nicholas If you are going into Investment Capital you always want to be on the upside but the downside can be catasrphic. I am uneasy that you will come back to us when the investments go sorror. 2:52:31 ~ 12/13/2012 4:13:15 PM ~ Williams THe Board determines what amount of money we can invest. I encorportates quite a deligent process. We don't want to have to come to you to have get permission to hire an investment expertise 2:54:15 ~ 12/13/2012 4:14:59 PM ~ Meier This happen before Tom. But unless you know what is in the fine print you will be just like the outside individual player. There are situaltions where you 2:55:44 ~ 12/13/2012 4:16:28 PM ~ Nicholas We have to be out of here by 5:30 so lets move along. 2:56:48 ~ 12/13/2012 4:17:32 PM ~ Williams It was a case where we moved and have hired all 4 of those positions We have asked for money to move or expansion of office space. We now have file cabinets in the hallways, no conference room. We got some money last year but it was insufficient to do anything with. The last priortiy of probably not a priority now. If you don't do a COLA plan it won't be necessarry 3:00:08 ~ 12/13/2012 4:20:52 PM ~ Harshman So we might want ot go down this road in small baby steps 3:00:37 ~ 12/13/2012 4:21:21 PM ~ Williams It mandate to us that we have to educate each new employee to the retirement 3:01:29 ~ 12/13/2012 4:22:13 PM ~ Nicholas Any other questions. We have you on call back 3:01:49 ~ 12/13/2012 4:22:33 PM ~ Williams WE apprieciate the time to make our presentation 3:02:12 ~ 12/13/2012 4:22:56 PM ~ Nicholas The next will be the State Auditior 3:03:43 ~ 12/13/2012 4:24:27 PM ~ Child So that is what our budget consists of. That is the difference between our prior budget and our current budget That is the Health Insurance that we talked about and the rate holiday Page 17 On the SEction 3 Supllemental Request Page 100 on PDF It's a business processs within our account system. We rely on our 3:08:55 ~ 12/13/2012 4:29:39 PM ~ Nicholas DO you have a rule 3:09:04 ~ 12/13/2012 4:29:47 PM ~ Child There is a simplified way to identfy wrongly coded entries and have them corrected . That is where our office goes to that level of detail. There is another process that we do that accomplishes the same thing. Say the agency does't have time to reaollicate the funds, they go ahead and expend the funds and then they are corrected later 3:11:20 ~ 12/13/2012 4:32:04 PM ~ Nicholas The 3:11:27 ~ 12/13/2012 4:32:11 PM ~ Child What actually happens, a letter goes to the GOv's office We were informed on Nov. 13 in the letter it stated that A&I had been informed that it was incorrect. My main concern was to get a federal grant nailed down. 3:13:02 ~ 12/13/2012 4:33:46 PM ~ Nicholas What was his request 3:13:13 ~ 12/13/2012 4:33:57 PM ~ Child We don't work hral clsoe with that. It appears it is a issue with The Budget offoce and the department of education. 3:14:02 ~ 12/13/2012 4:34:46 PM ~ Child That has been submitted to the Audit Dept. 3:14:27 ~ 12/13/2012 4:35:11 PM ~ Jones B11 process back in July By the time we got a final B11 and a change in the bottome line and a reduction of these . The recommendation was contained within the body of the B11. There was an unwilliness and therefore denied B11 First they ask me if a GEM transaction would be legal. My responce I didn't know. BUt looked like a circumvention of the law. Recieved an email from them 2 weeks later and they were going to move forward with the GEM movement. I shared that with the GOvernors office. The Budget Office does not provide oversite on GEM transaction on the wolf system. We don't know is this is happening unless The position in the Gov's office was Superitend of Ed was an elected official and therefore their call is it was legel. In an attempt to get our heads around what it going on at the Dept. of Ed 3:20:21 ~ 12/13/2012 4:41:05 PM ~ Nicholas Did it align with 3:20:36 ~ 12/13/2012 4:41:20 PM ~ Jones We havne't fully analyzed all the GEM coding. THe Budget Office is also looking into it. If they are using a modification I 3:21:30 ~ 12/13/2012 4:42:14 PM ~ Nicholas Unring the bell 3:21:44 ~ 12/13/2012 4:42:28 PM ~ Jones Align according the B11 3:22:17 ~ 12/13/2012 4:43:01 PM ~ Nicholas I assume that they are alighned 3:22:36 ~ 12/13/2012 4:43:20 PM ~ Jones They are modifieng the background to alighn with the B11 3:22:59 ~ 12/13/2012 4:43:42 PM ~ Child THe B11 is for 3:23:22 ~ 12/13/2012 4:44:06 PM ~ Jones They are not modify the spending authority that you approvved 3:23:42 ~ 12/13/2012 4:44:26 PM ~ Perkinds They never moved the positions The moved the GEM to where 3:24:15 ~ 12/13/2012 4:44:59 PM ~ Jones The complied with our requests to alighn their payrole codeing they will no longer 3:25:02 ~ 12/13/2012 4:45:46 PM ~ Meier The reason for that was 3:25:15 ~ 12/13/2012 4:45:58 PM ~ Child 3:25:23 ~ 12/13/2012 4:46:07 PM ~ Meier The result would have been that the federal funds would have gone away. 3:25:59 ~ 12/13/2012 4:46:43 PM ~ Berger 3:26:06 ~ 12/13/2012 4:46:50 PM ~ Jones My understanding they had not submitted requests I think that would be far more critical than 3:27:11 ~ 12/13/2012 4:47:55 PM ~ Child The Budget alignment 3:27:45 ~ 12/13/2012 4:48:29 PM ~ Jones I believe there has been this type of done before. I think it was because of the great amount of turnover in the Dept. Education.. You ask if there was any cross over. There is there is 6 positions on each list. 3:29:32 ~ 12/13/2012 4:50:16 PM ~ Nicholas Dawn and Don do you understand all this 3:30:03 ~ 12/13/2012 4:50:47 PM ~ Richards It is a time limited function. Then they will be in conflict with the B11 process 3:30:36 ~ 12/13/2012 4:51:20 PM ~ Meier I guess this is a process that has been ongoing for a number a years. Is there a simpler way of doing this so that it is more transparant? 3:31:50 ~ 12/13/2012 4:52:34 PM ~ Jones There is an awful lot in that question. Federal Funds issue There is significant amount of number of grants of different departments. Hence, not everyone has the same expertise. GEMs There is a efficiny to be able to go in there to go in and re-code some costs. 3:34:06 ~ 12/13/2012 4:54:50 PM ~ Child We do have that capabality. That has it's pros and cons. 3:35:57 ~ 12/13/2012 4:56:41 PM ~ Perkins Do they look at the GEM 3:36:38 ~ 12/13/2012 4:57:21 PM ~ Cloud Yes they look at it 3:36:53 ~ 12/13/2012 4:57:37 PM ~ Perkins Do these GEMs ever show up on that 3:37:17 ~ 12/13/2012 4:58:01 PM ~ Cloud 3:37:30 ~ 12/13/2012 4:58:14 PM ~ Perkins If we had a federal agency that was going to audit a federal grant. If you were a federal auiditor, would you have any concerns about how federal funds were being spent. It appears to me that they work with something completely different than If that turns out to be the standard mode of operation wouldn't you be concerned. 3:40:37 ~ 12/13/2012 5:01:21 PM ~ Perkins There is nothing wrong with GEM It allows changes and transparancy. 3:41:20 ~ 12/13/2012 5:02:03 PM ~ Cloud 3:41:50 ~ 12/13/2012 5:02:33 PM ~ Perkins It 3:41:59 ~ 12/13/2012 5:02:43 PM ~ Cloud Know the background 3:42:09 ~ 12/13/2012 5:02:53 PM ~ Nicholas Any other questions 3:43:07 ~ 12/13/2012 5:03:51 PM ~ Lance I would argure we have one of the best accounting officers 3:44:27 ~ 12/13/2012 5:05:11 PM ~ Lance We have not asked for any supplement funds ourselves, the Gov. has. We get our first distrubution this August 3:45:36 ~ 12/13/2012 5:06:20 PM ~ Crapser As soon as it rains 3:46:13 ~ 12/13/2012 5:06:56 PM ~ Lance Our proposed 8% reduction is across the board That is correct, we have two positions that are still empty. I can see that the reduction Next item 0104 Reduction in support services 0107 Support services in and out of state travel 0109 Information Technology Services We did retain two GIS coordinators Drinking water 3:50:03 ~ 12/13/2012 5:10:46 PM ~ Nicholas Lets talk about that 3:50:12 ~ 12/13/2012 5:10:55 PM ~ Lance That is basically a loan program On the drinking water side it is basically $1mill. 3:51:26 ~ 12/13/2012 5:12:10 PM ~ Nicholas If we keep the money alive 3:51:47 ~ 12/13/2012 5:12:30 PM ~ Lance We have quite a bit of money in both the drinking and sewer loan accounts. 3:52:35 ~ 12/13/2012 5:13:19 PM ~ Nicholas It's because we have this robost lending program 3:53:04 ~ 12/13/2012 5:13:48 PM ~ Lance I couldn't agee with you more. 3:53:25 ~ 12/13/2012 5:14:09 PM ~ Perkins Can they use that for their community match. 3:53:57 ~ 12/13/2012 5:14:40 PM ~ Lance We have seen them use this program. 3:54:26 ~ 12/13/2012 5:15:10 PM ~ 3:54:57 ~ 12/13/2012 5:15:41 PM ~ Lance We try to market these loans as much as we can. 3:55:18 ~ 12/13/2012 5:16:02 PM ~ Nicholas roll over 3:55:39 ~ 12/13/2012 5:16:22 PM ~ Lance they would 3:55:46 ~ 12/13/2012 5:16:30 PM ~ Nicholas quest 3:55:52 ~ 12/13/2012 5:16:35 PM ~ Lance Forestry 3:56:06 ~ 12/13/2012 5:16:50 PM ~ Crasper budget reductions utilities, supplies, biomass heater, 185k pass through to counties; 401 fire budget; emergency fire suppression costs; FEMA imbursements on track. Dues by counties. 3:58:13 ~ 12/13/2012 5:18:57 PM ~ Nicholas understand how accounts work 3:58:27 ~ 12/13/2012 5:19:11 PM ~ Lance 20m one time from Gov. Direct dist 81m std budget amount adds 22m Legislature passed 81m 54 distributed; 33.3m capital to local governments 3:59:58 ~ 12/13/2012 5:20:42 PM ~ Meier distributed all one time 4:00:10 ~ 12/13/2012 5:20:54 PM ~ Lance local governments allowed to bank funds 4:00:29 ~ 12/13/2012 5:21:12 PM ~ Meier analysis on distribution. difference between counties and cities. 4:01:16 ~ 12/13/2012 5:22:00 PM ~ Nicholas increased local revenue from sales tax. federal mineral dropping 4:01:54 ~ 12/13/2012 5:22:38 PM ~ Meier cities bigger percentage. 4:02:09 ~ 12/13/2012 5:22:53 PM ~ Lance up to locals how to distribute funds. 4:02:37 ~ 12/13/2012 5:23:21 PM ~ Meier caryover balance 4:02:47 ~ 12/13/2012 5:23:31 PM ~ Lance can provide spreadsheet 4:03:00 ~ 12/13/2012 5:23:44 PM ~ Bebout go back last budget session how 4:03:51 ~ 12/13/2012 5:24:34 PM ~ Perkins carry over 4:04:21 ~ 12/13/2012 5:25:05 PM ~ Nicholas carry over acct 4:04:32 ~ 12/13/2012 5:25:16 PM ~ Lance deferr to mr. jones 4:04:46 ~ 12/13/2012 5:25:30 PM ~ Jones Gov letter with respect to dollars 4:05:06 ~ 12/13/2012 5:25:50 PM ~ Nicholas understand how developed 4:05:18 ~ 12/13/2012 5:26:02 PM ~ Lance 4:05:24 ~ 12/13/2012 5:26:08 PM ~ Nicholas paying for old fires first 4:05:39 ~ 12/13/2012 5:26:23 PM ~ Lance yes old fires first. 4:05:50 ~ 12/13/2012 5:26:34 PM ~ Nicholas 4:06:03 ~ 12/13/2012 5:26:47 PM ~ Jones Gov intent to cover shortfalls. 8m shortfall b-ll. apply 60 m 4:06:59 ~ 12/13/2012 5:27:42 PM ~ Nicholas modeling to see what is going to happen 4:07:12 ~ 12/13/2012 5:27:56 PM ~ Crasper worse fire season than last year. predictiong another bad seaso 4:08:02 ~ 12/13/2012 5:28:46 PM ~ Jones Gov profile jametown watersystem. fails to account for outstanding interest intent to request forgive interest. 4:09:36 ~ 12/13/2012 5:30:20 PM ~ Nicholas Jamestown outside Rock Springs 4:09:55 ~ 12/13/2012 5:30:39 PM ~ Lance only legislature can waive interest 4:10:11 ~ 12/13/2012 5:30:55 PM ~ Nicholas benefit to land resulting from loan. water system that has value 4:10:50 ~ 12/13/2012 5:31:34 PM ~ Lance system is in disrepair. default from first payment. P&l statements looked at. litigation little hope to collect on judgement 4:11:48 ~ 12/13/2012 5:32:32 PM ~ Nance original borrower district 4:12:03 ~ 12/13/2012 5:32:47 PM ~ Lance 4:12:09 ~ 12/13/2012 5:32:53 PM ~ Nicholas judgemnt against lots 4:12:25 ~ 12/13/2012 5:33:09 PM ~ Nicholas lot values enhanced by loan 4:12:41 ~ 12/13/2012 5:33:25 PM ~ Hastert land by golf course . truck stop loan, state revamped ramps. very small community 20 years old.water system very old. 4:14:01 ~ 12/13/2012 5:34:45 PM ~ Nicholas any user fees paid. 4:14:14 ~ 12/13/2012 5:34:58 PM ~ Lance fees don't cover costs 4:14:31 ~ 12/13/2012 5:35:15 PM ~ Nicholas lots of communities borrow funds and pay through rates. Social justice for trust fund 4:15:27 ~ 12/13/2012 5:36:10 PM ~ Lance financial reviews and fees. built on projection never made. total number of lots would justify loan. bad situation. 4:16:44 ~ 12/13/2012 5:37:28 PM ~ Hastert only one with capabilities. series of unfortunate 4:17:37 ~ 12/13/2012 5:38:20 PM ~ Nicholas nobody lottery winer if debt forgiven 4:18:08 ~ 12/13/2012 5:38:51 PM ~ Lance system is valueless to community. allow to clear off books. 4:18:55 ~ 12/13/2012 5:39:39 PM ~ Lance taking over aeronautics loan program 4:19:17 ~ 12/13/2012 5:40:00 PM ~ berger 4:19:33 ~ 12/13/2012 5:40:17 PM ~ Nicholas counties oil and gass revenue dropoff 4:20:15 ~ 12/13/2012 5:40:58 PM ~ Nicholas end start at 8 am tomorrow 4:20:42 ~ 12/13/2012 5:41:26 PM ~ 4:21:07 ~ 12/13/2012 5:41:50 PM ~ Pause 4:21:07 ~ 12/13/2012 5:42:06 PM ~ Resume 4:21:14 ~ 12/13/2012 5:42:14 PM ~ Stop Recording 4:21:14 ~ 12/13/2012 5:42:14 PM ~