JAC Index 011216am1 Tuesday, January 16, 2016 Agenda AM: 040 Game and Fish; 053 Department of Workforce Services PM: 049 Department of Family Services Chairman for the day is Co-chairman Harshman. 1/12/2016 8:01:25 AM Gavel In. Roll Call by Don Richards. Quorum established. Director Talbot introduced his staff. 12 M GF standard budget, 5 programs historically funded by GF. Senate file 45 Grizzly Program, Health Insurance program added. Shift of Grizzly Bear into GF to bifurcate the budget. Commission represents most programs paid for by sportsmen fees. GF for programs not supported by sportsmen fees. Commission budget is 75M approximately 1/12/2016 8:06:38 AM Wood: Chief Financial Officer. Pg. 3 Summary of programs and requests Pg. 4 Statutory authority Page 5 Basic Facts. Commission is on annual basis. GF is on biennium basis. 75M is for FY 16 only. Five standard programs are veterinary services, sage grouse management, wolf management, CWCS, AIS Page 7 Department priorities Ross: Are you priorities actually 1 through 5 or are any of them equal footing. Talbot: AIS continues to be a priority. 48 positions for inspection of boats. Gave an explanation of the priorities 1 – Sage Grouse Planning and protection 2 = Aquatic invasive species 3 = Veterinary SVC PRGM 4 = CWCS 5 = Wolf Management. We are not active management for wolf program. Perkins: Priority list from the commission Talbot: Discussed it with the commission. 1/12/2016 8:12:54 AM Wood: page 8 exception priorities. The top two Grizzle management and Department Health insurance required by statute so at the top. Burns: Delisting of grizzlies? Talbot: We have exceeded recovery status, hope to see a draft rule Burns: indication that court will release? Talbot: We need to file a new delisting petition. Burns: Has judge that made the last ruling retired? Talbot: I believe he has. 1/12/2016 8:14:55 AM Wood: page 9 organizational chart, Stated which divisions the programs are under. Harshman: 2015-16 shortfall, Where you reduced approx.. 1 M Woods: just under 800,000. Came from Wolf budget and veterinary services budget and sensitive species budget. Harshman: couple million in GF not used, status, reversion Woods: expenditures are seasonal so will utilize some of the remainder. Harshman: how much will you revert? Talbot: We provided cuts to the Governor, best shot. Some federal funds replacement. Close to zero on that budget. Harshman: Ammunition funding Talbot: Federal Aid and restoration act of 1939 Pittman Robertson act, Dingle Johnson act for fishing. 11% on firearms and ammunition sold. That revenue has expanded exponentially. We anticipated that revenue would back off. We expect that flow of income to stay steady or increase. Harshman: Commission funds, not GF? Flow to agency and commission appropriates Talbot: Correct – by federal and state statute Burns; how much off Pittman Roberts last year? Lag time between public announcements and receiving the money Talbot: last year 20 M approx.. Historically 6 to 9 M per year. Receive federal revenue on quarterly basis, depends on markets. Anticipates seeing some of that revenue in 6 to 9 months Harshman: Do you save any of that increase or appropriated all of it? Talbot: Much of it is in our operating cash balance. 56M approx. in cash balance. Harshman: Statutory trust funds and permanent trust fund of 5 M appropriated by us Richards: yes for fish hatchery Talbot: We will discuss that with commission during January meeting. To expand that money we have to match it with non-federal dollars. Burns: is that money invested by the State Treasurer Talbot: all GandF funds are. Burns: Is it restricted? Will fund fall under constitutional amendment? Talbot: 28 m in wildlife habitat fund, 5 M trust fund for fish hatchery, in account under OSLI, for maintenance and operations Burns: Income or corpus Talbot: income Burns: Constitutional amendment for public vote. Treasurer to invest permanent funds into more of a variety including equities. Woods: Currently in cash and bonds but these would be subject to that amendment. Nicholas: Goose hunt fixed? Talbot: Incorrect Nicholas: Windfall over costs, matching funds, come to us with creation of endowment fund. Talbot: We have not proposed that. We have adequate funds in commission funds to match those funds. Our approach is conservative. We could do that through commission funds. If that source of funding becomes jeopardized, your suggestion would be a way to capitalize on that fund. 1/12/2016 8:26:29 AM Wood: page 10 ER for health insurance. 402 FTE, 21 paid for through 5 programs. 381 employees under commission budget Moniz: How are you paying the health insurance now? Wood: Through license fee dollars for all but the 21 programs Ross; ER denied by the Governor Burns: I thought we put GandF under state health pool with GF dollars? Talbot: That statute directs commission to request that but no allocation asked for so that is what the request is for. Connolly: Why was that legislation passed? Received 20 M in ammunition money so odd time to ask for 12.5 M for health insurance payments. Talbot: Travel recreation and wildlife suggestion 4 years ago – challenges. Cut 7 M and 27 employees. TRW sought additional revenues for programs in form of license fees. Legislature did not appropriate. Grizzly program 2.4M paid for by sportsmen that have no avenue to participate in. Most state agencies health insurance is paid for through the GF. Two ways to help the commission financially. Cuts and Pittman Robinson funding casts different financial picture. Burns: GandF has traditionally come to legislature for license fees increases. The agency does not have the authority to do that. Legislature turned down license fee increases so stuck between increasing expenses and static fees. Greear: With extra funds from Pittman Robinson, why was this requested in this budget? Talbot: The statute requires this. It is not permissive. Greear: Is that money needed? Talbot: We can cover that through commission costs at this time. Money requested because of statute Burns: May have the money this year. Pittman Robinson is a band aid. Funding their health benefits on announcements of President in Washington Moniz: Mandates of Pittman money? Wood: 75 federal 25% state match. Moniz: How do you have to spend it? Wood: Strict list of eligible expenditures. Wildlife based. No IT, facility. Dingle Johnson Fish restoration is same scenario. Moniz: Back to Nicholas question. Is there anything to keep you from endowing those funds? Wood: Two years to expend those dollars. For employees working 100% for reclamation eligible for 75% federal Moniz: Offset commission funds? Wood: Basically what the Cash balance has been. Historically had cash overmatch. License fees dollars collected, eligible for match are what is in our cash balance. Hastert: What do you generally bring in for license fees annually? Wood: Just under 32 million last calendar year Hastert: pressures on account? Wood: 24 programs, will go through them later. Payroll, health insurance is largest expense, mandated expenditures including cost allocation, damage payments. Our wildlife division and programs make up the priority of our commission budget, just under 26M. Wood listed programs. Hastert: History Wood: license sales slight reduction as result of species quota. Demand is there, related to supply. 1/12/2016 8:40:37 AM Wood page 14 Aquatic Invasive Species has revenue adjustment. No ER. Decal sales have increased revenues so GF appropriation has been offset. Burns: Have AIS showed up near us? Talbot: Just across the border. Burns: SD AIS program? Talbot: I believe every state does to some degree. 1/12/2016 8:42:17 AM Wood: page 20 Vet Services has Exception Requests. Majority reduced by Governor recommendation. Brucellosis research. Page 22 and 23 Governor denial and reinstatement for brucellosis testing and containment account. Connolly: please explain that account Wood: This is a governor account under the GF. Hibbard: inside state auditor office. It may be accessed by Gand F and other entities working on Brucellosis across the state. Recommendation to put in 168400 to get fund balance back up to 500,000 balance. Connolly: This request can be taken care of by accessing that account? Wood: Correct Hibbard: Maintaining status quo. 1/12/2016 8:45:25 AM Wood page 23 additional ER for computer replacement, GPS units, software, barcode printer, video cameras. Governor approval but not through additional GF dollars. Stubson: Remote trail cameras? Wood: Trail cameras to monitor animals in captivity under low stress to monitor disease. Harshman: Page 25 Governor recommendation paragraph 2 – denial of 18194 of GF, approval of qualified, available revenue. What is that? Talbot: Asking commission to cover the cost out of commission funds. Harshman: usually just a denial Talbot: We have the capacity to do that Stubson: Commission would have authority to do that whether Governor recommended or not? Hastert: Loan of GPS to state vehicles? Joke 1/12/2016 8:49:05 AM Wood page 31 Sage grouse ER. 1FTE commission employee B11’d into program under BFY 15-16. Requesting for no increase in budget but transfer of 100 series funds. Harshman: Update on sage grouse program Talbot: State of Wyoming has implemented Governor’s team and executive order. We monitor and do research. 12% increase last year and significant increase this year in sage grouse population. Working to implement conservation recommendations. Secretary of Interior in Denver announced they are no longer warranted for listing under endangered species act. Harshman: captive breeding program Talbot: no more discussion on that Harshman: how many do we shoot each year, Talbot: Complicated subject, visit later. 1/12/2016 8:52:44 AM Greear: Funds moved from series 100 to fund this position. Did we fill an empty FTE. Wood; FTE is under cap for govt. Transferred from other series to 100 to cover that expense. FTE will remain at 402. Greear: Moving from another unit Wood: Moving from commission habitat protection unit Moniz: impetuous for moving this? Wood: Bifurcation- discussion Moniz: Commission decision? Wood: Correct Connolly: Bifurcation move is to make sure individual employees are being paid appropriately by commission or by GF. We are seeing that the commission just received 20M extra in past year and now asking for GF for someone who commission has paid for in the past and can easily do so. What can the commission give to the GF to make up for this employee’s salary? Talbot: I am not sure I understand your question. Connolly: Is it possible there can be some quid pro in terms of commission and GF money. Talbot: I think Governor has tried to do that through this budget. Perkins: offsetting permanent reductions in series. This will roll into the std. budget. Will the 900 and 200 series remain permanently reduced? Wood: That is our intent. Move shift to object series. 1/12/2016 8:58:25 AM Wood page 42 and page 44: ER has governor’s approval with payment at discretion of commission. Wood page 37: Wolves - ER for computer, same governor approval. Harshman: Wolves update. Talbot: State of Wyoming appealed Judge Jackson’s ruling. That appeal continues at this point. Wolves continue to expand. Largest year this year for livestock depravation due to wolves. Clearly above established criteria. Federal budget bill Harshman: ? Talbot: 10 breeding pair and 100 wolves. 17-20 breeding pairs and 300+ wolves in the state at this point. Burns: In the state or outside of the parks? Talbot: outside of Wyoming National Park, in the state. Ross: Range? Talbot: They continue to expand their range. Wolves can cover large distance in short amount of time. Ross: Exponential growth in state after Judge’s ruling. Talbot: not necessarily exponential but growth. Burns: 1/12/2016 9:04:28 AM Wood: page 49: Grizzly program 100% exception, personnel, supplies, travel, support cost, telecom, and damage claims. Harshman: Federal mandates. How much on commission side is federally funded? Talbot: in 2015 2.2 M cost for Grizzly, $93,000 provided by fish and wildlife program section 6. $ 51,000 granted for survey purposes. In 2012-2014 $100,000 to 93,000 range. Harshman: similar with wolves, feds. pay about 10%? Talbot: Correct but wolf’s program expenditure is only for personnel to investigate livestock depravation. Burns: Ballpark costs if wolves are delisted and offset of license fees? Talbot: Cost of management would initially be similar. Approaching 5 year post monitoring could ease some costs. 6000 cost for grizzly license, 600 cost for resident bear license. 50-75 thousand dollar cost difference originally. Connolly: page 52 – positions exist and paid for by commission. Why transfer this year? Talbot: Senate file 45 directed it. Connolly: What would it cost to delay the move? Would it impact this program? Talbot: Commission capacity to pay for those positions at this time Connolly: Even though there is 20 M coming in? Moniz: How do you handle depravation from wolves. Who is liable? Talbot: No damage compensation programs under the federal government. Only legislatively approved programs in state under commission. This will be a record year for wolves damage. Last year 150,000 paid. Grizzly bear damage higher. Estimate of 750,000 this year from Grizzly. Moniz: Federal gov.t does not want you to manage the wolves but pay for damages? Talbot: Damages are state law. No federal nexus to those statutes. Perkins: What if Wyoming said we won’t do this, in terms of Grizzly’s? What would be the effect? Talbot: Personnel effort . Wyoming statute requires investigation for damages. Nuisance and conflict is public service not requirement, share with the services and let them participate. Stubson: There is a bill this session from federal natural resource management select committee coming forward. Leave livestock depravation but put management of wrongful taking of grizzly or wolf to federal govt. Talbot: Wyoming statutes are not written as permissive on law enforcement. US fish and wildlife service’s officers. Judge Jackson decision to relist wolves. Wyoming decided not to investigate wolf taking. It is state’s purvey to do that with grizzlys. At 1/12/2016 9:46:04 AM this time, it is a minor portion of the program. Nicholas: 1. Damage and depravation cost over last 10 years on annual basis, trend line. 2. Claims submitted, not verified, not paid. As we present budget, useful to see total budget income over past 10 years to commission fund and see GF dollars, trend line for receipts and expenditures for last 10 years. Talbot: provided to Travel, Recreation and Wildlife, will provide to you. Perkins: The cost of damages in grizzly budget was easy to find. Where is it for wolves in budget? In the 256 Wood: correct – annually Hastert: Task force for wildlife put together by the Governor. Are you on it or monitor it? Talbot: I am a member of that task force as well as Senator Cooper and Representative Petroff. Committee recommendations include perusing bifurcation concept. Have asked for independent review of agency programs. Have contracted with outside entity for that review. Report in March. Committee will make recommendations to Governor. Greear: I read Senate File 45. Commission can have additional expenses with respect to the Grizzly program. Separate budget within commission for the program? Wood: All of these programs have administrative expenses associated with them and are budgeted independently. Expenses already accounted for in the commission budget. Greear: No other funds for grizzly program, other than administration Talbot; Currently no but if legislature choose to defund, commission budget is annual, taken care of in July. Burns: why don’t we have resident preference points? Talbot: has not been passed for the last 5 session. Burns: ? Talbot: 55% of people in state of Wyoming support having resident preference. 45% do not support and feel strongly about preference points. Perkins: People in favor of preference points have a division about how it works. Talbot: Passionate issue. Burkhart: Vacancies in the department. Majority open for a year or longer. Plans to fill them or do away with them? Many of them are field positions. Trouble filling? Talbot: 1 GF position not filled. Plan to fill it. Commission side of budget has 27 vacant. Six of them have permanent hold due to restructuring. The other 21 positions we are being conservative about. Budget cutting process directive by me was for administrative not field with exception of attrition in conservation communication and education. Field level positions game warden – we have difficult time recruiting qualified people due to excruciating process. Statutorily required testing, profiles, psychological, polygraphs test. Looking at new ways to recruit game warden candidates. Harshman: None are GF? Talbot: Correct 1/12/2016 9:28:41 AM Break. 1/12/2016 9:46:17 AM Talbott: G&F Commission Wood: FY 2016 Budget overview. 5 divisions within department, 3 funding sources. $75.3M budget. 24 programs. Divisions: administration/education, fiscal, services; fish; wildlife; Funding from hunter and angler fees, trust fund, federal, donations Miller: good cold water fish hatchery system. Need to stock cool and warm water fish; trade for warm water fish from other states. Can stock private hatcheries, but need access and payments. Burns: fine money? Talbott: goes to schools, by statute. Talbott: No additional sensitive species at this time which will need additional general funds. Moniz: Investment funds? Talbott: Habitat trust fund, fish hatchery investment fund. Corpus is intact. Wood: Wildlife includes sensitive species federal money. Harshman: Big game license revenue? Talbott: elk license Nicholas: Moose population? Talbott: strong populations in Big Horn and Snowy Ranges, but low numbers in Jackson area. New parasite in Wyoming affecting populations. Burns: Mule deer? Talbott: making a comeback. Burns: antler shed? Talbott: 7 years in place, since statute went into place, not as bad on western side of continental divide. May have to regulate additional portions of state. Burns: why so many boats? Talbott: will get back. Have replacement policy of years or mileage for ATV and snowmobiles. Wood: 28 vacant positions. Contract positions, 150, seasonal for surveys, feed grounds, invasive aquatic species. Have not reduced personnel cap by 6 frozen positions. Harshman: USFWS cooperative agreements. Talbott: Numerous cooperative agreements with various federal agencies, data sharing. Harshman: Governor’s task force, update? Talbott: brainstorming to increase long-term revenues for agency. Game Wardens’ Association not part of the agency. 1/12/2016 10:35:43 AM Break 1/12/2016 10:52:21 AM 053 Department of Workforce Services John Cox, Director: Lisa Osvold, Deputy and Angie Buchnan, CFO Merger in 2011 of 2 agencies, offices in 22 counties. 650 employees. Many programs are constitutionally or federally mandated. Personnel cuts are affecting agency mission, especially unemployment call center in Casper. Hiring many temps. Buildings and physical plant are badly needed, especially in Casper. OSHA employees significantly paid less than federal OSHA employees. No computer acquisition exception request. Osvold: exception request to give 2 FTE to ETS, returned 1 position. Page 20, ETS position, general fund transfer to ETS. Page 22 and 23, director’s office Burkhart: travel costs? Osvold: lots of travel to field offices, have federal partners around the US. Page 25, Program assistance. Workforce Development Training fund and Senior Community Employment Program. Pages 29, quality child care unit. $268,629.09; $334,285.14; $602,914.22 numbers in table on page 29, fiscal year total, $obligated column. Utilize training grants and scholarships, state criteria created for day care centers. Stubson: 900 series, half goes to specific vendors. Are there some vendors that if 900 series is reduced, would not totally eliminate? Nicholas: Why not cut 900 series? Cates: Does not have access to quality training for early childhood development that other agencies may have 900 series to cut. No overlap with another agency. 1/12/2016 11:48:06 AM Lunch