JAC Index 011216pm1 053 – Department of Workforce Services continued 049 – Department of Family Services 1/12/2016 1:30:53 PM Meeting called to order by Chairman Harshman Connolly: Without statewide coordination of early childhood learning, each of the following agencies has a piece: DWS, WDH, Dept. of Education, and DFS. Does each agency consider early childhood learning lower priority because it is not a core component of your agency? Toby: I agree. Community grants involved each of the four agencies. Gave example. Different funding streams. Federal allocations for early special education of which head start is an example. State funding resides within “Why Quality Counts”. State Quality council. Document available Connolly: Will you provide the document? Toby: Yes Osvold: Answer to previous question Page 33 – Unit serve Wyoming – pass through grant Page 35 Employment and Training. Wagner/Peyser Program and Workforce Innovation Opportunity Grant. Nicholas: page 36 Matching dollars? Osvold: Federal funds do not cover all the costs. Nicholas: Are the state funds required to receive the federal match or is it a supplemental? Buchanan: It is not a required match. Page 37 – We cannot give the funding to ETS as it is federal dollars so we moved it down to the 400 series. Page 39-40 -41 Exception Personnel Report Page 42 – State Inspector of Mines, six full time inspectors. 100% funded by Industrial Accident Fund – no ER Burkhart: Wyoming Mining Council, established by statute? OSHA is 6 or 7 people, responsible for more people and you have 10 in the mining council, equality Cox: we will get back to you Osvold: Burkhart: $90,000 for space rental? Cox: By statute, state mine inspector is located in Rock Springs. Some in Casper, Gillette, Worland. 7 total. Osvold: page 51 Division Vocational Rehabilitation. No ER. Burkhart: Telecommunication relay service program. Rate change? Why? Osvold: Federal Communications commission requirement. Greear: What other programs have matches? Osvold : 1 to 4 match is vocational rehabilitation. Greear: What percentage of this budget is that? Osvold: Explanation Buchanan: VR federal grant is about 22 M, add 4.2M to match it. Greear: What programs do not require the match? Osvold: Social Security and telecommunication do not require match. Only one that does is vocational rehabilitation program. no ER Page 54-55-56 Overview Page 57 Greear: pg 52 no GF in that program. Telecommunications funding level is 1.3 plus 900 in special revenue? Osvold: Expected to increase in 2017-18. $ .25 surcharge on lines in Wyoming. Burkhart: Telecommunications service apply to cell phones? Osvold: yes Greear: GF at 5.6M for next budget. Need 4 M for federal match. What program is adding the other 1.5 M? Osvold: Federal funding does not cover costs. I will confirm with CFO. Buchanan: The VR administration is not part of the VR grant so it is separate GF. Greear: Administration of 800,000 for V program has to come from the GF? Buchanan: GF Greear: Can it be part of the 4M match? Osvold: increased cost to run the programs is not covered by the federal funds. Greear: federal funds are not covering increased costs so we are backfilling with GF. Osvold: Correct. No ER Page 57: Unemployment Insurance - Summary table . Easier to combine all information for federal reporting. Greear: Revenue Sources, school foundation? Osvold: Hathaway scholarship study Harshman: Is that ongoing? Osvold: final report is coming out in 2017. I will confirm Greear: Hathaway study $ 500,000 for ongoing study? Osvold: page 58 Unemployment Insurance Tax aka UI tax. Employers can file jointly for UI and for worker’s comp. page 62 No ER. Pages 63-64 summary. 45 to 120 jump in employees is net to zero to combine the reporting. Greear: Is there an audit division for the UI and Workman’s comp? Osvold: contained in these numbers Greear: cost benefit analysis for compliance. Ysebaert: Combined audit division, audit for both UI and workman’s comp. Requirements come from the federal govt. Conversation between Greear and Ysebaert on audits. Ysebaert: WE have not done a focused study to determine benefit. Burkhart: page 63 line 265 What is FRS? Osvold: Federal Reporting System to report all of our federal grants. Moniz: page 61 What are your 17-18 projections in unit 301 based on? Osvold: Buchanan: Enterprise funds . Special revenue is employment funds. Federal funds based on previous grant and doubling it. Moniz: So basically doubling the 9 M Buchanan: yes. Combining two units so not really an increase. Osvold: page 65 net to zero Chapter 17 process Harshman: Don’t you usually bring that to us and then we zero it out? Department of Education, same process. Hibbard: If we had any change in GF, would land in ER Harshman: Generally we do it like we did for Education. 1/12/2016 2:05:53 PM Osvold: page 69 UI Revenue funding used to support some administrative function. Funds cannot be returned to the trust fund so we use it for special revenue. No ER Stubson: Do you zero it out and spend the entirety every year? Buchanan: Any money left at end of biennium reverts to the trust fund. Balance is 5M The revenue keeps building up and what is not spent reverts back. Osvold: We do not have spending authority for that amount Stubson: So just continues to build. Any statutory restrictions? Harshman: What can we spend it on? Buchanan: Fraud prevention, etc. Would have to do a legislative ask to access more fund, like an ER. Harshman: to increase spending authority. Ross: have you asked for spending authority. Buchanan: WE tried to do a B11 but could not. Harshman: Is it federal or state? Osvold: Collected from penalties and fees, federal govt. has restrictions. Can be spent on fraud protection. There is specific use for this money. Hibbard: Fund balance history. 2007 = 3M. now it is $5M. Harshman: May we have a list of the federal guidelines? Nicholas: More specific on programs we fund with GF. Can we use a portion of the fund balance? Osvold: Will get information Connolly: Please add interest amount on account and possibilities for maximizing earnings? Osvold: Unit research and planning. Hathaway study. Harshman: More than just Hathaway study. WE pay consultants through recalibration for monitoring Richards: We have two external consultants as well. The portion of the $500,000 used to monitor the salaries is less expensive than adding on the external contracts. Matt Willmarth. Harshman: Would like breakout Perkins: Two different studies or just one? Osvold: We will gather that information and provide. Connolly: In the past, we had hoped to move calibration fees to in state services. I am curious if that is what this is? Osvold: I do not want to speculate. Director Evans was more involved that I was. We will get the answers. Burkhart: Enrolled Act 29 section 326. Was this a one- time funding or continual? Richards: yes it was the budget bill 2012 was one time. In 2014, ER was approved and it became ongoing in standard budget. Greear: Why is this out of the school foundation? Harshman: Richards: original appropriation out of e-rate funds than shifted over. Could it be appropriated from GF or other source, yes it can. Profile shows funding out of SF and into GF to relieve pressure Greear: is this appropriate to be funded out of the GF? 1/12/2016 2:18:08 PM Connolly: Labor mkt. information division – AandI division has economic analysis comparable to LMI. Efficiencies of consolidation? Osvold: Our labor mkt. info. Division is funded by the Bureau of labor statistics. Tom Gallager is appointed to be in charge. Connolly: seems there is some overlap that can be worked on. Osvold: page 73, Labor Standards , page 76 = No ER Page 77, 78 Unite budget request overview Page 79 Worker safety and compensation Perkins- labor standards Details for 2014 in there. When would data for 2015 be available? Osvold: It is federal fiscal year so it is September. Perkins: When will data for 2014 be available? Data in gross for employer versus employee prevailing. Ysebaert: Can easily report that information, both fair employment and wage and hour? Perkins: yes. Hibbard: There is no overlap between AandI and DWS Perkins: Are we using those reports? Do we still need them? Hibbard: DWS benefits the AandI information. Remy modal studies. Osvold: page 79, 80, 81. Funded by accidental OSHA fund and miner’s safety. Page 83 = No ER Hastert: What is balance in worker comp? Osvold: Enterprise fund 1.7 Billion Hastert: How much is unencumbered? Ysebaert: Fund is just shy of 1.8 Billion. Discounted versus undiscounted. Pay over 200M in claims, etc. 30,000 open and active claims on any day. 13,000 new claims received yearly. We have liability for that claim for the life of that claimant. AT time of injury, we book reserve for future expenses of that claim. Late 1950’s claim is still active. Book a future reserve for each claim. Statutes allow a discounted evaluation. Actuary used a 3.5% growth rate. If we stopped account today, all of that 1.7 B would be paid out over the life span of our current claimants. Hastert: Number of claims filed is not number approved. Ysebaert: Figures quoted – for 13000 received about 12000 are opened and approved. Burkhart: problems with OSHA officers and keeping them. 5 vacancies. What are you doing to hire for those vacancies? Cox: Recruitment and retention impacted by current pay scale. OSHA officers include compliance officers and 13 consultants (education purposes). Compensation – OSHA paid 10,000 per year less than federal counterparts. Paid 12000 less than mine inspectors. Will move forward by executive action in the future. Will do more under state authority than federal authority. We are overmatching the federal grant. When an OSHA inspector does an inspection or consultation, if there is one dollar of federal grant money, the requirements are onerous. 50/50 on one side and 90/10 on the other side. WE can double or triple number of consultations or add industries if we make this move this spring (to not be under federal). To recruit and retain in OSHA is to fix wage disparity. Burns: Scoping paper on OSHA released but not proposal Mr. Cox discussed. Workman Comp – how much money is claimed? You can discount some of it? Is there additional money that is discounted? Can give payout in some cases? Does that factor into discounting? Ysebaert: There aren’t any total payoffs in worker’s compensation except by settlement, which are fairly rare. Types of payments include income replacement, loss of ability and earning potential (which is not a settlement), and permanent disability (80 month cycles). Burns: 1.7 Billion in account. Is it currently restricted as to investment? Subject to constitutional amendment coming up? Ysebaert: It is invested through the state treasurer’s office, within confines of statutory confines. Investment advising through Treasurer’s office. I have looked at the bill from Representative Nicholas, expanding professional advice. I see the upside. Yes, subject to amendment. Nicholas: What has been the return on the funds? In the pooled fund. Ysebaert: it is in the pooled fund but there are differences. Sections of funds have different limits. Average rate of return, gross rates for last year 5.38%. gave list of last 4 years. Nicholas: Gain based upon corpus or including contributions for added reserve Ysebaert: Strictly the investment part of that . Nicholas: Actuary using the 3.5%. Ysebaert: Straight return. Looks at industrial accident account. Conservative number. 89.5M in interest last year. The return goes back in to offset. Keeps premiums lower and they have reduced over 31% over the last 10 years. For 2016, rates are decreasing 1%. Nicholas: Statistics of benefit increases. Ysebaert: Will get that. Harshman Osvold: Concludes over view of budget. Short break back with DFS. 1/12/2016 2:44:29 PM 1/12/2016 2:56:38 PM Steve Corsi, Director Nick Baird, CFO DFS has reduced from 800+ employees to 719 employees currently, reduction of 93. Started on plan to reduce homelessness. #1 in child support enforcement in US. Most improved SNAP error rate awards, now 3.67% from 14%. Best child safety rating in US. Worked with Department of Health on homelessness. Ross: how large of a problem in the state? Corsi: Will get back on that. Most counties have homeless people. Most around population centers. Coordinating closely with other state agencies, 2nd lower rate of juvenile detention in country. Harshman: How many units going away? Baird: 6 units, but adding 5 units; restructuring. Corsi: Restructuring and 3 exception requests. Job placement and training, early childhood development, tobacco fund reduction. Baird: Lots of budget revisions during biennium. Improve transparency; closely align with actual spending, more timely tracking of expenditures of federal money. Separate appropriation for Energy assistance and weatherization, institutions (Boys and Girls Schools), assistance and services. Object series discussed 100-900 series. Proposed budget is the governor’s. Page 11-13, priorities. Health and safety for Wyoming people, priorities 1. Page 14, budget restructure; $740,000 exception for early education; $2M job placement and training (federal dollars); $1.368 crisis bed increase. Ross: crisis beds in Title 25 same as in this budget? Corsi: No. Baird: page 16, division no. 5700, energy assistance and weatherization. $3M increase. Harshman: Need to know where more state funds are. Greear: revenue sources for various units. Corsi: page 17, LIEAP and weatherization programs. Baird: exception request, budget restructure. $3.2M increase, mostly general fund, as approved by Governor. Page 23, division no. 5800, institutions (Boy’s School and Girl’s School), $31.2M 102 capacity. Baird: page 41, Girls’ School. 80-140 youth served annually. 64 capacity. Wasserburger: Why drop? Corsi: less girls getting into trouble; judges and preferences. 1/12/2016 4:34:31 PM Break 1/12/2016 4:51:06 PM Department of Family Services, Director Corsi and CFO Baird Baird: pg 56 5910-5916 are the new units Corsi: 44 FTE and 3 at –will. Financial services, HR unit. 27 offices, not 28, closed Glenrock office, in 23 counties. Nicholas: Say net gain or net loss based on combined units, GF. We will see the losses in the old units. Baird: Net gain of 5.8 M in GF. Nicholas: Net gain or loss for overall units. Baird: Net gain is $500,000 on spreadsheet Corsi: No realistic way of comparing revenue and expenditures for 47 employees versus 2. Nicholas: I think you can Harshman: give in cross walk. Baird: We have that. Can give it to you. Nicholas: Information for floor presentation. Burns: closed office? Corsi: Glenrock. 47 employees are in Hathaway building, serve the state. Burns: Travel? Corsi: Gave example. Burns: Why do you need 47? Corsi: Financial staff, HR staff. We are understaffed in our HR unit. We have 4. I use a 1 HR to 100 employees in business settings. We are understaffed by 3.2. Baird: Historically these positions were spread throughout all the units. We thought it made more sense to combine. Error in travel. Need to shift out of 400 series into this unit. Corsi: 7% of our entire workforce is for administration and support of the entire workforce. Baird: ER is budget restructure. Page 67 unit 5902 Assistance & Services Corsi: description of unit. Page 68: Community juvenile services board. $2 M appropriated. 15 counties on board, soon to be 16. Would like to bring all 23 counties on board. Harshman: Cross walk on 40 M reduction. Baird: ER is for budget restructure. Majority of 40M went to x unit. Page 99, unit 5903 – Community Crisis Beds Corsi: Explanation of unit Stubson: Power to move beds to different places around the state is good in concept. Have you done that during the last year? Corsi: Authority, not power. We have been met with resistance on moving beds because we pay for them whether they are filled or not. Subsidy to organizations providing the beds. Cathedral homes. Gave example Stubson: If we can support, let us know. Corsi: We appreciate that. 221 utilized beds, 50 of those for PTRF beds which are outside our department’s purview, more within WDH. Committee established moratorium on building additional beds. Moratorium is still in effect. If we don’t have that moratorium, our providers across the state, will have incredible competition for building new facilities. Greear: page 72 – protective services – money for travel, etc. and no employees? Baird: probably overfunded unit 5901 with travel. Dollars are necessary but belong in 5915, will clean up in the supplemental. Some will be spent for boards and commissions. Corsi: We may have underfunded our local services unit by a like amount. Harshman: 5.2 M drops to 2.7 and now proposed at 6, Governor said no, now at 3.9 in GF. Again crosswalk. Harshman: Moratorium on beds, More money than costs. Baird: Money allocated to those is simple divide. Page 99. Numbers in narrative are incorrect, included Governor request that was denied. On page 101 6.9 M divided = about the 117 per day. That is how the rate is developed. The 2.7 to 3.9. 2.7 is budget request, 600,000 in supplemental is biennialized to 1.2 which comes to the 3.9M Harshman: Why the increase in federal funds then the drop off? Baird: Misinterpretation of use of TANIFF funds. Perkins: Management of beds by different rates. Harshman: We were defeated in that. Corsi: Political hot potato Connolly: 2200 children served. Crisis centers in my community, kids do not always spend a night there. That element was not taken into account when coming up with that differential rate. Corsi: That is a counting issue with providers. We pay for beds, not TV or lunch. 51 to 53% utilization of beds throughout the year Harshman: Juvenile justice. Corsi: unit 5904 on page 102. Juvenile probation services. Description of unit. Harshman: Will give cross walk of 25M Baird: Moving positions into the local services, have overfunded in this series and underfunded in other unit. Unit 5905 – Historical boy’s school. Unit 5801. Skip this and 5106, will see the reductions Corsi: page 115 and 130 Harshman: Zeroing out Greear: $5M cost to deal with Baird: unit 5904? Greear 2.5M per year to deal with 2640 youth? Baird: close, off in the 200 series. Unit 5915 underbudgeted. Greear: Those kids would be in more expensive unit – like boys or girls school Baird: page 145 child Abuse and neglect Trust fund Corsi: description Baird: over 5 M, less than 6 M is in the trust fund Page 145 – shifting based on BFY13-14 actuals. Move dollars from 900 series into 200 series. Burns: I see the revenue. How is the money being spent? Baird: on page 146 Burns: To what effect? How is it benefitting people? Corsi: Can get you a breakdown of contracts in this unit. Prevent child abuse Wyoming is a contract to provide education and training across the state. Ex: Abuse identification training to law enforcement, hospital staff. Richards: 900 series treated like WDH – too voluminous, it is online Hibbard: ending balance of trust fund. About $5.3M most recently. Baird: page 147 – unit 5909 Corsi: 30 FTE, description of unit aka ISP unit. Alternative to out-of-state placement. 1840 urinalysis tests. Baird: Governor recommended reduction in Tobacco Fund, pages 150 and 151 in 300, 400, 600 and 900 series. Similar request in unit 5915 which has tobacco funds. 2nd item is budget restructure. Governor approval. Greear: Is travel budget wrong. Is it sufficient? Baird: We reduced it significantly in this request. It might require some increase as we go forward. We will monitor it. Greear: Are employees centrally located? Corsi: Most ISP staff are in populated areas. Benefit of ISP is working with youth in community so less travel costs for these staff. Greear: Are our areas, of lesser population, being served by this? Corsi: We would have to look into that. 1250 kids in custody at any given time. We will find out. Greear: want uniform coverage. Connolly: Governor’s recommendation for reduction of half of the tobacco settlement funds. Salaries, professional fees, space rental in this budget. $850,000 budget cut impact? Corsi: less urine tests, ankle bracelets, not employee cuts. Contract with WDH to provide the urinalysis testing. That contract will be eliminated. Harshman: Why did you take out 1.6 M in GF on table on page 147? Baird: Numbers are incorrect in the narrative, look at page 150. Harshman: Can’t see history. It is not 1.6, it is 1.4 M/ Baird: we will clarify in the cross walk. Harshman: is 1.4 M cut? Corsi: yes but it is increased in the local services unit. Baird: page 153, unit 5910 – Supplemental Nutrition Assistance Program (SNAP) Corsi: explanation of unit and statistics. SNAP program Moniz: Is there any requirements on what they can purchase with this card and how is it monitored? Corsi: There are some restrictions on purchases with the cards. Different for different states. No alcohol or tobacco purchases, no strip clubs, gambling facilities, no prepared foods. 22 states banded together to try and do restrictions by individual items. Federal government said no. This is the supplemental nutrition program, not the complete nutrition program. National conversations. Burns: citizen complaints of EBT cards, shame removed. Quite a bit of fraud with the coupons. Coupons were like cash. Corsi: I have only been around since EBT cards. If card is requested to be replaced more than 3 times, requires a face to face meeting. I don’t think we have much fraud. Burns: EBT cards can track what is being purchased. Corsi: Retailers can and we believe the USDA has it and will not provide it. Moniz: Are retailers required to report fraud? Corsi: I don’t know, will look into it Moniz: How does anyone know what they are buying? Corsi: Cigarettes would be a banned SKU number Ross: What is the benefit monthly? Corsi: depends on the size of the family and the income. Lowest is $16 per month. I do not know of upper limit. We can get it. Burns: 10% of state and 20% of nation has cards. Does card get refilled each month? Corsi: yes if they continue to meet the requirements. Burns: end of month shortage Corsi: other mechanisms included food banks, family and community members, TANF Burns: SKU numbers. What about fast food? Corsi: They cannot. Greear: No employees in this unit but we have a cost. Why do we need GF’s? Corsi: The employees that would administer these dollars are in the local services unit 6015. Baird: GF dollars because of requirement on administrative costs. Feds do not reimburse 100% of costs. Greear: what if we don’t administer the program? Corsi: We would have 35000 hungry people across the state of Wyoming. I don’t think there is a provision for the federal govt. to administer that program. 1/12/2016 5:49:38 PM Harshman: Baird: unit 5911 Child Support Enforcement Corsi: explanation, 23 FTE, duties, 260 contractual staff. This unit is #1 across the nation. $74 M collected in SFY 2014. Connolly: Does every divorce decree with child support provisions go through your office? Corsi: When there is a court order for support. Ross: Whether or not it is 4D Case or not, section of social security. Usually money is owed to the state of Wyoming because there are means tested benefits. Connolly: Do some families do it for convenience? Ross: originally all money was collected through district courts. Most goes through the SDU now. Almost every divorce decree and paternity case will require a withholding. Corsi: 25000 out of 28000, on a monthly basis. Burns: child support enforcement does not get involved unless there is missing funds. Ross: not necessarily. How public is that information? Ross: All paternity cases are confidential. Divorce cases are public record. Burns: Are child support cases through district court public record. Ross: They are if not closed case. Burns: A state put picture of dead beat dad on pizza boxes. Increase in child support payments 1/12/2016 5:58:16 PM Corsi: page 165 Child Care program, explanation. 723 licensed facilities. 20000 slots for children. Burns: matching funds required? Baird: Maintenance of effort funding, like a matching funds. Most of the GF is for the maintenance or matching. We have traditionally over matched. Harshman: Budget goes down by 7 M, comes out of 100 series. Where did the folks go? Baird: Staff to services unit. Greear: percentage for federal match. Does maintenance of effort count towards that match? Harshman: page 167 – Baird: it is priority 2, not 5. Corsi: Report referenced. Joint labor, health and social services as well as joint education. Connolly: Copy of original RFP? Corsi: TANF Promote maintenance of family unit, reduce out-of-marriage children, and reduce dependence on assistance Baird: Priority 3, job placement and training. Continuation of program approved earlier. Denied by governor, but recommended use of TANF funds. Connolly: TANF funds? Baird: Redistribution of existing dollars. Connolly: reserve and program reduction? Baird: will get reserve number Corsi: Reduction…wyostats; look at staffing, funding, and requirements. Page 174, Family Assistance. Homeless services, administration of various agency programs. Page 181, Local Services. 400 total employees. Provides variety of services. Harshman: Philosophy of how to serve the people and “crosswalk” needed. Baird: Can collect additional federal monies Corsi: Simplification of budget for department. Tasks remain the same, more allocation of dollars and staff. Harshman: reversion coming? Nicholas: $500,000 reduction in general budget, transferring state to federal dollars? Provide list of positions reduced. Baird: flat request, decrease general fund, increase of federal dollars. Connolly, page 182. Tobacco fund reduction. $300K from probation? Baird: eliminated 600, 900 series contracts, rent, some 200 series. Resulted in some reduction in ankle bracelets and urinalysis testing. Tried to preserve existing services. Corsi: page 228, tribes. Enables tribal staffing of child protection and juveniles services on reservation, 2 contracts with Eastern Shoshone Business Council and Northern Arapahoe Business Council. 600 series. Burns: How monies disbursed? Corsi: Not 50/50, Northern Arapahoe contract is larger due to larger population. Greear: How much of these services are eligible for TANF funds? Baird: Not many are eligible for TANF. Working with Casey Family program. Corsi: Federal act that if kids in foster care could be eligible for additional federal dollars, usually income guidelines. Harshman: Need more narrative. Corsi: How many people being served? 75,000 individuals per month across the state that interact with and touch. Corsi: Remainder of budget united reduced to 0. Harshman: Need “crosswalk” to understand restructuring of budget. Ross: Appreciate all the work that went into restructure, Director Corsi. Concern about outstanding reversions. 1/12/2016 6:53:37 PM Recessed.