JAC Index 011816pm1 Monday January 18, 2016 Agenda Governor’s Letters: 1/18/2016 3:10:52 PM Chairman Harshman calls the meeting to order. Kari Gray, Chief of Staff Mary Kay Hill, Policy Director Alex Kean 1/18/2016 3:11:53 PM Gray: Kean: letter 1 – Abandoned Mine Lands – Extension of Prior Authorization Harshman: Delay of the work. The original uses authorized by the legislature for these dollars and we are just extending the authorization? Kean: Correct. No redirection of the funds. Just extending the dates 1/18/2016 3:14:40 PM Kean: letter 2 – permanent mineral trust fund reserve account, works with GL 3. Section 346, slight reprioritization of projects Harshman: SF 46 begins FY 17. Kean: Correct; Harshman: Profiled in CREG is about 2.1%. This guarantees 4% how does that work? Kean: 140.7M goes into the GF. Subsequent to that CREG report, explanation Harshman: Profile 2.1%. This guarantees or profiles another 1.9% Kean: Not profile into the GF, profiles it against the dollars in the PMFT account. Creates a larger unencumbered balance in the fund. Ross: Will there be any money without doing anything in the traunch 3. Kean: I believe the 2.9M on the dividend and interest. That is the only known dollars to date. There have been some realized gains. Not known or distributed until the end of the fiscal year. Some losses recently. No significant money coming in beyond the CREG projection. Harshman: confidence in funding of projects Kean: uncomfortable that they will be funded Nicholas: is that your projection Don/ Richards: If you take the first 6 months and extrapolate out and add in the 2.9 M I think you will get lose to the first payment of 37.5 million. In recent weeks, significant losses on paper to the accounts. I think Alex is saying it is less and less likely. Perkins: Treasurer would offset realized capital gains against capital losses? Richards: yes. We can’t tell when the investment managers on their own volition will trade securities. Harshman: Golden rod. Balance of 205M. Capital loan Richards: it is in the note Harshman: Is the balance 255 Richards: $149 and taking $ 50M as part of the back flow or guarantee of SF146. Harshman: What is the balance if you guarantee the 4%, of the reserve account? Richards: $198M before the Governor recs. Harshman: some offset; so balance is 27M roughly. It will guarantee the 2.5% going forward. Richards: No, guarantee for 19 and 20. Auto appropriation taken care of in note. Harshman: how much for the auto? Richards: 50M. If we only hit 2.1% for 17 and 18, could have situation in 19 and 20 to not meet the guarantee. Harshman: Unlikely? Kean: Governor letter 3 – new prior balance appropriations, gov. rec to substitute the 165.4M in DOT for 17-18, 46M std. rec in that budget. Substitute out 46M GF, statutory provision of federal mineral royalties. Harshman: Borrowing authority Kean: Delay between grant submission and money received by the state. Agency would need to borrow 60M up front to have cash in place to begin work. Harshman: borrow from the agency pool Kean: I believe so Harshman; gov project on the back? Kean: yes. Attempt is to fully fund these projects. 25M for surface projects. GL to change that recommendation. Reducing the LSRA ask. Ex: UW science initiate line 2, additional funding need is 40M. Back of GL. UW Science Initiative, State Health facilities 78.455M, Casper office building of 14M, Surface transportation projects 25M for a total of 157.455M, leaving 7.945M substituted funds. Harshman: These two letters fully fund the projects, including the governor’s letter. Kean: correct Nicholas: current 2015-16 dollars –can they be used? Kean: I will find out what their unexpended remaining balance is for this FY. Connolly: Bottom line of 7.9M in AML funds is being left on the table? Kean: correct, These would be substituted out. 1/18/2016 3:32:33 PM Hill: GL 4 – Cybersecurity Training and Education Initiative. Training program to combat cybersecurity threat. Run through DWS. Credentialed program and national certification. Need in state of Wyoming and skill set for Wyoming students. Attached business case. This was not on the Governor profile so this would be new money. Burkhart: Estimate of graduation of first student? Hill: 16-17 school year of 17-18 school year Stubson: Common type program, other schools in region offer it? Hill: new and emerging skill set. Gold std. credential. Program is not available in the region. Stubson: Does it require hiring of new faculty? Number of students? Hill: Hiring of faculty at UW and LCCC. First step is to identify the program and what level would be most effective. Graduate only a hand full of students at first. Connolly: Timing of the request. No discussion of this in community college or UW budget discussions. Hill: Proposal under discussion prior to budget preparation. Slipped the attention of our office. Not considered by the UW Board of Trustees. Governor priority. Perkins: How many years for student to get through program? Hill: Stackable credentials. Two year associate and 4 year bachelor. Perkins: Stackable 1 is a certificate program or is level 1 in conjunction with associate degree? Hill: Focus on academic and skill set so companion academic degree and industry credential. Perkins: Will credentialing require achievement of degree? Hill: I do not know. I will find out. Perkins: 1.2 to get started. Will this be a recurring part of the budget? Hill: Ongoing program and need so, yes, recurring. Wasserburger: Article on UW programs compared to CSU. 111 programs versus 78. Why start a new program during diminishing financial times? Hill: Bd. Of trustees and new president will look at programs and elimination, not intended to exclude a priority program when it can come in. Hastert: 1.2 M is for getting individuals into Wyoming to build the program, for experts to develop the program Hill: Business case has budget in it. Tuition for degree. 1/18/2016 3:45:16 PM Kean: Governor’s letter 5 – January 2016 CREG report – reduce health carryover account, take it to zero. 1M for SLIB purchase of bridge to access Evansville, section 320 compensation increases, no money has B-11ed. Funds in agencies budgets were sufficient to cover the increases. 5M DOC vacancy savings Harshman; 10M – agencies did not need the money because it was in the 100 series already. Kean: explanation. Calculation for estimate needed, timing differences. Harshman: Not that pay increases were given with vacancy float, more of a calculation issue Gray: criteria for pay increases, like 1 year employment, satisfactory rating, in the position. Calculation was to cover all contingencies. All factors resulted in less money being needed. Harshman: No liability in the future? Kean: 9.5M DFS. Greear: What agencies have not reported in and what amount for reversions? Richards: Posted in sharepoint. Approx. 48M. We believe many of those won’t come back, misclassified in the accounting system. For some even if money is reverted, it does not come back to GF but to the capital construction funds. Dept. of AG and Dept of parks and cultural resources, still have 2013-14 money outstanding. Greear: What is the hold up? Harshman: We are making budget cuts and then have reversions later. Need update in 24 hours. Hill: Hibbard: 10M – some money laying on the table in some agencies budgets. Trying to not put money in a budget then take it away. Title 25 – 17M on the front end of this, could be an additional 10M. Harshman: with 13-14 budgets? Hibbard: I am not aware of anything of significance, outside of DFS. Connolly: Richards spoke of 20 M in reversions, gov. want to hold onto it for Title 25. You say there is not reversion money from those depts. Hibbard: Title 25 is isolated with the dept. of health. For 13-15, for Ag and Dept. of Parks and Cultural Resources, I am not aware of significant reversion. Grey: Mr. Hibbard is talking about salaries. We are talking about other reversions. Kean: GL 5 continued. Significant amount of vacancy savings. Governor is asking to identify vacancies to reduce the overall standard budget number. Ross; 14.85M, takes into consideration leaving x on the table. Kean: Correct. LSO Goldenrod identifies carryover. 1/18/2016 3:58:28 PM Kean: Gov. letter 6 – Prior Appropriation. Integrated test center, asking for carryover of appropriation. Harshman: how much is left? Grey: Bulk of it. Harshman: Important to this committee to keep initiatives and policies moving forward 1/18/2016 4:00:16 PM Hill: GL 7 – We the People – Not part of Wyoming high school activities program. Work with Wyoming Council on Humanities. Large portion borne by the participants. 1/18/2016 4:01:52 PM Grey: GL8 – Surface transportation – 63.7M additional funds to maintain in today’s condition. 47.8M incorporated into this (fuel tax increase). Gov. rec. of 25M from LSRA but roads can be funded out of AML so gov. has changed funding source. Harshman: new highway bill add x Million Hibbard: Avg. of $20M with not as much the first year. Author4ization is an estimate of what congress will supply. Annual appropriations bill from congress has a take down. Can’t count on the 20M per year. Harshman: Feds have decreased over the last 5 years. Hibbard: 67 plus 47 Harshman: on top of 67M Hibbard: Still short. Harshman: Hibbard 67M is annual as is the congress appropriation. 25M is one year, one time request Connolly: 25M of AML out of the 165 or different pot Hibbard: out of the 165 Connolly: So we are directing DOT what to do with the money. Hill: GL9, Wyoming High School FIRST Robotics Competition. Connolly: Money would be where? Hill: Governor’s Office. Hand in hand with UW engineering initiative, one time money Gray: GL10, brucellosis testing and containment account, refill to $500,000 Burns: Still $330 remaining in account, correct? Gray: Yes Gray: GL11, Public Defender, District Attorneys and County Attorneys. Additional positions, operations and capital case dollars were exception requests. Offices would be reviewed and analyze their operations with monies deposited with Department of Administration and Information. Burns: $1M necessary for appeals in Eaton case? Will other capital cases need monies of equal amount? Gray: Not necessarily. 1/18/2016 4:25:54 PM Break 1/18/2016 4:35:21 PM Gray: GL12, Water Strategy Initiatives. Ten in Ten Project, addressed by Select Water Committee. Some of these projects will require additional funding past existing agency resources. GL13, Local Government. $90M for local government, $33M for consensus block grant to support local government infrastructure projects. GL14, Wyoming 2-1-1 Program. Call-in model, Department of Health, 600-800 calls per month in all 23 counties. GL15. State Capitol Restoration. $37.5M installment, 2nd year payment. GL16. Senior Center Funding. Department of Health. GL17. Governor’s Task Force on Forests. GL18. Brand Inspectors. Department of Administration and Information found wages are 13.64% below comparable positions. 8 years since salary increase. GL 19. Wyoming Energy Strategy Initiatives. 12 new initiatives for 2016 strategy; 2013 strategy had 45 initiatives, but 28 established in Enzi STEM Building. Burns: Why not budget instead of profile? Gray: Not reoccurring budget items for agencies to place in budgets. GL20. University of Wyoming College of Engineering & Applied Sciences Building. Hill: 3 part request - College of Engineering and Applied Sciences facility. Redirection of AML funds. Change appropriation language. GL21. Abandoned Mine Lands – Redirection of Prior Authorization. Kean: Redirect funds to Governor’s Office from Wyoming Pipeline Authority and extend date for reversion of funds Greear: On-going work? Gray: Map a corridor used by variety of pipelines. Reduce impact of numerous pipelines, and expedite permitting process. Hill: Preliminary EIS Richards: $1.32M of $2M available GL22. Federally qualified health centers. Hill: 8 facilities at 13 locations around state. Facilities provide primary care at various levels; to receive designation must be a nonprofit and community based as well as a majority of governing board of directors must be patients. One time funding. Department of Health. Connolly: List of 8 facilities. 1/18/2016 5:12:20 PM Adjourned.