JAC Index 02-09-2016pm2 Continuation of the General Government appropriations bill Draft 16LSO-0374 v 1.1 2/9/2016 3:25:58 PM Meeting called to order by Chairman Ross Don Burkhart asked to call the State Treasurer office back. He had the 900 data. State Treasurer is not here. 2/9/2016 3:27:49 PM State Superintendent of Public Instruction – Balow WDE staff – Brent Young, CFO Dianne Bailey, Trent Carroll, Kari Eakins, Julie MaGee, Brent Bacon Harshman: School A vs B. one is working, one is not. Bring best practices to the failing schools. Don’t keep changing the mark. Get all the schools above the mark. Balow: Example of coaching – let contracts expire. Staff partnered with Wyoming Superintendents, with UW. Put together a state system of support. School culture of collaborative relationships. State Superintendents Association. UW, Echo model from health field, to share from high performing leaders. It is all virtual. Looking at our data to make a difference. Young: Chief Policy officer: Evaluation model. Education Northwest is a partner. Doing focus groups. We know the outcome we want. Some funding will be used for an evaluation model. Data investigation of our lowest performing schools. Root cause analysis. Some of the same funding sources. Fund 4602 is education and testing budget aka ETA – goes dead in June of 2016. Balance of 330,000. Portion of contract to individual who is working with the Board to develop a strategic plan. Harshman: Unit, Division? Young: 4602 in 205. Harshman: What is it in 206? Young: It is only in agency 205. Perkins: We do not see a 4602 in the budget. Bailey: That was one time funding. It was a footnote. It is not in the FY 17-18. Harshman: Amount? Young: The remaining balance is around 331,000. Initiated at 1 million. Harshman: Anticipation of reversion? All used for contracts? Young: contracts Ross: Evaluation model. Does it go from top to bottom? From superintendents down to students? Young: yes – project Echo. PLC, regional events. Professional learning Committees. It will extend from the classroom through the superintendents. Harshman: Contract for 142000. Expires. strategic planning for SSOS. Young: With Dr. Devorak. Harshman: ends at the end of this biennium. Young: correct Harshman: pay for what? Young: 50,000 fee for using Echo platform, each time you use it. Staffing support charges. 275,000 diverted into coaching support model. Harshman; Where are the principal training held at? Young; On site. Harshman: Is 50,000 ongoing? Young: the 50,000 is what we can look at for continuing this or any other Echo platform. Any time you add a platform, it costs $50,000/ Harshman: budget in FY 17 -18 for these items? Young: Trying to address how to fund these models, capture sustained costs through the department budget. ESSA, changes in funding, component of support through that as well. Harshman: In FY 17-18 budget, where it at? Unit 1231? Bailey: 1231 is school improvement budget. 2.385M Ross: page 123 Bailey: Unit 1327 Harshman: not going to spend 3.8M on this. Will dip in and pull pieces out. Bailey: Correct. On unit 1231, consultant contracts for expertise, statewide PLC, Echo project, state system support. It would be pieces of that. Harshman: How much into statewide system of support? You just reorganized. Why don’t you have a unit of stateside support? Bailey: It might not be too late. Harshman: Give us a matrix of what 1231 and 1327 is divided into. Standard and history. Bailey: I agree. We can have it to you tomorrow. Harshman: Other callback issue. K-2 grade assessments. Computer assessment. Bailey: Unit 1306, Page 180 in budget book. Harshman: That is early learning. On page 187 is k-3 assessment. Notes say this needs to be looked at. My question is if this is really needed. Goes back to Senator Scott reading assessments. Test has grown to 50 questions Bacon: 1309 budget of 345000 pays for the person who also follows the 1306 budget and the Tanif preschool stuff. Testing pieces only costs 60,000 out of the unit 1309 for the x. 138000 out of x budget for x test. Harshman: Can’t that be transferred to federal funds? Bacon: I will do what you tell us to do. Harshman: More information on this and how to shift person to a federally funded program Bacon: will come up with some options. 2/9/2016 4:00:15 PM Change in presenters. 2/9/2016 4:00:32 PM Ross: Welcome to Treasurer Gordon, Deputy Arp. Gordon: Arp: Questions pertain to the 900 series, global budget reduction, $87,000. In the operations budget, the 901 series, page 16, what is it used for. We are responsible for unclaimed property, flow through funds. 901 professional fees, what are those and what do we use those funds for? Primarily those are banking fees. Depository fees, custody banking fees, page 16, column 3 – asked for an exception request. With a depository bank, we get about 2% on the money. We are in the process of doing an RFP on that. We will be lucky to get a quarter of one percent. Right now there is an offset. It won’t in the future. 559000 in the exception request. Custody banking fees – bank must handle flows back and forth for investments. 500,000+ per year for the depository banks. Over 1M per year for the custody banks RVA contract is for investment consultant. OSLI pays for a piece of that investment, because SLIB board has obligation to oversee. System that works with the state Wolfe system. Across the board cuts gave us an 87,000 cut. How drastic is the cut and what would it mean we would be cutting? Banking fees, consulting fees, QED electronic system that interfaces with WOLFE Ross: When does the contract end? Arp: depository bank at end of December. Burkhart: in the exception request, the 500,000+. Is that an exact number? Arp: We tried to calculate that if we were not getting the 2% as the offset. Burkhart: total of 2.3 M is a hard set number you need to pay all those fees? Arp: yes, looking at what we will get for interest. That is what we calculated it at. Burkhart: length of time for contracts for depository banks. Arp: Generally 5 year contracts. Perkins: Did your calculations take into account the contract ran through the end of December? Arp: ¾ of a biennium was the calculation. Gordon: Consulting fees – double hit to OSLI and our side. Another RFP we are engaging in could be problematic. Nicholas: Why are these funds designated as GF? Would it make a difference if we moved them to a non GF fund? Arp: There could be consideration on the custody bank piece. You would not have the magnitude of the banking fees except for the fact you have such large investments. We would have to look if that would help or not for budget purposes. As far as depository bank, that is deposits across state agencies, hard pressed to say that is for investment. Perkins: 2/9/2016 4:14:18 PM Judiciary- Chief Justice and staff. Ross: Senator Perkins and I asked for a callback of you. Chief Justice: Total GF is 72.9 M, 65.6M is salaries, 22.2 m is statutorily set. 19 retired judges. New retirement system is funded separately. 42.8M for other payroll. 7.5M for all other aspects of judicial branch operations. 1.2M out of the 7.5M is a big hit for us. Reversions: lag of changing the judges. Death of judges. Racines: overwhelming amount of reversions is from our 100 series. 1.9M from court technology budget which was an anomaly. We do not expect to revert that much or have cushion in that area in the F17-18 budget. Ross: Average from your 100 series? Racines: a percentage or a dollar amount? 13-14 just under 2.5m in payroll reversion Ross: Was that high? Racines: It was high. The 13-14 is the only biennium I had that number for. Record number of judicial openings during that time. Harshman: Can we get the information for reversions for several bienniums? Agar: I put it together for Perkins. Perkins: About 1.5 M, between 2 and 3 M. I think. What biennium was the 2.2 M reversion? Racines: BFY 11-12 Sharpe: We can find the money but have to underfund the salaries and hope a couple of judges die or retire. Chief Justice: not seemly to beg. Racines: We do not have a lot of vacancies – none for GF right now. Break 2/9/2016 4:26:04 PM 2/9/2016 4:39:03 PM Richards: page 31, WIN program, 31/69 Section 60, OSLI, Forestry program, line 25, page 31. If want to add back a position, would add $131,000. Williams: vacant positions in forestry, removed both. Richards: page 34, 35, footnote 6. $11.5M requested by Governor, $10.35M endowment funds in footnote 6. Footnote 7, 10% Connolly change. WICHE, either all one –time, or $62,000. Retirement, footnotes for upper salary limits on certain positions. ETS, global reduction on exception requests Department of Corrections, flex at State Pen Judicial District 9A, page 47. Fremont County pays part time UW Medical Education, Flex authority in 100 series, Department of Health review of family practice centers, then use $200,000 for outside vendor to perform review. Section 205, page 54, line 24, 1% impact, page 55, line 19, 2% impact to eca. $15M first year, $30.7M second year. Section 206, Department of Education. Exception agency for global cuts from exception request, not doable. Based on standard budget due to reorganization. Subject to penny plan in general fund and school foundation monies. Page 56/57. Budget Balancers, Transfers Section 300, page 72. LSRA transfer; $34,014,000. Harshman: Statutory reserve. Richards: STEA account. Water Account III School Foundation Program reserve account Permanent land fund holding account School capital construction account Common school account within the permanent land fund. Borrowing Authority – Cash Flow Section 301. General fund cash flow Section 302, Hathaway Scholarship Section 303, carryover appropriations, special contingency. Brucellosis, Colorado River Litigation, Yellowstone River Compact, Dual language immersion, Wyoming value added energy and industrial plan, education technology, wyolink Fund Balance, definition, Section 304. Section 305, Employee Benefits Section 306, Flex – Executive Section 307, Flex – Judiciary Section 308, Personal services transfers, Remove sentence page 86, line 28. Section 309, At-will employee contract position freeze Section 310, Budget reduction authority, revenue shortfall Section 311, Supreme Court/District Court Budgets. Section 312, major maintenance funding for state facilities, university and community colleges. Section 313, revenue reduction provision CREG provision, gas prices fall, $150M difference, could transfer from LSRA. Section 314, E-rate excess revenue funds Section 315, Computer purchases Section 316, Municipal solid waste cease and transfer loan and grant program, page 93. $28M balance in account. Section 317, Higher education matching funds. Matched by cash or cash equivalent. Section 318, Borrowing authority, executive branch programs. Fires and employees health insurance program and add $60,000 for DOT. Section 319, Limitation on salary increases Section 320, community colleges, funding model for state appropriations Section 321, UW department of petroleum engineering, endowment fund Section 322, Interfund Loan, reserve amount guarantee Section 323, Budget reduction transfer authority – governor. Super flex Section 324, Budget reduction transfer authority – judicial branch. Greear: better language in (a). Section 325, Mineral severance tax diversion.1% being deposited into permanent mineral trust fund, last 2 quarterly into general fund. Section 326, Federal mineral royalty diversion, page 102. Have been going to DOT, but AML funds going to DOT, being deposited into general fund. Adjourn 2/9/2016 5:53:28 PM