JAC Index 021016pm1 2/10/2016 12:55:55 PM 16LSO -0374 Draft 1.1 General government appropriations Harshman: Agency 048- Department of Health. We did not deal with the HIE, which is like the MISS. We dealt with it in the budget. We said do it but find the money. Flexibility and reversions to do that. Richards: Identical amendment for MISS system, for Medicaid program electronic health record statewide management system Harshman: motion, seconded, Adopted Federally qualified health centers – I made a proposal that was defeated. This agency has turned back 16M. My motion is to increase it to 750,000 for the biennium, if reversions appear. Connolly: Order of the programs being funded by reversions. Harshman: Leave it to the department. Hand vote 7 ayes – motion adopted. 2/10/2016 12:59:51 PM Harshman: Title 25. Is there flexibility in this budget for that or can we do that with reversions also? Nicholas: discussion with director of department who said he could handle the issues with Title 25 with the budget he has. Ross: I chaired the committee on title 25. I concur with Nicholas. Burns: Funding with reversions, do not know how much you are giving them. Give money, set up contingent things or set up traunches. Harshman: I am just exploring prefunding. Connolly: Decrease the GF by 33M and accept federal funds for Medicaid expansion. My recollection of the Director saying he could take care of Title 25 was if we did Medicaid expansion. Hastert: Motion failed. Nicholas: New list of positions. I would like to go back into each agency to address. Bring them up now and then go back. Position 11070, open 35 months. Harshman: Share the electronic list with everyone. Nicholas: fabrication supervisor. Seconded Burns: I thought we had a discussion with Mr. Gruver that we were not pointing out specific positions. Harshman: No position will be referenced in the budget. It is a reference for the correct dollar amount. Nicholas: To let you know where it is coming from. Ross: against the motion, particularly with the WDH, giving them super flex, esp. since we did not approved Medicaid expansion. Harshman: Any agency but this one I am listening. We have cut 72 positions out of 7000. Positions that have been open a long time. Largest agency in the state. ¼ of our expenditures. Motion failed. Wasserburger’s previous motion failed. Wasserburger; It was reversions within the department. I move to have a study for approx. 640,000 in eversions for the MIMS study to create database. Perkins: Will fold over into the department of health. I had problem with contract with private entity. If there is a way the department of health can do this internally, I would be interested. I am not interested in third party, subscription basis. Harshman: Perkins: move to authorize the department to perform the study. Not contracted with a third party. Nicholas: footnote – evaluate program and come back for the supplemental budget Harshman: Motion is for department to partner with AandI and other insurance plans to develop the database. May not partner with coalition on health. Dollar amount or up to? Wasserburger: We do not need dollar amount if study is going to be done inside the department of health. Strike the amount of funding in the amendment. Study to be done by the WDH on this issue Harshman: WDH will partner with employee health group, AandI, other partners across state to develop database. No dollar amount, no direction for contract with outside group. Connolly: We asked them to do it and they told us the cost. Against the motion. Harshman: Motion adopted. Oral health unit? Richards: 0521 within public health division, page 120 of the blue book Harshman: GF? Richards: 50/50 1.4 M Nicholas: matching funds? Greear: 3 elements. Community oral health coordinators are the GF dollars, I believe. Stubson: Staff, given the director’s flex authority, denied Exception Requests, gave authority to cover those. Is that captured in his flex authority? Richards: I think you have captured it except for 1M for Childhood, ECA for providers. 2/10/2016 1:20:20 PM Harshman: Agency 49 DFS Nicholas: 02590, accountant, vacant for 24 months, move to eliminate 70,000 GF Second by Moniz Motion adopted Connolly: Move to add back in 740,000 for early childhood partnership grants. Seconded by Hastert Connolly: Unique partnerships of agencies for this. Successful, encourage continuation of program. Motion failed. Nicholas: move to eliminate 30410, youth service aid, GF of 62000 Second Motion adopted Moniz: page 27 – What purpose does the footnote serve? Richards: Identifying funds, as well as beds, different intent than current purported intent. Stubson: They have authority to move beds around to demand areas. Trying to incentivize them to do that rather than create new beds. Burns: residential and group home beds, not necessarily state facilities. May I have a list of what is included in the footnote.? Richards: private providers. , yes 2/10/2016 1:25:38 PM Livestock Board 053 – Dept. of workforce services Connolly: add back in 1.4M for Wyoming Quality counts, training of daycare providers Richards: Cut 200,000 Harshman: history? Richards: 356,494 for childhood training grants total reductions Harshman: From a total of what original budget Stubson: 100,000 out of unit 135. Initially took 200,0000 out, put 100,000 back in. Connolly: motion to restore the cut funds to the providers and the scholarships. Harshman: Budget at 1.069M. Motion failed Nicholas: 61750 position elimination, computer tech, open 29 months Second by Moniz. $162000 Harshman: ETS? Richards: ETS job duties but housed at dept. of workforce services. Hibbard: Could have been position that was moved over Richards: No way to tell that, as sheet did not have units or position numbers. Harshman: hand vote – Motion adopted I move to see a report on worker’s comp utilization. We need to be aware of numbers. Enrollment and changes, want to know if something is happen. They have the data but we normally don’t see it. I want to see it. Motion adopted. Richards: page 20 – agency submitted shows transfers. Position 60750 is not on that list. 2/10/2016 1:32:06 PM Oil and gas Commission Section 57 Community College Commission Connolly: restore money for family literacy program Harshman: friendly amendment, half of the money for one year only, come back to us with sustainable funding but half of the half has to come out of CC block grant, other half from legislature appropriation. Connolly: friendly amendment Burns: out of the block grant for each college or the overall? Harshman: Overall Burns: violates idea of block grant, if college does not have grant. Nicholas: how much of the total Harshman: It is all General funds. Burns: I would like to amend the amendment. Basic family literacy – money comes out of the school foundation. Dies for lack of a second. Harshman: Show of hands – Motion failed. Richards: position 8 was populated. Position previously 6175 out of workforce services was already reduced. Agar: reduced by the Governor by std. reduction Move to strike, adopted 2/10/2016 1:36:37 PM OSLI Harshman: mineral grants of 33M, reduced by 3, governor line item vetoed. We used for court security funding. Reduce the 33M by 3 to 30 M Seconded Greear: question Richards: JAC reduced to 30M last year, used a portion for court security and for passing lanes, road improvements. Gov. is recommending 1.4M from the 5M balance for the first part of the share on the WyoLink system. There is still money left. Reduce the appropriation is the Chairman’s appropriation. Harshman: Reduce it like we did last time. Burkhart: funding source Harshman: federal mineral royalties, part of the under the cap Richards: There is some severance too. Perkins: Since it is under the cap, what happens to that? Richards: The state will benefit from that revenue. It just won’t be appropriated for the SLIB to appropriate. Hand vote – Motion defeated Williams: we removed position 99. Williams: 0104 position vacant Nicholas: return position 990 and eliminate 0104 motion, seconded. Reinstatement of position 99 passed. Eliminate position 0104 passed. Community College Perkins: Motion of footnote 2 to be proportionate, seconded. Adopted. Section 67, University of Wyoming Perkins: Footnote 4, page 34. Over directing loan repayment. Motion to place qualifier that revenues not come from other sources. Seconded. Burns: monies going to research as opposed to sinking fund for replacement. Connolly: motion to delete footnote 4, Motion adopted, footnote 4 is modified Connolly: move to delete footnote 4, Motion failed. Burns: Move to eliminate footnote 5, seconded Harshman: Motion failed. Nicholas: move to amend footnote 5 to “one time funding”. Harshman: Hand vote – motion failed. Harshman: Motion on school of energy research, report back to us in supplemental section, numbers on how the coal research is lining out to make sure powder river coal can meet the clean standard. Greear: The school of energy gives in depth reports to the minerals committee, every project and every possibility. Motion adopted. Perkins: can we make it be electronic? Withdrawn 2/10/2016 1:59:08 PM Agency 69 – technical correction, no motion needed. Enhanced oil recovery Retirement system Richards: technical correction ETS Nicholas: position vacant for 26 months. Move to eliminate. Richards: there are no GF associated with that position. Nicholas: Where are the funds coming from? Richards: If services are needed, other agencies pay for services. Nicholas: may be GF ultimately] Richards: correct, Harshman: no motion Break 2/10/2016 2:02:00 PM Section 80, Department of Corrections Connolly: Motion to restore 900 series, seconded. Nicholas: super flex available, restoration not necessary. Harshman: Super flex has only been given to 048. Richards: Governor still approves Sections 300 are more appropriate. Motion failed. Connolly: motion to restore substance abuse funding and use reversions from FY16, seconded. $1.4M in tobacco settlement and general fund. Motion failed. Connolly: motion to restore $500,000 cut from substance funding, seconded. Failed. Section 85, Wyoming Business Council Stubson: reinstate $750,000 cut from Rural Development, clarification from Williams, that did not occur. Stubson withdrew motion. Section 101, Supreme Court Perkins: motion to non-salary judicial 5% cut and allocated 64% to Supreme Court and 36% to District Courts. Total cut from $1.1M to $350,000. Seconded. Harshman: Reversions? Williams: Average reversion is $4M. Motion adopted. Section 167, UW – Medical Education Greear: motion to eliminate footnote if bill is successful, seconded. Adopted. Section 205, Education – School Finance Nicholas: motion to restore positions 0029 and 0140 as are federally funded. Seconded; carried. Connolly: ECA be cut ½% and 1%, seconded. Failed. Harshman: Motion to page 34, section 205 in budget book, student assessment, 4601. FY17/18 $8.435M, seconded. Adopted. Section 206, Department of Education Nicholas: Motion to eliminate position 00560, general funds, seconded. Adopted. Nicholas: Motion to eliminate position 0130, general funds, seconded. Adopted. Harshman: page 187, budget book. Move to eliminate program Greear: Is position filled, could that position be moved. Richards: position filled Nicholas: restore position 0026, seconded. Carried. 2/10/2016 3:10:35 PM Harshman: 1309, 1306. I do not know where that is at. The agency will have to take their reductions somewhere. Handout 206 – 188 – page 1 back page chart – Wyoming Accountability Act, Amendment based on the chart that these amounts that will come from each one of these units will go to form a new unit called Statewide System Support. It is an even swap of dollars. Provides for clear budgeting. It puts into the budget books what he department is planning to do. Motion adopted Nicholas: Elimination of position – redundant position 1001 AWAC, Harshman: State Board Liaison. Two members of the state board said they want this position. Board is energized and active. Volunteer board needs staff and coordinator. Nicholas: They have staff. 230,000 salary Perkins: page 27 of budget book – Harshman: 135000 per year. Nicholas: This is a redundant position. The superintendent and Board should be working cooperatively through the department. Harshman: The legislature created this position. Division: Motion adopted 2/10/2016 3:17:57 PM Stubson: If we could move back to section 85 to revisit issue of funding on rural development council – on the business council. Move to reinstate 400,000 of the 750,000. Confusion. When program was cut, business council absorbed into budget. Came in with voluntary reductions of 750,000. Greear: Stubson: It is a double cut. Hibbard: I did say this was double cut. Go took 750,000 through his recommendation and it was adopted. JAC cut more. Not a clear relationship to this program but two bites of the same apple. Greear: Want to be fair but should have been clear from the beginning Harshman: Motion adopted. 2/10/2016 3:22:42 PM Board of Equalization All commissions are self-funded. Go to page 72 – Section 300’s – Budget Balancers Richards: Plug number or put in number that is higher or lower. It will change as the flow makes revisions. Nicholas: how did it go from 33 to 38 Richards: Prepared before capital construction bill. I do not have today’s running tally. Harshman: leave it as it is. Nicholas: Put in 38, will have more impact. When you do all this stuff tonight, just get it as close to the number as you can Harshman: Should number be yearly or biennial? Richards: You have done it both ways . WDE has to take out a loan. Can raise balance, lower fund. Probably does not save money. Perkins: Is there a benefit to having the traceability of the loan or just creating paperwork? Richards: When there is plenty of money, they do not want the account to build up too much. When we are low on money…. Technically, the dept. is paying 6% interest to itself. Creates challenge for state auditor to make deposits into stock account, when facing a loan. Harshman: Richards: 73M in PLF holding account at end of next biennium, approximation. Move a large portion of the 550 M into the operations account, to avoid the paperwork and transfers Nicholas: Fund will still be short so still have to go through paperwork (with your proposal) Perkins: If we make it 100 M per fiscal year, does that equate to 200 M for the biennium. No Harshman: make it 400M then there will be less borrowing on that account. Nicholas: History? Richards: When we had large amounts of money, debate of directing money to school operations, capital constructions and savings. Excess money flowed down and collected at the holding account Harshman: If we put entire amount Richards: Combination of H and G – flows Perkins: Outstanding interest rate of 6%. Where does that get paid from? Richards: you appropriated it along with an estimate of interest paid in BFY 17 – 18, gets paid into permanent fund and comes back eventually. Connolly: move to prevent us from doing this. Move 400M Connolly: page 73, line 26, 100M become 400M. That funding out of holding account. It nets to zero, allows for spending to take place without the loans and interest going back and forth. Harshman: Motion failed Page 74 – move 600 M to 750M on line 6. Avoid tipping if there is a boon. It would have to go over 750M to tip. Stubson: friendly amendment to remove the sweep. Richards: Effective immediately? Harshman: yes – Motion adopted. Perkins: elimination of 9h) Richards: some language for effective immediately 2/10/2016 3:36:03 PM Richards: You ratified the action on the water account transfer, reversed the Governor action, took no action on the 3rd action, which was Governor move of 20M. You can be silent or ratify the transfer Harshman: Richards: page 73 , subsection d, f. Some question on Governor’s authority Harshman: if we reverse the governor, we have a larger hole Richards: correct Harshman: silent in this budget should ratify Stubson: move to ratify Harshman Page 72, 73, 74, 75, 76, 77, 78, Greear: On f, we made that adjustment, about deep coal ports? Harshman: amendment successful in gov. office. Richards: Yours and Nicholas’ amendment was successful, remove 100,000 Harshman: No further action needed Page 78, 79, 80, 81, 82, 83, 84, section 307, section 308 Section 308 Burns: move to give super flex authority to DOC Richards: We do not coin this super flex. Section 308 is where you want to provide the equivalent authority as WDH and UW. Harshman: Add it in a couple of spots. Can use 100 series for more than just recruitment. Burns: Very few departments we have whacked more than DOC. Harshman: 3rd largest agency Greear: Where will we be in 2 years? Will budget show where that authority was exercised? Do we need to say that? Harshman: Require quarterly reporting. Perkins: How does flex authority effect reconciliation? Richards: most of the agencies would not see this. Money used for supplies, medical services by contract, still be associated with vacant positions. If moved to 900 series, would show higher amount in the 900. I would not expect to see a revised standard budget from this agency. Greear: So we are block granting to an agency. Is this a path we want to go on? Nicholas: Move to amend with requirement for DOC to present directly what was done through the Flex authority, add to the footnote Burns: friendly amendment. Flex expires at end of biennium. Greear: Tobacco funds cuts, replaced by vacancy savings. How do we know where we are at the end of two years? Will we give the flex authority again and now worry about the problem? Harshman: Motion passed. 2/10/2016 3:48:07 PM Perkins: Would the flex power include cap con? Richards: not in this section Greear: move to reconsider Motion failed. 2/10/2016 3:49:28 PM Page 87, 88, 89, 90, 91, 92, Greear: On section 313, trigger? Richards: provision initiated on July 1 of this year. Effective for July 1, 2016 through release of Oct CREG. Same provision for calendar 18. Greear: Has only happened once and we have austerity legislation coming from the senate. Is this section necessary? Harshman: Greear: Put in language for repeal Nicholas: don’t need to do now. Harshman: Section 314, 315, 316, 317, 318, Perkins: notes Richards: Draft handed out yesterday, was adopted. Voting would be appreciated and dept. will be asking for a higher loan amount Harshman: Is the 60 enough? Hibbard: DOT recommendation of 82M., which is sum amount of money taken from them in that fiscal period. Perkins: so moved Harshman: Motion adopted Section 319, 320, Perkins Harshman: page 96, section 322, 323 Richards: section 322, backing of SIPPA and the order. Harshman: In the second place. Richards: Add a sentence to make sure. Obrecht: clarification of the way it is written Harshman: Super flex, this is written very broad. Can be used to cut appropriations, Can Governor go into UW and CC and cut or into cap con Richards: I do not believe he can move CapCon. If he wanted to take all the cuts from one program, BRAC, UW, CC, it would not be prohibited. Harshman: Are exception requests, salary requests, prohibited Richards: More complicated is – can he restore to a specific account. Stubson: AandI utilities was a specific cut. Harshman: Exception request salary increases are an issue. We want drug courts fully funded. We would have to list all agencies except the ones that are off the table. Would include 75 or 80 agency Obrecht: yes Harshman: Motion – concept – Super flex would not include ability to grant salary increases, could not be used with drug courts, UW and Community Colleges. CapCon is automatically out as it is in another bill Obrecht: Transfer GF from any agency or program. It is general law. It applies beyond the budget bill. Appropriate to include CapCon Harshman: Include CapCon, no salary increases, program outside lane include drug court funding, UW, Community Colleges and CapCon. Is 205 in that? Obrecht: it is not GF. Perkins: judicial branch Harshman: friendly amendment Greear: Super flex allows all of what we have done to be undone? Harshman: yes, less money though. We have made the cuts. When we vote on this bill today, the cuts are in this bill. We have given more authority to move money. Governor may want to cut a program farther and move the money somewhere else. Greear: I though the flexibility was to allow movement between agencies and units with governor oversight with respect to the global cuts only. I am hearing that this could potentially apply to every cut. Harshman: Language says GF. Greear: Harshman: Your interpretation is this flex is super duper, not just super. You want it on the global cuts. That is not what this says Connolly: I am going to resist this. I thought it would allow agencies to come in and make arguments about penny cut. Give Governor ability to listen to agencies. We are limiting the ability for the Governor to do that. Greear: I am saying the same thing – the penny cuts, the global cuts but not to everything we have done. Harshman: Explain amendment on the floor. My point is to pull them out of consideration Greear: I agree with your intent. I don’t want restoration of what we have done. Vote on yours. Stubson: The flex should not be used to reinstate programs that have been defunded. Harshman: Restating the amendment. Intent. Connolly: language of the amendment confused me. Intent is no reductions in those agencies. You could add to them. Harshman: Yes. Motion adopted Greear: page 97 – Harshman: Every agent in will be listed, excluding those not in. Greear: page 97 lines 17 and 18 - read language. It covers every cut. I thought it would apply only to the global cuts – the Penny plan and the travel cuts. Nicholas: Add a sentence that says cuts we made in our budget were made specifically for the health and welfare of the state, so changes can only be made for hardship for an agency. Greear: Instead of standard budget reductions we say the 1% global, 2% global and the 5% in the series 900. Perkins: I don’t know how it work for the Penny plan. Richards: Standard budget reductions needs to be substituted with something else. Paragraph g – define global cuts.- 1.5% reductions and any reductions to the 900. Nicholas: Cuts notwithstanding section 323. Richards: I would ask for additional leeway, 36.8 to be modified pursuant to the action of the committee today and motion removes travel. Greear: Travel not worth worrying about, most worried about the 900 series. Richards: With Greear’s proposal, it would not allow restoration of funds for reduced program. Harshman: Utilities is not a program Connolly: Clarification. Can 900 series be considered programs? Richards: defined with 5% - Example: matching federal funds Perkins: If we have missed the mark, we will clean up in the second half of the budget. Richards: yes and advisory opportunities this summer, non-binding to the governor’s plan. Harshman: Combined with B-11, there is plenty of flex. Keep in perspective. Greear: motion – line 22 page 97 remove language of “standard budget” replace with a different term, page 99 use a definitional term- 1.5% global and 5% reduction in 900 series Perkins: Austerity measures Motion adopted. Obrecht: clarification for drafting, includes list of 8 agencies. Harshman: Yes Page 98, 99, Greear: do we need the flex in the judicial branch now? Perkins: I think we do but can mirror Greear: I move to eliminate section 324 Motion adopted Page 101, section 325, Connolly: Capture the 1%, move into SIPPA. I would like the funds to move to the GF and appropriate from there. Harshman: line 25 - 17-18 funds only Connolly: correct Harshman: I will vote not. I wanted them into the school fund. Burns had a bill to put them into the GF. Burns: I withdrew that bill. Connolly: The money will be needed. We don’t need another coffee can with specific distribution. Put it in the GF and appropriate it to CapCon, school finance, etc. It is 200M over the biennium Burns: I withdrew the bill and prefer this because if it goes in the GF, it becomes a target of spending. Connolly: That is our job and the job of the body. Harshman: There is no redistributing anywhere. Most clearly labeled can – 1% severance tax. I wanted the word statutory severance account. Motion failed. Harshman: page 102, 103, section 400 Nicholas: Reopen agencies from this morning, would like to cut about a million more in GF dollars for positions Nicholas: Governor page 5 – two positions 32000 Hibbard: already gone Nicholas: Agency 006 – position 2015 open 15 months 199,000 move to eliminate Hibbard: we took 2013 before Motion adopted Nicholas: agency 006 position 35240, move to eliminate, Motion adopted Nicholas: Agency 7, page 9-10; position 01720 open 6 months, client service advocate. Harshman: are those veteran service? Nicholas: VSO position, all GF, not federal funds Nicholas: move to eliminate Hibbard: 475 GF? Nicholas: 135000 GF Motion failed. Nicholas: agency 10 – position 0030 record mgmt. specialist, 11 months open 161000 Motion adopted Nicholas: agency 20 – position 3082, open 18 months, 2/3 GF and 1/3 Fed 137000 GF, fed fund of 53000 if it was filled. Greear: Division? Hibbard: not on my notes Nicholas: Two vacancies for the same position Motion failed Division - Motion passed Nicholas: Agency 24 – number 02650, open 8 months, 151000 GF Motion adopted Division –motion passed Nicholas: I think that is it. Question on the bill. Richards: roll call vote Connolly – no, Hastert – no Vote is 10-2 with majority of both sides. Harshman: appreciate work of staff We have asked house members to let you be sequestered to work on this. Estimate of time line Richards: time consuming amendments, Rule that this must be out by Friday at 10 am on the house floor or it cannot review it on Monday. Harshman: move for an extension of that rule? Obrecht: can’t introduce the budget bill until it has been distributed to all members, 24 hours, reading on legislative day, wait 24 hours until the next legislative day. Burns: if it is not introduced Friday morning? Harshman: would have to wait until Tuesday Harshman: Courts – 330,000 Greear: use dollar amount, not percentage Perkins: Nicholas: Don Don: That is the most time consuming amendment. Harshman: Keep flex in and reduce the number Don: could have two pots of money. Perkins: leave cut at Supreme Court and leave district courts alone. Richards: We would prefer to do the amendment as the committee adopted it. Harshman: Time frame - Distribute electronically. Adjourned as a joint committee 2/10/2016 4:47:58 PM