12/7/2015 12:30:16 PM Chairman Harshman: Agency 001 – Governor’s office. Chief of Staff Kari Gray Wasserburger- high school recollection Harshman – joke Gray: 1st exception request, page 12 of the budget for IT equipment replacement. Asked agencies to relook length of time equipment can last. Amount is 1/3 of equipment originally slated to be replaced. Gray: page 21 for policy side of Governor’s office. Similar as above. 400 series request. ETS funding was billing of agencies, so based on history, the amount was set for the 400 series. Expense for agency, revenue for ETS. Gray: page 22, personnel positions, given positions back with remainder of salaries attached. Put a policy person into a budget person. 40,000 vs 100,000. Borrowed money for misalignment of positions Nicholas: Breakdown of positions and amount, when transfers took care and specific positions. Why are we just getting it now? What is total amount? How much are you retaining back? I can give you the information later. Harshman: How much is moving? Grey: page 22, giving back x thousand. One was a clerical budgeted at approx. 40,000 plus benefits (not exact), other position 100,000. Now because we had a policy advisor hired at a much lower amount, great inequity. We will not change because we do not allow other agencies to do that. Would have to stay at that amount or leave until pay raises can occur. Seemed wrong so borrowed money out of these other two positions. Giving them back along with the remainder of money. C Nicholas: Go from 47 to 50 employees, does that include reduction of 2? Gray: Would have to divide out the Governor’s office, which includes homeland security. Go office has net decrease of 2 or 3 positions. The increases come from Homeland security. Burns: You have replaced two administrative with two policy which are higher salaries? Gray: No. For one of the people, we hired them incorrectly. We are giving back 2 complete positions. Used some of the salary to equalize the pay. Burns: That has been happening with other agencies in order to give raises. I have a problem with that. Many people on this committee do. If the Governor’s office is doing this, why can’t other agencies? Gray: We miscued the salary. Reclassification is a B-11 process which we don’t allow. When the pay increases came through, there was an overall view of the entire state, misclassification or errors. 500 statewide, allowed at that juncture the compensation committee to review their classifications at that point in time. When the compensation committee agreed to correct, we allowed it if they used unfilled positions and not an increased budget request. Avoiding budget creep. Nicholas: You did not have a policy position so you put someone into an administrative position. That is not a mistake. Took away a lesser position for a higher position. From 2010, person knew pay and position. Gray: If you come into this job, state classification and payroll. You take a position and hire it, then learn the budget system. I can see what you are saying. In essence we hired a young man who has always done policy, for less money. He agreed to continue. When the juncture came that all agencies could change the compensation, we did so. Legislature mandate that 100 series could not have that creep. Giving positions back but not the full salary back. Greear: We have vacant positions and dollar amounts are staying there so we are getting compensation creep, are we not? Gray: Not. State has approximately 987 vacant positions. 287 requests, 250 granted. CNAs at Basin, as a class, given increase. Giving back positions and money associated. DOC and DOH are the only two agencies that have flex. They have been flexing their 100 series dollars with permission of legislature. Complex story overall. Greear: I appreciate the explanation. If we reduce two positions, the salaries of those two positions should have the salaries in parentheses next to them. Gray: In great part, the reclassifications were for classes of folks. We have made folks follow the rules. Grey: page 29. Money for tribal liaisons. 2 year salaries. Nicholas: There was to be an interim evaluation of those two positions. Why is the conclusion that they are appropriate to have? Gray: Legislation passed last year. Each tribe nominates folks to serve as tribal liaison. One tribe elected not to nominate someone. Explanation of usefulness of the liaisons. Northern Arapahoe selection at time of the hiring freeze so process is almost complete and there will soon be a norther Arapahoe liaison. Nicholas: appropriate for us to give you one year of funding? Gray: certainly, if that is your choice. There was a lot of work by JAC, legislature and tribes to build a relationship. Northern Arapahoe and Eastern Shoshone. For the dollar amount, a message of commitment is important. Greear: What was contemplated for the 900 series? 160,000 dollars, page 29 Mary Kay Hill: All appropriations are inclusive. Gray: The amount covers all expenses of liaison including travel, consulting. Harshman: Salary and benefits. Who has 160,000 for professional fees? We understand the salaries and benefits. Mary Kay: Travel, etc. We can break it down for you. Program established by enrolled act 74 Stubson: Exception request because it was from last session. It will become part of the std. budget going forward. Grey: yes. Burns: I would like an accounting of the 900 series. I remember the argument about the dysfunctional system. Has a process for appointing the liaisons been promulgated in the rules? Hired by Gov., serves at pleasure of gov., chooses from a list from the tribe Gray: yes. Process is set out in the bill. Gray: page 37 disaster contingency account. Buffalo, Lusk, Casper last year. Traditionally has a million dollars. This is to replenish the balance. Stubson: Essentially two years? Is this for one year? Mary Kay: total biennial. There are more than one contingency disaster accounts. Gray: I do not recall. Some disasters funded out of other accounts to a greater degree. Varies. Greear: supplemental budget request for last year for flooding last year. If we need a million, does it include the amount moved in the supplemental budget? Gray: request last year from Homeland Security. Because at an end of a biennium, the legislature recommended flex authority for Governor to cover end of biennium disaster requests. Connolly: We decided last year that flex authority meant we did not need to have the 1 million to wait. What options do we have for the Governor to respond? Gray: Purpose of this account ..Funding disaster out of GF’s would be extraordinary. A million dollars does not go far in disaster relief. Mary Kay: Homeland Security will be able to fill in some of the pieces. Legislature established mechanism where county money can be matched with state money. Harshman: Total now in account is? Gray: Answer Perkins: Explanation? Harshman: Balance is? Gray: I have misstated what we are asking for. Greear: Std. budget of 315 so it goes in every year so we spent 344 so recommendation is that goes out of LRA. What is in the acct right now? Richards: X million. Original amount in fund. Reimbursement issue is that feds pay and state reimburses them. Harshman: What will some of the payments be? Hibbard: 344000 original ask. This is a onetime ask from the LSRA. Greear: std. budget of 315, one time for 344 Hibbard: need for additional. Total 659000 asked for. Harshman: nearly 1.2 m in acct, ask for some delayed billing, what is the amount. Hibbard: Harshman: keeps acct at 1.2 M Hibbard: correct. Perkins: same for county firefighters, takes a while for federal govt. Harshman: What is the total amount going to be? Grey: My understanding is that it should be 1 million? Billings estimated. FEMA pays, county has a match. State reimburses county for the match. Formula for grants out of mineral royalties account. Harshman: Shortage is more than the x amount? Gray: Account does not revert. Generally bring account back to one million. Greear: After disaster is over 1 million, FEMA steps in? Gray: I do not think that is correct. Tied to nature of disaster, not dollar cap. Gray: page 83, Federal natural resource funding. An answer to ESA, works on resource management plans, with BLM. Money given out in grants to counties. Intent was to help counties and cities be more adapt at helping. Sage grouse needs ongoing work and funding. Greear: Governor indicated agencies had listed cuts. Gray: We did not do a priority chart but we will provide you one. Hibbard: Elected officials can speak to their priorities, so elected officials did not provide a list either. Gray: We will provide a priority chart Mary Kay: priorities include water strategy, energy strategy. Policy folks who carry out the initiatives we have worked on together. Section footnote 334. Connolly: page 84 – performance justification. Chart with explanation for 1 million? Gray: A historic list of where the money has gone for use under the account. Legislative/Gubitornorial. Connolly: biggest figure is on page 86 to county commissioners association. Can you talk about that? Gray: I can get back to you. Jeremiah Reeman works most closely with this account. It does not mean the commission is using the money, overarching need of county. I will get back to you Stubson: County commissioners association – wilderness study areas initiative. Availability of NERFA. Statutory limitations. There may be more demands on these funds. Gray: Money has been used for particular wilderness studies. Good example of use of funds. Perkins: Counties, through commissioners, can participate in forest and range land management plans. Example: Big Horn horse mgt. plan. Takes resources and expertise to assist the counties to have meaningful input. Gray: 9 plan this year- 9 districts rewrote their plans. Nicholas: Don, a breakdown of pay outs over time since creation. Kari, who determines who gets the money and how it is distributed? What is money to AG for - a passover or for doing a function? Control of attorney. Why can’t the AG office provide that function? We provided those services in the past. I would like a better understanding for mark up. Gray: I will provide that. There is a report on file that shows expenditures. For the AG office, it does very little contracting of attorneys. There are expert witnesses or travel. If money is not expended, it reverts to account to be redistributed. Burns: Thank you for the list. Coalition of local govts. is what? Where does that money go? Gray: It is a grant situation. Different communities form a coalition. Once the award is made, the money is given as needed so the county, city or coalition will up front the money and then send an invoice. Local govts. I would say this is one of the most effective ways of dealing with this. Burns: Historical spending list amount to a million? Gray: I do not know. I can give you a list by year. Burns: Is the list for one year or two? Gray: I will check. Burns: If you spent a million, why do you need another million? Mary Kay: There is a statutory piece to the LRPA account. We can send you that report. Request is for amount to fill up to statutory amount. Burns: When the legislature set that statutory amount, we were spit balling it. Why wouldn’t we want to reset the amount? Mary Kay: We can give you those amounts. It is important to the counties, etc. Burns: Perhaps we have too much money sitting there waiting. Harshman: Summary page on the 900 series, page 4. Is that reflective of what you spent? Is it the current burn rate? Gray: defer to Hibbard Hibbard: budget authority provided, adjusted for std. budget, include one- time funding money. Burns: Big drop is in contractual services. Were there over- priced one time contractual services? Hibbard: Difference in amount asked last year and this year, Harshman: deep water ports drops off. Look at policy office. Hibbard: go to page 88. Natural resource policy acct. None of amt. became std. Now asking for 1 million, for direct needs. We did not put a dime in the std. budget. Go to page 4. 900 series. 2.2 associated with FNRF. The rest is spread around. Harshman: Thanks to presenters. We will break for lunch. Can do agency 63 and bring back homeland security. Agency 063 gov... residence Grey: page 6, total of x. raises and increase in cost of health insurance. All of the services at the residence. No exception request. Part time employee position not filled when person left. First lady will give that position back with 100 percent of the salary. Page 7 – explanation Page 12 – second part of residence budget. Replacement of china and tablecloths. No exception request. Harshman: page 6. What is the amount? Recommendation is 656 on page 6? Gray: correct. The first lady did not include the amount in her original budget. Harshman: got it Burns: What are the 3 positions? Gray: Chief of staff Sue Akay, overall management, scheduling, organization of contracts. Becky Beevers, executive chef. Groundskeeper. Burns: where does the money come from for a dinner held at the residence for extra help> Gray; from contractual services Harshman: 900 series Gray: Harshman: authorized in statute. Gray: thanks Harshman: Break until 1:15, finish Gov. budget with Homeland Security. Gray: do you want me back for that session? Harshman: That is fine with us.