12/8/2015 1:15:17 PM Tuesday, December 08, 2015 pm1 session AandI continued Agenda 1 pm boards and commissions 2 pm 077 ETS Ross: Called meeting to order Burns: correction for A and I. Why wouldn’t you use an attorney from the attorney general’s office? Tami Hooper: The 900 series includes expert witness. We may hire outside counsel if there is a conflict of interest. Ross: funding? Hooper: My fund is the risk pool, which is all of the money. I expended the money from my appropriation. GF from July 1 Horsley: July 1st Hooper: For me, my appropriation and nothing more Ross: The day the money becomes yours it is transferred into the GF Burns: Was the GPS decision yours? Hooper: AandI study in conjunction with motor pool. I said it looked like a loss prevention. We self-insure our autos. Used to reduce accidents, make employees aware of their driving habits to make it safer. Yes, my duties within the statutes. Burns: Was the money taken away from something else? Hooper: No Harshman: The state will not see any reduced insurance rates. We hope to see reduced losses. Hooper: Yes, job of risk manager to try to reduce risks, hope for reduced claims. Harshman: When will we find out the results? Hooper: Yearly, by statute a report is provided. 2015 report to GOV, speaker of house, president of senate, chairman of JAC. I hope by Feb. report that the auto and physical liability claims will be reduced. 5831 damage claims. I hope to see that number reduce. We required on-line defensive driving and other safety training. Harshman: Expenditure trend is less than we spending. Fund is growing. Can we reduce the GF? Rate holiday or reduction in GF appropriation. Hooper: I have no federal funds. Ross: Reserve, actuarial study Hooper: Study completed. Property, general liability, peace officers which includes federal claims, no tort limits on federal claims. Study predicted a 90% confidence level 4.5 to 5 million level per year. IBandR- projection of future claims is at 3.6 million. I need to keep fund sound. Ross: 25 to 30 million to be actuarially funded Hooper: yes Harshman: Is someone of it federal funds billed through? Hibbard: DOT bills usage of vehicle on federal task, it gets turned in so there is a tie. There are Game and Fish funds as well. Harshman: Not easy to say taking 10 million out of pool Hibbard: I would hesitate to take money out of the pool, could stop putting it in. Harshman: Other programs out there? Hooper: yearly to Coastal Dupont, DOT employees Harshman: we thought it was an agency yearly cost. Hooper: insurance premiums, renew every July 1, define coverage in May or June, and include civil rights claims, state aircraft and equipment, crime policy, Harshman: 300,000 intended use, legal fees for claims Hooper: depositions, expert witnesses, outside counsel 12/8/2015 1:30:41 PM Burns: compliment on chair of Republican Party Fausset: Motor vehicle management system – funded by other funds – replacement of computer equipment- from internal funds – approved by Governor Pg. 58 – administration, general services, 1 employee, no exception request Burns: - spreadsheet handout, Fausset – coding Hibbard – coding in Wolfe, nothing in AandI budget for aircraft. Stubson-pg. 52 Revenue projections are 1/3 of what they were. Fausset-moving positions, 1 to acting, 2 to trades and 2 to construction. 12/8/2015 1:35:09 PM Nicholas: page 55 Rockwell bldg. professional fees Fausset: unit 3503 on page 54, increased maintenance, state owned building in Sheridan, contract services instead of having employees in Casper maintain the building. Custodial, snow removal, minor maintenance. We did not have budget to maintain it when we built it. We have requested 35000 for maintenance that is outside of the scope of the maintenance contract and outside scope of major maintenance Nicholas: One time or biennial Fausset: Ongoing cost, I do not know the amount needed. 12/8/2015 1:37:47 PM Harshman: leasing verse owning. Has the building paid for itself yet? Fausset: We believe there are cost savings. I can get that for you. If we were to hire state employees, it would take two full time and two part time so I think this is a savings. 12/8/2015 1:38:55 PM Fausset: Facility operations – capitol complex – 1 million sq. ft. – custodial – exception request on page 58 for safety needs which is priority number 4 to meet OSHA requirements. Pesticide safety, respirators, fall safety training. Some will be done in house. 22000+ cost includes dues for registration and equipment 12/8/2015 1:40:40 PM Stubson: OSHA safety training Fausset: 3 separate units in different divisions, director office, trades group, facilities (which is this request) 12/8/2015 1:41:39 PM Fausset: - group provides technical services in capitol complex – We have two UPS systems, one in Supreme Court, one in lab- Systems requires licensed personnel to maintain. We contract with authorized vendor. Discovered issue when Supreme Court had outage last summer. 35000 from GF requested. Burkhart: Can you train an AandI person to do this work? Cost savings? Fausset: We could explore that. I do not know cost of training and certification. Issue is training one person then if they take another job, back in the boat again. 12/8/2015 1:44:15 PM Fausset: Priority 3 – Assets works – computerized data base-assess quality and condition of state buildings – in process of doing that-helps with identifying priorities, helps with cost efficiency questions. Software maintenance fee. 136,000 GF, 900 series Nicholas: 136,000 per biennium and ongoing cost? Fausset: Correct. Partnering with school facilities dept. allowed us to share data, move to using a common system Nicholas: cost savings? Fausset: have had conversations with school district. I do not know about cost savings. 12/8/2015 1:46:58 PM Fausset - Page 63 priority 4 – safety needs – ongoing request 12/8/2015 1:48:09 PM Fausset- page 55 – General services division – utilities – no request Burns- If capitol is shut down, shouldn’t that put dent in utility costs? Fausset- We will still be paying utility costs for capitol and Herschler during renovation. There is no meter for capitol building. It is part of the complex. We do not know if there will be a reduction or if utilities will go up. Harshman: burn rate this year on utilities, looks lower, how much left over Fausset: Project .5 M in our utility for the biennium Harshman: What happens to that? Fausset: It will revert. Harshman: It cannot be used elsewhere or B-11. Potential savings in utility costs Fausset: mild winter 12/8/2015 1:51:25 PM Ross: pg. 66, up Fausset: Includes our supplemental request 12/8/2015 1:51:49 PM Fausset: unit 3400 construction mg division, includes major maintenance, page 68. No exception request, Burns: On 3453, real property rental costs? Fausset: Leasing budget for state govt. on page 76 Burns: master list with properties Fausset: provided to SBC quarterly, lists location and costs Burns; please submit Richards: Document is on share point in pre-meeting documents 12/8/2015 1:53:50 PM Fausset: community colleges- no request Unit 3453 , no request 2 positions for project, no request Unit 3500 Stubson: funds for two positions come out of your budget, not capitol restoration? Fausset: They come out of capitol restoration 12/8/2015 1:55:58 PM Fausset: Page 79 Human resources division, page 81 operations unit – no request in either unit Agar: reduction to std. budget by govenor, reflected in table but no narrative. Fausset: 136375 for intern program spoken about this morning 12/8/2015 1:57:22 PM Fausset: page 84 and 85 – reduction of internal services funds – human resources division previously provided training to state agencies. Funds were used to pay vendors and contractors. We have moved to electronic learning so funds no longer needed. Reduction from internal funds. Harshman: Is the unit shutting down> Fausset: yes, no money left in it. Harshman: no transfers, no savings Fausset: correct. We will bill agencies for doing training. 12/8/2015 1:59:22 PM Fausset: Distance training unit. No required travel. No request 12/8/2015 2:00:04 PM Fausset: unit 3509 market policy update – Unit 3800 on page 90 – reduction of 1 person Unit 3801 page 91 – no changes recommended Page 92 – Priority 8 –equipment replacement – internal funds for computers and monitors Page 93- 400 series – system to track enrollments and billing- working with ETS who suggested we include $ in budget, ongoing costs for maintenance of that system. Priority 11 – elimination of position = reduction of internal funds -$ - coordinated state employees wellness program 12/8/2015 2:03:11 PM Nicholas: Unit 3801 – ETS driven changes- their program, their figures? Fausset: System being built with a contractor, maintenance will be provided by ETS Nicholas: Why ongoing basis? Fausset: support of system going forward Nicholas: written proposal from ETS? How far along? Fausset: I will get back to you Burns: With increase from ETS, is this unique to AandI or throughout state govt.? Fausset: Unique, Internal funds applicable to state employees. Hibbard: ETS requested funds, spread throughout agencies, has detail on it Connolly: I would like to see that. It has been in every agency so far. Not much explanation Hibbard: 1.9 million ask, 1.8 million savings budget. Used savings by agency unit to make up ETS ask, gave explanation, protecting GF, used telecommunications savings to make up that cost. Connolly: We are being asked via agency hearings but it is a ask from ETS Hibbard: ETS responsible for support. We used savings first to offset agency requests for developmental costs. Amount is now a revenue source for ETS. It will all be explained by Director Waters. Connolly: What if we said no to Fausset and yes to DOH, as an example? Hibbard: cuts discussed, formula driven fixed cost from ETS, would expect ETS spending authority to be reduced somewhat in common. 12/8/2015 2:09:44 PM Page 98 unit 3817 employee life insurance unit – no request Page 100 – employee health group insurance – AandI contracted for actuarial study-spending authority of 77m+, to offset the claims expected in biennium, 8% aggregate increase in health care costs, exception request of 75000+ 12/8/2015 2:11:56 PM Burkhart: deductibles and co pays for state employees Fausset: number of choices, 350, 750, 1500, 3000 deductible Burkhart: co pay in percentages? Fausset: I think 80 to 85%. Burns: what is the incentive for higher deductible? Fausset: Less money out of pocket for premiums, Burns: % of employees in each category Fausset: will get it to you Burns: spreadsheet of copay, deductible, Fausset: 62% in 350, 26.6 % on 750, 7.7% on 1500, 7.7% on 3000 Perkins: Will our state plan be considered a Cadillac plan under ACA? Fausset: State of Wyoming could face excise tax. Comparison with 12 states, puts our employees in the middle. If cost of health insurance exceeds premium threshold, 10,200 individual, 27500 for families. We are monitoring. Working with Siegal group on study. Estimate could be as high as 7 million, executive branch 4 m for UW, 1.5 M for CC, 1000 for NC school district. Perkins: two years to see how it settles out 12/8/2015 2:19:29 PM Fausset: unit 3819 dental insurance – 1+M spending authority for anticipated claims Unit 3830 voluntary benefits – vision, short term disability, long term disability, long term care. Costs borne by employee, 1.5M+ request for increase Flexible benefit program – employees set aside pretax money for medical expenses – no request Unit 4501 on page 112 – economic analysis division. Page 113 moved 1 position from economic analysis to budget division, does multimedia work on website- no request Connolly = Two divisions doing comparable work. (Economic analysis division and workforce services) Difference is CREG. Fausset: Some duplication of effort but focus is different. Economic analysis – REME; CREG Connolly: Other places economists are employed in state? Fausset: yes. 12/8/2015 2:24:33 PM Fausset: page 114 – unique to economic analysis- does economic, social and regulatory analysis for state agencies. Some revenue forecasting – no request. Page 117 – State library division – adjustment on page 119 of positions, 2 moved to accounting – no request Burns- Consideration of moving state library to state parks and cultural resources. Fausset: Reasons why library was put in Aand I – part of information focus of agency. Provide services to counties, agencies and legislature. Nature of library has changed with digital areas. Repository of records. My opinion is the library is functioning well within the division of AandI Agar: Final agency where there is a reduction without a narrative. 12/8/2015 2:29:20 PM Ross: What is the reduction? Fausset: State library has data base no longer needed. Greear: dropped two employees, page 116, Horsley: Historical info. No change in dollars or funding source, having budget document reflect what is in accounting system. Greear: Has there been a reduction of two employees? There is an increase in budget. Horsley: yes reduction but in this biennium, we had two legislative approved increases, probably health insurance. Greear: lose two employees but still goes up Horsley: could be level of coverage requested by employees Burns: characterization comment Ross 12/8/2015 2:32:28 PM Moniz: Training requests as exception requests. Why are they not part of std. budget? Fausset: We did not have a safety program before this. It is new in the last two years? Moniz: Will it be in the std. budget in the next two years? Fausset: Yes it will. Ross: Close of meeting Fausset: Two presentations – supported and independent Break. 12/8/2015 2:34:26 PM Close of meeting.