Tuesday, December 08, 2015 pm2 JAC Index 12/8/2015 2:47:34 PM 006A, Supported Boards Michelle LaMorie, A&I: 17 Boards All funded from licensing fees. 9 boards have exception reports Each board determines licensing fees. 1. Agency 12, Board of Architects & Landscapers. Exception requests for grant money; out-of-state travel. 2. Agency 17, Board of Radiologic Techs. Exception requests for ETS, administrative costs 3. Agency 30, Board of Chiropractic Examiners. Page 10. Exception requests for increased board members salary and related benefits and travel, in-state and out-of-state. 4. Agency 34, Board of Dental Examiners, page 10. Exception requests for increased board meetings and related salaries and benefits, staff and attorney travel in-state, meeting room rentals 5. Agency 36, Board of Midwifery, page 11. Exception requests for increased administrative costs, board travel, criminal background checks 6. Agency 64, Board of Hearing Aid Specialists, page 10. Exception request for increased administrative costs 7. Agency 68, Board of Psychologist Examiners, page 9. Exception request for increased administrative costs and ETS. 006B, Independent Boards 1. 018, Real Estate Commission, Nicole Novotny Smith. Page 10, exception requests include real estate payments, appraiser payments, AMC payments through Elavon; professional fees software; in-state and out-of-state travel for staff and board members; office supplies, advertising and utilities. $155,103 2. 019, Professional Teaching Standards Board, Andrea Bryant. Page 11, exception requests include converting a current AWEC position to a full time position; maintenance and storage fees; wireless access point support. $163,873 3. 033, Board of Cosmetology, Betty Abernathy. Page 8, exception requests include a full-time administrative position (denied by Governor); in-state travel for inspections; board in-state and out-of-state travel; credit card fee payment increase; data base contract increase; examiner training. $53,558 4. 038, Pari-Mutuel Commission, Charles Moore. Page 17, exception requests include Wyoming Breeders Award Fund increase; historic horse racing events distribution to cities and counties; spending authority increase for contract professional services; ETS, programmer hours. $7,928,331 5. 052, Board of Medicine, Kevin Bohnenblust. Page 12, exception request includes the replacement of computers. $6,850. 6. 059, Board of Pharmacy, Lisa Hunt. Page 13, exception request includes professional fees for GL Suite; increased board compensation. 7. 061, Wyoming Board of CPAs, Pam Ivey. Page 10, exception request includes licensing management system software support. $26,128. 8. 8. 084, Board of Professional Geologists, Geri Allen. Page 10, exception requests include GL Suite licensing; laptop and software replacement. $16,756 12/8/2015 4:19:40 PM 12/8/2015 4:36:44 PM ETS 077 Flint Waters Handout – 006 Provide a full copy of positions Second page – we are zero based so we have no standard or exception requests. We bring it all forward. Questions in previous years about how our budget compares to others. Unified network, united network for school foundation. One time cost for building.. When the governor asked us to look at additional costs, we looked at it across the board. When we submitted cuts, the GF are in the budget. We included some proposed cuts. 111+M budget instead of 113+M currently seeing. We are streamlining and cutting down on value added services. Last year Governor told us things would be tight so we held onto positions and quit filling. Nicholas: Waters: These are all open, all 14 positions. No layoffs in these positions Burkhart : Does salary amount include benefits? Waters: It is only salary amount. Nicholas: Over last biennium, are agencies requiring less of your services because of budget constraints? Waters: Budget constraints are a factor. Everything from IT comes as an exception request. We are pushing agencies to do things smarter, like building templates from google sites, which do not have to be paid for. They are part of our google contract. Nicholas: In terms of total cost, have you done a comparison of saving money, compared to prior the existence of your agency. Waters: We will be down 32 IT employees, down IT costs from hosting, .. We are running a more efficient agency. We have 2 administrative agencies for our entire agency. Our office costs are a third of what they were when agency was half our size. Before consolidation, directors had IT staff on site, now we send someone out. Perception of not supportive but receiving more support. More efficient in response. Dramatic savings and far greater savings. More than 1 M in reductions every single year. It is difficult to show reduction in wasted man hours. 12/8/2015 4:48:54 PM Moniz: Are there security issues with storage on cloud? Waters: Google cloud and Microsoft are both used. Level of security is far higher than the state ever had. I have no concerns about their certification level. Moniz: Who oversees it to make sure it is safe? Waters: Federal audits to achieve certification. In the past, state had to audit. National standards are also used. 12/8/2015 4:51:04 PM Connolly: Many agencies coming through with requests that say OCI approved. I am concerned about cost. Waters: Agencies specify requirements . My staff may not have the expertise. In those situations, they contract out for building. High end software engineers bring in 200,000 per year along the front range. Massive challenge to recruit that level of talent. The ones we have stay because they want to be in Wyoming. We can’t maintain software teams we would need. Example: Echostar moved development teams to Boulder. No regional mkt. for IT. Global competition Connolly: Wouldn’t it be beneficial to keep talented people in Wyoming, building in house? Do you share my concern that we are sending high value projects out of state? Waters: I do. We have to pay what the state can afford. We have started internships with the university. Tough to recruit. 12/8/2015 4:55:54 PM Waters: Internal service fund- We meet with other agencies, explain their expenditures, do a 12 month assessment, ask what they want. We give them the price. Directors will come in to JAC and say ETS says I have to have the amount of dollars. It does not work that way. It is not us telling them what to ask for. When you see those requests for assistance, specific tasks, they are based on numbers we gave them. 12/8/2015 4:57:56 PM Budget – page 4 summary with Governor’s recommendation, Total matches page 2 of briefing document I presented. Unit 1000= Core People, 2000=core services, 3000=internal service fund or charged/saved that we bill, 4000= direct billing Nicholas: Budget goes down by a significant amount but what you are requesting from us goes up. Why? Waters: Increase from capitol sq. project and employee raises, Nicholas: Losing employees but cost increase due to pay raises? Waters: Most from 5% pay raise. Change due to employee rule change -112 qualified, we only adjusted 11. Nicholas: increase? Waters: When we submitted budget, a lot was GF. In the session, a large portion was moved to SIFA funds, which were one time funding, would not show on the budget. Half of those were recurring dollars, like circuit costs. Harshman: part of 48 million is part of unified networking cost coming in? will see in in units coming in? Waters: yes 12/8/2015 5:03:26 PM Waters: page 10 Breakdown of individual agencies, pg 11 direct IT support to education, pg 12 -14, Pg. 15 is a summary, Fair number are pass through costs. Difficult to make cuts in areas I have no control over. Ross: pass throughs from where? Waters: example DOT. Pg 16 school foundation funds, infrastructure for the school. 14+M, costs for this same item in 13-14 was 14+M so we have increased capacity, in some cases 30 fold, rated #1 this week in the nation for an increase of about $900,000. Nicholas: Reasonable estimate for next biennium Waters: 200 kb per student per capacity, white house target is 100 kg. We will continue to increase capacity by increasing the circuits with no additional dollars. Goal for 2018 is 1 meg per student, initiative out of the white house. Our back bone will handle that 1 meg already. Probably a 1 M ask in next biennium. Nicholas: Ongoing, 17 M, budget for 15-16 Waters: bill out of 15.8M, I do not have numbers for std. budget, will get you the numbers. NC has a 10 Gig. Each school in Cheyenne and Casper are the last 2 to see the dramatic increase. Circuits ordered, will be in, in 90 days. Casper 100 Gig core, 10 Gig to high school. We buy leg circuits. Technology in each district is managed by schools. Your high school is not using all the capacity provided. Every student in Wyoming is calculated at the same number of 200 kg per student. We had to bring in new technology. We have great partners. Every district but 1 exceeds the 200 kg capacity. Harshman: What has been ordered? Waters: Circuits. Perkins: capacity not being used. Who pays for the circuits? Waters: We pay for the in circuits and the backhaul, which are big circuits, the firewall. Each district pays for their own in the building. Perkins: School district needs to finish the build out to take advantage of the band width. Waters: Correct. We monitor the schools and check their usage. Harshman: Schools have filters, can’t have all the content available. Bottom line is districts are moving forward, problem solving. Waters: We provide filters and service. We set the filters up so they can control what is filtered. We provide the firewall. We buy the firewall but they may want to manage it so we let them. Some like to run everything themselves. Perkins: You can monitor districts. Is it a per usage basis? Waters: We monitor the backhall circuit. We did this for the community colleges. 12/8/2015 5:19:22 PM Waters-walk through budget Nicholas: Increase of 3 employees, not part of reduction, where coming from? Waters: 3 positions that were B-11 as part of consolidation, split a position in half. Nicholas: B-11 and now will be in base budget Waters: Correct Ross: 3 AWACS, page 24, will they become full time Waters: we do not have a request to make them full time, will have responsibility to provide health care under the ACA. Nicholas: 100 series, adding 3 positions but 2 M increase in payroll Waters: page 25, 26, Perkins: page 25 – security devices, card readers is under property. Sounds like personal property Waters: That is how the object code is linked. They attach to the facility. Perkins: page 26, 4000 per year. Is that contract for emergency generator Waters: correct , generator at Emerson building Perkins: by contract? Waters: yes 12/8/2015 5:25:02 PM Waters: received money to upgrade equipment in Emerson. We expect to complete under budget and revert about 900,000. Connolly: When will you revert it? Waters: I believe it is part of AandI in construction management. It will probably be finished in 2 months. Up to AandI when it reverts. Hibbard: will revert to capitol renovation. Waters: page 27, communication costs for contracts of shipping of documents Page 28, governor’s recommended cut of dues, licenses, membership fees, employee training. We cut training and out of state travel by 60%. Meet minimum certification and contribute to the state’s ability to meet budget challenges. Nicholas: Looking at last year’s budget, fairly equivalent. Did you spend the 461,000 appropriated and did you spend it on those things? Spreadsheet of that? Same question for software and hardware. How do we know what you spent and where you spent it? Provide it or meet with me. Waters: I have that data in front of me. We calculated with the budget office. I believe the funds have already been B-ll’d back to the GF. 12/8/2015 5:31:00 PM Page 29 – in state travel – we have increased staff out in the field, providing desk side support. Funds already reverted and cut projected. Page 30 – Increase in field for vehicles, negotiate vehicle sharing with other agencies. Nicholas: Did you request GPS monitors? Waters: Not voluntary. I do not have a state vehicle Waters: office supply breakdown, lowest per employee, pg 31 – I do not buy airplane supplies. It is fuel for Emerson vehicle. Perkins: 10 dollars per gallon Waters: have increased the testing cycle in frequency and length. Nicholas: went up from 9000 to 15000 Perkins: Math explanation. Find a better supplier. Waters: pg 32 Maintenance – reduction Waters: hardware and software intangibles, estimate based on what we project we will be needed. Primary mission is to not lose people so cut other areas deep. Cut asset tracking matris, DMZ only, Microsoft 365. We try to wait to update the Microsoft. DMZ only , software defined networking, software can route the traffic, instead of using circuits. We scrapped the project. It is an RD project. Nicholas: I am looking at 15-16. Will those need to be updated and you will do the same type of analysis? Waters: Correct Nicholas: How would we analyze if you need it? Waters: Some agencies will want a 365 update every time there is a patch. That is not needed. It is a challenge to project what will happen with IT with 30 month out. This budget is probably 30 m less than what was submitted. 12/8/2015 5:41:00 PM Page 33 – controversial item, computer replacement cut, I sent a message to agency head’s on how to calculate when to replace. Over last 4 years, we have cut agency purchases of computers, Technology Replacement Requests. We recommend 4 y.r replacement cycle. Gave criteria to stretch to 5. Criteria like federal partners, security patches,. I do not recommend keeping computers into 6 year. Operating systems are being patched, etc. and become less efficient which is less efficient time on the computer. Not the place for the best savings. We are cutting our TRP budget by 80%, going to where we only replace equipment. My folks have expertise to operate on older equipment. We don’t run legacy local services. Our entire agency runs out of a browser, so I can keep items longer. Most agencies do not have that. We use google doc and I can manage them from a phone. Nicholas: Waters: correct 12/8/2015 5:45:38 PM Waters: Copier leasing. New section 253 which is DEQ requirement for inspection of our fuel tanks. External maintenance contracts being cut. Requesting another review from Governor’s office, license. Can monitor compliance using spreadsheets. Pg 36 professional fee breakdown. We under budgeted last time. 12/8/2015 5:49:47 PM Waters: pg. 50, 52, Greenhouse data co-location, increases of unified network for state are shown here. Nicholas: pg. 52 operations. Utility cost is a GF cost? Ongoing expense. Waters: yes and roughly at that amount Connolly: pg. 48 employee listing of overtime. All of your employees earn over 100,000 per year? Waters: No, that is for 2 years. 12/8/2015 5:52:10 PM Page 53, dues, licenses, governor recommendation of a cut. Nicholas: taking the cut, you have an increase in it? Waters: Added google application which we did not have last budget Waters: Travel, Nicholas: What is your avg. cost per employee for training? Waters: We set a fixed amount. Nicholas: How did you come up with the amount? Waters: Cost for sending out of state for higher end training and bringing people into the state. Calculated on burn rate. Total originally calculated at 2000 per employee 12/8/2015 5:55:04 PM Harshman: Utilities, explanation of request, cellular and shredding. Waters: Shredding service. Harshman: Do we pay for all your employee’s cell phones? Waters: No, it is based on the job. We are abandoning desk phones so folks do not have two phones. Shredding of HR documents, security documents. Burns: I have not seen other agencies allocating shredding dollars. Waters: due to zero based budgeting. Others may have it in their budget and can’t see it. Burns: Governor cuts are very specific. Is it based on a percentage? Waters: We proposed a 60% cut. 12/8/2015 5:58:30 PM Waters: page 55, 56. 60% reduction for out of state travel, assigned vehicles has slight increase, Burns, waters; Harshman: Monthly fees to use vehicles have gone up? Waters: Harshman: larger amount than last year Waters: have increased vehicles by 2 Page 57, 58, hardware and software intangibles are bigger services maintained across the agencies. Governor recommendation for reduction. Google cloud. Development of optimization on network traffic. Page 59 – TRP reduction, technology replacement program. Perkins: What is tsychotic server? Waters: single point sign in. reduction of optimization, fixed point wireless solution, agency may move and we are not told so we have to build fiber to it. Network solution Pg 61, cut stocking of cables, tools, testers, cable management. We would like to have those things but cut deeper due to request. $ cut. Software external maintenance contracts should be consistent with last year. Tutorial for google, google search link were cut. Nicholas: 2015-2016 what is difference in 15 and 16 that made you want to have additional $. Waters: network costs went up Nicholas: cutting? Waters: won’t have high end switches so less ability to utilize the 100 gig capacity. Some was speculative. 12/8/2015 6:06:31 PM Waters: page 76, staff salaries, governor recommendation of moving funding . money b-11’d to community colleges. Pg. 77 is dedicated IT staff in support of school foundation services. Corresponding cuts. Pg. 87 Perkins: Is this where you split the employee position? Waters: In the 1000 in the GF section Pg. 87 recovery cost portion of budget. Page 88 returning 4 permanent positions, 1 AWAC and 3 FT. 1.6 M for additional 10 personnel positions being cut. Next is pass through money. Perkins: page 90 – voice operations, non-enterprise voice operations. What is the comparison of “bones” in the two? Place to find efficiencies and cut costs? Waters: Phones billed from across the state. Trying to make more cost effective. Independent phone companies are expensive. Can start replacing with VOIT phones. Spending authority for when agencies move phones. 5M for phones. .5 M for moving them per year. We switched phones for agencies moving out of the capitol. 120 per phone to move them so changing to Voice phones. If agency calls and ask for 120 move, we push them to buy 140 VOIT phone and never move them again. Burns: Translation services. Navaho? Waters: I do not know why Navaho is one of the reported services. 12/8/2015 6:14:35 PM Waters: page 92 communication freight cost, google subscription. We are proposing a cut. Training cost calculation is per employee. Spending authority reduction for the agency. Same type reductions on the cost recovery section, listed in the same manner. Page 100 Co-location services, Cloud work with Microsoft. More economical. Moving from .22 per gig of storage to .8 We calculate based on what the agencies say they need but now they are facing cuts. We are working with the budget office Nicholas: What professionals are you utilizing? Predicting cloud use? Waters: Based on current use. Example: Health dept. project of eligibility. We do an open RFP, bid and interview on each initiative. Funding is paid to use then we pay the vendors. Public knowledge is one of the big ones. Greear: We will see budget reductions from the agencies? Waters: I do not know how previous year dollars will be reflected in this budget. Richards: Explanation, need help to translate which agencies these cuts can be taken from Hibbard: Jacque and I will work on this. Rep. Connolly had question about cut from agency or ETS, need a reconciliation. Waters and Hibbard discuss the process. Example of DOT. Waters: If you cut initiatives for people we are projecting projects for, I need to know. Hibbard: process of reconciling between agencies and ETS. Want proper internal controls so when Flint builds his budget, then agencies have obligation to pay for the services. Greear: DOT, B-11 process. We are not back-filling positions through B-11 process. Correct? Hibbard: That is right. 12/8/2015 6:25:19 PM Waters: page 111 Same formula across the board. We get spending authority. We bill agencies each month for what our employees cost. Depreciation reserve request in support of internal service fund. Page 130 is an error. Pg 131. Education side of network build-up. 13-14 expense was 14+M. We have gone to an increased capacity for only $900,000 increase in budget. It will help cities, counties, hospitals because infrastructure is built and they can buy circuits from our providers. Utility cost went up due to circuit capacity. Travel, office supplies, intangibles, maintenance . We provide network connection for every community college. Pg 141 external maintenance contract. We put in cloud configurable filter for every district. Staff. Page 145: starts the exception requests which break down by agencies. These are based on estimates they give us of what they think they want to do over the next biennium. Dept. of Revenue wanted full time staff. System on legislative mandate. We do not have a vested interest either way. AG is doing online training system. We built an open source system for that. Burns: Waters: source name. I bring this up because this is area where we do not tell the agency to put it in their budget. We tell them cost. LB cell phones – I did not recommend. It is a massive number of phones and disappears into the standard budget. Harshman: number of cell phones per agency, across the state Waters: I can do that. We pull a report from Verizon every 90 days and it will tell us which ones have not been used. In my agency, they are automatically cut off. (exceptions are hostage phones). Burns: page 79 and 80 wy T-20 longitudinal data has to do with the schools. Out of state travel is 10x in state travel Waters: Employees attending conference. That is being cut out. 2.5 staff will still do some training. I think a list of desk phones would be good also. Hibbard: We are reviewing all executive branch, on quarterly basis. We will cut off cell phones not being used. Net of savings on page? Nicholas: State auditor request. What did you base your recommendation on? Waters: discussion of system trying to do everything. Massive IT systems tend to fail. Enterprise Resource Planning –failure rate of 75%. We provided input to the auditors office to do modular solutions, provide data together. Time keeping lull. DOC needs boxes on the walls. I have high requirements for deployment so I have to track initiatives so my employees need to fill it out on the phone. I pay less than $ for my agency. We used to use what the state auditor has on the WOLFE system. It did not work for us. You compromise the expectations of everyone. State auditor need submitting of information to accounting and payroll information. I have concerns of another IRIS situation. We looked at the RPF language. There is disagreement in interpretation, human capital. My time system is cloud based. I had concerns of the original proposal not being modular and trying to do too much. Harshman: 3 agencies with the most employees and they have broken systems. Health? Waters: Happy with Chronos Harshman: DOT Waters: DOT has comprehensive system which works well. The proposed system by the auditors office would break the DOT system. Hibbard: Asset mgt. component dovetails into accounting system Harshman: Waters: Tech should not be the people management. Harshman: DOC, how is it? Waters: DOC uses Chronos as well. May need updating. Our staff manages it for them. 25000 for my agency for a year. Nicholas: If we ask you to cut another 5 million, will you give the same type of report you gave the Governor. Waters: I can only do cuts if I cut people. Ross: Thank you. Good job. Refreshing to see what you have done. 12/8/2015 6:46:35 PM End of meeting.