Friday December 11, 2015 JAC Index 121115am.1 Chairman of the Day: Co-Chairman Harshman Agenda for the day: AM - Agency 057 Community College Commission Jim Rose, Executive Director, Matt Petry, Deputy/Chief Financial Officer, PM – Agency 007 – Military Department Major General K. Luke Reiner, Adjutant General Douglas C. Shope, Deputy Director 12/11/2015 8:03:34 AM Harshman opened the meeting Richards: Roll Call. Stubson excused, Hastert excused, Quorum established Harshman: Welcome to the Community College Commission. Dr. Rose, give us a state of the state. Rose: Director of Commission with Matt Petry, CFO. Candid budget discussion with Governor and Executive Branch. Governor has reflected picture of economics in state and sensitive to the needs of the Commission. Budget document submitted in August. We do not have a lot of exception requests. Comfortable with Governor’s recommendations. 12/11/2015 8:09:05 AM Rose: Summary on page 4, narrative information on statutory authority, strategic plan, budget guidance. 2nd line of page 4 = 16.5M Governor’s recommendation is for about 12M. We feel that is a fair assessment in terms of where we are in current enrollment and the state’s revenue projections. We will be receiving less $ than we are now by 2.3M. We withdrew request under adult education. We are down by 1 position. Total exception request and governor’s recommendation are in sync. 12/11/2015 8:12:52 AM Harshman: Talk about bill from this summer. Looking for more stability from both sides. 248M in state aid is what % of your total budget? Rose: About 95% of commission budget is passed through to the colleges. Includes mandated costs like insurance. Harshman: Total for CC in the entire state. What % is state aid? Petry: Of the operating expenses it is 60%, 20% local funding, 20% tuition and fees. The 60% does not include health insurance or increased contributions for retirement. Harshman: We limited the number of employees on health insurance. Impact? Petry: We have a block grant for health insurance with defined number of employees. Fluctuations 12/11/2015 8:15:49 AM Rose: pg. 13- Administrative budget – Governor reduction by about 6000. All programs are in operation. There are no new additions. Reversion is in a negative exception request later on. Burkhart: Page7 – Departmental priorities. Why is veteran’s tuition waiver towards the bottom of the list? Rose: We were asked to show all of the programs offered and in terms of current obligations, place in priority order. The veteran’s tuition waiver program revenues are going toward the UW. It is funding more graduate work for veterans. We may want to revise the program and the beneficiaries. One piece in escalation of costs is IT. 12/11/2015 8:20:43 AM Harshman: page 15 Rose: Priority 3 – Information Technology (IT) summarized on page 19. $75,000+ Nicholas: Personal experience with responsiveness and timeliness of ETS. Rose: I am blessed to have the best CIO in the state. He has been able to take on projects that we could do internally better than by asking ETS to do them. WE have created databases, electronic reporting systems. Challenge coming is the state longitudinal data system (SLDS). We need data to know how we are doing. We have not had the capacity needed. Lack of progress. We are working on some portions of the system to create the capacity we need to know if our programs are successful. We have serious issues with ETS but we have the capacity to do the work ourselves so we handle those things internally. Connolly: SLDS – Who is responsible to get it up and running ? Rose: I am not sure. Governor has given us some resources to connect with K-12 , workforce partners and UW. That is a piece of the SLDS. Initially it was the responsibility of ETS. Moniz: How would you see that system developing? Rose: In 2008, Agreement with Federal Education Dept. that we must have an SLDS or be developing one. Need to protect personal identifying information but also need the data. Combination of data. System has firewalls. We can’t move ahead without some capacity to see how students’ courses translate to preparation for college. 12/11/2015 8:30:37 AM Harshman: Rose: Wyoming Family Literacy – pg. 23. Program provides early childhood and adult education in combination. Requires parents and children to work together. Administered by the commission. Standard budget. Harshman: How many parents and kids are served? What is the trend? Rose: It fluctuates. It is a high cost per student. Head start students. New program in Rawlins. Community partnership. Harshman: Wonder about the trend. The numbers are in the narrative. Rose: 218 adults and 335 students during 2015 program. Growth trend but not enough to need additional funding. We have re-appropriated funds from some programs and apply them to other programs. Ross: $6000 per person. Rose: EVEN start program under federal government. It was housed in workforce services. We assumed it. We think it is valuable because of what it does. It is an effective program but it is not cheap. Greear: 100 series numbers? Employer health insurance benefits increase, drop in salary. Petry: Wyoming family literacy program, high school equivalency certificate program are managed by the same person. Most of that person’s time is spent on the literacy program. The person is charged to family literacy. Greear: Lost position is in high school program? Petry: NO Harshman: If there is a swap, where will we see the drop? Greear: Tremendous increase in insurance. Petry: One employee has family coverage. One may have coverage through their spouse. Burns: One person administering grants out to different organization like VISTA, Head Start,etc. Rose: Correct. Community state partnership. There is not one universal model. Burns: Same program in the counties? Rose: Yes. Structure was established with federal program, performance driven metrics, financial accounting makes it a uniform program. How community implements it varies. That is reason some have grown and others have not. Burns: Auditing aspect? Ex: Foster parents Rose: Financial audit is required. The one employee and other staff are responsible for maintaining the program Burns: Compliance is by your office? Rose: yes, evaluation and on-site visitation. Burns: Employee travels? Why is out-of-state travel more than in-state? Rose: Employee is connected with programs through the country. Training for center directors for early childhood development and adult education. Nicholas: How much money are we spending on these individuals in a generic manner across the state? Different programs by different agencies. Rose: Example: Early childhood domain. Coordination of effort could save this program $ and the state $. Head start, family services, DOH. Education components, social service components, etc. Nicholas: how did it land in your lap? Rose: In a weak moment, I told the Director of Workforce Services we would take it. The federal government pulled out of this program. There are no federal dollars. Nicholas: Line 6 is GF? Rose: yes Connolly: Narrative – directed towards parents and non- English speaking parents? If they have kids, then they come in? Rose: Original intent. Challenge of program. Socio-economic test. Some centers to provide transportation. It is a dual focus with no more or less important component. Greear: open position in administration. Cost and what the position is? Rose: Administrative support Greear: how critical is the position and background Petry: lowest classified position, frozen. We asked for an exception to the freeze for that position and promoted an internal staff member. 35,000 per year without benefits. With benefits, probably 45,000 Greear: 49% of salary costs. Rose: We returned over 800,000 to the FY 16 budget. Burkhart: What program was that? Rose: The teacher shortage loan program. The commission relinquished a position earlier when we were not longer by capital construction. Our staff is reduced by 2 or 3 from the historical high. 16.5M reduced to 12.8 M 12/11/2015 8:55:22 AM Stubson: Costs of community colleges. New accreditation issues. No demonstrable impact on students, clear impact on costs. Can we set up state accrediting? Rose: I do not agree with the Higher Education Commission. Ex: My son is a pediatrician. He could not teach introductory biology under there criteria. US Education Department has abdicated their responsibility for accreditation to regional. Must have accreditation for Title 4 dollars. School must have it for students to get Pell money. There are 19 states at their mercy. Minnesota is anticipating a lawsuit. Single biggest challenge is concurrent enrollment with high school students. Wyoming adjunct professor loan program to enable high school teachers to acquire needed credential and degrees to be able to teach concurrent course. Pinedale faculty teaching advanced placement classes for decades but is not accredited according to the standards. Going solo is not an option because we risk losing Title 4 credential for federal funding. Stubson: It is a federal issue in some respects. It is vexing that we guard local control for K-12 but have lost control for our community colleges. 12/11/2015 9:01:36 AM Harshman: Nicholas: Synopsis on unit 201 and subcommittee meeting so we know what transpired. Harshman: Give us a quick synopsis and how it affects this budget. Rose: Funding for the colleges has never been universally understood. Management council charge was to look at funding model. We have had an allocation model, not a funding model. We do not have a means to determine appropriate amount of funding, other than coming to you under statutory provision of accepting for funding based on enrollment. Colleges are in difficult position for planning for classes and hiring faculty. Our primary concern is stability. Should on-line be funded at the same rate as face to face? Variable costs distributed on levels of instruction. Ex: Nursing class has more requirements and higher paid faculty. Rules have 3 level of instruction. Calculated at level 1, 1.5 and 2. That is not scientific approximation. Bill of task force was laid back. Achievement of stability beyond one year. Harshman: Biggie is where you pick the base year. 150 to 500 percent more than comparable states so we are very generous. How do you ask? It is a weighted ask. It has to be an FTE count and you decide how to split the pie. Dual, concurrent, online, enrichment, I have backed away from. It is the base year. We cannot ask on a weighted ask. That is problematic. We have no control on that. Greear: I have circulated to the committee a revised bill. 12.2M is the number I came up with, x$ more than the Governor’s recommendation. For the base year, I used a plank. We are seeking a budget for 4 years funding, to provide steady funding. Weight variances among classes won’t make much difference. We need to get that number. If the governor recommends 12M, that is the base year number and we have the numbers. That provides the weighted avg. If we have provided more instruction, then we provide more funding. We need to decide the base amount. Harshman: We have learned a lot about the system and the dollars. If we change this, there is risk for everyone. Maybe in uncertain times, we continue what we are doing. That is what we decided for K-12. Nicholas: What is the total number of FTE’s, population basis around it, FTE vs. weighted count, more explanation and your reason. Rose: 2004-2005 is our base year. We have 17000 more enrollments. We have reached a peak and come down. We are fearful of having a methodology based on input instead of output. Count enrollment, divide by 12, that is FTE. Federal is 15, state statute is 12 so out of sync with reports. We count students in the classroom. We would like to include outcomes. EX: LCCC had a decline in FTE but highest number of graduates with certificates and degrees in their history. Who is going into the workforce? Who is going on to University? Complete college Wyoming, university and Governor are involved in this. We are concerned about student success not just the number in the door. Harshman: Non-credit courses update? Rose: We have agreed that Commission by statute must review all programs, credit and non-credit. We do not think it is the role of the commission Harshman: Classes students must take Rose: Remedial classes. Co-requisite classes. Guided pathways. Important to reduce the time in college . 12/11/2015 9:18:10 AM Harshman: Transfer credits Rose: It is going well. Programs that 7 CC colleges have articulated with UW. Perkins: Listing of matched up program. Rose: I can provide. UW has spreadsheet of matrix. Perkins: Looking for what is not on that list. Rose: Color coding is for stages and completion. 12/11/2015 9:21:10 AM Harshman: page 28 – Recalibration request Rose: Mentioned earlier, budget reduction. Harshman: page 30 Health insurance Rose: defer to Matt Petry: Footnote that limits number of individuals in colleges that can be enrolled in health insurance rolls. It has decreased slightly. Footnote requires us to come in with an exception request if we wanted to insure more individuals. We have worked with AG office and payroll staff to determine number of employees that will become eligible under the ACA. Harshman: 1800 policies. What is the number actually used? Petry: I will get it Nicholas: Purpose of footnote and how it evolved. Petry: Health insurance is reimbursed by the state to the colleges for the employer share. Footnote placed a threshold. Beyond that requires an exception request. Governor recommendation for continuation of the footnote to keep the threshold in place. Harshman: Perkins: 2015-16 vs 2017-2018 is 24% increase in costs. Is there an increase in participants or is it changes? Petry: 1. Increases in costs of premiums 2.Changes in the policy mix. Footnote establishing the threshold only restricts the number of policies, not the type of policies. With a change in the policy mix, you can see an increase in the costs. We can provide the numbers in the policy mix Perkins: ACA requirement of coverage or taxation penalty? Petry: These numbers do not include policies added because of the ACA. Hibbard: We did not make a change to the budget in 2015-16. We put in a reserve. We did in 2017*18. There are looking at a 24% increase over 4 years so it is a 6% increase yearly. Greear: Each individual college decides which employees get state funded insurance and the college picks up the insurance for the other employees, so strong incentive for family policies to be covered by state Petry: Driven by source of funding for the payroll of employee. 100% funded by federal fund, local revenue, foundation funds are not eligible for state funded insurance. Greear: Employee funding Petry: Vast majority of employees are at least partially paid by state. Amount of pool is fixed amount, hire more or enroll more in higher cost plans must be subsidized by the colleges. Greear: If I was president of college, I would say family coverage employees will be covered by the state. I will pay the single coverage out of my budget. Petry: I don’t believe that is the case. Audit position expanded to audit health insurance as well as enrollments. 12/11/2015 9:35:58 AM Rose: Library funding – Funding set aside several years ago. Licensure expenditures. It is a consortium. All 7 CC librarians work together to make requests for databases, etc. Harshman: Contingency reserve Rose: Coal lease bonus payments. Ours is a minor part of that fund, which is rapidly going to zero. When the funds are gone, we no longer receive them. Used to augment major maintenance. Harshman: Your projections? Petry: Relied on LSO staff, may be able to count on 1.6 M for x year but not 17-18. 12/11/2015 9:39:16 AM Rose: Exception budget request for at- will employee has been withdrawn. Adult education director. We are reallocating personnel. Burns: Adult education is closely tied to family literacy program. Where does it take place? Rose: Largely at Community Colleges but not solely. Adult education is now under Workforce Law federally. Workforce in Innovation Act. Burns: How many people are taught by this program? Rose: page 5 – 1900 participants in 2015 Harshman: One components is drop-outs needed certification Rose: Adult students receiving high school certification was the GED or high school equivalency. It is now for advancement into the military or the workforce. Burns: Federal law signed in July, effective next July. Will we get federal funds? Rose: We are doubtful there will be more funding. Burns: 12/11/2015 9:46:03 AM Rose: Wyoming advancement through nursing. Required by state law to provide faculty. Student loan program for students interested in nursing careers. May repay loans by virtue of service. No exception request. We administer programs through private company. 12/11/2015 9:47:17 AM Harshman: Rose: Veteran’s tuition waiver program. Challenge to determine the cost. The demographic has changed to individuals seeking graduate degrees. Harshman: Combat veterans. What about state citizenship? Rose: There are requirements. It has some advantages over the GI bill. Connolly: Any requirements for students to remain in the state? Burkhart: Do the community colleges use all of this money? Rose: We have never run short. Statute provisions say that if the funds run short, you reduce the amount of tuition reimbursement to the student. A larger portion of those students are going to the University. Page 11 has information about the program 12/11/2015 9:51:41 AM Burns: Surviving spouses and orphans – are they from someone killed in combat? Rose: A combat service medal is the determinant. The spouses and children are eligible. Burns: Surviving spouses Rose: A combat veteran spouse is eligible. Law has expanded to include spouses and dependents, whether they were casualties or survived. Burns: Is language vague? Rose: Language is if the veteran no longer survives, the family is still eligible. 12/11/2015 9:54:42 AM Rose: Specified fields, economic determinant. By providing service, student receives repayment. We reverted money due to the lack of participation. Stubson: Are you on track to revert a substantial amount his year? Rose: 890,000 12/11/2015 9:56:29 AM Rose: Harshman: appreciate work. Question about grants, matches? Petry: We must wait until July 1. Harshman: 5M, priority 7 Richards: yes 5 M, will be 15 M in 16 if projections are reached Harshman: Petry: Harshman: Rundown on all the grants and matching. Rose: This is totally administered by the Treasurer. We can get you the information 12/11/2015 9:59:56 AM Public Television: Terry Dugas, General Manager Dugas: you have the narrative and the budget request. Harshman: Priority on page 51 and 57 Dugas: Exception request. Technology is old. Goal is to migrate to IP system. We submitted an exception request for IP migration. After discussion with ETS and CIO of x college, I am not sure we are at place to progress so I have removed the request. You will see it in the future. Harshman: Priority 2 – matching funds Dugas: Earnings on Wyoming public endowment. Petry: This is to address efficiency of money to the agency. Legislature creating endowment was unclear. Law was changed during the last session to make it permanent. At the end of each biennium, we had to submit a B-ll to the Treasurer’s office to transfer the earnings. We are looking for ongoing authority for transfer. Ross: How much is in the endowment? Petry: 3M Harshman: That will be a part of the match information requested. Richards: Prepared as of Sept; CW. WW, Northern W each have about 1.5M to be matched. LCCC and Eastern roughly 900,000 NW in Powell has .5M to be matched. Casper has 1M available for matching Connolly: What is the minimum amount to get a match? Richards: For colleges, it is 10,000. It works on a quarterly basis. Harshman: it includes the 5M? Richards: yes Burkhart: Is there a time limit to have the match? Richards: I believe there is a 5 year conversion date but in footnote not referenced so I think they have unlimited time on this traunch. Burns: Can colleges split match, if they have reached theirs? Example given. Richards: Not related to his appropriation. The most recent time was for the libraries. Greear: Growth of 326,000 in the budget. What is it from and how does it happen? Petry: Similar to health insurance. Reimbursement for increased retirement contributions. When we reimburse, we ratchet that down to match the funding given to the state for operations, which is roughly 60%. We pay 60% of the amount invoiced. WPT does not have local resources so they are treated like a state agency. Budget division said to segregate those expenses. Greear: Petry: It clarifies the expenditure. If funds are not spent, they revert. 12/11/2015 10:11:45 AM Break. 12/11/2015 10:28:57 AM 007 Military Department Major General Luke Reiner. Slide 2 , Deployment Summary, Army National Guard, Air Guard Page 3, update, Afton armory, WyANG airlift wind headquarters, restructure of army guard in Torrington, Douglas and Casper, state hiring freeze, federal full time manning will mean reduction of 17, forest service C-130 to be housed in states with Cheyenne and Greybull interested, worldwide threat. Larry Barttelbort, WY Veterans Commission Director, Doug Hensala, American Legion State Adjutant, Dwight Null, American Legion State Service Officer. Oregon Trail State Veterans Cemetery Road and bridge in Evansville update. Doug Shope, Deputy: page 16, reduction of $472,500 in standard budget for Cheyenne Airport Board, given to A&I. Priority 1, Afton Army Guard of 1 full time positon and support costs for armory. Support costs approved by Governor. Priority 8, Trade of 2 construction managers for one engineer manager. Approval by governor Priority 10, approval by Governor Priority 14, computers and software upgrades. Approval by Governor from LSRA Page 23, Education assistance, most important benefit to service member. Approval by Governor Used by younger airman 1000+ individuals have utilized this year for tuition assistance for active duty. Page 25, life insurance for members, $250,000 coverage reimbursed. Received every other year. Page 27, first responder retirement program, can be reduced by $40,000. Exception request for software upgrade for one computer, denial by governor. Page 31, air national guard. Standard budget approval. Exception for 4 additional security force members, approval by governor Reiner: 4 needed security positions. Air Force is requesting more coverage at 4 key locations on the Air Guard facility. Shope: Page 36, Star Base Program, 5th grade children in Cheyenne. Governor approval Reiner: 20+ years Star Base Program, DOD program, federal government has opted not to fund other state locations. Shope: page 39, billeting fund, self-funded program at Guernsey. Approval by governor of standard Exception to move one temporary from one budget to another, and 2 existing and convert to permanent part time. Page 40, exception of ETS changes, approval by Governor Page 41, billeting software, approval by Governor Page 47, army national guard. Approval of standard budget by governor 1. 50% federal funds for Afton armory. 2. Billeting temporary, convert 12 positions to part time 3. Page 49, move 2 construction managers out, engineering moved out. 4. Page 50, anti-terrorism coordinator. Fund as contract. Denial of request, use B-11 process 5. Page 51, emergency management. Approved by governor. Challenge Program, voluntary attendance, approved for 1 year as sunsetted. Reiner: attendance and academic trends since FY05-06 and FY15-16 for Challenge Program. 60 students, 4 times a year. Shope, page 59, deputy youth supervisor position, governor denied. Page 65, veterans retiree council Exception request for telecommunications support, approval by governor Exception request for software support, governor approval from LSRA Page 68, veterans education program, governor approval for standard Exception request for software, approval by Governor Page 71, veterans program, governor approval for standard Page 72, exception support in 4 counties in southwest WY, governor approval from LSRA and general fund Burns: Increasing VA claims since 2012. Barttelbort: Able to track claims for individual veteran. Program for homeless veterans. Shope: page 73, service organization contracts for local VA for space, employees to assist with claim processing. Approval by governor from general fund. Page 74, computers and software, approved by governor from LSRA Page 78, Veterans Burial Teams Reimburse incidental s in conjunction with burials. Approval by governor of standard budget. Minimum of 3 person teams Page 80, Veterans museum at Natrona County airport. Approval of standard budget by governor. Exception request of software and computer updates, approval by Governor from LSRA. Page 85, Oregon Trail State Veterans Cemetery. Exception of telecommunications, approval by governor from general funds. Page 86, software, denial of governor Page 90, Training and non-emergent missions. Governor approval of standard budget Page 94, Wyoming Civil Air Patrol. Standard budget approved by Governor. Adjourned until Monday, 9:00 a.m.