JAC Agency Hearings December 12, 2016 JAC Index Agenda pm1 101, 120 -142 Supreme Court/Judicial Branch 002 – Secretary of State 003 – State Auditor’s Office 004 – State Treasurer’s Office 015 – Attorney General 12/12/2016 1:03:42 PM Chief Justice Burke: Intro’d Supreme Court; court admin, etc. and CFO. Response for letter from Speaker Brown. Reduce budget topic. Cuts to general fund budget. $376K cut. Re-organized courts, health insurance benefits, all courts are included within the budget being discussed. 327 employees’ w/i courts. Workload studies done for employee vs workload. Courtroom technology. Simple technology—due process concerns, being able to hear testimony, a/v equipment, telephones, Wi-Fi access, etc. Issues with all, how will it be paid for? Using band aid approach. JSA account. Judicial salaries –no raises in the past. Concern about appropriate salary in getting reliable, qualified hires, etc. Circuit judges salaries. More responsibilities no commiserate pay. Ross: Asked for clarification for JSA account. Used by SC for operating costs. Not unified judiciary. Updating technology vs travelling costs. 12/12/2016 1:24:35 PM Racines: CFO SC. Budget overview. 24 agencies included. 23 district courts. Independent of each other. Hndout 101-026. Payroll 90%. Reduction proposal of over $1 Mil in SC; Approx $800K reduction in district courts. Sustainable reductions. Stubson: Workload comparisons/study. Case load reducing over the past year. Ross: Hotspots throughout the state? Racines: Variations across the state, some up and some down. Stubson: Updated workload study requested. Racines: Info on website. Proposal, page SC 2-summary of SC agency. 7 divisions listed. Appropriation as of today. Column 3 proposed reductions. Pg 3 and 4 narratives. $58 Mil appropriation, $1.1 Mil in reductions. Ross: SC budget heavy in salaries. Quantify delivery of court decisions vs $1.1Mil in reductions effect. Burke: No, do not feel it will short change the public. Cuts coming from insurance, reduced positions, transcript fees and interpreters. Built in flexibility throughout district courts. Burns: Some languages more expensive than others? Yes. Cut-half way through biennium, really slashing in the 2nd year? Racines: No longer need some reductions as they are in place. Burns: Bdgt book vs handout--$9.7 Mil on technology, yet hdout has big difference. Racines: Explained difference. Burns: still having technology problems. Racines: yes, automating the courts more expensive. Burns: Still in transition to newer tech? Racines:Julie Gowen Goyen: CIO, large projects coming on. Maintenance and newer tech on-going. Burns: transition complete or not? Go Goyen: coming up in the next 3-5 years. Beginning on some projects. Greer: Funds aren’t adequate for tech? Racines: bigger project than anticipated. Greer: Not enough money to complete projects. Ross: Bill in the works to up the filing fee. Racines: Looked at every IT $, scrubbed and scrutinized budget. Greer: Court clerks concerns about increasing fees. Racines: Do not see as a competition. Working to bring all courts to same system. Greer: Sees it as a competition and not successful yet. Sharpe: Legis passed a bill integrated statewide recording system. SC, district and municipal courts. Statewide automation goal. 10 major projects. E-filing biggest hurdle. Assessed all courtrooms in state about hearing assist systems and computers for staff. Connelly: Dollar figure increasing JSA. Health insurance benefits reductions. Racines: currently $1.4 Mil/year for JSA fees. Expect a little less than double. Insurance rates fluctuated. Burns: local ISP’s. Racines: use local ISP’s. 12/12/2016 1:58:03 PM Goyen: Same ISP per courthouse? Redundant in case one goes down. Burns: redundancy in all courts? Goyen: Not yet. Raciness: Page SC 7 and 8. Page SC 10 law library. SC pg 11, reductions listed. Pg SC -12, circuit court system. Pg 13 narrative. Pg SC 14, reduction proposals. Pg SC 25 and 26. Proposed reductions to all branches. Greer: Funding for drug courts still in place? Racines: Yes. Greer: Cut didn’t affect drug court from Governor? Richards: $1Mil cut came from DOH. Wasserberger: Judges Salary—circuit courts? Racines: salary is $119K 12/12/2016 2:07:36 PM Skar: district courts, need upgraded technology, updated facilities, grateful for upgrades. Christensen: Natrona County, technology upgrades needed, public expectations, consistency throughout courtrooms, minimum standard requested. Statutes do not address technology—need updating. Increase judges jurisdiction through technology, streamlining jurisdiction throughout state. Salaries. Burns: New shelving? Christensen: Not for us. Burke: Closing comments. Judicial branch in WY has a lot of moving parts. Effective use of dollars for upgrades, technology, etc. Thanked the committee. BREAK 12/12/2016 2:54:25 PM Secretary of State Karen Wheeler, Deputy $43.4M revenue, should be on rise during upcoming biennium All revenue goes directly into general fund. 180,000 business filings with agency Verification if valid? No, must meet statutory requirements if filing is to be accepted. Page 3, reductions in unit 100 and unit 400. $697,500 reductions, excluding rate holiday State Auditor Cynthia Cloud, 5% cut on operating budget. New software has afforded better operating and contract rate negotiated. New reporting system. First upgrade, in addition to technology upgrade. Accomplished with budget cuts. Page 3, reductions of $22,000. Vacancy reports to LSO. Urbanek addressed a data element requested by LSO, but new reporting system changed data reporting. Now data warehouse. No documentation between agencies for information sharing. No vacancy. State Treasurer’s Office Mark Gordon, Treasurer and Pat Arp, Deputy More savings if reorganized office. New scope of investment opportunities with passage of Constitutional Amendment this fall. Arp: Some 200 series reductions and most in 900 series, including temporary workers. Banking fees will be held flat over next 13 years. Depository bank will yield .05%; gain $3,000-$5,000 from fees. Can save money by bringing some tasks internally. In conjunction with Capitol Finance Committee, working on what can be brought in to make more money. Harshman: fees, $75M. What type? Arp: Fees either paid directly to managers or managers deduct fees which are imbedded. General fund monies Manager fees in investment funds. Arp: Capitol Finance Committee, what could be brought in house from outside managers? What level of expertise is needed? Could save money if could use 50% savings to build out with program. Would hire up to 9 FTE. Additional funding needed – 200, 900, 400, 500 series. Fleming, Patrick: Annual fees paid to investment managers, getting active management, better invested in index. Staffing issue. Underperformance of funds has been on-going for over 10 years. Return and risk issues. Asset allocation problem. Cutter Associates manages various funds around the world, page 11 of handout. Brings level to compete. Gordon: Takes time. Asset allocation needs to be changed. Arp: Minimum that could be done. What needed on back end to support, including IT. Need minimum of 9 FTE. Fleming: senior investment officer in all various types of investments. Legal work to set up funds. Grear: how cash flow for startup? Fleming: Some savings, and redeem money from various managers. Gordon: various states’ investment boards all have various members and processes. Performance measure. 12/12/2016 4:34:26 PM Ross: procedure. A budget footnote versus a bill supporting this issue? Richards: Recommending 9 FTE and footnote on special revenue line for Treasurer’s Office. Up to $3M maximum can be used to support 9 FTE until end of biennium. Landen: who handles our money? Anyone in the state of WY? Gordon: Look to WY managers, but must be competitive and skilled. Nicholas: 10 year return. More level playing field for different types of investment for long term. How measure how much is saved? Harshman: Amendment A passage. Gordon: What funds would be good first trials: WY Wildlife and Natural Resource Trust, Cultural Resource Trust and WY Public Television Trust all okay to be invested in more asset classes than fixed income securities Gordon: internal SLIB policy on asset allocation. Fleming: $12B in fixed income. Core amount of money invested in the state agency pool. Could shorten duration of fund. Rising rate environment concern. Fleming: what triggers? Federal reserve important trigger. Shorter duration associated to risk. Help mitigate losses in rising rate environment. Gordon: January 5 key date, SLIB meeting. 12/12/2016 5:18:00 PM Break 12/12/2016 5:32:27 PM Attorney General’s office. AG intro’d staff. No supplemental request. Worker’s comp cases. Discussed vacancies – DCI crime lab. Knepper: Pg 11 . Attorney funding w/i state gov’t. DFS funding for legal services. Reductions on staff. Handling consumer scams problems. Moniz: Funds? Knepper: Attorneys legal work load. Funding from specific accounts limits attorney’s experience. Nicholas: Workers comp attorney’s funding. One full time attorney in Casper. Pg 11 sec 1 reference. Connelly: Charged to DFS for legal support, ($500K) Do they know? Knepper: Discussed where it shows up in DFS budget. Greear: Tribal family issues through DFS? Dawn: Reduction and charging DFS has not been formally requested through DFS. Micheals: Vacancies pointed out. 12/12/2016 6:05:04 PM Sommers: savings realized? Knepper: No layoffs, fed funds disappear if attorney’s let go. Nicholas: How much was saved through personnel changes? Knepper: Pg 12, realigned dollars. Savings to the general fund. Micheals: Medicaid fraud control. Greear: Pg 14, benefits question. Knepper: pg 24, reduction shows up in law office. Harshman: asked for a clearer, described position changes/moved be submitted. Knepper: LE investigations for state reduced by 4. Connelly: LE task force officers moved, who does the work? Knepper: LE returning to home LE units and being paid for by the home unit. Reduction to general fund. Reprogramming fed grant money for ICAC officer. Connelly: Identify the 4 officers who are returning to their home units by job. Knepper: DCI vacant position. Trace and gunshot residue testing eliminated; lab supplies reduced funding. Pg 37/38. Identify redundancy in offices and eliminate one. Pg 38, Sec 4 positions reduced. Pg 46, reductions for law enforcement academy. Reduce in using adjuncts. Eliminating paper, copies, etc instead put PDF’s on website for download. Greear: $1.90 passed on to student. Students responsible for printing if desired. Harris: Costs are passed in to students. Goes back to counties and cities. Pg 48—position moves and reduction to general fund. Pg 59, lost position. Medical review panel, pg 63/64. 12/12/2016 6:41:58 PM Connelly: salaries questioned. Med RVW panel issues work 1/3 of the time. Knepper: Med review work tapered off so oil and gas commission needs more help. Nicholas: How many review panels were called over the past year? Cost? Connelly: How much work do the oil and gas attorneys do? Chambers: Victim Services division. Followed Governor’s % reductions. Surcharge monies used for position. Harshman: Pg 72 discussion. Greear: Increase in surcharge, when? Chambers: Not sure when? 6/7 years ago get history for committee, include money differences. Domestic violence/sexual assault, pg 73 reductions. Child advocacy centers get federal money only, no general fund money used. No impact to victims services. Victim witness-% cut. Discussion on clarification on Child Advocacy Center funding. DVS admin discussion. Knepper: Gov Council on Development Disabilities. Explanation given. Talked federal grant funds and matching. 12/12/2016 7:10:05 PM Adjourned.