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December 15, 2008
Room 204, Capitol Building
Cheyenne, Wyoming
Senator John Schiffer, Chairman
Representative Roy Cohee, Vice Chairman
Senator John Hastert
Senator John Hines
Senator Tony Ross
Senator Kathryn Sessions
Representative Rosie Berger
Representative Lori Millin
Representative Pete Illoway
Representative Monte Olsen
Representative Mary Throne
Other Legislators Present
Representative Floyd Esquibel
Barbara Rogers, Program Evaluation Manager; Kelley Pelissier, Senior Program Evaluator; Lisa Jeremiah, Karla Smith, and Michael Swank, Program Evaluators
Please refer to Appendix 1 to review the Committee Sign-in Sheet for a list of other individuals who attended the meeting.
The Management Audit Committee met to consider a new report entitled Department of Fire Prevention and Electrical Safety and to discuss the report with officials from the Department. The Committee voted to release the report to the public and to request that Management Council refer certain statutory changes to a standing committee for interim study. The Committee received follow-up information on a report released in December 2006, A&I HRD Role in State Hiring. Officials from the Department of Administration and Information provided current information on these topics and responded to members’ questions. Committee members also received an update from Wyoming Retirement System officials on system performance, actions of the new director, and staffing needs.
All meeting materials and handouts provided to the Committee by the Legislative Service Office (LSO) and public officials are referenced in the Meeting Materials Index, attached to the minutes. These materials are on file at the LSO and are part of the official record of the meeting.
Chairman Schiffer called the meeting to order at 8:40 a.m. The following sections summarize the Committee proceedings by topic. Please refer to Appendix 2 to review the Committee Meeting Agenda.
Introduction
Chairman Schiffer introduced Gerry Hoppmann, the Program Evaluation Manager effective January 5, 2009, and welcomed him to the LSO staff.
Minutes
Senator Hines moved approval of the minutes of the September 12, 2008 meeting. Representative Millin seconded and the motion carried.
Department of Fire Prevention and Electrical Safety Report
Per W.S. 28-8-107(c), Chairman Schiffer resolved the Committee into Executive Session for consideration of a staff presentation on the draft report, Department of Fire Prevention and Electrical Safety. The Committee also discussed the report’s findings and recommendation with officials from the Department.
Chairman Schiffer opened the meeting. Senator Ross moved and Representative Berger seconded the motion to release Department of Fire Prevention and Electrical Safety at noon on Wednesday, December 17, 2008. The motion carried unanimously. Senator Hastert moved and Representative Berger seconded a motion to send a letter to Management Council requesting that Council assign an interim study by a standing committee regarding statutory changes recommended in the report. Senator Ross stated that a committee study and hearings may identify additional changes needed, and he urged that the charge to the standing committee not be too limiting. The motion carried.
A&I HRD Role in State Hiring Follow-up
Mike McVay, Director, Department of Administration and Information, introduced Dean Fausset, Administrator of the Human Resources Division. Mr. Fausset provided an update on progress the Division has made since the State Hiring report was released in 2006. Since then, he said, HRD has realigned existing positions and dedicated three positions to workforce recruitment, training, and systems analysis; it has also implemented paperless online applications and same or next day screening of applications. HRD developed a promotional brochure to assist agencies in recruiting applicants, sponsored the first State of Wyoming State Career Fair and plans to hold another in the spring of 2009, and developed a Hiring Supervisors Manual which is available online. It is tracking recruitment timeliness and effectiveness as well as other applicant statistics.
With the $500,000 legislative appropriation received in the 2008 Budget Session, HRD is piloting first-line supervisor training in cooperation with the Office of the Attorney General, the Department of Employment, and the community colleges. The training will be extended to all agencies in 2009. Mr. Fasset also noted the Legislature’s appropriation of $750,000 for an internship program and said the 2008 summer program had been successful, with five individuals accepting positions with the State as a result of their internships. He said HRD will devote more attention in 2009 to report recommendations concerning the need to audit agency hiring practices and build a reporting tool for agencies. Committee members commended Mr. Fasset and Mr. McVay for the progress they are making.
Update: Wyoming Retirement System
Thomas Williams, Director of the Wyoming Retirement System (WRS), provided an update on the system’s progress toward implementing the recommendations from the August 2007 report, Wyoming Retirement System: Public Employee Plan. He said WRS has made significant progress, but noted that due to recent declines in the nation’s economy, the system’s fiscal circumstances have also declined. However, he stressed that these are not realized losses, since WRS takes a long-term perspective on investing and it is under no pressure to liquidate investments to meet current obligations. He said WRS is considering modifications to the asset allocation and other adjustments, but overall is positioned nicely to take advantage of a recovery.
Mr. Williams said the Retirement Board has discussed establishing a goal of attaining full funding within a 15-year period. However, in his opinion, the most pressing issue is the system’s dearth of resources, both fiscal and administrative. Compared to similar plans in other states, he said Wyoming tends to have the lowest cost of administration, the fewest support staff, and a considerably smaller budget. He noted a pressing need for back-up and documentation as well as for a technical assessment of the computer system, which is near the end of its useful life.
Mr. Williams stated that Wyoming has established one of the lowest contribution rates in the region, yet offers one of the highest benefit formulas. This disparity has, in the past, been supported by high investment returns which can no longer be counted on. He forecast a need to increase the contribution rate paid by employers, employees, or some mix of the two. He added that cost-of-living adjustments (COLAs), while very important, need to be granted carefully because they tend to be cost-prohibitive if they are guaranteed. He said the Board intends to offer COLAs that are supportable and sustainable, and it is crafting a range of options for consideration.
Chairman Schiffer asked about staffing needs for WRS, an issue identified in the 2007 report. Mr. Williams responded that permanent staff at WRS are working considerable overtime, as are employees in AWEC, temporary, and part-time positions. He said there is at present no draft legislation requesting additional staffing, but the Joint Appropriations Committee recently suggested that WRS develop a request for positions and funding to be submitted to the Governor, who may in turn submit it to the JAC. He stated that if the Governor and the Legislature approve the number of staff he proposes, WRS would be about in the middle of similar-sized peer systems. He also mentioned the need for a new external audit function to assure that member organizations are regularly making the correct contribution amounts. He said he is determined to use technology and to reallocate work to improve the process flow.
Senator Ross asked if passage of the bill granting immunity protection to Board members has been beneficial. Mr. Williams responded that the personal assets of Board members are now less at risk, since the statutory change provides them some insulation from individual liability. Senator Ross asked how long the state should wait before increasing contribution rates. Mr. Williams assured members that the system is strong, and he suggested that the groundwork be laid over the next year through dialogue about the rates and possible COLAs. Chairman Schiffer assured Mr. Williams that Management Council has directed WRS to report to the Joint Appropriations Committee, and advised that WRS provide information and rationale on rate increases and COLAs to that committee. Mr. Williams concluded by stating that the system intends to focus on three issues sequentially: staffing, technology, and COLAs. Chairman Schiffer thanked Mr. Williams for the breadth and depth of the information he provided.
Committee Accomplishments
Ms. Rogers summarized the activities of the Committee during the 2007-08 biennium. She stated that the Committee met eight times, released five new reports, and considered eight follow-ups during that period. The Committee sponsored three successful bills which expanded the powers and duties of the State Employee Compensation Commission, created a Drug Court Steering Committee, and limited the personal liability of Retirement Board members. She also noted that the Legislature in 2008 Budget Session approved two items related to recommendations from the Wyoming Retirement System report: funding for a new position of chief investment officer for the system, and funding for an independent study of the system’s policies and underlying principles. She went on to state that it had been her honor to serve the Legislature for nearly 24 years, overseeing the release of 56 program evaluation reports, and she thanked the Committee for its diligence and support.
There being no further business, Chairman Schiffer thanked participants and adjourned the meeting at 3:50 p.m.
Respectfully submitted,
Senator John Schiffer, Chairman
Monday, December 15, 2008
Room 204, Capitol Building
Cheyenne, Wyoming
All meeting materials and handouts provided to the Committee by the Legislative Service Office (LSO), public officials, lobbyists, and the public are referenced in the Meeting Materials Index. The table below provides a summary of the materials provided to the Committee. These materials are on file at the LSO and are part of the official record of the meeting. Please contact the LSO at 307-777-7881 to review these documents.
Appendix |
Appendix Topic |
Appendix Description |
Appendix Provided By |
|
1 |
Attendance summary |
Lists meeting attendees other than legislators and staff |
Legislative Service Office |
|
2 |
Committee meeting agenda |
Provides a general outline of the topics the Committee planned to address at meeting |
Legislative Service Office |
|
3 |
Handouts related to the state’s hiring process |
“Are You the Next Piece of the Puzzle?” brochure; Hiring Supervisor’s Manual |
Human Resources Division, Department of Administration and Information |
Appendix 1
Wyoming Retirement System
Thomas Williams, Director
Harry Wales, Assistant Director
Department of Administration and Information
Mike McVay, Director
Dean Faussett, Administrator, Human Resources Division
Other attendees
Representative-elect Jim Byrd
Joan Barron, Casper Star Tribune
Appendix 2
AGENDA
Management Audit Committee
Monday, December 15, 2008
Room 302, Capitol Building, Cheyenne
8:30 a.m.
OPEN SESSION
8:30 a.m. Call to order
Approval of minutes from September 12, 2008 meeting
Introductions
(Times approximate)
EXECUTIVE SESSION [per W.S. 28-8-107(c)]
8:35 a.m. Staff presentation of draft report on Department of Fire Prevention and Electrical Safety
Committee questions and discussion
10:15 a.m. Break
EXECUTIVE SESSION [per W.S. 28-8-107(c)]
10:30 a.m. DFPES officials meet with Committee
Lanny Applegate, State Fire Marshal
Mike Carlson, Chief Deputy, Fire Prevention Division
Kevin Booker, Chief Electrical Inspector
Phil Oakes, Training Division Manager
Committee questions
Agency officials depart
Committee discussion
OPEN SESSION
11:30 a.m. Committee votes on release of Department of Fire Prevention and Electrical Safety report
Committee takes action related to release of report
Lunch Break
OPEN SESSION
1:30 p.m. Follow-up on Hiring report from December 2006
Officials from Department of Administration & Information
Mike McVay, Director
Dean Fausset, Administrator, Human Resource
Division
Committee questions and discussion
2:30 p.m. Update from the Retirement System on staffing plan (August 2007 report on Wyoming Retirement System)
Thomas Williams, Director
Harry Wales, Deputy Director
Committee questions and discussion
3:30 p.m. Other business
Update on work in progress
Staff summary of 2007 – 2008 Committee activities
ADJOURN