File name: JAC Budget Hearings FY 13-14_20120112_125615.dcr Folder: C:\Documents and Settings\HAppropriations\Desktop\Recordings 11 ~ 1/12/2012 1:33:52 PM ~ Resume Meeting 32 ~ 1/12/2012 1:34:14 PM ~ Boswell : Handout requested this morning. 5 breakdown of employees for greater detail requested from Dean. Model matrix: Market based distribution example of matrix. "Individual Market Distribution" Do not know appropriation or performance appraisals for specific individuals. Need results before creating specifics within the matrix. 2:38 ~ 1/12/2012 1:36:19 PM ~ Boswell: Conversion of at-will employees, Governor denied request, wants movement through attrition. Handout letter from Dean dated today, subject matter At-will Employees and status of Study. 4:36 ~ 1/12/2012 1:38:18 PM ~ Nicholas: pg 88 Fund shift Fiscal 1.02 million, denial in continutin general funds. Are the funds insufficient to make transition? 5:11 ~ 1/12/2012 1:38:53 PM ~ Boswell: Funds for conversion. 5:20 ~ 1/12/2012 1:39:01 PM ~ Nicholas: ? 5:27 ~ 1/12/2012 1:39:09 PM ~ Boswell: From classified to at will 5:39 ~ 1/12/2012 1:39:21 PM ~ Nicholas: Number of employees 5:46 ~ 1/12/2012 1:39:28 PM ~ Boswell: 6:06 ~ 1/12/2012 1:39:48 PM ~ Fausset: Joint Labor Committee meeting in Oct, Discussed with Governor Mead. Decision made to continue with methodology. Positions increased by 128. Labor Commission reviewed findings, desire to have more at-will employees. Governor sent letter asking review of study. We have recommended and Governor endorses that all employees at 702 level and executive management should be at will. Some positions are not high-level decision making positions but vital like physicians, doctors,. Head of institution should be at will regardless of Hay points. Positions that will be added to the at will Agency feedback: Some positions should not be at will. Example highly technical, like engineers. Not policy making positions so should not be at will. Governor concurred. Will meet with agencies to adopt. Current employees will not be asked to become at will. Identify positions and fill vacant positions with at will./ No cost to implement. 12:27 ~ 1/12/2012 1:46:08 PM ~ Steward: Policy determining at will positions will b emade in executive branch, not legislative 12:55 ~ 1/12/2012 1:46:37 PM ~ Boswell: Correct, legislature can influence through statute 13:20 ~ 1/12/2012 1:47:01 PM ~ Nicholas: AWEC versus at will. How do we keep track of differences of folks at will because of statute, at will employees with Health Benefits and at will AWEC without benefits? 14:16 ~ 1/12/2012 1:47:57 PM ~ Boswell: Do keep track, in counts 14:25 ~ 1/12/2012 1:48:06 PM ~ nicholas: These at will be permanent, not AWEC 14:36 ~ 1/12/2012 1:48:17 PM ~ Boswell: Correct, 14:45 ~ 1/12/2012 1:48:27 PM ~ Nicholas: How does legislature keep track or need to? 15:03 ~ 1/12/2012 1:48:45 PM ~ Boswell: Do not need to., ... 15:13 ~ 1/12/2012 1:48:55 PM ~ Nicholas: Acronyms? 15:31 ~ 1/12/2012 1:49:12 PM ~ Boswell: Confusing. 15:39 ~ 1/12/2012 1:49:21 PM ~ Nicholas: Creating at will, trying to eliminate AWEC, now account for AWEC in numbers and can not be created without legislative approval. Is that a budgetary footnote? 16:34 ~ 1/12/2012 1:50:15 PM ~ Mai: Think it is right. Every time you approve 900 series money in agency, it may be stated as contract position. Not every case will be crystal clear, other than to the committee. Would encourage committee to use words" contract employee" or "full time employees". 17:39 ~ 1/12/2012 1:51:21 PM ~ Nicholas: Two administrations ago. AWEC's created and not monitored. We made most AWEC's permanent and left them for purpose of part time or employement limited contracts. Now talking abuot permanent at will employees. Recommendation denied by Governor 18:59 ~ 1/12/2012 1:52:40 PM ~ Nicholas: Priority 10 picked up in last priority 19:09 ~ 1/12/2012 1:52:51 PM ~ Boswell: Placeholder for second biennium. 19:24 ~ 1/12/2012 1:53:06 PM ~ Boswell: Pg 92, 93 and 94 HR training is occuring on line. Hired person we contracted with. 20:07 ~ 1/12/2012 1:53:48 PM ~ Von Flatern: pg 92 Where does internal fund come from? 20:22 ~ 1/12/2012 1:54:03 PM ~ Boswell: Agencies paying A&I to facilitate the training. 20:36 ~ 1/12/2012 1:54:17 PM ~ Boswell: Pg 96 Employee group insurance. Mr. Ralph Hayes 20:57 ~ 1/12/2012 1:54:39 PM ~ Meier: Last year state overpaid, no way to get back, employees given a premium holiday? 21:50 ~ 1/12/2012 1:55:32 PM ~ Hayes: State self insured. Bubble in rate, high utilization.Rates developed reflected that . Caps reserve to 3 months. Goes back equally to agencies, employees to reduce excess reserves in middle of plan year. Could do drastric rate increase but then would come back. GF, Federal , agencies and other participants get the money back. Expect trends to continue 23:49 ~ 1/12/2012 1:57:31 PM ~ Nicholas: Rate holiday. Employee and employer save their per cent. 24:27 ~ 1/12/2012 1:58:09 PM ~ Hayes: Correct 24:32 ~ 1/12/2012 1:58:14 PM ~ Nicholas: Doesn't change our cost, just when it is padi 24:43 ~ 1/12/2012 1:58:24 PM ~ Hayes: Fair assessment. Lower rates or holiday, stays in the budget. 25:13 ~ 1/12/2012 1:58:54 PM ~ Nicholas? 25:16 ~ 1/12/2012 1:58:58 PM ~ Meier: Matter of timing, What if we underfund? Wait for biennium? 25:41 ~ 1/12/2012 1:59:22 PM ~ Hayes: If reseerves were at zero, would do a mid year increase or borrow against GF to 65 million and wait to increase rates at the next plan year. Either way works. 26:20 ~ 1/12/2012 2:00:02 PM ~ Nicholas: Mid year rate increase without GF would have to be paid out of employee share until receive appropriaton? 26:41 ~ 1/12/2012 2:00:22 PM ~ Hayes: Depends on funds in there. If employer contribution is not at cap rate, can increase. Fail safes for liability to GF and other program participants. 27:21 ~ 1/12/2012 2:01:03 PM ~ Nicholas: Internal Fund Payment: Contributions and rates paid in future. 27:39 ~ 1/12/2012 2:01:20 PM ~ Hayes: 27:52 ~ 1/12/2012 2:01:33 PM ~ Boswell: pg 97, 98, 99 OCIO swap, exception request, Priority #18. School District. Legislature set aside 15 positions, two have been filled, 13 open. Vacant for a long time. Will not fill until additional school districts enroll. Natrona County first and only enrolled. I proposed elimination of 3 vacant, leaving 10 vacant. Governor recommendation. 30:22 ~ 1/12/2012 2:04:03 PM ~ nicholas: Restrictions on filling position or rely on you? 30:33 ~ 1/12/2012 2:04:14 PM ~ Boswell: Candidly the latter. 30:41 ~ 1/12/2012 2:04:23 PM ~ Nicholas: 10 vacant not filled unless more enrollees. 30:58 ~ 1/12/2012 2:04:39 PM ~ Hayes: Correct 31:03 ~ 1/12/2012 2:04:45 PM ~ Nicholas: Status? 31:08 ~ 1/12/2012 2:04:50 PM ~ hayes: Goshen and Fremont county have started discussion. Will send memo to school districts. Not here to sell, are an option. Statute requires 120 days, district does not receive renewal of anniversary date for 90 days, no problem coming on board mid renewal date. 32:45 ~ 1/12/2012 2:06:27 PM ~ Nicholas: Two programs, WISBATE, state program with superintendents and counties 33:15 ~ 1/12/2012 2:06:56 PM ~ Hayes: Two programs 33:45 ~ 1/12/2012 2:07:26 PM ~ Boswell: Correction to 10 vacant positions, those require Governor approval to fill. 34:06 ~ 1/12/2012 2:07:48 PM ~ Nicholas: Budget footnote, have to carry through? Footnote or restriction expire? 34:24 ~ 1/12/2012 2:08:06 PM ~ Hayes: Budget footnote, 34:40 ~ 1/12/2012 2:08:22 PM ~ Boswell: Pg 100 Spending authority. Governor recommended reducing spending authority for 1,216,840. If we need money we will B11 35:12 ~ 1/12/2012 2:08:54 PM ~ Boswell: Overall spending authority pg 105. Total of 133, 649,183 dollars. 35:58 ~ 1/12/2012 2:09:40 PM ~ Hayes. What we expect to spend for medical claims and administration of program. Of 133 million, Natrona County is 67 million. Project for 3 years, anticipate what we expect to pay for our employees and put that in. Unit costs of medical care continue to grow. Incentives tied to health care are tied to units and what they cost. Not cost increase due to aging workforce but due to unit cost increasing. Not 133 million in general fund. State portion into 1200 series and the employer contribution established somewhere else. 38:19 ~ 1/12/2012 2:12:01 PM ~ Nicholas: Rate of inflation at 11.8 % and 10.* for second year trend factor. Double digit. 39:00 ~ 1/12/2012 2:12:41 PM ~ Hayes: 11.8 and 10.7 pick up all increases. Bubble has gone back down., Same services, not increased uses, through next biennium. 39:31 ~ 1/12/2012 2:13:13 PM ~ Nicholas: Rate increase? 39:45 ~ 1/12/2012 2:13:27 PM ~ Hayes: Employer contribution, language built in. 40:06 ~ 1/12/2012 2:13:48 PM ~ Berger: Handout 125. 40:14 ~ 1/12/2012 2:13:56 PM ~ Hayes: electronic to Bill 40:21 ~ 1/12/2012 2:14:03 PM ~ fNicholas: What is increase from last budget to this budget? 40:44 ~ 1/12/2012 2:14:26 PM ~ Hayes: Have no done thtat math. 40:54 ~ 1/12/2012 2:14:36 PM ~ Nicholas: Developed budget with new dollar increases? 41:09 ~ 1/12/2012 2:14:51 PM ~ fHayes: Pick employer contribution from middle, averages out. Built in. 41:40 ~ 1/12/2012 2:15:22 PM ~ dNicholas: Our committee needs to see what hjappens to premiums. 41:54 ~ 1/12/2012 2:15:35 PM ~ Hayes: Can give you total spend on this program for lst 10-12 years. 42:07 ~ 1/12/2012 2:15:49 PM ~ Nicholas: what 5 increase is builit in? 42:16 ~ 1/12/2012 2:15:58 PM ~ Hayes: Used 11% for this one, then dropped to 10.8% 42:42 ~ 1/12/2012 2:16:23 PM ~ Nicholas: Chart for contribution by family members, single...Need discussion of our support for family plan, or how to control rates below double digit. 43:33 ~ 1/12/2012 2:17:14 PM ~ boswell: Handout answers committee questions, UW Rate Holiday numbers. 855 participation in program. down to 80% 44:04 ~ 1/12/2012 2:17:45 PM ~ Nicholas: UW block grant? inside or outside of it. 44:20 ~ 1/12/2012 2:18:01 PM ~ Jones: Included in block grant. In current biennium it was outside and not used, 44:42 ~ 1/12/2012 2:18:23 PM ~ Nicholas: did Univeristy pick up 5 million because we overpadi? 45:00 ~ 1/12/2012 2:18:41 PM ~ Jones: 45:07 ~ 1/12/2012 2:18:48 PM ~ Meier: Asked President Buchanan. Did not need to spend money so is in account, just waiting there, not in block account. 45:33 ~ 1/12/2012 2:19:14 PM ~ Nicholas: Set aside money for rate incrases for US if they needed it. Does not mean there was not an internal savings inside their block grant. picked up money within their budget? 46:16 ~ 1/12/2012 2:19:58 PM ~ Jones: Specific allocation for current biennium, did not draw on it. 46:30 ~ 1/12/2012 2:20:11 PM ~ Nicholas: Allocation in excess of 5.7 million dollars? 46:54 ~ 1/12/2012 2:20:35 PM ~ Jones: Money for current biennium outside of block grant, asked them to do calculation because of rate holiday. Savings within black grant of 600 000 and did not tap the account so need to decide what to do with it. Next biennium? 47:59 ~ 1/12/2012 2:21:40 PM ~ Jones: Worked with them, calculation, based on rates made an adjustment within the block grant 48:24 ~ 1/12/2012 2:22:06 PM ~ Nicholas: Next rate holiday will not have protection to get our money back? 48:40 ~ 1/12/2012 2:22:22 PM ~ Jones: Correct 48:52 ~ 1/12/2012 2:22:33 PM ~ Nicholas: Fund with only prupose being insurance benefits. 49:03 ~ 1/12/2012 2:22:45 PM ~ Boswell: University hesitant to do that. Pereception it erodes the block grant. 49:27 ~ 1/12/2012 2:23:09 PM ~ Nicholas: I thought we had decided to do that. 49:35 ~ 1/12/2012 2:23:17 PM ~ Mai: Talked about it, as a result of the 7 1 set aside in the auditors office, tied their hands, UW must work iwth A& I to decide how much necessary to balance needs. Think there were additional problems with insurance contributions due to flexing within their budget. Can't happen again, need to break out seperately and track seperately. 50:51 ~ 1/12/2012 2:24:32 PM ~ Nicholas: ... 50:57 ~ 1/12/2012 2:24:39 PM ~ Mai: University builds in amount based on current rate structure, felt could take extra money and use in their budget and that amount would come back in the block grant, 51:59 ~ 1/12/2012 2:25:41 PM ~ Nicholas: Block grant adjusted for increase in insurance rates, University had to provide employee numbers, cost before and cost after. At reconciliation no agreement on cost before and after. 52:43 ~ 1/12/2012 2:26:24 PM ~ Jones: Index, breakdown, have counts, information available. used to calculate numbers 53:12 ~ 1/12/2012 2:26:54 PM ~ Mai: peice missing, A&I has said meet out of existing resources before drawing more appropriations. You do not get to flex that money. If you have a rate increase and you have money in that account, cover rate increase first out of that , then draw. University --language not specifically saying play by same rules, felt they could us money in other areas. 54:22 ~ 1/12/2012 2:28:04 PM ~ Nichols: Setting up a seperate account for health care costs and premise of covering extra cost. Want health care benefits to be inside budgets with some risk to the agencies so they are partners in reducing costs. Taking all health care costss and putting in seperate series, no inceentive to work with employees to reduce costs. Seperate account, flow through, want agencies to be partners. Standard budget had old insurance premium. Should difference in old and new premiums be put in a similar account. 56:06 ~ 1/12/2012 2:29:48 PM ~ Mai: Univeristy hs employee stratification at time of building budget. Base budget on that. It changes from day to day. A&I position: we understand you may be short or long so vacant positions buildi n to budget at single coverage, cheapest coverage. Agencies may have to go to A&I. UW protested that they had the money but don't have the money there now because it was a block grant. 58:11 ~ 1/12/2012 2:31:52 PM ~ Nicholas: Problem not solved by creating anothr account for insuranc.. 58:27 ~ 1/12/2012 2:32:09 PM ~ Mai: If you pulled the universities insurance piece out and treated as state agency, would be best way to cost contain. 59:05 ~ 1/12/2012 2:32:46 PM ~ Nichols: Community colleges? Discuss with UW when we get there. 59:24 ~ 1/12/2012 2:33:05 PM ~ Jones: Staff will have information specifically identifying calculation 59:39 ~ 1/12/2012 2:33:21 PM ~ Nicholas: Give UW heads up, numbers to UW, to us so we have specific number to build that seperat account 1:00:01 ~ 1/12/2012 2:33:43 PM ~ Jones: yes 1:00:05 ~ 1/12/2012 2:33:47 PM ~ Nicholas: 1:00:56 ~ 1/12/2012 2:34:37 PM ~ Nicholas Our employees were jumping off to other plans. 1:01:51 ~ 1/12/2012 2:35:33 PM ~ Jones When I look at other large employees, they do provide family plans. The healthy dependants...... There were an afull lot of dependents coming back to the state insurance company. 1:03:35 ~ 1/12/2012 2:37:17 PM ~ Nicholas 1:03:40 ~ 1/12/2012 2:37:22 PM ~ Jones First of all, it designed to keep and attract employees. The employer contribution was 1:04:46 ~ 1/12/2012 2:38:27 PM ~ Nicholas Do we need more information or do we simply carry forward these plans. I think this would be interium work. 80 vs. 85 If we really want to look at it........ If the members do want to look 1:07:05 ~ 1/12/2012 2:40:47 PM ~ Nicholas Comfortable of $85.15 We anticipate second year 10.8% does that translate into a rate increase? 1:08:19 ~ 1/12/2012 2:42:00 PM ~ Jones This time we had a 2.8% increase. 1:08:46 ~ 1/12/2012 2:42:28 PM ~ Nicholas These are the rates that the budget is built on? 1:09:10 ~ 1/12/2012 2:42:52 PM ~ Jones These are rough estimates Those are the caps that you put in place 1:09:40 ~ 1/12/2012 2:43:22 PM ~ Nicholas Is that something that put into charts so we look smart? Lets take a 10 minute break 1:10:56 ~ 1/12/2012 2:57:05 PM ~ Jones We are trying to midigate these prices as much as possible 2007 193 2011 283, 133% increase $2007 up 203% 4 others up over 200% We pay more now for drugs and for patient care. How do we control costs? We make sure they don't stay any longer than necessary in the hospital. We really want to get them before they need help. Also taking generic drugs if possible. Get them complient so they stay our of the hospital. Can we get them to take on more responsibility. Ultimately it is transforming primary care. I don't see the costs of these drugs coming down until generics. 1:17:05 ~ 1/12/2012 3:03:14 PM ~ Edmonds Our wellness program. 1:17:21 ~ 1/12/2012 3:03:30 PM ~ Jones This is our 4th year. 1:17:38 ~ 1/12/2012 3:03:47 PM ~ Edmonds What is the cost savings? Could we save how much we have invested This concept started with pediatric. My concern is that in a rural state. There are already too few doctors and we are going to ask them to spend more time with us. I don't see it happening. 1:20:22 ~ 1/12/2012 3:06:31 PM ~ Jones I can provide you with the seminars costs that we have provided 1:21:00 ~ 1/12/2012 3:07:09 PM ~ Nicholas Ultimately we are the oversight committee for the health insurance program. It doesn't say much about what is being done. If someone said if we impliment A B C, we would put it in the budget and it would be done. If we adopt the Gov's rec, what would you do? 1:23:33 ~ 1/12/2012 3:09:41 PM ~ Jones Work with Dept. of Health. It's more far reaching than just this program 1:24:21 ~ 1/12/2012 3:10:30 PM ~ Nicholas I recommend that you work to support those 1:24:37 ~ 1/12/2012 3:10:46 PM ~ Jones I see it as working with....... This is not a short term process 1:25:10 ~ 1/12/2012 3:11:19 PM ~ Nicholas I agree with Rep. Edmonds. Here we are paying Laramie students at the rate of 20k oer year. 1:26:28 ~ 1/12/2012 3:12:37 PM ~ Jones That is a diffucult question The way we pay for primary care, if we had a different payment schedule 1:27:34 ~ 1/12/2012 3:13:43 PM ~ Nicholas When you see (see page 106) What do those words mean? Maybe the Gov has a health adviser that we are not aware of. Maybe we need to ask him. 1:29:32 ~ 1/12/2012 3:15:41 PM ~ Jones A diabetic is an example. Dr. need to do counciling 1:30:46 ~ 1/12/2012 3:16:55 PM ~ Nicholas It's Gov. Rec. There is nothing in there ....... As JAC what do we want to do to have a cheaper plan. 1:32:11 ~ 1/12/2012 3:18:20 PM ~ Nicholas Who drafted this languare 1:32:25 ~ 1/12/2012 3:18:34 PM ~ Nicholas Rep. Edmonds will you meet with Gov. Staff 1:33:10 ~ 1/12/2012 3:19:19 PM ~ Esquibel How long is the contract with Signle 1:33:43 ~ 1/12/2012 3:19:52 PM ~ Jones 2 years, 3 renewals 1:33:57 ~ 1/12/2012 3:20:06 PM ~ Esquibel I don' know 1:34:17 ~ 1/12/2012 3:20:26 PM ~ Jones It has been our choice When you compare state to private, the state is 8-9 years older. We are self insured 4 to 5 cents our of each dollar. 1:35:53 ~ 1/12/2012 3:22:02 PM ~ Nicholas We go out and build a program and hire a consultant to see how good it is. Are we do for another review? 1:37:04 ~ 1/12/2012 3:23:13 PM ~ Edwards It's not a bad idea to do it on a periodic basis. 1:37:41 ~ 1/12/2012 3:23:50 PM ~ Nicholas Is our employee packet comparable to other states? Maybe provide a copy of the last study. 1:40:10 ~ 1/12/2012 3:26:19 PM ~ Wallis I wonder if there is room in that review to some bold our of the box solutions. Unless we get some private intervention to see if there is a complety different way to looking at things. 1:41:52 ~ 1/12/2012 3:28:01 PM ~ Harshman You still have the 350 and 750 deductable. 1:42:27 ~ 1/12/2012 3:28:36 PM ~ Jones The four options remain the same. The bulk of employees have gone to that. 1:43:07 ~ 1/12/2012 3:29:16 PM ~ Jones The savings is somewhat minimal. One in ten had a claim of over $10,000 1:44:03 ~ 1/12/2012 3:30:12 PM ~ Nicholas We are such a large group, If you have a young employee, had do they come up with $10,000? We did an analysis and we were better off where we were at. 1:45:18 ~ 1/12/2012 3:31:27 PM ~ Edmonds $350 deductable are almost unheard of. I assume they are selecting $350 1:46:15 ~ 1/12/2012 3:32:24 PM ~ Nicholas I have a lot of young people coming through. 10,000 employees, if a large number don't pay their bills We are the largest group, having them pay is a big deal. I'm happy to go through the process again but it is not easy and there are lots of consideration. Any further questions 1:49:14 ~ 1/12/2012 3:35:23 PM ~ Meier Prescription Drugs 1:49:28 ~ 1/12/2012 3:35:37 PM ~ Jones We are having some ...... We are suggesting that people use generic drugs 1:50:16 ~ 1/12/2012 3:36:25 PM ~ Nicholas We will revisit drug issue. We have provided legislation that state doctors have to provide namebrand drugs 1:51:46 ~ 1/12/2012 3:37:55 PM ~ Jones Maxium is the #1 medication. For a medication that cost the plan $10,000 per month. 1:52:57 ~ 1/12/2012 3:39:06 PM ~ Nicholas Lets see what our options are. 1:53:33 ~ 1/12/2012 3:39:42 PM ~ Boswell Page 103 No Exceptions Page 108 Employee Dental Insurance 1:54:37 ~ 1/12/2012 3:40:45 PM ~ Meier Thats going into the standard budget 1:54:53 ~ 1/12/2012 3:41:02 PM ~ Boswell 1:55:04 ~ 1/12/2012 3:41:13 PM ~ Boswell We are now building it into the subject 1:55:26 ~ 1/12/2012 3:41:35 PM ~ Jones The premiums are age coordinated Page 113 100% passthrough This is where employees can put money aside. This is a use it or loss it program 1:57:28 ~ 1/12/2012 3:43:37 PM ~ Harshman What are the current limit 1:57:45 ~ 1/12/2012 3:43:54 PM ~ Boswell Economic Analysis Page 116 Page 119 1:58:56 ~ 1/12/2012 3:45:05 PM ~ Nicholas Justin Ballard is qued up 1:59:29 ~ 1/12/2012 3:45:38 PM ~ McVay Justim Ballard will fill that position He has gotten a lot of interest. He is working with the Rock Springs grazing group 2:00:46 ~ 1/12/2012 3:46:55 PM ~ Nichlolas When will be start seeing a work product out of him 2:01:17 ~ 1/12/2012 3:47:26 PM ~ McVay It will be a lengthly study. Justin is corking on other studies 2:02:02 ~ 1/12/2012 3:48:11 PM ~ Boswell State Library Page 122 A fund swap Page 124 To be brief, we have several federally funded positions. Move funds from 200 series to 300 series 2:04:23 ~ 1/12/2012 3:50:32 PM ~ Nicholas We have the sheets for that There are some info in the State Auditors Office handout. 2:06:10 ~ 1/12/2012 3:52:19 PM ~ Berger 2:06:29 ~ 1/12/2012 3:52:38 PM ~ State Librarian They had the funds. They have one more year. They are anxious to make more money. 2:07:42 ~ 1/12/2012 3:53:51 PM ~ Nicholas One more year before you tell them money is about to run our 2:08:33 ~ 1/12/2012 3:54:42 PM ~ Boswell Page 127 & 128 $10,276,262 Do any of our unused dollars flow to this fund 2:10:35 ~ 1/12/2012 3:56:44 PM ~ Cahcart We don't think it needs refilled this year We are looking at 28 to 30 mill , close to 33 mill in reversions 2:11:49 ~ 1/12/2012 3:57:58 PM ~ Nicholas what is the balance of the capital const. 2:12:16 ~ 1/12/2012 3:58:25 PM ~ Bosewall about 43 mill Nicholas + 33 mill ANI budget 2:13:34 ~ 1/12/2012 3:59:43 PM ~ Nicholas Lets have Rich come back on the last day. 2:14:38 ~ 1/12/2012 4:00:47 PM ~ Cathcart SPC 4.4 mill just to clear up a misprint 2:15:13 ~ 1/12/2012 4:01:22 PM ~ Boswell 6A and 6B Two boards within 6A need general fund monies Animal Euthanasia Board Gov's rec is ... Merge this board with another board? Consolidte or eliminate Second one Board of Midwifery 2:19:15 ~ 1/12/2012 4:05:24 PM ~ Berger: As legislaturers we have many organizations that come asking for Board status. Is there any way to combine these Boards to reduce the cost? 2:20:24 ~ 1/12/2012 4:06:33 PM ~ Boswell: The Boards are paying A&I costs but not paying office space. These two agencies are in major trouble. I have heard discussion. The more the Board uses the A&I for copy and office . The Boardds themselves can themselves can limit their drain on A&I.. 2:22:39 ~ 1/12/2012 4:08:48 PM ~ Nicholas: It is trouble to me that the demand is not there for a small number of people. If we take the position either sink or swim. They can't write negative checks. 2:23:38 ~ 1/12/2012 4:09:46 PM ~ Boswell: A&I will simply absorb costs for these agencies. 2:24:05 ~ 1/12/2012 4:10:14 PM ~ Nicholas: So you forced in the position to fund it or disband it. 2:24:47 ~ 1/12/2012 4:10:56 PM ~ Boswell: No sunset date. 2:25:36 ~ 1/12/2012 4:11:45 PM ~ Edmonds: There is a consticnge out there that are passion. Make know that the Board is in trouble. 2:26:24 ~ 1/12/2012 4:12:32 PM ~ Niicholas: It is not good solution to say that if you can't raise enough money it becomes ineffective. Contact sponsors and say contact your people about problem. Write letter saying we need to find solution. 2:27:56 ~ 1/12/2012 4:14:05 PM ~ Steward: Remember midwifery bill. Language into the bill that there would be problems with fees and funds. Enrollment is low. Problems in addition too and under the radar. Statuatory language needs to changed. 2:29:29 ~ 1/12/2012 4:15:38 PM ~ Berger: Too small to be self ssustaining. 2:30:00 ~ 1/12/2012 4:16:09 PM ~ Nicholas: It seems to me there is 4 people they want to regulate other people. 2:30:39 ~ 1/12/2012 4:16:48 PM ~ Wallis: Fold Animal Euthisana Board into Vetinary Medicine. 2:31:18 ~ 1/12/2012 4:17:27 PM ~ Meier: Curious about how money is expended. Discussion as to allocations. How do you warrant $6,000. 2:32:18 ~ 1/12/2012 4:18:27 PM ~ Horsley: For the 6A boards they are allocated by different methods. 2:33:25 ~ 1/12/2012 4:19:34 PM ~ Meier: Allocation can not be equal amoung Boards. Smailler Boards maybe could do with less allocated money. 2:34:44 ~ 1/12/2012 4:20:52 PM ~ Boswell: Allocations take the form of exceptions through out budget. Couple of exception requiests for comuter. Board of Cosmetogoly has exception. Board of Medicine has exception $42,000 data base request on page 12. Real Estate Recovery Fund move employee to permanent. Govenor denied. 2:38:15 ~ 1/12/2012 4:24:24 PM ~ Nicholas: Outside agency has choice of AWEC employee or permanent. 2:38:59 ~ 1/12/2012 4:25:08 PM ~ Boswell: Yes. Discussion during Board of Medicine both the Board and employee and are now wanting to change this position status. Yes there is a way to get more out than put in. 2:40:21 ~ 1/12/2012 4:26:30 PM ~ Nicholas: Not good policy to allow individual to say when they want to in or out of the plan. 2:40:57 ~ 1/12/2012 4:27:06 PM ~ Von Flatern: Benefit would be minimal. 2:41:15 ~ 1/12/2012 4:27:24 PM ~ Nicholas: problematic to allow jumping in and out. 2:41:40 ~ 1/12/2012 4:27:48 PM ~ Boswell: Board of Medicine position that this position that this is a long term position. It is not time limited. page 13 $89,000 page 14 computer replacement request Board of Nursing has a total $428,00 exception request. There is a standard budget for this board with a deficit. Will have to dip into their their reserves for this amount. Governor says Board of Nursing must find other ways to fund their needs. 2:45:49 ~ 1/12/2012 4:31:58 PM ~ Nicholas: Do they have a balanced budget? 2:46:09 ~ 1/12/2012 4:32:18 PM ~ Boswell: Board of Nursing has gone to the Governor's office and there has been confusion. It is a concern in terems of how this has wandered and it is disturbing concerning their revenues. Don't know if they are required to have an audit. 2:47:42 ~ 1/12/2012 4:33:51 PM ~ Nicholas: they need to come back with a plan for balanced budget or deficit spending. 2:48:11 ~ 1/12/2012 4:34:20 PM ~ Boswell: I will convey that to the Board. We will try to reach out to them but unsure they can have a vote in that time. 2:49:23 ~ 1/12/2012 4:35:32 PM ~ Nicholas: Either bring a balanced budget or Board members vole on deficit spending. 2:49:55 ~ 1/12/2012 4:36:04 PM ~ Boswell: Board of Pharmacy has exception request. 2:50:31 ~ 1/12/2012 4:36:40 PM ~ Nicholas: All agency money? 2:50:44 ~ 1/12/2012 4:36:53 PM ~ Boswell: Yes. 2:50:50 ~ 1/12/2012 4:36:59 PM ~ Nicholas: One of us should go through exception requests. 2:52:19 ~ 1/12/2012 4:38:28 PM ~ 2:53:20 ~ 1/12/2012 4:51:51 PM ~ Nicholas: Bohnenbust are you contributing to retirement fund. 2:53:51 ~ 1/12/2012 4:52:22 PM ~ Bohnenbust: Contribution into rietirement fund and go outside for my health insurance. Board wanted to may sure it was an at will position. 2:55:17 ~ 1/12/2012 4:53:48 PM ~ Nicholas; Need letter from retirement saying there is or is not no impact to state. If it is pay as go it proably is Board's position. 2:56:49 ~ 1/12/2012 4:55:19 PM ~ Bohnenbust: State would be paying some of retirement contribution. 2:57:20 ~ 1/12/2012 4:55:51 PM ~ Nicholas: As long as they are aware of problems and get a letter. 2:57:45 ~ 1/12/2012 4:56:16 PM ~ Bohnenbust: No net change of position just change of status. 2:58:07 ~ 1/12/2012 4:56:37 PM ~ Nicholas: need letter saying no impact to state. 2:58:37 ~ 1/12/2012 4:57:08 PM ~ Office of the Chief Informatio Officer Flint Waters Meredity Bickell Waters: 2, 5 & 8% reduction. page 7...graph of staffing with a 10 year hestory. page 9....900 series payments. Sorted with subtotal with expenses. The remaining funds to pay for MSA. 3:02:43 ~ 1/12/2012 5:01:13 PM ~ Nicholas: Large projects? 3:03:16 ~ 1/12/2012 5:01:46 PM ~ Waters: Not being handled very well. Paying for IT through MSA Program and make it accountable. Mandated that if these are critical position they should go away. 3:04:31 ~ 1/12/2012 5:03:02 PM ~ Nicholas: Graph shown on page 7. 3:04:52 ~ 1/12/2012 5:03:23 PM ~ Waters: These are only IT positions. 3:05:08 ~ 1/12/2012 5:03:39 PM ~ Nicholas: page 9 3:05:22 ~ 1/12/2012 5:03:53 PM ~ Water: Money has routed through his agency. 3:05:38 ~ 1/12/2012 5:04:09 PM ~ Nichaolas: Other contractors? 3:05:51 ~ 1/12/2012 5:04:21 PM ~ Waters: Other contractors. Tracked support services routed through this agency. Guarder Group is nationwide. Have been working with this group. Part of Governor's budget. I have been working with this contract to better leverage from this contract. There are policy enitity that need tracking. It is on my radar. page 11... graph documenting transformation summary of money. As a comparison of $61.5 million budget. $2.3 million in exception items. Large exception items are cycial. The budget that comes through is paid through for other agencies such as Verizon for cells phones for all agencies. Good portion to have transparency. Transition model to see saving to state. We are aggressively trying to cut costs. Agencies pay us for products. This is not economical. There is a better way and I will talk later where these agencies can be far more affortable. 3:16:11 ~ 1/12/2012 5:14:42 PM ~ Peterson: Are you going to tracking printers with cartiages. 3:16:45 ~ 1/12/2012 5:15:16 PM ~ Waters: We are tracking printers. Are not at the point to track supply of cartiages. More economic. Looking work group printers. We are attempting to be aggressive in this area. 3:18:30 ~ 1/12/2012 5:17:00 PM ~ Waters They had done a google contract in place all ready. It proved quite advantangeous 3:19:30 ~ 1/12/2012 5:18:01 PM ~ Peterson Consolidating Vendors and then the thought of bigger purchases means more money leaving the state as we consolidate. 3:20:40 ~ 1/12/2012 5:19:11 PM ~ Waters We have been trying to keep an eye that. We have some excellent programers throughout the state. We are trying to incoorporate ...... No one looks at what happens... I am going to house them in our office, not in the agency being serveed. 3:23:03 ~ 1/12/2012 5:21:34 PM ~ Von Flatern OCIO Budget Shift 3:23:49 ~ 1/12/2012 5:22:20 PM ~ Jones Back in December Our focus is on the general fund Page 4 in your 306 budget. You will find in column 4 22,807,000 Which is a time limited position. It is not reflected here. That is the difference. The first number below, that is the firest offset 3:26:20 ~ 1/12/2012 5:24:51 PM ~ Von Flatern 3:26:32 ~ 1/12/2012 5:25:03 PM ~ Jones That is correct. Unit 2001 There are 5 budget requests shift from a brings us to 10,500,000 We are recovering these via cost allocation 3:28:10 ~ 1/12/2012 5:26:40 PM ~ Von Flatern 3:28:17 ~ 1/12/2012 5:26:48 PM ~ Jones Yes using budgeted numbers. We will be able to use these funds throught the biennium. It will be addressed by the governors letter in short order. The next number 979423 entities G&F Commission, DOT Commission Judiciary, LSO. The recovery of Federal funds via cost Allocation 3:31:20 ~ 1/12/2012 5:29:51 PM ~ Von Flatern Need more explanation 3:31:42 ~ 1/12/2012 5:30:13 PM ~ Jones It has to go through the approval process. We had that conversation with our counter parts at the federall level. 3:33:06 ~ 1/12/2012 5:31:37 PM ~ Waters Page 4 in the budget, Column should be 121 Priority #5 There will be quite a few of We will have a set of requests 3:35:08 ~ 1/12/2012 5:33:39 PM ~ Waters It includes some enhancement some is buildout 3:35:33 ~ 1/12/2012 5:34:04 PM ~ Waters That is correct In later on we do model is as standard budge6 Page 13 Move internal funds to general funds Page 21 Priority #1 This reflects a lot more demand for internet Page 22 Enterprise Email While we are saving quite a large q 3:38:29 ~ 1/12/2012 5:37:00 PM ~ Berger About the cost of liscensing 3:38:55 ~ 1/12/2012 5:37:26 PM ~ Johes The previous CIO worked with ....... Now we can answer with transparancy. Sometimes an agency will request $300,00 and will only be approved after Page 22 Priority 3 Network Router replacement. We are trying to elimnate the ability of one office take down the entire system. Page 23 Facilities support Page 24 Shift of dollars Page 26 Network Entierprises Pag e27 Enterprise Firewales Page 27 Priority #9 Monitoring Enhancements Page 28 Priortiy #10 Network contingency fund Page 31 Change in enterprise develpm innovations More business agail maybe 30 sitting there working 10% of the time. We will provide storage . You will see it as a savings in the agencies 3:49:19 ~ 1/12/2012 5:47:50 PM ~ Nicholas How are your facilities 3:49:34 ~ 1/12/2012 5:48:05 PM ~ Waters In Herschler, it is working realy good. If we can move agencies to the cloud, it will be much cheaper. You can 3:51:17 ~ 1/12/2012 5:49:48 PM ~ Nicholas Is Emerson adequate 3:51:30 ~ 1/12/2012 5:50:01 PM ~ Waters I think Emerson will be quiite adequate Page 35 Prioriy #12 We are leveraging this by hiring back retirees Page 36 Ecterprise Back/up Pag e37 Server Infrastructure enhancement Page 38 Priorty #22 Membership for our programing staff Land management where we can see oil and gas activity Priority #24 PBX switches Page 39 Core infrastructure development, we need to be broad in our solutions Page 40 Uses the google infrastructure alll it takes is the configuration change additional licenses for state phone system Page 41 Priority #29 IT service management implementation Pag e 42 Priority #30 Initianion protocol 4:00:26 ~ 1/12/2012 5:58:57 PM ~ Wallis Dealing with satalite systems How would you deal with that. Faster systems on the horizon 4:01:04 ~ 1/12/2012 5:59:35 PM ~ Water The the voice over IT solution it will only work if That is why we are trying to get wider broad band. Bring in a We were able to go into buffalo and able to prove to the providered it was worth their investment. We are getting better but needs to go rural as possible 4:04:04 ~ 1/12/2012 6:02:35 PM ~ Wallis I don't see hard wires to rural ranches 4:04:55 ~ 1/12/2012 6:03:26 PM ~ Waters Were seeing like putting up a LTT cloud. We have a request from the Superintendent of Education for the school buses. Page 69 Enterprise network load balancing hardware replacement 4:07:05 ~ 1/12/2012 6:05:36 PM ~ Nicholas Are you comfortable 4:07:24 ~ 1/12/2012 6:05:55 PM ~ Agar That is the total of what it is going to take but I don't know where it is at. Page 4 of the handout, unsure 4:08:37 ~ 1/12/2012 6:07:07 PM ~ Waters It is not being paid to us, It is being reinbursed back. 4:09:02 ~ 1/12/2012 6:07:32 PM ~ Dawn It is an agency by agency 4:09:17 ~ 1/12/2012 6:07:48 PM ~ Waters Budget Office 4:09:25 ~ 1/12/2012 6:07:56 PM ~ Jones The intent is to invoice what you have is the total 4:10:07 ~ 1/12/2012 6:08:38 PM ~ Nicholas Here is what we are going to do I don't think there is anything gained by you reading us page by page the written word. Budget look at this and see if it really profiles what you want. I have questions but I don't think they are going to get them answered today.. With that in mind is talking about section 900 Aran Hardy 4:13:14 ~ 1/12/2012 6:11:45 PM ~ Boswell That is all mailing Cap Con, Larimie County Community College, That is a very small number Risk Management. 4:14:57 ~ 1/12/2012 6:13:28 PM ~ Nicholas Any questions about the other 900 serries items. That ends it for tonight. If you have time this evening read the school facility report. These are 50 year buildings and the last thing we wnat to do 8 years from now that we built them wrong.