File name: JACSupplementalBudget2011-2012_20110113_121719.dcr

Folder: C:\Documents and Settings\HAppropriations\Desktop\Recordings


      3 ~ 1/13/2011 12:31:27 PM ~ Governor Mead returns - Explanation of his 2011-2012 Supplemental Budget

     32 ~ 1/13/2011 12:31:56 PM ~ Nicholas:  Next thing on my list is the data center. mega center may or may not come to Laramie..14.5 million dollars earmarked for communities for flood relief, then the Federal government came in and paid for it...Will the 14 and one-half do that if we have other places.

   1:39 ~ 1/13/2011 12:33:03 PM ~ Governor:  As the project moves along in Laramie, it seems like the 14.5 is a target for one project.  I would like that amount of money as a starting place..for several projects. part this is to make up for infrasturcture for other businesses as well.  I would like to be able to do..not use all the 14.5 for that..some recommendations that it is not enough..reasonable amount,..sufficient to begin several projects

   3:23 ~ 1/13/2011 12:34:48 PM ~ Nicholas:  Laramie...ridgeline is a barrier for all development in Laramie..need an assessment of cost...In Cheyenne, what do we know about those facilities

   4:03 ~ 1/13/2011 12:35:28 PM ~ Governor:  My understanding is that they will go where there is infrastructure there...not just talking traditional roads, bridges..talking broadband fiber optic.. As far as Laramie, process of site of Laramie is attractive for the city and the University

   5:19 ~ 1/13/2011 12:36:44 PM ~ Nicholas:  Data centers are looking for a variety...wanted assitance with a conduit for fiber optics.  If we put the money in the governor's office, ...put money into private infrastructure...utility...electricity discounts ..other types...need to sort out hte mechanism for the state to be involved in those investments..does putting it in the Governor's office make it more difficult?   ...How do you put it out...who do you give it to?

   7:02 ~ 1/13/2011 12:38:26 PM ~ Governor:  Practical and legal problems just handing it over to ta private council may be an option..debated in business office if it should go to our office or directly to the business council.  Advantage of having it in our office .....make sure we have opportunity to move with relative speed...

   8:17 ~ 1/13/2011 12:39:42 PM ~ Von Flatern:  Written description for data centers ...reads like a business center..not succinct for data center..goes into...description of a business ready community.  You made a comment earlier about infrastructure that should be there.  Is this money strictly to recruit Mega Data Centers?

   9:32 ~ 1/13/2011 12:40:57 PM ~ Governor:  ..City of Laramie needs a road long as we are building it.. it will be in an area where other businesses will go..last estimate was 10 million dollars which seems excessive to me.  Those are negotiations going on with the city of Laramie..We want to do it right so do not have to do it again

  10:37 ~ 1/13/2011 12:42:02 PM ~ Von Flatern:  Impetutus for road is that data center will be at the end of it.

  11:01 ~ 1/13/2011 12:42:25 PM ~ Governor:  Not my intent that it is for business ready community monies..That is part of the request...building road.

  11:37 ~ 1/13/2011 12:43:02 PM ~ Berger:  Dark Fiber in south from Cheyenne to Laramie.  What discussion in your cabinet?

  12:03 ~ 1/13/2011 12:43:27 PM ~ Governor:  Question if it could still be a viable believes so, interested in lighting it up..would go into Utah.  From my perspective, those discusssions have begun...seem eager to do that...waste to not have it used..want to use it before it is obsolete.

  13:07 ~ 1/13/2011 12:44:32 PM ~ NIcholas:  Data has signed optin to acquire 160 acres for it...facility is 6 billion they are looking for infrastructure for ridgeline for Laramie...and sewer..200 employees to construct facility so it is a big deal...this would be more money than...other facilities..We created a seperate 300 section to deal with those appropriations and put controls on.  We need a section 300 for each project.  Does the Governor's office want to take the first crack at doing the 300?

  15:13 ~ 1/13/2011 12:46:37 PM ~ Governor:  My office would be happy to do that.  The first data center the company plans to build is in New York...because of legal challenges, they are looking at making the first one in Wyoming..can happen as early as this spring...could come about relatively quickly.

  16:10 ~ 1/13/2011 12:47:34 PM ~ NIcholas:  ...asked company what we do to set the hook..who do we call, what do we do?  The answer is there is a time and place and the Governor should meet the CEO of this company so I encourage you to meet up with their lobbyist so you can go outand meet them and ..

  17:09 ~ 1/13/2011 12:48:34 PM ~ Governor:  We have met them and have tried to be available...

  17:24 ~ 1/13/2011 12:48:49 PM ~ Nicholas:  Decision will be made 5 levels above the attorney so people we have been seeing are at a tier need meeting with chairman and board.  That is the challenge

  18:04 ~ 1/13/2011 12:49:28 PM ~ Governor...not a chairman, I know that.

  18:12 ~ 1/13/2011 12:49:37 PM ~ NIcholas:L  This is a good sign..Encourage to see possibility of use of jet Next topic is the local governments, the recommendations to divert a portion of the statutory severance package  one third ... Committee, remember this is a revenue diversion matter, typically within the area of the expertise of the Revenue committee..In the budget bill, you can make temporary diversions so you can make revenue flows for the state..whether it is prudent..we will be discussing.. In the absence of a seperate bill going through the Revenue committee...some restraint on what we do in the budget..we did divert a temporary diversion of a statutory...issue for discussion

  21:42 ~ 1/13/2011 12:53:07 PM ~ Nicholas:  In your budget, you make the recommendation looking to recruit data centers, might look at sales tax relief.  We have tax relief and you say we need to promote...Tax 200 and the report generated and revenue expenditure studies of the lat 90's and 200, we know the problems of tax base diversification.  ..diversify jobs, industry.  If companies are not paying taxes where is the diversity in the tax base?  Where is your proposal..?  If we do not do that, push back a greater obligation to the minerals industry.

  24:05 ~ 1/13/2011 12:55:29 PM ~ Governor:  I also recognize the history of many of longer than mine.  I am also aware the Governor's of Wyoming have talked about diversifying our base.  I understand....What is the good of having them here if they are not going to pay to the tax base?  We have to be careful that they get tax breaks on some things..not on others.  The ability to give tax breaks is an incentive..believe it will create a centers are a magnet for other businesses.  What is the net benefit to Wyoming?  We are in competition for these other companies.   With respect to data centers in particular data centers are .... we have other, ability to produce electricity..leverage those advantages with tax advantages....want an economic benefit from it.  Do we give one company 14.5 or is a blend.

  27:41 ~ 1/13/2011 12:59:06 PM ~ NIcholas:   I have a in Wyoming and lives in Texas...all of us are aware of the lack of jobs..not a person here who is not a tireless advocate for more money for highways, ..knocking down fmore moeny for cities highways..having said we look at our is 60 % on minerals to sustain it..putting more money into permanent mineral trust fund....national bonds..invested in companies on the stock market...paying income on the dividends..another layer of diversification is your tax we are we going to pay government at this income tax, no property tax, we can take some of our earnings now and make sure we are increasing our investment income...great debate

  31:21 ~ 1/13/2011 1:02:45 PM ~ Governor:  Valid debate...when I addressed this group..I understand this group being supportive of local communities.  my point of view is different from yours.  I am not in favor of investing in the markets...I also believe during these times..put money back into communities.  Should it be one time or ...

  32:38 ~ 1/13/2011 1:04:02 PM ~ Nicholas:  Earmarked funds..does not occur that you give a revenue stream..size of govt swells to the size of govt.  part of it is managing those expectations too..we will manage within the dollars..debate it here then debate it on the floor.

  33:49 ~ 1/13/2011 1:05:14 PM ~ Governor:  sdOne brief last pitch..a very good time and way to help our locals, ..I do believe that this in part goes to economic developement, diversity..we can say we gave you what you need

  34:33 ~ 1/13/2011 1:05:58 PM ~ Nicholas:  We have had some wonderful surpluses and gave to ..UW, community colleges.  How much changed lives and created jobs that are still here today..sustanined govt,  improved the infrastructure...we did both ..put money in permanent trust fund and in communities.

  35:40 ~ 1/13/2011 1:07:05 PM ~ Governor:  ...You can say if we had not given that money to highways, we would be in a worse place.  When spending and appropriating that is tough decisions you made.

  36:15 ~ 1/13/2011 1:07:40 PM ~ Nicholas:  your proposal 75% to projects, 25% to administration. What if we do not allocate..?  In the past, it was not done this way.  Let's do it both ways: If we are to earmark..what formula woulsd you use?

  37:10 ~ 1/13/2011 1:08:35 PM ~ Governor...not that far along..Chairman Berger's comment that they build this into their budget if you give it to them...I do not want them to build it into their operational budget..  far less likely to build into budget ...

  38:14 ~ 1/13/2011 1:09:38 PM ~ Nicholas:  Regardless of if the budget is used to get money to cities, towns and into LSRA..the first decision is what is the split between capital projects and administration.  The more given to capital projects..they starve their capcon budgets.  Once allocated, what vehicle do you use to get the money to the ....Harshman loves hardship funding... need ..allocation within the budget and allocation within the statutes....for us to evaluate it, we look at sales tax revenue... If an energy wealthy counties revenues are coming back up, do they need as much monies...Will the staff be giving us information.  We will have the staff update us.

  41:17 ~ 1/13/2011 1:12:41 PM ~ Governor:  We would like to be part of that.

  41:26 ~ 1/13/2011 1:12:51 PM ~ Meier:  I think you are on the right track putting more towards one time funding,  than the 75/25 split.  Our communities have some money left over..not enough to do the projects they need to do.  Many communities have large reserves but do not have money to finish projects from first round of consensus funding....important to put it in that ratio.  The local governments have made the tough decisions already... Looking at the actual money we are putting out, looking at history of trying to be sustainable, so don't have roller coaster. If we spend ...robs us of having money in the future..if we do not have enough carryover, going into the next I agree with the split, I am not comfortable with the whole 52 million..need a..sustainable amount.

  44:53 ~ 1/13/2011 1:16:17 PM ~ Governor:..comments on roller coaster...say to Town A, you have town goes one quarter of the way...School Commission..put too much money in the chain..pull in out of state contractors...predictable, funding stream.  cost in efficiencies of those types of projects, doing them piece by want money left to provide incentives...

  46:39 ~ 1/13/2011 1:18:03 PM ~ Harshman:  Capcon..5 million was too much..  What is our capacity in the highways, infrastructure..

  47:30 ~ 1/13/2011 1:18:54 PM ~ Governor:  not a good on what it would cost to keep Wyoming roads going..number was huge.. the number I recommended 52 million is far short that ..think is needed.  we are not where we want to be..I believe the 53 million is not giong to create the artificial spike I mentioned... On the flip side of that, in towns and counties, Hartville, WY population of 47 or 48, there is a company ..couple from California started the Cowboy Coffee company, provide translation services to companies all over the broadband in Hartville..  I have not seen a similar thing

  51:10 ~ 1/13/2011 1:22:34 PM ~ Nicholas  We have needs and money in the accounts.  The question is, do we hold off or build it now.  If we build schools   Cap Con  The first item is the Sherican Facility.  We have lots of agencies in leased space  Now you are talking about selling a building we just bought.

  53:39 ~ 1/13/2011 1:25:03 PM ~ Mead  That building came up for sale in 2009  The state got it for 5 mill.  Currently there are just two agencies in the building.  If that is the only use, I feel that it would be better to sell it.

  54:57 ~ 1/13/2011 1:26:21 PM ~ Nicholas   Let me jump in  In general I would expect that we are leasing X amount if sq. ft.  I assume, they have long term leases.  Two were able to move in, the rest have long term leases that are waiting to expire.  We need to see how much square footage we need in the Sherican area.

  57:49 ~ 1/13/2011 1:29:14 PM ~ Mead   The two agencies in there now are using most of the building now.

  58:19 ~ 1/13/2011 1:29:43 PM ~ Sherry   The const. mgmt. office did not anticipate filling the remaining space.  The plan did include putting all nine agencies into the space.  Instead of the 228,000,      Maintance cost were different.

1:00:15 ~ 1/13/2011 1:31:40 PM ~ Nicholas   If you say you a double dipping, I understand that.  We will work through that.

1:00:53 ~ 1/13/2011 1:32:17 PM ~ Sherry   THe term double dipping is something that is referred to

1:01:28 ~ 1/13/2011 1:32:53 PM ~ Nicholas   We will get to that.  Generally, owning buildings are cheaper than than leasing them.

1:02:07 ~ 1/13/2011 1:33:31 PM ~ Berger  If you should sell the building what is going to happen

1:02:43 ~ 1/13/2011 1:34:08 PM ~ Nicholas   What would we do if we authorized you to sell the building.

1:03:18 ~ 1/13/2011 1:34:42 PM ~ Mead   If we were double , it was inadvertent.

1:03:43 ~ 1/13/2011 1:35:08 PM ~ Nicholas  There are a couple of areas that are our propgatory.  One is the capital building  One is this capital building.  We have an account set up to remodel the capital building.  Should we reorganize the IT function.  Centralize it.  Hire a private company.

1:06:08 ~ 1/13/2011 1:37:33 PM ~ Mead   I have been involved in some of these discussions.  I think we should proceed cationsly.  Some states have started farming that out to private companites.  Lot of us have old lap tops laying around that we don't know what to do with.  Cloud technology might be the way we want to go.  We need a strong presence of our CIO to coordinate  ,,,  THe CIO is a contract position  I pays $200,000 which is a lot of money.  I would like to make that a full time position.  This is one of my top priorities.

1:10:10 ~ 1/13/2011 1:41:34 PM ~ Nicholas See if we could put something in the budget   Rich would you reserect the figures on that CHeyenne building.

1:12:12 ~ 1/13/2011 1:43:37 PM ~ Cathcart  In this budget is 250,000 to demolish the old safeway building and $400,000 for a fiesability study.  We came to you for the design money.  That is a good way to go becaouse you don't have all that consturction money setting out there.    Rough estimaate  We  can estimate pretty close

1:14:43 ~ 1/13/2011 1:46:08 PM ~ Nicholas  We will have move out of this space if it is remodeled.  Maybe we could coordinate and move out of the capital and into the new space.  THen use it for office space afterwards  Governors Mansion   Would you be prepared to move into temporary quarters while updating the Governors Mansion.

1:19:25 ~ 1/13/2011 1:50:50 PM ~ Mead   We are good with either decision.

1:19:43 ~ 1/13/2011 1:51:08 PM ~ Nicholas  Construction Management .... the public side   Cathcart,, would you bring those numbers to us.  Take a tour of the basement and private side tonight

1:21:03 ~ 1/13/2011 1:52:28 PM ~ Meier  Mr. Chairman  I don['t know if remodel that house   if it is of sufficient standards to even remodel it.

1:22:19 ~ 1/13/2011 1:53:43 PM ~ Edmonds  I would echo Senator Meiers comments.

1:22:48 ~ 1/13/2011 1:54:12 PM ~ Nicholas   Rich, you can do the square foot ana lysis.  I'm also a believer that you can rebuild an older facility cheaper than building new.  However, sometimes it is cheaper building new

1:24:23 ~ 1/13/2011 1:55:47 PM ~ Cathcart  Maxfield is the designated state officiial to have any improvements done to the Governor's mansion

1:25:19 ~ 1/13/2011 1:56:44 PM ~ Nicholas   We will be back at 3:30  One is the back load on DEQ.   Wheather we live or die  .... THe second is air service enhancement.  The 4000 and 360,000 for the livestock agency will be in to talk about that.   THe womens's prision in Lusk.

1:27:31 ~ 1/13/2011 1:58:56 PM ~ Steeward  A L funding   Transfer account 3 to account 4

1:28:15 ~ 1/13/2011 1:59:40 PM ~ Nicholas  If there are other agencies that need to come in.  Once you have it in mind what you want   That's the Gillette Water PRoject.  If they are not on the agenda, lets put it on.   More important than the STEM building.

1:30:19 ~ 1/13/2011 2:01:44 PM ~ Steward   We have set up ongoing e

1:30:39 ~ 1/13/2011 2:02:03 PM ~ Nicholas With respect to President Buchanan  If everyone is satisfied we will cut the governor loose.  Thank you governor.