File name: JACSupplementalBudget2011-2012_20110118_075516.dcr
Folder: C:\Documents and Settings\HAppropriations\Desktop\Recordings
0 ~ 1/18/2011 8:17:12 AM ~
8 ~ 1/18/2011 8:17:20 AM ~ Tuesday, January 18, 2011 Index: am1 University of Wyoming
29 ~ 1/18/2011 8:17:42 AM ~ Nicholas: Schedule change to 4:00 for the Department of Education
1:00 ~ 1/18/2011 8:18:12 AM ~ University of Wyoming Thomas Buchanan, Don Richard
1:22 ~ 1/18/2011 8:18:34 AM ~ BuchananL Two handouts: 1. Supplemental budget request info 2. Answers to 11 questions asked Dec 15 meeting In Dec, provided information about AML..additional handouts Ryan Lantz, Doug
2:34 ~ 1/18/2011 8:19:47 AM ~ Nicholas: Any order you like and take through handouts
2:47 ~ 1/18/2011 8:19:59 AM ~ Buchanan: Handout references to budget book Supplemental Budget Request: 1. One time 6 million request for increased employer insurance cost for premiums
3:51 ~ 1/18/2011 8:21:03 AM ~ Nicholas: Provided information ..
4:06 ~ 1/18/2011 8:21:19 AM ~ Buchanan: Health insurance split is 85/15 Employer/Employee. Notified of increase in Sept..Employees paying for that increase University estimates 5.95 million increase in health care cost (85% split) Disagree with budget office about historical information Issue: Use of employer paid benefits and UW's block grant For 4 biennium, we move dollars when we know we are able to do that and have pressing needs. Excess funds ..in the past..have shifted them Issue: Budget Office believes funds should have been set aside and not used as part of block grant Accurate assessment except budget office knew about shifting If committee wants benefits managed differently, can do that
7:31 ~ 1/18/2011 8:24:43 AM ~ Steward: Block grant - would you prefer not to have black grant?3
7:56 ~ 1/18/2011 8:25:08 AM ~ Buchanan: Like block grant, have been exceptions through the years ...if rules change will live with thos Change in approach has resulted in significant shortfall Significant jump in health care
9:03 ~ 1/18/2011 8:26:15 AM ~ Steward: Shortfalls are driving request ...any other shortfalls in the future?
9:23 ~ 1/18/2011 8:26:35 AM ~ Buchanan: Nothing aware of...If EPB's are to be managed differently, we will do that..clear set of instructions on how to proceed
10:02 ~ 1/18/2011 8:27:14 AM ~ Meier: Percent increase in health care premiums Budgeting process ...health care costs outpace inflation..process did not account for percent increase in health care premiums Can not understand why that is the case..enlighten us Did you plan for an increae..?
11:27 ~ 1/18/2011 8:28:39 AM ~ Don Richard: Increase was imposed upon us by A&I..after supplemental budget request was prepared..not in full budget or Board of Trustees budget
12:09 ~ 1/18/2011 8:29:21 AM ~ Meier: Regardless of who announced...business takes into account probability of increase.. In future, want analysis...spend 10 miilion..big surprise..budgeting process fell flat..block grant is for budgeting mistakes..put into shortfalls
13:17 ~ 1/18/2011 8:30:29 AM ~ Buchanan: Situation has not occurred before. Health care increases adjustments to employer paid benefits Budget provided for increase to manage the change First time that budget office proposed managing account differently.
14:24 ~ 1/18/2011 8:31:36 AM ~ Nicholas: Block Grant: Every biennium, go through reconciliation with A&I..net zero process..explanation of adjustment of block grant
15:15 ~ 1/18/2011 8:32:28 AM ~ Don Richard: Accomodate all increases relative to work force changes..3 million adjustment in line item..1 million for retiree health care insurance.. all of those changes cost 10 million Source of concern: change in the interpretation of..
16:34 ~ 1/18/2011 8:33:46 AM ~ Nicholas: process in general Go through every line item..negotiation to establish block grant level Health insurance..if it was X dollars and we gave you X + 1 the 1 went into the block grant. A&I position ..block grant is a known amount Salary component Legislative action, then A & I adjusts block grant No cola on block grant..increased only by appropriation for salaries or some other component
18:36 ~ 1/18/2011 8:35:48 AM ~ Don: correct and consistent with other agencies
18:46 ~ 1/18/2011 8:35:58 AM ~ Nicholas: Block Grant..any other adjustment to block grant
19:07 ~ 1/18/2011 8:36:19 AM ~ Don: adjustment for equipment
19:15 ~ 1/18/2011 8:36:28 AM ~ Richard cox: Yes....
19:23 ~ 1/18/2011 8:36:35 AM ~ Nicholas: Block Grant ....
19:55 ~ 1/18/2011 8:37:07 AM ~ Don: correct
19:59 ~ 1/18/2011 8:37:12 AM ~ Nicholas: Insured like other state employees
20:09 ~ 1/18/2011 8:37:21 AM ~ buchanan: correct
20:15 ~ 1/18/2011 8:37:28 AM ~ Nicholas: Need discussion of controlling health care costs sometimes budgeted for increases ..?
20:41 ~ 1/18/2011 8:37:54 AM ~ Richard: Did build in an increase in health insurance for all state employees, including the University. Increase far and above projections
21:09 ~ 1/18/2011 8:38:21 AM ~ Nicholas: State is paying for 85% of health care insurance. A&I ..talk about monitoring Increase greater than amount budgeted Buchanan's perspective?
22:03 ~ 1/18/2011 8:39:15 AM ~ Buchanan: Health care cost skyrocketing Have to aggregate increased cost across thousands of employees
22:34 ~ 1/18/2011 8:39:47 AM ~ Pedersen: ball park figure for amount budgeted
22:45 ~ 1/18/2011 8:39:57 AM ~ Richard: I do not have
22:52 ~ 1/18/2011 8:40:04 AM ~ Nicholas: want an assessment of what happened..how we manage costs..this sets reimbursements for schools..whether schools are in our plan or not..rolls into school foundation accoutn.. huge numbers
23:33 ~ 1/18/2011 8:40:46 AM ~ Edmonds: Increase across all state employees..why is UW asking for more money? some other issues?
24:08 ~ 1/18/2011 8:41:20 AM ~ Richard: There is a request from A&I for additional money..2.7 millino from GF, gets leveraged by federal funds...5 or 6 million
24:44 ~ 1/18/2011 8:41:56 AM ~ Nicholas: Increase in costs will go across 8000 employees or more, will be more because we include teachers. Committee must understand impact of increase Ralph needs to talk about school side so we get a full picture Part of benefit package is the health care plan We appropriate the 85%. If increase ocurs in between,...employees pay for increase
26:28 ~ 1/18/2011 8:43:40 AM ~ Richard: Correct
26:34 ~ 1/18/2011 8:43:46 AM ~ Nicholas: try to keep pace
26:40 ~ 1/18/2011 8:43:52 AM ~ Berger: Rates escalated.
27:55 ~ 1/18/2011 8:45:07 AM ~ Nicholas If there is a health increase, that is through A&I, not UW. If there
28:44 ~ 1/18/2011 8:45:57 AM ~ Buchanan We do have a wellness program
29:14 ~ 1/18/2011 8:46:26 AM ~ NIcholas Next topic
29:23 ~ 1/18/2011 8:46:35 AM ~ Buchanan One tire request for lab equipment for new lab. Some of the equipment that we would have normally budgeted for.... This is equipment necessary for the building to be cetified. That is the use for the $318,000. We do no that the project came in millions of dollars under budget.
31:51 ~ 1/18/2011 8:49:03 AM ~ Nicholas Does that reversion go to the Capital Renovation account.
32:21 ~ 1/18/2011 8:49:33 AM ~ Berger
32:39 ~ 1/18/2011 8:49:51 AM ~ Buchanan This is attributed to a different way we budget for the building. Mr. Cathcart did not feel comfortable to include those items in cap. con.
33:41 ~ 1/18/2011 8:50:53 AM ~ Nicholas Have you kept track of the savings on the lab. What is the budget for landscaping the front
34:46 ~ 1/18/2011 8:51:59 AM ~ Buchanan It is our intention to move the parking to the back and relandscape that area.
35:31 ~ 1/18/2011 8:52:44 AM ~ Nicholas That is across from the State Park. We could use the moneis
36:13 ~ 1/18/2011 8:53:26 AM ~ Mie That language was not inplace at that time. We planned to sweep those monies into the General Fund.
37:14 ~ 1/18/2011 8:54:26 AM ~ Nicholas We need to determine where those monies are sweep into. We all need to be in agreement.
38:18 ~ 1/18/2011 8:55:30 AM ~ Buchanan Continuing funds for library collections. The incremental imporovement of the UW library.
39:11 ~ 1/18/2011 8:56:23 AM ~ Nicholas Gov. recommended that amount be reduced by 1/2.
39:36 ~ 1/18/2011 8:56:48 AM ~ Buchanan It was 3 years ago. That was part of the expense. THe students stepped forward and voted for a tuition increase to support the library
40:56 ~ 1/18/2011 8:58:09 AM ~ Harshman What will it cost for the highest level.
41:22 ~ 1/18/2011 8:58:34 AM ~ Buchanan If you go to page 10, you can see how much it will costs.
42:03 ~ 1/18/2011 8:59:15 AM ~ Berger What is the disadvantage of receiving 1,8 mill.
42:29 ~ 1/18/2011 8:59:41 AM ~ Meier We have our annual budget I wonder what the annual budget is for these states. If it was done in one step, what would it costs
43:44 ~ 1/18/2011 9:00:56 AM ~ Buchanan Those states are fighting also with the budget deficiats.
44:34 ~ 1/18/2011 9:01:46 AM ~ Buchanan In order to move all at once, I must say that it is
45:25 ~ 1/18/2011 9:02:37 AM ~ Nicholas If you start looking at these other schools, they are medical schools etc. Is it realistic for us to compete with these type of schools. Why don't we use some of the electronic data bases
47:54 ~ 1/18/2011 9:05:06 AM ~ Buchanan WE have tried to participate in the electronic data out there. However, because we bring so little to the table, UW cannot join. You bargin yourself into these orgainization is with materal
50:05 ~ 1/18/2011 9:07:18 AM ~ Pedersen Great Western Area Alliance Does 1.8 mill. gain us access to 20 mill worth of material.
51:14 ~ 1/18/2011 9:08:26 AM ~ Nicholas WHat happens when we do this
51:34 ~ 1/18/2011 9:08:46 AM ~ Buchanan Students and Facality have access to more information
52:07 ~ 1/18/2011 9:09:19 AM ~ Nicholas Does this lack access effect what facality UW can hire?
53:08 ~ 1/18/2011 9:10:20 AM ~ Nicholas If we give 1.8 or 3.6 If 3,6 or 7.2
54:21 ~ 1/18/2011 9:11:33 AM ~ Berger Is that number sufficient or do you need more to cover maintinance.
55:04 ~ 1/18/2011 9:12:16 AM ~ Meier Can we make a seperate deal with Washington.
55:36 ~ 1/18/2011 9:12:49 AM ~ Buchanan We do have agreements with other schools.
56:26 ~ 1/18/2011 9:13:38 AM ~ Buchanan Next request is for permission. Natrona Co. has raised monies for Sell old buildings and build new in the vacinity of Casper College. Casper College has raised their 50%
58:41 ~ 1/18/2011 9:15:53 AM ~ Nicholas If it is approved do you have the specific budget language proposed.
59:20 ~ 1/18/2011 9:16:32 AM ~ Richards On page 27 of the handout We have a number of appendacies with different languages.
1:01:12 ~ 1/18/2011 9:18:24 AM ~ Buchanan Those are funds that we would put into the project. No other governmental entities are looking into it.
1:02:48 ~ 1/18/2011 9:20:00 AM ~ Nicholas When the 2 mill. goes into the project, does that make it a 18 mill. project. Does that money go into reducing the bonds.
1:04:28 ~ 1/18/2011 9:21:41 AM ~ Buchanan We will have a sginificant inrease in maintainance costs. We could also use the monies to reduce the dept.
1:05:30 ~ 1/18/2011 9:22:42 AM ~ Nicholas One option would be set aside a sinking fund to use as income for maintenance. We might want to look at the benefit of doing something that. WE will look at that.
1:08:18 ~ 1/18/2011 9:25:30 AM ~ Buchanan: Requested funds from legislature for operations and maintenance, other buildings the University will reallocate money from block grant for costs associated with those facilites Core academic facility: Art dept. new bldg paid for with bonds issued by UW..key instructional facility..back for operations and maintenance Not for Barry Center, School of Resources and energy..state matching program acquistions
1:10:20 ~ 1/18/2011 9:27:32 AM ~ Nicholas: ?
1:10:27 ~ 1/18/2011 9:27:39 AM ~ Buchanan: Planning funds for 2nd phase of Fine Arts..remodel and renovate fine arts building for performing arts..2.6 million ...
1:11:38 ~ 1/18/2011 9:28:51 AM ~ Nicholas: page?
1:11:46 ~ 1/18/2011 9:28:58 AM ~ Buchanan: page 1 of handout, pg 34 - 39 of UW budget..
1:12:15 ~ 1/18/2011 9:29:27 AM ~ Nicholas: call for questions
1:12:23 ~ 1/18/2011 9:29:35 AM ~ Buchanan: Final capital constructions 750,000 LCC and Sheridan College..shared facility on LCCC campus..Whitney Foundation and Sheridan College to expand Ag program 300,000 to look into Whitney Foundation offer..to acquire land, costs associated with program expansion Not acted on by State Building Commission or Governor Issue best held for the future when new administration is on board at LCCC. Sheridan County: Work needs to be done before decision by UW
1:14:48 ~ 1/18/2011 9:32:00 AM ~ Meier: Lease 500 acres and build on it?
1:15:00 ~ 1/18/2011 9:32:12 AM ~ Don: Yes, Whitney Foundation does not want to sell land.. Lease of $1 ...long-term that will go beyond life of building
1:15:38 ~ 1/18/2011 9:32:50 AM ~ Nicholas: unattractive proposal
1:15:51 ~ 1/18/2011 9:33:03 AM ~ Hastert: Whitney, LCCC, Sheridan College
1:16:10 ~ 1/18/2011 9:33:23 AM ~ Buchanan: 50, 000 for LCCC and 300,000 for Sheridan college
1:16:27 ~ 1/18/2011 9:33:39 AM ~ Von Flatern: Reducing amount for Sheridan?
1:16:46 ~ 1/18/2011 9:33:58 AM ~ Buchanan: yes
1:16:53 ~ 1/18/2011 9:34:06 AM ~ Berger: Can you continue talks with foundation and Sheridan College?
1:17:18 ~ 1/18/2011 9:34:30 AM ~ Buchanan: Will continue to talk even without funds. Opportunity to expand UW presence into NW Wyoming
1:18:05 ~ 1/18/2011 9:35:17 AM ~ Nicholas: Call for wuestions
1:18:22 ~ 1/18/2011 9:35:34 AM ~ Don: 4 additional items
1:18:29 ~ 1/18/2011 9:35:41 AM ~ Nicholas: ..
1:18:41 ~ 1/18/2011 9:35:53 AM ~ Don: pg 29 handout..all AML requests.. 50 million for STEM facility
1:19:17 ~ 1/18/2011 9:36:29 AM ~ Nicholas: call for questions STEM: State of Wyoming investing in facilities north of Lewis, Laramie vacating property discussion?
1:19:57 ~ 1/18/2011 9:37:09 AM ~ Buchanan: Discussions ongoing..in 50 year plan..acquire properties at or below appraisal,,still properties not willing to sell or not available. City is aware of intentions expanding to the North. Modify, alter or eliminate that street for adequate green space
1:21:21 ~ 1/18/2011 9:38:33 AM ~ Nicholas: property between 10th st and 12th st.
1:21:34 ~ 1/18/2011 9:38:46 AM ~ Buchanan: Own all land needed ..do not own all the property there
1:21:48 ~ 1/18/2011 9:39:00 AM ~ Nicholas: Map of property owned, Stipulation Anthropolgy building..15 million investment by state
1:22:24 ~ 1/18/2011 9:39:36 AM ~ NicholasL ....interest as a state
1:22:37 ~ 1/18/2011 9:39:50 AM ~ Buchanan: Laramie City council does not speak with one voice on thsi issue. Unresolved topic
1:23:02 ~ 1/18/2011 9:40:14 AM ~ Nicholas: help it along
1:23:07 ~ 1/18/2011 9:40:19 AM ~ Von Flatern: 65 or 66 million for building, time frame?
1:23:20 ~ 1/18/2011 9:40:33 AM ~ Buchanan: Original had 50 million for STEM facility and remaining to remodel existing labs. Gov recommendation for facility but not for remodeling..will be in the future
1:24:20 ~ 1/18/2011 9:41:32 AM ~ Von Flatern: Expected to be 65.8 million in total?
1:24:44 ~ 1/18/2011 9:41:56 AM ~ Buchanan: Request is for 50 for STEM facility
1:24:58 ~ 1/18/2011 9:42:11 AM ~ Nicholas: 20 million ... 402
1:25:08 ~ 1/18/2011 9:42:20 AM ~ Don: Forward funding for school of energy resources Wyoming should receive one more year of AML funding, planning for after that, through next biennium,..setting aside funds for future costs 10 miilion per year budget: 6 million for utilities and staff : 4 million for opportunities
1:26:31 ~ 1/18/2011 9:43:44 AM ~ Nicholas: Forward funding with AML funds... Level discussion request itself AML dollars..one more year receipts, not appropriated
1:27:08 ~ 1/18/2011 9:44:20 AM ~ Don: High level of confidence, Congress has not acted.. Beyond that is tenuous Obama opposed...
1:27:42 ~ 1/18/2011 9:44:54 AM ~ Nicholas: Strategically ..AML funding for operational costs in 13 and 14..issues for asking for dollars to be allocated for future funding
1:28:14 ~ 1/18/2011 9:45:26 AM ~ Don: ..Not a significant issue in the past...GE, WYcusp, believe OFM would approve the grant and set funds aside..Congress can dip into unexpended funds
1:28:56 ~ 1/18/2011 9:46:08 AM ~ Nicholas: AML dollars..problem with program with Senator Bebout
1:29:14 ~ 1/18/2011 9:46:26 AM ~ Don: Some projects can not use AML funding for: Private partner protecting intellectual property Match federal research dollars Can not set aside into saving account..paid on reimbursement basis Issue with Senator Bebout is to change account into spend down acct
1:30:23 ~ 1/18/2011 9:47:35 AM ~ Nicholas: amt Don
1:30:30 ~ 1/18/2011 9:47:42 AM ~ Don: 1.2 million appropriated in 2009, swap out with block grant funding..liability and property insurance ..spending AML funds for insurance premiums
1:31:04 ~ 1/18/2011 9:48:16 AM ~ Nicholas: 20 million...defer to next funding cycle, can we apply 20 million to the Gillete Water Project...
1:31:32 ~ 1/18/2011 9:48:44 AM ~ Don: Can spend on whatever you wish
1:31:42 ~ 1/18/2011 9:48:54 AM ~ Nicholas: pick up as operational dollars
1:31:53 ~ 1/18/2011 9:49:05 AM ~ Don: your preogerative
1:32:05 ~ 1/18/2011 9:49:18 AM ~ NIcholas: Do we have to identify a project?
1:32:17 ~ 1/18/2011 9:49:29 AM ~ Don: must identify project and can not set it into an account,
1:32:42 ~ 1/18/2011 9:49:54 AM ~ Steward: 50 million for STEM building..initial discussion, additional ongoing expenses, assured there would be none..now 3.5 million for operations...Can you build facility with that much less? Original comments for no additiona O&M?
1:33:51 ~ 1/18/2011 9:51:03 AM ~ Buchanan: recollection..no additional faculty..no additional personnel costs Estimate of costs: 400 to 500 thousand dollar range per year 3.5 million to be set aside Can use 45.6 million to construct STEM facility
1:34:49 ~ 1/18/2011 9:52:01 AM ~ Nicholas: Required set asides for maintenance..must be some funds generating revenues..sinking funds..amount, interest, type of dollars, how money used
1:35:20 ~ 1/18/2011 9:52:32 AM ~ Don: Barry center,...language modified...O and M handled within University block fund
1:35:47 ~ 1/18/2011 9:52:59 AM ~ Nicholas: there were some buildings with sinking funds
1:35:58 ~ 1/18/2011 9:53:10 AM ~ Buchanan: state matching funds...asking donors is non-starter for O&M funding...
1:36:24 ~ 1/18/2011 9:53:36 AM ~ Nicholas: ?
1:36:29 ~ 1/18/2011 9:53:41 AM ~ Von Flatern:: Sinking funds ..several yers ago..state projects
1:36:52 ~ 1/18/2011 9:54:05 AM ~ Nicholas: may not have been implemented
1:37:00 ~ 1/18/2011 9:54:12 AM ~ Von Flatern : community colleges
1:37:07 ~ 1/18/2011 9:54:19 AM ~ Bill: Permissive language allowing it, different institutions have tried to establish it..UW as Don stated
1:37:37 ~ 1/18/2011 9:54:49 AM ~ Nicholas: any sinking fund any place
1:37:47 ~ 1/18/2011 9:54:59 AM ~ Von Flatern: LCCC, Tech Center had sinking fund
1:38:01 ~ 1/18/2011 9:55:13 AM ~ Nicholas: Sinking fudn...endowment earmarked for maintenance Who has the monies, who holds the monies, who is investing them set aside money for on-going maintenance, who will invest maybe better to put in Foundation Investment group inside Univeristy to watch investment income
1:39:09 ~ 1/18/2011 9:56:21 AM ~ Buchanan: No - consolidated endowments with US foundation
1:39:41 ~ 1/18/2011 9:56:53 AM ~ Nicholas: Will be back at 12 will be here later in the evening okay with pace? Return at 12:00 - will continue with UW.