File name: JACSupplementalBudget2011-2012_20110119_121935.dcr
Folder: C:\Documents and Settings\HAppropriations\Desktop\Recordings
1:53 ~ 1/19/2011 12:40:32 PM ~ Maxfield The JAC working with RIch would take that out of their hands. THere are no hard figures yet. We will get some figures to you tomorrow. We are not looking at major improvements at this time.
3:44 ~ 1/19/2011 12:42:23 PM ~ Berger Last week I took a tour and they are doing painting right now.
4:19 ~ 1/19/2011 12:42:58 PM ~ Nicholas I'll get over today or tomorrow to look at Governor's Manision
4:52 ~ 1/19/2011 12:43:30 PM ~ Cathcart I believe we sould be able to move forward with any of that.
5:25 ~ 1/19/2011 12:44:03 PM ~ Berger The bathrooms are really dated.
5:42 ~ 1/19/2011 12:44:21 PM ~ Maxfield WE will have those figures tomorrow.
6:08 ~ 1/19/2011 12:44:46 PM ~ Nicholas The next question, what about the public side.
6:31 ~ 1/19/2011 12:45:09 PM ~ Maxfield I think we should look at the option
6:55 ~ 1/19/2011 12:45:34 PM ~ Cathcart I agree. We have the plans to increase the public side for extra capacity. He reported that that expansion would be 6 million. However, no problem getting the private side done.
9:13 ~ 1/19/2011 12:47:51 PM ~ Nicholas If that is not a reasonable it will just take longer
9:47 ~ 1/19/2011 12:48:25 PM ~ Cathcart You could expadite that by
10:15 ~ 1/19/2011 12:48:53 PM ~ Nicholas The more we get done, the better off we are
10:34 ~ 1/19/2011 12:49:12 PM ~ Meier If we went to a whole new facility, what would the design costs be. Some sort of study compared to other governor's residences.
11:52 ~ 1/19/2011 12:50:30 PM ~ Chathcart With a new property it would be about 6 months Maybe we could get a firm to do in in 3 or 4 months.
12:58 ~ 1/19/2011 12:51:36 PM ~ Meier I think this would be a long term project
13:16 ~ 1/19/2011 12:51:54 PM ~ Cathcart
13:25 ~ 1/19/2011 12:52:03 PM ~ Maxfield I don't think we could get those done in one day.
14:20 ~ 1/19/2011 12:52:58 PM ~ Nicholas THere is part of me that says that the existing residence can be imporved. WE have other buildings that need to be considered.
16:31 ~ 1/19/2011 12:55:10 PM ~ Cathcart We met with first family..We talked about anyone else would do, change carpet, paint , upgrade kitchen. We just as well get the way they want it. We can get the figures once we know what the scop of work is.
18:07 ~ 1/19/2011 12:56:46 PM ~ Nicholas Maybe we could cut into an outside wall to move drywall in and out.
19:01 ~ 1/19/2011 12:57:39 PM ~ Cathcart We will take a look at that.
19:26 ~ 1/19/2011 12:58:04 PM ~ Nicholas Get rid of suspended ceiling.
19:46 ~ 1/19/2011 12:58:25 PM ~ Cathcart I would like to finish up the A&I budget.
20:55 ~ 1/19/2011 12:59:33 PM ~ Hays Two handouts The first one is to control costs Start with document Handout 051. It shows what the rate increase is. Averaging approximately 20% Rate increase, We wanted to reduce our excess and hence you end up with a double rate increase. Yes we did, approximately a 11% increease. Next year I would increase of 6-9%.
25:55 ~ 1/19/2011 1:04:33 PM ~ Harshman The fast majority are in the
26:26 ~ 1/19/2011 1:05:04 PM ~ Hays When I first come on the program X years ago, we only had two programs. We have added two more.
27:26 ~ 1/19/2011 1:06:04 PM ~ Harshman You have that sole prority??
28:01 ~ 1/19/2011 1:06:39 PM ~ Hays A&I makes that decision
28:17 ~ 1/19/2011 1:06:55 PM ~ Harshman THe drivers are to present options.
28:51 ~ 1/19/2011 1:07:30 PM ~ Hays Its time for the $350 deductable to go away Basically I show that For pre-medicare retires For every $1 collected $1.49 is paid out.
30:41 ~ 1/19/2011 1:09:19 PM ~ Nicholas You know that the active employees are paying the retirees
31:42 ~ 1/19/2011 1:10:20 PM ~ Nicholas going back to the front sheet
31:58 ~ 1/19/2011 1:10:36 PM ~ Hays Most likely, we will make a same dollar adjustment.
33:00 ~ 1/19/2011 1:11:39 PM ~ Nicholas That has to do alot with the plan
33:25 ~ 1/19/2011 1:12:04 PM ~ Hays The rate differential
33:49 ~ 1/19/2011 1:12:28 PM ~ Nicholas Do you have a chart that shows..... Depending on your circumstance, you might pay more money that your your conterback.
36:16 ~ 1/19/2011 1:14:55 PM ~ Hays We have mitigated We have platoed I remember when the plan was to expensive for some employees. Ist that extra $500 per family When you talk about adverse The indivedual you use, are the young and healthy. I believe you would the same place. Ifare spending more money for fewer people, is that they to do an anylsis,
41:03 ~ 1/19/2011 1:19:42 PM ~ Hays
41:52 ~ 1/19/2011 1:20:30 PM ~ Nicholas: Obligation to know surmise is accurate..some degree of probablity
42:08 ~ 1/19/2011 1:20:46 PM ~ Hayes: will work on it
42:13 ~ 1/19/2011 1:20:51 PM ~ NIcholas: Premedicaid retiree...Which districts have joined.
42:28 ~ 1/19/2011 1:21:07 PM ~ Hayes: Natrona County Oct 1, 2010
43:00 ~ 1/19/2011 1:21:38 PM ~ Nicholas: Has introduction changed payouts..assimilated?
43:13 ~ 1/19/2011 1:21:51 PM ~ Hays: Utilizaton of own plan booked into rates...almost the same. as state..no impact
43:40 ~ 1/19/2011 1:22:19 PM ~ Nicholas: Health care costs...you bring it, we pay it...Started changing 8 or 9 year again. Time to llok at deductible..offer options to maintain costs..Interim task
44:31 ~ 1/19/2011 1:23:10 PM ~ Hays: How much involvement does committee want in making choices:
44:47 ~ 1/19/2011 1:23:25 PM ~ Hays 189 million dollars
44:56 ~ 1/19/2011 1:23:34 PM ~ Berger: Acute hositilazation
45:08 ~ 1/19/2011 1:23:47 PM ~ Hays: in patient basis ...3% up tick..most expensive place is hospital
45:32 ~ 1/19/2011 1:24:11 PM ~ Nicholas: Two ways..employees can control plan..we will decide employer contribution or we get involved in everything...plan too rich for state employees compared to private sector...85/15..change to 80%..do not want us looking at one side of equation....
46:51 ~ 1/19/2011 1:25:29 PM ~ Hays...If a few of you want to be involved in the design process, begins in May....
47:22 ~ 1/19/2011 1:26:00 PM ~ Nicholas: Employee plan gave a few people...Chris make a recommendation of level of participation..will figure out how to staff
47:55 ~ 1/19/2011 1:26:33 PM ~ Harshman: ...20% increases, utilization or plan administrator or other factors
48:26 ~ 1/19/2011 1:27:04 PM ~ Hays: Nothing for affordable care act...plan changes required have been made...waiting for actual utilitzation
48:56 ~ 1/19/2011 1:27:34 PM ~ Berger: Preventive program impact on premiums and participation
49:09 ~ 1/19/2011 1:27:47 PM ~ Hays : Handout 50..midway through,..colored charts...two years of program completed..increased participation, significant decrease in premium if particpates...End of last session, 6072 individuals qualifited for reduction, without NC
50:12 ~ 1/19/2011 1:28:50 PM ~ Nicholas:
50:46 ~ 1/19/2011 1:29:25 PM ~ Hays: We are seeing an increase in participation..behavior change...monthly programs...avoid chronic care illness.. have not seen a lower utilzation rate Sick leave data ..uptake from benchmark data before program..not actual reduction in sick leave used Continue to monitor
52:21 ~ 1/19/2011 1:30:59 PM ~ Nicholas: retirees from NC receive benefits
52:34 ~ 1/19/2011 1:31:12 PM ~ Hays: Retirees were allowed to join...NC paid through Oct 1..we pick it up
52:57 ~ 1/19/2011 1:31:35 PM ~ Nicholas: NC joins, we subsize retirees. NC will pick it up
53:17 ~ 1/19/2011 1:31:55 PM ~ Hay:s yes for ones already retired. Nicholas: Other districts benefit
53:42 ~ 1/19/2011 1:32:21 PM ~ Hays: consisten plan
53:49 ~ 1/19/2011 1:32:27 PM ~ Nicholas: 1 dollar per year subsidy
54:00 ~ 1/19/2011 1:32:38 PM ~ Hays yes NIcholas: Deduct 1% of salaries to fund future cost of retiree health plan
54:25 ~ 1/19/2011 1:33:04 PM ~ Hays: General Fund is not providing additional funding for retirees of NC...after Oct 1, will be paid for up to 1% ..current rate is .6%..
55:03 ~ 1/19/2011 1:33:42 PM ~ Nicholas: Dsitrict would pay Hays: Correct Nicholas: Benefit pick up same plan as state retiree Hays: yes Nicholas: Retiree benefit appropriation goes to A & I..assessed to district Hays: districts Nicholas: paid for retirees, charged to district Hays:Yes
56:46 ~ 1/19/2011 1:35:25 PM ~ Nicholas: NC assessment of basis
56:59 ~ 1/19/2011 1:35:38 PM ~ Hays: monthlyu and annualized
57:06 ~ 1/19/2011 1:35:44 PM ~ Nicholas: Health Savings Account
57:14 ~ 1/19/2011 1:35:52 PM ~ Hays: Have two plans....
57:28 ~ 1/19/2011 1:36:06 PM ~ Nicholas: Investigated ...fully dependent on ..
57:49 ~ 1/19/2011 1:36:27 PM ~ hays: No employer contributions into account..premium difference, employee can take the difference and put in plan Example: Charge same contribution....no matter deductible limit...will put x dollars into health plan if you select high deductible plan..future options
58:56 ~ 1/19/2011 1:37:35 PM ~ Pedersen: Health Reimbursement Plan: use it or lose it ..portability
59:16 ~ 1/19/2011 1:37:54 PM ~ Hays: HSP is portable...health reimbursement account..available during employement..reverts to program
59:52 ~ 1/19/2011 1:38:30 PM ~ Meier: Why use it or lose it?
1:00:00 ~ 1/19/2011 1:38:38 PM ~ Hays: Federal requirements set use or lose
1:00:11 ~ 1/19/2011 1:38:49 PM ~ Meier: all into medical savings plan
1:00:22 ~ 1/19/2011 1:39:00 PM ~ Hays: Federal qualifications..to be eligible to contribut to Health Savings Account
1:00:47 ~ 1/19/2011 1:39:25 PM ~ Berger Continue Chris: 2.7 million apprpropriation request. - fund in audiotr's officer, following Governor's office, A & I and ...approval..General Funds would be tapped when all other funds in agency have been used.
1:02:05 ~ 1/19/2011 1:40:43 PM ~ Nicholas: Increasing contributions..flows through to school foundation...
1:02:21 ~ 1/19/2011 1:40:59 PM ~ Bill: I think yes..you leverage whatever funds... 2.7 million to catch it as agencies are not able to fund that increase coudl be necessary for over and above agency budget same applies to agencies non-funded
1:03:13 ~ 1/19/2011 1:41:51 PM ~ Nicholas: Did not formally authorize increase, appropriate funding for difference in premiums..if not would change percentage
1:03:39 ~ 1/19/2011 1:42:17 PM ~ Bill: If monies appropriated in 100 series... floating employee base..need 2.7 in addition to float in insurance series
1:04:15 ~ 1/19/2011 1:42:53 PM ~ Nicholas: ratifying increase in float and appropriate new dollars...carry through to school foundation program..contribution going up the same as for the district so foundation contributions go up...
1:05:10 ~ 1/19/2011 1:43:48 PM ~ Bill: right..build up the standard budget in 13 and 14.
1:05:28 ~ 1/19/2011 1:44:06 PM ~ Nicholas: Nelson look at increases so people are aware of it...other committeees...aware of increases coming automatically
1:05:56 ~ 1/19/2011 1:44:35 PM ~ Meier: Data from school districts if their insurance came up 20%...?
1:06:17 ~ 1/19/2011 1:44:56 PM ~ Hays: School Districts --2 have increases....mid year 20%..not isolated to the state plan
1:06:47 ~ 1/19/2011 1:45:26 PM ~ Berger: private sector
1:06:53 ~ 1/19/2011 1:45:31 PM ~ Berger: market pay and perfoermance
1:07:24 ~ 1/19/2011 1:46:02 PM ~ Chris: pg 19 in agency budget: steps in classification and steps....series of steps towards full implementation develop classification system 2nd step: determine and update market pay...survey by Hay group in 2008...updated in Jan 2010..compareters job by job 3rd step: to fund it..why we are here July 10 85% of market pay for classified employees I
1:10:11 ~ 1/19/2011 1:48:50 PM ~ Nicholas: Hit by category, letter changes old rec and new rec
1:10:26 ~ 1/19/2011 1:49:04 PM ~ Chris: ok Nicholas: pg 18 2.7 ..
1:10:50 ~ 1/19/2011 1:49:29 PM ~ Chris: stayed same
1:10:58 ~ 1/19/2011 1:49:36 PM ~ Nicholas: 13.4 changed
1:11:05 ~ 1/19/2011 1:49:43 PM ~ Chris: yes...Governor Mead proposal ..90% of MPP ..market policy position Affect 3000+ employees...9.9 million dollars....
1:12:42 ~ 1/19/2011 1:51:20 PM ~ Meier: Youth Challenge Program.....ascertain that market pay dollars did not transfer from A & I to the guard...
1:13:25 ~ 1/19/2011 1:52:03 PM ~ Chris: All agencies had to go to 85% from within their budget..no additional appropriations.. tight fit....middle of 85% level..In Governor's Mead recommendation, 70,000 in school foundation funds, 30 positions, 23 Challenge program..National Guard component is included in that school foundation amount...
1:15:24 ~ 1/19/2011 1:54:02 PM ~ Meier: Numbers not matching..what is that salary component>
1:15:42 ~ 1/19/2011 1:54:21 PM ~ Nicholas: Youth Challenge: appropriated a component..some % from federal dollars..state provides salary increase..if fed govt ...will kick up federal as well. Some are grant ...salary built in at entry lvel..mid year increase..no mechanism for those fed employees to get salary increase until next budget cycle...Guard..not fair, state should pick up difference ..have never done that..do not make up difference in federal salaries..lag....part of what you get...School Foundation Sharing: 20% of salaries would kick through...if you adjust your share...fed gov will like that change in share.. If change for one entitiy, ramifications for all agencies
1:18:26 ~ 1/19/2011 1:57:05 PM ~ Meier: Totally inflexible...keep program going...not enough money to run...Federal funds not there ..mandate to increase salaries..options limited, none good..only option to lock doors...spend 17,000 in program or 50,000 in .CHIN program
1:19:41 ~ 1/19/2011 1:58:19 PM ~ Richard Cox: Office working on analysis...this afternoon...bottom line is military dept has several avenues to deal with internally 15 positions on frozen list..GF money is sitting there and building up in the 100 series..flex B 11..That money can be changed over. Vacancies above the 15...5 from within the program has generated in excess of 30,000 which would cover it Appears they should be able to make ends meet.
1:21:22 ~ 1/19/2011 2:00:00 PM ~ Chris: Mr. Faucet..jump in Berger: confer with co chair..finsih human resources...
1:22:03 ~ 1/19/2011 2:00:41 PM ~ Chris: market pay and merit pay...
1:22:14 ~ 1/19/2011 2:00:52 PM ~ Nicholas: Fund it, follow gov's rec or fund it and put conditions on it...plan administered..
1:22:35 ~ 1/19/2011 2:01:14 PM ~ Berger: Upond adjournment come back
1:22:45 ~ 1/19/2011 2:01:24 PM ~ Nicholas: Late night Berger: Upon adjournment Chris and Mr. Faucet return... Nicholas: Mark-up?
1:23:39 ~ 1/19/2011 2:02:17 PM ~ Bill: language this weekend to approve ..bill late next week..markup by Friday afternoon...
1:24:00 ~ 1/19/2011 2:02:38 PM ~ Nicholas: Corrections at 8:30 Berger; Corrections at 8:30 tomorrow morning...Thank You.