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.