JAC Agency Hearings JAC Index 01-12-18 am1 Friday January 12, 2018 Agenda: AM 1/12/2018 8:03:30 AM Call Meeting to Order Roll Call: All present: Dockstader, Driskell, Landen, Hastert, Burns; Burkhart, Larsen, Schwartz, Sommers, Walters, Wilson, Nicholas 1/12/2018 8:04:11 AM 045 – Department of Transportation Panos - State of department good but compressing. Changed policies to major maintenance and operations. Not meeting Federal standards for maintaining bridges. Nicholas – What states meet standards? Panos – Survey don’t meet capitalization, policies different but it is an apples and oranges for comparison purposes. Revenue situation different. Larsen – What are talking about with respect to bridges? Surely not ignoring critical things. Panos – Federal capitalizes surface program. Once this complete state responsible for keeping up infrastructure. For bridges have to achieve a score that are keeping up. Indicator of trend rather than permanent condition. WYDOT has had other agencies incorporated into it. In all areas are experiencing a needs deficit. Are reporting efficiency measures. Examples: innovative snow fence program, expanded private companies for maintaining of roads, expended buy-back program for equipment, minimum mileage for light duty vehicles Burns – Is there a new design for snow fences? Panos – If need for different design then create with contractors Larsen- Online driving inquiry system – is this available to employers in the state? If not, is it a possibility? Panos – It is and has been used in the past. Larsen – Who would visit to talk about it Panos – Contact me or Pat Lewis Walters – on light mileage increased to 150 thousand Panos - Did have this but preventive maintenance have increased with some vehicles. Panos – Monitors state facilities and anticipates reductions. Panos – Assess employee positions. Now 1850. Can make report available on efficiencies. Nicholas – Do you believe it of value to keep consultant or do internally? Panos – Not opposed to anyone taking a look. They have a robust program to improve whether a consultant or other. Panos- Chart on a year’s worth of money. Revenue: federal, dedicated state funding and other state funding. Expenditure: commission and legislative spending. Other states have similar structure in budget. Nicholas – Is policy don’t want local government controlling roads Panos- Part of the federal road structure and security implications Larsen – Impact more or less than hoped for? Panos – Removing general fund and replacing with fees. In proprosal $2M short each year. Can they take this hit? Efficences allow this but department funding compressing. Larsen - Impact? Panos – swap impact. If any of dollars (90/10 cost share) state need to keep the cost share in mind. Nicholas – If providing services exceeding value, look at more fees. Sommers – are taking evaluating ability of citizens to pay for fees Nicholas – Have seen no fall off Panos - AML funding authorized and have expanded $145M+; the remaining will be spend by March 2018 Larsen – Interest earned on that amount Byrne – Will get back to you A &I – WYDOT budget cyclical with interest in summer; loan provision can be exercised so under the threshold of the Federal mineral royalty amount. They are probably shallow on interest. Byrne - Interest $2.6 M Panos – State air service enhancement program in 5 communities. There is 60/40 match for funds. Budget reduced over a period but have had carry over fund, but this will runout in 2019. Driscoll – Highway patrol has had quite a few positions vacant. Panos – Have been looking at positions. Positions have more roll-over. Looking to see if should fill and see if go through process and stay. They have enough people to apply. Driscoll – Where running with 5 less on the road? Thank you. Nicholas – Clarify review of cuts. Where are carry over coming from and how much expending . Panos – Carry over from previous requests were down, but have been carrying over from 2009 and will run out in 2019. Nicholas – Determine saved and now spending. Burns – Money has to be there are not. Byrne – Will have to have money to pay for air service program . Have burned through money in program. Panos - $1.3 M in fund and $3M in requests. Three airports at risk for airline service. Burns – Part of the ENDOW recommendation is to set up a different type of system. What is the figure? Panos – Have money until July 30, 2019. New program has to kick in. Panos – Have proposed a new program for airline service. ENDOW will require a one time $15M corpus funding. State would not run an airline, but buying reliable capacity for fixed time and service. Corpus would last 10 years. Need to think how to provide a safety net and would costs be cheaper than how currently operating. Schwartz – Is 60/40 split what it would be going forward? Panos – Under model the cash costs would go down. Service would be improved, e.g., check a bag go through. Nicholas – What plan is ? Panos – MRGs set minimum agreements that have to be done each year by airport that have transaction costs and difference across the state. Airline keeps profits. It is one agreement for 10 years that they build on. It is bulk buying. Started running models 18 months ago with state airports. Nicholas – Service Panos – Von Flatern bill would develop a state RFP to define what service would like. Model shows 5 airports and then 3 others. Nicholas – Cost component – save $8M for $15M upfront Panos – yes Walters – raising of fees? Panos – Removal of $50M general fund and increased fees. Reported impact to 5 airport. Fees were mostly highway. Circumstances have changed, e.g., AML funds. Byrne - Aviation Improvement Program and Airport Service Program funding explained. The new approach is needed. Panos – If not had carryover would have impacted 5 airports Burns – What’s going with regional air transportation? Byrne – Pilot shortage re minimum flying requirements impact the regional airports. Involved in national discussion about changing flying requirements. Larger fleets are harder to fill. Panos – Other conditions are timely for us – Essential Air Service Program (continued barely each year by Federal program). If this program reduced or eliminated would have impact. The best platform is a 50 seat jet for the state. Those planes at end of shelf life. In last 18 months have remanufacture package that is now available. Burns – Give us a sense of national stage. Who has last air service Panos – Pierre has lost air service and other small cities. Have a task force and RFP to move this forward. Our RMGs are not guaranteed currently. Restrictions of 10 year agreement would eliminate this. Nicholas – How soon do you need to get off the ground? Panos – Current proposal have task force and proposal to be effective July 1, 2019. Nicholas – Guarantee, loan – what’s the requirement? Panos – Would work with legislative staff to work out the model of how this would be done. Model bleeds off the $15M. Landen – Feels like more urgency on the front end Panos – If oar in water as of July 1 of 2018 it would work. Nicholas – Why not task group by March? Landen – Expedite the proposal Walters – Is need for task force at all or can you go forward with concept Panos – Have talked about it but want to make sure direction is included from the legislature and local government. How you direct it is up to legislature but important for local engagement. Nicholas: Can draft a footnote to appropriate the money in budget bill Panos – would take any instruction Dockstader – What’s in the current draft Panos - make sure it dovetails Walters – if $15M from ENDOW, assume replenishment from MRGs? Or apply to agreement? Panos – Air service program should include opportunities for growth of service so replenishment may not be possible. But communities could also contribute. Right now just shore up the current status until bottom drops out. Nicholas – Current plant is on top of the $1.3M. Wilson – ENDOW should look at workforce issues. Was there discussion of commercial pilot education? Panos – Yes, there has been conversation with community colleges. Wilson – Is there a further step or just germinating? Panos – Have a program with Workforce Services in the trades. Need applicants in mechanics and other trades. May be part of the package with airlines. 1/12/2018 9:10:06 AM Panos – WyoLink update: , new hires, capitalization realized with Federal funding, construction to build 16 towers in process, outreach to local governments, $2.7M hardware costs saved in contracts, and more agencies joining WyoLink . The have been building relationships and stabilizing WyoLink efforts. Nicholas – Billing Panos – Save on maintenance activities and $2.7M paid for these activities to July 2018. Users will state incurring costs in July. Sommers - Discussion on getting through one more cycle? Nicholas - Discuss billing and how set up Byrne – Will bill hardware and software costs. $4.6M. Local portion is $2.7 M of that. Nicholas – What if mandate billing over full participation Panos - $2.7M spreadout over all entities. Don’t have analysis. Possible that some would drop out. Larsen – Are you feeling encouragement throughout the state or challenges? Panos – He is hearing both in the state. Something is needed in stabilizing user participation. Interoperable communication is essential. Larsen – Consumers concern is what? Panos – Operational integrity was the hurdle, but is being eliminated. Biggest issue from county commissioners is money. We can’t afford is what he hears at meetings. He sees this as fixable. The last thing is modernization on an ongoing basis. How fast and what does it cost? Spending can be controlled. Wilson – Would FirstNet concept about with respect to WyoLink? Panos – Combined. Build ability to “load on bags.” They are at the table for FirstNet. Sommers – If he had a recommendation for moving forward what is it? Panos – What DOT has been instructed to do to date is on the right path. Will bring forward the issues as go along. Listen to constituents and what they have. Trying to lower cost , expand users and make smooth for local governments. 1/12/2018 9:28:52 AM Panos – WYDOT operates RIS, the system accessed by numerous law enforcement agencies, county clerks, Federal agencies, etc. System developed on COBOL; it is increasingly difficult to integrate changes with this old technology. It is hard to fix and find trained staff. They are doing studies about modernization. Current fees are minimal about $1.5 M year and is insufficient to modernize or capitalize. Nicholas – Why not raise the fees – what’s reasonable? Panos- Will report back to you. Nicholas – Can some seed monies be used to make it easier for everyone? The report should include how much can be obtained from Federal dollars? Make sure that rationale addresses it. 1/12/2018 9:33:27 AM Break 1/12/2018 9:54:38 AM Nichols – Has WYDOT experimented with size of cross braces? Panos – Yes they are looking a performance on drifting and how fence design works. 1/12/2018 9:56:01 AM Hastert – Status of federal highway fund Panos – Federal Highway fund will be insolvent by 2020. A significant effort in Washington D.C, is underway and how formula funding is needed in rural states. It is not settled. This is the condition of the Highway Trust Fund for years. Hastert – Are we maximizing all the federal dollars we can for highways? Any barriers? Panos - They are maximizing federal dollars. They pull from that money to match. If initiative goes forward and puts more money than the match will change. They want more burden to move to the states. How will they get us ready? If ask to do more in the transportation? Or a competitive program where rural states can’t compete? Hastert- Shortfalls - alternatives for funding Panos- Efficiency programs are addressing and there are other things in the report with regards to looking at segments of roads as state highways that should not be in the system, e.g, segment to golf course. Indexing of fees is another area addressed in the efficiency reports. Hastert – Would you elaborate on the penny? Panos – State highway user fees for fuel taxes is addressed in the efficiency report. Study showed revenue generation if implemented would have cost 1 penny more. Nicholas - Do surrounding states do indexing? Hastert – Workforce needs emphasized. Sommers – Thanks for efforts in wildlife safety efforts. Have someone for legislature involved with work group. Panos – WYDOT is asking for spending authority. Byrne – Budget summary table is on page 4. Exception requests 99 computer replacements and drivers license funding swap, card production entirely from highway funding. Nicholas; In a nutshell, describe commission. Byrne – Transportation commissioners oversee funding of statutory areas . Commissioners represent various occupations . Briefly went through pages 1-14 Nicholas: Discuss fiscal year. Byrne – WYDOT operates on the Federal fiscal year. Provide reports also to state fiscal year as required. Page 16 includes exception requests. Page 17-18 has computer exception request. Page. 20 no exception requests. Nicholas: - how may attornedys Byrne – three Byrne – Page 25 does include an exception request., Page 27 budget summary table for units. Nicholas – Because of drivers licenses requirements under Federal regulations, are there any wait times as there were initially. Panos – Sometimes have issues. All in all it is running quicker. The replacement of RIS is of a concern. Problems occur because of the system’s operation. Wilson – When reply for concealed carry permits, does WYDOT have receive revenue? Panos – Will have to check. Larsen – Complaints he gets is for drivers licenses. As he is talked to the department, he is pleased with response staff. Burns – ID for legislatures helps in checking in to hotels. Landen – He remember the REAL ID bumps and bruises. Is the rotation of getting everyone now brought into it. Panos – yes Bryne – No exception requests for support services. P. 31 includes exception for computer replacement and kiosks. P. 32 addresses the request for card production re Federal funding swap Burkhardt – Is this one time? Bryne – ongoing Byrne – a little over 100,000 card Burkhardt - money that will take away from roads Byrne yes Byrne - P. 35 no exception request. P. 39 Exception request for computers. Byrne - P. 42 exception request for computers. Sommers - He notices computers on 5 year rotation. Byrne- Yes they are 5 year replacement cycle. There are some challenges. It is working for them right now. Do have to replace hard drives and monitors at times. Sommers - What is maintenance contracts Byrne- Three year warranty – use ETS and in the field use local contracts in some cases Panos – Considering options with ETS Byrne – P.44-45 no exception requests; P. 47 includes replacement request for computer. Larsen – Is $737 cost adequate Byrne – It is in offices where request; some programs require more robust computers Burkhardt – What funding is available for state highways from other state units? Panos – There is some opportunity and they are talking with other agencies. Nicholas – It is not unrealistic to have a fee from these agencies? Byrne – P. 49-51 includes a budget replacement requests for computers. P.52-54 Strategic Performance Improvement. Nicholas – aren’t you already doing this? Panos – Helps with continuous improvement efforts. They are navigators to help with culture. There is also a requirement to have a unit for this purpose. Larsen – Arrows to move out of lines? Panos – It is Federal requirement. Bryne – Exception request on 53 for unit. Byrne:- p.56 exception request for computers. Byrne - p. 60 exception request for computers Burkhardt – Are transportation fees for radioactive wastes Federal? A&I – The $200 fee is the State’s. Nicholas – Byrne- No they are not. Nicholas – Where are funds from? Byrne – Believe it is LSRA Richards – It comes out of appropirations . Bryne – no other exception requests until p. 78 Nicholas- How many pilots Bryne – Seven Bryne – 30-40% in response to Nicholas question Nicholas – How are airport improvement funds generated and distributed Bryne – Federal and may be from three sources with the rest from state. Nicholas – when guarantee seats how much do they increase dollars? Bryne – There would have to be significant Nicholas – the greatest impact below 10K Bryne – No exception request until p. 89 for a computer replacement Nicholas – when given revenue increases with licenses, are the estimates you gave accurate? Byrne – Started July 1 so doesn’t have a trend yet. Recommends a full year of data. Nicholas – On S. College drive to I80 what tree planting assists are possible? Byrne- Can check into it. Panos- Federal requirements for set asides. Nicholas – Requested a local team to investigate. Burns – He notices I90 and takes a short cut and suspects other short cuts by truckers. Panos – Shortcuts are used all the time. They are including in their options. Panos – Thank you to legislators, governor’s staff and LSO staff for assistance and direction. Landen – Right back at you. Walters – Uses Colorado Dept. of Corrections – what will it take to get it back Panos – Only for embossed plates and will look at that this year Walters – Sponsorship at Montana State – Why? Byrne – It was a research project where they have expertise. Panos – They do work with the University of Wyoming. Burns – What is your perspective on license plates? Panos – Other states have more flex with license plates. The department has forwarded a number of efforts regarding Yellowstone National Park . Looking at identification and revenue. Probably will go forward if it is a source that will generate revenue. Nicholas – Are you really covering all the costs for administrative effort? It should be a revenue enhancer. Need to know what all the costs are for each. Panos – Looking at them from a business case point of view and will do each time. Burkhardt – What is cost of specialty plate renewal? Bryne – There is none. Burns – Is only half the cost of use of the state jet being charged to state agencies? Bryne – They are looking at the model – the variable portion beyond the fixed costs. Panos – When their staff fly often a portion charges back to the Federal government. 1/12/2018 11:07:32 AM Stretch Callbacks 011 - Department of Revenue 077 - Enterprise Technology Services 046 - Mixed Martial Arts 006 - Department of Administration and Information 205 - Department of Education 1/12/18 11:18 am Dan Noble, Director, 011 Department of Revenue Discussion of the Liquor Division and “pull-tabs” Landen: How do these pull tabs work? Burns: I’ve been working on this issue for years Wilson: Enforcement? 1/12/18 11:36 am Noble provides comments on the Government Efficiency report; outside counsel; performance metrics; analytics; reduction/addition to Revenue/Audit staff; software; aerial survey technology; collecting taxes for online transactions BREAK 1/12/18 12:20 pm 077 – Enterprise Technology Services Tony Young, Director, provides brief introductory remarks and refers the Committee to follow up information provided by ETS; in-state travel Walters: Microsoft vs. Google? 1/12/18 12:43 pm Young: TRP (Technology Replacement Program) Kevin Hibbard: Budget Division and bulk purchase of hardware Sommers: Procurement of software licenses 1/12/2018 1:07:57 PM 077-Enterprise Technology Services (continued) Larsen – Costs of software packages are going up; what is paid in the future should be in viewship Young – The agencies need to be cautious in entering into agreements; their agency not always consulted; however,partnering more should decrease costs. Bickell – ETS is rolling out new IT governance structure and would like to go back and study maintenance. She is exploring how to track it. Larsen –The increased cost of 3-5% per year is not realistic Sommers – A thoughtful study is important, but perhaps more authority is the way to go by centralizing and scrutinizing what’s going on. Young – They will take up with Governor’s office, but have to be careful that they are not taking over; they are interested in open source and client based software. Sommers – Yet to be touched is the school side. Who studies it? How do we plan for statewide procurement? Young – Schools, boards and districts may see things differently; need to be more collaborative. 1/12/2018 1:17:50 PM Break 1/12/2018 1:28:14 PM 046 - Mixed Martial Arts Pedersen – How do you want to proceed? Burns – Financial requirements from the Mixed Martial Arts Board is considered by some cost prohibitive for competitions. Pedersen – Commission began in 2012 the drive toward regulation; protecting sanctioned fights is the drive to uniform rules. Wyoming is first state to not have a boxing commission. Commission has now governed 35 bouts (had 15 month period with no bouts due to down turn in mineral industry). MMA.wyo.gov shows calendar of events. Solely run by license and fees. There is no reimbursement for meetings of board. Discussed the MMA industry and costs (licenses, fees, surety bond, inspector, event permit, ticket sales percentages, physician, fight officials, sanctioned equipment, and tests). Medical insurance of $2500 for each fighter is required. Nicholas – Any specific questions? Burns – Review costs for holding a fight. Pedersen – Reviewed costs Nicholas – What happens if there are unregulated fights? Pedersen – Penalize them. Burns – Given the costs and some of the cities can’t afford it. Pedersen – Gillette, Torrington, Pinedale have been most popular site. Nicholas – Why penalize the unregulated? 1/12/2018 2:06:01 PM 206 – Department of Education Shanor – Questions about National Board Certification program. Burkhardt – Explanation of how program works. Shanor – Teacher who seeks Elbogan Foundation, could be 1-3 years. Burkhardt – How is it administered? Shanor – The Foundation; Department only provides funds. Burkhardt – You only provide money? Shanor – Also sit in advisory capacity? Sommers – School districts can be reimbursed to some degree. How does the match work? Shanor – January 8, 2018 memorandum provides explanation on p. 4. $406K split between state and Elboen. Sommers – Stipend and new teacher growth . Shanor – January 10 communication includes a discussion of the statute that has morphed for this program into budget bills. Burkhardt – Seems clear in the statute, Shanor – Question to how statute governs this program. Sommers – Once they get this certificate they get a pay bonus. Is this in the budget bill? What applies? Shanor – No rule has been established. Reimbursement is by State and Foundation not by school districts. Professional Teachers Standing Boards- Rules were promulgated in 2001. Used to be in rules but the rules have changed. Burkhardt – 600 series page 10 of 23 question (middle of page) Carroll – will have to look into it. ElBogen Foundation – History of candidates participating and who they have supported in the process. Support first time candidate fees. Have advanced candidates who need to meet minimum score. Can recertify. Do not pay for those who renew. Help teachers to understand the process – workshops and providers who can work one on one. Provide live online for renewal candidates. Recognizing teachers – awards for schools and one time award for newly certified. Partnership with State through Sweetwater County #1. Have 608 nationally certified teachers in State (began with 47). McGuire – Core propositions guide each teaching field. Portfolio components include assessment, analysis of student work and articulation of goals for students, videotapes created of setting goals and how implemented and effectiveness; reflective practice includes formative and summative assessment. Job – Address questions about the statute. Intent behind the statute to jump start national board certification. Purpose was $100K for 50 teachers a onetime appropriations to reimburse fee. Money placed in innovative grant program and used for 47 teachers. Dept. of Education helped get program off the ground. Section is obsolete. Recommendation is to repeal this part. NCSL publication cited. Larsen – Roll out of new components and parts for certification. Is there a big gap between old and new. Job- Reformatted to make more affordable under teacher’s control. No gap between them. Carroll – The net of original award amount less the appropriation plus return of unused funds credited back to prior biennium budget. (refers to 600 series report on page 10 of 23) Nicholas – how was it built in? Wilmarth – Department of Education reimburses School districts. Nicholas – how much does it cost? Wilmarth – varies according to attrition Nicholas built into model? Wilmarth – separate appropriate not built into model Larsen – Any updates on special education LEAS Shanor – Discussing employees Bacon – Started process of getting information with special education directors, started conversation OSEF, nothing solid at this point. 1/12/2018 2:52:15 PM Break 1/12/2018 2:54:39 PM 006 – Department of Administration and Information Fausset – Questions related to exchange of data of insurance information from CIGNA and Montana Association of Health Care Providers. Some frustration expressed with flow and timeliness of data. The situation is remedied for the most part. He contacted three organizations: Wyoming Business Coalition on Health, Montana Association of Health Care Providers (national provider identifier that helps with reports was missing – information now delivered) and Department of Health (have been able to develop data reports and last missing component will help them continue to build process) and contacted CIGNA who have identified a key liaison to work with Wyoming and Montana. Questions from December now answered. Landen – Thanked Director Fausset for efforts. Helps shine a light on the costs. Regarding the contract if not specifically spelled out there seems to be reluctance to provide. Fausset – This is a new development; the contract with CIGNA was some time ago. The company is cooperative with the data. Getting the data in the format to use is an issue. Dept. of Health identified legal issues is use of data. It is extra work for CIGNA but they are cooperative in getting data. Wilson - A lot of data is good but not used is not useful. What struck her in looking at some data, how much clinical input for best practices? How see piece fitting in? Fausset – Department of Health is putting together report. If assistance is needed, contact CIGNA is have expertise. Wilson – Do we ask them to help us to sift through claims and appropriateness of practices? In involving CIGNA with data how they incorporate practices? Hays – CIGNA abides by medical best practices. Do check on necessity of hospitalization. Applies best practices in consideration. Wilson – Do Wyoming providers charge more? Hays – Has used data to compare practices and costs. Age is a factor in utilization of care. Government costs higher than private sector. Richards – On Monday there will be public comment on budget and CREG report in the morning . After lunch there will be the Governor’s letters and three bills for consideration. Agenda items for the rest of the week were reviewed. 1/12/2018 3:18:38 PM Adjourned