C.L. "Butch"
Otter
Governor
Lawerence
Denney
Secretary of
State
Lawrence
Wasden
Attorney
General
Brandon D
D Woolf
State
Controller,
Secretary
SCO > Board of Examiners > Board of Examiners Minutes
STATE BOARD OF EXAMINERS
MINUTES – Regular Meeting
March 17, 2009 – 8:55 a.m.
Borah Post Office Building, 204 N. 8th Street, 2nd Floor Courtroom

The regular meeting of the State Board of Examiners was called to order at 204 N. 8th Street, Boise, Idaho, at 8:55 a.m. pursuant to Idaho Code §67-2002 and by the order of the chair.

The following board members were present: Governor C.L. “Butch” Otter; Secretary of State, Ben Ysursa, and Attorney General, Lawrence Wasden. Controller, Donna M. Jones, Secretary to the Board of Examiners recorded the proceedings of the meeting.

Ms. Jones introduced the consent agenda items.
Mr. Wasden moved to approve the consent agenda. Mr. Ysursa seconded the motion. The motion passed on unanimous consent.

CONSENT AGENDA

1. Minutes - Approved
Approval of official minutes for the meeting of the Board of Examiners on February 17, 2009.
    2. Idaho Public Television - Approved
    Request approval according to Idaho Code 67-5328 (3)(c) to pay off 150 of Mr. Jeff Tucker’s 240 hours of overtime worked as Production Manager. The total cost of the requested pay-off would be $3,618.00 and the funding is available in FY09 from a Federal Communications Commission grant.

    3. State Tax Commission - Approved
    Request approval according to State Travel Policy and Procedures Section 9 to permanently assign vehicles to Tax Commission employees Matt Virgil and Robert Rios.


    REGULAR AGENDA

    4. State Treasurer - Approved
    Request for approval to issue the Fiscal Year 2010 Tax Anticipation Notes.

    Discussion: Treasurer Crane explained that Idaho’s credit rating has never been higher than it is right now and it is in large credit to the administration and the legislature during these economic times. Early on in the fiscal year Governor Otter made budget holdbacks and that is very impressive to the credit rating agencies because they know we are going to balance our budget. Mr. Crane said he was a little concerned late in the fall of whether the state would be able to issue the tax anticipation notes because of the fact that the municipal markets have tightened so much and whether there would be an appetite for our paper that we issue. Thankfully there will be an appetite for Idaho’s notes. It is good news for Idaho because our notes are high on the list for quality. Our borrowable revenues should total $2,453,100,000 of which we were requesting authority to borrow up to 75% of that amount. We anticipate it will actually be around the $600,000,000 range. Our coverage ratios will be very good. We pledge the fourth quarter revenues as collateral for our notes and that repayment account should be fully funded by anywhere from April 20-25 of this year. Once we go to market our notes should sell very quickly.

    Mr. Wasden asked if there was anything out of the ordinary for this year’s request.

    Mr. Crane answered that no, he has not seen anything particularly out of the ordinary except for the economic downturn which is affecting all of the states. The rating agencies receive a monthly report of our budget numbers from DFM. The rating agencies are well aware of how we are handling our budgets and they are impressed.

    Gov. Otter asked what the limitation is if the state over borrows and what the penalty is for that.

    Mr. Crane explained that we have to project what the deficit will be on November 15, which is 4 1/2 months into the fiscal year, and have to do that projection back in June when we are selling the notes. We have to be within a margin of 10% of that number that we project as the deficit, or the IRS will step in and take the arbitrage earnings. We work very hard with DFM and the Tax Commission in projecting what that number will be.

    Gov. Otter asked what Mr. Crane would say if we were to lay out a plan that said we are not going to spend any more than 33% of that in any one year.. How would it be viewed by the borrowing resources?

    Mr. Crane said it would be viewed very positively. He commented that last year it was pointed out that we had 14% of our general fund budget tucked away in rainy day funds and it was noted in their write up and we were given their top rating on our tax anticipation notes. The fact that we are not spending it all in one year will be noted in a positive light.

    Resolution: Mr. Wasden moved to approve item 4. Mr. Ysursa seconded the motion. The motion carried on a unanimous voice vote.


    INFORMATIONAL AGENDA

    5. Office of the Attorney General
    a. Notification that Cheri L. Bush, Attorney at Law, has been appointed pursuant to Idaho Code §67-1409 as a special deputy attorney general for the purpose of representing the State of Idaho in the matter of Kenneth Grieve, Gary Ferguson, and Charlie Warren.

    b. Notification that John W. Weil of the firm of Hooper, Englund & Weil, LLP, in Portland, Oregon, has been appointed pursuant to Idaho Code §67-1409 as a special deputy attorney general for the purpose of filing an amicus brief on behalf of the State of Idaho Department of Finance, in the matter of Summit Accommodators, Inc.

    c. Notification that Larry C. Hunter of the firm of Moffatt, Thomas, Barrett, Rock & Fields, Chtd., has been appointed pursuant to Idaho Code §67-1409 as a special deputy attorney general for the purpose of representing the Idaho State Board of Accountancy in the matter of Donald M. Lidstrom.

    d. Notification that Terry C. Copple of the firm of Davison, Copple, Copple & Cox, LLP, has been appointed pursuant to Idaho Code §67-1409 as a special deputy attorney general for the purpose of assisting the Idaho Department of Lands in a collection action arising from the abandonment of a commercial lease (MC-60660.

    e. Notification that Lawrence E. Kirkendall, Attorney at Law, has been appointed pursuant to Idaho Code §67-1409 as a special deputy attorney general for the purpose of representing the State of Idaho in the matter of Martin Walker.

    f. Notification that James W. McConkie, Jr. of the firm of Parker & McConkie in Murray, Utah, has been appointed pursuant to Idaho Code §67-1409 as a special deputy attorney general for the purpose of providing legal services, including representation, advice and consultation, to the State of Idaho, Office of the Attorney General, in a claim against Eli Lilly and Company.

    g. Notification that Joseph W. Steele of the firm of Steele & Biggs in Murray, Utah, has been appointed pursuant to Idaho Code §67-1409 as a special deputy attorney general for the purpose of providing legal services, including representation, advice and consultation, to the State of Idaho, Office of the Attorney General, in a claim against Eli Lilly and Company.

    h. Notification that Kenneth D. Lougee of the firm of Steele & Biggs in Murray, Utah, has been appointed pursuant to Idaho Code §67-1409 as a special deputy attorney general for the purpose of providing legal services, including representation, advice and consultation, to the State of Idaho, Office of the Attorney General, in a claim against Eli Lilly and Company.


    6. State Insurance Fund
    a. Estimate of the State Insurance Fund expenses to be paid by sight drafts for the month of January, 2009.
        Estimated expenditure for workers compensation claim costs, dividends and premium refunds
    $18,000,000.00
      Funds Expended in January, 2009
      Workers Compensation Claim Costs
    $11,247,040.61
      Dividend
    13,474,429.21
      Commissions
    0
      Policy Refunds
    559,277.93
      Total
    $25,280,747.75

    Estimate of the Petroleum Clean Water Trust Fund expenses to be paid by sight draft for the month of January, 2009.
        Estimated expenditure for Petroleum Clean Water Trust Fund
    $750,000.00
      Funds Expended in January, 2009:
      Payroll
    76,093.53
      Operations
    206,701.20
      Claim Costs
    44,528.97
      Total
    $327,323.70

    There being no further business before the board and on motion duly made and seconded, THE MEETING OF THE STATE BOARD OF EXAMINERS WAS ADJOURNED at 9:07 a.m.

    __________/s/ C.L. “Butch” Otter________
    C.L. “Butch” Otter, Chairman of the Board and
    Governor of the State of Idaho
    __________/s/ Donna M. Jones ____________
    Donna M. Jones, Secretary of the Board and
    Idaho State Controller

    A meeting agenda will be available at the Idaho State Controller’s Office, 700 West State Street, Boise, Idaho, two (2) working days before the meeting.

    If you have questions or would like to arrange auxiliary aides or services for persons with disabilities, please contact the Idaho State Controller’s Office at (208) 334-3100. Accommodations for auxiliary aides or services must be made no less than five (5) working days in advance of the meeting.

    The CONSENT AGENDA addresses routine items the board may approve without discussion.

    The REGULAR AGENDA addresses policy and program items the board may wish to discuss prior to making a decision.

    The INFORMATION AGENDA provides information only.

    The agendas are subject to change and the Board may move an item from one agenda to another.

    Page last updated on 04/22/2009 09:56:38 AM