STATE BOARD OF EXAMINERS
MINUTES – Regular Meeting
March 18, 2014 – 8:55 a.m.
Borah Building 2nd floor courtroom
The regular meeting of the State Board of Examiners was called to order 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. State Controller Brandon Woolf recorded the proceedings of the meeting.
Mr. Woolf introduced the consent agenda items.
Mr. Wasden moved to approve the consent agenda. Mr. Ysursa seconded the motion. The motion passed on a unanimous voice vote.
1. Minutes – Approved
Approval of official minutes for the meeting of the Sub-committee to the Board of Examiners on February 18, 2014.
2. Department of Administration – Approved
a. Request for recognition of assignment according to Idaho Code §67-1027 from Peter Stavros to Flowing Wells LLC. (Idaho State Liquor Division is the Lessee.)
b. Request for recognition of assignment according to Idaho Code §67-1027 from Start Development III, LLC to Three Twelve Idaho LLC. (Idaho Department of Correction, Probation and Parole is the Lessee.)
3. Bureau of Homeland Security – Approved
Date to Board
Suspected Drug Lab
Team was dispatched to respond to a suspected drug lab.
(TWIN FALLS COUNTY)
Unknown White Powder
Unknown White Powder discovered in Post Office.
Item 4 has been placed on the Regular Agenda.
5. Idaho Tax Commission – Item has been withdrawn by the Idaho Tax Commission
Request for approval pursuant to Idaho Code §63-3067(2) for transfer authority from the general fund to the refund fund. To accomplish this, the Commission asks that the transfer authority be for up to $20,000,000, in increments of $10,000,000 as needed.
6. Idaho State Police – Approved
Request approval pursuant to Idaho Code §67-5302(20) to add overtime for police escorts during the Idaho Patriot Thunder 2014 event, and security for the Snake River Canyon Jump event to the previously approved list of grants, projects, and agreements.
7. Idaho Department of Correction – Approved
Request that two vehicles be permanently assigned to the Community Corrections Fugitive Recovery Unit.
8. Lava Hot Springs Foundation – Approved
Request pursuant to Idaho Code §67-4402 to approve the lease adjustment administered by the Foundation to expand the land developed, extend the term of the lease until 2064, and adjust the rent to a flat rate rent adjusted every five years based on the Consumer Price Index.
4. Office of the State Treasurer - Approved
Request pursuant to Idaho Code §63-3201 to issue tax anticipation notes that will not exceed 75% of the anticipated income or revenue from taxes during FY2015.
Discussion: Treasurer Crane explained that by November 15th we have expended about 60% of our budget, but have only received 38-40% of our revenues, which is what creates the general fund deficit. We issue the tax anticipation notes to cover the deficit and then we pledge the fourth quarter revenues to repay the notes. He said that we anticipate borrowing in the neighborhood of $500 million, which has typically been the size of the note issued for several years. It is largely based on the fact that we have 2/3 of the school district payments that go out the door by November 15th. There is a bill that has been working its way through the legislature, SB1323, which proposes to change the percentages a little bit and front load more of the payments earlier in the year. This change would not affect the size of the tax anticipation notes.
Gov. Otter asked if the early repayment is going to affect our ability to make the two school payments.
Mr. Crane responded that it should not. It should have a positive impact for the ratings of the state because it will reduce the general fund cash flow deficit especially in November.
Mr. Wasden noted that the request is generated because of a timing difference between the expenditures and the income cash flow. The request appears to be standard and fits within the parameters of what has been approved in the past.
Ms. Laura Steffler commented that the TAN is issued due to cash flow purposes. The TAN requested to be issued this year is the same that has been done in prior years.
Mr. Crane noted that by law the state can borrow up to 75% of our projected revenues, but we would not do that because we would never borrow more than we pledge at the 4th quarter revenues; we would not receive $2.5 billion in the fourth quarter. The IRS regulates us very closely and we cannot borrow more than 90% of our deficit on November 15.
Gov. Otter asked what the state’s interest rate is this year.
Mr. Crane answered that we don’t know exactly what it will be because it is in June when we sell the notes. Last year the interest rate was .19%.
Resolution: Mr. Wasden moved to approve item 4. Mr. Ysursa seconded the motion. The motion carried on a unanimous voice vote.
9. Office of the Attorney General
a. Notification that Merlyn W. Clark of the firm of Hawley, Troxell, Ennis & Hawley, LLP, has been appointed pursuant to Idaho Code §67-1409 as Special Deputy Attorney General for the purpose of representing the State of Idaho, Department of Administration, in matters related to E-rate issues.
b. Notification that Shawna Dunn and James K. Dickinson of the Ada County Prosecutor’s Office, have been appointed pursuant to Idaho Code §67-1409 as Special Deputy Attorneys General for the purpose of representing the State of Idaho in the case of Haris Keserovic v. State of Idaho.
c. Notification that John A. Bailey Jr. of the firm of Racine, Olson, Nye, Budge & Bailey, Chtd., has been appointed pursuant to Idaho Code §67-1409 as Special Deputy Attorney General for the purpose of representing the State of Idaho, Department of Transportation in the case of Solecki, et al. v. State of Idaho, Department of Transportation.
10. State Insurance Fund
a. Estimate of the State Insurance Fund expenses to be paid by sight drafts for the month of
b. Estimate of the Petroleum Clean Water Trust Fund expenses to be paid by sight drafts for the month of January, 2014.
Estimated expenditure for workers compensation claim costs, dividends and premium refunds
Funds Expended in January, 2014:
Workers Compensation Claim Costs
Estimated expenditure for Petroleum Clean Water Trust Fund
Funds Expended in January, 2014:
Mr. Wasden moved to adjourn the meeting. Mr. Ysursa seconded the motion.
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 9:06 a.m.
__________/s/ C.L. “Butch” Otter__________________/s/ Brandon Woolf ____________
C.L. “Butch” Otter, Chairman of the Board and
Governor of the State of Idaho
Brandon Woolf, Secretary of the Board and
Idaho State Controller