STATE BOARD OF EXAMINERS
MINUTES – Regular Meeting
April 17, 2012 – 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 pursuant to Idaho Code §67-2002 and by the order of the chair.
The following board members were present: Governor Brad Little, Secretary of State, Ben Ysursa and Attorney General Lawrence Wasden. Controller Donna M. Jones, Secretary to the State 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 voice vote.CONSENT AGENDA
1. Minutes - Approved
Approval of official minutes for the Board of Examiners on March 20, 2012.
3. Bureau of Homeland Security – Approved
Date to Board
Petroleum product leak in Clearwater River. Suspected Responsible Party identified. (CLEARWATER COUNTY)
4. Department of Health and Welfare – Approved
Request approval that $120,249,050 be transferred from the General Fund to the Cooperative Welfare Fund #0220 during the 4th Quarter of Fiscal Year 2012. Additionally, $63,275 is requested to be transferred from the Drug Court, Mental Health & Family Court Services Fund #0340 to the Cooperative Welfare Fund #0220 during the 4th Quarter of Fiscal Year 2012.
2. Department of Administration - Approved
Request for recognition of assignment according to Idaho Code 67-1027 from SunTrust Equipment Finance & Leasing Corp. to Capital One Public Funding, LLC.
Discussion: Mr. Ysursa explained that these requests are normally routine, but this one was missing information that has now been provided.
Resolution: Mr. Ysursa moved to approve item 2. Mr. Wasden seconded the motion. The motion carried on a unanimous voice vote.
5. Office of the State Treasurer - Approved
Request advanced approval pursuant to Idaho Code 63-3201 to issue the Fiscal Year 2013 Tax Anticipation Notes in an amount not to exceed $1,914,150,000.
Discussion: Mr. Ron Crane stated they are asking for the authority to borrow up to 1.9 billion dollars. A section of the Idaho Code says that the Treasurer can borrow up to 75% of the anticipated general fund revenues. The purpose of issuance of the TAN is for cash flow purposes. The school districts receive 6 payments throughout the fiscal year, and by November 15 they have been issued 4 of those 6 payments. That’s about 68% of our general fund disbursements with only about 40-42% of our revenues coming in, which is what creates the cash flow problems and is why we issue the tax anticipation notes. We do have federal guidelines that govern how much we can issue, called the IRS 90% rule which requires that we issue no more than 90% of what our deficit is on November 15. In June we estimate what that deficit will be, and then we have to be within a 10% leeway of the targeted amount otherwise we forfeit all our arbitrage to the IRS. Buyers of these notes are the investment banking firms that are looking for good municipal paper to put in their portfolios. Idaho paper is pristine in the marketplace and when we go to the market our paper lasts about 45 minutes to an hour. In addition to the savings we are able to pass to the taxpayers on the cost of issuance, a greater savings is that cities, schools, etc. are able to obtain Idaho’s credit rating, a cost savings in interest.
Mr. Mike Moore explained that when they ask not to exceed the 75% amount, they will be limited by the amount of the deficit. In future years the wording in the resolution could be changed to say that the state treasurer may borrow an amount to be determined by the treasurer but not to exceed the amount of the deficit as determined by federal tax regulations.
Mr. Wasden noted for the record that Mr. Moore was one of his best professors in law school.
Mr. Ysursa asked what the basis points might be this year.
Mr. Crane answered they do not know at this time, but it should be similar to last year’s 26 basis points. Interest rates have not risen significantly.
Mr. Little asked what percentage goes to public schools.
Mr. Wayne Hammon answered that by the end of the year it balances out to be around 50%.
Resolution: Mr. Wasden moved to approve item 5. Mr. Ysursa seconded the motion. The motion carried on a unanimous voice vote.
Mr. Moore obtained signatures from the board members for the resolution.
6. Department of Fish and Game
Update on David Silcock’s continued efforts to sell his property.
7. Office of the Attorney General
Notification that Paul J. Augustine of the firm of Augustine Law Offices, PLLC, has been appointed pursuant to Idaho Code §67-1409 as Special Deputy Attorney General for the purpose of representing the State of Idaho, Industrial Special Indemnity Fund in the matter of Allen Mitchell.
Notification that John P. Coyle of the firm of Duncan & Allen in Washington, D.C., has been appointed pursuant to Idaho Code §67-1409 as Special Deputy Attorney General for the purpose of representing the State of Idaho, Public Utilities Commission, in the proceeding of Rainbow Ranch Wind, LLC and Rainbow West Wind, LLC, before the Federal Energy Regulatory Commission.
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 Special Deputy Attorney General for the purpose of representing the Idaho State Board of Accountancy in the case of Idaho State Board of Accountancy v. Hamblin.
Notification that David Baltmanis of the firm of Miner, Barnhill & Galland, P.C., in Chicago, Illinois, has been appointed pursuant to Idaho Code §67-1409 as Special Deputy Attorney General to participate on behalf of the State of Idaho in litigation filed against some members of the pharmaceutical industry related to the industry’s use of “average wholesale price” drug price methodology.
8. 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 draft for the month of February, 2012.
Estimated expenditure for workers compensation claim costs, dividends and premium refunds
Funds Expended in February, 2012:
Workers Compensation Claim Costs
Estimated expenditure for Petroleum Clean Water Trust Fund
Funds Expended in February, 2012:
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 9:05 a.m.
__________/s/ C.L. “Butch” Otter__________________/s/ Donna M. Jones ____________
C.L. “Butch” Otter, Chairman of the Board and
Governor of the State of Idaho
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.