STATE BOARD OF EXAMINERS
MINUTES – Regular Meeting
June 15, 2010 – 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 8:55 a.m. pursuant to Idaho Code §67-2002 and by the order of the chair.
The following board members were present: Secretary of State Ben Ysursa by phone, Attorney General Lawrence Wasden, and Governor C.L. “Butch” Otter. 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.
1. Minutes - Approved
a. Approval of official minutes for the meeting of the Subcommittee to the Board of Examiners on May 11, 2010.
b. Approval of official minutes for the meeting of the Board of Examiners on April 20, 2010.
c. Approval of official minutes for the special meeting of the Board of Examiners on June 8, 2010
2. Bureau of Homeland Security - Approved
Date to Board
2010-00030 Haz Mat $1,829.80
Paid in full
Storage tanker leaking fuel. Insurance Company involved. (Bonneville County) 6/1/2010
|Suspected Drug Lab in a private residence, County Prosecutor’s Office has been contacted in regards to possible restitution. (Twin Falls County)||6/1/2020|
Haz mat/ Mercury
|Mercury spill in local High School. Insurance Company involved. (Ada County)||6/1/2010|
|Suspected Drug Lab at a private residence, County Prosecutor & IDOC have been contacted concerning payment. (Boundary County)||6/1/2010|
| |2010-00042 Haz Mat/ Mercury $857.64
Paid in full
Juvenile inmate broke wall thermostat at St. Anthony Juvenile Detention Center. (Fremont County) 6/1/2010
3. Division of Financial Management - Approved
Request that the Board of Examiners direct the State Controller to complete the transfers authorized by SB 1445 within the limits established by the law for the purpose of balancing the state budget. The State Controller will report the actual transfer amount at the next Board of Examiners meeting.
Discussion: Mr. Wayne Hammon presented the item and explained the newly presented documentation. He explained that Senate Bill 1445 anticipated this situation occurring and lays out a road map for the Board of Examiners to address this. It provides for the Board of Examiners to draw funds from four separate sources. The first is the budget stabilization fund, which is the state’s main rainy day account. All the funds in that account have been accounted for either in the FY2010 budget or the FY2011 budget. However, the Division of Financial Management anticipates a reversion in this account at the end of FY2010. That means DFM anticipates there being around $600,000 that is unaccounted for or unobligated in this account. The Division of Financial Management recommends that is the first place the Board looks to balance. The other pot of money that was anticipated in Session Law 333 is the Permanent Building Fund. The Permanent Building Fund received an appropriation of $22 million. In addition to that, they have a little over $5 million of free fund balance that is left over from other projects that have been completed. The $5 million would be allocated to different future projects, but it has not been allocated yet. The $22 million they were given for Fiscal Year 2011, while it has been attributed to specific projects, it has not been obligated yet. This money is tied to certain maintenance projects, but none of the projects have been started and no contracts or supplies have been purchased. They did that in anticipation of the Board of Examiners needing that money. Their advisory board meets again in July and they will readjust their budget, depending on the transfers the Board decides to do. Mr. Hammon pointed out on the other handout the recommendation made by DFM.
Mr. Wasden thanked Mr. Hammon for his tremendous work. There is a statute in place that requires transfers of certain monies, and authorizes that transfer. The Controller is the one responsible for making the transfers, but it has to come before this board for authorization. Mr. Wasden said that the authorization the Board is granting is not specifically what Mr. Hammon has outlined- What Mr. Hammon is doing is simply informing the Board that this is how DFM thinks this scenario will come about. What DFM is seeking today is authorization for those transactions to take place, whatever the scenario may be, and number two on the list seems to be the most likely scenario.
Mr. Hammon said that is correct. At the meeting of the Board of Examiners last week, the Controller’s Office did express a desire to have some direction from the board as to which order these transfers should be made. The statute in place authorizes the Board of Examiners to direct the Controller to follow the statute, but does not give any preference as to which order. Should the Board of Examiners just authorize the transfers, it would be up to the Controller’s Office to decide should they take the money from the Permanent Building Fund, or should they take it from the Economic Recovery Fund, or from the Budget Stabilization Fund, and that would be the Controller’s discretion. The question for the Board is how much control is preferred over that process.
Resolution: Mr. Wasden made the following motion, which DFM had prepared:
I move that in accordance with the authorities granted in 2010 Idaho Session Laws 333, the State Board of Examiners direct the State Controller to take the following actions for the purpose of balancing the state budget:
1. Should at the conclusion of the State’s 2010 fiscal year the State General Fund balance be negative, then the State Controller shall transfer any unobligated balance of the Budget Stabilization Fund to the General Fund up to the amount necessary to meet the shortfall.
2. Following the completion of item one above and provided that a shortfall remains, the State Controller shall transfer sufficient funds from the Permanent Building Fund to the General Fund in order to meet the remaining shortfall, provided that such transfer does not exceed the $27,944,600 authorized by 2010 Idaho Session Laws 333.
3. Following the completion of items one and two above and provided that a shortfall remains, the State Controller shall transfer sufficient funds from the Economic Recovery Reserve Fund to the General Fund in order to meet the remaining shortfall.
Further, I move that the State Board of Examiners direct the State Controller to report the final sums of all such transfers as an item on the informational agenda of the next regularly scheduled state Board of Examiners meeting.
Mr. Ysursa seconded the motion. The motion carried on a unanimous voice vote.
4. Tax Commission Item removed and placed on the Board of Examiners Special meeting agenda held on June 8, 2010.
Request for one short-term transfer of $11 million to the state refund fund to avoid interest expenses in the final weeks of the fiscal year.
5. Office of the Attorney General
a. Notification that Anthony M. Valdez, Valdez Law Office, PLLC, has been appointed pursuant to Idaho Code §67-1409 as Special Deputy Attorney General for the purpose of representing the State of Idaho in the matter of Norma Kunz, IC# 07-015585.
b. 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 for the purpose of representing the State of Idaho in the case of Munoz-Urias v. Eastern Idaho Technical College Foundation, Inc.
c. Notification that Scott E. Randolph of the firm of Holland & Hart, LLP, has been appointed pursuant to Idaho Code §67-1409 as Special Deputy Attorney for the purpose of representing the State of Idaho in the case of Mangeac v. Armstrong.
6. State Insurance Fund
a. Estimate of the State Insurance Fund expenses to be paid by sight drafts for the month of April, 2010.
b. Estimate of the Petroleum Clean Water Trust Fund expenses to be paid by sight draft for the month of April, 2010.
Estimated expenditure for workers compensation claim costs, dividends and premium refunds
Funds Expended in April, 2010:
Workers Compensation Claim Costs
Estimated expenditure for Petroleum Clean Water Trust Fund
Funds Expended in April, 2010:
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/ Donna M. Jones ____________
__________/s/ C. L. “Butch” Otter ________
C. L. “Butch” Otter, Chairman of the Board and
Governor for 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.