GENERAL SERVICES DEPARTMENT FY19 APPROPRIATION REQUEST - - PowerPoint PPT Presentation

GENERAL SERVICES DEPARTMENT FY19 APPROPRIATION REQUEST PRESENTATION

Edwynn Burckle, Cabinet Secretary November 14, 2017

GSD FY19 Request High Level Breakdown

• GSD Appropriation Request consists of three budget

components:

• 1. Program Operating Budgets

$ 37.6 million

• 2. Risk & Liability

$ 87.1 million

• 3. Health Benefits

$ 371.7 million

Total FY19 GSD Request $496.4 million

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Operating Budgets $37,597.9 Risk & Liability Funds $87,120.2 Health Benefits $371,696.8 8% 17% 75%

Operating Budgets Risk Funds Benefits

Funding Sources by Percentage

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• 1. The Other Revenues request includes Health Benefits $371.7, Risk

Funds $87.1 and Enterprise Funds $12.0 that account for 94.8% or $470.8 million.

• 2. The General Fund request totals 2.8% or $13.8 million, and
• 3. The Other Transfers request (RMD & Program Support) is 2.4% or

$11.8 million of the FY19 GSD budget request.

General Fund 2.8% Other Transfers 2.4% Other Revenues 94.8%

Overall Costs Comparison by Category FY18 / FY19

• The FY19 request includes the application of vacancy rate factors in all programs creating cost

savings totaling $2.1 million to address limited resources.

• Reductions to the 300s are predominantly in the Risk & Liability Funds. The procurement of a new

insurance broker for blanket property insurance statewide resulted in a cost savings of approximately $900.0.

• The lower request in the 400s is due mainly to a moratorium in vehicle replacement and the GPS

monitoring initiative in Transportation Services. GSD on behalf of the Transportation Services Division TSD is

submitting a supplemental request to resume the GPS service for the remainder of FY18. Additionally, it will be requesting additional budget authority to continue GPS operations on 1,919 vehicles in FY19.

• It should be noted that the FY18 budget includes the use of fund balance to fund operations in
• RMD. Due to its depletion, transfers into the RMD operating fund from the risk & health benefits

funds in FY19 increased the 500s category by $1,435.0. 4

$(100,000.0) $- $100,000.0 $200,000.0 $300,000.0 $400,000.0 $500,000.0 $600,000.0 200 300 400 500 Total FY 18 $18,740.7 $44,621.1 $427,307.5 $10,383.9 $501,053.2 FY 19 $18,199.7 $43,706.0 $422,690.3 $11,818.9 $496,414.9 Change (%)

• 2.9%
• 2.1%
• 1.1%

13.8%

• 0.9%

In Thousands

Special Session Reductions on General Fund

• From an FY15 General Fund appropriation high of $14,237.4, the

GF appropriation to GSD has been cut by more than 8 percent. GSD requests a total GF appropriation of $13.8 million for FY19 that is flat with FY18.

• The FY18 operating budget includes $994.0 necessary to assume

maintenance of the Department of Public Safety headquarters here in Santa Fe.

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$14,237,400.00 $14,137,500.00 $13,084,300.00 $13,827,800.00 $12,400,000.00 $12,600,000.00 $12,800,000.00 $13,000,000.00 $13,200,000.00 $13,400,000.00 $13,600,000.00 $13,800,000.00 $14,000,000.00 $14,200,000.00 $14,400,000.00 General Fd. Appropriation FY2015 FY2016 FY2017 FY2018

FY2017 Special Session Reductions

FY17 sweeps to Risk, Capital and Operating funds totaled $38.1 million.

• $4.6 million sweeps to operating funds will impact PS&EB, Contractual

Services and Other Costs.

• $2.6 million in State Purchasing Fees Fund 28600
• $2.0 million in Transportation Services - Motor Pool 36500, Surplus 36000 and Aviation

Fund 41700.

• $30.9 million sweep to public liability, state unemployment, public property and

workers’ compensation.

• $1.0 million sweep of the public building repair fund (PBRF) impacts FMD’s

ability to finish master planning, space use assessment and land reconciliation (continuous audit finding) efforts.

• $1.6 million sweep of the Tobacco Tax for DOH Facilities managed by Facilities

Management.

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GSD Operating Costs by Category

• Request includes the application of vacancy rate factors of differing amounts

to PS&EB in the following programs to accommodate fiscal constraints and reductions:

• Program Support, State Printing, Risk Management and Facilities

Management

• Decreases in Other Costs category:
• The decrease of $2,547.2 or 14.9% under from the FY18 operating budget is

due to lack of funding to support the vehicle replacement program and the GPS monitoring system.

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48% 3% 39% 10%

FY19 planned Operating Expenditures

PS&EB Contratual Services Other Costs Other Financing Uses

Operating Costs Comparison FY17/FY18/FY19

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$- $5,000.0 $10,000.0 $15,000.0 $20,000.0 $25,000.0 $30,000.0 $35,000.0 $40,000.0 $45,000.0 Program Support State Purchasing State Printing RMD Operating Facilities Management Transportation Services Total GSD Operations FY2017 $3,868.3 $1,960.7 $1,308.7 $7,428.7 $11,519.6 $7,888.5 $33,974.5 FY2018 $4,045.6 $2,263.9 $1,160.0 $8,094.2 $13,283.3 $12,023.1 $40,870.1 FY2019 $3,834.3 $2,100.1 $1,665.8 $7,984.6 $13,283.3 $8,729.8 $37,597.9 In Thousands

P598 Program Support - Operating

• The total FY19 budget request of

$3,834.3 is $211.3 less than the FY18

• perating budget.
• Reduced budget request in P598 translates

into cost savings to the other 5 GSD programs.

• PS&EB vacancy rate factors range

from 9.0% in ASD to 50.0% in HR for a total cost savings of $326.0.

• Cost savings in the 300s due to new

annual audit contract with Moss Adams and reduced need for staff augmentation.

• The increase in the 400s is attributed

mainly to increase ($159.4) in DoIT ISD rates.

• It should be recognized that in FY17,

the Program Support budget absorbed GF reductions by decreasing its own budget to lessen the impact of reductions to the

• perating budgets of GF programs by

reducing their Other Financing Uses (transfers out). This cost savings effort to all GSD programs continues in this request.

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$- $500.0 $1,000.0 $1,500.0 $2,000.0 $2,500.0 $3,000.0 $3,500.0 $4,000.0 $4,500.0 200 300 400 Total FY 18 $3,017.4 $296.6 $731.6 $4,045.6 FY 19 $2,691.4 $242.1 $900.8 $3,834.3 In Thousands

P604 - State Purchasing

• The total budget request for the State Purchasing Program (SPD) of $2,100.1 is $163.8

less overall than the FY18 operating budget.

• The SPD general fund (17400) budget (GF) is flat with the FY18 operating budget.
• A 12.5% vacancy factor was applied to the 200s for 10 authorized FTE positions.
• In the fees fund (28600), the budget bureau allocated savings from a 15% vacancy

factor to nearly double the 400s budget where it is needed, but the overall request is $163.8 less than the FY18 operating budget.

• *Special Session sweep of $2.6 million from the Fees Fund will impact SPD’s ability to accomplish

planned goals and objectives with regards to SHARE Procurement Module upgrades. 10

$- $100.0 $200.0 $300.0 $400.0 $500.0 $600.0 $700.0 200 300 400 500 Total FY 18 $615.1 $- $62.0 $11.6 $688.7 FY 19 $603.5 $- $61.4 $23.8 $688.7 In Thousands

SPD 174 General Fund

$- $200.0 $400.0 $600.0 $800.0 $1,000.0 $1,200.0 $1,400.0 $1,600.0 200 300 400 500 Total FY 18 $1,320.7 $76.0 $108.5 $70.0 $1,575.2 FY 19 $1,108.5 $53.0 $202.8 $47.1 $1,411.4 In Thousands

SPD 286 Fees Fund

P605 State Printing & Graphics

• The
• verall

budget request

• f

$1,665.8 is an increase of $505.8

• ver the FY18 operating budget.
• The significant increase is due to SP&G

effectively demonstrating its ability to generate this level of revenue during a 60 day session.

• A

vacancy rate

• f

18.5% was applied to the 200s.

• State Printing continues to operate

with minimal staff.

• FY17 was the first year the fund

went solvent since FY10 with revenues exceeding expenses by $342.7.

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$- $200.0 $400.0 $600.0 $800.0 $1,000.0 $1,200.0 $1,400.0 $1,600.0 $1,800.0 200 300 400 500 Total FY 18 $461.1 $- $656.7 $42.2 $1,160.0 FY 19 $506.4 $100.0 $1,004.3 $55.1 $1,665.8

In Thousands

P608 - Facilities Management

• Total budget of $13.3 million is flat with

FY18 operating budget.

• $12.6 million in General Fund is same

as FY18 operating budget.

• For FY19 we are requesting authority to

use the Property Control Reserve Fund (PCRF) in the amount of $692.8 to supplement increased costs of building and property insurance.

• PRC’s recent rate hikes increased utility

expenses for buildings in the Santa Fe area.

• The

Facilities Management Division (FMD) will be submitting for consideration from the general fund, a Special Request in the amount of $200.0 to continue the five year cyclic assessments (FCA) of state buildings under the control of the FMD.

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$- $2,000.0 $4,000.0 $6,000.0 $8,000.0 $10,000.0 $12,000.0 $14,000.0 200 300 400 500 Total FY 18 $6,703. $270.8 $6,109. $199.6 $13,283 FY 19 $6,703. $270.8 $6,108. $200.0 $13,283 In Thousands

P609 Transportation Services – Motor Pool / Surplus

MOTOR POOL

• Total budget of $7,172.1 is $3,295.6 less

than the FY18 operating budget of $10,467.7.

• The lower request is due to fund sweep during last

years Special Session .

• Budgetary constraints delay the ability to

replace aging vehicle fleet. Older vehicles cost more to repair and maintain. In spite

• f aging fleet, SAFETY is not compromised.
• The Transportation Services Division is

awaiting the revenue picture to improve in

• rder to reactivate the GPS service for the

1,919 vehicles in fleet. SURPLUS PROPERTY

• Total budget of $892.1 is $2.3 higher than

the FY18 operating budget.

• Increase in 400s is due to travel rental fees.
• Surplus Property continues to experience

success through donations, store front sales and GovDeals online auction site. 13

$- $2,000.0 $4,000.0 $6,000.0 $8,000.0 $10,000.0 $12,000.0 200 300 400 500 Total FY 18 $1,475.8 $64.6 $8,545.6 $381.7 $10,467.7 FY 19 $1,482.6 $68.9 $5,377.0 $243.6 $7,172.1 In Thousands

Motorpool

$- $200.0 $400.0 $600.0 $800.0 $1,000.0 200 300 400 500 Total FY 18 $585.4 $119.5 $151.0 $33.9 $889.8 FY 19 $528.1 $120.0 $213.7 $30.3 $892.1 In Thousnads

Surplus Property

P609 Transportation Services – Aviation

• Total budget request of

$665.6 is flat with the FY18 Operating budget.

• $548.6 general funds.
• $117.0 enterprise funds.
• TSD continues to focus
• n both pilot and aircraft

safety.

• Children’s Medical

Services continues to be the primary customer for the Aviation Services Bureau.

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$- $100.0 $200.0 $300.0 $400.0 $500.0 $600.0 $700.0 200 300 400 500 Total FY 18 $290.4 $3.8 $359.8 $11.6 $665.6 FY 19 $291.3 $3.8 $346.9 $23.6 $665.6 In Thousands

Aviation

P606 Risk Management - Operating

• Total FY19 budget request of

$7,984.6 is $109.6 less that the FY18 operating budget.

• The request also reflects a 5%

vacancy rate applied in the 200s to reflect efforts to fill vacancies.

• Decreases are mainly in the

400s due to cost cutting efforts and 500s due to reduction of assessments transferred to Program Support.

• RMD operating continues to

focus on providing training for ADR, CPR, OSHA, Active Shooter Awareness and Loss Prevention and Control.

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$- $1,000.0 $2,000.0 $3,000.0 $4,000.0 $5,000.0 $6,000.0 $7,000.0 $8,000.0 $9,000.0 200 300 400 500 Total FY 18 $4,271.1 $150.0 $378.1 $3,295.0 $8,094.2 FY 19 $4,284.2 $150.0 $339.6 $3,210.8 $7,984.6 In Thousands

P607 - Health Benefits

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$- $50,000.0 $100,000.0 $150,000.0 $200,000.0 $250,000.0 $300,000.0 $350,000.0 $400,000.0 300 400 500 Total FY 18 $21,578.0 $349,470.0 $2,148.0 $373,196.0 FY 19 $21,578.0 $349,550.0 $568.8 $371,696.8 In Thousands

The most significant change in the FY19 request in the Health Benefits program is the reduction of Other Financing Uses 500s category for program support assessments. The otherwise relatively flat increase in the 400s budget request for medical and prescription costs, reflects projected flattening of overall medical costs as well as continued implementation of cost containment measures such as wellness programs.

P799 - Risk Funds

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$- $10,000.0 $20,000.0 $30,000.0 $40,000.0 $50,000.0 $60,000.0 $70,000.0 $80,000.0 $90,000.0 State Unemployment LPB Unemployment Public Property Public Liability Surety Bond Workers' Compensation Total FY 18 $6,100.0 $1,640.0 $12,449.9 $45,305.3 $480.0 $21,011.9 $86,987.1 FY 19 $7,600.0 $3,090.0 $9,432.5 $45,707.3 $30.0 $21,260.4 $87,120.2 In Thousands

• The request for Unemployment funds have increased in order to meet anticipated claims expenses from public and higher

education entities that cut staff to meet deficiencies experienced during recent revenue downturn.

• The request for the Public Liability funds is essentially flat over FY18. The FY18 operating budget and FY19 request are less

than the actual $50m actual spend in FY17. Decreasing fund balance is a concern and an unanticipated “shock loss” would likely require RMD to seek an Emergency BAR.

• The request for the Workers Compensation fund is again budgeted fairly flat as compared to the FY18 operating budget.

The relatively small increase is necessary to accommodate a projected increase in prescription drug costs and the potential that the Workers Compensation Administration may increase the allowable fees charged by medical providers.

QUESTIONS?

Contact Information:

Edwynn Burckle, Cabinet Secretary, 827-0033 Administrative Services Division: Zella Kay Cox, Chief Financial Officer, 476-1857 Budget Bureau: J. Scott Roybal, Budget Director, 827-2447 Facilities Management Division: Christopher Lee, Acting Director, 216-8837 Risk Management Division: Lara White-Davis, 795-4266 State Printing & Graphics: Rob Newlin, Director, 476-1952 State Purchasing Division: Larry Maxwell, Director, 827-0482 Transportation Services Division: James Chavez, Deputy Director, 660-5562