ACFA0123 Converted WP Minutes

Link to Zipped WordPerfect Minutes 8K bytes

MINUTES OF THE JOINT CAPITAL FACILITIES & ADMINISTRATIVE SERVICES APPROPRIATIONS SUBCOMMITTEE
Friday, January 23, 1998 at 2:00 p.m.
ROOM 405, STATE CAPITOL BUILDING


Members Present:    Sen. David L. Buhler, Committee Co-Chair
        Rep. Gerry A. Adair, Committee Co-Chair
        Sen. Leonard Blackham
        Rep. Ralph Becker
        Rep. DeMar (Bud) Bowman
        Rep. Brent H. Goodfellow
        Rep. Joseph G. Murray
        Rep. Loraine T. Pace
        Rep. Raymond W. Short
        Rep. Richard L. Walsh

Members Absent:    Sen. Mike Dmitrich

Staff Present:    John Massey, Fiscal Analyst
        Susan Greer, Committee Secretary

List of others present is on file.

Co-Chairman Buhler called the meeting to order at 2:00 p.m.

John Massey informed the committee that budget books would be available on Monday, January 26, 1998 and made reference to the green agenda that has been revised as requested by the committee.

Information Technology Project Review

Mr. Massey presented an overview of issues related to the Information Technology Projects in the State. The committee has been designated as the focal point to hear issues and to facilitate coordination in the Legislature with respect to major information technology projects.

1.     Year 2000 Issues

Dave Moon, Chief Information Officer, CIO, and David Fletcher, Deputy Director, presented the budget request of $4.95 million that is critical to be funded in order for the State to be in compliance. He indicated these problems pose very critical financial, social and legal risks to the State. He made the committee aware of additional budget requests that are not earmarked as Year 2000 requests, but need to be funded in order for the State to be compliant. An additional $247,000 in costs have been identified by the Department of Health to upgrade existing systems.

Rep. Goodfellow expressed concern with respect to allocating funds to replace antiquated systems rather than purchase software that would be functional in the long term future.

Rep. Short expressed concern about the growth in government and the new items that seem to be requested. Shauna Hadfield, Governor's Analyst, responded to Rep. Short's concerns indicating that many more system related requests had been received for Year 2000. These systems that were too old were not categorized as Year 2000 projects and all systems will be Year 2000 compliant when completed. She indicated the analysts are constantly looking for the most cost efficient solutions available.

Mr. Massey clarified the technology recommendation referring the committee to Page 1 indicating that $100 million has been expended for Information Technology in FY 1997. The Analyst recommends $4,953,600 for FY 1999 for Year 2000 projects. He also reviewed state-by- state expenditures for Year 2000 projects. The committee has been asked to make a recommendation to the Operating Committee which funds these projects to address additional requests.

MOTION:    Sen. Blackham moved to adopt the Analyst recommendation, page 2, of $4,953,600 for the Year 2000 upgrade.

        The motion passed unanimously with Rep. Short absent for the vote and Sen. Buhler declaring a conflict of interest.

MOTION:    Rep. Goodfellow moved to recommend to the Health & Human Services Committee funding $273,000 in costs for the Year 2000 project.

        The motion passed unanimously with Rep. Short absent for the vote and Sen. Buhler declaring a conflict of interest.

2.     800 MgHZ-Utah Communications Agency Network (UCAN)

Raylene Ireland, Department of Administrative Services, Commissioner Craig Dearden, Department of Public Safety, and Steve Proctor, UCAN, distributed a handout ( copy on file).
Mr. Proctor discussed the current 800 MgHz technology and possibility of involving 53 agencies of which 29 have signed on to be involved in the process. He indicated that equipment contracts have been signed with Motorola. He referred to an eight county area map including the initial areas of focus with additional expansion as needed. He noted the possibility of Federal funding as well as up-front contributions by agencies to reduce bonding requirements.

Commissioner Dearden expressed the goal to eliminate fragmentation that is currently within the system and implement a plan that is more beneficial to the State.

Mr. Massey reviewed the UCAN structure and the analysts recommendation of $1,096,900 from the General Fund, $364,900 from Transportation and $18,000 from the Internal Service Fund. Mr. Massey acknowledged that fewer units may require a higher per unit monthly cost or that UCAN may need to modify its implementation schedule.

3.     UTAX - State Tax Commission

Mr. Massey presented an overview of the Utax project and the analyst's funding recommendation of $17,800,000. His recommendation includes a general obligation bond of $15,800,000 with the remainder of the FY 1999 project costs of $2,000,000 to be derived from the Sales Tax Administration Funds collected.

Mr. Rod Morelli, Executive Director, State Tax Commission, and Kevin Vanausdahl, Project Leader, presented information about the project and concurred with the analyst's recommendation.

Co-Chair Buhler indicated voting action would be deferred at this time until a quorum is present.

4.     Public Education Initiative

Mr. Massey reviewed the analyst's recommendation of $2,500,000 for on-going funding and $2,500,000 in one-time funding as well as $3,000,000 from beginning non-lapsing balances.

Jerry Peterson and Vicky Dahn, UOE, presented information with respect to Educational Technology Initiatives. They reviewed long term planning that is now in place and answered questions from committee members regarding technology funding.

5.     Higher Education Initiative

Mr. Massey noted the Analyst recommendation of a one-time appropriation of $2,080,300 indicating these funds to be allocated for specific programs and general technology needs. He referred to a breakdown by college and university of these requests (copy on file). $200,000 is being recommended as part of the $2,080,300 to address the State Board of Regents needs.

Wayne Peay and Steve Hess presented an overview of the funding proposal. He noted that the current networking system is functioning very efficiently at colleges and universities throughout the state.

Mr. Massey noted the Analyst recommendation of $14,218,600 for Utah Education Network which will address the need for additional sites in middle schools and secondary schools across the state. It is also recommended that $400,000 in on-going funds and $800,000 in one-time

funds be appropriated to Utah Education Network for FY 1999.

Mr. Jerry Fullmer expressed the need for on-going funding to resolve the Year 2000 problems in the school system at this time.

2.     Other Agencies

    A. Alcoholic Beverage Control

Mr. Massey noted this agency had approached the committee last year discussing the overhaul of their management information system. He referred to the summary of the Analyst recommendation of an FY Supplemental of $1,033,800 from the General Fund Restricted-Liquor Control Fund and on-going funding of $221,700 from the same fund.

Mr. Dennis Keller, ABC Commission and Brad Brown, IT Manager, addressed a request for $250,000 in additional funding to upgrade current systems for next year's budget.

    B. Workforce Services

The Department has requested funding of $800,000 from the General Fund to pay new management information system charges for the system previously operated by Employment Security. The analyst is recommending that DWS pay the $800,000 from maintenance of effort.

Mr. Dee Snowball, Director, Department of Technology Services and Alan Carlsen, State IT Consultant gave a brief history of the agency and addressed current needs of the department and new approaches to customer service. Mr. Massey asked if DWS supported the move to the ITS mainframe. Mr. Snowball answered to the affirmative.

    C. Human Services

The Analyst discussed the ORSIS system which has been operating for the past two years. He noted the recommendation of $454,200 which includes $86,300 from the General Fund plus an internal match of equal amount.

Emma Chacome, Director, Office of Recovery Services, spoke to the funding request and answered questions from the committee.

        (1.) State Hospital

Mr. Massey reviewed the analyst's recommendation of $200,000 in one-time funding from the General Fund to upgrade existing systems throughout the hospital. The project includes

replacement of desktop computers, consulting and programming costs and commercial components.

Mark Payne, Dori Wintle and Harry Sutton, State Hospital, discussed the need for new technology within the hospital system. The hospital is scheduled for completion in a year and a half.

Rep. Becker referred to the revised Hearing Schedule requesting that on February 6 under Miscellaneous that the committee visit Memory Grove Park.

MOTION: Rep. Adair moved to adjourn the meeting. The motion passed unanimously.

The meeting was adjourned at 4:05 p.m.

The minutes were reported by Susan Greer.

Sen. David L. Buhler Rep. Gerry A. Adair
Committee Co-Chair Committee Co-Chair