FY 1997 Appropriations Report - Capital Facilities and Administrative Services

Department of Administrative Services

Executive Director's Office -

Underground Storage Tank Mitigation

Efforts are continuing to mitigate all underground storage tank sites owned by the State. The State is under an Environmental Protection Agency (EPA) mandate to have all tanks brought into EPA compliance by December 22, 1998. It is noted that $1,650,000 was appropriated in FY 1997 which includes $800,000 from the General Fund and $850,000 from the Transportation Fund. With this funding, a minimum of $2 million will still be required to complete the project.

Alternative Fuel Vehicle Conversion

The Energy Policy Act of 1992 requires all State Motor Pools to convert 75 percent of their fleet to alternative fuels by the year 2000. The conversion will be a phased process which began in FY 1995. Although the costs of the vehicles will be recovered through rates, the need for alternative fueling stations will require a direct appropriation. As a result, $480,000 was appropriated in FY 1995 to match funds from Mountain Fuel Company to construct four compressed natural gas (CNG) sites to be completed in FY 1996. However, Mountain Fuel has now elected not to participate in this construction. As a result, intent language was passed to authorize the department to use the State Clean Fuel Loan Fund for additional construction funding.

Division of Fleet Operations

The passage of Senate Bill 266, "Division of Fleet Operations", established the Division of Fleet Operations within the Department of Administrative Services. The objective of the division is to consolidate all state fleets under one operational structure. However, major organizational and operational decisions will not be made until the completion of the "process mapping" of all state fleets. Senate Bill 251, Appropriations Act II, included $200,000 to implement Senate Bill 266.

Division of Information Technology Services

Automated Geographic Reference Center

The major portion of this budget is funded as an internal service fund. However, in recent years the Legislature has increased the General Fund appropriation for a variety of projects. In FY 1997 a total of $1,273,400 from all funding sources was appropriated for the Automated Geographic Reference Center to continue the development of a frame work of a digital geographic data base. This development will include geodetic control, digital ortho imagery, and digitizing existing mappings.

Internal Service Funds

In addition to the appropriation reflected in Table 7, the department also has four divisions that function as Internal Service Funds, identified in Table 8. These budgets represent funds received through billings to agencies for services provided.

Highlights of Legislative Intent Language:

Administrative Rules will develop unit costs for publication and distribution of Administrative Rules.
The Office of Debt Collection and the Debt Advisory Board will coordinate the use of the State's Advanced Receivable System rather than having agencies purchase or develop their own systems.
Internal Service Funds should include equipment leases as part of their authorization request to the Legislature.
The Division of General Services will prepare a report on Copy Service Center operations, with emphasis on the Docutech efficiencies.
Surplus Property will review the cost of vehicle disposition as compared to the private sector.

State Retirement Board

(See Table 9)

Major funding increases in recent years have been attributed to the increase in investment advisor fees. However, this increase was not as dramatic in FY 1997 since the portfolio has absorbed most of the initial increases associated with increased diversification.
Group insurance continues to function with the four percent of net earned premium administrative cost limitations as identified in legislative intent language.
The passage of Substitute House Bill 156 , "Retirement Office Amendments", clarified the independent status of the Utah Retirement office. While legislative examination and comment on the retirement budget will continue, actual voting on the budget and inclusion in an Appropriation Act will no longer take place.

State Board of Bonding Commissioners -

Debt Service

(See Table 10)

General Fund/Uniform School Fund expenditures for debt service increased from $76,992,500 in FY 1996 to $81,496,700 in FY 1997, an increase of 5.7 percent. However, $5,193,500 in Uniform School Funds is only a one-time requirement.

It is also noted that Revenue Bond debt for state capital facilities is now totally reflected in this budget. Prior years had Revenue Bond payments as part of the Division of Facilities Construction and Management budget.

The following chart shows a seven year history of General obligation and Revenue bonds:

Capital Budget (See Table 11 and Table 12.)

Capital Improvement funding increased 66.2 percent to $28,936,600 reflecting the increased statutory minimum funding level for FY 1997. General Obligation Bonding decreased from $44,331,000 in FY 1996 to $31,000,000 in FY 1997 (30.1 percent), Revenue Bonds decreased from $79,658,300 in FY 1996 to $32,171,600 in FY 1997 (59.6 percent). It is important to note that the State Building Ownership Authority was authorized to issue an additional $18,470,200 in revenue bonds for the Huntsman Center Institute and the College of Eastern Utah Student Center. However, repayment will not come from State funds.

Capital Budget

Major Funding Issues:

For FY 1997 $49,289,300 was appropriated from the General Fund and Uniform School Fund for the Capital Budget. The use of cash resulted in the significant reduction in General Obligation bonding.
The Department of Corrections received funding to construct 336 new beds - 192 at Gunnision and 144 at Draper. Also, 100 beds will be designed for ultimate use by Corrections at the State Hospital in Provo.

Capital Budget

Highlights of Legislative intent language:

The Davis Applied Technology Center should proceed with the design of their Health Occupation addition.
The Attorney General should relocate from the Capitol Building to the Heber Wells Building. However, DFCM should find a smaller space in the Capitol Building to allow the Attorney General to maintain a presence on Capitol Hill.
The Division of Facilities Construction and Management should maximize the use of the Department of Transportation building in Cedar City. This could include moving State agencies into the building that are currently seeking new space.
The date for the Utah National Guard to secure federal matching money for a new Orem Armory was extended from June 30, 1996 to December 31, 1997.
The Weber State Browning Center construction project should receive $3.9 million from FY 1996 Surplus, subject to availability.
The Carbon/Emery Youth Crisis Facility should receive $2,285,600 from FY 1996 Surplus after funding for the Browning Center.
The Gardner Hall project at the University of Utah should be given top priority for full funding by the 1997 Legislature.
The Sevier Valley Applied Technology Center was authorized to use the Building Ownership Authority to issue revenue bonds previously authorized to be issued by the State Board of Education.
The Division of Facilities Construction and Management should issue a request for interest relative to the privatization of a womens correctional facility.

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