Bureau of Human Resources Init"onnalion co!ltained in iliis doclllll"' · ii baied on the Go•;emcr's original recornmenc!ed FY 6 budget.

This document may not cmreq,"'llnd ,,~th tine final FY 16 budge· aclopted by the Legitlarure.

Sources of Funds

Other 95"

South Dakota

Distribution of Total Agency Funds

"'Gov Rec. pro,poses

eliminating SD Risk Pool

Health Insurance Per Benefitted

Budget History ($ Millions)

16 i l1 ••

8, -

4

0

• P5

• Ccwi rxtu.il

• oti'H'r ToUI

FYD .11,tua!

1 4 l

7

11

80.0

60.0

40.0

0.0 r-

0.0

FY14

Ac.lual

4

2

6

l3

FTE

FY15

B,udgeted

4

2

10

16

FY16

Rec.

5

2

l

1

FY13 FY14 FYlS FY 6 R c.

• Budg t d FTI 69.S 70. 70.5 73.5 • A tual FTE 67A 69.2

Employee ---------' '---------1

Distribution of Totall State Salary P,ol icy

10..000

sr,.ooo

$2.000

$0 l·Y13 fY14

Markt Adj

M ar'I< l value

Pay for P@r

Mllllons

• Ge ml

• Feder I

• Other

s 0 1 Pi!V for Pllr

M rl

Key Personnel

• Lauri,e Gill; Commiss ioner • Tom Stec kel; Director, Division of Benefits • Jill Kruger, Assistant Director; Division of Benefits • Kevin Forsc h, Director; Division of Compensat ion and Department Support • El len Zel ler; Director; Division of Classification and Training • Debra Owen, Senior Staff Attorney • Terry Miller, Director of Executive Management Finance Office • Mary Keeler; Accounting Manager

I Department Total

Center014 Bureau of Human Resources %

.Agency Gov Rec Change Actual ktual Budgeted Request Gov Rec lncroecfor From FY13 FY14 FY15 FY16 FY1'6 FY16 FY2015

Personal Se rv ices Employee Salaries 3,036, .. 16 3,190,317 3,377,239 3,413,004 3,491,616 114,377 3.4% Employee Benefits 967,661 1,081,691 1, 93,980 1,1 12,577 , 135,700 41 ,810 3.3% FT E 67.4 69-2 70_5 71.5 73 .5 3.0 4.3% Fu nd ing Type s Ge eral 191,864 199,712 202,720 202,720 202,720 0 0. 0~'0

ederal D 0 0 0 0 0 . . ~\D Other 3.812,213 4 072 296 4 268 499 4.327,861 4 424686 156 187 3.7% Total PS 4,004,077 4,272,008 4,471,219 4,530,581 4,627, 400 156,187 3.5% Operating Expenses Travel 100,""79 93 ,917 87,87 87,870 35,650 (2,220) (2.5%) Co ractual Serlic es 1,582,867 1,893 ,468 2, 70, 534 2,072,148 1,590,095 (480,439) {23.2%) Supp ies & liaterials 124,754 141,041 196, 11 195,110 192,560 (3,500) (1.3%) Capital o u· ay 56,310 73 ,349 50,300 52,330 56,300 6,000 12.1% Other 6, 587,335 6,047,232 9,570,27 9,570,270 550,000 (9,020,270) (94.3%) Funding Type s Ge eral 701,632 59 ,529 60,039 00,039 61),039 0 0.0% Federal 736,071 1,230,819 500,965 500,955 50,000 (450,965) {90.0%) Other 7,014,093 6,958 ,659 11,414,080 11 ,417,724 2,364,656 (9,049,424) (79.3%)

Total OE 8,451,796 8,249,007 11,975,084 11,978,728 2,47· ,695 (9,500,389) (79.3%) Totals Fun ding Types Ge eral 893, .96 259,240 262,759 252,759 262,759 0 0.0%

ederal 736,071 1,230,319 500,965 500,955 50,000 (450,965) {90.0%)

Other 10.826,306 11,030,955 15,682,579 15/45,535 6,739,3

Department Object Detail

Actual lte m FY20113

PERSONAL SERVICES Ge.neral Fu ds 191 364 Federal Fu ,ds 0

er Funds 3,81 2,213

oral R,rson:al Services 4,004,077

FTE 67. 4

TRAVEL Ge.neral Fu ds 7,233 Fe eral Fu ds 0

0 er Funds 93,246

Total Travel 1 0,479

CONfRACTUAL SERVICES Ge.neral Fu ds 43,891

Federal Fu ,ds 225,219 er Funds 1,313,757

Total Contractual Se ices 1,582,867

SUPPLIES AND MATERIALS Ge.neral Fu ds 15,858

Fe eral Fu ds 0 er Funds 108,896

Total Supp es and Materials 124,754

CAPITAL OUTLAY Ge.neral Fu ds 3,225 Federal Fu ds 0

er Funds 53,085

Total Capital Outlay 56,310

OTHER Ge.neral Fu ds 631,425 Federal Fu ds 510,852 Qi er Funds 5,445,108

fatal O" e· 6,587,385

TOTAL

General Funds 893,496 Fede ml Funds 736,071 Ot:he r Funds 10,826,305

Total All Funds 12,455,872

Stephanie Gruba Legislative Research CouJJcil

Actua11 Budgeted FY2014 FY2015

199,712 202,720

0 0

4 072,296 4, 268,499

4,272,008 4, 471,219

69.2 7D.5

8,153 8,400

0 0

35,763 79,470

93,916 87,870

31,754 22,420

345,384 175,965

1,516,331 1,872,149

1,893,469 2,070,534

16,701 27,219

0 0

1.24,341 168,891

141 ,D42 196.110

2,921 2,000

0 0

70,428 43,300

73,349 50,300

0 0

885,435 325,000

5,161,797 9, 245,270

6 047,232 9,570,270

259,241 262,759

1,230,819 500,965 '11,030,956 15,682,579

12,521,016 16,.446,303

BHR-Page3

Governor Rec

FY2016

202,720

0

4,424,686

4,627,406

73.5

8,400

0

77,250

35,650

22,420

0

1,567,675

1,5:90,095

27,21 9

0

165,341

192,560

2,000

0

5 ,390

56,39D

0

50,000

500,000

550,000

262,759

50,000 6,789,342

7,102,101

Inc/Dec % Change Over Over

FY2015 IFY2015

0 0.0%

0 0.0%

156,187 3.7%

156,187 3.5%

3. 4.3%

0 0.0%

0 0.0%

{2,220) (2.8%)

(2,220) (2.5%)

0 0.0%

(175,965) {100.0%)

(304,474) (16.3%}

(480,,439) (23.2%)

0 0.0%

0 0.0%

{3,550) (2.1 %)

(3,550) (1 .8%)

0 0.0%

0 0.0%

6,090 12.6%

6,090 12.1%

0 0.0%

(275,000) (84.6%)

(8,745,270) (94.6%)

(9,020,270) (94.3%)

0 0.0%

{450,965) (90.0%) (8,893,237) (56.7%)

(9,344,202) (56.8%1

February 4, 2015 BHR Budget FYI6.docx

Major Expansions and Reductions

Governor's Recommendation

Budget Item General Fede ral Other Total Funds Fundis IFunds Funds FTE

State Compensation System - - 167,119 167,1 19 3.0

Support St.aft

Eliminating t.lle Risk Pooll - (450,965) (9 ,060,356) {9,51 1,321) -

Total - (450,965) (8,893,237) {9,344,202) 3.0

State Compensation System Support Staff - 3.0 FTE including one compensat ion specialis( one tra iner, and one management analyst to assist in the conversi on and ongoing support fo r the new state employee compensation system. Recommendation includes an increase of $167, 119 in other fund authority for costs related to the new FTE.

Elim"nating the Risk Pool - Recommendation includes a reducti on of $450,965 in federal funds and $7,560,356 in other funds within the South Dakota Risk Pool, and a reduc tion of $1,500,000 in other funds with in the South Dakota Risk Pool Reserve. Recommendat ion phases out the SD Risk Poo l, and com pletely eliminates the SD Risk Pool Reserve

Stephanie Gruba Legislative Research Council BH.R. - Page 4

February 4, 2015 BHRBudget FYJ6.docx

P ERSONNEL MANAGEMENT AND EMPILOYEE BENEFITS

The Mission of Personnel Management and Employee Benefits 1s to support state agencies m accomp!lishing their miss ions and goalls by administering an effec ·ve and efficient human resource management system for the state of South Dakota and its employees. Center 01 41 Personne l ManagementlErrployee Benefits

Personal Services Emp[oyee Salaries Empl

SOU TH DAKOTA RISK POOL

The South Dakota Risk Pool is a health insurance program fo;r those in divi'dual,s wh o have involuntarily lost their prior cred itable coverage through no faullt of their own and who cannot obta in health insurance. Tile risk pool program, codified at SDCL 53-17-113 to 53-17-1 · 3, inclusive, is admini,stered by this agency.

A 7-member board was created by the Leg islature to administer the Risk Poo l. The Governor appoints the members from the Governor's Office, Department of Social Services, Bureau of Human Resources, Department of Health, Division of Insurance, and 2 others. SDCL 53-17-119 ;requires the board to file a report with the Legislature by January 1 of each year. The report is to include informa ·0 11 regarding the operation of th e risk pool, assessments, number of enroll ees, claims, expenses, and premiums.

Center 01 43 Soutll Da'kota Risk Pool

Agency Gov Rec %, Change Ac1ual Actua l Budgeted Request Gov Rec line/Dec for From

ill1 .E:!ii Elli! Et!.§ E!'..1§. Eill: illQ.1§. Persona.I Se rvices

Employee Salaries 73,897 54,517 89,019 89,019 89,01 9 0 0.0% Employee Benefits 1,697 16,897 14,64 14,641 14,641 0 0.0%

FTE 1.2 1.1 1. 8 1.8 1.8 0.0 0.0%

Funding Tw es General 1,697 0 0 0 0 0.0% Federal 0 0 0 0 0.0% Ot er 93,897 71,414 103,660 103,660 103,600 0 0.0% Total PS 95,594 71,41 4 103,660 103,660 103,650 0 0.0%

Operating Expenses

Travel 0 2,220 2,220 (2,220) (100.0%) Contrac ti.Jal Services 576,826 590,309 485,281 435,281 (485,281) (100.0%) Suppl"es & l,bterials 901 804 3,550 3,550 (3,550) (100.0%) Other 6,587 ,318 6,047,180 8,070,270 8, 70,270 550,00D (7,520,270) {93.2%) Funding T w es Gener.al 642 ,836 0 0 0 0 0.0% Federal 736,071 1,23D,819 500,965 5[], ,965 50,00 (450,965) {90.0%) Ot er 5,786,138 5,407,473 8,060,356 8,000,356 500,00D (7,560,356) (93.8%) Total OE 7,165, :s 6,638,292 8,561,321 8,56 1,321 550,0D (8,01 1,321) (93.6%)

Totals

Fund ing Twes General 644 ,533 0 0 0 0 0.0% Federal 736,071 1,230,819 500,965 5!l•D,965 5D,00D (450,965) {90.0%) Other 5,880,035 5 ,478,887 8,164,016 s,r ,016 6D3,600 (7,560,356) {92.6%) Total 7,200,639 6,709,705 8,664,981 8,€64,981 653,600 (8,01 1,321) {92.5% )

Budget Notes

Elim ·nating the SD Risk Pooll - Reduction of $450,965 in federal fund expenditure authority and $7 ,560,356 in other fund expenditure authority for the elimination of the Risk Pool. Due to the Affordable Care Ac( individuals have the option to purchase health insurance, regardless of medical condit ions. Therefore, there is no longer a need to enroll individuals in the Risk Poo l. Hmvever, the Ri sk Pool will continue providing coverage fo r current enrollees th rough June 30 , 2015.

Stephanie Gruba Legislative Research Council BHR-Page6

February 4, 2015 BHR Budget FYJ6.docx

SOUTH DAKOTA RISK POOL RESERVE

To be used in the event the risk pool needs additional funding.

Cente r01 44 Sou t11 Da'kota Risk Pool Reserve

Agency Gov Rec %, Change Actual Actua l Budgeted Request Gov Rec line/Dec for From

~ £Yil E!'.11! E!'..'.!.§ E!'..1§. f.::!'..1:§: EQQ1.§ Operating Expe nses

Ot er D 1,500,000 1,SOD/il•OO (1 ,500,000) (100.0%) Funding Twes General D 0 0 D 0.0% Federal D 0 0 D 0.0% Ottter D 1,500,000 1,SOD, , 00 (1 ,500,000) (100.0% ) Total O E 0, 0 1,500,000 1,5!l ,000 (1 ,500,000) (100.0%)

Totals

Funding Twes Gener.al 0 0 0 D 0.0% Federal D 0 0 D 0.0% Ot er 0 1,500,000 1, • ,&00 (1 ,500,000) (100.0% ) Total 0 0 1,500,000 1,500,000 (1 ,500,000) (100.0%)

I Budget Notes

Elim ·nating the SD Risk Pool - Reduction of $1,500,000 in other fund expenditu re authority fo r the e limination of the SD Risk Pool Reserve.

Stephanie Gruba Legislative Research Council BHR - Page 7

February 4, 2015 BHR Budget FYJ6.docx

Governor's Recommended Employee Compensation and Bill ings Pool. - (page 01-23 of the Governor's FY16 budget book)

For FY16, the Governor recommended the 1) state employee compensation plan, 2) bureau bi ll ings, and 3) captive insurance be placed in a pool in BFM to be dist ributed to each agency. Therefore, individual agency personal services and contractual services budgets do not reflect budget increases for the compensation plan, bureau billings, or captive insurance.

1. Below are the estimated distributions for employee compensation fo r FY16. BFtvl will distribute dollars from the Pool after employees are placed in the nev.r General Pay Structure and career band pay-for-performance scores and percentages are calcu lated. The distributed amount to the agency \!Viii be in addition to the agency 's appropriated personal services budget.

General Federal Other Total

Est. FV16 Expendiitures Fun ds Funds Funds Funds Mark,et A djLJstments 3,484 0 74,385 77 ,869

Movement Toward Marlllet Value 4 , 72 149 75.56 9 80,190.

To!al Comp Pkg 7,956 149 149,954 158 ,059

./ Recommended FY16 - 2% market adjustment for all permanent employees (except Career Bands); 0%-6.6% market adjustments for Career Bands; 2.5% movement toward market value for General Pay Structure and PACE; 0% to 4.5% pay for performance for Career Bands; 0% health insurance .

./ FY15 - 3% across-the-board/ market adjustment for all permanent employees (including Career Bands); 3% adjustment toward job wo1ih for PACE; 0%-4.5% pay for performance for Career Bands; targeted compensation adjustments for a small number of hard-to-fi ll , below market vocational jobs;. 18.6% health insurance .

./ FY14 - 3% across-the-board fo r all permanent employees (except Career Bands); 3.5% to 4% market adjustment for Career Bands; 3.5% adjustment toward job vvort.h for PACE; 0%-4 5% pay for performance for Career Bands; 14.7% health insurance

./ FY13 - 3% across-the-board for all permanent employees (including Career Bands); 2.5% adjustment toward job ,.,-,orth for PACE ; 0%-7% adjustm ent toward market va lue for Career Bands; 3.3'% health insurance.

2. Below are the estimated distributions for bureau bill ings fo r FY16. The amount distributed to the agency will be in addition to the agency's appropriated contractual serv ices budget

General Federal Other Total

Est. FY16 Expenditures Funds Fu nds Funds Funds

Bureau Billings f or Expsa nsion 2,0.85 65 60,564 62,714

Bureau Billings f or Comp A,;g 50J 31 19,97_ 2 ,506

Total 2.588 96 80,536 83,220

3. The estimated dist ribution for Captive Insurance is not available at this time.

StephCJJ1ie Gruba Legislative Research Council BHR-Page 8

Febn,ary 4, 2015 BHRBudget FYJ6.docx

lnteragency Billings Below are the sources of funds the BHR used to pay for services provided by central governmental bureaus in FY2014.

General Federal other Total

FY14Actual Exeenditures Funds Funds Funds Funds

B eau of Adll'inrstraticm 17,049 681 238,027 255,757

Bureau of Fin1ill,c e an.d t;in,agem,nt 5 1,486 35,932 38,423

Bureau of : rrnn Resources 5,54"1 5,541

Bureau of ttorn-atio and Tetec omrunic aliens 17,058 SDD,8130 517,938

Total Bureau Billings: 34,112 - ,167 781 ,380 817 ,659

BHR Bi llings Revenue

FY2014 BHR Revenue Billings Summary

Deeart:ment Gove~Oftic;e B~u QI Fin@.11"'1 !!!r>d Mg:mt. 8~1,1 of AdministIQtion B~u QI Information & Teteoomm. 81,11 . 1,1 gf l·h.!ln!!n l~HOY~5 Revef11,1e Agriqifl!\,Jre TWfi5m G-,e, Fbh. & Ii" _ rb Trib!il ReUioM Sodul Servioei. 1-l alth L bor Retir11m _n1 T,,_,,5~n E~Uon Public Sl!fefy Eloo!ml of Regent.I Mili13Jy V wr.r,5 Aff 11'5 Commjor,5 H m nSer.ilon Erwlronmerit & Natural Re-50Urte5 PublloU ~ Cc:mmiHlon U!'ifl!IMI Judlialll S~ Ll(li5~re Attorney Geroer!!I Sohool & PubliG U!l'ldJ S~ofSll,le s .T-tY'.l'eJ SL Audi!« Total

Stephanie Gruba Legislative Research Council

General Federal H,227.97 UI08.D6 e.ea.e.15 2.778.03

35,4~.!50 3.872.53

0.307.311 38.433."3 3-0,!iM.~ 0,06tl.40 2a.DO

973.57 417,t,85;02 385;002:.7e

21,1,846.70 113,151.83 3.0Z-7.ll1 11)3.~3.58

20.21)3,03 40,044.95 18~2.()'2 27.llG7.23

713,00 8me . .w 39.1544.54 7.0QJ.61 go2,7e

3115.297..411 8,001.21l 112.644!1.52 222.,018.24!1 30.880.00 Ja,418.90

eoo.10 402 37

149.00 640.CIO 228.00

42.00

, 173,957.35

BHR-Page9

Other 5.787.42

11.11,87.54 11 .4"2. 1'1

135.813.24 5,541.00

122.74{1,41

78.821 .07 11 .147.52

327.7e3.34

10,128.83 Bll.785.87 '3,81e.41 7,3,84,38

700.llillO.Oll

150,&87.-43 2A35.0D 1.2,47.39

41 . 10&."4 14.77U7 1.290.87

25.248.50 7.033.611 3,081 .00

a,15.00

32

Total 24.033.4!1 1$,32.0.211 74,240.14

175,181.30 1).541 .00

12'1, 1111.80 147,818.ll5

17.24.Ul!I 327,763.34

973.57 813,506.01 2'.N,784.40 2:20.l;lllY .GD

7,384.3$ 780."'50.0ll

72.297.08 203.820.08

3,148.00 4".7118.37 '49.7e2.81

418. 138.05 335,1155.4!15 100.547.152

8.110.12 3.081.00

14ll.OD 1,413.00

42.0CI

A,218,,926.04

February 4, 20I5 BRR Budget FYJ6.docx

Other Fund Balances

Blue F.nding Cas is :mdl!mutment 60-~.fon th Lowe., I J\,fontbJy Css h Book Balance June 3 0 A,.,,1·age Balance in Pu t f h ,, Year.,

Campa.Dy and Fund J\ame Page FY!OlJI f'Y:2,0H Cash Bal:mce Amountl ~funth Com;:,a.ny 3035 - State i:.mploy ee s Benefifa Plan

Fm,d 63 20,791,006 .6,370,.rn 22,868,205 11,123,877 March20B Cou:;,a.ny 303.5 - State fup loyee5 \Vorkers' Con:;,enaation ProgramFut1d 64 5,741,182 4,490,921 5,666,JU9' 4,218,526 M arch 2010 Com,oa.ny .l0'35 - D.ako a Ce,wet1! Liiia a.nd \1 o rt.er; ' Com;oeits at ion 65 278,158 233,455 23 7,932 # 0 Jut , 2009 Cou:;,a.ny 6009- lfuman ~ ao""' "' - Lab or & ~fgml:. 66 903,31 962,763 839,.4 6 544,969 J t·2009 Com;:,a.ny 6521-.South Dakota Ris k PoolFut1d (il 7,107,025 6:27 :,-035 6,9·&9,,997 5,639,089 M art

Ccmpen;ation 69 J 6,9'33 190,4 S 165,.608 l,839 t · 21)10

:!A,,eras;e cash balance ;uid t>,rnri!es! cash bal:mce are actualh· less than face, vears due to ai,;e offimd.

FY1 6 Recommended State Employee Compensation Plan

The FY16 recommended State Employee Compensation Plan includes tv,'o main components: 1) a market adjustment and 2) movement toward market va lue.

1. lvlarket Adjustment:

a) Al l permanent state employees, except th ose in Career Bands, wi ll receive a 2% market adjustment.

b) Career Band employees will receive market adjustments based on actual market movement of the job family:

• Nursing: 0% • lnformationTechnology: 1.1 % • Accountants/Auditors: 1.7% • Engineers: 2. 0% • Environmental Sci:entists 6.6%

2. Movement toward Market Value:

a) The Governor is moving al l permanent employees under his control not currently in career bands from the PACE system, along with other classified civil service employees, info a new market-based General Pay Structure. Employees inc luded in the new General Pay Structure and those remaining in the PACE system are recommended to receive a 2.5% movement tov!/ard market value. Unclassifi ed employees wil l receive 0% movement toward market value.

b) Employees in Career Band families are recommended to receive a 0'% to 4.5% performance-based adjustment toward market value.

There is no recommended budget increase for the employer-paid portion of the state employee health insurance plan.

Steph(]J1ie Gruba Legislative Research Council BHR-Page 10

Febn1ary 4, 2015 BHRBudget FYI6.docx

I Health Insurance Per Benefitted Employee History

1. FY10-$5,773

2. FY11-$6,135

3. FY12 - $6,135

4. FY13 - $6,335, plus a one-time adjustment of $1 ,615, totaling $7,950

5. FY1 4 - $7,269, plus a one-time adjustment of $2,035, totaling $9,304

6. FY15 - $8,622

7. FY16 - $8,622

Health Insurance Cost 1per Employee $10,000

$9,304 One-Time Adjustment

$8,,CJOO Base Rate $7,95-0

$6,(JOO

$4,000

$2,,000

$0 FYlO FY U FY12 FY13 FY14 FY15 FY16 Rec.

Stephanie Gruba Legislative Research C01mcil BHR-Page 11

Febnu:rry 4, 2015 BHR Budget FYJ6.docx

Federal Funds Project The 20 15 Joint Committee on Appropriations Budget Ca ll Letter to agencies requested info rmation on the amount of federa l funds the agency expects in FY2016 and a contingency plan if the expected funds were to decrease. In FY20 13 (the most recent audited material) BHR expended $736,07 1 in federal funds_

STATE OF SOUTIH DAKOTA

Schedule of Expenditures of Federa l Awa rds b1 Fede ral Department

Fisca l Year Ended June 30 , 2'013

State CFDA

Agency [ii] Num ber l::, Federa l AgenC)' l::, Program Bure.au of

u an Re;o rces

93.18 Ce n:e a to G ants tC> Sta:es iOr Opera:io

l;ed care a rn d . . _ \.\;?d"caidi Se ' ces o,fQoahfie-d H1gr,-R1s~ Poe ls

L:J

FY13

Ex pe ndil res/

Disb urse ment sl

ls.s,u.ance s, .:J

36 ,1] 7 D 'fo Match .a t~

Fund ng Ava i!a ble

in FY16?

'\\Jo1'U no~\1n'",

pro,ide your

oonoin ge ncy

?•Ian . If -Yes".

p ro,•de do I la r

amownt

El im i a:ic o "Risk oolinF 6

elim , a1e·a :he oee-d ' r th is fnJ nd i :~-

Notes: The FY13 total displayed above 1will differ from ac tual federal funds expended as displayed in the budget materials bec ause some gran ts are expended from multiple agencies. Mandatory/Discretionary determination per FFIS.

Mandatory Grant (Direc t Spending) - Program funding level determined by authorizing legislation, which provides specific funding level or adjusts the level based on eligibility factors, such as caseloads and oosts For some mandatory programs_, the funding level is set by the authorizing legislation, but the program is funded through the appropriations process.

Disc retionary Grant - Program funding is determ ined by the annual appropriations process_

Steph{JJ1ie Gruba Legislative Research Council BHR - Page 12

February 4, 20 l 5 BHRBudget FYJ6.docx