Present:  P. Penniman, D. Booth, M. Robertson, T. Joseph (appointed a temporary member)
Excused:  L. McBean, T. Todd
Staff:  K. Smithers, M. Dolan, S. Whicher, D. Squires, W. Skinner, T. Herden
Other Board Members: D. Kiefer
Guests:  Carl Haynes and Bob Ross, TC3

Called to Order

 Mr. Penniman called the meeting to order at 2:03 p.m.

Changes to the Agenda

 There were no changes to the agenda.

Tompkins Cortland Community College
 
 Mr. Haynes said the revenue in the 2002-2003 budget for the College is made up of about four components, tuition being a major portion.  He stated revenue from tuition is going up 17 percent and reflects a six percent growth in enrollment.  He said a the six percent increase in enrollment they are anticipating is very conservative.  Mr. Haynes said the College is not asking the local sponsors for any increase.   They are decreasing the appropriated surplus; however, he said they are trying very hard not to rely on the fund balance to support the budget.   He said other county chargebacks are up by approximately one percent ($225,000).  He said the growth in enrollment is equally attributed to in-County and out-of-County students.  Other revenues generated by fees are also up approximately 13 percent.

 Mr. Haynes also spoke of the expense side of the budget and said personal services are up approximately ten percent.  This reflects an increase in contractual increases for various employee groups and minor increases in staff.  He said there is a significant increase of $50,000 to $200,000 in equipment for the College.  He said the College’s goal is to get this amount up to two percent of the operating budget and $200,000 represents one percent of the budget.  He said contractual expenses are up by 13 percent; a portion of that reflects the usual instructional supplies that increase when enrollment is up.   He said benefits are also up by approximately eight percent, of which health insurance is a major portion.

 Mr. Haynes spoke of the enrollment level and said it has been increasing faster than expected.   He said the College will need to analyze the demographics and where the enrollment is coming from.  He said they plan to use the next three or four years of reasonable growth to build reserves.

 Mr. Booth asked if Mr. Haynes felt the growth in enrollment is attributable to the rising costs of four-year schools.  Mr. Haynes said there are several contributing factors.  He said a recent research study shows that because of the recent terror attacks students are inclined to stay closer to home.   He also said the College has improved in such areas as the housing and athletic programs.

RESOLUTION NO.   - MODIFICATION OF THE 2001-2002 OPERATING BUDGET – TOMPKINS CORTLAND COMMUNITY COLLEGE

 It was MOVED by Ms. Robertson, seconded by Mr. Booth, and unanimously adopted by voice vote by members present, to approve the following resolution and submit to the full Board:
 WHEREAS, a proposed operating budget for Tompkins Cortland Community College for the fiscal year September 1, 2001 through August 31, 2002 was approved by the Board of Representatives of the County of Tompkins pursuant to County Law and Section 6306 of the Education Law of July 17, 2001, and
 WHEREAS, revenues will exceed the original budget due to an increase in enrollment, and there is a need to utilize such funds for operating purposes, and
 WHEREAS, the total revenue and expenditures will be increased by $406,923 to a modified level of $18,831,323, and
 WHEREAS, the local sponsor share will not be affected by the modification, now therefore be it
 RESOLVED, on recommendation of the Budget and Capital Committee, That said proposed Modified 2001-2002 Operating Budget in the amount of $18,831,323 of which the sponsoring community contribution remains in the amount of $3,431,250 be and the same hereby is approved,
 RESOLVED, further, That this resolution shall become effective upon the adoption of a concurrent resolution by the Cortland County Legislature.
SEQR ACTION:  TYPE II-20

RESOLUTION NO.   - ADOPTION OF 2002-2003 OPERATING BUDGET – TOMPKINS CORTLAND COMMUNITY COLLEGE
 

It was MOVED by Mr. Booth, seconded by Ms. Robertson, and unanimously adopted by voice vote by members present, to approve the following resolution and submit to the full Board.  There was a question raised about the figure in the resolution.  Mr. Haynes said he would check on this and will let Mrs. Smithers know which is the correct figure.

 WHEREAS, a proposed operating budget for Tompkins Cortland Community College for the fiscal year September 1, 2002 through August 31, 2003 has been presented to the Board of Representatives of the County of Tompkins pursuant to County Law and Section 6306 of the Education Law, and
 WHEREAS, the Board of Representatives has conducted a public hearing on said proposed budget on the 16th day of July 2002, now therefore be it
 RESOLVED, on recommendation of the Budget and Capital Committee, That said proposed 2002-2003 operating budget in the amount of $20,512,600 of which the sponsoring community contribution is in the amount of $3,431,250 be and the same hereby is approved,
 RESOLVED, further, That the Board of Representatives of Tompkins County includes in the 2003 Tompkins County Budget portion to be determined pursuant to the approved plan for said College in effect as of September 1, 2002 and that the amount when determined be raised by taxation in the County of Tompkins in the fiscal year 2003,
 RESOLVED, further, That this resolution shall become effective upon the adoption of a concurrent resolution by the Cortland County Legislature.
SEQR ACTION:  TYPE II-20

Medicaid Presentation

 Mr. Herden distributed the attached spreadsheet.  He said the Department is expecting a 21 percent increase in the local share for Medicaid with a $1.4 million shortfall in the current year budget.   He referred to the graph showing gross payments to providers that compares benefits paid in the first 25 weeks of 2001 and the 25th week of 2002.  He said in terms of changes seen in the local share of MMIS he said things were fairly flat for a five-year period; however, last year there was an eight percent increase over the previous year.  At present they are projecting an increase for 2002 of 21 percent ($1,364,745).

 Mr. Herden said there is not one or two factors that are responsible for the increases.   A large driving factor is an increase in caseloads with a ten percent increase over last year.  He noted there may and often are, more than one person on a case.  Therefore, the actual number of eligible people is significantly higher than the number of caseloads.  Ms. Dolan said she would estimate that there are approximately 9,000 eligible individuals.

 Mr. Herden said Medicaid is a federal program that states must run.  However, there are pieces that states may choose to implement, and there are also states that may choose to run optional services.  New York State has chosen to implement all of the optional components of the Federal Medicaid program and has asked for waivers in several areas.  He said unlike most states, New York State shares the burden of the Medicaid program with local districts.  The program that the local Department of Social Services runs accepts applications, determines eligibility, and issues Medicaid cards.  For most Medicaid expenditures that is where the local DSS role ends.  When a person goes to a physician, the provider sends the bill to a New York State processor.   State dollars are paid to that provider up-front and the local DSS receives a bill for its share on a weekly basis.  It is only that local share that appears in the Department’s budget.  Mr. Herden said in taking the average increase in caseload and multiplying it by 2001’s per caseload annual costs, there would be a local share increase of $600,000.  The other big portion that is contributing to the large increase is the utilization of particular categories or rate increases.  The largest growth is in the category of home health care which is currently estimated at a 54 percent increase in year-to-year expenditures.  There is also a 22 percent increase in pharmacy costs, 31 percent increase in in-patient costs, and 46 percent increase in home health expenses.  He said these categories, in addition to an increase in caseloads, account for all but $60,000 of the year-to-year increase in Medicaid expenses.

 Ms. Dolan said she is still trying to analyze the data in an attempt to identify the causes of these increases.  She said it is possible that there are a few high cost cases that are driving the figures.    She stated she plans to look into the fact that the greatest growth area is in the area of the greatest reimbursement and why there is an increase in local share percentage.

 Ms. Dolan said there are other programs that will come on-line later in the year and will drive those increases even more.  Mr. Herden said he expects at least another $1 million dollars in expenses next year.

Approval of Minutes

 It was MOVED by Ms. Robertson, seconded by Mr. Booth, to approve the minutes of June 18 and 25, 2002.  Ms. Robertson said in the future she would like the minutes to include spreadsheets or other information that is compiled during the meeting.   This request was debated as some members and staff felt the minutes should not include that level of detail, nor should they include information that is extremely speculative.   Following discussion, it was requested that the portion of the June 25th minutes covering the capital program discussion be amended to include wording specific to the discussion and the scenario that was discussed.  The motion was withdrawn with the understanding that wording would be prepared and included in the next agenda.   It was also decided that the Committee will devote the next meeting to discussion of the capital program.

Report from the Chair

 Mr. Penniman asked Mr. Joseph to temporarily appointment himself to the Committee.

 Mr. Penniman reported he received a letter from Representative Proto, Chair of the TCAT Board, in regard to the TCAT transportation center siting issue.  He said Mr. Proto feels the Board should have a discussion on that subject.   Mr. Joseph said he has been discussing this with Representatives Blanchard and Proto.  He said he thinks there are unresolved issues that the TCAT Board needs to sort out before the Board discusses this.   Mr. Joseph said Representative Proto is concerned that TCAT is making a commitment that obliges the County and the other partners to put up more money for the intermodal center.  He stated Representative Blanchard does not agree with this interpretation and feels bus lines are expected to pick up the capital cost.  Mr. Joseph said there are many steps that need to be taken before any final decision is made or County approval is sought.

Report from the Finance Director

 Mr. Squires distributed a report on the last six months of finances for the County.  He said the main issue of concern is related to increased Medicaid costs.  He said there is a substantial amount of income budgeted in the Medicaid account ($1.6 million).  He said in the last four to five years the County has always generated excess money in the revenue account and he hopes that will continue to offset the appropriation side of the budget.  He spoke of the timing of the payments and said fourth quarter revenues are not booked until February of the following year.  He said another item of concern is interest on investments.  He said right now the County is only averaging approximately two percent on its money.  Mr. Squires said he projects an under-spending in the payroll account by $1.2 million; however, this is not as much as he would have anticipated.   He noted that not all of that amount is local share.  He reported sales tax at the end of May was $1.4 million ahead of last year.
 
Report from the County Administrator

 Mr. Whicher had no report.

Report from the Deputy County Administrator

Mrs. Smithers reported on anticipated 2002 savings and distributed a document showing a detailed summary of those savings.  She said she will distribute this information to the full Board and will continually update the document and re-distribute it when major changes have been incorporated into it.

RESOLUTION NO.     - APPROPRIATION FROM CONTINGENT FUND FOR TERMINAL AND REPLACEMENT PAY AT THE SHERIFF’S OFFICE

 MOVED by Mr. Joseph, seconded by Mr. Booth.  Mr. Squires was asked if he received any information from the Sheriff that shows how these numbers were calculated.  It was requested that Mr. Squires work with the Sheriff to work out an agreement on a way to certify that these and future numbers are correct.    It was MOVED by Mr. Joseph, seconded by Mr. Booth, and unanimously adopted by voice vote by members present, to postpone action on this resolution until the next meeting.  RESOLUTION POSTPONED.

 WHEREAS, the Sheriff’s Office had an employee, Lynn Watros, retire effective June 14, 2002, at a cost of  $13,759, for terminal pay, and
 WHEREAS, the Sheriff’s Office has employees who were on compensation and unable to perform their duties, and
 WHEREAS, the Fiscal Policy of Tompkins County allows for terminal pay and replacement pay for employees who have been out longer than two months from the Contingent Fund, now therefore be it
 RESOLVED, on recommendation of the Public Safety and Budget and Capital Committees, That the Director of Finance appropriate a total of $13,759 for terminal pay for Lynn Watros and $47,680 for replacement pay encompassing the period of January 1, 2002 – June 30 2002,
 RESOLVED, further, That the money be distributed to the following accounts:

FROM:  A1990.54440  $61,439
TO:  Civil   A3113.51000412 Regular Pay 10,920
  A3113.58800 Fringe  2,839
 
       Uniform  A3113.51000419 Regular Pay 19,830
  A3113.58800 Fringe  5,156
 
       Corrections A3150.51000406 Regular Pay 18,012
  A3150.58800 Fringe  4,682
SEQR ACTION:  TYPE II-20

RESOLUTION NO. AUTHORIZATION FOR CONTINGENT FUND APPROPRIATION TO COVER FINAL PAYMENT FOR OUTSIDE LEGAL FEES RELATED TO REDISTRICTING LAWSUIT-COUNTY ATTORNEY

 MOVED by Mr. Booth, seconded by Mrs. Robertson, and unanimously adopted by voice vote by members present, to approve the following resolution and submit to the full Board:

 WHEREAS, outside counsel was obtained to facilitate the County's defense in the recent redistricting lawsuit imposed by the Town of Ithaca and several other parties, and
 WHEREAS, the County has been billed by Harris Beach, LLP, for legal services from January 18, 2002 through June 21, 2002 totaling $1,242.50, and
WHEREAS, payment is now due, and
 WHEREAS, this payment brings total bills to date on this case to $56,125.45, now therefore be it
 RESOLVED, on recommendation of the Government Operations and Budget and Capital Committees, That the Director of Finance be authorized and directed to make the following budget appropriation:

 FROM:  A1990.54400 Contingent Fund   $1,242.50
 TO:  A1420.54442 Professional Services  $1,242.50
SEQR ACTION:  TYPE II-20

RESOLUTION NO. AUTHORIZATION FOR CONTINGENT FUND APPROPRIATION TO COVER FINAL PAYMENT FOR OUTSIDE LEGAL FEES RELATED TO COMMUNICATIONS SYSTEM LAWSUIT – COUNTY ATTORNEY

 MOVED by Mr. Booth, seconded by Ms. Robertson, and unanimously adopted by voice vote by members present, to approve the following resolution and submit to the full Board.  Ms. Robertson noted that she was not on the Board when actions were taken that led to the lawsuit.  She said she is against it in principle but will vote to pay the County’s bills.

 WHEREAS, outside counsel was obtained to facilitate the County's defense in the recent lawsuit related to the proposed Communications System and the County Public Works Building imposed by the Town of Ithaca and several other parties, and
 WHEREAS, the County has been billed by Harris Beach, LLP, for legal services from February 12, 2002 through June 21, 2002 totaling $4,480.78, and
 WHEREAS, payment is now due, and
 WHEREAS, this payment brings total bills to date on this case to $13,511.99, now therefore be it
 RESOLVED, on recommendation of the Government Operations and Budget and Capital Committees, That the Director of Finance be authorized and directed to make the following budget appropriation:
 FROM:  A1990.54400 Contingent Fund   $4,480.78
 TO:  A1420.54442 Professional Services  $4,480.78
SEQR ACTION:  TYPE II-20

RESOLUTION NO.        - BUDGETING UNIT RECONFIGURATION AND FISCAL TARGET ADJUSTMENT – COUNTY ADMINISTRATION AND PERSONNEL

 MOVED by Ms. Robertson, seconded by Mr. Joseph, and unanimously adopted by voice vote by members present, to approve the following resolution and submit to the full Board:

 WHEREAS, the Records Management Program is in need of support and assistance that cannot readily be provided through the Department of Administration, and
WHEREAS, the Central Services Division is a program within the Personnel Department and works in conjunction with the Records Management Program, and
WHEREAS, greater efficiencies can be achieved through a reassignment of tasks that can be more readily made when functions and oversight are within a single department, now therefore be it
 RESOLVED, on recommendation of the Government Operations and the Budget and Capital Committees, That effective immediately, the Records Management Program shall be transferred from County Administration to Personnel, until such time a provision is made to return this function to County Clerk,
 RESOLVED, further, That the 2003 County Administration Fiscal Target shall be reduced by $51,012 ($63,765 less 20% Target Reduction pursuant to Resolution No. 105 of 2002) with a commensurate increase in the Personnel Fiscal Target.
SEQR ACTION:  TYPE II-20

 The meeting adjourned at 4:15 p.m.