Call to Order and Roll Call
The third meeting of the Budget Review Subcommittee on General Government, Finance, and Public Protection of the Interim Joint Committee on Appropriations and Revenue was held on Thursday, August 27, 2015, at 10:00 AM, in Room 129 of the Capitol Annex. Senator Danny Carroll, Chair, called the meeting to order, and the secretary called the roll.
Present were:
Members: Senator Danny Carroll, Co-Chair; Senators Joe Bowen and Johnny Ray Turner; Representatives Adam Koenig, Brad Montell, Steve Riggs, and Tom Riner.
Guests: Russ Salsman, Chief of Staff, Department for Local Government; Darren Sammons, Staff Attorney, Department for Local Government; Lori Wilson, Local Government Advisor, Department for Local Government; Joe Barrows, Executive Director, Commercial Mobile Radio Service Board; and, Tammy Hubbard, Deputy Administrator, Commercial Mobile Radio Service Board.
LRC Staff: Frank Willey, Katie Comstock, Stephanie Rich, and Spring Emerson.
Special Purpose Governmental Entities
Russ Salsman, Chief of Staff, Department for Local Government, provided an overview of Special Purpose Governmental Entities (SPGEs). Darren Sammons, Staff Attorney, Department for Local Government, and Lori Wilson, Local Government Advisor, Department for Local Government, provided a presentation relating to budgeting issues for SPGEs.
In response to questions from Chair Carroll, Mr. Sammons said some examples of SPGEs are volunteer fire departments, public libraries, main street programs, tourism boards, soil and water conservation districts, water districts, airport boards, parks and recreation departments, etc. and they do not have taxing authority. The definition of an SPGE as provided in KRS 65A is any entity that exercises less than statewide jurisdiction; exists for the purpose of providing one or a limited number of services or functions; is governed by a board, council, commission, committee, authority, or corporation with policy making authority that is separate from the state and the governing body of the city, county, or cities and counties in which it operates; and, has the independent authority to generate public funds, or may receive and expend public funds, grants, awards, or appropriations from the state, any agency, city, county, or other SPGE. Mr. Salsman added that SPGEs received public funds in the 2012-2014 state budget and are currently expending those funds. They may or may not receive public funds in future state budgets.
In response to a question from Representative Riggs, Mr. Salsman said the Department for Local Government (DLG) should be given the tools necessary for oversight, such as an Inspector General.
In response to a question from Senator Bowen, Mr. Sammons said a template for starting a SPGE would be difficult due to the variances in how the entities are structured. Ms. Wilson stated that KRS 65.005 specifies the notification requirements.
In response to questions from Representative Montell, Mr. Sammons said fees are set by statute. The fees are Restricted Funds.
Ms. Wilson demonstrated the search options on the DLG website’s public portal.
In response to questions from Chair Carroll, Ms. Wilson said the information submitted on the DLG website is monitored and entities are notified for non-compliance.
In response to questions from Representative Riggs, Mr. Sammons said the DLG website is a resource for public use, and any concerns should be directed to the special district, county, or city, depending on the issue.
In response to a question from Chair Carroll, Mr. Sammons said an example of an SPGE with compliance difficulties would be volunteer fire departments. Ms. Wilson said the DLG works with the volunteer fire departments.
Commercial Mobile Radio Service Board
Joe Barrows provided an overview of the Commercial Mobile Radio Service (CMRS) Board and its operations.
In response to a question from Chair Carroll, Mr. Barrows said approximately $18 million of $100 million in revenues is from local cell phone fees, and comprises approximately 22 percent of total cost. He said P25 grants are through the Department of Homeland Security and retailers collect the fees.
In response to a question from Representative Koenig, Mr. Barrows said Marion County does not collect a landline fee.
In response to a question from Chair Carroll, Mr. Barrows said some board members are in an advisory capacity, and some are without authority.
Chair Carroll called for a motion to approve the minutes of the June and July meetings; motion was made by Senator Turner, seconded by Representative Riner, and the minutes were approved without objection.
There being no further business before the subcommittee, the meeting was adjourned at 11:40 AM.