Committee Summary for Fiscal Committee (01/30/2025)

Bill/Time	Type	Title	Sponsor
Unclear 00:03:40.400 - 9:02:36 AM	General Working Session	Unclear

Unclear: Chairman of the House Finance Committee Information Only00:03:40.400 - 9:02:36 AM; The chairman called the fiscal committee meeting to order on January 30th, 2025, and proceeded to elect officers. As the chairman of the House Finance Committee, he is by law the chairman of the fiscal committee. He called for nominations for the vice chair.
Unclear: Senator Carson Information Only00:04:20.720 - 9:03:16 AM; Senator Carson nominated Senator Jim Gray for the position of Vice Chair of the finance committee.
Unclear: Senator Information Only00:04:50.759 - 9:03:46 AM; A senator seconded the nomination of Senator Jim Gray as the Vice Chair of the finance committee. The nomination was unanimously approved with no opposition.
Unclear: Representative Walner Information Only00:04:50.759 - 9:03:46 AM; Representative Walner nominated Representative F to be the clerk of the fiscal committee. The nomination was seconded and approved unanimously.
Unclear: Chairman of the House Finance Committee Information Only00:05:37.560 - 9:04:33 AM; The chairman appointed Michael Caine as the legislative budget assistant for the biennium, with the approval of the committee, which was unanimously approved.
Unclear: Chairman of the House Finance Committee Information Only00:05:37.560 - 9:04:33 AM; The chairman moved to adopt the fiscal committee rules and procedures, which was seconded and unanimously approved by the committee.
Unclear: Representative F Information Only00:06:10.080 - 9:05:06 AM; Representative F introduced a motion to amend the fiscal committee rules to allow audits to be automatically released upon inclusion on the fiscal committee agenda. This amendment would enable the public and committee members to review the audits before the meeting and provide input.
Unclear: Representative Edwards Information Only00:06:44.880 - 9:05:40 AM; Representative Edwards asked for clarification on the amendment's semantics and timing, specifically concerning the trigger for accepting an audit. Representative F explained that the amendment changes the process so that audits are released to the public upon being added to the fiscal committee agenda, without needing further action from the committee.
Unclear: Representative Walner Information Only00:07:32.039 - 9:06:28 AM; Representative Walner responded to a question about whether any audits had been rejected in the past, stating that he could not remember any instances of rejection.
Unclear: Senator Gray Information Only00:08:19.360 - 9:07:15 AM; Senator Gray supported the amendment and mentioned his goal of encouraging the use of tablets for accessing meeting materials to reduce paper usage. He saw the amendment as a step towards this goal and seconded the motion to adopt it.
Unclear: Chairman of the House Finance Committee Information Only00:09:10.519 - 9:08:06 AM; The chairman called for a vote on the amendment to the fiscal committee rules. The amendment was unanimously adopted, and the chairman moved on to the regular agenda, starting with the acceptance of the minutes from the last meeting on November 15, 2024.
Unclear: Senator Gray Information Only00:09:56.240 - 9:08:52 AM; Senator Gray moved to approve the minutes from the November 15, 2024 meeting, which was seconded by Representative Edwards. The minutes were adopted with no additions or corrections.
Unclear: Chairman of the House Finance Committee Information Only00:10:47.720 - 9:09:43 AM; The chairman reviewed the consent calendar, noting items that were removed or withdrawn. The consent calendar, as amended, was moved for approval by Senator Gray and seconded by Senator Rosenwald, and was adopted with no opposition.
Unclear: Chairman of the House Finance Committee Information Only00:12:22.959 - 9:11:18 AM; The chairman moved on to discuss items that were removed from the consent calendar under Tab 6, specifically item 25004, and mentioned that the Department of Health and Human Services was present to address the item.
Unclear: Ian Watt, Director for the Division of Public Health Services Information Only00:12:51.360 - 9:11:47 AM; Ian Watt responded to a question from Representative Edwards regarding the newborn screening program in New Hampshire. He explained that the program is mandatory with an opt-out option for parents, as per RSA 132:10-A and RSA 132:10-DC. He detailed that the program screens for hereditary disorders, which are critical to detect within the first 24 to 48 hours after birth, as these conditions do not show visible symptoms but can lead to severe health outcomes or death if not addressed quickly. In 2023, the opt-out rate was less than 1%, with 99.2% of newborns being screened.
Unclear: Representative Edwards Information Only00:15:11.360 - 9:14:07 AM; Representative Edwards expressed interest in reviewing the default opt-out data collection programs managed by the Department during the next legislative session. He aims to consider mandatory opt-in policies for data collection and requested to discuss various programs with the department to assess their appropriateness.
Unclear: Senator Rosenwald Information Only00:15:56.959 - 9:14:52 AM; Senator Rosenwald inquired about the opt-out rate for the newborn screening program, to which Ian Watt responded that in 2023, the opt-out rate was less than 1%, with 99.2% of newborns being screened.
Unclear: Representative F Information Only00:16:27.920 - 9:15:23 AM; Representative F asked about the placement of community health workers funded by a grant, specifically if they were located in public schools. The response clarified that none of the community health workers are working in schools; they are based out of Family Resource Centers, public health networks, and other health-based facilities.
Unclear: Representative Edwards Information Only00:17:06.640 - 9:16:02 AM; Representative Edwards raised a question about the telework policies of the Department of Health and Human Services (DHHS) in light of national trends towards returning government employees to offices. The response from DHHS indicated that they follow statewide policy on telework and their procedures are consistent with state policies.
Unclear: Danielle Shandon, Director of Finance for the Department of Transportation Information Only00:21:47.279 - 9:20:43 AM; Danielle Shandon, along with Alan Ham, the state maintenance engineer for the Department of Transportation, responded to a question from Senator Rosenwald regarding winter maintenance funding. They explained that the requested transfer of $5.7 million might not be sufficient to cover the costs for the remainder of the winter season due to unpredictable storm conditions. They also discussed plow deployment practices and confirmed that plow operations are typically overseen by a patrol foreman and a supervisor.
Unclear: Patricia Tilly, Associate Commissioner, Department of Health and Human Services Information Only00:27:00.440 - 9:25:56 AM; Patricia Tilly responded to Senator Rosenwald's questions regarding the Health and Human Services dashboard. She explained that the Sununu Youth Center statistics were only through November because the dashboard was submitted before the end of December. She also mentioned a data error in the aid to the permanently and totally disabled case loads and noted that the Community Mental Health Center case load data was not yet accurate due to ongoing EHR conversions at two centers.
Unclear: Edwards Information Only00:29:11.919 - 9:28:07 AM; Edwards expressed appreciation for the positive trend observed at the Youth Development Center (YDC) where the census remains low. He had previously requested a briefing on the mechanisms used to monitor the YDC census and anticipate necessary actions such as transferring individuals. He inquired about the development of this presentation and was informed that it is being prepared, focusing more on the new facility but relevant to the existing one. The team is working with courts and law enforcement to address constraints in the new facility and maintain a low enrollment. Edwards appreciated the ongoing coordination with the community and looked forward to receiving detailed information.
Unclear: Lehman Information Only00:31:13.480 - 9:30:09 AM; Lehman raised questions about item U38, related to YDC claims. He was concerned about the resolution of these claims, noting that the judicial branch finds it a daunting task to handle them efficiently. The judicial branch had been asked for a 4% budget cut, which Lehman worried would impact the efficiency of handling cases. He inquired about any slowdown in case resolution due to the volume of claims and budget constraints.
Unclear: Jen Foley, General Counsel for the YDC Settlement Fund Information Only00:33:38.480 - 9:32:34 AM; Jen Foley clarified that her role involves the claims moving in the settlement process, not the litigation in court. She deferred questions about the litigation pace to the Attorney General's office.
Unclear: Laura Raymond, Attorney General's Office Information Only00:34:25.440 - 9:33:21 AM; Laura Raymond stated that the proposed budgetary cuts to the judicial branch have not currently impacted the litigation related to YDC cases. She mentioned that the Attorney General's office focuses on the claim fund and not the day-to-day litigation.
Unclear: Laura Raymond, Attorney General's Office Information Only00:35:10.839 - 9:34:06 AM; Laura Raymond explained that the Attorney General's office is preparing to present their budget and operations next week. She noted that they are handling the YDC cases with a combination of in-house resources and outside counsel, and the spending has been consistent. She did not see the workload as an unfair burden but acknowledged it as hard work. Raymond also mentioned that the settlement fund dollars are appropriated to the Department of Justice, which reimburses the judicial branch for costs related to the settlement process.
Unclear: Senator Rosal Information Only00:39:08.000 - 9:38:04 AM; Senator Rosal expressed concern about the potential financial exposure from the YDC claims, noting that with around 600 pending claims and an average payout of $500,000, the total exposure could reach $300 million. He questioned whether this average would hold and sought clarification on the pattern of claims, especially regarding allegations of physical and sexual abuse. He wondered if there was an exaggeration in the numbers of accused individuals.
Unclear: Laura Raymond, Attorney General's Office Information Only00:39:55.760 - 9:38:51 AM; Laura Raymond responded to Senator Rosal's concerns by explaining that she could not argue with the math but cautioned against assuming the average payout would remain the same for future claims. She noted that the nature of claims might change, potentially affecting the average resolution amount. Regarding the allegations of abuse, she mentioned consistency between the claims fund and the criminal investigation but could not go into further detail due to the ongoing nature of the cases.
Unclear: Christine Young, Director of Audits for the LBA Information Only00:43:49.280 - 9:42:45 AM; Christine Young introduced the audit reports for the turnpike system, conducted by KPMG. She mentioned that Bob Mahoney from KPMG would present the report, and Danielle Shand, Director of Finance for the Department of Transportation, was present for questions.
Unclear: Bob Mahoney, KPMG Information Only00:44:35.480 - 9:43:31 AM; Bob Mahoney presented the audit report for the turnpike system, noting an unmodified or clean opinion issued on December 23, 2024. He highlighted the absence of significant deficiencies or material weaknesses in internal control over financial reporting and compliance. The turnpike system was also found to be in compliance with bond resolutions. Mahoney discussed the required communications under auditing standards, mentioning no significant unusual transactions, one uncorrected audit misstatement related to other post-employment benefits, and no instances of fraud or illegal acts.
Unclear: Danielle Shand, Director of Finance for the Department of Transportation Information Only00:47:48.359 - 9:46:44 AM; Danielle Shand expressed satisfaction with the clean audit opinion and thanked her staff for their hard work despite a 45% turnover rate. She also acknowledged the assistance from Bob Mahoney and Christine Young.
Unclear: Jean Mitchell, Financial Audit Supervisor, LBA Information Only00:50:01.359 - 9:48:57 AM; Jean Mitchell presented the audit results for the New Hampshire Lottery's financial statements for the fiscal year ended June 30, 2024. She noted an unmodified or clean opinion issued on December 23, 2024, and confirmed that no matters came to their attention that would indicate inconsistencies in the financial section of the report. She mentioned the forthcoming management letter that would include a report on internal control over financial reporting.
Unclear: Charlie McIntyre, Director of the New Hampshire Lottery Information Only00:52:22.359 - 9:51:18 AM; Charlie McIntyre thanked the audit staff and his finance team for their hard work, noting the lottery's growth from a transfer of $62 million in FY11 to $207 million last year. He emphasized the importance of maintaining clean audits despite increased revenue and acknowledged the efforts of CFO Jim Duris.
Unclear: Lehman Information Only00:53:26.319 - 9:52:22 AM; Lehman commended Charlie McIntyre for the lottery's impressive revenue growth and thanked him for his work. He noted the lottery's performance was better than good and expressed hopes that other agencies could achieve similar success.
Unclear: Kimberly Bon, Senior Manager, LBA Information Only00:54:59.599 - 9:53:55 AM; Kimberly Bon introduced the audit of the internal controls over revenues and expenditures at the Department of Information Technology (DoIT). She noted that she managed the audit and that Dennis Goulet, Commissioner of DoIT, was available for questions.
Unclear: Kimberly Bisson, Senior Manager, LBA Information Only00:55:26.920 - 9:54:22 AM; Kimberly Bisson presented a report on the assessment of internal controls over the Department of Information Technology's (DoIT) revenues and expenditures for the nine months ended March 31, 2024. The report identified 14 comments and recommendations, with two suggesting legislative action. The audit found that DoIT had not established adequate internal controls over its revenues and expenditures, with certain financial accounting processes being overly complex, outdated, and insufficiently documented. The audit highlighted issues with cost allocation, accounts payable, activity codes, segregation of duties, telecommunications processes, salaries and benefits monitoring, risk assessment, audit trails, backup processes, and performance evaluations. The audit also noted the lack of resolution of prior audit findings from 2018 and 2006.
Unclear: Representative Edward Information Only00:58:35.920 - 9:57:31 AM; Representative Edward questioned the implications of poor cost allocation, specifically whether the state was losing money due to inaccurate charges to agencies. He was informed that while the cost allocation issues were internal and did not result in external financial losses, the inability to recalculate certain allocations meant there was uncertainty about the accuracy of charges to agencies.
Unclear: Unidentified Speaker Information Only01:02:56.359 - 10:01:52 AM; An unidentified speaker questioned whether the numbering of the observations implied a priority for fixes. They were informed that the observations were ordered by impact, with the most important ones listed first.
Unclear: Senator Waters Information Only01:07:43.480 - 10:06:39 AM; Senator Waters expressed concern over the reliability of cost allocations to agencies, especially given the long-standing issues dating back to 2006. They sought clarification on the potential magnitude of errors in cost allocations, which were difficult to determine due to the complexity of the allocation methods used by the system.
Unclear: Dennis Goule, Commissioner, Department of Information Technology Information Only01:14:00.760 - 10:12:56 AM; Commissioner Dennis Goule thanked the LBA audit staff for their professionalism and thoroughness. He acknowledged the seriousness of the audit findings and stated that the department had already begun addressing the issues. He discussed the ongoing replacement of the antiquated CAP 95 system with a more transparent CAP Plus system, which they planned to implement at the fiscal year boundary. He also mentioned efforts to improve documentation and policies, and the department's focus on federal financial audits. Regarding specific findings, he addressed the need for legislative changes and the department's approach to resolving issues with cost allocation, payroll, and accounts payable.
Unclear: Dennis Goule, Commissioner, Department of Information Technology Information Only01:21:08.360 - 10:20:04 AM; Commissioner Goule discussed the Department of Information Technology's approach to service level agreements with agencies. He explained the importance of having a baseline service level agreement across all agencies, with the possibility of adjustments based on specific agency needs and funding availability. He mentioned the example of the Lottery, which has strict service level agreements due to revenue implications. Goule also expressed his resistance to having unique service level agreements for each agency, advocating for a more standardized approach with tailored adjustments.
Unclear: Representative Edwards Information Only01:24:11.960 - 10:23:07 AM; Representative Edwards inquired about the effectiveness of the IT Advisory Board, noting its infrequent meetings. He questioned whether the board was adding value and suggested possible changes to its statutory requirements. This led to a discussion about the board's role and its activities before and after the COVID-19 period, including its involvement in strategic planning and cybersecurity initiatives.
Unclear: Dennis Goule, Commissioner, Department of Information Technology Information Only01:25:00.000 - 10:23:56 AM; Commissioner Goule responded to Representative Edwards' inquiry about the IT Advisory Board. He acknowledged the board's reduced activity during and after the COVID-19 period but emphasized its importance in guiding the Department of Information Technology's strategic direction. He discussed plans to revise the strategic plan and the board's role in its ratification. Additionally, Goule suggested adding more legislative members to the board to ensure better attendance and mentioned the value of input from various sectors.
Unclear: Dennis Goule, Commissioner, Department of Information Technology Information Only01:26:31.000 - 10:25:27 AM; Commissioner Goule discussed legislative action items related to the Department of Information Technology. He mentioned previous attempts to include language in bills that would prevent the department from making rules, which were not successful. He expressed his view that the department should not be a rule-making entity and planned to submit a proposal for inclusion in HB2 to address this issue.
Unclear: Committee Members Information Only01:28:51.000 - 10:27:47 AM; The committee discussed scheduling their next meeting, considering the availability of members and potential conflicts with other legislative and commission meetings. They settled on scheduling the next Fiscal Committee meeting for Friday, February 21st, at 11:00 AM, acknowledging the challenges of finding a suitable time due to overlapping commitments.