Specifically, three categories are of major concern: (1) increases in the management fees; (2) changes in personnel costs due to changes in health and pension benefit plans as laboratory personnel transitioned from being U Cal employees to being employees of their respective LLCs (LANS, LLNS); and (3) changes in state and local tax obligations associated with the transition from a public institution (U Cal) to a private corporation. This last was much more significant at LANL and at LLNL.

At each of these two laboratories, the annual cost of doing business increased by very roughly$100 million per year.

•   LANL

—  The annual fee increased from less than $10 million to about $60 million, as shown in the contract excerpt in the preceding section. The actual amount varies by year and by performance. This increase is typically $40 million to $50 million

—  State and local tax obligations increased by $65 million

—  Pension plan changes necessitated a $30 million contribution to the new defined contribution plan.

The total increase is therefore on the order of $140 million per year.

•   LLNL

—  The annual fee increased from less than $10 million to about $45 million, as shown in the contract excerpt in the preceding section. The actual amount varies by year and by performance. This increase in typically $30 million.

—  Pension plan changes necessitated a $30 contribution

—  Healthcare costs increased about $10 million.

—  There were no substantial tax changes at LLNL; taxes decreased by about $2 million.

The total increase is therefore on the order of $70 million per year.

At both labs, there were also large decreases in costs to the government. Since these amounts were not part of the laboratory budgets, they are not included in this accounting, and the laboratories did not benefit directly from them.

TENURES OF LABORATORY DIRECTORS

TABLE G.2 Tenures of Laboratory Directors

LLNL LANL SNL
Director Start Year End Year Tenure (years) Director Start Year End Year Tenure (years) Director Start Year End Year Tenure (years)
York 1952 1958 6 Oppenheimer 1943 1945 2 Landry 1949 1952 3
Teller 1958 1960 2 Bradbury 1945 1970 25 Quarles 1952 1953 1
Brown 1960 1961 1 Agnew 1970 1979 9 McRae 1953 1958 5
Foster 1961 1965 4 Kerr 1979 1986 7 Molnar 1958 1960 2
May 1965 1971 6 Hecker 1986 1997 11 Schwartz 1960 1966 6
Batzel 1971 1988 17 Browne 1997 2003 6 Hornbeck 1966 1972 6
Nuckolls 1988 1994 6 Nanos 2003 2005 2 Sparks 1972 1981 9
Tarter 1994 2002 8 Kuckuck 2005 2006 1 Dacey 1981 1986 5
Anastasio 2002 2006 4 Anastasio 2006 2011 5 Welber 1986 1989 3
Miller 2006 2011 5 Narath 1989 1995 6
Robinson 1995 2005 10
Hunter 2005 2010 5


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