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.
— 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.
— 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
|Director||Start Year||End Year||Tenure (years)||Director||Start Year||End Year||Tenure (years)||Director||Start Year||End Year||Tenure (years)|