Said in CommitteeBeta

Exactly as spoken.

Joint Budget Committee

April 8, 2019 ·10:30 AM ·Room A, MAC ·32:02
Video Transcript 11 documents

Bills discussed (5)

Bill Title Sponsor Status
HB1865 Act 1023 · 4 mentions in agenda, transcript
Matched: “…Law F. Rainy Day Fund and Amendments 1. Amendment KMW066 to HB1865 by Representative Jean – To Define Monies to be Available i…”
AN ACT TO DEFINE THE MONIES TO BE AVAILABLE IN THE RAINY DAY FUND; AND … Jean Notification that HB1865 is now Act 1023
HB1876 Act 1024 · 4 mentions in agenda, transcript
Matched: “…lization Law-Schedule and Amendments 1. Amendment HAR080 to HB1876 by Representative Jean – An Act to Amend the Revenue Stabil…”
TO AMEND THE REVENUE STABILIZATION LAW; AND TO DECLARE AN EMERGENCY. Jean Notification that HB1876 is now Act 1024
SB595 Act 997 · 3 mentions in agenda, transcript
Matched: “…o be Available in the Rainy Day Fund 2. Amendment KMW065 to SB595 by Senator Teague – To Define Monies to be Available in the…”
AN ACT TO DEFINE THE MONIES TO BE AVAILABLE IN THE RAINY DAY FUND; AND … Teague Notification that SB595 is now Act 997
SB597 Act 998 · 3 mentions in agenda, transcript
Matched: “…Amend the Revenue Stabilization Law 2. Amendment HAR081 to SB597 by Joint Budget Committee – An Act to Amend the Revenue Sta…”
TO AMEND THE REVENUE STABILIZATION LAW; AND TO DECLARE AN EMERGENCY. Joint Budget Committee Notification that SB597 is now Act 998
HB597 · 1 mention in transcript
Matched: “the amendment on house bill 597 do we have a motion we have a motion and a second any discu…”
Pre-2017 bill

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Speaker 2 4:30
We'll call joint budget to order, Chair sees a quorum. silence your cell phones
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Representative Lane Jean Chair Unverified 5:00
all right first item on the agenda is the forestry Commission report this is a report only any questions on it this needs no action item C mr. Anderson thank you mr. chairman item
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Speaker 7 5:18
C this is an item that normally goes before the review subcommittee this is methods of finance for University of Arkansas Pulaski Tech there are two of them one for the UAMS head startup Westside renovation and one for the renovation of the third floor campus center building at six hundred thousand and three hundred thousand
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Representative Lane Jean Chair Unverified 5:39
respectively any questions on this seeing no objection
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Speaker 7 5:51
this will stand reviewed mr. chairman we also have some contracts that were submitted by the department of human services there are two in-state contracts and one out-of-state contract the first in-state contract is with aging and adult behavioral health services they are contracting with valley behavioral health system for $111,592 this is to ratify services rendered so that they can pay services that have already been rendered any questions on
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Representative Lane Jean Chair Unverified 6:26
this one mr. Anderson and the second contract is
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Speaker 7 6:31
an out-of-state contract with medical services it's an amendment for five hundred thousand dollars this is to provide actuarial services for Medicaid mr. chairman the last contract is an in-state contract for five million dollars 100 a thousand this is to conduct on-site inspections of care reviews any questions on any
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Representative Lane Jean Chair Unverified 6:52
of these three contracts senator Elliott you're
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Senator Joyce Elliott Unverified 7:03
recognized mr. mr. chair I I don't know but my question is necessarily beyond hearing from so many folks over the weekend that this this contract is not going to be sufficient for people to be able to carry out their work the past folks because there's an assumption built into the beginning of the contract that it's going to be operating the way it's assumed down which one are you talking about I'm talking about number two I'm sorry number two number two the Milliman contract and I would just like somebody from DHS to just kind of talk me through and make sure thank Miss Eubanks is
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Representative Lane Jean Chair Unverified 7:43
headed to the table. Okay, thank you. You'll identify yourself. You can answer
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Speaker 21 7:46
Senator Elliott's questions. Yes, Misty Eubanks, Chief of Business Operations for the agency. This is actually to provide actuarial services across the entire agency. We had several different contracts with different providers over the years and this was our first effort to roll this up into one comprehensive contract that covered all of our different actuarial services they do a proposal and a level of effort for each actuarial service that we need so some of the ones that we've encountered this year were around for instance the net transportation we've done quite a few fiscal impacts for legislative session and that's why we're adding the 500,000 to get us to June 30th then you'll see another contract amendment we actually added um that and that's already been before this body for next sfy and if we continue to need additional services we may come back and ask for additional funding but again this is just for those snapshots of fiscal impacts that we need either to support state plan amendments waivers or when you all request uh financial impacts from us
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Senator Joyce Elliott Unverified 8:57
okay but this this has nothing to do with the reimbursements to the to the uh
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Speaker 21 9:04
providers so not at this time we're not using we're going to use milliman for some of that but we're actually using optum and another provider for that work so if we needed additional money on milliman that would be in fy20 the initial work that we need on rate reimbursement will be handled by optum our data warehouse activities okay so this
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Senator Joyce Elliott Unverified 9:26
has nothing to do with the emails i got saying that this is not enough money to reimburse them for the services they're going to have to provide that's not connected to this not that i'm aware of at
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Speaker 21 9:39
this time well who would be aware if it is so initially the work that we're going to do on on the rate reimbursement is with another provider and if we have Milliman do the secondary work on that, that will be in SFY 20, and you will see those amendments to add that additional
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Speaker 20 9:54
funding at that time. Okay, thank you. Any other questions, Ms. Eubanks?
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Representative Lane Jean Chair Unverified 10:05
Without objection, these three items will stand reviewed. Thank you. All right, we're going to A, the revenue stabilization. We'll start with House Bill 1876. We will need a motion to suspend the rules to take this up if we want to get out by Wednesday. We have a motion and a second. Any discussion? All in favor say aye. Aye. Any opposed? All right, Mr. Anderson, we'll start with House Bill 1876. Thank you, Mr. Chairman.
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Speaker 7 10:35
There is also a revenue stabilization schedule on top of the House Bill. E1 is House Bill 1876. this is an amendment for the revenue stabilization law we have gone over it with various groups what I can say is the final allocation is a in a is 5.6 billion dollars in B is 115 million dollars and in C is 14.7 million dollars The amount of the $115 in B is to fund $30 million in adequacy, $61 million for Medicaid, mostly due to FMAP increases, $2.5 to senior citizen centers. Corrections in the Department of Community Correction have some contract service increases in them. And then in item C, the full amount of $14,785,000 is in the performance fund. Mr. Chairman, I'm happy to answer any detailed questions. Any questions on
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Representative Lane Jean Chair Unverified 11:44
the amendment? Need a motion on the amendment? Hold on. Representative Kavanaugh. Thank
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Representative Frances Cavenaugh Unverified 11:55
you, Mr. Chair. I just want to verify how much has gone to the senior citizens. centers 5 million
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Representative Lane Jean Chair Unverified 12:07
thank you all right we were done all right have a motion on the amendment have a motion in a second any discussion all in favor say aye any opposed now we need a motion do pass as a minute on house bill 1876 we have a motion have a motion in a second any discussion All in favor, say aye. Any opposed? All right. All right, we need to make a motion to spin the rules on Senate Bill 597. Do we have a motion? I have a motion and a second. Any discussion?
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Speaker 7 12:41
All in favor, say aye. Aye. Any opposed? Mr. Anderson. Mr. Chairman, this is item E2. This is a duplicate amendment. The amendment is the exact same. one revenue stabilization amendment goes on the house budget calendar and one goes on the senate budget calendar this is traditionally how we pass these duplicate bills this is the exact same as the amendment i just described but this is for senate bill 597 questions on
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Representative Lane Jean Chair Unverified 13:07
the amendment on house bill 597 do we have a motion we have a motion and a second any discussion all in favor say aye any opposed now we need to do pass as amended have a motion we have a motion and a second. Any discussion? All in favor say aye. Any opposed? All right we've got an amendment on House Bill 1865 and Senator if it's okay with you we'll lump since the the amendments are identical we'll lump both these together. We're taking amendment on House Bill 1865 and Senate Bill 595. Mr.
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Speaker 7 13:50
Anderson, you're recognized. Okay, we are skipping to items F3 and F4 on the agenda. This is for the rainy day bill. This is not part of revenue stabilization. Like the chairman said, it's for House Bill 1865 and House Bill, I mean, Senate Bill 595. These amendments are identical. Senator Bond, you're recognized.
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Senator Will Bond Unverified 14:14
So first let me say about this amendment is it is identical to the chair's amendments that are listed, but for one thing, it would add $2.5 million to senior centers. There are approximately 200 senior centers all across Arkansas. This money would go to things like Meals on Wheels, senior center meals, transportation, wellness programs. The funding with this $2.5 million would get them back close to their 2014 levels. We rank in the top three nationally with 24% of our senior population classifying as hungry. I think all of us agree that we want seniors to live out their lives with as much dignity and independence as possible. This helps keep our seniors healthy, happy, and in their homes. It is a simple amendment as I said. It doesn't change anything else that the chairs have on the agenda but this 2.5 million making sure that this flows through to our senior centers of the state i'm happy to answer any questions any questions representative meeks you're
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Representative Lane Jean Chair Unverified 15:15
recognized for a question uh thank you and i don't know
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Representative Stephen Meeks Unverified 15:19
senator bond if you're the right person to answer this or or staff as my as i understand it radiant rainy day fund is obviously those are funds that the governor we give to him to be able to allocate do we do this for other programs i'm not saying that this is not a worthy program but do we do carve outs of this program like this for other groups and tell the governor how
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Representative Lane Jean Chair Unverified 15:44
to spend this allocation before mr anderson answer that i'll ask the dfna or the governor staff to
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Speaker 7 15:50
come forward for questions yes sir thank you mr chairman uh yes sir we uh the rainy day fund will take surplus monies the estimate that we are to have this biennium is 84.6 million dollars that includes estimate of monies to come 70 millions cash in hand right now then the way these rainy day funds are drafted 10 10.5 million goes to department of corrections for lease payments 30 million goes to quick action closing fund 1.8 million goes to university of arkansas agriculture department 1.8 million goes to succeed scholarships 500 000 to the military department 10 million to uams nci national counselor institute those are what we call off the tops or set asides whereas the money flows in those are funded first then any remaining funds go to the governor's discretionary where he can release funds or she can release funds as needed with certain items requiring approval and certain items requiring review that estimate is estimated to be 30 million after we fund those off the tops and this amendment does include a cap that only 30 million can go to the rainy day fund anything over that would stay in a surplus fund that has to be appropriated by the general assembly this is normal we did it just depends on the general assembly how they want to do it we've done we did for example we did 90 million dollars last year for medicaid we also did correction list lease payments last biennium we almost always have off the top mandatory payments follow-up yeah
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Representative Stephen Meeks Unverified 17:34
and how is this different from uh the surplus that we take where we're putting 75 into a true rainy day fund and 25 into highways where is that money coming from that's out of surplus different than what we're
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Speaker 7 17:48
doing here that that is exactly this where it is coming from the 25 just went to highways and the 75
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Representative Stephen Meeks Unverified 17:55
percent went to here okay so we're not putting money back into the long-term savings account that we established
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Speaker 7 18:01
last session not this biennium so we're not doing unless it would just be uh any interest earnings that are set out by law to go to the long-term reserve fund but no this rainy day fund does not send any money there
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Representative Stephen Meeks Unverified 18:15
okay so just so i'm clear we're putting 25 to highways and we're spending the rest through this model we're not putting any more
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Speaker 7 18:23
back is that correct well what i'd like to say is the rainy day fund is made up of several different sources right and that's just one source that makes up of our surpluses if we collect more revenue than is authorized in RSA 75% goes to this surplus 25% goes to highway we also had some balances of previous unspent monies that were pointed into this rainy day okay but but if we were
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Representative Stephen Meeks Unverified 18:48
to put any long-term reserve we would have to take it out of this fund is that correct
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Speaker 7 18:54
well the governor could release some money from the long-term reserve from rainy day I that would be unusual okay All
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Speaker 55 19:02
right. Thank you, Mr. Jones. We do
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Representative Lane Jean Chair Unverified 19:19
have some money going in there through the homestead exemption money. That's going to long-term reserve, but that's outside of the RSA. All right. Senator Chesterfield, you have a question? Mr. Chair, thank you
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Senator Linda Chesterfield Unverified 19:33
so much. All of those items, like the succeed scholarships, were carved out by whom? Was it not by legislative action? Excuse
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Representative Lane Jean Chair Unverified 19:49
me. Representative E. is up here talking. Will you repeat your
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Senator Linda Chesterfield Unverified 19:52
question? Yes. It has been referred to that the governor has complete control over these funds, and he does after the legislature leaves. But in the meantime, the Succeed Scholarship... But we
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Speaker 2 20:07
have review over them. We have review over
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Senator Linda Chesterfield Unverified 20:10
them. And approval. And approval. And approval. But let me ask my question. Was the Succeed Scholarship not a legislative mandate as we passed it
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Speaker 7 20:26
here? Did we not pass that? Yeah, the way this is funded is through the rainy day fund and it's called a debt obligation priority rainy day set aside
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Senator Linda Chesterfield Unverified 20:35
okay but i'm saying i'm asking you didn't we pass legislation to fund succeed yeah we did pass the appropriation and we have passed legislation to fund other things that come out of this thing before uh we finish saying that all the monies are taken up is that correct We have the power of the purse, do we not? Yes, ma'am.
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Representative Lane Jean Chair Unverified 21:00
Thank you. Any other questions? Mr. Bleed or Mr. Baird, do you all want to respond to this amendment?
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Speaker 65 21:08
Thank you, Mr. Chairman. Duncan Baird. So we're not supportive to any changes to the RSA amendment or the one-time funding amendments that have been proposed. And, you know, So it's as simple as that on any proposed changes. Isn't
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Representative Lane Jean Chair Unverified 21:23
there some future, I mean, some past appropriations that the governor could fund? Yeah,
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Speaker 65 21:28
so, I mean, on senior centers specifically, you know, as you know, we're maintaining the $5 million in the balanced budget. We've added $3 million of appropriation during the session. There's also been special language added that adds a potential for $500,000 of carry forward to go to the senior centers at the end of each fiscal year. So there is appropriation there that we could take a look at in the interim. Okay. Do you
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Senator Linda Chesterfield Unverified 21:56
have a question? Senator Chesterfield. Thank you. He has answered to some extent my question because I am quite concerned about Meals on Wheels and programs of that sort, as you very well know, because there are so many senior citizens who are in my district, and we are a growing – this state is increasingly attractive to retirees. many of whom may end up having to use Meals on Wheels. So are you saying then that your $3 million could possibly be funded but this $2.5 million is not necessary? Is that what you're saying? Well, I think what he's saying is
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Speaker 70 22:35
the governor at this point in the
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Speaker 71 22:37
process would be opposed to any changes to the RSA or to the rainy day schedule. But because of legislative action earlier in the session that has created $3 million in additional appropriation That could be funding that the governor would consider later on in the interim using his discretion as rainy day funds It's something that I've talked to some of the I mentioned this to Senator Bond and it's
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Speaker 38 22:59
something that I think Mr Bleed put that mic down
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Speaker 71 23:02
look closer to your mouth. Sorry, I'm new to this And it's something that I think the governor would be
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Senator Linda Chesterfield Unverified 23:09
happy to sit down and discuss With the three million dollar appropriation are you saying this is in addition to that or or explain to
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Senator Will Bond Unverified 23:19
me your bill, your amendment. So Representative Fite, who's here, passed the $3 million appropriation, actually. So what this does is there is a special language amendment if funds are available for $500,000. I think Senator Malik passed it. This $2.5 would just make sure that the senior centers get $2.5 million, filling up at least a large portion of Representative Fite's appropriation. It just makes sure it gets funded as opposed to relying on the discretion of the governor. all right thank you any other questions are you closed with your amendments if there are no other I would like to take just a just a second to close I think I just explained that for for those of us in the legislature aren't directly involved in RSA in the rainy day negotiations the only way that we make sure something gets done is through this process I understand and appreciate the governor's willingness to listen and sit down with people and address this appropriation but the only way that we make sure that it actually gets funded is by this amendment that's the only way that you know your senior centers which are all across the state over 200 get funded is by this amendment and this is they say it's late in the process this is the only time to amend it there's no other time to amend it I mean this is the time to do it so it is incredibly important if you look at the funding i know many of you are familiar with your senior center funding and it's been going down based on increasing population and all types of things so we know this is needed it's an easy fix it doesn't hurt anybody the governor's was says he's going to consider it anyway so let's just go ahead as a legislature and make sure we get it done now i
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Representative Lane Jean Chair Unverified 25:04
appreciate a good vote you can make an emotional house bill 1865 the amendment and senate bills 595 right
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Speaker 77 25:11
that's correct mr chair motion do pass on the amendment and we have a second we have a Second?
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Representative Lane Jean Chair Unverified 25:18
All right. Any discussion? All in favor say aye. Aye. All opposed? No. The ayes have it. Got three hands. All right. Let's roll call.
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Speaker 6 25:36
Senator Flowers. First alternate, Senator Rice. Senator Clark, Senator Malik, Senator Stubberfield, Senator Cheatham, Senator Irvin, Senator Caldwell first alternate senator Wallace senator Ingram senator Cooper senator Flippo senator Blake Johnson senator Elliott senator Chesterfield Senator Dismang. First alternate Senator Hammer. Senator English. Senator Bond. Senator Mark Johnson. Senator Hendren. Senator Hester. Senator Eads. Senator Davis. First alternate Senator Pitch. Senator Ballinger. Senator Letting. Senator Bledsoe. Senator Sample. Senator Rappert. Senator Hickey. Representative Shepard, Representative Holcomb, First Alternate Representative Birch, Representative Eubanks, Representative Kenneth Ferguson, Representative Richmond representative Monty Hodges representative Ladyman first off
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Speaker 7 27:46
not seeing represent layman representative guys away representative Davis second alternate representative Tosh
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Speaker 6 28:07
representative jet representative gray representative Kavanaugh representative Meeks first representative Walker see your first alternate representative Beck not seeing first or second representative Wooten representative
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Speaker 32 28:37
house representative McGee representative Andy Davis representative Eves. Representative McCollum. Representative Lindstrom. Representative De La
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Speaker 7 28:57
Rosa. Not seeing Representative De La Rosa. Representative Penzo. Second alternate Representative Crawford. Representative Boyd. Representative
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Speaker 6 29:15
Coleman, Representative Wardlaw, Representative Dotson, Representative Womack, Representative Kapp.
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Speaker 40 29:45
Thank you. The amendment fails with 27 votes.
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Representative Lane Jean Chair Unverified 30:21
You need a 29 to pass. We'll move on to F1 and F2. This is the amendment to put in the rainy day funds. We'll take these together. Any questions on this? We need a motion to pass the amendment. Got a motion and a second. Any discussion? All in favor, say aye. Any opposed? And then we need also a motion to do pass as amended on the revenue stabilization on the rainy day fund. Excuse me. Have a motion on that. Have a motion and a second. Any discussion? All in favor, say aye. Any opposed? It is adopted. Is that it? Folks, I think we're done. We appreciate the work we've done this year. Senator, you got anything you want to say?
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Speaker 89 31:17
We appreciate it. We've had good attendance. We do appreciate your work. Thank you. Appreciate
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Speaker 90 31:21
all the hard work. We are adjourned. You
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Agenda

A. Call to Order

5:01

B. Reports and Communications

5:12

C. As required by Arkansas Code 22-9-104, from various state agencies regarding Review of Methods of Finance

5:15

D. As required by Arkansas Code 19-11-1006, from various state agencies regarding Review of Professional/Consultant Services Contracts

6:02

E. Revenue Stabilization Law-Schedule and Amendments

10:17

F. Rainy Day Fund and Amendments

13:46

G. Other Business

31:11

H. Adjournment

31:22

Speakers

Speaker 2
2 segments
Representative Lane Jean Chair Unverified
31 segments
Speaker 7
21 segments
Senator Joyce Elliott Unverified
6 segments
Speaker 21
5 segments
Speaker 20
1 segment
Representative Frances Cavenaugh Unverified
1 segment
Senator Will Bond Unverified
8 segments
Representative Stephen Meeks Unverified
8 segments
Speaker 55
1 segment
Senator Linda Chesterfield Unverified
10 segments
Speaker 65
3 segments
Speaker 70
1 segment
Speaker 71
3 segments
Speaker 38
1 segment
Speaker 77
1 segment
Speaker 6
6 segments
Speaker 32
1 segment
Speaker 40
2 segments
Speaker 89
1 segment
Speaker 90
1 segment