Arkansas Legislative Council (ALC)

Not apply if you are gonna be see we're going to start in. Call this meeting to order. Mr president if you would go ahead recognize used to Give us an update members you'll find on your desk a I don't see. Which is a list of all the folks with the ready for business grant. Then. Expressing your also will go over the. Unemployment. Yes. You and doctor children's are recognized introduce yourself for the record and. Opening statements. Thanks good morning everyone good morning Mister chairman thank you Mike prestin secretary of commerce executive director of the Arkansas economic development commission. Sri shoulders director division work for services. Carter often CO division of work for services. Thank you Mr chairman and I'll just dive right into and we have secretary Larry Walter and Mister Paul Lowthian from apartment of finance administration are here as well to answer any questions related to its appeal way and I know at some point at the appropriate time would like to come up and and share a few words but You want to touch on a couple topics first and then we're gonna go into a a detailed overview here of the pandemic unemployment assistance and where things stand with the program in an overview and we have the the team available to answer any questions for you first I just want to say thank you all for the invitation today we really appreciate the ability to come in share with the legislators in this body where things currently stand related to the pandemic unemployment assistance and hopefully answer any questions that you guys might have and and talk to these issues you know over the years as I've been around the state in talking about economic development I we share that it's a team sport it takes those folks on the ground the economic development team of the state the utility partners economic development partners the legislature so many to make economic development happened I think we've been fairly successful in that the last several years in the state. And is this Covin nineteen pandemic continues to transform and we're looking at now this economic crisis it's more imperative and more apparent to me now that the this cove in nineteen fight in the economic recovery is going to be a continue team effort and that team continues to to be with that the legislature with all of our local partners with the agencies that are represented here today we're in this for the long haul we've got a fight ahead of us but I think when a better position a lot of states I hope we see some light at the end of the tunnel and hopefully we can share some good news with you guys today and and welcome any suggestions and feedback so how we can continue to work better. I know you guys hear it daily from your constituents related to the unemployment assistance related to many issues you guys are on the frontline and I appreciate that and I know that you guys are out there you know no taking the the hard bullets you see the the folks in the grocery stores and as you're out about your community in your have to answer those questions we want to make sure that our team is fully supportive of you guys his or answering those questions and we're completely supportive of you guys and all of your constituents. I do want to mention that last week I know there was a a state agencies hearing I apologize if there is any miscommunication or misunderstanding about myself anyone for my team being there we're appreciative that you all get together as the ale see in this body two here from us and again college as if there is any miscommunication from us last week the tough folks my to travel from a long way to come down and we weren't there I do know that there were since constituents who also traveled a long way for the meeting from Union County who had some questions about the pandemic unemployment assistance I was able to get track that information down from those individuals and call them personally and let them know that they both had qualified and they just need to go online and certify their application they both also qualified and more proof for the ready for business grants so both of those constituents to who took that time to to come and speak to this body we're very pleased with that information. I do think the the focus today as you guys have indicated would be on the pandemic on employment assistance and we'll dive right into that just a second but I do want to give an update on the ready for business grant program hopefully everyone receive the the letter with the detailed information that I sent yesterday the information is available to all those applicants to receive funds just to a high level to go over for everyone in those listening watching online total applications received twelve thousand two hundred thirty four a little over a hundred forty seven million dollars and request we had about two hundred and one who for the applications that were withdrawn or businesses to term and not eligible five total approved for payment as of yesterday afternoon we are at ten thousand five hundred and thirty seven of those twelve little over twelve thousand of those we've released payment for seven thousand nine hundred and sixty eight and we have approved pending some type of I'm missing you the receipt or W. nine avoided check two thousand five hundred and sixty nine there's roughly about fourteen hundred and ninety six that have not yet been approved in it could be a couple of things they didn't clear the the D. F. and A system for their their tax delinquency or not known in the D. F. and A system or they're still under some type review from a DC but what does that mean that means that right now we've approved and processed a hundred fifteen million dollars in payments that is now as of last week hitting bank accounts the majority of remainder of that should be hitting bank accounts sometime this week and that's the update of where we stand on this it again my appreciation to this body for approving that appropriation allowing us to get that much needed support help out to those businesses is they're struggling to meet the guidelines in and make sure that they're doing everything to protect their employees and protect their consumers as well and hopefully this these funds are going to go a long way to helping that and instilling some consumer confidence. Again some employee a confidence as long those employers. At that I'll jump right into the P. U. A. the pandemic unemployment assistance I do want to just give a few remarks related to a data security incident and just share with you where we are and what we're able to to say in and and discuss at this point from there I'm going to turn it over to Dr Childress who is the director of the department of workforce services and Carter Hawkins who is our chief information officer to walk you through a a power point presentation give you an overview of the process of of P. U. A how we got here a little bit about the system talk about where things currently stand today. but as it relates the department of commerce to the division of workforce services experience a data security incident the impact of the pandemic unemployment assistance application system we learned of this incident on Friday may fifteenth and probably took the system off line to disconnect access to the P. U. a cyst to the P. U. a database. Protecting the personal information of all applicants is of the utmost importance therefore we immediately initiated a comprehensive response plan and hired an independent computer forensic company to conduct an investigation to help us determine the root cause of this incident we are can also coordinating with law enforcement including the FBI. On Wednesday may twentieth independent security experts confirm that the problem had been remediated the P. U. a system was secure and that claim is could confidently process proceed with their application for benefits all applicants already in the P. U. a system prior to may fifteenth receive notification explaining the situation and to provide instructions on how to enroll in the complementary credit monitoring services being offered we also provide additional resources on how to protect in person protect your personal information like how to review your credit report place the fraud report flock fraud alert or freeze your credit. Right now the forensic an FBI investigation is still ongoing forensic investigations are extremely thorough and require the scanning in reviewing of thousands of lines of code. Well we've made great progress in the investigation we are not at a point where we have information to share also a grand jury subpoena will not allow us to share information related to the data security incident at this time. Be assured we are moving forward as quickly and as aggressively as possible to collect all the information and complete the investigation at the appropriate time we will share those findings with this body. I just wanted to share that information with you guys as I know that was a topic for a lot of folks and hopefully that brings up to speed of where things currently stand. Senator Chesterfield do you have a question on the ready for business or is that the P. U. a. Anyway I just want to know if people are getting their checks mine is a simple question okay I'm on hold those questions until the end of the presentation no. And so with that I will turn it over to Dr Childress and and what we consider that we go back to last week on that date of Wednesday may twentieth we're able to certify I people could go back online and do their weekly claim we were able to get checks out as of last week so that is in the process and you'll hear this further good news from doctor children's in in Carter and I will share with you said Dr chillers. Good morning chairman and members of the committee I appreciate the opportunity to be here today and visit with you about the pandemic unemployment assistance program I we have had lots of of work B. we've had lots of work in the process of of getting the system up and running and I'm excited to share with you the information that we have today I don't know who's in charge of the Carter maybe you're in charge for go to the last slide please. To bring you the. And report on the good news first bringing this lie to your attention which is actually the last lot of my presentation but because senator Chesterfield asked and I think it's important that we follow up on her question if I may I will point you to this site and this information total application since may one these are made from a one through Saturday may twenty third we at thirty nine ACT thousand applications on the week ending may twenty third just this last week we approve twenty one thousand one hundred individuals and out of those individuals that were informed that they could go in father weekly claim twelve thousand two hundred of those did so and those payments were dispersed. We can in may sixteenth we are we approved to had nineteen thousand seven hundred that were approved and then alerted those individuals that was the first week that we had the system back up and running we alerted those individuals to father weekly claim and they received payment and that was sixteen thousand one hundred and fifty individuals total disbursements for the two weeks is nineteen almost nineteen point four million. Carter has more information later as to what the what the estimates are for the total and what we are anticipating for the coming week but we are continuing to process claims on a daily basis and send out disbursements on a daily basis the important thing that I want to point out at it this point time before we go back to the beginning of the presentation is that just like the regular you by system in individual that is currently in P. USA that has received in term approval. I then is instructed to follow weekly claim so when not regular unemployment that individual files a weekly claim every week that they're receiving unemployment benefits and what that does is verify and confirm their income for that week because it may change from week to week. Or it may not change and so every week an individual goes online or calls. With their weekly information that's the same in P. U. I. the weekly claims are required so we spend that process up so that we could get the individuals the notifications that they're they have received in term approval so that we could move forward with the weekly claim process and then with the payment. Those individuals that shows a debit card. Will receive their cards in seven to ten days on their initial card but those risks that receipt are signed up for direct deposit those deposits are often made within one to two days. Last week the disbursement was made and sent to the to the bank and then disbursed or the federal reserve and that all happened within the twenty four hour period so those individuals received we riding receiving emails and confirmation that individuals have received the deposits in their account that very next day. So we're happy to report that we are a disbursing funds individuals are receiving other payments we will then go back into the system or an individual need to go back into the system and report all of their retro weeks so the weeks prior to the week that they currently have reported that we need to go in and put in that information and we will have that set up that system in that piece of the. A puzzle guess you could say set up soon so that those individuals can going to do with their retro weeks and that's when we will see our largest disbursement is that week when everyone is going back and doing all of their retro Klein's. Now if I may I'll start back at the overview of the unemployment insurance benefits some of you were present when I did this presentation earlier or something similar but it is always good to understand the process so I gave you a quick overview of the unemployment insurance benefits within the care sacked these are sections twenty one oh two and twenty one sixteen at these law changes were to a this state you got agencies in responding to the economic effects on the nation's workforce caused by cover nineteen. Our state agree to five provisions and those are the provisions that we have been implementing since day one. I won't read all of those to you because we will cover some of those in the next section. So the next slide in the U. R. provisions in the cares act on March the twenty seven the cares act was passed you probably remember that day we definitely remember it because we were we were working within the office knowing that our agency was going to be required to implement these provisions in record time some March the twenty eight the very next day Arkansas signed agreement with the United States department of labor we went to the governor's office and with the secretary to get the agreement signed so that we could begin immediately processing what needed to be done in aligning I programs for the five provisions that I just mention. It was at that time when we recognize that there was a need to work with with another state agency so a recommendation was made that we work with D. F. and I we met with the F. and I. on April the third and then started working on how that how we would coordinate our efforts with D. F. and A because it was definitely and continues to the a team effort on April the fourth we met with protect to identify the requirements so within each of those provisions we have pages and pages of instruction and guidance and then often times we get follow up to that guidance which which requires us to make changes within our systems and when that are processing so on April the fourth we met with protect to look at those requirements how you rye team and also I. T. teams met in actually continue to meet daily and weekends and nights in order to continue working on the on the behind the scenes in the system that needs to be continue to be developed on April the fifth the P. U. eight U. pull sixteen twenty was released. we knew at that time what the specifics were and we began working on that following the the uniform guidance then on April the seventh we any initiated and implemented the that a pandemic unemployment compensation which is on the prior slide that's the six hundred dollar add on and that's to all of the programs those payments started on April seventh as I mentioned before we were one of the early states in the top five to initiate to issue the the payments under the F. P. U. C. this is the six hundred dollars in addition to unemployment insurance then on April fourteenth as we were continuing to work with pro tech and then also of reach an inmate you agreement with D. F. and A and go into an emergency procurement process with the critical emergency procurement process with D. F. and I. who held the contract held a contract with protek. On April the fourteenth we signed that contract I signed that contract on behalf of the division of work for services to work with the team that we had twenty plus years of experience with and also had currently of currently stood up a program within our state and will continue to to Ste work in that program area along with our current P. U. a system on April twenty seventh then we received a change to you pull sixteen twenty. And what this did would make some you made some changes to the pandemic unemployment assistance program it was called a Q. and a which provided us with clarification on may first we did the P. U. I. system soft launch and on may fourth we started the another one of the permit provisions within the cares ACT P. E. you say the pandemic emergency unemployment compensation and those payments started. Along all of what in within all of these dates and within all of these programs we were constantly adding to our current system and then building a new system in order to accommodate P. USA on may the fifth the PA system went live and on may the twenty first the P. U. a payments started. The last time I was here I said that we would have payments out the week of may eighteenth and I and we did accomplish that With the with a lot of work in and support from all of you and from all of the the I. T. and and team it commerce D. F. and A indeed of yes within commerce. In the next slide you'll see the P. U. I. provision and cares ACT specifically and the considerations that we talked about worked through with D. F. and A and with our office and then the opportunities. So the considerations where that are local DWS offices were over capacity. Due to the unprecedented claims a restricted access to our offices yeah because a covered nineteen we knew that are DWS offices were at maximum capacity with the number of staff that we had available. Then we were concerned about P. U. I. increasing the long lines at our local offices just like many of you I was at the local offices around the state talking to people working with our people there in the offices and trying to seize them with their with their concerns as you know is just like I did most of these people were just wanting answers to questions and that's why we were able to to understand their needs and then also try to find ways to address their questions as quickly as possible by implementing the call center that you are aware of and that we increased two maximum capacity so that we could get to the the position that we are today which when I was in the office on Monday our wait time was a little over five minutes. We also knew that there were concerns about the P. U. increasing the long white lines on the eight hundred number which I just spoke to a. We also looked at the P. U. I. eligibility population estimates and originally we were thinking that those would be a hundred thousand plus as I noted earlier we're at about thirty nine thousand. So we thought that the population would be larger we're continuing to reach out to that population to make sure that everyone is aware of this program and the assistance is available under the P. U. I. of provision. We knew that we were capacity of an existing aging you I system we know our current US system could not manage this and we also knew that there was no existing IT vendor it D. I. S. that we could use so that was when the decision was made to use an existing vendor that we had in the state that we had a a history with we knew the DWS was not prepared to stand up and a program as rapidly as needed so that was another consideration that we thought was very important and did not take that on knowing that we probably would not be successful so the efforts that we made working with D. F. and I I am using the resources that we had available to us we weren't able to stand up this new program and I'll talk in a minute about other states in their position and where we are that we did stand up the program in a record amount of time. Compared to what it usually takes to stand up new systems and new programs and processes. As we look at the opportunities we recognized early on that we needed I T. vendors they are ready let readily available on state contracts as I read through all of the articles in here from counterparts in other states that was the that was what was most restrictive for them was having to work in an environment we we had emergency situation and we were we were bound to the the requirements of procurement and except for a so we found a way to work with the team that we already had in place as did many other states. Some of our some of our sister states in those states that. I had that had disasters I recently such as Florida Louisiana Texas and others have the opportunity to use their disaster assistance money to build new systems so as I was talking to states like Louisiana and Texas and then also Tennessee it was very obvious that they were steps ahead of us because they had had disasters unfortunately but fortunately it gave them the opportunity to build new systems because they had the funds to do that so they could quickly add modules to the systems that they have and it quickly implement the P. U. a system. Those states that have set up and and first we're standing up the program early on and making payments. Most of those states had a modern system and they were working within their system by adding a module to that in order to accommodate P. U. way that's what Texas did that's what Louisiana Dan and then Tennessee also where the they were the third in line to use the same vendor who they already had a contract with them or working with on a daily basis that gate definitely gave them an advantage over our state so when we're looking at code review and penetration testing vendors we need to have those vendors readily available so that we can access them and add them to our needs especially in a time of an emergency. If they are on a pre approved state contract that allows us to engage quickly. So I encourage you to look at that as a as an opportunity as you're considering. What we do in the future to be better prepared for emergencies. At this time I'll give you a quick overview of what has been discussed and then I'll go to a handout that I hope you all have that's called unemployment programs and gets a graphic of all of the programs and then on the back describes each of those programs. So it's a color graphic. It looks like this. So if you're looking for that I just talk for a minute about what we don't have that and it came to staff late last night and you guys that the agency were instructed to bring eighty copies do Joe bring day eighty copies I'm sorry I did not get that message but what I would do is send it out to all of you thank you if you send it to staff they'll get it emailed I sure will and I'll give you an overview of it. And it will be very helpful if you're working with constituents as you're looking to to better understand the programs and how long the unemployment assistance is available. So as you look at what other states are doing and paying in on a on all of the provisions that specifically P. USA by the week ending April twenty five only twelve states were paying out P. U. a benefits by the week ending may sixteenth and this is according to the a news article it is likely that forty two states and the district of Columbia will be paying out benefits the week of may sixteenth is the week that we started. Another reports in the media was as a make twelve thirty seven states have started paying out P. U. a. And then as of may nineteenth that number crazy two forty three. So we were one of those forty three states but I will tell you that at the national level and that's association a work force directors which is where most of my information comes from because it's all reported by the work force directors around the state. At the time that that the the comparison other states was being made that's where I went for my information and FOR my source because that's who we report to and stay in constant communication with but even then the reporting that they were so receiving was self reported by the states and it was not always accurate. Matter of fact they still had they had that we started our P. U. a payments back in the first of of may. But actually that's the date when we did applications when our system was open for applications which was officially opened after a soft launch on may the fifth so that's the date that they showed at the national level at the state association association for states that we were actually paying out benefits but what I've learned to this whole process is that the news media picks it up by news releases and information it's on our website and what may appear to the state's pet making out pain making payments they really just were standing up their system to take applications and some states are still at the stage of taking applications and are not making payments at this time so I have more information about that if you would like to know based on my research what states are not making payments I only show it's two or three states that are not making payments and I'm sure that a lot of those have experienced the the Trials of and and errors in the and the Incidents that we have had an I won't call out those states but I know that that you've seen that in the in the media and you know that other states are experiencing the same issues that we are in setting up a system without the attesting that is normally required but due to the need to get the the money to the individuals many states are experiencing what we've experienced it's unfortunate we that we have learned a lot of lessons through this process and we plan to implement those in the future and to make sure that we have taken the necessary steps to protect the citizens of Arkansas. However in doing this we've also provided the citizens of Arkansas with a substantial amount of money in order to has since them as we are taking thousands of calls every day and answering those emails every day and talking to citizens as most of us do into late into the night so that we can make sure that we're addressing their concerns that is our primary goal is to as the governor stated and is secretary precedence stated to make sure that the payments went out as soon as possible because we know that their citizens that need that money and will continue to need that money for some period of time. As I going to the next graphic which I will make sure that you have a later as soon as we we are. Finished and wrap up here. this graphic shows you the type of worker that you are whether rather you okay good thank you if you are a W. two worker or if you're self employed ten ninety nine independent contractor etcetera and then the programs that that are available and the provisions that were made in the cares act to assist these individuals if you're a regular W. to worker then you go into your regular unemployment insurance program but the other programs in the one that we just spoke about is the pandemic unemployment assistance which is to the right of this graphic. Then it goes on down and I won't read all of this to you but the steps as to what an individual would do once they have exhausted their regular you are benefits then they can apply for pandemic unemployment compensation and. So on so it takes you through our the pandemic emergency unemployment compensation which is an extension of regular unemployment and then once those benefits are exhausted then they can apply for pandemic and employment assistance all of these programs run through the end of the year until in Arkansas December I'm looking for the last date. Don't know that it's on here but toward the till and they're in effect until December thirty first I will be that last week in December with that week ending date I believe that December twenty six I don't see that on here but that is the date if that's the Saturday don't have my calendar with me. All of those benefits are paid with the exception of the federal pandemic unemployment compensation which is the X. for six hundred dollars and those benefits expire with the week ending July twenty fifth so I think this will be very helpful for you on the back which you you don't I don't know that you will be able to see that on the screen thank you very much I there's an outline of all of the unemployment programs and more description so I'm hopeful that that this is something that you can use that you're talking to your constituents and you're getting questions so that you can be prepared. I will be glad to take questions but before I do I want to make sure that I express my appreciation to you all for continuing to be in contact with us to communicate with us about your constituent needs giving us the opportunity to work through the different programs and answer the questions for your constituents and I always say if there's any one that I haven't responded to and you're still waiting on an answer which I did this morning on one that that we had still not received an answer of feel free to. Call me tex me email me because I want to make sure that I haven't left anything out there that's an answered and I want to make sure your constituents or served so I thank you for your time will open it up for the available for questions and and look for to answering your questions senator Chesterfield you're recognized for a question. You Mr chair thank you Dr Childress for getting on the program could you tell me if we did a claw back as far as our contract with the with the pro tech group when the system correct. Senator Chesterfield I'm gonna move this over just a little bit so that car Hawkins can answer that question thank you. Senator Chesterfield we haven't made any payments yet and the contract does have some terminology included in the the teas and sees that that would allow us to potentially do that if that's what's determined to to to be done about that has not been determined yet but there is language in the contract that would allow us to and we haven't made any payments yet until all that's worked out. Senator hammer just you have a microphone now back there if you would. Thank you would you just clarify one point that is a got contacted by several people about P. U. a what you said awhile ago that they start to get their national money but are they going to have to go back in and re enter the previous weeks again or would you just clarify that please thank you. Yes Sir Senator hammer of it is required by federal law for an individual to continue to do their weekly claims and there is an opportunity for them to go back into retro weeks all the way back to the date that their business was affected so we will have that peace in place a Carter Hawkins may be able to give you an estimate on that and we will have that peace in place they will all go back into the retro weeks and then they will receive those payments. Should they receive. Senator hammer were we are working on that functionality nail and it is under going testing so we expect that functionality to be out within the next week to two weeks at the latest depending on how testing as. Representative all you're recognized for a question. Thank you I thank you just answer my question Mr chair so you thank you and a week to two weeks they'll be able to do retro will they be getting an email explaining to them how to do that or we just gonna hope and pray they can figure it out no in that they will receive an email to that effect once the that functionality is available we have been sending emails out to the pre approved climate so they'll know to go in and perform their weekly claims we expect an email to go out as soon as the testing is complete and the functionality goes into production can I ask a follow up Mr chair you're recognized so I have one other question that's not kind of in that same line but how many people do you know that still setting out there that is not gotten any money yet it all due to maybe a pace the missing Document or whatever it may be they're just still sitting out there yes ma'am we we do have some of those details there are about thirty nine thousand people that have applied as of yesterday evening and out of the thirty nine thousand that have applied there are around thirteen thousand there pending some sort of review because of a missing documentation or they appear to be out of state workers so we have to check to make sure that they're not receiving out of state unemployment insurance there's is a series of categories that we have it broken down into as to what may be keeping them from receiving their payments mail or being able to go on and perform their weekly claim function there are quite a few people that have not gone online to complete their weekly claims to receive their benefits so that's a message that I think we need to get out to everyone in addition to the emails that we're sending out is that they need to be sure of remember to go online to complete their weekly claim so they will be eligible to receive their benefits and do you know that they're having trouble use in their phones to be able to do that it says it's sensitive something sensitive I've had several takes me even today lack I can't I just use my phone to do this model I have to go to a desktop okay I am aware of that particular issue but I can definitely follow up with you after we're to get those details our existing system for regular you a there is I'm aware of an issue there but not with P. U. A. P. U. A is a new modern system which works on mobile devices however with our old system there we we do have some messaging on the website for the old regular you I system that since the on to their desktop and advises them to use their desktop versus their mobile phones and that's because of the age of the system thank you Mr chair. Why would we not be addressing that for the old system I mean in today's time a lot of folks use our phone as their internet device. Yes just curious what rule or we pursuing minor we're not pursuing that or where we at all not we we are pursuing that we have some development that is almost ready for testing on the old you I system but P. U. A was the priority at the time to be able to make sure our resources were focusing prioritized on P. way so we had to kind of put that on hold for now but we are getting to that that is in the hopper. Okay Senator Ingram you're recognized for a question. Of the area that was labeled other under the cares act that's all hundred percent federal money correct. The provisions that are provided to you in the power point that are on the list yes. Those that are regular you I the regular you out benefits are still state nine was not my question my question was under your the what you had under other yes your label it the. The pandemic assistance for gig workers and not all of that so a hundred percent federal money correct yes are you referring to pay you I work all the provision your you listed it I I I I don't I can't see it you had other thing your diagram you had your yes Sir in the diagram it does say other and that is the individuals that are self employed that's all a hundred percent federal money yes Sir right now for instance the the probe tech solutions the quarter of million dollars that was spent four of its expanding the program to make it work it sounds like we're patching known to we spent money patch known to know program but of that money that was spent is that reimbursable federal money since that was not a normal function of what we were doing this is a direct result with the federal government reimburses that two hundred fifty thousand dollars. US. I want to just go back for just a minute to the Pro tech contract the project contract is a three million dollar contract but but did not read or did I not see that to to work the the the two of work on the the It is it a P. P. U. I. A. is enough and acronyms here the P. U. a that that to to put that component in place you added another two hundred fifty thousand dollars to the contract so. All right we'll know ready as if whether it be this five million dollars what difference that the my question is again is it reimbursable by the federal government because this is something that we weren't doing is ordinary course of business yes are there are funds that are available through the federal administer you by admin fund that we we did receive a to use to build the new system however at the as we as we look at the current expenditure level and the cost of setting up a new system that we didn't have in place we anticipate that we will not have enough funds in order to cover the total cost at the end of the day when we when we finish setting up the system paying that out and then paying out all the staffing that's required the within our office the overtime and the call center. And so with that I guess you be able to provide us an idea of what the excess costs would be the above that absolutely Senator Ingram thank you for asking that I have given those projections to to secretary Preston and to the cares committee for consideration because we do anticipate that we will have more expenditures then the federal government is providing to us yes Sir if I might one last question of you mention that taxes in Tennessee seem to be for far ahead of us. Because they'd had disasters before you know I don't I don't know that they've got the corner on disaster certainly we've had disasters in Arkansas is there any of is there any discussion now on moving our program into the twenty first century yes Sir Senator Ingram thank you for asking so when I started it the agency in July of twenty nineteen it was brought to my attention that our system was in I need of standardization and modernization so I immediately began meeting with the I. us and looked at the situation and the and in the context of where and how we were operating with our current system and on the main frame that we were required to be off of by July one of twenty twenty. So that's when I we started having those discussions looking at what we needed to do he we needed to engage in order to to get to the the point where we could move our system off of the main frame in doing so I recognize that I needed and I. T. lead and that's when I came before you some of you in the personnel committee and requested in and I. T. position I'm so that I can have an I. T. laid to lead these efforts and someone that that could manage this this transformation so be it of systems and and operations within division of workforce services in particular unemployment insurance so that position was filled and Carter Hawkins has been leading that effort so appreciative to the the committee the personnel committee and you offer recognizing that now before the pandemic we came to you and and requested funds in order to engage a company to the to assist us in doing continuing on the work that they had previous down with just an assessment and so we wanted to start that process and and we were fortunate enough that you approved funds to do that that's when the pandemic yet so that is still on the table this opportunity has provided us a chance to move forward with modernizing our system. Faster than we had planned but at the end we planned on using this what we've developed in order to continue to build upon this and to modernize are you I system so we we are will use this as a as a the building block what we need to to have in place and then start improving on the the system to accommodate a regular you out benefits. Senator rice you're recognized. Thank you Mr chair not I can wait if you want me to it's not about the UK but is about unemployment assistance. You're recognized your of I received the email this morning I thought it might be helpful committee I could find out offline but From someone in my area that has multiple businesses retails and different service businesses that are in an out of state pretty good size operation altogether they are expressing to me some things that I've heard otherwise and I won't I won't our our people to get all the services and and help with the canon this pandemic. But as a retailer of fifty years or so. I'm saying some reading behavior and I don't question people that are concerned about their health and all this employer is stating that there are people that he has not laid off that they are is going home saying they're concerned about their health their quitting. And yet when he's gets the card from work for services they're saying they were laid off he says he knows. is is that they're getting benefits and his question is is. Is a higher contribution rate going to be assessed AM. And what is the What can be done I know you can question that but we're talking we're fixed may hit a bunch you that if people because of their sit sincere health concerns. That they're reacting different and they're getting some benefits so they they have a a carrot there that your that's being put out form so it's understandable can you tell me what these employers can do besides trying to keep their business is up and running what they're going to be faced with workforce services about this unemployment that that the people have quit their job. A yes Sir that is something that we talk about often we are hearing from employers with in center similar situations and then also those employers that their employees are just refusing to return to work so we're giving them the instruction as to report that to our office and also we want to work with that employer to to make sure that they're aware of all of the opportunity that they have to appeal that decision. As far as the employer contribution rates we are looking at that we have brought that up and are within our state you are directors of conferences conference calls and also at the national level level with our association so that is something that all states are are recognizing as something that will be another burden on businesses if their arm contribution rate increases. As we complete this quarter that will in June thirtieth we expect that that will be of a big Factor in the contribution rates and the increase for those employers so we've brought that up to the department of labor and also to the U. I section of the department of labor and among our state of our state members of our association so I appreciate your question I do not have an answer to that now I don't know that there will be any waivers or or any of adjustments available but it is something that we are discussing and I'll make sure that I soon as I learn something that I present that information to you and of course the employers in our state I appreciate your efforts appreciate your accessibility to legislators and and getting question for our constituents thank thank you. Representative Lundstrum you're recognized for a question members I would remind you we have a lot of questions in the queue and I'm seeing members come back in the queue I'm going to hold you in the queue if you're there for a second time until everyone is allowed to go the first time. So just making sure you guys are aware of why you're getting health. Absent on street recognized thank you two quick questions just on insurance I understand we do have cyber insurance Can you explain how much we have and then have we had any claims filed so far. Yes ma'am we we do have cyber insurance and it's it's pretty substantial policy I can't speak to the numbers off the top of my head right now I don't have those numbers in front of me but I can't get those to you the Arkansas insurance department manages that program and I can get that information and coordinate with them to get that to you there have been I believe incidents in the past I don't know the details of those but there are some out there to my understanding that has the the the. Been identified since the insurance policy has gone into place but I don't know the details of all okay thank you. Or have any. Senator Ballinger. Recognized for a question. Thank you Mr chair of. Mr Preston so last week we had the state agency meeting of the legislature and your schedule to come then you say your regrets is the fact you couldn't come and what you cited was similar to what you said today the the federal investigation. But then later on the governor said that you were that he asked you not to attend so that you could help get the peace PC checks out. Which which was that what what was the reason why you but able to ten. Thank you senator for for the question and as I mentioned early if there was a miscommunication misunderstanding our apologies we were discussing with the with with the FBI but what we were not allowed to stay and they were instructing us not to you know default information so there was a concern that you know what we could say at that time what we can't say is what I shared a little bit earlier but then also we were working feverishly with the team to get those P. U. a payments out so I'd say it was a combination of of both things that we were trying to address that situation but also making sure that we were an instant and stepping with what law enforcement in the grand jury subpoena instructed us to we share with them at this time that there was a commitment that we would go before the legislature this week to this body knowing that there was going to be a lot of members and we could talk to as many as we possibly could about getting that information out. But it were you communicated to last week that anything that you felt like you one at liberty to discuss you wouldn't wouldn't be at wouldn't be required to answer those questions. The the chair of the committee communicate that to you I communicated to the through the staff that you know the letter that I sent to the the staff which is made part of the exhibit I would do not receive a communication back that they were still an expectation for for me to be there well from my understanding they said they communicated to you that that it was that you were you were basically given we where grace not to answer anything that that you thought you did have liberty because there's a lot of other things clearly we we've dealt with a lot of other issues today that had nothing to do with that specific issue so that I mean from my standpoint my concern as a legislator ninety so much about these issues directly is the fact that if the roots of a state agencies committee meeting you were scheduled to be there and then wasn't able to attend and there's two different reasons given for your not being able to at ten and that to me is a little bit concerning as a member of the of the body it it regardless of what the issues are that we're dealing with which obviously are all really important the question is you know why as a as a the secretary of and basically director of agency why weren't you able to attend to just basically informed the legislature on those issues I appreciate you being here today that's great but you know why is it that you're able to be here today and you won able to be there we can go. Senate I think that's the exactly what I address that there was there was two fold there and as I said I apologize so there's any miscommunication misunderstanding when I sent the the communication back I thought it was understood that that was that was acceptable we quickly learned the the following day that that was not and again Paula eyes and we're glad that we're able to be here today and talk to these issues. So. Would you in a I'm Mr chair as and final question would you say it was acceptable now to do that. center I'll say that again I apologize that we the you know there's any miscommunication and we're glad that we're able to be here today to to answer these questions are you apologizing for not showing up for you apologizing because we misunderstood you. I would send the apologies on me because there is I was clearly My understanding was that it was okay that I was not to come state agencies and I would be here today. Thank. Represented wooden you're recognized for a question. Thank you Mr chairman. I have two questions that come up concerning senator rice indication. I'm getting a lot of phone calls emails and different communications relative to. who are continually told that their claims are pending. And One that I got yesterday indicated that it would have been six weeks since they have filed for the claim and each time they would be told that they were pending. Then they tried to go through the local office to get some clarification and it was the. Less than successful this put it that way. So we're we're are we relative to says funding these claims either telling these people that qualify or they don't qualify and we're dragging it out for six six seven eight weeks. May I. Thank you for your question of the P. U. if this individual has applied for pandemic an employment assistance the program an application hasn't been available for six weeks if the individual has applied for unemployment insurance then there is probably of a reason I'm sure there's a reason why that individuals claim has not been processed so if you would like to give me that individual's name every circumstance and and situation is different so if you would like to give me that individual's name they'll be glad to in their phone number I'll be glad to contact them and find out more information and then we will we will make sure that we look at his claim within the P. U. a system or the US system. Mr my second question. I'm starting in here that some folks are being offered returned to their employment and to their job. And with the well Kerr drawing in an employment close the six hundred dollars a week they're making more money or are you would you all have a system to double check that to make sure that they're not writing is when when when they have an opportunity to go back to work. Yes we've messed up commit the federal government is relative to the six hundred dollars a week in addition to the normal payments but now. There are those who are making more money and they're not willing to go back to work. Yes Sir we do offer that to employers if they have an employee who had who they've offered to return to work in the employer refuses to to return to work then that employer and this is always been the case that employer should notify our office so that we can make sure that we look into the issue surrounding that on willingness to return to work so again if you have a specific employer and their they have not reached out to our office on courage them to do so you can send them straight to me and I'll get them to the right person. Thank you and I appreciate Joe's efforts thank you thank you very much. Thank you Representative Representative Goffey if you could use the microphone to year to year left for you have one okay you're recognized for a question thank you Mr chair and thank you doctor told us for being here I have a question about the protect contract and you talked a little bit about it and some of the limitations we had as we as a state had in securing that contract I would just like to know a little bit more about how and why tech in particular was chosen to receive the contract if you would choose them again and if not are there other development companies that. We can let you mentioned you know needed to kind of line those that beforehand in case anything like this were to happen again do you have other development companies in mind who we can start that process work thank you. The first question is why we choose protek the reason we chose protek is as I mentioned earlier they were available we already had them under contract with D. F. and A for the purposes of the child support system so they were ready of Lee available under an emergency procurement. That's what allowed us to can to put this program in place as quickly as we did. Out would we choose them again well that would depend on if we had other people in the state that we could utilize contracts that were available open and available we could use them under on an emergency situation and in this case this is the this is the vendor that we had that was readily available and we could begin working with them immediately. And then your last question please. Are there have you started looking for other companies to. May be better suited to receive a contract in the future. I will outlast Carter to address that item. So at the moment we haven't been actively looking for additional companies because we've been in the middle of this project and haven't had the the resources are staffing to be able to look for additional companies we do have a long laundry list of companies that have reached out to us as you can imagine we get emails hourly from company saying that they can help us a quicker so we're keeping those and we're trying to understand what other states are doing what companies have been able to perform for them and might be able to help us in the future my comment to what we use protek again as yes they have been they have the they've delivered quickly. And they have been very professional and good to work with they had an established team here in Arkansas for a long time that was already A. engaged here and easy to work with you know it was unfortunate that we have the issue that we had however but they they have been great to work with and delivered a quality product that we have in place today that is secure so. Thank you thank you Mr. Senator DISMANG you're recognized for a question thing Mr chairman in an one quick question reach you Mr chairman are we are we asking questions just about unemployment this point or do we have when we got it asked some maybes with we have questions about the ready for business program. You can do that now senator cat what so my first question is just on the you II in the experience ratings there are we able to use the cares act funding to be able to prop back up our trust fund in maybe mitigate some acts of red conflicting articles that say that you can use it but I just wanna see what limitations are for that. That has been discussed but as far as they allow it whether or not that's allow old we've meant not being given any direction that it is allowed but that is something that we will continue to to to look into and discover with our other state agencies because that you're right it's been discussed a lot of articles and we know that that of that something that we must put back into place and have have available in our state in as far as our experience ratings they're not. Exactly tied to the fund balance in it I mean do we are are fund balances stable as far as you that you are at this point. We I'm trying to remember the number of weeks we projected the number of weeks that we would be able to continue to pay you out benefits and senator DISMANG I'll have to get that number to you I don't want to guess because I'm afraid that I'll be that will be incorrect but we are watching their ballots daily we are looking at the the activity and the increase in and expenditures. And and will and and will make sure that we. Bring that to your attention and to the attention of of the secretary Preston on. When we receive that information we know more about what the what what we can use if there are cares funds acts of act funds available or not in in in really my last on the experience rating does that ring and we we shattered businesses or state of Arkansas did which then required people to be you know forced layoffs which then required these folks to then apply you know FOR unemployment against the company that was forced to be shipped by the state which then ultimately will increase the experience rating this is that something that we can take care of by statute I mean that you we can take care of by rule or can only be addressed through statute. You know to to this is somewhat but something in place to hold these folks harmless in regards experience rating because they were forced to lay off people due to no no because of their own. And if if I understand you correctly that would be tied to this question that was asked earlier by senator rice and that is something that we will continue to to follow and to determine if there's anything at the state level that can be done but as of right now my understanding is that is that is of determined at the federal level so yeah I'm talking about this state statutes on experience rating is something that we need to you know we do it legislatively and I'm wondering how much leeway we have to do things by rules so that we don't you know harm those businesses that we force to ship by also increasing their experience rating because we forced them to shut down and you know create layoffs thank you senator DISMANG for clarification I will find out the information to your question I do not know that question that is a very technical question that my you are director would be able to answer but she's not here so I will find the answer to the question and will respond to to you in the committee if that's acceptable and then I said that one more I'm sorry Mr chairman and in the the last is on that see we did waive some requirements so for instance we put a thirty day a waiver in place the governor did by rule that people had to seek work if they were working for a company that you know force lay off but plan to re open have all those rule rules been you know I guess as their time pastor though still active at this point the governor extended those to the end of the pandemic so we currently have those waivers date they are in place and will continue as long as as long as the governor and and and are in the of availability to do that is is there which is also a reason we've got to take a look at helping folks out with the experience rating these are you know things and causes that are being done you know by the guy. But that that's in going to impact their tax rating in the future as far as the ready for business program have we had any issues with the rollout or the disbursement of those funds in wind we ultimately expect everyone to be funded through that program and I'll hop off thank you Mr chairman. And thank you Sir for the question and no we haven't had any issues with the roll out everyone has should have received an email by now as I mentioned earlier of the the twelve thousand two hundred thirty four applications ten thousand five hundred thirty seven have been approved about roughly about twenty five hundred of those are state approved pending an additional document that they need to supplied to us and they've been notified of that all told that ten thousand five hundred start receiving payments last week in the the bulk of it will be dispersed by the end of this week pending when those additional information is received to us about fourteen hundred are still either we're TAXDELINQUENT and we've reached out to them to let them know that they need to satisfy that or pretending some still additional review Eddie DC about five hundred of the the twelve thousand. Hello Jeff shot at it the I had asked him to run the numbers about where we are on the trust fund and this is about two weeks ago we were somewhere around seven hundred million dollars is is the ballot currently we're running about fourteen times normal unemployment of it that we're paying out the worst case scenario that was figured was about seventeen times but we're at about fourteen and and and and we're climbing a couple weeks ago that would allow us to pace through probably November of maybe make it to the first of the year depending on that of those that have been around here for awhile remember two thousand nine two thousand ten when we barred against the federal government I think Teague did we get up to about three hundred million dollars that we barred against and they had a program but right now we should be at the current rate somewhere between like November and the end of the year. Thank you senator. Senator bond you're recognized for a question. But this one of the. When we go back to the numbers we have thirty nine thousand claims that have been filed for the P. U. A. the pandemic unemployment assistance. You said sixteen thousand checks have been cut approximately. Yes and thirteen thousand we're still pending. Proximate one so there's ten where the other ten thousand. There are sixteen thousand checks that would get general microphones. sixteen thousand checks that have been cut the thirteen thousand that are pending are pending with some sort of an issue that we can't give them an Errol approval for the gap of. The the gap is people that have not father weekly claim yet so we cannot give them the check under the benefit so the people that are in that gap have been approved but they haven't on line you could get closer to that might force are the people that are approved on interim basis for the during that gap they have not filed their weekly claim yet and that's what I mentioned earlier that it's important to remind everybody to go online to father weekly claim if they have received that in Rome approval so we have thirteen thousand pending that need some investigation from the office right we know we have it set up the system to make back payments going back for the retroactive payments would be which would be a significant sum of money for a lot of these people. I think what do we need to do to clear the thirteen thousand and get ready to make those back payments immediately I'm I'm concerned that we don't feel the urgency that's out there we continue to make understandably I know everybody's working hard a lot of excuses for why we're get not getting the money out but how do we get the money out and get these cleared immediately we transform government to make us more nimble house feel like we're not being nimble enough reassigning employees getting this money out to the people how do we help you all do that as quickly as possible. You may answer the. Yes Sir very good question and I just want to reiterate the sense of urgency we the entire team including our partner state agencies and the vendor have an extreme sense of urgency right now we do have a fast track plan in place to be able to skews me to be able to approve those claims and get work work for those claims and through all of those issues we have you know some about seventy five staff that are on the P. U. eighteen that are answering calls and ready to determine that eligibility starting as early as next week once all those pieces fall in the place in that piece the system has been tested successfully I when I mentioned one week to two weeks the two weeks as a worst case scenario but our our goal as of today is to start working those thirteen thousand actively as soon as Sunday barring any issues with system test so at this time I'm out for a I appreciate the the offer the opportunity in the the offer for help I really feel like we have a solid plan in place to get us into next week in the start turning that eligibility I think the the law as I understand it for transformation allows us the flexibility to bring on additional staff is needed so I think we have what we need right now to be able to perform that function next week well in that and I appreciate that so and I've asked several times along with many members legislation do need more help anymore please we just process ten thousand dollars ready for our ten thousand ready for business grants very quickly but we've had this P. U. a system lagging and thirteen thousand people are still hanging and we saw the made back payments so if you need more people if we need to do something else let's do it let's not just continue to drag it out I think everybody here would be willing to do that but I think we need to act quicker. If I may add to that. German. I would ask that all of you contact your constituents that you tell them to check their emails and make sure that the the youth they're they're keeping track of their account so they need to go and log on they need to look and see if they have the opportunity to to submit their weekly Klein I help someone with this yesterday so I walk them through us at first look in your email see if you have you been receiving emails yes ma'am then would you go in and look in your junk folder in your spam folder to make sure that the emails not there yes I'm looking there I don't see it but I was receiving emails then I said why don't we go ahead and go online so you can look in your account so this individual went online opened at their account logged in law opened up their account there was a box there where they could father weekly Klein walked her through that she successfully completed that and so her payment will will go out and in the nightly dispersals so if you if there's something that you can do in addition to what we're doing is as Carter mentioned is contact your those that are contacting you make sure you tell them the things that I just told you and then if you will contact your constituents and just let them know that we are processing claims they need to go into their account and see if that weekly claim is available because we know that these individuals were were sent an email and we're monitoring that and then checking those that were kicked back for some reason and making sure that those are corrected in reaching out to those individuals but we need them to respond and so we're doing extra emails and alerts and we can use your assistance in making sure that you tell your constituents that it's it's open and that we we need them to go into their weekly Klein thank you. If you would Dr Childress if if you or your agency compare like a one pager we can all post that on our social media and we can get it out our staff and get it all membership not just Dale C.. Thank you. Yes we will do that thank you senator RAPERT are you it seat eighty nine. Eighty eight Senator Clark your eighty nine. You're recognized. Thank you Mr chair of first I would like to ask the chair bill or this report. don't have magnifying glass but it appears to be all up ready for business appears to be an order of when these people. File on the internet of it was possible at least for me I would like to have it ranked of by the grant amount song city get easier to save for most of the money went. and I have Mister have a question for Dr Childress and FOR Mister president. Dr Childress. As an employer for forty years of all upon the center rass question. Kind of of as an employer for forty years of I can't remember a time when the. Fund. Dropped drastically. That we that are remedy was not to come back. With a surcharge that may not be the correct term on employers to make it back up I can't remember a single time that that did not happen regardless of whether you like people offer not of whether or not regard he asked what what was your fault or not work for the late anybody offer not there was a surcharge is there any reason to believe that would not be the case this time. I do not have any information as to whether there will or will not be a surcharge but I will definitely look. A look into that see if there's anything else that we have any information we have at the federal level and then if there's something that we can do at the state level just like you mention though that fund does have to be replenished somehow money has to come from somewhere that's right so I appreciate you bringing at that point and I will Provide more information to this body as we. Work on this particular concern of yours and of ours so that we can be proactive and look into what we need to be prepared to do at the state level if it's allowable. Okay thank you thank you Mr president of three branches of government executive legislative judiciary you work for the executive this is the legislative you mentioned the Judiciary. Has there been a time. could you mention having to appear before a grand jury as or been a time that you failed to appear before the judiciary branch because there were questions there that you might not be able to answer. Mister chair and in the grand jury subpoenas related to information not to to go testify it was about not disclosing information related to the investigation not that myself or my team would be be testifying and I have not been asked to go in front of a judicial branch to two just to testify and if I could to your earlier question on the the document if we send it as a excel spreadsheet so if you have that email or staff could share that with you you can sort it however you live like within that excel spreadsheet. No my question wasn't. Particular about the render it was have you ever. A failed to appear because I haven't failed to appear for road before the Judiciary because there was a question I mean I know that I have the right not to answer it for certain reasons but I asked if you to refill not to appear before the due chair judiciary because a we're questions that you might not be able to answer. I've never been requested to go. Testified before it thank you Mr judiciary. Senator Caldwell you're recognized for a question. I've got to thank you adopt Childress the phone refer back soon to rice and represent Wooten talking about to employees who have been called back to work and the. refused because are drawn more money on employment you should you look into that but isn't that the policy of the rule of of our own employment that when employees or call back to work that their benefits are should in that that's the purpose of ending benefits is to get those people go back to work and are you allowing employees to stay on employment and refused to go back work. Thank you for your question senator Caldwell these these. Unprecedented times are putting us in a position that we've never been in before. So yes in the past with regular unemployment insurance an individual was required to go back to work. Was subject to going back to work when an employer. Call them back to work when there was a lay off or furlough. With the provisions in the cares act there are numerous conditions as to under under the conditions that are allowed to receive unemployment. And possibly to have a one of those conditions that prevents you from returning to work. So again this process in a really Of in a situation that we've never been in before no state has ever been in before so if an employer calls an employee back to work then that employer should report that to our office if that employee does not return to work and they have a consummate accommodations for them and have address their needs and had that discussion with that employee. And the employee still refuses to return to work that ended that employer should contact us. What happens is. To my understanding is that when the individual fires files for unemployment. that there there is a possibility that that individual receives payment for a week or two before we receive the determination or the the information excuse me from the employer as to whether or not day are in agreement with the calls that the employer employee stated or not so there is a there some time there that passes usually and that employee may receive benefits at the time we receive that information back from the employer then that's when that decision is made based on the employer's response if the employer response. So then that's when you go into the the period of. Of determining whether those benefits are continued or whether they're they're not and then that gives both parties an opportunity to appeal. I know that was a long explanation that I thought was important they did that that process be explained and I hope I explained it correctly and I don't think you did to be honest with you because the basically what you're going to have if you let employees decide when they're going to go back to work or stay on point you've got the tail wagging the dog and then you don't turn around and make the employer pay a premium owners unemployment insurance to help pay for the money that you're paying these people to stay off work when in fact they have a job I would like for bill or miscarriage look in addition the wording of that of we'll take that up and state agencies meeting in the future as to whether or not of these employees have the right to sail four pointer call back we need to look into that more detail second question I have for Mr pression we're talking about needing more people to get to pay you a out of why hasn't shared services stepped up to help do you have yes and why can't the yes to vote staff to this in the isn't that the whole point of transformation insured services. Send us a great question in in this is Carter Mister Hawkins alluded to before we have done a a partnership with D. F. and A to stand up this call center to evaluate these and I think it is an example of of transformation shared services working together I like Carter speak a little bit more and I know secretary Walter and his team were here as well can speak to some of the efforts that have been done in conjunction and calling people back and I know shared services is been a big part in helping us get this this call center these people brought on. Governor yes Sir I think that's a good question and The I. S. has an application development team that has the expertise to do this type of work but it's not a a large application development team and they have systems the and applications that that team is responsible for maintaining throughout this pandemic which it one of which is the DWS system it's the tax twenty one system that employers pay into or used to pay into but to answer your question further DIS and transformation insured services provided procurement support for us when we were working through several different procurements DIS in their staff provided over the weekend and and and support at night standing up call centers of multiple call centers of the the phone system that the state uses there's a staff at the I. us that helps manage that and they worked with us long hours starting to two and a half months ago and since then to you know keep that system up and running an ad resources to it that are needed for the the additional lines that we have been asking of India if a again there I T. staff had a relationship with this vendor we had reached out to DFA to help us because of their footprint across the state the potential early on the potential for us to use their local offices if that was determined what was needed to do alternately it was not determined that we needed to do that so there are many reasons that we went over DFA for support the application development team and the the I. T. staff that DFA has is one of the best in the state and they have a process is in place to engage quickly to to move at the speed and pace at which we had to move so. Thank you madam chair. Thank you a Representative McCain's you're recognized for a question. Thank you madam chair my question is for secretary prestin first of all thank you to so many people done a phenomenal job and and at the heart hard times I don't know if it was a miscommunication with the thing wasn't so I'll take whatever you're saying on on your side but from my vantage point and for the folks who represent I think it's really crucial. That we stand up to give an account and I think that's part of my job is to attend any agent agency in committee meetings and I'm on and so that but my hope would be my question is that I wanted to ask on last week I have to be very quick a number of my constituents had issues of course with the grant program so I'd like to know when something's ask mean I know that this was covered I don't think I saw this covered trying to watch these meetings here but maybe I missed it when the initial twelve and a half million was offered And we have an I was listening to that press conference that day that's how I try to find out what's going on I had no idea this program is in the works and it makes it tough for me to help my constituents out and so I heard the programs that will I didn't know that was going on and I was also surprised we were getting that out there while I still had people calling me about the P. U. way but when that program was announced. At that conference. If I understand correctly the twelve and half million we don't have any criteria on that so that was going to be based first come first serve is that correct. Madam chair thank you thank you for the question was correct it was going to be the first come first serve we're able to to get those funds and was initial fifteen million are thank you and during that converts I didn't catch it do we give a heads up the folks this is first come first serve the reading. We said that we will open it up at the at that time at five PM it wasn't you know specifically said no those that that terminology first come first serve but we were going to gauge how many people we had anticipated being open much longer than that but when the request exceeded thirty six million dollars that we had to re evaluate so when I know there isn't subsequent meeting to you know I guess to alert as you said some of the state partners do we let them know. This is gonna be whether use that phrase or not do we let them know time is of the essence here and you might want to get in quickly of we did not we just wanted to get the word out about what the program was and what was intended to do okay but we you didn't know that it was going to be probably first come first serve in one last question on that so were they given any advance notice this is the kind of paperwork you gonna need you're gonna need this certificate of good standing or did they not have any with a heads up how to get there quickly when it was announced of the governor's press conference on our website on ADC dot com for everyone to see we laid out there exactly what you would need to submit your information so that information was on our website at one third just after one thirty at the governor's press conference okay so just one more than I have a real quick question the second just a fast one so as a legislator trying to represent you pointed out the folks in mind district small mama pops. Thankfully I was listening that press conference but I didn't get obviously I did know was first come first serve and I have a text message back and forth because one those written with the same day we and we announced they a restaurant guidelines so one of my small mom pop said what's that what's that what's the verdict and so I gave him the information of course for them that when the said well I made its on the town because that message small business they were milled comedy body not so well I got some good news for you though there's this great program I just heard about. But I had no idea time is of the essence I didn't know. I didn't and I. We need to know that in advance if we're going to serve our people here and I I'm not I understand their frustration now it got fixed it was remedy but that's why I want to I want to convey here is when we don't get the legislators heads up we can't help it doesn't seem fair to folks when certain groups get a heads up so my hope is that with a billion plus out there on a lot of it's been spent already. We we bring more people in on the conversation not less because we need to represent these people it's their billion. That we're spending so in all these of we have a small group of people in concentration of power I feel like it lessens the voice of the people back home my the quick question on the grant program I know that hundred thousand dollars is the is the Max I know that we keep talking about PP and all that stuff but also they can use this for marketing correct. Correct can I use a hundred thousand dollars of of marketing they can use it to it's a market that they are open and safe it's there okay for them to come in and and do business again at that at that establishment but they can't so they can use a hundred thousand dollars in any kind of marketing that this was in the terms and conditions yes ma'am thank you. All right thank you senator Elliott you're recognized for a question. Thank you madam chair I think might affect this I think my questions can be answered pretty quickly if will try to do it that way and my first question has to do with the or if we were to we were discussing I think I that replacement. Of the trust fund amounts that we have spent we spent down so low I with perhaps the cares ACT money generally speaking when there is federal funds and when there are federal funds involved and we replace something that's considered supplanting it we can't do it would you assume that might be the same issue here do you have some guidance to the contrary. Thank you senator Elliott yes I am familiar with supplanting and and not supplanting and that would be my concern is this would be considered supplanting so if it's already something that we that we provide that's provided three state funds or three state resources I would. I would question that whether or not it could be replaced that's where I think we will need that guidance and possibly waivers at the federal level because like I said earlier we are not the only state however I will say that our trust fund is a better position in a better position than most states. But it is to question it is something that that has been asked and will continue to be asked at the federal level by the state directors and I appreciate your interest in it as well okay I will add that to the conversation into the list to bring back to you all right and a question for Mister Preston about the ready for business Grants of for those folks who have not qualified have you discerned any patterns of issues that folks are having by not qualifying other than delinquent taxes. Of manager thank you thank you for the question no it's it's more just issues about the business that maybe they're not showing up in D. F. and A system that they provided tax ID number that doesn't you know a job with what's in the the system FOR D. F. and A and might be as simple as they they enter the information wrong so we're trying to troubleshoot all those right now there was just random and and this it can be a quick when I think that if we were to take the amount of time when if if everything was prepared and we were ready to go when we were first going to start the P. U. eight A payments How much time has lapse between if we were basically ready to go and the time that we first started issuing those payments what is that time period then. So I wanna make sure I understand your question when you say ready to go they will not day one when if if we had whatever day one would have been when we were going to start if we had a good system. Right so from March the twenty seventh when the cares act was passed until we started issuing payments it was about Well let me back up it was fifty six days from the date of signing until we made a payment from the date for March twenty seventh until may the twenty first about fifty six days we didn't receive the you pull which is the on an appointment program insurance letter that right I'm sorry from the federal government yes you're talking about okay yes ma'am until April the fifth so we receive the you pull on April the fifth if we would have been ready to go with a modern system it probably would have taken us about a week to two weeks to be issuing payments to get that out the door and we would not. Simply we would not have to do an extra procurement or a special procurement for a vendor because we would have had a modernization vendor already engaged potentially and my last question that it because of that me because I think that really speaks to the urgency people are feeling out there no one when it was they possibly could have started getting payments and did not so my last question has to do with the fact that we already that the our government already employer is protek and let's just say with child's Tom support this wanted contracts they have as I understand. Did it do the and do the folks of say and child support support just have a much better system than we have in the employment division or workforce what's what's the difference in say if the money had gone to child support where protect already has a contract with they have already been able to stand up this program and get started quicker because they have a more modern system. Or are we unique in workforce services that we don't have a modern system. We we are somewhat unique and DWS as the we don't have a modern system our system is spread out across multiple platforms including the main frame which makes it less agile for us to make things harder for us to make changes to whereas it's mine and I don't know a lot about the child support system but it is a more modern server by a system. Hello well I just want to get some clarity about because I'm looking at protek I'm looking at the system we had been don't have so Everybody takes responsibility but I want to be sure I understand is it is it pro tec is it the fact that we did not have a modern system or is it a is it all of that it. In my opinion it's combination of several things it's we did not have a modern system and then we were moving at a very quick pace to be able to get the money out the door since we didn't have a modern system we had to build a new one for P. U. a and to bill that system it would have FOR normally with procurement and a system build such as this any it would have taken anywhere from six to twelve months to build it and it's been done and about fifty six days actually less so from April the fourth until may the twenty first well I just want to be sure when we are looking back in solving our problems we are clear about what the problem actually was yes because if it's protek then protek takes responsibility but it is a system we have not modernize since nineteen hundred and something whatever then we need to be sure we're taking into account both those things because I I keep hearing time and time again across the country is not unusual that when it comes to systems like this we have not bothered to keep the modern because we really are not that hot about anybody using the system so we don't have a priority in making sure the systems are up to date. That's just a statement and I'm not bench with my question for you want to respond to it I'm have it here you respond well I just have a comment not really related to the your last statement but it's not protek we were moving very fast and asking them to move very quickly it pulled down to not being able to able down having to move too fast to get the money out the door and mistakes were made decisions were made to move quickly today to be able to accomplish that goal and unfortunately we did have an issue but. We had to use protek because of our aging system so it's a it's a combination of both but it's it's not protect we were asking them to move fast and and they were helping us and we were shoulder to shoulder with them to do that hi thank you madam chair I want to be clear I'm I'm just I'm not taking a side here with anybody one with other I just want to be sure that we are defining the problem before we start trying to solve it that's all I understand all right to a senator RAPERT you are recognized for a question thank you Mr chair I actually have a couple questions one especially after the last round of questions we had first of all on a the P. U. a system and Mister Hawkins you were just articulating to us that it's not anyone's fault. But yet people's personal information what was exposed. And so I just wondered if in all of this obviously the state has cyber insurance. But the now the insurance company is forced to step in and provide services and and protection and money that will be spent for that it's odd that it's no one's fault on this she said it was just too fast my question on this is and again you just made that statement some processing that the reason I bring it up but my question had been that I've been waiting for is what are the consequences. Of this terrible fumble. Which is possibly expose people which their information they may not even know what's been used or excess by anybody for months or years until it shows up and cause a problem so were there any consequences in the contract for the people that were hired to set this up the reason I ask it this way is an Arkansas all contractors know that with the Arkansas department of transportation built into those contractor penalties when they don't perform. And so here we are spending millions of dollars. But yet it's nobody's fault. And we just move on say we've made a mistake what about the people that were hired to do this is there not responsibility or consequences for them and if so what are the. Yes Sir in and out let me qualify my statement I believe there is fall I just believe there is it it goes it's it's spread out amongst multiple entities and at and including the vendor when I said it's not their fault They were doing everything that they. Could do to move as fast as possible and again there were decisions made two to push them and to push our team to be able to move quickly to get the money out the door I. I don't want to say there's not fault so let me let me say that I don't want to say that there's not fall. however there are consequences in the contract there are There's language in there concerning a data security in data breaches and responsibility it but those consequences have not been assessed yet we have been focused on getting the money out the door and continuing to build the system as we had to adjust after the the issue that popped up on Friday we we continued our focus on building the system and moving forward to be able to get the money out we did assess if there were other options at the time and there were no other options at the time to get the money out the door quicker so we moved forward with the original plan with with more focus second question the the P. U. a issue which you know as a result of the whistle blower is definitely significant. But there is an issue the first week of may were over five thousand people had to resubmit their information. So what was the cause of this and was there another problem with the website. That hasn't been really articulated here today so that the issue that you're referring to we had a soft launch on may the first and part of the soft launch included sending an email out to individuals who would sign up for P. U. information on our website so we targeted those individuals for the soft lines so we could test over the weekend for any issues because we we were we knew we were moving fast we had we had perform testing but we knew that we needed to do a soft launch in case there were other issues identified one of the issues identified during the soft launch was when an individual up loaded other supporting documentation the documentation was corrupted as it as it was uploaded so it wasn't viewable are readable by anyone so on may the fifth we have this in those five thousand individuals an email asking them to re upload their documents with there was an issue with document uploads where those documents were corrupting it impacted the first five thousand or so individuals during the soft launch testing period. Well obviously we you've the message is been made very clear it's been troubling my greatest concern obviously is the people that are sending me emails there than sending me direct messages and really it's been a situation where they're just crying out in some of them frankly we have got to the point where they just given up. And that's what's sad in and I'm sitting here today listened all this we've all gone through a very stressful time sometimes we just need to back off and do things the old fashion way. Here we are spending millions of dollars for something that hasn't workers cost problem here we are discussing it fretting over today when you know what some of that billion dollars it got sent down here that apparently this task force to decide what they want to do with all of it rather than come here like they should. That's another part of it all of that money should come through the proper process that's not Joe's problem is just an editorial comment but I'm telling you it's pretty sad when we know how to help these people but we're forcing ourselves to use this technology that continues to be a problem when really would probably just section of saddled up and spend some money to hire some new people get some face time with them and help these people walk through this because they're more frustrated and upset now than they were to begin with thank you madam chair thank you of Representative payees you're recognized for a question. Thank you and chairman this is for secretary pressed and and you may have answered this. House what was the criteria you used to decide who gets the money from the ready for business program was it again first come first served like represented mackenzie stated. After we met with the A. L. C. and ask for the appropriation we we we follow the legislatures desire that we fund we re opened the program back up and make it available to everyone so everyone that fit within their and that's how we hit that hundred forty seven million dollar mark was after two days two full days of the the site being up and being able to submit applications were able to select everyone was not done in the first come first serve has anyone receive money yet yes has anyone received any money A I shoulda has anyone receive funds that were more than they were allocated for. There were more than they were allocated for not not to my knowledge no Sir okay alright thank you. eight a Representative Douglas you are still on the list leave for you are you here. All right. All right to hurt Nicks the senator Chesterfield you're recognized for a question. Thank you Mr thank you madam chair a number of times we talked about the employer and his in his or her inability to get people back to work since we're living in different times Are we talking the employer about the morbidities a call morbidities that exist in some people that would preclude them wanting to come back for instance if I've had breast cancer. And I've had surgery and I'm in a public place I'm at greater risk if I'm asthmatic I'm a greater risk if I'm old and fat like I am I am a greater risk so are we talking about those things with the employer so that they understand that we are living in different times of the making the appropriate adjustments. To keep their workers safe. Senator Chesterfield employers are receiving those notifications as to the provisions in the cares act as our week so yes those individuals that I've spoken to directly the employers they do express their understanding and those individuals that are in those categories and have worked in some cases work with those individuals to provide accommodations for them at their place of employment if that something that the employee is willing today okay of the other. Matter of concern for me is the system itself. We've set that our system is not modern did we use some of the money. To modernize the totality of the system or do we just used protek so we are out there and we have a system that is antiquated. This is the opportunity to replace that system have we done that. No ma'am we we have not replace the regular you system the existing system we have created a standalone new P. U. a system it interfaces with the existing system to perform a couple of checks however the the P. U. a funding would only allow us to build a system that could be used for P. U. S. are we planning to remove to change the system we yes ma'am ring and other folks in gas came to us and ask for additional staff. Before we gave it to you readily because the people need it all we going to remove remove that system that is no longer modern. During the course of all of this why we not just cleaning house with things that are just standing in the way of progress in this state senator Chesterfield when I mentioned earlier about bringing to you bringing to the the attention of the legislature and the need to have an I. T. lead it division of work for services that's when that's when our work began so we initiated that process as to what we needed to do to replace our old system are we replacing it now or when we start replacing it. As soon as as soon as we are able to deliver the funds and. Make sure that we have we have done everything possible so that individuals are receiving their payments on a on a weekly basis so then we will focus back on how to we modernize and was standardized and modernize our old system because we are at still under the same restraints that we were under back in the fall where we need to get this old system off the main frame so if we were to remove the main frame while steel upgrading the system enough to to provide the services that we need that would be a caution. She. I'm sorry senator Chesterfield let me state under way then. By getting rid of eight which is all. Moving to be. I date counter intuitive can you not do both at the same time. Yes one preclude the other one from going forward quickly we are we are doing both at the same time we do not want to invest a lot of money in the old system because what we would like to do is replace it with the new system and add to you I Kate but regular you I capability to the new system which I can get all the checks out is that what you're saying the priority right now is disbursing the payments yes ma'am and then in the in the in in the background of that we're working on how to we as mentioned was mentioned earlier how do we make our old system more accessible with mobile devices how do we make sure that we're looking at the the other components where we can go ahead and start processing those and get those in place but we are limited on on our resources when it comes to human resources and so the where all of us across the United States or are pulling in as many I. T. parties and and groups of individuals providers that's what other states are doing as well and we are pulling together all of the resources that we can however we are focused first on making sure that we can eat it disbursed we can disperse the funds to those individuals and have that system where were caught up and we can get the the weekly claims processed and get the payments to those individuals that need them that's our first priority what a great to do you need what new systems are available for us to to replace the whole system that precludes us from being as efficient as we need to be in today's world. Yes ma'am there are several a vendor vendors that do this work that are engaged in other states that would be a potential vendors are opportunities. However with the competing against each other and as for states a concerned to get these to these. I am the research that's been conducted there's anywhere from you know up to half a dozen vendors that are that have foot prints in multiple states that could could that have experience in this area of a but additionally you know the Pro tech engagement that we have now all there has been a A team that has been assembled in a team that has been built in a reporter between that the vendor team and the DWS business side that knows the you a law and and the law in the U. R. program. that we could potentially leverage two and and on the momentum that we have with that we could potentially leverage that to move forward with modernizing our old you system I know that would be a a touchy sensitive topic today however it would keep us from having to re create the will and it would allow us to move quicker in the future toward that modernization of our existing you system at a a less rapid pace that we are having to implement P. U. way. More more control. Senator Teague you're recognized for a question. Thank you Mr chairman of Mister president we we've beat this horse about the death but I want to go back for just a second to. What happened when we turn the. Grant program on the five o'clock. And I want to try to understand how these people got their. Grants the and by five oh for now to my opinion nobody could do that work that quick so somebody was tipped off earlier before that I heard you talk around it but I don't recall you ever answering it directly how did that happen. Thank you senator for the question and you can see the the business of that are on there it's time stamped if you want to call and ask them if they were there tipped I want you to answer question I'm saying I can't answer because I haven't talked any those businesses so I don't know how they did it or where they get their information if I were to to gas I to come up here and say I'm I'm guessing on this but they probably tuned into the governor's press conference they went to our website and saw the information that they needed they probably applied for some type of SBA loan or grant before so they had a lot of this information that we are asking for excessively available and they went on and we're able to do that and you know under ten minutes if you look at the time stamp of of those that came in under ten minutes there's a whole bunch of them and most of our small businesses you know one or two you know employee operations so I can't sit here and and tell you how exactly they they did it but I know that our team who who worked on it internally they were able to go in and you know do a mock one in in about a minute's time obviously they were you know just going on you know of a make a made up one just to see how fast they could be done so for our team for them to see you know for five you know under ten minutes was not really shocking to anybody I appreciate thank you Mr chairman. Representative Vaught you're recognized for a question. Thank you Mr chair Mister chair I have a question that I'm gonna ask for Representative Gonzalez also so this is represent Representative Gonzales brought this to my attention is a constituent who top Deanna their name to the unemployment and it brought up every name let's use the name Christy all the Chrissy's in the system so do we have yet another problem with the system that you all are not aware of or that you are aware of and we're not aware of the no M. not to my knowledge we have a a tester security farming gauge or an audit firm engaged to perform security testing and that that's one of the things that they search for they do that on a daily basis. Now and if there is an issue that you're referring to that's recent I'm not aware of that okay so maybe you can get with Representative Gonzales and you all can discuss that because there is an issue okay so then I have my own question Mr chair sorry And it's it's a to a. So you and I have a doctor children's have talked many times and appreciate every time you've answered my call I had a constituent that came to you that sent me a text message about taxes being taken out house you'd ask for that talk about to be taken out because she didn't want to come back and bite or in the tail later in the year has that asks has that been fixed and then my next question to go with that is do we have checks and balances were someone can't be on unemployment and working at their job at the same time so they're getting checks from by systems thank you Mr chair. Representative Vaught on the first question. regarding the the individual that. I remember I remember our conversation about that and I did send that to our team so I'm not sure if they reached out to that your constituent or not when I asked about it was that if they had not Asked for that to be complete to be pulled out the first run that they could go in there and change that and that's where you tech would would have to system with that so I will follow up on that because what I do is when you all reach out to me it's not in an email that I put it in an email and send it out to our tax so that they can contact that individual and and I don't always follow up with you then with the response of. Mainly because of the the volume and then the second question about whether an individual can work and draw unemployment at the same time. It all depends on the individual's income the amount of the number of hours that they work when they are working and. In the unemployment of system so that's why we do weekly claims so one week they may that employer may have them working more weeks or they may have another of opportunity to to make wages that week so they report those wages and then there benefit is adjusted. Thank you. Senator hammer you're recognized for a question. Thank you Mr chair up first ball directives to Mister president I'd like to get a list of the positions that you've had to shift of the various agencies in order to cover this to give us an idea what kind of potential manpower And as far as how you went about picking which positions to pull out of agencies to stroll the manpower at this can you talk about the rationale how you pick them. Thank you senator we can we can certainly get to that that list and I'll defer to doctor children's on the folks that we brought in. Thirteen so the individuals that were brought in to work of within the initially within the call center those individuals were at the work currently working as a category one employee within state government so they were they were at work and they had they had responsibilities that that require them to be there at the office so we reached out to those individuals to see if there were there were any of those available then we looked at level are category to those individuals that were able to work from home but yet would come in and work at the call center and also in in category three those individuals that that were not able to do their function their job function at home but we're not at the office all of this was done within the guidelines set forth in the public health emergency guidelines through shared services so we looked at the employees that were of available we first went to their director and to their supervisors to see if there were functions that that could be done by someone else and would which would give them the availability to come work in the call center I just use Arkansas rehabilitation services as an example Arkansas rehabilitation services is seventy eight percent federally funded and so in order for those individuals to receive a approval to come and work at the call center we had to make sure that those individuals would not exceed ten percent of the total staff for rehab services and that those hours then would be reimbursed through the funds that we receive through the unemployment administration funds so earlier when you were talking about the availability of funds and whether we had enough we are staffing up and using those funds to provide input the additional support our costs in. Errors and then also in our office just last week I reached out to secretary pressed and decided that we needed additional assistance in our legal department all of these unemployment claims and along with the other work that we are doing a continuing to do on a regular basis operating a tremendous strain on an agency within date of yes that was at its lowest staffing levels levels in and in a over a decade and so we were looking at how do we how do we continue to do our work I reached out to secretary Preston and said that within the department of commerce we need assistance from the legal team that's available and so we were able to to get the services from to two of our individuals within other agency another agency that were are there to assist us okay. Let me so with regards to I'd just like to get the list to see where the positions were shifted and will close up the cost because there's a question that people are getting a paid overtime they've they've all been paid their overtime that issues been resolved. Yes Sir that well were we are working on that the the changes in the system and that was overtime hours are being added so again just like the unemployment benefits that will be retroactive back to I believe it's around the first week of March and then with regards to the cost to upgrade the I. T. system and and get get a mall saying on the same note sheet music the cost of that at the do you know what that estimated cost center Chesterfield was referred that well go if you put a dollar figure to what it will take to get that system up because we may want to do it but it would be nice to know what you estimates going to cost to do it how much could that be covered by federal or how much we looking at having to cover out of state funds yes Sir so the research that was conducted about the other potential vendors and what other states are or are moving forward with the range is anywhere from fifteen million dollars upwards of seventy million with the exception of California which is upwards of a hundred and fifty million and that's typically three to a six year or two to six year projects for for that first states and similar size to Arkansas the range has been around twenty five to thirty million dollars to upgrade their you system over a period of three to five years and how much that can be covered by federal funds review identified that yet could all that be covered by federal funds or any of the. We have I have not identified that piece of the information yet we were. Our plan was to just get off the main frame by July first as a phase one of which was not a full modernization system modernization because we knew we didn't have access to funds to fund a full modernization so we were going to attempt to ask for funding just to get off the main frame to send our last question the people who had their information compromised have they been up offered any kind of credit protection the house there was a Equifax or one of those had that breach and they offered free protection to those whose information been compromised is that in the discussion to make sure that those people's information is protected without it being a cost to them thank you Mr yes Sir they have been provided credit monitoring at no cost and that information was email to them late last week and they are also receiving letters in the mail this week I believe they were mailed out yesterday or they're planning to be mailed out today but for everyone we had an email address for they were email that information I believe on Monday or Tuesday of the of last week early on. So committee members on make something clear normal recognize the next person for a question we we've been very lenient from the chair and recognize and folks and we've had a lot of questions the same just a different angle so we still have a lot of people to Q. and a lot of agenda to cover so if you guys would less be precise and let's not beat a dead horse and go over ground we've already plowed so center Dismang recognize you with that. Thank you Mr chairman and this is back so you earlier I'd ask if there were any issues with the disbursements for the ready for business grant funds and I think you were saying that no and I think that represented these fall back up and ask if anyone had been paid you know above the amount that was actually requested the answer was no to that and I. From we believe that that's what what your understanding is but I have a very different understanding that some individuals were actually double paid at this point have receive contact from AD see about repaying the double payment that was made and since you're not aware of that is there anyone from ADC here that could answer that question and I'll tell you the reason why I mean I get that there's mistakes made and we're trying to fix a mistake and that sort of thing but really my question is we have a number of entities that have not yet been funded I'm not sure how many have been funded and how many have been funded. I don't understand is if certain entities and I know how many people have been double paid or entities of bendable Payton but is that is is that slowing down the process because essentially we don't have the money in the account to disperse to fully fund all of them until we get some of the money back or is that a non issue and there's plenty of money in the bank. Let me defer to Jim Hudson has been on the team to you might have more more details on that. Share with your permission. A Jim had ginger counts were ADC there was about thirty six individuals on Friday who received two payments that was actually caught by our accounting staff but since these payments are going in the A. C. H. we can't pull it back out correct so all thirty six businesses have been contacted already and requested a return payment to a city do we have any idea it now does that have any impact on anyone else that is waiting receive their funds and if not then how so I mean. We had a limited number of you know of dollars to utilize for the program and I guess what we're saying is there's plenty of money in the program to double pay thirty six individuals or entities skins there's about four hundred thousand dollars and just at the process that we're at terms of approving were no where near the cap on that had okay hold it down all has impacted at all and then maybe you'll know that when do we anticipate everyone what is that process look like for the a CH payments you know the direct deposits is that someone manually entering those or is it a computer program that loads up and you know essentially spends it back out yes Sir we we pull an extract out of sales force which is kind of our back office system for the Speaker grant program and that has a spreadsheet that we upload to aces in batch not one of the time and that that bad spreadsheet gets review by multiple individuals Mr Johnson if you would get closer I might even though it's not comfortable not up all jazz that particular team was receiving pretty clear indication us on Friday let's make sure let's get as much out the door as possible and I think that they just missed a step on that on Friday but we sense make sure that we got a process in place and that doesn't happen again in and so on that and I think this is part of Representative these question how was the priority said on who was funded first in the program would is it was it was that based on the time stamp and so you funded by time stamp or had we sort that list to see who was at the front end of you know receiving the grant money and of is going to be on the back in. So they're they're the ones that have not been funded yet are the very large businesses because there's a little bit more review has to go into them because some have multiple submissions multiple into the server submitting and so they're part of that five hundred that have not been paid and I know that that is not that's not correct. I know that some large part businesses were founded in the beginning I mean that if you don't want to get into a back and forth but no that is not that is not the reason because there are multiple small businesses that have yet to be funded. At so. How was it derived how was the the list sorted on who was going to receive the grant money first direct deposit and who is going to be at the end of the line because it is I mean at. I'd love to see the list and I don't wanna get back into this time stamp garbage and all the rest of it I'm I'm done with that sure but that that is what your statement was I don't believe to be accurate the two buckets that have not been approved for payment our tax issues and then either they have an issue with ninety eight oh four reporting exactly ninety eight okay for reporting which means that they're a relative of a constitutional officer or they are a part of board commission are they they're not on the radar screen FOR D. F. and A those the only two buckets okay so if you're a smaller business and your have not pager taxes then you would be in that book about otherwise as our team has cleared application gets pushed for payment okay it's the only thing left for those two categories. Okay alright thank you. Representative Lundstrum. Do you still have questions yes. I'm just for clarification the treasurer's office did issue some unemployment information is right on the iris and treasurer's office website that we can use those unemployment funds to reimburse our own trust fund it was updated recently so it's I have copy seven if you need it senator DISMANG and I've had that discussion and he is also look at this information is aware of it so just so you'll have it as well we can reimburse our own trust fund so we don't have to go back on businesses next year and raise those taxes on them. Thank you for that information and I will definitely. Of review that I'm sure that my finance officer my U. I. director is there are you aware of that so thank you for that information. Representative wouldn't you have a quick question. Last one by the way thank you Mr chairman of all the shifting of personnel within your. Commerce. However those people but the were they paid by the agency that they work for or were they paid for by you. And I don't recall any of that shifting in that requirement and adding those people coming before the personnel compensation committee. Okay represent wouldn't are there is there not being shifted of. As far as their their agency number or their position but we're utilizing them. In in a way that is allowable so if there are funded through state G. R. then then there's not as much Processing and and and coordination required because those are all state G. R. dollars but if it is of if it's a federally funded position it's funny with federal dollars then we are. Accounting for that in keeping up with their overtime in the U. admin fund that we've received from the feds is being will is and will be used for that. Are they being. If the reading shifted if they're being moved. Their their position is within an agency you have the insurance is securities in the bank department you've got all those agencies in your moving those employees who who is making the decision that it to all right to do that. And we can refer to someone from transformation shared services to we've obviously work for very closely on this is. Pam Amy. I don't I don't leave. Her I need you to tell me how you thank you can do that. That's that's that's a total different agency she run in the commerce department. So. Only you don't tell me the that's a good question because I'm tired of that condescending comment that's a good question what I want to know is how are you shifting those people when they're sent or work for this employed by another agency within your agency and your shifting over here and you're paying a home of with federal money or whatever how do we know what's going on over there so we are day obviously with respect to the the federal folks who are playing within department of workforce services that fits within their their you why duties at their assigned to as we've alluded to with the unemployment is assistance it's been all hands on deck and if you're within the department of commerce whether you're and economic development or you're in the you know the department of aeronautics your part of the department of commerce and we've asked those division directors with and the department of commerce if you have people on your team who have capacity at this time who can come in assessed we want to make sure that they're continuing to do the work that you've assigned them to do but can be reassigned to assist in the call center to evaluate these claims to be trained on it we've identified those individuals add Senator hammer asked to four will get you a list of who those individuals are and where they they came from but this was a all hands on deck that we were able to do this okay so. Mister chairman if you met me If if if those are new positions. In your agency when they're shifted over there is that correct no so they're they're within their existing position there they would I created a new position they were just given an additional task or responsibility isn't we're missing the whole situation here they were hired by the bank department to securities or whoever you moved amount of to do a specific job not to work in the call center not not point here is and I understand the pandemic and I understand them the health situation all that but that is not give your agency the right to make whatever decisions you won't and move those people around and shift on or around without coming before the person if if you were putting find new positions which you did in the call center then those positions had to come from somewhere and has to be approved by the personnel compensation committee and I don't remember any requests coming through that committee. Which I am a chair. Buster. Is that not correct culture Representative wouldn't wondered that is that is. There are two things here under transformation the the beauty of transformation is that we are able to to share positions and best utilize all of our resources within a department or within multiple departments under the state of emergency with the governor declaring an emergency then there are it is it is still there are allowable That is allowable under the under the public emergency I that we are under now and that was all done through the transformation insured services and with our office of of of of of personnel management so the there isn't this was all done in an effort to utilize every single resource that we have and it was done under the under allowable they allowable use for those positions. And I appreciate and understand the dilemma that you were in but I think the curtesy in the appropriate way to have done it would have been to the least in farm the personnel committee are this body here that you were shifting all those personnel around in and the agency and particularly because it was an emergency situation to me you've been covering your sale had you done that thank you Mr chairman. Thank you Representative Wooten of represent clowning I did not forget you of if you don't mind make your way up to the Mike think it's available by Senator hammer. And will allow you to be the last question I do mean the last question this time thank you. A. Senator bond's question about you know the sense of urgency with you a payments especially I want to go back to something that senator RAPERT asked a few weeks ago we talked about the a lot of the you rye employees the salaried employees. Were working sixty eighty hour weeks and were not getting any monetary compensation for that extra work I had two questions related to that first I wanted to check in on those employees and see if you mentioned that that there was something in the pot and print process something in the works for getting those folks my money and I was curious if that had actually happened and second as we talk about P. U. A. M. the folks are working to get you a website at as they are I know working weekends working holidays working so many extra hours are those salaried employees and if so what are we doing to compensate them for their time as they get it. The as I reported I believe it was week before last in this committee those individuals that were classified as. However don't want to get the term wrong that were classified as as exempt employees were then transferred to. Nonexempt is that right thank you we're transferred to the non exempt status so then now we're in the process of adding those overtime hours to the to the records for those individuals that were moved it was a done through a process in determining what percentage of their time was being spent on unemployment insurance and and then of course the overtime hours then will be paid retroactive back to the I believe it's the first pay period in March when we entered into the pandemic in and we started working those hours there are employees that are at the level of of the director and down into into the system directors that are not receiving they were not check their status was not changed and they are not receiving over time there are I have there's been discussions about what other what other Provisions are allowable for employees that are in an exempt position and so that's being discussed but is all of those employees in that those positions have well I'll say most of those employees of expressed to me that this is my job this is what I'm expected to do and even if I were given comp time I doubt that I'm going to have time to use it so you know given the opportunity to to utilize that comp time so that something that we have looked into I don't know I can't speak to the that would take someone from transformation shared services and or a PM to speak to the specifics of that. Thank you thank you Mister tech. Thank you and thank you guys for endor and now a few hours down there at that table. And you guys are excuse thank you. committee I have with this today Adam D. on the agenda the I'll call beverage control division director is there any questions from the committee are is any member that would want to hear from that director I know that that bloody in from last week's meeting so if you would I'll. I'll take your request button and then we'll bring her forward. So if we could for you get miss Chandler. And senator Ballenger you'll have first question. And we're just gonna go ahead and go straight into questions and. If you have a statement I would that question will let you added in that time. Senator you're recognized if you would introduce yourself for the record Mister Chandler in your guest. Dawaly channeler director of the alcoholic beverage control. By. I might more regulatory ministry Thank you Mr chair in. Well I guess I'd like to here's what we basically all or heard the the promoter side of the story and I I'd like to hear an explanation obviously some concern that I had with Mister Preston on you all not showing up last week that's a that that the frustration I don't know if we need to re hash all that that I feel like that's part of the job part of our job is the legislative bodies oversight of your job is to is to show up and kind of give an explanation but I I I don't miss missile want to go over that but I would like to hear your side of the story on that issue. Senator Ballenger as far as the decision making to you to issue the ex parte emergency order to suspend temple lives permit that was based upon or rules and regulations and state law that requires us to uphold to maintain the health safety and standards percent to rule one point seven nine seven and thirty two so the API allows us the opportunity to each issue that emergency suspension in order to protect the health and safety that was set out in the directives of the a. Department of health is a that's why the the ex parte order was issued to suspend their permit. And I don't want to dominate this bill what is the difference in the of the health concerns in three days you know from from the fifteenth to the eighteenth explain to me what what what was going to change in the virus or in the community that would make a difference there and center Ballenger as directed A. B. C. is not within my authority to question the the statutes and the rules are directives there so about out by the health department just as we are required to enforce that I in entities can't sell to anyone under the age of twenty one I don't have the authority to question whether it should be twenty and three hundred sixty days versus three the actual age of twenty one are we are a sign with the duty to enforce the directives and regulations for the executive order as well as the state laws. You for the question center. I I have one more question the and like I said I hope someone else would take it maybe they will but. What changed from last week when you can show up at the committee meeting to this week where you can you told us last week you can show up because there is an administrative. Because I judicial process wise of the use open answer questions this week. Senate Ballenger as the governor indicated and the statement that he made I was under instructions not to appear last week because we wanted to avoid an adversarial position that may occur there's still the hearing date that is scheduled for June third if temple live with the like to show up and want to voice their their objections to the process that took place before the director's level hearing that is still in place and so pursuant to the instructions that I received last week I did not appear before the US state agency committee I'm did appear here today with and without the adversarial potential being there with temple lobbying present. Senator hammer you're recognized. The. I was trying to may I don't have a copy letter but the letter indicated that the reason you didn't show up was because of on going litigation that's my for not to work to use letter when we asked the promoters they were unaware of any I'm going litigation or anything at that time that we had the meeting could you clarify again what I'm going litigation that you referenced in the letter that if my memory serves me correct the promoters didn't have any idea that was going on. Senator hammer the letter referenced. Potential for ongoing litigation as well as the administrative rights to appear and and have a hearing in front of the ABC so it was not just a judiciary action of ongoing litigation as they had not filed and have not filed to date that we're aware of any judicial litigation but the administrative procedure ACT still has in place the right for them to appear before a BC to discuss the hand manner in which the license was suspended. All right then the other question is if you would just kind of clear up the rumor mill out there did you send those agents under your direct orders to shut the promoter down or were you instructed to send those agents down to shut the promoter Dale. We were not instructed to send that I just of to shut the promoter down we were instructed to follow the rules and the laws are in place for the alcoholic beverage control and based upon the failure to comply the cease and desist order we were instructed to issue the. The submergence the suspension of the permit and so we were there to pick up the alcoholic beverage permit we were not there to close their doors and shut them down. A were you going to pick it up just for that one particular event or were you picking it up for all the other events that were scheduled that the owner of the facility had to hit the pause button on because the the one event is the one this getting all the attention but there were other events that were scheduled that may been impacted by you picking up that permit to Joe give a consideration to those other events that were scheduled. The only event that we're aware of being scheduled prior to the my eighteen date was the temple lives concert that was a good scheduled to occur on the fifteenth so the emergency order was issued pick up the alcoholic beverage permit for the may fifteenth a vent I'm unaware of any other events that were scheduled before the June third hearing date or we could discuss the suspension of the permit and last question is and you were it was your intent to get the license back to them if they move the event to the eighteenth is that correct. That is correct the emergency of reason for picking up the permit would have been eliminated if the event did not occur before the may eighteenth date thank you thank you Mr. Senator boundary of the last one in the queue so you're recognized thank you. So what what will data did they violate. So we picked up the permit based upon their statements that they were going to continue to through social media and continuing the cells of the tickets that they were going to continue and despite the cease and desist orders so it would be in a violation of rule one point seven on seven and were one point seven nine thirty two so you picked up their license because they was going to may be. Bilateral we picked up a license because they said they were going to continue forward with that concert and once they held that concert the exposure would have have already had heard which is the point behind the emergency aspect of the rule is to allow us to prevent the intimate dangers that could occur. Well they they testified that they were still in their mind work with the health department trying to get this worked out and they at that point didn't have a concert nothing in the had occurred and so because of your concerned that there could have been a crime committed I or violation of rule at a minimum is a reason why you went and pull their license Sir is based upon the fact that I confirmed on with communications on the morning at of the day that we picked up the permit that they were head continue to say they were going to go forward to members of the health department with that concert on the fifteenth and so based upon the representations of that as well as the review of the ticket sale website with notice no qualifications disclosures that the concert may not go for it on the fifteenth along with their their of social media pages that we were falling it was based upon that those facts that we went ahead and proceeded to pick up that permit on the morning of the fourteenth have you ever pulled anyone else's license because you're afraid there will violate a rule. We have pulled someone's license because the of the fact that we were concerned that they're going to ten you with behavior that would result in an. Like continue with vial of with violations rule but have you ever pulled the license because of the fact that you thought they were going to violate a rule now center we've never been in this situation before. Senator Clark is that you. It is thank you Mr chair. So. Of. If five. Announcer I'm planning on driving faster than the law allows on the way home. And state police will come get a license. The center. We'll get more serious on us so I'm going to possibly drinking Dr they will come to get a license. Now senator. Did you make this decision. Don't make the decision to issue the ex parte order. We'll start there yeah. The decision was made with communications of the health department and with the governor's office regarding what steps could be taken and so I was instructed to issue the ex parte order pursuant to the rules and the state laws that are at my ability. Right so back to my question did you make that decision. I ultimately signed it under the instructions. Okay I will take your non answer as an answer. The. We had a conversation the day this happened. We did. You express that you had to receive communication from the health department. I express that I had review the health part cease and desist order. They didn't expressed but you had receive communication from health department. No I said I had confirmed that they health that the health department was is was advised that they would not comply with the cease and desist order. Do you remember my communication. That. The information that you had given me I told you that I believe that you believe was true. But that we would probably find out it wasn't do you remember that statement I remember you make an assignment yes Sir so let me tell you what that statement was in response to since you don't seem to remember that statement was in response to you saying that the health department said that they had refused to cooperate. And that they didn't have that they had did not have safety plans in place and that's why there was a cease and desist order and that's what we were moving their license and I said I thought that you believe that was true. But that we would probably find out that it wasn't true I didn't know for sure. Do you remember that now I remember seven conversation yes. Thank you. No more questions merger. I think Senator. Chandler one thing I've picked upon sitting here is Senator Ballenger's questions into center Clark's. Last week I was here to state agencies meeting mainly because I knew it would bleed into today they testify they were in all these conversations with the health department you just said that you talked to the health department for you issued that order that health department not relate that they were in conversations with them and what those conversations where and if they were moving along or not moving. I indicated that I had inquired as to whether or not the health department was in communications I never spoke directly with the health department my communications were through the governor's office liaisons to the health department my understanding is that the health department and communications they're from was and by since the cyst order was that communications were not continue Ford that they read taking a stance they were going to proceed on may fifteenth. Okay Senator Hickey you're recognized. Thank you Mr chair of two questions all I've got they should be yes or no I doubt they will be so what you said here today. What could you have not A said at the state agency's meeting what what of our today that that you could not told us at that meeting. I don't believe there's anything that I said today I recognize that the state agency meeting I'm believe the same thing and just for future reference so that at least I'll know and I know some others want to is it yours or yours in your bosses intentions that there's a conflict with a citizen of this state. And they're going to be at at a legislative meeting are you not going to be there. I think it would come down to the circumstances center so there is a chance where you're saying that you might not be at a legislative meeting based upon. What you perceive may have may happen at that meeting I think that if I am ordered not to appear then I think that that will be the position that I have to take and I'm well aware that that's when I was eight years ago bosses so what you're saying if the governor says for you not to come to a legislative meeting then you're not going to be there. Of course I'll answer it for you thank you ma'am. Representative Dotson you're recognized for a question thank you Mr chair over here So I just want to be absolutely clear that I heard what I heard set the time of the suspension of temple lives Lysons by ABC there'd been no actual violation that it taking place at that point only the intent to actually by late in the future was was perceived is that correct that's correct the emergency suspension allows if there's an imminent danger and based upon the health directives as it was classified as an imminent danger to this potential spread of co the nineteen and you may or may not have been aware of the testimony by the health department Thursday afternoon and state agencies committee but the health department basically said and in summation that as far as the health risks and That were were there the only thing that was different between the approval that they had was the date of the concert there was no actual health risk they were taking all the proper proper the copper. Upper precautions and were. Clear to their their plan was signed off on basically so what what was the imminent danger other than that the date of the concerts for senator I'm not given the liberty to select between the three days or not three days being and at danger to spread cover nineteen I'm given the duty to enforce the the laws and the rules and there it was the termination that the three days made a difference when the health directives put down their dates just like the the age of twenty one is that as a standard that is set and so I was complying with my obligations to uphold the those roles and their license has been returned to them yes Sir when was that returned it was returned by one o'clock on the fourteenth. Thank you. Senator Rapert question. Thank you Mr chairman I have a couple if if you allow me you you you have laid by. First of all I want to thank you for coming and and I do I said I guess I should disclose that that I've had quite a bit experience working with you miss Chandler as you as many these folks don't know and I appreciate your service to the state not only in this department but in other departments and I know you to be a person of integrity I know you to be a person of honesty and a very hard worker and I find myself and and begin to ask a couple questions really wanting to it's not my place but I want to apologize to you for being put in a very difficult position by people that I think ask you to take certain actions they frankly should be the one sitting in the seat and not you and and a lot of that I just have some simple questions because I think that we all know that you work in the executive department you have people that you answer to and I would not expect any person to be brought in here and be made to basically. Testify in such a way which is which is going to potentially lose their job as long as there's nothing illegal involved obviously what I think is that we have unforeseen situation we hear very stressed times and I think that people begin to maybe get a little power what would you say a power trip and when they saw that may be what they wanted to happen in Fort Smith was not about to happen that they decided to look out across the space of the agencies and folks that might have authority and decide we wanted to take a closer look all I want to ask you at this point is to say were you instructed. Out of the clear blue to suddenly take a look at temple live and see if there was any action you could take based upon the statutes and authority within your department yes Sir. That's what I thought there may be another time for that to come forth if if this continues down the road we'll see what happens at the hearing but I feel it's important to at least put that on the table I happen to know that you and others in the executive would have been here quickly and was willing to come the day that that first meeting was called but you were instructed again I think you've answered this already but you were instructed not to come that day correct correct. Thank you that's almost chairman. I think this is Representative Gonzalez is that right yes thank you Mr you're recognized so I've heard you say several times that you pull the permit to stop the spread of covert nineteen is that correct I pull the permit because one of the rules that oversees ABC permittee's is that they must comply with health safety and sanitary standards by the our state health department and board of health so do you believe that they have held this concert without the permit that they would have still spread cover nineteen or would that have stop the spread of go to nineteen. I don't believe it's for my determination to make. Senator Stubblefield you're recognized for a question thank you Mr chairman of story I've certainly agree with senator RAPERT statement about the position and you realize are you familiar with the US constitution and the fact that it only allows the federal government to operate in seventeen specific areas. One of those areas does not. Include what your action A did the other day. Do you think what you did was constitutional do you think your actions constitution. I don't think that determine constitutionality of a state statute is is for me to make I took my action pursuant to the I. P. A.'s rules that allow me to issue. An ex parte emergency order to suspend the license with a due process hearing to be held at a later time. So you so you believe that what you're action was constitutional I believe that twenty five fifteen to eleven has not been deemed unconstitutional. So that it is not constitutional. I believe that there's been no action to make this is just a yes or no answer do you believe what you're action was constitutional or unconstitutional based on the US constitution I do not believe my action was unconstitutional thank you ma'am. Senator Johnson you're recognized for a question. I don't know where this temple is or anything else But if you would of waited until the fifteenth the. At the time they open the doors and pull that permit how long by your rules. Would that permit have been in suspension. Seven I had issued a ex parte order and pulled it at the time of the event we would have set a hearing date on the June third date as well we elected to pull the permit before the June fifteenth when they open the doors to avoid any adversarial position that might have put the enforcement agency and based upon the fact that you would have had the people in attendance already. So. You would have been forced to still be holding that permit right now if you had waited or at. Correct. Did this event occur. It did occur on the eighteenth. Have you had any complaints from the promoter. I have not received any. When we talk about this. I don't I don't get it you know I mean I'm I'm in a different part of the state. But they still have their permit yes Sir. If you if if you invited. You had a lot of pissed off people. And I mean I I did some of the some of the problems that people have with the way this was done. But if it would have been done differently you would still be held at permit because that's what your work we that's what you would be required to do correct yes Sir alright thank you appreciate it. Thanks center Senator Ballinger on let you of ask a question and then guys we're going break for lunch to one and we'll be back at one o'clock to take up the approval items of the agenda Senator Ballinger you're recognized. Thank you Mr chair I thought all my questions were answered but it if you if you had not what went out and pull the permit when you did and they continue to work with the with the health department and then on the Thursday before the event or save Friday before the event they weren't able to work it out and so they cancel the event what if you pull the permit. If they cancel the event not had on the fifteenth right now we would not pull the permit if if that if that would happen whether they violated any rules within the state of if they if they work with the health department all the way up until the day and didn't hold the event because they weren't able to work it out with they have violated any rules at that point now as long as they didn't hold event okay so in this case they actually hadn't violated any rules I mean it it as it as it happened they never have the events of an violate any rules correct correct but they still have the license pulled. They had license pulled by some the imminent danger that was set out thank. Thank you senator. Miss Chandler thank you guys for coming today thank you for answering questions and guys if you would will withstand all recess to one o'clock. Members of your god we see we're going to start as one o'clock. sure the rest of a trickle in as we get going. We'll move on the item ET on the agenda. We'll go to eighty one of the department of parks and tourism. Is Mr veil present. Thank. Miss belly you're recognized come table and introduce yourself for the record in. Miss in the. If you guys would introduce yourself and you're recognized to explain your on. I'm David bell I'm with parks parishioner ism. The item that the CFO parks heritage and tourism. Which one. Okay. So we would you want to talk about the appropriation with yes ma'am I think Jake leads coming to explain. If you were going your dishes of record Jake in your A. Recognized explain appropriation Bakley D. F. A. office of budget the first item is the request for various temporary appropriation any amount of just over one million dollars one of the things that's happened since the advent of the code nineteen crisis is the closure or the partial closure of our state parks system. It had a direct impact on the cash the season revenues which the state parks department collects. And as a result the department is working hard to shift the payroll costs of those employees because our parks are not completely close we still need these folks but the ship those payroll costs off of those cash funds on two of conservation tax the special revenues in order to do that that we need the additional appropriation placed on that conservation tax to pay those employees. Any questions from the committee on E. one. Can we started a one. I think that using a I'll I'll take it this time. Is this just the appropriation this is yes Sir ee one is not the grant appropriation this is that uh for the help right the very is temporary appropriation yes. Noted okay. So where's the money going to come come from what's the intention there it's coming for the conservation tax which is a special revenue your mark specifically for the sport state parks okay thank you and I'm sorry work walked in thirty seconds late. Are you. The represented so then you're recognized and FOR. Okay thank you all right I have a motion on the floor Dr second. The second all those in favor say aye. All opposed us have it of. Mr bleeder you go on duty to a. I certainly can go for so the next three or actually for items or requests for appropriation from the cares act appropriation which was the appropriation section which we added during the fiscal session specifically to oversee the appropriation process for funds that are recommended for release from the coronavirus relief fund at which was given us as part of the cares ACT. This appropriation the first one is for department of finance and administration it is to support some of the work that you and this is doing in responding to the corona virus one of the issues we have with providing funding for you and as they were before you all last week as well is that there bank account in effect is not in treasury so that when we transfer funds from the one of the core billion that we received an offense to you and ask for qualified expenses we actually need appropriation to take that money out of treasury and then send it over to you and us. Want to take you in as than they need appropriation with their appropriation act to spend it for that purpose this request here today is the first one that key to a is to support that release of funding for you and asked to purchase some of the items and equipment that are detailed in the letter that you have your package I think I have a question on that item represent of all thank you Mr chair can you tell me how much this would be a. I believe it was the letter should be at three point three seven million can I ask a follow up. hold on one second on the spread the two that you sent over I believe it shows five point seven million. That might be a type of legal letter should be three point. The last three letter is correctness spreadsheets office okay. Mister chairman has your recognition thank you Sir can you tell me how much of the care is that money that you I am **** already received. Hi I do not have that in front of me but we can absolutely get that that's part of a spread sheet which to maintain and we sent over I think we sent the last one over on Friday and we'll do it again this Friday thank you. Okay richly if you are going to be the fun okay the department of health has the sought the significant funding transfer request from the steering committee last week it ended up being a fifty eight million dollar requesting total that request will find a number of different items and there's some pretty good information on these requests on the governor's steering committee website and all the supporting documentation is on there this request will cover funding in two fiscal years both the current fiscal year for twenty and going in FY twenty one so the request is before you today is just the FY twenty portion and that is a twenty three million dollar request this will help purchased a number of different items including laboratory testing supplies PP. Contract tracing and some I. T. equipment and other items. And then the next two items are for transformation shared services up for twenty four twenty one I apologize in the rush to put this together we ended up putting a request for FY twenty one appropriation on the agenda that's normally something that you all will look at in the LC meeting coming up here in the month the chair was kind enough to let us move forward with it this is a three and a half million dollar request that would allow us to purchase PP hand sanitizer other kinds of masks that sort of thing so that we have a stockpile available for state agencies this would be distributed by TSS so that people who are using state offices state employees who are working in those offices have available of protective equipment. Senator Hickey you're recognized for a question thank you Mr chair of Mister Billy just a question on back on the twenty three million course from the cares funds that and I understand that we are by passing some of our procurement that's a lot of money though help how're you will making sure that everything's on the up and up just be blunt that no correction ever gets involved in those type of phones are we putting stuff out for bid at this corner. A proceeding and my expectation is that were falling all the procurement law there might be some emergency procurement that we're doing there and obviously the governor's issue some executives orders on that but I know that from an audit standpoint the inspector general who A she actually chairs the steering committee has been tasked with specifically overseeing all the funds are coming out of this and we also know that were very likely to undergo a higher level scrutiny from the feds and how this money is used in making sure that it meets all the required at the commitments that the state might have what what was one item again that you mentioned that the twenty that would we used by out of the twenty three million so we might have PP for example they're also a significant amount of laboratory testing and supplies let's just let's just use that one if you don't mind so are I assume those are made by different companies are we getting bids from two or three companies at this point or we use in one company or do we know well I do not but I think there's a member or someone for the department of health who might be in attendance who could answer that question that okay I would like to hear just I wanna see how we're proceeding with that to make sure that. We're not getting ahead of our cellphones on this the. So if I can center I'm gonna repeat your question in your question it relates to the twenty three million dollars an appropriation they were seeking for the care is ACT to get started on some of the different items the laboratory testing supplies that sort of thing and the question was are we how are we procuring that. If you would please introduce yourself for the record and and you're welcome to answer the question yes Sir Stephanie Williams I'm chief of staff at the department of health. And I'm a I'm over here I'm the one that by senator he had S. that yes yes Sir so we are following and state procurement guidelines the expenditures that we're making are actually being handled their office of state procurement and they're working closely on any specific questions related to special procurements we might need to make quickly for laboratory supplies that's been the thing that we've had to act most quickly on because of the just the supply and demand in the competitiveness of the market place we do have a A request for qualifications that we will be putting out competitively for the contact tracing but that's the only that's only large competitive award that we intend to make okay all right well I'm glad to hear that because I know that. At one point right there that that there was a probably need to move very quick and at this point again I just wanna make sure that we you know cognizant of the fact that we need to be. Getting the best prices but also making sure that the things are getting steered the one where the other which it sounds like that you are so that did answer my question thank you ma'am. Thank you senator. Any further questions for the committee. Thank you of can I get a motion from the committee to batch A. B. C. the. On item to so moved I have a second I have a second represent Wooten all those in favor say aye. All opposed ayes have it we'll move along to item elf which is the federal grant preparation for department of health. Miss Williams you on our Jake are you doing this one. A I can get started this is a ten million dollar miscellaneous that'll grant appropriation which is made available to the department of health through the cares act as you probably where the cares tech provided a number of different streams of revenue to the state not just the funds are made there under the the recommendation the steering committee. What we worked out as a process where we can request appropriation to miscellaneous federal grant if those funds are not going to the steering committee this is still the cares act it is ten million dollars which I believe will help increase our testing capacity here in the state it is being presented to you today so that we can get started on that and with I'll let Stephanie handle any other questions. In committee out I'll let you guys know the system Senator Bledsoe not myself we asked. Do you have an aide to send over all request that they could see happening between now and counseling June we did not want to have any emergency request to be signed by the co chairs of the subcommittee or the chair's of counsel so a lot of these request you're getting our which stuff we would have got throughout this month and we wanted a whole committee to have the chance to hear it and speak on it so with that of ms Williams I'll let you add anything you want to add to that one well I I thank them Mr believe described it correctly this one is for a lap capacity primarily. Representative love you're recognized for a question. Thank you Mr chair and so miss Williams is and I guess what I'm going to do is ask in regards to some of the testing that you all may doing in. In is specifically targeted to the minority community beyond that especially African Americans are down disproportionately to cover it so. I want to hear a kind of a comprehensive game plan that you all have the case I'll be here in a little hodgepodge and we're doing a little bit of this a little bit of that and then we still have people. Either getting E. il they're not done in the hospital because the hospital just in the back home with that done in the community so I want to hear about what department of health any if we have anybody from you and miss what they're gonna specifically dean. In regards to this testing and and what were I mean we just gave twenty three million now we're given another ten million so I want to hear some comprehensive things all what we're gonna do yes Sir so first of all I would say we are standing up three different platforms within laboratory we have actually all three or are up and functioning as of Monday we brought the third one online so that's greatly increase the testing capacity in our public health laboratory we can do upwards of a thousand specimens a day now they that laboratory so we're very pleased to expand that capacity on the other thing we're doing is expanding access to testing through our local health units Monday before last we began testing in all seventy nine of our regular local health unit sites and the first week we did two hundred and forty test in the local health units last week we did over four hundred test in the local health units so we hope that number increases as more people become aware that we're offering testing and our local health units in the local health units you're not required to be a contact to a case or to be symptomatic we are making testing available to anyone who feels like they were potentially exposed the community spread they can present and be tested additionally we are working with our office of health equity and local community groups across the state to set up special testing events two weeks ago we participate in a special event in St Francis county we had a number of cases there we worked with mere Cedric Williams and his team they actually have a community Kopet planning group and that we were able to work with them and do a lot of social media so on that Saturday morning we tested five hundred and fifty individuals so last weekend we were in Springdale we had a little bit of the a I don't know miss miss communication we actually worked with the the Arkansas coalition that supports the Marshallese community and we're doing a special event for them. Somehow it got out in the media that it was a just a a regular testing advance so we tested as many people as we could but unfortunately we couldn't meet the demand but we have a series of testing events planned over the next week we actually have a press release going out this afternoon that lists those events and I wish I could remember I'm off the top of my head but I but I can't but they're at least four five special clinics around the state for special populations the Latino population in particular we've had an increasing cases among Spanish speakers so we've done special media and or do an out reach to that community as well okay now the following Mr chair you're recognized in regards to the the content tracing his I know. When I got testing you and miss follow up with me for a couple weeks are we doing the same thing with the Arkansas department of health if people get tested dummy does that may test positive I mean yes if you test positive will follow you if you are a close contact to someone who test positive we will in role you in what we call the Serra alert and it's a it's a text alert system that you can in rolling in and it basically helps you monitor your symptoms every day and and answer a series of tax questions that the alerts us if you start to have symptoms so we can immediately call and you know follow up with you so we are doing that in Rowan folks in that system and and following okay. I have to follow with you on that because that's some good information our thank you thank you Mr chair and if I can I think we could make the press release is going out this afternoon available to the chairs of that would be helpful made to staff and they'll get it to all the committee members senator Chesterfield you're recognized for a question thank you Mr chair which you remind me of your name please Stephanie Williams Mr miss Williams and I appreciate the Department scheduling one June six in the rights bill area and rights will city hall between the times of nine and two PM what I am concerned about is the The outreach to the minority community through radio stations that appeal specifically to that have you hired someone to do that yes ma'am it would have goodness Thank you. The. Is it the first time the design. And with the date sorry can resign group what are they supposed to be doing they are developing as a media campaign that includes radio and it has some I think it has some social media in it and it also has some ditched placements I believe thank you I think that's important for folks to know and will that be going up soon yes ma'am they had proposals I had already developed concept work that we were able to review so it should be I'm pretty fit pretty and will they be able to work with us in right to build in getting that information that yes ma'am and our health communications office also be working to promote that in thank you so much. Representative Vaught you're recognized thank you Mr chair as you know severe county is becoming a little hotter in a little hotter every day we have a large group of martial lease that truly do not understand the the consequences of not following the guidelines or the rules that before them is there something being done to help with the Marshallese which is not just in my area I understand there in other places and they don't understand the consequences of them going to Walmart even after they've tested positive with no mask no gloves no nothing and and it's actually impacting a more people have we got something imply other than just talking to them is there a way that we can communicate to them in a different manner in which they might understand so we do have outreach workers that are Marshallese so they're familiar with the culture there obviously speak the language that we are utilizing their expertise we also try to actively worked with community leaders within that population Dr Sheldon recline it has been an adviser to us he's the only Marshallese physician in the state and also look to the expertise of our office of health equity and also to the minority health commission under they've also been trying to do at region messaging to that population Mister chair so I have a group in my area that speaks to different dialects so are we trying to hit both dialects are they do we understand that there's two different dialects in my area so I'm I'm not familiar with the language that's actually new information to me but we do work routinely with Melissa Leyland who is a certified Marshallese translator and she helps us with development the materials and all of those or run through her to make sure their appropriate just so you know I know for sure that we had to Pat. That had tested positive. In a local grocery store walking around with nothing on and I think it's just because they do not understand so any help that you can give would be greatly appreciated. Seeing no further questions we'll move on to item to parks and tourism. Part of F.. Jake you do not want to. the. Department of parks and here to tourism arts council yes Sir this is also funding that is made available to the carriage act this is national endowment for the arts funding it's four hundred and forty one thousand dollars to the arts council to support the arts during the corona virus a crisis and I think there's somebody here from parks who might be able to answer any specific questions on a. In committee just for your knowledge this is the one of the director sent you a couple emails on last week I believe it was. Any questions for department of parks. Seeing none I have a motion to batch these two. Our motion second all those in favor say aye aye aye all opposed eyes have it we'll move on to G.. One. Jake are you doing not one yes Sir so we have three performance fund or pay plan holding account transfer request these are pretty typical at the end of the fiscal year of there's a couple things going on here the main thing is that when we start but in process and we present budgets to budget committee in October those budgets don't take into consideration decisions that are made after that point so is for example decision is made to increase performance funding or we grant long term employees could a career bonus payments those additional transfers are not reflected in the budget request so we have to come back here at the end of the fiscal year when we're running out of appropriation to seek that additional spending authority. Any questions on item one. Seeing none you and move on to item to yes Sir and it's the same story with the inspector general I will say that on the state board of collection agencies that's an extra help position request but inspector general is the same situation where we need the additional appropriation. St questions item three this is the same thing although it is also a little bit the same with the very temporary appropriation where we need the additional spending authority as a result of some of the impact on our state parks I got a motion to review all three items. Our motion second all those in favor say aye. All opposed as have it we'll move on to a. And I think we're done Jake and I will get doctor Welsh. What you go ahead and join us down her table. No yeah. Miss Maria you want to go ahead and join Dr Welsh just in case questions. If you guys would introduce yourself for the committee and you're recognized to proceed doctor will. Thank you Mr chairman Chuck Welch president the Arkansas state university system. Maria Markham director of Arkansas division of higher education. Mr chairman thank you all make a couple of opening comments and certainly answer any questions let me say that I'm very sorry I'm back here again today talking to you about Henderson state obviously it's been an extremely challenging year and you have all been so incredibly helpful but as we have said from the beginning this is not going to be a one year fix unfortunately this is going to take several years to get things turned around just as a reminder when we stepped in in August of last year to assist Henderson with their budget challenges what we found was a four point nine million dollar deficit in last year's budget alone we found significant increases in student accounts receivable and the practices that were far outside the normal what you find most higher education institutions we found a number of invoices that have been held and not paid we found a budget that was filled with a Roni is information that were inflated revenues and under reported expenditures. We found a self insured health insurance plan that was losing a significant amount of money on an annual basis and had almost no reserve fund four self insured insurance plan we found a failing financial aid system that had about a thousand students in the first week of August still awaiting their financial aid verification while our campus in Jonesborough had fourteen students that were waiting there verification obviously far more students in that pipeline and we found an institution that since the end of FY fifteen had spent their days cash on hand for about a hundred twenty days to approximately six days so clearly we found a situation that across the board there were significant problems since that time we cut three and a half million dollars immediately from the operating budget this year we've actually saved more than that through some other steps that were there but we made those initial cut we have implemented implemented a new accounts receivable policy that does not allow students to incurred debt before being able to register for another semester they have to have that paid off we also developed a step down payment system for those students who had been allowed to incur those higher debt so that we could try to get that re paid and keep them and rolled we would to a zero based budgeting process so that we would know exactly what should be in the budget but shouldn't be in the budget what was correct what wasn't correct so that we would know that any budgets we put forth from that point forward would make total sense we move the university to a fully insured health care plan at a rate that was actually less expensive than the self insured plan which obviously doesn't occur very often but we were able to get that done by the second week of the spring semester we had every single student for that spring semesters financial aid processed and so we have resolved all of those financial aid issues and we have been able to develop a budget system that. Makes sense that we can follow in that can help us to understand what is there we were fully on track to finish FY twenty in about a month from now with a positive margin albeit a very small positive margin probably somewhere around twenty three thousand dollars which you know is nothing in the grand scheme of things but as I said many times it was a black figure not a red figure and that represented a significant turnaround for where we had been when we came into the situation to assist back in August and then covered nineteen hit and as I already mentioned when we came into the situation they had expended virtually every bit of their reserves and when we lost the eight hundred and seventy two thousand dollars approximately I think it's eight seventy one nine ninety four that we lost as a result of the statewide budget cuts relating covered nineteen it put the university very difficult difficult situation fortunately all of the other campuses the a issue system were able to adapt and adjust to that because they had healthy financial system Rabal to put things in place Henderson certainly was not what we would have to do with no additional assistance or relief is furlough all employees for three days per week between now and June thirtieth I can tell you that we already have budgeted for and plan to furlough employees in the month of July simply because summer is incredibly difficult time from a cash flow standpoint particularly for university like interest in that found itself in this particular position we did not though have any plans to do not have any plans to request additional funny money for July furloughs that's just simply going to have to occur but they wouldn't be nearly as extreme as what we would be looking at between now and June thirtieth I certainly realize that this is happening all across the country I certainly realize that every college and university has been impacted similarly I certainly realize it's affecting private businesses and their employees and you're having to see those furloughs I think the thing that may. Most painful for me though is that every employee at Henderson has had to already under significant pain this year one of the first things that we had to do when we came into the situation was cut total compensation for Henderson employees by seven percent three percent of that came from straight salary four percent came from their retirement input we have subsequently cut an additional one percent over what we would pay them during the summer months for teaching and we have put into place for more strict guidelines for summer and fall and spring semester teaching I think I told you in earlier testimony that last spring a year ago spring spring of night see help me out here is free of nineteen I guess Henderson spent about five hundred and twenty five thousand dollars on adjunct an overload pay this spring through strategic data analysis and putting tighter controls and we were able to only spend about two hundred fifty thousand dollars that obviously hurts a number of individuals who were planning to teach but we simply can't continue to run those deficits last summer we had thirty nine course sections that weren't even profitable which is something that certainly you can't be done so I say all of that to say that the employees of Henderson have really injured a lot remarkably they have had very good spirits about it they've been very understanding I think part of that reason is they have hope again that we're going to get things back on the right track and are getting things back on the right track but certainly the combination of the seven percent cuts and the possible three day furloughs puts a significant economic crunch on them as well as trying to operate on two days a week in the summer when you're preparing for a fall semester and this fall semester which will look nothing like any other fall semester that we've ever had makes it very difficult from an operational standpoint as well and so we worked with the department immediately after the cuts were not made to express a. Our concerns in there and we appreciate the support of director Markham and her team and making that recommendation the governor that ultimately making that recommendation to use so that's why I'm here today and I'm certainly happy to answer any questions that you may have. We have a lot of I'm sure you do. Senator Malick or recognize you first. Thank you Mr chairman of first of all I've got a a procedural question and in a comment before we open it up to questions for everyone else the legislation that set up the co in nineteen rainy day fund which was passed act one of the special session provided that you know with the governor's recommendation and then the three Senate members and the three house members could approve that now I appreciate senator Hendren because even in the well of the the Senate during a special session stated that when it was not an emergency he would referred that or would like to refer that to the Legislative Council to make certain that everyone is involved and I certainly appreciate that but today will our will any motion that we make to simply be a recommendation to that gang of six that Esther okay up. The let me make a couple comments of first of all Henderson is in my district and I support this but I don't support it because Henderson is in my district I support it because I think it is in the best interest of the state of. South Arkansas has for public universities that are four year universities and Henderson southern Arkansas university you AM and you a pine bluff now each of those university certainly have students from all over the state and some from out of state but the the high percentage of the students of those universities are in the region of that where they are located and I think they serve a population of students agent that it's important that we serve and they serve a population of students that probably could not go anywhere else if if that university was not there so I think it's important to the state that Henderson survive. Now I'm not gonna go and all the problems are you all are familiar with everything that's going on doctor Welsh alluded to some I appreciate the work of senator Hickey and joint performance review and trying to to dig into some of these past problems we know that they were there and and they committees not through with its work and again I endorse and support their efforts but we also know that the administrators that were there. That received a vote of no confidence over two years ago back in two thousand eighteen that they are all gone all and that the current administration with the assistance and help from Arkansas state university at least certainly has the university on the right track with the of expenses that have been cut and again as doctor Welsh alluded if we had not gotten into the coveted nineteen crisis they could finish the year and would not have had to be here and I'm certain shortly that that they wish that was true but we are here now there's we work to some of us some individual members have looked at different options that. Might be less expensive to the state and if they for road. And I'm not sure if they follow the three days the the you know when you work part time and and not there's some rules on unemployment but if you followed at least to a certain level this meant the employees could draw unemployment of the carriers act but but calls to state a state agency a state university does not pay and to unemployment they would have to pay that back now I think under cares ACT unemployment they play back fifty percent but still it would be a cost to the university. And also spoke to the acting president the bone and the the fact of the matter is they need those employees they're working sometimes we think not much goes on in the summer at university but they've got students who have applied the reaching out to those students making sure that they come they're making sure that they have their financial aid applications in and all that is important work and so I certainly will support let Henderson has a rich tradition they were founded in eighteen ninety in nineteen fourteen they had a fire that destroyed the university a lot of people most people maybe at the time gave up all but if you thought no they're going survived and within a year they were built back when I'm sort of like in the current situation to the fact that Henderson has had another fire the current leadership has put the fire out we need to help them rebuild and so with the proper time after the question juror or all opposed I don't have a motion. Thank you senator. Senator rice you're recognized. Thank you Mr chair. Not have A don't disagree with the learning centre Maddox said The Welsh. You've been a positive force for a issue and sitting in the some seven hours of JP our last Friday the it was mentioned numerous times you you say you may issue and and you have brought confidence as you just mentioned to employees of. Henderson and and a touch tone there's now safeguards that they didn't have before you've got a structure that that you didn't have before and I appreciate that. the thing that I haven't had answered yet in this center MALOCH imagine J. P. R.. with this. And I've had people reach out of that I didn't know that it contacted me and and build in some blanks that that are concerning to me with this and as we are looking at moving forward. That's great. but thank. But don't discreet anything you've said I think that the plan is good my concern is can you. Satisfy maybe. A realizes just a sum of money Agyness J. B. R.. the tour and thirty eight thousand dollar what I call a parachute was given twenty thousand dollars a month. And while it's not been adjudicated don't order anything which to to to get. But there is a. The problem that two people could bring to this institution. Of of such a quality place in and I still have trouble with. People that were there. And in the one that job might be at risk and not knowing all details it. Very tropes. What role in decisions if any I thank I heard you were in on the discussion maybe in the trustees in the and make decisions can you. Ease my. Concerns with with what that what I feel like was a reward for somebody. That is described in committee help run the place off clear. Yes Sir senator rice so. To the separation agreement with with former president Jones occurred before we formally or working with Henderson but the board did ask for our advice as to how they were to proceed he was given a one year so his contract called for him to be able to return to the faculty this fall course you know that he has subsequently after multiple conversations agreed to step down and not come back in the fall but it allowed him to have a sabbatical to prepare to reenter that's fairly common nationally the board decided to give him that one year sabbatical with half paid by the state have paid by the private foundation that's what they did here was the problem senator we and we were asked to advise as to what we thought there legal options were I presented his contract to our general counsel in their general team there was no language in president Jones contract relating to termination for calls he had a five year contract that would have had a little over four years left on that our legal team felt very confident that we had calls to terminate him I say we the board had calls to terminate him but that if they did that and he were to take it to court that it would be very unlikely that the university would be successful the potential exposure if not expect X. successful would have been well in excess of nine hundred thousand dollars and so they made the decision to try to reduce the exposure for the institution I can also tell you that some of those trustees have subsequently said to me if I knew now what I knew then obviously I may have been willing to take a little bit more rest of risk we've been covered a lot more but I think it came down to that the contract itself was insufficient it certainly didn't have the language that we have in all of our contracts for our employees that have contracts that allow it to happen and so it became a a calculated risk decision that that board made. On what they're exposure would be for termination verses what their exposure would be to do it the route that they did and so that's why that ultimately that decision was made okay just finish up for do you and and and this is something I plan on asking J. P. R. further but from your standpoint do you know if there legal counsel at the time reviewed that contractor to or and I would I would assume center at I will tell you this out we believe it's the same contract Anderson's probably used for years and years and years probably the same contract I add I don't acts when I was president there I don't recall we never had an issue but I think it was probably a template that was just continually used but the board at all the negotiations for what was to be included within the contract in terms of the the benefits or the state standards that were there for the president thank you for dressing that and again with question for the people that were involved thank you sure thank you. C. thirty I think this senator English. One thank you of doctor well I had a couple questions one you left in two thousand and fourteen I left actually in two thousand eleven two thousand eleven yes ma'am so was that was the enrollment going up it's kind of it up. It had gone up slightly Henderson's never had major fluctuations element why no one yeah right they have never had major fluctuations in A gone up slightly my last year there that we start to see an increase actually had a record freshman class but then course I left so after that Senate doctor Jones was there from the time you left until there was a one year there was a period where they had an interim after I left I believe doctor Jones probably started in the fall of two thousand twelve or July of two thousand twelve because they had a date promoted the the vice president for finance in as an interim when I left I left in April of two thousand eleven I think you may have been there for a year Dr John came in two thousand twelve eight years pretty much demolish the whole. System certainly saw a decline in our state in the standing yes ma'am so let me ask because some all of these the now that they are under a finance system are you all of your schools are under one main finances stem cell had Henderson been under your main system you would it would you have been able to be seeing some of these things that are going to we have going on absolutely senator and and out if you'd like I'll give you a few examples there so first of all one of the problems was that there was in adequate board report the board effectively solve the budget when I approved in the spring and never saw it again until the end of the year whereas we require quarterly board statements we require different information you can see that day's cash on hand as calculated by moody's investors service which is a third party entity that does our bond ratings we've report that to our board and Willie and when you looked at that we would have clearly saying that they were basically deficit spending because they were eating into those reserves we also would have so for the financial statements all the errors that occurred in the financial statements for the last two years we have financial statement templates that we do is part of our consolidated financial statement and we would have caught those ears I'm able to corrected those before anything was ultimately submitted and then certainly anytime there's any type of financial reporting we bring all of that in the system level look at all that look for trends make those questions so we would have called the the things with the accounts receivable the overspending the and accurate budget numbers there were some things that just jump out at you design a quick look but yes ma'am because of the different back stops and programs that we have in place we would have we would have easily call the vast majority of those things. So for most of our colleges there inside of a system that's exactly the way it would operate are you sure sure the ark the university's everybody pretty much has a common. Part of a common financial system wide asus is with the state yes ma'am okay alright thank you. This represented wooden you're recognized for a question. Thank you Mr chair another question is right to department are a had. Smart home and and have missed some of the meetings because of health reasons but I'm absolutely astonished. This situation has developed. And I'm aware of the situation and U. A L. R. and dollar amount of Monticello. My my question is do you not have anyone or the authority to if it is called the department of higher education the young will have the authority to monitor some of these situations or all the situation for you know monitor the financial position of any issue in the university. That that mixed response to that question we have some authority to monitor financials we have some financial reports that ARE standard that are required by statute that we collect on an annual basis the issue with this with the situation with Henderson is their financial statements were misstated so the information that we were receiving at the department was inaccurate we have no way of auditing their internal financial accounting system on their campus and legislative audit actually called that those misstatements. And that's the first that we knew of that so we don't have the authority to request further financial information than what we are statutorily required to collect do you do you think you should have that authority that we ought to is a legislative body create something understand legislative audit but still you know it's a department your department that there under. And you have the you know you oversee it do you think the Johnny more authority and personnel I think that there should be a review of the financial documents that we could let to see if there is any further information that we could have looked that that would have indicated a problem had a time as I mentioned before what we were receiving from Henderson state. Showed a positive fund balance every year of several million dollars and it was not until legislative audit found the over statements an understatement in various categories that they showed a negative fund balance for the first time. Or is anyone presenting the prosecution of those individuals and their they need to go to the penitentiary that's what we've got and FOR. I have I can't speak to that I think that's the role that J. P. R. is playing at this point to investigate whether it was simple mismanagement or something more nefarious simple mismanagement. Love then. I would think that even I don't think that should even be considered Dr wells well you feel about that. You know represented wouldn't we have done so course to legislative audit's we've also done some of utilize some of our internal audit functions in the AC system as well as we have retain the services of a third party auditor to do an audit for us just to make sure things were there they have not in any of those audit found anything that they deem to be criminal but certainly there's a lot of things that don't make sense represent of it and I can certainly there okay yes. Mister chairman I have another question okay. The the people that are hurt the most for in this deal is the students in the state right of the other ones that have paid the price that's right in and that's the reason I made the statement I made about prosecution. They're they're paying the price down there on the furloughs in the code in salaries and all of that. What I'm worried about this Markham is a situation that other universities. We don't need this to happen again. This you know and and then the taxpayers of this state. Are the ones that ultimately bear the the real burden. And Committee all of the commission you doctor Welsh and your staff for twelve nine and miss Markham but this this is a to me it's an embarrassment. To all of this. The board of trustees down there there shouldn't be a one said known that board no I don't know who they are. And I'm sure they're probably some influential people but I could care less. They need to be gone. When when you when they so let board and they receive one financial statement a year. That's ridiculous. I got there to our allies Mr chairman thank you. Representative Dotson you're recognized. Thank you Mr chair Mister Welch just first of all in Senate committee for your efforts in this process I know it's definitely probably a lot more you've been off a lot more than what you thought your button off anyway in the in and I just want to start off by saying thank you for taking on this challenge it special in this this. Particularly challenging time and to the meat of it though. Of the eight hundred seventy one thousand nine hundred eighty four dollars that your requesting right now this get you through the end of this fiscal year I only correct correct so I guess the question is what is the plan after the first of July will you be back here asking for more money if so how much more I mean if this is only last a million Bucks every. House for six weeks or whatever the when the time is right Our chance to make sure no thank you Representative and and I appreciate your comments so the request we actually made was a twenty five I mean obviously that's not too far off of what was cut but we tried to get down to the penny of what it would take to not have to do any furloughs the challenge that we have in this particular fiscal year as opposed to what we're looking at next year is just simply time frame I mean when you have to balance that budget by June thirtieth when you have no reserves to fall back on you have very little other options other than your biggest cost category which is personnel to be able to recoup those savings in that short period of time obviously going into next year we have more of a time frame there to account for that I can tell you we've been very conservative on our budgeting for next year and working with Henderson we did not budget category C. or D. we we budgeted a five percent reduction in enrollment we budgeted eight ten percent reduction in ET F. and we also as I said went through a complete zero based budgeting process to get there so barring any additional cuts related to Kobe nineteen or anything we do not anticipate any need for any additional dollars in the next fiscal year we have determine how we're going to be able to do that now there's a considerable cuts I mean to supplies and services and as I said earlier to really tightening up the way that we schedule and looking at the way that things were done I think overall that's a good thing we're doing a significant programmatic review for programs that our time that we don't think may be viable moving forward to perhaps haven't been producing but as a as of today we feel good about where we are again barring any additional cuts now we actually think and hope that if category see flows aware if ETF actually does better than what we predicted we have got a little bit of wiggle room in there the big question right now is the federal peers money and what can be done. With that and you know as of right now we still have very little clarity as to how we can spend the institutional portion of the cares money and so that is another one of those areas though that if we're able to gain additional clarity and assistance give us additional place there so I feel good about I mean as good as you can feel about the budget for next year but we do not anticipate that we would need to come back and ask for any additional dollars okay and then I guess the the second part is if this is not approved by today what is or the approval for the recommendation to approve process right and what is your plan And. And it barring your need to ask for any future. Requests which I'm at call me a little pessimistic there under the under say that I I think there might be a check opportunity for you'll be back again What what happens do you have any is there a stopping point I guess where you say. No more and pull the plug on it sure well first of all represented I'm served understand your pessimism I mean it is it is it is daily has been for the last year that we've uncovered more things and had to be faced with more issues and just when we thought Hey we've got this here than than that happens so if nothing that happens today if nothing is approved today or the eight hundred twenty five thousand dollar level we would have to furlough every twelve month employee with very few exceptions just to keep the place the doors open for three days a week or an equivalent to twenty four hours a week between now and June thirtieth we're supposed June thirtieth you're into the fiscal year and so that changes the situation we did provide some members with some alternatives that could actually lesser amounts for lesser days a furlough they can be put in there so if you did six hundred thousand dollars then it could be eight hours a week four hundred thousand dollars would be sixteen hours a week so it really all depends on what happens but it wouldn't impact FY twenty one it's simply a matter of being able to balance the budget for FY twenty on June thirtieth because of the short time window that we have we we as I said earlier we approach ADHD very early on we were all hopeful that there would be enough flexibility in the care is money to be able to address this and not even have to make this record this request unfortunately that has not proven to be the case and there's still a considerable amount of work there but that's one of the reasons why we didn't get to request an earlier we were trying to avoid at all costs seven to come back to you and hope we could use some of these other funds but the way that the guidelines are currently written we can't use it for that purpose. So the doctor will yes if I understand this correctly if you furlough these employees down to a cut our rate per week depending on the amount approved by the cares that committee will call it right. They could then in return apply for unemployment for that balance so would you not be set in back in that chair in July asking for that fifty percent match for that unemployment we have calculated that in represented Wardlaw that's in the figures okay yes Sir so that's where okay so that is in your figures if it's cut to four hundred because yes exempted okay and I would point out to that one of the challenges is if the if the employees are required to be furloughed twenty four hours they don't qualify to participate in some of the covered nineteen or cares unemployment thing it has to be sixteen hours or less but yes we have factored in the thanks for clarification but yes Sir I understood that part of Senator Sturch you're recognized. Thank you Mr chair not west Dr mark month really don't know who this will be an aim toward so I'd just like to both answer it when I get there okay maybe a little background of course I'm not a voting member of this committee I'm an alternate but senator events not here so I'll be voting today so nobody else is really reached out to me as far as with information or anything like that so I'm brand new to this I mean I know what's going on as far as that goes but for example I have enough respect for my colleagues that I wouldn't be presented to tell senator MALOCH cow his county should run or how his colleges should run or anything of that I would accept the same respect to me the thing is god forbid that you ACC B. R. Black River are Ozarka was sitting in the same seat that you're sitting in now and so that's on my mind is what if. In all of our colleges right now going through a hard time the wife it was one of mine and so I guess my question then is have you sought have you asked have you received any feedback from the other piece and sees as far as how they feel about this direction this additional request knowing already we've given out millions of dollars already Henderson can you tell me what the others are saying. The first add Senator Sturch just for a little context and let me say that as soon as the budget cuts were announced for all of the institutions of higher education I reach out to all of the presidents and chancellors gave them their new figures for the fourth quarter and I let them know if you're gonna have an issue with pay roll or some of your critical operating functions let us know immediately so we can advocate on your behalf for some emergency back bill of all of our thirty two public institutions I heard from to one said I think we can make it but we're gonna have to us see how this goes we may have a problem the last couple payrolls of the year since then that institution is said no we've we think we we we're gonna be able to make it and the other was and Henderson state which we knew it was going to be I type for them because of the position that they were already in so I have communicated with all the presidents and chancellors no one else has indicated that they were in another the crunch to request emergency back bill through the in the fiscal year thank. And I would say senator that the the communications I've had with my colleagues has been overwhelmingly supportive and positive now I think that they might feel differently had we been there when all of this happened but I think because of the fact that they know we stepped into difficult situation are trying to fix that and get back on track there's certainly more willing to be supportive something like that I'm sure there are some out there that don't like it but I that I haven't heard from but I think that you know for the mostly understand what it is that we're trying to do and what we inherited and and FOR that their support of of of and knowing that we don't have a track record in our system of of these kinds of problems are coming in making these sorts of request and things and they realize were only doing it because it was the the hand we were dealt we got to try to work at three two thank you Mr chair senator MALOCH thank no. Representative Lundstrum you're recognized for a question. Thank you I. Just a clarification I appreciate all that you're doing you you've definitely wrestled with sharks and swam with alligators I'm trying to figure out the why we are doing this with covered money and not higher read or rainy day funds this really isn't a use for coping money at all it's bail out money for Henderson state so if someone could answer that question for me why is. A bead we made the request of the governor's office I would assume that it was because the these cut is solely related to cover nineteen and if not for cove in nineteen then we would have had to make a request but that's that's all I know. Jake do you wanna. I mean it seems like it's not really covered nineteen is because of the mismanagement previously in previously in previously and as we've said before. It's been due to agree just mismanagement maybe even criminal mismanagement that Henderson state finds itself in this problem. So without speaking to dinner in addition sorry but shapely DFA office of budget so without speaking to some of the the history and what's going on with the institution the request was made for the cover nineteen rainy day fund and it was links to the reduction in general revenue distributions that resulted at the end of the fiscal year ACT one which created the Kobe nineteen rainy day fund is really that will for two purposes one as those direct cover nineteen costs and the others to make up for cuts to general revenue distributions for perspective the amount that was reduced as a result of this budget cuts from the Henderson state budget was about eight hundred seventy one thousand dollars so this request is just a little less than the amount that was cut we've made several similar releases for for example state crime lab and also department of corrections also in that purpose of filling holes within the budget as a result of the company eighteen in these dollars are not federal dollars that he's referring to these are the state dollars set aside in the special session that were set aside to fill in budget gaps such as this and that's why it had a different approval. Then a LC it has approval of the three and three three from house three from Senate be your Speaker pro tem Majority Leader minority leader in the same in the house so if I. Yes it does can I have a follow up please I'm did did Henderson also apply for the ready for business grant. I'm on my understanding is no okay and and then other universities that are tightening their belts of they also applied for this money. A we have one of the request three university the we have asked everybody to get with us so that we can batch the request and get it to you will be here coming up my expectations will have more request that the LC meeting here coming up in June. As with with my concern is we have businesses across the state they're laying off people in making difficult financial decisions and while they might be able to apply for a little bit of funds here and there. We're all having to make these decisions I'm not sure we want to start down this slope especially with the Henderson state now offense that already is had a colored background as far as having financial issues with. Green issues with money. So I'm I'm just a little concerned there. Cloudy issues the Henderson state. All right that's just my question thank you thank you Representative senator hammer do you have the Michael they will. You're recognized. Thank you Mr chair docked Welsh let me ask doctor Markham first in a I think you hit out but is what Jake just referenced as far as other institutions coming down the line that what we're doing today may set a precedence for them coming in the future what are your expectations. We have let all the institutions know that if they were if they planned to come that we needed that information by the end of the month so as Jake mentioned we have that one institution other than Henderson that had mentioned early on that they may need some assistance with their last payroll and that other institution the reason they're in that position as they had a lot of their there's their budget for the year in the B. category and that was completely eliminated with the budget reduction in the fourth quarter so and they had a substantial amount of a cut in there to try to make payroll through the end of the year okay and I'm asking for educational purposes for my benefit the money that we hear about coming down from the feds non code related well it's coming down to the individual use universities there was list none of that. Provided any relief to where you would have to sit here today asking for money that's correct all of the federal cares money for institutional purposes it. Although many many of the institutions have it's been it yet we do have federal guidance on that it had to be related to the migration of course of online so it's technology purpose are for technology upgrades student support laptops you can't pay people with it so it doesn't help with our payroll shortfall okay and then ducked well some issue and Dr Martin chime in if you want because again educational purposes for my part. What other avenues have you sought in order to find this money such as have you asked about extending the loan that you currently have and can you give us a comfort level about what you're gonna be able to repay the current loan that you have or are you just digging a deeper hole and we might as well just. four condition finish it off. Well no Sir I mean I have all confidence we're gonna be able to repay that loan and we've we are working in a payment schedule to do that obviously we have some time line there to do that we did not want to incur any additional that if at all possible because that's just something the university continually did and and you know I I know the question was answered I didn't answer represent Dotson's last question about pulling the plug you know well this is been one of the more difficult years of my life and while I've spent an inordinate amount of time dealing with Henderson and unfortunately not being able to deal with my other six campuses I've done so because I I realize the importance of the university to the state I realize that they serve a large number of first generation students who if not for the university probably do not go to college they would not have the ability to just up and go somewhere else and so I believe it's critically important and when we talk about Henderson in terms of their financial challenges they've only had these challenges for the last few years they do not have a long history of financial challenges this is not a university that's constantly been on the brink they have been very healthy positions for many years until a series of. Very poor decisions made the last three or four years that have cost us to get here but this institutions been around I'm since before nineteen hundred section the second oldest public university in the state of Arkansas and so I think it's important that we do everything we can to make sure that we don't let the bad decisions of a few years overcome something that has provided so many wonderful benefits to somebody people who otherwise wouldn't be educated on the probably be a further during on the state budget so yes Sir I mean we we we hoped that we be able to use federal funds we looked at a lot of different angles but we certainly did not want to go out and and try to encourage additional bit for the university if there was any way to be able to do it through avenues that were related to code nineteen because as I say if not for code nineteen we would finish this year in a positive which I'm not sure how to tell you I thought we could have done that even with the loan when we first started with this but certainly this is put things in a difficult situation okay and I appreciate your passion and like everybody else we as has been said for appreciate you step man because you didn't have to but chose to an thank you for that but with the passion you spoke educate me as to what prohibits the foundation from being able to get the university this money so the taxpayers don't have to what laws prohibit that and have you as foundation if there are no laws that prohibit that I don't think there's laws that prohibit it but but you just have to keep in mind for many of our regional universities their foundations just are not very large and the vast majority of funds in the foundation or restricted in the community you know what the ballot to the Henderson foundation is in because they taking care of a president who did a really dirty they have they did have aunts mothers so they can bail him out but why can't they bail out their own institute that was there they're on restricted Senator hammer they didn't have enough to to it to use your term bail out the half of the year president Jones they had to get some further donations from some of the board members to specifically get that done so there's not there's very little discretionary money that's available from the foundation the Bassman. Jordy is restricted to scholarships or endowments or whatever the case the donor but on there okay thank you thank you Mr yes. Senator Bledsoe you're recognized for questions so I just need to to refresh my memory how many students were in the two thousand nineteen two thousand twenty class so that fall class of two thousand and nineteen had about three thousand five hundred if you don't count concurrently enrolled students and it was closer to four thousand if you count all of them. A and do you know the number that has continued with you I don't have that would be Senator but I could certainly get that for all right of attention right now but yes but my real question is what is the graduation ready for the twenty nineteen twenty twenty class seniors. Well so graduation rates are calculated on a six year graduation rate by the federal government so the last cohort would be two thousand fourteen I guess that would be available and I believe Henderson was somewhere around thirty three percent thirty two percent little bit higher maybe thirty six somewhere close to the national average all right the reason I ask is you've had these problems these financial problems I'm sure the students have been aware on them and I wondered how that affected your graduation rate but you do not have those numbers Senator bond you did. look he's got his. I would chime in on that we can produce those numbers from we can calculate those at the division of higher ed I will tell you that we just released our productivity scores for all of our institutions and Henderson is up in their productivity for for I think the third year in a row and that looks at retention completion degrees awarded so their student enrollment and their their success indicators have not been negatively impacted to this point alright thank you. Senator Chesterfield you're recognized. Thank you Mr chair. We continue to talk about doctor Jones as if he is a monolith however doctor Jones is just as good as the information he's given as a president and we have not talked about the person who was a licensed CPA whose job it was to give him better advice would you agree yes ma'am A and a part of the problem at Henderson the people people seem to think that either he or the CPA of run away with a bunch of money. The problem was they let a lot of children go to school who were not paying. Which was the greater eagle allowing the key is to go to school who couldn't pay or doctor Jones and and Mr Powell receiving money what was the crux of the problem. Honestly I think the crux of the problem I mean the accounts receivable certainly is a challenge and is a major issue the bigger issue that I think was just blatant overspending and and the budget not being appropriately there were things that weren't budgeted and and things that were of kinda like fill in the blank is kind of the example that I've used but I I think really if we want to look at it it was just not well managed from an expense standpoint deficit spending not making made your cuts like the rest of our campuses have to do and that sort of thing and it eventually caught up with with so there are a number of the issues that was made by the cross the border yes doctor Markham one of the things the things that troubles me is the lack of oversight ability. That we have given you. In the department of higher we. In a perfect world. What would be some of those things that would be instrumental in helping us to make sure that all of our institutions at the state level our operating as they should what a story which you need in order to do what you need to do better that's a complicated question because we are established as a coordinating agency were not given governing authority over you're not given the governing authority alright coordinating council we're there for right don't have really anybody at the state level that has oversight authority over the colleges and universities in the state of Arkansas that's correct all of that authority is vested with the boards of trustees at the individual institutions and they're only as good as the board of trustees that's correct. That is of concern to me because we we appoint people. To these positions who supposedly know what they're doing. And some of them were just average citizens who don't have a clue about how to read a budget. How to talk about how we are how to go through each one of those budgetary items by they don't have the time. It is my contention that we have got to do a better job of governance and not just coordination which you agree I would agree and I would say that. The pharmacy state level some of the things that were going on Henderson Justin excusable I've seen the board policy manuals of the system schools I've seen board policy manuals of some of our independent public institution and some of the things that were going on there that we heard last week those decisions would have required board approval there would have been some kind of governance and I think doctor Welsh mentioned there was just a complete lack of written policy so even had the board been looking at things there was nothing to follow up on so they're governance structure was very loose and lacks and there was just very little oversight there and it was shocking to see that that they didn't have policies on some of the very basic things that you expect an institution to have policies on so I think that there could probably be some review and coordination of that it was suggested your J. P. are that you know that we collect all the policy manuals for review again my division wouldn't have the authority to say you need to change these things but we could perhaps provide some best practices and point out some holes in in the governance of the institutions it was in to me that we would need a template. Every institution must do this or have this in place perhaps the most of them do. But unless we put that in writing and say to them this is the least we expect you to do. In order to make sure that the economic stability of the institution is there and that the individuals were charged with oversight have some knowledge of what to ask because we don't know what to ask you don't get the right answers and so I am one of those persons is going to support this. And just rule the fact that over the last several years to individuals whom I've known both Mr Palin doctor Jones. have done an abysmal job. I'm running an institution sometimes people of very good it's one thing and not very very good at something else and I think being a provost or whatever he was a issue he did a very good job there but did not need to be is a president that's a hard job to do so I appreciate you all I appreciate you doctor Welsh coming in with the a issue system but we as a state have got to put at least a template in place that says to every institution you must at least have this in place and so I would say I'm going to be trying to get in I. S. B. hopefully this group will approve it but we've got to do something that says to each and everyone of them each and every institution this is the least that you are expected to do. Thank you Mr chair and senator I would add to that I visited with some of your colleagues about some reporting information that I think would be extremely helpful to the legislature and give you a much better picture would be happy to work with you on getting that implement it. Representative Lowery you're recognized for a question. Thank you Mr chair at that I guess the before I ask question just by way of commentary and no one of the limitations that the coordinating board has some we've talked about this before is amendment thirty three I don't agree with amendment thirty three I think it should be thoroughly tested but university some universities have utilized amendment thirty three to push back on the coordinating board X. asserting authority and F. pushed back on the legislatures serving authority so that's really one of the first areas that we need to address Doc will. One of the. Concerns that I have is the whether it. I know you've put with your memorandum of understanding which is all that you're operating under at this point is that correct well we're actually operating under the actual merger agreement now it's not finalized but under the right answer okay and you've you've put. Great people in in place there to oversee but I but I guess I would have to challenge and and have concerns of of whether we we have the leadership that we need to add Henderson right now and I'm I'm specifically talking about. the current board and I know that that once that is finalized that board will go away there will then be a new board of visitors think part of the agreement is that there would be two representatives from Henderson that would be on the issue system so I know all those things are going to change I I guess for me to have a comfort level on this eight hundred and twenty thousand dollar request would be to to have confidence that you know we have a J. P. R. meeting coming up Friday I know that requested been made of the current board for them to voluntarily attend right. Feedback I've received from some is that that's probably not going to happen we're gonna have to issue subpoenas. I would like to know you mean page if you could give us a commitment if we approve this that if there were any board members that did not voluntarily of attend to help us continue to answer questions about what took place who knew what when. that you would join with us in asking that those board members resigned their positions. Because there there is there certainly was Miss representation said that word is being used in terms of the financial responsibilities probably malfeasance of one concern under Senator Rapert race this at the first hearing were doctor Pallin doctor Jones were in attendance I remember which one answered the question that they were asked about. Directors and officers coverage that Henderson state did have that as many of I would assume higher ed institutions have. The directors and officers coverage would have potentially covered. Some of the this malfeasance or some of these financial decisions and yet they the board was advised that I would assume that that would have been by the legal counsel who is now the current acting president that they did not need to continue do you know coverage because of sovereign immunity. Well what do you can be sued or not is a totally different. Situation of whether an insurance policy would cover. False representations and finances and whether the art directors and the officers and that would include the president and the vice president of so what what is your familiarity with that decision making process on not continuing to you know coverage and when did that expire and whether there were actions that may be covered. Prior to that when that expired sure represent let me let me a couple things that were stated there you're correct that as soon as the merger is finalized the current Henderson state board will cease to exist the only thing standing in our way of that is is the regional accrediting approval process unfortunately that process takes nine to twelve months that's not unique to this situation we dealt with the exact same thing with our other two most recent mergers there will be two members added to our board but they are not required to come from the existing Henderson board so it would necessarily be two of the existing board members at nor does the board of visitors require that there be any prior service that could be it could be entirely new individuals I will also point out that as part of the merger agreement which took effect the first of the year when the MO you lapsed we knew obviously that we were gonna be looking at January twenty twenty one before the merger agreement was finalized and so we put an interim management plan in place so that the acting president now reports directly to me so while the board still is the formal governing board of the university we put that in there simply because I wasn't comfortable with us not being able to make decisions that have major influence over those between now and January twenty first January twenty twenty one when we take that over with regard to the directors and officers insurance the the recommendation to not continue that was actually made by the issue system general counsel we do not provide that for our own boards of directors primarily because of sovereign immunity and I'm not an attorney I can't explain all those details he could certainly explain those to you in great detail that lapsed at the end of the calendar year but it's my understanding again not be an attorney or having that much familiarity with those kinds of insurance policies that it was still because it wasn't affect when those decisions were made it could still be utilized for their if there were lawsuits brought but consistent with the way that are so. Some operates in my understanding that multiple other higher education entities in the state it was a recommendation of our legal counsel that we not continue that insurance okay with thank you and that that is very helpful because it makes it even more imperative that J. P. R. and whatever other legislative functions that we do get to help get to the bottom create a case file worry file that can be turned over it leads to supporting materials to whatever insurance company carries that policy because I mean. Well I don't want to speak well I'm going to do anyway insurance companies have a way of being able to parse language and so I well it wasn't this and it wasn't that it there's a sub clause that does it. We need to build the file and part of that is having these trustees appear before J. P. R. and saw a I hope that you would join in encouraging them if they want to continue to support in good faith the students the faculty all all the employees of Henderson state going for that they would participate in that of helping us establish who knew what when what were the what were some of the contributory factors that got enters into that point because frankly there were some decisions that pre dated four years ago and it may even have gone back as far as when Glenn Jones was hired and then later when doctor pal was hired so anyway thank you very much thank you Mr chair. Thank you Representative of. Senator Clark. Thank you Mr. Doctor Welsh view of. Finally payments go head on the really important things. No I'm not one to Be much for bailing out anybody for anything covert nineteen is put us in a different place. The Things you did a good job of pointing out that Henderson has been a solid. School been a. Imported. I think it's hard to communicate how important. To the region. A few weeks ago. We had a deal come up northwest Arkansas by the water system. The one the. FOR give millions of dollars because the people when the people's fault. You know one the employees at Henderson. I'm not as compassion as a probably should be because people are hurt and everywhere. In us us a small restaurant owners and barbers and beauticians up owners. But to the people who look to Henderson. That you mention the first generation. I was conceived it enters. Born in Henderson. My dad was on those first generation from either side of the fence. Taught in central Arkansas for many years. My mother law. First generation college student from either side of the family. Two nieces and nephew. It's not a prestigious. Go to school for you know that I may not like here in it but school for poor people go. First generation college students. My dad when he went there. Worked in the cafeteria. Worked at gas stations. Wharton harvest wheat harvest English B. harvest ever summer. Across the Midwest in order to pay his way through school. He's indicative of the top a student. Henderson. So the employees. I'm not so much worried about. But. I want to say how much I appreciate. Yall Steppin in. I know there was probably some prodding growing the university but it turned into you all really saving Henderson. And I don't know that. Everyone can understand how important this colleges to the region into the state. My we would let you a Largo because we got have a law school and we would let you and Mezco because gonna have medical school and people don't know how much to this university represents that first generation college students and people who wouldn't go. Am I right. You're absolutely right Senator and you know I'm a first generation college student and so I think that's why pulls at my heart strings on because it's my family as well and I appreciate those very eloquent remarks thank you. Thank you senator center Johnson you're recognized. I'm afraid to interjected peeing because it's level of the. Brought back later. We're looking for questions not existing you. Since the In the in the considerations How come why don't we just extend the loan to a million dollars. And and have that same repayment plan because this is this is a state troopers are. and and and I know you stepped in the power of it whenever you did without ever servers but you know this is a state prisoners and and Henderson much like the state of Arkansas and the and the United States is going to come back it is going to come back strong this at one point and I have absolutely no no doubt in that and. I mean. This is not covered money this is reserve that we've made and other parts of state made and I'm totally willing to help. If we extend that two million dollars. Red or whatever you want to view the other four hundred plus the two hundred and whatever we done. The this is the. everybody's fund and we want to help but I think that. Repayment is is acceptable in this time and the same way if there's another university common. The we use our reserve is to to help on and until that time comes to her were all stronger and That's mine that's mine. Question to you is is that been considered and and that's my two cents in the matter so I'll I'll reserve anymore sure thank you senator and and I can tell you absolutely we had that discussion I think the the biggest concern is simply that you don't back last July shortly before we came in Henderson bond rating was downgraded to levels and the only thing that has prevented it from being downgraded the third level according to the bond agency is effectively there but confidence that we're going to be able to to get this thing turned around and and and I share that confidence I think the concern is any additional debt on an institution that already has a fairly high debt ratio could be the trigger that further reduces that bond rating and we're worried about that but to your point one of the things that's been discussed with me with some of your colleagues is if we were to receive an amount of money and then the state forecast was to be revised upwards would we be reeling to reimburse by whatever amount it's raised upwards to replenish that absolutely we would be willing to do that so that could be another way of approaching that senator. You had teacher but again center. In the same line at being these or your reserve funds that that can affect our our bonding also and how your main does not mean we had. What three hundred and some odd million in reserve and this is some of that funds and you know we don't know how long this thing's going to go over or want to happen so that's that that's my. Yeah I understand you're trying to protect that bond rating but that bond rating will come back when a rich ram like you you and your team will run it and and this state will support it so my two point. Senator bond you're recognized for a question. Thank you very much of a chubby bridge Senator Sturch ask you earlier what other presidents and chancellors were saying about the situation you found yourself and I was expecting you to say they were saying we're glad we didn't take they are saying that if. I can assure you there say that. Will following professors and employees her preparations for the students for next year. Yes I mean that's that's one of the big challenges certainly and it would be a challenge any summer because a lot of work in the summer is that preparation for fall this summer is even made more difficult as because of all the unique circumstances that are we're gonna be faced with in the summer because of the pandemic are the fall season would you expect this significant for low to hurt your enrollment going into the fall it certainly could now I will tell you that you know we are going to try to two straight if we have to do the furlough structure those in a manner that we can continue to have strong focus and strategic FOR lowing particularly for recruitment because we know that's a lifeblood issue right now summer one I think as of yesterday we were ninety six percent of last year's associate so we're still we're doing okay but certainly that's a concern in the fewer people you have able to process financial aid make those contacts help students with housing and things that certainly of concern. So the I think the biggest economic development issue we have for Arkansas's education level of our people we traditionally right forty ninth at the house forty seventh at times on what education level of our people we know are college going rate has been declining to an abysmal level. At as doctor Markham has told us before it just seems to be although it's an incredibly tough situation the wrong time to cut funding to hire read we ought to be supporting this and I'll be a goal the state to increase education level of our people and I think we ought to support the requested. Senator you're you're done can you pass that might to center Johnson while we have it out there and we're just going to let him get is question answer. Thank you Mr chair of I'll start with the doctor Welsh but I really coming any and what's with doctor Markham up in this most cases we're here senator Chesterfield are on the same page so we're by take note of. The. Hello. Of. She ask about the coordination and the and the issues and and. Representative I brought up amendment thirty three I I see these things happen just kind of from a long perspective of state government that the two so called constitutionally independent agencies and then higher ed because amendment thirty three it's it's sort of a. I call it kind of a moving fig leaf that they can kind of put it where they want to to shield themselves from from coordination or or even scrutiny in some cases and you're smiling act pub L. you your I'm headed on this. I'm not so sure that and I know the history of it I know it was done because of the governor fired felony bill Fulbright who was present the university of Arkansas and the response was we're not fix or the governor can't fire college presidents and and I have to agree with that but I feel like that the application of it has gone much further and it's been pointed out here in the case of this particular board and some total lack of policy stated it just sort of they just kinda Waller around operate whatever the undue. Is there a. Legislative manner like senator Chesterfield was alluding to that where we could. Kind of. Focus in on what. The General Assembly and even the governor can do to to for some compliance and some procedures in in higher ed within the existing confines of amendment thirty three and I'll just throw that out for both the all to respond to. Sure center I'll go first I mean I'm typically not one to throw up amendment thirty three primarily because I realize you control the purse strings and you pass the laws so you certainly have a lot of power from that perspective but I do think that that definitely there are some reporting mechanisms that we could be doing that we already have the information that's by independent third parties that we could be providing either to the department or we can be providing to you that would be far more useful than some of the information you get now you get that certification every year we certify we have the amount of funds there are other reports that would give you for better picture of the financial health of an institution and show you trans and so I'm certainly open senator to working through that to try to help find better ways to to make that work I don't have any problem with that whatsoever. I agree with Dr wells parties a lot smarter than me so he has sent a lot more eloquently that that certificate of solvency that we do every year basically it's a signature it's a form that says yes we have all the money that we need to cover our operating budget signature so it's it's a yearly submission it's woefully short on the details though I mean we have no way of knowing that the division that that their cash on hand was it six days and we know what a healthy cash on hand should be but you know we do not from all institutions of course not for me a issue system but we do get pushed back on some of those requests when we make them we get the you know under what statute are you requesting this information for me so most of the time the institutions are very forthcoming I'm not looking for a power grab but I do want to support our institutions and to provide that the wise counsel that they need to make good decisions much like Senator Clarke's testimony you know in full disclosure I'm second generation Henderson graduate my dad was first Jan he was one of the first kids that came out of the aviation program Anderson my brother went to Henderson my sister went to fight it bills we don't talk to her. I do understand the mission and I don't want to take control over these institutions and I don't think a board wants to take control over the institutions either but I can tell you are board is very frustrated with their Their responsibility but lack of authority to coordinate some of the activities well if I could follow up Mr chair of quickly like like you a lot of our families are first generation my dad's brother was the very first member of our family that we even know ever attended college Hey what do you AM A so I appreciate what you just said I'm I'm hoping that you all can help us come up with some kind of. for example you about the issue of no policies by the Henderson board that they that would say to do this you got to go back and get this of approval things we're just kinda Lucy goosey it it and I hope that we can look at some ways I believe senator Chesterfield with me on this where maybe we could legislate at least that they have that kind of blood delineation of of approval and and a line of authority in place even though we're not telling what decisions to make we can tell on the the procedure the maybe that they would have to do which would help you and your staff avoid at both of you in both your staff avoid being here doing things like this I think that would be very helpful and Senator Johnson is and and we don't want to dictate the terms of their policies just say you must have a policy it is our policy that you have a policy so that if we need to reference that is available is publicly available such a student accounts right now we're not gonna tell you what your balance your your maximum ballot should be for students to be able to enroll but you have to have some kind of policy that's approved by your board. Thank you both very much thank you Mr. Senator Cheatham you're recognized for very quick very strict Mr chairman thank you very much and I think my great great great grandfather graduate Henderson up. Voting connection Henderson is not not younger brother did play football or the up missed will just quick very quick question. I know when the school I work for merge with you have a That their board of trustees disappeared it does come with the same way yes Sir they might have an advisory board that's correct all decisions we made right there that's correct they will disappear it will become the come under the direction they issue system board there will be a board of advisors appointed but it will not necessarily have to be anybody from the existing board thank you very much yes. Thank you senator. Home or go back to senator Malick. I didn't forget about you. Sir mark you're recognized for your motion. Thank you Mr chairman and let me preface it with this and Dr Welch made mention of the fact that at and I don't know that this is very likely but we actually did have a little better revenue report for April than we had expected and if it happens to be good and may and the governor revised his forecast upwards some money would flow so that it'll be a provision by motion I move that we recommend to the committee that was set up under act one approval of a hundred twenty five thousand dollars with a provision that if the revenue forecast is increased that any money that would flow to Henderson from that would be recovered back against the eight twenty five. Does a proper motion and a second all those in favor say aye. All opposed. House have it motion passes seeing no further business. I need three hands. All right we'll call the roll start in the Senate. The three more hands. Senate first. Senator Ballenger. Senator bond. Senator Caldwell. Senator Cheatham. Senator Chesterfield. Senator Clark. Senator Breanne Davis. Senator DISMANG. Senator eads. Senator Elliott. Senator English. Senator Flippo. Senator Flippo. Senator flowers. Senator garner. As her alternate. Senator hammer. Senate hammers A. yes senator Hendren. Senator Hester. Senator Hickey. Senator Ingram. Senator Sturch. Senator Johnson. Lee Johnson. Senator Blake Johnson a center Malick. Senator Rapert. Senator sample. Senator Stubblefield. Senator Teague. Senator Wallace. Senator rice. The passes in the Senate. All the house for. Representative Bragg. So before moved for just make it clear if the member signs in and members not present the alternate cannot vote sold represented Bragg Sunday and. Representative Burch. Represent Cozart. Represent Cozart not here first alternate represented Pilkington. Representative days Davis Andy Davis. Represent definite all. Representative Douglas. Representative Eubanks. Represent Ferguson. First alternate Representative Hodges Monte Hodges. Representative Kenneth Ferguson. Representative fielding. Represented fight. First alternate Representative Lee Johnson. Charlene Fite I'm sorry. Represent Lee Johnson is an I.. Representative Lanny Fite. Representative Godfrey. Representative Jean. Representative love. Representative Lowery. Represent McNair. Representative Miller. First alternate represent Kelly. Second alternate represent of Meeks. Representative Murdock. Representative Payton. First alternate represent Hillman. Represent Richey. First alternate represent Lynch. Second alternate represent Tosh. Represent a column. Represent rushing. First alternate represent Warren. Second represent represent second alternate represent capp. Represent Speaker shepherd. Representative Lundstrum. Represents Sullivan. Representative Vaught. Represent would occur. First alternate representing garner. Second alternate Representative Richardson. Represent Womack. Representative would. Representative Dotson. The motion passes in house and the Senate. So that's any further business we stand adjourned.