ALC-PEER

Good morning and welcome to peer. the first thing that we need to do is we need to have a motion to suspend the rules I have a motion motion second. All those in favor say aye any opposed motion carries Mister Bill A.. Thank you madam chair the first section the gym this section be cash fund appropriation increase request. the first question the only request is B. one for the university of central Arkansas this is a request to increase appropriation by fifty two point eight three million new spent thirty will out for three construction and IT projects the letter notes cash funds and bond proceeds support the project's manager that or the those are the cash requests. Without objection are there any questions. Without objection these will stand reviewed next item. Madam chair moved the section CD's begin the items for approval the first section C. one shared services appropriation transfer requests in the fiscal session cabinet level departments received a new salary section paying account preparation and special language section which allow the department to transfer funds appropriation positions related share services is only one department on today's agenda that's the department corrections and the second page is a letter from department making the request. This letter request transferring a hundred thousand from the division of community correction to the department shared services the letter explains being forty is needed for any unforeseen issues regarding over time for their over two hundred positions they have in that section. And your that is C. one. Are there any questions. Seeing no questions on a motion. Second. All those in favor say aye. Any opposed motion carries next item. Now to the next section see two or the rainy day is a rainy day fund release request this is a letter from the governor request a transfer of three hundred seventy eight thousand one hundred from the rainy day fund to the department of corrections inmate care and custody the letter says the transfer will provide funding FOR chillers at the Washita river correctional unit. Are there any questions. Seeing no questions do I have a motion. Second. All those in favor say aye any opposed motion passes next item. Madam chair continue with I'm for approval will now move to the supplemental engine the these are on your desk members. The first section requires approval is requests from various temporary preparation that is on page three of the supplemental agenda. A one is a letter from the department of commerce division of workforce services it's a request to increase appropriation by two point eight million then it's been at thirty will allow the division to use cares act funding to hire a contractor for call center services. Are there any questions. Saying no questions drive a motion. Second all in favor say aye any opposed motion passes next item manager so subliminal agenda as the next approval item is cares appropriation quests and that request begins on page five. This is a letter from the department Human Services its request increase appropriation by four hundred and twenty five thousand then it's been three will support child advocacy centers. Are there any questions seeing no questions I have a motion second. All those in favor say aye any opposed motion passes passes next item. The manager were now in the regular agenda roan section the budget classification transfer requests. The first item the one is a request for the department of commerce division of aeronautics this is a request to transfer thirty two thousand IT spending authority from the operating expenses to capital outlay the transfer will allow replacement the vehicle use for travel to airports across the state for required safety inspections and further activities request knows the vehicle to your place meets guidelines for vehicle age and mileage. The next item is for the department of commerce State Bank department this is a request to transfer one hundred and thirty thousand it's being thirty from operating expenses to capital outlay. The transfer will allow the department's replace for vehicles use for onsite examination of banks. Was not the department typically replaces two to three vehicles per year in their nineteen vehicle fleet however no vehicles replace last fiscal year due to the pandemic. Manager those are at the request in section the are there any questions. Seeing no questions without objection these will be considered reviewed next item. I am chairman sectioning now this is the miscellaneous program appropriation request. The first items for the Arkansas attorney general's office it's requests for one hundred fifty two thousand in appropriation to spend federal funds they have a grant for the department of health and Human Services for Medicaid fraud control units this I requires a twenty five persons the match for about fifty thousand dollars match also come from state central services. The next item is for the department of education Arkansas school FOR the blind it's request for two hundred fifty thousand a preparation to spend federal funds they have a grant for the department of education to help absorb the expenses of educating and housing students during helping them make is item is a hundred percent fairly funded. The next item for the department of education's school for the deaf this is so much the last item this request also for two to fifty thousand to help absorb expenses of educating and housing students during the pandemic this item is also a hundred centrally funded. Next item for the department you miss services division of aging adult and behavioral health it's request for sixty eight thousand an appropriation they have a grant for the department of health and Human Services to allow area agencies on aging to provide enhanced I reached eligible Medicare beneficiaries AS items hundreds in federally funded. Next item is for the department education division of higher education it's request for thirty thousand appropriations in federal funds and they have a grant from the corporation for national community service to fund an internship with engage Arkansas this item is a hundred in fairly funded. The next item is for the department commerce off the skills development this request for two hundred sixty two thousand five hundred a preparation to spend federal funds and to establish one position they have a grant for the department of labor to expand apprenticeships registered under the national apprenticeship act the position and appreciate expansion coordinator will be reviewed in the personnel subcommittee for title in grade this item is a hundred and thoroughly funding amounts here we also have FOR remake G. request from the department of commerce division of workforce services in the supplemental engine the. The first request for the divisions on page seven of the supplemental agenda. For that first request is for work for services this request for five point nine million to spend federal funds they have a grant for the US department of labor to pay for the administrative expenses of the unemployment insurance program and this item is a hundred severally funded. The next MSG instability in the is again for for services it's request for one point four million appropriation they have a grant from FEMA to pay administrative expenses and this items understand fairly funded. Next item it's request for two to eighty five thousand four for services and evergreen for the department of labor to detect fraud and identity theft in pandemic unemployment compensation programs this item is a hundred in Philly funded the tiling crates for the three positions would be reviewed personnel subcommittee after this meeting. The last item is a request for one point four nine million appropriations it's been for offense and to establish fourteen positions. This is another grand for the department of labor to detect fraud and identity theft this item is one hundred and fairly funded and again the titles in grades for the fourteen positions will be reviewed and personnel. Manager those are all the images on today's agenda are there any questions. Thing no questions these. The. So as we need to is for service work for services here. I thank. Good morning Dr Childress. Please identify yourself for the record and then Senator rice you're recognized. Sri's charters director division of workforce services. TV Pearson deputy director internal operations work for services. Senator rice thank you of and doctor reparations you're always the great get back at from questions audits thought this might be a good fit committing case they're getting these many where else can you give us of some update on the fraudulent unemployment claims that my understanding is that came just with the pandemic of. Is there any. Status on that you can give us that Arkansas is that I've also I got hit with that in Oklahoma just totally faults in requested something in writing where they have something in my file case right when that but never heard anything back in that was not Arkansas but I have heard some markets could you just give the committee a little bit on that were what we're doing where we're at yes Sir Senator rice thank you for that question and thank you for for communicating with me when your constituents have received false claims fraudulent claims are they suspect that there fraudulent so I appreciate you sharing that with me and giving me the opportunity to talk about it today as was reported in yesterday's committee meeting just for the pandemic unemployment assistance we currently have forty six thousand six hundred and two under fraud review a D. I. S. in that same committee talked about the fact that our systems are hit day I believe that I believe the number was daily three point two billion hits on our systems just within state government so. We are doing everything we can to protect the citizens by putting tools in place that detect fraud so we're working with the our national association and they have what's called the integrity data hub were working with them they are constantly providing us with information and suspected of fraud emails and and individuals were also implementing a new tool that will be incorporated into our system pay you a and you odd that will that help us detect fraud and to stop those payments before they are sent out to those individuals because that's part of the that's part of the the the difficulty is identifying those individuals they're they're real people because they use social so they use someone else's social but addendum find those early enough before the payments go out to those individuals and we've we've worked hard to to put mechanisms in place there are IT systems and then manual systems that make sure that we're no longer sending out checks to individuals that have not shown their ID at their local office. also in the in the request that we made to you today we received funding from the United States department of labor FOR of intake for funding for our integrity and fraud unit so we received Two hundred eighty five thousand six hundred dollars to be used for P. E. you see which is the size is what individuals go to when their regular unemployment unemployment benefits have exhausted and then we also received one point four four seven five three five in funding for our our of. Excuse me going back to our P. U. a system both of these tools both of these grants will or funds will allow us to add to our current systems that we have in place if you would like additional information and specific to what those. Funds will be used for TV Pierson can provide that with for you and I'll be able to I'll be glad to answer any other questions right and I thank you for the reported I am not that just wanted to committee to be a report back to business now we will of citizens and and employees that have been laid off and do funds to get him but we also know that in this band they make it it's been a lot of fraud at their and again I appreciate your work appreciate your response to this thank you madam chair. Senator Ingram I think I have you lived at. Yes thank you madam cochair of going back to the for all of. Or is there any evidence of your organized fraud I mean you talked a little bit about the individual fraud and then you talked about the number of hits that are on the system is there any evidence that there is a organized cyber of security for all cyber effort to obtain money fraudulent leave it may be as part of a of a group and not an individual. I know that when we talk to other states and we're Austin when we also get our updates from now as law which is our which is our nationwide organization for workforce development agencies day provide us with general information about the hits that are being made on multiple states that actually started when the unemployment benefits and the six hundred dollar payments were initiated and in the eight northwest that's where it originated and I think five states total were hit by that Nigerian of fraud scheme on a regular basis we have calls with now as well and specifically about fraud the person is on those calls so she may be able to provide you with more specifics as to how many they have they have discovered that it's it's that is occurring and along with individual fraudsters or small groups within the state manager yes Sir okay I have one follow up real quick could you walk us through I'm sure everybody here is getting the same calls that I am regarding the executive order for the president and the three hundred dollars and of is when was the approval of the does it go back to the retro active of when can of individuals expect that they might be able to receive their benefits. Yes ma'am. Yes Sir thank you senator Ingram just one minute let me get to that information in my folder. Looking for the specific dates So what I can tell you without having the specific date is on August the twenty fifth we submitted our application to a famous for the lost wages assistance program L. W. A. is what we referred but he uses the acronym for that program then shortly after that we did receive our approval when we first submitted the application we asked for three weeks of of payments and so in doing so you do estimates based on individuals that are eligible to receive those payments when the president put out the executive order at that time he stated that it would be for any individual that had weekly benefit amounts of a hundred dollars or more and so in Arkansas are benefits range from eighty one dollars to four fifty one for regular unemployment and then our our base for P. U. A. is one thirty two so everyone that's on pandemic unemployment assistance will receive the three hundred dollar payment those individuals in regular unemployment on P. you say which the pandemic emergency unemployment compensation which is the divisional thirteen weeks and those on eBay which is the additional eight weeks if their weekly benefit amount a hundred dollars or more that I will receive three hundred dollars those that are under a hundred dollars we know who those individuals are and we are reaching out to those individuals to provide other benefits through Tanith through a a program that we're we're allowed to to assist those individuals that meet the requirements of tennis and it's retroactive to August first the weeks that will be covered are August one as of right now that's what we're paying out is August one so anyone that was receiving unemployment on August one and their weekly benefit amount is a hundred dollars or more. More and that a self certify that was covered it was a cover destruction I will receive the three hundred dollars and that is currently ongoing mail people receiving their benefits NASCAR does distribution the distribution of those that we went started last Thursday night or Friday thank you madam culture thank you senator senator Irvin you're recognized hi hi how are you so I just wanted to you know thank you for all the hard work that you all are doing number one but also those of us which me included for victims of fraud through the through the enemy and you and that was so thank you for helping me but I have other constituents as well you know that that were hit is there anything else that we need to do we father please reports as their concert there checking back with me these you know constituents are checking back with me to see do they need to follow up is there anything else I mean I followed the steps but is there anything else that we need to do. When a when a report the fried then we respond back to that individual to let them know to file a police report and then submit that to us once they have that copy of that police report we also give them a document that gives some instructions on what they may want to consider going forward in order to protect their identity so they can go through several at entities that offer identity protection those some of those have a charge some of them do not but I advise and have have already been prior to this produced a padded in and and identity protection I suggest that individuals do that however of an application for unemployment doesn't go through a credit bureau it matches up to the so Security Administration and then it's then it's our responsibility and and that's what we're doing to incorporate all these extra measures to make sure that we can identify that person and make sure that it's a real person that's why we're requiring ID's at our local offices that's why we've done past authentication advance to to verify the ID of those individuals however there are some that get three without without that so it's important to just watch your mail to watch your credit report and to make sure that that they have five submitted it to us in a timely manner because then we can stop it and thank you and can you give us the latest numbers on the unemployment trust fund and where we're at do you have those with you if you don't you can get to send them to me I will send it to him because I don't have that but we were in committee last week I'm trying to remember what the number was as of last week obviously it. Changes daily but I'll send that to you yeah we do we have and it just staff I'm sorry Senate to staff and special and it yeah thank you. Thank you senator Representative fight C. Fite. Thank you madam chair. Here I am I wanted to get some clarification about what you just said about the people who fall in that gap who are perhaps receiving eighty one dollars and then at that and it's below the one hundred dollar requirement you mentioned that you're working with them with getting tennis and other programs will that make them equal to receiving three hundred dollars are or will it not and the other question at that is I was thinking that we had requested some kind of federal approval for that where are we with that. There was no federal or pre approval required for the ten of program that was already something that had been that was available to states through the Through one time option for non recurrent short term benefits those benefits will be at or above the three hundred dollars and those benefits can include things such as lost wages short term rental or mortgage assistance utility your energy assistance housing search and placement services clothing allowances X. center and it will be those services will be available to the to those that are eligible for a ten if benefits they must have they must be and that is on our website at the individual must have a. Have a dependent child under age eighteen and then we increase the poverty limit to two hundred percent so that we could cover more individuals. Thank you that's good news thank you. Are there any other questions. Seeing no other questions thank you for being here and that and answering questions force and without objection those will stand reviewed next item. Thank you madam chair were still in the regular agenda Verona section F. these are the performance fund pay plan homely contracts requests. These are request by agencies to increase spending authority to pay regular salaries extra help in personal services matching warts report on a transfer from the performance fund. There's only one the problem on the schedule on the second page request from the court of appeals for four hundred sixty two thousand one hundred and sixty an appropriation for regular salaries match request says this beneath Ortiz needed due to salary adjustments planned for twenty four court of appeals law clerks. Are there any questions seeing. Sorry about that a Representative Jean I think that would actually be a Representative wing or Dotson. It's representatives from the recognized of thank you madam chair. Could I get at explanation on on this one it seems to my recollection that we had kind of discussed this during budget hearings and is this. That they'd pulled this was this the one I'd pull down during budget hearings and now they're bringing it back. I think that's correct. You you wanna time in there senator. Thank you madam chair. Represented option as I remember that they had the request initially in budget hearings and that what happened right at the time when the pandemic was starting and we'd cut the for revenue forecast it's it's my understanding the bring it back at this time because when we ended the year we actually ended up with revenue that we had expected and we didn't have the shortfall and so this is I think a simple request to what we would have had in the budget hearings. I believe we have some come into the table that might can even help further. Please a state your name for the record. If you push your button is. There you go thank you and Solomon chief staff attorney Arkansas court of appeals Hey. And will you hate your green button. I am so sorry I heard you say that just a moment ago yes I'm reading Gruber and I am the chief judge of the Arkansas court of appeals thank you I would you I came to state your his question again yes please Representative Dotson you're recognized thank you thank you so is this the similar request or is it the same request that we had during budget hearings that you started off in January with making the request and then pulled down or is it less is that what what's the difference here Representative Bob Johnson this is the same request that we made back in January Sir achieve parity with the Supreme Court salaries based on the statute I'm the number that is in the letter for today is somewhat less than our request in January primarily because the months have passed that we don't need a full amounts because we're only seeking to fund this from October to June. Okay so it's a partial year but it it will be an ongoing thing from here on out that's correct and we were we agreed to have in our tech our request tables back in April based on the financial outlook at the time and since then financial reports have been much better than anticipated and so we wanted to have the General Assembly reconsider our request. In what what is the annualized amount the annualized amount is five hundred and six thousand ninety dollars thank you. Read the if you have to allow it they won't let. Senator Hickey you're recognized that this so I just have a question since that's in statue to those employees even though you're getting this less lesser amount you're going to start paying it. Did you did you go back have you already paid them that out of your own money now so you're just saying you're not going to you're not going to be paying for those moments at the same rate that's correct. And I'm sure especially with you all you look at the statute is a statute though. Does it not read that you're supposed to do that. Thanks for that whole time hi this section does say that the seller should be the sign yes Sir but we and certainly if this body would like to do that we would not object to it but I under I understand but I'm just since it's in statute I guess that's the. Is a concern. I thank Mr Jake may have some for that today thank you madam to you may short. Ninety five. Jake plea DFA office of budget so this is a kind of some of I'm not from I'm not aware of any other language in the code that that reads like this P. particular piece of language of the court of appeals contacted our office ands wanted to in effect carry out the intent of that language the issue being two one the lack of appropriation so the court of appeals does not have sufficient appropriation to provide the raises that the Supreme Court was able to obtain and to of we had some concerns about the fiscal impact but the reason they didn't go ahead and give the raises is because they were really following our guidance on what the proper process was we didn't want to go ahead give a raise when they didn't have the appropriation in place to pay that. And and that's fully understandable I guess though I'm just looking at the employee's that didn't get paid according to where they were supposed to in the statute for those months so that's that's really my only. Voter concern I just I don't know why you all on your own. How you all and may maybe will during budget we should of dresses further so it is probably falls on us for not for not going even further in trying to figure it out at that time but since we have a statute on the books it's R. their response to be paid at the same rate personally I think that should be done and and if I can jump in we've had a lot of discussion on this the all of the positions are at the same grade under the class and compensation act I think that's been the process for a long time but of course within those grades there's a lot of flexibility for salaries and the language in the law as the court has been more than willing to point out to me does not say great it's as salaries so we've had some discussions on how exactly we can accomplish that it might involve adjusting appropriations in making sure that there's an equal amount in that salary line for the court and for the court of appeals but it be something I'd be looking for to working with you all under this section absolutely okay madam chair I guess I've been Mr bleed I appreciate that I guess. If the possibility existed we can study this that if something would change before Friday than that possible the ability could be held open okay thank you ma'am I'll come back to you in just a minute if that's okay Senator Hickey yes ma'am Senator Malick you're recognized. Thank you madam chair of. Just a little historical this and I don't know how far back this goes but this is not a new issue I have vested with. Automobiles judges. For a number of sessions and I also went over invested with the Supreme Court back when the of professional Howard real was the acting Chief Justice. And about this the. Discrepancy I think it has put the legislature in a delicate position because they're the judiciary and we're not going to mandates hours what they have to have appropriations. The the argument at different times has been well everybody's the same grade but when you look at the statute there is a specific line that says there to be paid the same salaries but then the very next paragraph says all other employees of the court of appeal shall be of the same grade so clearly when this statute was written there was a a distinction between salary and great I think a few years ago and I don't remember exactly reading just news accounts the Supreme Court eliminated a couple of positions not law Clerk positions other positions and then took that salary savings and just spread it around their law clerks and that. Story. The increase the the the discretion the disparity between the two but you know some may argue that we're following the letter of the law I don't know that we are because there's clearly a difference between salaries in grades but I think it's clear that we have not followed the spirit of the law and again it puts us in a in a in a tough situation because we did have much control I agree with Mr bleed I think we're going to look at the total appropriation for the clerks. And the. And and maybe give whatever normal increase that other state employees get and and limit that appropriation where if an employee from another area leaves they can't just take that money and put it on the law clerks and and we do need to work on that but I think the statute The justifies the request and senator Hickey all agree with you that I think it it it's the that's what it says we're supposed to do we've been put in a tough situation in some ways of but I think that's what we're supposed to do in house support the request. Thank you senator a state eighty nine would that be Senator Clark it is you're recognized thank you Mr up I concur with Senator Hickey and center Malek I don't know what the salaries ought to be. Of and also concur center Malick of that up. You may be going a little further than you did that. The. The. As this is done in the future since the law says they're supposed to be the same. There needs to be a balance from that side that we're not put in this position ever again but it's clear from the legislature in nineteen seventy nine that this is not a new issue and that they clearly intended to settle at the end of and it needs to get settled but I agree with Senator Hickey in center ballot thank you thank you. All right I don't have any other questions so senator Hickey are you want to hold this are you wanton to referring it to a Friday and is due no action today. I'm sorry there you go circuit I have I have no problem with their request right all right all it's a Eight how much difference are we talking about can could I ask on that madam chair. For the back pay. I'm. Zero help me with the back pay amount. Senator Hickey as for the. At the I guess three minds that the law clerks were not making the salaries that were the same as the print as is the cream court it's about a hundred and fifty thousand dollars In an salary appropriation and then a little bit additional and matching probably about fifty thousand dollars a matching okay madam chair I guess my request and I'll be I'll be happy to make the motion for today's request but if allowable that in the event that they wanted to decide to bring that before us Friday that we would allow that the additional back pay if the if the M. D. F. and A work that together and figure out how to do that that will consider it that that part also Friday. We're trying to figure out how to do that just on second. I think it'll be a matter of just taking no action on it bring it up for Audi but they're making sure okay. What is that what we need today so we're gonna hold this. Okay we're gonna go ahead and pass this today. And have the additional request on Friday will that work that's great motion thank you ma'am can. Okay so without any other questions or objections this will stand review. Next item. Thank you madam chair of we're going back to the supplemental agenda for overtime preparation request there is a one is only one quest one request from operations on page twelve or the last page of the supplemental agenda. This is a request for the department of corrections it's for two point five million in a preparation for overtime their quest dates the transfer is necessary due to unforeseen and budget issues that have occurred this year and sponsor the covered nineteen pandemic. Are there any questions. Seeing no questions without objection this item will stand reviewed next items. Thank you madam chair back on the regular agenda this section G. the carry forward report. Special language is included in select agencies appropriation bills that allow the agencies to carry forward unexpended fund balances from generate a new into the next fiscal year the lands requires a port report ale see of the amount to be carried forward from fiscal year twenty into fiscal year twenty one section G. is report of all the agencies that have this authority not every agency has a bounce K. Ford so I will highly agencies have a balance and the first agencies on the next page of this treasurer's office. For county eight of the treasures office the actual funding amount paid for it is eight hundred nine nine thousand and this long to be found toward the bottom of the report in the middle of the page report says the funds will be distributed with the next county a distribution as a distribution adjustment and the next agencies on the following pages page two also for the treasurer's office. For municipal aid at the from his plate of chairs office actual funding carry forward was one point two million this amount will also go out of the distribution adjustment and a little over two thousand remains for warrants have not been process to the claims commission the next agencies on page five that's for you miss. For you a mess the actual key for the mount was five point seven million the report says this but this was funding that was released in the last day of the fiscal year due to the forecast revision and the funds will be requested for reimbursement fiscal year twenty one the next agencies on page ten that's for the state board of election commissioners. For the board of election commissioners actual K. forty now was three point one million reporter knows funds will be expended fiscal year twenty one the next agencies on page twelve that's for the department of corrections. A for the pardon corrections day a county jail reimbursement the actual carry forward was two hundred ninety thousand the funds will be used for county jail reimbursements and the next agencies on page thirteen the department of education. For the predication actually a four mount was five point three million the funds we budgeted fiscal year twenty one the next agencies in the next page that's the department of education. So wrong page fourteen and FOR the Arkansas better chance program at the department education actual amount K. four was forty fifty six thousand according to the report the funds will be used for the school success program the next agencies on the next page page fifteen. This is also for the Arkansas better chance program but is supported by different fund from the last report actual K. forty mount for the section is two point six million these funds will also continue support program and the next agency is on page sixteen at the next page. Department of education rise Arkansas program of the department I'm sorry the case for now was a hundred two thousand and this funding will continue support the rise program take the next agencies on the next page page seventeen Arkansas state library. For the state library the actual K. for the mount was twenty five thousand report notes that funds will be spent in fiscal twenty one the next agencies page eighteen the department of health. FOR the department help the actual K. for now was twelve point five million funds will be used for additions to the trauma system and support for stroke in injury prevention programs. The next agencies on the next page this is for the department of health. FOR the health services permit agency at the health at the health department actual K. for now was thirty one thousand report notes funds are necessary for the operation the agency next agencies on page twenty six page DHS. For DHS aging adult and behavioral health actual carry for now with five hundred thousand the funds will be used to increase grants the senior citizen centers the next page is another question DHS. the SK format was two million the fund will be used to continue operations of crisis stabilization units the next agency is commerce on page twenty two. For the economic development commission ecommerce actual K. fort amount was two hundred three thousand the funds will be used for ongoing programs of the military affairs grant program the next agency is department commerce on page twenty three. For the development commission the actual key for mount was one point two million and it will be used for training projects the the next agencies on page twenty five it's division of workforce services. Department of commerce the visual for services the actual care for now was a hundred and thirteen thousand funds will be used for the new hire ridge the program and the next agencies on page twenty six the division environmental quality. For the queue the the actual K. Fordham out was a hundred fifty two thousand and the justification for knows the funds are needed to cover state operations the next agencies on page twenty seven department military. The department of state's actual carry forward is four hundred eight thousand the funds we use for the agency's general operations and the last agencies on page twenty nine. The department of military in. And for the youth challenge program the actual care for him out was a hundred and thirty six thousand funds be used for general operations according to the report. Any questions. Saying no questions next item. Sorry senator Hickey at INSEAD. Feel turn on your mac I'll flip the on. There you go Sir. Hey you. Give me just a second it was on I believe it was on department of it but I've got to go back and find it there was a couple of those. All have an a. Okay wasn't the library it was the one before that. Speaker. F. C. that they can tell me what pages of. Check page thirteen. Yes that's it thank you okay at at the bottom bottom right there nice one make sure I understand the current status to carry forward funding this is the carry forward amount will be budgeted. In in FY twenty one to maintain the current budget level. So does that mean that we're going to. But I'm I'm assuming what this meeting is that we're going to use that so that that will be part of that budget. It is just the way it's written is a little bit unclear to me. Please state your name for the record. Greg Rogers department education yes Sir that the total appropriation what will uses that carry forward to the budget at the time the the authorized for appropriation. So you're actually if you'd so you're actually going to be lowering what you would normally were asked for by the five point three is that what you're saying is it already is we account for that will get in the Kerry for each year to total budget what is up on on the appropriation so it's a carry for that is usually always in there so it's we don't have that built into our general revenue request is that usually typically what we carry forward. If you didn't have it what would you have to do you'd you'd still be asking for the same amount we have to cut the cut the appropriation would cut the budget you have to cut it yes thank you Sir thank you madam chair. Senator rice you're recognized. Thank you have a a don't know if this is the the best place to. They'll be into this state you're there to stay there to second The last couple my colleagues and they work for me here. expression some of the rural districts. Kids have not come back. Then go on virtual. Ever going back to school. disappeared. More likely parent said go somewhere to get a job. We have schools at seven thousand dollars per child. Is going to have some drastic changes In their budget. And if you want to do this off line I think at some point some other. A legislator falling all of this into my or do if you can direct me who to talk to our fuel talked a on that I would like to know because this is a mandated. shut down the businesses that people have had to leave the state that is going leave some schools with a big hole what are we going to do to maybe keep things flat until we can see what recovers or what the actual figures are going to be and give them time to adjust their school systems. I would you like to handle it. general I what what I can say is that it is something that we are looking at that we've start upon the day to see how many kids are and for those schools that weren't showing any doubt at all are reaching out to find out what's going on there so we are looking at sea and how many have dropped off the went on to fertile and never have signed on so we are looking at that as far as to the foundation funding things this year all the districts will be fine on it because it's based off last year's third quarter ATM so I guess it's time to work with the district to see what's going on where the kids are is a truly drop off is it some that they went to another district or are they doing some kind of home school so we are working with them on that but it's real preliminary since we October first is when enrollment that is actually put in for this year so that we're just now able to start looking and see and how much have dropped off so we are working with him right now okay was what you're telling me the deadlines that have been yes this is the October first there is some fluctuation there with this third quarter figure that not one on lock them back when we know that they're in a debased often Roman third there was some changes in that and then we know that October first when the certified date if one Rome it is turned into us that we can start looking at that so. Right now I just I just don't know and so but we are talking to the superintendents and we are we do know that is an issue with them that we are looking and see how much of an issue that is with and see what we can to appreciate that us popped into my colleagues it's only education the committee and and and those but it's a serious thing and it's it's something that was changed Government did this and you know it would regardless of we're dealing with the pandemic but it did it but some some holds it we're going to have to make some corrections owner give them time to make correction thank you. Thank you senator are there any other questions. Seeing none none there's no action needed for these some next item. Thank you madam chairman I move into the month reports H. ones rainy day fund report and it shows the incoming distributions as of the end of August the last able the bottom the page shows project distributions in the fund balance fourteen million sixty four thousand eight hundred forty seven should ails the approval on Friday today's rainy the release for the department of corrections for chillers for that unit the new balance of the three hundred thirty thousand less leaving a balance of thirteen point six million. Next item is for the budget stabilization trust fund it's report that shows cash flow loan throughout the fiscal year as of the end of August there are twenty three point eight million outstanding loans and the cash balance is a hundred and eighty point four million. Next item H. three is the tobacco settlement report this report gives a summary of income fund balances investments actual payments the state and on the second page all expenses by fiscal year. Next item H. four is the state central services fund report and shows the fund balance and disbursements as well the expenditures of each agency supported by the fun. The next item H. five C. cares ACT report and it shows deductions from the one point two five billion cares funds and steering committee recommendations pending governor's approval as of the time of the report. Manager those all the month reported today's agenda. Representative Dotson you're recognized. Thank you madam chair My question is on H. five with it's forget how many pages back three four pages in under the Some of the remaining fund balances by project. It looks as if Some of the money is being spent but some of the money is not being spent Particularly. under the department of health of anybody's here to to be able to speak to that. Mr Jake it looks like you're back up. Please state your name for the record. Good morning I'm Elizabeth met I'm the secretary for the department of inspector general and also serve as the chairman for the cares ACT steering committee and do you need Representative Dotson to restate his question no ma'am I heard the question and this is something that we have been looking at as well and and I appreciate the message when you presented the report that that the information is accurate as of the date that the report was. Turned and we did have a meeting last week so we have some additional funds which have you've up you've seen today also I have been in contact with the department of health and the department of Human Services the department of agriculture. I think those are the most of the departments that have outstanding fines. I'll start with department of Human Services some of the grants that they received had time limits on the applications so they're going through the applications to make sure. That the funds. That they think they're all remaining funds try to get try to make this easier they do believe there are remaining funds what they're doing is making sure that all of the applications get processed they're obviously there's a there's a process of all of this that it got applications they have dollars that will be expended and then there will be some dollars that are that are left over that will come back into the fund. We do know we have about eighteen million coming back from the Arkansas ready for business we have you'll see some funds identified on their specific number example would be from the foster care grants there was a hundred and twelve apartment hundred and twelve thousand that is being returned. so I think the question specifically had to do with the department of health and I did speak with them about the recall their request my understanding is that there. In contract for the items that. We have a offered the funds for made the funds available for and that that contract payment times just have not yet occurred so the department help may be able to explain that a little more in detail but that was the information I received they will that I did ask for them to review the funds that we've. set for them and that had have been appropriated and there they are doing that but I did get the indication that they've committed the funds does that help to answer the question that that's that's helpful and then specifically on this one's under the department of finance administration the four million dollars yes four as the sea tech yes the search yes you're right and that is the contract for and see tech and again it is a contract there in contract with in the time period for payment has not yet arisen okay seven one on the funds have been exaggerate we are utilizing already we've been utilizing the services of sea tech and they have been very helpful and they are developing a program for us to be able to process the funds and and assist in auditing and ensuring compliance with those funds okay thank you you're welcome thank you Representative Dotson I. Six ninety one is that Senator Stubblefield. You're recognized thank you madam chair. Of. Is there someone who could give us an update on the contact tracing program. How well that's going. But I believe she's coming forward now. Telling you can stay up there's the more that fled at the moment stay. Please state your name for the record. Good morning Stephanie Williams chief of staff Arkansas department of health Senator do you want to restate your question for her I was just a just to ask if you could give us a brief update on the contact tracing program how much of that moneys been spent how much is a still left in the account yes Sir and let me I'm sorry ACT obviously I clicked off my phone I didn't have the foresight to pick up my funding spread sheet on the care spending some having to look at it on my phone and currently we have committed well. Of the contact tracing funding we have a total of thirty eight million four hundred and thirty four thousand two hundred and forty eight dollars we have committed twenty three million sixty four thousand four hundred and ninety seven dollars so far and the total for the remaining funding balance available is fifteen million eighty seven thousand nine hundred sixty six dollars. For contact tracing. And so we do have the to contract vendors General Dynamics and A FMC both are pretty much completely staffed eight MC is a little bit below their complete staffing for contact tracers is three hundred and fifty eight am say I think it's just below that I think General Dynamics is right at three fifty so they are pretty much fully staffed and operational at this time so with that we have around six hundred six fifty total staff working on the contact tracing age yesterday it's over six and all those predominantly in. Are they spread out evenly on a predominantly northwest Arkansas or in Nasser day's effects are primarily working on the phone and they're covering the entire state is so so we have statewide coverage required for both of those vendors and they are actively working cases across the state they also have Spanish speaking individuals that are employed by both companies Marshall Islander is employed by General Dynamics and I believe one by if MC as well and then we also have the northwest Arkansas council which is a doing work specific for and the Spanish speaking population and Marshall islanders and they're targeting seven counties Washington been yell Randolph independence and severe I believe are there there county areas and so they have contact tracers as well their numbers are not as large they have. I can't give you the exact number that they have right now I actually have them grouped with you I MS in my master spreadsheet so I'm not exactly sure how it courses that out but you I MS is also doing contact tracing for higher ed and for that whole group of UAMS the UAMS main and then the you I miss northwest it's working with the northwest Arkansas council they have ninety eight contact tracers currently employed do you have any idea about just how successful those programs have been within the Marshallese and on the team communities is forced the individuals are tested positive before these contact tracing contract for approved to up on the numbers getting better. So as a result of this compact rations so I think we're seeing improvement there with awareness in the Marshall island community A voluntary compliance with the public health request for quarantine I think that the UA mis northwest would would be happy to give a more detailed report and speak to the specifics of what they're doing I don't have an up to date report from them and they are providing those a but I apologize I just don't have it with me at the moment so I can't speak to everything that they're doing but they are working actively in those communities. That thank you Mr chair. Thank you thank you senator senator Hickey your lips. Senator Hickey you're recognized I thank you thank you madam chair of miss Smith. This so this will be for you mines going to be in regards to this two hundred fifty million up and I'd look back on a text I know that this started I believe in may and I believe that I don't believe I know there was a lot of members of the legislature and then also of the governor's office to that that two hundred and fifty million that we would actually provide a floor back at that time so that two hundred and fifty it looks like they were all the way down to yet give or take a few million dollars there but out of that one point two five billion is that correct yes okay and I know at that time of course there was members that were hoping that we would get the floor at three hundred fifty million it didn't work that way and that's that's fine and I see on this sheet here that we have a research you know in the event that it was if there's a resurgence this fall which that was one aspect of why we wanted to have the flooring in. But in the event that we do not have the flooring in. As the committee discussed what the main intent to do with that money at that at that point we'll be. House there's been a lot of tall. That at least some of the legislature would want to try to replenish the unemployment trust fund this got drain during this pandemic. So can you give us some ideal were hit with that because I know there's other requests that are floating around out here in this legislature and I'd just like to know give give some direction on that certainly Senator Hickey yes the committee had decided that we would set aside that two hundred and fifty million it was upon the request of the governor and I know that you had made that request as well and but the committee decided as a group that we would set that aside until October and in fact we had a question during the committee meeting about when are we going to get to talk about this and how are we going to allocate this and other members joined in and said we're not talking about until October first so we have not made a decision we have not discussed that amount we agreed we do not want to exceed the floor I think that's a good way to put it we did set us or allow a hundred and fifty million to the cities and counties so a lot of funding that is needed is going directly to the cities and directly to the counties so that some of the needs. that that we've been made aware of will be addressed through that Avenue and then as I mentioned earlier we are going through to check on. Every allocation to see if there's anything that's going to be left over. So that we can bring those funds back in thank you have a follow up madam chair you're recognized hello I'm I'm just more. I'm not trying to put you on the spot but do you have the feel from the steering committee that that trying to reimburse reimburse at unemployment trust fund is something they want to do. With that two fifty I think that some I think that some are interested in that and I've received a number of letters and requests regarding that so and I know the. I mean I know that is an interest I know there other interests as well so I mean I can't I don't. I don't control the body and we have the membership and what what the way we the way we we work is we work together come to a decision to make a recommendation to governor had to send. And then he approves the wrecked recommendation or not. And then it comes through as a request on behalf of the state right and I think it only makes sense of course in. November thirtieth third December six if we were to start having some larger resurgent this resurgence of this what we're dealing with here that of course the money would be used for that yes but I guess the membership. And everybody in in the public I want them to understand that we have reduced that unemployment trust fund with all of this to a point that I'm going to make an assumption that we would have to raise those rates on all of our businesses across the state so we're always wondering how how do we how do we. Not pick winners or and losers. People across the state that have those businesses they will all be all be affected if they have those employees so that's going to be a way that we can do it and not have to go into a bar that money from the feds and have to raise those rates and repay it over time so I hope that that committee at least the How it considers at thank you and we are aware there are deadlines to determine certain amounts of the fund and so that's what we're trying to look at us as well so I appreciate your okay and I think all thank you for all your work that you've done on that steering committee you and the of course of not to try to do all the legislators I know that to send Irving's on it and Senator Wallace senator bond in. I'm not will try to try to get the house but I do appreciate shall thank you so much. Thank you senator Representative rye you're recognized. Yes thank you madam chairman you know about two months ago on the northwest Arkansas council you know there was a request for seven million dollars and then approximately a week and a half later there was a request from the health department FOR six million dollars just wonder did was that money turned back again or what exactly what happened there I think that act I can I Stephanie and to speak to that I'm not sure there were I think I think they're the two awards for the supplemental funding request for here spending we came forward with a request for sixteen million which was a prairie which is reflected in the amount that I just Just stated for contact tracing so that's where that funding and is being utilized and then the seven million for the northwest Arkansas council proposal it is currently being utilized to support their efforts with the Marshall islanders and the Spanish speaking community so both of those funds are currently being being expense. Far place of but you know Johnny he was here from the school system and I know it by about a month ago you said you know there's gonna be thirteen million left over that would be turned back in and that you not to schools needed extra funding you know that that we would try to go in that direction with it at that time. I'm not sure that I'm familiar with the fund that secretary key was referring to a. On my Centerville okay There are other portions of Kerr's act funding and I don't know if Mr bleed with no Johnny he referred to some funding. I don't know that we know represented thrive can it book with this be something that we could do off line since they don't have it right here right now with that be okay for them just to get back with you thank you Sir thank you Mr chairman. Senator Irvin you're recognized. Thank you I I really just kind of wanted to add a little bit for what was being talked about and said that the last carriers meeting one of the things that's important to me is one that we have that two hundred fifty million there and that we didn't touch it so there's been some confusion questions you know was the one hundred and fifty million in addition to the two fifty and that is true thanks so folks understands the one fifty million was recommended back in the beginning of the summer and then we've worked with them to create the strategy of how that can be expended in a lot of the proposals that were beyond submitted to our. Kerr's task force really could fit under that structure and we felt like that was a better use of how you can use that money but I think it's really important for me those of us on that committee not to death go in the hole but and to not touch that two hundred fifty million because we were very specific about that so I just wanted to add that because we're at that point we were having to set priorities and any money that we expends going Ford would have to come out of what is being turned back if that makes sense from that's not being utilized so we're really happen to watch the dollars right now and and I think that's really important for us today because I know that there's legislative triggers that do you and able those rates for the unemployment trust fund go into effect at seven if if the trust fund I believe falls below seven hundred fifty million dollars I think those triggers just go into effect immediate automatically and we are currently below that seven hundred fifty million. From my understanding of the last check of the numbers but so I just wanted to add that for people's benefit because I think that's where it to that point of really trying to set priorities sin watch how things are being spent and I do appreciate the work that I've been able to do with you all thank you all thank you. Thank you senator Irvin so I have a question because I had some people ask me because the appropriate the cares act request is not here and that's the parks and tourism the fifty million can you tell us about the where that stands and FOR we're out on that yes yes in fact I did receive a call this morning from secretary Hearst regarding that and they are one they are planning to go forward with that request they are just trying to make sure to have the rules in place and a lot of the details answered and ironed out prior to bringing it forward because she felt like they would be there are some items that the legislature will want to know question jewel out thank you so much for are there any other questions seeing other other questions thank you all for being here today. And no actions needed on this so the next item. We're down to other business so and we know that we've had several people reach out to us as cochairs. with concerns about the insurance and the retirees and how it was done and what's taking place with that I we invited the E. B. director and secretary feature to be here today this really probably is not the appropriate committee for the S. and we realize that and and we we hope that the insurance and commerce will take this up for further review or even the retirement committee but we wanted to get give you all some time to be able to ask questions to hash out and stuff so that you can better informed your constituents and so we want to thank you all for being here today and hi Mister feature would you like to open up with not an opening statement. Yes ma'am thank you madam chair and members of the committee you have to hand outs in your packet I believe under I am I in the attachments any one. Front and back so just so you know it's in your packet it's one page I just wanted to walk you through the numbers just for your information as we're going through this plan we have the it says a C. which stands for Arkansas state employees plan side by side with P. S. C. the public school employees so what we started with with the actuaries and June was a forty nine point seven million dollars projected deficit for state employees for next calendar year. An eighty million dollar deficit for the public school employees. What we have what the board has voted to do and to implement going forward and calendar year twenty twenty one are the items listed below that and I just wanted to speak show you exactly and explain what each one of these are. We have first allocated assets and this was where we are easing our reserves the at we will use the entirety of it in twenty one which will be the fourteen point five million and the fifteen point five over on the public school employees. The program initiatives are any plans savings that we negotiate with the provider. That will net four point two million and five for the state employees and five point five for public school employees. And these are projected numbers by the actuaries we've of course not actual numbers. We have five percent contribution increase for the state employees only and that brings in three point five million. we're estimating at two percent migration from premium to classic which is just an average of the last few years and what happens. We are increasing the state funding as is that far as we can by statute we are going up to the maximum amount of four fifty per person. That brings in twelve point two million for state employees. Then on the public school employees side the department of ed finding is increasing by twenty million dollars going from eighty eight point one two hundred and eight point one million. The wellness credit across both plans will decrease from a seventy five dollar per month credit down to a fifty dollar per month credit I will add that when looking at surrounding states and throughout the nation the average discount for the wellness credit is around twenty five dollars. So this brings sand five point eight million on the state employees and ten point nine million on public school employees you can see after doing all of that we're still in the red on in both columns. So the decision was made that I believe we're here to discuss today of the retiree Medicare eligible pharmacy benefits. If this is discontinued it's a thirty eight point two million dollar. That for the school state employees which brings us and to A twenty eight point seven million dollar gang. there there is still on the state or the public school employees we are still in the red there are some initiatives we plan to implement this year such as the pre payment claims review which there's estimates of that it could possibly bring and up to fifty million were not counting on that number but we do feel like there will be savings implementing the prepayment claim review. You can also see on the backside of that we did a ten year retroactive look back at the contributions from the state the district on public school employees and the state contribution for state employees and we also shown in the bottom graphs that I'm sorry in the top of the rate increase and you can see over the last eleven years there has been small increases many of those years had a zero percent increase. And then on the bottom columns you'll see the funding percent which is per allocation for two two thousand nine to two thousand twenty. So I just wanted to go through that information with you so you have the full scope of the issue and the problems were looking at trying to. Fix in twenty twenty one and with that we'll take any questions. Add seat number sixty eight is that you Representative Bentley. You're recognized. Thank you chairman thank you a. For bringing this information is very helpful for us to look at that can you just real quickly go over why were where we saw such a decrease were the negative forty nine point seven million and the eighty million I miss that can you just briefly say we are and premiums gone up so we're we're getting the negative from. Well a couple of things we've had a reserve fund that we've been relying on the last few years and that will be depleted and twenty twenty one as well as increased medical costs we seen a huge spike from two thousand eighteen to present time on the cost of the medical care. Again maybe some members don't understand that this is self we're self insured that's correct record just did that for some of the members that may not know that were self insured so if we're looking at this in with we're looking for the state employees and if we do this retirement pharmacy change you gonna have an increase have we considered possibly giving a twenty five dollar rebate to cover the cost from because when I'm here from constituents is going to cost of twenty five dollars a month to go on the pharmacy D. the Medicare D. plan to be twenty five dollars could we consider giving them a twenty five dollar rebate to cover their costs of was going to cost them to transfer over. As I understand it there's around twenty seven plans they can she's on Medicare part D. E. starting with that zero cost to the member up to I I don't know what the highest plan costs. Regina that state name for the record please not not to correct but we we it would be considered basically a stipend or reduction we can't use we can't give a rebate back but as far as overall when we look at the the average for a is sees about one seventy five and sixteen cents it was not factored in with the current negative deficit but we can surely look at that. I'm sure the all of mine thank you chairman was one more quick question all of my colleagues receiving numerous emails and phone calls from folks that are very concerned have we told them before now so I didn't just. I thought none of the men may have been made aware that the funds have been decreasing the costs are going up so affect my constituents or feel like they're totally in the dark as all of a sudden things have gone down hill so we made it attempts to engage them in the past so let them know the directory where we're going in this there is a retiree seat that sits on the board and represents all of those sixty five plus or any of the retirees and we have worked with the state employee association as well our boards are open of course meetings are open to the public and we do put public announcements out on those. Okay I just would really consider us looking at what we can do to adjust their cost to at some point if we're gonna force in twenty eight point eight seven million dollar pot you know in the black on this that we help those folks out with the money is going to cost them to get those. pharmacy plans through Medicare. Thank you a Representative Bentley I don't know who's in seat twenty eight. A this. Senator hammer you're recognized thank you madam chair it's chair would allow the member that's of the board that represents the state employee the retired state employees association would be interesting here what they have to say about the meeting chaired Lao but my question shall would be this whatever options did you all explore before the board made the decision. To go with putting their retirees on the plan the and did you consider asking the employees that they would rather pay the increase versus the cost of the planned the itself. We did not ask him that question Senator hammer the actuaries have estimated that if we did a percentage increase in their health care versus taking away the pharmacy benefits it would be around of a forty percent increase in their premium so we did consider other options that Milam and gave us numbers for and increased increasing that deductibles was one thing their out of pocket expenses eliminating or modifying health care benefits which we did not do they'll still have their same health coverage with all the benefits remaining. Or removing that out of state higher costs that when someone goes out of state there there is going to be higher costs to the plan. But the consideration of our border cities and and the impact that would have their or someone's going for specialized treatment at somewhere like and the Mayo Clinic or something like that that was an option that we didn't feel was a good choice. I'm just curious when it came to the individual represented the retired employees. What was that individuals input into this conversation because like has been echoed already you know we're getting a lot of emails and and some people you know our our state is going to bankrupt them because of the cost that it's going to take for them to continue you know the drugs that they need even for cancer patients so I'm just curious what was the input from that individual. Mr hard Scott is the representation on the board for the retirees he did make some comments during the discussion part of the board meeting Senator hammer I do not remember all of his specific comments but on the vote it was a unanimous vote and there are no dissenting bets okay thank you Mr Senator hammer us to the first part of your question we again do not feel like this is probably the correct committee to just do a back and forth so we suggest that you reach out to your insurance and commerce chairs and us try to have a meeting for we can hash it out even further with other people at the table. Does that satisfy you Sir thank you senator Malick you're recognized. Thank you madam chair. Mr let me make certain is that uh and we have we have talked invested in and you provide me some information but on the sheet that you painted out. The L.. Even though at the bottom of the first page the the percentage at the employee has paid is change both first public school and state employees but at the top. Were there actually no premium increases except for the couple of years stated. I believe that that period in time director how it is that that's correct there were no there were no actual premium increases during a few of those years that were noted that's when they had a multi plan system and they would reset so they had at one point we had For up to five different companies that were actually selling the product or actually doing that third party administration so when I can't say because the adjusted premiums up or down that that would be a rate increase or decrease And and and up. Now I understand up I was in a two hour meeting at my employer yesterday with the looking at a twenty five percent increase that but then we we make a lot of changes and we still end up with an increase but it's something less than that what what is the current deductible or is it different on different plans within the system now it is it is different between the two for state you're looking at It would be five hundred and a thousand and four public school it's seven fifty and the house and and I'd say from from an industry perspective that's very low. And I think what we've got to move toward is. An incentive for employees and retirees to help manage their healthcare cost of they will look at an HSA. But we do have to cater to qualified plans but is it still with the option of I guess the option of the employee rather than a pretty good incentive to move them to an HSA from a state from the state perspective depending upon individual and family there's a of a twenty five and fifty dollar a month of funding that goes in for an HSA for any state applicable right I don't have the accurate to date numbers but on average we average about thirteen hundred of the plan eligible that actually participate in that a year. That's a pretty low in the end let me just conclude with this because I know there's a lot of the questions the biggest issue that health and I think. Many of my colleagues have at I don't know you stated that notices put out there but particularly in the. Environment that we're operating under now with Kobe nineteen and doing soon meetings all that without really having had a series of public hearings even if not required but public notice and public meetings for people to come and and for you to explain some of this instead of folks just getting hit and then be within you know a couple months of an open enrollment period that they've got to get signed up I wish there was some way that we could survive another year to we get into session and see if there's something that we could do legislatively I'm surprised looking at these numbers that we didn't continue to hold more of that reserve over the years instead of eight into it and then you get hit all of a sudden but there are people again you know some will be okay a sum that have high prescription usage or some of the specialty drugs that may of retired with the final three average of thirty five or forty thousand dollars our goal really be hurting and I wish there were something that we can do to help them and I wish there had been more notice and preparation for that anyway thank you. Thank you senator MALOCH senator. Ingram you're recognized. Thank you man cochair act could not agree more with senator Malek it's not necessarily the the ability that the to cancer drugs and make them affordable up would you break out but you don't have to if you don't know it off to appear here at your cost on hospital versus doctors persons pharmacy do you know what year of your your claims cost are almost three. I'm as far as the. Yeah you're is centers or you wanting that for the the plan as a whole are you wanting that for. last year we spent to us around six hundred and forty three million combined between the two four. I can give the fiscal year twenty up through July thirty first. we have spent. On just the active population a hundred and fifty two point four million on a Essie and on the retirees. As a whole. That's not what I want I want a percentage of the whole these quarterly resentful I would ask if you can get that I cannot I gotta say up missed have like Senator Hendren I worked two years ago on a plan that had the potential sake sixty million dollars out of this program. And. We worked on it for months with you and then the procurement Mister Bennett and we finally just gave up because it was the most frustrating thing I have ever done in government because no matter what we would bring forth there was an excuse there was a of a problem instead of working with us I think I can speak for senator Hendren it we felt like that we were being worked against but the potential savings on that plane with sixty million dollars and we wouldn't face will we were today I truly believe if we've gotten some assistance so I'm ACT echo the senator Irvin all the stuff should have been public we continually of you know we had a problem with teachers of with with the with with with that point in two thousand or was it Jimmy on that nine percent raise. Thirteen and fourteen and the solution then was to we didn't make a whole lot of changes the plan to the solution then was to just go over and get forty two million dollars in writing day fund to fix the problem in distress and what the problem was so I I'm very disappointed but not surprised to where we are now thank you the manager. Thank you senator Ingram senator rice you're recognized. Thank you and to. Senator MALOCH covered it will. But let me ask you this from a self. Insured plan are we were not required to have a certain amount of reserves held you said we've spent the reserve. Was are certain amount that was supposed to be held by law what we are not no Sir when I arrived in sixteen I saw that we on average kept around ten million sitting over into what was considered a catastrophic fund in some better year from sixteen and seventeen and part of eighteen we were able to amass right at about thirty five million on a is see in eighty two million on PSE and through that in those reserves The part of that is a catastrophic fund and it's kind of like a reinsurance or stop loss and is so I'm had in a line item created that allowed us to have that set aside that couldn't be touched in the event that we would run into a catastrophic situation with claims in that does exist As far as reserves the methodology that's been that was adopted by the board some years back was to take any extra cash flow in that year and allocated fifty thirty and twenty for the next three years to pre funder forward fund any of the of future premium costs for the plan and FOR claims and we've we've done that are claims cost around August of eighteen started double digit increase and which isn't always on heard of but we have had many months of that in our claims run around eleven percent more than the year over year so we've eaten into those reserves and that we find ourself making these decisions I will know we did the board did pass a five percent rate increase on state employees last year and the utilized a little bit of the catastrophic prisoner. And and learn this echo water but may is when I'm talking to retire a. And I and I this is one of my biggest of. Things that that bothers me the in in VA we promise bit manner sign up we're going to do things in state employees have the same expectations and then we can't stair step this over a period of time in the hit some all at once and they don't have the option to shoveler budget even is bad is is when you work and wrote a check you get it check out of it that that that it's tough not saying that five percent not tough but you've got income company and and and and hi this field for those I know you do too not saying your art art. But hi I wish we could find a plan B. R. C. that can be done over time and again I'll echo that in the climate worry and this did not have the discussion and when you put stark reality in front of a board or commission it's and it doesn't surprise me you got a unanimous vote but they didn't hear what we're here. They didn't hear from the constituents and they needed to then they need in you know there's some good ideas come out of this butcher Watson while that people don't think about so we need more input on this and not just black or white it's this way or nothing in and it affects the somebody asked me Sir will have many is it out and you know I mean it is I really don't care I mean is you see the right wrong if we don't give them some. You know how many people this affects that it changes daily basis based on people picking up coverage dropping coverage the number that I had a couple weeks ago was thirteen thousand eight hundred and forty five people it would affect I'd seen some wordpress and I thought ten thousand or so in that probably where that came from somebody that I one of my colleagues didn't think it would be that I had us believe it is and again I. I'm willing to meet and do whatever we can if there's any way you've looked at raising deductibles A you know and again they all understand changes have to be made but is there any options that's my question thank you thank you senator rice senator Irvin you're recognized thank you and I I want to thank you for the emails that you sent me I haven't dug into them completely but a little bit along the lines of what senator Ingram was discussing I don't see any thing on your list that talks about procurement and contracts so I know that you and I would like a single page list of all the contracts that you have entered into with these different groups because I feel like these companies that are offering you these quote unquote solutions. Through contracts are eating out more money then that the people that are actually providing the services which are the doctors the hospitals and the pharmacists and one and that bothers me because we are a legislature and we are trying desperately to build our economy in the state of Arkansas and so when I read this proposal from catapult health and I'd like to know how much detail enter into that agreement with them. Their bill is an in network provider. Okay and how much is that of right now it's one eighty for the full checkup hundred eighty million hundred ninety dollars per. Hundred eighty dollars per person per checkup yes ma'am. Where an average Okay about about three hundred and sixty. No I'm talking about did you contract with this company no ma'am they bill as an in network provider claim. Okay so but there were two there to where they located. They are the main offices in Dallas now and okay higher all the staff local for in state the use in state services Senator Irvin if I may um you no one is required to use catapult they're just an an entity that comes out at times and works with the employees and and give the discounted rate but no one is required they can also do the wellness check up with their doctor. Correct so which is they're they're basically trying to replace brick and mortar checkups which I don't know about you all that I represent the state of Arkansas and I represent the people that do have brick and mortar. Businesses in the state of Arkansas I mean the last time I checked I don't know about any of y'all sitting here to you all represent people the state of Arkansas who actually our businesses in the state of Arkansas that are brick and mortar businesses I mean I would prefer for us to use our Kansans and supports those businesses that are throughout the state of Arkansas to because how else are you gonna build rule Arkansas if you replace them with Dallas company. You're not gonna find doctors and nurses and pharmacists in rule Arkansas I have a real problem with this senator Irvin the the the basic point that cannot pull was voted in as to be utilized as an in network provider was to fill part of the wellness requirement from work site will check up verses individuals taking time off work to kind of meet them where they are the premise behind that is they do the a lot of the same from my lab work in the other pieces they roll that information up they provided to the patient it they ensure that the patient has a PCP our primary care physician private I ran it they don't really referred them to that they want to replace them I that's she I don't intend that ma'am but they send that information to the physicians it's part of the process and if they have other disease states and different things that they when they meet with those individuals they will send those individuals referred them to their primary care okay well again now the wellness part again I would like how much are we spending in contracts for the management of this plan that's those that's the information I want to know how much and was there any negotiation with whoever is managing this self funded plan and if we look at other insurance companies as alternatives to negotiate a better premium. Was this just based on what an actuarial reported and I'd like to know how much in administrative costs are we contracting with the people that are currently managing this plant was there any negotiation and that and then how much you are contracting with the company to provide the wellness portal website which ask questions about what church you go to I'd like to know how much money we're spending and all the different contracts in order to manage this plant and the procurement process and that. And how that was affected or discussed discussed. As far as what you and senator Ingram and referenced in twenty eight twenty supporters of twenty seventeen we started looking early in seventeen at the health plan I came in in twenty sixteen we assessed where we were looked it low hanging fruit as far as opportunities that can enhance the solvency of the program but as we rolled rolled through we saw were there were about seventeen individual contracts at the B. D. had entered into and in that process we slowly started stair stepping those back when we could do that one either in house other state agencies or other state group that can assist and we developed an R. F. P. with the which is which I've testified before several committees for that was a bundled service contract we took five independent vendors the provided services that were competitors in the outside market and we expect them to come together and play nice in the sandbox if you will so what we did is we took the actuary actuarial EAP claims as well as the overall network and we did a bundled service contract that was competitively procured to the art of peace process and that went into effect one one of nineteen that contracts saved around five point two million dollars. I'm by bundling those services or was in the degradation of service and it was it started out between five competitors and it ended with to health of managing at now where the two and when we look at the overall pricing was the the pieces set apart and health advantage was awarded that and we are in year two of the three year deal it did start one one of nineteen. And in that process I can provide you all the data and provide the committee the data associated with the with the dollars and cents. Okay I yeah that's what I would like to know is is so we went from seventeen contracts and then down to just one. A bill a bundled service contract for the administration okay and then do you and then the and and I know that this is probably more for insurance and commerce I appreciate the latitude madam chair I'd also like to understand how. Is it being utilized right and so do we have do you get reports back on it whether these people are utilizing the service utilization review remiss within thirty both proactive case management yes I'd like to see that and and like I said the money attached to the contract thank you we get that information to our staff please and he. You will directed out. Si eight four would that happen to babies Representative payee yes McCollum you're recognized thank you madam co chair A we've been hearing for many of these fourteen nearly fourteen thousand constituents and some of the the words that I'm hearing there is that this is drastic and unfair of a lot of the questions about the process as some of my colleagues have talked about today several constituents of talked about hello this is not just an inconvenience but this is a death blow that they get biologic chemo and that Medicare will no way no how cover that and that there. Last resort was just put down their letters or whatever that you however you guys contacted them and just wait until they took action to call some of us so it's my understanding and my question it's my understanding that usually it's the practice annually of the benefits subcommittee to recommend plan structure in premiums to the fifteen member board so my question is did that process happen this time. There was not a recommendation from the benefits subcommittee there was information provided to them online the stability of the plan and some of the options that were available to take there was not a recommendation from the benefits plan and one other note that I wanted to add that I did not say when I was going through the plan earlier is the public school employees Los this benefit in two thousand seven for the pharmacy coverage for the sixty five plus retirees so they've been without it since two thousand seven. Thank. Thank you is that your last question I finished okay. Seat thirty two I'm not sure is that of represent Collins you're recognized thank you would it be possible at this point to change course and to get the board back together we have the open enrollment period starting October it would not be too late for the beneficiaries could you all do that and give us some time to figure out a way to provide some additional funding into this rather than run this thirty eight million dollar surplus could that just be done. There is the option of going back to the board and presenting other solutions so if this body were able to find the money to supplement the plan understanding that it would be a one year supplement and we'd be in the same boat next year unless healthcare costs decrease but we could certainly take that back to the board and ask for another vote on it well and the follow up of course we have I'm sorry such the actually it is it's twenty eight million dollar surplus right so we would need to make all of that up at this point there's no need to really run a surplus if it's not serving the beneficiaries of the plan. I would say the the the surplus would be used to replenish utilize reserves and the catastrophic fund if you use that dollar amount down to basically zero not please keep a surplus. if claims cost for to go higher I have to come back and ask for more money in that sense or find another Avenue to it so that those reserves or what kind of ballots the peaks and valleys in the claims utilization. Service a typical surplus twenty million. Generally in our in our better years in the last few before claims one up we would have thirty to fifty million in reserves at any one time Sir in association with cuts like this. Thirty eight million dollar cuts to prescription drug benefits to have the twenty eight million twenty eight million. Would be about ten days fifty about. Ten million we would burn up about three weeks number that I'm I'm asking do you cut to achieve the surplus the cut in this manner to achieve surpluses like this that's your typical approach. We look at we did an internal look the as you've that sheet flows down we always look internally and we look at it um program savings and other things so yes Sir we we would look at that we're at a coverage consideration the coverage criteria the coverage policy and that all the other ones would surmise to temperature each of them would be ten fifteen percent of that total so that would have been the next step well thanks I appreciate your willingness to let us know that it can be changed and also sector your responses to me thanks. Thank you senator Hickey you're recognized thank you madam chair I guess and there's two columns on the sheet of course we've been getting calls with the state employees but I can't help but look. And probably nobody here wants to discuss this but now is the time public school employees our baseline only it is a negative eighty. And of course we haven't had any increase in at the bottom were still showing a negative twenty eight. Anne eight million so. Is the. Second line the current your twenty twenty twenty twenty one allocated assets is that the reserve this coming out. So that is the reserve so we're taking taking money out reserve and we're still in negative for those what will happen I guess I'd have to say and I'm sure you'll agree that now is the time to be addressed in this because how how we're going to make up that cash flow for this year this negative. From a self funded plan perspective you have the inflow would your funding contributions your outflows your claims experience so you have to have an increase of one and a decrease of another or both I understand but. But as far as what Joe or estimating it's going to be in the negative for is that correct it has that potential yes Sir we're looking at other initiatives looking at claims the pre payment claims review and other pieces to be able to ascertain other funding sources to come in to the bride and and then you all did did discuss this with me and a couple other ones and and and had a good discussion on it but you know I would also say in a kind of heard what senator rice and senator MALOCH exceeded you know from what we're seeing here with these trends and again with the show in the negative twenty eight million they're not a drug not. Really addressing it as far as the employees this year. You know I would think that and now may be the time to start having those meetings. The the shoe disagreeing there some other there some other large plan out there that I that I don't understand. We do not disagree with you senator Hickey Part of the overall look in the decisions that were made was based on trying to bring equity to both plans will never be completely equal because they're two separate plans however historically in two thousand seven and two thousand thirteen the public school employees took a much larger hit then the state employees right and I do understand that I'm just I'm just looking at what the real numbers are here that you all provided in it looks like to me that this coming year. That will have an if if all your projections are right which are the same projections that you used I guess for the state employees were all have a negative twenty eight million in it. So. If you're over a year. I don't know how long that can last or how long we can do that but I guess were. I guess my my thought is is that we're actually doing the same thing that we've done under the state employees you know should we not. You know and I understand politically this doesn't sound good but should we not be doing a small increase on them with this at this point or trying to get ahead of this curve so that they're not going to be hit at the same point the way the state employees or that is something that we could present to the board as an option I would thank you all would get a whole lot more calls we will we will but you know I think that we have to be realistic here nobody in this room most to say it but you have to say that. And your joining negative twenty eight million. Whether we like it or not so thank you. Thank you senator Hickey I'm gonna jump senator Irvin to the top because I think Hearn senator MALOCH can been talking about something that might. The helpful and then I'll continue thank you thank you madam chair on the deductibles is that was that negotiated through the contract. The the level you said that the deductibles current deductibles five hundred and a thousand for state employees and then seven fifteen at thousand from public school employees was that deductible negotiated as part of the contract that were in the middle of. No ma'am that that was for medical management certain pieces in for them to adjudicate claims act is that the third party administrator the the summary plan description or any of the coverage criteria is governed or policy by the board okay west was raising that deductible ever considered look that and how much swimming we look at it from time to time yes ma'am Generally I have to go back but generally it's only a few million and would not eat eat at the actual deficit but we can I can get that information to you well I mean at I would like to know that information because I would I mean given the options I thank I think. This is a self insured plan and you give people that are beneficiaries of this often sure plan options and to me you know what we're hearing is I would pay more money in order to keep my pharmacy benefits I mean the majority of the people that are in mailing me said I just want the option of being able to do this or that so I would like that information the second question I have quickly is did you based on Representative McAuliffe's questions about the health benefits oversight committee there was no recommendation you said from them because they did is that because they did not meet or. AS seen this exact presentation is from the legislative oversight committee. The the benefits subcommittee I believe is what right okay now we're talking you're talking about a health benefit a lot committee of the board there was no recommendation from them correct is that because they didn't meet no ma'am they did mate and I were presented the information okay. And and there is there not a legislative oversight committee on benefits. No ma'am the statute says the EBT board and or EBT as a whole report which gives report to the insurance and commerce house and Senate did you reach out to any of the chairs on insurance and commerce the process either one of you about what was being proposed German we did talk to several legislators I'm not sure about the insurance and commerce if if those were part of men have to go back and look. Okay I think that would have been probably appropriate because. I think legislative hearings about this so that people could understand what was happening or why it was happening was really important and and so I'd like to I'd like to know who you reached out to. If there were two or three people that that made this decision on the spot I'm not sure but I think that's important but I'd like to know the deductible and how much that would have saved and why or why not that wasn't considered thank you thank you senator Irvin we still have several people in the queue but I need you to know that there is going to be an insurance and commerce meeting on September the twenty ninth at one o'clock A for this issue will be being discussed further and there is an eleven o'clock personnel meeting in here so if you're on the board and you can't be there that day can you just raise your hand and tell me what number you're in otherwise can the rest of these questions wait till September the twenty ninth for that insurance and commerce meeting so we can let this room go for personnel. The Representative Ladyman you're recognized. You madam chair. Amend. One is that you all have and and and senator Hickey said we we've got to face reality and we know that. in Representative Collins asked my question about timing that's exactly what I was gonna ask you already answered that in center Malick summarized it very well and that we we need to have time to present options other than this one solution so I move on from that but the problem here a systematic problem apologize for this Mike but there's no. Is the second time this year that my in box has filled up with an issue like this we had another one about six months ago. You know I haven't been around as long as senator Ingram Hickey but I'm not as old as they are but. Three but you know. Get blind sided with this these issues and then we get all these calls and emails we've all got these. We need to change the way we are making these decisions and. We we talk about having input. Educating to the people when we make these changes. Well in my mind we. Are supposed to be the communicators to the people I have thirty thousand people that I need to tell about this or the ones that are involved in that group of thirty thousand people so communication to those folks can come through this body then have to be. The advertisements or hiring a contractor you know. We can talk these. We don't know. Ahead of time we can't do that. So there's something wrong with the process here and all of a sudden we come in and and we have to say yes or no as senator Hickey said about a decision we have no input no discussion no ability to offer alternate solutions. So my question is can we look at that and and at least involve the legislature earlier on in the in this A says that's my question. We agree with you that it is difficult to communicate with the two the two of us with a hundred and thirty five of you I will I will let you know that there were about ten legislators that we reached out to and spoke with I'll have to get those names but the two documents you have today or sent to the house leadership for sure Speaker shepherd requested more information and so from from our standpoint I guess we're not sure what the best method of communicating changes like this are but before it went public we did reach out to the leadership in both the Senate and the house can I give you a suggestion on that yes Sir. This is an insurance issue we have an insurance committee. And again this is you say you call legislators. Those twelve ten legislative how do you know those are the legislators in or any on the insurance committee we need to. Follow the process if an insurance issue. You need on the insurance committee. The health issue you need top look health committee and one on that committee not someone because those committees are set up for a reason and they have a specific focus in the people that are on those committees are the ones that are responsible to know the details of that so I would suggest if you have an insurance issue you go the chairs of the insurance committee. And that way the letter response that particular subject no that's going on. The thank you a. Representative Ladyman Representative wing are you and sixty two yes ma'am and you need your question done today yeah just very quickly obviously with respect over at three o'clock with respect to was been said before I've got a question about the timing I just wanna make sure that what what what are leeway is here senator rice and mention that we have lots of folks who have come up with ideas possibly alternative ideas I just wanted to a make sure you are open to hearing some of those alternative ideas because we've had some creative ones you know they say necessity is the mother of invention and what all of the sudden this came out and it kind of came about quickly some very talented people who have worked even in these departments and state government in their past have come up with some alternative solutions what is our deadline deadline for us to be able to to move forward when when do we have to have a drop dead we've got to have this by acts date what is that day. Others if it's difficult say one particular date that the rates are normally set in June each year because of cove ed and not being able to meet in person that was pushed out to August this year The open enrollment starts October fifteenth and goes through December seventh seventh for Medicare and nicer set by the federal government so if if they're going to get in rolled and and that the healthcare plan goes by the calendar year not the fiscal year so all that none of these things will go into effect until January of next year so if they're going to make changes. To their planned that in that it involves medic here we would have to they would have to do it within that October fifteenth through December seventh time line if it's regular planned changes that sign up to time is October first two thirty first. For non Medicare related so that gives us a sense of urgency for the September twenty ninth insurance and commerce meeting that's what I wanted to get to is our time thank you very much thank you madam chair who is in C. eighty nine is it a question that needs to be asked today. You're recognized saga rules you're in a hurry. The. No longer process of double since June I had a salesman that sold lumber to a customer for less that day than I paid for it that day and up. The Senator Hickey would have explained to him how a negative it's hard for me to not have the cash in hand for what I just sold to pay for what I've got coming in. And so when you said there would be a forty percent increase if we didn't. Cut this benefit. I said well that's I can see where the voted for that but then I realized I've worked on the teacher health insurance since two thousand thirteen. And one the things that a war we won the last things that. I remember is that we were looking at eight to ten percent increases is what I remember. But we weren't gonna increases and we didn't. And I said what are we waiting for clips are we waiting for this to build up and then have these big increases when we know what's going up this much a rear. And so is that what happened here it means we're having eight to ten percent increase because of her you said that with the one of you say that we got calls we will get calls but that's being grown ups it was going up to percent it's going up ten percent so are I'm not sure we belong in the health insurance business at all so it is that's what happen is is going to ten percent a year and instead of raisin at ten percent a year we're just waiting and then coming up with emergencies is that is that what we're doing. I believe director Hallett hidden stated it it goes up around eleven percent per year is that correct the the LAR we raising rates eleven percent a year. That's a good question We probably should be maybe it's because of the political backlash that it causes I've been in this position since July of nineteen so really that's all that we've been able to control But something that could be considered. What I will say we don't have any business but we should go out and get builds from Blue Cross and United health and so and and have somebody that's grown up to do it if we can't be grown ups thank. I'm this feature I want to go back to something real quick before I recognize Senator hammer you said something about cove it and not meeting but we've been meeting. eight so wine. We we had to two meetings. The is them for the board we've had wrecked we've had a meeting April may June and July we discuss rates typically may June and July we felt it was important to have the meeting for all of this was discussed in person it is very at detailed and as the actuaries go through their reports it's something that for many of the board members and we had comments from board members that it was hard to understand be at an electronic format I will piggy back off what a Representative Ladyman said because we do have an insurance and commerce committee this should have been presented in there it should have been hashed out in their way prior to y'all announcing or emails feeling up so that we would have had the answers that we need and twelve I think it's what you said you contacted twelve now if it's an exact number it's around ten or twelve that is not even a majority of the of the chambers so that's not a sufficient number in which you should have contacted in my personal opinion with that Senator hammer you're recognized thank you Mr chair I want to go back to a comment that Amy made awhile ago you said the subcommittee was presented with the information but I did not hear you say was that presented in official subcommittee capacity was it email to them and did they make a formal recommendation to the full board. I had stated they did not make a formal recommendation to the full board where those meetings in person or. Rector that's correct the the normal protocol for notification was done of the material and information was sent to the committee members and there was not a recommendation that came out of the the July or June benefits subcommittee was that because they were not asked for formal recommendation or they were not in a capacity to make a formal recommendation because the and they were not in a committee meeting where was on the agenda to be a discussed item there is a formalizes Gendo we did have a an official meeting and my contention is they weren't prepared to entertain the recommendation at that time like to get a copy of the minutes if you would and then the other thing is. Ten to twelve legislators were met with by your group however in the meetings that you had with those ten to twelve legislators was it for the purpose of seeking input so that they could contribute to a decision that was in the process of being made or was it to let them know Hey the decision has been made and we just want to tell you. It was an informational discussion on those that were reached out to because the board had voted and made a decision. So the decision had already been made by the board and your dispensing information to those legislators about a decision that had already been made is that correct. I would have to check the timing I believe that I did talk to some people prior to the board voted and talked about some of the. Options on the table but I'm I could not say one hundred percent either way Senator hammer if it was right before or after the wealth better chairman come out the public because it's going to work itself out eventually I may have been one of those ten or twelve and I'm telling you what you got today is what we got then it was a decision already made and was matter of courtesy to some senators and representatives to make them aware of what had happened but it was a decision that was already made so for the integrity of the legislators I want that to be known why ten or twelve got picked that's not ours to decide or to defend but for public disclosure I think I was one of the ten or twelve and this is what we were given so I just want that out in the air thank you senator hammer again the meeting for insurance and commerce or they'll be hatching this out more and you'll be able to hear from the other side will be September the twenty ninth that insurance and commerce it'll be a joint committee meeting at one o'clock I want to thank you all for your patience and your willingness to status light not apologize to personnel yet again we've gone into your meeting and what that meeting adjourned.