ALC-JBC Budget Hearings (1:30P-4:00P)

First up we've got the department of Veterans Affairs and they do have an audit finding so if you would state your name for the record and you're recognized and give us that audit. Report. Thank you Mr chair my name is sandy Babineaux with legislative audit. Veterans Affairs department head five findings for the twenty eighteen year there's been a subsequent audit that has been performed but it has not been filed yet. One of these five findings is a repeat funding and I'll point that out to you when I get there. The first funding is the agency used to vendors to provide nursing and nursing assistant staffing with a total of the expenditures of about one point one million and they had not establish contracts within the procurement requirements of Arkansas code. The second funding. Of the agency accounting staff process disbursements for nursing and nursing assistants staffing of just a minute okay members. If you're looking for the audit report it's attached to your agenda to the back of the agenda just to. Page seven so there was on the same page go ahead. This is the second finding is that the there was disbursements they were process for nursing and nursing assistance without the approval and before the services were rendered and ultimately the warrants were hailed int'l proper approval was received that is outside of normal establish controls. The third finding relates to rent receipts at of our testing thirty five receipts totaling seventy thousand dollars were not deposited within seven days as required by the if a regulation. The fourth finding deals with the new north little rock veterans home it was approved by the VA which allowed recognition as of August third of twenty seventeen management did not timely file for her and receive documentation of an identification number which ultimately led to a lag and filing for claims reimbursement from the VA. The total. They only got the money but the the timing there was about a six month lag in receiving one point four million dollars. The fifth finding and this is the one that was repeated in the twenty nineteen audit of veterans home receivables ID totaling two hundred four thousand dollars sixty eight percent had not been collected as of April of twenty nineteen here again we finished the June thirtieth twenty nineteen audit this was a repeat funding so those are the five finding summarized for the Veterans Affairs. Thank you. seeing no questions appreciate that report and. Now we are on miss Kathy if you would. Thank you Mr chairman with the V. eight then your big manual under the tab that says manual three and we're going to start on page one. The Veterans Affairs works with that friends their dependents and survivors and securing their rights and benefits under federal and state laws and the department supervises the activities training and testing of the county veterans service officers and provides financial assistance to counties did afraid their salaries and expenses they also provide housing through to veterans homes and interments three two veterans cemeteries the first appropriation they will take a look at is for the secretary and that is on page two and three. This is the appropriation FOR the secretary there's no changes being requested the executive recommendation is the same this is general revenue this is funded from general revenue so the total appropriation will be two hundred twelve thousand eight hundred sixty eight in both years of the biennium and that's the general revenue funding that will be made available for that appropriation next let's look at the other appropriations for Veterans Affairs on page six. This agency has a total of six appropriations and they're gonna be changes in five of those. Overall the executive is going to recommend to a dispute positions they are good doing a lot of positions swaps and changes and moving folks around we'll go so that as we go through this appropriation on page six you'll see summary of appropriation and funding sources and this is without a fee increase this agency is proposing of the possibility of increasing some of their burial fees so then on the second page page seven there you'll see this is the same appropriation scheduling funding schedule with a fee increase the only thing this is going to change it's not going to change any of the appropriations they're going to remain the same what it changes is in the funding. Under the sources under cash funds if they go through and proved to increase their fee schedule for burials they would bring in an additional hundred thousand dollars that will go into that cash fund line item and I'll explain more in detail on that appropriation we get there the first appropriation we'll take a closer look at is there state operations appropriation this is funded from general revenue and it's for administration costs for the department. All this they're wanting to increase a general revenue funding to fund a veteran service officer this is what the Veterans Affairs with black and I'd also like to transfer out five positions that are associate and their associated salary costs to the veterans homes to support the home operations as opposed to being in the state operations and I'd like to transfer in a position from the veterans home for a position that moved and occurred during the FY nineteen for administrative specialist to support the veterans service office section. Basically the only changes in this appropriation are going to deal with positions and salary in match on page nine you'll see the of appropriation FOR this the lay out again it's that the agency is requesting of three less positions. And the executive is in agreement with that the agency also was requesting additional Jever general revenue as I said this is the general revenue fund it appropriation the executive recommendation on that will be for a million seven hundred and seventy seven dollars in the first year and a little over one point eight million in the second year and the appropriation level is what the executive executive an agency both agree on. The next appropriation is on page ten three twelve this is the appropriation for the veterans home. And this is for the home located in fable and also one in north little rock there long term skilled nursing care facilities they are privately funded by private room and board pavements private insurance payments Medicaid Medicare reimbursements and then there's also a VA per diem reimbursement that receive. The agency is requesting to transfer in five positions those of the five positions that they're transferred in from the previous appropriation from state operations to share the cost to support the homes operations they also requesting to transfer into positions of from the cemetery cash appropriation to support the veterans home that's an administrative specialist and a maintenance coordinator and they're wanting to transfer out of position to state operations these transfers in and out within these appropriations are being done to better align the positions with the work being done and with the appropriate funding sources and all of these position details will be gone over during the personnel subcommittee meeting. They're also requesting a decrease in their operating expenses professional fees and special maintenance in order to more accurately a lot the appropriation to the projected funding then on page eleven. Twelve actually you'll see the results of this the executive recommendation is the right agencies request so the five additional positions the reduction in the up appropriations for operating. Professional fees and special maintenance and then in addition the executive recommendation also includes of forty thousand dollars in capital outlay that is for at least that the agency has four vehicles that they use at both of the nursing homes to transport veterans to other appointments and medical personnel. The next appropriation is on page thirteen and fourteen this one has to do with the veterans cemetery this is the cash appropriation for the veterans cemeteries it's funded the burial fees they use this to support the operations of the cemeteries and to provide land improvements. The request on this is to transfer out six positions to the state appropriation do declining cash funds and they have a. Appropriation for the state of veterans cemetery so they want to transfer to that transfer out to positions to veterans homes and in capital outlay they need eighty seven thousand thirty dollars to be in reinstated each year to replace broken or worn out equipment used for our interments this is the appropriation that they are considering an increase in that their eligible spouse and dependent interments and disinterment fees so on page fourteen they will show you the appropriation and on page fifteen Fourteen is the appropriation without the fee increase fifteen is with and as I said earlier the only place that that changes is in the cash appropriation line for cash funding. the executive recommendation is the agency request plus transferring of for additional positions to cemetery state so the agency was requesting to route a transfer eight positions out the executive recommendation is to transfer all twelve positions out from this appropriation. The next appropriation on page sixteen and seventeen is the veterans cemetery state of this is the part of their appropriation that pays for a daily operation and grounds of the two cemeteries the one in bird I and the one in north little rock the agent through request on this is to it's funded by general revenue in the agency is requesting an increase in their general revenue funding they were asking for an additional six hundred and twenty one thousand in the first year and and second year of the biennium and they're also asking to transfer in six positions from veterans cemetery cash due to the declining fund balance in the cash appropriation the executive recommendation is the agency requests for appropriation only the general revenue funding will be at three hundred thousand eight hundred fifteen in the first year of the biennium and two hundred seventy two six forty six in the second year and transferring it additional for positions from the cash appropriate appropriation and to maintenance technician position so on page seventeen you'll see that the total positions goes from five authorized to seventeen of the total in appropriation is somewhere six at nine hundred twenty one thousand the first year and eight ninety for the second year and then the funding on the other line at three hundred thousand eight hundred fifteen first year in two seventy two FOR six forty six in the second year the next appropriation on page eighteen and nineteen is the military funeral honors program where that utilize of funding that they receive from special military license plates to provide military funeral honors programs at veterans cemetery funerals and they're not asking for any change in this appropriation it set at twenty two thousand nine fifty for each year of the biennium. Number the next appropriation on pages twenty and twenty one is the north little rock cemetery expansion this is a federally funded they received a grant first the expansion of the north little rock cemetery and to build some facilities there on and some infrastructure and they receive that funding they would like to in this appropriation decrease the construction amount from it was originally set at ten million dollars and they want to reduce that down to two million dollars for each year of the biennium to be more in line with the amount of funding they still have available to spend off of this so that's the request being made today for Veterans Affairs. All right. Thank you looks like. Representative. Well. Looks like a one way Seeing no well. Okay. Let's see here seat number twenty two Senator Elliott. Yep this may be something staff can answer I don't know I was trying to follow with the personnel changes and until the wondered if somebody could just in a snapshot tell me. What the result what we're precipitated it and what the result is because I'm sure there's a big picture here that I just by the name to put together that quickly. Some of the changes they're making Senator have to do with Getting on into the actual places where they The services lining those up so people that work more in the cemeteries cemeteries those are lined up in the people that work more in the veterans house the other thing is that they have a state veterans home that is or is it cemetery that's the cemeteries state veterans cemetery that they're moving up positions out of the cash side of that into the state because they're running level remain where they are yes yes this is all of your transfers and bottom line they're just two different positions to additional position. Overall for be a with all the transfers and all that kind of stuff yeah I do other than I thought you said that and we kept making changes I just got lost but the bottom line is they're just lining them up according to the way they're gonna be compensated but the two extras that that that's the only addition okay all right okay thank thanks that's all I need Mr chair thank you. Page page seven also has a summary on that. seat number forty five Representative Lundstrum. hit your green button to wear solid thank you. I'm. Right the very beginning I got lost a little bit so I need a little bit of help it talks about the procurement laws and that there was a finding of one point one million Could you explain that to me. Was from two thousand and eighteen that's part of the audit findings and so they're coming of audit X. here. Thank you for coming down. I'll start at the very beginning this is the very first paragraph it's on procurement laws and there was a one point one million dollar discrepancy. And evidently there wasn't a contract is get this established I'm lost. Basically this fan funding deals with the this in. Veterans homes as you would imagine require nursing in nursing assistants and instead of establishing and beating out contracts on their own they were For lack of a better word II utilizing other contracts and other agencies to try to get that same service. And so at the end of the day they were over spending contracts in total for the state and so since they were the offending agency the for finding landed here. The money was is as far as we can tell the money was within the contractual terms as far as the rate paid. But here again it just exceeded the overall contract that you does that help out yes that helps out but did they understand they were doing that at the time. A I think if you notice in their agency response and I don't speak for the agency but I think they're agency response points office of state procurement is advising them on how to do that. it from an audit standpoint because the value of the contract and because they were set specialized nursing needs. that's why are finding is here's we felt like they did violate state law so okay right of that is confusing to me it seems like something that should be standard operating procedure we need the nursing care we need the nursing care. All the time correct this consent odd one million all right. Thank you senator. Chesterfield. Ninety four the agency Mr all right. Do we. What was good and just bring the agency in we'll go ahead and. Good afternoon. If you would state your name for the record and then. Ola get started some questions. Related bill meant almost booth on the chief of staff in the CFO for the. Good luck numbers stages Nathaniel Todd secretary Arkansas department first affairs. Thank you senator Chesterfield new thank you thank you Mr chair first of all secretary to thank you. every time I've called on you with the veterans matter you've gotten back to me in an expeditious manner and I truly truly appreciate that because so many of our veterans still need help and unless they know where to go they're not going to get that help but I'm asking you the same question that I ask ask each of the agencies I noticed that there are no minority vendors that have done business with the Veterans Affairs with the veterans administration could you tell me why that is. It says state contracts over fifty thousand dollars awarded to minority owned businesses the department of Veterans Affairs that's exactly zero yes senator at that double there are some Mike role contracts that we've done with vaginal businesses minority owned businesses and women owned business little twenty thousand dollars payable fee of better homes and in. First of food procurement so we at that fifty thousand dollar level that is correct we haven't. Contracted we would do better in the future but at the micro level we head minority women and veteran owned contractors okay. You head ethnic minorities and women and. Veterans are to explain it to me yes in in the bedroom area of there being an. Minority veteran owned businesses that we've contracted with. To the come to my mind Pacific lady was security at the north little rock home and landscaping at the north little rock thank you for a. This question is for the CFO there were some findings IT findings would you speak to those please. And what we have done to make sure that we're not repeating those findings yes ma'am so the those are findings as order brief were from fiscal year two thousand eighteen and I believe they also brief that that there's been an additional audit since then of of fiscal year two thousand nineteen we provided our management response to the FY eighteen not at we implemented all those controls with except for one finding and I wanna get too much into the FY nineteen audit without it did first going for the audit committee but we do look for to briefing what we did is specifically before that committee because we should some some some really good improvement in FY nineteen. Thank you thank you thank you all for taking my question thank you senator seat number thirteen. I'm sure his immense well. A. Buzz back in again I double tapped. Thank you Representative Sullivan you're recognized thank you I feel I'm looking on page thirteen at the bottom of that page or the agency is proposing a fee increase from three hundred seven hundred ninety six dollars. Can you that's quite an increase there does it well that impact the people who are accessing that service from there by impact the projections on revenues resolved and that is a course of action we've identified two primary course of actions in the executive recommendation there's a recommendation that the cemetery has an increase in general revenue that would. Allow us to the send twenty twenty two and twenty three not necessarily increased at the by that amount. What the of all bills if we get the internal revenue we can probably get to twenty two twenty three we have additional acreage and the barrel race on increasing that fee is for spouses the veteran we get reimbursed from the federal government seven hundred and sixty dollars in a federal cemetery the spouse does not have to pay to be in turn and state cemeteries those are not reimburse the fee is currently three hundred dollars okay we would criminally increase that see if required that explains it okay thank you thank you Mr. Right. See number fifty seven. Senator Johnson you're recognized. Thank you Mr chair and this is a follow up on center elect solvents question colonel Todd can you just elaborate a little bit more on this fee increase it did kind of jumped out at me of over a hundred percent and I understand about on the federal the spouse can be buried with the husband in the federal system a. Yeah just curious why. From three hundred to seven or ninety six if you just kind of walk me through that I appreciate the call was to get that legislation approved that language approved the it would be not the my intent to increase that by that much at one time again the executive has recommended a general revenue increase which would. Record would allow us not necessarily to have to increase that fee but as a look out in the future we may need that capability will also pursuing for legislation to change the reimbursement for spouses at the state cemeteries however that could take two to three years so this I say this this change that seems to sound really good to me and I appreciate you working on it is kind of in progress and this is a contingency position to make sure there's adequate funding is that yes yes Sir okay are at that pretty well explains a colonel thank you very much thank you Mr chair. Thank you. And. Seeing no other questions we appreciate you coming in and with Arkansas department press thank the legislators been very supportive of the veterans of Arkansas in their service and we thank you hold on just one second somebody else jumped in the queue here Representative wooden. Thank you Mr chairman I apologize I have a doctor's appointment I want to. Trish eight you and appreciate or service or providing but I have some questions about the personnel your personnel in the last the report. That I have here from August of the total employment Joel had. You authorize three hundred ninety your budget to seventeen of those thirty two Of the two seventeen or vacant and fifty nine vacant positions that are under budgeted okay. And when I look at it see from twenty twelve you have a positions and from twenty eighteen you have three positions and we're asking everyone this to try to get a feel. You know. One of the fifty nine Budgeted and then what do you have positions back to twenty twelve. Actor Kian Mr Speaker twenty twelve I can't speak to currently those vacancies are in our homes they are mostly bill P. ends in our Ian's at fairs bill the census is about seventy two so we've had some vacancies there if the if the senses goes up we would fill both positions they're still tough to feel guilty in positions to clean a little rock area so those would be budget we cash funds from both north little rock in the field bill homes. Okay. You pay in the E. be the end of the retirement. We do okay. Those those thirty two positions that are like and we're that are budgeted that's about a hundred and seventy nine thousand dollars a year and then at forty five thousand dollars annual salary that's that's one point four million a year and we're we're not I'm not looking to take that money or away or anything but just look and maybe it could be reallocated in you somewhere else it will when when with thirty two positions Blake it. Red is that a fair assumption or is that something that you would would you mind a look at that we'll look at it we highly recommend to hold positions day at the homes particularly the fee of your home we expect that census one got a cold to increase analysis to you to be at the if you have any other thoughts. A so thank you for the question like secretary Todd said the vast majority of those positions are are for either registered nurses LPNs or see in a is and as a goal of FY twenty one and beyond we have to fill those positions because it will reduce our dependence on contract labor and actually save money so what we hope to keep those positions there of and we hope to fill on with actual size state labor but we also don't want a budget all of the men and outpace herself. I guess what we're we're we're searching for is just a a to the value wait those positions that are not you're not using we if we have a lengthy discussion this morning about the nursing shortage and we understand that thank you Mr chairman for your intelligence thank you appreciate. Thank you Representative senator Chesterfield you're recognized. I move review. If. Seeing no other questions thank you all for coming in will. What are we don't have to wait for the agency to leave before we make the motions anymore and. That was for higher and this morning we suspended the rule for that prior. I thought last time be it said that we would just go ahead and make the motion instead of holding it up until people left the Rome. But if I am mistaken I will wait Mr chair for my motion. I will yield to the chair. I'm. Since that was for just tire at this morning. This is to wait but the I'm more than happy to take a motion to suspend it for everything if you want to make another motion after the suspended for everything so we can. Okay which which motion are you making first Let me make the motion to review this one and then I'll come if an all round actually and make the second one I'm gonna motion executive wreck in a second in a second. Any discussion on the motion. On favor I. You post motion passes Mr I move we suspend the rules so that we may make motions even while they're in here. That's proper motion of a second get a second any discussion on that motion I just think it would help us proceed more quickly. All right seeing no other discussion or. To have someone on the screen. Okay I don't think it by house is. All in favor say aye. The. Motion passes. All right. We have. Kathy you are recognized for. Veterans child welfare. Yes Sir that one begins on page twenty two in your manual this is the department of Veterans Affairs veterans child welfare services this particular part of the Veterans Affairs offers temporary financial assistance to the minor children of recently deceased hospitalized or medically incapacitated veterans with limited or no income until a more permanent so where's the income is established and. The funding for this comes from general revenue and also it subsidized by the American Legion and it's auxiliary on page twenty four is the actual appropriation this agency I is requesting they have requested that there. Conference and travel operating expenses he's may be reduced by forty one dollars eight year for to line up with actual expenditures and they're grants and aid to be reduced by eight thousand six hundred twenty six dollars each year for actual expenditures the executive recommendation provides for the agency's request however it does not agree with that a decrease in operating expenses and grant so the executive recommendation is to route main at that level which would be a hundred and sixty thousand four. Sixty six for the first year and the second year so that is the veterans child welfare. Right seeing no questions. Okay now. Senator Elliot you're just in case people are listening and not looking at this book operating expenses I thought I heard you say forty one dollars. Yes change but rather than four thousand what I just want to be sure on what I heard right and not I don't want people and is here. What is a reduction the the agency said to reduce it by forty one doctor we would like it from four thousand one eighty two to four thousand one forty one consent decorative recommendation is to leave the appropriations at the levels okay alright thank you. Right seen other questions in motion. The motion exact direct. The second. On favor say aye opposed motion passes. Captain of the next one is the disabled veterans services office and that one starts on page twenty five on page twenty six they have one appropriation so you'll see that there and on page twenty seven is the detail of this appropriation they have one position they are requesting this agency offers assistance to veterans in preparation of their claims for US government compensation and benefits and it's primarily supported by the disabled veterans services office the they also provide transportation services to veterans for out patient appointments when no other options are available the agency I'll. Has suggested making changes in their appropriations of a hundred and fifty five dollars in salary and seven hundred forty nine dollars in match two more aligned with what they're actually expenditures are that was the agency requests the executive recommendation is just to leave the appropriations set at the levels that they're set at which is about thirty nine thousand six hundred and thirteen dollars which is the preparation for each year this is general revenue funded so it's thirty eight thousand seven hundred five and thirty eight thousand seven hundred nine. She's made seven or nine for both years my glasses. And that is the request for disabled veterans thank you. Seeing no question seven motion executive wreck. I have a second any discussion on the motion. On Thursday I. Any opposed. Motion passes. All rights Mr. I believe that Texas to you and department of energy and environment. Thank you Mr Billy perish legislative research and I'll be reviewing in volume three page twenty eight this is the department of energy environment. The first section will go over our shared services. The permittee environments a new cabinet level departments resulted transformation departments combined from divisions and programs within the Arkansas department of environmental quality Arkansas Geological Survey willing gas commission and the liquefied petroleum gas board cabinets were provided new shared services section to eliminate duplication of services and provide efficiencies. On page twenty eight show state contracts were to minority owned businesses employment summary and publications. On page twenty nine is a shared services requests and this section provides for the shared services which pulls resources for the benefit of all divisions and programs within the department is supported by paying account. On page thirty one is the appropriation summary and fiscal year twenty one hundred and seventy four thousand was authorized to requests for the Bynum's eight point two million this changes occur on the regular salaries line item engine thirty nine thousand was authorizing twenty one the request for the biennium is six point one million the will local from one position two hundred nine positions and personal services matching goes from thirty four thousand two two million. Again these change those are associated with the reallocation of positions and spending authority from divisions throughout the department. On the next page page thirty two is the appropriation transfer listing this report shows how much spending authority comes out of each appropriation section and is requested to be reallocated to shared services. On page thirty three is the position transfer listing and this report shows each position to transfer to shared services. View the page thirty seven this is the fund transfer listing report and shows the funds transferred from each division to support share services across the department. I am moving to page thirty eight is the beginning of the division of environmental quality's budget request again or in the following three page thirty eight and the division at this division is the primary environmental regulatory agency for the state is responsible for implementing at the state environmental laws and regulations as established by the legislature in the Arkansas pollution peril before we get into that I got a question. senator Chesterfield. Yours for the agency Let's go ahead and bring the agency in and then we'll get to the before starting the next session section. Yeah. Your. Sir. selling. Kevin. Kevin will have that information here in just a minute. Of Kevin Anderson legislative staff. By senator basically the GS is your standard of salary pay plan with grated created ranges for each position. And the I. T. is a is a separate pay plan altogether for I. T. positions we have four separate pay plans and I can get you a copy of all those they all have created positions U. G. S. is your most common for your your nine and medical or IT positions. Okay GS. Trying to find that. Here. Is that the lowest paid great. I'm sorry I can't get my hands on it All right. AGS one is twenty two thousand to thirty one thousand nine hundred. And at the top of the like at the top of the GS scale is what the top of the GS scale goes from a GS one two GS fifteen. And the GS fifteen is ninety six thousand nine hundred sixty dollars all the way up to a hundred and forty thousand dollars what about the I. T. what is the lowest and those are jobs with college degrees which started GS six and a GSK okay the I. T. starts IT one starts at thirty three thousand four hundred. Two forty eight thousand and it maxes out at I. T. twelve hundred eleven thousand two hundred and sixty one thousand I we able to fill these positions. I I guess it's a case by case basis let me ask the agency that Mr. Right If you would state your name for the record and just want to say I don't think I've seen you in the last couple months of my condolences to you and your family during this time. My name is Shane Corey Both the deputy director of the Arkansas on gas commission and secretary Q. as part of transformation asked me to service the chief counsel for the department of energy and environment some here in both capacities today to help answer any questions. Senator Chesterfield good afternoon committee separate Becchio secretary of the department of energy environment as well as serving as director of the DQ division of environmental quality FOR welcome to you both and and my sincere condolences as well. I'm concerned about your ability to fill these positions paying somebody twenty two thousand dollars a year. Are we able to fill those positions as I'm looking at a GS one on one of your. This transformation stuff. We're looking at the shared services the it says division of an accountant and the main contents making assistant is a GS one. And there will be one of those persons that I suppose would be on the frontline of making sure that the facilities are clean and all of that we still but we paying somebody twenty thousand dollars a year think that's on page thirty three is on pace or. I know that we have a maintenance contracts but we do have an employee that serves as a maintenance of the system we on the R. E. any headquarters building which was formally DQ building an awful rock and a requires you know continuous maintenance I don't know when this you want to respond to the specific question about the GS one level. But I can't tell you sitting here right now with that GS one is actually a field position right now I know that we we sometimes do have a problem filling those lower graded positions and we try to upgrade those we can I I do know for a fact that we have some Some GS two is that our field currently but to my understanding that this GS one it's not actually a field position at this point I see and on page twenty eight it's a state contracts over fifty thousand dollars awarded to minority owned businesses I see the Jewish this is zero are there any contracts at all that have been awarded to minority contractors in your division. A to that question my understand per contracts over fifty thousand you're talking about a broader than that we do have several contracts lower than fifty thousand for minority do you have any contracts with minority at at we can get that information for you about my understanding as we do that the ones over fifty thousand urgent we have a few of those that are competitively bid they also go through a special in a request for qualifications we've been fortunate to have a responsive better on a one of our larger contracts who is an Arkansas based contractor but is women owned business were really thrilled to have that capability to utilize an Arkansas contractor A but as far as though those are not minority owned. Otherwise but we we can are you considered a minority the I'm sorry what in Arkansas women are considered so we do have a woman on contract over fifty thousand I'm not sure why that no one but you may have some ethnic minority contracts under fifty I believe so that's my understanding would be done if you would share that with me I would appreciate it have you noticed any savings at all since we have gone to trans transformation for your has it increased the. Efficiency in your division since you've taken on a few more individuals. We've been very fortunate we consider it and as you know our agencies are. About resource conservation anyway both willing to SND Q. and but we consider any of our financial resources the at special revenue federal or. Revenue of a precious resource so I've spent time since twenty fifteen working to particularly a reduce our dependency on general revenue and we've seen us that our department has moved the Q. first and now department as a whole we've gone from a double digit dependency on general revenue to now basically less than five cents of any dollar we take in is general revenue so I we we have seen some efficiencies are are efficiencies are largely at this point driven around the the being able to consolidate in locations and use a state owned buildings versus a you know some of the leasing that was required across the state of due to the river you know due to the available buildings that are offered by the various divisions we've been able to bring a divisions together and we've not had to cut any mission critical services in fact we found a synergies and in advancing technology and things like that that also we're saving us funds. Thank you thank you Mr. Right to a Representative della Rosa. Thank you Mr chair I've got two questions first of all I'm looking at this is a very confusing budget to look at so it may just be because staff hasn't explained it as to why I'm not. Understanding it but under the division of environmental quality which starts on page thirty eight but I'm looking at the totals on page forty. your actual. Expenditures for the nineteen twenty five year were eighty one million budget was a hundred forty one million your authorized hundred seventy seven. Next for the proposal for the twenty one twenty two and and going forward is about a hundred and sixty million dollars a year for this. And I don't understand why we need to double. What was actually spent in this last year and was a misunderstanding something because the way everything's transferring and divided and and all of that but I did go back in again if I'm looking at things correctly if I'm not hopefully staff can correct me but if I look at division of environmental quality's past expenditures yearly for the last ten years. It was generally around fifty million dollars per year. Until the nineteen twenty year and then it went to eighty one million and now we're looking at a hundred and sixty one so what. What's drive in that. Absent. I think some of those increases are due to increases in the carriage act funding specifically for life he by think that's a nine million dollars difference in the the DQ budget and I think that may be additionally some of the the items you said is not transfer and exactly right I mean I don't think that overall we were having a. An increase or much of an increase at all from our last year's appropriation to the issues appropriation but we'll be happy to I don't know that I understood your correct your. Question exactly but I'll be happy to try to walk through those numbers what that may be able to do it too I'm not sure I'm just saying what what's on page forty makes no sense to me and it I don't know if it's because of the way things are combined or transferred or what. But if this division has typically spent fifty million dollars a year last year it was eighty two million. And now the appropriation is all the way up to a hundred and sixty one I think that requires a lot of explanation. That's three times what it was just two years ago I'm hopeful the staff can explain it I know that we have. We have a and black who's here is a greater compliance and I think he can give you the break the high level breakdown of of wine that showing that that that's acceptable to you. For. Mr anyway Yeah war waiting on him to come up I think Kevin has. Maybe a little bit of clarification for you sure I just wanted to point out on page thirty nine of forty and the point being made is actual expenditures on page forty it's the first call for twenty or eighty one point nine million dollars and then the agency it was requesting appropriation of a hundred and sixty one million dollars you can see the main differences in that were those increases in excess appropriation or if you look at the petroleum storage tank trust fund you'll see actual expenditures was forty one million and appropriation request is twenty one million and then this is on page thirty nine and then the lan post closure program was two point seven actual expenditure where is the appropriation is fourteen million. And the last one that accounts for most of these increases or the environmental subtle mid trust which is three hundred and five thousand and as appropriated of five point six million and those of very depending on a lot of different circumstances agency probably speak to that. Well and I do know that our budget is complicated in that we have these trust funds that act for the liabilities against the state as you just described also are remedial action trust fund where we had where we have appropriations in the event we have an emergency or a situation like we did but I think we've we've actually taken the effort to reduce the twenty million out of the remedial action trust fund appropriation due to the fact that we don't need that we've been able to resolve the bill of this this site situation without using state of monies for that purpose so I'm gonna let air and no answer specific to your question is there any other areas that we did see a need to increase the appropriation over our spending beyond just having the ability to spend during an emergency or clean up that's somewhat uncertain cost. You would state your name for the record. Thank you Mr chairman up my name is Aaron black Representative della Rosa the fifty million trend that you've seen previously was prior to transformation and win ET the Arkansas energy office was transferred over to the department of energy and environment that increased to the spending on the line he pushes the low income energy assistance program for homes for our Kansans by the tune in you'll notice it it deeper into the budget of this next biennium thirty two million so if we had the thirty two in the fifty that would get us to that eighty million mark what you're seeing in the first column with the one hundred sixty one million would be it you if all of the money were expended that's appropriated in in some of the cases for our department we don't want it to be expended because that means there's been a disaster so we're we're happy to have the appropriation at the end of the year because it means we didn't have to do a major clean up to that into question thank you yes that it just there was such a disparity in my account I can't sit here and go yeah it's Dublin and I'm not I'm going to ask the question what what happened with that the second question I had if I can Mr chair just of efficiency so I don't get back in the queue yes hold on just a second I will think Mr believe might have something that he's wanting to jump in there with as well. Jake in here is. Yes I can in fact Mr black made the point perfectly that the these are largely contingency appropriation only request that the were perfectly happy if we don't have to spend the money but this is special revenue your marks in most cases for the specific purpose of responding to something they can it really goes badly be very expensive so it is a it is a contingency. Go and represent a the second question I had thank you is. Which one of these divisions are or which one of these deals with enforcement specifically waste water and I think you know what I'm asking that question had quite an issue up in my neck of the woods which was eventually resolved via election I have a lot of very dissatisfied constituents that eight eighty Q. did not do more to stop what was going on in that particular city we found lab results that were tapered we have you guys have plenty of examples of reports that were sent to you that were incorrect you found out later were incorrect you guys got plate in for lack of a better term and I just want to know what we're putting towards enforcement because for something like that to go on. And for it not to be able to be stopped by this agency makes me question this agency because it is what you're for you're supposed to be protecting people against waste water and hazardous substances in anything that's going to pollute the environment and this was just a classic case where you should have been able to step in and I don't know if it's because you don't have the authority to I don't know if it's because you don't have inspectors enforcement I don't know what it is that was missing. So that's what I'm asking is is what are we putting towards that what can we put towards that going forward is that a budget issue be what we need to do to make shore the Bethel heights doesn't happen again the Bethel heights isn't happening somewhere else right now and we just don't know about it because the reports are getting look fine and nobody's checking to see if they're telling you the truth. That's an excellent question and thank you it was a very difficult a situation for the community in a a tragic situation in terms of the environment in terms of the impact so Appreciate the fact that you brought that that to my attention we take our enforcement authority very seriously at the department and I know. It was a gas under the recent administration that it was discovered that the reporting was inaccurate or perhaps misleading I guess is in the judge's word it was incomplete which resulted in some uncertainties about actions I know that as soon as we were. Inform that that was the case we began to take very deliberate even intentional actions to the courts and had a number of legal actions pending against the city to the. In including removal of a license operator proposal that went through our commission this just this month that it up suspended a license due to the actions of the individuals involved so it is not a situation that we believe is repeated in the state we are watching this closely we do get. These reports come into effect through an online system and we now have better systems to be able to monitor the reporting and identify these quicker than we used to because of the number systems we do monitor all across the state but I support we do have inspectors up in that area we do send them out they were out on the sites in Bethel heights many times but again causing these are challenging situations where it takes some time to remediate a problem and an investment by the city to get it corrected so they were under I believe two different orders with the state to do corrective action plans and we're meeting some of those commitments and then began to fail again so but but I I just commend to you that we are taking this very seriously and we do believe we have the resources at hand and are improving our surveillance of the systems and reports to make sure that we have a better view of what's going on across the state on waste water systems machine do you want to add to that because you've handled some of the legal the bill out of the sure I'll just say that in and while it may not seem like that it was moving as fast fast is that. Is it needed to even just prior to that an annexation vote we did finally have a hearing up there with the judge and the judge found in favor of the division of environmental quality at the same time as sector Keogh reference that individual's license was suspended and then the appeal that to the commission and that was just finalized within thirty six months suspension of that individual's license as well so I think even had the annexation vote not happened we were catching up with that the bill or we were on a good place to be able to have court action or approved action to to step in and do something at that point in time. It does there need to be. A I'll also say in nineteen review by any means that we've recently transferred one of an additional enforcement person who's head of enforcement in the water division from what was the legal shared service to the office of water quality specifically to help out with these enforcement actions. A. I'm trying to think how to word this. I know that there were several people within eighty Q. that were very frustrated with the situation as well I'm not saying this to put blame it's it was a really crappy situation it is wise so the but the question I have is it just seems like your agency was hamstrung in certain situations where you have to wait a certain amount of time you have they have to be able to appeal this me even when you know that what they're telling you is not true you still have to as as I think somebody within eighty keep coming because one of the baby here I don't is when the attorneys was tell me we have to dot every I would cross every T. otherwise you know we we're in trouble later because we didn't give a fair hearing or we didn't you know whatever it is you had to do but at the end of the day it just seems like. It wasn't just this one what our way. We're trying to stay if I can on the bill right this is my last chance to talk about. I understand The if if you got a question coming around toward there was your about one cents away from okay let let's let's try to stay as focused we still have quite a bit of agenda left just moving forward if there's any kind of. Criminal penalty that you need added or anything that the legislature can do going forward that will help you I don't want you chasing people that that's not what what I want anyway yes but that will help you move forward with a similar situation I would hope that you would make the suggestion that yes that's where I was going thank you for that and we do share your frustration and and I'll be happy to talk online offline if you'd like to follow up about this matter to say thank you. Thank you Representative Wooten. Thank you recognize. My questions will deal with the personnel that let me. May follow Representative della Rosa waiting since you're the legal counsel I'm waiting for the day. That you come into conflict with the energy and all and gas people and the environment both being in the same agency I will or what you today answer on that one well I've been with the oil and gas commission FOR. Sixteen years right. so I understand what you're saying. I mean I just see a conflict coming with environment and energy being together in the same agency my question deals with the fact that you have a hundred and fifteen positions. Their budget to Butler vacant. And I have before me a list here where you have a to the Geological Survey who've been vacant since twenty seventeen you have a his environmental quality there have been vacant Twenty fifteen to twenty seventeen and five more in twenty seventeen I don't I don't understand the. The the hundred and fifteen vacant positions. We've been watching and and look forward to the opportunity to address this the this question for you knowing you're gonna ask this so the back and break it down sale what's. Yes Sir. of the we have right now we have twenty eight positions department wide that have been vacant for two years or longer and after after further evaluation I can tell you that six of those are currently in the process of being field. Six seven we are would like a little more time to evaluate the need form but a total of sixteen we are ready to to recommend surrendering those positions based on your line of questioning in our review and evaluation of those period so twenty eight that have been vacant for two years or longer sixteen we're we're willing to committee that will surrender those positions six seven or in the process of being field and and would like a little more time to evaluate the other six and get back with you well the appreciate I mean that's that's all I'm asking is that's my major concern when I look at these budgets and then you know in addition have a page and I have which is about a hundred and five positions that you have out there that are thank you but they're they're they're not over two years at showing I'm just you know when it we need to look at each position which you have done and I commend you for that yeah we we do have Significant turnover not not as an agency but we have a lot of interest in our staff because of their training we are we are our our folks are valuable to the private sector and are often you know all offered positions what creates vacancies that we then have to go through the process to re hire we also have a number retirement that we've been working three so we've been very intentional but looking at every vacancy as we look at the benefits of you know being now a consolidated department to make sure we utilize those positions and and really surrender those that we don't need due to the cost of maintaining those vacancy so we are definitely intentional and and as a chief counsel just mention we we do I have identified a number of them but we are in the midst of re hiring and those more recent vacancies that that you mentioned the we have a number of positions that are currently being interviewed and the we expect the field just to carry out our federally delegated programs we absolutely need certain ability to re hire some of those positions but for that for others we are surrendering where we found that consolidation and transformation has resulted in an opportunity to not retire the space of administrative support specialist positions thank you just to make sure these two numbers Mr chairman I'll be through. The contribution only insurances six hundred and twenty one thousand dollars a year. And the and the and the budget In an average salary of forty five thousand there's five point two million dollars a year in in in budgeted or and budgeted positions that are thank you so when you when you amplify that buys many agencies we have in some of the many many more which will address later but I do appreciate what you're all done thank you Mr chairman for the time. Thank you Representative. And not seen any other questions on that we have an audit. finding if I could have audit come up. And Give us that report and then Mr perish you're ready just gonna have you go through any changes in this list after the audit reports done and open it back up for questions for the agency. Thank you Mr chair Amanda benefit with legislative audit. We have one funding for the department of environmental quality. The agency had inadequate controls over cash transactions specifically one employee sign checks and approved the monthly bank reconciliation. As a result adequate controls were not in place to ensure the safeguarding of the agency's one point three million dollar bank account that does not mean that the bank account disappeared she strictly that there when proper controls. Right thank you. Mr perish if you would come up and give us a. No review highlighting overview highlighting the the changes in this list from previous. Appropriation requests. Thank you Mr Billy pears legislative research they will start on page forty this is the department operation summary that and just to give an overview the department has thirty seven appropriation requests twelve have changed level the total authorize budget because you're twenty one is a hundred and seventy seven million in spending authority the division request a hundred sixty one million a fiscal year twenty two that's a nine percent decrease hundred fifty seven million fiscal year twenty three that's an eleven percent decrease and the division also request three hundred thirty four positions at the twenty one percent decrease from the four hundred twenty three authorized exactly recommendation provides for all but one agency requests and it's all based management request on page sixty nine the second recommendation is for almost ten thousand more than the agency request divisions funded primarily from federal grants fees for services such revenue and Mister at your direction and each time I will highly those requests with the change level most of the change levels involve transfers to shared services. The first change levels on page forty one this is state operations request this section provides for administration of the division it is supported by general revenue fund. One page forty two is the appropriation summary in fiscal year twenty one five point four million was authorized the request for the volume is about two point seven million that the fifty percent decrease does change levels begin with the regular salaries line item three point seven was authorizing twenty one to request for the biennium is one point seven million personal services matching one point two is authorized to requests for five hundred eighty seven thousand and those are associate with position transfers to share services about thirty seven positions. Looking at fund sources the fund balance going to fit for your twenty was nine hundred fifty thousand the fund collected general revenue in the amount of three point four million interagency transfers so three hundred fifty thousand those are funds received from the game and fish and all and gas commission the other one shows thirty five thousand those are fees for services provided by the division the division spent three point seven million to secure twenty that leaves a balance of one point zero eight million going to fiscal year twenty one. The next change levels on page forty four this is federal operations request and this section is utilized for the federal portion of program activities it is supported by federal fund. On page forty five is the appropriation summary in fiscal year twenty one nine million was authorized to request for the biennium is about seven point nine million at the twelve percent decrease the change those begin with regular salaries line item four point four was authorized three questions for three point five and personal services one point four the author writes request is for one point two for the biennium those are associated position transfers to share services about seventeen positions looking to capital outlay seven hundred eighty thousand was authorizing twenty one they are requesting to retain cap outlay for equipping and vehicle purchases allowed by federal grant awards looking at fund sources the fund is not carry a balance due to the nature of their federal grant awards the fund received and spent six million in federal funds in exchange levels on page fifty that's the hazardous waste permit program. Seventy two to be a has with permit program requests in this section is sure is that generators of hazardous waste or complying with the law it is supported by special revenue fund. Page fifty one is the summary in fiscal year twenty one one point six billion was authorized the request for the biennium is one point four million that's that a fifteen percent decrease changes begin with the regular salaries line item nine hundred twenty two thousand is authorized to requests for seventeen thirty four thousand personal services matching three hundred two is authorized to requests for two engine forty eight thousand as associated with position transferred shared services in capital outlay hundred thirty five thousand is authorized and the division reef request retain capital outlay for vehicle purchases and sharing of billing payments looking at fund sources the finance going to fiscal twenty is four point five million the fund collected special revenue the amount of eight hundred one thousand those are fees from permits and certifications the division spent one point five million fiscal year twenty and that leaves a balance of three point eight million going to fiscal year twenty one in exchange levels on page fifty eight that's few ministration. So on page fifty eight the other request for few ministration and this section collects fees for air water and solid waste permitting monitoring inspection activities supported by trust fund on page fifty as a summary in twenty one fifteen point four million was authorized to request for the biennium is fourteen million that's about a nine percent decrease. The changes begin with regular salaries on item eight point for the authorizing twenty one requests for seven point one. Personal services matching two point eight was authorized requests for two point for those associated with physician transfers issued services about twenty four positions. The grants a line item the head is zeroed out for twenty one the request for the twenty two three hundred sixty three thousand and twenty three it's for four hundred fifteen thousand spending authority doesn't provide matching FOR diesel emission reduction act grant awards previously the match came from the folks wagon settlement that'll in the fiscal year twenty two. Capital outlay one point one seven million was authorized the request for the biennium is one million fifty thousand as retain capital for repayment series twelve ADFA bonds towards its building. Looking at phone sources the fund balance going to fiscal twenty sixteen million the phone collected fees in the amount of eleven point three six million the division spent twelve point one eight million fiscal twenty and that leaves a balance of fifteen point two six million going into fiscal year twenty one the next change levels on page sixty two with the hazardous waste cleanup request. And this section provides administration for inspection identification containment abatement treatment and control has his sights on page sixty three is the appropriation summary and twenty one twenty seven point three million was authorized requesting twenty two and twenty three is for seven point three that's about a seventy two percent decrease is all hers in the contractual services line item again was authorizes twenty six point one million requests FOR six point one million for each year the biennium and this is to restore preparation to its previous level this is mentioned earlier twenty million with added this year nineteen for the bill of this the site clean the bill will not be needed moving forward because that's been resolved. On page I'm sorry looking upon sources the fund balance going to fiscal twenty was seven point seven six million the phone collected fees in the amount of one point two four million the division spent one point nine one million if it's clear twenty that leaves a balance of six point eight six million going fiscal year twenty one on page sixty six is an exchange of with the as best as control program. And this section provides administration for a program for licensing contractors engage the removal of other that assesses materials from school facilities is supported by these buses control fund on page sixty seven is that summary in twenty one physically twenty one five hundred seventeen thousand is authorized to request for the for the biennium four hundred ninety six thousand that's about a four percent decrease the changes occur on the regular salaries in person services matching line items both go down about eighty two percent this is so she would position transfers to share services looking at fund sources the fund balance going in fiscal twenty was one point two eight million the fund collected special revenue the amount of two hundred seventy two thousand the division spent two and twenty three thousand fiscal twenty in at least a balance of one point three three million going to physically twenty one the next change levels on the next page this page sixty eight it's a solid waste management recycling program and this section says cities and counties and solid waste management planning is supported by trust fund. Page sixty nine is the summary in twenty one eight point four million was authorized the agency requests for eight point two two million for the biennium that the two percent decrease the executive recommendations for a point two three million at about ten thousand more than agency request this includes additional salary match for re classified position the dishes and energy and environment senior manager I did speak with the agency and learned that reclassification occurred after the budget documents were submitted for this manual and that the agency does agree with the exact recommendations put in this manual. looking at fund sources The fund collected special revenue in the amount of four point four five four point four five billion because the landfill disposal fees the division spend seven million fiscal twenty and that leaves a balance of six point three four million going to physically twenty one. The next change overs on page seventy two it's the petroleum storage tank trust. And again a seven to the patrol patrolling storage tank trust program this section provides a procedure for reimbursement of remediation costs or damages as a result of leaking tanks is supported by trust fund. A seventy three is the summary. In fiscal twenty one twenty one point nine million was authorized for both years the body in twenty one point eight is a request that is less than one percent change the changes occur on the regular regular salaries and FOR services matching line items it's associated with the position transferred shared services looking at fund sources the fund balance going fiscal twenty was thirty one point four four million the fund collected fees in the amount of seven point six two million the division spent four point one four million his or twenty and that leaves a balance of thirty four point ninety million going to fiscal twenty one the next request is on page one hundred and six is a little further on in the manual and as for the alternative fuels vehicle program. This section is in New appropriation request to establish a statewide network of alternative fuel filling stations and to offer rebates to vehicle owners who wish to convert to clean burning fuel in private and fleet vehicles is supported by the programs fund on page one of seven is the record of the appropriation summary again and twenty one zero as authorized in the request for the values for four hundred and thirty five thousand that's to create this new program a look at fund sources the fund balance going to fiscal twenty was four hundred forty nine thousand the fund collected interests in the amount of eight thousand and on the earlier page explains the original balance comes from a fund transfer from the Arkansas economic development commission in fiscal year two thousand eighteen so that leaves a balance of four hundred fifty seven thousand going to fiscal year twenty one. Then the exchange levels on page one oh eight this is the energy performance contracts request and this section is also a new appropriation request to administer the energy performance contracting program allowing the division to execute energy forms contracts and assure agencies receive contracted savings it's supported by the programs fund. On page one line as they're summary in twenty one there is nothing to authorize the request for the buy a new mystery in twenty five thousand each year in us to create this new program looking at fund sources the fund balance going to fiscal twenty was a hundred and sixty one thousand the fund quite interesting out of three thousand and so much the last requests on an earlier page explained the original balance comes from a fund transfer from the Arkansas economic development commission in fiscal year two thousand eighteen that leaves a balance of a hundred six four thousand going to fix their twenty one the next change those in page one fourteen it's for federal operations. The federal operations requesting page one fourteen this section provides for the weather is ation assistance program is supported by federal funding. On page one fifteenth summary in fiscal twenty one thirty four point two million was authorized the request for the for twenty two is forty three point three million and requests for twenty three thirty nine point three million that's twenty seven percent increase in twenty to a fifteen percent increase for twenty three those change those begin on a regular salaries on item three hundred eighty three thousand is authorized into one and request is for four hundred eleven for each year persons as personal services matching a hundred thirty seven was authorized under forty eight is a request for the biennium those are salary matching adjustments in the current biennium the requested to continue looking at the grants in aid line item twenty eight million was authorized and twenty one three question twenty two is for thirty seven point one million that's a thirty three percent increase in in thirty and and fiscal twenty three it's thirty three point one million that's an eighteen percent increase and this was a covered earlier by the secretary this is due to increase federal award for the low income home energy assistance program. Looking at fund sources the fund balance going to fiscal year twenty was four hundred twenty four thousand the fund collective federal revenue in the amount of three thirty seven point six million the division spent thirty point eight million fiscal twenty and that leaves a balance of seven point one six million going to fiscal year twenty one. I am sure those are all the change levels for the division of our middle quality. Thank you very much Representative della Rosa you have a question. Yes thank you Mr chair have hit enter button again I. Thanks to the state not only sound on it here. A my question is a on page seventy two and seventy three about the petroleum storage tank trust. looking at the numbers on page seventy three it looks like the fee that's funding this at least last year of generated seven point six million dollars. You spent four million dollars. And the fee that funds that it just says on page seventy two it's drive from environmental insurance fee assurance fee which is assessed it at a rate not to exceed three tenths of one cent for each gallon of motor fuel etcetera etcetera. What it since it's set to not exceed three tenths of one cent and sense it seems to be generating more than what the program requires what is the current rate set at right now. For that tax fear what. Fifty. It's probably in one of these books but I couldn't find a fat I believe the current the way the law and the rules the regulations set forth as the commission acts to adjust. It up to make sure that the the basically there's adequate funds but not too many funds collected in that so I believe it's down at the lowest collection right which is two tenths two hundreds of thank you said three on board are three tenths is what is so you cannot accept maximum and I believe two tenses the minimum it's it's set to either collected two tents or three tenths depending on whether it's accumulating a balance or its depleted and is based on how many other funds not only are being spent but also how many are obligated to be spent over the next a couple years so with that we weren't sure we have because these projects often take multiple years to complete so at this point I believe it has shifted down to the two tenths of a cent or that's before the commission to look at in terms of the balance but that is based on the wholesale price of gasoline sold across the state so it's a it's a at an environmental fee that's assessed based on the bit that there is a automatic action by the committee PC the commission to make sure that the collection rate is appropriate to not allow the balance to get excessive. All right thank you. Thank you on that same. Note there that professional fees line item. It said you spent seventy three thousand dollars last year but asking for two point five million an appropriation is that A contingency Just in case because of if we have a an accident or something that happens we would need professional fees. Yes that would be our contingency basis based on our a known releases in our obligations coming forward so we would keep that appropriation set to provide flexibility there okay. Thank you. And. Seeing no other questions on this section need a motion. Your motion executive wreck. And I got a second any discussion on the motion. On favor I. Any opposed. Motion passes. That Texas down to. Geological Survey Mr perish you're recognized to present that. They're on page one sixteen thank you Mr page one sixty so long three this is the request for the Arkansas Geological Survey it's a division within energy environment and the mission of this division is to provide geological information in order to develop enable effective management the state's mineral fossil fuel water resources pop protecting the environment page one sixteen shall state contracts with minority owned businesses implement some ran publications on page one seventeen is the department appropriation summary the division has six appropriation requests only one has a change level the total authorized budget because we're twenty one is two point five five million it's being authority division request one point nine six million for the biennium that's a twenty two percent decrease the division also request eighteen positions that's eleven down for the twenty and authorize the executive recognition provides for this agency requests the division's funding primarily from general revenue in federal grants. On page one eighteenth only change level this is for state operations this section provides for administration the division is supported by the general revenue fund. On page one nineteen is the appropriation summary and in twenty one fiscal twenty one two point one million was authorized for both years the biennium one point five million is requested these change those occur on the regular salaries in persons are Sebastian line items it's down thirty two percent thirty four percent leased line that's associated with position transfers to shared services about eleven positions looking at fund sources the phone collected and spent one point nine million in general revenue and twenty thousand from the performance fund Mr those are all the change levels for this division. Right. Six number represent della Rosa you're recognized thank you Mr chair to me again. A. FOR the Arkansas Geological Survey at I heard the very brief explanation what is the Arkansas Geological Survey. What is that what is what is that do I I heard the the. It's a lot of big words just can you just tell me what it is it does. Well under the Geological Survey service of the state the first for several party of programs first of another somewhat of a research organization there evaluating geological formations across the state they have they hope they have a professional geologist on staff and we have a state geologist that that's the in fact that's I think the longest serving state agency and our state but they do support some of the oil and gas activities in the state in terms of geological formation information to those private companies as well as our academia they also to manage and monitor the earthquakes services of seismic activity across the state as we look at the new madrick fault and other size make active areas that A so they keep. Monitoring and watch on that and utilize the some academic contracts also the to assist them in collection of that date or or reporting of that data and they also do a number of mapping efforts across the state the two SS you know what formations might have resources that might be future opportunities for the state's economy another several up metals that are of interest right now that they're helping to some mapping to see where those resources might be and where there might be interesting development and then I may have missed something efficient action curry wants to add to it I think there's additional work that they. There's a lot of research for seismic events and and and different research incentive Arkansas regarding seismic events earthquakes and we have our state geologist who's. More than happy to visit with you afterwards to if you want to know more about specifically what they do but does a mapping research mentor research seismic research. Those types of it it is just to be clear I wasn't trying to be sarcastic I just what it is what it is that it does I think the most widely known for handing out. The rock collection of the state and the logical rocks at schools they do a lot of education and to our and and to train the teachers on the value of the diverse geology in Arkansas I mean being the home of the only time in mind the you know there's different aspects of Arkansas the rather unique and so they also at a service a good public education resource to our teachers and other education on on held at those geological resources are important to the future economy of our state I also have house a large number of core samples from different wells that have been drilled throughout the state so that like when the fate of a shell started becoming that I guess the idea of the fate wish I was here there is they had a library catalog of these existing core samples were companies could come in and look at core samples drilled from older wells or other well so they maintain a robust sampling of course samples across the state as well so it kind of helps any basically mineral and oral on gas type resource they have a catalog or library of those they can go and visit with those geologist and also run samples on those existing core samples without having to go maybe drilling additional well at that point time Missy Irvin just as a follow up to that and one of the funds in here's the map resale fund on page one twenty one twenty one. It says that it's too. A it's of ten from the sale of geological and topographical maps to the general public. I would just ask that those be. The most minimum cost you could possibly charge to do that because it seems like we're using tax dollars the general public's money to collect the data and then we're charging them to look at it which I understand you know maps have a cost to print I I would assume they do but just to look at that to make sure that. You know we realize that the money's coming from the general public and make sure that we're providing that public information back to them at the cheapest possible cost that we can just to just to cover administrative costs thank you Lou Lou thank you and I know they also provide some of the federal USGS maps a topographical maps at a at a local level so people can just walk in the door and grab one rather than having to wait form so that's been a good resource for our of our construction and other industry thank thank you. Seeing no other questions a motion. Executive reckoned second. Second any discussion on the motion. On favourites. Any posed motion passes. Texas back to Mr perish. Thank you Mr chair room page one thirty this is the division start the liquefied petroleum gas board it's a division within the energy environment. The board enforces laws and safety requirements to regulate the manufacture sale installation and use of containers and equipment in the storage transportation dispensing and utilization of liquid petroleum gas is what page one thirty shows the contracts awards minority owned businesses employment semi publications. there's only one requests it's begins on page one thirty one it's a look five petroleum gas what operations and this section provides for administration of the division supported by special revenue fund. On page one thirty two is there summary in fiscal year twenty one four hundred nine nine thousand was authorized request for the biennium is five and thirteen thousand those changes begin with the regular salaries line item to just seventy two is authorized request for two hundred eighty two that's a four percent increase per services matching ninety three thousand is authorized ninety seven thousand is the request for the biennium making another four percent increase these are salary matching adjustments made in the current biennium that the request and to move forward looking at fund sources the fund balance going to fiscal twenty is one point five million the fund collected special revenue the amount of five hundred eighty one thousand over inspection Pirmin license fees the board spent five hundred forty seven thousand fiscal year twenty that leaves a balance of one point five four million going to fiscal year twenty one. Thank you and seeing no questions. I'm gonna motion for executive rack. And get a second all in favor I. Any opposed motion passes Mr perish final item to get some. Thank you Mr chair the last divisions the only gas commission it's on page one thirty three this commission protects the rights and interests of mineral owners and regulates all gas and prime production industries to ensure compliance with state and federal laws page one three three three one three four show state contracts were to minority owned businesses employment summary in publications. Page one thirty five is the department proficiency Emory the commission has three appropriation request to have a change level the total authorized budget is clear twenty one is seven point five seven million and spending authority the commission request sixteen point nine million for the biennium that's at nine million increase that more than doubles what was authorized the division also request thirty one positions that's down eight from was authorized as clear twenty one. The executive nation provides for the ages your quest and this division is funded primarily from special revenue those are fees paid by only gas production companies. On page one thirty six is the first requested the change level is the one gas commission operations section and this section provides for the commission's administration and operations it's supported by special revenue fund. On page one thirty seven is the summary in fiscal year twenty one four point eight million was authorized for both use the biennium four point two million is request that's a thirteen percent decrease changes began with regular salaries line item and personal services matching those are both down about twenty four and twenty two percent it's associated with position transfers the shared services the grants in a line item is authorized at three hundred fifty thousand the request for the biennium is two hundred and seventy five thousand so that's down seventy five thousand it capital outlay in there at those authorizing twenty one is zero to request for the biennium to seventy five thousand and this is a reallocation of that city five thousand from grants and AID to cap rally to purchase two vehicles. Looking at phone sources the fund balance going to fiscal twenty was forty point eight million the fund collected special revenue in the amount of two point six five million those are fees permits assessments and taxes levied on salt water use and provide production the division spent four point two five million Fisker twenty that leaves a balance of thirty nine point two three million going to fiscal year twenty one. On page one thirty eight is the next change level this is the well plugin program and this section provides for the administration of the program and is supported by the abandon an orphan well clicking fund. Page one thirty nine as the summary in fiscal year twenty one two point five million was authorized for both years the biennium the request is for twelve point five billion that's a two million two million increase the commission identified over ten million abandoned wells that needed plugging in order to avoid health and environmental damages I know that there's also request to change your special language to allow a one time emergency transfer of ten million into this section to pay for these activities looking at fund sources the fund balance going to fiscal twenty three point one four million the fund collected special revenue in the amount of four hundred fifty eight thousand because of forfeited bonds fees assessments reimbursements prop proceeds from the sale of hydro carbons any equipment left the band insights as well as gifts and grants the division spent four hundred fifty nine thousand fiscal year twenty and that leaves a balance of three point one four million going to fiscal year twenty one sure that is the request fourth or gas commission. Right The question on page one thirty seven under operating expenses line item. In the oil and gas operations It spent five hundred forty nine thousand last year A on that line with me and you're asking for eight hundred eighty seven thousand are anticipating a large growth in your operating expenses for the next couple of years. One thirty so. Page one thirty seven of the services matching there's operation expert rise and I think the if I recall correctly the first number the actual right so we we have budgeted close to that eighty seven for contingencies eccentricity rap not recommend any increases in their But basically depending on what type of some years we spend more that than others so it's really thank you sure that we have excess appropriation to deal with any contingencies that we made in those operations plus we're in the middle of consolidating several of our different administrative offices will have moving expenses eccentricity art of this on going change so we would requesting to leave there to cover any excess operations we may happen consolidating different facilities across the state okay. seat number fifty seven's centered Johnson I believe. Thank you Mr chairman A I was concerned about I just do explanation I'm not concerned I know you all do this right but on this wealth plugging program Twelve point five million dollars for the next biennium. is that if you say you've identified over ten million dollars on band in Wales now is that a. A continuing thing that happens or is this sort of a catch up amount of money to put to in to kind of go fix the problem we all of identified I guess what we're of entities would you anticipate that is a and your biennial amount for with this kind of the lease put is ahead on on this issue. We identify this is the known amount to plug the existing wells that are out there we've we've had authority in the past a transfer I think two million dollars in this fun per year we haven't always done that so this is a one time catch up and that we've also then proposing to reduce and subsequent years only transferring up to a million dollars as needed so most of these wells are historic wells in south Arkansas able to rate of specifically area will wells that were drilled in the twenties and thirties some of A many of me before the owned gas commission existed that we've identified so every year we identify we plug wells and we identify more well so that numbers kind of consistent or has been consistent but this is a one time catch up and then basically your mark the for the funding that we have to make sure we we've set aside and we have this ability to go put these known wells when we when the weather works and when we have the right contractors to do it those types of things great that entered my question thank you very much thank you Mr. Thank you senator and. See Representative Wooten. Are these of what these plugs well as of these what you call stripper wells these are truly abandoned wells where I mean they were they were. That they were one time wells that produce sixty eighty and maybe even a hundred years ago eventually became stripper wells and most of these that on our funding or or that are in the program right now they have no current owner they were abandon thirty forty fifty years ago and just the state now has the liability or the need to plug these one more question Mister what about fracking in White County and folder and Claiborne county do you see an increase in that or is it price going to have to go up mower. At this point I don't know if I would have to go back and look at that I don't think we of the real the new well and any of those counties and probably close to two years at this point there may be some work reserve existing wells is kind of what we're seeing in the industry but yes I think we would need a sustained increase in price for an extended period of time before we had a whole lot of companies come in and start drilling at large number wells by any means thank you Mr chairman thank you Representative and seeing no other question on entertain a motion. At a motion executive rack and second any discussion on the motion. On favourites. Any opposed. Motion passes you have a final fund up Mr chair I just wanted to correct two things that that we talked about earlier today one and senator Chesterfield question about the GS one I have confirmed that we actually do have someone in that spot and I'll make sure we follow up with senator Chesterfield on like she's here anymore and then secondly represented della Rosa your question about the petroleum storage tank in the environmental assessment fee it is currently at three tenths but we're anticipating that'll be roof moving down to two ten to centers we have commission action and have an opportunity to do that based on where the funding is now or at least that will be evaluated by the commission. Thank you very much for that clarification members tomorrow at eight AM the personnel subcommittee will be meeting in here and then we'll be back here at nine AM for the full committee we are adjourned thank you.