ALC-PEER

Thank you. Mr culture having thank you like to add all right thank you all for being here and with that we're going to try to a pair or through this agenda the first item is going to be eighty two was the adoption of the rules subcommittee rules do we have any questions. Saying that I have a motion for adoption motion second all in favor say aye. Thank you we're going to move on down to items for approval that's going to be items on B.. Thank you madam chair in section B. these are various temporary corporation request this section has request agencies to increase their spending authority on program supported by general revenue special revenue trust fund revenue or miscellaneous revenue most requests are for preparation only the agencies have sufficient funds but do not have enough spending authority in their preparation act to move forward with the project or activity. If the request is accompanied with the funding transfer from the restricted reserve fund it will be noted request a first approved by the FDA and then they come to L. C. for approval the first item is a letter from the office under state it's for fifteen thousand is being authority this is a covered district judge travel expenses the letter shows the eighty percent the line has been expended with another quarter of the year left to operate this is supported by the constitutional officers fund which is the one percent deduction from general and special revenues. Nicks I don't be too is a letter from the treasure state is for fifty million a preparation according to the letter increase economic activity in cities resulting in larger sales and use tax collections additional signatories needed to send these proceeds to the city's. I have number three is a letter from you CA for two million is being authority this is the cover extra help salaries due to a staffing shortage in full time positions this appropriation increased is to the section of their budget supported by general revenue. Number four is a letter from department of military for seventeen thousand an appropriation this is a massive federal cooperative funding agreement for their youth challenge program and supported by joint revenue. Number five the letter from the department of public safety crime information center is for three hundred thirty six dollars an appropriation this is returned remaining federal funds obtained through sales tax rebates number six is a letter from public safety commission on law enforcement standards and training it's for a hundred thousand preparation this is the cover increase food utility repair costs and support agent revenue. Number seven is department commerce division were for services as for sixty thousand is to provide assisted equipment to those with disabilities and the telecommunications access program this is supported by special revenue from a public service commission monthly surcharge on access lines in phone numbers. Number eight is a letter from the governor for eighty eight thousand five hundred seventeen appropriation according to lead this is to restore preparation to operated normal capacity the increase in spending three would provide the new administration with half of the authorized appropriation level for a six month period that the new administration's been office this is supported by the state center services fund that's a two point one percent the deduction all general special revenues. Number nine is a letter from the department of public safety is for the division of state police it's for five point eight million appropriation this is a purchase motor vehicles the funding will come from a restrict reserve fund transferred this requested later in the agenda this item if one. Number ten is a letter from DFA disbursing officer this is for four million a preparation this is a purchase vehicles for state agencies and institutions using agency and institutional funding three point five million was approved by peer review in February for the same purpose according to the if a little supplying vehicles that the fewer purchases over the past few years with supply normalizing a request an additional preparation as demand for vehicles corresponds to this increase supply in the State fleet has continued to age with no replacements. Item number eleven is a letter from DFA's first officer this is for two point five million appropriation this is to make payments to county and municipal fire departments from increase collections this is supported by half of one percent tax on insurance policies written for real and personal property and then share those are all the various debris preparation quiz thank you our representative Ladyman do you have a question. Yes I do thank you man share on B. two. the increase there if I'm saying that correctly that's the term back funds for cities. The correct. Yes a why is that we're we're is that increase. Coming from does that mean that we're we're getting more funds from sales tax. The can you explain a little bit. Yes Sir you're correct of you like to have a deeper explanation though the if they can come to the table. Yeah if you would like to know how that's with someone from the FNA please come down. To be able to answer. And if you please introduce yourself for the record. And you're recognized. Andy Bevin the FAA. A representative Ladyman yes over the last couple of years this is been a normal request towards the end of the year as sales tax revenue for the state has increased that turned back to the counties and cities has also increased and they've just ran out of operation for lack of better terminology. So is this tax increasing more than we projected or we thought it would. This increase in income I think it's just the normal sales tax have grown at such an extent I'm kind of thinking back through some discussions with our economists believe sales tax have increased roughly eight percent over the last couple years and that's just outpaced the growth in this the preparation request thank you. You're recognized. Is anyone here from treasure's office. If you please come down. And if your introduce yourself for the record. You're recognized. Good morning madam chair members of the committee I'm Stephen bright time the director of governmental affairs for the treasure. Representa Wardlaw thank you madam chair can you give us an update on where we're at on the treasure's condition and when he's going to be back in the office absolutely well I can't give you an update on when he is going to be back in the office of the treasurer we're having conversations with him almost daily by soon he is currently in Maryland with his family continuing his rehab his physicians thought it was best that he be able to be around family why he was going through his rehab but he continues to make decisions he continues to be involved in the the day process in fact will be having a conversation with him at one thirty four our executive team meeting okay thank you. Members do we have any other questions on any of the items. B. one B. two three four five six seven eight nine ten or eleven. C. nine I would entertain a motion to that I have a motion second all in favor say aye. Okay with that I'll take a motion for approval of these items in bait motion second all in favor say aye. All right with that we're going to move down to Adams number C.. Thank you madam chair in section C. these are American rescue plan appropriation request. The American rescue plan as a federally packaged offer relief contain COVID and provide economic support special enterprise AOC approval of seniority for any award of funds that came from the American rescue plan. All representatives agenda are two state agency or institutions that came directly from the federal department office there are no steering committee or governors discretionary awards the first item number C. one is for the public health this is for seven hundred fifty seven thousand is to support immunization information systems and to support the administration of vaccines to recently displaced Ukrainian FOR settled in US. Next item is on page three. Page three C. two This Is Department of Health epidemiology laboratory capacity as well let them point four million this is to detect monitor mitigate and prevent the spread of infections in healthcare settings and nursing homes and other long term care facilities next item is number of forces on page six. I'm sorry number three C. three is on page six this is for Southeast Arkansas college this is a reallocation of previously we're appropriation they're moving six hundred twenty thousand from operating expenses to a different line item dedicated to covering lost revenue other questions as to the cause has experienced continued enrollment Khan next item is on page twelve. Page twelve C. for this is the department Education Division of elementary and secondary education this is also reallocation previously awarded appropriation on pages thirteen fourteen those pages behind this request it shows the agency is obligated ninety six point seven five million solicit projects staff spoke with agency learn that there are more resources that will be devoted to items on page fourteen that's in a category number three title direct support for families I'm sorry direct support for students specifically the agency will move more support items you through eleven categories so that for item eat literacy coaches this activity will not be funded at six point two million for item F. at supplemental education services it will now be funded eight point five million and frightened G. high impact tutoring it will not be funded at twenty million the agency noted all other items in this plan will still be funded at their previously authorized level but will use funds from other COVID related dollars a federal or such as care spending next item is on page fifteen. Page fifteen C. five this is the department health and for twenty nine million this is to support the work force through modernized modernizing processes increased training and professional development increase was among staff and make investments in equipment and critical supply next item is on page seventeen. This is C. six on page seventeen this is for Arkansas school for the blind this is a reallocation previously word appropriation and they're moving two hundred nineteen thousand from in school acceleration and tutors to facility maintenance after school programs summer school in technology request knows there have been savings due to the difficulty to hire and retain a literacy specialist and tutors and the reallocation will allow them to devote the funds on other areas of learning loss next item is on page twenty four. On page twenty four C. seven this for the Department transportation this is for four hundred seventy thousand appropriation is to assist nonprofit agencies that serve seniors and individuals with with disabilities that's to purchase specialized vehicles with accessories such as wheelchair lifts restrains the eight vehicles to be purchased in their service areas are listed on page thirty one next item is on page thirty three. Page thirty three C. H. this is Arkansas state university Newport is for one point two five million an appropriation as provide direct grants and support services to students for emergency relief I'm sure those all the ark if your quest thank you representative Ladyman do have a question. Yes thank you manager on C. for their the ESR funds. will that be allocated this is additional Esther funds allocated correct no Sir this is so they have previously been awarded appropriation and with our questions do here is to read ninety three purpose just that shift some resources to those items that I spelled out of all other items will still be funded at the level that they've been projected however their use other funds to support its attorneys cares funding for some of these items in their shifting those A. R. P. funds to these three items for literacy coaches supplement education services in high impact. So there's no change in the way these funds are distributed throughout the state to the state to the different schools that doesn't change this is the this is the appropriation is devoted to the department of education so this is outside the funds are going directly to schools I probably have the Department come up to speak to that with more detail the. Someone from the department here. The four C. C. for thank you for coming down if you'll please introduce yourself for the record and you're recognized. Thanks check Greg Rodgers R. education. So what we had was the as refunds and the cure funds and we're still want to take care of everything we excuse me can you speak a little closer into my okay thank you better okay so the gear funds that were shipped in some of what we had previous put in this plan for the A. R. P. funds into our secure funds which allow us to use it is thirty four million dollars of A. R. P. funds to do these new projects. So there's not any change in allocation we're still using the same the same funding we're just re purposing for what we have because we have the room to do that now. Okay thank you. Representative Cozart do you have a question. Do you have a question. The. We're. Representa Fortner do you have a question. You're recognized thank you madam chairman I could see how you could confuse the two of us. This is about C. five and the Department of Health. Yes my question is under indirect cost a little over three million I just wonder what what those indirect costs might be. Do we have anybody from the department health. If you're please introduce yourself for the record. And you're recognized. John Adams I'm the deputy director and interim chief of staff for the department health. You're recognized Joe Thompson chief financial officer department of health. So with these funds the twenty nine million is over five years so it's a proxy six million a year so that's the amount of funding over five years that will go towards in direct and indirect is the amount of money is a percentage from salary and friends that the Department takes for indirect call such as administration IT and all the various expenses to operate the Department the majority of the funding for this grant is going towards funding existing salaries so that is why that number as high as to percent of that amount. So a follow up. So are you don't have specific. Thanks in mind that you're gonna spend this for this is just a percentage of what you may need is that correct I understand that only indirect portion on the indirect yes I'll let my CFO Joe Thompson elaborate on all the you know what the indirect funds will go towards. Yes Sir we do have itemized budget they can show the the amount that we project for salaries for indirect but also for I. T. cost and others that are within a category so we do have an itemized budget. Okay. Why why would that not just be included in salaries and end the things or any white why is this down here as an indirect and not specifically for what you need. Sir there wasn't a an equation or like a formula that we had to adhere to for the federal government and that with those of their standardized that's the magic word dear to the federal government okay thank you you're welcome. All right thank you all. All right Senator Hammer do you have a question yes ma'am thank you measure on or on C. five run one lecture on the right one so yes Sir when it when it comes to the description up there for the usage of the money and this is all this money federal money is that correct. Correct okay. The some of these things are things you would think would be covered in the day to day operations that would already be there like high you know like blood pressure monitors. All those kind of things so. Are these I'm not covered in what's already budgeted into the Department health's budget. Senator Hammer this is a kind of a unique grant that re received from CDC it's what's called non categorical and allows us a lot of discretion on how we spend the money and so it's also considered a gap filler to feeling and where maybe we're losing funding down the road or areas that we might be short on funds so we were allowed discretion on how we spend this money for example those forty two staff members I mentioned earlier there funding will be running out over the next eighteen months of this funding will pick up those salaries for that work on those blood pressure those of those blood pressure machines that people can. A self serve blueprint blood pressure kiosk and we're going to put one in every local health unit so our staff and the general public can use that that's something you know those machines are pretty expensive we not have funds to spend on that in the past but this these funds allow us to do that so the items that are being purchased or the things are being done with this money we're not part of the existing budget that we approved in this last session so that it creates a surplus in the department's with this is this all new new item this is new options I'm sorry of this is either new or continuing things that we no longer have funding to do in the future. Okay all right thank you. Any other questions members. questions on C. one two three four five six seven eight. C. none I would take a motion the batch motion second all in favor say aye. All right now we have a motion for approval on items and see motion second all in favor say aye. All right thank you members are going to move down to Adams date. Sorry Senator Chesterfield just point of personal privilege madam chair a I it is my honor to introduce a member of my congregation first missionary Baptist church who is interning this summer he is going into his sophomore year at the university of central Arkansas and has been accepted into the honors college Mr Jiang Sancious chamber to stand please. Welcome. You're welcome I believe we want to do items date thank you madam chair in section D. these are the infrastructure investment jobs expropriation quest and the IJA is a federal funding package the pass at the end of twenty twenty one similar to a a RP funds special language requires state agencies request new spending authority before utilizing any federal infrastructure funds at the request require prior approval by L. C. is one one item on the agenda that's the one this is the proper public safety division of state police this request is to establish a position a statistical analysis measure for the highway safety office and that's the data collection and analysis for highway problem identification and provide technical support and training for law enforcement efforts the position would be established here in Pierre and the position titling grade will be reviewed in the personnel subcommittee. Thank you any questions members. CNN I take a motion motion second all in favor I okay thank you we're going to move down to item eight. The man chairman section E. these are appropriation and or fund transfer request special language in certain department appropriation acts allow transfers an appropriation or funds after being reviewed by LC II one is DHS division of aging adult and behavioral health its request to transfer one point five million in funds at this is to move general revenue to the department's renovation fund for the purposes of repairing renovating equipment equipping acquiring and constructing facilities the letter says the funds will be for projects at the Arkansas State Hospital in the Arkansas Health Center and that they need significant maintenance and upgrades the special language also requires approval of the governor and that letters include on page two. The next item he too is on page three this is also the justices for the Division of Youth Services it's four eight hundred thousand to be transferred and similar to last request to transfer will move general revenue to the renovation fund for projects at the division of the of the youth services facilities thank you any questions members. Questions on one eighty one eighty two saying that I take a motion the batch. Motion second all in favor say aye. All right take a motion now for approval in my items each motion second all in favor say aye. All right we're going to move down to item number if. Thank you ma'am chairman section F. these are restrict reserve fund transfer requests of the first one F. one is for the department public safety division of state police this is a five point eight million dollar transferring from the majority vote very improvements set aside this is to purchase motor vehicles the preparation to spend these funds was requested earlier eight earlier in the agenda on B. nine. Next item if two is a request from the department of commerce division of Arkansas rehabilitation services this is a ninety thousand dollar transfer is from the majority vote set aside and this is to support the maintenance of the old army navy hospital Hot Springs. Thank you does any questions on F. one or F. two motion the batch. Second all in favor say aye. Now we need a motion for approval motion. Second all in favor say aye. All right thank you now we're going to move down to the items for review we're going to be on Adamjee. Thank you ma'am chair in sections that represent a Wardlaw do you have a question I have a question on G. on James okay I will take out put you back in all right. The manager were inspection G. this is appropriation or fund transfer requests similar to the earlier section but these transfers only require review action by the subcommittee there's only one item this is the Secretary of State it's a three hundred fifty thousand dollar transfer of appropriation to operating expenses and capital outline items according to the letter the transfer will ensure the office is able to handle closing out on on going projects by the end of the year. Representative Wardlaw you're recognized anybody here from secretary of state's office. Secretary of state's office. Please come down introduce yourself for the record and you'll be recognized. For. If your chance again. Thank you madam chair Kurt Nauman director of business officers this office. Jordan you are assisting business director secretary of state's office you're recognized thank you madam chair current can you explain to me. Looking at the back page year it's confusing to see all three are thousand are transferred fifty thousand I'm guessing as to fund we're putting money in it and you're taking it from a hundred fifty thousand a hundred and a hundred can you explain to me what projects are on going where this money is going where it's coming from can you give me a background here a yes Sir due to the completion of projects in the the fact that expenditures of gone up considerably this year what we're doing is basically transferring funds from a professional services a little bit from elections and some from special maintenance fund that we have generally into our general operations and also for capital outlay what we're going to do with the funds for the capital outlay that will allow staff it's a police cars that we've recently purchased also make available funds if we need for facilities equipment improvements and also to allow us to pay off invoices for projects that we would be either put off until next year or delayed the invoicing. So madam chair if I get a little leeway so did did you ask for an increase in those appropriations as last session because you know as you just said that all the costs are going up so we're going to see you do this again next year how's this going to play out we did not ask for any increases in any these appropriations during my tenure at secretary's office we have not asked for an increase in operations in any of our budgets this is since two thousand and eighteen we try to stretch dollars is best that we can this year is a little bit different we're cutting it close towards the end of the year what we're doing is just basically transferring the money so that we can make sure that we pay all those bills timely this year we have not increased our budget for next year and don't anticipate that we will so are you saying you didn't pay those invoices timely last year no Sir it's just that we have invoices that we can pay for projects or we can the lamb until next year by paying the invoices this year gives us more flexibility next year to proceed with projects it's kind of like robbing Peter to pay Paul as they say if we can transfer the funds that we have for an existing appropriation we would just rather go ahead proceed with those projects pay those bills down and then start next year fresh. Okay thank you manager. Does any other questions. Well without objection these items stand reviewed. All right we're going to go down to H.. Thank you madam chair in section H. these are cash appropriation request this section has requests from agencies to increase our spending authority on programs that are supported by cash revenue fund examples of cash revenue or tuition for colleges testing and registration fees paid to licensing boards gift shop sells museums and other direct revenue collections by state agency or institution the agencies have sufficient funding but do not have the spending authority in their preparation act moved forward with the project or activity if the request is accompanied with a funding transfer from there should reserve final note that a request a first approved by the F. in a and in the come to L. C. for legislative review the first one is H. one this is a letter from national parks colleges for two point almost two million dollars this is the preparation this is a paid property expenses and travel from the additional funding that came from federal relief funds. Next item H. two is a letter from the department of commerce securities department is for forty eight thousand it's been an authority is to make in making the county correction the letter explains it tends to create holder exemptions were filed incorrectly in the increase will out apartment to correct budget next item is H. three to letter from parks heritage tourism division of state parks this is for one point five million appropriation is to ensure overall facility operations services the letter explains the department has faced rising cost inflation supply chain delays in repairs from required Lee Catherine state park closure and if these expenses were not anticipated. Thanks for all the requests thank you any questions for members. Seeing none without objection these items stand reviewed we're going to move down to II. Thank you madam chairman section II. These are budget classification transfer request and Arkansas Code allows agencies to transfer appropriation among the five sub classifications of means operations request a first approved by the FAA and then they come to L. C. for review the first item is department finance administration alcohol beverage control is for an eight thousand dollar transfer operating expenses according to the request is to support agency operations number two is judicial discipline and disability commission this is a nine thousand dollar transferred are pretty expenses is to meet financial obligations. Number three is also Attorney General it's a twelve thousand dollar transfer to capital outlay this is the purchase of forensic workstation for their special investigations division number four is public employees retirement system the judicial time in office this is ten thousand or transfer of professional fees is to cover expenses incurred during the most recent legislative session number five is the if a budget management services it's a fifteen thousand dollar transfer to converse to travel and this is to cover the increased cost of travel to conferences. Thank you any questions members. Seeing none without objection these items stand reviewed and we're going to go down to J.. Thank you madam chair were in this lands federal grant appropriation request this section is requesting agencies to increase their spending authority on programs are supported by federal grant request a first provided if a in the Committee LC for review of the first item or wants to publishing services is for thirty million this is a grant to pay for the increase in child care and early childhood education expenses. Number to the department of health it's four one point three million in a grant from the CDC to make improvements to foundational infrastructure such as electronic document processing and reporting. Number three is apartment commerce insurance department this is for seven hundred and thirty seven thousand they have a grant from the department of health and Human Services for the state insurance assistance program to develop and maintain a network of local providers. Next item number four is department commerce interest or a department this is four four hundred thirty three thousand federal preparation and to establish three positions in a grant from the department of health and Human Services for the state Medicaid patrol program request knows this great being transferred from DHS to the insurance department. Thank you members any questions. Seeing none without objection these items stand reviewed that we're going to go down to okay. Thank you madam chair in section K. these are PAYPLAN preparation quest. Fifteen agencies requests a little over two million is being thirty for salaries match in extra help. All but one requests increase due to performance increases benefit increases charge by the employee benefits division and other salary adjustments the one exception is the economic development commission the request twelve thousand extra help for the summer intern program the three largest request our state crime lab five hundred eighty five thousand department public safety fourteen seventy thousand and the crime information center at three hundred forty five thousand. Any questions members. Senator Chesterfield you're recognized thank you madam chair since we're dealing with the crime lab I'm wondering if someone could tell me if we are having a backlog as we have had in the past are we able now to address the the needs of families whose loved ones if. Has been lost to us as an agency here. Is it anyone from the crime lab. If you're introducer self for the record. And you'll be recognized. Good morning I'm John Smith the chief fiscal officer for department public safety. I can't really talk to you about the backlog for the crime while but I'm the only one here for. Could you get that information I can get thank you if you get that information and just send it to staff and we'll get it out thank you thank you so much. Any other questions members. Seeing none without objection these items will be reviewed and with that we're moving down to reports were built section L.. Thank you ma'am chairing quarterly reports the first one is for DHS this report shows quarterly inter agency and division match fund transfers as required and special language report shows over nine point four million transfers from the individual divisions fund accounts to the corresponding grant payment accounts this report is for the Office of Attorney General it's a cash settlement fund report and this report shows quarterly cash account activity the report details eight settlements in shows a balance of the cash funds cash receipts and disbursements the next report is L. three this is the division of Arkansas State Police asset forfeiture expenditures report and this report shows the the the expenses for each quarter of the fiscal year the first page report shows sixty five thousand and expenditures for the third quarter at the TPC zero one hundred fun S. the federal asset forfeitures fun and on the second page is two hundred eighty five thousand expenditures in the third quarter of the TPC zero two hundred one that is a fun for the state asset forfeitures L. for is you the federal grant applications and awards reports and these reports show all federal grant cations towards by city agencies in the third quarter of fiscal year twenty twenty three. Any questions members. Thank you with that we're going to move down to M. which is going to be monthly reports. Thank you madam chair the first report in the month reports is M. one this is a surplus income and distribution report and it shows sources of unobligated funds and then the distributions from the rainy day restrict reserve and long term reserve funds as of the end of April the rating fund shall sixteen point five seven million distributions in the balance of zero please note the fund expired by legislation at the close of the last calendar year there should reserve fund shows three hundred sixty five point six million distributions in an overall balance of two hundred fifty five million that new balance will be two hundred forty nine million after the almost six million transfers on today's agenda. The total catastrophic reserve fund balances one point three six billion of the next report into is the budget stabilization trust fund report. And it shows cash alone throughout the fiscal year as of the end of April there are fourteen point nine million in outstanding loans in the cash balances a hundred seventy point nine million. M. threes tobacco settlement report and it gives a summary of income fund balances investments actual **** stay in on the second page all expenses by fiscal year. M. four is this the central services report and this shows the fund balance and disbursements as well the expenditures in each agency supported by the fun and the last four and five is the American rescue plan report and the first five pages report shows requests that were approved by the ear piece your committee that the state has discretion in awarding on the six page begins attachment eighty that's report of funds are sent directly to state agencies from various federal offices and on page thirteen is attachment B. that's report of the RP funds are sent directly to institutions of higher education. Members any questions saying none I want to we're gonna move on scene no other business we are going to be adjourned thank you for coming.