Arkansas Legislative Council (ALC)
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Senator Ben Gilmore
Unverified
1:00
All right, I'm going to ask members to begin taking their seats so we can get started here in just one second.
All right, good morning. I'm going to call Arkansas Legislative Council to order, and we are going to begin with a prayer. I believe it is
Representative Warren who is going to do that for us. So, Representative Warren, you're recognized. Please stand for the prayer. Thank you, Mr.
Representative Les Warren
Unverified
1:52
Chairman. Please pray with me. Our Heavenly Father, we thank you so much for the time that we get to come together this morning.
father we we thank you that we get to live in such an amazing state father we lift up the leadership of this state we ask for your divine guidance as we do the business of this state father we also lift up the leadership of this country father we're in unusual times father we pray that you would guide every step that's taken we also ask that you watch over guide and protect those who are serving. Father, we ask that you be with us today. God, everything that we do
so that what we do will be pleasing in your sight. We ask all these things in Jesus'
Senator Ben Gilmore
Unverified
2:47
name. Amen. Thank you, representative members. Good morning. Thank you
for being here. We will begin with item C. That's the approval of the minutes of
last meeting. i will entertain a motion to adopt those i have a motion have a second any discussion on those seeing none all in favor say aye any opposed eyes have
it all right dr silva if you would
please come item d will hear the revenue report please recognize yourself and introduce yourself for
Speaker 20
3:22
the record and you may proceed thank you mr chairman carlos silva bureau legislative research And I'm here to present the February 2026 monthly revenue report. As we look into page number one, you see a $5.36 billion. They're collecting gross revenues. There's $89 million above the last fiscal year today, around 1.7% above last fiscal year today.
As we start looking to the deductions, you're going to see net collections at $4.5 billion. That's up $163.7 million from last fiscal year today. from those first eight months of the last fiscal year, or around 3.7% of February 2025 when you look on those first five months. As we move into
Representative Jim Wooten
Unverified
4:04
page number two, we'll have here the update of the forecast, so the cumulative deviation from DF&A net general revenue available for distribution forecasts.
So if you look into this line here, $7.4 million, that does not mean they went down from $160 to $7.4 million. This is a reset. So originally, the forecast had an expected surplus of $185 million. Now with the updated forecast by
Speaker 20
4:31
the FNA, there's an expected surplus of $334 million. So when you add the $185 to this $160, that's kind of what it is. So when you move into February, that has
Representative Jim Wooten
Unverified
4:42
been $7.4 million above what the FNA expected.
So things still moving forward with that. As we're moving to page number two, page number three, you're going to see gross receipts taxes. You're going to see a small decline there on this month at 3.5%. A portion of it is refunds, economic development refunds, around $10 million. So when you take that out, that's even to what happened on the last month, last year, February 2025. As we move down here on the other pages, you're going to see large changes again on driver
Speaker 20
5:17
search fees and things related to driver search fees against that timing issue.
It's a timing thing. You're going to see 5,000 and 6,000 percent change, but just timing does not mean there's
Representative Jim Wooten
Unverified
5:28
anything major going in there. As we move into our major discussion here for what is going on this year, this month, there's some fluctuations in payroll numbers, as you guys have seen at the national level. And when we start looking into private data and not only relying on the public data, you see that it's a low-hire environment. There's some fluctuations, but still in a low-hire environment.
As we look into our surrounding states, they have provided the monthly revenue for February. They seem to be in a similar situation in the state of Arkansas
Speaker 20
6:03
with a slight increase on their collections close to what they're expected for this month. Without taking any further
Senator Ben Gilmore
Unverified
6:10
questions related to this report. Thank you, Dr. Silva. Looks like we do have some questions.
Representative Jim Wooten
Unverified
6:16
Representative Wooten, coming to you. You're recognized. Thank you, Mr. Chairman. Doctor, in looking at the report, I want to ask about two things.
The first one, I see a lot of minuses in corporate income, corporate taxes, and then miscellaneous taxes that are down and then a 27% drop in the beverage tax of all the tax collections, 19.2% minus. Because why all the minuses this month? Is it the time that we collected taxes fell differently, or what's the reason?
So, Sergeant, you're up. So, yes, there's a couple of things that could have happened here, right? So, first of
Speaker 20
7:02
all, you're looking to some of the taxes. The last few years were higher because of those tax cuts, right? So we expect that you see that. I want to talk about taxes. And then when you
Representative Jim Wooten
Unverified
7:11
look into some of the other collections, you've got to remember that some of those gross sales tax numbers have come into later January, right? And so then we had the winter storm. It was kind of a large winter storm. So we expect to have a small impact there. And when you look into some of those specific categories, those are small numbers.
But as you look into the overall here, you're not going to see much of a change.
Speaker 20
7:37
But we're looking to the state as a whole, and what we're seeing is, as of
Representative Jim Wooten
Unverified
7:44
right now, a positive trend. Well, do you think that we're moving toward a trend when we have minuses like we have on this report? And let me preface that by saying, if I may, Mr. Chairman, the Iranian war has taken its toll on truckers, farmers, and then just the ordinary, hardworking citizen of the state out there.
It's good for sales tax increases with prices going up. But do you think it's going to impact us on our income for the state? So that is a great question. One of the things that we're
really looking to right now, it is the length of this conflict, right? So is this going to be a short
Speaker 20
8:29
term or is this going to be a long term? And that is really going to help us understand how that's going to impact not only the households, but also the firms in the state of Arkansas. If there's any specific scenario that you would like us to look into, I'll be happy to talk about,
because there's a lot of scenarios that could happen, a lot of things that could happen between now and then. As last meeting, we didn't expect this to happen now. We're in a different situation. If you have any specific scenario, I'd be happy
Representative Jim Wooten
Unverified
8:59
to discuss with you. But unfortunately, if things stand right now, I would be speculating
Chair
Unverified
9:06
what's going to happen. So I'd rather not do that as your staff. Thank you, Mr. Chairman. Thank
you. Thank you, Representative. All right, going to Representative Leitman. You're recognized.
Thank you, Mr. Chairman. I've got a question on page six about the natural gas severance, special fee, special fees.
I think I may have asked you this a couple months ago, but that number is up quite a bit, like almost 60% for the year and about 30% for the month. Quite a bit of difference there. But is that an anomaly, or is that what's going on there? Are we producing more natural gas? Does it have anything to do with, like, the Fayetteville shale or anything? The natural gas one is an interesting one
Speaker 20
9:49
because it depends on how they collect. There are some other things that they can take it out.
So when price changes, we have some price fluctuations, we're going to see huge shocks. And that's kind of what happened there. When I talk about natural gas, you're not going to see a huge increase because it's a finite resources. So to my knowledge from last time I have talking to some of the individuals related to this, there's not really a large change on extraction. But basically it is the change on the – as price fluctuates, you're going to have these huge spikes because of the way that the taxes are collected. There are some other things they can deduct. Well, I know the market fluctuates a lot.
I know that. But, I mean, this is over a period of time and 60 percent, so that may be a trend. That's why I'm asking. Yes, sir. So,
Speaker 20
10:34
as I said, it depends on how things are taking it out first. I had some notes before the last few months about
Speaker 40
10:40
the natural gas price. I don't know what I want to talk about because I might be wrong to hear exactly how it has changed, but I'll be happy to talk
Speaker 20
10:49
to you afterwards. Just give me a few minutes here to kind of make sure I look into my data. Thank you.
Senator Ben Gilmore
Unverified
10:56
Okay. Representative Johnny Rye, you're recognized. Thank you, Mr.
Representative Lee Johnson
Unverified
11:00
Chair. Sure, let me ask you this. At this point, it all looks pretty good. But overall, can I ask you, what is the inflation rate, do you think, in Arkansas at this point? So
Representative Jim Wooten
Unverified
11:16
we have a few points, right? So let's go back to the original conflict we're talking about
Speaker 20
11:22
right now. So how long that's going to progress might be an impact on inflation, right,
because that's going to increase. That's an input for many goods. So we're going to see that in the long term make an impact. But it all depends on how long this is going to last and how we adapt to those changes. So as of right now, we have less than a month of this going on. If this progresses, then we might expect to see an impact. But then, again, I'll be speculating on how long this is going to last. If there's a specific scenario, as I said before, that you'd like me to talk to you about or discuss, I'll be happy to.
But right now, there's many things in the air that I cannot really opine. but you
Representative Lee Johnson
Unverified
12:03
know like you say if this continues in which you know this gasoline going up we don't know what's going to happen with this but like over a period of time it's probably going to have an effect on this budget wouldn't you think as
Speaker 20
12:18
your staff i i can give my opinion on that sir i i can talk about what what is out here i can talk about what what some other data source that we're looking to and and other data providers that we talked about but i cannot really give my
opinion on what what's going to happen
Senator Ben Gilmore
Unverified
12:36
okay thank you sure and thank you mr.
Representative Denise Garner
Unverified
12:40
chair thank you representative representative garner I've just got a quick question on the the economic development incentives that's also up to page one that's also down 34 34.9% is that are those specific or specific incentives that are down or how how are we measuring that and what is
what is it that's down. Yes, ma'am. You're talking
Representative Jim Wooten
Unverified
13:01
about the Economic Development Center Fund here.
A big portion of this, they create rebates so they have
Speaker 20
13:07
new jobs, and that change from year to year. We do not have a detail on exactly what they are. That's something we need to talk to the agents about, but those changing from year to year, and a
Speaker 46
13:17
big part of it is that this create rebate for new jobs and things
Speaker 25
13:23
like that. Okay, great. Thank you. Thank you, Representative. Okay, thank you, Dr. Silva. Seeing no
Senator Ben Gilmore
Unverified
13:29
additional questions. you're out of the hot seat all right members moving on to f which is the or excuse me e which
Representative Les D. Eaves
Unverified
13:38
is the executive committee report thank you mr chairman the executive subcommittee met yesterday and approved a waiver request for cooperative purchasing construction services for the stuttgart school district the subcommittee approved two contracts one for the consulting services for the hospital medicaid and developmental disability studies subcommittee related to their ongoing study, and one for actuarial services related to oversight of state property insurance issues. Copies of those contracts are attached to this report in your packets, and the subcommittee also approved a motion to approve the use of BLR funds for renovations to Committee Room C.
Senator Ben Gilmore
Unverified
14:12
And, Mr. Chair, I have a motion at the proper time. Okay. Let's hear your motion. I move adoption of the report. Thank you. I have a motion. I have a second. Any discussion on the report? Seeing none, all in favor say aye. Aye.
Any opposed? Ayes have it. Thank you. Moving to item F, let's go to item one under F, which is the rules.
Representative Matthew J. Shepherd
Unverified
14:41
Representative Shepard, you're recognized. Thank you, Mr. Chairman. The Administrative Rules Subcommittee met on March 19, 2026.
The subcommittee approved one agency request for exclusion from the reporting requirements for rulemaking. Subcommittee accepted the recommendation of the Arkansas State Library concerning the extension of rules pursuant to Act 781 of 2017 and Act 65 of 2021. Subcommittee received agency updates on outstanding rulemaking from the 2023 regular session and filed agency's monthly written updates on rulemaking from the 2025 regular session. And all rules were reviewed and approved, as noted in the report.
And I would move adoption at the
Senator Ben Gilmore
Unverified
15:21
appropriate time. All right. I think that is the appropriate time. So we have a motion. Do we have a second? I have a second. Any discussion on
the motion? Seeing none, all in favor say aye. Any opposed? Ayes have it. Moving
Senator Jim Dotson
Unverified
15:39
to the claims report. Senator Dotson, you're recognized. Thank you, Mr. Chairman. The Claims Review Litigation Reports Oversight Subcommittee met on Monday, March 16, 2026. the subcommittee reviewed 13 litigation reports and one litigation settlement
one dismissed claim appealed by the claimants was referred to the Joint Budget Committee's claims review litigation reports oversight subcommittee the subcommittee affirmed the decision of the Claims Commission as to all other claims on the agenda mr. mr. chair I move adoption of the report all right
Senator Ben Gilmore
Unverified
16:09
I have a motion do I have a second I have a second any discussion see none all in favor say aye. Any opposed? Ayes have it. Thank you, Senator.
All right, we're going to move down to
item number four. Senator Irvin, you're recognized. Thank
Senator Missy Irvin
Unverified
16:27
you, Mr. Chair. The Game and Fish State Police Subcommittee met on Tuesday, March 17 at the Joe Hogan Fish Hatchery in Lone Oak, Arkansas. The subcommittee received an update from the Arkansas Game and Fish Commission and toured the joe hogan fish hatchery facility i would encourage folks to look up the arkansas legacy lunker program and go largemouth bass bass fishing this weekend for an opportunity to win
an incredible bass boat but look up the program so that's my report i move for adoption of the report at the proper
Senator Ben Gilmore
Unverified
17:06
time all right this will be the proper time thank you senator it sounds like We're doing a fish fry at your house. Do I have a second on the motion? I have a second. Any discussion? Seeing none, all in favor say aye. Aye. Any opposed? Ayes have it. All right. Number five, higher education subcommittee.
It looks like Senator Davis, you are recognized.
Senator Breanne Davis
Unverified
17:28
Thank you, Mr. Chair. The higher education subcommittee met on Wednesday, March 18th. The subcommittee received the annual certification of adequate funds, fiscal year 2025 through 26, as required by law. The subcommittee heard testimony on the following items, artificial intelligence and education, and ministerial and community programs in schools. I move for adoption of the report at the proper time. All right, this will be the proper time. I'll take
Senator Ben Gilmore
Unverified
17:52
that motion. Do I have a second? I have a second. Any discussion? Seeing none, all in favor say aye.
Aye. Any opposed? Ayes have it. All right, moving to item six. Representative
Chair
Unverified
18:06
McNair, you are recognized. thank you mr chairman the highway commission review and advisory subcommittee met monday and heard testimony on the efficiency study recommendations rules for implementation quarterly land conveyances reports infrastructure investment and jobs act reports report on annual expenditures of revenues and the report on highway construction projects of
10 million million dollars or more i move adoption of the report at the proper time
Senator Ben Gilmore
Unverified
18:36
Proper time, I'll take that motion. Do I have a second? All right, I have a second. Any discussion on the motion? Seeing none, all in favor say aye. Any opposed? Ayes have it. All right, Representative Mary Bentley, you are recognized for the Medicaid subcommittee
Representative Mary Bentley
Unverified
18:51
report. Thank you, Chairman. The Hospital Medicaid and Development Disabilities Studies subcommittee met on February 24th at the Central Arkansas Council in Benton. In addition, the subcommittee met on March 2nd to discuss the final report provided by the Georgia Center for Opportunity
and approved a motion to engage work ed consulting the subcommittee met again on monday to hear testimony in dhs hospital spending and update on reimbursement rates under the living choices assisted living waiver and i move for an adoption of the report
Senator Ben Gilmore
Unverified
19:18
of the proper time all right thank you representative proper time i'll take that motion do i have a second all right i have a second any discussion see none all in favor say aye any opposed ayes have it uh moving to item 10 Occupational licensing review Senator Wallace is
Senator Dave Wallace
Unverified
19:36
Senator Wallace you are recognized here The occupational licensing review subcommittee met on Thursday and received reports of various occupational Authorization entities in group one. I'll have a motion at the proper time
All right, let's hear your motion, sir. I move adoption of this report, sir. All
Senator Ben Gilmore
Unverified
19:53
right. Thank you senator. I have a motion I have a second any discussion See none all in favor say
aye aye any opposed eyes have it. Thank you senator representative Ward law
Representative Jeff Wardlaw
Unverified
20:06
And on Tuesday March 17th the subcommittee review received reports reviewed requests and
approved the following variations temporary appropriations American rescue plan act appropriations infrastructure investment jobs act appropriation and restricted reserve fund item G1 in a budget classification transfer of two hundred fifty thousand dollars for commissioner state lands there was a motion to review this item failed this transfer request was due to the purchase of a building and the existing lease went on for an extra year
at 16,000 and change a month I moved to I moved that to motion to approve
Senator Ben Gilmore
Unverified
20:45
this report is proper time proper time I'll take that motion do I have a second I have second any discussion on the motion see none all in
favor say aye any opposed eyes have it thank you represent award law all right moving to the review report senator Johnson
Senator Mark Johnson
Unverified
21:07
you're recognized Reese subcommittee met on Tuesday and review the methods of finance one alternative delivery
Speaker 90
21:12
construction project procurement discretionary grants RFQ request services contracts and receive the regular monthly reports in state contract number four with the Department of Education and six and seven with the Department of Human Services were held to a legislative council meeting today pending follow-up information request staff has received information to distribute it to the interested parties I'll have motion at proper time I think representative Wardlaw has something he would like to add okay represent Wardlaw
Senator Ben Gilmore
Unverified
21:45
did you have something to add on this senator Johnson rec do you have something add on
Senator Jim Petty
Unverified
22:02
this you're recognized uh repeat senator johnson this is the review report oh yes um can
Representative Jeff Wardlaw
Unverified
22:13
i get dhs to the table i thought he was asking the question on the report i gave i'm sorry all good
Senator Ben Gilmore
Unverified
22:21
he invoked your name so i was
going to give you a chance if you would recognize yourself and then proceed with questions jennifer brisee
Speaker 95
22:37
director of the division of developmental disability services paula stone director of the
Speaker 97
22:43
office of substance abuse and mental health hi good
Speaker 98
22:47
morning melissa weatherton director for medicaid specialty populations
Speaker 101
22:51
and jay hill director for aging and adult services
Representative Jeff Wardlaw
Unverified
22:57
you're recognized representative you gotta love it that you come down on friday and we're actually going to take a vote that matters and four of them show up because we in subcommittee and i think we had one of them but this is great um no we had a conversation yesterday um miss weatherton and i and we went through the dollar figures and i just want to iron this out for the committee because i think it's important that we understand where we're at and where we're going these contracts are based on seven-year projections
and when you look at the total projected amounts you divide that by seven and that's what the annual amount should be and miss weatherton i'd like for you to kind of walk us through each one of these labor contracts and where we're projected to run out of money at if my mind serves me right human development center when we were at a six-year projection um and some of the other ones were a four-year projection uh on these labor contracts so if you would kind of walk us through that so the committee
can understand where we're at and when we run out of money absolutely
Speaker 107
23:57
representative ward law so i think that the trickiness with some of these contracts is some some months we hit some hard and some months we hit others hard which is why we have multiple on-call stopping contracts but I will say for Jay's health center we have one two three four we have five contracts that he can utilize the paid to date amount across all five of those contracts is roughly 7.2 million and our
total projected cost for those five contracts is
Speaker 109
24:33
28.5 million do you want to add anything i don't think we're at
Speaker 112
24:47
no i would agree i agree with director weatherton we're we're not at risk of running out of
Speaker 109
24:55
funding on these contracts And then for Ms.
Speaker 107
24:59
Stone, who oversees Arkansas State Hospital, she also has multiple, she
has four contracts, on-call contracts that the state hospital can utilize when they need coverage. Paid to date is $10.8 million across these four contracts. Total projected cost for the seven years on these contracts is $43 million. So, again, on track to not overspend on those seven-year figures. And then lastly, Ms. Brzee, who's over the Human Development Centers, she has multiple contracts.
Looks like about a dozen. And across those, she has spent to date $10.9 million utilizing the on-call. And the projected total cost for her contracts is, over seven years, is $63.7 million. So, members, you can see the
Representative Jeff Wardlaw
Unverified
25:52
concern here is as we go down the road, the first two entities are on a four-year expenditure line item, and on the human development centers we're at about a 5.8 to a six-year mark.
So I think it's just very important that we're conscious of this. We talked to them about their hiring practices on Tuesday, Monday and Tuesday. And when we had those conversations in two different committees, we were assured that those things would get fixed. There's a written plan that was submitted, I think, today or going to be submitted today. Can you walk us through where we're at on that and how many people OPM would have to hire? And their OPM is placing these folks on an instant basis, which the department is not used to because of the way the school works.
And I think it's important members understand
Senator Ben Gilmore
Unverified
26:45
how all this stuff plays out. So, Ms. Weatherton, I'll turn it over to you. Mr. Chair, I appreciate
Speaker 107
26:51
the latitude. Of course, sir. Ms. Weatherton, did you have a response? Yes, sir. So, yes, since Tuesday, we've done a lot of digging into this, right, to see exactly what's going on and be prepared to come speak with you all today. We are working on a comprehensive recruitment and retention plan that we hope to be able to put before you very soon. But we did produce some information to BOR later yesterday that has some current state figures on that I can walk through.
So the human development centers are allocated 1,880 budgeted positions. As of yesterday, when we pulled a position report, we had filled 1,712. That means that we have 91% of our positions filled at the HTCs, which we need that to be much higher. We have 168 vacancies. When we pulled data from July 1 of 25 through February 28th of this year, we had onboarded 499 staff across the centers, but unfortunately we have lost 613.
So it's some of the discussion that we've been talking about earlier this week of just we're losing more than we're bringing in at this moment. Also on that is some more granular data showing you how many people are applying for CNA positions across the centers, how many qualified applicants we're able to get. Conway, Conway has seen great numbers. Like, for example, on one CNA position, we had 195 people apply for it. So we are so excited about pay plan is working in Conway.
They're almost fully staffed with direct care in Conway, and we're in the right direction. Where we're struggling is some of the others. So we're not seeing those types of applicants at Arkadelphia, and we're not seeing them at Boonville, and we are struggling for applicants in Jonesboro. So part of what we're going to take back and be working on with the governor's office is a real thoughtful, comprehensive strategy on how we fill those 168 vacancies. I think it's going to take
Speaker 99
29:13
several different mechanisms, but that is a priority to us.
Representative Jeff Wardlaw
Unverified
29:18
One of the concerns that needs to play out of this, members, and understand is what she just said. We're at 91% in human development centers. That's reflective when you look at these contracts because we're at a six-year expended mark on that one, and it's because we're at 91%. But when you look at the health center where the percentage is much lower, we're at a four-year projected outspend. So we have to do a better job across the road and across the board, and we have to put our focus bigger than just the Human Development Center when we're pushing for them to hire people on the state payroll to curve these contractual prices.
The other part of this equation that's not at the table today is the VA nursing home. We heard from them earlier this week, and they're at 70% contract. We don't push on them to hire folks, and we most definitely should because we're always amending that contract for the VA nursing home to hire more people under contracts. We have to do better with the taxpayers' money and control the way we're spending it on these contracts, on these health care workers, and make sure we're putting these people on a state payroll,
which is where they're genuinely supposed to be. Mr. Chair, I'd remove my
hold, and I'd appreciate the latitude. Of course, Representative,
Senator Ben Gilmore
Unverified
30:30
thank you for that. And thank you for the information this morning. Okay, I'm going to
my co-chair, and then Senator Rice, you're next. Just a quick question. This is maybe more
Representative Les D. Eaves
Unverified
30:39
of a technical question because I hate how – I don't like how these reports are listed. And Representative Wardlaw brought this up in the subcommittee. But if you look at item number four on the end state, the umbrella security solutions,
I don't know if you guys can answer this or not. And there are several that are like this. says total projected is 735,000 but total authorizes 1.1 million what is that 735 based on and I know this is really not your contract with your sometimes yours are the same way where you where you have a lower number as the initial total projected and then a higher number going on is it based on just an initial thought of what it might be or do you know or can you answer that I know you're like I said you're not the right department but sometimes yours are the
Speaker 120
31:27
same way so we actually discuss this internally with our procurement office so they set that initial seven-year projection
Speaker 107
31:37
based on the first year's cost of what the first year is and they put the seven year out so it's my understanding that when we go in and do a amendment if we increase funds on year two that we go in and increase the seven-year projection as well so that first
Representative Les D. Eaves
Unverified
31:53
number is just the first year yeah okay thank you thank you co-chair
Senator Ben Gilmore
Unverified
32:00
all right members we've got quite a few in the queue so i'm going to ask that we be expeditious in
Senator Terry Rice
Unverified
32:08
this senator rice you're recognized mr. mine is not for these i did express my concerns about hdc's and committee uh tuesday but when you get through with this i'll get back into queue mines
Representative Stetson Painter
Unverified
32:18
for something else okay thank you senator representative painter you're recognized Thank you, Mr. Chair. I got a report last night, and I want to make sure I'm understanding it correctly. So as of pay-to-date for contract nurses alone, it's $28.9 million so far to date, correct?
Yes, sir, across all the contracts, yes. And then we're projected, though, to spend $145 million just on contract nursing alone. Am I understanding that? Yes, if we spent every
Speaker 109
32:51
single dom for the next seven years, that's the number. I'm going to
Representative Stetson Painter
Unverified
32:54
tell you, like I told VA the other day, we need to have a conversation. COVID's over, and we've got to stop just immediately going to contract nursing. We are paying five to ten times more than what we should be.
And so count me in to have those conversations to work with you guys, and let's address that problem. Thank you. Thank you, Mr. Chair. Thank you, Representative Majority Leader Beatty.
Representative Howard M. Beaty, Jr.
Unverified
33:21
Sorry. what were you recognizing me thank you mr. chair I just wanted to extend grace and thanks I mean y'all came back and provided us with a lot of work on this HTC plan to show exactly what you were working on but I think the key is that this committee and this body and the subcommittee need
to be aware of what was going on I do anticipate that it will be a good plan once it's finalized and all parties weigh in and it's presented back to committee. Do you have a timeline on when we can expect that completed plan to be presented? We can,
Speaker 107
34:00
I mean, this is a number one priority for Ms. Brzee down there. And so we can work as quickly as you need us to to get that back before you. If you would like to have it by next ALC, if you want it earlier than that.
Senator Ben Gilmore
Unverified
34:15
I would think earlier, because June, I think, would be the
Speaker 137
34:18
next ALC representative to answer that. I just want to be clear. When I asked the
Representative Howard M. Beaty, Jr.
Unverified
34:23
question about a written plan earlier in the week, I didn't put a deadline on it. I just want a good, comprehensive plan that's going to address the problems. So whatever you bring and whenever you bring it, let's make certain that all parties have weighed in and that it is a good plan that takes care of our citizens. So I don't have a hard line for that, and I don't think this body does either.
We just want a good plan and something that's going to work and address the problem. So thank you for the work
Speaker 137
34:56
that you did in the time period of this week. Thank you. Thank
you, Representative Beatty. Representative Leiteman, you're recognized. Thank you, Mr. Chairman. Well, thank you all for that
information that you sent out after the meetings this week. That was good because we got to recognize what the problem is before we can figure out how to fix it. And, you know, we complain, we get on to you all a lot, but this is a lot of money, as Representative Beattie said,
and we really need to fix the problem, but I'd like to work in the solutions rather than the complaints. So I know in Jonesboro, looking at that report, they only had nine people, I think, apply. And I don't know how many jobs there was open, but it was a large amount. And, you know, I know that they're doing everything. They've got an electronic billboard out on the highway. They've got a sign in the back, and they're constantly trying to fill those positions.
But as we know, that's very difficult to do. So in the technology or higher-paying jobs, there are organizations that recruit people. They advertise. And I know advertising and recruiting companies are very expensive, but we're spending multiple millions of dollars. Is it a possibility that we could recruit outside of the areas where we're recruiting now?
Because Boonville, as an example, people have to move in there maybe to take those jobs. So if we're not recruiting other people in other areas of southern Arkansas that don't have a job, I mean, is there some things that we might be able to look at, and I'm not sure these will work. I'm just offering this as a suggestion, to look at advertising employment agencies that might be able to help at a lower cost per person. Because we've got to think outside the envelope here, I think.
And I know these are outlandish things to think about. But we're spending tons of money, and there's got to be
a solution. But I appreciate you all sending that information out. It was very good. Thank you. Thank you,
Representative Matt Brown
Unverified
37:18
Representative Ladyman. Representative Brown, you're recognized. Thank you, Mr. Chair. And I appreciate all the information you've put together. And this is no criticism of you. But I have an extreme concern about our veterans' home. And if they are at 70% of contract labor, I don't know how many people in this room have had a family member at the veterans' home.
I've had two family members there. And I know that, and even in assisted living, whatever, the contract labor people do not develop the close relationships with the patients. they're insensitive because they just don't know the little nuances of each individual because they haven't had time to develop those relationships we have worked on this issue for the veterans home for so many years and we have a new pay plan I thought that was going to solve that so that we didn't have to
have so many contract people there but we've got to solve this problem or we've got to get out of the nursing home business is my opinion thank
Senator Ben Gilmore
Unverified
38:28
you thank you representative all right DHS thank you I hope you hear this committee and hear it well there's been a lot of
concerns and it looks like we're not done with questions senator Irvin
Senator Missy Irvin
Unverified
38:41
hey I just have a really quick question what's
the number of the contract again I'm sorry that we're discussing is there a specific number
of that's listed here yes ma'am it was two contracts were held one for this at six or
Senator Missy Irvin
Unverified
39:03
what's the federal versus state match on these the funding on the contract one so one one was held for the
Speaker 120
39:26
state hospital they don't receive you know that's
Speaker 107
39:30
primarily just state general have revenue at the state hospital unfortunately but the one for the Arkansas Health Center is highly Medicaid funded. Which one
Senator Missy Irvin
Unverified
39:41
is that? What's the federal state match? I just can't
Speaker 120
39:46
find it. It looks like 72 federal, 27 state for the Arkansas Health Center
Senator Missy Irvin
Unverified
39:57
contract, which is number seven. Okay. So that's consistent if we utilize contract for labor
versus on state payroll we still get the same do we still get the same match rate yes it's a simple question but i just wanted to make sure that there's not any kind of like incentive for more federal dollars to pay for it if we used contract versus state employee there's not it's the same okay that was my question thank you thank
Senator Ben Gilmore
Unverified
40:26
you senator so again i hope you hear this committee There's always concerns with DHS, and I know that's part of being who you are
because you're big and you handle a lot of things. But please hear this committee and these members, and let's try to address these concerns. But thank you for your work.
Senator Terry Rice
Unverified
40:49
Thank you for being here. Senator Rice, I'm coming back to you. Thank you, Mr. Chair. I have two requests. On E-520 was the Department of Public Safety regarding the maintenance for the King Air state-owned aircraft. They told me they do a yearly analysis on cost effectiveness for that,
and then they said they would get me information on that. They have not. I am asking for a hold on that and to go to, and if you're saying we're not meeting next month, Let it go to Joint Budget Committee or hold it until ALC in June, if that would be possible, $142,000. They testified previous years. They'd flown like 90 hours.
He's guessing off the top of his head, and he said much less recently. So we've discussed this over the years, the cost effectiveness of that aircraft. And, again, they did not supply what they told the committee they would send me or told me during the committee they would send me. Okay, and you requested that information before this meeting? I requested it publicly. Okay. And they said, I went back and watched the video again, and they said they would send it to me.
And, again, they said they'd do that every year, an analysis on it. So
they could have sent me the 2025 data. Okay. Would you like to
Senator Ben Gilmore
Unverified
42:20
have the agency, if they're present, to come forward? And I'm fine with entertaining a motion to hold
Speaker 157
42:28
this for. I'm fine with that. Okay. Is the
Senator Ben Gilmore
Unverified
42:31
agency here to address these concerns? And as is typical,
Senator, you know, we typically do not meet ALC during the month of April or during our fiscal session.
So I'm fine if we want to hold this for joint budget committee. But if we can get the agency in here, I'd like to do that. Okay. Okay. Well, I do not see anyone. So, Senator, would you like to make a substitute to Senator Johnson's motion to review all these items, holding those
Senator Terry Rice
Unverified
43:11
specifically? I will address another one, too, and
put them in the same motion.
I'll also ask questions regarding the one-time new contract for Department of Shared Services, which is E-422, $3.3 million for Deloitte. It will be, they testified, it will be on up in 2027 before there will be any kind of analysis on that. I have some concerns. I would ask for a separate vote on that. So my motion is to hold E-520, Department of Public Safety, on $142,000 until the joint budget can take it up,
and then a separate vote on E-422 on
Senator Ben Gilmore
Unverified
43:57
Deloitte. That's my motion. Okay. We have a motion. Do we have a second? Second. I have a second. I'm coming to questions right now for discussion.
Senator Stephanie Flowers
Unverified
44:08
Senator Flowers. I'm trying to understand what is he referring to, E4 and E5, on what report? This would
be the review report, Senator. I'm looking at the review report, review subcommittee, F12.
Where is what he's talking about? Senator Rice,
Senator Terry Rice
Unverified
44:39
can you? I can. The E, you want E4 or E5, Senator? I'm trying to
Senator Stephanie Flowers
Unverified
44:46
find what report you're referring to. Okay, I'm
Senator Terry Rice
Unverified
44:49
talking about Section E of the Review Committee, the E422.
Senator Ben Gilmore
Unverified
44:56
Okay, that would be, in your packet, that would be F12. Okay. Go down to item.
Senator Terry Rice
Unverified
45:06
I'm marking off the subcommittee
Senator Stephanie Flowers
Unverified
45:10
report. There is no E4 or E5 on
Senator Ben Gilmore
Unverified
45:15
F12. I think it's page 31 in
Senator Missy Irvin
Unverified
45:26
that packet. And which number on page 31?
Speaker 181
45:31
the would be trying to get there myself number 19
Senator Ben Gilmore
Unverified
45:37
number 19 would be the public safety
Senator Terry Rice
Unverified
45:43
one what that is is annual maintenance on the king air aircraft which is required if they're going to what i had asked was for the analysis which they testified they do every year i asked if they turn that into the director of public safety they said they did they had that and they would get me
information to look at they did not do that they did not contact me yeah and and
Senator Ben Gilmore
Unverified
46:10
on that one they're not here and on that one your motion would be just to hold that one to hold that let you know budget joint budget take it out whoever's next okay senator flowers does that answer your question
Senator Stephanie Flowers
Unverified
46:22
Well, that's the what is the other one is the other one Department of Military? No,
Senator Terry Rice
Unverified
46:31
well Where's the other? If somebody can find that in a new packet again, it's Department of Shared Services
It is a three point three eight eight million for office of personal management OPM and utilizing a state contract to purchase implementation services for the SAP success factor performance and goals management compensation management career Development planning modules. This is a
Senator Ben Gilmore
Unverified
47:03
one-time Purchase and I think it's on page 22
Senator Terry Rice
Unverified
47:09
In the packet I'm not I'm not asking
the whole line. I'm just asking for a separate vote Okay, and my
Representative Les D. Eaves
Unverified
47:21
co-chair would like to address something. Senator Rice, are
Senator Ben Gilmore
Unverified
47:28
you looking at page 22, item 22? Okay.
Senator Stephanie Flowers
Unverified
47:33
Senator Flowers, does that answer your question? Yes. And what is your issue with this Department of Shared Administrative Services?
Senator Terry Rice
Unverified
47:42
I'm just asking that we take a separate vote. I expressed concerns in committee for outcome and all. I'm just going to be on record for that. If anybody else wants to be, they can vote. I'm just asking for a
Senator Stephanie Flowers
Unverified
47:59
separate vote. Is that a proposed contract, or is that contract already in existence? You'd have to ask staff. Does staff know if the contract is already in existence, or is that a proposed contract?
Senator Terry Rice
Unverified
48:15
do do do we have someone from it it shows to be a
one-time contract it is not is not repeat funding it's a one-time contract
Senator Stephanie Flowers
Unverified
48:26
for a new system but is it already been executed or is it something that's being proposed
Senator Ben Gilmore
Unverified
48:34
you have to get somebody okay so staff is checking we are in discussion period on
Senator Stephanie Flowers
Unverified
48:40
because we have motions it says uh original term is march 21st 2026
Senator Ben Gilmore
Unverified
48:46
go a year the next march all right
Speaker 200
48:50
i'm going to recognize director garrity marty garrity center flowers this is a new contract it's for integration of the new s4 hana system that's going to
Senator Stephanie Flowers
Unverified
49:04
aces system what i'd like to ask the agency what's wrong with the aces system and is that contract whatever it
is that uh implements aces is that expired or about to expire
Senator Ben Gilmore
Unverified
49:21
so senator we are in the discussion phase on the motion i cannot bring people to the table
to answer these questions because we have motion uh on the table with discussion period we can withdraw motions and then I can bring people to the table to answer questions. Well, I'd like to
Senator Stephanie Flowers
Unverified
49:42
know what Senator Rice's motion was for. Is it to hold it or just to get? Just to have a separate vote. Well, if he would withdraw his motion for just a few minutes so we can have some discussion
from the agency about the existing contract or ACEs program. Okay. I will amend my
Senator Terry Rice
Unverified
50:07
motion. We can go ahead and do the first part, that
we hold the Department of Public Safety Aircraft Maintenance over to JVC. Okay. Senator Davis, did you have a question?
Senator Ben Gilmore
Unverified
50:28
a motion, a substitute motion to hold over but approve all the other items except for the item that was just stated, which was, I don't remember the number at this point, the shared services was 22, item 22.
Speaker 90
50:50
Alright. Senator Johnson. You're recognized. I never made a motion. I thought I heard you read the report. I did and I said I'd have a motion at the appropriate time. Okay. Alright. So Senator Rice is the only motion. Understood.
Senator Ben Gilmore
Unverified
51:20
Thank you, Senator. All right, so we are voting on Senator Rice's motion. Representative
Wardlaw, do you have something to add to this discussion about a hold coming to you? We got a
Representative Jeff Wardlaw
Unverified
51:38
contract from the Education Department I haven't released yet. And if we want to hold that for a couple months, I'm fine with it. I don't care. But if we want to release it, then I'd like to work through it.
uh doesn't matter to me but it's not included in any of these motions at
Senator Ben Gilmore
Unverified
51:54
the current moment okay uh then how about we take that motion up separately after we deal with this one i'm fine with that i'm fine with that thank you representative we were under the impression that was released we're sorry about that all right
Senator Terry Rice
Unverified
52:08
senator rice would you restate your motion so everyone's clear my motion is to hold
number 22 which is the department of public safety 142
maintenance for their King Air aircraft until it until the Joint Budget Committee senator I think you're speaking if
Senator Ben Gilmore
Unverified
52:27
it's the aircraft that's 19 okay 19 excuse me in in again what
Senator Terry Rice
Unverified
52:32
I all I asked for was current data that they said they would submit so I would ask that that be held okay Senator
Senator Ben Gilmore
Unverified
52:45
Irvin, you're recognized for a point of order.
Senator Missy Irvin
Unverified
52:51
I'm trying to understand. When you called Senator Rice's
Senator Stephanie Flowers
Unverified
52:55
motion, after he restated his motion with a motion to substitute, he just took out the aviation, that item 19, but it sounds like you were saying everything else will be voted on. but what about item 22, this Department of Shared Administrative Services
and the exchange of ACEs for some other, the contractor looks like the law. I thought I stated
Senator Ben Gilmore
Unverified
53:31
it would be everything but that one and we would take that one up separately. But I'm happy to do this. if Senator Rice will withdraw that motion we will get your answers to your questions and then we will try to dispense with all of this at one time. Senator Rice are you amenable to that? I will
Speaker 212
53:54
yield to the chair and withdraw my motion. Thank you
Senator Ben Gilmore
Unverified
53:57
Senator Rice. All right Senator Flowers you had questions on 22. Yes. Senator Irvin did you have a question? Thank you. Perfect. All right senator flowers you had a question on 22 I think shared services in the room they will now come to the table thank you thank you
Speaker 215
54:37
would you state your names for the record yes hey barnhill state
Speaker 25
54:48
personnel director pull that mic a little closer please go ahead go
Senator Stephanie Flowers
Unverified
54:57
ahead no k barnhill jim hudson secretary dfa leslie fiskin secretary
Speaker 219
55:01
of shared administrative services all right senator flowers you're
Senator Stephanie Flowers
Unverified
55:04
recognized for a question. Thank you, Mr. Chair. I'm trying to understand this is a proposed new
contract with a new contractor, Deloitte? Yes, ma'am. And so who holds the contract now for ACES? Senator, ACES
Speaker 224
55:25
responsibility between DFA. DFA has primary responsibility for that. SAS also has some responsibilities. I do want to clarify for the committee. There is a separate project on replacing the current version with ACES to the new version of ACES. That's not
what this project is. This project is focused on a performance evaluation system that will connect to the new ACES system. This will make sure that once the new ACES system is up and running and that project is well underway we're able to actually do performance evaluations on our 20 something thousand state employees and you're not able to do that now go ahead
Speaker 215
56:09
senator flowers the system we are using now will not be supported next fiscal year so we're able to complete this
year's performance evaluations but we won't we won't be able to do
Senator Stephanie Flowers
Unverified
56:23
next year's without this particular system. Well,
the company that holds the portion of ACES that's not state DFA or shared services, who is that? It's
Speaker 222
56:37
an SAP product that the state has licensed.
Speaker 224
56:41
And so DFA is in charge of that portion, which relates to the financial accounting systems for the state of
of Arkansas. SAS has responsibility for those pieces that touch on the payroll side. So we
Senator Stephanie Flowers
Unverified
56:57
purchased a license for the application that you're using now. Yes, ma'am. Is that
the intent of this new proposed contract? Yes,
Speaker 224
57:07
ma'am. For both the financial piece and the personnel piece, the existing system is no longer going to be supported and we have to migrate off that to the next version of the product from sap and so
Senator Stephanie Flowers
Unverified
57:22
we will be purchasing uh i guess once they
figure out how to integrate the system with the new with the old system
Speaker 224
57:33
yes ma'am this is strictly the integration services we've already we've already paid for the licenses this will be paying to configure the
Senator Stephanie Flowers
Unverified
57:41
system to meet our specific needs how often do we
Speaker 222
57:45
need to change these systems Well, the existing ACES system has been in place for
Senator Stephanie Flowers
Unverified
57:51
almost 25 years, so it's not a frequent thing. And so we expect that the new proposed contract for a
Speaker 236
57:57
new license process or application is going to last for 25 years?
Speaker 224
58:02
I don't know if it will last 25 years, but it will last for a good long time. The financial piece will go live in July. That project is going very, very well. We're very satisfied with that. the personnel piece will come in about six months later and
Senator Stephanie Flowers
Unverified
58:15
we have no other way to determine performance and goal management this will this will allow us to be
Speaker 224
58:24
able to do that really kind of in a paperless environment and it will help us do that better okay so now we're collecting
Senator Stephanie Flowers
Unverified
58:33
papers from i guess directors or supervisors all over the state more than we need to okay
Senator Ben Gilmore
Unverified
58:42
thank you thank you senator flowers senator hammer you're recognized thank you mr. chair several sessions ago maybe three or four I don't
Senator Kim Hammer
Unverified
58:49
remember how long back it was we had a discussion where what we wanted to do was to be able to evaluate employees as far as their job performance and you know that would tie in possibly with you know pay increases all that kind of thing is this part of
what is this going to help achieve that and is this something new that will help us be able
Speaker 215
59:14
to achieve that yes sir this system will help us do that as you know we recently implemented the pay plan which raised the rates what we're trying to do now is have performance-based pay so all state employees would be evaluated on this particular plan it would generate the associated compensation that would go with their performance evaluation results right and
Senator Kim Hammer
Unverified
59:36
previously have we been able to
do that or this will allow us to do
Speaker 215
59:40
that now we have been able to do it previously this um that system though is going out of date what this will allow us to do it also will allow us to ensure consistency across each department we'll be able to calibrate look at those results and see if there's problem areas in any one particular department or anything along those lines it It provides us a lot of analysis that we don't currently have. Right.
Senator Ben Gilmore
Unverified
1:00:04
Thank you. All right. Thank you, Senator.
Senator Jimmy Hickey, Jr
Unverified
1:00:09
Senator Hickey, is this for them? You're recognized. Yeah, just one question. So this is just a one-time cost is what I heard you say. Are there any increases in our operational costs by doing this on an annual basis? There's
Speaker 224
1:00:24
cash impact, obviously, the Central States and Services Fund. But then once we fully have completed the project, those expenses go away. Okay, so it's going to just net
Senator Jimmy Hickey, Jr
Unverified
1:00:31
even as far as year to year after everything's up? After it's fully implemented, yes, sir. Thank you, sir.
Senator Ben Gilmore
Unverified
1:00:39
Thank you, Senator. I see no additional questions. Thank you all. Now, I'm going to, Senator Rice, is
this for them? Because I have someone who wants to bring another agency to the table. You're recognized,
Senator Terry Rice
Unverified
1:00:57
Senator Rice. Is this for these individuals? Now, let me state the staff has told me regarding the Department of Public Safety that their staff had received that from the department yesterday and had not been sent out to the committee.
So I will withdraw my holding of the maintenance money. The aircraft is going to have to be serviced at some point anyway, whether they keep it or sell it or whatever else, I will come back after we disseminate that information. We can discuss that later, but I am not holding that. I am still calling when we get through with this
other. I still will call for a separate vote. And I'll get to that.
Senator Ben Gilmore
Unverified
1:01:43
Thank you, Senator. And I was going to raise that, that that information was received. I appreciate you stating it. So, Representative Lord Law,
did you have a question for another agency? You're recognized. yeah can we
Representative Jeff Wardlaw
Unverified
1:01:56
get uh mr rogers and uh the department of ed people to the table please department of education
Speaker 247
1:02:28
good morning courtney solace ford i assume i'm the other people from the
Representative Jeff Wardlaw
Unverified
1:02:32
department of ed Yeah, sorry, I couldn't remember your name. Greg Rogers, Department of Education. I'm getting
old, too. Can you kind of walk us through, because looking at that contract in review on Tuesday, the projected cost on our paper was $700 and some thousand dollars. Your paper showed $3 million. Your paper was the one that was accurate at the end of the day. And it's because you added Capital Mall No. 2 and the School of the Blind,
and you added later 24-hour security at School of the Blind. And my concern is after we double, triple these contracts, at what point do we rebid them? And I think that was the question I was asking Tuesday. And when you gave me all that information yesterday, I really appreciate that. It does kind of show that we might should have rebid it, but maybe the cost wouldn't be cheaper. We really don't know that answer because we did not rebid it. But can you walk us through all that, please?
Speaker 251
1:03:31
so yeah so we are going into year four of this seven-year contract and when we went through um adding by school for the blind and deaf they their contract it ended with a different company and so we did look at what the cost would have been to bring them on to our existing umbrella contract or doing another one just for blind and deaf at that time it was looked at it was more cost effective for them to bring them under the umbrella contract that the department already had so at the end of this seven years we will re-bid it for the entire thing again thank you
Senator Ben Gilmore
Unverified
1:04:04
i'm good mr chair thank you senator so you releasing your hold got it thank
you for coming to the table all right um going
Speaker 90
1:04:16
back to senator johnson you're recognized mr chairman i think i can make this motion without screwing it up uh i certainly hope so i move for the adoption of the report uh with contracts four five and six in-state contracts and uh and do a separate vote
on the out-of-state contract number 22 uh move for the adoption okay so we have a motion i
Senator Ben Gilmore
Unverified
1:04:48
have a second any discussion on the motion see none all in favor say aye any opposed ayes have it
All right, Senator Johnson, you're going to call for the separate vote on item 22.
Speaker 90
1:05:08
I move for the adoption of in-state contract number 22, or out-of-state contract number 22. All right, so I have a motion.
Senator Ben Gilmore
Unverified
1:05:24
second. Any discussion? See none. All in favor say aye. Aye. Any opposed? Ayes have it.
Thank you. All right. Members, thanks for bearing through all of that. Let me get my papers back in order, and we will get back on the agenda.
We now will hear item 13. I think that would be, is it
Senator Petty? You're recognized. Thank you, Mr.
Senator Jim Petty
Unverified
1:05:52
Chair. The state insurance programs oversight subcommittee met on Wednesday March 18th subcommittee heard an update on the UnitedHealthcare rebid by the Employee Benefits Division and a presentation on Medicare Advantage prescription drug contracts by the Siegel Group. Mr. Chair, I'll have a motion to adopt the
report at the proper time. I think it is the proper time. Do I have a second?
Senator Ben Gilmore
Unverified
1:06:16
I have a second. Any discussion? Seeing none, all in favor say aye. Any opposed? Ayes
have it. moving down to personnel center Davis you're recognized thank you mr. chair the
Senator Breanne Davis
Unverified
1:06:29
ALC personnel subcommittee met Wednesday March 19th and heard all items listed in the report items two and three received approval by the committee as required by code and the remaining items were reviewed as well I'll take any questions and we'll make a motion at the proper time okay so we will take
Senator Ben Gilmore
Unverified
1:06:48
questions before we get to the motion representing you're recognized
Representative Jim Wooten
Unverified
1:06:53
mr. chairman I'd like to have director McDonald and whoever he brought with him come forward that's permissible they're coming up and that is
Senator Ben Gilmore
Unverified
1:07:04
permissible thank you and I will point out that this is not an action item but we're happy to hear from them if you would
state yourself or state your name
for the record introduce yourself and you may
Representative Jim Wooten
Unverified
1:07:23
proceed good morning Hugh McDonald secretary of
Speaker 259
1:07:26
commerce good morning Allison Hatfield chief of staff
Representative Jim Wooten
Unverified
1:07:36
Department of Commerce. Representative Wooten, you're recognized. Thank you. Mr. Chair, Mr. Secretary, I've got a question. First of all, I'll make a statement. The media was not real kind to you this morning in the newspaper relative to the article. So what is the reason
for the reduction in the Department of Commerce and the divisions that you mentioned. Is it mismanagement? Is it budget constraints? Is it federal funding being cut? Yes. And
Senator Stephanie Flowers
Unverified
1:08:13
the division manager, is all four of them a factor? It's not enough federal funding for the staff that is there. Largely, when we did the realignment a couple of years ago, we uncovered lots of cross-subsidization, which was fine, but from one federal funding to another federal funding, found that in certain areas.
but we also realize that, for example, in an employment and training where we've riffed 10 employees, that the Wagner-Peyser funding was just not adequate to be able to fund all the employees. So, and it was not a secret that Wagner-Peyser was low funding. Funding levels were low. That's been known across the country, so we made those adjustments there.
DSB is a little, Divisional Services for the Blind is a little different. It's first starting with more employees than funding was available, over-obligating funds or over-committing on obligations for funds that were not available. We're expected to be available, but we're not when the government was, federal government shut down. So a combination of a lot of things, and we're working through the DSB, continue
Hugh Mcdonald
Unverified
1:09:51
to work through the DSB challenge right now.
Representative Jim Wooten
Unverified
1:10:00
are there 83 employees involved in being dismissed
over there in the commerce? No, it's, it's, it's 27 positions. 27 positions are
Hugh Mcdonald
Unverified
1:10:12
on the RIF list between DSB 17 and DSB 10 within employment and training, both within Arkansas Workforce Connections. Of the 17, five of them have found new jobs, and we're prioritizing those employees with the support
Senator Stephanie Flowers
Unverified
1:10:33
of OPM to get those employees placed in government where it makes sense.
So they're competing for jobs like everyone else. One of those, so four in DSB went
Hugh Mcdonald
Unverified
1:10:48
to the state and state government, but another department. One went to the private sector. And two within employment and training, two out of the ten have also found jobs. But the 27 positions, I want to make clear, within commerce, those will permanently go away
Representative Jim Wooten
Unverified
1:11:05
and not be refilled. So the 56 furloughed positions that are currently furloughed, they will be called back?
They will be called back, but
Senator Stephanie Flowers
Unverified
1:11:16
then of that 56, there's 17 within
Hugh Mcdonald
Unverified
1:11:19
DSB that will end their employment on March 31st. Now, again, that's the same 17 of which five have found. So there's 12 remaining, and they're still looking for jobs. and we're still supporting that okay all
Chair
Unverified
1:11:36
right representative wooten yes i've got others in the queue all right thank you thank you mr
Senator Ben Gilmore
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1:11:43
chair okay uh senator love you're recognized for a question
Senator Fredrick J. Love
Unverified
1:11:48
thank thank you mr chair and and secretary mcdonald thank you for the report that you that
you sent um now of the of the 12 that are remaining because i i've now fielded i don't know how many calls in regards to this of the 12 that are remaining how many of the 12 are visually impaired or blind i i couldn't tell you what that number is senator okay did you did we even do an assessment because you know the first the the question that i asked you was about the race
factor but i think the other question i should have asked you about was the visually impaired or blind factor, because some of these persons, and I did not know this until I start fielding the calls, are either visually impaired, severely, or blind. So did we not even think about that factor at
Senator Stephanie Flowers
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1:12:49
all? I couldn't tell you, Senator.
You know, we didn't look at it from a race perspective. We didn't look at it from a visually impaired perspective. We looked at it from a perspective of is the work there to support the people and is the funding there to support the people as well. Okay.
Senator Fredrick J. Love
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1:13:14
Another question is this, is that because when I was having these conversations, we were talking about the DSB board, which we talked about in the committee meeting.
Now, are there going to be new appointments to the DSB board? I would expect that to occur, yes. Okay. And one of these appointments, because it's my understanding
Hugh Mcdonald
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1:13:42
that these people have been serving for years without being reappointed. I don't know. Yeah, the terms are expired on the existing board members, and they continue to serve until there's
Senator Fredrick J. Love
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1:13:54
a new board member nominated. Okay. And then lastly, I want to ask you about persons have mentioned about legislation that failed this past session
in regards to merging rehab services with the Division of Services for the Blind. I'll ask a question like this. Are we still trying to make that happen? despite not having the legislation in place? Well, let me tell
Senator Stephanie Flowers
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1:14:27
you that there was not legislation filed last year to merge the Division of Services for the Blind into ARS. That is a common thing across the country.
Okay. So we did not file that legislation. We worked on it. I believe that that is the right thing to do long term. And so I think you should expect that in the next legislative session. It's inefficient the way it's operated today. It's ineffective the way it's operated today as well, as evidence by the condition the state we're in today. Okay. It's totally dysfunctional.
Senator Fredrick J. Love
Unverified
1:15:12
Okay. Mr. Chair, I have a comment to make before we take up the motion. You have the microphone, Senator. I do have others in the queue, so if
Senator Ben Gilmore
Unverified
1:15:27
we can make it brief. We're not in discussion, so let me
Senator Stephanie Flowers
Unverified
1:15:33
wait to discussion. That'd be fine. Thank you. Senator Flowers, you're recognized. Thank you, Mr. Chair. Mr. Secretary, I am told that of these reduction in force,
17 be terminated from east arkansas um that provides services for the blind and that's not correct they're from all over the state
they're not all from east arkansas there are some from east arkansas but how many from east arkansas i'd have to look at the numbers specifically we'd be happy to provide that information
to you are there sufficient
employees left that are not affected by this reduction in force to provide necessary services over in East
Arkansas. Yes, there's plenty of available staff post-reduction. In fact, it's overstaffed, which is why we have to do the RIF, which is why we're furloughed today. Overstaffed
because they don't have enough individuals that require the services?
Overstaffed because we don't have the funding to support
them. How does that, I mean, overstaffed because you don't have the funding, but my question is. The funding will not support the current staff levels. Okay. Yeah. But I'm concerned about individuals that need these services that they
Hugh Mcdonald
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1:17:19
would have them available to them. As we are concerned
Senator Stephanie Flowers
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1:17:24
as well, and unfortunately, the entire, all but five of the DSB employees have been furloughed since the end of January because of the fiscal mismanagement of the division.
And we are waiting on the RSA to send the next $4 million of funding so we can work out of this position we're in today. You
mentioned mismanagement of funding. Yes. Has anybody been referred to a prosecutor for mismanagement? No, no one has
been. And we don't know of fraud, if that's what you're implying.
Or neglect. You said mismanagement. We're looking to have new leadership from the outside
Senator Stephanie Flowers
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1:18:24
ship. Well, has this agency been audited and
their findings made or something? You suggest mismanagement. Seems like there should be
Hugh Mcdonald
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1:18:36
some type of audit reflecting findings. Certainly it's been
Senator Stephanie Flowers
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1:18:42
audited, and I can read excerpts of the Federal Rehabilitation Services letter
that we received from them February 25th, But that has, the RSA from the federal government has designated DSB as a high-risk grantee. And the letter says that the notice recounts DSB's excessive spending and administrative costs and drawdown patterns correlate to dwindling carryover amounts which resulted in DSB obligating or expending all of its award funds.
RSA stated that the data makes clear that DSB had fiscal data that projected the financial difficulties it had encountered. However, DSB did not take the steps necessary to continue to operate the program in accordance with the assurances made for the receipt of the federal funds. Lack of fiscal planning and oversight raises serious questions as to DSB's ability to effectively manage and administer the VR program. DSB did not communicate to RSA of any fiscal planning, cost containment measures, or strategies
implemented by DSB to mitigate the effect that a lack of fiscal resources would have on VR program. Those aren't my words. Those are the, that's the
federal government's words. So as a result of that, will the funds be restricted or decreased going forward?
Well, I can't tell you what the funds were. We're waiting on about a $4 million grant to continue operations and bring our employees back.
And the only thing that's standing in the way of that is the DSB board chair to sign a letter that they accept and acknowledge the appointment of the governor's recommendation, Nathan Winters, who is to be the interim DSB director. Nathan currently is serving as the deputy to Joe Baxter of Arkansas Rehabilitation Services.
He is an occupational therapist. He's been in the business for over 20 years. He's been with a state employee of 14 years. He knows the occupational therapy. He understands working with the Federal Rehabilitation Services Administration. He understands the financial commitment, the AWARE funding system. But he's not interim now?
We're not officially. He's not there. I mean, he's not been appointed by the board. Is there a current director? The current director has retired They have retired they're gone. She that person is no longer employed by the state and If and I we in fact I sent the I sent the board chair a letter last night on the advice of the federal rehabilitation services administrator
That if he would sign the letter that acknowledges Nathan Winter, being the interim director as appointed by the governor, and employ him immediately, the funds would come. So that signature is the one thing standing in the way of getting all of our DSB employees, some of who are in the room, back to work and getting services to the visually impaired in Arkansas. all
well he can't sign a report when when and say that the it that there is an interim director if
there's not yet one he can he can sign the letter that the DSB on behalf of the DSB board he can that they acknowledge and accept the governor's selection of Nathan Winters as the interim the interim director he can do that well i send him that to
be uh mr chair doesn't have that nominee have to be approved by the senate not that not the
Senator Ben Gilmore
Unverified
1:23:08
interim this he's not a board
chair he's i'm sorry yeah well i think it's asked and answered
yeah uh so senator we have quite a few people in the queue i'd like to point out that okay one last question if i might just this is short he can say yes or no yeah one last question but i do want to point out this is not an action item okay this is merely a
Senator Stephanie Flowers
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1:23:33
report on their actions so one last question senator so my last question is is it
your understanding that the state of arkansas may have to reimburse
the federal agency i don't i don't
Speaker 30
1:23:45
know the answer to that question senator but
Senator Stephanie Flowers
Unverified
1:23:49
and and well i asked for one question but i'd like to know about how much is uh out there at risk of
being uh reimbursed that's a good question i don't i
don't know and i don't think we're in that position uh i've not been advised that we're we're in that position but um we are the reason we had
to do the riff is because we over obligated we just we don't have the funding to continue that level of staff and you know we need to get the people back to work our employees back to work so they
Senator Ben Gilmore
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1:24:30
can start delivering the services thank you all right thank you senator again i'm going to state members this is
a report from the agency on this this is not an action item for for our approval.
Um, and we do have, um, other things on the agenda. So I have quite a few people in the
queue. Uh, I also have Senator Caldwell who would like a personal privilege to recognize a group. So I'm going
to go to him so he can recognize his group here today, because I don't know how much time they have. And apparently we want to be
Senator Ronald Caldwell
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1:25:04
here quite a while. So Senator Caldwell, you're recognized. Thank you, Mr. Chairman. Thank you, committee. I want to introduce the junior ROTC members from Wynn High School. They're here to tour the Capitol, give them a little idea that
this is the Arkansas Legislative Council meeting today, and basically you're seeing the legislature at work when we're not in session. But I want to welcome y'all, and Cheryl's going to take y'all around show you the Capitol but again welcome please ask any questions of anyone that you might have and I hope you learn a lot and I will see y'all in a few minutes thank
you thank you mr. chairman for this point of personal
Senator Ben Gilmore
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1:25:52
privilege thank you senator and thank you all for being here welcome
and I I hope you get an advanced tutorial on parliamentary procedure while you're here. So with that, Representative Wooten, do you have a question for the Secretary? And if so,
Representative Jim Wooten
Unverified
1:26:12
I would ask that it be very brief. Thank you, Mr. Chairman. Mr. Secretary, I'm still confused. Which is it, mismanagement, or was it budget constraint, or is it federal funding, or is it the division director?
It's all of the above. Is it all of that? All of the above, yeah. All of the above. Yeah. And this person that was director of the division had been there since 2016, and she just
Speaker 294
1:26:44
now retired in February of 25? I think she's been there longer than that, frankly. I
Representative Jim Wooten
Unverified
1:26:50
don't know if as director. Well, I'm in the position. Yeah. Is that correct? Well, how in the world did we get by, and I've been where you are, I've been director of the Department of Commerce, I had 1,800 employees,
but if I had one that was mismanaging a division, I dealt with it. Yeah. So why is this
Senator Stephanie Flowers
Unverified
1:27:14
just now coming up? Well, we noticed some peculiar expenses last summer and actually initiated an Office of the Inspector General audit. So that's when it started from my perspective. The agency has, or the division has always been very independent,
and that's something we've got to fix going forward because the independence really hasn't worked for the Arkansas citizens nor for the employees that are furloughed. So that led to, in the November federal government shutdown, we noticed there was over-obligation of funds. Our fiscal operation, we centralized our fiscal. They used to do their own fiscal operation, DSB did.
We've centralized that. Now, our fiscal organization that's led by Tammy Williams and Stephen Giese, they noticed some over-obligation of funds, immediately addressed it, but we had a furlough in November, the federal shutdown of the DSB employees then, the same 56, and got temporary funding for basically another month and a half or two months worth of funding.
and we're right back in the same position in the end of January or middle of January. We noticed, again, funds were not de-obligated, and here we are. So we're fixing
Hugh Mcdonald
Unverified
1:28:52
to put out the fire in the dumpster fire. All right. Thank you, Mr. Chairman. All right. Thank you, Representative
Senator Ben Gilmore
Unverified
1:29:00
Wooten. All right. Senator Irvin has a motion, so I'm going to Senator Irvin. You're recognized. Thank you,
Senator Missy Irvin
Unverified
1:29:06
Mr. Chair. I think this is an issue that perhaps probably, you know, may be discussed in JPR.
So my motion would be to refer this issue to JPR, but to do, to adopt the report and for immediate consideration. Okay. Thank
Senator Ben Gilmore
Unverified
1:29:20
you, Senator. Again, this is just merely a report. There is no action item. So I'm talking
Senator Missy Irvin
Unverified
1:29:25
about adopting the personnel report. Correct. Okay. So I will
Senator Ben Gilmore
Unverified
1:29:29
take the motion to adopt the report and you're asking for immediate consideration and I have a second on that. any discussion on well there's immediate consideration no discussion so we're going straight to vote all in favor say aye
aye any opposed eyes have it thank you
okay we are now to item h i'm going to ask if there's anybody that has any questions on any communication or reports i do have h1 that i need a motion to file as reviewed that is the aper I have a motion do I have a second I have a second any discussion see none all in
favor say aye any opposed eyes have it any other reports that members want to hear from please speak now if not I thank you for your time and
attention this morning and we are adjourned Thank you.
Agenda
A. Call to Order.
B. Roll Call.
C. Approval of the Minutes of the Last Meeting, February 20, 2026.
D. Presentation of the February 2026 Revenue Report – Dr. Carlos Silva, Legislative Economist
E. Report of the Executive Subcommittee — Sen. Ben Gilmore, Rep. Les D. Eaves, Co-Chairs
F. Reports of Standing Subcommittees:
G. Reports of Interim or Special Committees: (none)
H. Review of Communications:
I. New Business: (none)
J. New Interim Study Proposals and Interim Resolutions: (none)
K. Business Carried Over: (none)
L. Adjournment.
Documents
Speakers
Senator Ben Gilmore
Unverified
Representative Les Warren
Unverified
Speaker 20
Representative Jim Wooten
Unverified
Chair
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Representative Jack Ladyman Chair
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Speaker 40
Representative Lee Johnson
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Representative Denise Garner
Unverified
Speaker 46
Speaker 25
Representative Les D. Eaves
Unverified
Representative Matthew J. Shepherd
Unverified
Senator Jim Dotson
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Senator Missy Irvin
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Senator Breanne Davis
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Representative Mary Bentley
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Senator Dave Wallace
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Representative Jeff Wardlaw
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Senator Mark Johnson
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Speaker 90
Senator Jim Petty
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Speaker 95
Speaker 97
Speaker 98
Speaker 101
Speaker 107
Speaker 109
Speaker 111
Speaker 112
Speaker 99
Speaker 120
Senator Terry Rice
Unverified
Representative Stetson Painter
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Representative Howard M. Beaty, Jr.
Unverified
Speaker 137
Representative Matt Brown
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Speaker 149
Speaker 157
Senator Stephanie Flowers
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Speaker 181
Speaker 200
Speaker 202
Speaker 74
Speaker 212
Speaker 215
Speaker 219
Speaker 222
Speaker 224
Speaker 236
Senator Kim Hammer
Unverified
Senator Jimmy Hickey, Jr
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Speaker 247
Speaker 251
Speaker 259
Hugh Mcdonald
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Speaker 260
Senator Fredrick J. Love
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Speaker 276
Speaker 30
Senator Ronald Caldwell
Unverified
Speaker 294