Joint Budget Committee
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- October 2, 2026
Speaker 2
0:54
right members grab your seats last chance
Senator Jonathan Dismang
Unverified
1:00
grab your seats with that chair sees a quorum we're gonna get started Hey for those in the audience appreciate the camaraderie if you need to go outside to have those conversations go ahead and take them on outside. Members of the audience
I'm going to start calling you out by names let's wrap up the conversations or go outside. For every minute that y'all delay and continue the conversations we'll make sure to identify who you are and we'll add a little time to the Q andA section for y'all today. right members first thing we have is consideration of JBC
rules these are rules that are compiled or any changes are the result of legislation and then created by staff with that I'd be happy to take any
questions on section B the rules and those changes Senator Hickey you're recognized for a question on the rule
changes yes sir just have not had a chance to totally look over this could staff weigh in if there's any substantial
Senator Jimmy Hickey, Jr
Unverified
2:26
changes in here I'm trying to look thank you Mr Chair Wendy cartwrightblr
Speaker 12
2:31
senator hickey, all of the rule changes all of these revisions are due to acts passed in the 2025 legislative session so these rules are just being revised to match the legislation that was passed thank you ma'am all right thank you members do we have any other questions all right seeing no questions we have
Senator Jonathan Dismang
Unverified
2:46
a motion to adopt Senator Bryon's made a motion to
adopt we've got a second by Representative wooten. all those in favor signify by saying aye
all those opposed motion carries we're going to move on to the balanced budget presentation and if y'all can make your way forward if you'll give us just a second
secretary they're going to hand out a copy and they're doing that now.
members while they're handing it out I just want to make sure we're all on the same page this will be
the presentation by DFfa for bounced budget proposal by the governor there is no action we will be taking today there will be no action that we're taking today we'll have until to the start you know the start of the session to digest this formulate our questions get our understanding and and and see if there's an agreement with the legislature on how we move forward but again we will not be taking any action today
right is everybodydy received a copy looks like we just got a couple of more right
Speaker 30
4:31
with that you're recognized to present good morning Mr Chairman good morning committee Jim Hudson secretary DFfa. good morning Jessica Moore
Speaker 31
4:39
DFA budget and just real quickly on uhjessica Moore, you probably
Speaker 33
4:43
have not had a chance to meet her yet. she's leading up the budget team at DFA she is well versed in all the numbers and so when I stumble she will help me here today but she's just a great member of our team I'm just glad to have her at the table with me the letter that you have from the governor summarizes her proposed balanced budget she does an exceptional job communicating you know her priorities in the budget I'm not going to read the letter to you I'm not going to read the RSA to you I'm gonna hit a few high points just so you understand kind of what we're emphasizing
in this next budget really when the governor was instructing us to begin building the budget the proposed budget you know three priorities that she was focused on first continuing her emphasis on holding down the the growth in state government to focus on continuing to invest in some of the priorities that she's been you know encouraging us to invest in especially in education since the beginning of her term as governor and thirdly to focus on continuing to make progress real progress consistent progress in
cutting our income taxes and getting us to a to a place where we're at zero hopefully as as soon as we can those are the three things that she asked us to look at and that's how we built the budget let me hit for you just kind of the high points of what's in the RSA first of all it's a3% increase year over year that's pretty much consistent with the historical average of what RSA increases are in terms of the one of the larger I guess increased amounts would be in EAs we're adding $122 million
to the EFA line item in the RSA this fully accounts for the one time monies that we transferred inFy26 I think when we've been speaking about the EFAs when we've been at the table during the interim period we've been very clear one time moniess wouldn't make their way into the RSA and we're following through on that commitment we have44,000 students who are benefiting from EFA's now and we want to make sure that that is adequately funded we have earmarked or recommended that we earmark70 million dollars in a one time
set aside to fund any increase in the growth of EAs inFy27 just as we're doing now if there's any actual usage to the gre that we use that set aside inFy27 it will be added to the RSA for Fy28 so we're fully accounting for and reflecting in the budget the cost of that program in addition to EFAs we have money set aside for the pay plan54 million dollars that will
be going to correctionsdPS and agg this is to account for the cost of the new pay plan that was implemented last summer these agencies have received performance funding year to date they will receive probably a little bit more as we end up the fiscal year we want to make sure that whatever performance funding that an agency actually receives gets allocated to the RsA for next year so we're fully accounting for that cost. we also have6 million dollars that's going in for new funding for higher education through the productivity formula
we have7 million dollars in new money for the drug tax forces we have5 million dollars in additional money for the DOC department oforrections medical contract this is a part of the existing contract it is a built in increase that's already there we're just funding it we're also adding6 million dollars to the governor's 1033 initiative.1033 refers to Luke 1033 it's the parable the Good Samaritan that program is focused on government partnering with the faith community and with communitybased nonprofits
to help our Kansans move from a place of dependency to productivity from places where they're on welfare to where they're having a job this is an initiative that we've seen already bear fruit and the governor wants to you allocate more resources to it so we can help more ourkansans we're also adding5 million dollars to the inspector general's budget this additional5 million dollars will be really to support addressing our snap error rate. for those of you who recall we and the good the one big
beautiful bill that was passed last summer the degree to which we have a snap error rate will affect the cost sharing that the state has in the future so to the extent that we can drive that error rate down it will benefit the state financially so the inspector general will take point on this they'll collaborate with DHS and coming up with a way to reduce our snap error rate and then we're also adding an additional $100 million to Medicaid sustainability this $100 million will be on top of
the $100 million that we've already allocated in a set aside that can be used just to support the Medicaid trust fund and protect the Arkansans who are most vulnerable so those are the additions to the RSA going into Fy27 but let me just circle back and talk about you know tax cuts and the importance of making sure that we're prioritizing tax cuts allarkansans when they approach their household budget they prioritize their spending there is some spending that's more important than other spending currently in our
budget I think we we have just having one category of spending we're saying more or less that all spending is of equal importance we know that's not the case so we are reintroducing a concept that we've used historically here at the general assembly which is categories of funding category A funding and categoryb funding category A funding will represent about 93% on average of a agcency's RSa allocation for Fy27hink of it as those recurring monthly expenses like payroll like the light
bill like paying rent they get that money every single month the7% that's remaining think of that as more like one time expenses that can be deferred if we have the money to pay for it so it's a
Speaker 38
10:37
way of prioritizing our budget having a categories and B categories we think when we do this then we have more opportunity to manage the growth of our budget so that we can begin to prioritize cutting taxes we don't want the tax cut conversation to be an
afterthought that we will cut taxes if we have enough money to cut taxes prioritize how we're allocating the money so that we can cut taxes that's the approach the governor's had with the budget and with that Mr Chairman, I'll be happy to take any questions. all
Senator Jonathan Dismang
Unverified
11:11
right thank you Mr Secretary with that Representative rye you're recognized for a question. Yes
Representative Johnny Rye
Unverified
11:19
sir thank you Mr Chairman Mrhudson question for you sir on the decrease in income taxes at
one halfcent and the and maybe even looking at 1% do you have any figures on that sir of how much that
Speaker 33
11:35
will cost so generally for each 10 of a percent and reducing income taxes if you also include the pass through entity tax it's about58 million dollars per 10th of a reduction so it'd be about $250 million for a half s
Representative Johnny Rye
Unverified
11:49
something like that if you if you did like you know you have 10 cut
Senator Jonathan Dismang
Unverified
11:58
all right Representative Wooten you're recognized for a question you Chairman.
Representative Jim Wooten
Unverified
12:02
Mrhudson on the balanced budget it now a requirement the constitution it is a requirement that we present a balance but the governor has to do that and you have to approve
Speaker 56
12:14
a balanced budget yes sir so one more question I
Representative Jim Wooten
Unverified
12:17
didn't hear it may be you said but you should use the word education and then you spoke about
Speaker 56
12:30
the yeahF yes sir did you mention public education? I didn't mention public negotiation no sir in my remarks
Speaker 33
12:45
public education are they getting any more money through through you know the public school you know trust the productivity that's there that's how they're funded not in the RSa but not additional money in the RRA there's no there's
Representative Jim Wooten
Unverified
12:55
no new money in the RSA. there is new money in the RSA
Representative John P. Carr
Unverified
13:03
but not for public education again you know we have we know what we
Representative Jim Wooten
Unverified
13:08
have and I know what we have in reserves but we can't continue to live off our reserves so there's no new money for education for public education, ir, the adequacy fund there's no there's no new one which you just answer the question I will not agree how you're phrasing the question no sir. I'm sorry I can't agree with that you can't you can't do what? I can't agree with how you're phrasing the question no sir can't ok then
then then we're turning our back on public education is that correct? No sir that is not correct. well that's what it sounds like you can't control how you think it sounds you Mrhudson sir thank you
Senator Jonathan Dismang
Unverified
13:47
members who have any other questions Senator Davis you're recognized for a question
Senator Breanne Davis
Unverified
13:56
Thank you Mr chairir. Can does someone have the exact percentage of increase that we increased per pupil funding for schools because every year
we have been increasing school funding per pupil and we've been giving historic increases year after year. I think it's somewhere around3.2% but do we have that number exactly because we are increasing this year in fact larger a larger percentage than we've increased in years past. we're we're spending more
Senator Breanne Davis
Unverified
14:27
and they're getting an increase this year in per pupil funding and it's somewhere around3% I just wanted somebody to clarify that to make sure that that's
not printed in the paper anywhere that we're not supporting public schools as we're giving them historic increases like we're doing again this year and the adequacy fund is
Speaker 33
14:45
growing we'll actually have more in the accuracy fund at the end of the year than we have right now so the idea that we're spending that down is incorrect thank you all right thank
Senator Jonathan Dismang
Unverified
14:56
you senator hickey recognized for a question thank you sir thank you Mr Hudson. just I want to make sure
Senator Jimmy Hickey, Jr
Unverified
15:01
that I fully understand what you said on the medicaid trust fund. you know that's been something that we've all kind of
been watching over and understand they you know, how big that number is. So we've been we've been spending the medicaid trust fund down the way that we've talked about that two years ago was at600 million and if I remember at the last meeting it's300 million plus390 maybe. so have we and I think I've been asking this have we established have we established established a floor on how much we're looking to keep in that account the 100 million that we've got
in a set aside now are we planning on using that in this fiscal year and then I heard you say something about another 100 million I thought in the next fiscal year also so I want to
make sure I fully understand we're talking about the same 100 or a different 100 or what give me the
Speaker 76
15:59
full specifics please sir it is an additional 100 so we'd have a total of $200
Speaker 33
16:04
million in set asides available to go into the medicaid trust fund NFy27
I do not expect that we'll move any money into that inFy26 and the remainder of the year. I just don't expect that. I do expect at least half of that perhaps more will go into the
Speaker 36
16:21
trust fund inFy27 OK. so what you're telling
Senator Jimmy Hickey, Jr
Unverified
16:24
me is is that you think and I apologize, I hate to say this without my numbers. if if we were at390 as of seven months ending or whatever it was what you're saying is is that that you think that the390 is going to be sufficient but is it our intention to
pay all the way down to zero there OK, so how much more in this fiscal year do we think we're actually going to spend out of the medicaid trust fund
Representative John P. Carr
Unverified
16:51
or do you know? I I believe Secretary mann when she was at the table at the last ALc you
Speaker 33
16:56
know, gave a range of a number of 150 to200 if I recall that correctly. I think that's probably still within the range of what we're in the the year and I think you know anything that gets below 200
Speaker 36
17:08
on a sustained basis we ought to look at injecting capital at that point
Senator Jimmy Hickey, Jr
Unverified
17:15
one last question and may and maybe this is a question for the agency whenever they get down there and not, not that she needs to come now but just to be prepared. So my question is is though we're not holding anything over or or using a timing thing to make sure that we're going to stay at 150 million and then you know, come July2nd we automatically just immediately need a huge part of this $200 million that we're going to have instead aside. So I that's probably a question for the agency, but I just want to make sure that we're specific there because
this this Medicaid trust fund like I say we're not talking about 3 or4 million
dollars which is still big money we're talking about hundreds and that's a very worrisome to me. yes
Speaker 36
17:58
sir Senatory the medicaid trust fund I get it's the first report that I get every single week
Speaker 33
18:04
is what's the balance in the medicaid trust fund so it is something we watch Secretary mann and I have a close working relationship we talk about that often I think we're on the same page I can assure everybody we're not using extraordinary
measures to stretch you know payments we're not holding invoices we're paying things as they come to us and they they disperse on a weekly basis we model that out and the last thing that we want
Speaker 36
18:29
to have is some liquidity issue with with Medicaidrust that's just not gonna be something we're gonna allow to happen thank you Mr President. sir all
Senator Jonathan Dismang
Unverified
18:41
sure we go to members first but I'm gonna mess that up I think. Representative Collins you're recognized thank you Mrir so Mr
Representative Andrew Collins
Unverified
18:49
Secretary, I'm just trying to make sure I understand this right. So there's70 million is being set aside from fiscal 26 surplus that's projected for the EFAs and that's in addition to the 122 million in fiscal 27 that's what we're talking about there as far as the separate line item for the70 million the70 million is a contingency
Speaker 33
19:10
that would come from surplus it is accounted for though in the RSA we have suff ic i ent RSA projected
for fy 27 to fully fund that amount it is really there for the growth in EFA's more organic growth than anything else that will be occurring in Fy27 we just we don't know what the exact number's gonna be we think that's an adequate number but we'll have that number there to fund that growth on a one time one year basis and then as I said just as we're doing now whatever we actually use for EFAs inFy27 will get
Representative Andrew Collins
Unverified
19:52
built into the RSA for fy 28 OK and so this if used 192 million is in addition to what what is the the number that's would be added to to
Speaker 33
20:05
form a total that we're spending on the EFs so we're adding the 122
Representative John P. Carr
Unverified
20:11
to the RSA allocation for fy 26 that would bring the RSA allocation for EFAs for Fy27 to roughly309 million dollars on that
Representative Andrew Collins
Unverified
20:22
ok and then the70 would take it to380 or379 million if it's fully used it thank you all right senator Tucker I think you
Senator Jonathan Dismang
Unverified
20:31
were on and off so you're recognized for question secretary those were really my
Senator Clarke Tucker
Unverified
20:40
exact questions that Representative Collins just asked. I was wondering what the total number was for EFAs and I guess you mentioned that the70 million will be in RSA but
it's is it is it still one time
Speaker 33
20:58
the RSA it's a it's it's a set aside my point is that in terms of the cash flow that we'll generate through the forecast revenues coming in are more than sufficient to cover what's actually in the RSA plus the
Representative John P. Carr
Unverified
21:09
one time set asides both for EFAs and for medicaid. right that's309 in the budget plus the70 million in the one time
Senator Clarke Tucker
Unverified
21:14
got it right thank you all right senator Irvin you're recognized for a question or not hold on
Senator Missy Irvin
Unverified
21:27
thank you thank you Mr chairir. So I just wanted to a little bit deeper deeper dive you said that we were actually going to have more funds and the adequacy account. on page ive of what you submitted to us under the educational adequacy fund there's different taxes obviously that through legislative action we have directed towards that fund and so I'm just curious do you see a correlation which of those taxes do we have we seen more of an increase in and I'm just curious if there's
a correlation between us cutting income taxes generating more income into people's pockets which has increased our revenue and sales tax which is part of the educational the adequacy fund is there I'm I'm just looking for where we're seeing growth in that as relates to these legislative direction that these taxes or if it's corporate franchise taxes or if it's really that sales tax it's sales tax ma'am I think our
Representative John P. Carr
Unverified
22:30
estimate for adequacy for fy 27 we're estimating to distribute roughly500 million dollars.
for fy 27 to the adequacy fund. OK so in my mind we're on the
Senator Missy Irvin
Unverified
22:44
right track on tax policy because we're cutting corp we're cutting income taxes which is putting money back in people's pockets and they're spending more money which then we're seeing on the flip side of increased revenue through sales taxes which a portion of this
goes directly to the educational adequacy fund and by law and by court order we must provide adequate education period that's not a subjective approach that's a that's that's a very objective form of law that we have to provide sales taxes are generally speaking a much more predictable
Speaker 30
23:22
and consistent source of revenue that we have modeled out over time corporate income taxes are just much more
volatility in that so that again the funding for this is way more skewed toward funding from sales tax. Perfect thank you.
Senator Jonathan Dismang
Unverified
23:41
I appreciate it thanks all right thank you our last question
Representative Johnny Rye
Unverified
23:45
Representative Ry you're recognized Yes sir. thank you Mr Chairman. misshudson the last couple of months we've been going over this I just kind of wondered you know the situation with the federal in 2028 actually is going to change their amount that they're sending us and we're gonna have to come up with more money on on
our level do you happen to have a figure sir for that of how much that's gonna cost I know it's out there just a little bit but what will that cost us for
Speaker 30
24:12
for which program are you referring to Representative Ryandiate Medicaid well on on the Medicaid side of things actually beginning this Octo ber the federal reimbursement rate is going to increase so the amount
Speaker 33
24:22
of federal funds that we get will will go up so it'll be a little bit better situation for us in terms of our income side of things next fiscal year than what it is this fiscal year
that's part of what we're modeling in in terms of looking at our adequacy of Medicaidrust
Representative Johnny Rye
Unverified
24:38
fund yes sir Mrshudson but what I was wondering sir you know like the 7030 some are 8020 that is it was mentioned in the last couple of months that that actually our part will go up in that I believe
Speaker 113
24:51
you're referring to snap's yes sir so the
Speaker 33
24:56
the amount of administrative expenses that we pay for snap go from 5050 share to we're paying75% of this year we think the cost for that
and and you can ask the DHS folks from at the table in a couple of days the cost for us in Fy27 on that increase is about $18 million I believe $1818 million additional expense thank you Mr Tillerson thank you Mr Chairman.
Senator Jonathan Dismang
Unverified
25:21
All right thank you members and thank you for your presentation. members that'd encourage if you got questions you've got a little more time to digest and we've got you know a little bit of time before we get into the session make sure you meet with governor's staff and and try to get those questions
answered and make sure you have a good general understanding of what's being proposed so that we can efficiently take care of it when we get into session with that doctor Warden you're recognized for a presentation or overview
Speaker 119
26:13
Good morning all Ken Warden commissioner Arkansas division of higherducation. Nick Fuller with the division of higher education thank you all for the opportunity to speak this morning. we're pleased to say that overall the institutions of higher education across the state were 2.61% more productive than last year that's that's good news for us we need more ourkansans taking advantage of the opportunities we have in higher ed and educating our workforce and
seeing more opportunities for themselves in our state we saw exceptional growth particularly in concurrent credit over the past year our budget recommendation reflects the statutory required productivity funding formula it was received and approved by our coordinating board in October and we are happy to answer any questions you may have regarding the budget. all right thank you members if we have any questions right Senator Tucker
Senator Jonathan Dismang
Unverified
27:08
you're recognized for a question thank you
Senator Clarke Tucker
Unverified
27:16
thank you gentlemen. I just noticed that you ate LittleRock is getting about $1.5 million less than the year before. I'm just curious about that.
Speaker 119
27:29
So the recommendation is based on overall productivity Nick would you like to give more details? Yes sir and
Representative Jim Wooten
Unverified
27:35
if you look on the I think it's attachment E there should be a handout of that that productivity index forua LittleRock they were down in productivity for the year
they were down5.96%. so with that reduction they they lost 2% of their funding due to that that productivity decline so that that million dollars is that 2% reduction and that would be the same for the other institutions like UCA for example they're they're
Senator Clarke Tucker
Unverified
28:04
all based on how much their productivity either increased or decreased
Nick Fuller
Unverified
28:07
thank you all right Representative Richmond you're recognized for a question thank you Mr
Senator Jonathan Dismang
Unverified
28:13
Chair I'm over here to your right
Representative Marcus E. Richmond
Unverified
28:20
way over here just just a request in that I don't know if you're running low on ink or paper or whatever but can you make this with a little more size to it next time so I don't have to use my phone magnifying glass to actually see what the heck it is I'm looking atpresentative that's going to be on Yeah all right can y'all work on the font a little bit sir
Speaker 137
28:47
we're happy to address this concern it makes me think that you're
Representative Marcus E. Richmond
Unverified
28:51
trying to hide something in this we'll
Speaker 138
28:53
we'll invest in in legal sized paper I
Speaker 139
28:56
appreciate the concern I I have it myself rightpresentative McCullough thank you
Speaker 142
29:06
Mr chairir. could you guys explain the formula to me about the
Representative Tippi McCullough
Unverified
29:09
low productivity that you were mentioning when asked aboutuaLR and other schools so our our productivity funding formula I
Speaker 119
29:18
was gonna say how long do you have
all day I will I'll try to be brief. so
Speaker 147
29:27
we have a full of productivity formula and what it does is it measures certificates and degrees that institutions produce and there are multipliers for two year and four year in different ways that for but due to their mission and and there are some things where they get points for underserved folks and and and different things so for lack of a better word brownie points for different things that they do along the way and that results in an index and the index is
measured year over year and it's based on a threeear rolling average so the past three years were compared to the three years before that and they are compared to themselves to see if they produce more or less certificates and then based on their index certificate degrees based on their index with those multipliers and so as the three years that we met if they went down the three years that we measured most recently their index number was lower than the three years before and there are a guard rail of two up or down 2% in the base of the
formula so that's very in a very simple fashion of the way that we get to the number all
Senator Jonathan Dismang
Unverified
30:33
right thank you all right thank you Representative wooten you're recognized for
Representative Jim Wooten
Unverified
30:37
a question. Thank you, Mr Chairman. Mr Warden on the on the budget you
have a total of 5 on the last page
in 93 million in the 93,000 in the B category A is6.595 6595 and then you have 93 in the category B so does that mean does that mean that you're gonna receive a
and we're hoping thatb is funded yes sir
Speaker 150
31:32
I think that's going to be a result of this process over the next month and this session on
Representative Jim Wooten
Unverified
31:38
how we get to the revenue stabilization actct let's say because of the war in Iran and other things that we have an eco economic slump and we only fund aid so actually you receiving less money
Representative Denise Garner
Unverified
31:59
300 million less money is that correct? Yes sir I believe that would be anyone on the the RSA that has money in category B so
Representative Jim Wooten
Unverified
32:06
it wouldn't be specific to the institutions so say that again. I believe anyone
Speaker 153
32:10
with that the funding in category B would would fall under that not just our institutions that
Representative Jim Wooten
Unverified
32:15
if if we're not able to fund category B we we would not get that fun So you had to fund
Be to get an adequate amount of what you're budgeting for is that correct?
Speaker 155
32:30
I I don't know the adequate would be the word for for it would be it would to meet
Representative Jim Wooten
Unverified
32:36
the the full recommendation of the productivity formula to get the full recommendation that you have. Yes sir. You'd have to fund A and B. Yes sir. and how much of an increase is that for higher education? it is
a 2% increase 2% yes sir we are we are restricted on those recommendations for productivity we'd only request 2%% is
is that new money or is that money that's being shifted around within the reserve funds
there there is a portion of that that is new money that is the the6 million that Secretaryhudson mentioned earlier that's included in the budget and then the rest of it comes from money
Senator Jonathan Dismang
Unverified
33:17
reallocated thank you all right thank you uhpresentative Richardson you're recognized for a question nope now you are it's
Representative R. Scott Richardson
Unverified
33:28
not one to let recognize you there we go thank you Mr chair
Speaker 160
33:35
Doctor Warden thanks for being here appreciate it just a quick quick question on what representative Mccollum had asked a little bit ago around the the specifics of of this formula that you have you spoke about brownie point types of influencers what kinds of things are they and what kind of percentage points are we talking about that would potentially influence so there they're a multiplier and it's based
Speaker 139
34:01
on statutory requirements to address under
Speaker 147
34:06
academically to for institutions who address under academically prepared students and underserved populations but it's it's in the law that we that we follow those and work those into the
Speaker 151
34:17
formula and it's been the same since 2017 I thinks so you said they're also multipliers
Nick Fuller
Unverified
34:24
for high demand field degrees and STEMstem degrees as well that are incentivized so offering more of
Speaker 160
34:30
these degree types or having more students participate in thosegre types
and and making progress will help their overall multiplier that's great also I noticed that my alma mater Arkansas Tech got a nice bump this year so that's good news so I appreciate you being here thank you sir all right
Senator Jonathan Dismang
Unverified
34:50
thank you Representative Collins recognized for a question thank you
Representative Andrew Collins
Unverified
34:55
Mrir. So my understanding is that following the Arkansas Access Act there was something in that bill saying that we
would revisit the productivity formula and I also understand that there's a group working on that that's been
formed can you tell me the composition of that group and specifically with all of theseuAs that we have here how many representatives from theua system are in that group so I don't have the
Speaker 119
35:22
list in front of me the list is comprised of presidents and chancellors and of the representative institutions that represent both systems and the independence that are publicly funded or all the publicly funded institutions you're talking about the
Speaker 147
35:39
reppo return on investment metric that we put into the productivity formula last session that metric is not does not apply to this formula it will be applied in the coming year because when you change how people are remunerated they tend to adapt to the act to to the to the activity that is reinforced or rewarded in the formula so we don't we didn't feel it was you know we can't change or shouldn't change
horses in midstream and what people are doing behaving in a certain way based on something and then change their funding so we have gone through the processes we're not all the way through to embed a metric that says that if an institution is offering a degree and that degree does not show demonstrable return on investment by wage growth than the taxpayers of Arkansas won't consider that degree in the formula so we look which which is you know part and parcel of what we want to do to guarantee that students and that that
engage in higher education are as close as we can guarantee to have more op opportunity than they had before they came to our campuses. does that make sense, sir? it makes some sense.
Representative Andrew Collins
Unverified
36:53
I appreciate that. I guess when I'm getting at though is you've got
a group and you can you know maybe it's the ROI aspect of the formula not overall but the point still stands you've got a lot of differentua's all over the state. you've got Uafayetteville, you've got two years you've got4 years in all kinds of rural versus urban areas different needs I I feel
like you might want to have more representation from the ua system in that group if it's just the one system president is at the table getting this formula together you know I I don't know how they can manage all of those different UAs with different interests and different incentives and and represent them all as fully as they need to yes sir and and
Representative Jim Wooten
Unverified
37:36
there are some CFfos and some data people that are on that committee as well from the different institutions and
Nick Fuller
Unverified
37:42
I think there are 11 or 12 on the
whole committee that are reviewing and there may be3 or4 that are from theua system from the various either two year or four year or the system so all the different aspects are are covered making sure we're we're reaching every type of college or institution that we may have. we did our best
Speaker 119
38:01
to make sure it's a representative sample and and to my knowledge theua system is appreciative of the representation and and fine with who how they're being represented through that process now I have no doubt thank you thank you right, RepresentativemcCullough
Representative Tippi McCullough
Unverified
38:18
thank you Mr chairir I wanted to ask a few questions about the two year colleges specifically because we do have a wide range like all of our colleges of size number of students buildings to maintain new buildings that are needed to to be built is there a is there a specific way that you divide those up to as far as state funding goes that small ones get a certain amount larger ones get a certain amount. can you kind of tell me a little bit about that there's not a specific on the dollar
Representative Jim Wooten
Unverified
38:49
amount but within the the funding formula there is an adjustment on the twoyear side for what we call dis economies
Nick Fuller
Unverified
38:54
of scale to account for those larger institutions compared to the smaller size of the twoyear campuses so there is an adjustment made to their their point totals in that index based on that
Representative Jim Wooten
Unverified
39:05
there's a a tier system for that thank
Senator Jonathan Dismang
Unverified
39:09
you all right thank you Representative Woootten you're recognized
Representative Jim Wooten
Unverified
39:13
for a question thank you Mr Chairman. Mrharden has been in the news recently that
the university is fabu is putting 14 million in the athletic fund is that correct and where is that in the budget u u we would not have the information on that that
funding yet as they don't have to submit their athletic budgets to us until later in the year but the the school is here they're spending $14 million and it's not in the
it's not in the budget or it would be in their budget yes but I would I would
Representative Denise Garner
Unverified
39:51
have to let the institutions that they are here. Could they come forward Mr Chairman that they will when
Senator Jonathan Dismang
Unverified
39:57
we get to them in the agenda right thank you all right next uprepresentative Garner
recognized for a question. Thank you Mr Chair and I'll be quick
Representative Denise Garner
Unverified
40:07
with this one there are3 things on the on the spreadsheet that have changed
in percentage by50% and one at 150% could you just go through those three real quickly and and tell us why
which spreadsheet or the summary of institutions of higher ed so the school of math and science and then representative which section are you
Senator Jonathan Dismang
Unverified
40:36
on or what we're on Oh sorry yeah we're we're ond right now technically we kind of moved over into an E but so yeah I thought we were doing it all thank you'll come back like your idea but we'll
Speaker 184
40:46
come back thank you all right members do we have
Senator Jonathan Dismang
Unverified
40:49
any other questions right seeing no thank you all
yeah yeah oh I'm sure. Yeah, all right members we're going to move
Representative Jim Wooten
Unverified
41:07
on to E we'll take these one at a time E one all right item E1 is a a letter to you all requesting personnel changes for the institutions there is an attachment to this letter there are 9 institutions requesting changes of the40,18 currently authorized positions the total change you'll see behind is an increase of 17. for all institutions and we're
just requesting your your approval of this request to be included in the budget bill drafts.
Senator Jonathan Dismang
Unverified
41:35
All right thank you members do we have any questions on E1? seeing no questions you need a motion to adopt we've got a motion to adopt we've got a second any discussion on the motion seeing none all those in favor signify
Speaker 163
41:49
by saying aye all those opposed motion carries E2 E2 is a letter requesting some special language inclusion for North Arkansas College.
Representative Jim Wooten
Unverified
41:55
this is to account for them joining the University of
Arkansas system some some very similar language we
Nick Fuller
Unverified
42:01
did when East Arkansas College was brought into the system we're just requesting this to be included in their bill. right thank
Senator Jonathan Dismang
Unverified
42:08
you members we have any questions on E2 seeing no questions I'm gonna represent our I'm gonna recognize Senator Bryant for a motion like Mr Cha Mr Chair
Speaker 82
42:14
Mc motion to opt a letter of update North Arkansas College's name in the bill drafting. right thank you members we've got a motion we've got a second any
Senator Jonathan Dismang
Unverified
42:23
discussion on the motion seeing none all those in favor signify by saying aye all those opposed motion carries
it's going to take us to F Miss rice Thank you
Speaker 189
42:40
Mr Chairman henry Riceblr so if you'll please look at the document document entitled summary of Institutions of higher edd that which should be on your desk it's a summary of appropriations that we hope will assist you in your decision making today so you'll be looking at and making a decision on the appropriations for treasury cash and other appropriations that are in your binders so there are three parts to this
summary. The first part you'll see that's gonna be state treasury appropriations which are paid from the revenue stabilization fund educational excellence and workforce 2000 fund so if you read from left to right it's gonna show the institution or the fund it shows the page the appropriation appears on in the manuals and then the authorized appropriations that they currently have for this fiscal year and then the Arkansas higher Eucation and coordinating boardard recommendations that's AECB in the manual for fiscal year 2027 and the following
columns they show the change in dollar amount for the next fiscal year as well as the percent change from the current authorized appropriation levels the far right column has asterisk in it and one asterisk will show that there's a line item change two asterisks will show there's an addition or deletion of a line item three asterisks indicate the addition or deletion of a new appropriation section which we do not have this go around and on the first page it totals the four year institutions at the bottom on the second page of your handout it's going total the twoyear institutions in the same
format and these are also the treasury fund appropriation summaries and on the third page is the beginning of the cash appropriation summaries these are the ones that are paid from their tuition and fees sales and federal funds it also has the same format on the very last page we have what we call other appropriations on this handout it's gonna include tobacco funding special revenues from court filings that go to the University of Arkansas and UALuaLR law schools and breast cancer research funds among others Mr Chairman that's all I have on this summary.
Senator Jonathan Dismang
Unverified
44:37
thank you Representative Ggarner you're recognized for your question. and members you have a budget manual that's going to refer to the pages here as you're kind of going through so be able to you can kind of cross reference they've given us summaries I should have said that earlier and you can use these summaries then to go back to your budget manual and get a little bit of a deeper dive if that's what you'd like to do but
Representative Denise Garner
Unverified
44:57
you're recognized for your question. Great thank you. I just repeat the question there's several institutions that have50% or more to it50% and one at 150%. if you'll just explain why the change
Speaker 194
45:09
could you point out specifically which one you'd look at so we
Representative Denise Garner
Unverified
45:13
can just go through these one by one so the 1st 1 is53.79% at the
Speaker 194
45:18
UFA school of mathematicscience and the arts we're on page 74 in the manual that's a54% increase it's almost7 million and speaking to theua system it was an error in their fiscal year 2026 request that's the current fiscal year. The carry forward funds that they intended to use there was not adequate appropriation for that so that has since been corrected in peer for this fiscal year
and it's also for the construction of a maintenance building and woodshop and construction of alumni hall and
Representative Denise Garner
Unverified
45:49
charter field project great that's that's perfect and then the next
one is looks like South Arkansas College 556 % page four
and 287 in the manual if
Speaker 194
46:25
that's easier OK we're on page 287 as you said that's about 1el.2 million55.6% increase so this increase that's going to provide for the ongoing construction of SAC's first residence hall and a multifunctional baseball stadium and also the college is renovating and constructing an
industrial chemical lab for training lithium industry employees and future employees in that field and the operating expenses have expanded that's because of the to furnish purchases and supplies related primarily to the new facilities.
Representative Denise Garner
Unverified
46:57
Great awesome thank you and the last one is S aU tech at
Speaker 194
47:04
150% we are on page 295 it's $20.7 million appropriation increase which is 149% increase and that's going to provide for
recently awarded federal funds that's 15 million to construct the aerospace defense manufacturing Center of excellence and5 million is to provide educational equipment to the center nice to hear about those things thank you
Representative Denise Garner
Unverified
47:26
very much thank you Mr Chair right thank you
Senator Jonathan Dismang
Unverified
47:29
members uhpresentativeoootton I think you had a question for youve Fayetteville and I think Representative Mckenzie did too if he's here if someone can grab him I think all right Representative Woootton if you can hit your mic
all right you're recognized if we could have someone from the Ufayetteville I think or you have aystem one of the two come up for a question from Representative Wooten Senator Tucker
Senator Jonathan Dismang
Unverified
48:08
I think yours is while they're making their way I'm going to recognize Representative Tucker. I'll come back to you Representative Wooten Mr Chairman right
Senator Clarke Tucker
Unverified
48:17
Senator tucker you're recognized thank you Mr Chair. Yeah mine will be quick. it's just a a follow up on Representative
Speaker 82
48:24
Ggarner henry and this one's for you I think I just had
Senator Clarke Tucker
Unverified
48:27
questions about two other institutions AU Mountain Home and AU Newport. henry Senator Tucker can you repeat your question please? Yes sir. same questions that Senator
garner was asking. I just was curious about two other institutions those were
AUmountain homeme and AU Newport with big big increases just curious what's going on there
Speaker 194
49:02
excuse me we're on page 197. this is AUmountain homeme. it's an increase of $10 million or60.1% increase and that's going to provide for federal funds awarded in 2024 to support the expansion of the sumountain homeme Healthcareducation s facility and enhanced technology to develop the medical workforce
and for Newport we're on page 213. that's an increase of 16 million or approximately45% and that's for also recently awarded federal funds to construct a health science center on campus with
Speaker 189
49:33
a focus on improving maternal and mental health outcomes. excellent all right thank you thank you henry. thanks senator
Speaker 25
49:42
senator flowers he she has a question for you too you're recognized for a
Senator Stephanie Flowers
Unverified
49:48
question thank you Mr Chair. My question concerns the funding
or the appropriation request foru of a at pine bluff 1890 extension program appears to be a decrease a change projected or recommended of6.25% and I want to know is that what is that based on did you get information from the university concerning matching funds that they will need to match the
federal appropriation Thank you Senator Flowers. my
Speaker 194
50:37
understanding in talking to the AdHE staff is that the appropriation has been reduced
Speaker 208
50:42
to align with expenditures they're gonna have the same funding in the Rsa this is just gonna match their appropriation levels more adequately or accurately I should say to their to their funding level
Senator Stephanie Flowers
Unverified
50:57
Well would that meet the requirements to for the federal match so this is
Speaker 208
51:07
their state treasury so it should not be affected by the the
Senator Stephanie Flowers
Unverified
51:13
federal match but the the university or the state needs to come up with
a percentage to match the federal so I don't understand how they arrived at recommending a decrease
Senator Jonathan Dismang
Unverified
51:30
for for the next fiscal year if I understand things correctly they weren't spending the full appropriations so this is a decrease in the appropriation it does not decrease the amount of actual spin they've historically had and then and it may be we need to circle back up because I know we've kind of bounced back and forth. I was trying to finish up with henry before we moved on to the U ofA and we may need to bring someone up from DFfa or fromua pine bluff to get more specific but again my understanding is there is not a change in how much they're
spending it's a change in the preparation which they were not meeting and so they just lowered their preparation to get closer to the actual spend but
Senator Stephanie Flowers
Unverified
52:11
we can have someone come up from the UPB but also ask about the appropriations if any recommended foruAedville's
1890 extension program I don't see that in your exhibit F and I think these are just the changes that are going to be
Senator Jonathan Dismang
Unverified
52:32
listed here but if we I will we'll pivot do you want to try that henry do you want to punt it back over tou of a and we'll start with theu ofAfayetteville all right and I think this is a great segue for
you all to introduce yourself and then centered flowers if you can restate your question senator Representative Woootten I appreciate you being patient. I'm gonna get to you
Speaker 225
52:52
just as soon as she's done. good morning everyone. I'm Charles
Speaker 226
52:54
Robinson, chancellor of the University of Arkansas I've got some of my colleagues here who will introduce themselves Good morning, I'm Anne Bordello.
Speaker 228
53:02
I'm the executive vice chancellor for finance and administration. Craig Tega senior associate Ad and
Speaker 230
53:08
CFO for the athletic department. Randy maselli government relations University of Arkansas all right and so some of this will be I
Senator Jonathan Dismang
Unverified
53:17
think for some of y'all at the table she had a question about the land grant and if it was I'll let you restate
Senator Stephanie Flowers
Unverified
53:25
it senator I'm concerned about and I'm inquiring about the 1890 extension program UAPB
it appears to have a recommended change a decrease to6. 25 % for the next fiscal year and I want to know what is that is it just based on what UAPB spent in the 1890 program or is it a requirement that the state match federal funding with a certain percentage
and does this meet that requirement senator flowers said the
Speaker 225
54:05
University of Arkansas Fafayetteville and the and the budgets for University of Arkansas Pine Bluff are different budgets so I'm not aware of the issue for the University of Arkansas Pine Bluff.
Speaker 226
54:18
I think they have representatives here who could address your question because I'm not I'm not aware of this this funding issue well
Senator Stephanie Flowers
Unverified
54:27
it's a E C B recommendation for the change to reduce it so
Mr chair is there somebody from that particular board yes but
Senator Jonathan Dismang
Unverified
54:40
let's go ahead and actually I kind of let you jump ahead of Representative Woootten and so if you don't mind I'll circle back after we finish withuu a Fayetteville I thought you had an actual I thought
you had another question related to the 1890 with the UA is
Senator Stephanie Flowers
Unverified
54:57
that know if University of Arkansas atfayetteville got an increase did it stay at the same
level as the last this past fiscal year we will have
Speaker 225
55:14
to get back with you we're we're we're not aware of of of the change so we'll have to get back with you senator flowers but you acknowledge you do have
Speaker 244
55:22
an 1890 extension program the extension program
Speaker 226
55:29
I believe is the division of agriculture that it's not with the un of Arkansas Fafayetteville
Senator Stephanie Flowers
Unverified
55:37
the designation comes to the university so don't I'll just
Speaker 226
55:42
have to study that I'm I'm sorry that I'm not prepared to address your question but I'll make sure we
Speaker 225
55:48
we address your question we'll get back with you'd like that and
Senator Stephanie Flowers
Unverified
55:51
not so that I'm able to compare what is going on with these two different 1890 programs we'll get back with you thank you all right thank you all right Representative
Senator Jonathan Dismang
Unverified
56:03
Woootten, you are recognized for a question. Thank you Mr
Representative Jim Wooten
Unverified
56:08
Chairman. Chancellor Robinson your budget is the $14 million that it's going to be transferred to the athletic
Speaker 253
56:19
department iss it in the budget? Well I'm
Representative Jim Wooten
Unverified
56:25
not aware of 14 million a board passed a resolution requiring the university to waive the campus transfer which was3% of athletics budget plus provide athletics
with an additional6 million dollars in additional revenue now that3% of the athletic budget it's a growing amount so next year we're projecting that it'll be5 million or so now the6 million is is prescribed in the resolution and so for next for fy 27 we will submit a budget that addresses and facilitates the board's resolution so
I have given the president of the system options on how we might be able to do that and I will learn from the president and the board how they want us to facilitate that transfer of funds that the the campus transfer now that's wave so I had I had already waived that so that that that was something that previous chancellors had set up with previous ADs and that was coming
in on an annual basis that's waived the resolution requires us to to waive it we've waived it but the $6 million is the additional amount it that the resolution mentions that we are we've given the president options on how we might facilitate that
Speaker 226
58:01
particular portion of the resolution and that'll show up in our Fy27 budget the impression has been left
Representative Jim Wooten
Unverified
58:09
by the board of trustees and
others that this is the first time that money has been transferred from the university to the athletic department it's generally in reverse I mean for years and years it's been bragged about in the sports pages about the amount of money that5 million or6 million that's given to the university is that true? Well, it's true
that we've never transferred money
to the athletic program in a way that we are being asked to do in this resolution. Now how all this plays out depends on how the board and the president address our recommendations based on the resolution but but it's true that this is a historical change we have never been asked to do this we've never done this but the board has spoken and as chancellor I
have my orders and we're going to carry it out according
to the how the board wants us to where's the6 million gonna come from that's great let me let me rephrase that question if a may Mr Chairman when was the last time the university got an increase from state revenue from funding from us appropriations. I
Speaker 253
59:40
believe there was last year it's in this current fiscal year of the productivity
Speaker 228
59:47
funding there's not been a change in the appropriation there's not been a change
Representative Jim Wooten
Unverified
59:53
OK. right so where where is the6 million gonna come from well you know we've grown a lot
Speaker 226
1:00:01
and some of the some of the resources I mean some of the resources that we're being asked to send the athletics we will absorb in our
Representative Jim Wooten
Unverified
1:00:10
budget to the best of our ability because we don't want to tax our students any
more than we already unfortunately have to in order to just meet the needs of our growth but there will be a portion of this depending on how much the board settles on in terms of the amount of money that will come from the student body. and that's in that's that's inevitable I've shared that with the president of the system the amount in which we have to charge the students will be will depend on whether or not this is a strict6 million that we
Speaker 226
1:00:47
transfer or if it's something other than that if it's you know less
Representative Jim Wooten
Unverified
1:00:54
than that so no one really knows an
Speaker 258
1:00:58
answer well it's at this time I know
Representative Jim Wooten
Unverified
1:01:00
what the resolution says and so I'm prepared to transfer the6 million and to subsequently absorb a portion of that in our growth so the students don't have to pay but there will be a portion of this that the students will have to pay
so in order to be competitive in the football program and with the new coach and all the assistants additional assistance to that he's hired we're going to put that on the back of the students
well as you know I'm on the record of of of saying that I didn't think we needed to do this right now it is true that the competitive landscape is very challenging and very different but it was my determination that the athletic budget had what it needed for Fy27
they're raising money they're they're they're doing lots of things to really grow their budget to meet the revenue share challenge so that we can be competitive so but the board has spoken and I will follow my orders that the board has given me to the best of my ability. So
so but anyway we go about it some of it's going to wind
up on the back of student body or an increases or in their fees for
athletics it appears that that's the case and in that they have to give 20 million in the athletic department too the players is that correct? There are players not every
Representative Jim Wooten
Unverified
1:02:39
revenue sports that are receiving revenue share and we have to do it to compete with other schools and we want to be competitive and we have been doing that and and yes so there will be this dynamic where our students are going to
pick up some of the operational costs of athletics but the revenue share actually the athletic department had fully funded their revenue share so that that's not this money is not needed to do that for fy 27 it will be used for other
Speaker 225
1:03:14
things I'm sure to support the the athletic program Mr chairman that's
Representative Jim Wooten
Unverified
1:03:22
all I have I just admonished the university
to move cautiously in this you know because I do not feel in my personal opinion that we can be competitive year after year after year in the SEC. sir and I'm an old football coach but but but I'm I'm worried about the program up there and I think you share those thoughts. I believe we need to
Speaker 254
1:03:49
be responsible in all of our budgeting so we are not taxing our students in ways that
Representative Jim Wooten
Unverified
1:04:00
interfere with affordability and access and so of course the chancellor is going to be cautious and so I I I appreciate that but I want us to be competitive and I believe you know we had a real bad football season but this is not going to be the norm for us I think we'll definitely get better I have a lot of confidence in coachilverfield and and his team and I believe that we will be competitive in football and we're very competitive in baseball, very competitive in basketball so we we we've got work to do but I think
Chair
Unverified
1:04:31
we will we will get better thank you thank you Mr Chairman for your patience. Thank youpresentative Mckenzie you recognized for a question
Representative Brit McKenzie
Unverified
1:04:39
thank you Mr chairir so just a few questions on the subject and I like to mark the moment for history that Representative Woootten and I are aligned similarly on a on a concept like this so have a few quick rapid questions. Am I correct in assuming that from what your website tells me that the cost of admittance or sorry the cost of attending school is around31,000 dollars once we
account for tuition fees, room and board, meal plans etc. yeah it's
Representative Brit McKenzie
Unverified
1:05:10
think I have a general understanding of what we're asking for here the4.5 million dollar transfer that you've waived and there's been some historical precedent to waive. Tell me more about that why is it is it required from a from a bond repayment perspective is it just a a gift or is there some statutory or board direction that makes that
transfer occur on an annual basis. The
Representative Jim Wooten
Unverified
1:05:36
transfer was established by a former chancellor Dave Gerhardt and a former athletic director Jeff Long. and they transferred the money because the SEC revenue was flowing really well and it was a way to demonstrate that athletics was contributing to the academic side of the house and the decision was made by that leadership to fund a bond of champions Hall
with a portion of that transfer 2.6 million roughly any money in addition to that was being invested in research because we're our one and we're trying to get better at in our research so we werere investing in that so we could become a better at that so that's where the the transfer was and that's where it originated but with the revenue share that came to all of the the power o I made the decision to
defer that amount because if you look at projections from the SEC this revenue share this the the the the universities were gonna have a hard time managing revenue share without some additional support so we were we'd already made that decision because we want a competitive athletic program competitive football program and basketball and all of our programs so this resolution again comes in addition to that so the
the transfer was born a prior previous management we used it for the bond and research but when we had to move away from it we understood that that was something that operationally we needed to do we were going to defer it and then see where we were in two or three years and if if athletics became you know more if if the budget became better operational budget then we'd we'd consider what what we could do with that transfer to
Representative Brit McKenzie
Unverified
1:07:37
reinvest it in the academic side the the bond has it been entirely repaid where we on the schedule with that? No
Speaker 226
1:07:44
the bond hasn't been entirely repaid I I'm not sure where we are on the schedule. I don't, I don't recall
Speaker 228
1:07:50
where we are on the schedule off the top of my head but for the foreseeable future we have identified a way to pay that from internal funds because we do have debt that is falling off of our debt service schedule. so because of those reductions we're able to offset it but the
Representative Brit McKenzie
Unverified
1:08:07
original intention that bond has not been settled and then just this is not trying to be cute but we're still investing in research at the University of Arkansasfayetteville we are still investing in so the two impetuses for that that transfer still exists in our needs in Fafayetteville today Absolutely OK I do want to just note the serendipity of what the the percentage increase of the dollar value increase that is being requested for Fafayetteville this year's roughly7 million dollars and we now have a6 million dollars bogey that the institution has to account for to help subsidize
athletics I don't know if that's that's probably productivity model that gets us to that number if there's a a raw increase that came in request of an increase that came in prior to this board direction that just that seems a bit odd and the the process here albeit not a member of the the budget committee assess a review and and analyze these requests based on their merit and and the value that they're gonna have for our taxpayers and I do want to know just because this is not this is not a a well known secret I mean this has been published where are we with the recommendations
to the board for what that looks like and we've heard a lot about this will be land on the on the students I've read in periodicals that we can't do some form of an athletic fee because that would affect the athletic department's procurement exemption so a what is what is it you've identified and not I don't need to know the granular details or any of us do but more than it's gonna fall on the students and then I'll let you answer that first and I've got a follow up
Speaker 258
1:09:41
well we have submitted three proposals
Representative Jim Wooten
Unverified
1:09:44
to the president of the system and the president's system will take these proposals back to the board of trustees for various ways in which we could meet the terms of the resolution one of those ways I know is a full 6 million because that's what the resolution prescribes and then we will determine based on what the board says what impact that will have on our on our
student's relative to covering the costs that the the
Speaker 226
1:10:16
new cost that the university's picking up because of the resolution am I answering you you are so and do
Representative Brit McKenzie
Unverified
1:10:22
have we has the thought exercise the back of the envelope math been done to amorize that across whatever34,000 students and and that inclusive of the 6 million that you're talking about and then the5 million you're gonna have to make up for an operational expenses think it's best for me to wait
Speaker 258
1:10:38
until I know exactly what I mean we have some
Representative Jim Wooten
Unverified
1:10:44
general ideas of what each proposal would cost relative to the students but I don't want to get out ahead of the board because what if they decide they don't want to do it and you know that's me probably being a bit more hopeful than I should be but but still I think the board has a right to make decisions that they think are best to help the universities operate it's alright if we disagree I mean that's the
American way we disagree but at the same time I know that the board has the authority and I will execute their authority to the best of my ability so I understand the desire to know but I don't want to get ahead of the deliberations of the board. they may think about this differently. I don't know. I'm not involved in those deliberations so I I mean it am I am I answering you are and appreciate it and I do respect your responsibility as a fiduciary of the institution to
Representative Brit McKenzie
Unverified
1:11:46
to do what your board and your independent commission's telling you to do I just I can't fathom a a scenario in which one extra dollar that a kid's gonna have to go tollie Mae to go get6.5% secured against a 15 year note that makes sense in the grand scheme of their their needs of the institution. so just like Representative Wooon I I appreciate the information you provided today but again I would I would also admonish you to to think hard about the state of our of the state
of Arkansas and what our students are
bringing to the university and we have
Speaker 258
1:12:20
and that's why we're covering some of this with our growth in our existing budgets
Representative Jim Wooten
Unverified
1:12:26
so that it doesn't fall fully on the student body because we're sensitive to access particularly for Arkansans and we don't want to raise tuition and fees $1 more than we have to and that's every year we we try to do the math to keep those you know as minimal as we possibly can and still operate in ways that help our students and our
faculty be be successful right thank you members before I get
Senator Jonathan Dismang
Unverified
1:12:57
to senator Hill uhpresentative garner's got a question that she's gonna ask each institution I think you guys have received
a notice with a pack or a packet of maybe5 questions. I think some of those were unanswered. I've been trying to contemplate how we're going to do that in a expeditious way so that we're able to move through my understanding it's going to be some type of yes or no question so what I'm going to do is does
everyone have section or access to section F in the audience again I'm just trying to figure out how we're gonna go through this So amongst yourselves in the audience while we wrap up y'all aren't done unfortunately while y'all wrap up with the I think we've got two more questions for Fayetteville. if you could be forming a line in which you will come through and identify yourself and respond yes or no in the order that is on this so if
we're if you can pull up section F so universitiess Arkansas State University Jonesboro you're up 1st 2nd it's gonna be Arkansas Tech. we'll skip to Henderson then
we're to SAU then we're to theuFA system then where you have afayetteville then Fortsmith, then
LittleRock if you can pull that and start forming your line you'll help me speed things up Oh
Speaker 283
1:14:14
I thought you were saying you wanted him to come forward. I don't think they all
Senator Jonathan Dismang
Unverified
1:14:25
all right we're going to come back to her then I think instead of doing that my misunderstood I was pretty
sure that's what we discussed but she's gonna ask the question and then y'all are going to respond back to her now I think we've pivoted so all right yeah in the interest of time all right Senator Hill you're recognized for a question of you atfayetteville.
Senator Ricky Hill
Unverified
1:14:47
thank you Mr Chair Chancellor I'm over here I appreciate the stand that that you have taken on on this issue as far
as the athletic side of it goes my my biggest issue with this mine's gonna be more of a comment yes I'm for winning too but my winning is a little different evidently than the University of Arkansas. My winning is an education and not athletics. I feel like these students are paying enough money already. I feel like we're going to try to put a burden regardless of how we sugarcoat this the student is going to pay for this the in end user always pays for an increase no matter what you do if you go to a convenience store or anything else the end user
pays for the students are going to end up paying any way we look at it. So we're going to look at putting a burden on a single mother who's trying to go to school working two jobs and trying to go to school either part time or full time are the first generation student who's trying to go to school to change the economic value of their life we're going to look to put them more in debt while they're trying to get student loans or whatever they're trying to do I commend you for the stance you've taken on this and just want to say thank you and I hope the University of Arkansas's
board of directors will look at the students winning and not just the athletic department so thank thank you and I appreciate your your stance on this all right thank you Senator Hester can ask for
Senator Jonathan Dismang
Unverified
1:16:07
a question thank you Chancellor Robinson. I I have I
Senator Bart Hester
Unverified
1:16:11
think you do a remarkable job at the University of Arkansas. I think I've watched you over a very long time deal with very difficult situations and and find solutions. I know that we're going to work it out this time because I have every confidence in you and your leadership that you have a thank you for the difficult work you do we we are
in this position not because of your choice or the board's choice but this was a lawsuit settlement over NIl with the NCAA is that correct? that's what put us in this spot. sir so there's a there's a lawsuit settlement thanks trial lawyers put us in a bad spot again now we got to find some money and we either choose to take it all out of the athletic budget which is which is already underfunded compared to a lot of our competition
and you've been charged with figuring this out. So do you know where where does the University of Arkansas rank amongst our other SEC schools on tuition we're in the there's 16 schools who are in
Speaker 226
1:17:10
the bottom quartile and tuition you know where we want to be you know down by in the bottom because you know we
Speaker 225
1:17:16
don't want to charge students more than we have to but yes that's right yeah I I knew the answer to that and that's why I asked you're doing
Senator Bart Hester
Unverified
1:17:23
a great job we're doing a great job we're where we want to be we're we're trying to do our
best to add to add value there what have the other schools in the SEC we're not the only people that are dealing with this with this shortfall based off this settlement what what are the other SEC schools doing
Speaker 226
1:17:45
to my knowledge s schools are charging students to some extent not all
Representative Jim Wooten
Unverified
1:17:51
of them I mean some choose to address it through fundraising and and getting support from the private sector raising ticket prices foundation
prices so that you can pay to sit in in a more privileged seating so there are a variety of ways we have right now a student athletic pass that students can opt in but it's not required and a number of schools have those student athletic passes as well and it generates revenue but it but it is common to have a student athletic fee it's not I mean we're we're in rarefied air and
not having one and you know for me it was a point of pride but and I think for the university for most of its history it's been a point of pride but I do understand the concern about the current state of things and as I've said to board members if there was a time when I thought that the university needed a student act athletic fee I would I would ask for it I just didn't think that we needed it now but I understand that there are
growing needs for athletic programs in theowour to be competitive
Speaker 291
1:19:06
in this new environment I wouldn't expect you to know that
Senator Bart Hester
Unverified
1:19:10
this things or do you know of any other states have chosen to give an increase from general revenue to their schools to help with this with with the shortfalls are you aware of that
Representative Jim Wooten
Unverified
1:19:24
now I'm not aware of general revenue going to schools you offset revenue share I I've not seen that we we have a tremendous
Senator Bart Hester
Unverified
1:19:33
amount of athletes that go to school which are students as which are students as well I think there's a huge value to to recruit these type of elite competitive hardworking people to our state that I believe they had a lot of value when schools are winning athletically every area of the school wins right the engineering department the the English department every area of schools win when they win athletically I think there's a you know there there's no accident that University of
Alabama has significant increase in national merit scholars since they've become a winner in football but is it is has there been a consideration at all that you know the value of Texas students coming to Arkansas and we had this discussion all the time and I love that the Texas students choose to come here but there's value in it on the dollar wise it is there any consideration was part of any of your proposals and if you can't talk about it I don't want you to I'm not looking to give me hot water I appreciate that out of state students already feel like I'm in hot water you
you are that's the nature of your job right it get it may maybe out of state students covering this not as much as instate students you know again I mean we we're looking at we've
Representative Jim Wooten
Unverified
1:20:48
looked at every option I mean we charge out of state students on an annual basis more I mean when if we raise tuition and fees we raise it more for them and we should because the state supports the un of Arkansas for Arkansans so I don't have a problem with that but to
differentiate on how you do something like this I think is disruptive we want students to come from all over to the University of Arkansas we want competitive programs we are thriving from an enrollment standpoint we turn away students on an annual basis I have35,000 applications that are coming for the fall 26th. I don't have room. I mean this is like the baby Jesus I don't have any more
room in the end so that's a good story to tell and and my sensitivity around costs is is tied to all of this and particularly for ourkansass so I get it I want us to be competitive we will be competitive the board has spoken we're going to follow the board's edict on this but I think we all want the same thing a competitive program that helps the university continue to be attractive to to students who want to come here and and and
get their education at the University of Arkansas thank you I'm done. I know you're gonna work it out
Senator Jonathan Dismang
Unverified
1:22:20
I have confidence in you sir all right thank you that was the last question thank you all very much right no I've got two more popped up there right sorry y'all went off and then came back. right uhent hill you're recognized for a
Senator Ricky Hill
Unverified
1:22:33
question. sorry that was helpful guess my question is is I know we did a state tax exempt as far as student athletes in Arkansas
have you done any calculations at all to see if the state income tax was put on
the NIl money what that revenue that would bring back if the state could give to the University of Arkansas? No sir,
Representative Jim Wooten
Unverified
1:22:53
I have not done that calculation. I don't I have not no sir thank you that's kind of a loaded question do want to say
Speaker 299
1:23:00
but mean that's for you all to figure that just wanna
Senator Ricky Hill
Unverified
1:23:02
make a statement that we did give a state tax cut to the athletes at the University of Arkansas that we were told by legislators that this would make us a
winning program throughout the state and evidently that hasn't happened yet so hopefully that will in the future but just kind of wondering if that tax was
in there where we'd fall out on that and that thank you for your time as I said a while ago I think you're doing one
Representative Matthew J. Shepherd
Unverified
1:23:29
heck of a job. thank you sir right thank you Representative shepherd thank you Mr Chairman and appreciate Senator Hill pointing out a piece of legislation that I sponsored did not make any guarantees of a winning program but this what
this discussion is exactly why we considered and why we passed the exemption which only applies to money paid by the institution to student athletes wouldn't you agree chancellor? Yes yes sir and in order to be competitive under the house settlement you can spend what the percentage a certain percentage of your athletic revenue do you know what the per cent age is Maybe your colleague there could yeah currently under the house settlement this current fiscal
Speaker 305
1:24:15
year is $20.5 million that can be shared with their student athletes we're currently spending 18 and2.5 in new scholarships as required by the SEC so that there's a mandate with them that'll increase4% annually for the next three years and then it recalculates on the basis of theower ive conference so they take all the schools within theower ive and it's 22% of selected categories on our NCA survey and that's how they recalculate it and then it'll start a new cycle and it'll do4% increase over time
during a 10 year window the plaintiffs also have 22 look in windows to do that recalculation of 22% it's part of the reason that we need to remain nimble and flexible as we go forward because we don't know when those plaintiffs will make that call to action of that recalculation of basis so that's that's how it gets to next year is 21.32 and it'll continue follow up to
Representative Matthew J. Shepherd
Unverified
1:25:09
that in the SCC do most schools pay the maximum that they can under the house
Speaker 305
1:25:18
settlement. Yes I'm not aware of one school that's not we're fully committed to stay you know at the maximum if we you know it was necessary funding be available all that stuff is important run competitive standpoint everyone's taking a competitive you know, determining their competitive positioning within college athletics and how they're doing all
Representative Matthew J. Shepherd
Unverified
1:25:37
that stuff so yes and wouldn't you agree that this that exemption is really more about the institution than the student athlete because what this exemption does is it actually stretches the
institution's money farther because when you're competing for a student athlete you're not having to gross up that amount to compete with other states and I and wouldn't you agree it would be great if we eliminated the income tax which we are working on and and continue to reduce and they're going to do more in this session but wouldn't you agree that this actually is saving the institution money is a lot or is stretching the institution's do farther than you otherwise would be and is actually helping to
try to reduce the impact of the house settlement on
Representative Jim Wooten
Unverified
1:26:22
the institution yes I I do think it helps us particularly when we're recruiting against s institutions that don't have a state income tax they that's something they can present to their the agents of the student athletes and say here you can come here and you'll make this x amount but you don't have a student you don't have an income tax so yes it helps us to to be on more of a level playing field with students from those states Mr Chairman, could I have one final question
Representative Matthew J. Shepherd
Unverified
1:26:52
take I'll take silence as acceptance and and maybe the vice chancellor massinelli, I know he's retiring and is very pleased to be here at the table today. but could could you speak to the the athletics it's it's much larger than just the competitiveness on the field it's much larger than wins and losses. I think Senator Hester spoke to this just could you talk about the impact of
having a successful program and what it does in regard to fundraising for the institution, the applicant pool for the institution the sales tax revenue which goes largely to an area of state far away from where I live but the but and not just to s and also the just the value of our institutions to the alumni and the fan base across the state if could you speak to that because I think that sometimes nobody likes to be in this position and we have every time we ran a NIL bill we've all
said like we would prefer not to have to be in this position but unfortunately because of litigation and other things everybody's trying to make the best of this situation but there is also economic value to the institution at the state and the region at large but so just to make surepresentative
Senator Jonathan Dismang
Unverified
1:28:13
you're advocating that Fayetteville will pay a portion of its sales tax revenue and maybe that be what supplements on be I think that's a wonderful idea and just real quick for
everyone I know you're gonna answer that question but I I gonna go back because I know we we we have wandered around all morning and I'm trying to give latitude but I wanna just talk real quickly about what it is that we're here to do and what we're here to do is allowblr to draft appropriations so we can have even bigger discussions than this when we get into session and so just kind of keep that in mind this is not the end of the road this isn't you know you know this isn't your last chance to ask questions and another thing I would really really strongly encourage you to do is
reach out to the institution or the agencies or whoever else and ask your questions it's not always necessary that what we do is in the public sometimes it's needed and helpful and sometimes if you just have a general question about something reach out and pick up the phone and make a phone call and specifically on what we're talking about here again I think it's a good discussion I think it's good for the board and you have a system to know kind of what members thoughts are on it and I think it's good to have it in the public but we will not adopt anything today that will change
this situation for the u of a OK when we pass through appropriation if you are wanting to make a change you would have to adopt special language and just keep in mind when you do that it's probably subject to amendment33 and and and ultimately still the will of the university system so again I just wanna I know we're going down a road it just seems like we're I keep having more people pop into the queue let's try to find a an end to this discussion and let these good folks
let someone else take the table I think againenator
flowers has got UAPB if y'all can be on deck that would be great. but with that I'll let you answer your questions sorry to interrupt
Speaker 259
1:30:07
you I just it's no no what I thank you I just want to
Representative Jim Wooten
Unverified
1:30:13
say that there's nobody more interested in a successful athletic program than the chancellor of the University of Arkansas. I want our athletic programs every single one of them to be annual national champions and we will do everything we can to support
them to the best of our ability because they help everything much aspresentative shepherd has pointed out there's nothing that suffers when athletics is doing well. you even treat us nicer when the razorbacks win. and I was worried after that Florida game because I thought damn that's not that's not what we needed coming here so so yes we all want success and I appreciate all the comments and all the interest in the University of Arkansas because I
know it comes from the right place we're trying to support this state, support state institutions and make sure that we're doing the right thing for our students so thank you and yes go hogs I mean that's that's a way to to wrap that up in
Senator Jonathan Dismang
Unverified
1:31:17
my opinion oo 10 you're recognized for final question thank you
Representative Jim Wooten
Unverified
1:31:21
Mr Chairman you just had two volunteers
and Senator Hester and shepherd uhpresentative shepherd do you have anyone stepping forward with50 million dollars that's happened at SMU. I'm not aware of that that those I'm always
Speaker 225
1:31:43
hopeful but I'm not aware two might be willing to give 50 million. I appreciate that
Representative Jim Wooten
Unverified
1:31:48
we take it for sure thank you all right
Speaker 244
1:31:53
thank you and appreciate the time and glad to
Senator Jonathan Dismang
Unverified
1:32:01
wrap that up with Fayetteville chunking in its share of sales tax revenue to help support theva system which is greatly benefiting from good men and women right with that I'm gonna recognizesenator flowers and then hopefully we've had someone from University of Arkansas Pine Bluff OK OK if you could just recognize yourself
and then send your flowers you're recognized for your question
Senator Stephanie Flowers
Unverified
1:32:31
Thank you. I think our new chancellors coming up Anthony Graham, chancellor at the University of Arkansas
Speaker 311
1:32:47
pine bluff. Janet Boyle, chief of staff at U Nick Fuller from division
Speaker 313
1:32:52
of higher edd. I'll be representing the higher ed coordinating board right
Senator Stephanie Flowers
Unverified
1:33:02
my question and chancellor you might be able to answer this I know you're new to the university we have this 1890 extension program and the funding for it as I understand it is
the state is required to match some of the federal appropriation
of funding so in the past UAPB has not
received all of the state match portion we've been trying to correct that and get the match that is required from the state for receiving these federal funds can you talk about because on this summary it has 1890 extension program at UAPB authorized
and recommended to receive a decrease
of6.25% and when you look at our
budget manual the appropriation for 2526 was six million396701 the recommendation now from the AHECB
is5,905 million 997200 what is required for this next fiscal year if you know yes ma'am so
the federal match and the state match there's a requirement that should be a 1
Speaker 311
1:34:50
to 1 match I do want to commend the state of Arkansas. There are states in the south that have not lived up to that match so I do commend the state of Arkansas for committing to moving in that direction with respect to your question about
the specifics of this exact match I'm actually going to pass to Mr Fulley here ma
Representative Jim Wooten
Unverified
1:35:14
and I will say as senator Disma mentioned earlier that6.3 million was on the appropriation only not
Nick Fuller
Unverified
1:35:19
the funding side of that that was in in anticipation of a potential increase on the federal portion that did not materialize. We we did allocate5.8 million in RsA for the match last year and the the new recommendation for the5.9 is bringing that appropriation
Speaker 322
1:35:38
level back in line with the the more accurate funding level well
Senator Stephanie Flowers
Unverified
1:35:42
do we know exactly what the 1 to 1 match is going to be required I don't know that we know that the
Representative Jim Wooten
Unverified
1:35:52
specific for the the four I think it's on a calendar year basis when we receive that so we're we're still projecting out the need as we do a fiscal year budget I will say you know this this past year we added $2 million in RSA to that fund to
Nick Fuller
Unverified
1:36:08
make sure that the state is providing ongoing support to meet that match and that's helped us not have to request a waiver over the past few years to meet the match of that 1890 grant where we did in the past
Speaker 323
1:36:22
years before that we we did meet the
Senator Stephanie Flowers
Unverified
1:36:24
match this this past year and we believe we'll meet the match on for the next fiscal year yes ma'am will there be any other additional funding appropriated just in the event
that the feds increase the match
Speaker 326
1:36:41
the the recommendation that5.9 million is
Representative Jim Wooten
Unverified
1:36:44
a percentage increase over the current funding allocation and that is5.8 million and I believe5.8 is again in
Nick Fuller
Unverified
1:36:51
the balanced budget that was presented to you this morning so there could be the potential if the match amount is raised that appropriation is available to add funding but additional funding is not being allocated above the5.8 OK
Senator Stephanie Flowers
Unverified
1:37:10
you know I'm that's my district I'm from pine bluff and I'm quite concerned about keeping that extension program we do good work good research is performed and I will add on that we we
Representative Jim Wooten
Unverified
1:37:21
do have $2 million that's put in a set aside you know
Nick Fuller
Unverified
1:37:24
like a holding account in the event that that goes up that we can release funds to
Senator Stephanie Flowers
Unverified
1:37:31
help make sure that match is met. OK, thank you and the Chancellor Robinson fromuafayetteville mentioned that the division their
division of agriculture at the university is managing I guess our our controlling their extension program they're matching funds I don't see that anywhere in the manual it doesn't say yes ma'am their their portion and what they do for their land grant match which it's
Nick Fuller
Unverified
1:37:54
not 1890 it's a separate land
Representative Jim Wooten
Unverified
1:37:57
grant that they receive that that is just mixed into their dedicated budget we just have a separate to make sure that we have it specified how much we're allocating to
Nick Fuller
Unverified
1:38:10
the890 grant UAPB for the division of agriculture there's this mixed in with their their operating budget on the state side when was that done I could not many years before I was here I do not know that's that's been an ongoing thing. Well many years before you were
Senator Stephanie Flowers
Unverified
1:38:27
here how many years have you been here? I've been in
Nick Fuller
Unverified
1:38:30
this role for almost 10 years but I would have to research and tell you when that was combined into one operating but we did pull out the amount for the 1890 land
grant for UAPB we separated that this past year to make sure that we're fully supporting that on a state level to make
Senator Stephanie Flowers
Unverified
1:38:51
sure that the funding goes to meet that match requirement. Well thank you for that but in your research of the history of of this change of management at the Fafayetteville I'd like to know in that in the budget present budget of Fayetteville what how can we figure out what
their portion of the land grant matches and and that will be
Representative Jim Wooten
Unverified
1:39:17
within the division of ag agriculture because the the division of agriculture is a a subsection of what was the un ofette Arkansas Fayetteville rolls into the system so that's why the division of agriculture will have that peace it will
Nick Fuller
Unverified
1:39:30
not be in the University of Arkansasayetteville's budget at any point. but it'll beua division of
Senator Stephanie Flowers
Unverified
1:39:36
agriculture. So is does that come under the hierarchy of the university though yes it is part
Senator Stephanie Flowers
Unverified
1:39:46
system OK well Mr Chair at the appropriate time I
guess when theua division of agriculture comes up here we'll be able to find out from them how much they're projected to be required to have for their land grant match at the Fayetteville campus are you wanting to do that
Senator Jonathan Dismang
Unverified
1:40:08
senator before we vote to have recommendations for the appropriations or are you
wanting to bring them forward when we actually go through their actual preparation in the fiscal session
Senator Stephanie Flowers
Unverified
1:40:20
well if someone's here from that division of agriculture andu of a if if they can come to the table and and say so if we have someone
Senator Jonathan Dismang
Unverified
1:40:29
from the division A can you make your way forward and before we do that I've got
Representative garner is gonna make a statement, make a request I think y'all are already aware of the request and if you could I guess staff will get that out to them
Speaker 82
1:40:45
and make sure you respond back to staff with the question with thatpresentative Ggarner you recognized well there you
Representative Denise Garner
Unverified
1:40:56
go thank you Mr Chair and apologize for the confusion first of all I just want to thank all of the agencies across the board but especially the higher ed folks that are here that have sent back information on questions that I sent out to y'all so that we could have this robust discussion during budgets during budget session but
there were some confusion I think on on the the last question in that series and I just wanted to clarify a little bit about why it's not the same as question two and for for colleagues I'll be glad to send those questions out as well as the responses from the from the higher ed the institutions all of the institutions the agency institutions if you're interested but the last question
was if a public employee or public official with discipline with disciplinary appointing or budgetary authority over your department puts pressure on any public employee to violate a protected First amendment right of another employee how does your department proceed? Many of you answered that question just by explaining your general grievance policy. so so my I'm taking this opportunity to to clarify a little bit about what kind of what kind of
answers I was seeking basically I wanna know sure I want to make sure that we are that steps are being taken to ensure that employee employment decisions remain independent of political pressure so I've got a hypothetical scenario Imagine that you hire somebody in your department who is an atheist and has made that publicly has made publicly available statements to the effect that God does not exist
The news breaks and my Christian values are offended so I give you a call and I pressure you to discipline or terminate that employee I strongly imply that if you don't, I will hold your budget funding from the entire department what do you do next Is there a policy in place that allows you to do the right go the right thing without fear of political retaliation and is there a policy in place in your department that empowers
you as a whistleblower such that you can report my outside political pressure to someone I guess the main thing is that I'm trying to make sure that and this is the yes or no question that you can send in your answer to staff and they will get to me so we can we can look at all of the data together Can you assure this committee that employment decisions within your agency are based on
qualifications and performance and not on whether an employee's lawful beuvos align with those of individual legislators so if you will take that question and answer that question I think in the in the interest of time and expediency if you will send that to staff, they can send it back to me and I'll send it out to anyone who's interested and will take this information gather it together and talk about all of the first amendment rights issues during budget season. thank you very much
Senator Jonathan Dismang
Unverified
1:44:19
all right thank you Representative recommend going back grabbing the video, get your full question and if you can send that in to staff that
would be helpful right thank you we are at back tocentered flowers you've got a question you have this system good
Senator Stephanie Flowers
Unverified
1:44:37
morning gentlemen I don't know if they've identified themselves deqfields vice president of
Speaker 334
1:44:43
University of Arkansas division of agriculture Matt Brown division of agriculture
Speaker 336
1:44:49
Jeff Wever, director of government affairs for the UFA
Senator Stephanie Flowers
Unverified
1:44:55
division of agriculture. OK my question concerns the land grant funding matching
Speaker 314
1:44:59
funding with the fed appropriating so much to the
Senator Stephanie Flowers
Unverified
1:45:05
university in years past I mean when it was set up
I think it was maybe earlier around the time of the 1890 grant that land grant that UAPB or AM andE and
received but where how do you I'm trying to figure out what is the match that you get from the state for these federal
funds well thank you for the clarifying question
Speaker 337
1:45:35
first I want to say that the division of agriculture our budget is mutually exclusive from the University of Arkansas at Fafayetteville so we have for our federal match we received smith Lever federal funding for extension
last year that federal funding was6.16.2 million dollars in federal funding that the state did match. so it's
Senator Stephanie Flowers
Unverified
1:46:00
it it seems like it's close to what the University of
Arkansas at Pine Bluff receives for their land grant match for the for the
Senator Stephanie Flowers
Unverified
1:46:14
division of agriculture at UA expends that money
Speaker 337
1:46:24
for research that portion is for extension and outreach. extension and outreaching hatch funding is for research butsmith Lever funding is for extension
Senator Stephanie Flowers
Unverified
1:46:34
and outreach is that those two funding entities that you just mentionedsmithfield and the other is that the whole land grant thatua Fayetteville receives so no as I mentioned Smith Leaver is strictly for the extension
Speaker 337
1:46:54
portion hatch funding covers our research component from the federal government so that that portion was3.43.5 million for research and in our
Senator Stephanie Flowers
Unverified
1:47:07
budget manual how how will we distinguish where you have those funds I didn't see where that's delineated or labeled inchedule
F and Schedule F on page one
Speaker 342
1:47:24
where it says division of agriculture that's our total state appropriation but these matching funds are included in those
Senator Stephanie Flowers
Unverified
1:47:31
totals so in our budget manual and when you all will appear before us later I suppose you all will spell out what's for
Smithfield what's for the other to total the six ok that will be in our manual but I don't see that it's never
Speaker 342
1:47:54
gonna be separately in the manual because it's all included in the one appropriation we've discussed Senatoril we'll get that to you'd like to know that
Senator Stephanie Flowers
Unverified
1:48:04
I mean how would we know that it's being used for those purposes if it's not in your your lines for your budget we we can provide details for you. appreciate that when y'all come back to us
you'll have that I'll give it to you before the end yeah they're gonna have it
Speaker 348
1:48:25
to you before then thank you Mrir thank you all right
Senator Jonathan Dismang
Unverified
1:48:29
members that wraps up I think the discussion we've had on higher education at least the questions with that I'm going to
Speaker 86
1:48:34
recognize Senator Bryant for a motion. thank you
Senator Joshua Bryant
Unverified
1:48:39
and thank youstitutions higher education not make a motion that the Arkansas higher Education's coordinating board's recommendation for all institutions. all right thank you members we've got a motion we
Senator Jonathan Dismang
Unverified
1:48:47
have a second we've got a second any discussion on the motion seeing none all those in favor signify by saying aye
all those opposed motion carries members this brings us to the department oforrection I'm assuming we're about to have an exodus of folks thank you all for being here today and I
kinda am disappointed we didn't do the cattle call but maybe next time that says that all right members while they're
leaving if I can have your attention because I just want to make sure we're utilizing time
the best we can on how we move forward we're gonna be working out of your JBC manual that you've got right here obviously we're kicking things off with department oforrections re ctor Wallace will be here to help answer questions Secretary Wallace will be here to help answer questions and of course we've got Mr Coleman on our on our team over here to kind of give some brief outlines here's how I would like this to work so we don't get ourselves
stuck in mud kind of like we did at higher edge a little bit different there is a number of different entities there's only one department of corrections that's going to be here to answer questions so what
I want us to do is work through this list if you have questions on what's on this list when we work through it ask them we will be asking for exact correct legislative re whatever it may be at the conclusion of that bi section so for instance we'll we'll first dispose of the letter
which isg1 and then we'll move to the corrections department and I'll be asking for a motion that we adopt executive rec for pages4 through 8 OK? then we'll move on to the next but if you can limit your question to what's in that section and if you've got questions about things that are outside of what's in that section hold them into the end and we will stay here as long as y'all want to with the department of corrections to answer questions
that are not related to what's what we're considering today in their appropriations does that make sense to everyone or does anyone have any questions on that again we're gonna work through this by section keep your questions, comments limited to that section we'll move forward and if there are questions outside of that and so to answer one question that I thinks coming there is nothing about what we're going to discuss today that has to do with capital expenditures as a unless it's
regular maintenance type items so there is no prison funding there is none of those items are in any of these appropriations that we're discussing today so if you've got questions about the construction of the prison for Secretary Wallace we're going to take those up at the end as we kind of work through this this is for the current operations of the department of Corrections and moving through to adopt appropri ations for later on with
that senator hill you're recognized for a question would you state which one we're starting on and what page we are on because I could not hear you
yeah we're gonna be on section g
Department of Corrections we'll have Secretary Wallace come forward she's gonna I think make some brief remarks unless she doesn't want to which is perfectly fine then we're gonna start things off withg1 which is a response to legislation that was filed and moving of positions and then we're gonna work through this again so it's a little bit quieter in here now then we're gonna take things by section on what you have in front of you so we'll we'll first dispose of the corrections department pages four through 8
we'll take questions we'll have comments we'll work through that and then we'll move on through if you have questions that are not related to that section hold those until the appropriate section you're on or if it's not related to anything we'll take those up at the end and I promise we will be here as long as we need to to answer questions I just want to
make sure we're flowing through the process the best we can with that Secretary Wallace you are recognized thank you Mr chairman committee
Representative Jim Wooten
Unverified
1:53:00
members Lindsey Wallace secretary for the Arkansas
Department of Corrections. I had not prepared any remarks so I will yield to questions for you all if there are any or if there's anything specifically you want me
Senator Jonathan Dismang
Unverified
1:53:16
to address. all right perfect. members we're gonna move tog1 so can we have a quick ok
Representative R. Scott Richardson
Unverified
1:53:22
you're gonna do that you're recognized for an explanation ong1.
Speaker 357
1:53:27
yes sir Ka barnhill with the office of personnel Managementgone is a transfer of51 positions from the
department of Corrections to the to the secretary's office at the department of corrections this is to activate the recidivism program that will be put in place these are fi0 correctional corporals and one corrections deputy director that will manage that program the cost is estimated to be approximately4 million dollars. right thank you members do we have
Senator Jonathan Dismang
Unverified
1:53:59
any questions ong1? all right seeing no questions
Senator Bryant recognized for a motion just the motion
Speaker 82
1:54:14
we adopt G1 letter motion to adoptg1. do we have a
Senator Jonathan Dismang
Unverified
1:54:19
second? we have a second any discussion on the motion seeing none all those in favor signify by saying aye all those opposed motion carries right members that's gonna take us to the corrections department we're gonna be working in the budget manual pages4 through 8 and
you're recognized for a brief presentation thank
Dalton Coleman
Unverified
1:54:37
you Mr Chair. my name is Dalton Coleman. I'mblR fiscal staff. if you'll flip all the way to page two of your budget manuals with me we'll start our look at the department of Corrections division of Administration and sharered Services So just some brief totals for this division fiscal year 26 authorized amount is just under $209 million and the fiscal year 27 recommendation is just under $217 billion that is an $8 million increase if we look at page four with me
we'll start looking at where those changes come from this will be a common theme throughout this presentation Mr Chair you're gonna hear me say Acts7:23 of2025 several times and that's because it moved a lot of things around the Department oforrection this is the first one so this appropriation previously existed in the division of correction is now moved to the division ofdminist administration and shared Services it's not a new appropriation but it's for $170,000 for the sex offender assessment
our next change is on page 8 of your manuals so there's a couple of little differences here one is the positional difference and that's from the transfer end of those sex offender assessment positions and then the main difference is the medical contracts line item on the bottom of that table on page 8. there's about a6 million dollars increase in that line item and that's for anticipated increases in contract costs Mr Chairman that concludes all the change levels for administration and shared services all right thank you members do
Senator Jonathan Dismang
Unverified
1:56:08
we have any questions on pages4 through 8 of your budget manual and recommendations all right seeing none what's the will of the committee senator flowers as you're recognized for a
Senator Stephanie Flowers
Unverified
1:56:25
question on item any item that's4 through 8. thank you and thank you for being here on the medical contracts it appears the actual was 139 for this fiscal year
and has a contract the medical contract for the department increased so that it makes sense of the legislative agency request and the executive recommendation do y'all have a have you renewed a
contract medical contract? Chad Brown C Department of
Representative R. Scott Richardson
Unverified
1:57:08
Corrections senator this is the medical contract that was
discussed a couple of years ago the initial contract the initial period of this contract is 2 years. This will be coming up for the third year renewal coming up in September so we're working towards that coming up in September this is just our standard medical contract for the department ofrections for our inmate population. and so you
Senator Stephanie Flowers
Unverified
1:57:31
anticipate an increase in the contract yes ma'am so this contract's a little weird
Representative R. Scott Richardson
Unverified
1:57:35
because we had to do a three month extension so it doesn't line up with the fiscal years
but basically the contract gradually increases over the 10 year period so yes we agree with this increase this should cover it and then we'll we'll continue to bring this back before this
Senator Stephanie Flowers
Unverified
1:57:57
body every year for renewal. well you know'll I'll just mention that from time to time I get letters and calls from
relatives of those inmates that require medical care and sometimes the most of the
time it's a complaint that they're relative in in the corrections system is not getting proper medical care who is the contract with and
is that the vendor that you you are you gonna renegotiate with that vendor or is it gonna be offered out and opened up for other vendors too no ma'am the current vendor that we have a contract with the company
Representative R. Scott Richardson
Unverified
1:58:40
name is WellPath we went through the RfP process
it was a long arduous process but once we completed it WellPath was the lowest vendor that's who we chose we've been in business with them for a long time with the state when it comes to renegotiation that's something I'm going to discuss with Secretary Wallace probably in the next month to see
Senator Stephanie Flowers
Unverified
1:59:04
how we want to go about that are you aware that there are complaints and how what is the process of addressing complaints for relatives outside the system
that have relatives in the system Senator dexter Payne,
Speaker 369
1:59:18
director for the division of correction. we have a process in place that they can contact our medical department at
Speaker 370
1:59:24
central office if they have complaints if the inmate has direct complaints he can file a grievance a medical grievance and we'll answer that grievance for him so we've got those avenues I've got a assistant medical administrator right now
Speaker 371
1:59:37
who will also answers those questions for him well I'd like to kind of I think
Senator Stephanie Flowers
Unverified
1:59:46
it would be helpful to the whole body to to know how many complaints you all are fielding in the course of a year and and how many have been resolved? how many have been found not to be valid at all. yes ma'am, I can get those numbers to
Senator Jonathan Dismang
Unverified
2:00:05
you thank you thank you that was perfect, centered
Senator Tyler Dees
Unverified
2:00:07
flowers uhin des you recognized thank you Mr chairir. quick question over here on when I when I look
Senator Stephanie Flowers
Unverified
2:00:13
at page 6 I believe it is on county jail
Senator Tyler Dees
Unverified
2:00:17
reimbursements just seeing a flat budget looks like on the recommendation I just constantly hear of of budgets related to county jails and state inmates and and costs not covering those housing of those inmates could you walk me through how we're flat or recommending flat whenever I hear of concerns across the state Sure I'd be glad to first I
Speaker 378
2:00:39
wanna thank Mr Andy Babbitt behind me he's been a huge help with this
Representative R. Scott Richardson
Unverified
2:00:47
process and I do call it a process what we found with county jails we were how do I explain this easiest we were paying invoices from previous fiscal years so when we send invoices out the counties are not always diligent sending those invoices back to us for payment so sometimes some of the counties would be a year late in sending those invoices back what we have done to fix that problem and that's where I bring in Mr Babbitt and his and his team we have been meeting with the association of counties the
sheriff's department or the sheriff's association what's that the sheriff association and we've gone to their conference we've talked to all the sheriffs they are now sending those invoices in a timely manner. so we have since we have received this increase in funding we have received zero complaints of not being paid so if you receive a complaint please let us know because we haven't received any so I'm not sure if the complaints I heard
Senator Tyler Dees
Unverified
2:01:44
were were around timing of funding but around total dollars
to cover the costs of actually housing those inmates so maybe if you could speak to that are are we adequately funding ouru our county jails when they do have to house state inmates thank you for the question senator. so the the amount
Representative Jim Wooten
Unverified
2:02:03
that is set for the county jail reimbursement is actually set by you all so we're just a pass through for the funding. I don't know that all county jails are created equal. I don't know what their expenses are. I know that the association of counties does do a report on how much it
actually costs the counties but that40 dollars it's40
Speaker 380
2:02:22
dollars a day is what is what we pay and that has been the amount since 2022. before that in 2020 it was32 dollars 20 15 it was30 dollars and that's legislatively set. and I think with the chief fiscal officer of the
Representative Jim Wooten
Unverified
2:02:36
state's input. so we're just there to to pay whatever the set amount is so that's that's kind of up to you
all and to the chief fiscal officer with that amount is. I appreciate that thanks thank you Representative Ggarner
Senator Jonathan Dismang
Unverified
2:02:51
recognized for a question thank you Mr
Representative Denise Garner
Unverified
2:02:53
Chair. I've got a quick here I am I've got a quick follow up and on Senator Flower's question and I know we've talked about
this before but Wellpa is there a mechanism to make sure that everything that they're doing is up to date and research baseds and who who monitors what they're doing and how they're doing it is there somebody that does that or do we just assume they know what they're talking about?
Speaker 370
2:03:26
thanks for the question Miss Ggarner. yes we have we have a third party audit company that comes in by the name of MQRs and they make sure that willath is is doing the things that they're supposed to be doing such as answering grievances sending the inmates seeing the inmates in a timely manner sending them out when necessary so they they make sure that they're doing what they're supposed to do along with my my staff what about the what about the actual care that they're
Representative Denise Garner
Unverified
2:03:57
getting? do we know that they're getting the most up todate care. I know we've talked about hepatitis C. are they getting the most up todate care that's researchbased and our or evidencebased ma'am so who decides that? Is there some does that QRS QRs program look at those kinds of things yes they look at they look at those types of things and
Speaker 370
2:04:21
and advise us and the treatments that
Representative Denise Garner
Unverified
2:04:23
they're getting and make sure that they're up to
date and what most most physicians are doing for those particular illnesses ma'am thank you appreciate it thank you Representativeooten you're recognized for a
Representative Jim Wooten
Unverified
2:04:42
question thank you Mr Chairman. My question has to do with personnel as usual is this shared services is it for all that your institutions that you have is No sir, those are all broken up
by division. there are some positions that are specifically tied to shared services but like Director Payne's security positions that work
Speaker 380
2:05:06
at the institutions. Mr. Cheek's positions that are working out in probation and parole they're
Representative Jim Wooten
Unverified
2:05:12
in those individual budgeted areas. so you won't see a total amount in the shared services budget what is what is if
if I may Mr Chairman, what is your let's just get this out of the way. What is your total employment
Speaker 380
2:05:31
in everything? So our total DOC positions filled as of Tuesday was4915 positions 950 the great majority of those are in director painyne's side how many of those are vacant? Vacant total DOC vacancies is about 1500. some of those include unbudgeted how many of those are over two years old I don't know that number
Representative Jim Wooten
Unverified
2:05:53
on the top of my head can you get
Speaker 382
2:05:57
that information for me? absolutely from from your last report
Representative Jim Wooten
Unverified
2:06:03
and OK my my director over humansources here. she's going to get us the information for you all right thank you thank you Mr
Speaker 149
2:06:15
Chairman right thank you Representative Richardson you're recognized for a question. Thank you Mr Chair.d a I
Representative R. Scott Richardson
Unverified
2:06:22
wanted to follow back up with something that you just said up there. You said that the counties of jails that are excuse me you said that you hadn't been receiving invoices and that's surprising to me because I know there have been
jails who've been complaining about funding and not getting money so I'm surprised that they're not sending in invoices to get paid. Do you know how many of those actually were not sending in no sir we sent a quarterly report to the
association of counties and they send that they've been sending out emails to the counties that have been late on sending back their invoices I think right now if I had to guesstimate a number off the top of my head, I think we're about half a million dollars still hanging out there to be paid from previous fiscal years ok and no idea what parts of the state that's coming from.
Speaker 131
2:07:06
We do. I just don't have that in front of me. I can provide
Senator Jonathan Dismang
Unverified
2:07:11
that to you if I need to thank you thank you members if we have any other questions on pages4 through 8? all right seeing none I need a motion to adopt the executive rec for the juvenile sex offender assessment county jail reimbursement and department of correction. I've got a motion. I've got a second any discussion on the motion? seeing none all those in favor signify by saying aye all those opposed motion carriesers we're going to work through the division of correction now thank you Mr Chair. if you'll
Dalton Coleman
Unverified
2:07:37
turn to page 10, you'll find the appropriation summary for the division of correction.uckily we'll be able to stay on this page for the entirety of the division presentation all of these changes within this division are due to actcts7:23 of2025. we have reallocations out reallocations and the only reallocation out we already talked about it is the ADC sex offender assessment that went to the division of administration and sharedervices there are three reallocations into the division of correction the first on the inmate care and custody line item. so there's an increase of about43 million
dollars there from fiscal year 26 authorized that's due to Acts7:23 relocating the residential services programs from the division ofunity Correction into the division oforrection and that's that's the appropriation that those are housed in the last two are inmate welfare treasury cash and nontax revenue receipts and inmate welfare treasury cash increases by about3 million dollars and nontax revenue receipts increases by about $1 million and those are just reallocations from the resident's cash treasury
appropriation and the division of Communityorrection the totals for the division of correction go from437 million dollars in fiscal year 26 to483 million dollars in fiscal year 27 but none of that is new appropriation so all just reallocated due to Act723. Mr Chairman, I'm happy to answer any questionsembers if you have any questions Senator Tucker recognized for a question thank you Mr Chair. will you just explain one
Senator Jonathan Dismang
Unverified
2:08:57
more time what's being moved from community correction to
Senator Clarke Tucker
Unverified
2:09:02
corrections so the inmate here in custody line item that you see in this division the
residential services programs are moving to that
Dalton Coleman
Unverified
2:09:12
that appropriation and then the residents cash treasury is moving to the inmate welfare treasury cash and nontax revenue receipts line items on this table and that's the inmate welfare of treasury cash is I believe the appropriation for the commissary related things and then the nontax revenue receipts is is their phone service the first program you mentioned the resident welfare programme residential services programsidential
Senator Clarke Tucker
Unverified
2:09:31
services program what what is that senator let me let me take this
Representative R. Scott Richardson
Unverified
2:09:40
off Dalton's plate for him so what we did is we transferred on the community correction side of the house which is our problem and probation mostly side of the house they had some what we call residential facilities basically secured facilities Secretary Wallace wanted to move all secured facilities over to re ctor Payne's side of the house on AdC so
Speaker 394
2:10:00
that's essentially what we did at the tune of about46 million dollars I guess that is
Senator Clarke Tucker
Unverified
2:10:05
so the community correction facilities for example Secretary Wallace where we have the intermediate sanction programs those are
those were removed from community corrections to the division of corrections. Yes, the oversight is
Representative Jim Wooten
Unverified
2:10:16
that withrector Payne's side of the house now there's no change in
Speaker 380
2:10:19
the programs at this time we just moved the the facilities there's more resources with cash funds things like that and you know security is security. so we put it with the security side of the house. The programming aspect we have a director of programming now that kind of oversees the programming for everything so it made more sense to put those there. OK so community correction really just
Senator Clarke Tucker
Unverified
2:10:42
consists of parole and probation at this point sir
Speaker 380
2:10:45
and they have oversight of the sex offender community notification assessments as well now so we pushed that over that was previously housed with Director Payne so sort of management of those services where the sex offender assessments aot are out in community things like that that's also under the community corrections oversight now so what are
Senator Clarke Tucker
Unverified
2:11:04
we going to call the communityorrection facilities if they're not if they're not in the
Speaker 380
2:11:09
community correction center the oversight of the division of
Senator Clarke Tucker
Unverified
2:11:12
correction thank you and then my other question is about the theg1 letter that Miss Barnhill mentioned. those are how many positions are
there going to be in the recidivism program established by723. so the recidivism reduction system actually allowed us to
Representative Jim Wooten
Unverified
2:11:28
reclassify up to 100. we're starting with50.
Speaker 380
2:11:30
I didn't want to take more security positions then at this point that I knew we were going to need. the act requires there to be at least one, I think reentry
specialist is what the act said. at each facility. So we're starting with I think there's about40 positions that we created some of those are in the kind of the oversight aspect of that one is a director of what that recidivism reduction reentry system looks like. there's some sort of statewide monitoring and then those individual I think 28 28 positions to start off at each facility and then there is some additions of a couple of
positions in the it's our quality improvement quality assurance. So a program assessment and oversight area that we added to that. So I don't I can't remember off the top of my head it's41 or42 physicians at those50 will create and
Senator Clarke Tucker
Unverified
2:12:30
what how is that going? how far are we into that process so
Speaker 380
2:12:34
we are we really need those positions to kick off what that development actually looks like but I think we've already made quite a few strides in in changing sort of the approach to
reentry and our recidivism issues in the state one we just had theuture fit graduation which was sort of a a new pilot program with workforce development. we've partnered with DFNA to come in and look at child support obligations, sort of those reentry barriers. we've graduated 18 folks out of that initially. we've got another cohort going now and they start immediately after we finish those. beyond that we are also looking at starting a peer
peer recovery academy so that we can have sort of that lived experience with our offenders that are incarcerated that can help us with programming. I think that's twofold for them that will allow them if they go through the academy and complete all of their peer groups will allow them to get a certificate which benefits them once they get out of incarceration. but then once they get that certificate then they can help us with our programming as well. so we can train them to help us present programs to the to the inmate
population in addition to that we have I don't know if you all have been, I know some of the the ladies in the room have been over there. We have a new women's healthal unit where we're addressing recidivism with them. we're addressing familial connections and sort of that bonding thetE Act required us to create a bonding period with mothers and babies and so that's where we're facilitating that so beyond that we implemented the ohioris assessment tool which is an assessment tool that
helps us make sure we get the offenders what they need when they come into us we're working through getting those assessed the recidivism reduction actct actually anticipated us not being able to get this into complete fruition until I think the the end of this year. So right now we at the last count that I got at the end of last month we had about 9000 assessments remaining for our incarcerated population and that'll help us develop any additional
programming that this reentry recidivism reduction system will implement eventually those Ohio assessments you'll be doing those when
Senator Clarke Tucker
Unverified
2:14:55
people enter the system and and they reassessed
Speaker 380
2:14:58
it requires reassessment periodically throughout their incarceration when a triggering event happens. yes sir and those positions for the recidivism reduction programme can you
Senator Clarke Tucker
Unverified
2:15:07
not fill those until we approve this or hass think that would be helpful we've been working with with Kay and
Speaker 380
2:15:18
anddF andA and trying to work through what that would look
Representative Jim Wooten
Unverified
2:15:21
like but we first had to convert the the50 positions into my my area I guess so that we could cause that was also something that the the act
Speaker 380
2:15:28
required was that it be created within the office of the secretary. So I don't know what all of the specific steps are but yes
Speaker 390
2:15:34
sir. all right thank you so much sir right thank you
Senator Jonathan Dismang
Unverified
2:15:40
Representative beatty thank you Mr chairir. over here kind of focused on page 11 on
Representative Howard M. Beaty, Jr.
Unverified
2:15:50
the work release. you you mentioned in here a over500 inmates program. do you have the average number of inmates that participate in the work release program and a breakout between those they're they're uhpresentative Baer is probably close to 800 that participate
Speaker 369
2:16:20
at any given time it it fluctuates at the facilities depends on the jobs that are available. Well
Representative Howard M. Beaty, Jr.
Unverified
2:16:26
think that's kind of where where I was going with my question it in your document that's prepared here for us on the budget it said
over500,500 800 is kind of a step above500 in
there but I'd I'd like average numbers and and also to see justification for those five centers that that that is spread where those inmates are in the state
Senator Jonathan Dismang
Unverified
2:16:51
we can get that later yes
Senator Stephanie Flowers
Unverified
2:16:58
sir we'll get it to you you right thank you senator
flowers. thank you Mrir I'm looking at the medical monetary sanctions receipts and budget request so is that part of this contract that you spoke of with Wellpath that they
reimburse or pay to offset for services not rendered or anticipated
yes ma'am so during the negotiations of
Representative R. Scott Richardson
Unverified
2:17:30
this contract we upped our performance for them and if they don't meet that performance then they essentially write us a check that check goes into this fund the the medical monnetary sanctions fund
Senator Stephanie Flowers
Unverified
2:17:45
how how much have you been getting back can you put that
in a percentage or or what in and I would think that that would kinda indicate maybe it work along with assessing and reviewing complaints by inmates are relatives of inmates that are complaining that their relative in the system is not getting proper medical care I just kind of want to know well
is it how much are you getting back?
Representative R. Scott Richardson
Unverified
2:18:25
so senator it looks like an fy 25 it was around690,000 but I can get back let me get back to the office and I can get you a couple
Senator Stephanie Flowers
Unverified
2:18:35
fiscal years of what that looks like to give you a better idea. OK I think it would be helpful just to have a kind of a history and and helps to understand when we get complaints what we can say to constituents or relatives of these inmates that are complaining about healthcare
Representative R. Scott Richardson
Unverified
2:19:01
you understand what I'm saying yes ma'am. well we're we're I'm pretty sure that those performance requirements are broken
Senator Stephanie Flowers
Unverified
2:19:10
down in the contract and I'll be happy to get that for you but I really am stressing this because I I I've received too many calls and and letters about inmates not getting medicines or proper care thank you thank you Mr Chair
Senator Jonathan Dismang
Unverified
2:19:28
youpresentative Woootten you're recognized for a question chairman
Representative Jim Wooten
Unverified
2:19:34
you mentioned 1500 vacancies madam secretary of the of those 1500 how many of those are security personnel
the number that I have on my sheet for the division oforrections is a little is 1290 uh398 of those are unbudgeted 88
has this may be a question for Mr Has the increase in pay helped in recruiting any at all yes sir
Speaker 370
2:20:13
it definitely has helped our vacancy rate dropped tremendously after after that pay plan was implemented so yes sir it it it definitely helped it's just a matter of turnover
Representative Jim Wooten
Unverified
2:20:23
is the version you got398 or do you not have the funding to pay all of them those those positions those398 are
Speaker 370
2:20:30
unbudgeted so yes sir we don't have the funds to pay the398 can clarify that
Representative Jim Wooten
Unverified
2:20:37
that 1290 thank you Sonia for the clarification that I gave you. it's not just security that's overall that's overall numbers yes so that would include any sort of programming we talked about some of the positions not being in the shared services area. so programming staff if
he has a chaplain that's vacant or anything like that, those will fall in that total but that total
vacancy number that I mentioned the the398 or or the 50 ok
but the but but the increase in compensation for the security people has helped you recruit. Yes sir. OK. I've got one more question Mr Chairman on the page 10 item two the recommendation in the legislative and the executive recommendation is the529 million that's an increase of46
million from the budget. so is that's that's a request for a new money yes
sir that's to cover the increases in our and that was what was what Mr sorry, hudson presented in his balanced budget. Yes sir, the40 million dollars I think is to help us with our salaries from the increases with the pape plan, the majority of which were security and then I think5 to address the medical contract and
we'll utilize medical sanctions for the rest of it you mentioned celery increases in that46 million when we changed the compensation plan last time did you estimate out in front of you four or five years of what your cost would be or is this just every year' situation wellpresentative I don't go that far out
Speaker 415
2:22:32
I I really work on bienniums bienniums in fiscal years so I try to stay
Representative R. Scott Richardson
Unverified
2:22:38
within the biennium. we keep in
contact with DF andA and work closely with them on our numbers so they know our numbers just as well as we do. if anything comes up and a red flag comes up we have those discussions and we try to find solutions at that time
Representative Jim Wooten
Unverified
2:22:52
all right thank you thank you Mr Chairman. right thank you
Senator Jonathan Dismang
Unverified
2:22:55
members I think that wraps up questions on the division of correction what's the will of the committee we've got a motion for exec rec we've got a second any discussion on the motion seeing none all those in favor signify by saying aye all those opposed motion carries we're gonna move to community correction
Dalton Coleman
Unverified
2:23:16
thank you Mr chairir on page 32 you'll see the breakdown of the appropriations for the division of communityorrection some quick totals fiscal year 26 authorized for the division of communityityorrection is around $142 million and the fiscal year 27 recommendation is just over $93 million and Mr Chairman those changes are what we just talked about with the division of correction they're just those transfers out for the for those programs that we mentioned before so residents cash treasury goes from about3.6 million dollars to $0 and community corrections state
appropriation goes from $123 million to about78 million dollars those are all related to to the transfers to the division of correction haven't answered questions all right thank you members
Senator Jonathan Dismang
Unverified
2:23:56
do we have any questions on pages34 through right seeing no questions what's the will
of the committee we've got a motion for executive rec we've got a second any discussion on the motion seeing none all those in
favor signify by saying aye all those opposed motion carries postpri transfer board thank you Mr chairir. so the
Dalton Coleman
Unverified
2:24:19
fiscal year 26 authorized amount for the postrison transfer board is around $2.4 million the recommendation for fiscal year 27 is right about the same there are no significant changes to the postrison transfersfer board. I'm happy to answer any questions. thank you members do you have any questions on the post
Senator Jonathan Dismang
Unverified
2:24:32
prison transfer board that's page44. all right seeing no questions what's the will
of the committee? we've got a motion to adopt executive rec. we've got a second in discussion on the motion seeing none all those in favor signify by saying aye all those opposed motion carries correction department sentencing.
Dalton Coleman
Unverified
2:24:50
thank you Mr Chair our total cost for or sorry total authorized amount for fiscal year 26 for the sentencing commission is475,757 dollars. That amount is the exact same for the fiscal year 27 recommendation there are no significant changes. I'm happy to answer any questions you've got right thank you members if we have any
Senator Jonathan Dismang
Unverified
2:25:08
questions on correction department sentencing page47. seeing none what's the will of the committee we've got a motion to
adopt executive rec. we've got a second in discussion on the motion seeing none all those in favor
signify by saying aye all those opposed motion carries members as promised if you have questions that were not part of the appropriation process that we went through go ahead and hit your mic and you'll be welcome to answer or ask those any other questions for department of corrections that would have been outside of what we covered earlier. all right seeing no questions thank you all very much. I think we need ky yeah Smarnhill I think we're it's your time we're gonna move on to
section H we'll do these one at a time and with that if you could just recognize yourself
for the committee provide a brief explanation and then we'll open up for questions and again we'll doh1
thenh2 thenh3. yes sirate barnhill with the office of personnel
Speaker 357
2:26:16
man I'm leslie Fiskin umm secretary of sorry, shared administrativeervis.
one is letter letters that we have submitted to the committee that reflect actions that the departments have taken so far this fiscal years these are all positions that have been approved by the personnel committee and reviewed by legislative council we're taking this action so their appropriation bills can be updated accordingly. thank you members any questions on H1? all
Senator Jonathan Dismang
Unverified
2:26:48
right seeing no questions we need a motion to adopt we've got a motion we have a second we got a second in discussion on
the motion seeing none all those in favor signify by saying aye all those opposed motion carries
Speaker 357
2:27:08
H H2 reflexs pool positions that have been approved for the various departments throughout this fiscal year up to date again all these actions have been approved by personnel committee and the legislative council again this will update the appropriation bill so they can be drawn up accordingly. right perfect. Members do we have any questions on H2? seeing no
Senator Jonathan Dismang
Unverified
2:27:25
questions what's the will of the committee, I got a
motion to adopt I've got a second in discussion on the motion seeing none all those in favor signify by saying aye all those opposed motion
Speaker 357
2:27:43
carriesh3. is part of the Arkansas forward initiative for the centralization of some of the services shared services for departments these reflect positions that have been transferred from the various departments to the office of personnel Management the office of state Technology and the office of state procurement
Senator Jonathan Dismang
Unverified
2:28:02
thank you members to any questions on H3 I think I'm there yeah H3 all right
seeing no questions what's the will of the committee we've got a motion to adopt. we've got a second in discussion on the motion seeing none all those
in favor sign enough out be saying aye all those opposed motion carries thank you very much members we're gonna be back here tomorrow morning it's gonna be my co-chair's turn thankfully he's gonna cover DHS public school fund public safety
and department of health is there any others that was it that was
Unknown speaker
2:28:33
it with that we're adjourned we'll see you tomorrow at 9 a.m.
Agenda
A. Call to Order
B. Consideration of JBC Rules
C. Executive Balanced Budget for Fiscal Year 2027 Presentation
D. Institutions of Higher Education Overview
E. Division of Higher Education
F. Summary of Institutions of Higher Education Budget Requests for FY2027
G. Department of Corrections
H. Reports and Communications
I. Other Business
J. Adjournment
Documents
Speakers
Speaker 2
Senator Jonathan Dismang
Unverified
Senator Jimmy Hickey, Jr
Unverified
Speaker 12
Speaker 30
Speaker 31
Speaker 33
Speaker 38
Representative Johnny Rye
Unverified
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Representative Jim Wooten
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Speaker 56
Representative John P. Carr
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Senator Breanne Davis
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Speaker 76
Speaker 36
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Representative Andrew Collins
Unverified
Senator Clarke Tucker
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Speaker 99
Senator Missy Irvin
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Speaker 113
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Nick Fuller
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Representative Marcus E. Richmond
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Speaker 137
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Representative Tippi McCullough
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Representative Denise Garner
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Representative R. Scott Richardson
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Senator Stephanie Flowers
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Chair
Unverified
Representative Brit McKenzie
Unverified
Speaker 283
Senator Ricky Hill
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Senator Bart Hester
Unverified
Speaker 291
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Representative Matthew J. Shepherd
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Senator Joshua Bryant
Unverified
Speaker 357
Dalton Coleman
Unverified
Speaker 369
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Senator Tyler Dees
Unverified
Speaker 378
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Representative Howard M. Beaty, Jr.
Unverified
Speaker 415