ALC-JBC Budget Hearings

Members we're going to start at our department of ag and they do have an audit finding this time you're recognized. Thank you Mr chair of the audit found we have for their part of agriculture was from their FY twenty one report. In the finding is that the Department agriculture did not adequately monitor also recipients for the Arkansas meat and poultry processing grant program. We reviewed expenditure telling seven point eight million dollars for sixteen of thirty one server sipping to that program who received funding eleven of them did not submit adequate documentation to the department to prove the proper cost share been achieved in addition to several statements made payments totaling over three hundred forty three thousand dollars to related parties to other separate cities also purchase real estate telling over three hundred seventy six thousand dollars all the real estate was not listed as an eligible expense in valley one separate sippin submitted a ten thousand dollar invoice for equipment they did not contain sufficient detail to verify the eligibility to expense Mr chairman that concludes the finding. Sir just field you're recognized are any of these repeat findings Mr. A no ma'am this is not a repeat finding our thank you and and we can find the response. Yes it should be on the bottom. Thank you so much. The reason this wouldn't been a repeat finding this is a new program correct time that's correct thank you. Represent Springer you're recognized good morning it other members of the department here. From Agra yeah we we had got to that part yeah okay did you questions now are only for audit. All okay so they can answer all the questions and then once they come up okay thank you. So with that are recognized miss Kathy and I will go ahead bring department at a table and grade now hear their budget. Thank you Mr chairman Kathy Schmidt bureau of legislative research I'll be presenting AG rise budget request and information today it's in your budget manual in front of you under week four we're going to start on page three eighty six we're starting with the department of agriculture their administration and shared services on the first page three eighty six you see unemployment summary for this portion of the agency and then on page three eighty seven three eighty eight are the actual request being made this is the appropriation which provides for the personal services operating expenses for the cabinet level staff and shared services for the department it is a combination of a mix of revenue sources and they receive funding from the different divisions utilizing shared services the agency is requesting the following changes they requested an additional four positions they're also asking for a transfer of two positions and we'll see that later on they're coming from of operations in the agro department and they're also coming from natural resources later on they're asking for some other salary and a personal services matching for positions and upgrades they are also asking for an additional increase of two hundred fifty thousand dollars in appropriation for operating expense and we will see this not only on this appropriation but some other appropriations throughout the agency and they note the rising fuel costs and vehicle maintenance costs as a need for these increases they are also asking for restoration of their capital outlay two hundred thousand dollars and that will be to replace vehicles the agency request is for the request except the age the executive recommendation is for the agency request except for the positions and the re classifications they are allowing for. The transfer of the two positions from Agra and natural resources but the other position changes they're waiting for a new administration to make those changes then on page three eighty eight we'll see how that plays out on their line items we're going on to the department of agriculture on page three ninety you'll see the that there are thirty appropriations in this portion of the agency we're going to be looking at twelve of these that have changes. Then on page three ninety one you'll see the sources of revenue for Act where I the first appropriation with changes on page three ninety two this is the operations and this part of the appropriation supports the administrative operations of the department the office of the Secretary the forestry commission the State Plant Board and livestock and poultry this appropriation is funded by general revenues they are requesting restoration of a federal grant position transferable in position into shared servers services this is the one I mentioned earlier and then some various personnel changes the executive recommendation provides for the agency request except for those on those personnel changes in re classifications which are being held for later. Next is the. Appropriation on page three ninety four three ninety five this is livestock and poultry animal disease control in a ratification program this appropriation is funded from the fee per head of cattle sold in the state as well as fines and penalties an arrest made the federal funding comes from the US department of Agra and the plant health inspection services and that Neri Services of the request that they're making on this appropriation or an increase in operating expenses again of fifty thousand dollars for increased cost operating cost and restorations of a hundred twenty thousand dollars in capital outlay for equipment and emergency response equipment the executive recommendation provides for that request the next one is the egg grading program will see that one on three ninety six and three ninety seven this supports the poultry and a grading program it's funded from egg and poultry grading and inspection fees the agency is requesting fifty thousand dollars increase in operating expenses again for additional operating costs and then they are requesting increase in the line item called refunds reimbursements of five hundred seventy five thousand dollars each year to cover the twenty percent federal share of the grading services revenue collected by the department and restoration of their capital outlay in hundred thousand dollars to replace office equipment for egg and poultry grading staff the executive recommendation provides for that request. The next appropriation final three ninety eight with changes is the agro laboratory testing this one is used to provide that diagnostic lab testing services for all species of livestock and poultry and it consisted of fees charged for diagnostic services that are performed the agency is requesting some salary and match of changes due to various personnel changes they're requesting additional operating expense of fifty thousand dollars for increased operating costs restoration of capital outlay three hundred ten thousand dollars to replace outdated and inferior lab equipment and testing equipment as well as the new equipment to keep up with the growth of poultry in Arkansas the executive recommendation provides for the agency request except for those personnel reclassification Singh changes. Next is on page four hundred and four oh one this is the livestock and coke what a poultry EC one infectious anemia of appropriation for a program that controls the spread of anemia in the horse family and they oversee testing of horses and measure ways to quarantine animals that test positive for the disease it's funded by special revenues derived from fees that are assessed the changes they requesting on this is increase in operating expense of fifty thousand dollars and an increase or restoration of their capital outlay of a hundred thousand dollars and that's to replace office equipment used for the program the agency request is up what the executive is recommending will go to page four oh two This Is livestock and poultry animal health this one is funded by federal funds is used to increase the level of protection preparedness and response and recovery should a foreign animal disease enter the state. they are the only asking for various personnel changes which the executive recommendation of. Provides for of of holding those in for the new administration to make and review and recommend Dacians on on page four oh four four oh five is the plant board's administration pest control is funded by special revenues derived from the registration in inspection pay the fees from various farm crops pesticides feeds fertilizers seeds and soils and various sections from other funding federal funds from the US department Agra and the environmental protection agency the agency request some personnel changes and title changes as well as the increase in operating expenses or the increased costs that's two hundred fifty thousand each year and restoration of capital outlay eight hundred eighty five thousand each year to replace aging vehicles and upgrading whether equipment executive recommendation provides for the change in the operating capital outlay. We're gonna move over now to that was of. Its control we're gonna move over to. Page four oh eight. This is of four oh eight four oh nine is the plant board's pest surveillance used to monitor the application selling handling of pesticides is funded by special revenues the agency requesting three additional positions the executive recommendation holes that recommendation for later with the exception of of and allow the new administration to review and recommend there are no changes on the next one will skip over to page four twelve. This is the I. and agro product marketing program and this is the program that supports the promotion and enhancement of the agriculture industry and its products funding consist of specially block grants of from USDA it enables the agency to utilize federal funding in a variety of projects those are seen on page four twelve they are asking for an increase in extra help of. Due to of an increase from miscellaneous federal grant and they are eliminating the line item for the feral hog handbook thirty five thousand dollars the X. negative recommendation provides for that request. Move over to. Page four eighteen and for nineteen this is the forestry operations of this supports the staffing and general operations of the forestry commission and its funding consists of special revenues from timber timber severance tax buyer protection tax the revenue from the USDA and Forest Service grants the changes they're requesting on this is various personnel changes they're also requesting again the increase in operating expenses of two hundred and fifty thousand dollars each year they are asking for an increase in district office replacement of three three hundred thousand dollars out due to rising cost of lumber and building costs this is for their new Clarksville office and restoration of capital outlay one million six hundred sixty three thousand dollars for replacement of their transportation fleet to pick up trucks transport trucks and bulldozers the executive recommendation provides for the agency request except for the right we classifications. And then on page four twenty one in four twenty two this is the forestry rule community fire protection federal program on this when they're requesting this is for employee federal funds with state and local matches to assist volunteer fire departments and communities with the equipment purchases and upgrades and on this they're asking for restoration of capital outlay of a hundred eighty five thousand dollars for the cooperative lands fire management grant a question the agency about that since it refers to a grant but they actually are allowed by this grant to purchase equipment quite capital equipment bulldozers and things so that is the request on that the executive provides for the agency request and for Agra there are no other changes on any of the other appropriations at this time. Representative Springer you can now ask your question. Good morning thank you Mr chair and I can ask my questions with respect to the audit findings correct yes ma'am okay. So this involves the Arkansas meat and poultry processing grant program my question first question I have several first question. How many persons within that program operate in that particular department how many people do we have there to. Administer the grant program. Yes ma'am westward from the Arkansas department of agriculture and if if I may just give a little bit a quick background on that and so that was cares Act funding maintained Arkansas one time funding there and early marriage and dealing with the corona virus or you shortages of grocery stores of meat meeting protein products and so we were approached by industry farm bureau cattlemen's about doing a a processing grant increase processing capacity in Arkansas to help address some of those shortages that the revenue instrument cross of our specially financial bases of it so there's extent committee we have propose they went to them for five million dollars and ultimately put an application application process and went back to legislature and ask for the carers act as well as the full legislature asking for ten point four million dollars so to answer the specific question of how many people were involved it was it was kind of a I would say all hands on deck from the entire department but myself our last song Boettcher director or CFO some poultry division as well as industry partners that participated as part of a review committee and looking at those applications so that was farm bureau cattlemen's university USDA hunters the memory we had several folks that participate in and reviewing those applications but as far as a full time staff which is several I don't have an exact number but with there were several of a separate dissipated in it mostly because it was just a one time funding very short time period I was your October sixteenth when we got the full ten point four million dollars was approved they had attorney receives by November thirtieth we had a Smith there's by December fifteenth the service very very short time period and and trying to turn that grant program but it but it was one time that ended after that so do you agree with the findings that that are here that something happened so can you explain to us what happened to cause the one million dollar overpayment yes ma'am I answer. Certainly I wouldn't disagree with audit and that we could have a person things differently I I would respectfully disagree with a little bit with audit findings and that we over paid by a million dollars because that that was a specific request the legislature that the legislature approved a specific dollar amount based off of of a of a review committee and looking at that and so I think there was there was uh a little bit of disagreement in respect but I don't mean to say this **** retort audit but the the way some of the guidelines were read and was sent we could've wrote that a little bit clearer because it said up to ninety percent of eligible expenses which is which is what the review committee but that you know we we received all the applications applications were significantly over that ten point four million and what we what we funded and what the legislature approved funding was about what came out to about ninety percent of what they had submitted in the application so we didn't over promise just we could if we could have clarified that language in the guy wants to make make that more clear but and what what what what for was this what was their language that was approved by some committee of some sub committee of the legislature did you all come up with the links to and and and I would have to go back and look at the merits but we so when we originally went to the cares Exterran committee to have legislative members on it then it went to the House and Senate ag committee for review of the program and then after the care sexier committee approved the funding Bennett came over to peer for appropriation in full L. C. for for approval I would have to go back and look to see if if the legislature looked at the guidelines that we use that I know that we talked about The Dallas I don't know if the legislature actually saw a physical copy of of what we sent out to the public or not our service so to that extent we we would agree with audit there were there were things that we could have we could have done better been more clear about and unfortunately just because of the short time period of trying to turn that funding or. Al that's what I would try to make excuses but that your eyes out we would have we would have specified that a lot a lot better final question are you aware of that is there any liability the state for this overpayment or is that is this just something that you all need it and there's no. Consequences as well as return of funds to the federal government or anything of that nature right no ma'am there there's not and we've had some conversations with the with the Department fights ministration as well as the consultants that were used on on the cares act I think there's been some enquiries to two US treasury on you know those sort of questions you're all mad on that aspect and and so at the same time we're also to continue even though that grant is over we're still very much involved in the meat and poultry processing portion of self to include or or new statement inspection program that the legislature approved and so that the people that receive funding we're and pretty constant communication with on just making sure that they're they're moving forward on the funding that they received and hopefully we'll have a constitutional process capacity for the state of Arkansas which is what the intended programs for. Mister chair I have a question about their appropriation do I need to get back into the queue for that the student okay thank you. Representative make sure recognized thank Mr this is just quick question staff may be able to answer this on page three eighty eight and the shared services paying account I'm looking at their fund balance is four hundred dollars out of a looks like it's almost a ten million dollar budget we only have four hundred dollars in that fund is that something that we need to be concerned about. no Sir I would say that is a that shared services where they will transfer monies from other divisions to pay for those and they normally don't see of a fund balances carried forward insured service so I wouldn't see that as a red flag Sir okay so this is up where we're just transfer of a fund to allow for transfer of funds yes Sir okay all right thank you that was my question. Senator Hammer. Thank you Mr could you of is on page four twenty two as far as the of funding that was referenced for volunteer fire departments. Is that where you where you referenced it. So I hope I mentioned the question we can certainly have Joe fox come up if if we need to be more specific but that one that one I believe is more specific to the wildfire suppression to its that we that we distribute to volunteer fire departments but it's not it's not specific voluntary but not direct assistance from the volunteer fire departments on this funding it's specific to you water suppression test of a plow for the redistricting okay is that is that the only thing that send us in all your funding for the role volunteer fire departments up caught a bit of that a minute ago or was there another area that you referenced. So we work very closely with the with the fire department I'll let Joe answer that more specific I don't I don't want a mistake that. Yeah. Mr. And The the hundred eighty five thousand representive Hammer Senator Hammer skews me no problem. ordered this is strictly the federal grant portion of what we do for rural fire departments in it is a specific grant that that that we do with about thirty fire departments each year they apply to us and they get somewhere in the neighborhood of three thousand dollars worth of equipment like personal protective equipment leaf blowers that sort of thing we do many other things four fire departments but they're not on that on that particular account okay so the I guess the overall last question would be is there any additional funding increases in your budget or Department backed budget that is specifically directed toward role volunteer fire department. There's one there's a fifty thousand dollar increase I'm not looking at the right page. And it's a it's a transfer and is it will go to rural fire departments ultimately yes okay our thank you thing Mr. Mr fox while you're at the table I was on fire a couple weeks ago and now. I does a broke down in the middle of fire sobs talking to the Forster folks that were out there and. They expressed a lot of concern to me that our does our fleet is getting old and and we went through this about ten years ago I actually personally had does on that fires will in our nose or cut a line around the broke down does or in at the age of the fire line is very concerning to me that we have staff out there on those that are not reliable do we have a plan in place to replace some of these those are sure to get a a newer fleet in place as we just went through on the dry seasons we've seen in a long time we're very blessed not to have as many big fires as we did. But we could be looking at that year after year so what our plans. Thank you representative well our our plan is to replace about seven does yours and trucks each year and it really so we've got twenty one does your unit says the truck and the does or that are fifteen to nineteen years old we have twenty five that are twenty years old and older so that's forty six out of a hundred and ten does is in our fleet those soldiers are safe we'll when you run a quick made as you know you're going to have break downs that doesn't we we make sure that we're safe we have radios and we know where people are and that sort of thing so safety my mind is not an issue but equipment maintenance is and it's now there's two problems one is supply chain we got no does is delivered to us out of a order of five we had two dozers there been order for fifteen months delivered this week this week on Monday and that's the first two we've gotten in over fifteen months not because we weren't trying have trouble transport trucks getting deliveries on them that's almost impossible under the current conditions that's one to We have a passel of dozers like I think it's fifteen or sixteen does yours that we bought in two thousand and two. From another federal grant so a big federal grant at that time so it's the age of the fleet is interesting will be the word I can use and we will use we hope some of the new federal funds that we haven't received yet from the I. J. A. infrastructure investment and jobs act and from the inflation reduction that we we intend to buy dozers and trucks out of those funds as we receive the funds will be back here asking for MF Jeez when we have something to when we have numbers that we can use and and ask but we intend to to work heavy on our dozers and transport trucks and pickup trucks. Thank you and some of that was expressed to me as well about the delivery of the does your senate been ordered for time spans so with that representative wouldn't you're recognized thank you Mr chairman of Mr secretary I'd like to talk a little bit about your personal email I have analytic Look the the analysts look at the Vacancies and you have a hundred vacancies in the department. Then you're asking for for new positions and I thank to transfers is that correct management. So. What what what are you asking for new when you got a hundred thank. Yes Sir a great question and answer just looking at our our most current numbers there were as of this week we're at five hundred seventy two field positions and and we've got an additional about thirty over thirty better being advertised about six hundred eighteen that we're trying to trying to get filled so you so you're right there is there is a little bit of a gap between what we have what we're asking and so that that was part of what we've been working on with OPM we we've got some positions that are either too low graded and that we're trying to why not just use what you've got and then if you need more come back please or and and it's in the the short answer is that some of those positions are are not appropriate for what we're trying to get them to do transfer yes well I'm that's okay great whatever yes Sir and that's that's without having to add new position I'm and that's what we're trying to work on with OPM so last year we gave up we gave up fourteen positions and and I think we requested seven and returns are trying trying to get the positions that we can't use that are inappropriate greater titled swapping those for the positions that we need to do specific jobs but but you're you're you're asking great questions are we we agree with you completely and it's it's been an ongoing process to make sure we've got the right personnel to do the job they were asking them to do I'd also home page Three eighty nine. Employee's summary shows four hundred and seventy five employees. Okay. Go over the page three ninety. Shows five hundred fourteen actual employees we have we we've we've gone through this with several departments and I know that these numbers are it points in time. With the sixty four difference between five forty nine and the. Or for seventy five and five fourteen and then your authorized. Your authorized five hundred and forty. But when you look at the vacant positions if you have four seventy five and you had seventy four vacant positions and and the Department of act the question five four nine that's nine over the authorized funding for. If you puts seventy four on the five fourteen number. With your individual bodies at which is five eighty eight so let would you forty eight a and if you look at authorized you take seventy four way you only have four hundred sixty six would you say you got four hundred seventy five people. So there are some discrepancies in all these numbers. That is when we see that were sent in this endeavor agency. Some of the got to be some clarification somewhere. Hello well we don't we don't know whether you're forty eight positions over over your five forty. Or or or you know a or five forty nine your line over there. So how many people do you have. I would the I would agree with you Sir that these numbers are very confusing and and I'll be more than happy to share the the list that we go off of it every week we we print this off we share with our division director so that we know who we've got what positions are open what does this. So we have right right now as of as of Monday five hundred seventy two of positions that are filled Hendren twenty three extra help positions hundred seventy two that are filled Kerrville yes Sir would you also at five forty. Yes Sir so I so I think that I think maybe this is the this number we're using is a combination of of agriculture natural resources so we're looking at two right thanks separate fund accounts by this breaks breaks that out several this is this this is just all of the apartment back then I'm talking where an initial we have a lot of other forty authorized you sent your term as you go five seventy to yes Sir so I and I think that's be so natural resources is part of the department of agriculture but I think for budgeting purposes and previous appropriation bills part of transformation everything was. Separated out which makes it hard to follow the person was determined I've got a couple more questions you want to get back in the queue are at school now yes the representative we can just get back in the queue thank you thank you a representative Vic you're recognized. Thank you Mr. I have a quick question on page four nineteen. So it has to do with the district office replacement and there there may be a good reason for this you it increased from three hundred thousand dollars to six thousand dollars and what it did the thing that. Sort of flag that a little bit pole means we just got to talk about some education thing so we just ran through some of these numbers as far as building increased costs and stuff like that that's that's a doubling and we didn't see that in the other the. All right I'll reason our repair regional idea and what we thought it would cost which three or four years old was three hundred thousand dollars we quickly realized that we were way low with our estimation of what will cause it didn't actually double we miss the we miss the estimation of what it would cost for a thirty five hundred square foot office District office and and that's that's why it's higher the actual fact is that that number has come down since we've we've gotten a very recent bid on this office it slightly under six hundred thousand dollars. Thank you. Representative Springer you're recognized. Thank you Mr hello again I'm over here and I appreciate the questions asked by representative who and I want to follow up again I'm on page three eighty nine Page three ninety and I'm specifically looking at the numbers and the break down on this particular page between white employees black employees than others and I want to go I'm just looking at the numbers and I'm I'm of concern with those numbers so I'm going to page three ninety and I'm looking under the first item first line item appropriation. At department operations and there are two hundred and twelve positions I would like to know what of those positions can you describe what kind of job classifications position names one of those the twelve hundred positions there in the end if you can give me some examples then tell me what are the qualifications for those positions. And the third question who makes up those positions by race and gender if you if you have that information. News chief fiscal officer. So you looking at the on page three eighty nine. I'm looking at page three ninety the first line for talks about your positions the first line item operations at department operations you have two hundred and twelve positions so. Who are the people. Position titles of the persons that make up that two hundred and twelve what what what kind of positions are they supposed to be a combination of several positions cannot yes force to a GS twelve position all right address inspectors division managers some fiscal of program managers as well okay so tell me the qualifications for those positions who make one of the quotes of his for instance the inspector what what what what the qualifications for a person to be hired as an expectant. I would have to defer to the Division senators the hermitage okay so the sold I just cut to the chase the reason why I'm asking these questions is because you you only have four percent black people that work within agro this department and so I'm trying to figure out what are the qualifications for you to be able to work in this department when you only have a full full on page three eighty nine out of four hundred and seventy five employees you only have seventeen that are African American and then you have twelve the of all the minority so I'm trying to see is there something going on to keep the black people and other minorities from holding these positions. So that it did so that leads me to believe one of the qualifications in order for a person to be an expected to be a manager to be in the physical plant wherever it is all those positions the over twelve hundred animals positions so why is that that of people of color can't hold those positions. I don't think it's a matter that they can't hold the positions we we would love for them to you you know certainly our positions are open to anyone that of that applies into the best qualified applicant and your and we do a lot of out reach we've we've got a specific a specific position within the department of its minority outreach and so we we do participate in job fairs and career prayers answer trying to just help advertise about the positions you have I think we struggle overall to find people that don't want to have positions and agriculture so I don't I don't think it's necessarily a minority issue but but we're try we would we would love to have more of my own minority representation across the board and we try very hard to to have unequal representation across the board what we're got regards weather's within force for your life soccer plan industries or within your fiscal staff shared services within the department itself but but it's it's you are or position qualifications or or review by OPM the standard across the board and we'd be happy to share any of those I would like to see that because I'm aware of that the University of Arkansas at pine bluff they have agricultural majors there so I know that there are on that there's a pool right there for you to we look into yes ma'am and then you say you have that I'm sorry I missed Mr fought one last question and I'll get back in the queue you say now you have one hundred vacancies that are that you're trying to feel so that but my question goes back to the original question one of those one hundred vacancies that you're trying to feel. Yes ma'am answer we could we could share the the list of positions that are being advertised and and we would love to do additional please do I would like to see that list thank you ma'am. Representable you're recognized. Thank you Mr chairman of first will own home page four seventeen. there's a million dollars in the scholarship fund but you only use twenty thousand dollars last year so I've got two questions one I come used I come we just pulled up I was at one scholarship per to or and then we're is that million dollars invest. Yes Sir and. To make sure I'm looking at the the right page here server that's correct and that the there's only a five thousand dollar scholarship so you could for last year we gave for Sir yes Sir and and that's something that we were actually we've got a proposal that we've just recently presented to to the governor's office I'm trying to make some corrections to this that the reason why that one million dollar appropriation this is mentioned there is because when I go back to when we were first doing what I can but in the legislature approved a twenty five thousand dollar penalty for for intentional misuse of the the camber products there was a question of of if we get this large influx of the camera penalties what would we do with that and it would go toward scholarships and so so that's that's with the scholarships are paid from civil penalties we thought there might be a big influx of so civil penalties related to the camera that number was increased we haven't we haven't seen that large influx but that that's what a number so large I was to account for that possibility but we we are anticipating having a proposal during the legislative session the really to try to clean up some of the scholarship funding and and make sure that it's more appropriate and and addressing the needs across the state well you've come up the money part of it or the number you're giving or survive it I think it could be both depending on the desire of the legislature of don't want to wanted us to increase that number as far as the amount of scholarships that are given so we we have these for that are specific to the universities and we have the forestry scholarship Ross looking a bit better Neri and scholarship as well but that's something we we hope to present to you all in the session on your what which are like for this sort of program to look like based off the amount of funding that's there the club of a muddy of. you you have a lot of fun ballots are due to significant amount of money. Where do you record your interest where is your answer shall. Yes Sir so we we do have a we've we've got the number of the interest that we've collected off of those accounts and I cannot The New certified correct any discrepancies that I stayed so but but one of theirs for business zero four hundred was about ninety nine hundred dollars an interest that we collected over the last fiscal year and then what we're using that fund or is it shall I am I am and how much it's a nine thousand nine hundred sixty one dollars and forty five cents where is that shall. Appropriation and forty five DO a it will be in the appropriation and forty five. In your package welcome it'll show is a funding source. A we're gonna get back to you that's right I don't think that it does show it as a funding source so I I think you're your point is well made is that it does doesn't documentation low income comes into your agents. And also one more Page four forty two. And paid twelve oh four four forty two is in the department that deals with feral hog eradication and then you've got another page five oh for natural resources what what's the difference in the two programs. Yes Sir so so really at this point hold on we haven't made it to follow for yet so before we go to that question let's get through the next section representative would well as the it is time to understand when we get through the next section I'll let you come back to that moment thank you. Senator Hammer you're recognized. Thank you Mr couple of a couple quick questions West hello you've been Director per secretary. Start in March of two thousand fifteen term. Ever had a discrimination lawsuit brought against you or your agency because of your hiring practices not that I'm aware of no Sir okay then the second thing is on page four nineteen. under shared service transfer is that an internal transfer or is that over to the shared services agency. On four nineteen. We are for sure operations special. Sure service to transfer. Yes Sir I believe that that's great from understanding the question correctly that that would be forced risk for some of a shared service so that so that accounts for fiscal H. or legal sign all of them in another state if I read it right that is going up or that you're question appropriation to increase moving forward. Yes Sir Mr that is an increase their means okay Real quick do you have what what why is it going up. Senator hammer so this is the cover the increase in our operating cost I'm I'm sorry I didn't understand you I'm sorry. The increase is the cover an increase in our operating costs. So we do projects You're you're real close that microphone. So it increases to reflect the increase in our projected costs Department wide. Okay of visit offline with you but about the driving up of cost thank you thank you. Senate just feel you're recognized yes I was gonna move executive rank but a number of people upset that they're in the queue is occurring. Problem. Okay I move executive ranks second I have a second do you have any discussion on the motion I just wanna say one thing this year because we don't have lawsuits pending against this does not mean we can't do a better job of hiring minorities because nobody's working there nobody's going to sue you. And I think we need to make that clear thank you so much with that I'd appreciate a good vote. Dotson D. of discussion. Not questions but all. Yes see others bogus. Okay. With a motion and a second all those in favor say aye. All opposed. Hi seven so with that we'll move on to section three three six miss Kathy Smith you're recognized. Thank you Mr chairman the foresters registration is on page four fifty. Three through four fifty five this is for regulating foresters registered in the state there are no changes to this is a forty six thousand dollars appropriation each year and L. as you suggested moving on to number for the veterinary medical board that is beginning on page four fifty six. And then on page four fifty seven and four fifty eight you see the appropriation it's responsible for determining the qualifications of applicants for a license to practice general that Neri medicine our specialty areas this is funded by special revenues from of fees that are charged to member constituents they are requesting an increase in professional fees of ten thousand dollars each year for being able to contract out complaint services in talking with them they need to be able to contract with board with vets who are not currently on the board at of the agency and so this would allow them to do that and moving on now to natural resources that one is going to start on page. Four fifty nine Natural resources the the description of their apartment department summary is on page four sixty and for sixty one you'll know that they have twenty two appropriations I'm going to go over changes in twelve of them starting with the appropriation on page. Four sixty four and four sixty five this is the dam inventory appropriation it's used to conduct periodic inspections and they also maintain a database of information it's federally funded they are requesting a restoration of ten thousand dollars in capital outlay to replace existing equipment they're also asking for an increase of fifty thousand dollars each year in their professional of these line item they know that this would be to contract with engineers for doing those inspections number the next appropriation with the changes on page four sixty six water waste disposal and pollution of basement they are requesting reclassification and on this the exactly provide for the agency request with the exception of the request occasion an associate a pro up appropriation for that placing that on hold for the new administration. On page four sixty eight is natural resources commission operations this one is the transfer of one position to the shared services mentioned that earlier on that there were two positions being transferred in from Agra and from natural resources this is that natural resources position a reclassification of one position and then reallocation of from the research project line item to grants and aid they had a thousand eight hundred eighty two dollars in research project and they're just moving it up to their grants and aid to use in that line item the executive provides for the agency request except for the reclassification request moving on to. Page four seventy two as the next appropriation with the changes as the flood insurance program is funded entirely by federal revenues it provides community flood insurance assistance program and provides funding to Arkansas geographic information office they are requesting an increasing grants in aid of a little over two million dollars each year this is to account for some additional federal grant funding that they are expecting to receive and to distribute to communities and then restoration of their capital outlay twenty five thousand dollars and that would be for repair equipment replacement The executive recommendation is the agency request there's no changes on the next you were going to skip over now to Page. Four seventy nine and four eighty this is the roll fire protection program of provides assistance rule communities to develop rural water impoundments and improve firefighting capabilities and they're moving this to the Agra area Page four forty six so you'll see this appropriation so that on this one they're decreasing that because they're moving it to again to pay for forty six is where we seen this already. Next is the appropriation natural resources commission cash we're gonna see that on page four eighty three and four eighty four this provides for the safe drinking water program and water grants program it provides administration for the safe drinking water and projects that are funded through activities of Arkansas development finance authority it is cash for maintenance and support of the program that changes their requesting reclassification of positions and restoration of capital out late and of two hundred twenty five thousand dollars each year to replace vehicles and equipment the executive recommendation plus provides for the agency request except for the re classifications and associated appropriation with that. I moving on now to on page four eighty seven and four eighty nine this was the washer river water waste project and on this appropriation they note of that this is being transferred or moved to the parks agency so that took place in parks earlier. Moving on to Page four ninety one and ninety two this is the appropriation for conservation district Clark's insurance the conservation district Clark's employees are able to participate in the state employee group health insurance program and this appropriation provides the state matching portion of for their health insurance premiums and it's funded by general revenue they are asking for the increase in personal services matching to account for increases in AB de payments that's ninety six thousand dollars there AT positions that are covered by this appropriation that executive provides for that agency request. On page four ninety five and four ninety six this is the non point source pollution control it's federal program it in conducting US environmental protection agency section three nineteen grant program to fund non point source pollution management strategies the request on this from the agency is restoration of capital outlay fifty thousand dollars to replace equipment for water quality projects the executive recommendation is for that agency request. On page four ninety nine in four feet skews me for ninety nine five hundred of this is the water use program and on this one the they recently completed an update to the Arkansas water plan and one of the priorities identified in the update was the need for reliable water use data so this is is federally funded and on this one they're decreasing all line items because they're moving it to water use data reporting so you'll notice on page five hundred all of the individual line items are being consolidated down to the water use Data reporting. On page five oh one in five oh two is the conservation technical assistance this includes oversight of the seventy five conservation districts and they are requesting a restoration of forty thousand dollars in capital outlay replace existing equipment and the executive provides for that request the feral hog eradication programme was found five oh three and five oh four on this one they Are requesting to move this to Agra so we saw this on page four forty two earlier when I presented the Department of Agra's budget then. I believe that's all the changes in natural resources but I would like to go back and pick up sole coclass of fires that one you'll find on page. Five oh seven. this is the registration board for professional soul classifiers their primary duty is to regulate the profession of soul classifiers they are asking for no change in this appropriations one thousand two hundred ninety six dollars a year and those are the changes today for agriculture. Representative Dotson you're recognized our center Dotson I guess. Not yet. thank you Mr chair I have a few questions here If if might. Go to page four twenty six. And State a quick a question on how many loans. Yes actually use out of this fund. All those loans are a real fire departments or no interest loans three years and we've never had a default on those loans by the way but there to rule fire departments the. The third which is ten. It was a question how many how many loans how many loans that we have out the limit for them I I don't I can get you the answer the correct answer I don't have it off top of my head but the limit the maximum loan is fifteen thousand dollars fifteen K. is the Max okay. And on page four thirty eight. You have a question on this particular appropriation The It looking back over your ten year history it looks like you used ninety three dollars. Ten years ago and you haven't used any funds out of this since then what. What is this appropriation really needed what what's the. Purpose of this particular preparation. Hello Sir I will try to answer that question the nurse may have to correct. Many mistakes Sir this this appropriation is tied to fertilizer lime tonnage fees so we collect that funding and then we transfer that funding to the university of Arkansas division of agriculture okay so it's just a transfer fund it's not the expenditure in here is. Maybe a fluke one white was there ten years ago okay all right and then on page. Four fifty eight. You have a a. Relatively large fund balance in this I know there's been a lot of discussion about fund balances throughout this budget hearing session and I mean it's. Seven or eight years I guess worth fund balance will. Care to speak to that. Yes Sir huh and then actually ties to us some earlier comments about the scholarships and the the veterinarian's issues so I I would I would say one of the topics we hear a lot about from the special animal agriculture status of the lack of large animal veterinarians a switch so there is a larger fund balance that so with the major medical examining board we had and we had actually proposed to the board of using some of that fund balance for scholarship to help address some of those specific veterinarian issues they were they were necessarily in favor of that but I at the others at the time and so we're we're working on a of a proposal that we ran by the governor's office that we we would like to see some of this fine balance use for a scholarship purpose to help address some of the veterinarian issues that's that's both large animal veterinarians for for food animal veterinary needs as well as veterinarians and roll parts of the state that may not have access is is as easily as some others would but that that's our intent to address some of the larger fund balance that we have there but would certainly that's something we would certainly present to the legislature during the a concussion. And on page four sixty seven. Basically similar questions on the fund balances that you've got there They're quite a bit larger. Then what your annual expenditures are. And not to mention the project disbursements are you anticipating dispersing. Ninety million dollars worth of. Yes Sir and so that those times alert restrict my comments here to here but you're with those are tied to the the water and wastewater projects which often or or large and expensive project so we allocate the funding but then we don't when when the decisions made by the natural resource commission we don't write them a check at the moment that you know there's different steps that they have to take service we've allocated funding funding hasn't been distributed yet okay that's what that represents. All right. Yeah Mr I've got a few more but I'll jump back in the queue if anybody's got a other questions. Represent Crawford you're recognized. Thank you Mr chair hello. I had a question on page four ninety three four ninety four. It says that this money is for grants low interest loans deferred loans my question is in my district in Portsmouth we have a consent decree has everybody in the state knows I was just wondering if this could be used toward paying some of that I think or millions of dollars that we need so I didn't know if this could go into to that project maybe even helping with what the EPA has. Put on the city of Fort Smith. I want to try to get of the summer another Christian PM sue. So we're certainly aware aware of the Fort Smith the death that's there and your what we brought some of this up a little bit during American rescue planned conversation so so we've we have within the Department some existing programs for water wastewater needs to include why what Fort Smith is dealing with another throughout the state there's about three or four different funds that we use an existing programs motor the majority of that would be for loans as opposed to some sort of grant or or principal forgiveness aspect tied to that recent approval American rescue plan about two hundred seventy million dollars that that we're working through that process and hopefully application process ends tomorrow hopefully decision will be made on December second you know just about all those water wastewater providers are aware of that so If they can't use an existing program which is mostly why or maybe they can get American rescue plan which would be grant if they can't get that there's also infrastructure investment a jobs act funding they were working on a proposed plan to submit to the EPA and so there's there's several different pots of money but to your point yeah we we we want to be helpful for Smith and another water wastewater systems across state we'd we'd love to find a way that to help them do that and I know that we've had some conversations with them but be more than happy to provide more specific information or or or whatever you need to yes if you would work with me so I can work with my city I appreciate that thank you ma'am. Representative Dotson. The. Thank you Mr chair So Page three eighty four. On The grants and aids line item there. It looks like you have quite a bit of fun balance the question is out of that appropriation. Wired wired. Not more loans being made. Or are they in like in previous. Answers are they delayed. And we're just not seeing those as actual expenditures being made in the current year. I don't think any of us have a page three eighty four enforcement sorry for eighty four dollars or forty four. If I misspoke I apologize. That grants and aid line item. Good morning Chris call pleasure director natural resources Some of that for you guess the best way to describe it is we may have some some grants in or some loans in the queue but it's based on disbursements of when the construction projects are going so we may go ahead and approve something but it's based on when they start construction and as a submit invoices to so you have other ones in the queue that you're anticipating. Using the the six million dollars in in the preparation of a course next year so so we will have projects throughout the year and then we get new projects we have a water wastewater visor you committee that meets once a month that makes recommendations to communities on where to go get funding and so we're getting new projects all the time I will say that with the American rescue plan funds some of that has slowed down a little bit because they're going to be trying to see if they qualify for those funds then they'll come back to that so this doesn't have anything to do with the DARPA funds. Excuse me Sir this isn't at all to do with arpa funds these preparation when the owners are consisting programs then if you turn the page two forty six. The question is how many loans do you oversee in this. These are all federal right. Yeah. Sir. So the loans in particular I know that there are several I'm I've got it and one of these big behemoth binders so I'll be appointed Roger copy of it but there but there are several and some of those range from smaller loans to larger learns but we would be more happy to provide a list of our okay is there is there is there maximum amount of loan value on these there's not serve as low okay. And then. You would for. Four eighty eight. Sorry. Four ninety. Which I can't read my writing there so. I'll get back in Q. if I can figure this one out thank you. Representable you're recognized. Thank you Mr chairman of. On the. Budgeted positions and you have seventy one authorized. And the you budgeting a hundred and forty nine. The House at head. Represent wouldn't what what page are you all. This is all a report from the personnel. Analysts. Represent Wooten. On the Department position summary we're looking at a total of six hundred sixty nine positions budgeted. On the six hundred and seventy two authorize is what we're showing in the US showed total department authorization of six hundred and seventy three what I'm asking about is why are you budgeting a hundred forty nine and your authorized seventy one in the natural resource so Back in two thousand twelve I believe we surrendered. Fourteen positions to get nine then turn around and did an MSG for grants manager well this is the best field unless you're like where so when you take us have to get someone that could work that out okay so when you take your total take fourteen position now and at the nine positions the weekend as a result of this surrender close those to emergencies Dobri yep to your total. Representative wouldn't. Does employee differences are the conservation district employees they're not considered state employees but we do pay their insurance so therefore there authorized but they're not budgeted positions if I'm explaining that right and Tony said he can explain that to you are offline. Okay all right well that says that that's what I was looking for the difference and why okay I'll direct your attention of related page four eighty four. You go fourteen. Eleven. Fund balance eleven million dollars your budgeted two point five. And your next but any you're requesting nine million dollars. And you only spent two point is that projects in. Progress or what is that what that's about. Is that what you said when representive done so that is the question yeah it's it's for it's for loans that we want one it is. What is your agency being short four hundred fourteen thousand dollars for shared services. And the non point pollution control program is eleven thousand five sixty budgeted but nothing was paid what what is that what is it four hundred fourteen thousand flowing to shared services. I represent would the total contribution from the natural resources is more than four hundred thousand but just for this Appropriation for twenty the four hundred thirteen this is just the cover The fiscal HR marketing at the legal cost. Going into the shared service to. To the central office. Yes or let. Yes and that's for all of the as for the whole department of natural resource for for the entire department culture yes Sir so we we share or or fiscal H. or legal for the entire department whether to realize that but the. Your trip your commute you're moving four hundred fourteen thousand dollars to use central shared services that's right. All right thank you Mr chairman. Senate just then you're recognized yes I move the executive director items three through six that is a proper motion to a second I have a second any discussion on the motion. Senator Hammer do you have discussion on the motion. All those in favor say aye aye All opposed. Hi seven. with that committee that is all of our agenda for today. Personnel's going to meet immediately all upon adjournment and we'll see you guys on Tuesday morning.