ALC-JBC Budget Hearings

All right we will hi good morning good morning good morning. All right. Okay if a call the meeting to order. As at C.. All right we're gonna go right to seeing and Mr Parrish M. year we are going to Department of an energy and environment so if they want to go ahead and come on up hi eighty. Okay. The shares were on page thirty six your manual. On page thirty six this is the department of energy environment the first sexual over shared services. The permanency of arm is a cabinet level department as a result of transformation the Department was combined from divisions and programs within the division of environmental quality Arkansas Geological Survey willing gas commission and liquefied petroleum gas board cabins provided new shared services section to eliminate duplication of services and provide efficiencies and on page thirty six the show state contracts awarded to minority owned businesses and employment summary and publications. You go to page thirty seven this is the shared services request and this section provides again sure services which pulls resources for the benefit of all divisions and programs within the department supported by paying account. On the next page is content question on page thirty nine is the appropriation summary. If you look at the bottom of the third call on the total authorized in twenty three was eight point two million three questions twenty four seven point six million that's a seven percent decrease and the second recommendation provides for that agency request looking at the change levels in each line item regular salaries and twenty three is authorized six point two million three questions twenty four is four point one million that's a thirty three percent decrease personal services match was authorized to million three questions one point four million that's a twenty nine percent decrease and this is a reallocation of positions from shared services to various divisions and programs throughout the department. Of Nicks lives operating expenses it goes from zero to one point two five million constant travel is from zero to eighty five thousand professional fees goes from zero to four hundred fifty thousand capital outlay goes from zero to two hundred fifty thousand and this is all a reallocation of skinny they're already from the solid waste management recycling program and as to allow the Department of fun cheer Services needs. Ensure that the shared services request now move to the division of environmental quality that's on page forty skews me page forty manual. This division is the primary environmental regulatory agency for the state it's responsible for including the state's environmental laws and regulations as established by the legislature and the Arkansas pollution control and ecology Commission and on this page state it shall state contracts were to minority owned businesses and employment summary and publications. Page forty one begins our department operation summary. C. N. page forty two the totals. The Division has thirty nine appropriation requests eleven have a change level if you others of only request a salary magic just want to continue into the new biennium the total authorized budget in twenty three is almost one hundred sixty four million is being authority that the Division request a hundred sixty seven million for the biennial that's a two percent increase over what was authorized there are few requests for increases but those are mostly for salary match just minutes most of the change levels are re allocations of spending authority among different preparation sections exactly recommendation provides for each request in all but one section the division's funding primarily from federal grants investments special revenue fees for services and some general revenue. You go to page forty four the first request this is for state operations and this section provides for administration of the Division supported by Jill revenue fund. On page forty fives or corporation summary in the bottom of the third column you'll see that in twenty three was authorized as two point seven million three questions twenty four as for three point six billion that's a thirty three percent increase as for both years the biennium and the executive recommendation provides for this request looking at change levels on the line items the first one is regular salaries one point seven was authorized requesting twenty fourth two point three as at thirty three percent increase personal services matching with five hundred eighty seven thousand request is for seven hundred eighty nine thousand that the thirty four percent increase and this is our these are salary matching Justin's carried over into the new biennium but also a transfer of positions from shared services. Next line items operating expenses creativity three thousand was authorized to request twenty fourth four hundred three thousand that's a fourteen percent increase this is a re allocations being thirty from the electronic waste recycling infrastructure section as later on in the manual and then the next one items professional fees four thousand one hundred is what was authorized seventy nine thousand three quest and again this is another reallocation from the electronic waste recycling and also those appropriation from the Saudi please performance bond sections. Looking at them sources the fund balance going into twenty two was one point one million the fund collected general revenue in the amount of four million fees in the amount of forty four thousand they're interagency intra agency transfers of fourteen thousand two hundred thirty five thousand those funds received from the game in fishing or gas commission and Division spent two point two million fiscal year twenty two that leaves a balance of one point three seven million going into twenty three. The next request for the change levels on page forty six at the next page for federal operations and this section is utilized for the federal portion of program activities is supported by federal fund. Pitsch forty sevens or summary Wallace authorizing twenty three the total was seven point eight million in twenty four the request is for nine point nine million that's a twenty six percent increase this is for both use the biennium and executive recognition provides for that request. Regular salaries were the first change level is three point five billion was authorized twenty three and twenty four the request is four point eight billion that that thirty seven percent increase personal services matching was authorized a one point two million three questions twenty four as one point seven million that's a forty three percent increase and in for twenty five goes up to a forty eight percent increase these are selling as Justin's in transfers from shared services necklines operates misses one million is authorized one point one million is requested to nine percent increase professional fees goes from four hundred eighty four thousand authorized two five hundred eighty four thousand that's a twenty one percent increase and these are real occasions from the solid waste performance bond sections. And look at the funding sources stable the fund balance going into twenty was six hundred twenty two thousand the fund collected federal revenue the amount of seven million Division spent five point nine nine million in fiscal twenty two and that leaves a balance of two hundred thirty thousand going into twenty three. On the next pages in exchange level it's page forty eight we're at wastewater licensing and this provides for that program it's supported by special revenue fund. On page forty nine as our summary plan twenty three hundred sixty five thousand was authorized three questions we force three hundred sixteen thousand so it almost doubles as for both years of the biennium in the second recognition provides for this request. The change levels begin regular salaries sixty two thousands authorized ninety thousands request it's a forty five percent increase person services matching was on president twenty one thousand three questions for forty four thousand at doubles operating expenses was twenty six thousand goes up to seventy six thousand so that triples in the professional fees was offered a fifty thousand requests for a hundred thousand so that doubles all relocations are from the solid waste performance bond sections. And looking at the phone sources table the fund balance going into fiscal year twenty two was four hundred eighty three thousand the phone collected all the other line shows a hundred forty four thousand those are fees from examination and licensing renewals of wastewater treatment treatment plant operators the Division spent a hundred eight thousand fiscal year twenty two and that leaves a balance of five hundred nineteen thousand going to twenty three. In exchange levels on page fifty two so we're gonna skip over land reclamation. Your page fifty two this is the hazardous waste permit program and this section shares the generators to has have hazardous wastes are complying with the law supported by special revenue fund. On page fifty three is appropriation summary. In twenty three a total of one point three was authorized and requested twenty four as one point seven million that's a twenty seven percent increase that's for both years the biennium the second recommendation provides for the agency request. Change that will begin with regular salaries seven hundred six with thousands authorized request for twenty four eight hundred eighty two thousand that's a twenty five percent increase personal services matching with two hundred thirty six thousand requests for three hundred twenty six thousand that's a thirty eight percent increase either salaried matter just means and the position transfer from shared services is also reallocation of a hundred seven thousand appropriation from the solid waste performance bond section within operating expenses under forty one thousand is authorized hundred ninety one thousands requests as a thirty five percent increase in professional fees forty seven thousand was authorized in twenty four ninety seven thousand requests that doubles and these relocations from this always performance bond section. look at funding sources the fund balance going into twenty two is three point six million and the phone collected special revenue in the amount of one point two six billion those are fees from permits and certifications. Division spent one point one two million in fiscal year twenty two and that leaves a balance of three point five six million going to twenty three the next change levels on page sixty. Go to page sixteen manual. One page sixty is be administration and this section collects fees for air water and solid waste permitting monitoring inspection activities supported by trust fund. On page sixty one is the department appropriation summary in twenty three thirteen twenty million was authorized three questions twenty fourth for fifteen point seven million it's a fourteen percent increase in twenty five as a fifteen percent increase resolver Warren exactly recommendation provides for the agency requests change levels begin with regular salaries in twenty three six point now is authorized in twenty four the request is for eight million that's a sixteen percent increase per person services match two point three was authorized two point nine is requested twenty four in a little over three million requests and twenty five it's a twenty four percent increase in twenty four and twenty nine percent increase in twenty five these are salary match Justin's in a transfer of eight positions from shared services. Operating expenses was at two point two million three questions two point three that's a four percent increase in professional fees with five hundred thousand that goes up to six hundred thousand that's a twenty percent increase and he's always received a reallocation from the solid waste performance bond section. If you look at funding sources table the fund balance going to the fiscal twenty with seven point two six million the phone collected fees in the amount of eleven million the outside investments the amount of six point five billion divisions bill almost ten million in fiscal year twenty two and that leaves a balance of thirteen million golden to twenty three the next pages page sixty two is always performance bonds and this section is used for the closure of abandon or noncompliance solid waste disposal facilities supported by trust fund on page sixty three is a summary and this is one of those sections this using a lot of rich preparation to be reallocated to different sections throughout the department so you'll see that in twenty three was authorized three million three questions for two million so that that thirty three percent decrease and again it's because this appropriations be reallocated other sections fifteen thousand that's being reallocated state operations two hundred thousand the federal operations engine thirty seven thousand the waste water licensee to a sixty five thousand has with its permit program three hundred thirty three thousand a few ministration and if fifty thousand we have got this yep that's yes buses control program that would be later in the committee later in the manual and the executive commission provides for these requests. Okay funding sources the fund balance going into fiscal twenty was nine thousand nine hundred sixteen the fund had no deposits and the Division spend zero and twenty two at least bounce the nine thousand going into twenty three. On the. pay sixty aids next request. Page sixty eight. Is exchangeable this is for the as best as control program and this provides for administration of for program for licensing contractors engaged in the removal of a specific materials and facilities. Sixty nine as their summering in twenty three four hundred fifty thousand was authorize the question twenty force for five hundred nine thousand that's for it's eleven percent increase for both years the biennium in the second recommendation provides for this request changeable begin with operating expenses twenty nine thousand was authorized requesting twenty fours fifty four thousand seven eighty five percent increase in professional fees was two thousand one hundred requests for twenty seven thousand and these are both free allocations from the Soloway's performance bond sections we went over earlier looking at foreign sources the fund balance going to twenty two was one point three nine million the phone collected special revenue in the amount of three hundred thirty six thousand the Division spent a hundred and seventy five thousand and twenty two so that leaves a balance of one point five five million going to twenty three the next pages page seventy. This is a solid waste management recycling program and this section says cities and counties as always mention planning supported by trust fund. On page seventy one Senator summary and this is another section were you'll see an overall decrease because appropriations being reallocated to different departments of the sections throughout the department. So the total authorizing twenty threes eight point one request for twenty four as five point nine that's a twenty percent decrease the case over the twenty five the changeable begin with regular salaries what was authorized in twin three five hundred ninety thousand requests in twenty four six hundred six nine thousand so that does go up thirteen percent president services match was to enjoy one thousand requests for two hundred forty six thousand because that goes up twenty percent off responses was at ninety seven thousand requests for a hundred seventy two thousand that goes up seventy seven percent and professional fees was at zero request for fifty thousand these are all lines it receive a reallocation from the electrical the electric waste line that's at the bottom of the table so there's a line item below where they're moving some preparation for this item up to these other line items. And then the electronic waste recycling infrastructure line goes from two point five billion zero again that's being reallocated up it's also being sent to different sections throughout the department they're gonna send in a hundred ten thousand seat operations under seventy eight thousands regulated substance storage tank a program and then the bulk of it two million from this line will go to the shared services section. so would narrate Fund sources the fund balance going into twenty two was five point three million the fund collected special revenue in the amount of five point four million those are landfill disposal fees and the Division spent four point six million twenty two L. Eads about the five point three million going into twenty three. The next change levels on page seventy two this is the next page this is the regulated substance storage tank program and this section ministers laws rules regulations relating to underground storage tank it's supported by program fund. And on page seventy three is there summary well as authorized in twenty three was a little over a million the request for twenty four as for one point three million that's a twenty seven percent increase and that's for both years the biennium the executive recommendation provides for this request. Change those begin regular salaries seven three two thousand was authorized in twenty four eight hundred sixty four as requested an eighteen percent increase personal services matches two hundred sixty thousand authorized three hundred twenty two thousand is requested to twenty three percent increase operating expenses were seventy one thousand requests twenty four seven hundred and twenty one thousand at the seventy percent increase in professional fees goes from zero to fifty thousand and these are allocations from the electronic recycling line in the solid waste management section win over earlier funding sources at the table at the bottom the fund balance going into twenty two was two million the fund collected special revenue in the amount of nine hundred sixty thousand those are registration license fees the Division spent nine hundred sixty one thousand twenty two and that leaves a balance of two million going into twenty three. On page one hundred is next request so you skip forty page one hundred. In on page one hundred is the environmental site remediation remediation trust section and this provides a spinning authority use private funding for environmental remediation activities is supported by trust fund. On page one one is the request in twenty three to me was authorized requesting twenty fours again for two million so there's no change level in the agency requests however the executive recognition is to discontinue this appropriation there was a substantive bill that created tax credit program and a program fund for this appropriation but it was never enacted this is unfunded appropriation. You know go to page one hundred and twenty. On page one twenty is federal operations and this section provides for the weather is ation assistance program and low income home energy assistance assistance program is supported by federal fund. Page one twenty one is there a quest you'll see in twenty three that thirty nine point three was authorized the question twenty four thirty nine point six billion says just a one percent increase overall an exact recognition provides for that request the change levels begin with regular salaries four hundred eleven thousand was authorized request for twenty four six hundred twenty nine thousand at the fifty three percent increase in personal services match she was authorized at a hundred forty eight thousand three questions twenty four for two hundred thirty six thousand as a fifty nine percent increase either salaried matter Justin's and it transfer of three positions from the shared services section looking at funds sources at the table the bottom the fund balance going into twenty two was seven point four million the fund collected federal revenue in the amount of thirty six point five million the Division spent thirty five point three million twenty two that leaves a balance of eight point three million going to twenty three M. J. those are all the change levels for a this division. All right thank you and the questions are representative Cavenaugh you're recognized for a question thank you Mr chairman I'm over here to your far right. If I get us get closer so using my fight that Act I have several questions for your agency a lot of them revolve around your. Fund balances. You have some fund balances was it was substantial balances you have one with twenty eight hundred doc twenty eight hundred years worth of excess funding. So my question is with these balances when you have such a large years of reserve what are you gonna do are you gonna be given some of those fees back to the people that you get on from. Thank you that's an excellent question we we have several funds within the department of energy environment that are when I our trust accounts these are accounts that we hold that these command collected but these monies have to reach a certain level of funds to be able to be fiscally sound to cover environmental. Obligations potentially clean up remediation sites for sites go bankrupt or or other situations so these often stand in lieu of private companies having to have their own insurance and higher costs and so we work closely with those that we regulate around those fee structures to make sure their modest fees but that they that we have the necessary revenues to support the spend should it be necessary so I I guess to your point in those cases it's like having an insurance or trust account that allows protects the state sure there to be an emergency. It's well over what you're historic span is band. I'm going to give example and this is this is a little bit different this is from the land reclamation you have a fund balance based on your spending four hundred nineteen years. Your actual spend has been is thirty eight hundred dollars you're asking for an appropriation of nine hundred and fifty thousand dollars your most extorts B. and has been in thirteen fourteen for ninety nine thousand dollars. Why do you need an appropriation over that much when you have a fine balance that could sustain you based on your spending for sometime. I'm I'm sorry can you clarify what page you're on this page fifty one. And I'm sorry if you'll identify yourselves for the record please I'm sorry share my name is Becky Keogh the department secretary for department of energy and environment I have with me. At the table saying Corey Hirsch chief counsel and black or to compliance fiscal officer thank you. Representative Cavenaugh continue thank you that that was Pitsch fifty one. Sorry. On page fifty one of the retirement the land reclamation fund this is for yes mining I do understand their years worth of of expenditures and their however I think it is it is really dealing with the size of the project because what we haven't had to spend a lot of money into this fund in the past few years which I think is is a good thing for. If we had to undertake a substantial remediation you know it could easily take up the nine hundred fifty thousand dollars that's in there these are open cut finds that are done you know on lands set service for lan services sometimes near water bodies creasing centrosome I do agree that there are there's an adequate amount of funding in there but on the flip side of that one or two projects if we in the state within a place actually close some of those open cut mining areas your store expand your high speed and be it has been in thirteen fourteen and that was ninety nine thousand five hundred ten dollars right and that's exactly the point we we hope to keep it that way because there aren't a whole lot of sites that the department or the Division fireman a quality has to clean up under this particular program but if we reduce the appropriation is if some emergency came up there's nothing that prohibit you for coming back to the ALC and asking for additional procreation is there no ma'am okay I want to talk about if I can madam chair. Yes I'd like to speak about page number fifty seven and this is the coal surface mining because this is the one you have over twenty eight hundred years worth of. Unbalanced even though it's minor. Based on what your actual spending is. And if you've been watching budget fund balances is the name of the game this year. And I can tell you this particular program is a federally funded program so these are federal monies for the coal mining program that that the Division fireman equality Office of mining regulations so really these these. Appropriation amounts or in the event we needed to step in and take care of close of a coal mine site. Do you know the last time you had to step down and close a coal mine out in the state of Arkansas it hasn't happened since I've been in the car or the division or department environmental energy and environment but I know that we have several that we are in active litigation with or about to be in litigation with trying to get some of those operators to close the mind using financial assurances we have. And this one is just for the Is that not just for the operation of it because you're only requesting this fifteen thousand dollars that's not the fund that you would use in case of mine was close correct. Maybe I was wrong are you on page fifty eight or fifty nine a I'm on fifty seven fifty seven okay what he was in the trust funds or. Yes you're correct that's not what we would use the clothes that might be one we needed to use in the event that we need to. Rain water was overflowing in the circle that Mike up I'm sorry we can't hear you thank you I apologize I believe you're right that's not a fun that we would use to close the mine but it is a fund that we could use in the event there is some minor remediation efforts that need to be taken on that site. Elaborate a little bit also these programs when he talked about our federal program this comes out of the office of service learning and it's a it's a safety program and some of these old abandoned mines or there might be holes in the ground and and those are identified so we have had a number of programs or we've gone back and done registration we have a certain statements that we have to retain to be able to first get that federal funding and and that's the only concern I have is that these funds to service those matches so we want to make sure that we have the appropriate ability to spend our statement should we need to sign that that's the other provision of the federal government all artists and verify that we have the authority not only just sometimes but the authority to spend it should we have to. I don't think fifty seven has to do with that. Eighty seven because when you look at the description of it this is of funds derived from permit fees for service service call this is not. Dealing with your your federal funds and you might want to use it for state match but if all you're asking for appropriation is fifteen thousand dollars that's not much of a state match okay thank you. Mr madam chair I have several more questions I'll get back in the queue thank you okay. President of Hillman. Oh sorry or not every Crawford I thank you madam chair of my question. Is on page ninety nine talking about the easy infrastructure. And I'm I know this is federal funds coming for construction installation electric vehicle charging but my question is is the concern that comes after all of this and that is the disposal of the batteries at Cannes you use part of the federal money to help in the landfills or is there a plan in place for that. I think that's a very valid question we are working with department of energy and other EPA regarding the safety of battery and potential methods for disposal or management a lot of times you can send them to like a a battery reprocessing facility in and that's being funded now through some of the federal funds that are coming out so those are possibilities that we would you know we would work with the federal government on a procedures in our industry to make sure that they have adequate you know resources to be able to get those batteries collected and put their proper treatment facility so that we don't see impact our groundwater don't see impact our landfill so that there would be a suspect restrictions in certain landfills that they could not take certain batteries because of the components of the battery similar to electronic so we want to make sure that we keep our landfill site so but those are good questions it it's a it's a developing answer or solution but I know there are some battery recyclers out there but as batteries become more propellant that is a concern that we're dealing with on the front end okay thank you follow up please do you think do you have any idea like will this be in place twenty twenty three twenty twenty four will we need some legislation coming up in twenty three to help with this do you have any idea. I'd like to get back to you on that question I think it's a good question but I based on the investment at the federal level I suspect that we will see some investment across neighboring states if not in Arkansas for these facilities and then we'll go through the permitting processes to make sure that they're operated in a manner that conforms regulation but let me get back to you specifically on the on the time frame if legislation would be helpful all right thank you. Representive wooden. Thank you madam chairman of madam secretary I've got several questions relative to the. Fund balances interest income and personnel. page a. Forty three. But forty two you show interest income of actual or twenty one twenty. Two hundred seventy one thousand dollars but you don't have anything budgeted what it why is that for the the and and twenty four or five. Was it no interest income shall. When asked not to cancel the respondent thank you The reason there's no interest shown is that goes back to the respective trust fund which was generated and to be honest that hundred seventy thousand I think it's a little bit misleading I think our actual interest income was about eighty eight thousand part of that were refunds from the FNA that got process and were caught in a interest category but the the reality is the interest part of that goes back to the respective trust fund so in which it was okay was created as the Senate again so the interest is generated out of the real amount is fifteen thousand no no the real amount is about eighty thousand about eighty thousand yes Sir well what about two forty a forty million dollars that you've gotten the petroleum storage for a Page seventy five where is the interest only in the interest for all of those funds go back into the respective fun so we're not that were into whatever fund the fees are sitting and so that's and say for example we will show. We'll we'll show here's what I want from you is the eighty thousand that's going back into the fund we don't is is what I'd like to yes ma'am German yeah I'd like a list total dollar of fund balances I don't care what group it is I will lower your total balance and then I will know the interest that you earned last year all that money. Now you may not have gotten that money back to the specific for the but interest was earned somewhere on that money and I don't know what this is the only one who so top secret about interest there's some reason somebody is not reporting at all and I'm under you know you we go covid you for the fact that you show the hundred seventy one thousand then you start making excuses about you know it's really just eighty thousand well I think it was either the hundred fails it was money that came back into that fund a hundred and seventy thousand came back into the respective fund. A hundred thousand of it was actually come from interest well what eighty thousand interest the rest of it was only one what what funds did the money come from I think Mr black can probably tell you specifically where we invest or those to the calendar or not will not allow it. From you that if you're the one this go to alone total number fund balance all your other okay other will individually others will want line total and then I will know the interests as of an hour and all that money. And then also what it wine on page seventy five five million Maddox chairman opening have a whole list of a Speaker so one more question in a minute okay back to the queue only on the petroleum storage fund you've got a the you show a budgeted amount of forty one million. In the storage funds that's of an eight year. Budgeted fund balance. Are you all still charging of Fiona H. gallon gasoline is sold or the solely comes through the the pipelines. It's coming there is ice there is a fee that's charged at the palm per gallon sold it's a point two tenths of a cent that goes in collects and builds that now there is a the way that fundus establishes it we need we have to by federal law maintain us sure of financial assurance on cleanups of regulated tanks so that fund operates with a minimum and a maximum so if it collects more than the maximum in law then that fee would the commission act to remove that fear reduce that fee if it gets below a certain level the commission by law by state law by your own actions work is required to have the commission raise that fee to be able to generate the revenue between. I'm gonna go to represent Springer missed a representative would not come back to you you represent of Springer you're recognized. Good morning over here thank you madam chair I'm on page twenty one of your. Appropriation request. And I'm I'm looking down on the the administration and the positions that you have allocated here you have one hundred and. In thirty one positions I I have a two part question madam chair the first question is these individuals that hole that position could you kind of tell me what they do and then what are the qualifications for the persons in order to hold that position you have it under the admins ministration a hundred thirty one position then the goals. It goes up to a hundred and fifty two four of the requested appropriation and then it maintains in the subsequent years so I'm trying to find out who are these persons that that hold these positions and what are the qualifications in order for those persons to hold that that those particular positions can you clarify the page number again I'm sorry okay it's forty one forty one. Yes. Forty one forty four one forty one thank you we were on the wrong page I believe so I apologize I thought I said for. I'm in this I'm in this book. For condemn Hendren under thirty one. And then to go to school you saying. Okay this is our permit fee program this is the core work that are D. each division of environmental quality that operates so the make up of these up the staff include a lot of professional a technical staff we have a number of engineers that that we currently employ we have other supporting staff that would include a. Various administrative functions to process permits to. No bill for the fees and to be able to execute that work So out of it in terms of the number of and this covers are federally delegated programs like water and land a permitting programs that we operate in lieu of the federal government I don't know if that answers your question but not quite Madam sure I would like to have a breakdown of those individuals what they you know they're title what they do in the qualifications to be hired into the position I'm trying to determine what the qualifications are told these particular positions because I'm going back and looking at your employment summary all of us I mean can you be specific about. Blake you want it for the entire agency or again I will the one these one hundred and thirty one positions that I see here on page two so there are permitting staff because I am as a large number of our engineers they have to hold at least four year college of engineering type degrees they also many of them have to be licensed as professional engineers these are just staff that we honestly work diligently to retain because they're very it's a competitive market place out there particularly right now and if we find it difficult you know to not only attract but also to retain these folks but unfortunately we've we've got a great team and and they're doing great work but thank you Watson I understand that but I would still would like a break down who those one hundred and thirty one individuals are in absolutely and what their position you know and what the qualifications to hold those positions are thank you all right thank you. I feel this and get that to the staff representa Fortner. You're recognized. Thank you madam chair I'm over here on the side. Thank you for coming guys I have a question on page number one hundred and six this is about the used tire recycling program. Could you repeat that page number up page number one hundred and six the used tire recycling program. All right okay what my question is there's a a statement there is at least ninety percent of the money available in the used tire recycling fund age shall be reimbursed to tire programs could you clarify that for me just a bit does that does that reimbursement go to the tire dealer to help them or does it go to the people that received the used tires from the dealer and dispose of. I will try my best to explain this but that's actually a statement from the existing statute so the way that the existing program works best I can understand is. That when the used tire when the person they retailer collects the fees the retailer actually gets to collect and keep five percent of that for their administrative cost of that ninety five percent ninety three percent of the ninety five percent him goes into the used tire fund. And seven percent goes to the queue for admin costs and other expenses of remediating the of running that program and then there's a piece in the statute that says of that ninety three percent at least ninety percent of that ninety three percent shall be used to reimburse districts administer the program and something generic like otherwise administer the pro the the the provisions of this act so in essence basically ninety percent of the ninety three percent either goes back to this goes backs goes back to a district is used by the Q. or it isn't some other type of remediation effort regarding tires and and that's kind of this it's one line taken out of an existing statute that got dropped into the budget request commentary that that's probably a little bit out of context so I think Bailey Taylor is here and I know secretary Teo in her previous experience running D. Q. can can probably tell you exactly how much we have but I think that most of that ninety percent or close to that ninety percent of the ninety three percent yes disbursed to tire districts follow up. It either I didn't understand probably I did not understand your explanation I want to know who gets that money and is it used to properly dispose or re claim or re use those tires are are those tires just piling up in a mountain somewhere that that's what I wanted. So the money. The the entity which receives the money are the tire districts. And I believe that of the ten or so tired districts obviously we have some issues that we're working on with a couple of those tire districts one in particular I know we're all familiar with but for the most part that money goes to the tire districts and they are using it to administer the. He was tire program are they held accountable because I don't see anything being done with those tires. At I can I can say that let me just jump in here there's a group of legislators that are working on this issue there is an audit I believe that has been requested that is on going that should be finished in January regarding this solid waste districts on the tire program to really do a deep dive into re evaluate to see if this is working or not working and to the point of your questions and then the money is supposed to go to the solid waste districts they are supposed to operate a program to collect the tires and then to dispose of them properly there are audits done by eighty Q. as in regards to if they're being dispose properly or not and to hold them accountable for that so there are some issues that we're working through and there is an audit that has been requested that's on going with legislative audit hope that helps to answer a little bit of your questions okay I'll I'll wait patiently for the results but the other thing that I'd like to address. They charge three dollars to For you to buy a new tire and they charge a dollar if you buy a used one I assure you it doesn't cost any less to dispose of a used tire would you buy a new one or used one. Thank you that there's issues I don't think that I agree we have issues. We need to have that needs to be re evaluated and like I said I know that I representative Wardlaw a representative Grady representive fights several of us are working on this issue but I appreciate the concerns stay tuned representative speaks you're recognized that I have representive eleven I have a list of folks so thank you madam chair I'm over here. On page forty one. The waste water licensing. That is gonna. Forty eight percent. Have you raised the cost for these last name. Our what's happening here. On page forty one and and what has gone up forty it's a wastewater licensing. What we have not raised fees on wastewater licensing the cost to administer the tests have gone up there a lot of things that we do internally that have gone up but we have not increased the fees on that that's actually. Set by law and one of the things that that I know several people are looking at for the next session but we have not read increase those fees at this point. Why would they have done almost stumbled. Well I think I would have to look specifically into this line item I can tell you that we pay a third party to administer the tests and for example the the cost that we charge doesn't even cover at this point what we're paying to administer that test so maybe program expenses but if you would like I'll be happy to get you a detailed explanation of that particular line item I would like that very much thank you thank you again Senate any of the information requested to our staff we will get it out to all the members represented eleven you're recognized for a question thank you madam chair madam secretary and is Mister pairs was presenting a budget request. Continually I've I heard him mention that increases were noted to re allocations of salaries and to personal personals matching. when I go through some of these different departments I do I'm not seeing a large increase in positions most the time we're seeing maybe one sometimes a decrease of one sometimes they stay flat within that particular department but when you look at the increase on most of these departments there anywhere from ten to twenty percent of an increase and regular salary so am I to assume that you're proposing at a ten to twenty percent raise for all of your staff or is there something about this reallocation installing these numbers off. If you don't mind I'll I'll try to answer that so the reality is we saw an eleven percent increase among our existing staff are ready over the past year so any time that there is a raise either at through through. Annual evaluations etcetera there were several races this past year when any time there is a raise for state employee that increases our costs of these or increases in appropriations to be able to fund the raises that employee is not just a DQ but throughout the state already received so these are basically anticipated costs and I believe and I don't know if the proposed pay plan is in there or not I don't believe it is but these are to basically just to cover the amount of existing salaries going into next year based on current salaries at this time so you're saying that all state employees. Received already up to eleven percent increase that you're having an alcoholic. saying between matching between the coal that was given between the merit raises that were given on our state side that including it was around that person that is not being consistent with the other agencies that we've seen over the last and that's what makes this a twenty percent looks it it's a much larger number than we're seeing amongst the other agencies that have been present so I didn't know if this would be something that your particular agency chose today. I think it was over the past two fiscal years just to clarify and I don't know that I don't believe that we gave anyone higher than a five percent and our merit either so it it was a combination of a couple years of accumulating merit increases with with Kohli's okay I'll add to that too and I mentioned briefly earlier about our engineering and technical staff there was an adjustment across state government we happen to be one of the larger employers of engineers in the state and outside of the. The department of transportation I think we're second to them and so we did have some adjustments that were made to their salaries again to be able to put them in a more competitive and I won't say they're competitive yeah but they're more competitive in the marketplace obviously the pressure on engineering talent with all the federal investment going on forward is going to get even more difficult so just I think we probably are seeing a little bit higher impact but that is justified based on the the nature of all the the type of employees that we have and and their career you know choices what what their degree programs and and their competitiveness in the market place yes ma'am just as an example under for instance the hazardous waste permit program which is like representative Springer and ask a lot about you know these positions that are within these permit departments I wouldn't assume those would be engineers but maybe they are for the twenty two twenty three budget the average compensation per twelve allocated positions was fifty six thousand three hundred ninety three dollars your request for the twenty three twenty four budget for their for the same number of employees is sixty seven thousand eight eighty that's roughly a twelve thousand five hundred dollar increase so those are mostly engineering okay they do permitting for some of our larger facilities that manage that's a nice thing hazardous waste so thank you very much thank you manager. A representative fight. Sorry it's representative Vaught sorry I'm on page fifty five. And I see that your actual was two point three and it looks like you were budgeted for two point five and now you're asking for five point seven can you explain to me why such a great big John. It looks like you're federal revenue is only two point three. I do know that we received additional federal money for this particular program I have to get back to with you on the specifics as to what the fund balance when a two. Representive this is our reclamation for mining and the mining money in the federal government's a little unique in that they hold past years where we have unexpended revenue and they've encouraged us to clean up those past years where we've had small amounts of revenue sitting there this increase is set to allow the mining division to do more projects for reclamation and use all the federal money and Wendy's for say this start to happen we're working on adding contractors now I'm working with them on that so definitely then the feds have encouraged us to do it sooner rather than later and I noticed that you don't have much of a fine balance on this one well it's if it's bill is held by the feds it's not held in our state treasury so you don't see it here on the budget okay can I have one more follow up ma'am yes on page sixty five. It shows that you had one employee in the salary it looks appears to be one thousand seventy eight dollars. But it looks like you're keepin it to one employee but raising it to a hundred sixteen. Is this kind of what representive eleven was speaking to a minute ago can you explain that to me this is where we have moved back. An employee out of shared services into this position. Okay but it doesn't appear to look as though you're gaining employee it looks like you had an employee then you were budgeted no employee and now they're in your authorized for two and it looks like the agencies only asking for one. Am I reading something wrong and I think you're reading it right I'm just wondering if for part of the time when we had one was there actually somebody in that position or maybe only for a portion of the year that they were paid anything but we're happy to to get back with you I think there are a lot of positions there are what give or take. Forty three positions that when we started with transformation we moved into a shared service role after really looking at it we kind of realized actually we moved a hundred and. Hendren nine positions to shared services role when we actually look at a look at their job duties we realized a lot of those weren't really shared services positions they needed to go back to the respective entity that came from like on gas the Division of environmental quality except for so a lot of these have changes where we're basically simply moving on back from a shared service role any any to the respective. Entity that came from coal and gas LP gas court has one July survey as if you and then a lot of the he program to have that so I think we're seeing kind of a combination of maybe the position wasn't filled in the prior years and then once it's been filled it might've been a shared service role that we're proposing to move back to the D. Q. level at this point can you give me a description of what this person does also whenever you get us the information thank you. Thank you representive Hodges. Thank you madam chair my question is on page one twenty one twenty one the weatherization assistance program. A couple questions and tied into one so. On the I'm just curious and you know maybe just maybe maybe in a sum up part the show that had it has thirty nine thousand Three and sixty six dollars I'm at thirty nine thirty nine million budgeted thirty three authorized be if they have an excess of preparation funding of almost eleven million I'm just curious why they got less amount authorized then they budgeted. That's the first question. When they have when they have a when they have excess appropriation. Skews me that's the amount we anticipate this is all federal money in a federal award I think the It has to do with what we sometimes receive additional federal funding. Has programs go the I. J. actually added money to the specific program but I think the difference there in the authorized in the budget sometimes what we anticipate into being different than the amount we actually received from the federal government okay my second question is if I if I may have a follow us and share yeah let's move how is this money at allocated as far as to the the program that that that are being assisted they were the request process and and how they distributed to assist in weatherization for those that are that are are in need of the service. So at a high level we work with the community action agencies there's an application process where people can go in and make an application to see if they're qualified for these programs I'm probably to be honest I'm not the best person to answer that question we have a whole program programmatic people they can give you the ins and outs and I would be happy to have one of them contact you to walk through that particular program if that would be helpful yeah that would be great that would be great if you could do that thank you. Thank you manager. Senate last. Thank you Mr chair of couple questions she just said that You realize that there was a position that had originally been allocate church services but you decided that's not where they fit they brought him back how many positions did you reclaim I'm over here to the left morning morning how many positions have you read directed back out of shared services was it wonder was of multiple so. I'm sorry I think he's going to it's a total of forty three or being removed from shared service back to the respective agencies of that forty three six Pacific Lee go to ATS for go back to all and gas one goes back to the LP gas poured in twenty nine goes back to the division of environmental quality. I had the money previously been redirected to shared services that would have been affiliated with their salaries. Yes so the moneys instead of like the for for oil and gas instead of oil and gas paying those for directly they were paid into a shared service account that was then that then pay that salary so there there's it's net neutral in terms of money and funding it's just putting it back under and with the respective entities they came from you don't know by chance of shared services reduce their image of the budget because our budget what went up Daly eighty with the salaries if they were moved over there do you know if it was reduced when they were transferred back to you it was equal amount to what started off and and and when right when I'm using shared services just to clarify I'm talking about the shared services within the Division of it our department of energy and environment not okay CSS so these are moved from what we call a shared service line are nine nine oh five line back to an entity so we reduced our shared service within he any okay out for those positions that were then going back to their suspected entities okay and then last question beyond leans your your the first state agency if I remember right to implement leans over there can you give me update how that is and any of the races that were referenced while ago by representative eleven are they qualified to receive up pay increases based on their production through the lease program just going to give me a high level overview of that please. Thank you for the question we did work early of as I came on board to a. Learn how to implement lean across state government we partner with other state agencies up for instance there is on the other states are doing similar work also our federal partners so lean as a process where you evaluate your work flow your evaluate how you do your work you bring the employees together you identify those critical elements that you absolutely must maintain but then you also look for duplication replication and wasted time if you will in the process as a result of that we took five hundred. Days a backlog out of some of our permitting programs it was very effective just allowing our employees to understand the process and work through that so that was an extreme example but in other cases we look used to to reduce the amount of time it took us to hire employees and that's been a success where we were able to get through the interview process and and follow all the required steps. Under state government but still it capture that talent that we needed so desperately in our department in a faster way giving more certainty those applicants those those continue to be a process we continue to I have metrics on this the processing time of permitting actions and other activities across our department as far as your last question about how does that translate into salary increases that's where where we look at our of it in our performance Bonus pay at the end of each year those kind of metrics and those kind of efforts by the individual employees are recognized by their and they're great in that way so our one of our top R. five performer would be recognized for their ability to advance planning and and and efficient you know streamlined operations compared to someone that just doing the basic work flow so that that we try to build it in and show a performance on a individual basis through our rating system that we adopt each year so okay thank you thank Mr. Represent Dotson you're recognized. Thank you Mr chair On page sixty three. Your solid waste performance bond bonds fund just looking back over the last several years doesn't look like you've used or spent anything out of that for at least the last. Half dozen years or last ten And. As far as I can tell that was operating expenses and professional fees and services when you did. But you're not even requesting those line items on this particular budget and you don't spend anything last year you land have nine hundred and R. nine thousand nine hundred sixteen at a fund balance why do you need to million in preparation for the next two years. Dotson this that particular fund is actually the fund in which if we had to call a financial assurance from an entity you would be put into this particular line and then we would use the money in this line for basically for closure an insurance policy type thing so this is not something that we necessarily plan on using but it is a fund to create a place holder so if we had a call an entity's financial assurance that has a place to go and then we have the authority to spend that particular financial assurance on the program or to fulfill campus of the pro so the the salaries. all those various line items that on page sixty two there. Why aren't they reflected in on page sixty three. What are the reallocation is out of this program so they're not they're not proposed to be allocated within this program. That makes sense so. So if you were to speak if if you have the call certi. Bond. Then this is how the funding would flow on page sixty two I think what you're seeing on page sixty two is the current approach is a three million dollar probe that includes all of these things what we're proposing next fiscal year for the next biennium would be to reduce that to two million and then this shows where the other million went within other programs in the department. Okay I see that now. Got you so that that's in a different appropriation right gotcha all right those are moved to different from and then page eighty five. Your small business loans in the loan revolving fund. Looking at this over last. Ten years or so and the. At the. It looks as if the last time you used any of this was in twenty fifteen. And you only use this fun three times over the last ten years. Twenty twelve. Get out alone is sixty dollars thirteen fourteen one of the thousand dollars and fifteen sixteen allows alone of fifteen hundred. And then just as far as the overall. Small business loans in twenty twelve. I'm thinking eleven thousand one hundred fifty five dollars Addressing for half over half a million dollars an appropriation and you have a. What looks like a fairly large fund balance there. What can you explain to me what happens with this program why are not given nine loans if you have such a large balance and if if you are where that's reflected in. So those are great questions this fund as I recall this is where age or experience main may harm me where that help me that I I recall that when the sun was established if many of you all knew and it really came about. when gas stations had to upgrade their storage tanks underground storage tanks to meet certain federal requirements and it was a bit cost on on especially the small mom and pop operators gas station owners I mean the big corporations could handle that expense but are are independent owned gas stations were really struggling to meet that in many and we're actually shutting down because of those costly require upgrades so this loan program was established to provide a loan program that would help facilitate that they could pay back based on the earnings Joint wanted anymore what I understood well those upgrades of all that done so there's not as much interest in it and honestly I think we had some problems with getting some of those loans paid back into the fund which therefore the revolving aspect of the loan program was set so that pro the program was put on hold to re allocate or re evaluate how can we help with the with the use of settling for because it wasn't limited to that but that was kind of the first pass at seeing how small business loan program and would work so we've been working on that and the Department over in fact I just recently to see because we know there are some cost burdens coming out on small person business with some of the federal of requirements that have come forward and so we want to before we were just like eliminate the program altogether we want to make sure that if we can use this money that they would have access to those loans and I would allow them to comply this is about compliance helping our smaller businesses comply with the federal mandate so that we carry out there are delegated program so I guess I would say more to come on this as we go through the evaluation to see if we want to run at this point we want to continue the program because we think there is so long opportunities that would help our citizens and businesses but at some point we made you know come back here and tell you that this program is not needed anymore with the existing statute that was passed. Back in ninety seven for this program cover all of those additional those it was red or generically so it would cover or different uses but it was just kind of a pile it wasn't the first effort was more of a demonstration to see how it would work and to be honest with you I think we felt like it needed a lottery work and that's it so it but I think the legislation today we'll look at it again perhaps with your assistance to see if it will meet the needs of the future going forward. All right thank you. Senator Chesterfield you're recognized. miss your move immediate consideration of executive Rick. I would have to have a motion to take immediate consideration okay I move immediate consideration okay I move executive Rick. Okay and and now that's proper motion to a second second. Now your second part. You can you give me the consideration who yes proper motion to a second. Have second all those in favor say aye aye All opposed hello I have to rule the nose have an act of two thirds. Are you leaving your motion on the floor you withdrawn at so we can go back questions. Remember so we have a motion on the floor is there any discussion on the motion. Representative Cavenaugh. I yes I have a motion substitute motion you're recognized I would like to make a substitute motion to exit executive Bragg with the exception of page ninety one that we're going to reduce that appropriation to two point five million dollars. That are on page seventy five. In operating expenses we're going to reduce that to twelve million dollars on line professional fees also one seventy five that we reduce that to a million dollars. On page seventy seven that we will then reduce that appropriation to the federal funding level of one point five million dollars. And on page seventy nine. I would like to reduce that contractual service a line item number two. A twelve million dollars. That's proper motion to a second I have a second all those. The. Please a take representive wooden substitute to substitute before I take a division because we're not voting I move that we flag this whole budget hold it up to session this is complicated I've got one section here with twenty seven thousand dollars in pay runs. And engrossing positions from hundred thirty one two hundred and fifty two so some sense something's not not adding up in all of this budget so I just I move that we hold it to session or I wanna flag whatever it takes to do the whole budget. Okay representative will not being advised by staff what that means an out I want the Committee understand what that motion would mean is they would not have an appropriation bill for rep for general Joint Budget Committee that bill would have to be rammed by a member. So do I have a second to substitute a substitute. See no second that motion das from the lack of a second. So I will go back to center Chesterfield not. Cavenaugh. The. I'm going back to Kavanaugh's motion sent Chesterfield at a motion to deal with the voting of that bill members I am aware of where I'm at. I need three hands for that motion to stay in. I have it members will be voting by divisions so with that of Kevin when you call the roll start senate. Senator hill. Senator Blake Johnson. I think Senator Blake Johnson is first alternate Senator Solomon. Senator Wallace. Senator Chesterfield. Senator Elliot. Not seeing Senator Elliott as first alternate Senator Tucker. Senator English. Senator mark Johnson. Senator Ballinger. First alternate center for for for for sorry. Senator Davis. Senator Hester. Senator Leding. Senator Garner. Senator flowers. Senator sample first alternate center Gilmore. Senator Bledsoe. Senator Caldwell. Senator Dismang. Senator Flippo. Senator Hammer. Senator Hendren. Senator Hickey. Senator Ingram. Senator Pitsch. Senator Rapert. Senator Stubblefield. Senator Teague. All right without the motion fails and so we automatically go back to executive right. The motion their second. Roll call of the. Okay. Start with the House do we have to raise hands one two three three hands. The Senate or house house okay. Representative Bragg. First alternate representative Warren. Second opposite alternate represent Gonzales. Represent Cozart. Alternate represent a clear. Representative fielding. First alternate represent Bentley. Second alternate represent Davi. Represent Holcomb. Represent Vaught. President Deborah Ferguson. President gray. I sing representative gray represents Smith. Represent Hillman. Here is here. Represent Gazaway. Not seeing represent Gazaway but first alternate representative to let. Representative Hodges. Representative Jett. Representative Payton. Representantes. President Ladyman. Not saying represented Ladyman first alternate represent Christiansen. Representive Murdock. Representative back. And no. Represent Lanny Fite. Ninety five. Okay yes right of first alternate representative Hawks. Representive Lowery. First alternate representative Alan. Second alternate representative brown. Representative Meeks. Representative McGee. First alternate representative Collins. Representative Annette. Okay representive love. Representative Scott. Represent Springer. President will. No. President Boyd. First alternate represent McCollum. Second alternate resent of cloud. President Coleman. Represent Penzo. Representa Fortner. Representative garner. President Johnson. Representative Dotson. Representative of all. Not saying represent Deffenbaugh first alternate representative Godfrey. Second option representive Underwood. Representative Charlene Fite. Per softer resent hawk. President having their. No got it represent Whitaker. First alternate representative Crawford. Represent Miller. First alternate representative winning. Representative Shepherd. Second alternate representative very. Represent Cavenaugh. Represent Eads. Representive Eubanks. Represent eleven. Represent Kenneth Ferguson. Senator flowers. Representative gene. The representative called. Represent Milligan. Represent Richmond. Represents speaks. Represent Womack. It in passing this. All right that motion fails. All right thank you will just move on. And we'll go on to. Okay and. That's an order representative Cavenaugh you're recognized for motion we'd like to make a motion or I would not wait like to make a motion on and accept the executive director with the exception on their general revenue amount to take that to four million dollars. Can you add a title you will need to okay page forty two. I'm gonna saying there's some questions that may be asked of you by membership. So Page forty two Executive rack and you're going to take their general revenue funding down to four million dollars Hey to four million dollars. That's not appropriation at Mister Anderson you're recognized. Well as you're actually looking at the funding and general revenue that's not an appropriation the appropriation charts at the top you're looking at funding source funding. My motion which leads to take their funding in general take executive director change their funding in the general revenue down to four million dollars at Mister Anderson you're recognized to address that yes ma'am I understand your motion I just wanted to make clear that that will be a recommendation for funding because our say alternately will determine the amount in there so that will be a recommendation by this committee for the funding level for that. Okay. Thank you so do you want to clarify just to say that you're making a motion for executive rack with the recommendation that the four point two. At two two hundred thousand two hundred dollars and eighty four eight hundred forty one dollars would add the recommendation would be to take that to four million through the RSA process that you're recommend they are that's your motion okay are there any other questions US senator Hammer you're recognized for a question may I answer to question two representative Cavenaugh yes we're doing right now or representative Cavenaugh could you just give me some insight as far as what your in game is behind your motion where you're hoping to achieve by doing it. Sorry. Okay yes Senator Hammer what might end game is to be able to go ahead no I do an appropriation bill so that we'll have this ready for joint budget then it will allow us during the session to be able to work out the other issues that we have but this way at least we still have a budget bill that we can have ready for session. Follow up and chair yes. Could we not do that with the numbers as they are in achieve the same goal and what I'm concerned about is that if we cut it. What do you hope to realize out of cutting it not that I'm maybe against just want to know are you going after the salary issues have been dismissed Scott this morning or what your intent is if you don't mind please well we have several issues in these budget to be one of them is the salaries the positions the other issue is a large fund balances do we deal with general revenue balances so there are quite a few issues inside this agency's budget that we need to be able to address. I know it's a little bit of order madam chair but agency response might be inside for what a deferred to the chair thank you I'll allow it Mr Corey thank you. Maybe the best thing is and what we would suggest is if we pull this for the moment give us an opportunity to get with the members that have questions provide answers and and maybe I know this is a little bit out of line or out of the norm but maybe come back. I think we have rational explanations and answers for you but I want to have the opportunity for us to provide that to you one on one or offline if that's acceptable to. Representative Cavenaugh are you okay with that yes madam chair okay so do you want to withdraw your motion I was from a motion okay so what we'll do is just by pass and then. Okay Senator Chesterfield thank you Mr I thought we were almost at a compromise here. We are we are we are we are at that compromise I can be able to forty seven thousand dollars thing I don't understand it but in order to get you a budget I live with it so I would ask that you withdraw your request you put it down let us move the pace with this vote because I think we may have a compromise if I am not mistaken correct center and we can move ahead thank you we can't have another motion for executive rack because that motion failed so would have to be something different so what. Right so that's what has occurred so. So I'll be happy to respond but I think I'm a little bit lost as the that the okay what we can take a motion to expunge the vote yeah could you please take a motion to expunge the vote by which the motion for executive rack fails if you would like to do that. Some have well but but this is to expunge the vote by which executive wreck failed so. Okay so there's a motion to expunge the vote by which executive wreck failed there's a second all those in favor say aye. And opposed. Is habit moving on but I would like for the agency to get with the members that had all the questions and I appreciate that thank you. Correct that was six funds. Right I'm just I'm just directing the agency to get with the members that have questions now we go to the motion for executive racks so moved and second all those in favor say aye. And opposed. Is have it. All right well moving on. I at the one hand we're moving on that's just representive what you're at recognized for a question Bills because I've moved on all right if the agency can get with a membership please and get all the issues worked out and there can be adjustments made to those Budget bills that's fine in the meantime thank you we're gonna move on to the next item on the agenda thank you Mister Harris you're recognized for Arkansas Geological Survey miss Becky white state geologists. Thank you madam chair room page one hundred twenty four page one hundred twenty four were still with the department of energy and environment this is the Arkansas Geological Survey division within that department. And on page two hundred twenty four begins their quest. This division is to provide geological information in order to develop and enable effective management of the state's mineral fossil fuel and water resources while protecting the environment on this page it shows state contracts were to minority owned businesses employ an employment summary and publications. On page one twenty five as the department appropriation summary this division has seven appropriation quest only to have changed over from the agency and the executive recommends a brand new appropriation section the but the last two these items are dealing with a move to a facility is being constructed the agency build their preparation into the operations section for this move but the executive recommends a new cash section just for those moving expenses the total authorized budget fiscal twenty three as one point nine million in spending authority the Division requests over three million for the biennium that's a sixty three percent increase exactly recommendations different from agents your question to sections regarding that move but it does support the net appropriation increase request that's over three million in spending forty for the biennial of the division's funding primarily from general revenue cash funds of federal grants. The first request for the change of a state operations this page one twenty six if you page one twenty six you'll see that request in on page one twenty seven is the appropriation summary. What's authorized in twenty three four total is one point four million. Three questions twenty four is two point five million that's a seventy four percent increase. The second recommendation is for only thirty four percent increase at one point nine million it will get into those change levels with each line item in regular salaries The authorizer questions that eight hundred fifty thousand I'm sorry authorized amount was a hundred fifty thousand requests for twenty four as one point two that is a forty one percent increase personal services matching two hundred seven three thousand this was authorized your question twenty four as four hundred and twenty thousand that's a fifty four percent increase these are salary matching just as they were made in the current by you'll be requested to move for the next biennium it's also a transfer of six positions from the shared services section into this division. And the executive regulation provides for this age is requesting for these two line items the second recommendation provides where. The next line item is extra help with authorizing twenty three eleven thousand six hundred and twenty for the request for thirty six thousand that's up nearly triples and this is to increase their unfunded appropriation for moving the agency to a new facility that is being constructed the agency says they will sell assets and make budget transfers provide for the funding the executor of the second recognitions to not change did not approve this increase that is they don't want to increase your progression over eleven thousand as authorized in twenty three. Next line is operating expenses two hundred thirty four thousand was authorized requesting twenty four it is six hundred thirty seven thousand that nearly triples this is re allocations to simplify their budgeting process within the division that will come from the line items below so if you see the water quality stream gauging of ground water survey and mineral exploration those line items go down zero to be transferred up to operating expenses they also receive an increase of another three hundred thousand in unfunded preparation for the movie needs for moving the agency to the new facility again the second recommendation for this line item is no change level over authorized looking a capital outlay zeros what was authorized twenty three three quest for two hundred seventy five thousand again this is an increase of the unfunded appropriation for the agency's move these African nation against the keep this billion three and zero and you'll see like I just know over time work water quality stream gauging of ground water survey Miller exploration goes from. You are for the twenty and thirty two thousand down zero and executive nation does not recommend reallocating these line items the fund collected and spent the or transfer one twenty million in general revenue. If you go to page. Thirty one thirty six Page one thirty six is the next change level. This is a new section there is an executive recommendation to Brock as provided for the agency moving this state quirk sample to a new facility being constructed it supported by cash fund. You'll see was authorizing twenty three zero and request zero that's because there is no agency request but the executive recommendation mirrors what the agency requested in that last section so this is an executive recrimination of six engine one thousand to provide the requested speeds already in a new section for those moving expenses of the funding again would come from the sale of agency assets and budget transfers and I did speak with the the department this morning and they they were inclined to agree with the executive Dacian didn't set of building that a preparation into the operations section they are okay with having the exact recognition to have a brand new cash operations section just for those moving expenses. Moving to the next pages geological research landslide of single in this section is to provide knowledge of Qiu hazards like landslides and sinkholes Page one thirty nine is there. I'm sorry one page one thirty nine is the appropriation summary. And in twenty three. It looks like a hundred fifty seven thousand was authorized three questions twenty four situational forty thousand that's for both use the biennium and executive recommendation provides for this request of the changeable begin with extra help nine thousand five hundred is authorized requesting to the force for twenty seven thousands that does trouble personal services matches seventeen thousand their question twenty fourth twenty thousand that's a seventeen percent increase geological research was eighty one thousand and requesting twenty four is a hundred forty three thousand so that's a seventy six percent increase and this is a all the spend the grant from FEMA. If you look at the phone bounces going to twenty eight sixty thousand the fund collected cash funds in the amount of a hundred fifty six thousand agency spent a hundred seven thousand twenty two now is the fund balance of a hundred eighteen thousand going into twenty three. Okay Mr sure that is the last angel for Geological Survey. Thank you bill. This committee has no idea how you had to study that to be able to do it that way and you did it perfected thank you senator Hammer you're recognized thank you Mr a couple questions number one the shared services movement that you talked about is that the same thing as the last presentation that it's within the agency that you've moved the personnel. I believe the answer is yes I'm a let to counsel responded directly to the question thank you. That is correct and I think that's. Why you're seeing a higher percentage because we have more positions going back to these entities so it shows a seventeen percent increase where in reality we're adding six more people back into the AGS budget that wasn't assured service budget I'm sorry your. Natural at the end of the day it's just they're coming out of the shared service going back into the specific entity in this case AGS okay and I'm I'm just curious the original decision to move them that now retrospectively it would appear that it wasn't the best move what precipitated the idea that they should have been moved in the first place so when we started with consolidation I think we had an idea of how it would work and we moved in this case specifically all of the IT folks and R. GIS folks into a shared service role I think as we've gone through transformation we understand that those people are so specific to that entity or the agency they're working for they're better off being there we did consolidate some of the management level of IT in GIS and left that the shared service but the employee who is doing all the GIS mac mapping for AGS for example we felt that would be better if they were left in the AGF or move back to the AGS budget the other thing it does is it allows a little bit more flexibility in the sense that on specifically on the two side where when she moved into a shared service fund they have to be paid out of that cost center and if we have federal grants that are available we can't ship them to those federal cost center so they're basically end up being tied to the state revenue fund so I think it it it's a it's a reflection of two things the work they're actually doing and the ability to make sure that where we can reallocating those employees back to a federal cost center as opposed to the state revenue because okay forget in lesson you mentioned something about selling assets of the presentation what assets are we looking at selling and dollar value and where's that money can be redirected to again please okay up I'm gonna take that one and then if she wants to add to it that's fine of. We'll yeah we have sold a building that the Geological Survey professional staff of has now been moved and we've combined our staff all at our north shore location so the main building where that staff worked at is is been sold there's an additional warehouse building that stores assets of the AGS a lot of things and that's the building that we're looking at now in terms of needing to move those assets into a a building the building that currently was housing that is in disrepair significant disrepair they're at risk I'm sorry such one off road a bill yet okay Sir what the one off there the one off road a bill is initially been sold thank you. Our all right thank you appreciate. I thank Mr. Representative makes. Thank you know Warinner far right so. On a page one twenty seven you'll have requested extra Hall of thirty six thousand for the for the I'm assuming is for the move from the presentation is that correct and the executive said there on your eleven. It is my understanding that correctly. Yes but they then also gave us the cash operations line that basically is another way of doing the same request okay so you'll get the help you need in order to facilitate the move fast and and then the other question I have is on that cash appropriation to get over here that cash preparation is good for two years do we need both years in order to get that moved on or is this a second years adjusting case. Of we believe that we probably need both the the sale of the AGS building is actually hasn't closed yet it should close this month and then in addition to that we have the warehouse facility that will have to be marketed and sold and their core samples and all kinds of things that building that will take a substantial amount of time to actually move once we have a new place want to go to okay all right so the. Probably after the two years and you probably won't need the preparation going forward but you'll need to two years you thing just to make sure you've got plenty of time to get the move done yes okay all right thank you. Representative Cavenaugh you're recognized thank you Mr chair my question is on page one thirty three the State Farm grant. That's got just a very minimal but excess ballot fund balance in it doesn't appear we really use this sometime the only had sixteen dollars in it last time what are we using this for. We have a our state geologist Scott auspices in the room but that's an actual award or grant that ATS received from farm bureau. Not our state farm and that is used for Scott if you want to come up here in an elaborate but my understanding I wouldn't use it last year because of COVID related issues however this is just a everybody understands this is actual grant that AGS received to do this particular work. Scott also Brooks director in state geologist yes ma'am yes so what what is this. A state of the State Farm has a an outreach program there to educate bring awareness to disasters earthquake is one part of that we had this one for for many years and we've used it and it's being utilized for education outreach pamphlets handouts holding town hall type meetings and stuff the pandemic is definitely put a crimp on that and so that's what you see the decrease also we we we send men reporter for we've done to this point as far as our reach who we talked to how many folks of like that at this point now we're kind of the we respect out State Farm. As far as the next thing we would what we would do is we would say okay we've done this amount will re apply for another five thousand or something like that could continue this mission okay so you're grants are five thousand dollars is that what they historically have given them about that I think we this is the third one if I'm if I'm correct in that ma'am I can get those numbers for you if needed but it's it's typically five to six thousand dollars okay thank you yes ma'am and I have one question madam chair Page one thirty seven talking about the move how long the project the moved to take you. I think the move as anticipated the staff has already been moved now as far as the the asset moved as a our chief counsel mentioned there's a sick extensive amount of materials that have to be moved in there and somewhat I guess tenuous conditions so we want to make sure they get moved in a sound way we believe it will extend into the next fiscal year but hopefully the completed as as the members within the next you know within this two year biennium so you're thinking you'll be done by the fiscal year twenty twenty five. Yes okay thank you to change your will elaborate on the representative when you're recognized for a question thank you chairman. I needed clarification on your Positions you have the thirteen actual the budgeted fourteen now you're asking for twenty is any of that twenty the additional that you moved out of let me ask you if of to clarify from us sale. In in the central office or the shared services us a hundred nine and you're cutting that to sixty six nine six of those. It's coming for this is that where that's coming from yes that okay are you in and are you moving the salaries and the funding yes down there to compensate. Yes another word used in the shared services and added to so there's thirty three reduction is. Moving your shared services back out into the. Bill and then that's why you see an increase on the other side looks like an increase with increasing the Basil is not new positions that you're asking it's all net neutral okay all right have yes. The and hello this is Joe you don't have any of. Any but we only have three that's over two years like in in any to the your central office or what are you what we used to call that the central office yes the same thing you're doing of commerce will after they had thirty five in the central office well if we had three so thank you Mr chairman thank you will thank you thank you representative makes a recognized for a question I want to make a motion for executive director okay there is a second all those in favor say aye. And opposed ayes have it Executive wreck motion carries moving on thank you. we have Mr perish the liquefied petrol petroleum gas forwards thank thank you madam chair we're we're on page one hundred forty we are still within the department of energy and environment this is the liquefied petroleum gas board. Thank you. The board this board forces laws and safety requirements to regulate the manufacture sale installation and use of containers and equipment in the storage transportation dispensing and utilization of liquid petroleum gases on page on page one hundred forty eight shows state contracts were to minority owned businesses and employment summary and publications. Well the next page one forty one is there the first request this is for their operations and to provide for the administration of the division it's supported by special revenue fund. On page one forty two is there operations summary in twenty three four hundred fifty five thousand was authorized for twenty four the requested six engine twenty five thousand that the thirty seven percent increase that's for both years the biennium and the executive recommendation provides for this request looking at the change levels on line items the first ones regular salaries two hundred thirty nine thousand is authorized the request is for three hundred thousand that the twenty six percent increase. The next line item is personal services match eighty two thousand was authorized request is four hundred eleven thousand that the thirty five percent increase these are salary matching Justin's and reallocation of one position from shared services the next line item is capital outlay what was authorized between three with zero request for twenty four and twenty five is eighty thousand and this is a purchase vehicles looking at foreign sources the table at the bottom the fund balance going into twenty two was one point seven million the fund collected special revenue in the amount of six hundred sixty five thousand that's fees for inspections permits and licensing the board spent four hundred forty four thousand twenty two that leaves a balance of one point nine million going into twenty three. Measure that sealer quest. All right are there any questions from members of the committee. Representative Cavenaugh. Thank you madam chair I'm going to deal with page one forty nine the well plugging program. We're not there we're not there yet all sorry okay. The pages one forty two and the other questions art scene under have a motion for motion Executive rack. A second all those in favor say aye. And opposed ayes have it motion carries I'm moving on to on gas commission Mr perish. Thank you ma'am chair on page one forty three Page one forty three this is all in gas commission within prevention of armaments this commission protects us our protects the rights and interests of mineral owners and regulates oil gas and brine production industries to ensure compliance with the state and federal laws on page one forty three through one forty four and it shows the contract award minority owned businesses and employment summary and publications. On page one forty fives the Department preparation summary the total authorized in twenty sixteen point nine million of the Commission has three appropriation request only one has a change level again the total authorized budget was sixteen point nine million spending forty the Commissioner quest almost seventeen point five million for the biennium that's a three percent increase executor recognition provides for that request and the Division is funded primarily from special revenue that's fees paid by or gas production companies. Are there any questions okay because sorry are you finished no go ahead the first teams level begins on page one forty six this is the operation section price for the administration Page one forty seven is the summary of what was authorized in twenty three was four point two million the request in twenty four as four point seven million that's a thirteen percent increase for both years the biennium exactly recommendations provide for that request the change levels begin its regular salaries one point five is authorized one point eights requested the nineteen percent increase personal services match five hundred thirty seven was authorized six hundred eighty two was request that the twenty seven percent increase the salary match just minutes into reallocation of four positions from shared services nexus capital outlay seventy five thousand is authorized hundred sixty thousand this requests at doubles and that's a purchased two vehicles looking offense sources the females going to twenty two was thirty seven and a half million the phone collected special revenue them out two point seven six billion that's fees permits assessments on taxes I'm sorry says within taxes levied on salt water using chrome on production and Division spent three point two million and twenty two that leaves a balance of twenty six point seven million going to twenty three and I'm sure that is the end. All right other questions representative Cavenaugh you're recognized thank you madam chair now I'm going to ask about the well plugging thank you so I noticed a member we did the ten million dollar one time transfer can you tell me how that's going and what our projection is going to be free you know being able to move forward with that. Yes the ten million as a state transfer of funds we also have now receive some federal funding for a specific well plugging program as well but. As far as specific update saying would you like to give her an update on where we are and I we've been getting contractors in place which is challenging right now that can carry out that work in a time efficient manners. If you know my real quick can you tell me how much federal funds we actually got because I wasn't aware we actually got some money from the federal help the states so long story short what's happened in the past year is under the infrastructure act on gas commission received five million dollars in federal program or federal monies for specific well putting program and Stevens Arkansas okay I'll C. approve that last week on Friday that is really kind of taking a lot of our efforts into making the application for that we do have our state plugging program going on we've been adding contractors and realistically speaking because of weather conditions will start plugging with both programs in the spring and is at the heart of blood well as the winter with rain express do we have an approximation of how many we're going to plug that we've got lined up so in the in the state side the abundant abandon or from well plugging program we have about four hundred wells I knew it was a quite a number so that's why this Stephens project there are a lot of unidentified wheels but we estimate about two hundred thirty on the federal side for that project okay thank you. All right see no other questions of motion and second all those in favor say aye opposed ayes have it motion carries executive right is adopted all right moving on. Thank. Thank you all thank you for being here and then again if you'll just get with the individual members of the of the of the House or Senate with their questions that would be appreciated thank you thank you chair I know isn't complicated budget we appreciate your patience and we'll look forward to responding to that question thank you thanks. All right Mr Penman. Department of transformation insert shared services if Mr Mitch rouse wants to head to the table we would welcome you. Sturman you're recognized. Right. Thank you madam chair. We will start with department of transmission shared services our first section begins on page one fifty two. With the Department preparation summary on page one hundred and fifty three. There to appropriations you see one of them has changed levels other than caring for salary in match adjustments in the current biennium. The agency is requesting a total appropriation of four point two million for FY twenty four in FY twenty five and the executive recommendation provides for the agency request with the exception of a position re classifications and the associate appropriation. Our first appropriation begins on page one fifty four with an appropriation summary on page one fifty five. This is for the secretary's office and it's funded by state Central Services. And is there to help create more efficient government through improving service delivery and collaboration across state government. The agency's requesting appropriation in the amount of seven hundred twenty eight thousand dollars for FY twenty four seven hundred and thirty one thousand for FY twenty five and the executive recommendation provides for the agency request. Our next appropriation begins on page one fifty six with the appropriation summary on one fifty seven. This is for their administration appropriation this provides for the administration of DeCSS. And is also funded by state Central Services. The agency is requesting a preparation in the amount of three point five million for FY twenty four and FY twenty five and if you look at the summary on page one fifty six their request includes a number of changes. Including various personnel changes including transfer one position a discontinuation of one position and then an increase of twenty extra help positions with an increase an extra help and personal services matching each year for the Arkansas Public Service internship program. And the executive recommendation provides for the agency request with the exception of a position request a position reclassification is an associate appropriation. Madam chair the conclude my presentation for DeCSS administration. All right thank you representive Springer you have a question. Yes ma'am thank you hello I'm interested in the internship program that you're requesting the twenty positions one of the call qualifications and is is there information somewhere that someone can find out about the program. This this is Mitch rouse secretary TSS yet we can get you that information on the internship program that started last year so we've had two rounds of it where we bring in turns and in the summer spread them out over several departments including the governor's office and there's usually a sign up period at the beginning of the year so starting in twenty twenty three they'll be time or we're trying to recruit and and get some folks to be part of that program what are the qualifications for participation I think just you're in college right year in college and you're interested in state government there's an application process where they list the departments and particular skills that they might be interested in and then we try to just take those applicants and place them at departments where they have openings you know usually about two or three interns with the Department I believe last year every applicant we got was accepted right now close to. Close to almost every applicant we got was except the so I'm sorry madam chair last question so explain again how is it communicated to the public so persons will lower down they they put it out on our website they put it on job boards they put it out on any kind of you know open position market that we can do we try to go to colleges and and recruit there and and of course we'll use anybody here in the legislature if they want to promote somebody they have somebody that might be interested thank you. Thank you okay are there any questions other questions motion for executive rack second all those in favor say aye. And oppose ayes have it motion carries. person wouldn't did you have a question I'm sorry. Okay. And maybe non Mr Penman we have Arkansas geographic information. Thank you madam chair our next preparation begins on page our next Division sorry begins on page one fifty eight this is geographic information systems division the appropriation summary is on page one fifty nine. And as you can see they also have to appropriations one of which has changed Littles. The agency is requesting three point three million for FY twenty four and FY twenty five. And the executive recommendation provides for the agency request with the exception of various personnel changes and half of a requested increase in operating expenses in their operations appropriation. Our first appropriation on page one sixty with summary on page one sixty one this is for Jio storing framework appropriation. This is funded by the geographic information systems fund that consist of funds approved by the General Assembly carry forward from geographic information systems operations appropriation federal funds and any other funds available by law this is used to carry out the duties responsibilities and authority of information systems and create update and maintain the Arkansas spatial data infrastructure. The agency is requesting to continue their preparation the amount of one point two million for each fiscal year and executive recommendation provides for the agency request. Our next appropriation begins on page one sixty two this is their operations appropriation the appropriation summary is on page one sixty three. This provides for operations of the office and it is funded by a gentle revenue from its ways agencies. The agency is requesting a preparation in the amount of two point one million in FY twenty four in FY twenty five and general revenue funding in the amount of two point one million for FY twenty four in FY twenty five. They're on page one sixty two you'll see the following changes they're part of the agency request. Including a transfer of one position a very personal changes including reclassification upgrades increase of the general revenue funding an increase of four hundred fifty thousand dollars in their operating expenses to support digital aerial photography. The executive recommendation provides for the agency request with the exception of the. Various personnel changes that would include re classifications and upgrades and four two hundred twenty five thousand dollar increase in their operating expenses and executive recommendation also provide for general revenue in the amount of one point three million for FY twenty four and FY twenty five. And madam chair the conclude my presentation for GIS all right thank you are there any questions. Representative Cavenaugh you're recognized thank you madam chair dealing on one sixty one the jail store. Can you explain exactly what we're doing with that we got the explanation but what does it actually do thank you see can come up. Good morning shall we Johnson director of GIS the the actual technology is our our online warehouse of geographic information about Arkansas and then the Fund we use that to develop new framework information that's commonly used by all of the other departments and divisions and in state government as well as cities and counties so within that library of online information we have our aerial imagery tax parcels all sorts of different boundaries are election geography things like that so it's a place where all of our different colleagues in the various departments can come get get that information use that information we try to keep it updated all the time do we have that that are self or is it outsourced for some of the more sophisticated work like the aerial imagery we outsource that that's some very sophisticated work but most of the other work we in house that the good example that would be our municipal boundaries so if Walnut Ridge done annexation tomorrow we would run that through and we've mapped that out and then put it into the system next month's update the municipal boundary for the city okay thank you. All right thank you any other questions staying none motion and a second for executive rack all those in favor say aye opposed ayes have it motion carries for executive right thank you moving on to the next. Mislaid law. Thank you madam chair our next appropriation next Division sorry is going to be Building Authority Division they're it begin on page one sixty five with their appropriation summary on one sixty six. Agency the division has nine total appropriations. The division is asking for sixty one four point one million in FY twenty four in FY twenty five and the executive recommendation provides for the agency request and in the interest of time I can only go I can go over those appropriations that only have changed levels. Okay. The first appropriations change level is going to begin on page one sixty nine this is their state operations appropriation the preparation summaries on page one seventy. This is funded by general revenue for miscellaneous agencies and it provides for the operations of the Division of building authority that includes administration leasing architectural construction finance engineering and building maintenance. The agency request includes the following changes asking for various personnel changes including discontinuation of two positions including a decrease in regular salaries personal services matching and a decrease in general revenue. The agency's requesting appropriation amount of two point one million for FY twenty four in FY twenty five and the executive recommendation provides for the agency request. Our next preparation with change levels begins on page one seventy one with appropriations summary on one seventy two this is for building maintenance this is funded by rental income and reimbursements from the DPA operated buildings and sports for the property management function of the Division. Agencies requesting appropriation and the amount of two point one twenty one million dollars for FY twenty four in FY twenty five and their quest includes the following changes of discontinuation of six positions with decrease in salaries and match along with the various personnel changes including re classifications and executive recommendation provides for the agency request with the exception of position reclassification. Our next appropriate with change levels begins on page one seventy five with appropriations summary on page one seventy six. This is the Justice Building operations appropriation this provides for operations of the Justice Building and as provided and funding is provided under special language provision for transfer some states it'll services to Building Authority. The agency's requesting appropriation in the amount of seven hundred thousand dollars for FY twenty four in FY twenty five and they're request includes discontinuation of one historically on fill position with appropriate writ with accompanying reductions in salaries and match and executive recommendation provides for the agency request. Our next appropriation with change levels will be on page one seventy nine. This is critical maintenance any appropriation summaries on page one hundred and eighty. This is used for critical maintenance of building authority owned or operated buildings with funding coming from rental income paid by state agencies housed in the VA operated buildings. The agency's requesting appropriation of six point five million for each year of the biennium which includes an increase in their critical maintenance line item to allow the division to reinvest in repairs and improvements to me tenant space needs as they arise. And manager to conclude my presentation for Building Authority. All right thank you represent Cavenaugh you're recognized for a question thank you manager my questions. Probably won't be for the agency. Okay. Bill to come to the table identify yourself for the record you may proceed. In late law director division of building a forty. Thank you for being here. Yes my question is going to be on the one of my first questions is on the Justice Building construction on page one sixty eight how long is that construction going to last. We had hoped that it would be finishing up before the end of the calendar year but it looks like it's gonna run over into the first few months of the new calendar year so we're hoping in later in February the project will be completed in twenty three yes ma'am. Why are we asking for appropriation and twenty four and twenty five we have we as long as we have the bond funds and we have those funds to spend they just carried it forward just because we don't know how long of those funds will be available if we don't expand all the funds are still available to continue to make improvements in the building there were some areas and that project that we're not going to be completely finished out based on a pricing that we had at the time but if we still have bond funds that are available they will be able to continue to finish some of those areas that may be left unfinished otherwise. Well how long do you project those bond funds to be available we have several years the bond funds are available I don't have the exact date that those funds would expire back there is a date that we would have to expend before they were I returned okay so do you know how much of the bond fund you're going to have available. Right now it looks like we're probably going to expend all the funds okay so the question I'm asking is that why we need to fifteen point two million dollar appropriation. If you even said your bond funds for eight million dollars. At the time that we were preparing the budgets we didn't know where we were going to be with the construction and change orders and so that's just something that's progressed over the last few months okay so for two twenty three twenty four we could reduce that from the fifteen point two probably down to your eight million for the year bonds do you even need it for twenty four twenty five. At this point I hate to say that we don't but certainly if we don't have any bond funds last we will be spending anything but we can also reduce that to eight million dollars because that's what your project your bond funds are you asking for fifteen point two yes would you be opposed to that motion. If it's if it's what we need to do is certainly work thank you I'm manager I have another question please. Okay this is Dylan a one seventy two which is the building maintenance. On our operating expense it looks like I her store expand its been about seven point three million and we're asking for sixteen point I mean thirteen point six I don't have my glasses on so my numbers are running together why are we needing so much over that. I'm our budget is basically sat based on the agenda the revenues that we will gender generate their recollections buildings obviously continue to have significant repairs maintenance and replacement seem to be done as well as numerous capital projects for tenant improvements so as long as we are collecting the funds were trying to keep our appropriation flexible so that as we need to continue to make that is I improvements in our buildings we have the appropriation of okay that brings up a question did you have a fund balance yes ma'am at nine point nine million dollars and it appears that it will continue to grow. So if your fund balance continues to grow why we need because you have available so what are we going to do with the fund balance how's it could be used to be on this we transfer or savings to a capital reserve there's another Fund that's listed here that's are critical maintenance we actually transferred to that fund so we can make capital improvements I said that's a self funded by us fire savings that we generate your operations okay that happened to bring another question I've had about critical So my question is on your this is actually an acquisitions and maintenance. And you have that you're requesting construction maintenance two point five million dollars what are we looking to construct we are not right now okay you just put that out there is a place holder in case you need what would you professional face B. for one point five million dollars. For one point five million yes there was based on a project that was actually proposed several years ago that we did not complete so that has continued with that project I think it was around ten million. The reason I ask is your historic spend is one point three million dollars in that area and you're asking for four point three million dollars which is quite a bit over what you're her store expand has been right we just have not been acquiring buildings or that fund for so for some time okay purchased some land but that's it we haven't done that in awhile okay. madam chairman I have a motion at the proper time. Not come back to you then I representative wouldn't and then I have thank you madam chairman of missile law on the page of one sixty six I'm a little confused You you show actual positions of sixty one. You show authorized of seventy two but on the report I have you show seventy one vacancies of me I'm sorry twenty one vacancies which would make it a total number eighty two but then. You're you're cutting your showing you're just requesting sixty three so what. I can quote follow what you're trying to do here. And I may not be able to answer questions very well this is since that's in the H. R. on the personal side of things but at one time or agency had personnel around eighty two we have not been able to feel and have not tried to fill a lot of those positions for some time Jackley as we've gone through a transformation so we've offered to return positions that we have not filled for several years we still have a number of positions to fill because within our building operations and maintenance we staff all those buildings with staff we also have skilled trades so we're continuing to try to fill positions we have quite a few right now that we are trying to fill it with a a su were okay what when when the when the. with what you just said. These ten positions I have attended been vacant for over two years is that ten you're giving up yes Sir so that would that would that up to eighty two okay stress yes all right so you relinquishing those team yes Sir okay thank you thank you madam chairman a clear that the. Senator Chesterfield you're recognized yes thank you madam chair to the chair just to representative Cavenaugh could you show me tell me the page in the nine number you're talking about reducing to eight million dollars. Okay that's a question for represent Cavenaugh yes senator sixty eight I believe senator Chesterfield it's one sixty eight sixty eight yes there bond proceeds or eight million dollars and that's really all there that they would be able to stand because we're almost done with the project so leaving them enough appropriations so if they did have some bonds proceeds left over they would be able to spend them into twenty four and twenty five okay so the bond proceeds or eight million yes ma'am and we have the construction at the top at fifteen so you're not talking about cutting the fifteen to ninety eight are you yes ma'am I'm their appropriation eight because we're going to be done with the building by early next year March twenty she said March of twenty twenty three so there's not really anything left in the construction per se for these years and then she said that they were going to be using if there were any bond proceeds left over they would be using those for some additional maybe something inside the building they need to be repaired but the she doesn't project they're going to have any of these bond proceeds left over but I'm willing to give them the eight million dollar procreation in case they did. All right then choose the agency. Is a law yes ma'am and what what was the request for fifteen to nine. And the executive director is the same if the money is not needed I need some clarity there because I I worry when we start cutting appropriations and then we bring that will work for ourselves to do later so help me understand how you got to the fifteen to ninety. I am don't know that I can answer that question clearly for you I know at the time that we were planning this the project was under designed we were not sure what our bond issue was actually going to generate and funds that cash fund also is what we receive the funds and to repay to the bonds so it's not just money that we're using to spend for the constructions also repayment of the funds is sent to the fifteen was conceived as a part of every cognition combination of the two so if we cut it to eight are you gonna be able to repay the loan yes ma'am you will be able to yes so you don't need the money we don't need fifteen million okay then what you ask for. Yeah I think it was a timing matter of we were in the process of getting the bond proceeds for that project as well as the bond current bond debt and we aren't we aren't the bonding authority that's under development finance authority and so I think it was just out of caution that that number was probably more generous than needed because of the time we didn't know. Okay is there anything built in your for maintenance and operation yes ma'am that's down under under Justice Building operations for us to operate the building includes the salaries and staffing there and then the maintenance is also for of capital projects that may come up with mechanical replacements and things like that so there are two other funds that allow us to operate and maintain the same so would the fluctuation of the market the fluctuation of materials. And difficult yes ma'am. Thank you already done done the due diligence yes ma'am the price so we we're not having to deal with that kind of fluctuation is that what you're telling yes ma'am I think at this point where we are with the construction project as that we That's why I do not think there's going to be much bond proceeds left because of the construction cost of the changes that we've gone through with this contract you can fly into thank you manage your motion to property designate whatever I mean I was going to D. F. and I is there and you have any input input in this. Okay you got a good with it okay thank you have not had a few more questions and I'll get back thank you okay we're Leding representative Cavenaugh thank you my question's going to be dealing with page one eighty two which is a sustainable building design revolving loan program. I don't see where an historic that we've spent any of that money since fifteen sixteen. Can you tell me how much outstanding loans that we have. And I cannot give you the exact amount we have we do probably have about six outstanding loans that are still repaying they have a ten year period to repay those funds so one of our line items is reflecting the light payments that we receive something there's probably about six active lines still out there do you know how much those loan balances are no ma'am but I'll be happy to get that okay because I'm wondering if were not given out new loans why we need ten point seven million we did that based on the the lines of funds that are available in the program right now that can be learned the we have not had many requests for that money lately I think it's probably just the a period of change impacts aren't really sure a lot of more interest has come from our institutions of higher education where they have to sell these on their campuses they do need to but that money is restricted to energy projects that have to show at least a ten percent decrease in their energy consumption in order to qualify so does near the pool of projects that are eligible for that fund in this fund balance can they be used for anything else or that has to be used for this program at all yes if we don't have the money after several years nobody's asking there's nothing in that allows us to use this fine balance somewhere else no man that those funds can only be used for that program. Thank you I mean unless you change the law this is a federal money right that was where a lot of our of funds that were used to fund that yes ma'am okay all right all right see none Senator Chesterfield you're recognized for motion. At okay sorry representative Cavenaugh. Okay we're gonna just. She's going to install that representative Cavenaugh think we're on the same page well later I had and take executive wreck with the change of one sixty eight of their construction down to eight million dollars on both years twenty three twenty four and twenty four twenty five okay so if you look at page one sixty eight line item under construction at the top. From the fifteen point two nine. Agency or executive recommendation would move to eight million instead of fifteen point two nine is that correct representative Cavenaugh yes okay that's the motions are second second all those in favor say aye opposed ayes have it motion carries exact with that change thank you all right moving on Mr Penman we have information systems. Thank you madam chair our next division this is going to be information systems division this it begins on page one eighty five with their appropriation summary on page one hundred eighty six. The Division has to appropriations one of which has a change level. And. The agency is requesting a total of a hundred and five million for FY twenty four in FY twenty five. And the executive recommendation provides for the agency request with the exception of various personnel changes that include re classifications and associated appropriation. Our first appropriation begins on page one eighty seven and the with the appropriation summary on page one eighty nine this is for their operations. This is funded by the information systems revolving fund and this is funded by nonrevenue receipts derived from services provided to various agencies of the federal state city and county governments. The agency's requesting appropriation any amount of a hundred one million for FY twenty four and FY twenty five and on page twenty seven you'll see the list of various change changes to their agency request including various personnel changes. And on one eighty eight they have an increase of two million dollars in their operating expenses to better align expected gross and they're opportunity data center operations telecommunications and cybersecurity Services and the Division is also asking for an increase of one million dollars in the capital outlay line item to better align with current purchases. And the executive recommendation provides for the agency request with the exception of position re classifications and associate appropriation. Our next appropriation is going to be on page one ninety with summary on one ninety one. This is for equipment acquisition. This is funded out of the information technology reserve fund. And the Division utilize this a preparation for major equipment acquisition and information technology improvements as stated in law. And this reserve fund the division is authorized to accumulate a reserve for equipment acquisition the breaks down in more detail the revolving fund on page one ninety. The agency's requesting to continue appropriation and the amount of three point five million for each year the biennium and the executive recommendation provides for the agency request and madam chair that includes my presentation for information services RK represent Cavenaugh you're recognized for a question thank you ma'am chair this is probably for the agency will answer these questions thank you. If you'll state your name for the record thank you. Good morning Jonathan Askins Director of the Division of information systems thank you for being here my question is going to be dealing on one page one eighty nine operating expenses your actual spend is eight point two million and you're asking for eleven point two million why are we needing that much over our actual spend. So as we. We have created a new data center out our data center west we've modernized all of our equipment as we are going through that process we feel like that we will need those additional funds for either additional networking additional equipment additional cybersecurity to support that data center. Okay and is that included in your data processing because you're increasing that from an actual spend the two point seven and asking for eight point four no ma'am that is not included in the what is going to be included in the eight point four in the. Just a moment please. Again our CFO up here. If your state your name for the record thank you for being here good morning Patty ship the I. S. and TSSA five so we did not ask for an increase on that line that is the same amount so there's no change there that data processing GL is very specific so you can only pay for very specific items using that G. L. as you can see we didn't use that so we would not be adverse to lowering that particular one we did not ask for an increase it just remained constant so with the five million dollars do you okay and that data processing yes ma'am it would correct and if I may ask another question on your telecommunications and technology or ask and and it's the same appropriation but your store experience been like about forty two million or something like that. Are you looking to invest into war telecommunications above orchard spend this man. Yes ma'am we are as we. As we grow through our K. twelve that work we continue to have increased demands on data per student so we will need to to continue to invest in our telecommunications yes ma'am okay would you have to invest. Seventeen million more each fiscal year to be able to do that. Over your spend your spend is forty two million you're asking for an appropriation of fifty nine million so are you saying and each fiscal year twenty three twenty four and twenty four twenty five you're going to spend an additional seventeen million on telecommunications. I'll need to get back with you specific on specific numbers what those that break down is if you don't mind I appreciate that I can do that and. One follow up question also this is going to be on paid. One ninety one on your equipment acquisition just water what is this fund used for for equipment acquisition because we've got Quitman everywhere so I'm just curious. Yeah. Allen said that it so this fund is specifically utilized for repayment of R. as a loan we transfer of money from our operating which is we call the inmate CO one hundred which is that's the fund name so if sure we transfer money from that in an amount that is needed to pay our ads alone back or any. Specific purchases that would go through that fund and those are Are available only to the extent of our depreciation amount so in essence it's for utilizing replacing equipment that has depreciated depreciate it out over the years yes at a five to seven five year depreciation thank you madam chair I have a motion at the proper time. Representive wooden you're recognized for a question yes I'd like to talk about your personal bill on page one eighty nine. Of. A notice on the you have a hundred eighty positions right now. Actual Page average of sixty thousand dollars in the in the request is two hundred and seven positions for seventy two thousand is a is that correct yes Sir what what percent do you used for your personal email service managing my matching numbers what percentage is thirty one eleven thirty four a and then the the current one or the request is thirty three percent. Of the total. So you use thirty four a million you average around thirty five percent. All. Okay we'll follow up with the money on the on the on the the numbers don't add up I I would I show of the report I have here that you had two hundred sixteen positions are authorized you have a hundred million nine positions that you were using this US shows a hundred and eighty. But thirty thirty seven thirty seven percent. Of your sixty five agencies. Of our over two years old and but when you have the one eighty nine in the sixty five that comes up to two hundred fifty four positions so what what is your what is your employment number over there. Is it one eighty one eighty nine or. We may need miss Kate help us on this but I can tell you that for the authorized physicians of two hundred sixteen we only had we only budgeted a hundred and eighty nine of those we had to under budget some for this year because of our receipts. and so we have to stay within that a hundred and eighty nine budget we also have many positions that we try to feel that historically are difficult to feel because they are technology positions and we're competing with the public sector it makes it very difficult for us to track that talent. So are you are you asking for additional. Twenty seven we actually gave up positions twenty seven we we gave up nine we trans nine seven to other agencies business areas within TSS and two we completely asked not to have back in all. So so is the twelve thousand dollar increase in pay because of the market conditions absolutely yes thank you thank you representative Cavenaugh you're recognized thank you madam chair it's for a motion if it's at the proper time it is thank you I like to make a motion to accept it Executive wreck with the exception on page one eighty nine on their data processing taking that to five million dollars. On okay. On data processing services. Okay so. Okay so members page one eighty nine that you're looking at data processing services is currently at eight point four million and you want to take that to five million that's your motion correct okay is there second second all those in favor say aye and a posed. Ninety. A one. I apologize okay. I think you said that it was gonna be acceptable for that to occur okay. All right thank you motion carries. Okay maybe nine. To miss statewide shared services. Mr Penman you're recognized. Thank you madam chair our last Division forty TSS today begins on page one ninety two this is state wide shared services and you'll see their appropriation summary on page one ninety three. There are four total appropriations being heard today two of those have changed levels other than caring for salary in match adjustments from the current biennium others for being heard the agency is requesting a total appropriation of thirteen point five million for both FY twenty four and FY twenty five and the executive recommendation provides for twelve point seven million for FY twenty four and twelve point eight million for FY twenty five. Our first appropriation will start with begins on page one ninety six with appropriations summary on one ninety seven this is for OPM and OSP operations. This provides for operations of the TSS OPM and state procurement providing state agencies with assistance and expertise and personnel purchasing added Mr administering statutorily required controls and this is also funded by state Central Services. The agency is requesting appropriation in the amount of seven point four million for FY twenty four and seven point five million for FY twenty five. And includes. Various personnel changes. And the executive recommendation provides for the agency request with the exception of reclassification an associate appropriation. Our next appropriation is on page two hundred with appropriations summary on two hundred and one. That's for state wide shared services the. Travelcard purchasing card this is funded by a miscellaneous revolving fund and is used for rebates for from vendor banks distribution to participating agencies and for operating expenses connected with the administration of the purchase in corporate travel card program. The agency's requesting to continue their appropriation and the amount of four million dollars each year the biennium and executive recommendation provides for the agency request. Our next preparation is on page two hundred two with appropriations summary on two hundred and three this is for the marketing and redistribution appropriation this is funded by the property sales holding fund which comes from fees charged on goods and services offered through the marketing and redistribution warehouse. The agency request includes a. Various personnel changes which include re classifications. Is requesting appropriation and the amount of one point four million for FY twenty four in FY twenty five. Any executive recommendation provides for the agency requests with the exception of the position reclassification and the Associated appropriation. And our last appropriation it's being review today this is. IT expenses that begins on page two hundred and six with appropriations summary on two hundred seven. This provides for data processing development implementation and has been in operation of IT within the TSS and it is funded by state Central Services with the agency requesting to continue six hundred thousand and appropriations each year the biennium and the executive recommendation provides for the agency request and madam chair the conclude my presentation for statewide shared services. All right Sir for representative Cavenaugh you have a question yes thank you madam chair my question is going to be on page two oh one on that the number of travel cards on the the agency probably or whoever can answer that. My mate right yes yeah yeah my my question is and how many of these cards do we have throughout the state that's being used. I can get that number to you I don't know it off the top of my head that they issue on to you know each department issues you know the number P. cards that they want to issue to their employees and it kind of fluctuates between each department but I get to that total number if you could given that total number I'm because I know it says that each cardholder is two thousand dollars per cycle so I'm just kind of curious how many of those we actually have. And one final question is on page two oh three this is a fine balance that continues to grow. We don't we not it just a growing fund balance. What can this fine balance be used for. So the fund balance in in our is it's a revolving fund so proceeds coming in and then they're just drifted out to the agencies that are brought in items to be sold we were in a calendar some dire straits and in our couple of years ago there were some changes to their funding and so their balances now be coming much more healthy there are several the light maintenance items that need to be done at the facility we've actually started some of those over the last year one for instance is there's been a great need for circulation of air through that warehouse especially in the summer months and we are doing a project to install permanent large fans in those areas to bring a match were satisfactory working condition for the people that work out there so there's quite a bit of deferred maintenance that will be accomplished over the next couple of years their. Because it just over the next couple years it continues to grow outside just curious if that's all it can be used for others is there a restriction on it that's why I'm kind of yes it's for operation of of the in our facility and. The payroll things that okay that are associated with in our okay thank you. Is there someone here with women are. Well technically it's under me but I can I can help answer questions that was unsatisfactory I didn't know it is just I have a question I have if we have I'd like to be able to. well I'll just get with your offline sure. I representative wouldn't. I have some questions on your personnel first sure services. I notice that you have sixty six current employees your average of paying fifty five thousand you're requesting seventy four. In the next of biennium five point two eight three million that's that's seventy one thousand. Incluso sixteen thousand dollars an employee. Okay. I have a direct bond how come up and she thinks she's got some answers. This state your name for the record. Okay you may proceed. Thank you K. Barnhill state personnel director. Okay the positions you're referring to Mr wooden. Seven the home page one this is on page one ninety seven sixty six sexual positions or request and seventy four there's a sixteen thousand dollar differences or. Yes six of those positions we are transferring from the Department finance administration and they are to work on the asus system on our on our human resource information system or transform from DFA's to their technical at two positions with a higher salary which is probably because the rights that you're mentioned okay which would you have so. You have. Of those will work. You have forty three vacancies. Going to port the toning out for me all. Mr Barnhill for the entire department right forty three forty three Lincoln city's what are those positions. The bacon positions they range from administrative specialist we've got You know some T. at TSS ERP analyst which would be like a technical position I'm talking about right now there's they're all kind of different positions with the. So how many how many how many total positions of of. Close of those can you can you relinquish of the forty three you need to have one level. Okay of the forty three vacant positions if I'm understanding correctly were across the whole TSS Department right. And we're relinquishing one well though the total bill for removing the shared services was a hundred and thirty eight seconds. Forty four thirty two percent of those have been like it for over two years. So for the for the for shared services Building Authority information system and geographic information there are there are forty four vacancies. Thirty there are two years old right right that's a listing online so them and that one we had one that said they were given a ten. The Building services. Yeah we have a GIS is giving of several and building authorities giving up with you a committee was told. Sixteen sixteen I believe. Sixteen sixteen sixteen sixteen yes Sir all right thank you madam chairman thank you. All right thank you there's no other questions as a motion for executive reckon there's a second all those in favor say aye and oppose ayes have it motion carries thank you and with that there's no other business to come before the committee we have special language at one thirty we are adjourned.