ALC-JBC Budget Hearings

You start. On the department of motor thank you. Yes and if the department would go and come forward it makes it a lot easier. Thank you Mr chair Jennifer a pure of Legislative Research. We're gonna certain volume to on page three thirteen Sgarbi the Department of military. Give you guys a chance to get there. My answer yes ma'am. My answer. We're going to start with the secretary of the department of the military's First procreation this is the salary a match for them it is funded from general revenue. The agency is requesting about two hundred fifty one thousand for each year of the biennium and the executive recommendation provides for this salaries and match or above the authorized for FY twenty three and this is due to adjustments made during the previous biennium that need to continue. If you're okay with me moving on to the Department. Okay so we're gonna move on to the Department of military their preparation summary pages on page three sixteen. The agency is requesting about ninety eight million for each year of the biennium the executive recommendation is about ninety seven million for FY twenty four in about ninety eight million for FY twenty five. The executive recommendation provides for the agency requests with the exception of various personnel changes and I'll go over each one of those. The agency has thirteen appropriations eleven of these preparations have changed levels we're going to go to those the first one with the change level is on page three nineteen and this is their general operations appropriation. This appropriation is funded from general revenue in a fine balance. The agency is requesting about eight million for each year of the biennium. This appropriation is above the authorized for FY twenty three due to the restoration of three growth pole positions request of two positions an increase in salary imagine associated with re classifications an increase in the extra help appropriation for help in the maintenance shop during the summer months an increase in operating expenses due to increasing cost of utilities and installation of a new phone system. An increasing conference and travel so employees may attend in state conferences. There's also an increase in professional fees for armory Rick renovations and an increase in capital outlay for armory renovations and renovations of other structural structures on camp Robinson the executive provides for the agency requests with the exception of the two new positions various personnel changes and associated appropriation. The next only change levels is going to be on page three twenty five. This is the federal training site appropriation. It is funded from federal revenue. The agency is requesting about twenty one million for each year of the biennium the appropriation is above the authorized for FY twenty three due to addition of one position the restoration of two growth pole positions increase in salary imagine sociais three classifications and an increase in overtime appropriation and match to help cover staff shortages due to the pandemic and appointments. The executive provides for the agency requests with the exception of the new position re classifications and the associate appropriation. Moving on we're going to go to the third appropriation would change levels and it is on page three twenty nine. I'm going to fast yes can let me know. This is the military family relief trust appropriation. It is funded from income tax donations and a fine balance. The agency is requesting about sixty one thousand for each year of the biennium. The executive recommendation provides for this request the agency reduces preparation level to better align with finding. For the preparation is cash appropriations you found this on page three thirty one. As from a fine balance into cash fund. These cash funds are derived from rentals and fees for usage at a and facilities at camp Robinson and the commercial harvesting of timber. The agency and executive are requesting about one point two million for each year of the biennium. Fits appropriation. Is the is on page three thirty three. This is the counter drug asset forfeiture appropriation. Is funded from a fine balance and cash fund. Is derived from the sale of seized assets and or use for operations and training. The agency in the executive are requesting about a hundred and sixty four thousand for each year of the biennium this is an increase of the authorized to better align with the funding. We're gonna move on to the six the preparation that has changes as the military support revolving appropriation on page three thirty five. It is funded from a fine balance. This consist of fund transfers in deposits from federal agencies the agency and the executive requesting about two hundred forty thousand for each year of the biennium they have reduced this appropriation to better align with finding. The seventh appropriation is on page three thirty seven. This is the fort Chaffee training site appropriation this appropriation is funded from federal revenue. The agency is requesting about twenty four million for each year of the biennium the appropriation is above the FY twenty three authorize due to an increase in regular salaries and matching associate with re classifications a reduction in conference and travel to better align with anticipated ins expenditures and the restoration of two million dollars in capital outlay for construction projects and to purchase new equipment the executive recommendation provides for this request with the exception of the re classifications. The eight appropriation. You can find on page three thirty nine. This is the National Guard museum appropriation it's funded from general revenue. The agency is requesting about a hundred and fifty five thousand for the first year of the biennium and about a hundred fifty eight thousand for the second year of the biennium. The executive provides for the agency request for appropriation only with no increase in general revenue funding. The non appropriation that has changes is going to be on page three forty one. This is the Arkansas National Guard youth challenge program. This appropriation is funded from general revenue. The agency is requesting about one point five million for each year of the biennium this is above the FY twenty three authorized due to an increase in salaries and match associated with re classifications an increase in operating expenses for renovation maintenance and security upgrades for the barracks and buildings at the used youth challenge campus and to cover the increasing cost of milk plants for cadets and upgrade their current phone system and aging IT equipments. The executive provides for the request for appropriation only with the exception of the re classifications and there is no increase in general revenue funding. We only have two more left. The ten the preparation is military grants and find this on page three forty four. This preparation was created last session. The agency and the acute executive recommendation are requesting five million for each year of the biennium at this time the agency is still in search of finding and would like to continue this appropriation. The final appropriation what changes is going to be on page three forty six and this is the access control building camp Robinson this appropriation is funded from federal revenue the agency in the executive requesting about one point three million for each year of the biennium this is a reduction over the authorized for FY twenty three under the authorized to better align with finding this completes my presentation. President wooden you're recognized. You Mr chairman of. Mister Rogers this is a question for staff and Kevin may wanna answer why is there such a discrepancy or difference between agencies and internally as it relates to personnel matching services in this one for example on the page that has the secretary and it is twenty five percent. Of the celery. Hello. Hello per day own page three nineteen for the two million four hundred fifty four thousand dollars in salaries and then we've got one point one's forty five percent and I've noticed that in several budgets what was there such a difference. Should it should it all be so we use twenty eight percent okay. Thank you Mr chairman yes Sir if you look on the page right before that the easiest way for me to show you this. You'll see on page. Three eighteen. Under where it says executive recommendation the very last sentence there says various the executive recommendation is different from the answer request because it says various personnel changes including new positions every classifications are placed on hold for the new administration to review and recommend. Therefore any re classes or upgrades have not been recommended any these budgets because they're waiting for the new administration comments so that's that will be the difference in salary and match in executive rack an agency request. Senate you question president will know. No it does. I have a I understand we're holding we went over this and personnel committee yesterday but are you saying that that that's the reason they were already increased. They've already increased personnel. Management services. A budget and none. And not increase the regular budgets. Yes Sir the agency has asked for some re classes and and upgrades in this sense there is a new administration coming in the executive has not recommended any of those and that'll be the dollar difference is in the position differences personnel committee as you know is looking at all of these and does have the prerogative to change that and and go with the agency request to recommend the upgrades if the person or committee word to wait and go with executive recommendation there there are mechanisms to the personnel subcommittee where these could be requested at a later date to match accordingly. Okay follow up before Monday you're recognized. On the on your positions. thirty eight thirty eight percent of the hundred and fifty one vacant positions are a. Over two years ago. And yours is one that I found a position when we first started on this down this road is been vacant since two thousand and eight. How much of what is the age of these positions and how many of them are overs how many M. over three or four years so. Scott singer chief of staff for the military Reserve representative wouldn't What we have done in the last two years a pair that was way down some none of them should be older than two years I have to go back and look at everyone again individually however the departmental Terry is unique in the sense that out of four hundred fifty positions that we normally have a recap level three hundred thirty of those positions or federally funded and either hunter percent or all the way down to fifty fifty and so on the military and they work for a direct military supervisor and so what we do is some of those positions we do hold based off of the ever changing Department army Department Air Force budget so we try we we try to read the tea leaves every September to see what's going to happen in October on the on the part of the Army Air Force when they pass the money down of the National Guard does request those thirty eight percent or from the federal program manage requesting that we hold those positions and they're betting on that money arriving. When they hit a certain point. and and each one is different we either get rid of those positions turn them in or we move them to a different program manager that has the money the time to fund it and all that comes funding through the cooperative agreement and each one of those budget line items are twenty different Funding sources for me the either the army the Air Force so are the representation of those those vacant positions we've had for up to two years or on the military side. So so they're seventy two positions that look like that their budget and then they're seventy nine I believe that or not. Budget is that correct that is correct. And so you're saying that you hold on to those positions because of the federal. Pentagon to they let or your so what you're talking about yes Sir. To hold on to those in we hold on to him and then when then when we realize generally about two years that we do not believe on the state side that the federal government is going to come through with the funding we turn the men sometimes at the protest a federal program manager but even there's we even had a point that we say we don't believe that those will be funded again and then occasionally we have turned those and only to come back six months later to ask for back when the federal government did provide federal funding to support those positions. One more question Mister chairman of Amer what about interest I don't see any interest income shown on any of the fund balances and you have some substantial fund balances would you could you briefly explain to us why you don't show interest is a funding source when you're earning interest are you earning interest on the money. Now we know we're not earning any interest you will. Where you have the representative west we should have that interest rate down by Tuesday for all agencies we have requested it and it is come and and all of the committee will have a report on it come Tuesday. Okay. Okay just kidding it can answer the question relative to it is the money been invested. The fund balances no no represent the that that money is is in a cash account that is a that is accumulated over time for various leases and stuff like that on our military reservations so we're not we're not earning any interest on the money no we are not. Thank you Mr chairman. Senator Wallace you're recognized good morning Scott how you doing good morning. Hey I by use of. First turned out here estate out the posted in but stay at the best also quarters had a chance to watch your eye color of basic training program manager with our trouble use so you guys did a great job I think that you call those those leaders of their part of a youth program specialist yes Sir And then I can be created to a combination of a guidance counselor in a drill sergeant maybe not quite as to the sergeants and the marine corps in other places but they they do a great job you're having some trouble with turnover those guys are you. Due to low salaries we are the turnover rate those positions right now thirty eight percent they are entry level positions GS furries that deals with for lack of better term troubled adolescents yes the youth program each house program there sixteen eighteen year olds that are typically high school dropouts it had no structure in their life and they come to our program and we're the first structure they never had their lives to the adjustment for them so is is quite eye opening. every twenty two weeks we have a new class that comes in and what we call the cadre which is the military term for a. You've program specialist the cadre or the folks that are with those kids twenty four seven three sixty five they are the hands on parents for those kids that provide the structure provide organization for for most of these kids for the first time in our lives I'll be blunt we paying just three pay now they are funded seventy five twenty five seventy five percent of the money comes from the part of the R. twenty five percent for general revenue. Four years ago when I first took this job We ask for an increase to to be yes Vice we thought that was a good place to be and of course you know cost inflation things gone up since then in what came out of that arrangement was we have the ability to within twelve within twelve months after you hired a cadre member. That if they were still within good standing they would we could increase that we had we had in our budget bill then they could jump up to entry level or top in GS three pay which Moneywise feels like entry level GS five without that might solve the problem it has not. With the twenty with the thirty eight percent turnover rate it is hard. to get relationships with these kids now some of this committee members that are here today two weeks ago came out and then and talk to you challenge and there was a question from a committee member that asked one of our cadets what is the biggest impact you've had been in this program. And this male cadet said. It was a cat remember sergeant someone so. He said that is the first time he's been talked to like a person. In his short life. And those are the people that we currently have a high turnover rate so that CAD remember. Where we would love to rate retain them I can make no guarantee that that person will be here the next classes start in January. Follow up question Mr. I heard you say thirty percent turnover more than more than one of every three I don't have been in military evidence the in world and business I don't see how any organization can survive with the one third more than one third turnover How can we help you. We we have asked for To increase these positions to GS five. Help realizing his positions on hold and I know why but the agency Beals despite that that that gives us enough flexibility based off federal funding in future federal funding to maintain the people that we hire is once we higher than we have to put him through a six week training process we have some leave during the training process because they realize what they're getting into I mean they're getting into You know an environment where these kids generally don't wanna be there in the first place if you've been around around some angry adolescence you know it's kind of tough and so we seek out certain skill sets but that still kind of tough to do when as of right now you can leave the program. And then go make the same pay being a cashier at target and deal with nothing but adults and not angry kids. So we asked we went through that process two years ago and I ask is the same for this one. Thank you Scott thank you Mr. Representantes and you're recognized. Thank you Mr chair So. Especially with youth challenge program most of that is federal funding if I recall correctly is it about us three one match the it's that is correct that seventy five percent part of the army twenty five percent from the state and some of these additional positions that you're requesting was that in that program or other programs. There were there was an additional one in that program And then the other ones were us five additional that we're just matter around the department the other ones for some of the departments two years ago Department army had cut us off their I. T. backbone Department military has been living off department offenses IT system for over twenty years and two years ago they said we're not doing that across the fifty states and four territories and so we built one out a hide well as we're learning and you know more requirements especially if you challenge where were these kids come in with different needs across their academic career we had to build a computer lab that hides of other things so they can do some unique online classes that obviously we don't offer their you challenge because of that I can you know we we bought that stuff four years ago obviously there's some turn over there you know you have to update equipment there's life cycle stuff in a couple but in a position to be able to help there too so so with those with that one as well be a federal federally funded programs that a federal employee anything we do with you challenges federally funded that's correct seventy five percent so regardless of whether or not we approve this now or later Work the fed's gonna bear the majority of the cost of these these positions yes Sir okay thank you. Our culture rice thank you of lonely you challenge of clarify for me in a I got to see that the up close number of years ago very impressed with program and keep up with through legislative committee These kids are there voluntarily. My understanding correct yes Sir okay someone come in with different degrees of problems. it's a tough tough love program Lot of life changing Stephanie I talk to the kids there and some very impressive young people what what do you do if you if you have a. As a child with certain troubles that that you you are somebody sees is heading in a deal that the deuce discipline doesn't do what what what is a valuable there. What. Okay Sir what we've done this year we started a new program that is Inherently unique to Arkansas the model that is funded by the part of the army for you challenge is pretty much standard across the United States we took a step further because we recognize some of those problems and the the way the program works very briefly is it is a twenty two month twenty two we can resident course followed by twelve months out a resident mentorship program or we go out and recruit a non family member to keep you know talk to these kids taken out to lunch everyone everyone small interact with them and report back to us how they're doing for the next twelve months. The idea behind that other than keeping track of the kids especially the ones that are seventeen or eighteen that do not go back to school the idea is once they've been through the program the reason apart an army funds it because they are recruiting. what we've done for the post residential is also partner with job corps and another program called skills for launch to get these kids that are not gonna go back to school into a a career producing program see I have some kind of trade school or something like that US job course actually free skills to launches free so we've been looking for those kind of programs that is post residential what is unique that we've done this year as we started partnering with organizations that wanted to come in in resident. So when you have a kid that comes in and is not responding to the cadre we bring in other adults we have just recently we went out and send the kids that Hey I don't know how to ride a bike. We took some of the some of the state money from our cash account went out bought bicycles for these kids and we brought in a mountain biking clubs with mountain bike trails out there that are all interacting and teaching these kids this kind of stuff and they responded another great organization we partner with is a hundred black men they'd come in and help tremendously with the two male platoons talking to those kids and we have shown we have seen some results of these kids responding to people other adults that have no connections to them that are just there to help these kids minus the cadre that still wake up take a shower go eat basically running their lives like you said Sir that tough love some of the kids responded that instantly other ones don't so we brought in what we call residential guys which are just mentors not to be confused with post residential mentors to see if these kids would respond to another adult and so far that's that programs paying dividends is the first time we've done it we can't and we plan on continuing to it and I think we're the only state out there the forty challenge programs that does that right now. Thank you I appreciate that information I appreciate your program thank you. Representa Springer you're recognized. Good morning thank you Mr chair good morning colonel opinion I was one of the representatives that is that your side of a couple of weeks ago and I too was impressed with your youth challenge program my question has to do with the follow up with respect to representative woman he was talking about the certain positions and personal service managing on page three twenty five of your. Appropriation icy of. That the Number of positions that we have here from twenty twenty two to twenty twenty three the recommendation remains the same for twenty. Twenty three twenty four ninety six positions I see how the amount has gone up. Well I'm approximately six seven hundred thousand dollars and I was just wondering. Why or how did that come about that amount. You have an increase from of twenty twenty three from five five point one million to five point eight million in personal services matching yes ma'am a chunk of that is with extra help positions. So that does include well you the extra help position remains the same to basically. I answer that yes that I'm trying to follow. The extra help positions as the ninety six positions they are requesting three hundred and fifty four positions which is three positions over the authorized for FY twenty three the executive is requesting that three hundred fifty three so that extra amount that you're seeing in personal services will be for those extra positions and other things that need to continue from the year before okay all right thank you you're welcome. Representive in you're recognized. Thank you Mr chair Major General paying in are you doing that I say that right. Major General Pat and he's secretary yeah I'm sorry I am nervous he he couldn't be here today he got he got tied up with a we have a unit that's deploying and. to give me for that your financial so couple weeks ago we had a committee meeting there at camp Robinson I was my first time visiting the Arkansas you challenge it was it's an impressive program you are doing a great job there when I was speaking to some of the staff members they did mention that have the social worker might help with the program so my question or comment is if the state could consider I'm hiring somebody a social worker to work with these kids because some of these kids come to this program will lie challenges and when I was read the bulletin board in the classroom there are some pretty graphic descriptions of things that were done to some of the students And so I'm just asking if they could consider Heiner social worker for the kids that Arkansas you challenge. Thank you yes ma'am the what you're referring to is. In one the English classes they did a creative writing assignment and this is anecdotal And the some of the assignments were shared and put up on the bulletin board in the female barracks without going into detail some of them we were pretty graphic. They were scary they were abusive and most of them were focus back at their at the parents we do currently do not have a social worker and that would be a great asset to the team because one of our greatest fears and the reason we try to get these kids that aren't going to go back to school which is the first choice or join the military which is choice number two into some kind of trade school some kind of program that that they can that they can want to put the certificate to get a job part of that is to keep them out of the environment they came from. some of them. Just don't want to go back we've had some parents that refuse to come pick their kids up when it was over. we have seen all kinds and if you could see these kids when they first come in. Compared to how they look twenty two weeks later the ones that state the changes are phenomenal however some of them bring some really heavy baggage ma'am and so a social worker or something we do not have on staff that we think could pay big dividends for these kids that come in change every two weeks that could also help us bring in some of those in resident guys that we've done on our own to include helping with the post residential mentors that watch these kids for the next twelve months after the fact because sometimes is the only adult. Guidance in a good bill don't you know family members and they're not family but they one up that way often that these kids have and then special the seventeen year olds are going to turn eighteen within that next twelve months regardless some some of do it in the the class itself and now they're out there on their own they have no idea how to be an adult. Representative makes. Thank you I'm way way over your far far right area your morning I'm a I'm a switch gears here just a little bit and I ask about the. Two hundred thousand dollar increase in operating expenses the reason that you get for that is cost of utilities and the the new phone system and then you're also asking for increasing capital outlay by about half a million dollars for renovation and other structures I guess my question is is that two hundred thousand dollar increase in utility seems like it's a huge job nine I understand you have a lot of buildings out there so my question is is that our renovations that are ongoing is that to improve the energy efficiency of these older buildings I know being a former military man myself a lot of times those buildings are not built with energy efficiency in mind I'm is that going on in order to try to lower those expenses in the future yes Sir we have fifty four armories across the state the average age of those armors are thirty five years old obviously some of our disrepair. The big issue we have with that which includes a half a million dollar outlay is is it is an additional match because any armory maintenance we do or modernization is a fifty fifty split with the federal government US. As of those fifty four armories out there like to the average age is thirty five we in the state we her store clean still prominently in still combat arms units which means thirty five years ago the military did not let women in those units when those armies were built they were not even built with women female bathrooms. Which with the current level of funding with the Max we get from the state we can do about for armor is a year and we are in desperate need to see if you look at the total part of it is about eighteen million dollar list just to bring these armories up to standards were we can have now now that we have females in those units and in those formations Sounds like kind of a you know in a modern day silly problem to have with bathrooms but that's currently where we sit now we could speed that process up if we didn't have other things that that would trump that so for instance when we have a leaky roof and we have soldiers out there catching water five gallon buckets you know we need leak which happens we need we have to sweep and spend that same money that we were going to do renovations and upgrades to and literally our focus this last year's been female bathrooms we put a new roof on and construction is not cheap and future construction dollars always goes out. Have you not spoken to the the governor about possibly getting those funds to get that taken care of out of his you know rainy day or so plus. We we have in the past yes and and and he or he has done some of that okay that sounds that sounds like we may need to invest a little bit more based on what you're telling us. The the is the the issue with that though is if the state wants to if the state wanted to we don't recommend this to pay hundreds Senate bill we could actually do that but what happens is every federal appropriation to the national defense appropriate appropriation that comes and gives the National Guard side of the house the the the money that the federal match to be able to do that over time yes we've got this programmed out over time but to play catch up and to deal with he had a female bathroom our current problem we come up short on state match so this ask for the state match helps us catch up with that and to the point that we have in the past turn down federal dollars because while the federal government is real nice about that they're budgeting system is pretty tough and they just like they don't money at the last second mmhm well we we it's really hard to react. Right so so both so what you're telling us is. This will catch up with the federal match so we can match what the federal government's offering but anything we wanted to be on that to try to help take care of these problems the state would have to cover the entire cost. Yes Sir anything anything beyond a federal match us correct because the rules are armory is the federal government bills and now we have some brand new ones out there and the federal government maintains and for the first ten years after those ten years all the titles revert to the state may become state property at that point and then that's when the fifty fifty match comes in so we're talking the older armories here. and then final question is there any opportunity to maybe to merge some of those armories to downsize Yes Sir yes Sir yes Sir and we have done that in the past the issue with that is is if you can when you do that you also can dance and constrictor record recruiting areas for these units and the National Guard is no different than what's been going across the nation even on the active duty side where they're hurting right so anytime we do something like that and sometimes we do do that based off the age of the armory and other outside forcing functions if it if if days army just so old we've had some really old ones we're talking sixty seventy years it's not worth you know renovating we do consolidate but right now the current recruiting environments tough across the board and the National Guard is a microcosm of society so the active duty you know acted upon struggles uprooting right now obviously we do that to you know we do a little bit better you're in Arkansas then so that a lot of the other states when it comes to recruiting but the more you consolidate the more you can damage your recruiting areas and then you've got guardsmen that are driving are there to come to drill right right having been a former reservist I definitely know where you're coming from is that so I thank you for your service thank you Mr. Senator Elliot you're recognized. Thank you Mr chairman I just want to follow up very quickly on the discussion between you and representative at and wondering if you are convinced the social workers would be helpful and I agree with that I'll will you consider or have you decided if you will request funding for social worker come the next administration regardless of who that is yes ma'am okay thank you very much. Senator Stubblefield you're recognized. Thank you Mr chairman Scott yeah I'm over here. I do want to thank you for all the work you do with this youth challenge I have I have a couple questions I want to ask you of first of all I've always been someone who believes the greatest gift you can give someone is is second chance. And I was just curious as to whether or not is their spiritual component involved with the with the use challenge out. Were you working with the issue. Yes Sir we have or military chaplains come in and they usually they They do church services of the chapel for the kids that want to we've also partnered with outside churches that want to come in and volunteer do that same kind of thing that task is usually given to our military chaplains that work on post because they've got those connections but we do teacher services and outreach in that area. And. And the the participation in these programs is by these youth at is it. This is substantial or. I mean the ones that decide they want to go voluntarily yes or the vast majority of them there there's. There are there are several there again if if you want later wreckage share some of these letters. And in some of these essays that they wrote that that is brought up. You know some of their prayers and some of the other things you know but I have no doubt just I was just you know I was a young soldier thirty three years ago to that a good way in basic training to get away from the drill sergeant was a go to church so I'm not saying there's not some of that there either but definitely the participation rate of every class into the chapel services that kind of stuff for historically high I thank you again for all you do thank you thank you Mr chairman. Represent Dotson you're recognized thank you Mr chair and the. I stepped away for just a second so you may have answered this I apologize if you have been with regard to the social worker is that part of your request right now in this The one that's need for the youth challenge the position itself the position request the position is not in there we've we've requested funding and so what we're going to have to go do was this came up after the budget submission and then I'll be honest the the essays we got were or. We're a game changer for us initially launched into that and so that that will be coming in a you know for the session so is that that would be specifically with regards to the youth challenge appropriation on page three forty one yes you're talking about you would need instead of the nineteen positions a request and a twentieth one there correct Sir okay. At. All have a motion at the appropriate time Mr. Representive Crawford you're recognized. Thank you my question is on three twenty eight three twenty nine on the military family relate trust the agency request a reduction of one thirty seven one twenty eight. And and it says this is because to align with the funding. Hi in watching all of this budget very few people aligned with the funding they just ask for it so my question is why are we decreasing of the assistance for families of deployed soldiers rather than increasing that. Ma'am what what that program is is we gave a hundred thousand dollar grant last year to the Arkansas National Guard foundation for them to cover that process and so what we were doing in the past it was a check off through income taxes the money was coming to us and the Department was having to go through a process to determine eligibility for those soldiers and airmen that were deployed or in some kind of need we've had houses burned down and that kind of stuff the thought two years ago was to be able to give that money is a grant to the National Guard foundation which is a nonprofit they operate on post and they are much better suited to do that line of work and so that was approved we gave the money to them and they actually do that function however over time the check off system still is still in place and some of that money does roll into the department however we don't we don't spend it like that anymore so we're request requested a decrease of appropriation to align with funding and then when that pot bills back up we would we would come back and ask for a The authority to grant a nother grants to the National Guard foundation is actually doing that process now okay thank you it there has not been a degree decrease in any to help what is that what this memo and the process is changed the money's been there that is correct thank you. Representable. When you're a building maintenance. you're doing for a year yes Sir on the or that's going take thirteen and a half years I was going on in those buildings or on the fifty years old by the time you get to the last one yes Sir I have you all look at or would you consider asking going along with representative make suggestion the U. S. the new administration to fund. Ten million eighteen million whatever you saying article and get that done because alone you wait to Morse code calls yes yes Sir we have we we are considering that. Thank you thank you Mr. President Holcomb recognized you for motion. Yes Mr recommended that we accept agency wrecked. At a motion and a second any discussion on the motion. See non I will tell the committee that there is a second part of doing this agency wreck of Tuesday we will get the personnel report and never have to be an amendment to that report of staff has draft that at a motion and hand it to the member that requested it so we will have that done on Tuesday so just want you guys to remember there is a second part to this motion as agency Rick so with that all those in favor say aye. All opposed us have it. That will move on to the Audit funding for highway. I thank. Yes if you guys would introduce yourself for the record and you're recognized introduced funding Kristi Sanders legislative audit. Don Morgan legislative audit. Okay so the finding that's on page sixteen of your agenda it is it was presented the full committee for the audit of the Arkansas for department of transportation in the annual financial comprehensive report. Arkansas code annotated nineteen four fifteen oh two requires an agency to keep in and maintain a record of property owned by the agency Arkansas department of transportation failed to maintain a record of right of way property owned. L. your to maintain a complete record could lead to the misuse of appropriation misappropriation of assets we recommend the agency develop and maintain a record of all right of way property owned with costs that support the balance reported in asus. Back in place this finding. The Arkansas highway employees retirement system for the year ended June thirty twenty twenty one contain one finding. Highway employees retirement system reported to us an overpayment of retiree benefits the death of a member that occurred in January twenty twenty one was not reported to the system was not discovered until April of twenty twenty two resulting an overpayment totalling sixty one thousand five hundred sixty one dollars Mister chair that concludes our findings. Thank you I've got a question on that first finding what was the agency's response. They were working to EM update reconciled to complete ongoing record of right of way property which I can say this was done for the June thirty twenty twenty one ACT FOR like I said but we have since done their departmental it just has not been completely through the review process and I can say that they have at that point had brought it up to current with their balance completely yes okay thank you. So members any questions for audit staff. I see no questions day will recognize you and if the director and all our staff will make their way the table thank you Mr chairman. Thank you Mr chair members of ran the transportation budget manual to separate manual at your desk it looks like this. So this is Arkansas Department chancer Tatian of the Arkansas state highway commission responsible for maintaining and improving the state highway system including the including the planning design and management of highway projects and administering the State Highway employee retirement system. the commission has five members appointed by the governor with the advice and consent of the Senate for ten year terms the Commission became a constitutionally independent agency with the passing of the mac black will amendment that's member number forty two in nineteen fifty two on page one is the agency position usage report. On page two is organizations are by believe status handed out an updated chart so you should have that your desk. On page three is there audit findings for fiscal year twenty two. On page four begins our history in the continues on to page five. On page six is their employment summary. On page seven our state contracts awarded to minority owned businesses. In on page eight is highway user revenue distribution. The bottom of the left column shows Arkansas hobbies is produced eight hundred and seventy nine point three million in revenue in fiscal year twenty two that's primarily or about sixty two percent of the revenue was from the motor fuel tax which produce five hundred forty three million that year that's the first entry in the column on the left. The next large item was vehicle registration fees that makes about seventeen percent of the total. The column on the right shows where revenue is distributed the state Central Services Fund cities and counties are not state police and eighty you all received a share see how revenue a little over five hundred thirty five million went to the State Highway Department Fund which is sixty five percent of the total state highway user revenue. Next page page nine this is a State Highway Department Fund the department's main operating fund is a mix funded takes in federal revenue special revenue interest and transfers the phone collected one point three seven billion fifty billion in fiscal year twenty two the federal highway trust fund accounts for seven hundred eighteen point five million of that total which is about fifty three percent more than half of all the revenue into the fund. Hi we stay revenues which include the state motor fuel taxes the next largest source in accounts for four hundred thirteen million that's about thirty percent of the total. Act four sixteen funds increase the motor fuel tax those three cents a gallon and diesel taxes six a gallon it added registration registration fees for hybrid electric cars and direct the transfer from the gaming proceeds or further restrict reserve fund any produced ninety five point four million for the fund the phone also receive fifty million from the state surplus thirty five million from natural gas severance and twenty nine million from act one transfer funds that's the Arkansas highway approved implanted two thousand sixteen which was primarily interest earnings from the securities are fun. On page ten is the purpose perforation summary of the department has twelve request five sections have a change level the total authorized budget in fiscal twenty three is two point eight billion the Department request three point two billion appropriation for fiscal twenty four that's about twelve percent over authorized and the Department request three point four billion appropriation in fiscal twenty five that's twenty two percent over authorized. On page eleven is the first section this is operations section and it provides for the department's overall ministration and construction maintenance operation of roads it's supported by the State Highway Department Fund. The total amount authorized twenty three was one point seven three billion and that's the third column in that table. Do your question twenty forest is two point four billion at thirty nine percent increase and in twenty five is two point six billion which that fifty four percent increase if you look at the line items with gene levels again you start with regular salaries two hundred thousand I'm sorry two hundred million was authorized twenty three requesting twenty fourth for two hundred forty million that's a twenty percent increase in in twenty five it's thirty percent over authorized that's two hundred sixty million this is due to salary match Justin's carried over into the new biennium but also when that has since sales tax was temporary the Department relied more consultants with the sales tax becoming permanent the Department plans of bringing those consultants and in house. The next one's personal services matching seventy million was authorized to request twenty four is a hundred and ten million that's a fifty seven percent increase in in twenty five that is seventy one percent over authorized at a hundred twenty million and this is because previously their group insurance is paid out of operating expenses and they're moving this expense to personal services matching to correct your budget. If you look at operating expenses two hundred forty million was authorized in twenty three four twenty four two hundred fifty million is requested that's a four percent increase and then two hundred sixty million twenty five that's an eight percent increase or authorized professional fees and services in twenty three was authorized it eighty million there's no change level for twenty four button twenty five goals of thirteen percent to ninety million capital outlay is one billion fifteen million and that's what was authorizing twenty three and twenty four the request for one point six billion that's a fifty percent increase and then in twenty five goes up to one point eight billion which that seventy seven percent increase transportation grants and aid is authorized a forty million that hold steady for twenty four but in twenty five because of twenty five percent to fifty million these items are all increasing due to inflation but also because of the half cent sales tax will be deposited into this fund beginning July first twenty twenty three. Looking at funds sources that's the table at the bottom the fund balance going into fiscal twenty was three hundred twenty three million the fund collected general revenue in the amount of seventy nine seventy nine million that was a surplus of fifty million the securities are transferring of the proceeds from Arkansas highway improvement plan of two thousand sixteen. It'll revenue show seven hundred one million special revenue shows four hundred forty six million that's primarily from motor fuel taxes registration fees Act four sixteen Funsho ninety five million that's the increase in motor fuel taxes and registration fees on electric and hybrids and also gaming and risk reserve fund transfers. A nonrevenue receipts show thirty four million in other shows two point six billion that's mostly interest the Department spent one point four billion in fiscal year twenty two and that leaves a balance of two hundred and seventy four million going into fiscal year twenty three. If you look on page twelve that's the next request this is for the Arkansas four lane highway construction improvement bond account program this is also known as the connecting Arkansas program that's from the half cent sales tax by Amendment ninety one that is sunsetting. It's supported by a an account with them to see how it Department Fund. You look at fiscal twenty authorize the total is eight hundred million three quest for twenty four as four hundred thirty five million so that's down forty six percent and they hold that across twenty five. Looking at the individual line items operating expenses was authorized at ten million requests for five million so that goes on behalf. Professional fees and services was twenty five million authorized requests is up twenty percent to thirty million capital outlay is six hundred two million authorized in twenty four the request is for four hundred million that is at thirty four percent decrease in debt service is a hundred and fifty five million in twenty four request is zeroed out the same for twenty five and this is because a temporary half cent sales tax that supports the connecting Arkansas program is winding down it Wilson said in June twenty twenty three however they do still have projects in the pipeline and the costs for those projects that increase that's why the professional fees and services line item has gone up twenty percent. Looking at fund sources the fund balance going the fiscal twenty two with six hundred sixteen million the fund collected special revenues in the amount of two hundred fifty three million again that's that mimic ninety one sales tax nonrevenue receipts show one point four million those are federal grants reimbursements and other shows three point five million that's interest the department's been three hundred thirty two million fiscal twenty two and that leaves a balance of five hundred forty two million going into fiscal year twenty three. The next page page thirteen this is a state a road system program this provision section provides funding to counties it's supported by special revenue fund. The total authorize in twenty three thirty four million there is a change over the biennium if you look at fund sources the table at the bottom the balance going to fiscal twenty was thirty six point eight million the fund collected special revenues in the amount of twenty one point two million that's motor fuel and diesel fuel tax of one cent a gallon nonrevenue receipts show two point one million those are county matching funds of ten percent and the Department spent twenty four point six million in fiscal year twenty two that leaves a balance of thirty five million going into fiscal year twenty three. On page fourteen is a state each stream program and this section provides funny the city's it's supported by special revenue fund similar to last request the total authorized thirty four million in there's no change over the biennium looking at fund sources the balance in twenty two was twenty three point four million and the phone collected special revenues the amount of twenty one point two million this is the same amount allocated free from motor fuel and the fuel tax one cent a gallon nonrevenue receipts show three point nine seven million these are city matching funds of ten percent by cities over twenty five thousand population the Department spent nineteen point three million twenty two and that is about to twenty nine point two million going into twenty three. The next requests on page fifteen this is Arkansas Public transit trust fund program and this section provides funding for local public transportation operations this to purchase vehicles equipment facilities and operations it's supported by trust fund in twenty three six million was authorized is not changeable for the biennium. Look at funding sources the finance going into twenty two was four point six million the fund collected special revenues the amount of five point three million this is a rental vehicle tax of five percent or rentals of thirty days or less seventy five percent of that tax schools are and then it twenty five percent goes to schools. Nonrevenue receipts show seven thousand and that's federal matching grants and the Department spent three point six seven million twenty two which leaves a balance of six point two million going into twenty three. The next request on page sixteen this is a commercial truck safety education program and it provides for an education program for commercial trucks it's supported by special revenue fund that authorized amount twenty three was seven million there is no change level for the biennium if you look at funds sources the balance going to twenty two a six point nine million the fund collected special revenues an amount of one point nine million this is the first two million of a registration fee on class seven trucks or international plan vehicles with K. tax. Non nonrevenue receipts the amount of hundred twenty two thousand and the Department spent four hundred forty thousand Fisker twenty two that leaves a balance of eight point five million going into twenty three. If you look at page seventeen that's next request this is a road and bridge repair program and this section provides assistance to counties in the faithful shall area with active natural gas wells affected by heavy equipment it's supported by special revenue fund looking at the grand saline on two million was authorized in twenty three three questions twenty four is seven million so that's tripled and the same question twenty five this is because production of natural gas wells in the fatal shall has ramped up if you looking tax handbook on page one eighty eight el show the collections from two thousand nineteen to twenty were down sixty four percent the production was up thirty percent thirty seven percent twenty one and then up two hundred and thirty three percent in fiscal year twenty two. Looking at fund sources at the bottom of the page the balance going into a fiscal year twenty was a hundred and eight thousand the fund collected special revenues the amount of two point nine five million that's again the five percent on natural gas severance tax proceeds the other ninety five percent schools are a but six hundred thirty five thousand is since it generating the department spent two point seven seven million fiscal year twenty two and that leaves a balance of two hundred eighty six thousand going into fiscal year twenty three. The next request is on page eighteen this is the NO a radio system and it provides utility costs to towers on department of transportation property near Star City Arkansas it's supported by general revenue fund will is authorized in twenty three was four thousand and there is no change level for the biennium. If you look on page nineteen is next requests its public transportation programs and this section provides funding for local public transportation programs it's similar to the transit trust fund program however this section is supported by general revenue and Zayn to assist public transportation dependent persons. in twenty three to a three hundred fifty thousands authorized there's no change level for the biennium. On page twenty is a highly employees retirement system and this section provides for the operations of the highway employees retirement system supported by trust fund. The total authorizing twenty three was two hundred million in twenty four the request is for two hundred twenty million so that's a ten percent increase and then in twenty five the request is for two hundred forty million sets twenty percent over was authorized. Again operating expenses twenty thousand was authorized for that line item requests for a hundred thousand and twenty four and the same twenty five that's the five times what was over the authorized professional fees and services is twelve million in twenty three request for the biennium is fifteen million that's a twenty percent increase benefits was authorized at a hundred eighty four point nine million three questions twenty four is for two hundred point nine million that's a nine percent increase and then in twenty five the requests for two hundred twenty point nine million that's a nineteen percent increase if you look at for entry inverse Spence three million was authorized requests for for millions of the thirty three percent increase and this is all due to possible increases the retirements that could result in increases in the distribution of benefits. Looking fund sources similar other times as in the assets or cat the assets are kept in investments and funds are drawn down as needed to pay for system costs but the trust funded pulling a hundred thirty seven million dollars was collected twenty two and this comes from investment income contributions from employers and employees. Page twenty one is next request its intermodal facilities grants program and this provides grants to those existing animal authorities that since Arkansas Little River County northeast Arkansas regional river valley Southeast Arkansas regional southwest and western support of an account in the department's main operating fund and twenty three five hundred twenty five thousand is authorized there is no change of for the biennium the other line shows five and twenty five thousand was collected by the fund in fiscal year twenty two by code the first five hundred twenty five thousand and interest on the State Highway Department Fund is sent to this account. On page twenty two is an ex request it's transportation related research program. The use me grants they make grants to publicly funded institutions of higher education the scope of the phone was expanded last session to include workforce development it's supported by miscellaneous fund looking at grants in aid two million without was authorized in twenty four the requests to decrease this by twenty five percent to one point five million but then it ramped back up to two million and twenty five and this is because they tend to allow the fund to accumulate balances before paying out a grant if you look at fund sources the finance going into twenty two was ninety thousand the other line shows five hundred thousand was collected and again by code next five hundred thousand and interest assented this research grant program after the first five hundred twenty five thousand since two animal facilities department spent zero in fiscal twenty two now he's a balance of five hundred ninety thousand going into twenty three. Mister chair those are all the preparation quest for the department. If you all would introduce yourself for the record and co chair rice as questions. Hello I'm Laurie tutor the Arkansas department of transportation director. Patrick Patton the CFO FOR are not. I'm crystal was the head of human resources for our. Thank you for being here today of rectitude and and subcommittee meeting if you mention or the term was local or city council we're getting more revenue because of the the increased highway funding so the portion they get twenty five percent or whatever is up I guess is what you were. Talking about in there well what I'm talking about as far as our local programs has to do with federal funding of grant funding that the locals are getting now with the new highway legislation if you can pull you Michael will be closer to you thank you thank you have a better all right for our local programs what we do now we have several federal aid programs that we guide the city's and county's three we have a transportation alternatives program we have Rick trails program we have the grant programs that are made available by the new highway legislation I. AJ the city's and county's now can directly apply for and get those funding that funding and then is the D. O. T. we try to help them navigate through all the regulations and manage their grants to the best the to keep them from losing any money we also has an internal programs we have our intersection improvement program we have a partner in program we're partnering with our local agencies to do highway improvements that they need if they don't have the funding for and they come to the table to accelerate those projects by providing either swapping soon state highways for city streets or possibly bring some money to the table in Arkadelphia for instance we just and we just did a ground breaking at the city of Arkadelphia tax and sales and brought eight million dollars to the table we let the contract was a fifty six million dollar contract for a bypass around Arkadelphia in that we work with those local agencies if they come to us and try to improve their improve their city or the county. So those are the kinds of things that that local agency division will take care of it will be a better partner with our local agencies that's kinda orders go that I wanted I wanted to make sure you're able to do that even if it's not federal Part of it too right thank you can do that because again they're getting some more monies in an ever going to get it up and getting some more moneys with the expertise of our dot you're able to to help them with some other planning. Absolutely we we know how to navigate through that federal highway regulations system so we help them to do the same very good the other question I had and and and and and ask the at different times and in past years Only the federal funding I don't want US DOT or are. Whatever it is I asked numerous times about what we agree to to get certain grants and all that is there anything. Any type report that that you all do annually or anything that shows Any of those top a grant scheme and what's required. said judges you know bears in the middle of the highway are are you know some of the problems they have to lower for talent these yes the arteries is there anything that you have in at the Joe new annually that that something we could see a of course I think for instance we do a lot of. Our highway safety plan is a requirement by the Federal Highway Administration and it lines out how we're going to reduce crashes in the State of Arkansas on how we're going to try to reduce our crash rate and we put in there are proposed how are we going to do that and that's requirement by the Federal Highway Administration we work closely with them to get a plan in place that they will approve and then from that plan we need forward so I can provide that kind of thing to you to show you how we map out how we're going to spend that federal money as we move forward and then in conjunction with that a lot highway police which has worked closely with DOT OR they considered a state deal to you I mean there's so much federal comes in I'm not saying money so much federal regulation for his part of their job and and what I've expressed to you and then committee before it's concerning some states seem to just almost turned it over to the U. S. deal T. in mer of whatever they want to do in other states and I've been concerned in Arkansas and express that that that we keep our as much of our state regulation and and authority that we will rather than just do what they want done because they're sending the dollars over at is there anything in a report that shows a break out of of the highway police I see the the director of personnel bill but we don't have anything to show separate out user budget up quite a bit. No Sir we have money we receive from the federal government for our highway police is for commercial mobile commercial safety programs and we do have reports that show you how that's broken out and how we spend that money in friend that amount of money we we have a goal of so many stops per year to do a safety check on our commercial motor vehicles just a sampling but to keep everybody on their toes to keep the brakes in line to make sure their their vehicles are safe in there and they've got their CDL and they don't you know all those things but we are careful to make sure we don't get to. We don't allow the federal government to tell us how to work with these we got into not too many years ago we got into a lot of staff for was a subjective in. What they call for the commercial high school kid or or early college kid driving the. Rug with a trailer and and a horse and of this and that's commercial in that while they were duties barrel barrel racing that has run out of business but we had some we had some. Authorities doing that that's right that's what I don't want to give up some of that stuff even if a well my Sadie I'm I have to have to give a shout out to representative Wardlaw the helped us to get our state law where that's not happening anymore but once you cross the border. Then you end up in a different situation but as long as you're within the state of Arkansas he carried that legislation for us and that's no longer a problem there's other areas like that that seem small but do creepy and if you don't give you got your closer so I would request. We we try to keep that balance and would do the best we can and we're always open to hear from any of you in all of our legislators you hear from your constituents. Keep the roads safe but not be over over reaching what we're required to be okay thank you thank you Mr. I have a couple questions the federal a program you talked about a few minutes ago was Senator Rice as questions that the counties are eligible for you know how many counties have taken advantage of that program I don't know off the top of my head we can get that to the staff absolutely of the other question was I know for of here say that there's a new intermodal common one if a new intermodal is put in place that money that's being pulled from the interest that we talked about while ago is it divided by that new number at that point. Is there any appetite to raise that so that Division stays the same as it is today to each intermodal. So take new statute yes correct eight needs statute As I can I'd I'll have to defer whether or not there's appetite for our dot to increasing the amount in that fund because that would take away from other activities but I'm willing to have those discussions we can talk about the pros and cons of that I would just hate for the current internal system to hurt because a new one came online and we also do not want to discourage new commerce and state either so right it's it's definitely a conversation is take place so yes Sir okay with that state representative makes you're recognized thank you Mr chairman I have a two questions first one thinks it would be for staff on page eleven. The report says that we spent roughly seventy nine million and general revenues and looks like the authorized level is seventy thousand. All of us like we've got more spend them authorized. And I'm wondering if we could get an explanation on that or how that works. Or what that money was used for. You're talking about. Sorry I'm Page eleven on page eleven and you're talking about under the funding sources right side so that the seventy nine million we got part of our Fiscal year twenty surplus during that time that's what the the line item is and so we pretty much got two years worth of surplus and that so we're not anticipating that going forward that will be on time with the surplus and are Or a security reserve request so that's what's going to the seventy because the Max for our surpluses that fifty million in the Max for security reserve request as a twenty million. We're not violating any appropriations by okay and and know what was that money used for. This would have been for our general operation general questions okay and then the next question that I have is on page sixteen with the commercial truck safety program. it looks like you currently have a seven million dollar. Fund balance and are only spending about four hundred thousand dollars a year in your generating close to two million dollars a year looks like In my reading that correct is that fine balance can continue to grow and are we way over charging on this what's kind of what what's the story on that. I can answer that for you this program and I can get I can bring that in send that information to everyone but that findings been encumbered it's not being reflected here is it hasn't paid out yet but we are working closely with we have a team all right of course mating committee that includes Arkansas trucking along with a private trucking firm along with our dot staff in we recommend how to use these funding this funding and lately the majority of the funding state which has not been paid out yet has been dedicated for truck parking facilities to expand some truck parking facilities across the state so we're making really good use of that funding and it I can get to that report to show you where that funding has gone from the inception of the program until today and that would be something I can send to the. I guess indirectly to your senate higher okay so so the money can be used for. One of the ones this truck safety it doesn't have to actually use on the trucks are on education it can actually be used for these capital improvement projects yes Sir okay and in the end that's where most of this fund this access would go to is to those type projects yes that's a big focus right now is trying harking we're working closely to figure out. How to inspect span that across state okay I just but I just saw the huge fund balances that low spend I just wanna make sure we're not over charging for this and just developing issued slush fund that's not going to anything but that doesn't sound like its case or something all right thank you for that explanation thank you Mr chairman. President back you're recognized. Thank you Mr. I have two questions one was Back on page eleven You may reference to that the the money for at four sixteen funds you said did I hear you say that part of the fun there was gaining input from gaming or something. Yes There's a three cent a six cent tax on gas and diesel that was enacted with ACT four sixteen others also in electric and hybrid fee. And then we get thirty five million of casino revenue okay that was my question is when and what percentage of that was actually consent remote my second question if I might. It has to do on page twenty your operating expenses and twenty one with sixteen thousand authorized twenty thousand and you increase that by email to a hundred thousand. Amid this relative to all the other numbers it's a small it's a small number of it is of a large increase the that was to take account for potential operating expenses and being an accountant I the to be honest with you with some of that also so. That one could. Come to all of the. Thank you. Representative thank you're recognized. Thank you Mr over here to your left. This question maybe for Mr perish I may have misunderstood something but on page twenty two of the second five hundred thousand and interest is going to fund this is future transportation research grants can you give me more information I thought you said something about this being grants from the highway department to hire it. Yes Sir that in it And section that's how is created it was a track transportation research related program and they've made grants of believe you of aid to the engineering department for program for highways there this was expanded in the last session to include workforce development and I don't believe the things been the outlay for that just yet but that after referred to the department about their plans for that. So if I understand right there of not actually been any grants come out of this fund as of yet is that correct. No so third okay with us since the inception of this which was in of the two thousand seventeen there's been six grants funded so far. So actual it. Why would it show anything there under actual. Wicket because of for this year we did not receive any grants that are that we would would have met the qualifications we currently have six in in house right now that we're considering. for future funding but within this fiscal year of twenty two there were none that we Salfit Fund first for the ninety thousand dollars that we had in the server off top off your memory can you tell me who those grants were given to. I think we gave to to the U. of a. I thank everyone to a issue. At least can I have someone come up from the well I think that pretty much answers my questions are I've just based on what I remember over the past ten years that I've been down here hi read his fought. Highway funding on more than one occasion I just found it curious that now the highway department is. Giving grants to higher ed just resolution shifts by legislation we're doing this it was legislation was passed in court twenty. Okay fifteen and then it was revised it was revised I believe last session to expand it to include workforce development activities so now not only is it transportation research but also if it if it hi read or a photic school or whatever comes to us with a great. grant requests to expand their workforce development we're gonna be able to use that funding for that as well so I think it's going to be expanding workforce development I mean they're trying in highway employees for engineers when we talk about as workforce development for the highway construction industry which would include you know asphalt one of the people we talked to the university of Morrilton or the universe the city is that right university of Arkansas Morrilton and they're wanting to start a workforce development program where they teach students how to use asphalt equipment and things like that so that we prepare the future workforce for highway construction it can be contractor employees it can be are not employees but it could also just be students that are interested in coming in and learning more about being part of highway construction industry. Thank you thank you Mr. President Cavenaugh you're recognized thank you Mr markets have thank you for being here my questions got a deal on page eight to talk about some of your funding. On your vehicle registration fees is that for sales tax on and motor vehicle carriers is that what that actually is originated from. No that's just regular vehicle registration that you pay the the twenty five dollars is twenty seven dollars or the three year okay does any sales tax going that no okay how much of that registration fees do you receive do you receive a hundred percent of it or do you receive a portion of it a portion of what the status of this one a split seventy fifteen fifteen so cities and counties get or. But one hundred percent of it goes to our dot and then it gets split to city council okay and then on down here we shall see receipts to state police operator's license fees and drive out license in translates but then you show that also is an ex begins as a distribution to the state police is that a pass through we're we're a pass for pass through for that one and for eighty Q. why are what worry all past three. In my five years here that has been that way I don't know what what was originally set up that way. And so the fees for the state police. We are collected and then just transferred to them correct do you all get any phase off of those no ma'am. Okay and you don't get any phase right thank you no ma'am you just okay all right. Thank you Mr chair. The Beatty you're recognized for a question. Thank you Mr chairman director tutor my questions are directed on page eight under revenue. At approximately two percent of your budget the overload permits and penalties. Can you tell me how you're an ex kind of walk us through how those permits and penalties are utilized by are not. First of all we're. K. G.. Okay I'm sorry so. Overload permits and penalties. We we have our permit section under Arkansas pull your mind a little closer. Okay this gives us a lot better it thank you an. Arkansas highway police division over and they have a permit section in for any all trucks that need to ask for a permit for different reasons say they haven't indivisible load is over eighty thousand pounds or over with it over height they have to get a permit so they know what highways they can drive on there's a fee associated with that so there's fees that can come from getting your permit they're they're very they're they're very they're based on statute there based on the law and so we we had minister those permits and we collect the fees as well for whatever they are by law. Penalties at would be right tickets if we write a ticket for whatever reason overweight you know safety violations whatever it might be so. Does that answer your question no ma'am I understood everything you just said my question was specifically how this are not utilized and deployed these funds okay it is goes back into our operating funds for the state police I mean for highway police it is just used as part of their operations and whatever is excess in that goes to just our general operating costs. Follow up Mr could you provide this committee with the break down on those fees as to how their allocated between permits and what penalties and in addition to that I would like to know where these fees and penalties are collected throughout the state and a break down maybe by county okay could you provide that absolutely I was hoping that I would hear that some of these funds would be used in the at that education and safety side as a satellite that penalties and and part. Permits you could educate our our hard working truckers in the state on how to how to avoid the penalties and and issues that they would have instead of parking lot but I'd look forward to reviewing that information thank you you're welcome. Senator Chesterfield you're recognized yes I move the executive I mean the agencies bhajan immediate consideration. Does a proper motions drive second. I have a second all those in favor this this vote is on the immediate consideration for the state agency Rick so this is not a vote on the budget is a vote on media consideration all those in favor say aye aye All opposed. I've got a rule because it takes two thirds so with that agency records on the floor and I have a second all those in favor the agency record well no yes we want we can take discussion on that motion. So is there any discussion on agency record. Representative Cavenaugh. My discussion is there are some of us in the queue with questions for our got it we need to have them answer if we can't please thank you. Senator just feel would you withdraw your motion I certainly shall Mr thank you. Representative within your recognized for a question for the agency. Thank you Mr chairman of Director tutor Two three questions were quickly I'm looking at your report own personnel is show six hundred twenty three vacancies for of been vacant over two years of but I'm assuming that the hundred sixteen that you're relinquishing in the or other part of your budget is and they're they're out of that is that correct that's correct okay so do you know the average age of those that are remaining. I'll pass it over to crystal. Are you asking how long has it been vacant. C.. As you said six hundred and twenty three have been vacant for two years. Five hundred and forty nine have been vacant for four years how many you for for three hundred and ninety one of them vacant for six years. Three hundred and seventy nine have been taken eight years and three hundred seventy three have been vacant ten years and that's as far out as I went on analysis line with your continued evaluate those and look at a absolute follow up if I may. On the interest you show interest as income sources in several places as as a funding source Page nine you show one point nine million. is that does that include the interest on page twenty one of five twenty five and on page twenty two of five hundred or is that in addition to the funding source it's an addition Senate decision yes so do you know how much interest that you're making all your money out there all told me it would have been two point about two point nine million because of. The the one point eight and then you take the one oh two five that's allocated to those two funds so about about two point nine four that our operating program and then four four lanes our interest is about three point five million okay those the only two that we get interest on one follow up on the page eleven it shows you paid two hundred forty million and celery and a hundred and ten million and matching is what you're requesting you're requesting two hundred forty million matches a hundred ten that's forty five percent what does that make a. Thirty four percent of it is the the fight a group insurance a retirement match and then workers comp and unemployment compensation what also goes through their service recognition payments admin fees for one twenty five program or a cafeteria plan And then any leave that may be paid out That the the person has occurred when they leave. The you leave money income so that's one okay all right thank you Mr chairman thank you all thank you for. Thank you. I have a follow up to referred reason wouldn't questioning they're it when you look at page eleven. That increase an appropriation. In twenty three and then that increase our twenty four and twenty five that's going to be made up by removing the consultants is that not correct. Yes Leding well right right wing. We're going to yes that's that's what I thought yes Senator Irvin you're recognized thank you just a quick question and I'm probably missed that on the research grants how are those funded again. The research grants are funded by the. It's the second The second. Really it's the first five hundred twenty five thousand of interest on Our main operating fund so whatever fund balances in taking the interest off of it and that's how you're funding not off the top off the top of the first five hundred twenty five goes to the intermodal grants and then the next five hundred thousand goes to the research grants and workforce development okay and so that's off the top and then our dots operating funds start receiving interest after that okay and then would when you're talking about workforce development would have programs that are in our high schools qualify for that. They would definitely be an act they could be if applied for funding and want to set up some kind of program why they like Bologna has a construction management workforce program that they have developed which clearly is you know would fit I thank yes we're going with that okay I just I just didn't know how these entities knew about how to apply for that or and if the if you if we could offline with okay look at the law I'm I'm now wondering if I misspoke it it has to be it an institution of higher learning at their of Flotek or university or something like that okay so let me make sure I that high so if you look at that for me because I think it's so in we're starting to see a lot of those programs in high schools which then we'll get them to the two year or four year or certification but programs but I love seeing that happening in our K. through twelve such as a because. Your career reading us this is really a big part I think of public education and our commitment to our site so if you look at that legislation for me and then get with me about that that be great thank you okay thank you thank. President of all. Thank you Mr chair I've noticed that the highway police are working a lot more traffic stops so I want to know where when they to get somebody for speeding or those funds go on what they're used for will the okay so when that was going to that line item the representative Beatty pointed out a minute ago those would go into that. The the increase in traffic stops should be just in work zones we've this last year we have a safety campaign slow down phone down we've been working closely with Arkansas state police to try to reduce distracted driving speeding in a work zones to reduce fatalities not only of our workers but also just crashes in general which could be devastating I can understand that I live in rule Arkansas we don't have those construction zones where I live and I see a lot of guys pull and thank you for your bill over so all that I will I will pass that along the it's not their job thank you. In less let me just say I understand unless there's a construction zone I will note that if if it if there. Literally safety hazard I understand okay thank you thank you Mr. The Springer you're recognized. Thank you Mr good morning I'm looking at your report the pages starting on page twenty five through forty five the. Of salary request and I I just know that the peers that. You're making a request for the maximum annual salary to be thirty five thousand that's on page forty five is that correct. At. I guess I'm not following thirty five on page forty five of your report. You have four thousand five hundred fifty eight employees and then on the bottom that you started several salary level one so I'm reading this and correct me if I'm wrong the the maximum salary level for level one employee is thirty five thousand one hundred eighty six dollars Max is that yes ma'am Max okay and I got a two part question Mister Mister chair so the point is the minimum the current minimum now the minimum for grade one is minimum wage mental okay ma'am I'll write sold in. I use so up above that you talk about the all those persons are the ones that the great five one through five of those of persons that will that you make in the request for like us seasonal employee extra help advancement intern sing it in terms of those the persons that will be. Making that at some point in time if they continue with the yes I am the seasonal employees are the grade one to start out at minimum wage the longer the the more summers they work with us for the longer they stay with us they may be able to move up to these an intern or advanced and turn some of the higher grades okay so I'm just trying to understand these very good salaries here so if I we look at the pages and go as we go up they say then they gonna start from like I see on page twenty five the maximum for the Director of could be up to two hundred and seventy six thousand and then the then back on page forty five the minimum for the the maximum for that grade level one person can be thirty six thousand dollars correct is that correct yes all right thank you that's what I will just confirm that working for the highway department is pretty lucrative thank you. Shall. Represent. Thank you Mr chair My question is going to be alive Page eleven and twelve but basically if you can just give me this information send it to staff and they can send it out can you we're looking at that schedule on these can you let me know what your date schedule is for everything and what the debt is and what the repayment of it is and when you're looking at this date schedule does it include principal and interest or principal only or interest only a vote yes if you can just send me that I appreciate that thank you I can do that. And then just one follow up the the four lane highway will end of June. Fifteen of twenty. So you'll just see one short of payment there. Representative Holcomb you're recognized for a question. Thank you Mister of anyone can answer this for me on the on the permits of. If so if we have I have a company like grace real roll down Mary that takes care the remnants and sometimes it happens our weekends late at night can't are and they seem to be having trouble getting permits is is that permitting that can you can get that twenty four hours a day if there's emergency or how does that work me at what hours they can get a permit yes ma'am seven emerging a sale we can or middle of the night or something committees get enough I got the ram or something and they get a can I get a permit then yes I think they can but let me be sure of that but I think they can we have an automated system and. And we have someone on call twenty four seven so but I I want to be I want to verify that for you okay well I was just as that of the aids. It has some kind of issue if you could if you look in that we certainly appreciate. Thank you thank you. Senator Chesterfield you have a motion. I think we're good with that first one agency records on the floor I have a second. I have a second all those in favor say aye All opposed us have it thank you guys members just little schedule information on executive subcommittees going to meet upon adjournment rules going to meet at one thirty today and then obviously councils at nine AM in the morning and next week we'll see you guys at nine AM on Tuesday with that we stand adjourned.