ALC-JBC Budget Hearings

Or one of the awards totaling thirteen hundred ten dollars however parks was able to recoup that run easily paid fund because it was notified by the applicant an error in the banking information used for the transaction. The agency's limited review of expenditure documentation and reduced award announcmenet failed to ensure that all applicables submitted sufficient appropriate expense documentation. In addition agency controls fail to identify in an eligible expense business during its limited review. This concludes our findings. Any questions from members to audit. Love you're recognized thank you Mr chair. You know this is the first time I think I've ever heard someone say they paid out sickly. He talked to me about the policy that governs the pay out of sick leave. So if an employee retires from the state this was allowed several years ago that have a written an amount that you can take and it's only a maximum amount of seventy five hundred and they either have to retire or think it's death that the family can receive the benefits but there are certain parameters and it's they have to have so many hours but in its determined if it's like sixty percent seventy percent or eighty percent of their accumulated hours and then I have to multiply that by a percentage of their pay okay so there's a formula and there's a form that they have to fill out that D. M. OPM has has that walks them through it and in this particular instance they did not they had the form correct but then when it was entered into the system it was incorrect thank you for the full amount current thank you your. I see no other questions of. Members Springer you're recognized for a question good morning. Thank you Mr the agency recruits the money that was overpaid. The agency in I'll have to respond to that probably they have a better idea I know that we have finished the audit work the review process isn't finished to verify that in the twenty one audit they they did not have anymore overpayments but at that point they were still in the process of trying to recoup some I couldn't get an answer before the meeting to see where it stands right now but the agency should be able to answer that. When agency comes for your bill to re ask that question. Okay see no further questions thank you guys for report so with that we'll call the agency to the table and we'll go to Billy for the budget. Thank you Mr chair rents had to the menu wants if you go to tab to this is page two hundred thirteen Ron the partition towards and shared services section. Again that's tab to page two hundred and thirteen. The Department comprised agencies and programs from the Division of heritage the divisions of parks and tourism and capitalism Commission cabinets were provided share services section to eliminate duplication of services and provide efficiencies Page two thirteen shows a state contracts were to minority owned businesses and employment summary. On page two fourteen is there and budget requests and this section provides for the sheer Services of the Department of cross all divisions programs supported by paying account. On page two fifteen is the appropriation summary the total authorizing twenty threes ten point seven six million requests for twenty four is eleven point nine million in the second year it's twelve million twenty five thousand so it's eleven percent increase in the first year and twelve percent increase in the second year the executor recommendation for each year is just five hundred less than the agency request looking to change levels will start with regular salaries line item what's authorizing twenty three is five point three million the request in twenty four as five point eight that's a nine percent increase they carried over to twenty five then personal services matching is one point eight million authorize their quest the first year is a little over two million that's a ten percent increase and then in twenty five it's a thirteen percent increase of those injured due to salary imagine Justin's continue to new biennium H. the also request restoring growth pole positions in reviewing and doing re classifications the executor recommendation provides for all that except for the re classification that's a five hundred dollars less difference looking operating expenses two point two million is authorized in twenty four the request for two point nine that's up twenty nine percent increase in twenty five is a little less twenty percent increase and this is due to comedy rising costs due to inflation Nicks on items professional fees nine hundred forty one thousands authorize a nine hundred forty three thousand is requested the less than one percent increase and the same twenty four this is I'm sorry Sam is twenty five this is to accommodate rising costs due to inflation as well grants aids next line item fifty six thousand with authorized requesting twenty four zero so trying zero out that line item in the same twenty five this is to discontinue as grants are processed through the carriage Division and not shared service looking at capital outlet SLAS line item a hundred one was authorized fifty thousands requests that's cut in half the same twenty five and this is to these would restore cap. L. A. to allow for placing of capital assets Sure I think we're moving down to the Division of heritage and this is going to jump forward in the manual to page two hundred twenty two. So on page two twenty two begins the Division of heritage let's request. And the Department I'm sorry the division of Arkansas head was created nineteen seventy five to preserve and promote Arkansas's natural and cultural heritage as a source of pride enjoyment for all it consists of a divisions the Arkansas arts council Arkansas historic preservation program Arkansas natural heritage commission Arkansas state archives delta cultural center historic Arkansas museum was a complex cultural center and the Old State House Museum pages to twenty two through three show and appointed summary publications in state contracts awards a minute minority owned businesses. On page two twenty four is there appropriation summary the Division has eighteen request eight sections have a change level there other sections were the only changes came for salary matching Justin's into the new biennium the total authorized budgets in in fiscal twenty three is twenty five million the Division requests almost twenty six point four million for the biennium that's a one point three million increase for about a five percent chance of overall. the executor conditions for almost forty two million which the sixty six percent increase over the authorized amount and that's sixteen million more than age here quest the majority of the difference comes from the executive recommend and you fifteen million dollar appropriation section the division's funding from generate a new special revenue from nine percent of the one a Senate conservation sales tax federal grants in cash funds from museum gift shops and cultural center proceeds. The first change level begins on page two twenty six this is conservation tax minutes seventy five and this section provides for programs and supplements you know revenue for administration of the Division is supported by the Division had special fund account on page two twenty seven is there summary of the total authorized in twenty three is five point six seven million three questions twenty four is a little over six million and that's a six percent increase it's another six percent and twenty five and executive nation provides for this agency request change levels begin regular salaries line item eight hundred fifty thousands authorized requests for twenty four nine hundred twenty six thousand that's a nine percent increase the nursing care is over twenty five in person services matching three hundred fifteen thousand is authorized a request for the first year three hundred ninety one thousand that's a twenty four percent increase in in in twenty five goes up to forty five thousand to twenty nine percent increase over authorized either salaried matter just as king over into the next biennium the next item is conference and travel with authorized twenty three seventy three thousand three questions twenty four as a hundred thousand to salmon twenty five this is due to increased travel costs and capital outlay with authorized in sweet three is a hundred thousand the request is for two hundred fifty thousand for the biennium and this is replace aging vehicles and other capital needs looking at the fund's funding sources table at the bottom the fund balance going if it's the twenty two is five point seven four million the fund collected special revenue in the amount of eight point six billion that's from the one eight cent conservation tax the other one shows two hundred thirteen thousand the Division spent three point nine million in fiscal year twenty two that leaves a balance of eight point six million going to fiscal year twenty three. The next change that will be on page two thirty. You go to page two thirty this is the Arkansas major store rehabilitation trust and this is the new appropriation that I mentioned earlier it's to spend fifteen point two five million from a transfer from general revenue allotment this is to offset the income tax credits allowed an act eight fifty five two thousand nineteen it's supported by the that the new funds created act the Arkansas major stored rehabilitation trust fund on page two thirty one is the summary again this is new so there's nothing authorized and twenty three and the a request is not by the agency but from the executive and fifteen point two five million. The next item is on page two hundred thirty four. On page two thirty four as adults a cultural cash in treasury and this section supplements the operating expenses of the delta cultural center it's supported by cash in treasury fund on page next page two three five is there summary. The total authorizing twenty threes eighty thousand requests for the biennium is a hundred twenty thousand so that the fifty percent increase and exactly recognition provides for the agency request. Change those begin with operating expenses is fifty thousand and twenty three goes up to seventy five thousand this is used for exhibits events and education programming and then the resale line item was thirty thousand was authorized to requests for forty five thousand for the biennium that's a fifty percent increase is due to increased costs for purchasing gift shop items looking at phone sources at the bottom of the page the fund balance going into fiscal twenty was a hundred sixty thousand the fund collect the cash funds the amount of twenty nine thousand Division spent a hundred twenty seven thousand fiscal twenty two that leaves a balance of sixty four thousand going into twenty three. the exchanger was on page two thirty eight. Page two thirty eight is the Old State House cash in treasury and this section supplements operating expenses of the Old State House programs and activities is supported by cash in treasury fund on page two thirty nine is appropriation severing. In twenty three two hundred eighty four thousand with off was authorized the request for twenty four three hundred eighty six thousands of the thirty six thirty six percent increase it goes for both years the biennium the second recommendation provides for the agency request if you look at operating expenses line item was authorized as we three hundred ninety thousand request for the biennium is two hundred sixty six thousand that's a forty percent increase in the looking at professional fees twelve thousand is authorized thirty seven thousands requests that's troubled both these lines increased to account for expenditures previously paid from an appropriate a cash fund. Look at funding sources at the bottom of the page the fund balance going to fiscal year twenty two was for fifty eight thousand the fund collected cash funds in the amount of forty nine thousand and the Division spent ninety eight thousand twenty two that leaves a balance of four hundred nine thousand going into twenty three. Next item is on page two hundred forty two. So if you go to page two forty two that's exchangeable it's for historic preservation federal program and this section supports coordination of the state historic preservation plan with the federal government it's supported by federal funds. On page two forty threes Appropriations summary and what's authorizing twenty three is one point four million requests for twenty fourth one point four nine that's a three percent increase in that carries over twenty five the second recommendation provides for this request. If you look at a regular salaries with authorized six hundred eight thousand requests is for six twenty six thousand that's three percent increase same twenty five personal services machines authorized to sixteen thousand requests for two hundred thirty four thousand that's a nine percent increase and then twenty five goes up to two hundred forty three thousand that's a twelve percent increase overall these are increases from Saudi match just miss king or to explain him there is a small decreased its embedded Bernstein part of the net change that the it's from transfer imposition to the main street cast section is about sixty thousand salary and twenty thousand match look at funding sources the fund balance going to Fisker twenty is forty thousand the phone collected federal revenue the amount of nine hundred and thirty nine thousand those National Park Service grants division spent eight hundred five thousand and twenty two and leaves a balance of a hundred thirty four thousand going to twenty three. On the next page is the historic preservation mainstreet cash in treasury this is page two hundred forty four and this section provides professional services and training to support the main street program activities and to administer the state tax credit program supported by cash fund on page two forty five is there summary the total authorized in twenty three twenty five thousand request for twenty four is a hundred and five thousand crestor twenty five of the United five thousand in the exact recognition provides for the agency request. Looking at what's authorized in twenty three regular salary zero the request for eighty nine thousand it's the same twenty five percent services batching was zeroed out and requests for twenty thousand and this is to accommodate that position transfer that was from the last section that discuss. looking at funding sources the fund balance going to fiscal twenty two was three hundred eighty seven thousand the fund collected cash funds in the amount of ninety eight thousand this is Ravi from technical assistance and Division spend zero dollars a fiscal twenty two delete a balance of four hundred eighty five thousand going to twenty three. Next page two forty six is national heritage commission actually area management cash and treasury this section provides management stewardship funds for national areas throughout the state in support of a cash fund on page two forty seven is there a quest. Of the total authorizing twenty three was three to sixteen thousand it's the same going in through the next the next biennium but there is a reallocation if you look at the professional fees line item it zeroed out for twenty three but there's a sixty thousand dollar quest for twenty four and twenty five and in land acquisition is it decrease from two hundred fifty five thousand two hundred ninety five thousand that is sixty thousand so the reality sixty thousand from the acquisition to professional fees and this is due to an increase in arctic fees and also the exact record a recommendation provides for this request if you look at funding sources at the bottom table The Dallas going to twenty two is six hundred fifteen thousand the fund collected cash funds in the amount of three hundred thirty nine thousand that's interest donations timber thins and grants Division spent under seventy four thousand twenty two that leaves a balance of seven hundred fifty thousand going into twenty three. In exchange levels page two fifty. Thank a to fifteen is natural heritage gas role expenses this section provides for administration the National Commission from gas lease payments is supported by the Arkansas heritage fund. Page two fifty one is a summary. And the total authorized in twenty three is a hundred seventy five thousand request for twenty four and twenty five is four hundred and forty thousand the executive communication provides for this request and this is to align appropriation with revenues this is from gas royalty expenses look at funding sources at the bottom of the page the fund balance going to twenty two fifty nine thousand the fund collected two hundred forty two thousand special revenue another three hundred seven five thousand on the other line and these are gas lease payments and grants reimbursements Division spent twenty thousand eight hundred physically twenty two and it leaves a balance of six hundred fifty six thousand going to twenty three the next item is on page two hundred fifty eight. On page two hundred fifty eight is the national digital newspaper program this section provides historic newspapers available to library of Congress it's supported by federal fund. Of the total authorized in twenty three two hundred eighty four thousand the agency requested three hundred forty five I'm sorry three hundred forty five thousand twenty four that's a twenty two percent increase but then that goes down a bit and twenty five it's only seven percent increase at three to five thousand the exact recognition increases well I spoke with the F. ages before the age classes three and forty five thousand to change the rules they begin with regular salaries in twenty three hundred six thousand was authorized in twenty four two hundred four thousand is a request that is the ninety two percent increase in personal services matching twenty thousands authorize fifty thousands request and these are Sally just means and and to maintain staff requirements to complete the project. The next line items operating expenses under fifty one thousand was authorized it's a decrease in twenty four by forty six percent to eighty one thousand and then twenty five decrease to sixty six thousand and this is this decreases to provide grant funds for personnel in the looking confident travel five thousand nine hundred was the well as authorized in in twenty four twenty five requests for ten thousand. looking at foreign sources the fund balance going into fiscal twenty was fifteen thousand the federal revenue line shows a hundred eight thousands collected the division's been hundred seventeen thousand fiscal twenty two and that leaves a balance of five thousand seven hundred going to twenty three Mister chair that is the last change level for the Division of heritage. Representative Cavenaugh you're recognized for a question thank you Mr chairman here to your right. Good morning thank you for coming my first question is going to be dealing with the conservation tax and it's on two twenty seven. My real question is we have such a large fund balance in this what are we doing or what can we do with that fund balance. Yes ma'am and representative Cavenaugh we we do keep I balance in there but much smaller balance to cover any operating challenges that we might have during the course of the next two years but we intend to you all approve the cultural institutions trust fund and at the last session and we intend to find that with the two and a half million dollar transfer from the conservation tax we have appropriations so we will do to do that that will go to applicants for cultural institutions that are eligible according to the rules that were promulgated so that will use a substantial amount we're also going to ask for a a new rule which will allow us to provide operating support far cultural institutions to mirror the one that was passed for capital improvements so with that we would also use conservation tax to support that project follow Mr. So how much of this fine balance do you think the joint because it continues to grow its it showing that is continuing to grow so I wanna make sure if if we're taxing that were using the tax dollars to the best of their bill of our ability so how much of that do you think what actually get into this fund. We have historically cat about a three million dollar balance in the conservation tax and using it for those purposes will bring it down close to that the conservation tax we anticipate will cool off a little bit we're watching it and to make to see if that happens if not we'll come back to you always recommendations on some new ways to spend that money okay thank you. Senator Dismang you're recognized. Thank you and I just want to go to page. This bill two thirty which is. There's an executive recommendation for fifteen million essentially to pull out of the general revenue allotment reserve funds the future money which is not very typical of or anything that we would see here see if you can walk me through a little bit I mean I think I understand generally what does I'm supportive of the projects I'm not sure that we need to go and set a precedent you know telling agencies they can go capture future money in pre budget meetings but anyway if you can just kind of what we know that's not the agency wrecked but the exact it's even gonna walk me through that. Thank you Senator Dismang we We are a little and clear honestly on how this will will work with the state historic tax credits the appropriation lies with the FNA and so we I'm approved the improvements to historic structures and so we certify the tax credits but we don't have the appropriation so. I'm gonna ask Cynthia who has spoken with the FNA and hopefully can provide some explanation thank you. Morning. In my discussions with DFA S. S. secretary mention rears we don't have all of the details about exactly how this process is supposed to work but our agency is the agency of record that does certify the business qualifies for the credit and it had been due has been determined that the fund would be set up on our agency at this point in order to have a spot to reserve those funds if they become available for any business that qualifies for that credit and at that point if funds are made available they would be deposited into this misappropriation we would have to work with the department of finance administration to determine how those funds then would be utilized and how they would be medicine transferred at that point but that's all we we know at this point so what I'm what I'm hearing is is we're probably not prepared to do this and I'm not I'm not going to that's putting words in your mouth there there may be some there's some additional information to know how we would carry this out again my apprehension would be it's not really something we've done before at least my knowledge and I think at the staff's knowledge either of you again you know setting it up so we're going to transfer funds before hand in the pre budget meetings as far as the program the projects themselves and I'm very support of the math think our downtown's historic districts those with things are the future you know of Arkansas a lot of ways and so I am very supportive would like to make sure we fund you know this type of tax credit moving for but probably not through this method and so you know with that it you know and I'm I would make a recommendation but it proper time I'd like to adopt the agency wreck on this particular section. Thank you senator. Representative Cavenaugh you're recognized thank you Mr chair I'm going to ask questions on two thirty nine now which is the Old State House cash. why is there such a jump projected and operating expenses compared to your actual spend. The page two thirty nine and I've got to tell you sorry. Up until last last year state house had a and appropriated cash fund that they manage to where they were receiving assistance from their their foundation and so they had expenditures that were not showing up in the budget that were flowing through that on appropriated cash fund and our legal department work with the foundation and created anymore you did or a lot of review of the laws and a state statutes concerning the foundation and the agency and it was determined that those funds needed to be into it deposited into the treasury as opposed to going to the ionic property cash fund so we made that change last year to put all those funds into their treasury account and so we had to request additional corporation at that point to be able to spend those funds to the treasury so with this biennial we wanted to adjust their appropriation so that on going for we won't have to go to peer they will have the appropriation available to spend those funds and the fund balance is that because of this transfers that what yes okay all right and I have another question there's nobody else in the queue. All right I'm gonna go to page two forty three which is going to be the start preservation funds. On this it looks like we're getting federal revenue up like nine point nine million but we only gave out grants of a hundred and forty six thousand how come the grants were so low compared to what we actually received. Representative Cavenaugh I'm not sure where you're saying and nine point nine million I'm and that's why I made nine hundred thirty nine thousand sorry. The federal revenue was nine thirty nine but we only gave out of that a hundred and forty six thousand and grants most of it went to apparently operating expenses. The and that is how we use the federal grant to operate part of the department we also get real estate transfer tax to operate the department and we get substantial grants now to county courthouses to cities five oh one C. threes that on historic properties those grants are funded primarily through to the real estate transfer tax collections that fund the department okay so this is the grants are actually going to be in another appropriation yes ma'am daycare in real estate transfer tax okay. Follow up Mr. And this is going to go to page number me find which one I really want to ask. One page number two fifty one which is the Arkansas here to special fund account. The fund balance compared to watcher expenses have been is like a thirty one point five year fund balance what what are we going to do with that fund. This is this is the gas royalty yes I'm. Primarily yes for acquisition of land the gas royalties as you all know I'm robust originally they dropped off substantially and now they have picked up some but that money is used primarily for our land acquisition and maintenance. Okay. Well then that's going to tie into two fifty three. Which is the natural heritage federal fund account it says that this appropriation uses federal funds to perform the inventory and data management function of the natural heritage commission. This division utilizes appropriation for personal services and operating expenses. But you're asking for a one point seven million dollar appropriation for land acquisition. Natural heritage works and secures and grants a lot of federal grants state grants and they use that primarily for land acquisition and and matching money far additional funds to acquire land for the natural areas program okay I noticed in actual twenty one twenty two we didn't spend any money on land acquisition but we had. Appropriate one point seven. Million. Is that a mistake or is that true. There was land acquisition. Probably it was in another well it was in another pot the natural and cultural resources council trust fund also provides funding for acquisition of land for natural heritage so there was land acquisition in twenty one twenty two as well it just is not in this business area okay. In the. Compared to what you're spending is. There's ten point three years worth in the fund balance so I mean will we be using this for land acquisition I mean what what's are projected I mean what projects are we looking at using because we keep asking for the one point seven but if we're not spending that. Yes ma'am right they have a priority plan for land acquisition and it's based on availability and so they have a number of sources of funding that they use to acquire land for the natural areas program so that they do have an extensive master plan priority areas across the state of Arkansas and then they work to secure the land as it becomes available do you know what those priority areas are they're all across the state of Arkansas I am happy to share with you all day a map that shows those areas with some explanation yeah if you could I appreciate that absolutely thank you thank you. Representable you're recognized. Thank you Mr chairman madam secretary I won't talk just a moment about your personnel of a city that you have a. Approximately a hundred and seventy vacant positions thirty. Thirty percent of those are over two years so my first question is I have Hey have you relinquished any positions under the new law that we passed in the last session if so how many yes Sir we have I have the latest list from our H. R. and manager and there are a total of forty seven positions that are listed and two years are more being vacant and we are hoping to retain twenty three of those there are twenty four that have essentially been eliminated the of the of the forty seven yes twenty four of billing lemonade yes okay in the report I've got it shows is just mind shows of fifty two positions with six. Six in the Department of Willis's twelve Department urgent parks and tourism has thirty four we will we'll or four five agility turned in twenty four. Follow up from a Mister chairman. Are you looking at everyone of these positions relative to total the I mean if you give it up twenty four that's great we appreciate that but do you continue. I get my money hello we have some of these been like. With you know the years three years four years two years. Yes Sir I'm looking at the list now most of them are three three number four there is one I'm looking at that is five years that was a grants analyst and we will we have sought to retain that position we do watch it closely and try to recognize it if we haven't failed to position and five years we we probably are not planning to use it you can give it up we do have being very outward facing agency we have during the pandemic we were able to not feel as many positions and now we're finding the need to help positions that were vacant for a couple of years so we're playing a bit of catch up right now I think we'll soon find are at the spot at which we can operate effectively and will be able to potentially let go of more positions well a committee I noticed one and I can't remember what page but the head authorized ninety three you only used I think eighty four and you cut down to eighty four and your request we appreciate that thank you very much thank you Mr chairman. Representative Cavenaugh you're recognized thank you this is gonna be on page two fifty nine which is that digital newspaper program. Skews me. If you look at your regular salaries you currently so your spam for regular salaries to be seventy thousand with two employees which is about thirty five thousand each. Then you've got a request that takes it to two hundred and four thousand dollars for two employees as a hundred two thousand dollars at the. Massive increase and then if you go to twenty four twenty five it drops down to one eighty one that still ninety thousand per employee that. That's a whole bunch increase. The this program is a grant that was awarded to the state archives section and the grant started we're in the I believe the third cycle of the grant so as the grant funds spend down then where we can spend it also goes down so the decrease in the salaries that were there for the previous year is because the the grant award of funds were were less to receive so that the agency has has requested to get a final another grant award that will take go over into twenty twenty five and so these requests are to provide for that additional funding that will come from from that grant ward and at that point we would be able to spend more on personnel because we switched a. They seek to move the funds between operations and personnel so that we get pay staff more than using the freemen type expenses but that's the anticipation of getting that grant award and being able to pay more personnel costs well you personnel number does not increase gesture expense so you're currently saying you're paying thirty five and then now you want to jump on to a hundred and two thousand dollars I mean that's a. As a big increase adds more than almost triple what they currently make so we're going to give somebody three times what they're currently making because we got federal money coming at that point the personal quest would be in change to be able to accommodate the number of people that we could pay from that salary so we do not make any personnel requested this point to increase that the number of people we were paying in that in that fund and how many do you project that you're going to pay out of that fund. Maybe up to four people okay. And did you say this project is projected to and in twenty four twenty five yes ma'am okay thank you. I see no further questions all go to Senator Dismang for his motion. And stepped out. Okay so. If I can get a motion to accept agency. Request on. Page two thirty one. I got that so moved second second although the favor say aye. All oppose ayes have it now I need a motion to accept the rest of the budget. Goodman. You have discussed numbers are recognized for. Thank you Mr chair so I wanted to get the FNA to the to actually answer the question why was this necessary we we don't question anyone under discussion on the motion once most floor we take a vote all right. So with that I have a motion for representatives of lane second by representative Fortner for the executive director of the rest of the budget all those favor say aye. All opposed us have it so with that will move forward to. Arts council so Billy you're recognized. Thank you Mr chair in the Arkansas arts council this is on page two hundred sixty two. So on page two a six to the arts council and this council seeks to advance arson Arkansas the council expands cultural education opportunities by investing in museums theaters symphonies and other providers of artistic programming Page two six to show state contracts were to mind a to minority owned businesses and employment summary and publications. On page two sixty three is the Department corporation summary and twenty three one point one five name is authorized to request for twenty four as one point one six four that's a one percent increase in this again I want to increase in twenty five the Division has to appropriation request the only change levels request for salary match justice to continue into the biennium the total authorized budget in twenty three against one point five and the executive commission provides for the agency request they do have American rescue plan appropriations spending twenty two is shown but the preparation is not requested this division's funding from federal grants and cash funds from registration fees sales and interest income. If you look on page two a sixty four this is the arts council federal program and on page two sixty five is there summary the total authorizes eight hundred fifty four thousand three quest for twenty four is a hundred sixty five thousand that's a again one percent increase in twenty five three hundred sixty six thousand and executive commission files for that request the only change levels are regular salaries persons that personal services matching with those salary match just minutes moving forward into the biennium looking at the fund sources a table at the bottom of the page this is on page two sixty five the fund balance going into twenty two was under sixty three thousand the fund collected federal revenue in the amount of seventy twenty five thousand the Division spend five hundred and two thousand twenty two that leaves a balance of three hundred eighty six thousand going into twenty three this year those are the only changeable for the Arkansas arts council. Thanks any questions for the agency. C. N. under I have a motion. So moved by representative lane a second by representative Fortner. The motion is executive director all those in favor say aye. All opposed Is have it so with that we'll go to natural and cultural resources council bill you're recognized thank you share on page two sixty nine this is natural cultural resources council. The Arkansas natural cultural resources council administers grants in trust fund for the acquisition management and stewardship of state owned properties acquired and used or use for council approved purposes grants are for projects that protect them maintain state owned natural areas historic sites in outdoor recreation on page two and six nine state contracts or to minority owned businesses and publications are shown. One page two seventy is the department appropriation summary the Division has three appropriation requests only one has a change level the total authorized budget and twenty threes forty two million the council request fifty four million for the biennium that's a twelve million dollar increase for about twenty nine percent exactly recognition provides for this agency request and the division's funding from eighty percent of the proceeds from the state real estate transfer tax on page two seventy three is the change level. So if you go to page two seventy three this is in C. R. C. state owned lands or historic sites and this section allows the council to make grants for the acquisition management stewardship of state on property the appropriation from this section is transferred to agencies when grants are made by the council as this is supported by the national cultural heritage grant and trust fund Page two seventy four is the Corporation summary the total authorizing twenty threes thirty six thousand I'm sorry thirty six million requests for twenty four is forty eight million that is a thirty percent three percent increase and that carries over into twenty five the executor recommendation provides for this agency requests and this is all the grants and aids line item this increase allows for the department to disperse the increased funding from Arkansas real estate transfer tax we look at fund sources on the bottom table the fund balance going into twenty two is fifty three million the fund collected a hundred fifty seven thousand and interest and the real estate transfer tax shows forty five million in proceeds I know that on page two oh six of the tax handbook the you have this shows how the proceeds from this tax increase and the increased by ten percent is clear twenty thirty two percent twenty one and twenty nine percent fiscal year twenty two the council transferred twenty million through their inner agency process and twenty nine thousand to the intrade missed process in physically twenty two that leaves a balance of seventy eight point five million going into fiscal year twenty three sure those are all the change levels for this division. Represent Dotson you're recognized for a question. Actually it's representative makes pertaining to be represented Dotson that's okay so what my my first I've actually have two questions that the the first one is on the increase the five from thirty six to forty eight million dollars can you kind of give us an outline of what you plan on doing with the that increase and then the second question that I have is you have an appropriation it's two AM Z. the and C. R. C. administration appropriation which is all zeros and has a fine balance of two thousand dollars do we still need that. It's on page two seventy two of the R. vote. I'm so to answer your last question that was far that a grants manager Deborah faith and and she is part of shared services now okay so that appropriation can go away yes Sir okay right right will note that the proper time and then for the. So to your first first question the the surplus that we see in in C. R. C. now is due to some term back many some projects that were not completed in the two year grant cycle there were a couple and that had substantial grants that the project was unable to be completed and so at the end of the two year cycle they have to return the full grant. On top of the fact that real estate transfer tax collections were robust as we have heard so we have a surplus that we need to distribute that the grants and we have an excess of applications for the projects every year it always exceeds the grant amount that we can provide. So that we won't have any problem distributing the amount of money because we've always had a surplus of applications as you will note that in C. R. C. supports projects across the state of Arkansas university facilities anything that is state owned can be funded through the S. upgrades to the state capitol the Committee meeting rooms were improved within C. R. C. finds that blind and deaf school have received large grants desperately needed so the fund will be the small grants alleged yes Sir for the additional grants okay and just to verify because I saw your team all conferring wanna make sure we still get to get rid of that approach yes I think we need a clarification thank you need a clarification on the second question we we don't have any appropriation there but we do use the appropriation to make I transfers between the agency so we do need to keep that for transfer purposes we just didn't have a appropriation budget there are okay so I'm so even though the it's all zeros H. you you still needed as a mechanism will allow for okay all right thank you for that clarification thank you Mr. Representative Cavenaugh you're recognized thank you Mr this is going to be along the lines of representative makes we're talking about the excess of applications for the grants this shows you didn't give out any grants and twenty one twenty two. And that also goes for the mainstreet program it also has an excess and finding balance and it doesn't show any grants were given out. One. The expenditures for grants will not show up in this appropriation these appropriations I hear only for for us to to receive the funds the the appropriation is transferred to every individual agency and so the grant expenditures for show up on the books of the actual agency that receive them and then the the other one the one the six million dollar one that's the same thing that appropriation is transferred into another fine on department heritage and that's whether grant awards it was is under a business area a sixty five okay can you get us a list of those grant so we can see how much we're actually were given out so we'll have it because when we look at it looks like you're not giving out anything when you really are so that kind of helps us now so yes ma'am okay we'll show you A nice history again C. R. C. I appreciate it. Representative wouldn't you're recognized. Yes own Page of two seventy four a real question about your interest Your actual showing a hundred fifty seven thousand five hundred thirty one dollars an interest but then in twenty four and twenty five you don't you don't show any is that money out are you not investing the money to draw interest or. Yes Sir we do wait we do try to place the money and places where we can earn interest and then that is included as calculate what grant amount we can give out each may so the answer short answer is yes Sir we will try to get interest on these funds we play some of it with the treasury and we make investments yes Sir. Okay so. Where is the. You don't have any of the Seventy eight million or fifty three million. Invest in at this point. Okay you don't have an estimated number to we do have we do have a currently invested we we work with the different agencies to seek determine how much of it are they going to need for a certain time period and based on their needs we invest whatever balances left to to invest at that particular point so we don't have a certain amount that we can invest in any at all times we just work with the needs of the agencies because we're we hold the funds we transfer to the agency's best based on their needs and so if they have funds that they're not going to need we will Investimento and our interest so we really there's no projects didn't checks projection in those two years is because what we earn for interest is really going to be based on how much we have available to invest at that time but we typically always invest every year and then what we aren't for interest is based on what kind of results we get from a to B. it's here lately we've not gotten very many interest in B. as in our investments have been made mainly in commercial paper because we not getting any other interested so we just don't have a projection of how much that interest will be but we do earn interest every year on the advise you do invest within yes Sir thank you thank you Mr. Senator Hammer you're recognized thank you Mr I was looking at your increase. For the budget on the shared services transferred I notice that it's going up and a look at a couple other categories under your rock on bro and I noticed that some of those are also going up could you give me a understanding of why the shared service costs are going up or my misreading that. The calls for shared services are always going to be pretty much based on the cost of doing business for instance operational costs the shared services costs are transferred to our share services business area and so increase in personnel costs and increasing operational costs are the two main reasons for I shared services expenses going up and so as those expenses go up the portion that is funded from each one of the different sections will go accordingly. If if the costs are transferred over to the shared service category are the adjusted down in the area that they came from usually yes and how would I see that in the budget reporter where would I identify that or how would I go about looking at that when is it there be online this is shared services transfers on the on each one of the appropriations were we the funds are coming from it will be reflected on the appropriation. Okay and is that in our book letters at a separate form is in here it'll be in the book on there in the funding section you should see is online as a share services transfer. That's the announcmenet from that particular appropriation that was transfer for shared services okay thank you. The Cavenaugh you're recognized thank you I'm going to go back to page two seventy four talking about the excess funds they got me the list of of grants that we actually gave out in twenty two we collected forty five three forty five point three million dollars and we gave out twenty nine point nine of those so. We don't give out grants what we collected. Quote by quite a bit and then when I'm looking at these I noticed that most of these are going to state projects. They're going to the State Parks Arkansas heritage. they're going to eat Arkansas archeological survey UAF Arkansas forestry secretary of state. Arkansas state university Henderson south Arkansas community University of Arkansas in Fayetteville and pine bluff. And Ridge mountain so are we just using these grants as a way to get other state agencies money to do their projects. To the first question we spent the appropriation that we had far twenty fiscal year twenty two so we. Spent the full appropriation we did come back to them to you all and ask for additional appropriation last year because we knew we had surplus money and we spent up to that a full appropriation I'm the grant the and see our state was a legislative act and it was created to support state owned facilities for the acquisition of state owned lands so it is very much supported them is one hundred percent supportive of state owned properties and amenities that that is how the in C. R. C. was designed and. To function and so the real estate transfer tax is divided between outdoor recreation grants the Arkansas historic preservation program and main street and then the natural cultural resources council trust fund. Okay is gets eighty percent okay when you say acquisition that makes makes thank that we're buying new stuff. The acquisition is based on land acquisition so the natural heritage commission can use in C. R. C. to acquire land for conservation purposes state parks can use it to acquire land to expand state parks but we might also use it in heritage for the acquisition of artifacts or are To create exhibit secure for your needs so it is for the acquisition and that in that regard the rest of it is far it's primarily based on historic preservation so big projects like the state capital we. Gave the secretary of state a large grant I believe is about a million dollars for the windows for the windows yes ma'am so that historic windows have been repaired replaced by the historic president by the natural cultural resources council trust fund okay thank you. I see no further questions. Do I have a motion. I have a motion from representative makes. Second from a representative Fortner. All those in favor say aye. All opposed are seventh with that we'll move on to state parks and tourism division bill you're recognized. Thank you Mr chairman page two seventy seven sieve you moved that to seventy seven in your binder. This is the parks and tourism divisions and the parks was an division's mission is to enhance quality of life through outdoor experiences connections Arkansas heritage and resource management there are fifty four state parks located across state. Home pages two seven seven through eight that this shows the employment summary publications and state contracts awarded to minority owned businesses. On page two seventy nine as department preparation summary the Division has fourteen requests up all the five sections have a change level for something other than normal salary adjustments being carried over into the new biennium the total off road budget in twenty three is a hundred and seventy million in spending Authority Division request to engine thirteen million for the biennium that's a forty three million dollar increase for about twenty five percent change level exactly recommendation provides for just a hundred twenty thousand I'm sorry hundred twelve thousand less than the agency requests the Division is funded from general revenues special revenue from forty five percent of the one eight Senate conservation sales tax federal grants in cash funds from sales and rentals of state parks the first change levels on page two eighty five. Page two eighty five as the operations and this section provides for administration of the Division is supported by general revenue fund account. On page two eighty six is there summary and the total authorizing twenty three sixteen million forty six thousand three questions twenty four is eighteen million to thirty five thousand that's about a fourteen percent increase goes up a little more twenty five at fifteen percent increase in the executive conditions for eight hundred sixty seven dollars less than the eight then the is your quest those change those begin the regular salaries line item was authorized twenty three is eleven point four million requests and twenty fourth twelve point eight that's a twelve percent increase there's another twelve percent increase in twenty five persons are snatching shows four point five and twenty three and twenty four it's five point three that's an eighteen percent increase it's a little bit more twenty five F. five point six million that's a twenty three percent increase these are mostly salary matching just means that our continued incident The New biennium the agency also request free classifications and upgrades the executive recognition provides for the adjustments but not for the classifications and upgrades and that's eight hundred six seven dollar difference if you look at funding sources the phone collected nineteen twenty million in general revenue the division does not have carry for language so there are no fund balances. If you look at the next page to page two eighty seven is a conservation tax and this section provides for this Special Revenue mensuration the Division it's supported by the special revenue fund. On page two eighty eight is there summary the total authorizing twenty threes fifty five point three million three questions twenty four sixty five point six that's a nineteen percent increase in the another nineteen percent increase in twenty five exactly recommendations for forty seven thousand less than the agency requested each year. looking to change levels they begin with regular salaries well as authorized twenty three six point three million your quest for seven million that's an eleven percent increase is and that carries over twenty five persons services matching this two point six authorized in twenty four the request is a little over three million that's a sixteen percent increase it's more and twenty five it's three point two million that's a twenty percent increase again these are primarily salary match justice continued to new biennium the agency also request a new position the executor recognition provides for the Justin's but not for the new position and that accounts for that forty seven thousand dollar difference within operating expenses was authorized in twenty three is eleven point six and twenty four at the request is twelve point three to same in twenty five at a six percent increase and this is due to rising costs of operations from an flexion constructions next line item twenty six point eight million is what's authorize requests for thirty two point eight that is a six million on inference for twenty two percent takes the same and twenty five and this is to accommodate large construction projects for continued in planning new projects. Looking a capital outlay one point eight million was authorized requesting twenty four is three point five million that's eighty six percent increase its the same and twenty five and this is due to the backlog of equipment caused by destruction I'm sorry this distribution interruptions and the need for specialized equipment and also increase because of overall capital asset purchases looking at special maintenance what was authorized twenty threes three point one million requested twenty four as four million that's a twenty six percent increase and this is due to increased cost of construction materials and contracting contract vendor costs required to maintain and support infrastructure and parks. If you go down to funding sources at the bottom of the page the bottom table the fund balance going into twenty two is twenty nine point five four million the fund collected special revenue in the amount of forty three million that's one eight cent conservation sales tax and the Division spent twenty million to scare twenty two leaves a balance of forty three point nine million going into twenty three. Next page this page two eighty nine this is keep Arkansas beautiful is and this section provides for the administration of that program it's supported by special revenue fund. On page two ninety is there summary and the total authorizing twenty trees eight hundred sixty nine thousand three questions twenty four is a little over a million that's an eighteen percent increase in twenty five it's a little bit more than that twenty percent increase exactly recognition provides for this agency request change that will be given extra help with authorized twenty threes two thousand five hundred requests for six thousand as a thirty five dollar difference and personal services matching forty six thousand is authorized fifty one thousands request that a ten percent increase it goes up to fourteen percent twenty five of fifty three thousand this is to allow for amending their mascot and providing supplies for community cleanups the next line is operating expenses seventy six thousands is authorized to request for eighty eight thousand that's a sixteen percent increase this is insane twenty five this is increased trap of increased travel official calls. Looking at conference and travel fifteen hundred is authorized five thousands request and that's a thirty five dollar difference it's the same twenty five this is to attend national litter prevention and education awareness conferences and sent in seminars necklines grants and aid twenty thousands with authorized for that line item there is no change twenty four and twenty five it's forty thousand seven doubles and this is increased opportunities for community grants the last line item of the changes that resides expenses four hundred sixty nine thousand was authorized six hundred thousands requests that's a twenty percent increase stamen twenty five and this is due to the statewide marketing and advertising campaigns the funding sources table it shows a balance going to twenty with six hundred and seventy six thousand the fund collected conservation tax in the amount of nine hundred fifty seven thousand Division spent six hundred ninety thousand twenty two that leaves a balance of nine hundred sixteen thousand going into twenty three. Next item is on page two ninety one this is the tourism promotion special revenue section and this revised for the initiation that program supported by special revenue fund on page two ninety two is a summary the total authorizing twenty threes eighteen million there are questions twenty four is twenty eight point four million at the fifty seven percent increase that's carried over through the biennium exactly recommendations just for six thousand dollars less than the agency requests. Change the wheels began regular salaries two hundred forty thousands authorized requests for two hundred eighty thousand that's a sixteen percent increase for each year person services matching was ninety nine thousand authorized hundred twenty thousands request in twenty four two hundred twenty four thousand twenty five that goes twenty percent increase in twenty four twenty five percent increase in twenty five these are mostly salary match just months but the age you also request a title change in upgrades the second recognition provides for the distance but not for the purpose of position of grades and that accounts for that six thousand forty six nine dollar difference from the agency request. The operating expenses a line item shows one point four million was authorized request in twenty four is three point one million so that doubles and then in twenty five because of work at three point two million these are improvements to welcome centers uniforms a staff trains a confident travels next one item thirty nine thousand is authorized forty thousand is is request is only three percent change and and twenty five goes up to forty one thousand so that's a six percent change and this is due to rising fuel costs professional fees is an acronym six hundred fifteen thousand was the not authorized two point two million is what's requested and that's one point six billion dollar difference at the same and twenty five this is due to a new vendor for publication orders research projects marketing. Next line items capital LA seventy thousands with authorized requests for a hundred twenty five thousand at the same university change and this is to replace aging vehicles towards promotions in excellent item one point seven is what was authorized two point nine was requested so that's a sixty five percent increase the same twenty five this is due to increased grant awards for regional towards associations meeting and support instances in towards in promotional sponsorships I'm sorry a partnerships. The last line items advertising expense thirteen point six was what it's what is authorized nineteen point three as what's requested that the forty percent forty one percent increase that carries over to twenty five this is for new attractions like the Cold War museum still tending Musial Arkansas museum of fine arts twenty twenty four eclipse and additional projects needing advertising marketing and PR. looking at funding sources at the bottom table the balance going to twenty two a six point five million the phone collected special revenue the amount of twenty two point two seven million that's from two percent gross receipts tax on towards related businesses and Division spent fifteen point eight million in twenty two that leaves a balance of eleven point five million going to twenty three. The next pages next request this is page two ninety three wildlife observation trails and this section provides for the administration of a program in partnership with Arkansas game and fish commission to promote conservation and management of wildlife resources into prop up more towards women and economic development to the enjoyment use protection and improvement of that's resources in the state is supported by a transfer from game and fish commission for that's from royalties from one gas leases. Page due to the force request the agency request this continuing this appropriation Anne's at correct recommendation provides for that request there are no fund balances no revenues and no expenses for fiscal year twenty two next item is on page two ninety seven. So if you turn the page to ninety seven this is operations and construction cash and treasury and this provides for the staff and operations support to to park museum activities in support of a cash fund on page two nineteenths their summary. Well as authorized in twenty three thirty seven point one million and twenty for the requesting thirty eight point three they're requesting a little less than twenty five thirty seven million so it's a three percent increase for twenty four it's decrease of less than one percent twenty five the second recommendations for fifty thousand less than the agency requested each year. Looking at change levels of services regular salaries seven point eight million as authorized requests for eight point five that's a ten percent increase it carries over twenty five extra help is four point six million was authorized three questions for five point three million that's a fifteen percent increase for each year in person services batching shows three point four was authorized three point nine as requests at sixteen percent increase in twenty four it goes up to four point one million twenty five that's a twenty percent increase again most of these are salary matching Justin's they do request to restore growth position adding new position The reclassification upgrades the second recognition provides for the Justin's but not for the re classifications upgrade to the new position and that is what accounts for that fifty thousand dollar difference. Looking operating expenses nine point nine million was authorized ten point four million of the request that's a five hundred thousand dollar difference for about a five percent increase this is rising costs of operations due to inflation capital A. is authorized to fifty thousand for the first year it goes up to five hundred thousand so it doubles in the same twenty five this is increase cap or placements that are anticipated. And the last change levels on debt service three million fifty thousand is what's authorized one point five million Swiss request is still goes down by half and then in twenty five it zeroed out and this is the decrease due to reduction required payments to mount magazine for their bond maturing in twenty twenty four. the funding sources table it shows the balance going to twenty two a seven point five nine million the fund collected cash the cash fund launches thirty four points of five thirty four point seven five million and that's from fees rentals and sales from state park system the Division spent thirty one point eight million twenty two and that leaves a balance of nine point eight two million going in twenty three on the next page is retirement relocation program and this provides for the administration of that program it's support by trust fund. Page three hundred three quest. the total authorizes ninety sixty thousand requested twenty fourth for the same so This Is reallocation and the exact recommendation provides for that request the reallocation happens on the operating expenses line item it goes from what was authorized in twenty three of fifty thousand to sixty thousand so it's a ten thousand dollar increase and then for confident travel eight goes from ten thousand zero so that's where the changes coming from and this is to allow for proper classification to travel expenditures the next item is on the next the exchange of the next page three oh one this is the toward some cash in treasury. And this section provides for the operations of the gift shop in the central office supported by cash fund go to page three oh two there's a chill there's summary. The agency your question discontinue this preparation due to closure of the gift shop in the exact recognition provides for that agency request next item is on page three oh seven so if you move forward Page three oh seven. This is the Walton family foundation delta health care district grant a cash fund this section spends a grant from the Walton family foundation on the development of the delta heritage still delta heritage trail state park support by cash fund account. On page three oh eight is their suffering and. Twenty millions what was authorized twenty three three the the request for the biennial is forty million forty two thousand so it doubles and the executor executor recognition provides for this request this is due to they receive federal funding from the rebuilding America raise grant to complete the park. Mr cheered those are all the change doubles for this division. Thank you. Of Senator Stubblefield you're recognized. Thank you Mr. Do you do you remember how much are from money received. How much arpa yes I'm we have received three point six million in our promote a farmer and connectivity. And I believe that's all we proceed. the EDA money. President of these have you spent forty four eight we got an eighty a grant For tourism yes how much of that is you have you spent. How much of that money should be spent Hendren and. Hundred and fifty hundred twenty two thousand hundred twenty two thousand yes. What are your plans for the expenditure of the remaining balance. By that for the EDA grant right click I'm we are working now on a strategic plan we have engaged a consultant we're working on that we're also doing a brand audit to make sure that our tourism brand is resonating well so those are under way we haven't paid on those yet but those projects are under way so you have almost three million dollars remaining. Yes Sir we have we have an expanded it we have started the work on. What what what those what that money will fund a you do you have any idea when that'll be completed. I'm the strategic plan will not be ready until the next fiscal year the brand audit should be done very soon we also are doing a analysis of our typical customer that travels to Arkansas that is under way as well that should be relatively soon as well can we get a break down of how you intend to spend that money yes Sir all right I would I would appreciate I'd like to see that yes Sir we're happy to thank you thank you Mr chairman. If you would send that to committee staffs then get out all the membership we will represent Holcomb you're recognized. Thank you Mr my questions on page two ninety two operating expense of action was one of those two one four one two three three. three point one can you kind of. Give me expressed on that and also on professional fees tracks or three ninety four budgeted six fifteen or one to two point two million on that could those two are my question on on two nine two if you could give me a little election actually. For the. Operation of services them in expenses they are to allow for improvements to the the welcome centers for equipment needs that needs to be replaced and infrastructure and broadband and network connectivity in those areas and also we upgrading of our uniforms for our staff members there and for training is very is types of things that just need some more attention. And then for the professional fees we have. We have some new fulfillment vendors. Providing some services and we have research projects that are going on in marketing opportunities that they're going to be used for. This seems like a lot the team you know more than more than that more than doubled on the engine tripled our own version of fees or. No more thing I know that that Arkansas tourism is doing is I'm we have an opportunity to do more research than we have been doing and so engaging more consultants and figuring out our best approach on Arkansas tourism and this is all of this work is funded through the two percent tourism tax which we have seen a substantial increase and and so we're using it to create the best possible scenario for the future for Arkansas tourism so we're really trying to use this money in a wise way and create a very firm foundation going forward thank you Mr. Representative makes you're recognized thanks chairman so a couple weeks ago I have the opportunity to do some camping in paging State Park beautiful park beautiful weekend But on the capital outlay kind of a question that occurred to me. In these camping areas are weeds putting any kind of plan in place or. putting any emphasis on building storm shelters because I'm I was walking through the campsite is a all these campers out there and god forbid S. the storm or come through there there would be no way for those people to go to seek shelter and so that's my first question is in and in these capital outlays increases is that included in any of them from that I've got one more question after that representative makes cannot get some feedback on that question from our state parks director who is here in the audience. That is obviously we want these people to come and enjoy our state parks but the same time we wanna make sure they're safe while they're here that's right thank you and thank you for visiting our state parks we do provide shelters are bath houses are built to help provide shelter for that A. R. park Rangers live on staff in the event they monitor weather conditions in the event of emergency they evacuate the campers to the nearest say facilities which typically or the bath houses that are built block construction of for that protection if that's not the case they have a plan in place for giving the visitors and guests to the right locations for safety in the in the in the parks okay but at this time is no plans to upgrade any of those because I want the bath houses that had a gene in the second year I don't know if that would be safer than a tent obviously but I don't know how much protection against tornado but so just to make sure I want to but if not please make sure that's on your radar for potential upgrades to to those going forward my next question is on both on to ninety two and on two ninety eight on both of these are sources of revenue so on to ninety two. Your fund balance going into this year of six point four million it looks like we're looking at eleven million then we get to twenty four twenty five it's going to drop from eleven million to six million. Page two ninety eight this one's even more concerning to me is a fine balance next year's nine million but by the time we get to twenty four twenty five dropped zero. So that seems to me that's like we're dipping into our savings and we're going to exhaust our savings Am I reading that correctly that we're planning on exhausting our tire savings in that. Area and how are we going to. You know because then the following year work from all right so how do we I am I reading that correct and if so what's the plan to try to mitigate that. To address the question on page two ninety eight the the calculation is in this funding section if I'm if I'm not mistaken is that it's based on the the assumption that you're using all of your budget and so when a projected out into twenty five in this in the POS system it dropped to to zero balance we are not projecting to expand all of our fund balance our certification of income does not drop that balance down to zero it actually. Just a second I can tell you what we. What we project for fund balance in that account. We projected fund balance going forward into twenty five of a point three million dollars. Okay. is that something Kevin can I have you all look into that may be verified double check that for us because your saying zero or whoever's put this together saying zero on there saying a million that's a huge discrepancy so are gonna be curious as to. What I don't want to happen is I don't want to get twenty five and it actually be zero and suddenly all or coming to us saying Hey we're broke we you know. Jagiellon stand the concern there so that's something that we could figure out how to get that addressed a representative of given a actually Budget Office put these manuals together and I see Mr Breck's ready to answer that if you want to hear from him this time sure that that that move may be great but I just want the assurance that in two years we're not gonna be be broken having emergency meetings trying to figure out how we solve a problem that maybe we could if you would Mr break introduce yourself for the record you're welcome dancer representative makes question Robert record of Budget Office the way the manuals are set up you have to go off of their proper operation that's what they're authorized to spend so when we put these manuals together that's what comes off the top of this for you it looks like to fund balances are needed to be depleting if you look at the weather actual expenses are are probably give you a true picture of where they would be but you know the only way to in the system wanted we restrict their appropriation of to be more aligned with what their expenses are but that would also hamstring then in the event that they needed to spend money so we're kind of. We're kind of in a bind I think that the they're correct in their fund balances probably will be closer to eight million up but they do need that flexibility in their preparation of times if there's an emergency or if they need to spend more funds but that's kind of of one of the biggest pitfalls of of the of the process for a program so so the the numbers reflecting here would be sort of a worst case scenario worst case that that's correct okay all right thank you thank you Mr. Representative Cavenaugh. Thank you Mr chair just to follow up on page two ninety two real quick on the small festival expenses. We're showing that we only got about fifty five hundred dollars worth um I guess help to small festivals how come we're not doing more to the small festivals because I'll be honest with you that's one of the biggest tourism's and roll Arkansas is the small festivals and I know everyone of us in our counties have multiple small festivals that could use assistance in this. Representative Cavenaugh thank you I agree with you I think we should expand more these funds the rules are written in a way that are a little restrictive and so we probably need to change our rules and promote this opportunity better and so that will be in our plans going forward if we can do that I mean it is a I'll speak the town I live in Walnut Ridge Beatles at the festival or a five thousand you know population we bring in fifteen thousand people for that so it's a huge opportunity in and revenue source for the small rural communities and if we can give them assistance that really does help them I would appreciate that with that I really do have a question on two eighty two this is the federal I from the statewide comprehensive outdoor recreation plan my question is for it's all fairly funded and we're asking for eight point four million dollar appropriation. But historically the most we've ever gotten in federal money is two point three million dollars why do we keep asking for this over appropriation when we're not going to get the eight point two million dollars from the feds. This program is a grant program is based on grants and so we acts for the appropriation to cover the commitments that we have we make commitments for grant programs and they don't they generally don't. And in as far as one year they typically carry over from year to year they could carry over over multiple years but because we do have a commitment there then we we keep we keep the appropriation will actually receive the funds for that appropriation those commitments until the project is completed and at that point we acts for the funds from the fits then pay is a reimbursement program so we have to have the ability to keep the commitments that we have made for the grant awards and the funds are always available they're committed to the school program that we receive them at the time the grant project is completed okay what when I was looking back in the a book on your historical money that you've gotten on this from the feds the most you've ever gotten his dog two point three million dollars. But we're asking for eight point three million so are you saying there are says the eighty eight point three and the grants are you saying that you got eight point three million dollars worth of grants already commit it but we don't project get that money from the feds. Yet the appropriation reflects commitments as well as additional funding so it may be a two or even three year process that we actually from the time we actually makes a grant to it actually comes in and goes out and so it it looks much more inflated they were actually granting out but that's because we have to have the appropriation in place to cover commitments. Even though you're not getting the federal dollars for them yet we. Correct well we do get some federal dollars during the course of the year. But we also have commitments on top of that money that we're receiving. Okay MSK it's it's kinda it's very we have a an accounting person who manages that specifically. Okay appreciate that and I have a follow up question but this is going to be on page two eighty eight. Thank you on. Your construction. We had a appropriation for two twenty six point eight million. But the only spent three point four three point one million what are going to be these construction needs I mean water we constructing that we need. So part of the challenge shape you like to come up to add to it part of the challenge is our ability to complete the projects they are time consuming and lengthy and so we have over a hundred million dollars and minor maintenance we have capital capital projects and they frequently take longer than we thank But we do with conservation tax we have an opportunity to increase our spend on construction related projects J. that's correct we have a secretary Hirsch's correct we have a to programs that fund in support of our major means programming or capital improvement program we have a five year plan laid out for the capital improvement program it's at total needs of two hundred thirty four million and six hundred and seventy toll projects that are forecasted over the next five years so there's plenty of projects with secretaries correct it's our ability to to get those projects through the process done in a timely manner so that's the the reason for the request for the increase do you mind sharing those projects so we can kind of say with staff so we can get it out to kind of see where that that money's going to go and then on to ninety six which is your outdoor recreation grant program we do have a large fund balance in that also and. I guess the most and we given in grants is three point four million dollars it looks like an eighteen nineteen are you projecting more needs for grants are there more applicants that what you're able to get because we we authorized nine point seven million but you only gave out three million now realize your you know you had the fund balance you could gave out all if they applied are they not applying or. These grants they are some of the grants are reimbursement amid majority a great many of them are reimbursement grants and so we only give out fund will only pay when they complete a project and do and request the reimbursement some of the others are grants that when they when they if they qualify for them they do get to receive the funds up front and so it depends on the applications and what which grants are are received how much is actually expended out. Okay. But so are there's. Yes we do with this is funded through the real estate transfer tax and we will have additional funds to grant out okay so we will be able to get more out is ma'am is that per how do you advertise that process to the people looking for this money you know our our staff works has worked for many years of cities and unincorporated areas that but we could probably do a better job of promoting this opportunity And we do have a website but it's a committee that has been appointed by the governor and it's the same committee that's done it for many years but as far as I know that it's just word of mouth right now okay shady agree with them it's it's promoted annually are the grand cycle takes place closes in August on annual basis there are always more applications than there are funds and so there is room here for that increase to to support additional grant. Well we've got the applications it doesn't show we're funded near what we're bringing and so if we. So there's plenty applications I don't know why we didn't find a hundred percent of all but I mean sold we just wanna make sure because somebody from a rule area these types of grants can really again help these role areas as all well aware of so and I do want to say I really do appreciate what you did for Patton it turned out beautiful I appreciate all taken the interest in that because that's a history of we don't do something is lost so I really do appreciate that but I'm really trying to find a way on these fund balances that we can get him into the communities where they can do the most work because if we're paying the taxes we need to be used on for what they were designed for so I appreciate it. Representable you're recognized. Thank you Mr chairman of I will follow up on them Page two eighty a. Of your show three under construction in the your expenditures you showed three million actual last year but in the next Twenty four it looks like you're gonna you're gonna spend thirty two million on construction. What what what are you what do those will what will it be spent I'll. So there's sort of a natural cycle that takes place with the planning development section on an annual basis that you go through the design process and then you prepare for construction and so on any given year we kind of see this ad in flow that happens verses design versus construction so depending on the carryover balance somewhat large projects are taking place leads to a balance that affects the amount of projects that you can find the next year and so this year that we're currently in it have expended is one of those years where it's been less that has been expended than in years past and so of the projects going forward that are going to impact or by just greatly we're currently constructing I have a nine million dollar visitor center at an amount visits at pinnacle mountain state park and then the projects that are going forward with delta heritage trail state park of large projects that are going to impact as we have appropriation for it separate but this is going to some of that funds that have been committed. Prior to this will allow us to do other projects okay follow up with the money of. The more I look at the fund balances and not only this one you have twenty nine or thirty million dollars because you're going to use some of that my concern is we're we're in any of the budgets the one I pointed out while ago do you have interest income. We're we're is this money and this may be a DFA question hello hello we know that this money is being invested you you representative Cavenaugh pointed out the use of three million but you got nine million dollar balance where is that money invested and how much interest you earn I don't see that in any of the budget The. These guys are investors funding source season these files are invested by the by the treasury we don't invest these particular files we only we only invest those funds that are given to us as trust funds all the rest of our funds are in the treasury and they are invested that the treasury process and we are interest based on how those are invested. So so would you use you get the income noted we do get that we do get the interest income okay we'll I have the FAA you do these reports I come will show up here where they get six hundred thousand dollars in interest is income where is that money going how's it being spent. Robert record Budget Office the representative I'll just have to look into that is so I'm I'm not exactly sure how the interest in me. We have thirty million dollars. And you can tell me where the interest is coming from or going to or how it's being spent the interest is going to parks for their for their account set up I would have to check and see how come we don't show what you do you use the job to the former I can you know shall isn't income. I mean that's a pretty good amount of money on just press one and they've got several million dollars. Yeah I apologize or percent I'll just have to look into that and see what I'd like to have a of a of the thank you for a minute it was German I request that you give us a report showing the amounts of funds total amount of fund balances number one second thing is is all that money invested how much of that money is invested in third how much is that money earning for the The bill line item in each of these fund balance accounts No. I read in the paper where the treasurer says you know he's but actual amount of money we're we're we're we're was that money invested after that is the question representative William thank you. If you're will representive if you're wanting to hold number five until this afternoon to get a report on interest earnings and where that money goes we we can allow the agency indefinite to get that back in the afternoon session and then we can take a vote on this budget as that satisfies your request of a fine Mister chairman but I believe that queer point is overhaul not just this budget correct yes thank you yes thank you are fine for staff. With that I'll go to US senator Hammer question. Thank you Mr couple questions one do y'all have any of the rest stops along the interstate under your umbrella. Senator Hammer we have welcome centers but not restaurants so the welcome centers are for example on I. forty as you're leaving method of West Memphis right there there's a new welcome center there that structures are built by the highway department and then they are operated by Arkansas tourism they're also rest centers and those are not part of our agency okay yours are the ones that have the facilities and are yours all open I'm trying to I'm trying to members seems like y'all got some and maybe our doctor got some I can't remember is that correct what hours are all open yes Sir okay the one Senator closer under our dot is that correct or do you know. I'm I'm not aware Sir I'm sorry okay all right and then the second one in the parks are you all still using host and maybe this isn't on your road but are you still using host at the campgrounds or were they replace during or after covid yes we are continuing the Campos program we have green met with good sams club at I believe three locations bull shoals Petty gene like washed on and lake Katherine a may be mill would as well but we we and we have just read started an entire new volunteer camp posed a program for our state park system okay and then a question on page two ninety two. And maybe you gave explanations while ago but let me ask you on your professional fees your budgeted to take a pretty significant jump. From twenty twenty one to twenty twenty three is it that's under your umbrella is that correct. Yes Sir that's that two percent tourism tax and per far professional Services professional fees were looking to we have to replace our full for a fulfillment Bender far the tourism guide that we produce annually we have a lot of demand for that sank flame we need in a new vendor for that were also doing some additional research and looking for ways that we can better partner with regional associations across the state. Okay and who's the new vendor going to be if you if you're about to the selection process on that. Yes Sir we have but we don't recall the name and we can get that to you okay if you don't mind and that's it thanks. Representative Holcomb you're recognized yes Sir Mr thank you my question is just about the budgeting process does the Parchin terrorism have any input in the budgeting process or they do see it when it comes out how to I was at work. Yes Sir they do they do have extensive input into their the individual agency budgets heritage does parks tourism K. A. B. capital signing even they also work with Cynthia and her team to I'm Tom by the commission all the commission I'm date. No Sir they we keep them aware but they are not involved in the creation of the budget. So the seat when it comes out. They don't. No Sir day I'm we have conversations with them about when we have surpluses we do an overall orientation where we talk about the budget Cynthia has done extensive work with the S. P. RTC to educate them on shared services so we have a monthly financial report that they see of expenditures within parks and tourism so they are very well informed throughout the year on our revenue and our expenses. Okay so they really don't have much depth into the. yes Sir that they have real authority that is provided in the law okay thank you man thank you Mr. I remember seeing no further questions this budget is being held to this afternoon for that additional information so we'll move on to the capital zoning commission of Billy you are recognized. Thank you Mr chair on Capitol zoning commission this is towards the being the manual page two sixteens or going back to page two hundred sixteen. The commission regulate zoning development and design within the capital zoning district pursuant to a master plan formulated in maintained by the commission Page two sixteen shows state contracts awarded to minority owned businesses employment summary and publications. On page two seventeen is there Department perforation summary did the the division has to appropriation requests everyone has a change level the total authorized budget in twenty three is two hundred fifty six thousand it's been in thirty. The Commission Kwesi one percent change level for personal services matching in the second year the biennium the second recommendation provides for that request the commission is funded from generating new in cash funds in the form of civil fines. Page two eighteen is our operations preparation and it provides for the administration of the Commission supported by generating fund. On page two nineteen answer summary to fifty four thousand was authorized there is no change in twenty four but twenty five is that one percent bump for a person services matching and that's just to carry forward the adjustments made in the current biennium the funding sources table shows the commission collected a hundred forty five thousand from general revenue. And the next pages page two twenty this is the zoning district cash fund and this allows the commission to spend from the assessment of civil fines supported by cash fund account on page two twenty one is there appropriation summary in there is no change level two thousand was authorized in twenty three and that is requested for the biennium and the executive provides for this request sure that is the capitals on the commission. Seeing no questions do I have a motion. A motion from representative gene and a second by representative Fortner. All those in favor say aye. All opposed ayes have it. So with that of committee we are done to after lunch thank you guys.