ALC-JBC Budget Hearings

Members we'll get started Legislative Council joint budget the committee budget hearing. First up we have a report from special language and the representative Cavenaugh believe you're going to give that report you're recognized we just meant the screens not on here. This is. Representative Cavenaugh if you hit your button one more to. You're recognized give the. Thank you Mr chairperson like to report thank you Mr chair the special language subcommittee met on Tuesday October the eleventh at one thirty PM and reports the following actions one the subcommittee adopted the executive recommendations for the agency language listed in the report to the next bachelor language meeting will take place Wednesday October the nineteenth at one thirty PM in the imac building eight I mean baby and I'm over adoption of the report. We have a question of the representative Milligan you got a question on report. The representative Milligan you have a question on report. Okay your own screen okay I have a second to adopt the report. Thank you all in favor aye. Post special language subcommittee report is adopted. We are now going. Two department of labor and licensing if the. Secretary will come on up whoever you want to be here and we'll have miss Katie Waldron's going give the report. Sir if you punch the button and recognized so. Who you are who you with Fischli. Good morning Mr chairman Darrell asset secretary of the department of labor and licensing thank you bring him in Mr Bassett and Katie you're ready to go you're recognized. Thank you Mr chairman good morning members Katie walled in bureau of legislative research fiscal division this morning I'm going to be going over the department of labor appropriation with you as well as the boards or commissions that you requested come back in Tuesday's JBC meeting so the first one we're going to look at is the department of labor administration appropriation it begins on page one seventy six of your manual. This is the administration and shared services section for the department of labor and licensing on page one seventy six you'll see the minority contracts report the employee summary and the publications. The Department appropriation summaries on page one seventy seven. And as you can see this section is funded with existing fund balances and shared services transfers from the boards and commissions that they serve and as well as other divisions in the agency and special revenues. They have the two appropriations one of which you already reviewed and on Tuesday it is the H. back board it was part of the spreadsheet that you are reviewed and voted on earlier in the week the second appropriation that I'll be going over with you is the shared services request. It is on page one eighty one. Of the manual. As you know this appropriation is comprised of transfers from the various divisions of the department of labor and it provides one central shared staff an appropriation for shared costs including finance legal staff human resources and IT for the whole agency they request a total of almost three point five million dollars for each year the biennium. This includes the transfer in of two positions one from the accounting board and another from the athletic commission. Additionally they request an increase in seventy of seventy four thousand in FY twenty four in eighty one thousand FY twenty five and operating costs and this is simply to provide for greater operational costs to the agency including increases in mileage reimbursement rising rent and the cost of supplies executive recommendation provides for the agency request. And this is the administration insured services appropriation Mr. Thank you Mr secretary you have any comments. This is the question to Member to have any questions. The representative Wardlaw you're recognized. Thank you Mr. Secretary of. We knew of it was just a short period of time ago you were down here and we were having a lot of shortfalls and. Different parts of labor license and we've been able to share some of that up and most of that was due to the shared services that were coming out so what is it looking like going forward. thank you. Wardlaw we have been able to sure those up we've been able to do a number of workarounds and working with D. F. A. and and some members of the of this body we've been able to share those up and we're in good shape right now so there is no fee increases to do that you were able to do it without going to the hard working people absolutely Sir thank you increases. Thank you senator Hammer you're recognized thank you Mr chairman here to the right good morning a couple questions and looking over the other day in here we were looking so the boards commissions they had some large balances in questions rash we're kind of looking at you know if they were to carry a three year average and then be able to return the amount that's above that three year average maybe by suspending the fees that they're collecting and you know return that back to the you know to the individual groups regards whatever they are home inspectors architectural Board whatever so my question would be are are there any plans to address the reserve fund regarding the board's where there are large amounts or water the discussions around that. Yes senator and to the body we we recognize that a number of our divisions are carrying someone large fund balances and we are in the process of working with those boards in order to to reduce those we're open to a number of different job prospects in that regard some in some cases we can actually reduce of filing fees but then moreover what will probably which probably going to be most effective is looking at suspending licensing fees for a period of time and we're certainly open to working with this body to that extent working toward a three year operating balance I think is something that is conducive to what we are planning our overall a mission and I think it would be being keeping with efficiency that kind of efficiency that we're trying to create so yes Sir absolutely we're we're looking at at those those plans all right would like to work with you on that and may have followed Mr. The the large funds that have been accumulated do you think they'll be resistance on the part of the boards that have those large funds to do something like what we just talked about what would be the rationale against doing something like we just talked about as opposed to just letting those research build build up maybe some of them might have justification for those large reserves to be there some might not Angela how would you separate your can you talk about that yes Sir I can there were there were some of the boards when we inherited some of the boards directory trans transformation some of the boards were actually accumulating large fund balances because they were trying to some of them we had and it dissipated actually building building and other facilities and so those balances naturally escalated because they were they were stockpiling these funds as now we we're in a different we're different construct senator their house now within one building and so there is no longer the need to accumulate those kinds of funds and so I would not anticipate any a blowback from the boards I would think that they would want to be collaborative that they would look at utilizing those funds since they're no longer needed for construction they would look at those funds in a way that we could start returning some of those to the taxpayers of the state of Arkansas the people that had paid those fees and and and and had enabled us to a master's of fund balances and so you know as we go into this initially I would not anticipate there being any recalcitrance. Final thought and I'd like you to. Survey your boards and ask for justifications for why they feel that they would need to carry balances beyond a three year running average to operate their agency and if you would put that out to your boards and ask him to submit why they feel that they would be justified in keeping anything beyond a three year let's see what they say and if you get that to us please we'll do that today Senator thank you thank you Mr. Mr secretary would we be able to have that button next Friday in council would. You you'll have a blast close of business tomorrow senator Graham main character would be the center in a yes Sir will have thank you. Of going to representative with you're recognized. Thank you Mr chairman Mr secretary looking over your personnel area and you have sixty roughly sixty vacant positions of that thirty four of over two years old do you know the age of the three years have they been vacant three years and have been vacant two five six how many years have they been vacant. Representative would not at I'm not prepared to answer that question we we've gone over that but I didn't bring that spreadsheet with me today but I can say Sir that we are looking at those positions that are age and whether or not we actually need them I think when you look at the totality of our budget you will understand that we are operating very lean lake and we really look at any additional hiring of very circumspect plea and so but I don't have it straight she didn't bring it today. Me can you supply that to the absolutely Sir okay. But also on the HVAC licensing board a city were they they have actual of eight positions they were authorized eleven but in the new budget you're asking for an additional employee but are you given up to because it says nine it goes from of authorized of the eleven down to nine but not the nine is one more than you have. So are you given up those two yes we are you know we expect has been one of those areas excuse me one of those areas where we've really struggled we we need to people there to answer the phones we're trying to operate lately we've got the nine but we think we need to do it at least an additional person there and so that's why we're that's why that's in our budget. The on page one eighty one in the department of labor licensing you're you're increasing twenty four you have you your actual is twenty four year authorizes twenty four within the new budget you're asking for two additional positions can we're we're of those coming from where they're going to be new positions are there within the. Structure they're within the structure not new transferring you say so you're using physicians and other groups bring it in to that absolutely absolutely we're we're utilizing we're just moving people around where we have authorized positions we need to sure up our financial staff because we were kind of you know little caught off guard as we inherited these twenty plus an entity's and we realized that we needed additional finance staff and so we looked around and and saw what we're do we have positions that maybe we could we could move around in here and that's what we're doing we're not asking for new we're utilizing the positions that we already have and we're trying to hold on to some of the ones that are that are vacant just in case we may need to move them into maybe legal or or or finance but legal and finance other tier two areas that I'm really trying to shore up okay if you could agent those two year positions that are over two years for us to how many what how old are those positions I can do the average and then the individual I thank you Mr chairman thank you Mr secretary thank you Sir thank you senator just feel you're recognized. I will executive Rick. Hold it just one minute me someone else needs to ask please come back to me. Representative mo you're recognized. Thank you Mr I was looking on page one eighty him right here. Page one eighty. And the second dot says the transfer one position from the Arkansas athletic commission. So two quick questions. On our Arkansas Arkansas athletic commission who. Who are they. And what do they do. I heard. Who who what is the athletic commission do yeah who are they and and what do they do yes. Well We we have a athletic commission athletic commission actually regulates of MMA by the the. At one point they used to regulate wrestling as well. what we we have currently one employee there actually we have to we're loaning one to from another department and so what we're doing is actually moving one position up to director to the to a director position of athletics and so that the I don't I don't know exactly from answering your questions but they monitor all of the fights that go on in the state the MMA fights that go on in this state. Okay thank you okay. I hope I answered that question. We have different visions this is item one I have a motion for executive record second. Second on favor I. Opposed thank you for that and Mr secretary will lead this wall and go into item to labor lashing division of labor. Thank you Mr chairman. The division of labor request begins on page two thirty nine of the manual. You'll see on that first page there's the minority contracts report the employment summary and the list of publications. The total division appropriation summary is on page two forty. And as you can see this division is funded with general revenues federal revenue special revenue from licensing fees and cash funds the agency has six total appropriations. And their quest totals five point seven million dollars for each year the biennium. They also have sixty nine positions authorized. The first appropriation begins on page two forty two it's detail there this is their operations appropriation it is funded with general revenue as well as special revenue fees collected by the elevator inspection program. The agency requested total appropriation of two point four million dollars for each year this is a continuation. Of previous levels. And the only increases our salary in matching increases and rate adjustments that occurred in the previous biennium and executive recommendation provides for the agency request. The next appropriations boiler inspection it's on page two forty four. This is funded with special revenues collected by the department of labor for permits and inspection of boilers and boiler manufacturers in the state. The agency requested is for around eight hundred and sixty thousand dollars for each year the biennium. And there's no change level request for this it's simply the salaries and matching adjustments that I mentioned in the previous appropriation and executive recommendation provides for the agency request. The federal programs appropriation is on page two forty six. Misappropriation is one hundred percent federally funded and includes grant funding from OSHA. As well as mine safety and health consultation and training. The agency request a total of one point four million dollars for each year the biennium this request includes salary in matching adjustments that occurred in the previous biennium but no other changes over requests or associated and executive recommendation provides for the agency request. The fourth appropriation is the board of electrical examiners it's on page two forty eight. This appropriation provides for the licensure and certification of electrical apprentices as well as elektrische ins in this state funding comes from examination and license fees. The agency requests over six hundred ninety thousand dollars for each year the biennium you'll notice a reduction of twenty thousand dollars each year in operating costs. And they stated this is to better align with their anticipated expenditures. The executive recommendation provides for this request. On page two fifty you'll see wage and hour cash appropriation. This cash appropriation is a pass through that the agency utilizes to disburse cash funds collected from employers when it is determined that an employer owes compensation to an employee resulting from a waging our investigation the agency request to continue this appropriation at two hundred thousand dollars per year in the executive recommendation provides for the request. The final appropriation is on page two fifty two it is the seminar and conference expenses appropriation it provides for the high cost of hosting conferences and seminars for industry participants in the state it's funded with cash fees collected from conference participants and they request to continue the existing appropriation of forty eight thousand dollars annually and executive recommendation provides for the request thank you Mr chairman. Thank you and the we're ready for questions. A representative Dotson you're recognized. Thank you Mr chair on page two forty four back to your right this is an the boiler inspector. regular salaries and operating line operating expenses line items. Both of those were you're you're asking for a lot of the appropriation above what the actual expenses were last year Is there a reason why those are somewhat are you anticipating an increase in headcount or. No you're asking for one additional position their influence will truly we've had we've had tremendous increases in that area and and Sir we think we need that in order to keep up with the with the inflow we're we're operating very willingly in that area and we we just thought that that was a modded modest increase but we we absolutely absolutely need that representative dot. Okay and then on page two forty eight. Same same same two line items But it looks like your preparation requests for. Almost three times. What. What's your expenses were and your work salaries are more than double what your expenses were. in the previous year adding just two out of going from seven to nine head count in the law school is is in the area as refactor just talk with the US I'm sorry I just talk with I'm sorry. His extension I just saw was Senator this morning with regard to an issue with our electrical examiners prior to transformation these we had fifteen positions in here before we recall we inherited them and they were taken down significantly we're trying to bill electrical examiners that section back up and we're not trying to do it necessarily by exponentially increasing the the number of employees we do need more people there I constantly get a representative Dotson questions from the public well we'll call you we can get answers we would no one's answering phones S. because we only have one person there okay and if they take a coffee break or they go away then we have We have those lapses we've got to sure up electrical examiners that is a vital part of what we do in it is this the the area of the category that does the inspections like. It seller inspections and yes Sir connective and all that yes Sir the final that's growing in yes Sir. Do you are you sure you just need to additional not well we thought we could get away with two we we we we that is not all that bad reward that the thank you with the leased to thank you Mr. Representative back you're recognized. Thank you Mr chair of my question it is actually the same category one two forty eight. The concern is that the I understand that the two new positions but the salary increase is not reflective of the increase in the number of positions it's much higher so. The question would then be is I'll I'll yeah. I'm not one question you might be that you're having trouble recruiting people and records out I don't know why but but it's a much larger increase in the percentage in terms of salary that is in the percentage in terms of positions so. Hello that's my question and also the operating expenses meanwhile A representative Dotson brought this up let me now we were tough okay they're gonna decrease. Over the biennium they're decreasing twenty thousand dollars in operating expenses while yeah but you more than quadrupled almost. We request so it I don't quite understand as provided that you're gonna get I have a question representative back let me tell you why we doing that we work what we're doing is we're trying to save money operationally so we're actually reducing our cost operationally but we're we're having a Dickens of a time recruiting people at this caliber to actually come in and do these inspections we're competing against the private sector and what we've done what we've discovered as we try to put these positions out an interview we we just can't get people I mean we get qualified candidates and whether fact we we had a good candidate come in and we thought that we had on on Friday and then I came in on Monday and find found out that the of taking another position and so that's where we're we're we're just in a competition out here and so that's why the increase in the salary we're trying to attract some good people and we're really pulling people from business and industry those of the people that we need to actually come in and be able to hit the ground running without any training but it's it's it's it's a date we're having a Dickens of a time getting people and qualified people in at the salaries that we've been offering so we're trying to offer a little bit more and in order to track us so that's that's where that is a good question but that's what we're facing. But that I just want to go back to twelve the the the increase if I am sergeant Mr that. The operating expenses is is is thirty four your actual is thirty four to you're asking for a hundred and twelve DO sal. And then you're you're cutting arts give a hundred thirty one or thirty two if you rounded up two thousand budget it but then you're saying okay I'm cutting it down over the twenty three twenty four so why would you ask for that twenty thousand that you and that makes a big Corning this budget taking back at. I am I reading it wrong I mean it looks like you're increasing this much okay but we're gonna give you back this much but it's all I would say why would you just increase it to that amount and not give it back to valid point that that's that separation consideration. Thank you. Representative Cavenaugh you're recognized the county thank you Mr chair my question is going to be on page two forty four on the boiler inspection and I'm over here to your right I see represented Cozart blocking the sauce good order. So you can see my faith my question is on the fund balance. If you look at it just keeps increasing it doesn't decrease at all because you're collecting more and special revenues than what your actual expenses are. So in my understanding is you had said that this was area where you're seeing a big increase. But in your projections you're not showing any increase in your special revenue so as that continues to go on if it's a big increase should that not be. Increased for what you're expecting to be getting in. Because in reality what's happening is that include that excess funding this just keeps growing. Yes ma'am yes ma'am it will continue to grow the excess funding will continue to grow and I think that's kind of a can do what I was speaking to senator Hammer about how do we deal with the increases because there in this particular case with boiler as you know they came over from the health department this date that that number's going to continue to grow question is what do you want us to do with that access because you can see what our our annual expenditures are if you are if you're if you're of a mind that that number is growing beyond where it needs to grow what I said earlier is still stands in and my answer to this question we're certainly open to any suggestions that would mitigate that number but that number's gonna continue to grow here especially in the border section. Well the the reason I ask is because when you look at what your agency requested executive recommendation is yeah I don't seem to project that the increase in revenue so we don't get a real true picture of what you're projecting your funding debate your excess funding it shows it's going down in a reality it's going up was going to go up because I mean obviously you know it's very difficult to it's very difficult to project of where those fund balances are going to go because we never know how many licenses are going to come in how many are going to come in so we're very conservative and that reproach but what it what I said was in it still stands true that number is going to go up that fund balance is going to continue to increase as it has over the last two and a half years the question is what we do with it how do we I mean if we do we do we mitigated by giving it back to the licensee's yeah I just want I just want to have. You're missing what I'm I'm trying to point out is if someone's looking at a budget and a projection and we're looking at a fund balance. Your project in your fund balance is going to continue to go down. If you look at what the agency request and executive recommendation is it shows your funding balance to continue to draw down. But in reality it's going up because you're not using true figures on your revenue and from someone who's trying to budget what I'm asking is why don't we use truer figures on what we think are real budgets going to be so we can can as we move forward figure out how to get these funds back to the people that paid it so we know how much you really need. Okay that that's what I'm asking is can we not use true or figures one we're looking at these numbers so we know what that fund balance is going to be you and I both agree is going to go up you and I both agree it needs to go back to the people paid it but your report shows is going down. Okay if you could I mean that from someone is trying to budget we have to have the real numbers is all I'm saying if if there's a way that we can give those numbers to us it makes it a lot easier okay I'll commit to doing okay thank you. Senator Hammer you're recognized. Thank you Mr go back to the discussion about the board of electric electrical examiners what it what is the average salary for who you're trying to hire for that that makes it difficult to retain them. You know right off the top it no Sir and I'm not going to insult you by trying to say that I do all right let me then let me ask you this as it would apply to all the other areas is that the same scenario in all the other areas as well or is it you need to just the board of electrical examiners you know it's the same across the spectrum of and not just with of the department of labor of the are state employee salaries are just lower than lower than the the market rates and so we always have to deal with how do we get qualified people and now we have some options we can do some ten percent so we can do so at some secretary discretion but we're always in that competition with the outside sector especially in our area because we have twenty two four different divisions and all of them or professional areas and so we're always competing with the private sector for employees. And what is the reaction you would get from all the individuals associated with the different boards as far as the. industries that they serve that if we were to offer more competitive salaries in order to keep the staff reduce the turnover what would be the reaction from the industry's that you serve if that was to happen. Well I would hope they would be cooperative but when you're dealing with twenty four different entities in twenty four different boards twenty four different chairman of. I would hope that they would be corporate but I can't say that I would have one hundred percent agreement in that area thank you they make sure. Last four currently have on the board representative will you're recognized. Thank you Mr chairman of Mr secretary I will as you some questions about some trends that I see in your total budgets when I start looking at them in this this this just use of the ball inspectors on page two forty four your your average salaries this actual is forty thousand. Your your new one with that in a position you're asking for a hundred thousand dollars and more money and the average comes out to be forty six thousand so or you given a six thousand dollar you're raised to the other employees let me call my CFO will. I mean this is the same trend I see here I've seen and several others and and well he's coming up what is the president. Of the pay roll. Matching. What what are they using. Because it it jumps from one hundred and twenty gems fifty thousand dollars. So what what is. Are you using if I'm looking at it correctly your news that I don't we use is generally twenty eight percent is the managing. And these lookalikes thirty five to thirty and then it jumps from thirty five percent person of personnel personal services matching it jumps from thirty five to thirty nine percent in the new budget. Serve user identify yourself for the record. Tyler Cain CFO. Department of labor licensing. Representative will not the percentage that we use around thirty seven percent like you say thirty seven yes okay that's just an estimate. Okay we'll what what about the hundred thousand dollar increase in salaries you're you're or you. If if if I'm looking at that correctly yes that means that all your other employees going to hire a new one probably a bit of the average is going to be forty six thousand and the average in the current twenty one twenty two year was three hundred sixty which is Forty thousand. So. When we were we're or and I see this throughout all of most of your budgets so. What what what are we doing well. Yes Sir a representative will be trying to do is establish a a good pattern in hiring process in terms of how we try to get good candidates that would apply for these positions against secretaries already stated earlier about wages and we're trying our best to hire staff that. We can get in that we can talk we'll have to do a whole lot of training that perhaps we can get good applicants that will come forward and be part of our agency and these increases that you see represent the cost of because of that so cost of living we're trying to ecstatic should good pattern that we can go forward with and some of the numbers might be as you say maybe a little bit more than anticipated what we don't know what the economy's going to be like what the we get another governor's coal you know these things are happening around us and so we're trying out best without numbers to get a good number a good dollar amount for a while. Well I understand the market situation and end up going but also look into a city that a hundred thousand do their job and I'm not more. Yes. I want everybody to make a good wage but in the end that will point this out because this is an example of what you get into when you don't have a place to start with is like running a new creature only in church and the all one made thirty five forty thousand and the new one comes anyone fifty five year memberships as well he just came for the money but it's the same kind of deal yes so we we need to keep pace but on your operating expenses okay and this is the same person yes. Shows forty six thousand on the baller biker of the inspectors so forty six thousand you budgeted two hundred and one and then you go on back with two hundred one thousand again. When. Use only use forty six thousand running expenses and I see this throughout the budget yes Sir and and that's primarily because we're doing the COVID and. Time our costs would lore because hi specters in enforcers cannot go out travel Malinche announcmenet went for forty two cents to fifty two we had all the cost of that so you know the gasoline prices have skyrocketed we start by right now we talk about buying vehicles is to in place of of reimburse employees for using held vehicles we have of the operating costs are with his went up a dollar a square foot these costs that are happening cross to read across the board on all operating for Stradey office supplies all these costs a good soldier hitting us doing call with eight of these agencies did not have these anticipated costs now they're they're in reality is that we don't know what the next two years going to bring right now gasoline prices fluctuate in again inflation is happening all around us we talked about salaries the salaries that we passed employees I'm trying to get we're trying to get good applicants it's a secretary stated to come forward to be part of the agency and recruiting the nose representative will it's hard to get these good applicants come before we got competing other agencies giving ten fifteen percent discretionary pay I've just had situation earlier I had to do some things with the staff that I want to keep IT compete with another state agency so these things are current Sir Kallsen I'm going down here. On this week's. Thank you Mr chairman thank you Mr thank you the question represent will thank you senator Chesterville recognized you. I have a motion for executive director I have a second. All in favor I. Vote thank you gentlemen for your testimony. Thank you Mr chairman members of the committee thank you and our next up is labor lasting workers compensation commission and. They were going to have director. Wearing mom coming up. Miss Walden you're recognized personally thank you Mr chairman the next appropriation will review today is the workers compensation commission appropriation it begins on page two seventy four of your manual. The first page includes the minority contractor report to the employment summary and the publications. The Department appropriation summaries on page two seventy five. The workers compensation commission administers and enforces the Arkansas workers compensation law. They have a total of five appropriations they are funded by a three percent premium tax on workers compensation insurance premiums. As well as cash funds from seminar receipts and investment accruals. The total appropriation for the commission is thirty three point six around thirty three point six million dollars for each year the biennium. They have a hundred and five authorized positions into extra help positions. The first appropriation is detailed on page two seventy seven of the manual this is the refunds and claims this appropriation is funded with the death and permanent total disability program. The appropriation requested to continue this appropriation at twenty one point five million dollars for each year the biennium and the executive recommendation provides for the agency request. The next appropriation and the only one to change levels is on page two seventy eight. This is the administration appropriation. This is funded with the three percent tax levied on insurance premiums and interest earnings and it provides for all the operating expenses salaries and capital funding for the commissions to state offices. They request a look around eleven point four million dollars for each year the biennium and increase provides for the discontinuation of two positions that were vacant. As well as salary matching rate adjustments that occurred in the previous biennium the executive recommendation provides for the agency request. On page two eighty one you'll see the second injury claims appropriation. Also funded with print premium tax revenues and interest earnings. the agency requests for the appropriation to continue at five hundred thousand dollars annually and executive recommendation provides for the agency request. Page two eighty three is there seminar cash and treasury appropriation. Funding for this appropriation comes from annual conference fees that the commission hosts for interested companies attorneys and individuals the agency requesting continue this appropriation at one hundred forty thousand dollars annually in the executive recommendation provides for this request. The final appropriation for the workers compensation commission is that building repair appropriation this is funded using those insurance revenues and it provides for the maintenance renovation equipping and construction. Of their two offices. One in Little Rock and one in Fort Smith the agency request to continue the appropriation of one hundred fifty thousand dollars and executive recommendation provides for the agency request thank you Mr chairman. Thank you have a request from representative Cavenaugh you're recognized thank you Mr chairman. This is just a question well I'm just gonna ask it so we're going to deal with page number two seventy six and two seventy seven which is going to be the refunds and claims. in the explanation for as it brings out that and the third extraordinary session two thousand sixteen ACT five was enacted by the Arkansas legislature which provides that no claim shall be paid to the death and permanent disability trust fund after June the thirtieth two thousand nineteen. then the current premium tax rate of three percent we will be reduced to one Five percent upon the final payment of the liabilities in the trust fund so. There were we have in excess of eighty four million dollar R. eighty four million in this fund is what it looks like and. We're not adding any more money to that trust fund is one of my understanding is that correct. That's correct a representative Cavenaugh the but that to a different permanent disability fund has and Unfunded to liability so we're still collecting the the three percent which is one and a half percent going to the. Deffenbaugh permanent total disability trust fund and one half percent to operations and but there are. Well over a thousand claims in in that trust fund until all of those are paid we have to continue to collect that money and put the put it into the fund the fund that unfunded liability okay and do we know actual warily have we looked at how long we think we're going to have a tail out there on these claims. We know that we're we're we still I think that the figures show that we have about a. Ninety million dollar unfunded liability that that's been reduced by some fifteen million and the last six years so ninety you're saying we have ninety right now or we have ninety minus the fifteen. We have not ninety million currently okay and so. Okay so we've got we're going to use this money in this trust fund to pay those claims down. And then when all those claims are paid out this trust fund goes away that's correct and if there's any excess funds in that where will it go. Well we don't anticipate they'll be any excess funds but the if there were any excess funds again that they would reduce the premium tax dollars which are currently three percent and and the cost of doing business is perhaps the lowest in the nation with regard to the cost of doing business for the employers But I'm and we have we do have the excess in I'm not sure what questions you're asking but I'm just saying if by chance there happened to be after all claims are paid out. An excess in this trust fund do we have a mechanism that it should go somewhere else no ma'am okay thank you. And and I did miss speak with regard to I'm looking at my numbers they had an unfunded liability in the death and permanent total disability trust fund of one hundred and thirty one million in twenty fifteen and that's been reduced to a hundred and six million at the end of twenty twenty one. Thank you saying no more questions than I have a motion for executive director. I have a motion the second Lebanon favor I. Those convicted for a I assist members on the the next of five those are ones that we requested Tuesday and I think this wall is going to cover all of the you're recognized. Thank you Mr chairman the first. Board the requested to come back as the appraiser licensing and certification board their appropriations on page one eighty eight. They maintain a system for licensing and regulating state registered licensed and certified appraisers in this state they have for positions. Operations are funded with cash revenues. As well as a federal grants. The Department appropriation summary is on page one ninety of the manual. as I mention before you can see the federal revenue cash funds and they also have some fund balances. The total request for each year the biennium is around six hundred and forty five thousand dollars. The first appropriation for your review is on page one ninety two. This is the appraisal grant appropriation. During the last biennium the appraising the appraisal board received a federal grants. For three years and this is to expand their services is to convert all of their paper documents into digital format it's to provide greater education and so the agency requested the items that you see on page one ninety two eighty thousand and operating expenses twenty one thousand and conference and travel. Fourteen thousand five hundred and professional fees all for the implementation of this grant program and executive recommendation provides for the agency request. The next appropriation for your review is on page one ninety four this is their cash operations appropriation. And it provides for the licensing and regulating of real estate appraisals in the state. The total appropriation each year is for about five hundred twenty eight thousand dollars. And this total these totals include salary and matching rate adjustments that occurred in the previous biennium and there are no other change of a requests in the executive recommendation provides for their request thank you Mr chairman. I've got a couple questions representative Springer you're recognized. Is it does it does the agency want to dress anything first. No will will wait for you Mr chairman representative Springer you're recognized. Good morning thank you Mr chair on page one ninety four I noticed that there is an increased five one in one position from three to four could could you tell me what. Position that individual will hold and that's what salary and development of a yes ma'am my name is Diana Piasecki I am the director of the appraiser licensing and certification board really ma'am what that is is that we've always been appropriated for four positions but we were unable to fulfill our contract investigator position so is there's really not a change I just had three employees and then we before so that we would not lose that position you know we were able to fill it finally by making a change but so we went we've always had for we just for having three employees for about a year or so during the codependent so we're back now to being fully staffed at four positions so we really did not add a position it was just one that had been vacant follow up with the chair one of those put in those positions titles being hailed by those individuals of the position titles are that are investigator position that is notated in here was cross graded to a business operations manager of them we have our executive assistant to the director and I have an admin three position okay so what investigate we have one investigator now we change to and investigate a contract investigator model it's much more efficient for the board and its it's currently being funded by our grant monies so we are having an investigator that a contract investigator at no charge of our fund funding. All right thank you. It. Senator Hammer you're recognized. Thank you. I'm looking at page I'm also looking on page one ninety four. Your shared services transfer is taking a significant jump and then I get to look at some of the other ones and I notice that they're taking a jump to of some some of them will be it can you tell me why the jump in the shared services. If I read you have gone from sixteen thousand six eighty two. Okay four thousand that's I'm going to need to get my CFO but what that is that it reflects an increase in cost and I want to see a photo outlined exactly where that with those cost worry you're going to see that across the department and so we're going to. And answer those questions came. And. Yes. Sure. Good morning Tyler Kane see a full. In regards to the shared service costs. I T.. We had a one time shot. On IT costs that we had a initially started with it. it was it was free. Does it's going to each one of these budget is going to have to pay about additional twenty thousand dollars I'm sorry. There was an increase. And the IT costs. Each one of these budgets are gonna go up proportionally for the share services cost for those ID charges. What was the other band Mr. Thank you. I vaguely remember the contract coming through a couple years ago I think what was total cost of the contract. All. It is started off free but nothing strange or what you call us now. Yes it's it's it's significant I can't think on the top of my head right now the total cost was like four five hundred thousand dollars this is quite significant and that is across the board to all you agents shall leash eight yes Sir okay is that what allowed us to go from paper to electronic is that what that was cost was for yes that's correct okay shows all the increased in the shared service transfer related to that or there are other costs associated with that yesterday as I mentioned earlier the rent went up. Okay I'd like to ask the board folks a direct question if I could not try to get your name ma'am. A my name is Diana yes Sir your role with the board is what I am the director of the appraiser licensing boards are I know you got a lot of people stand around and sit beside right now but I'd like to know straight up your opinion about shared services as it's affected your particular entity has it produced benefits that you thought it would prior to it going in and where you are right now with that being in place. A yes Sir I'm happy to answer that question from my perspective as a director of the appraiser board shared services has definitely benefited us there are there's a lot of good things to be said about having someone that can answer questions or help you with something on site if I have a financial question I can go to the finance department if I have a legal concern about perhaps and if a lot of that I've received I can walk down to the legal department and get someone that can help me on the spot if not they know someone that can help me so from our perspective Sir it's not it's definitely worth the money that we have paid so far. So you'll feel it's put undue burden on your budget even though you're you've got a pretty hefty surplus bounced you know feel that has put a strain on your budget no Sir I do not okay all right thank you bye Mr. The representative Wooten and represented by regular you're recognized thank you Mr chairman on own when you talk about shared services the last time we went to this that was a central office experience is that what we're talking about okay let me ask you this this is directed to you how do you have that what you charge each agency is it based on workload that you have to perform for them do you do on a percentage basis or do you just say we've got twenty agencies that it costs a hundred million dollars so you divide that by twenty and you that's what they're going to in either you have at your at your cost for you central office the answer is is that includes an imminent is that includes the Secretary salary and and and all of your support staff to him is that the total central office expense that you're dividing among the agency yesterday split it's way too way Sir representative wouldn't first there's add me in chat services costs those costs over done to a approved federally a cost allocation plan what we use a percentage based on a percentage of the total salaries of that agency and multiplied times that percentages for the salaries infringes then we have what you call direct costs these are you direct overhead costs shared services what do you call because Cher services in terms of the rent the building that we share it's based on an allocation of square footage we charge about a square footage at that age she uses the other call straight actual costs of such as I say if they have a a bill that comes in will do will pay that bill and will split between is all the agency based on their percentage to share such as office. Supplies. It will allocate based on call center but all the cost that it comes at an agency has a basis of allocation as I stated ADD managed on the to an indirect cost allocation plan the direct cost of based upon square for like rent is based on square footage the supplies office supplies based on utilization how much you and Dennis calls back to the it's all. I see is all shared a quickly is all fair is all reasonable I try my best as CFO to make sure that every costs come across my desk has that equity and and that we all share it together. Could do so so it so former the basis based on percentage of workloads that your office as well I will relative to the formula that you just mentioned yes Sir the the admin side of the house where you were talking earlier about salaries infringes that's based on an indirect cost allocation plan a percentage we have to share with you and then the direct costs such as rent trading office supplies you're done on utilization and again ran its total square footage. One more question Mister chairman I should put it like that the man. Only a expenditures of these agencies they all come in to you and you look at all level yes your staff review all the expenses for all the agencies that you have yes Sir okay all right thank you Mr. Representative back you're recognized. Thank you Mr. And I apologize I will take this back to school because I. lost something so we were talking about the increase in the shared services thank you and when. And after to Senator hammers question we said that it was an I. T.. Thank you and that we were going paperless and that was kind of the cost of that. All right so I that I really have. Two questions the first question is is now serving ninety thing going paperless you would think okay there's now we got to pay a lot of money this year maybe next year and they were paperless and we're and there's a savings associated with on premise and maybe not maybe it's it's being able to speed up things better customer service that type thing maybe that's the answer that so that my first question was do we anticipate that going paperless will actually end up netting us Some savings in the future not and then the second question is this. If the twenty if the increase is is dissociated to the I. T. expensing going paperless why does it continue on all the way up and through twenty twenty five seven Acosta it's gonna take us that long to get there are some errors is just an ongoing cause it's always going to be there. Yes Sir. Yes Sir I T. is not gonna go away. Yes Sir but okay so this is I to. Just a quick follow up so this is cost of IT going paperless it's not a transition cost it's a constant because it's going to so then my first question was do we anticipate better service to anticipate lower costs other costs is an operating cost somewhere else it's going to go down what is about twenty seven thousand the Bill. I've absolutely absolutely Sir we that's the main emphasis for us trying to get paperless and to get out of notepads and trying to do things of paperless it's going to by paper it's not only going to create what we hope efficiencies within our office but it's going to mean a world of difference to our constituencies out there because they're going to be able to do that now overly go online and do that rather than traveling to our offices and waiting in line we we anticipate huge efficiencies here not just in office but for our for the citizens of Arkansas going to be able to streamlines the whole licensing process is it going to be paved road going getting there no we're gonna run over some gravel and in some and maybe some blacktop a little bit before we get there but yes Sir we we anticipate long term this is going to this is where we need to pay. Sal and add just to make sure I understand your answer is you're saying that the additional cost is gain deficiency not actual cost savings of going paperless in this case no okay no we we we're we're initially yes it's going to cost us warded to get there but in the long term we're going to have those efficiencies and it's going to more than justify the cost and it's it's taking for us to get there that's what I'm saying what thank you. Thanks just for your regular move executive right. I have a motion for executive director. I have a second. Favor I. Thank you. This wall any be presenting the action Coleman specter Division. There were these come up for that. The fifth seeded. This wall or C. thank you Mr chairman the home inspectors registration board request begins on page two thirty three of your manual the purpose of the home inspector board is to protect the public against home inspection fraud and a license qualified home inspectors across the state they also here and resolve disciplinary matters the board is composed of seven members appointed by the governor. The Department appropriation summary is found on page two thirty four of the manual you'll see they have to appropriations and funding is derived from special revenue fees that they collect from license fees and renewals as well as fund balances. You'll see that their total requests for the department is eighty six thousand dollars around each year of the biennium they have won authorized position. The first appropriation for your review as the operations appropriation is detailed on page two thirty six of the manual. A request about seventy seven thousand dollars for each year the biennium for this appropriation. And the increase is that you'll see are just continuing salary and matching adjustments that occurred in the previous biennium there are no other changes other requests executive recommendation provides for this request. The second appropriation is on page two thirty eight it is for a public awareness campaign. The agency request to continue this appropriation at ten thousand dollars annually in the executive recommendation provides for the agency request thank you Mr chairman. Thank you welcome if you to will identify yourself before we go to questions. This is pushing let go read that's when you're. You're ready tell I'm Charlotte London and I'm the administrator for the board. I'm Daniel Burkett on the chairman of the board welcome Senate representative Dotson you're recognized. Thank you Mr chair just looking at your mower your far right. Here. Just looking at your fund balances here Looks like you've got. Many many years worth of operating expenses and a fund balance Guess what your plan for that and that will it looks like they're anticipated to continue growing. Where where do you get your revenues from. The revenues come from license fees. And C. E. applications pre registration what training applications and. Also As far as well that's pretty much it as far as what the these come from but is mainly licensees and we do have other fees that involve like inactive status fees for home inspectors that want to put their lives on hold. So are you looking at. Reducing those fees or how to. What's your plan with that fund balance. Right now we're looking at we're trying to start an apprenticeship program. So that. Applicants can get more training and also not just. Book training but also on the job training. It in the apprenticeship to hopefully make them better home inspectors. And we're also doing research and development which we started that some time ago with we'll few years back with you A. L. R.. And they did it without charging us at that time but we're trying to do some research into this revolving door. As far as home inspectors that get licensed and for whatever reason they'll drop out before the year is out in. We don't know the reasons so you're not looking at reducing any of those fees. Well our fees are already pretty low as far as I know it's been the same amount if we've never had an increase in the fees and it's been the same amount very much since the board started. Representative I can answer that as the board we're not looking to reduce anything's honestly we we would like to increase fees because we can get higher better qualified inspectors and hopefully keep a man longer than just two three years is what happens when I look at increasing fees either but that's that's the option with like that as far as the fund balance we have a plan wherein works obviously the whole electronic licensing land that cost is ten thousand dollars a year and it's going to be on going from here on out and that's something we have we have to start getting into this year because we just started this we're we're looking at possibly Haskin other preparation for another. Employee that's in the works we're just seeing if we can support at the moment because the workload is such that we can what a lot of people don't understand is we do more than just deal with the licensee's the home actors we have a whole nother part which is the education side of where we review and all of the education forces to come through the sos hone of the workflow that isn't that isn't as publicly known I guess you can say So we're using that money to go towards that that stuff. Okay thank you. Representative Cavenaugh you're recognized. Thank you Mr chairman over here to have I just want to ask do you all have a backlog of applications for license. No we don't have a backlog of applications right now not for licensing okay what is your turn around for an application how quickly do you when you get it how quickly do you get it processed. Now in the past it's not only been a week to ten days before they get their license but it it's always after a board meeting when the board has reviewed does applications and voted on approving them or not so a week to ten days after that. Since we're on electronic licensing now we've only been on it a little over a month so. It's going to be a little bit quicker as far as right after a meeting they can print a certificate that their license. And they can start working but. As far as getting their wallet card of course that still might take a week to ten days. So on to make sure I understand they'll do an application and you'll process it The New presented to the board for the board to approve that's correct okay how often does the board may to approve those every month okay and you mentioned that your fate you thought was too low what is your free. It's two hundred fifty dollars. Okay thank you. Thank you Mr Following alone of on the on a cash fund balance I figure that this that's an eight year balance in your charging two hundred fifty dollars and you say this to. Too low. I'm not saying is low it just has never changed I mean I've been with the border almost seven years and it's been the same and it was that what what what what what what are they getting for the two hundred fifty dollars if you're if you're if you're the only employee. How many is on the board. It's six on the borders B. seven but we don't have a consumer advocate so it's just six well who looks who who looks by hand the applique F. okay shins as the if there sound financially or if they need who are the yeah I mean do you do you know who they are as co job they're going to do that if there was more in the home inspectors. As far as the home speakers as far as applicants yes there is an. The only thing that we see as a board we review the applicant is their application that they sending of includes background check includes a required eighty hours of. Approved course that we put out form as well and then passing a couple different exams the national exam and code of ethics exam who does your background to I do that you do the background the Arkansas if there from. Or at least if they lived in another state or if there from another state they do have to send in a background check from that state but I do the Arkansas background check. Thank you Mr chairman thank you. Are these questions for okay. Senator Hammer you're recognized. Thank you for your. You're asking for another employee could you tell us what you do with your time during the day now that would justify needing an additional employee please we're not to that point yet as far as asking for what we're we're tossing around that's it's something we're looking at yes of the reason is we fill the board feels are administrators overwork eight they have more of a load the whole ill people assess the whole transformation process actually has added more work to her but wasn't taking into account as I said a little bit ago was over education stuff that we do with educational institutes that put Arkansas put our classes at which review all that submit invoices and all this other stuff sign numbers make sure their current that's an ongoing thing as well so there's a lot of uh work load that has not eased up because of transformation and. My anticipation was with the electronic licensing program that would but after being under for a month and a half now I see it's not the law that goes back to how we collect funds as far as that goes credit cards for instance they can licensee can go and apply for the license pay for a credit card all this but then there's like two or three other steps that are administrator has to do now just to get those funds accounted for deposit. How many monthly applications to handle in the office on average we weren't doing anywhere from eleven to sometimes twenty. this last month we have five. So it it fluctuates but usually it's between eleven twenty this month last month I was there was a hello my I can't answer that why. director on issue question of the Charlotte no there are sorry sorry. You're the boards how many applications do they handle month. On averaging thirty five forty that's across the board all the other ones use. Okay all right thank you. Members I wanna remind you that we do have legislative audit starts exactly Committee eleven thirty so we do need to keep that in mind is removed for representative back you're recognized for a very quick question thank you Mr what percentage of applications do you deny. Very few of. I'd say maybe even one percent it probably once since I've been on the board since January of twenty twenty one I think we've denied about for since then. And we take in roughly hundred hundred twenty new applicants every year. Thank you. Senator Chesterfield move executive wreck that's proper motion of second. I have a second owners favor say aye aye ayes have it Executive wrecked on home inspectors will move on to the motor vehicle commission if we could go ahead and get those guys to the table to expedite named Katie you are recognized thank you Mr chairman Page two fifty nine in your manual begins the Arkansas motor vehicle commission. The objectives of this commission or to regulate and license new car manufacturers manufacturer representatives dealer sales personnel and motor vehicle lessors they have seven positions the Department appropriation summaries on page two sixty you'll see they have to appropriations they're funded with special revenues. Which is which are those licensing fees as well as a fine balance. The first appropriation is on detailed on page two sixty two this is their operations appropriation. Again funded with the special revenues they requested total appropriation of four hundred and fifty thousand dollars for each year of the biennium. And the request includes a discontinuation of one vacant position and a reduction of operating expenses each year of forty thousand dollars and this is to better align with actual expenditures the executive recommendation provides for the agency's request the second appropriation is the automotive technologist education grant appropriation this is detailed on page two sixty four. This appropriation provides grants should provide grants to local high schools and trade schools for the promotion of careers in the auto industry the agency request to continue the appropriation at two hundred fifty thousand and the executive recommendation provides for the agency request thank you Mr chairman. Thank you Kate do you have anything to say. Director before take questions. No Sir this any questions all right. In Cavanaugh you're recognized thank you Mr Clark here to Iraq thank you for coming my question is really gonna revolve around fund balance and also on the grant it showing that in twenty one twenty two you didn't give any grants out. Yes ma'am that's correct of what changed was unviable for where we set up a new fund balance for this program and we are in the process of contributing money to that. Fund right now that's being set up as we speak and then at that point there's a different group that will make the determinations as a. A five oh four ACT five oh four twenty twenty one and the group will then meet in the side where those funds will be allocated. Okay I guess I'm a little confused because we've got two point four million dollars in excess funding and you're saying that you can't use some of that excess funding to go ahead and fund that program. So that we can actually have the grants given out because as you know in this industry we are in desperate need of mechanics as fast as we can grow them out. And we've got a whole year and we haven't given any grants out to anybody to help with that work force problem. Okay all right we'll in the past the way this works representative Cavenaugh I'm sure you're aware we were set up through the motor vehicle commission to award grants to various schools around the state of Arkansas some of my secondary some of them were high school they're different programs and we would look at each one of them when they submitted an application for funding for the grant and then make a determination of which of those would be funded and in most cases we fund it pretty much everything that came in their water to the didn't fall within the parameters of of the rule. But it with five oh four that changed the way the this operates in it said the funds were to be put out of our income from licensees into a slew separate fund that would be then taking over would be the scene over by a different group not the motor vehicle commission anymore. And so that's what changed and now we're about to put that money into the program at that point. Then they will determine that group will determine where those funds will be spent we're live allocated. I understand that I guess where my confusion is coming from if I have some leeway Mr. The. Before you do that this one did you have something to add to that thank you Sir representative Cavenaugh I just wanted to add that ACT five oh four and as he stated it puts the funds in a new sub fund and then it also tasks the Office of skills development the Division of career education and the Division of higher education with now administering these grants so they're supposed to formulate an application process and then they certify who is eligible for the grants and send that back to motor vehicle commission and then the funds will flow I believe where they are in the process is they're still developing that application those three entities and so that's why no funding was given in the last fiscal year okay. I just want to with thank you Mr chair so with thank you Katie so with. But could we not have transferred to two hundred fifty thousand out of their fund balance that that money would already be there that's what I'm guess I'm as in this particular agency we have two point four million dollars worth of excess funding and that's several years worth of funding and if we've got a program that is desperately needed like this can we not take some of that excess funding and put that to that grant program so that we can it will be there and ready to go it that's what I'm asking it could represent Cavenaugh and perhaps it to it we perhaps we're interpreting the of the act it in incorrectly our understanding was that the entities who are ultimately going to be dispersing these funds it was their responsibility to get to us that information and then we would transfer the funds I I we we we we were thinking that that we're waiting on them to do that and then we would transfer the funds because they can't distribute the funds without those mechanisms in place anyway so even if we put the money over there without those requirements being met funds would go out anyway so we were basically waiting on them to do that now I think they're in the process of formulating those requirements and once that's done absolutely there's money there that we can easily transfer over so I think that was our interpretation of the statute and yeah the money's there okay and what are we gonna do with the fund balance. Well that's the question. Yes. Thank you for the question and and again as I alluded to earlier we're going to work with this body to try to determine you know just exactly how we go about doing that since the motor vehicle commission of course I can't speak to them and I'll need to discuss with them but I think they would be amenable to us establishing other scholarship programs with with some of that money since this program has essentially been moved out to other agencies I think we have the where with all in the fund balance to actually create other scholarship opportunities and I would think that the board would be amenable to to moving in that direction yes I mean from someone in the industry we can't get enough these are mechanics or just mechanics in general because we all know there's no more shade tree mechanics they've gone up bye bye which is another issue but. If we could find we've got a fund balance and the ability to help get some tuitions paid to people wanting to become these mechanics I mean I think that would be an opportunity we need to do so you'll need to talk to me about that if you don't mind because it's a big issue that this industry faces or absolutely absolutely I think what was it least one member of your body and talked about establishing an arbitrary amount of Stacy three years of operating funds anything in excess of three years I think anything in excess of three years of operating funds we could be using for those types of purposes and yes ma'am we would be amenable to having discussions with you and Act thank you thank representative representative Wooten you are. Recognized for a quick question. Thank you Mr chairman of the I will follow on the fund the fund balances this is a Hey almost a nine it to aid the half year fund balance and then you have a representative from this points out the educational needs that are out there and then but every time we've met today with would you go back and look at all the fund balances and try to come up with some form of some way to cut it back to the three years and then figure out what you're going to do otherwise because which are you know all of here is how we can use the money I don't hear anything being said about returning the money or reducing the fees to anyone the the lady that was up here before one to raise they have they have an eight year surplus in their fund balance and she want to raise the fees so at the I think I think we've got a psychological thing in state government the more money that we can take in particularly in the fieri of the better off we're going on the but if we're penalizing the people that you're supposed to be serving and caring for in showing in making sure that the public's being protected we need to use that money wisely. But these fund balances of eight years Miller. I've given thank my business with the head of the years or plus but I never did. President will your point's well taken it's will take and and I can assure you that since we saw you of a couple days ago we've been doing nothing but looking at these fund balances and I've been talking to the boards on how they can look at these fund balances I fully anticipated that we would look be looking at a three year kind of rolling average on operating expenses based on the conversations that some of you had with us a couple of days ago and we are in the process of looking at these fund balances and the utilization of those fund balances and if given an opportunity I would love to have an opportunity to come back to you and discuss with you at length how we will deal with each of these fund balances one quick follow up thank you if the search services that was how much was it caused you before transformation. Our this is the work right word to me is reorganization but transfer before transformation what were your cost running to do what you're paying the them will sixty seven thousand. Yes Sir you will you know what the figure was I can tell you fairly closely yes for C. would end within that is also read as was explained a little bit earlier than in copier costs and and parking and all of those types of things and prior to this moving over to this new building and becoming a part of DLL NO we were paying forty thousand dollars year for rent or rent to the state we were in the State Building but we were paying forty thousand dollars a year just rent of I was paying about four thousand dollars a year for parking of was paying close to two thousand dollars a year for copier rental so there were a whole lot of things that were included. In this transformation the we were paying for separately so as far as my calls for concern of actually reduced my costs just a little bit about moving over there. Plus I was getting free services quite honestly because I was part of the service bureau and as as service bureau the way that work prior to transformation I had the opportunity to work with people over an accounting and over legal and over purchasing all these folks were employed by the state and they were being paid some held by the state and they were not charging me for those services and then so here getting services that I am paying for but I'm I'm getting those services and I'm paying my fair share and and all voice the same as someone said earlier today it's really nice to be able walk right down the hall and fund legal person to to visit with and find a finance person an HR person that I can go down and talk to some of specialist in any of those things account and and I certainly don't know a whole lot about lower or about a chart begin with but it's nice to have all of that in a field. In looking back on what we do our part transformation my cost of actually come down just a little bit okay thank you thank you Mr chairman thank you thank you representative but you're recognized thank you Mr chair and I'll be quick I just have a question about okay that says that you transfer the funds. You guys are saying you transfer the funds when the department of education the various agencies get all the guidelines together so if that's the case then the act gave you oversight over what the department of education did with a grant program because they can do whatever grant program they want until they get money they can't do anything with it so is that your interpretation that you have the oversight that gives you the oversight to to require whatever. you one of the the education group because they can't put out the grants like tax call the them to do until you transfer the money and and I'm hearing I'll say that you're not interested in money. Until you see that they have that they're ready which at least implies that you feel like you have oversight over that no not at all not at all I think the act requires them to get with the motor vehicle commission based on how they're going to distribute the funds we are not implying in any way that we we have that type of administration we're simply waiting on them to give us the information as to how they're going to disperse the money Best that I understand Sir but you understand what I'm saying what are you what with that stat what with that step add the words waiting for them to put their things together what what what is that adding it you're not going to hold the funds back her. Say they're ready I mean we is at least implies that you're saying that you need to come in okay this thing with us before you go forward with it and if the act doesn't call for that and I think you should transfer the money immediately however spouse today thank you. Thank you Just with regards to. Is this the first fiscal year for that too and fifty thousand dollar transfer it okay so you had done that and the the the current fiscal year. I mean if they had gotten everything together prior to this. They would have won that they they would have had the money a year ago yes the accident place for over a year will they wouldn't and one we still have they gotten with the board we still waiting on the information from them to come to the motor vehicle commission and so at this point we don't know if there's a structure set up to receive the money are not that heavy set those funds aside for use the current fitting or the prior fiscal year I guess yes there's sixty million each year yes this set aside okay thank you senator Chesterfield you're recognized thank you to rex. I've got a motion the second scene no discussion on favor I hi and opposed motion passes moving on to item seven here in just a quick recovery isn't how many more of these come from the department of labor. That we get to final ones to find and then we have the department of health correct and then we have the audit subcommittee meeting. At eleven thirty am I correct that is coming up at eleven thirty yes thank you. AS one thank you Mr chairman and while you're doing that if we can have towing recovery and base here just make your way up to the desk go ahead thank you Mr chairman the towing and recovery board regulates the towing industry in the state their appropriation is found on page two seventy three of the manual. They have for positions and they are funded with cash funds derived from license fees and fines charge to towing providers their total request is for three hundred twenty five thousand dollars for each year the biennium. This includes just to some salary adjustments that were made in the previous biennium and there are no other changes other requests the executive recommendation provides for the request thank you Mr chairman thank you. You folks have anything to say before we open up questions all right president Cavenaugh you're recognized. Great thank you thank you Mr I'll make this real quick because we're tight on time if you could just please provide me the list of all your fees and if you send it to staff and they'll get it out to all of this the list of all your fees. The list of all how many license that you act you know people that are actually licensed and with that if you can X. whether your fund balance isn't that bad but if you get the fees and the let how many licensure as you have and how you have so if you get fees from you know somebody gets a fine or something I'd like to know that also. Yes you have a nice and quick and that that thank you thank you senator justly recognized move executive director right got a motion. Second sing no discussion all in favor say aye opposed motion passes thank you. Moving right along to bill bonds licensing if anybody's here you can start making your way up missed wall near recognized thank you Mr chairman the last board or commission for your reviews today from labor is the bail bonds company in bail bonds licensing board their appropriation is on page two oh six you'll see the department appropriation summary on page two oh seven funding is derived from cash revenues and special revenues as well as fund balances. They have for authorized positions and their three appropriations total one point seven million dollars annually. The first appropriation as the operations appropriation it's on page two oh nine this provides for the operations of the board a request about three hundred sixty six thousand dollars for each year the biennium. Any increase is simply include adjustments that were made and salaries in matching in the last biennium and the executive recommendation provides for their request the second appropriation is the treasury cash reimbursement appropriation it's on page two eleven. This allows the board to process security deposits and lines of credit to pay outstanding judgments of bail bond companies that go out of business to the courts the agency requested continuation of two hundred twenty thousand for each year the biennium and executive recommendation provides for the agency request. The final appropriation for the bail bond board is on page two thirteen. This appropriation provides for the recovery of forfeited professional bonds and to pay outstanding judgments to the courts at an amount up to ten thousand dollars per bond and forfeitures left by the closing closing bail bond companies they requested the continuation of the twenty three level of one point one million dollars for each year of the biennium and executive recommendation provides for the agency request thank you Mr chairman. Thank you do you folks have anything to add to that all right I got a motion exactly wrecked. Second. Senate discussion on favor I imposed motion passes that takes us to item number nine. Operative health We could have. Somebody came up to the table whoever's on your way of hearing and miss Hamilton you will be recognized as soon as you are ready thank you Mr chairman. How long before we get started here representative voting at a question Mister chairman I have a question would would would and I know they've gone to a lot of effort in their budget preparation but I don't think in thirty minutes we can look at all this budget information that we have concerning the department of health either say that week we do I make a motion that we either consider it in totality today and that will well every time the membership needs are there we postpone and asked them to come back a representative the. Legislative audit executive subcommittee is not meeting in this room so what we often sell walking so. And here is not being health time factor will that were not held to is just other than the membership of the committee and the lady right and it's all thanks the executive subcommittee of the audit. Regular committees will meet in the afternoon thank you so I'd intend to keep going hopefully not this out this morning. Samson you're recognized to begin. Good morning members thank you Mr chair in light of the representative was comments did you want me to go through the entire budget or did you want me to just hit the appropriations I have changed levels what with the Secretary want me to do. Let's start with those that have served change levels and and then if members have questions on specific other areas we'll get to those thank you Mr chairman all right so we're going to start with the first item on page thirty five you're going to see the shared services appropriation the health department basically develops public home health policy and plans and enforce regulations for environmental health protection this is their shared services appropriation on page thirty six you'll see that it is used to pay for the secretary of Arkansas department of health salary in their personal services matching their requesting that this appropriation continue this is funded by a transfer from their operating account your note on page thirty seven that the only change is an increase of the personal services matching appropriation a line item this is due to some rate adjustments that occurred in the previous biennium that they're asking to be continued into the next. Moving to page sixty five I think I'm going to make a note of this item this is one of the statutorily required reports that the department has to provide evidence for the minority businesses contracts over fifty thousand you'll see it on that page they have to culture connected communications they provide public relations and they specialize in diversity and cultural marketing and then they've got another one with the design group marketing group and they provide multicultural communications R. one contract is for one million the other is for two you'll see the total contracts that have been awarded by this agency local four hundred million. On the next page on page sixty six this is the department appropriation summary they have nine appropriations but they're only for which changes before I move forward I'm going to remind you of what Mister Brecht discuss the first day of budget hearings which is that they've got eighteen appropriations it you'll see that are not requested for the next biennium these are our per funded appropriations you'll see the expenditures in actual twenty one twenty two line item Collins but nothing moving forward funding sources or variety they've got fund balances general revenue federal revenue there's and fees from the local health units and then there's some fines and assessments some rebates and some reimbursement from third parties. We're going to move to page one ninety S. the first appropriation that has changes. I'm sorry. Page seventy and seventy three. Sorry about that. Yes im pei seventy four you'll see they have a nuclear planning grants appropriation this is from a special revenue fund that provides grants for emergency management for local governments and these are for the counties that are located around nuclear one funding for this is from the assessments against utilities that operate nuclear generating facilities in the state the requesting a continuation of their appropriation right now they've got three hundred and twenty five thousand dollars this spending this is an appropriation is. Divvied up into sixty five thousand dollar payments to each one of those counties. On page seventy six this is their trauma system appropriation it's a general revenue funded appropriation and right now the appropriation is used to provide guidelines for the care of trauma victims the system is fully integrated with existing emergency medical services providers hospitals and other healthcare providers. On page seventy seventy you'll see there appropriation summary. On the personal services line item you'll see that there is a slight increase in personal services matching going to see that throughout the budget most of it is essentially the rate adjustments that we mention that happen during the previous maintained that they're asking to continue the agencies requesting appropriation of about twenty six million in fiscal year twenty four twenty six million in fiscal year twenty five and general revenue of eighteen million since this is a general revenue funded appropriation and the executive recommendation is for the agency's request. The next appropriation can be found on page seventy nine this is their tobacco prevention and cessation programs this is a trust funded appropriation. Right now it is utilized for community prevention use programs and school education prevention programs and Forsman of tobacco control laws and some health promotion campaigns they do offer grants there are some contracts that they work with entities in the community to promote tobacco prevention and cessation efforts the agency is requesting to discontinue two positions so you'll see a corresponding decrease in personal services matching regular salaries and this is due to these positions being vacant for two or more years they're also requesting an upgrade of one position and one of their line items and you'll see a corresponding increase in that the executive recommendation provides for the agency's request which you will note that there is a difference because any upgrades or additions to positions have not been recommended unless they have been approved through council through miscellaneous federal grant so the agency's request is going to be slightly more than the executive recommendation and you'll see that on page eighty. So if you look in the twenty two twenty three authorized column you'll see the number of positions is decreased from thirty three to thirty one for both the agency in the executive and that there are corresponding decreases in personal services matching and regular salaries and this is something that the executor is recommending for the next plane L.. Before I conclude I want to mention one thing there's a new approach fairly new appropriation on page eighty five it's the full independent practice credentialing appropriation this is a cash in treasury appropriation it was established to provide a legitimate pathway to full practice authority for certified nurse practitioners and mentioning this because this was a bill that was sponsored by Senator Hammer the funding for this appropriation you'll note on the next page has not yet been established right now I understand that the committee members have been chosen and appointed by the governor the met several times and continue to meet the department of health I understand is working with this committee in order to make sure that they're got their rules drafted and developing processes if you look on page eighty six bill C. no actual expenditures but they are asking for continuation of the three hundred fifty thousand dollar appropriation into next biennium which is what the executive is recommending. Last appropriations on page eighty seven and this is for the interpreters for deaf and hearing impaired this is a special revenue fund and it is utilized to provide for the advisory board expenses an increase of fifteen thousand dollars is being requested by the agency an appropriation for both years to provide ongoing support for their services you'll see the increase on page eighty eight in twenty twenty to twenty three you'll see the ten thousand dollars as authorized in the increase which is also being recommended by the executive branch goes up to twenty five thousand for each year of the biennium that is the conclusion of my presentation Mister chair. Thank you the Department. Have anything to add before open up for questions. Push that one more time. Please state your name for the record we did not run I Mallory interim secretary of health and we have staff here that's happy to entertain any questions our budget all right representative Cavenaugh you're recognized thank you Mr marker to write thank you the first question I have is dealing with the trauma center I just wanna make sure in its on our page seventy seven I want to make sure this funding of the trauma centers are is this the funding that helps fund the trauma centers throughout the state. Is that what this does it is representative Cavenaugh it's our it's our administration of the program plus what goes out to the hospitals and other entities okay. Someone talk about that the excess funding now he got eleven point five million dollars in excess funding is that because we're not using is or is it the trauma centers are not getting used or. We actually get the money out to hospitals in the form of grants during COVID of course you know and you'll see this across some of our programs our expenditures are down because of that they were doing other things but we have looked at you know what we can do with that fund balance and looked at you know possibly getting more out to our hospitals into our EMS agencies. Okay yeah because I know our trauma centers are important and that's why it's just you know normally I wouldn't expect to see such a large fund balance in that particular area yes. And Mr I have another question if that's okay. Yep okay one more and then we've got some in the queue okay thank you this is going to be dealing with page number eighty which is the tobacco prevention and I'm gonna talk also about that actual fund balance. It's twenty one point seven million dollars and actually on the tobacco prevention we're only using five point one million dollars of that that goes toward those programs according to the data. Now a big chunk of it is going to professional fees for two million dollars so what are we actually doing with this tobacco money that's helping us stop people using tobacco. So. Of course we give money to the Arkansas cancer coalition we you know we have be well Arkansas where you know people that are are smoking on call list and we do follow up with them we've got a better success rate with me were all Arkansas then with an average national average G. as we are also getting into vaping we do a lot of advertising we go out to the schools and and help them there's just there's a lot of things that we do with our tobacco products okay in your professional phase what is included in that I would assume that what you just described goes into a tobacco prevention what is your professional fees. Good morning my name is Joe Thompson on it thank you to officer for the department of health of course there are professional fees are for contract are they go toward those services I don't have a list of those specific contract that we do have we do have staff from our center for health advancement they could tell you bills contract with that's what that's for okay instead I just bring for. Your time issues if you wouldn't mind but given to staff exactly what in that and exactly what we're doing for that five point one and that the back of that would I appreciate that thank you. All right representive Vaught you're recognized thank you Mr chair kind of following up on what representative Cavenaugh is talking about can you give me some examples of what you're doing for vaping because I don't see vaping decreasing in our schools I see it increasing in there being more of a problem so somehow there's a disconnect from what you're doing and what's actually happening. So a representative Vaught we are you know savings new so we are going out to the schools and teaching them about vaping we have project prevent with children's hospital and we are doing and advertising along and the vaping issue we also have a new program there's nothing nationally that targets kids for vaping for our elementary schools we have come up with a new program that hopefully it's being nationally recognized that we can get out to the schools but it's really really new like within the past three four months can you tell me how many schools you been in. I. Many have a large fund balance so I'm assuming we're trying to hit every school. In our state with this type of information. The school is willing but I don't know the number to that if you can give me the number of schools that you've been and what you've done to get in those schools and how we're lacking getting in other schools I would appreciate that can I have one more question Mister chair and I'll hurry on page thirty seven it says regular salary seventeen thousand. seventeen nine oh six and your budget for one seventy three five two two you only have one employee can you tell me why we're budgeted for one seventy three five two two but we're and are we really pay and so on seventeen. Don Adams deputy director so in this particular appropriation the expenses related to last fiscal year our previous second this is the only thing in this expenses is our secretary salary and so our previous secretary was not paid out of this particular fund so that's why there's limited expenses so when interim secretary was appointed her salary started to be drawn from this particular appropriation and there was only a few months and what your salary was for last fiscal year and so moving forward it's got a pool salaries worth appropriation which is based on the I think the not the past director but the director before that his salary that's what that's based on along with some cost of living increases okay thank you. Right representative Scott you're recognized thank you Mr chair I'm over here I just had a quick question about I guess page eighty looking at the fund balance similar to rep what representative Vaught said I know did you mention that you eliminated two positions and data upgrade for one of the positions. And the tobacco program. That's the request ma'am it hasn't been implemented yet. Okay. And so also I see extra help so are you requesting for extra help as well. Yes ma'am don Adams Department health only two positions that are decreased us to two ACT seven ninety six with required any positions that were vacant for more than two years to be surrendered so that's the result of the the upgrades relate to our I believe it is our nutritionist positions that we requesting an upgrade on due to our inability to recruit and but that's not included in the executive recommendation because there's a broader PAYPLAN increase that may be considered during the session so that was put on hold and yes we do do utilize extra help in some of our programs such as the tobacco prevention and cessation programs okay thank you. Thank you representative Wooten. Thank you Mr chairman I will ask you some questions about the personnel or quickly you have twenty two percent you have four hundred forty five four hundred forty six vacant positions twenty two percent of those are over two years so you know the age of those the three years five years six years two years. The positions that we have that are over two years old should only be slightly over two years old because the rest of weaver surrendered with maybe a few exceptions maybe one or two so most of those positions would be about two and a half years old or less okay follow up on that alone on the. State Medical Board unnoticed they have eleven vacancies seventy percent I have sixteen eleven of those or over two years. Well why isn't so high. Well I'd have to refer that to Matt Gilmore or and the director to discuss those specific us representative the state medical board is coming up but we're not quite there yet okay gin all right. What will one more question for them. Have you all been briefed by the federal government relative to the the pills that are. Being pastel in Ukraine. Concerning the nuclear resident is that part of your planning representative wouldn't we need to stick with the budget well this is a budget I won't know if they're spending money. OWN preparing for nuclear attack. As I understand the federal government is ball several million pills is that correct I don't know the answer to that we have not been told that thank you Mr chairman right thank you. Senator Chesterfield executive Rick got a motion and a second Cena discussion on favor I'm imposed motion passes thank you. Take us to. Health Services permit agency. Samson you're recognized thank you Mr chairman members are still only one we're going to go to page one of nine you'll see the analysis of the budget request for the House services permit agency this is a general revenue fund of appropriation and is used for issuing permits of approval for nursing homes residential care facilities assisted living facilities psychiatric residents facilities and similar entities are is funded as I said from general revenues but also fees from certificate of need applications are there are going to be some personal services and matching requests the agency is also requesting a discontinuation of one position with a corresponding decrease in regular salaries and personal services matching and this is again due to the fact that the positions been vacant for two or more years on page one ten you'll see there appropriation detail and the authorized calm again for fiscal year twenty two twenty three U. S. C. five positions and then the decrease being requested in both the agency and the executive recommendation for fiscal years twenty four twenty five with the corresponding decreases in matching and regular salaries. I concludes prestige Mr thank you seeing no questions or a motion emotions active ranks second. On favor I imposed as passes thank you for coming up to the table Minority health commission Samson you're recognized to present thank you Mr chair on page one twenty in your manual you'll see the department appropriations summary there are three appropriations for this and safety but we are only going to go through two of the appropriations that have changed levels. If you go to page one twenty four you'll see the first appropriation with change levels is the minority health initiative appropriations to trust fund appropriation. Tobacco settlement bottles or with funds yet in the authorized column you will see that there is an increase in positions being requested and sent explaining so they're moving from five positions to six positions the agency would like this for the restoration of one growth will position that was approved by legislative counsel in September of this year you'll see the corresponding increase requested in regular salaries and personal services matching this is the executive request and recommendation. On page one twenty five you'll see their operations appropriation this is also a general revenue funded appropriation and they use it to study issues related to the livery of and access to health services for minorities they usually provide a report to council General Assembly and governor of any gaps in the health service that are particular to minority populations in the state and they give recommendations. They are asking for continued appropriation and requests for general revenue funding in the amount of two hundred sixty thousand for both fiscal year twenty four and two hundred and sixty two thousand fiscal year twenty five on page one twenty six U. S. C. the appropriation summary. And you know if the increases in the regular salaries and personal services. Line items as well as look down at the funding sources you'll see the general revenue that they're requesting increase an executive recommendation provides for the agency's request that said Mr. Thank you I've got a question representative Cavenaugh you're recognized thank you Mr chairman here to your right thank you my question is going to be on page one twenty four. I'm looking at our excess funding which is six point one million dollars. And I notice that in twenty twenty one we only use two hundred twenty eight thousand for that screen and the monitor and outrage. Why was that and that's lower than it has been historically in why are we spending last special in the time of a pandemic to reach out to the. To the minorities in areas in our state because I know myself with the Hispanic in the Marshallese that we have in our area they got hit pretty hard with COVID and so I was just curious about that. Good morning I'm Kenya Eddings executive director for Arkansas minority health commission and so you'll see that during COVID nineteen it hit us pretty pretty hard we're still trying to recover from that and so because of that our expenses were reduced we hope that with things be lifted that we can get back out in the community so that we can spend those dollars to address the minority population. I thought Mister chair so for the screen and monitor and outreach programs are those actual screening test for the minorities what what is actually involved in that and and I will just say that I am new to this position. So I'm almost nine months into the position but we did receive care spending to help with screening testing and things like that and the community. Okay but is that what this actually is is used for so we have our accountant here. And she is happy to help address the question for you okay thank you. Good morning S. the Frazier accounted for the Arkansas minority health commission of the reason for a fine balance yes covid did hit us but we also of receipt of funds from care and those cares funds were distributed to organizations faith based organizations as well to assist with allowing them to purchase PP of some funeral costs food especially in the Marshallese population. Heavily in the Marshallese population and what about the the excess fund what waters also plans on that how we are going to utilize that to happen to help these particular populations thank you for that question we do plan to expand we have a lot of plans to do some work with maternal morbidity mortality and depression as well as mental health as you are aware COVID nineteen put a tremendous burden on mental health particularly in the minority community so we want to to do some out reach continue our outreach with that and then just in addition to that continue with our preventative screenings and programs as it relates to heart disease cholesterol hypertension and the like this is sickle cell and do you all do stuff for sickle cell and you'll have awareness as it relates to sickle cell thank you okay last month with sickle cell awareness month okay now add representative Cavenaugh you know can you it says she's now she's been there non but she's got a lot of good ideas for things to do and spend some money well I just know Marshallese is a big population in my area along with Hispanics and so I know that there are they have some special needs and you know we got that fund balance I'm thinking is there a way that we can kind of target those areas so we can make sure that they're getting the information that they need we've we've had some conversations with some representatives from the Marshallese community and plan to go up and visit with them in Northwest Arkansas really soon we continue our radio program with the Marshallese radio station that doctor recline host every month without reach health information except around okay thank you so much thank you representative Vaught you're recognized thank you Mister chair I would also ask that you come to Southwest Arkansas where we have a lot of Marshallese and Hispanics also. Absolutely and we do use little utilize a mobile health unit to get into that area and we are we cover all seventy five counties so where ever there is a need we are more than willing to go to thank you for the invitation thank you. Thank you sing other questions. hold on okay. I got a motion is that correct the second all in favor imposed motion passes thank you. Having on to number twelve tobacco settlement commission Samson you're recognized. Thank you Sir on page one seventy one you'll see the operations for the tobacco settlement commission. This is funded from investment earnings from the tobacco settlement program fund and they're program accounts. The utilizes preparation the monitor and evaluate expenditures made from the four program accounts that were set up by initiated act one. Those are the prevention sensation program account the target state needs program account the Arkansas biosciences institute program account and the Medicaid expansion account agencies requesting just a few changes a discontinuation one position with the corresponding decreases in regular salaries and match and this is because of positions been vacant for two more years executive recommendation does allow for the agency's request and you'll see on their preparation summary on page one seventy two once again in the authorized calling for fiscal year twenty two twenty three two positions and then moving into the biennium a decrease so there's one position moving forward and then the car Spondon decreases. That's it Mr. Thank you representative Cavenaugh. Thank you Mr chairman I'm over to the right I'm gonna stop about the fund balance in this one too because it's quite large if you look at it compared to what your expenses are. What do we do with that fund balance. Matt Gilmore department health thank you representative Cavenaugh the commission operates strictly off of revenue from the interest they don't receive any other funding the last couple years with the downturn interest rates they have not gotten anywhere near what they typically bring in for their normal expenses so you're right there is still a balance there but again at the same time they don't receive any general revenue so there needs to be a little bit there to carry them forward if that if the settlement funds ever drop off completely the commission in the past has doesn't grants they're going to evaluate that again it's been awhile since I've done those and get this all the return they wanted to on some of those grants but I think that is an option moving forward but also work with department of health and as the board or commission to come underneath them the department has got some of the ways to help you know support those services when you know if you noticed that cut the X. the personnel down to one so they can come and help us some advice and guide their on how to do this grants going for. We have a fund balance for over twenty three years. Based upon your expenses correct the so what do we do with that fine balance because I understand needing a surplus and in some reserves twenty three years is a little extreme in this particular case sure as I said I think we're gonna look at going for with some grants like we did in the past with the commission of the Commission stop those we can we'll we'll do that moving forward That's where I would say at this point we can look at that moving forward again. At the end this might be a question for staff is there any State Bank statutorily it says that we have to do with this money that it has to be used in a certain way is it is it got handcuffs on and I guess that's what I'm asking. Rivers. Representative Cavenaugh I can answer that someone it is has to be it does have to be health focused okay so we can work with a partner felt they have lots of different grant programs we can tack on to any help support those but it has to be health focus just ma'am but it doesn't have to be tobacco focus it could just be advised it could be related to health and someone okay all right thank you. Right representative Wooten. I'm just curious all you have a two employees and you have one position has been vacant for two years what is that position it was the director and when transformation happen the Department help absorb those duties and so we have one person they're doing the work now working with the Department health and other duties so if you if you want to use it okay and what we've we surrender it it's been surrendered well I know that but why do you would show. We want you just give me the I'm an ongoing battle so I understand why you want to hold on to something that you've already done away with so in the last session your bill that you passed I had identify positions that position is going away it's just going on the budget that is going away okay we've already surrendered and this fund balance thing is alone going deal every year we come up and we have ever agency most of them have you know understand of two or three year but other known stand twenty three year fund balance. That money can be used wisely to whatever is intended for but holding on to that we need to reduce the fees or use the money or question this is not fee based but still thank you Mr chairman thank you representive seen other questions a motion. I got a motion I got a second. As seen of questions all in favor aye any posed motion passes thank you moving on to. Examiners of a I'll close them alcoholism drug abuse counselors was Hamilton you're recognized thank you Mr chair we're gonna move to page forty two in your manual this is a cash fund it appropriation derived from license fees and interest distributions they utilize it to license alcoholism and drug abuse counselors regulate the licenses and investigate complaints they also sanction any who violate the rules or code of ethics of the board there are no we're changes requested so the budget is pretty much the same as what was authorized in twenty twenty three the only thing on note on page forty three is when you're working in the regular salaries line item you will see an amount even though there are no positions this is a board that does get member stymied stipend payments and that's where you're going to see that expenditure that's the conclusion of my presentation Mister chair. The. All representative Cavenaugh. Thank you for questions thank you Really what I'm going to be talking about is the turn around time for applications so I'm just trying to get a feel for this do we know what the turnaround time is in the approval for renewals and they once do we know how long do we have a backlog. Panel five board administrator our turnaround time is is very quick we meet monthly if they approve the licensee that I get the paperwork documentation out the next week. We don't have a backlog okay thank you and do we have any plans to look at state compacts or not start working with state compacts with these top allies injures. Representative Cavenaugh I think you'll see when the psychology board comes up in a little while they did a compact last session there is talk about one with counseling you know I don't think the board really has a position on that but I do think that there is some talk amongst industry do that and I think that would I don't know how that would impact this specific license but in general we don't have a major issue with complex in general if we get the compact that makes it much easier long as the compact's good compact let me do that but that Kevin got up to it. But we have to match that was with the state with what our goal under thank you. Representive operator. Sir thank you Mister chair can you explain the process of your applications renewal are they online. and to go to policy and licensure a and C. E. E. years or forty all day. Yes we're not online we actually have a very small budget if she can say a so it's all manual mail to me and the requirements are three years of supervised work experience R. L. IDA cities have to hold a master's degree they also have to have another credential so we have L. PC's LCSW psychologist they're all fully credentialed renewal time woodwork asking for forty continuing ed hours per to your session and we're in the midst of promulgating a new role in making that thirty hours. And a representative Cavenaugh might've asked is not a mistake but how often the army. Monthly once a month. Okay thank you Mr all right thank you all take the motion now. I get a second. All in favor. Imposed motion passes. All right that Texas to board a board of examiners and council. Smith Hamilton you're recognized thank you Mr chairman removing the page fifty one in your volume one this is a cash in treasury appropriation that's funded from application renewal fees fines interest the appropriations used to govern the appropriate practicing the behavior relatives accounting services they have purview over professional counselors associate counselors marriage and family therapist and associate marriage and family therapist they utilize their appropriation expenditures for the administration of examinations and licensure as well as the operations of the board you're not gonna see a lot of changes I'm on page fifty two in their appropriations summary of all of the increases you see you're going to be as I mentioned before due to a salary and matching rate adjustments that occurred during the biennium that they're asking to continue that's agencies request and that's with the executive recommendation as. All right thank you representive Vaught you're recognized thank you Mr chairman we'll talk about fund balances first how about that so I see that you do have a large fund balance I have not looked in the book to see how long your fund how old your fund balance is you tell me what your plan to do with the fund balance. I can start and then we'll let miss Erickson she cut her fees you'll in and several board center after transformation we did a fee cut across I think around seven or eight boards so she has cut her is and you can kind of see it going down there so we're watching that closely she also has implement some licensure updates to our online platform so that's going to. Bring that down as well but I think we're gonna watch this one closely but we there's a fine line in there you can cut too much and you know go into the deficit so we're trying to be careful there so we've been having a large working group of talking about mental health I hear in the state of Arkansas and what we can do to move forward and actually move the needle in Arkansas because we're really low on the totem pole when it comes to mental health and and actually Making headway in it for the better. so I want to know how often your board meets. Lenore Erickson Arkansas board exams and counseling director we need monthly okay and so what type of business does your board handle does it handle policy C. E. use licenses all of it okay and can you tell me the process for a new graduate to get their license. When they can apply within their last semester of graduate course work to go ahead and start that process they sent us our application I approval of the core curriculum send the letter to take the national exam name national exam process is a different thing we're not in control of that they just administer the exam once they get their exam scores back the exam administrators upload discourse for us we download those that fit your background checks so it's a little bit of a lengthy process but. Some people can get license within a month if they start their exam before they graduate and that's why they're applying before they actually graduate and we go and get them started on the background checks and their exit national exams so that when they do graduate it's goes pretty quick. one thing that we are working on right now is doing all processes online we're in the midst of transitioning to all online applications already got all online renewals complaints reporting and everything so what we're in the midst of it right now okay I will save during this council there in our work group there is a lot of complaints about child loss injury and about how you'll do business and how efficient it is and how quickly I'll get things done and I do mean a lot of complaints about it and that's one reason that I ask for you all to come back is because again we are in a mental health crisis in the state of Arkansas we're talking zero to prison or in a mental health crisis and we're taking too long to get people into the field actually working with their licenses thank you Mr chair. Thank you representative Cavenaugh thank you Mr and just going off of what representive Vaught was speaking about do you have a backlog and if so how much is that backlog for licenses we do have a working cabinet of people that were waiting on documents to get to us they're it within the process maybe they haven't taken their exam or they failed it or they haven't finished their background check or they're not graduated yet so if they start applying before they graduate they can actually finish the process until they do graduate so we could hold that we could be working with an application for a year. If if they don't finish the process they graduate but they don't pass their national exam they have to retake it but usually people get license within a month because we need you know every month they're reviewing licenses every month okay do you know how many applications you have that you're working on that I'm working with now I don't have that number with me okay and are you looking at any state compacts. We re we looked at the one that's out there just to be familiar with it but they're not discussing it. Representative Cavenaugh and like I said that's an issue that. I consider type of scope issue and that's a decision I think this body has to make but I don't the board not opposed to that my understanding okay thank you. Thank you representive and if if you're looking at any type of scope changes I'm not sure exactly what the deadline is to get an ISBN but it's coming up pretty quick if it's not real fast let me let me clarify that a little bit I don't think it would quite meet the definition of scope ISP but we try not to get the board involved in a conversation that may be controversial because their some to do what the the compact some that don't so we leave that for the industry and this body to make that decision thank you signal further questions. Your motion exactly wrecked. Second. No discussion at all in favor. He opposed motion passes thank you. State medical board exams and you're recognized thank you Mr chair we're moving to page one sixteen in your manual this is the operations appropriation for the state medical board it is a cash operation funded from fees charged by the agency this is used to own power license regulate the practice of medicine in addition to that they have assume the licensing relevant regulatory responsibilities for other allied health professions including occupational therapists respiratory therapists physicians assistants and radiologist assistants they also registered medical corporations the request of the agency for the next biennium is to discontinue seven positions in this again is because the positions were vacant for two or more years the executive does provide for that request and you'll see the corresponding decreases on page one seventeen in the regular salaries and personal services matching line items as well as in the authorized number physicians you see the decrease goes for forty one to thirty four. The only other thing I know is on the capital outlay a line item which is at the bottom of the appropriation summary you'll see they will authorize sixty six thousand but there are no requests for preparation for the next biennium that uses for a company called governor can't government connection and they were providing IT cloud and software and other related services they no longer need those services I believe that the of contract is complete is that right. Good morning I'm Amy Imbrium the director of the state medical board. Yes that is complete. All right and since I was one requested to be here could you speak to the fund balances that you have kind of the general theme of the day it seems like what what's your plan with that. And going forward it's kind of. A large fund balance looks like. Yes currently we have twelve point five million we do have proposed legislation that will allow us to reduce fees nearly all of our fees are in code so any any change whether we go up or down would require legislation the legislation reporting for would give us the flexibility to lower these fees and not go any higher than what they are again that's proposed legislation that will be a decrease in revenue coming in also we're using the fee waiver that was passed in the last session and we have had some applications that have come in that will decrease our revenue we are going to have some increase in cost in particular IT costs the we're in the very beginning stages of that so there will be some increases and we're going to attempt to work with the appropriation we have local see what we can do excellent thank you. Representative Wooten. You're recognized. The mobile is right on page one seventeen. You have budgeted forty one you have one position field and you're showing a million dollars and you paying somebody a million dollars no so that was a typo. I do feel that was a typo in the number of positions if you look at the budget and the authorized they've have forty one positions for quite some time that that literally was a type of an actual expenditures or so month following I got this requires. You've got to sixteen vacant positions eleven of one or seventy percent or over two years so what are those positions and while you keep holding on to. The I'll do it will represent I think staff. Might be able to speak to after. You'll see representative wouldn't I just wanna make sure we're clear that as Mildred said they are surrendering those positions that you're talking about for the next coming year and they're just showing up in the manual because they were previously authorized I don't know if that answers your question. But they are surrendering the positions that were two years old and their request they will go away these were positions that have been identified as vacant we went hands rendering of the just showing up in the book okay all right thank you very much thank you well being no further questions motion. I've got a motion the second all in favor any post motion passes thank you and going to state psychology board Samson you're recognized thank you Mr chairman were gone Page one fifty for the manual this is another cash and treasury appropriation funded with revenues derived from fees collected primarily for applications testing and renewal. In addition to approving the credentials of all the applicants and scheduling written examinations and investigating allegations of ethical violations the board also is charged with implementing continuing education requirements the agency's requesting increase slightly in regular salaries and match. And this is for some request vacations title changes upgrades and were down creates as I mentioned before the executive recommendation is essentially keep everything the same and allow the new administration to determine whether or not they wanted to make changes so on page one fifty five. You'll see from the authorized fiscal year twenty twenty three calls that there is a slight uptick in the agency's request. In the regular salaries and personal services matching line items but you will not see that in regular salaries in the executive recommendation you will see a slight increase and that was due to a salary range I mean the personal services matching rate adjustments that we mention that took place during the biennium that are going to be moving forward into the next that's the executive recommendation agencies request Mr. Thank you representative Cavenaugh thank you Mr chair over to your right I want to talk about the fund balances you can imagine because it's almost seven years worth of fund balance so what are we gonna are you all looking at reducing fees what are you looking at doing on this particular one again on this one you can see it's kinda starting to trend down so we have got some fees they're of they're gonna make more cuts hopefully early next year we go through rule making process again after the session they've also had some expenses around IT but the plan is to move for reducing those fees well I know you show it going down but if you look at what cast you brought in it's above what you projected so if I'll go through the same process I went through earlier by another agency if you give us real numbers of what you're actually what's your projection is based on what you're actually protecting because you actually brought in a hundred seventy eight thousand and your only projecting a hundred and twelve so there's a disconnect between what you're showing us for future so that shows a fund balance going down but in reality it's going up. So this my balance will continue to go up but as again we're going to stress heavily cut fees and reduce those further what are done okay and if I can just as real quick do you have a backlog and how long does it take for you to get a application for calling the restricted Larkins Asa College Board we don't have a backlog we meet monthly and only takes hours for school suspended a transcript. And we meet monthly and using licensed people every month okay thank you. Thank you representa Vaught thank recognized it's me again again been working with mental health working group there's about a hundred fifty or more people working on this. At how is your application is it online yes ma'am it's on Lee online okay and you said John meet monthly yes ma'am what is your board handle doesn't handle policy last centuries C. Hughes what is it handle all of the above all the above and can you explain your process for new graduates applying for first time loss injury and your renewal process yes so I'll start with a renewal process we knew every year we start in may first and we and June thirty first so it's a two month renewal process that happens every year. And for a first time applicant We required that they complete an internship first at an accredited program and required two thousand hours and that's the standard for all licensing boards for the other states but after that we require that they be supervised FOR two thousand hours at a a mental health institute then once they receive the two thousand hours they can take their national exam and will register for them and their coordinate with the national exam of when they want to take it and once they pass the national exam they'll go before us for for licensure review and if they complete everything will lessen them. Okay thanks again a lot of complaints about your board and efficiency and how fast things get done and so we we need to work on our efficiencies we really do as board members we've got to got to tighten up somehow thank you your representative representative will you're recognized. Thank you Mr chairman I'll be very quick I wanna request miss Mallory of the of the health department you have the responsibility of overseeing all these agencies boards and the health department and we continually hear that we're looking at we're doing it we're going to do that were taken down the fund balances were looking at the personnel and all that and I appreciate it but we don't see any direct financial results from any agency not just you This Is throughout state government so I'm gonna ask if you would tell me not today but in writing give us a statement of exactly how you're dealing with the fund balances and how you're going to continue to do work study time studies on your personal email and and give that back to us so that we have something to measure the results in the next fiscal budget because it is this is a repetitive problem it's gone over twenty years and is going to have to stop this fund balances or too much too great eight years ten years no less this and then you have positions that are five and six years old that are unfilled and they're still being carried not you I'm just talking in general but we're gonna I'm gonna ask you judge agency if US permissible Westerman to give us a written. For me the or how you're going to go about reducing these funds cutting fees you know what whatever it takes. Yes Sir I think we get the point you know we've got it we will get something we you know that will be our focus to get the space down because I don't want to sit here two years from now and B. listen to the same thing and I know you don't want us to do so we we've we've got it clear thank you thank you appreciate it thank represent German. Senator Hammer you're recognized thank you I'm a direct this to Matt if you will even sit here all morning haven't you. Yes Sir you heard what was requested of the Director beset and boards that he's over as far as the you know of a plan to cut it down similar to what the representative was just mentioned could you get that for all the boards that you have jurisdiction over any we can work on that but I'll I'd like to say hello to I think we've got evidence of where we have cut significantly on some of these boards is going to make a difference sure so we're working towards that but I can get you something yes Sir SO three year three year ballots was well has been referenced previous today do you feel that you feel that's achievable as far as you know using a three year average going you know to to get to fees reduced down to that carry forward or could they identifying unique qualities that maybe they had or have you know and what you are present I think it is I think it is doable in one thing with transformation you know a lot of these boards we have brought in and we're getting getting familiar with ending used in them and the way they license and operate and that sort of thing it's taken a few months to do that we've also been middle the pandemic's I'd like to say that but again the same time as we're bringing the men were identifying savings for example we've moved I believe seven or eight boards and one of our buildings and we've got there's no more rent their their savings are going to fight there so I think we can get down to a three year average something like that and we can put together something like that so that would look like to get that to you all but I think transformation as hell to think having department health involved overall would is held these boards and one bit a device efficiencies and also looking at ways we can help in this work in their efforts all right thanks thank you Mr I'm not to belabor that but I wanted to say that I didn't want it to sound like we were making excuses but we have you know works with these boards very closely to fold them into our processes and our daily operations and it's just taken us a little while to to assess all the things and now we can start working on some some other things thank you. Thank you representative wouldn't a quick question please. The committee I understand where you are because I've been there oversaw the department of commerce and I understand that you're statutory responsibilities fiscal and that their mission so the other statutory authority is outside your realm of overseeing so but but there's a thin blue line but they are answerable to you for the money and the mission and all they accomplishing the service and so I understand where you are is it is a thin line but we need your help to get this under control thank you Mr chairman. Right see no further questions the motion. Emotion is second single discussion all in favor aye any opposed motion passes thank you and that takes us to our final one social work licensing board Simpson you're recognized thank you Mr chairman members were on page one fifty seven in your manual this is a social work licensing board funded with special revenues these are the collection of application and license renewal fees that are authorized in statute they are responsible for regulating the practice of social work in Arkansas and that's essentially what this appropriation does with the exception of regular salaries and personal services matching they're asking for continued level of preparation for the upcoming biennium you'll see their detail on page one fifty eight you know the slight increases as I've mentioned before regular salaries and personal services matching due to the rate adjustments that occurred in the previous biennium may also receive some pay plan adjustments through peer back in April of this year so the agency requests and the executor recommendation moving forward for the values that you see there thank you Mr chairman. Thank you representative Cavenaugh you're recognized thank you Mr chair again this is another one the fund balance that we need to work on and so I'm not going going to that one that's just another one. Can you tell me how many license did you do how many people have you got license a social worker. If nine I'm ready to bang with the social work licensing board or the director we currently have four thousand one hundred ninety seven social workers okay what is your facie to be licensed we have a one hundred dollar application fee an eighty dollar renewal fee okay and do you have any backlog and how long does it take for you to actually get your applications processed we've recently made some changes and we had licenses issued within five days the ones that take a little bit longer usually on the applicant's four because they're not turning in the proper paper work the. I can be anywhere from about a week or more to couple with a couple months that we follow up regularly with each applicant to make sure they're getting their items turned B. and to try to get them licensed as quickly as possible okay in this at five days after the board approves on is that what we're we're talking about we have recently implemented some changes where staff is actually approving applicants now okay and the board just review center at the monthly board meeting with the staff actually approving applications if they get their application and required paperwork being we can get him out as soon as they qualified we do not have to wait for the next monthly board meeting okay thank you. Right representa Vaught thank you Mr chair again mental health working group lots of complaints about lost paperwork and things like that which keeps people from being and certified I guess saying or licensing or can you tell me what policy do you all handle policy and last injury and see use or what all the all handle as a board our board is a little bit of all of it okay and can you tell me the process of renewal and if a new if somebody is knew what the process is for them to get licensed yes ma'am the renewals the easiest the applet the licensee's can go online they submit their thirty hours of continuing education of the ward staff reviews it if they met the wrecked the requirement we issues a license that day and send it out to the license applicants apply online and majority of the cases we send them information for their background check there's a new applicant brand new graduate has to turn in the transcript complete their background check and we issue them a provisional license right away. Out of state applicants have to turn in a couple more items that. As mentioned before we follow up with them regularly to make sure they're getting items the and so we don't have much of a backlog on if there they issued as quickly as possible can you tell me the average turnaround. And with their new process it's been from a couple of weeks to a couple months thank you Mr thank you represent voting you get the final question yes Sir thank you how many members on your board we have nine board members nine and how often do they may we meet once a month to month okay thank you Mr. I got a motion for executive wrecked. And second on favor any opposed nay motion passes thank you appreciate you members will be back here next week or. Nine o'clock we're Journal.