ALC-JBC Budget Hearings

Okay members welcome back we'll do the afternoon session A. L. the JBC budget hearings and We have a public in Cloyd retirement really Director. thank you will be coming up. I thought I saw her there you go everyone. Have a come on up the table and we'll have a Mister Billy Parrish. Presenting here in a minute if you all will serve them. Let your mac up and going recognize yourself please. Amy Fisher with anchors. Jason Wallace CFO and apers. Els and woods deputy director papers thank you all for being here today Mr Parrish will let you go ahead and at present. The card thank you Mr Billy Paris bureau of legislative research Ron page three hundred volume one manual one Page three hundred this is the Arkansas public employees retirement system. This agency administers a statewide public employee retirement program for certain state county municipal and some school district employees apers also administers a state police retirement and judicial retirement system's the director serves as a security administrator is responsible for coverage related issues for state and local government employees. On page three hundred three hundred one of the shows the contract award minority owned businesses in employment summary and publications. On page three oh two is the Department corporation summary the system has six appropriation requests to sections have a change level one of those cheese levels the reallocation the system has this is requests one point zero five nine billion for each year the biennium but the executive recommendation is for less. The system is funded by investment income employer contributions and employee contributions. On the next page three hundred and three is our first request is public employee retirement operations and this section provides for the administration system is supported by a person trust fund. On page three oh four is that appropriation summary of the total authorized for fiscal twenty three this is the third column at the bottom is a hundred and forty one million seven hundred fifty six thousand three quest for fiscal twenty four is a hundred forty two billion three to fourteen thousand that's less than a one percent increase. The second recommendation is for slightly less four hundred forty two million three hundred nine thousand still less than one percent that's less than the agency requests and that carries over to Fisker twenty five requests for it from the agencies under forty two million three hundred thirty four thousand but the exact recommendations for less under forty million three hundred sixty eight thousand those change levels occur on the regular salaries and personal services match line items the regular salaries line item is nine percent more for each year the biennium the regulations for slightly less than that personal services matching is for thirteen percent were for each year the exact recognition is a little bit less than that a majority of the change levels or salary matching Justin's made in the current biennium and they're requesting to continue into the next biennium agencies also requested to discontinue six positions restore for growth will positions reclassify seven positions the exact recommendation agrees to the discontinuous expositions in restoring for growth will positions but the executive recordation does not provide for the reclassification of positions and more discussion of positions in those movements will take place in the personal subcommittee there is one more line item with the change of its conference travel well as authorized in twenty three was forty two thousand five hundred in twenty four the request is for sixty seven thousand five hundred that's a six percent increase the second recognition does provide for this request and the reason is that a there's an increasing travel expenses due to inflation if you look at the table at the bottom for funding sources retirement systems operate differently than traditional agencies the system assets are put into investments to produce revenue for the system and funds are drawn down as necessary to pay benefits refunds and system administrative expenses the trust funds of the system act more the pain accounts you'll see a zero balance in funding matches the. Here's actual expenses. The next page three of five is next request this is the state please return operation section this provides for the administration to state police retirement system and supported by the state police retirement trust fund on page three oh six is there a appropriation summary in there is no change level thirty thousand thirty million to eighty five thousand is requested and that's carried over through the biennium and that six recommendation provides for this request. On page three oh seven is the judicial retirement operations section this provides for the ministration of that system it's supported by the judicial Kermit Trust Fund in on page three oh eight is there summary. The total authorized for twenty three is eight million six hundred fifty thousand there is no change level as far as total amounts but there is in the line items is re allocation in operating expenses thirty thousands authorized that decreases by eighteen thousand to twelve thousand that's a sixteen percent decrease but professional fees has an increase of eighteen thousand and that relocation is due to increased costs and additional scope work for investing consulting and actuarial services and that such as experience that either we do that every five years and analyzing the impact of potential legislation. On page three oh nine is the public employees retirement cash section and this section provides the spending authority to make benefit every phone payments by direct deposit it's supported by cash fund on page three ten is there summary there is no change level but the executive recommendation is for less if you look at the benefits non employee line item was authorized in twenty three seven hundred seventy five million the exact recommendation is six hundred seventy five million so a hundred million less than thirteen percent decrease and speak with the from a and the reason for that recommendation is they want to make it more into line with the actual expenses for twenty one twenty two you'll see the first column five hundred seventy million was the actual spend for that year. If you look on page three eleven is the next request the state police retirement this preparation section allows payments by direct deposit supported by cash fund on page three twelve is there summary there is no change level thirty two million five hundred thousand is authorized that's your questions biennium the second recognition provides for that request. On page three engine thirteen is the last section this is judicial retirement cash again this provides twenty three to make benefit and refund payments for a by direct deposit and on page three fourteen is there summary there is no change level twenty one million was authorized message requested for the biennium thank you Mr. Thank you Mr perish Director featured you have any statement before we get started. No Sir I'm good faith thank you for the question representative Cavenaugh you're recognized. Thank you Mr chairman here to your right thank you for coming my question's going to be dealing with Page three all for which is gonna be that Arbus Fund on the operations retirement operations. And you have a Request here in professional fees for five million dollars your spend is only six hundred thousand. Then if we go down and we look at data processing services you have a request for four million dollars your standards only two million dollars and if you go back and look at your historical data and I'm bringing these two out is because your professional fees drops when you add in this new line item for data processing. So my question is I'm assuming your data processing was in part of your professional fees. And why do we need to increase. Yes so you did reduce your request when you took the data processing out of professional athletes. A previously those were included in one line item in a to be go back to like FY eighteen in previous and then those were broken two separate line items between professional fees and the death process. The address all that because you did not reduce your ask. Based on the actual based upon I mean you you ask for five million dollars that's correct we we did we kept at the same level okay you don't need it you only need it was five million dollars for the both of them but you're asking for nine million dollars yes and the reason why we've typically kept that additional mounting there's due to want any time there's a legislative changes or anything there could be a significant additional cost incurred to the system so that's why we maintain that extra appropriation there we are asking for four million dollars above what you had originally had for both of those items. Yes under her store XP and even when they were combined never matched the five million you're correct we have always maintained and kind of an excess amount there that is. So on your professional fees why could we not drop that to two million because you're spending less than a million right now. And on your data processing why could that not be dropped to three million because you're spending right at two million and yet still have the five million that you're originally were asking for could we do that. Representative Cavenaugh what we could if if that's the will of the body and I believe what the the team has done in the past is just try to keep that level so as we go through session a lot of times you know there's a question about how this will affect the plan so it makes our consulting fees go up also if there's any kind of new technology that we have to change what we have we bear this cost but but if it's the will for it to the decrease we certainly can't okay because you're actually not you're you separate it to I'm items and it didn't reduce what you ask for you actually added four million dollars on top of it so chair at the proper time all have a motion please. We'll come back. To you we have some more questions. Representative what you're recognized. Thank you Mr chairman I've got a question about your your twelve positions of been vacant for over two years you know the the time spent on any of those or thank you for two years three years four years or how long they've been like. I don't have that information right now but I know that we are surrendering six positions that have been on there over two years the ones that have been longer than two years we are surrendering do you know from a Mister do you know the the last time that you all did a work study over there on the Amount of work that each employee is doing and if there you know if there if you they're all needed have you valid what have you evaluated the position relative to the taxes they're performing in is it this is deserve a full time position. I'm. I've been there for three months so I'm gonna let the deputy director speak to that but I will say I've been evaluating it since I've been there and I believe the staff that we have now are fully working there there's areas where we might When the agency was established there was no computer systems and so some of our grading I think it's a little bit off that could be adjusted but as far as for the people that they're I think they're working full days work. So okay so Allison with deputy director and I'll add to that and say that in twenty seventeen we implemented a new pension administration system and starting in maybe two or three years before that as some of the lower Grady positions became vacant we did not build them which is how we ended up some of these anti of positions because the system was wanted to drastically change the way we work and we are going to need to lower grade positions we're going to be more management positions to help us to some more business process improvement you know business re engineering and so we have now we we have a sample for the last two years we've had a pretty stable you know new system and so we're better able to see you know some of our staffing needs which is why we re added those for GS eleven management positions I think last no that was this year so so we we started to do some of that now but our focus mainly is on I'm getting management positions in there to support the kind of medium grade staff. But I don't want the other one see any agency be penalized but I will be sure that ever agencies going back and looking at each position of time study to be sure exactly what is needed for support staff standpoint and if the the are you just are use designs are you saying the twenty seventeen was the last time it's all took a look well and that's when we if implemented our new pension ministries which is going to draft evaluation that system since then we start we started doing that about two years ago and and one of the things that some of the management will do is in this new system we have a better ability to monitor the work flow so we can see what's coming in every day we can see how much they're doing every day so we're able to see the the productivity and we've we start to see your last two three years and management is what what we're needing. One more question Mister chairman. Of the twelve positions how many of those are budgeted. We. They're also budgeted all or all twenty four budget. Twenty four we have eighty one reckons that include a twelve. The show will report that I've got his twenty four vacant positions which includes of twelve the twelve that are over two years. So all those funded by mail all those those are in the and all adjusted thank you thank you Mr chairman thank you. Okay notes I'm not saying any more questions of the representative Cavenaugh if you hit your but not all let you up if you have a motion yes thank you Mr chair I like to make the motion to expect to accept the executive recommendation with the following changes on and professional phase take that to two million dollars and on data processing take that to three million dollars. managed and I have a motion to change the I'm not a professional fees to two million in the data processing services for three million that is correct. Yes Sir is any discussion on the motion. Seeing a line I have a motion and a second. A second all in favor aye aye opposed. Amended motion passes. Many amended exact correct passes. Thank you all for being here today. Mr Parrish we have a we have audit coming up for auction teacher retirement rectory road if you want to come on up to the table. And Be prepared will lead outcome give their report members this is the last sheet on your black and white copies Yes the the sample copies you got if you want to follow along with that our report. Please recognize yourself. Would give you report. Don Morgan field office supervisor for legislative audit. The Arkansas teacher retirement system audit for the year ended June thirty twenty twenty one contain one finding the Arkansas teacher retirement system notified Arkansas legislative audit of an overpayment of member benefits the death of a member that occurred in may of two thousand seventeen was not reported to the agency and till October twenty twenty one resulting in over payment of fifty one thousand five hundred twenty three dollars Mister chair that includes the findings. All members any questions for audit staff. If not thank you for your report thank you. Roton is there any state would you like to give before we get started no Sir not okay thank you Mr Persian one let you give your report. Thank you Mr chairman page three thirty five H. the thirty five this is Arkansas teacher retirement system this agency administers the pension fund that provides survivor disability and age and service benefits for public school teachers and other school district employees on page three three five shall this shows the state contracts awarded to minority owned businesses and employment summary and publications. The next page three thirty six is the Department corporation summary of the system has to appropriation request only one section has a change level that's operations section the total off road budget fiscal twenty threes one point nine five billion this is request roughly the same amount for the next biennium the change levels let's one percent for each year the biennium about a hundred thousand. Smith this is funded by investment income employer contributions employee contributions. On page three thirty seven is the first request this is a teacher retirement system operations and this section provides for the administration of the system is supported by the teacher retirement trust fund. One page three thirty eight is the appropriation summary the total authorized for twenty three is two hundred forty three million three to seven three thousand three quests FOR twenty four is two hundred and forty four million that's less than one percent change the executor activation is for different amounts for two hundred forty three million nine hundred ninety four thousand and in fiscal year twenty five requests for two hundred forty four million hundred seventy six thousand and the executor commissions for slightly less two hundred forty four million sixty one thousand again his or less than one percent changes those changes levels begin with regular salaries line item was authorized in twenty three is four point seven million what's being requested by the agency twenty fourth five point two million that's a ten percent increase and the exact recommendations for slightly less five point one million that's an eight percent increase in fiscal year twenty five the request is for fifty five point two million this is a regular salaries that's again a ten percent increase and exact recommendations for slightly less five point one two five. personal services matching what was authorized in twenty three is one point five million requests by the agency twenty four as one point eight one point eighty seven that's a sixteen percent increase in twenty four the exact recommendation is one point eight zero one it's a fourteen percent increase is a little bit less if you're twenty five the request by the agency is one point eight eight seven and the exact recommendations for one point eight six a majority of those change levels are salary matching Justin's that were made in the current biennium to continue forward into the next biennium however the agency is also requesting an additional position and salad with with salary match the executive commission does not provide for the additional position were discussion with position will take place in the personal subcommittee in similar apers if you look at the table at the bottom retirement system operate differently than traditional agencies the system's assets are put into investments parties revenue for the system and funds are drawn down as needed to pay benefits refunds and system administrative expenses the look at these as more as paying accounts so you'll see a zero balance if any matches years expenses. The next item the last item is on page three thirty nine this is the teacher retirement cash a request in this section allows payments by direct deposit is supported by their cash fund on page three forty is the appropriation summary and there is no change level what was authorized twenty threes one point seven billion that's being requested for the new biennium and the second recommendation provides for that request. Anything to address road. I do not thank you okay Any questions for teacher retirement. Last call. If not have exact wrecked FOR teacher retirement. Okay let that second. Thank upon favor I. Exec brick passes thank you all for being here today thank you. Thank you Mr perish. Next up we have disability determination. Mr Arthur buddy a if you will. Amona. Who ever with you. Mr Laleh walls is going to. Give us a report. Few gentleman will introduce yourself. It It budget again when it's read its own. It is leave it on there. Ready to go authority at director social security disability and this is my finance director. Jeff Stearns glad to have you gentleman today in this wall if you recognize yourself and we're ready for your report thank you Mr chairman as low laws or if you're legislative research you will pull you back up just a little bit closer yes got static that's good I've. I'll write with filtering with to me with me to paid eighteen we're gonna talk about disability determination or Social Security Administration is agencies responsible for determining the eligibility of our Kansans for disability and other payments in accordance with special federal social security laws they also investigate suspected cases of fraud or abuse they have won appropriation of seventy one point eight million dollars that is one hundred percent federally funded and five hundred and ninety one authorized positions if you will turn the page to pages twenty and twenty one you'll see their analysis of their request an appropriation summary which is on page twenty one the requesting an increase in their operations appropriation to seventy six point one million dollars in fiscal year twenty four and seventy six point five million dollars in fiscal year twenty five those increases of four point five million and four point nine million respectively in these increases are for salary and matching adjustments made in the interim and for the continuation of for growth pulled positions that were approved by legislative counsel and executive recommendation provides for the agency's request. That's all. Thank you Mr pretty eighty you are the your accomplished there have any statement no status all right members I do have a question for you a representative Cavenaugh you're recognized thank you Mr chairman here to your right thank you for coming my question is going to be dealing on page number twenty one of our book and is dealing with your operating expenses you're asking to keep it for six point one million but your span was only three point two and the most historic you had is right at four million dollars why are we needing such a large amount over what our historic spend it's been. Well so the program is basically in crisis We submitted our as you know we have to submit a federal budget okay which we've done and they've accepted it ARKANSAURUS you know helps other states. we currently help New Mexico Louisiana. Or again in Texas. so we have ten thousand cases in backlog. That's the first time since I've been there that that's happened. We just can't hire enough people. Since the affordable Care Act although it's a wonderful thing for most of Kansans it's been a very difficult thing for people of our agents. Because the amount of evidence in the amount of work that they have to do is four and a half times greater than it was prior to the affordable Care Act so instead of having two hundred pages of evidence we now have three or four thousand pages of evidence when we are doing a claim. We can't keep these adjudicators because the jobs become too difficult so we are hiring and hiring and hiring but we're not having a lot of a lot higher because the job is so stressful. last year was the first time that we dropped. a four year degree. And we said look if we have people out there that don't have a four year degree and they can pass the same entry exam as somebody who does have a four year degree let's hyip and we did so we currently have a high we currently have a high. a class of fifty five we're going to hire a hundred and ten more next year and we have money in there to expand our space of the commerce building. and we have money for low salaries but so what I can tell you is. We're going to be growing. So the personnel expenses would be in the regular salaries in the match I'm talking about the operating expenses what's going to be increasing in the operating expenses with these addition of the people well building space for everyone okay okay so. That's a big expense for us. The supplies that we supply for them we have to buy cubicles we have to buy chairs we have to buy all kinds of things like that. Okay those of the capital outlay but you're talking about your rent is included in your operating expenses. Good to. Yes that's correct we just took on rented that commerce building in yeah I I would say chairs in your by five hundred shares you know a couple hundred Bucks it does add up quick follow Mister chair. So thank you for talking about the backlog in cases because from my constituents that's the most phone calls I get questions about is can you help me with my disability I have it of the ten thousand that's and backlog how many of those are our Kansans that are in backlog. Probably half of them okay. So the backlog is you know it's constituted by you know adjudicators supposed to do a hundred twenty or a hundred and thirty cases that that somebody they worked in at one time they end up doing for five hundred each year but because the cases I got more and more complicated Their case loads up to a hundred and seventy and when they get that far ahead and that many they become inefficient Arkansas headed up a group of in the nation okay of all the directors in the country to find out why is everybody leaving. We used to have a. Six percent attrition rate. Last year we had a twenty nine percent attrition rate. The nation had almost a forty percent attrition rate is the federal government is not paying enough money to these people to do the work in so it's really not the money you know we have a judicata making seventy five thousand dollars the only static Fadi but seventy five thousand dollars a lot of money to replace their Leding because they're so stressed. And so you know the biggest problem we have is that every time somebody leaves those hundred eighty nine cases that they have they get dumped into the backlog and then somebody else has to take over that case. We just don't have enough people doing it so we're telling the feds this report pointed out to them that the program is in trouble. Okay and there's a lot of things that Arkansaurus headed up this committee in the nation with the social security commission or a bunch of other things and they have we have formed they have formed a group called the rich recruitment and retention work group and they're starting to make some major changes but I don't think they're going to make enough changes to make a difference for us to take the stress off of the people who doing this work even the doctors you know at one time we had thirty doctors we have seventy doctors you know in the nation there are half a million cases in backlog. A hundred twenty thousand cases that awaiting justice to be reviewed by a social security Dr Arkansas are is in better shape than almost any state okay we think we can work out of the work we think we can work out of this backlog in the next eight months but it's going to take more people more space more resources so that's what what we told the feds of that what they're going to have to do they agreed with that they approved the budget. And so here we are have to have we're going to have approved the hopefully you will okay and the so I'm not sure you know it's New Mexico Louisiana Oregon and Texas that you're also working claims on do they pay us for that absolutely okay is that a percent funded and it's all in this and the other thing is the work force that does those cases do not interfere with Arkansas case okay those people are specifically hired to do work for other states this body agreed to do that a number of years ago so that we could create decent jobs for attendance it wasn't to expand government it was to create jobs an economic development deal and this body approved it and it's like two hundred and forty of our five hundred and sixty people that work just doing that but they're all paying Arkansas taxes they're all Arkansas students okay thank you. And miss Betty a the federal government did that number years ago because you are doing a good job is that correct that's right we would I'm one in the nation yes thank you Senator Hammer you're recognized. Thank you Mr just over here to for a good afternoon just a quick question of so much of the budget but as much as what you do are you in Lisle are you allow employees to work from home or they all on site employees. We have people working at home but it's on an incentive program we are not letting people work from home unless they have the best in the categories that they work in okay so we have if they produce at a ninety six quality bases above ninety six percent and if their case load is twenty five percent better than the average in the in the agency they can work if they can work from home but the quality has to be exceptional. Because we found that when we had people working from home during covid we had a twenty percent reduction in production. So we made it incentive program and it seems to be working pretty well forget the number cases coming through on disability claims have you seen a trend that impose that would show that COVID is having anything to do with the disability claims no matter of fact we've Senator we've actually seen a reduction in claims over the last several years but the amount of work it takes to do one claim is increased incredible okay and then and tell me if this is true or not I was I was told that till the feds a sign you wanted clears the federal level and then it gets a sign down to Arkansas to a case manager is that is that the way it works yes an Arkansas citizen applies to the federal government they determine whether the person is even eligible to apply many have they paid into the system if they haven't paid into the system then they'll look and see okay if they are eligible under SS I. Under either one of those things if their eligible we get the case out of a hundred cases that we get everybody says we deny everybody out of a hundred cases that we get we automatically allow thirty four the that's because they're that FCRA the make your re apply it on the second best by date we probably screwed up the first time or their condition got worse so we allow another five a six on recall so I to that original hundred is about forty people of thirty nine people that actually get all and then there are the rest of them appeal to a federal law judge. But until they get a case manager signed in Arkansas it's really odd your control because that's at the federal level so if we have an issue with somebody who maybe has filed and it hasn't even been assigned a case manager Arkansas we need to be deal with our federal delegation to see where that is is that accurate or not that's not accurate so when somebody files they'll file like if you're from not the rock you'll filing sure would bill it will determine if they're eligible if they will if they are they'll package that thing Senator was electronically and it's up to us to assign if we have a backlog like we have right now it may take us two or three months to assign instead of assigning it right away but we get it almost instantly from the if we're helping another state like Oregon you know they're already happy about Hines of the time we get that cases already after a year old and then if we have to honor an exam from a doctor in Oregon it takes another three or four months so that poor person you know is waiting almost a year to get a decision from us but in Arkansas okay it used to take us a hundred and. Five days to do a case is now taking us about a hundred and sixty eight days to do a case but is still less than the national average. And then with what you're asking for today that'll address all that are going toward it we hope we will get people to accept the jobs thank you. The representative Payton you're recognized thank you Mr I'm over here to your left also number one you just nearly answered my question there in that last answer I really I really appreciate the fact that Arkansas is able to facilitate this for more than our share of the applicant's and obviously that's because somebody in Washington thought you were doing a great job my concern is anytime you have a backlog and and you have more to do then you can get done. you don't wanna have to redo anything so. You are entering it sounds like about thirty five percent of the applications get through the first time and then another five or six percent. get approved that should have been approved the first time but we find that we made a mistake or something and my reading that last answer correctly. Yes so that you know people have two bites of the apple if if the if they're denied by us there tonight for a reason okay and so up there because it's very difficult to get on the program you know someone missing a leg you think they're disabled but they're not disabled under the law under social security law so most people would have so when we deny somebody they have sixty days to apply half of the ones that we do not go away they don't even reply because they said well was probably worth a try then the then the others do apply of those people we allow ten to fifteen percent of them because by then their cases even got worse they have provided more evidence and sometimes we make a mistake but it goes to a different adjudicator and goes to a different doctor of the second time that comes or. What's we divide the second time if we do they can appeal to a federal law to. Okay I just wanna make sure I have the percentages right so hundred people apply fifty percent get are earned they get kicked out or denied and they never come back so all of the other fifty percent you're saying about. Well that's not what I said okay. This is not a statistic administer statistic but it's it was not something that we're expected to do which is what it is if a hundred people apply right now we've been allowing about thirty five of those people so that so that means that sixty five of them were denied of those sixty five that would have half of them just go away they don't or they don't take advantage to re apply so of the half okay that re apply which is another thirty two of thirty three we allow maybe five or six of that ten to fifteen percent of so all of the original one hundred we've got about forty one of the mall. And then half of those go away in at least fifteen of those fifteen they'll apply to a federal law judge and he'll put fifty percent of them all so there's another seven that get all. So I have the original hundred you've talking about forty eight people that receipt that are going to get on the disability for. Okay I think we got there thank you thank you Mr chair. Thank you representative with you're recognized. Thank you Mr chairman Michael I have a question on the Page twenty one. On the funding sources then there's over seventy six million. Dollars and it's got federal that's federal revenue did we receive that total seventy six million we've we've dryer down as we need okay so so because my question was. There's a twenty million dollar difference between the drawdown than them out so we didn't get that twenty extra twenty million code is not showing up in your fund balance is that correct yeah what every time like every two weeks you know they send money into the treasury we dryer down from there and then we ask for more money that we dryer down from there so would you use we never have a deficit it's only only twice okay has there been a situation where the government didn't find would you go get the total amount seventy six million not roll it down as you that's right okay Mr chairman for quick questions on personnel. You've got five hundred and ninety five positions in your request okay. You say you need many more how many more people do you need to take care of that backlog and will the eighty seven vacancies that you got if you could fill would that take care of your needs to that absolutely well so so really and truly the five ninety five number is is the. not all those positions or what you know would be some some there was some of you would have to happen because some of them would be adjudicator Somer Dr summer clerical so the main worker in our agencies in the giudicato we don't have eighty positions of those available though so we will have many okay how many do you think that your name above the if you've got five sixty five now you've got eighty seven vacancies how many more above the eighty seven to you thank you name or based on the attrition he talked about and well two years we've hired. Last year and I realize your tradition and all that I see two problems one you can get people to U. K. pay enough and three real stories are they're stressed out but how many do you need to try to do the job I'm I think the the eighty seven will do the job okay so if you could fill those positions we can fill those positions you know every time we open it up you know last time we opened it up we usually have in the old days we have four hundred people apply for the job four hundred one okay and then this last time we had like sixty we will give away a hundred positions. So that was no good and then we ask them to take a test four year college degree take a test. Thirty percent of the pass the test. So then we said let's open it up to everybody and then we we opened it up to everybody sixty percent of the people pass the test in many of those didn't have college degrees so but then they have to go through this. Rediculous background check with the federal government and then we lose I mean they check their bankruptcies of the check their finances they checked. College loans they check everything is called HSP twelve it's a presidential directive. It takes. Ten to twelve weeks for them to get back to us with the answer whether this person was cleared and by then they've already found another job and said goodbye to us so you know there are definitely some problems at SSA has that we are. Where the member making of the federal the fed at that that we're working that to solve these problems and I think we're making some headway one more question is the seventy six million dollar fund that you draw the others you needed is that adequate to take care of the backlog that your face yes if they're putting the burden on is that if they think we're that good which that's pleasing I mean they do and I can tell you this represented in the years that I've been there we have never been denied anything we Raskin federal government because I think not not me but my people doing it credibly good job thank you Mr chairman thank you Sir. Thank you. Not seeing a more questions I have exact wrecked. A great motion the second second all in favor aye exec Rick passes what was your name once again. Yes. Jeff Stearns Jeff phone get Stearns yes Sir Richard you Maynard dating so you up some at knowledge that nurture you there'd be a generation want me out today I'm going to go take a rest a day off I I I didn't find anything based on your own the thank you miss walls for your report. And good evening. If and we have a one more. Going to give a analyst Jennifer route going to give the report and Mr Greg parish fuel come on up Evers with you. General. Your self. Jennifer I come with the bureau of legislative research this is the last presentation today so we'll try to make it as painless as possible. Great courage to executive director Arkansas public defender commission. Tracy Rainey CFO thank you for being here miss road you're recognized thank you Mr we're gonna start in manual one and turned Page two eighty seven this is the department appropriation summary. The public defender commission was created to address a variety of concerns relating to the representation of indigent criminal defendants in Arkansas. The agency has sixty preparations. The agency request is about forty seven million each year of the biennium and the executive recommendation is about forty six point five million each year of the biennium. The executive recommendation provides for the agency requests with the exception of various personnel changes. Okay we're gonna turn to page two eighty nine this is gonna be our first appropriations the ombudsman program. This is funded by transferred from DYS this appropriation was created to ensure that children and DYS is custody are receiving necessary services designed to keep them safe both mentally and physically. The agency and executive are recommending about seventy seven thousand each year of the biennium. Matching is above the authorized for FY twenty three and this is due to adjustments made during the previous biennium that needs to continue. Okay second appropriations on page two ninety one. This is the public defender's operations. I did from State Central Services Fund. The agency is requesting about three point six million for each year of the biennium the executive recommendation provides for this request with the exceptions that I mentioned before. And you can see the change levels in regular salaries in matching this is due to the restoration of growth will positions and adjustments made during the interim that the agency an executive requesting continue. Still turn to page two ninety three this is the public defender trial office appropriation. It is funded from state Central Services Fund. Also stated ministration of justice pine belt on fees and user attorney fees. The agency is requesting about twenty nine million each year of the biennium and the executive recommendation provides for this request with the exceptions that are made that I mentioned before the change levels that you'll see here in regular salaries and matching. And this is due to the restoration of a growth pole position and adjustments made during the previous biennium that does need to continue. Page two ninety five. This is a preparation that we set up last session. They received one million dollars from the restricted reserve fund and and March twenty twenty two your meeting. This appropriations for the forty five extra help positions this is to help with the backlog of the cases that they have right now due to covid the agency request is for four point five million and the executive recommendation provides for this request. On Page two ninety seven surface appropriation. This is a federal A. R. P. recommendation. This was added during the last session as well. You'll see this also when we get to earn auditor. This agency requesting that executive recommendation or for four point five million it is I'm funded. It is a dish it's for the forty five additional and help ensure help positions and it's for the backlog of cases. This has been set up three special language thirty FNA as to how to disperse the Spartans. Okay and the last. In final position preparation is on page two ninety nine this is Commission for parent council. It is amended from state Central Services. The agency is requesting about four point seven million for each year of the biennium. The executive recommendation provides for this request. Salary and matching above the authorized for FY twenty three and this is due to adjustments made during the previous biennium that needs to continue. The agency is also requesting a reallocation of thirty thousand dollars from the extra help one to refunds and reimbursements for costs associated with contract reimbursement Mister chair that concludes my presentation. Thank you Mr. Rectifier's you have a statement for the questions thank you senator off. Good question representative Cavenaugh you're recognized thank you Mr chairman here to the right mine's going to be dealing with what we refer to this page to ninety five which is going to be the Cashin treasury. Any age so this was a one time transfer funds from the restricted reserve funds for one million dollars. And you're asking to keep the four point five million are you expecting to get that four point five million. Firm restricted reserve no ma'am of what what has happened is the one million James. During the fiscal. And that money is if it's not expired with the next two weeks it will be within the next four weeks during that time period while you're on the fiscal Senator Tucker ran an appropriation bills and fund it. Since that time we have applied and received along with the prosecutors or performs for the four point five million yes my understanding speak with miss rock that that part is is. This is basically going to go away this appropriation because this funding is coming from our proposed. Okay can I thank you for the exploration question for the staff. Kevin I have a question so on this four point five which was I guess from the restricted reserve funds it showing currently that they have like seven hundred thousand approximately left in that money that came but they got the four point five is coming from our pup. And he's thinking this appropriation is going away. But this procreation is not going to go away unless we make it go away correct. Yeah you're you're absolutely correct okay then so if I could make the motion to drop it to the million so that they can continue to spend this money down that you had is that not correct because I need the appropriation to be able to spend what they still haven't reserve. My understanding is they're going to spend it the remainder of this year from his testimony just now so they won't need it at all so we could just delete this one and they'd still have their four point five Jennifer's I know we want to delete the the next one behind it the next one the next one is going to be the arpa it's on page was it on two ninety seven ninety seven that's the one that they need for the art of funds correct date actually they're not going to need it because we already have special language set up through the FNA okay and. It's not going to be needed the only the only they have a way to do it. Neither one of these are actually needed any longer. Okay so I'll have that motion at the proper time. Thank you thank you. Before we go to the other question is there anything on that. The gentleman need to address. just just for informational purposes Senator a in speaking with Bob manners prosecutor coordinator had not been working hand in hand on this I think the prosecutors says as Jennifer said all it will be over here on the same issue prosecutors money is kind of basically like ours there moneys expiring as well the one million dollar appropriation and so. Just that's just for informational purposes in case anybody has any future questions okay. Representive Hester you're recognized treatment center yes all you know all all those extra positions trying to get caught up parent how how's that going are we close to being caught a. We've had remarkable success with those positions. We're going to call up no we're not and I'm just being honest with you I think. As with this thirty five years as an attorney. I don't think we come out of this for five to seven years because the crime rate. just as an example. I reached out to you'll see last week we have already had more capital murder murder filings. This year than we did all of last year we still got two and a half months ago. is worse one water now and prosecutors to. Is this going away anytime soon it's not I just missed us just being honest with you in my opinion. To keep those extra positions that's the of the four point five million that we receive through a R. P. fund yeah at twelve or another year please and that's that will basically we think prosecutors myself last for the next twelve months because that one million would receive was basically for the last. Three months of the fiscal year how many how many positions is that for you Bala averaged out to be roughly forty of the bill calls for forty five but we want to be careful not to run out mmhm right now we have twenty six of those positions bill would constantly kept them advertised. I think prosecutors have a similar number we have lost Eight. That have left us and we try to replace those but currently as of today that and we have twenty six of those positions filled statewide. Thank you. Representative Wooten here recognized yeah I want to follow up on Senator Hester questions of the of the forty five that have been approved. You feel forty of of is that what you're saying or twenty six a we we feel twenty six we have talked before what is that in addition to the twelve that are vacant that you're showing on the report I've got a. Report of god says you got twelve a concealed. S. the twenty sixth of the other. Twenty in addition to that yes because it's in that four point five million yes Sir and and the the twelve that that you are looking at a president Senator the representative would. in the last two weeks of lost forty five attorneys alone. And it's. It's impossible to feel right now it's because of that was the case load for those that you have now how many how many cases of the care are full time attorneys yes anywhere depending upon where you're located at in the state. I would say a minimum three hundred some for free five K. and those are felonies but then when and as I said before when you factor in. You get outside a little rock you have districts that are four five and six counties. And you've got a factor in the travel as well. And. But they're still caring three four hundred active felony cases as well. One one more follow up. Of those of those three three if it is this a lot has a lot of this come about because of cold within the the the dysfunctional court system because it couldn't work it didn't work is is that cat created about log for you all been able to the giudicato cases. Yes about this this problem existed before covid okay exhaust to this six minute but we hit with all ended in with COVID what we're also doing with increased crime rate this completely totally L. A. as. That's correct and when you add Covidien because right now is the courts of really kicked up in the last six months. Thank you Mr chairman thank you Mr yes Sir. Representative Cavenaugh if you're recognized. Thank you Mr I have a motion to exact to accept executive wreck with the exception to change the appropriation on page two ninety five to one million dollars and to delete the appropriation on page two ninety seven. Okay is there any discussion on the motion. Thereby understand a motion to have second second second home favor I I posed. Exec wrecked who is amended passes. For Martin close to. Okay members that wraps up for today we will be here at nine o'clock in the morning or the morning last and then the have brought legislative audit tomorrow afternoon. Thank you member state.