ALC-JBC Budget Hearings

Okay members call the Arkansas Legislative Council joint budget committee budget hearing still order. We have the game in fishing and referred to agenda we have is audit findings if the audit will come to the table. If you will recognize your. Sailfin. President. The findings members are in on the. next to the last page on your printed. Sheets. What what the what what got. You're recognized fuel tell us who you are who you with thank you Mr chair my name is Tammy Shaw I'm with legislative audit it the agency self reported the following thefts of state property which were included in our report for the year ended June thirty twenty twenty. A twenty horse power Yamaha outboard motor with the cost of thirty two hundred dollars was stolen from an Arkansas game and fish commission trout vote. While located at a repair shop in Baxter County. Various items valued at approximately five thousand dollars were stolen from a storage unit into wit Mister chair this concludes my presentations of the findings for the agency. Thank you members you have any questions on audit findings. Representive Springer you're recognized. Good morning thank you Mr chair I would just like to know the schedule as to how you all report the findings. Given that I had I read it the head of your report that is for the period ending June thirty of twenty twenty however you have a. Finding here dated January the eleventh twenty twenty one so could you explain to me the process system. We had an how you all do your reporting of audit findings yes it the agency will notify DFA and legislative audit of anything else and if we have that notification while we're on site doing an audit we include that in our report. Thank you thank you Mr. And members after the audit findings we will be in the colored game and fish Budget manuals not not your big book anybody's confused on it Senator just feel you're recognized yes this is your and and forgive me if this is an S. R. any repeat findings here are these initial findings. The thefts of property are always initial findings who so there's nothing else that is a repeat final that's correct all right thank you thank you Mr. Okay seeing no. More questions thank you for your audit report you're excused. Again members of the the game and fish binder with the. commented on special language yesterday the pretty picture on the front the young man in the physician the proud of first we're going to have staff. come in that will be held on that. And if our game and fish presenters would like come on up you said at this time that. The things up a little bit. When you all get seated if you will just go ahead and recognize yourself for the record and as we get started. Had a nightmare of Legislative Research. A good morning I'm Austin do with the Director of the Arkansas game and fish commission. Good morning in which you might see if I. And if you need to pull up my little bit closer to you where you'll be able to be heard at the. This that you're recognized to present thank you Mr chair the game and fish commission's budget request can be found in the lovely manual. Because the commission is a constitutional agency they have their own separate budget manual and will not have an executive recommendation. Their budget requests can be found on page two. The Arkansas game and fish commission is responsible for the control management restoration conservation and regulation of bird fish game and wildlife sources in the state. The department's appropriations summary can be found on pages seven and eight in your manual. The commission is requesting a comprehensive license restructuring and fiscal year twenty five according to the commission revenue increases from the license fee restructuring will have an estimated increase of revenue and the amount of fifteen million dollars annually. The Department appropriation summary on page seven includes this change. While the summary on page eight reflects the commission's budget without the licensing fee change. Because. The commission's budget the line items in the appropriation section remained unchanged with or without the licensing fee structures so the appropriation section on page seven and eight is exactly the same the only difference is in the funding section. The use of special revenues. Is different. There are no changes of as an appropriation due to this restructuring. The Commission has a total of five appropriations the agency request is about a hundred and seventy three million dollars in fiscal year twenty four and a hundred and seventy five million in fiscal year twenty five. Funding for the commission consists of existing fund balances conservation tax federal revenue and Special Revenue. The first appropriation is the operations appropriation and can be found on pages twelve and thirteen. As previously discussed the summary on page twelve reflects the commission's budget with the licensing fee restructure and on page thirteen as their budget. Without the change. Again the appropriate Asian levels remain the same the only difference is the special revenue funding at the bottom of the page. The commission is requesting around a hundred and forty eight million dollars an appropriation for fiscal year twenty four and a hundred and fifty for fiscal year twenty five. Salary amount to just mints made in the current biennium are requested to continue into the next biennium. All other increases and regular salary extra help and personal services matching due to the commission's personnel related requests. On the operating expenses line item the commission is requesting around ten million dollars in fiscal year twenty four and around eleven million dollars in fiscal year twenty five over the fiscal year twenty three authorized amount. This includes. A two million dollar reallocation from the professional fees line item for both years of the biennium. On the construction line item the commission is requesting a reallocation of six million dollars. To the new lead request in marine fuel tax program appropriation that will be discussed later. On the grants in a line item the commission is requesting three point seven five million dollars in fiscal year twenty four and four point seven five million dollars in fiscal year twenty five over fiscal year twenty three authorized. In anticipation of Congress's passage of the recovering America's wildlife act. Finally on the capital outlay a line item the commission is asking for additional preparation around seven million dollars over fiscal year twenty three authorized each year the biennium to provide for various equipment and land purchases and improvements. The second appropriation is the gas lease revenue appropriation and can be found on page fifteen. From here on out there will just be one appropriation. This appropriation is funded by gas lease revenues as well as fund balances and is used as needed for natural disaster response gas lease grants and other one time needs of the Commission. The commission is requesting five million dollars each year the biennium which is one million dollars over fiscal year twenty three authorized. According to the commission the five hundred thousand dollar increase each year an operating expenses will be used to enhance habitat initiative species management and enforcement activities the five hundred dollar five hundred thousand dollar increase in capital outlay is for equipment and land purchases the remaining line items have no change levels. Next appropriation is the conservation partners program grants appropriation and can be found on page seventeen. The Commission utilizes this appropriation to pass donation dollars collected on behalf of the Arkansas hunters feeding hungry organization. The commission is requesting a hundred and fifty thousand dollars each year of the biennium which is a continuation of the fiscal year twenty three authorized. Next appropriation is the Black River settlement appropriation and can be found on page nineteen. This appropriation is funded by Black River judgement dollars and can be used exclusively to mitigate the hardwood timber destruction and the Black River wildlife management area the commission is requesting. Thirteen point two five million dollars which is a continuation of the fiscal year twenty three authorized. The fifth and final appropriation is the marine fuel tax appropriation and can be found on page twenty one. This is a new appropriation section however this is not a new program. The marine fuel tax program was previously housed in the commission's operations appropriation and they're requesting it be moved out from operations to its own separate appropriations action. This program is funded by inter agency transferred from the Arkansas department of transportation and is used to increase access to waterways across the state. The commission is requesting a transfer of six million dollars an appropriation from their operations appropriation to this fun center and that concludes my presentation Mr. Thank you Mr night and the. With. Director moved his or anything you want to add before we go to questions. No Sir just and that we're grateful to be here today proud proud proud of this budget and what we look for your questions thanks Sir first of representative Cavenaugh you're recognized. Thank you Mr chairman for to write I just have a real quick question on the Black River settlement. If you could explain what that Black River settlement is how much it was and what is actually to be used for. A I can never give in excess of an explanation ma'am whether that's quicker not I'll do my best so the Arkansas with the Arkansas game and fish commission we have several Greentree reservoirs these wildlife management areas when we artificially hold water for two reasons one to provide winning water file habitat and to to provide public duck hunting opportunity it was these wildlife management areas that really made Arkansas the the national sensation of water fell the kind that it is one of those Greentree reservoirs is at Dave Donaldson Black River wildlife management area in northeast Arkansas and all of our dreams you're as boards especially that one they're really facing the same fundamental challenge that the forest health there's in rapid decline and that that is attributable to the aging obsolete infrastructure that we have there but also just the the completely different letter will weather patterns that we had with that infrastructure was put in so if you go back into the in in in the late nineties early two thousands of we saw some rapid rapid die off in our red oaks at at Dave Donaldson we were able to we were able to correlate that with some irregular operations of clear water leaking down in Missouri which is upstream of that wildlife management area the Arkansas game and fish sued the army corps of engineers for violating to water control plan and in two thousand twelve we receive roughly a thirteen million dollar judgment after a unanimous decision by the United States Supreme Court so we receive that money in in two thousand twelve and if you're looking at the fund balance saying with a fund that fund balance is very similar to what shall receive ten. In years ago that's one hundred percent accurate and the reason for that is our ability to get work done at at Dave Donaldson is directly connected to the weather and to the water levels and even since two thousand twelve we have not seen very large work windows where we've been able to actually get work done there I brought some numbers on this question and of since two thousand twelve we've been able to stand nine hundred twenty seven thousand dollars for mulching and for transgress Russian over a hundred fifty four of hydraulic and yeah hi a drug at a four hundred thousand dollars for topographic surveys and then there were three fiscal years that seventeen twenty and twenty one we are unable to do any better a work whatsoever because the water from the Black River and from Clearwater was so hot of now I will say that these are getting much better in in in in the fall we had our first meeting with the army corps of engineers we've had for years on on Black River we're very proud of that and we're working very very hard with our congressional delegation right now to improve that relationship and then we also are almost finished with design engineering phase to renovate that wildlife management area and we expect to begin work on the ground sometime in county or twenty three so in a year from now we expect that black refund to be much smaller okay thank you in Vaught Mr. And with working with the core on Black River you're you're not just working on that wildlife management area but you're actually working on Black River itself because that is an issue up there and in my world it's a big issue. Yes ma'am we're yes we are working with them both on this project because the health of the wildlife management area is directly connected to Clearwater but we're also working with them on a much larger Black River project trying to partner them in a long term study to help understand the hydrology of northeast Arkansas around the Black River St Francis okay thank you. Thank you senator hill you're recognized. What. Are you. Thank you over directly with. I know we we we've discussed in the heard heard people talking about fee increases what are you looking at as far as the increases for in state and out of state both along with how much you projecting the license fee increase to to raise for your department. Yes Sir thank you for the question of we we have identified a revenue target of of roughly fifteen million dollars we expect that break down to beat twelve million on on the resident side three million on the nonresident side but the exact license structure we have not finalized that yet And. We know what the revenue need is but we're still work well working through how that falls out amongst the current products that that we have we're very deliberate in our budget manuals do not call it just a license fee increase but a total restructure of of the license that we have the model that we're considering that will provide this body with as soon as its final will not only greatly simplify and consolidate things for the for the user but it will be a fee structure built around consumption and give the agency much better data to serve Arkansas with. So is is this money that that you're referring to is it going to be used for capital improvements are what are you looking to use an app or service of so and I are both your manual we we get into the US but of the fifty million dollars is built around Three things. The first of which I think is an important starting point but it's not the most important point is the loss of buying power we've had with revenue on the licensee's out if you look at of our total revenue picture it's it's very much a three legged stool it's a combination of conservation sales tax federal aid in the form of the Robinson and then license revenue and if you you look at the last time that we increase license fees On the fishing side it was nineteen eighty four I was not alive and on the hunting side it it it was in the mid nineties of. In that leg of that stool keeps going shorter for and. The conservation sales tax we're immensely grateful for that but with fluctuations in the economy that three like it still needs to be solid and having three solid legs helps us make long long long term decisions not hoping to see what the economy does the second thing that it is built around is kind of like what you said senator capital projects we can look at our natural resources now and Ann understand that that that there is wildly different from where we were in nineteen ninety six our infrastructure needs are very well known And you can look at even like L. Dale in northwest Arkansas. I think that's a really good example of some of the projects that more revenue stability would bring the Arkansas game and fish the last on this agency was at the stable we spent a million dollars at like AM until to fix a lake there and we knew we needed to spend three and we spent one because that's what we felt like we could afford and it lasted one major rain event this year and completely destroyed the damn again. So whether they're greenshoe reservoirs weather wildlife management areas whether fish hatcheries whether their lakes the infrastructure and the capital improvement so we have to undertake of our very strong. And the third and and the last thing that this license fee increase is really built around that I believe is the most important is what our cans as one from the Arkansas game discretion we I've been in the shop for fifteen months now was very familiar with the Arkansas game and fish as a life long constituent of but the more and more our cans and so we have the opportunity to talk to about a fee increase and what they want from the Arkansas outdoors is more more hunting opportunity they want more access in underserved areas or more fishing opportunity more recreational shooting for archery for pistol for. For rifle and this fifteen fifty million dollar target is designed to do those three things to to give us more stability to make long term planning even in addition to the conservation sales tax the ability in the short term to focus on capital projects and in the longer term grow into what Arkansans want from the Arkansas outdoors. Follow follow Mr. As as time goes on and things change you see more and more people who are not involved in hunting and fishing using all facilities. How we want to try to raise money from those people using your facilities and from just hunters and fishermen. Yeah well. You eat you bring up an important point that are hunting and fishing license products If you if you go back before the pandemic of we're we're about level of with where we were where we were before the pandemic we did see an increase with the pandemic which we're very grateful for but even just two years down the road we're already back to pre pandemic levels ET you take an even longer view at that hunting license and fishing license sales are are are down about fifteen to twenty percent it and this is by nature of the fact if you're if you're people are getting outside and so. We plan to address that one through the the fact we have a wonderful education division that reaches about million our Kansans or visitors every single year of two we're trying to make our wildlife management areas more inclusive more inviting to people other than just hunters or anglers the my gravel bike riders thing about paddlers the thing about hikers and birdwatchers so at as we try to make some of our infrastructure and our footprint and our wildlife minute of wildlife management areas more accommodating and inviting and multi use focus of we're considering a product that will that would let people have access to those wildlife management areas and also hopes were conservation. Thank you a representative Dotson you're recognized. Thank you Mr chair right. on page twelve I guess is your general operations budget here Just had a couple questions on. Your regular salaries line item the very top there And twenty nine million last year but you're asking for thirty nine million it looks like you're only looking to increase your head count by twenty two people is that you anticipate spending the extra ten million dollars a year. On that line item. yes so we won't be spending ten million on that increasing number people that number and reflects the actual expenditures for two thousand and twenty two F. R. twenty two it is not based around a hundred or six hundred twelve positions that's a snapshot of one moment in time and in actuality are is our head count last year was much lower than that and we we suffered in recruitment and retention last year as many other state agencies did as well so that number and spending twenty nine million is not a direct correlation to six hundred and twelve. So so you're not planning on increasing the actual spending closer to thirty nine million yes Sir we do believe that the actual spend will be closed at thirty nine million dollar number okay for that for this year the upcoming year and then if you drop down to the operating expenses. that is also. The substantial increase ten million dollar you. You over last year's budget and of course it's. You know. Seventeen million or so over your spend what's the purpose for that. Yes Sir Sir are spend last year it was stunted by the pandemic not all of our educational facilities were open are spend FOR FY twenty two and twenty one was lower than the nearly ten years prior on operations so we do anticipate our spend now that we're fully operational to to go back to a historic level we also on top of that and we have the request outlined above which includes an unfunded appropriation in the event that raw was passed and then there are requests that are not outlined items that we did look internally first to make sure that we covered within our existing appropriation so in our budget manual you've heard us mention the recreational shooting Division you don't see and to appropriation request for that in this budget manual that's because that's one of the items that we've looked at absorbing internally that's five hundred to six hundred thousand dollars each year that we've looked at we have some additional infrastructure security needs that we have also absorb within that existing appropriation. I mean be able to guess answer this but conference and travel expenses is that also your anticipating that to to go up on our triple this year based off of last year was slower yes Sir we had a lot of virtual conferences as a result of the pandemic and then on page fifteen. Say the same some question on operating expense line item that tops there Spend seventy thousand last year but you're asking for half million dollar increase over. What was more than enough of preparation obviously the last year your budget three fifty on eight hundred fifty thousand absolutely N. F. R. twenty two those at expenditures reflected just the maintenance associated with those that will rights mineral rights going forward we want to make sure that we regain a fund balance that's appropriate for natural disaster response which is our primary intention with this fun center but also to utilize the increased revenue we have seen their eyes mineral rights have gone up to meet some of the demands we've seen around equipment needs and if a structure projects so it's S. looking as part of our overall look at how we're expanding utilizing our revenues to make sure that we are also utilizing the revenues we have available to us here so you you do anticipate spending. More than that three fifteen in this year. The next year a yes so we're going to at the time to answer okay and then finally on page nineteen. Black River settlement again your actual spend last year was two hundred sixty eight thousand. You're asking for thirteen million. Always say yes of the settlement that. If you can spend more of that to to to fix the problem that that would. Probably good but what would you anticipate your actual spending in the next year would be and that that's. Sir in total that's. At four thirty five to forty five million dollar project and it'll take. The minimum for four to five years to complete and like I said in response to representative Cavenaugh we've been through the force health assessment phase of that project we've completed the hydrology phase of it and we're now in the design and engineering phase of and we intend to break ground on it in county or twenty three so if all that's not gone in a year from now a lot of a little bit okay thank you. Thank you. Senator Elliot you're recognized. Thank you Mr chair for the the staff that you're looking at hiring are replacing or that ever I guess what what kind of positions are those generally. We have a little bit everything ma'am we have a Hendren a law enforcement officers we have and an education division with nature centers and you know educational outreach programs throughout the entire state we have one for biologists to that are professional conservationists really the wildlife biologists or fisheries biologist and and then we also have like any other agency a a lot of wonderful support and and service minded professionals not to be clear these are I'm talking about the people you are asking to hire that you gonna be hard looking at hiring somebody in all those areas are there certain ones that you need to replace a higher more than others right yeah I with. With adding a recreational shooting division and adding a a private lands Division You take those two divisions putting together also look at the amount of habitat projects we intend to undertake in the next five years and also in this biennium. We we badly need more more biologist of when I began this job last year we had twenty five law enforcement agencies we were very proud to say that one of the largest classes we we've ever had of fifteen cadets this year happy to see them graduate of last week so if you ask me it a year ago I would go to law enforcement was number one the that that we have it now looking forward towards the future towards the habitat projects we intend to undertake in addition to the two new divisions it is it is definitely side to stand biologist how do thank you for that how do we measure up with that the private sector in attracting eggs as for example scientists biologist the folks that kind of cabin category. We. More often than not people going to work this agency because a lot of Arkansas and they love the state that's That's a wonderful thing I also don't think it's a very smart way to. To rely on filling some of your most important jobs into the agency so the short answer to your question is we don't stack up very well okay all right. Well thank you thank you Mr chair. The representative Springer you're recognized. Good morning thank you Mr chair of Senator Elliot at ask the questions that I was gonna **** however I would like to know for those positions are located across the state you spoke of biologists and scientists so could you elaborate on or would you feel those positions and or would they be located. We can provide you a list of the regions throughout the state that that we intend to expand on of. Just off the top of my head the the heaviest motion to have is the largest increases will right now probably the south Arkansas Southwest Arkansas and East Arkansas That's not to say the other parts of the state don't matter to us but just looking on on where the most challenged habitat is and where we feel like we're falling short the most is generally those parts of of the state that we're going to have to have to prioritize it rather than later. To support. Senator Hammer you're recognized. Thank you Mr good morning over here a couple quick questions hopefully on the land purchasing that you're looking at doing what data do you use to drive the decision as to whether or not you buy it or not based on the comment you just made represented the Springer. So there's a few things we consider Senator of. The first requirement is. No additional ongoing infrastructure costs. That's the first one of the second criteria that we use is does that currently a joint of another or wildlife management area or is that what we call an end holding and in holding on I on one of our wildlife management areas is if you've got. A ten thousand acre wildlife management area but in the middle there's a three hundred acre piece of private land that's not part of the wildlife engineer we would very much be prioritized that in holding that kind of doughnut hole and try to really emphasize contagious wildlife management areas and and then the third thing is is where where from the natural resources side is it in the state we have conservation opportunity areas throughout the state that the help us make natural resources decision where's the habitat most challenge where will it be and join the most by the public so those those three things put together is really how we arrive at land acquisition do you feel that it would be or do you ever discuss possibly putting the hold button on purchasing land so that you could take care of your infrastructure needs especially given the fact that maybe or maybe not your license fees will increase and the money for the purchase of the land is that coming out of federal revenues or is that coming out of state revenues. And so and I'll answer the last question first our land acquisitions are always. John Payton Roberts and dollars so those are federal dollars that they require a twenty five percent Max so it's always a a combination of both federal and state and the way that we did two of our land acquisitions and and calendar year twenty one and twenty two correctly through partners so it did come at a minimal cost to the to the taxpayer of to your first question about whether we need to put a hold on land acquisition until we get through some of our infrastructure challenges We believe that from a resource perspective the answer is he. Yes mostly up we're not going out and purchasing ten fifteen twenty five million dollar wildlife management areas to create something totally new we would love for there to be more public access in the state and maybe pursue that kind of thing one day but the demand for public access and for high for a high quality hunting and fishing opportunity all for the state we we believe that that demands way too high for us to just turn it off completely so it if there's ways that we can do it at in a way that does not undercut what we're trying to do on the infrastructure side in a way that does not undercut the progress that we're trying to make with capital projects and in a way that doesn't add to the on going infrastructure workloads we believe that's a better way to do it right and then the last question Bill Page seven and eight on the manual as I look at the numbers I see no movement in the numbers and to get over to twenty four twenty five. And. The numbers that change when I compare including license fees and then without license fees is gonna be a special revenue total funding. Excess appropriation but the bottom numbers all lined up to be the same. Are you Sir what you're requesting just simply wanting to rearrange your appropriation. And rearrange the numbers so you can put him to different needs within your budget because at the end of the day I see the numbers don't move from with out license fees to including license fees and can you help me understand that please. Yes Sir so we are requesting that the appropriation be granted is access are unfunded appropriation in the event that the licensee is not approved. So the number that you'll see changing on page eight and the appropriate corrects the preparation of questions not change on page eight that access funding or appropriation so in the difference would be in at. Two thousand four twenty five the excess appropriation request goes up by fifteen million to sixty six million. Okay thank you Mr welcome back. Then the C. sixty two that represent Fortner. You're recognized. Thank you Mr chairman. I'm set in the representative makes sick today. Thank you for coming not director I have the two questions will comment one thank you for the wanting to simplify the licensing process it does get complicated on the docks on a busy day. And the other question could you give us an approximate dollar amount for the increase in the residence fishing a licensee nothing that I know it's a work in progress but just an approximate fee increase what would be. Sir I'm really not in a place where it where I mean we. Yeah it's ten dollars and fifty cents right now. If we did nothing but adjusted for inflation going back to nineteen eighty four it would be triple that. I can say that we're not the we're not gonna do that you know what when I answered senator hatch senator hills question I said that the loss in buying power we've had through our licenses is important but it's not the most. Important thing or what I should have said them but but will say now is that I think we should we should be proud of the fact that we have that that we have cheap licenses I wish you we should be proud that we provide an immense value to our Kansans to come to your neck of the woods and have world class trout fish that some that we though we feel proud of but we have to we have to manage that up over time and away that helps us maintain the kind of legacy the that you're part of Arkansas as of so I can tell you that we're not that we're not gonna triple what word or got a look back to nineteen eighty four and say this is you know the words where it's gonna pick a CPR so it it will not be anything that extreme a total revenue target for the nonresident and resident side of roughly fifteen million dollars but we will provide the specific pricing information once we have answer okay and I approved I appreciate what you're trying to do I I I truly do but we will probably need that number before this body will hit certain yeah okay thank you. And director I'm I'm just guessing I haven't heard it in. Discussion the last session are today is there. The study for the surrounding states or maybe in the southeast if you are looking at with that yes Sir and it is similar I mean I know. I was looking at this morning actually thinking about this conversation and I really really really good relationships with the directors and taxes in Missouri and and and Alabama we've been talking a lot about their budgets their license fee structure and we can certainly provide that compares thank you and next up and I if you haven't caught on alternating House and Senate Senator just feel you are recognized. Yes thank you Mr chair of. Mr both. In your opening remarks you wanted us to know you were born before nineteen eighty four. Could you tell me what you thought that was relevant. I'm sorry if I offended anybody this morning of. I think it's a I think it's important that the director of it's it's telling it's not dispositive. Hi I want to reiterate that is telling we're not dispositive is telling. That the last time this agency increase in fees. Was before the director of the agency was alive. Could you tell me the the total number of moving right along could you please tell me the number of individuals who are and who are employed by the agency. Number and our budget mental six hundred and twenty six What let me tell you why I ask because. Whether you were born before nineteen eighty four after you still continue to have an abysmal record of hiring minorities. And I need to know what you anticipate doing sure to change that because you're at less than seven percent. And I find it particularly troubling because there are a lot of folks. Who are women what minorities who are disabled veterans who would benefit from being hired by you and so I'm wondering what is your plan to help increase those numbers yes ma'am of. Our new strategic plan gonna say tomorrow doing better in this area is literally on on the first page. It is something that I that I am immensely aware of of. And I think the reason. That we are under represented and are in. Employee ranks is two fold one I I do believe that there's things we can be doing better as an agency. But it's also it's also directly connected to minorities being under represented in the outdoors. And when I talk about making wildlife management areas more welcoming and inviting and reaching out to larger constituencies not detracting from hunters or anglers but reaching out to larger constituencies that's exactly what I'm I'm talking about you know we have nature centers everywhere from high above to the to due to a Rogers we have a center in southwest Arkansas and in northeast Arkansas and a lot of those nature centers are built around taking an education and appreciation for the outdoors to people they don't actually have it and that's the ethos that really drives people to come work for the Arkansas game and fish commission now I come from a family of hunters. And people a wildlife enthusiast I've never been one myself. Perhaps because I was born before nineteen eighty four. I'm not. You're never going to leave it down to get a. But it is concerning especially when you have the aquaculture program at the U. APP I it would seem to me that we can be a little bit more and I just a little a substantial lead more involved in this process and it's good to hear you so that you will do that thank you Mr bills and thank you Mr. Well I'm glad I would known one notice at nineteen eighty four was for some of the same out long ago but I do agree it is past time to just your your income and and allow people to invest in that thank you for that going to. Representative would you're recognized. Thank you Mr chairman Mr director thank you for being here thank you for your report and your budget. I have some questions involving the personnel area of first of all I have information that is chair of the personnel committee or co chair of the personnel committee as the staff to put together the show that you have sixty vacant positions and also the nine of the sixty are over two years so how what what is the exact age of those positions that are vacant. we have a age break down that we can provide to you I don't have that I believe at the table this morning what I will tell you is that we intend to re re classified many of those positions on the personal side. Well this reclassifying mean you're going to use them our hello hello well guess who say the average age of your two year old positions. Over two years and then vacant what would be the not the person's age but the average of the two years three years four years is the average five years that you had those nine positions that they have not been filled. I. It you know it would be hard for me to generalize because these positions you know that. The vacancy in our IT positions just for example would be much longer than say the vacancies in a support role and and fiscal or or or HR in the reason for that is is our compensation normally on the on the ID and on the side side is is exponentially lower than pure states and and the private sector so if the hard for me to generalize across divisions but we can definitely get you that break down as soon as possible that would be that would be interesting of the other question is your in your budget presentation you so and I have six hundred thirty four employees you have six thirty six you're asking for two additional positions when you have sixty vacant positions hello hello I understand why we're increasing. What what you're asking for two more when you have sixty vacant positions yes Sir so those those two positions the the personnel committee approved last month and so we you know we just want to be transparent that the positions that personnel just approved we are then going to add to the the ideal budget but those two positions specifically were not positions that that we could feel utilizing any of the sixty vacant ones. And then another question and what when was the last time you did a work time study for a everyone of your employees. Hey what's the answer a time work study it's too well to what a much time the used on each project and how much of the eight hour or ten hour twelve hour day where they actually performing tasks. I'm not sure the last time we did a study but we actually required time street from every single one of our employees and we tie their activities directly to the grants and the programs that they're working on so we have a high level of visibility on the activities if all of our employees. One more question Mister chairman of. Did you did you take into consideration the current inflationary spiral and the you know what what did you come up with from the standpoint of. Making your budget relative to the current economic condition in with and for how long did you look at that is being out there. Did you look at the. Where you went from ninety four million actual two hundred forty eight. That's a pretty good job but is is any of that as a result of the inflationary cost. Absolutely Sir You know just bring up the buying power argument is if you and adjust our our. Our license revenue back to two thousand. Not even going back to nineteen eighty four If you just go back to two thousand we've we've lost well well over two hundred and fifty million dollars. In buying power just since two isn't just in twenty years and that's all in two thousand to two thousand twenty that does not include the inflation we've seen from the pandemic so whether it's fish food for our hatcheries weather is fertilizer for our wildlife management areas for food plots for Morsell units whether it's up wage inflation whether it's fuel of. We think about inflation every single day and it is again is not the most important but certainly peace the a a very large role and and I request for a fee increase one more question Mr if you will for you you know that. Go ahead. Open your fund balance I notices in twenty twenty four twenty five you don't have a fund balance. Used all that money. Is that been used because of the inflation spiral. Well we do eight expect to have a fund balance and of and twenty four and twenty five it will be much more than what it is right now what's directly contributing that is what our CFO here Emily said that even though or through the pandemic we are we're still we're still saying procurement challenges around fleet and capital needs so as far as we've fallen short FY twenty one and twenty two we continue to roll those and two twenty three twenty four twenty five thank you Mr chairman thank you thank you thank you members are recognized my culture Richmond Wardlaw and then I've got to represent her steam center fired representative wall about in two more were a woman are was the stinking what we're asking thank you. Thank you Mr of Director roof if you would of on page eighteen it goes to the Black River settlement fund and it looks like the actual spent twenty one twenty two was less than three hundred thousand dollars and you're asking for basically thirteen and a quarter million dollars for that budget can you talk to us about what the plans are and what will be spent over the next year and then a little bit about how that fund became available and what it's meant to do please. I received a question from this on representative Cavenaugh and from representative Dotson and probably took more time than I should have in answering it. but we are I can watch a video all right all right thank you Sir. One thing nice about to be the. What. Thank you. Appreciate the co chair of the time Senator flowers you're recognized. Thank you Mr directed both of I don't know if you've had this question posed to you already concerning private lands and the creation of that division and in here it says us so we're we're it's you say with ninety percent of Arkansas in private ownership. We talk about the related to fishing hunting ninety percent. No ma'am if you just looked at at at every single piece of property in Arkansas if you were to put a private citizen a private business private corporation in one column and and the other call on any kind of of a public entity city county local state of it will fall out about ninety percent on the private ownership side so that's not just recreational property that's the entire state all right so you to this talk about real estate in general. Yes Sir he yes ma'am it will. My question is is your. David this division I don't know how long it's been in existence. But over the years more recently I've had calls from individuals who. growin up. In Southeast Arkansas they've always been able to fission certain areas in bodies of water and now private landowners seemingly are cutting off access to the places where they Fisher are hot and of as far as I know it's not private lead home. Of the at least the water body and I want to know thank you. Who who who is the agency helping in terms of delivering this four hundred and eighty six thousand dollars proposed each year for. Private land division will what is the benefit to the state. And are these corporations are these individuals that own this property that you want to give technical. Support and that kind of thing I don't understand what what is in a fit of the state yes ma'am we're we're a. We're thrilled about this going forward of. We have private lands biologist since nineteen ninety six and right now private lands biologist of. We have nine of them and they work within our wildlife management division and our intention going forward is to elevate them in the agency where they can have more of an impact that then there have the right now they're doing great they they they did over six hundred site visits last year there's not of the responsible for seventy five counties they contracted seventy five thousand acres they're doing a great job is only nine of them Missouri has sixty. What is the purpose though what the purpose is to assist landowners with their conservation goals do they want to better manage their food plots for their dear do they want to make improvements to the pond or the lake on their property to have better fish do they want to fix some of the rivers or streams that may go through their property to help prevent bank correction do they want help doing controlled burns to make sure that a forest fire to star on their on their on their property the the sole point of this division will be helpful the natural state have better habitat and undertake on a much broader scale better conservation practices well how does that help the the general public I mean if it's private land and they restrict access how is that benefiting the people who pay the taxes in general well of. I'll just start with one of the last examples that I used The single thing that will prevent a large scale wildfire in Arkansas is if we had more landowners helping do controlled burns on the to do it anyway when you have burn bans. Or private are they obligated to. To to try to prevent five years through orders of ban burn bans yes but I reducing the fuel load on the landscape through prescribed fire is a much better and proactive approach than burn bans say another. Benefit to the the state we hear from people all the time one of the biggest concerns they had as water quality you know we got a northeast Arkansas and we see you know we see the Black River silting in the large scale erosions rivers getting shallower rivers getting wider and that comes down to private landowners taking care of their banks to minimize erosion to help improve water quality of the it. Those are two tremendous benefits to the entire state right there it if we wanna talk about sportsmen I don't own any homeland I don't own any official and I rely on on public access and the number one thing that I want next to the wildlife management area that I'm gonna try to Hana is healthy private lands around it I. We sat for a long time that the best thing for healthy public lands is healthy private lands because. Of wildlife don't know the difference between a public land or a. The land so relevant to this sportsman up publicly enforcement should should be thrilled that we're trying to emphasize habitat and healthier wildlife throughout the in entire state even if it is on the public and the private side the University of Arkansas I have a division that deals with all that you groschen and stuff and helps landowners prevent erosion I think I remember that they had a big emphasis on that and I'm just concerned about the dollars and restrictions that private landowners hand in terms of the general public been able to access these properties that the state is helping the support. That's my concern at understand at I think we need to be concerned with that. you know if people are being blocked from going Fishin and fission holes that they've grown up fishing in just because a private landowners put a gate up blocking a road that was normally used to access I think there's a problem with that. And I would have a problem with taxpayer dollars going toward helping them I don't know if he's of corporations that could do their own maybe we need to think about some legislation that would require them not to engage in things that would contribute to erosion. I wish you would consider that. Yes thank you the representative vote you're recognized. Thank you I thank you for being here thank you for answering. All my questions the other day around all of this I still want to make sure that. I reiterate I if we're gonna raise you know our license fees I think it needs to be much greater on out of state people than what it is on in state people because I think there's already a disparity in real folks being able to maybe afford to go hunting versus. Those who come into our state they can obviously afford to come here. M. and I would like to see you know then be able to harvest a demo before they harvest it back and not as many just like it would be in other states. Versus how we do it in our state but I do appreciate everything that you're trying to day. yes ma'am thank you enjoy the conversation and We have those we have those items for consideration. Representative Beatty I believe in a representative for first chair you're recognized. Thank you Mr chairman of Director both first I want to say I enjoyed attending the graduation on October fifth and the fact that for those officers going to be in south Arkansas so a great addition to the southern part of the state and and most of those guys are from that area grew up in south Arkansas are coming back to protect the resources that we hold dear their one thing I want to follow back up on the question that I think Senator Hill posed a related back to the low utilisation that you mentioned not utilisation maybe involvement that we have from from hunters and that we're not seeing an increase in and folks that are taking advantage of our outdoors first what say I understand the position you walked into and respect the job that you've done so far but I'm having I would like you to spend a little time explaining. two to the Committee how an increase in fees or directly lead to an increase in utilization and more folks coming on to partake of The outdoors and and and the activities we have in Arkansas I understand how will lead to include increased money for acquisition of additional resources that you stated that you had high demand for those resources from from hunters so again I'd like to speak directly on how it in increased fee will lead to more involvement and activity. I think it's important to look at the fee increase not not in terms of paying. More for products so you can get. The same product you've always had. when I kind of went through the the list of three considerations that the fee increase was built around the third and the most important is the desires of Arkansans. and so. I thought it would be a mistake to say well just charging people more money is is is not gonna get people outside reinvigorated re focused I would totally agree with that. What will is improvements to our black bass program that we really want to do. Right for for us to do that we know that we have to renovate some of the hatcheries what that's gonna lead us all towards is more like renovations outstanding habitat better trophy bass stocking. Those efforts those added of efforts to improve what our Kansans know and enjoy the now that will get more people involved. Better long term wintering of habitat for waterfowl where there's less peaks and valleys in our water Phelps's that'll keep people involved more recreational shooting access they'll definitely get people out so it's not just a fee increase the that's the that's going to bring people out it's how we want to use that money to take care of what we need to now but also grow to meet the desires of our Kansans in the future. Follow up. if you will quit I'll be very quick K. you know a lot of folks aren't blessed with the the parents of a I believe we had that the outdoors was not so much an option honey was not an option it was something that you grew up knowing that that's what you're going to participate in and take action and and what I what I would like to do here is how you're going to educate and out reach to younger our Kansans and and show them the importance and the value of hunting and and the great natural resources that we have in the state and again applaud the job you're doing it's going to be a difficult task and and and I know that you're up to the up to the job but I think that's going to be I think that's gonna be key and essential to the average Ark our cans and on the hunting and fishing is to stress to them what you're going to do to bring those younger the younger generation in and and I wish you good luck. Thank you As you know education that has been a huge part of this agency since nineteen ninety six and it will continue to be so I believe what this looks like in a in a more effective and if focused way is. Yes maintaining the outreach efforts that we have that really based out of our nature centers and in the classrooms. But outdoor education structure on the dinner table. And we don't want to just try to try to teach someone how to hide in a three day eight hour class and walk away and and think that we're gonna call it good We don't want to just do a fishing derby where we for a ride and somebody's hand and teach about a real efficient and assume that we've created an angler. But we want to provide parents and families and communities and our babies and avid's all throughout the state. We want to provide them with the resources and the tools not just to learn how to do it but if they want to be advocates in a community that they know and love more and better than we do and how do we resource other people that can do it in a much broader more effective way that we can. Thank you Senator Hill got one more if you let up members I've I've allowed broad latitude owned some the subject because it still comes back to game and fish the budget relating legislature upcoming session at all they'll be some things I expect a in our budget hearings that we're going to call us back to the budget when we get a little more off but I've tried to be. Open today center here you're recognized. Thank you Mr chair. Okay here's recommend. I wanna be back on what does Senator flowers was saying want to go on the I think it was four hundred ninety six thousand dollars you referring to own private landowners that is a large part of that money not going to a partnership between game efficient private landowners to make it where it's open to the public to use our property. Yes of. The short answer is the increased agency funding for private lands is only for the resources that belong to the agency meaning we're not giving landowners money to make improvements to their property valued that then they're going to turn around and somehow benefit from. And the more landowners that we work with not only is there more of a desire to contribute to conservation habitat and a state that calls itself the natural state but there's also a deep desire to to bring people into that now I'm. Maybe there's people that you know don't That are as inviting around their own ponds but we have what's called the W. rice program and in the W. rise program we we're able to receive a federal grant where we lease over four thousand acres from private landowners we we pay them for that money and we turn around and we lease that to the hunting public so yes that's the program that you're talking about the W. rice program will be part of the private lands division we've seen great success from the past few years and we only expected to grow it in the future. The three. Of. Senator Flippo as chair. The written Randall know if you remember alternate but if you'll be quick will get you in here thank you. Thank you Mr chairman. Sir you know a couple minutes ago we were covering the part of private land. And it never did come out but I just wonder of all the things going on during the you know during those private of lands is experimentation Sir that's being. Induction you know for the extension of certain wildlife Sir. I don't think I understand what you mean by experimentation of we do have a list of what we call species of greatest conservation each of which are either plant of or wildlife species that is an important but threatened part of our ecosystem and the Arkansas and we are always trying to prevent them from ever making it to the endangered species act less the majority of the private landowners that we get they come to us with the attitude of well yeah I'm a deer hunter or yeah a quail hunter and I want to have more opportunity but I also just want to. My my habitat better. For the state and as we continue to to try to emphasize. Mmhm mmhm native ecosystems prescribed fire prairie grasses of the emphasis on native habitat through this division will will will only create better habitat for all for all species with their game species non species have non game species or threatened or endangered species like. Like you referenced. Thank you Mr chairman thank you Sir thank you that's all I have on the screen then some good discussion this morning would welcome a the agency wreck motion at this time. I have a motion and a second all in favor raise the wrecked say aye. Post. The prices and director but the staff and Mr Nye thank you for your presentation this morning answered all our questions. Your use. Okay members of. Up next is the election commissioners board mission that will continue. with that in the. The election commissioners board representative will come forward. Your taxi returning my phone call it up for let to you're recognized yourself. Danielson the executive director for the state looks Commission. Okay thank you and the. Is not let you personally thank you Mr chairman. The board of election commissioners budget request can be found in your manual starting on page twenty two and that's manual one. Election commissioners mission is to provide reimbursement to the counties for state funded election expenses while assuring fair and orderly election procedures the Department of preparation summary can be found on page twenty four. The board has a total of three appropriations the agency request an executive recommendation as about nine million dollars each year funding for the board consist of existing fund balances general revenue in judicial and prosecuting attorney's filing fees. The first appropriation is the nonpartisan general elections appropriation and can be found on page twenty six in your manual. This appropriation is funded from judicial and prosecuting attorney's filing fees as well as the commission's fund balance the agency request a continuation of fiscal year twenty three authorized appropriation level of one point six million dollars each year of the biennium to cover expenses of the board and local County Board of election commissioners to conduct state supported elections there are no change levels the executive recommendation provides for the agency request. The second appropriation as their operations appropriation and can be found on page twenty eight and your mental. This the preparation is funded by general revenue through the miscellaneous agencies fund. The agency is requesting around one million dollars each year. Salary in match adjustments made in the current biennium are requested to continue into the next biennium did consecutive recommendation provides for the agency request the third and final appropriation is the election expenses appropriation and can be found on page thirty in your manual. This appropriation is funded by general revenue through the miscellaneous agencies fund the agency and executive recommendation is six point three four million dollars each year which is a continuation of the fiscal year twenty three authorized. The executive provides for the agency requests there are no change levels and this concludes my presentation Mr. Thank you Mr Jones do you have any comment. Not this time we have to answer questions all right and the members we have questions for the it's not our Mr Shilts. Not seeing any do I have a motion for exact right I have a motion and a second how old they were I. Supposed. The passage was much quicker thank you for being here today thank you Mr thank you Committee. Continuing on the this night has a claims commission and if we'll have a Director Herby. come up. Please recognize yourself. Yes Sir my name is Katherine early in the director of the claims commission if miss night you can proceed. Thank you Mr chairman the claims commission's budget request can be found in your manual starting on page seven. The claims Commission is a body established here claims against the state of Arkansas and its agencies boards commissions and institutions unless otherwise exempt by statute. The Department appropriations summary can be found on page eight. The commission as a total of three appropriations the agency request an executive recommendation is about two point nine million dollars each year of the biennium funding for the commission consists of say Central Services and miscellaneous revolving funds. The first appropriation can be found on page ten. This is the operations appropriation which is funded by state central services the agency request an executive recommendation is around seven hundred and thirty thousand dollars each year salary in match adjustments requested. In the current biennium our request to continue into the next biennium. In addition to this continuation there's also a slight increase in salary match due to the agency's request for the reclassification of three positions. Lastly the agency is requesting the reallocation of three thousand dollars from the conference and travel line item to the operating expenses line item due to increasing technology cost the executive recommendation provides for the agency request with the exception of the request of the cations. The second appropriation can be found on page twelve. This is the various claims appropriation which provides for the payment of small controversial claims non controversial claims and death benefit awards. Payment of these claims come from the miscellaneous revolving fund the agency is requesting a continuation of the fiscal year twenty three authorized for both years and the amount of two point two five million dollars there are no change levels and the executive provides for the agency request the third and final appropriation can be found on page fourteen. This is the firefighter benefit review panel appropriation. A firefighter benefit review panel makes recommendations to the Arkansas claims commission on death benefit awards the death benefit awards are paid out of various claims appropriation. Which was previously discussed on page twelve. This appropriation provides for the expense reimbursements for the review panel and is funded by state Central Services. The commission is requesting a continuation of the fiscal year twenty three authorized for both years and the amount of eight thousand dollars and the executive provides for the agency request this concludes my presentation Mr. Thank you Mr not Mr be having comments nicer but I'm happy to take any questions you have members any questions and I don't know board. If not a taker exec wrecked motion I have a motion and a second second all in favor aye. Posed exec wrecked passes thank you all for being thank you for being here today is not going to stay with. Mr Sloan been patiently waiting. Have the ethics commission come up. Welcome if you will turn your microphone in. Recognize yourself please. Graham Sloan the Director of the Arkansas ethics commission. Senate Jones business operations for Arkansas ethics commission thank you for being here today is not you're recognized president thank you Mr chair. The ethics commission budget request can be found in your manual starting on page thirty two. The ethics commission enforces Arkansas standard of conduct and disclosure laws concerning candidates. The Commission has won appropriation which can be found on page thirty four in your manual. This is their operations appropriation which is funded by general revenue through the miscellaneous agencies fund the agency requesting executive recommendation is around one million dollars each year salary in match adjustments made in the current biennium are requested to continue into the next biennium the executive recommendation provides for the agency request this concludes our presentation Mr. Thank you Sloan the water bill have a statement no Sir be happy to answer any questions thanks or any questions for staff or the. Ethics commission. Not seeing any at the exact correct recommendation have that the second. Second call in favor I. Over to the correct prices thank you for being here today and being patient thank you. Next up we have the judicial discipline. if Mr. Tucker would come up. I hope this is to help everybody to have people in the room and lose it along we don't have to go out and get him like we did in sometimes the past. You're recognized yourself Sir. Thank you I'm a David J. Sacher I'm the director of judicial discipline and disability it's always a pleasure to be here thank you thank you for being here today miss night you're recognized thank you Mr chairman the judicial discipline and disability is commission budget request can be found in your manual starting on page one seventy three. The Arkansas judicial discipline and disability commission receives and investigates information and complaints about the possible ethical misconduct or disability of Arkansas judges. The Commission has won appropriation that can be found on page one seventy five in your manual. This is their operations appropriation which is funded by general revenue through the miscellaneous agencies fund. The agency request an executive recommendation is around seven hundred seventy thousand dollars each year of the biennium salary in match adjustments made in the current biennium are requested to continue into the next biennium the executive recommendation provides for the agency request and that concludes my presentation Mr. The statement from you Mr secretary. None thank you very much okay any questions from members. If not I'll take a motion for executive director I have a motion and a second. Second call favor I. Post. exagrid passes thank you recycle being thank you I was born in nineteen sixty nine just for the record. I remember it well. Thank you Sir. Public Service Commission. Director grey would come up. Welcome to both of you if you will hit your button there and tell us who you are and who you with. Good morning I'm done a great the director of the public service commission and I have with me our director of the tax division. I am not met candor activism Director of Arkansas Public Service Commission pledge thank you. And it's not you're recognized see thank you Mr chair. The public servant with public service commission budget request can be found in your manual starting on page three fifteen. The public service commission has general regulatory authority over public utilities. The Department appropriations summary can be found on page three sixteen. The Commission has a total of four appropriations the agency request is around sixteen point five million dollars each year. Funding for the Commission consist of existing fund balances and special revenues. In some federal revenues and ad valorem tax receipts. The first appropriation is the utilities division appropriation and can be found the utilities division operation of preparation excuse me and I can be found on page three nineteen in your manual. This appropriation is funded by existing fund balances and special revenues. The agency request is about twelve million dollars each year. In addition the sorry a salary magic dozens made in the current biennium are requested to continue into the next biennium. In addition to this continuation the agency is requesting various personnel related changes bringing their regular salaries appropriation around one million dollars over fiscal year twenty three authorized as well as around five hundred thousand dollars over fiscal year twenty three authorized in personal services matching for both years the biennium. On the conference and travel line item the agency is requesting ten thousand dollars over fiscal year twenty three authorized for staff development and training in both years. On the capital outlay line item the agency is requesting thirty four thousand dollars over fiscal year twenty three authorized for the replacement of a vehicle and each year. Lastly on the data processing services line item the agency is requesting around two hundred sixty thousand dollars over fiscal year twenty three authorized for the replacement of agencies servers and fiscal year twenty four only. The executive recommendation provides for this request with the exception of personal related changes. The second appropriation as the pipeline safety program and can be found on page three twenty one in your committee on. This program is charged with enforcing pipeline safety rules and is funded by special revenue from inspection fees as well as some federal reimbursement. The agency request is about one point three million dollars each year of the biennium salary imagine just mince meat in the current biennium are requested to continue into the next biennium. In addition to this continuation the agency is requesting multiple additions restorations transfers reclassification as an upgrades of various positions. Bringing. There. Sorry I lost my place in. Bring their regular salaries appropriation around a hundred fifty thousand dollars over fiscal year twenty three authorized. As well as eighty thousand dollars over fiscal year twenty three authorized and personal services matching for both years. The agency is also asking for. Eight thousand five hundred dollars over fiscal year twenty three authorizing capital outlay for the replacement of the vehicle in both years. The executive recommendation provides for the agency request with the exception of the personal related changes. The third appropriation as the tax division appropriation operations appropriation and can be found on page three twenty three and your committee on. For this appropriation provides for all functions and duties regarding that Sussman an equalization of properties of public utilities and carriers this appropriations funding include special revenues from the public service commission find out form taxes in general revenues if needed. The agency request is about one point eight million dollars each year matches essence made in the current biennium are requested to continue into the next biennium. The exception of personal services matching there are no change levels the executive provides for the agency request the fourth and final appropriation is the agency's contingency appropriation which can be found on page three twenty five in your manual. This appropriation provides additional spending authority that may be transferred to the division's operating line items in emergency situations that would require additional resources. Funding for this appropriation comes from special revenue balances held in the public service commission fund to support any transfers that may be made. The agency request is one million dollars each year of the biennium and the executive recommendation provides for the agency request that concludes my presentation Mr. Thank you wish not. It's great to either want to go and the state that. No Sir just to say that we're happy to be here and to present our needs and answer any questions you have about our proposal we do do have you if you your request if you. Questions representative Cavenaugh you're recognized thank you Mr I'm over here to your right thank you my question is going to be for the tax division. Can you explain to me what you did. Yes ma'am thanks for the question so we appraise utility and carrier company so any utilities only gas pipelines telecommunications as well airlines barge lines most of that money gets transferred back to the counties which funds school district funding and then sitting county funding but it's an ad valorem assessment based on their property. So you're actually like a a county assessor but you do it for the public. Yes ma'am yes ma'am and that in a way the assessment practices are somewhat different it's based on what we call the unit assessment but in many ways it's similar yes ma'am okay and how much of the tax do you get. We receive five percent of what we call the ad valorem tax fund that's from the assessments on airlines Marcellinus what we call a motor carrier's mature eighteen wheelers and bus lines in statute nineteen five five of six I believe we get five percent of that fund each year okay eighty percent of that goes the legislative audit and then fifteen percent funds yes coordination department which is the state arm of the county assessor's. So you had. Senator Stubblefield you're recognized. Thank you Mr chairman I'm way over here on the left. A can you can you go over real briefly I mean real briefly just in detail the addition of these tentative positions. Yes Sir. The commission's organized as the commission you will pull you back up could you your term away from it. The commission is organized as the commission itself and its advisory staff and the investigatory staff of which I'm a part we make recommendations to the commission and there's been a significant increase in the nature of utility and jurisdictional company request and so what we haven't done in many many years twenty years to be exact it had an increase in the number of positions but what we've seen is a. A significant number of filings nine hundred more than the prior year and last year and eleven hundred before that so it's just a imperative that we have additional staff to review utility request rate case increases in other types of utility needs that are presented to the commission as well as for the commission staff to be able to evaluate those make recommend advisory position for the commissioners for them to render their decisions so that changing positions is fairly balanced between the advisory staff for the commission and the investigatory staff the commissioners staff or requesting the. Addition of a general a chief of staff for that to make for managerial responsibility over their resources that chief of staff position would handle. Media enquiring legislative inquiry as well as supervised the common functions in the agency like I Teague. The secretary's office and the fiscal division so that position would assume some of the responsibilities that are being performed by others currently. They are the commission also identified two important areas of regulation with regional transmission organizations the commission's responsibilities and contributions in this area has grown over the years and they're looking for two additional specialist RTO regional transmission organization my father my so when S. PP that I participated in so to dedicated resources for those in the this is Brenda occurring over number of years these major filings just just take place in the last two years correct it has been taking place over I would say two thousand fifteen to the present is the the most marked increase and what what the needs were and we're addressing those mail we have worked with IBM since since I became the agency's director love for four years ago we do a complete assessment of the work flow and what our needs were and we've worked with OPM and and through personnel committee to make some organizational refinements to make sure that we were doing everything we could to use the current resources but over the last two years it has just really overwhelmed us and we stand in really dire need additional resources on both the Commission side as well as the investigatory staff side. So this past two years to Bender co would do you know what precipitated these large jump in filings in the last twenty four months. And it's it's not just the last two as you pointed out it's over over time since probably two thousand fifteen but a couple of legislative changes have prompted of. The need one is that formula rate plan legislation that was passed we're annual adjustments or allowed to utility rates that are authorized that recovery so what we have is rate cases is there is one now before the commission one next year anticipated you know to over the next three years that utilities file rate cases that require review and the determination by the commission of what's that just and reasonable rate but also annual filings in between rate cases now after two thousand fifteen legislation on formula rate plans so that requires resources there statutory deadlines that have to be met their very prescriptive in terms of time lines almost everything the commission does has a statutory foundation in terms of the time in which it must enter orders that's what really drives we don't get behind because we have to meet statutory deadlines we just work people harder and that's not where we're at the point where we need additional resources to assist in that effort to ensure that we can fulfill the responsibility to ensure safe reliable just and reasonable rates but also that we can relieve some of the burden that we have on current staff because of the excess hours later be required all right thank you Mr chairman. Thank you representative Springer you're recognized. Right here good morning thank you Mr chair my questions relates to the on page three twenty three twenty five regarding the contingency amount of a million dollars yes can you give an example of what that possibly could be used for yes back contingency was last used in the utilities division and like two thousand eight but when that circumstance eighties eighty unforeseen circumstance presents itself because of the legal requirements on the commission to issue dish issue orders and statutorily prescribed time frames and the fact that orders can be appealed there may be things that are not routinely foreseen that require additional expenditure we have this special commissioner that we had to pay for in two thousand eight and there been other times when there were excessive numbers are or a number of hearing days in excess of norm so it's really things that the Commission must statutorily stand ready to Produce but at the same time may be unique circumstances that would interfere with that. If that contingency is not spent then it becomes it's not charged in our special revenues that it would show up in our fund balance is so it would reduce the amount we bill for our budget for the upcoming year because we bill annual leave through everything that the commission does is funded through special revenues so it would serve to reduce that billing as an office at. One last question this chair. Thank you of on page of three nineteen I see the of increase in staff and then the increase in the conference and travel expenses is that related is there a correlation between the two of those they are related we take into consideration that would this is another area of our budget that has not been adjusted in twenty years as you will hear have heard from game and fish and probably will hear from other state agencies recruitment and retention has been a challenge for us we want to ensure in this complex area of utility regulation that requires accounting expertise finance engineering Economics all of those areas require significant training and so that is the only purpose for that increase and I think it's some a minor increase in relation to the number of new people we are. Hoping to attract and that the fact that the training call opportunities will be with heavy in the early years for attracting new folks thank you Mr. Thank you Senator sample you're recognized. Thank you Mr. Right thank you the and I was hoping you were gonna get the same answer to center Stubblefield is part of the reason that you're needing more people is that your we're having more homeowners steak and put solar panels and then there's always. Problems with them I get calls all the time about net metering is is that part of your problem that you're having to add more. More staff. It is a factor that legislation that expanded the use of net metering in the State of created let us to create a a focused group that is getting up to speed on that expertise in addressing those areas we have had a lot of complaints in that regard and so we do have more dedicated staff now based on that legislation I should have mentioned that earlier as well in addition to the two thousand fifteen formula rate plan legislation the two thousand nineteen solar Act also is a factor in that that's what I was thinking that you were going to ensure that with with that because I know that. I've sent a good many people to you because of the their problems putting up solar panels and and have an activated and so thank you for your answer thank you thank you sorry I failed to mention that earlier it certainly is a consideration. Thank you the representative Wooten you're the last one I have on the board. Wreck you Mr chairman thank you all for being here today I want I want to ask you some questions about your personal email yes Sir you're asking for ten additional employees and you have of the twenty six that are vacant right now how many of those do the same thing that these ten new winds will does. Probably a third of those will do something similar to five of the positions were asking for the others are different positions that chief of staff for the commission itself the R. T. O. analyst regional transmission organization analysts would be new a new job description there and there are three positions I'd like to talk about that are really devoted to public safety there in our pipeline appropriation the our pipeline upper M.. Evaluates on site in the field all of the natural gas facilities in the state one of the things that has come become an issue over the last year and I have is the damage prevention results in Arkansas have declined or performance has declined you will have the legislation before you probably it very soon where we have worked with the natural gas operators and eight one one call before you dig to try to improve that legislation and we're anticipating at least three of these positions that would be in our pipeline safety effort damage prevention specific to ensure the safety of the public and the workers that are actually you know digging new utility line and those are damage prevention analysts which are not positions we currently have an additional attorney to help lead that effort so and most of that I'm sorry most of that will be funded or should be for. By the US department of transportation not holy but our program operates under the jurisdiction of the pipeline and hazardous materials safety administration all arm of the US department of transportation were eligible to be reimbursed for a large part of our operations depending on federal funding and the performance of our operations we can get as much as eighty percent historically those positions have been funded at the sixty to sixty five percent level so for those position we anticipate that. Arkansas pipeline safety acting in this in in the state of the federal agency doing so should be funded largely with federal funding. So. You're saying that three or four of the twenty six positions or equivalent to what you won't from. To add similar similar size one what wine is fourteen in when you go for similar positions you can fill now well several of those were in the process of feeling we had it has taken us longer and we have been more diligent in our efforts one of the things that we've done is in the last legislative session of an act was passed that allowed up to ninety two agency to request up to five thousand dollars to be transferred in on the approval of the FAA to be used for promotional items and we have done that in an effort to attend career fairs. We have to but because I will. You still not you spend five thousand dollars and you still have the vacant positions well and with an investment that we're making for the short run and hopefully the short run in the medium and the long term we attended a career fair at University of Arkansas pine bluff last month we're scheduled to go to UCLA next month so we are actively attempting to attract people to those positions okay as a result of those meetings how many how many people in cars have you had about those positions we had eleven resumes that are under consideration. eight it's not at the point where they have applied for that position but we are we're extremely optimistic that that among add the other efforts will help us in being able to track so that we don't need them it's that we're having it's taking longer to get the specific expertise that we have to that we need to have almost everyone that works for me as a subject matter expert testifying on issues of what costs are reasonable to be charged to the ratepayers of Arkansas and so we want people that have the the hard business degrees in accounting and finance and so if you hire the for additional that you're there similar and responsibilities now you still feel like you need to ten additional yes because all those ten or not in that same area I hope I've made clear that there's some different positions that that are being covered for both safety managerial and their regional transmission organizations for the commission staff but yes Sir I do believe we need all of those positions given the workload that we've experienced in the since I've been back with the agency after thirty years before back for the last four as the Director and seeing what is yet to come I feel like these positions are essential to us to be able to ensure that we protect the public interest of Arkansas. Thank you Mr chairman thank you ma'am yes. Thank you senator flowers you're recognized. Thank you Mr chairman. Can you tell me. It is great how old. How much. Do you all get in special revenue. To support your agency from the utilities is it a percentage of what. So. For the utilities division which is not necessarily pop one or tax thank. Liberty utilities water company okay yes our. Budget is fully funded by all of their all of the utilities that we regulate we regulate in total four hundred twenty two entities you get a percentage of what and so what are our budget last any fund balance is annually billed to the utilities and each shares in a portion of our budget based upon their revenues in relationship to the total revenues for for those companies so our budget is fully funded by the utilities that we regulate okay so whatever the legislature appropriates for your budget. You get that money from the utility companies that's correct proportionately yes okay so when the utility companies ask for a rate increase. Do you get any more are you just stick with that budget that budget is a fixed number we would not get any more because they wouldn't be charged anymore they would be allowed to seek recovery in general rates the every reasonable costs they incur of which one would be funding our budget so we would then evaluate their inclusion of that experience that ballot experience to do business in terms of whether it let's appropriate recovery from ratepayers so what do you saying they would be allowed to get what they have to pay. The. Your agency back from the ratepayers of a. Your that and to their in their request for rate increase. Yes by law every utility is authorized to recover expenses that are necessary to provide utility service and a reasonable return on their investment and that's that's case law that enables them to do that that's okay a well established a foundation no basis for utility regulation. Whenever presenting the request to your agency they include maybe what the last proportionate share that you have to pay yes the last bill they would have gotten from our our office for our budget that we would look at what that last billing over the last you know one to three years was to come up with a reasonable estimate of what should be in rates prospect. But that we don't work we don't collect any additional amount as an agency at all other than what we're by statute and able to collect from the utilities that's a statutory provision okay one other question Mr. So. So like. I think liberty utility and maybe Central Arkansas Water are the only two water companies that you all. Have. It's just the liberty yes I have okay. So is that. They're not mixed in with these other Utilities that you all. Oversee that are and the way that that would that budget would be split at proportionately would be based on revenues because their revenues would be significantly lower than the revenues for a major electric utility then they would only pay you know a. Percentage based upon their revenues as a percent of every utilities revenues will and what what I'm concerned about is because I know the liberties about to ask if they haven't already submitted a request for a rate increase yes they have September thirtieth okay and so. Now I heard you respond thank you senator Stubblefield about the increase in of requests for rate increases. And that's gonna necessarily affect your budget if you're asking for additional employees to handle all of these request and all the other things that might be associated with your office. So. I'm just trying to understand how. Two of the bill that we get as a consumer In their rate increase. Request. How what does that look like in terms of. What you're asking us today even though I see that some of what you've asked for has been. Put off until the next governor comes into office so we won't know but I'm just wondering what they're. Their request looks like and how does that. square with. With the increase that you're asking for that's not an issue now because that's not something they've already paid. Should I look at it like that. They're only going to be looking at their last billing from your office. Under state law a utilities allowed to project but part of the staffs the investigatory arm in the commission of which I'm a part we will be evaluating that utility request to make sure it's reasonable all aspects of that request and then in turn filing expert testimony in a docket before the commission for them to decide part of our review will be whatever the utility requested but certainly we know what we build them we do have that information and we know what they paid and so that should be the most at nine and measurable information about what that. It would be okay. Last. I'll ask you when do you expect the decision to be made on this request that's been submitted to your office. And I would point out that sure you know but. They have to communities that they serve and as I understand it they were just going to submit the request for a rate increase for pine bluff. But White Hall is. provided service with that by that company so I don't understand why they wouldn't have put it together. Of that I think there's the resource the water resources coming from the same place. And I'm I'm just not understanding that yes so the application for the increase was for pine bluff water. And the level of increase was quite significant even the company requested requested the three year phase in because of the order of magnitude there will be a full investigation by our staff and potentially others that would intervene including the Attorney General and so that will be scrutinized very very closely as all right cases are and then by law the Commission must enter an order within ten months and since that application was filed September thirtieth then that would be July of. Twenty twenty three. So I thirty. Thank you a representative Lanny Fite you're recognized. Thank you Mr to your right over here described. Up in the it's my understanding that you do not regulate the solar industry in the state of Arkansas. There are net metering facilities that mass that required by statute commission approval and will so we have multiple applications that are filed to be at a net metering facility based on size under there the current law in the commission's rules in terms of regulating the industry as a whole you know that the that's a I'm a market that we are not a involved in in that regard but anything that under the statute and the commission's rules that requires commission approval then that's the part where applications and review what happened at the commission you receive you receive no financial support from the solar industry for your operation. No okay the one for one you you will have the ability to adjust that and also to limit the size of power plants that can be built across state. Two different questions so the commission under the within that guides of that current statute and rules has authority in that space that the laws that the legislature gave the home for net metering and then in terms of power plants a for a utility as many are now in the in need of adding additional generation there are statutes that require commission approval depending on the size and that application would come before the commission it's usually utility generated in terms of what they've identified they needed in conjunction with their integrated resource plan that they conduct every three years they make that request before the commission there's a statutory deadline on when that is addressed by the commission for approval based upon public interest another statutory standards of one more question please Mr. Okay you the the cost shift the all take that in consideration when you approve or disapprove of our plants. Are you when you referred a cost shift I'm assuming you're talking about the statutory framework and the the rules of the Commission regarding net metering and so that there has not been evidence presented and Commission order entered with regard to any particular cost share for any particular utility there is a docket that the commission started opened to investigate that so I think it's it would be premature to say that that is a conclusive matter in that regard since it's just beginning. In other words you don't believe there's a cost shift right now. I would say that and as with everything in utility regulation documentation is the basis upon which the Evidence is presented in so that's the standard the commission has always used evidence before it in rendering its decisions and I have no reason to think they would change that. Thank you Mr. Thank you senator Chesterfield you're recognized I move the exact correct. Okay may hold just one minute I'll take that had a question and Mister Anderson Clarified it for any memberships concern about the personnel of issues on is that will go to personnel subcommittee so us adopting the center Chesterfield motion for exact rack will affect that so that was that can still be taken up with personnel subcommittee I have a motion to have a second. I have a second all in favor of exit rate say aye aye opposed say correct passes thank you all for being here today and miss not thank you for your excellent job thank you very much all for your questions always happy to tell more about what we do thank you thank you all for your time members we will be re assessing and be back at one thirty back at one thirty today thank you.