ALC-JBC Budget Hearings

The. Legislative Council joint budget committee. Budget hearing this we or first on start with seat selections selection if you will listen be looking at the board to see what seat you want to be at the one you're setting it may not be the one you get to be prepared to move staff will come around and put the names in front and you may need to vacate. When I ask if you will start to self yes Sir thank you Mister chairman on the screen you'll see the numbers of the seats and as they are selected they're gonna get blacked out so you can see which ones are open when we call your name this is done by seniority the first the first on the list is representative Meeks and if you are higher hi yell out your seat number will take the name tag to that seat and then recorded. So representative Meeks. Is a. When you were not. The representative of. Three sixty three. Senator Bledsoe. Twenty five twenty five. Representative gene. Sixty two. Senator Elliot. Twenty two. Representative love. Sits down there. Representative love fifteen. Senator Teague. Eighty five. Senator T. eighty five. Representative Murdock. Fourteen. Senator Chesterfield. Twenty three. Representative Shepherd. Seventy four. Senator Rapert. Eighty seven. Senator Rapert eighty seven. The representative Deffenbaugh. Seventy. Senator flowers. You will need. Okay Senator flowers is fifty three. Representive Eubanks. Seventy one. Senator Irvin. Fifty two. Representative fielding. Number ten. Senator Dismang. Eighty. Represent Cozart. Thirty nine. Senator sample. Eighty two. Representive Lowery. Forty five. Senator Caldwell. Okay eighty six percent Caldwell. Representative Mickey. Seventy five. Senator English. Fifty one. Representative Dotson. Sixty seven. Senator Ingram. All eighty one. Representative Miller. Yes. One sixty one. Senator Hendren. We. Twenty four. Representative Jett. Forty one. Forty one projects yeah. Sixty four. Represent Jenna sixty four Senator Stubblefield. Ninety three. Representative Womack. Yes Sir. Thirty eight. Senator Hickey. Eighty three eighty three. Representative Holcomb. Welcome. Seventy two seventy two. Senator Hester. Fifty. Representative Charlene Fite. Sixty nine. Senator Flippo. Eighty nine eighty nine. Representive Whitaker. Forty seven. Senator Blake Johnson. Eighty eight. Representive Hillman. Yes Sir. Forty. Senator garner. For the ninety. Okay sixty. Representative Deborah Ferguson. Deborah Ferguson. Forty six. Senator Wallace. Forty nine. The representative Payton. Ninety. Senator Davis. Thank you forty. The walls. Okay So for senator Wallace we need to block out forty nine on the screen. Thank you and Senator Breanne Davis. Ninety one. Representative Hodges. Okay. Forty two. Senator hill. Eighty four. Representative eaves. Seventy three. Senator Ballinger. Fifty nine. Representing their. Sixty five. Senator mark Johnson. Fifty eight. Representive Ladyman. The lady miss your. Thirty seven. Senator Leding. Fifty four. We're on representative gray. Fifty eight. I'm sorry represent gray sixty eight representative gray. Senator Pitsch. Thirty three. Representive Tosh. Thank. Forty one. Forty one. Senator Hammer. Ninety two. That's all the senators. Representative back. Eighteen. President Kenneth Ferguson. Forty eight. Representative Boyd. Boyd yes Sir thirty four. Representative Lanny Fite. Sixty six. Representative flowers. Flowers yes Sir. Twenty one. The representative speaks. Thirty five. Represented by. For. Forty. Yes ma'am forty three represent Vaught forty three. Represent Richmond. Forty four. Representa Fortner. Six thirty six. Representative Cavenaugh. Thirteen. Represent Gazaway. Twenty twenty. Okay. Representive Coleman. Coleman yes Sir. Eleven I'm seventy. Seventeen seventeen for represent Coleman. Represent Penzo. Represent. Yes. Fifty six fifty six. Representative Bragg. Sixteen sixteen. President Wilton. I did hear you Sir. Nineteen. I've just gotten. Scott you. Senate twenty eight the representative Scott. I Garner. Twenty nine. Representative Lee Johnson. All twelve. Representive eleven. Eleven. Last. This is a thirty okay represent a call thirty. Represents Springer twenty cent percent Springer's twenty seven and million. Represent million. Five is at number five that's all of them as chairman. So what okay. Okay we'll do that I'll just five okay. Okay members if you find you seat and if you have any problem to come up the best we can. The get you seek number if you fail to hear. Members in your. Packet there is a. List of subcommittees if you had a chance to look at that. Also the. Special language subcommittee will meet at one thirty and mac B. today. If your prize yourself. Of the list and also shows a person I'll vote for Senate and house. And then we have in your I can also the. One page summary of all of the. Precession budget hearings the days the ones that will be taken up that day if you've got any questions feel free to see the chair staff and that will ensure that. Also in your packet is the rules if you have any discussion on that this would be at that time to do it members in the past I'm not sure the. Last time and and the maybe the one before and there is anyone is rule five your cover all led to a. That be covered the change that we had done before and I think you can give some background reason that was originally in there yes Sir the rules are in your packet and it was identified on page two rule five AA requires when other presentations are being giving that at at that agency personnel sit outside this was originally done in room one seventy one years and years ago because there wasn't room to bring the agency personnel out. we made that aware to the to the to and that's the committee's prerogative if they want to keep that will or not. Okay members fused anything in your rules you they discussed allows time to bring that up if not Somebody will accept striking five a okay and recognized the cochair. Wardlaw no Sir you you took care of it I just wanna make sure we struck five a out of the rules a member's anybody has any questions I can explain that for you getting some looks Ogwen explained in the past we met in room one seventy one because that route okay all right well then I don't know what they're looking. Would allow the reasons do we have questions okay center a you're recognized. There we go all right thank you Mr chairman I just wanna get a quick clarification about that the rule of did you say that we will it will be automatic that everybody will be able to come in or will decide each one I thought I heard maybe the latter. Who should come in addition on. We are aware that would depend upon the motion I think the motion was to strike that completely meaning agency personnel would just come right in the room and and and okay would be present throughout the whole nation okay all right thanks. Okay not saying any of further request. Doctorow's. We need to I have a motion to adopt the rules as amended I have a motion and a second all in favor aye. Post rules are adopted thank you. Your plan. Please. Yes Sir Mr chairman okay also just wanted for the committee's information there are three books on your table it's a tax handbook which is a summary of a it's gives a nice summary of the tax all the taxes Arkansas has and shows collections in there there's also a deeper look which has a lot of selected statistical data for example to show you the general revenue cuts that have been made throughout the years some Medicaid information is in there higher ed information is in there and there's also what we call the a book which is a ten year expenditure history. And you'll see on your agenda when we get to an agency there they a book page is also listed on your agenda so if you wanted to look at their ten your hand expenditure history Mr chairman that's those are the books on the table. And the adjuster will have Robert wreck of up in the disease would explain the breakthrough the budget manual. Mr Brecht. You're recognized. Thank you Mr Robert record state budget office. They asked me to go over the budget book or our office actually puts together these budget manuals for you that's a lot of work use you can imagine the goes in all of this and I just want to give you an overview of how this works and so you'll kind of have a general understanding when you're looking at these pages of how this works. About a disclosure to the Department hell since I saw many my friends outside I spent over twenty years there so I'm familiar with their budget if you are paid sixty two of your manual the. It starts off with just a general summary of the of the agency you can send employment summary of required shows the breakout of employees will also see a list of publications of the the Bill Perman has to do under business areas of a six forty five. You also see a page on on page sixty five it'll show minority contracts that they're engaged in that's also statutorily required. But the the meat of it starts on page sixty six and this is a summary of appropriations summary for the department of health so when you look at the top you'll see emergency medical services you'll see a thirty four DD by that by that heading that's the funds center you'll see the actual expenditures in that first column courts is twenty one twenty two this would have been the the FY twenty two numbers of these are actual expenditures of four emergency medical services you'll see the twenty the the current budget the they've got budget sixty thousand in their authorized sixty thousand that's what you would have a approved in the last to. By any of. Then you also see the in the twenty three twenty four of these are the future appropriations that you'll be looking at the agency requested that they keep a sixty thousand dollar preparation executive a recommendation equals that amount in the in that follows through for twenty three twenty four which of FY twenty four and then twenty four twenty five you also see. On the health operations paying an account that's their largest to us fund that's thirty four P.. Something that you'll see in this of might be confusing the survey actual expenditures of three hundred twenty six point five million of they were they were budgeted in twenty two twenty three they budgeted four hundred eighty five point six million but you'll see authorizes just thirty three hundred sixty eight point eight and you might ask well how how could they have budgeted more than that is authorized to find notes it near the bottom of the tables that that explain it but in this situation you have some salary increases and you had miscellaneous federal grant that that added to that as so you'll see anomalies like that but they should be explained by the narratives of the bottom of the of the page you also see the number of employees that are authorized number employees that they budgeted and the number of employees that they actually utilized in in FY twenty two it you'll notice also I wanted this one there is I want to show you this you'll see all the arpa of the about a third of the way down the page you'll see all of these are but a of expenditures of that occurred at four twenty two of those are not going to reoccur and that's why it's all zeroed out to the right that will be asking for any more preparation for these particular operate quest. Then below that uses the the funding sources. And you'll see all of the different funding sources that that the health department uses for their general the general fund this is a fund balances what they had left over the and in carried over the general revenues is what you gave on through the RSA the federal revenue a special revenues cash funds performance funds all of the different types of funding is all listed on this page. This is just a summary in and all the budget is is just a compilation of smaller of budgets they just build up until you finally get the large the large amounts. But that's how the summary page works if you go to the next page on page sixty eight you'll see thirty four D. emergency medical services that's the first line from the summary and so there's going to be a page for each one of those lines that you see and so for emergency medical services you'll get a narrative of what they do you know that that gives you an idea of how they operate and then you can see this is just the budget page on page sixty nine this would just be the appropriation summary just for that on so you've got the operating expenses their actual expenditures are twenty nine three nine and that this all of this is compiled into the summer so each one of those lines you're going to you're going to find a a a page for each Ridge fund so you'll see they've actually spent twenty nine three nine again they're asking they they got a budget sixty thousand they're asking to again a budget sixty thousand four twenty four and twenty five you'll see the fund balance it was one sixty eight eight twenty six or special revenue this is from a the MSPs forty of forty three eight seventy three the transfer all of fifteen dollars so you Senator total funding of two hundred twelve dollars and and seven fourteen or ten or twelve thousand seven fourteen dollars and so you'll see that they have a hundred eighty three thousand three hundred twenty five left you'll find that whenever that's in parentheses you'll find that in the fund balance if you go up to twenty two twenty three you'll see that same number that's a fund balance that they that they carried forward into twenty three you can see what they expected taken special revenue for a Affleck twenty three the total funding and they expect to end up with a hundred fifty seven seven hundred eighty three at the end of FY twenty three again you'll find that number that's just the transferred over to the fund balance for FY twenty four and and that's the way this works throughout the manual so whenever there's a fund balances carried forward you'll see that in parentheses an old you'll show up in the fund balance for FY twenty three of the the fire expected fund balance after FY twenty four the one thirty two to forty one again that's put in FY twenty five that that's all of this works it's just a compilation of all of these different pages this is just one of the manuals believe there's gonna be five the job you looking at so you'll see that the when you compile each of these funds into the into the agencies and and you just end up of one large budget and but each agency is also limited on how they can spend these funds in each of these in each of the sub funds so there has to be spent in each one of these we the way the pages reflected for the most part I'd be more than happy to. Take any questions that you might have. Should. I know it's a real clear and Intel you look at it for a little while if it's it's it takes a bit understandable it's it's a system that really works well and then developed over the years. Members are there any questions for Mr right. And it as always what we get rusty L. and we forget you take up. We'll certainly try to work but feel free to ask questions if you have need of saying no question thank you Mr correct for thank you Sir. And mistranslated. Thank you Mr chairman that the chairs of assa maybe I go over a quick summary of the process we have for this whole budget hearings Robert and his staff over DFA or app or putting these manuals together as you said bill have about five manuals quite a bit of information we your staff get them about ten days prior to the presentation you'll see that one page summary when when all the agencies are scheduled so we have contact the agency secretaries and directors and told them when they are scheduled to come before so that they can be here come before this committee so they can be here and we we say all this because a lot of times we may move fast through a and we say well why don't we do more we don't have them scheduled to come and we might not even have the manual and be ready for the presentation so I just wanted to let the committee know what how the schedule works and and the process it's gone through and and our staff when they get these manuals they go through them and prepare presentation for you all to show you on any change levels in in and walk you basically walk you through the manual what pages on what they're requesting is and then the agency directors are given a chance to come up and speak and answer any questions and Robert his staffer here to answer any questions for the executive as chairman to that suffice. And that's what I ask Mr Anderston as they work to make things efficient in all there's only so much you can do in the process of process is what it is and and just wanted him to explain it to you the reason we don't just dump everything in one load you you can make the process work correctly that way. Okay Mister and that brings us to our first presentation. Of what we have done here for the first day is the department of labor licensing and the department of health have a bunch of boards and commissions to transformation moved into their department we have three spreadsheets the first red sheet is for the department of labor licensing boards and commissions that says spreadsheet one on it that is a spreadsheet we will look at now. In that spreadsheet you'll see the first column list all the boards and commissions and then right next to that moving left to right you'll see the page number that that. Order commission is listed in the budget manual. And then it's the same format that Robert just went over where if for example if you go the ABSTRACTERS' board you'll see there on page one eighty four you'll see the actual expenditures what they actually spent the last completed fiscal years was eight thousand three hundred ninety eight they have zero positions and then you'll see what's in there bill this year what's authorized for them and then you'll see if you in the blue there two thousand twenty three dash two thousand twenty four this is what the committee will be recommending to beach put it when the committee if the committee adopts executive rack for sixty five six twenty five that's the number that will actually be in the appropriation bill during the session. And so you'll see we have a agency requesting Zacharek a lot of times their executive recommendation a lot of times they're the same sometimes are different and then we also have a recommendation for the twenty four twenty five fiscal year. And Mister chairman the first on the first red sheet you'll see the bail bonds I'm sorry ins in spreadsheet number one it's already been we have all these boards and commissions and the Committee normally is given a chance to ask any specific questions about any of these boards and commissions or ask if they want to pull any out to be heard if if you all want to pull any out then this Thursday when the department of labor comes up we will also have that board president to answer any questions and make their presentation. So this spreadsheet is to kind of give us a jump start to see if you all want to approve any of these as is if you want to pull any out as chairman of already been told to pull their professional bail bonds board out to be presented on Thursday. If you want. Members are there any other ones you would like pulled out at this time. Senator Hester you're recognized. If if if we just have any questions at all it's gonna require them to come before us. And on what it is the man. When a we're we're we're we're here work and Roberts here we can take a shot at any questions that you may have to programmatic questions or if you want specifically want them to come in we're ready to do whatever he wants and I have a question on the home inspector registration board when that times appropriate it's public. Yeah that that we can go ahead and do that is to okay on page two hundred thirty four the home inspector education board Kevin you may answer like just looking at this and I know this because of of of history It says there there there total funds like they're they're going to be expected in twenty three twenty four like have eight hundred fifty five thousand dollars is that extra money just sitting in an account. And and yet they're only spending like eighty grand a year. Yes Sir so if ten year surplus yes Sir so would you like me to kind of go through how the fund balance works it was center yeah I'm pretty sure I know what I would like for you go through it one time for you say okay so the easiest way to see that and and something we look at so this that's I'm really glad you brought this the committee's attention you'll see in the we're on page two thirty four you'll see fund balance down there right after funding source in actual that's what they started fiscal year twenty two with is five hundred fifty two thousand two hundred seventeen dollars that is their fund balance they started the year and then when you go down at the end of the year you'll see the end of that year was six hundred and twelve thousand six hundred dollars. So then you'll see that six hundred and twelve six hundred carries up to the next column to fiscal year twenty two twenty three. And when you look at the projections out Senator Hester is talking about when you get the second bottom line we go all the way across you'll see they have a projected fund balance at the end of twenty five of eight hundred forty six thousand one hundred twenty five of course that projected balance does depend upon the agency's expenditures which is estimated at this time but it does show growth in the balance yes Sir. Your. Yeah I think we started you know couple years ago putting pressure on these boards and commissions that have these. Significantly high surpluses more than three or four years worth of operating expense you know a budget in surplus that they find a way to start dropping that down whether it's returning money or lowering license fees clearly they're not doing that so I guess I would I would like to have them I would like to pull that out and have them come explain that to us on the. Our state thanks the staff will have that. Thank you a representative Wooten is your question for Mr Anderson. Yes thank you Mr runny clarification I think you just covered it I would direct your attention back to page sixty nine were we started out I want to ask questions a notice with the and I think this goes along with Senator Hester question to but is this is an agency not board. But if I'm reading this correctly there go ahead and fund balance at the end of the year of a hundred and thirty two thousand. verses. A hundred and fifty seven thousand or hundred fifty says that run my reading that right. Yes Sir this this actually will come before the committee Department of Health on Thursday and we will go over this particular one this one is not one that's on our spreadsheet that's in. Thank you are just as reasonable referred back to but I am looking at the correct answer okay thank you that's a lie thank you thank you for the the here's was representative Cavenaugh you're recognized their action thank you Mr chair Kevin if you can just verify when I'm looking at this and this let's take the Arkansas ABSTRACTERS' board it shows that it has no employees is that correct. Yes Sir yes ma'am sorry so to go so we have orders with no employees. I mean there's more than just one so my question is how does that work. Okay have structure board okay I'm state they they had a they didn't have a position I just got to the page so that's on page one eighty four they did not have a actual position fiscal year twenty two they do have one position budgeted for this year and one position authorized so for fiscal year two. Per fiscal year twenty two when I read that to the committee they just that year they did not have that position filled so it was shown as a zero but they do have one employee. If you look okay so if you look across on page one eighty four under positions you'll see actual under positions for zero four twenty two and then you'll see that under the authorized calling for twenty three they have one position and the request is to continue that one position in the executive has recommended that in I will remind the committee that personnel subcommittee that was created they'll be looking at all of these they'll go through each of the positions and then make a recommendation back to this committee and report okay because I notice that there are several that have no employees for twenty one twenty two yeah so I don't know how board works if they don't have employees well an example would be the the promotion boards which we're going to see that's an attachment three which we're going to see later on and they are staffed by farm bureau who does it for free who does the staffing for that and then other times you may have an extra help employee for small board or commission that is not classified as a position that does the paper work and provides the staff support for meetings with the board members okay thank you and also if we can have the motor vehicle commission come here to speak I appreciate that got it yes ma'am thank you. Representative vote you're recognized. Thank you Mr chair so I think I'll have questions for the Arkansas psychology board and the social work licensing board hold those. would you like to hold those for Thursday or do you want to try to answer your questions yes I'd like to hold on yes ma'am. And can I at the telling Board to that also Sir totally forgot. Yes god yes. Senator Hill you're recognized. Kevin I guess this is for use on I'm a piggy back off or what Senator Hester said will go on the home inspectors in this right here's on the appraisers board you're looking at the at ten twenty two twenty three over a million dollars in excess funding can you take it on down to twenty four twenty five you get three quarters of a million dollars. Rather than answer questions or can you. All right so your page one ninety yes Sir okay yes Sir there may be a time when the agency secretary or director can come in and say if they have a plan maybe to build a building or do renovations or why they're carrying such a large fund balance. If you wanted a hole that we can make sure they're here yes Sir let's hold it yes Sir. Social work to. So we're holding that the. Appraisers licensing and I was the other board Mr. Collins said. Psychology towing and social worker also held for Thursday. Senator Hammer you're recognized. Thank you Mr cash given questions please yes thank you. Kevin how hard would it be to compile a report of all the boards in one simple document and their balances to show What they have over a three year average it may be available they could be refunded to those that pay the board fees. Yeah that would that would take legislation to do that and we could certainly work with turnings to do that and we can get you that information yes Sir course right but I'm just asking. The the time investment of the staff to compile a report that would show all the boards what the balances are and and do those bounces exceed a three year running average of what they collect yes Sir we get that that's what we're here we'll get that for you Mr would that be okay if we direct staff to get this we can have that one form and see the carryforward balance over three year average please staff says they can do that thank you. All. Okay members not seeing any others to hold we can go on the top this I have a motion for executive director. All of. But for those it's not AOCS have a motion and second second all in favor aye. Those those are adopted. Our next. Michiganders thank you Mr chairman so that takes care of the labor licensing boards and commissions and we have recorded all those and they will be here Thursday to answer questions the next is the same format but this is for the department of health their boards and commissions that is spreadsheet to in your packet. And Mister chairman I guess we're ready to go through the same procedure we do especially wants a member you have your the spreadsheet to mark you have any questions any those to pull out this time. Give you just a minute. Representative voted you're recognized. Thank you but again. About that Sir I can't find it on here but I was willing to hold the drug abuse counselor and the counseling board but I can't I don't know if I'm ahead of my time or not that's what I was trying to look for that days on this sheet is the second one. Second one I think in. Okay. Cavenaugh has that. Was it all represented Vaught. That's all for you. Representative Dotson you're recognized. Thank you Mr chair The Arkansas. State Medical Board I thank Page one seventeen. It has a very high fund balance in that as well. Are we going to get that report for all of these as well. The three year average yes that can staff says they can do that okay if we could have them come in and answer if they've got a plan for their. Almost eighteen million. We will excess funding we will mark them thank you thank you. Senator Elliot you're recognized thank you Mr chair if you said I missed it but we we have the of the hearing for all of these boards that are being held at one time. Will it be its own agenda. Just one minute we'll okay. Hi yet yes ma'am we're we're ready to go Thursday we were actually having the department secretaries coming to do their presentation for health department after labor licensing and we will also contact those boards and commissions sure they're here to make that presentation and then it'll be whether the committee wants to go ahead and make a recommendation that or continue to hold for some reason so here they will be here on the same day as the heads of the departments yes I am saying okay all right thank you. Okay members not saying the anymore questions I have a motion for executive rate for all those except the ones noted. I have a motion exaggerate second all in favor aye. Those that's adopted. Yes Sir. Yes Sir. Thank. Now we have. Thank you Mr chairman so what that takes is to spreadsheet number three these are the promotion boards and we have done another summary spreadsheet for you for these promotion boards. This is the same format. As the other two spreadsheets. Are these do not have any employees as their staff by the farm bureau the page numbers are corresponding M. or happy to answer any questions or hold them for another meeting Thursday. Okay members look look the promotion boards over for to any questions on those we. Can get deeper. Yes Sir Mr chairman I will none of these promotions the only the only change in all of these promotion boards over previously authorized level is beef council has a reallocation it's not an increase their moving five thousand dollars from conference and feet operating expense that's the only change in all of these boards and commissions and it's not an increase it's a. Reallocation. Seeing no questions that I have a motion for exact correct on these have a motion Senator Leding second represented first alone favor I. Post those are adopted. Members no this is a little shorter day the one always be short we appreciate your participation remember specializing which will meet at one thirty members are listed on your sheet others are welcome to set in with that we are a jerk.