ALC-PEER

We run. The warm going to go ahead and get started we do have a supplemental agenda there's a little bit discussion on that right now Serena wait to ask for motion to suspend the rules on that but with that we're gonna go ahead and get started with the agenda item B. one. Thank you Mr section B. or items held from the previous meeting there were three items held in subcommittee from last month's meeting they were not release they'll see to the items rainy day fund transfer in a restricted reserve fund transfer or approval items the last item the cash perforations Review item B. one is letter from the governor to transfer seven hundred fifty thousand from the rainy day fund to Arkansas rehabilitation services this is to support will services for the blind. B. two is a researchers are fund transfers for the department of military Arkansas National Guard this is five million dollars to support the mission of the National Guard foundation a providing charitable and educational support to members of the National Guard dependent survivors veterans and other charitable organizations that support veterans communities. B. three is a cash appropriation increase request this is for parts here jim tourism division of heritage this is a request to increase the cast of operation by two hundred fifty thousand spinning forty will be used to disperse a donation from the Attorney General to the Sultana historical preservation society this year those are the items were health no less I thank you members first up is the one we have any questions on B. one this is the seven fifty thousand dollars FOR World services the blind. I do have one question we have anyone here from. Thank you if you could just go ahead turn my back on and I guess might be easy is just for you all to recognize yourselves and then my general questions you can proceed after is just can you walk us through what you're doing with the seven fifty thousand I mean people you expected impact in that sort of thing would you expect your outcomes to be with that you're recognized absolutely Joe Baxter Commissioner rehab services. Okay good morning members trust life for general counsel Arkansas rehabilitation services. Amanda Baudouin CFO FOR World services for the blind. Sharon Giovinazzo CEO at world services for the blind I thank you again so just going to repeat the question seven hundred fifty thousand dollar request what we are looking to do with those funds my understanding it's a building project I mean people do you any on dissipate for example I mean people get into state your service with you know the building what are your outcomes that you expect from the funds and that sort of thing you could just give us an overview sure thank you so much Senator so this is for therapeutic group home for world services for the blind for the last seventy five years World services for the blind as provided vocational opportunities to people who are blind not just in Arkansas but across the nation this is a project specifically to focus on people for home and community based services under the waiver program that have intellectual and developmental disabilities co morbid with blindness the expected impact of this project will be to serve twenty five people twenty four permanent to transitional rooms and one respite room for people who are taking care of their adult special needs child that maybe or but it is going on vacation and so and so be a transit room that will cycle people out of as our enrollment for our on campus need has went down for vocational clients we identified a need with more than three thousand people on the waiting list under H. C.. How many community based services and we decided that this would be best served to convert that part of the campus not build anything new but to utilize our existing footprint in order to do that so the first thing that needed to be done was the mechanical systems which we did campus wide we did a three and a half million dollar investment for that and then the group home and so we're in the process of remodeling the north side of the campus which encompasses two buildings that will convert all of those rooms and a single use rooms handicapped accessible everything that's needed common areas classrooms and staff offices as well. That's the short answer. So on the seven fifty thousand going to be utilizing it for remodel project or construction project I wasn't it's it's a renovation project using the existing footprint on our fair park campus okay it the eight the entire project looking at the look back funds as a new market tax credits called it for the three and a half billion that was done originally for the mechanical systems that was done between nineteen and twenty. In the twenty one and the project for the group home as well as some other infrastructure upgrades and need to be done it's about an eight million dollar project total and so this seven hundred fifty thousand will go directly to the renovation project okay all right thank you members we have any other questions. All right C. twenty seven. Good morning thank you Mr chair I would just like to say thank you all for all that you do of your facilities within my district district thirty four will soon to be seventy six so thank you so very protocol that you do for those persons that we have in our districts thank you so much for all that you join a Springer. All right Senator Irvin you're recognized just quick question are there any consultants that are going to be paid out of this money retainers that that we need to be made aware of. Nine. Okay. All right thank you I believe I have a motion to approve by Senator Chesterfield I have a I have a second. I have a second by Senator Rice indiscretion on the motion seeing none all those in favor signify by saying aye aye those opposed motion carries. No is noted Motion carries of restrict reserve fund transfer requests the Arkansas National Guard. Thank. And if we could just a those that are here with Foundation the go and come forward and maybe just take a couple of questions. Our if you all could go ahead recognize yourself for the committee. Major General can't open the agent of the Arkansas National Guard Scott staying Department Terry chief staff. Thank you for executive director of Arkansas have large numbers do you do that one more time Sir Clark on. Thank you. Damon Clark the executive director of the Arkansas National Guard foundation perfect thank you very much if you could just kind of the same question if you can kind of walk through which I plan to do just briefly with the the you know five million dollars kind of what your vision is moving forward thank you senator we have got a fifteen million dollar campaign to increase our ability to service national guardsmen and their dependents and their survivors and veterans communities across Arkansas those funds will go to help increase our ability to support that goal store in survivor families the National Guard has a certain niche for survivor families in that several of our following guardsmen are not recognized as follows fallen soldiers by the department of defense or by many of the main line charities's support gold star families because their destinada Kerr while they were on a period of active duty Arkansas has in past years experience a high number of suicides many of those suicides you're not occur on duty therefore there are dependents and survivors do not receive support from the apartment defense that's our niche that's our mission we take care of those families that are taken care of by by the Department offense or by some of the other larger nonprofits the second project areas education scholarships for guardsmen we have self funded this for about fifty years out of proceeds of our state sponsored life insurance program which is. Authorized by the federal government and under state law transfers from the proceeds of that life insurance program went to build up what was originally the National Guard of Arkansas. Trust and was in twenty thirteen turned over to the foundation and with that we pay scholarships to guardsmen their survivors and their dependents we're increasing our scholarships from seven hundred fifty dollars a year to a thousand dollars you're in it And increasing the availability instead of just covering degree producing programs will also be able to cover trade schools and certificate producing programs for spouse's independence and will help we hope with retention rates for Arkansas guardsmen will also help us cover down on other literacy issues for guardsmen we have a significant issue with training guardsmen on how to respond to other guardsmen there in crisis with regard to self harm and we hope to be able to help out with Literacy and workforce development with with these funds to make an impact in the under military family relief trust fund we administer parts of those funds with monies that we received from the State of Arkansas each year those monies actually go to Military Department under previous legislation you're all of authorized us to receive a grant there's a rule change pending that will make us the the tags designate you for processing of those grants but there are certain restrictions on what that trust fund can be used for in past years we found that our military soldier and family readiness coordinators are having to reach out for community block grants to help our soldiers in situations that are covered by the military family relief trust fund France's the death of a of a non DOD dependent or other situations where. There are eligible for the trust fund but we will but we still need to find a way to support those families in some cases we're helping them aboard homelessness in their communities the youth engagement we merged earlier this year with the former Arkansas National Guard youth foundation that foundation provides scholarships to the graduates of the National Guard youth challenge program. Program on camp Robinson we currently have twenty two graduates of the youth challenge program in college that's due to the work of your Arkansas National Guard but we don't have funds to provide them with educational stop ins the youth foundation is previously worked provide those scholarships they also work to provide medical care for the cadets that are in that program the normally assigned us for about four months each they often come to us without insurance coverage and right now the foundation provides funding so that those that if there is a kid to become six or sick or injured in training they can be taken down essentially to. To a local agent urgent care and receive emergent. Care for whatever their issue is and determine whether they're cleared to go back into training and complete their degree program or whether they need to go home and heal before they can continue their training at a camp problems and health care assistance senator one of the big issues we have all of our guardsmen when they and listed seventeen eighteen nineteen they're ten foot tall that You bar bar spit bullets and I don't need things like like insurance and then later on we wind up having to help them when they're twenty four twenty five twenty six and now there's a wife and a spouse and somebody sick and while they do have excellent healthcare coverage tracker requires two months premiums be paid in advance and we often get requests from guardsmen who were missing work because someone in the family is sick and they don't have the money to cover two months in advance premiums in order to get their family covered under the military programs the other issue we have Normally whenever we mobilize a task force like the seven hundred and fifty man task force that will be mobilizing shortly after the first of the year to head over to Europe and In the Middle East we generally have an issue with dental care member guardsmen went fairly low participation rates and in the dental program so we'll be offering ways to incentivize young recruits to take our dental programs in our tracker programs. Enlistment so they begin paying those premiums from day one and that becomes a a permanent part of their guard experience the National Guard legacy programs part of that is the Arkansas National Guard museum funds from the former National Guard association Arkansas insurance trust helped create the I. the Arkansas National Guard museum years ago it also helped create Armstrong chapel which is on campus Senate also helped create the fallen soldier memorial which is on camp Robinson but this looks towards the future of our separating guardsmen one of the things that we see Senator as we have a danger zone one guardsmen separate the first two years after they separate from the National Guard the suicide rates go up significantly and that's not covered by the department of defense and so we look to help those guardsmen who are separating after periods of service often overseas to maintain their connections with Arkansas guard by fostering retiree events where we can bring them back in and help them continue to experience the military family that that they experienced during the deployments center. Thank you and I appreciate that back when we originally talked about this and in the you know prior to the session this was a one time asked you know this is going to feel the needs essentially forever more was my understanding when you all brought it and so you just listed a number of things that you all do which were very thankful for how is the rest the capital campaign going and are you all going to be able to reach your goal of fifteen million and and if so I mean how does that how long it you know. How long is this five million going to last when we're talking about all the services you're looking to start providing again because I've I mean it you know it's a one time mask we're not going to need to come back but we've got a lot of things that you look like you're going to be operating there are going to be on the line cost center that we see that working. Sorry number ahead Senator the the campaign is a fifteen million dollar campaign on the Mississippi National Guard describes the border from worst operates a fourteen million dollar foundation. we see this is playing some of these needs are dependent on the performance cycles last time we mobilize as many guards minutes will mobilize next year I believe was in twenty seventeen we Senator group co so So every time we mobilize there's an after effect of that in so next year is is a big mobilization when to force a lot of what we have done over the last year most of the money that's currently in our endowments as I said earlier came from his come from guardsmen paying their insurance premium payments for the state sponsored life insurance program what we see in a day over and above this appropriation ended and divisional requirement for about eight and a half million dollars most of the support for our partner organizations the National Guard association Arkansas and enlisted Association of Arkansas we partner with the law the defense contractor symbol which. Make the products right here in Arkansas places like Camden and so we've been working over the last year to increase. Our staffing increase our marketing increase Our ability to go out to those larger companies and bring them on board to help create them down once we need to Parmalee fund these programs on the issues that so some of this is scalable senator one of the big issues a guardsmen deal with its include a project areas is child care the average the form below in Arkansas guard gets paid about three hundred fifty dollars a month for coming to drill his child care costs when he can find it is about two hundred dollars a month so one of the things we're looking to do is a part of this capital campaign is how do we increase the capacity for child care in areas where national the fifty two locations across the state were National Guard facilities operate because we're not like their force we can bring everybody on to Little Rock Air Force base for the child care and real we can so I can't turn that whole switch on the mall I wish you could but I will scale that up as the case is the capital campaign increases we've we have in the last six months make contact with another other a number of other foundations around the state that we're we can partner with them where there a lot there interest in our interests align for instance in with the blue and you foundation from Blue Cross blue shield we're helping we're applying for grants from them to help us with the need for health care for our cadets there participating in the National Guard youth challenge program out on camp Robinson but but as far as the total campaign the total campaign is fifteen but you probably really only need thirteen five from was doing some quick math that we have about one point five you have about one point five that you've raised through the campaign so far as that just now let's that's our original base amount okay so as far as other. Parts of your capital campaign this is what I'm trying to ask maybe how much have you all been able to achieve in realizing your total capital campaign fifteen million not counting what goes in from the base which is the premiums outside of this five million dollars how much have you all been able to raise so far center this this will be the first and if there there have been a couple other small contributions realize we had never made solicitations for private donations prior to this year. And so my concern is. I mean if we're not if you're not successful in getting your full and down a fifteen million. Then then what happens you so you to scale down the list of things that we're talking about doing will help pave for less medical bills will help pay for less dental care will help pay for less childcare but that would only. I mean the way that I understand this would work is you are going to take the five million dollars set aside you're not gonna spend it but you're going to spend off the earnings that may be achieved from the five million right that's how you don't come back to us asking for additional monies and so but if you only do that whenever you've raised. You know amount the amount significant enough to support. You know the the earnings I think I'm just trying to understand how it works out what what the game plan is because if we've got a fifteen million dollar campaign we're gonna have raised five we got another one point five that we normally have because their premiums. And we're creating an endowment wanting to do all of these things how are we going to be successful that's all I'm asking we're gonna we're gonna be engaging with high net worth individuals and other private foundations that can that can contribute to this cause okay the issue Senator the reason why we've had to kick this off is. With the exception myself who's retired and one other retired guardsmen almost every member of our board currently serving guardsmen these are people that know high net worth individuals or have interactions with with With other private foundations. We have so we're we're to the point that we're increasing our ask for these for these other organizations but we are a partner organization to the National Guard association of Arkansas in the list of social action in both those organizations have a cadre of corporate sponsors that general that annually support their organization's they all have foundations they all have corporate giving programs but there has to be work done to to elevate your program to the point that you're able to go out engage with the with organizations like or Lockheed Martin or Collins Errol Smith or be a E. or number of the other corporate members of our associations to be able to engage with them on more than simply membership level but to truly engage their their corporate giving in the last year we've we've the association is created a partnership with Walmart they sponsored a gold star meant force that are in our state conferences this is a this last year so you're looking at a foundation that has been inwardly facing and largely focused on how do we appropriately expand the revenues that have been generated from insurance but we have also are the reason why we created the foundation twenty thirteen was to take over the work of kind of a coalition of small nonprofits and charitable entities that sprang up around the guard but didn't all have the corporate governance in the management to maintain Maintain all the records and have the annual audits and do everything necessary so we. I have taken over management funding for the museum we've taken over management of funding from the former youth foundation there's number of former entities that have been consolidated under under the foundations flag and we have managed to do that internally in the past but now it's time to be able to put these all these programs on a permanently funded basis and be able to take care of our guardsmen on a more reliable less of a hand to mouth way and more in a in a permanent way senator yeah and that's mine I mean I think we share this this I think the same vision yes OFC about for my my concern though is is that being able to be permanent if we are not able to achieve the rest of the eight point five million dollars and fundraising that's needed you have to set up the full fifteen to carry out the vision and so hopefully you all are able to do that C. R. I'm sorry Senator Hammer. Thank you Mr over here to the far left just point couples clarification I thought I heard you say that you took over the use challenge account did I misunderstand that are not not used challenge senator the that the former National Guard youth foundation okay and they did support primarily the National Guard youth challenge program maintained you can't okay I'm all given try to give quick questions with quick answers so did our that's right did did you absorb any of their money or through the of or being of any of those entities you just reference does that go towards the total fifteen million dollars. What happened to the funds to those that you absorb if indeed there were funds there were fun senator we absorbed about I want to say eighteen thousand dollars from the youth foundation we also took in a little over three thousand dollars from the four minute man youth camp which was simply a fun not really of a a foundation the museum originally they created endowment with this for sixty thousand dollars back in twenty fourteen I think that is grown now to about ninety thousand dollars they use those funds annually to to help preserve artifacts require artifacts for the museum okay so all those funds going to be put toward the long list of things that you're trying to do with the fifteen million. That's correct center okay and then. A I guess it would be nice to get a list as to how much that totals because I think that would go in on the change that you're trying to get to on the fifteen million if you're absorbing other funds how much does that total up to and then secondly do you have somebody you you talk you throughout the names of some some high profile entities do you have somebody hired or retained that is going to be helping you secure funds from those individual from those high level entities you mentioned awhile ago we do not at this time Senator so you have intentions of hiring someone. That's a possibility Senator okay or that will be funded out of private funds under. Foundation fundraiser funds. Out of the foundation funds which at this point are all private funds I'll stop there thank you Mr. I thank you Senator Chesterfield you're recognized I thank you Mr chairman thank you all for being here this morning you referred to the inability to provide young people in the military was the necessary childcare that they had that they need to understand that correctly yes under. Is the pre K. program that is sponsored by the state available to your individual so Sir. Senator out I believe the issue is that there it's not available for weekend service I thought and that's certainly that's the biggest demanding of the child care organizations around the state are open on weekends okay got you thank you. Centerman. Thank you I guess just a mess questions for staff at this previous meeting we received a letter from a member of the legislature and outlining at conflicts or at I guess just interest with these three requests. And I'd like a status update on that. Senate and it is probably for you all just as far as you know we had a disclosure Senate Johnson's wife is a was a fundraiser for you all I think for these high net worth folks previous to if you don't mind is giving I think what you're asking for is an overview of we we we we need an up I I'd like to know an update of that status because that was given to this committee at the last meeting that disclosure was it was a and it was given to a L. C. not even okay that's correct it was not given to this peer subcommittee was given a LC and see if you can just give the status I guess of I just like to know the status of where we are with that situation Catherine Johnson is no longer employed by the Arkansas National Guard foundation okay. And then my second question is back to it Senator Dismang discussed Is the intention to a part of this money into an investment account and a cure like accrue interest off the five million. You senator that each one of these part yes senator each one the programmers and outline has a a fund raising goal that would fully fund all of the activities that we that we seek to conduct under those seven project areas that outlined earlier for instance with the gold star families what will it mean that's not my question I'm sorry my question is specific to this five million dollars in front of me that I'm looking at is it your intention for the foundation to take this five million dollars and invest it with some sort of investment firm. And then live off the proceeds of that. To find the programs that you're discussing yes. Okay. How. How these are taxpayer's dollars what level of. I surely do I have. That because I've invested money with certain people and it's gone really well and I've invested his money with certain people and it's not going really well so that's my money and I take responsibility for my money I'm sure this is taxpayers money and so that makes me. I'm not sure how I feel about that to be just really Frank with you you know I'm a huge supporter of everything that you've just discussed huge supporter I've been a Speaker at the youth challenge programs I've at their graduations I love that this is a this is a request of taxpayer dollars that you and your foundation and I don't know who's on your foundation I don't know who's making those decisions I don't know if you're going to invest it with the best people in the world or if you're gonna invested with someone so as buddy and it may even I'm I don't mean to be flippant about that I'm just this is important because this is a lot of money that we're asking here so is there is there of a board that directs these decisions or how does that occur there is senator there there is a Board of directors that is comprised of elected members of the National Guard association of Arkansas elected members of them listed Association of Arkansas we also have some outside directors and arts art necessarily associated with the military we have three financial planners that are members of our board we have an investment committee that oversees the work of our investment adviser we have quarterly board meetings to review the status of our investments we have an annual audit that is turned into the State Military Department we we have been in operation now since nineteen sixty nine center we're not. We may be new with this announcmenet but operating the insurance process that nineteen sixty nine we've been audit there every year and we have a track record of being it we we target a return to the endowments within the foundation of four percent a year with about one point two five percent currently dedicated to at to the administration administrative cost even in the down market this year we still had income from our investments of about eighty thousand dollars to fund they have programs that were outlined to be supported out the various endowments under our fund it's low investment adviser but we we provided the names of our investment advisors to the well Sturch say that to legislative audit I'm not sure if that would if that I got the question from somebody on the Committee earlier I can provide you with the names of our our investment advisors we review that all about a three year basis who's who's actually handling the return on our phones so we have a track record of of managing the state's funds and I are managing funds in an inappropriate way and well and and now the stop at that I mean I I appreciate that I'm just we are getting now into as state legislators into a private foundations. operations because of this money and I'm not sure if I. That's that's. That's something new and I'm I'm a I'm just a little nervous about that because I don't know if that state level of. In query I don't I don't know if that's a good thing or bad thing I can tell you that you know what was reported in the paper from what was paid you know in consulting fees was in my opinion a lot of money and so I just I'm just nervous about doing this the taxpayer's dollars even though you're incredible and I love everything you're doing it's just really a function of what we are supposed to be doing taxpayer's dollars and I'm concerned about that thank you. I thank you Senator Hickey you're recognized for a question thank you I'm a thirty year left appreciate your being here today appreciate what you do but of course we're supposed as these questions I'm going to Henderson center of along the same lines of the Senator Dismang Senator Irvin. So I guess I'm a little confused now so the principal the five million dollars you're never planning to spend that is that correct. Senator we we would prefer to use that to initiate each one of these these project areas has an endowment associated with it and we would like to use that money to set those endowments up for it with a funding source that we can use to support these programs on a regular basis okay back to my question respectively you can find under five million dollars. Are you going to spend the five million are you just going to spend the earnings interest off of those. Eight senator our plan. With this being one part of the case of the campaign is to invest the five million but if we need the five million to support operations over the next and to all the rest this money is raised then we could potentially use it for that Senator okay. Okay with them then I'm not for sure you don't get into some other aspects I mean if you're going to be cold mingling these funds as other funds are going to come in or you won't keep it in a separate account you're being a separate account and Senators we received Frances we were recently received her thousand dollar grant from a military family relief trust fund the in a way that we had to sign with the military department required us to keep those funds in a separate account. My mistake in here had I not heard that you all were willing to come to us with for a lesser amount. As those recessions not taking place here in the last week or two no center okay. So what you're saying is is your intent it your intent nothing Senator Dismang without your intent that you're just going to park the five million dollars. In an investment account. If you do that where were those going to be. Are you asking what the I'm asking who your broker is I'm asking you know who your financial person is I'm asking which bank is yes Sir that's what I'm asking Sir we we bank with Arvest bank that's where the military family relief trust fund is currently located we use lighthouse financial is the local broker for our investment adviser and we giving just second I'm I'm going to say the wrong name if I don't look at something real quick. That the actual Capital equity at. I'm law say the wrong name of the of the the company actually holds a fine senator I can I can send that to you but you're planning on keeping those separate from your other that's correct center. And what we've already talked with them about these will be on a separate account from our current element. If I heard you a minute ago your your intention is is that shall like to say that you get like a four percent return. That that's the target center yes so if you're really not planning on using the five million million. We can basically just looking giving you two hundred thousand dollars a year. And then you all can come come before us see each year so that we can see where the money was spent we could ever report to reply at supplied to this committee. To make sure that everybody within this body is an agreement to it with that be a problem yes Sir I I don't think two hundred thousand would would again that's is a down payment on a larger capital campaign we do supply the military department with our audit annually and it was provided earlier to the bureau of legislative audit backed the follow all it was done was provided on Friday so you can see where the funds were utilized so you're intent really is to spend the five million. Because if we were if we were willing just to give you what the interest was gonna make off the five million which is what I thought was alluded to at the beginning of this of this thing. Then you should be happy with that but what I'm hearing is that won't work so your intent really is to spend the five me. Senator the the five million would make it scalable it would make this better be able to do some of these things in the lieu of any other funding but we don't we're not done with With raising campaign raising funds at the at this point. Thank you Sir. All right Senator Hammer. Thank you questions you all in question to the chair please and please don't miss understanding these questions is people not being supportive of the cost of the mission but do you because this is going to involve investments do you put that out for competitive bid as far as who it is that manages your your foundation account or is that already preselected and determined. Sir we have revised that we have we have put it out in the past and the the current. Group that we've been working on a with light house I believe with we've been with them for two years prior to that we were with bass and bill and in another year or so we will put that out for another bill. so so it's there is a. Not connected to this appropriation but on a regular basis we do we look at that all right can I ask your question. I just for my own knowledge Is there something unique about this request. So that would prohibit other state funded institutions that may have foundations from coming to us and asking for money for their foundation or is just strictly unique because it's the National Guard. Or just opening up the door to other foundations to come and ask for money like they are I think DFA is looking me put their heads down to probably not want to come answer and I I don't know I mean I don't know that we I mean I don't know that we set up. Seed money and foundation money in part of an endowment before for nonprofit I mean I would say typically as you have things come through it's for one time expenses Would you typically capital nature but I don't know the answer that it may be the if they can answer your question there I I don't know. I'll chair's coal or the one of bring to the table or not but I'll I think either out of talking now to see if they can answer that question. And we are waiting on that we'll I'm simply want to bring them up for just a second but I want to turn on at that Senator Irvin ask her questions so we're kind of moving along thank you. Well the same question I'd like to know if we've ever done this before have we ever used this is dizzy FNA have we ever use taxpayer dollars to set up an endowment because that's what we're doing here this is not a capital improvement project this is not a funding of a certain project. And this is a. It's private nonprofit organization from what I understand. So I'm not sure if we've ever done this before because I don't. My concern is the level of oversight over taxpayer's dollars because I can't I can't I can't I mean unless you're foundation of board's going to come before us and give an audit or something I mean I don't know how this works to be quite honest with you. Senator Scott Stanger a jeep staff for the military Department Terry's been tagged for this to be a throughput agency and so previously with the foundation for a smaller amount week we developed an MO you that basically gives us me access to their books any time to include their audits so we can bring that as far as the department audit to like audit or whatever to answer whatever questions we have to to be honest with some of the same questions or self as a throughput agency but we have done one of these kind of demo used before to include currently going to the rules promulgation process to establish the rule on how trust fund money is set out the way we currently do it within the funding we get to the checkbox system on income taxes. So we okay I we own some of that responsibility okay I understand that. I'm uncomfortable with an MO you I think you need there's this is going to require I in my opinion you would this what should require some legislation to set up a structure here because I'm not comfortable with the five million dollar. I'm just not comfortable with an MO you I'm not comfortable with rules and rags are promulgation unless you have specific statute that's or access to where there are some real accountable measures just bait I don't need to just sit here and tell you what I want and think it needs to go through this legislative body to really develop that type of a structure legislatively so that we have real clear accountability for the taxpayer's dollars however this is going to be sent by appreciate that answer very much that does help me a little bit. But it's probably something that really needs to go before. I'm I'm or legal structure yes man if we if if that's decision the Department were not opposed to that I mean and we can help build that process is well that's probably something but Mr Walter you wanna answer senator hammers question in mind if we ever set up an endowment before when you can see it's good recognize yourself for the committee and then senator Hammer did you want are you. You might have your **** and restating your question. Thank you Mr the question is have we done this before is this the first time that we're doing it and does it create the potential for any other entities that are dependent upon state dollars to expect to be given the same treatment same opportunity that we're giving here today. Tumblr Walter on the secretary of the department of finance administration of I'm kind of I pulled the DFA team here today and we don't know of any incident incident where this is happened before what we would do we lacked the I'd like to work with that of the department military and determine if there are any and the and the legality of it would be more than happy to come back to you I don't know what the urgency or the time on the five million dollars is so I can't dress if it needs to be addressed today or can it wait until September. And Mr up that everybody in this room wants to help I just don't want to come back and bite anybody in the room either that's all I gotta say thank you. Yes Sir thank you So with where we are I think I've got about half my room gone if you don't mind we're going to recess for just if we recess for three minutes and I'll come back to the chair so with that. We'll stand in recess. Your seats we're going to get started here. In a minute I have. Members of you can go ahead grab receipts. If you don't mind we're gonna go ahead dismiss you all I think there's a conversation that the members would like to have make sure they understand you know how this works and and that sort of thing and then we'll go to pass over the side of run down and come back I'll state that we go back into actual meeting but again we'll circle back up with you guys you just minutes members with that we're going to come back at a recess just restate we're going to pass over this item for right now that last conversations to occur maybe a little bit more understanding about the intent with the five million dollars and we're going to move to item B. three. And so with that if we could have a go ahead three min share on P. three this is a cash appropriation increase request is for the Department of Parks here's and tourism is two hundred fifty thousand again the speeding toward used to disperse donation from the Attorney General to sell ten historical preservation society all right thank you have anyone from the so Tanah. The store will society not sure I'm saying that right. Yes Sir if you could just recognize yourself of the committee we're going to kind of go through the same process just asking general what you intend to do with the funds shall be utilized outcomes that sort of thing. My name is John Fogelman retired circuit judge. I am president of the sole Tanah historical preservation society were of five oh one C. three non profit that was formed in order to recognize the people of the sole tanna the if any of you aren't familiar with the sole tanna is the deadliest maritime disaster in American history yet few people know about it and our goal is to make certain that those men and women that were only sold ten of the dad are remembered and recognized by a country that they fought to preserve. Thank you an instant specifically you know the release from the attorney general's office have you all plan on utilizing those funds were with a be held or the and I know that one of the questions is coming as it was there any you know consultants paid from these funds will be paid on that sort of thing serving dresses we are in the process of raising ten million dollars to renovate and add to a gymnasium that the. Merion school district has donated for use as the sole tenant disaster museum. The ten million dollars will build the museum add on to it and pay for the exhibits that are fabricated and added there we to date including the two fifty we hadn't gotten yet. is we raised five just over five point three million dollars a little over a year ago we only raise one point two million so we're making good progress on that go. we do have a consultant the money that we have raised the money that we have committed not a dime of it. Is going to pay the consultant the consultant is paid out of money from the city of Marion to advertising and promotion commission they've set aside certain money to help us with the museum and they are paid paying the fundraising consult. All right thank you Senator Solomon. I'm over here yes and course no state money is going to help all of northeast Arkansas this is the fault and a but certainly the salt and a project will be a of farming all of northeast Arkansas and we as a lot of us over there support what's going on with the salt and appreciate what you've done. Thank you Senator Solomon we do and we have got a of some great architects ITS Hazelett studios out of Memphis who have done museums all over the country including the Scott family amazing amend Bentonville really good group of architects and this museum will be of of a string of museums that are along the Delta including Johnny Cash a five for human wavy lake port down south Arkansas The Hanson park archaeological museum in Wilson it is going to be a hub our feasibility study that was conducted by the city of Marion it was done by Well name Owens and updated by the University of Arkansas at little rock economic division man by the name of Hamilton Dr Hamilton and it projects will have fifty thousand visitors a year most of these will come from out of state. Of to date we have a small museum of about a thousand square feet and so far we have had visitors from all fifty states and fourteen foreign countries if you can believe that and that is what is remarkable to me. Thank you senator Chesterfield motion of property and. All right members with any other questions all right seeing none we have a motion to review of a second. We have a second by representative fight a new session on a motion. Seeing none all those in favor signify by saying aye aye those opposed motion carries. Are we gonna move to see one. Thank you Mr were in the items for approval section of the agenda of the first section CC one of the very simply appropriation requests this is a letter from the department of commerce division workforce services it's for eleven million an appropriation this is the modernize unemployment information technology systems and hardware ACT six sixty seven of twenty twenty one dedicated point fifteen percent of taxable wages collected from April first twenty twenty one to December thirty first of twenty twenty three to modernize you lie information technology. I thank you members who have any questions on C. one. Seeing none the motion to approve a motion got a second all those in favor signify by saying aye those opposed motion carries the one I will go ahead and just run through. Thank you Mr chairman section D. these are the American west you can act appropriation requests there are three requesting the regular gin and they are all Arkansas steering committee awards the first one the one is Department partition tourism's Division State Parks this is request a reality previously awarded funds the referee the original request was to implement broadband at twenty seven locations of state parks welcome centers easements at the project Lee Catherine state park result in savings. Lessons you six thousand from the savings for two additional broadband projects that were not included in the original request on page for the schedule to show the progress of each project. The next item is on page five this is for the order states that the prosecuting attorneys it's four point five million and this is to relieve the backlog of cases that is attributed to suspending in person proceedings during the pandemic of funds to be used to hire additional deputy prosecuting attorneys and judicial districts they continue to have congested backlogs. next is page twenty seven. Page twenty seven is the three this is Arkansas public defender commission is also four point five million in similar to the last request funds be used to require the assistance of license attorneys and qualified staff in resolving the large number of cases Mr those are all the air appear quest on the regular agenda all right thank you members do any questions on the one. D. two Senator Ingram you're recognized I'm sorry I jumped the gun I got a question D. three I'm gonna bet I mention at the three you're recognized for a question Senate yes I'd like to get the of of I think is it Mister Robinson who who who runs the public defender's. Great go. Okay your repairs. Yeah and if you could just go ahead recognize yourself for the committee and then Senator Ingram you're you're recognized for your question. Greg parish Arkansas public defender commission thank you Mr chairman of. This for have million request I guess I'd like to ask about some money that is been expended before of I think we're all aware that evidently of the public defender's office hired of some a legislator that was in add an eligible to serve as a public defender is in is that correct that's correct senator okay and of you know how that occurred I I scratch my head but my guess my question is of. that individuals been paid what about nine thousand dollars for. I think it was about six thousand your take okay not quite nine thousand I don't think it was about six thousand I think so and and senator. What we're what I was relied upon is a past H. the opinion of the law but senator garner has reached out to me specifically trying to make arrangements to pay that money back himself and I've met with PMO by a process for that to occur. And I'll senator garner of a telephone call right now. Okay so so that six thousand is going to be rebate that yes Sir please offer to repay that money yes thank you then that's my that is my question all right thank you members with any other questions on the one two or three seeing none. But in a motion to approve got a motion to approve of got a second any discussion on the motion seeing none also favor signify by saying aye those opposed motion carries we just approved items T. one through three I'm the one. Thank you Mr section II is the insurance department appropriation request if a reclassification request. In fiscal year twenty two Pierre any L. C. review to request for miss lands federal grant preparation for the department of insurance the department has since learned that the funds came from the federal American rescue plan act the letter explains no funds have been expended the Department resubmitted items as air pure quiz and the first questions for five hundred thousand air PCM three for system and program modernization the second questions for little over a hundred sixteen thousand air peace being three to expand the public health workforce in responding to people with disabilities and older adults and these items are approval items. I thank you members to have any questions on I to me one. No questions I need a motion get a motion to approve item the one I've got a second all the area any discussion on the motion seeing none also favor signify by saying aye those opposed motion carries item F. one. Thank you Mr section F. is there anything release requests the first item the only items letter from the governor to transfer one point six million from the rainy day fund to the DHS division of children family services the fund to be used for a foster family supplemental payments the staff reached out and learn to the payments will assist provisional relative fictive kin resource parents and this is in a time of rising costs of food gasoline other necessities could be a barrier to becoming a care giver is owner open on a provisional basis they are not eligible for full bore payments that are made to homes that have met all the requirements of the child welfare agency review boards minimum licensing standards the the executive subcommittee authorize the support payments to an emergency rule last month. I thank you members or any questions on F. one. No questions got a motion to approve I've got a second. Any discussion on the motion saying none all those in favor signify by saying aye those opposed motion carries the G. one through seven. Mr chairman sections either the these are the restrict reserve fund transfer recommendations. The first item G. one is I'm sorry the separate quests are totally nine point two five million transfers from the majority vote set aside account within their stricter Reserve Fund this is set aside eighty in the surplus income distribution import that's P. one on the agenda so G. one for university of Arkansas it's one million this is to provide support for the construction of the university's multi user silicon carbide research and fabrication facility next item G. two this is also universe Arkansas this is for three hundred fifty thousand is to maintain expand and support operations Arkansas center for school safety. Next item is G. three this on page five again University of Arkansas to million dollars is to provide support for the construction of the university's Anthony timberland center for designing materials innovation. Next item is on page eight this is G. four S. department of commerce Economic Development Commission it's three million dollars to support renovating a hospital to house a crisis stabilization unit in elder radio. Next item is G. five again Development Commission it's a million dollars the letter explains this would be to make a grant to harbor home for capital projects the agency reach out to us will reach out to let us know that there was a table in the request the grant would go to harbor house not harbor home the correct this correction will be reflected in the report A. L. C.. Next item G. six of this is again Economic Development Commission it's a million dollars into grant to make it grants the community school for the arts. And G. seven is on page eleven it's parsonage towards on Division of heritage it's one point nine million ants to provide assistance in establishing the national Cold War center on Eaker Air Force base in Blytheville. And then we have one more request this is not on the agenda submitted this morning and I believe the DFA's to come up to present its for energy environment two million dollars for the used tire recycling the county program there are no they'll be no vote on this today but it's just gonna be presented for the committee's information in A. L. C. will take actions item on Friday. Members we have any other questions on any other items one through seven center Chesterfield you need to. On which item. All right item six senator Chesterfield you're recognized for a question on this is just want to know where the community school of the arts is located. Or is it more concept than a place on if you could just go ahead recognize yourself for the committee and I think you've heard her question so you can see how Mr hammer. Good morning committee morning center Chesterfield jim Hudson to staff person commerce it is a very real places in Fort Smith it's an existing school that is focused on the arts and they're going to a capital campaign right now they've raised most of the money more than more than nine million dollars but I just wanted to know where it was I'm not opposed to the concept and I think it's great we have reps here from the school if you have more questions really I just want to know the location. I don't want to over think location thank you so much. All right thank you and in the hand outs coming out on the additional item again we'll take that up today but will considered fully L. C. and then D. if they can come forward to go ahead and present our or make comments on that letter while they're doing that would you mind repeating G. one please. Thank you Mr G. one that was university or. This is a million dollars for the multi user silicon carbide research and fabrication facility or music. He does a wonderful job all right with that you're recognized. Thank you Robert Breck Office of budget I hope I don't have to repeat the. The know what what is being passed out today is a request for one million dollars from your strict reserve account of this would go toward the tire recycling accountability program of these funds would come out of the restrictor is our account account that is pending the majority vote various improvement projects set aside this was the hundred fifty million dollar restricted reserve account that was established a recently. So if if this is done they would like for this money to actually be paid out of the post closure trust fund but there's no mechanism to do that though in lesser in session as so many of the planet this time is to take this money use restricted reserve funds and then in the next session those funds would be replenished out of the post closure trust fund there's just not a mechanism to do that at this time. Says good Senator Ingram you're recognized for a question of Robert what's the balance in that post closure trust fund I'm told it's around six million dollars and there's there are funds that are available for this purpose they just can't region. All right thank you do we have any other questions on the letter again this is art Senator Rice. All right Senator Rice as a most there another questions actually we don't. No motion on this item yet it will come up on in A. L. C. with legacy all right so with that do we have any other questions on items G. one through seven. All right seeing none I've got a motion to approve I've got a second any discussion on the motion seeing none all those in favor signify by saying aye aye those opposed motion carries items or item H. one. Thank you Mr chairman section H. these are the appropriation and or fund transfer requests there was a request to transfer nine hundred ninety six thousand appropriation and funding from the sustainable building design program to Henderson state university this is for the department has for mission to build a division Building Authority the spending thirty will accompany alone to address to H. FAQ projects at chiller replacement a dorm and replacing of units on the roof of their gym the loan agreement payment schedule is included with this request on the following pages. All right members we have any questions on item H. one. Any comments all right I'm gonna makes one is reviewed without objection. I one through five thank you Mr chairman section I'd these are cash appropriation his request the first one is for Supreme Court of Arkansas five hundred seventy thousand it's pay for is to pay for increase operating costs due to inflation and potential one time expenses related to the new building. I to use on page three it's a department of corrections the letter from private corrections for two point five million it's to cover the purchase of capital equipment such as kitchen laundry equipment through the remainder of the year. I three is on page four it's a letter from the department education division of higher education it's sixty eight thousand a preparation and to establish a line item this is upgrade the Division of higher education student information system. I for is on page five the letter from department commerce division workforce services it's four seven hundred twenty five thousand it's been an authority and is to add additional IT resources and fast track development to replace the current United system. Hi fives on page six this is from the Department military it's Arkansas National Guard it's two hundred fifty thousand spending authority this is to disbursed donation from the Attorney General to the Department military to make grants to the National Guard foundation. All right of a relentless of members we have any questions on item one through five. I want three five. All right seeing no questions. NO comments items one through five have been reviewed without objection items J. one through three. Mr chairman the miss lance federal grand quest section the agenda. The first item is for it is a loss of the courts this is six hundred thousand spinning authority to expand adolescent substance use disorder treatment services in the existing thirteen juvenile drug treatment courts it requires a twenty five persons the match about two and one thousand dollars. Next item number two submission loss of the course again at seven hundred fifty thousand then appropriation this is to implement and enhance operations of adult drug courts and veterans treatment centers I'm sorry veteran treatment courts it also requires twenty five percent the matches two hundred fifty thousand. G. three is department education division of higher education it's one point three million in spending authority it's to implement the transforming information technology apprenticeships now project and this one is a hundred and federally funded. All right members to have any questions or comments on items J. one through three. All right seeing none items J. one through three are reviewed without objection. Items K. one three two. You Mr a section case paper holding health. And there are two requests totaling a hundred twenty seven thousand appropriation of the State Bank department request twenty seven thousand for extra help match in the if a budget management services requests one hundred thousand for extra help. All right thank you members in questions on items K. one three two or one and two all right seeing any objections see no objections items one through two or I'm scared Katie one and two are both reviewed without objection L. one the shares section else over time appropriation transfer request this is for deep in a Revenue Service division it's four hundred thousand overtime the Division received thirty thousand overtime appropriation during the special session earlier this month and that was just to get to the month of August. All right members any questions on L. one any objection C. no questions or objections items our item L. one is reviewed without objection all right we're up for them. One through thirty five and these are the as required S. request that have come through. An education department education I'm assuming everybody's look through that list if you don't mind I think you have a brief summary kind of how that you don. That's okay yeah you're recognized to summer thank you Mr chair so in June LC approve five hundred million a or P. a preparation for the department of education for Esther grant funds to local school districts in July L. C. expunge the vote and move to having a proper request the appropriation and you it was recommended that the new request incorporate teacher retention strategies as advised in a memo from the US department of education on today's agenda is the Department second round request other questions for a hundred twenty three million to make grants to thirty five school districts the second hand that you have the schedule as provided by the department the shows a break out of the school district responses of those thirty five school districts eleven districts have plans that met the LC recommendation eight districts revise their plans to meet the LC recommendation in sixteen districts did not revise our plans and it justifications provided in the last call. All right members who have any questions on any of the responses items for him one three. Thirty five. All right seeing nuns just revisit we've got nineteen that will meet the recommendation ultimately in sixteen that will not and they do have provided explanation which many of those if already provided bonuses or intent or those of lesser amount of the different search circumstance but with that I need a motion to approve. I've been a motion to approve items one or M. one through thirty five I've got a second any discussion on the motion seeing none all the items then are approved Moving on to in one. Thank you Mr chair where the report section of the agenda in one is reports. for the Division workforce services ten if a transfer transfer reports and this they have special language in their preparation other requires report to a lessee showing all transfers of general revenue to the Department of Human Services on the second page table shows three point four million was transferred for a ten if it's been straight in program costs. All right any questions surfacing none one through four. Thank you Mr Rennie quarterly reports now wanted to DHS inter agency and inter divisional match fund transfers it shows a quarter of a quarterly interagency and the Division aspen transfers as required in their special language report shows three point one million transfers that's from the individual divisions fund accounts to the corresponding grant payment accounts. two is the Office of Attorney General Castleman fun and shows a quarterly cash account activity. For details six settlements and shows a balance of cash funds cash receipts disbursements in a transaction detail report. three is from state police it's report the shows asset forfeitures expenditures asset forfeiture expenditures for each quarter of the fiscal year the first page report shows thirty four thousand expenditures for the fourth quarter out of the T. P. C. zero one hundred fine is the fund for federal asset forfeitures and on the second page it shows eighteen hundred expenditures in the fourth quarter of the TPC zero two hundred fine and that is the phone for state asset forfeitures and then the last report is for its federal grant applications and awards and those of the all the applications award by the agencies in the last quarter of fiscal year twenty to twenty twenty. All right thank you Senator Chesterfield recognized for a question yes yes Mister chair I slept the other question on the S. R. funds yes we have taken the five hundred million back. One on one we going to distribute that to the schools are our way we're doing it as they bring back their plan or explanation than the amount that was originally allocated for them will be district yeah that's what we just did was for all those thirty five schools that responded attitude one prior week and and just to be aware members will most likely come in next week to approve another round of a request all right thank you so much right thank you any other questions of the reports in nineteen one through five. Is there a month reports P. one is a surplus incoming distribution report this report shows sources of unobligated funds and then the distributions from the rainy day restrict reserve and long term reserve fund as of the end of last month the rainy day fund shows ten point four million and distributions and the balance of six point one million there be a new balance of three point seven that's after today's two point four million transfers on today's agenda. There's just reserve fund shows a hundred and eighty three point seven million distributions and an overall balance of a hundred eighty seven point three if you take into account today's distributions of fourteen point two five million that new balance is a hundred and seventy three million the total cash are preserving balances one point two billion next report is P. two budget stabilization trust fund report and it shows the cash cash alone throughout the fiscal year as of the end of July there twenty three point nine million outstanding loans in the cash balance is a hundred and seventy six million. P. three is tobacco settlement report and gives a summary of income fund balances investments actual payments to the state and on the second page or all expenses by fiscal year the next report P. for existing social services report initials the fund balance and disbursements as well as the expenditures in each agency supported by the fun and the last report P. five as the American rescue plan report of the first three pages of the report show requests that were approved by the R. P. steering committee and that's what the state has discretion in awarding on the fourth page begins attachment a that's report of every funds that are sent directly to state agencies from various federal federal entities and the last three pages are attachment B. as reported there P. funds that were sent directly to institutions of higher education. All right members we are going to my understanding pass over the two. Is that what it was a farmer yes I don't be to assess the National Guard foundation Request a five million it's that's going to be held over at this point and then also members at your desk there is a supplemental calendar is going to have and I've I've messed up everything in front of me so I'm sorry. Secondly pick up sticks papers all right. So it's a member's what we're going to do on this just so you understand we receive the request for this supplemental yesterday around noon which would have been less than twenty four hours notice to have it considered in committee today this is nothing incentive projects that are to be considered but I think we would like a little bit more had time or you know lead time to be able to review these before we bring them up and so what I ask is that we not we just pass over the supplemental agenda or not take a vote on supplemental agenda which means that these items will come up on our next monthly report at there are there are four items in there are individuals here prepared to speak to those if you have questions we can take questions on each one of those items and I'm happy to have a discussion I'll leave that up to the committee. So. What I'll do I'll just go one through four and there's no questions and we are ready to talk about it then we'll move on if you do we can call the appropriate witnesses Ford center Chesterfield you're recognized on a personal privilege a who is sending the information to the school district because we got how many last time as chair of the department cation what they did they sent a of a survey essentially to the district's asking him to respond and ask those responses are collected they departments cation insures that everything's been answered and if their answer regardless I mean they can do whatever it says they send it to us the in for final approval what I'm trying to do is see what we can do to light a fire under those who have not yet responded fair enough and so that's what I that's my concern because we have less than a hundred. Districts that have responded so I would encourage the Department of if they're here to get to contact these individuals the school districts which have not responded and asked them to do so ASAP and I'm not sure of those that have not responded at all and how many just need some additional information provided you know thank you correctly all right with that so we're going to you just look at your supplemental if you have questions you'd like to discuss now you know let me know we're gonna bring people forward if not we will wait until the next month take these up so items a one on the supplemental. Hey to. Eighty three. Or a four K. with that we have no questions and so for those in the audience will bring this up next month and for those on the steering committee if you could just give us a little bit more lead time you know these things are planned out a month in advance we all know when peers going to meet and if we can get these items on so we can actually get them notify the public considered just supplemental counters I know we've been doing a lot of supplementals but I would prefer best we can to get away from that I with that appreciate your time work this morning and we are adjourned thank you.