Arkansas Legislative Council (ALC)
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- October 2, 2026
Unknown speaker
2:10
is he back here don't know right members if you could go ahead and grab your seat we're going to get started
right members are calling this meeting to order good morning good morning members at this time I want to recognize senator Stone for a
Speaker 9
3:02
morning prayer. Senator Stone Thank you praise your holy name dear Lord. I
Senator Matt Stone
Unverified
3:11
just pray that everything that's said and done here in this committee meeting today will bring glory and honor to you thelord let just let us be mindful just ask that you be
with our country and our nation's leadership dearlord we just ask these things in Jesus' name amen thank you senator
and members in your packet is an minutes from the last meeting I need a motion to adopt those we have a motion second all those in favor say aye opposed ayes have it and at this
time we're gonna recognize Doctor Carlossilva for the presentation of the August 2026 revenue report Doctorsilva if you would please you're recognized.
Speaker 19
3:57
Thank Mr Charman carlossilva Burereau of legislative Reearch today I'm here to present the August 2026 monthly revenue report we thought gross collections for this month at $1.34 billion there's up50 million dollars from the last fiscal each day those first two months of the last fiscal years around uh3.9% above there as we start looking down the line and we we take it all those off the tops you're gonna have a1.8 bill $18 billion for this first two months of the fiscal year that
is57 million dollars above fiscal year today and that is5.1% above those those first two months where we're gonna see here in the bottle we have include unemployment rate and labor force participation is the latest numbers we have at the time this report has been put it out as we look into the second page we're gonna see our accumulative deviation from the F andA latest forecast we have a a slight increase there of4.5 million dollars above forecast for this month continuing that that positive trend but if you look into
just the month we're gonna have $14.1 million from the august to August difference as we're looking through our page three and page4 we're gonna have our general revenue collections our first page as we we talked about last month the cigarette paper tax you're gonna see that that that difference there we had last month was a a positive difference now we have negatives just the adjustment last month we have the overpayment if you want to think about this on on that specific account now has been ad addressed if looking to the ear today you're not gonna
see that the large difference and then as we're moving on should should the other pages you're gonna continue to see the large difference on the dW wiring statement fees and fines and penalties due to the change by Ac 969 of2025 with the I will take any further questions related to this report we have a
Senator Bart Hester
Unverified
5:55
recognized thank you on on page four line three
the real estate transfer tax it it looks like from 2005 to2006 like they're consistent the market may not feel that way but our numbers are showing they're consistent do you know if that's is it consistent like residenttially or maybe big corporate things are selling do you have any breakdown on that? get it gets
Speaker 19
6:19
capped if you want to think about it there if you look into those tru months difference we eventually gonna reach that that the number of $2 million but I do not have any
sight right now specific for the real estate but I'll be happy
Representative Jim Wooten
Unverified
6:41
thank you senatorpresentative wooten you're recognized thank you Mr Chairman. Do on the inflation, how much you know gasoline's dollar quarters a gallon more groceries are higher food higher utilities are increasing what how much how much of the five
point 1% increaseries do you think is due to inflation we do
Speaker 19
7:07
not have any breakdown specific to the inflation again if there's something that you would like us to look into what how much of that is inflation but definitely there's inflationary pressures that would feel part of this report but there's no specific breakout as we need to break out specific regions and and how that's been working
Speaker 33
7:22
on but yes sir I'll be happy to look at that if that's we like it thank you thank you Mr Chairman. all right
thank youpresentative members seeing no other questions Doctor Silva, thank
you for the report. Reember that takes us down to item E, the executive subcommittee I'm going
Senator Justin Boyd
Unverified
7:41
to recognize my co-chair Senator Boy Thank you Mr Chair the executive subcommittee met Tuesday, September 15th and took the following actions recommended adoption by the full ALc of interim resolution 2025-009 by Senator Missy Irvin which is attached to this report and approved a motion to authorize payment of per diem in mileage to members elect for
atten attendance at interim legislative committee meetings following the special or general election in which the member elect successfully ran in addition the subcommittee heard the following announcement concerning the October ALC meeting schedule due to the schedule for fall budget hearings the ALc subcommittee meetings for October will be canceled with the exception of peer review and administrative rules which may meet concerning imminent need items on Monday, October 12th and in the afternoon on Thursday, October
15th. mattertters normally submitted to to the other subcommittees that have been determined by the ALc co-chairs of an imminent need such that they cannot wait until November Alc subcommittee meetings may be added to the calendar or taken up directly by the full ALC at itsoctober 16 meeting aggency imminent need requests for October should be submitted to the appropriate subcommittee staff who will convey it to the Alc co-chairs through Director Garrty.
Reports and requests for action usually submitted for consideration by the full ALc should be provided torector Garrty as usual I move adoption of the report
Speaker 37
9:19
including adoption of the interim resolution. all right members any questions on this item seeing
none do we have a motion or we have a motion from Senator Boy in a second. all those in favor say aye oppose the ayes have it thank you senator. It takes us down to administrative rules
uhpresentative Shepherd you're recognized thank you Mr Chairman.
Representative Tara Shephard
Unverified
9:43
the administrative rules subcommittee met on Thursday, September 17,2026 the subcommittee received agency updates on outstanding rulemaking from the 2023 and2025 regular sessions all rules were reviewed and approved as noted in the report. I would also mention since we we have a number of agencies here today that Senator deeses reminded the agency to get their
reports in by the first of the month so that those can be properly included by staff and just as when to make that reminder here today. So I would move adoption of the report thank
you Representative shepherd.embers any questions on this item? all right seeing none we have a mos and degree second we have a second all those in favor excuse me any discussion, excuse me. all right seeing none all those in favor say aye oppose the ayes have it item three claims review. I'm going to recognize senator dotson
Senator Jim Dotson
Unverified
10:39
thank you Mr Chair The claimsview litigation reports oversight subcommittee met on Monday, September 14,2026. the subcommittee reviewed 11 litigation reports and approved one litigation settlement. One claim was held by the subcommittee pending receipt of further information from the claims commission the subcommittee affirmed the decision of the claims commission as to all other claims on the agenda. I move adoption of the report Thank you, Senator. M members any questions on this item? all right seeing none we have a
motion. can I get a second? It was second any discussion seeing none all those in the paper say aye opposed ayes have it down to uhame and fish state police and recognize Senator Urban at this
Senator Missy Irvin
Unverified
11:25
time? thank you Mr Chair. The game and fish statelice subcommittee met on Monday. we heard testimony from the Arkansasame and Fish Commission regarding enforcement protocols and I move adoption of the report all right thank you
senator members any questions on this item? seeing none we have a motion.
Can I get a second? the second in the discussion seeing none all those in favor say aye oppose guysy have it. I'm gonna recognize Senator Bryant for the hospitals medicaid andvelopmental disability study. good morning
Senator Joshua Bryant
Unverified
11:57
Mr chair. The hospital Medicaid and Developmental Disability St studyies subcommittee met on Monday to hear testimony on the following items an update on the reimbursement rates under Living Choices Assisted Living waiver by DHS and presentation onorked consulting and workforce advisory group recommendations.
the subcommittee met again on Thursday to adopt the attached enema report which is F7 in your binder on recommendations concerning the Arkansas legislative study on workforce and social reform to meet October 1st,26 deadline. An additional update will be provided at the final ALC meeting of 2026 to inform ALC of further progress. Mr Chair, I move adoption of the report. all right thank you senator. Any any questions on this side of
members? all right seeing none we have a motion. Can I get a second? No second any discussion? right
seeing none all those in favor say aye oppose the ayes have it at this time recognized Senator Wallace for the occupational licensing review report you recognize. thank you Mr
Senator Dave Wallace
Unverified
12:55
chairir Mr Chair the occupational licensing revieweittee met on Thursday and we received reports on various occupational
authorization entities in group one. I move adoption of this report. all right thank you senator members any questions on this
item? all right seeing no we have a
motion. can I get a second? Any discussion seeing none all those in favor say aye opposed the ayes
have it and would recognizepresentative Wardlaw for the
Representative Jeff Wardlaw
Unverified
13:26
peer report you Mrir of the peer subcommittee met on Tuesday, September 15th. the subcommittee reviewed reports reviewed requests and approved the following various temporation temporary appropriations American rescuelan Act appropriations infrastructure investment and Jobs Act appropriations and appropriation transfers and restricted reserve fund
transfers. I movedoption of the report all right thank you Representative Bordlaw. we have
Chair
Unverified
13:48
a couple of questions. Senator Tucker you re you're recognized thank you Mr Cha. I just have a couple of questions for someone from
Senator Clarke Tucker
Unverified
13:54
AdE on the on the learns money. all right let me get some of them for the department up here please
or ning when you get settled in just introduce yourself for the
Speaker 69
14:26
Courtneyallisfod chief of staff department of Education. greg rogers department ofducation. Darrell Smith Department of Education. right thank you
Senator Clarke Tucker
Unverified
14:31
Mr Chair. I just, I really have we not the
first time y'all sat at that table in this meeting and I really have very similar questions to what I've I've had before the first man is for this 2627 school year how many approved students we have on
Speaker 75
14:47
the private school side and then the homeschool side. thank you so right now we're looking at just
Senator Clarke Tucker
Unverified
14:59
over 28,000 students in private schools and just over 21,000 homeschools so about49,000 approved overall and then you know a question I've asked before and we had had a little conversation about his is comparing the costs and I guess I'm curious from both the budgetary perspective and a cost incurred perspective of
a student who's going to private school as opposed to a student who's going to homeschool if we've run any analysis about what the budget should be for a homeschool student relative to a private school student and then second that kind of forward looking and then also backward looking for the
costs incurred how much those students in homeschool actually pay out compared to students in private school. right so
Speaker 75
15:40
as you know the law provides for 90% of foundation funding to be in an EFA account regardless of whether they're
private school or homeschool. so we have not looked specifically at what is the cost of of an average say homeschool student versus private school student because the law allows the equal amount for for each. um, I can say though that very soon probably within the next few weeks the University of Arkansas is putting out a report looking at all of the past expenses so and it will have it broken down by like how much was used for tuition and fees how much it was used for curriculum and so I think that will give us a good
idea of where the majority of funding is going and and it'll be good information for you all to have if you wanted to look at putting any limits on anything that are not already in statute. OK that's helpful.
Senator Clarke Tucker
Unverified
16:28
thank you and so I understand that the law authorizes the same amount for both. Does it direct that does it mandate that?
Speaker 67
16:37
Yes it provides that anyone who is approved for an EFA account gets 90% of foundation funding because of course the
Speaker 75
16:42
full amount I think it makes sense not to give the full amount since you're not having buildings and overhead and
things like a public school does but yes so as long as they are submitting eligible expenses so the the curriculum fees, tuition, supplies things like that they can spend up to that full 90% amount. OK. all right thank you very
much thank you senator Representative Wooten, is your question for this department? all
Representative Jim Wooten
Unverified
17:13
right you're recognized thank you chairman how much how much is the70
million in addition to the379 million or is it all how much money are you asking for? I know you ask you got70 million here but how many wants the
Speaker 67
17:36
total amount right so with the addition of the70 million it's379 million total yes
Representative Jim Wooten
Unverified
17:41
sir so just short of400 million how how much each one of them gets 90%
of foundation foundation money OK. what's the total amount of foundation money this
Representative Jim Wooten
Unverified
18:15
amount per student this year is $8,034 how much $8000 last year it was 8020re0 last year
so there's a reduction in the amount of money
that we're paying and we we're picking up the health
Speaker 93
18:37
insurance, correct? Correct. yeah the foundation funding went down just because we are pick the state is picking up 100% of the employer portion of the state of the teacher insurance how much what
Representative Jim Wooten
Unverified
18:51
is the national average for public education on the foundation money
don't don't know it's $12,000. what is ours 8084 that's just
Speaker 88
19:06
foundation funding if you include the categoricals and everything else we get close
Representative Jim Wooten
Unverified
19:11
to the 15 I know exactly what it is it's $8084 per student in the national average is 12,000 and we're spending400 million. can you can you justify that once again would say that that the governor supports they can you justify that can you
justify400 million dollars going to private education and we're4,000 dollars per student chart below the national average for foundation money Representative Wooton, the question for us today is
the transfer of that70 million dollars we're not relitigating loans at this point if you want to do that offline
Representative Jim Wooten
Unverified
19:53
you're welcome to realize that Chairman but I think it needs the fact it needs to be an explanation given to this body why we can spend400 million dollars on a recommendation
and asked for70 million more because
the legislature approved that with the Learns
Representative Jim Wooten
Unverified
20:15
Act. well they're biased but that's that's all we've got to
say about it Senator hickey you're recognized I'm assuming this is not the group you're looking for right you you guys are excused thank you I believe we're gonna need Secretaryhudson and someone from DHS is that rightsenator that's correct
Senator Jimmy Hickey, Jr
Unverified
20:38
just to kind of give everybody an explanation I in no way believe that we need to stop this of course I think we all know all know that we did I sit on the pier and I take full responsibility that we didn't discuss this. I think a lot of us knew what was going on. I literally walked out of here, went to lunch and thought you know we just took over a quarter of a billion dollars out of restricted reserve and didn't have any discussion for the public to know so that's my intent here today. so appreciate you you all both being down here if you would please just introduce yourselves so we have it on
record and then we'll get to
Senator Jimmy Hickey, Jr
Unverified
21:16
to roll pretty quick. first of all though I'm on a guest for Miss mann. so and and Mrhudson so I went back and looked and we know that the trust fund's been higher but at the beginning of Fy26 we're at492 million thereabouts so in the report that you always do that we have you to do to come out with with the medicaid
trust fund it's showing that we're about 120 million this month Now one question I have for Misss mann is this I went back and tried to tried to see have we paid the hospital assessment out of that that we normally pay quarterly because it looked like to me the last one we
had done was May. yes sir we are current on the
Senator Breanne Davis
Unverified
22:00
hospital assessment. We pay it every quarter. Matter of fact, this quarter's payment will occur next week. OK, so it's not out but it's not out of
Senator Jimmy Hickey, Jr
Unverified
22:09
the 12ies is what I'm trying to say. So, so the 120 may be a little bit high because what is that nor normally30
or35 million? it's what it looks like look like yes
Senator Breanne Davis
Unverified
22:22
sir the total payment for the entire year on the access payments to the hospitals is around400 million. so the state's share is around 120 total so it would be about30 million dollars
a quarter so it looks like that we're a little
Senator Jimmy Hickey, Jr
Unverified
22:40
high because I believe their funds have already came into the fund and we just haven't sent them back out. so it appears like to me that we should we're probably around 90 million on the
Senator Breanne Davis
Unverified
22:53
hospital on the hospital fund they keep a quarter in in their funds so that they can we can draw it and pay it and then they will reimburse or pay back their assessment the following quarter. so it's it's an
inflow and an outflow yes sir. So do you think the true net amount
Senator Jimmy Hickey, Jr
Unverified
23:10
right now is still 120 million or are we closer to 10re0?
Senator Breanne Davis
Unverified
23:15
as of august 1st we were at 120. I I can't tell you what
Senator Jimmy Hickey, Jr
Unverified
23:18
it is today I think it's probably supposed to be around 90 is the way I say 90 to100 because we haven't paid that out because we, I had the bureau staff and stuff to look so and unless you tell me that you all paid it and it just showed
up somewhere else but it I just know that it has not been paid. not
Speaker 107
23:36
not been paid for this quarter but it is current yes sir and
Senator Jimmy Hickey, Jr
Unverified
23:41
I'm not trying to say it's behind I'm just trying to I'm just trying to say that we're show ing 120 the last one we made was
Speaker 116
23:50
in May. but I would say you know, enator hickey we provide you know this committee every single month the snapshot on it and so I want to be very careful about trying to pick a particular day in the month and try to you know say here's the balance as of today so let's mean I think we can work off what the end the end of the month reporting is that we send to y'all that shows you all the cumulative activity for the
Senator Jimmy Hickey, Jr
Unverified
24:13
trust fund in that month. OK again I'm I'm I'm just trying to make sure that we've got about what it is because like I say we started and and I'm going back a little bit further like I say the at 26 we had492 so now we're about 100 million you know is isish yeah we all know how this thing moves it's so big also for DHS there's been some talk of course and I think we all know this that we have some other accounts that you all have had and historically they've showed like some higher balances have we also been
paying those down and if so, and I'd have to have you to come up and I'm just asking for round numbers approximately how much have we
used of that sayy in the last year or biennial and I'm not I'm just wanting to know I'm not saying if it's 12 million or if
Speaker 116
25:05
it's 100 million you know don't know for the past year if that really has been much of a of an issue you know we really worked hard two fiscal years ago to make sure those paying accounts did
not maintain a high balance that you know we kept it in the trust fund until it was actually needed and then move it into the paying account. So I don't, I don't think there's an issue of having other
Speaker 119
25:28
funds out there that are holding large account balances that we're separately spending on it's it really should
Senator Jimmy Hickey, Jr
Unverified
25:35
be a clearing account at this point. that's not exactly exactly what I asked but I'm sure it's because I wasn't clear so historically though it
appears like we've always carried a balance there and now we're not carrying those balances and I assume that we've
we've transferred that and used that no fault of your own. I mean we understand costs are up so it's it is what it is at this point. So do we know what those other accounts that we've spent down like historically have we kept a certain dollar amount in there and now they're down cumulative total to a lower amount and if so about how
Speaker 102
26:12
much? I'm just trying to come up give a balance or a dollar amount we
Senator Breanne Davis
Unverified
26:19
we did work with the DFNA over the past 24 months. we started
with the paying accounts that had balances to make sure that we were spending those and also working to make sure that those were state and federal funds paying those
bills appropriately for the matching principle, then we do have some funds that we use every year. We use pharmacy rebates, we use provider fees we use a few other accounts that are in the operating process of of medicaid every
year. I mean we would have to go back and scrub those to
Representative John P. Carr
Unverified
26:56
sure we're we're we're talking about you know the right things here because sometimes we use the term fund we're referring to traditional funds that all agencies have for them it really is reflected in that medicaid trustst report that has multiple funds in it their temporary paying accounts really were funds that would accounts that would receive fund
transfers from the trust fund in order to pay their obligations those accounts historically had had higher balances we thought that they should stay in the trust fund until they were actually needed held for a minimum amount of time in the temporary paying accounts just to clear the obligations but don't keep you know an average balance in there. I think it's better to have all the money in one place so you can see really what's in there and we've done that work over the past couple of
Senator Jimmy Hickey, Jr
Unverified
27:47
years. I don't I I totally, I totally
agree with your logic on what you're saying. And again, I know budget hearings are coming up so we can kind of get into that but what I'm saying is is that if those were carrying a balance and yes we went ahead and paid them down. we're not seeing where it come out of the trust fund. it may have had some balances
and we used them to pay so we've actually spent more so that's all I was after but I agree with your thought process as long as we do that from now and all the way in the future that we don't start maintaining balances in them then yes I
would rather do that it's since I've been secretary that's been my approach. OK? and again and the next question for you Mr.hudson I already you and I've already discussed this of this 200 million, you know what my understanding was is that we think that it is going to be used by the end
of the calendar year or maybe just a little bit after
Representative John P. Carr
Unverified
28:42
is what we discussed we will use the 200 million in this fiscal year
Speaker 116
28:47
and it it will get us into you know
calendar year you know,2027. I can't really give you a date at this point but
Speaker 130
28:54
you know it will be it will not get us to the end of the fiscal year let me say that
Senator Jimmy Hickey, Jr
Unverified
29:00
well the other day or two days ago it was my understanding that we're we're fully talking about calendar year that we think we're going to spend this $200 million in this calendar year. or or maybe into January so that's that I
Speaker 116
29:11
think again what I just said is that I think it will get us into early 2027. I can't tell you what the exact exact date is don't expect you and I can't
Senator Jimmy Hickey, Jr
Unverified
29:23
beyond that but that was my next question I guess that's my next question then. so we're not going to have very
much money left in the in the trust fund we're gonna pretty much have used up the the 200 million right here so we have to anticipate that we're going to have the rest of the fiscal year which you know, ends June30th. so what what all are you going to be asking for you think to finish out that fiscal yeargain
Speaker 116
29:51
I I think as you already noted we're going to go into the budget hearings next month the governor's going to present her balanced budget in November. you know, I think when she presents that she'll address all the needs that are required you know to be able to fund state programs. I'm not
Representative John P. Carr
Unverified
30:06
going to get ahead of her on that. My commitment though is this I think there are three things that we have to be looking at one we need to make sure that medicaid is adequately funded for its current operational obligations to get us through the fiscal year. I think we have
to look at what are the recurring revenue needs in medicaid there are some that we need to address in the fy 28 budget and then thirdly we need to look at the trust fund and make sure the trust fund is adequately capitalized to deal with any you know, surprises that occur in the future. Those three things I think are things that we need to be focused on as we get into budget today we're talking about the 200 million that will is the immediate need but those other things need to get talked about too at the right time. I just can't speak to the particulars at this
Senator Jimmy Hickey, Jr
Unverified
30:53
stage. OK I just know that we're gonna have to address it though since we're not towards the end of the fiscal year so I I'll quit asking my questions and just kind of say this and and I think this is what you said but I want to make sure. so it's going to be our intent of course the way that we've been doing this with this by taking out these restricted reserves and whatever has been in the trust fund of course that hasn't run through RSa or our budget so the thing is is it's really not a true p picture out there
of the public because you know whenever we say that state government's only grown x% actually it's more because this stuff for recurring expenses and I think we're all gonna say that medicaid is recurring so is it going to be our intent to try to get a very true pitcher during budget hearings to make sure that we're totally running all of this in RSA into the future And I under and I heard what you said about the trust fund
but that would just be for surprises so this time next year we're not sitting here and saying well we've used all that up we put extra money into the trust fund at I think you and I are thinking $250 to300 million I don't know what everybody else here is thinking, but we're still thinking that our goal is is just to maintain that running balance of that 300 in there at all times and not and not put any more money in if we can. I think we ought to strive for a
Speaker 116
32:27
stable balance in the trust fund that it would have some oscillations in it but largely a stable balance that's that's something I'd love to see us be able to
Representative John P. Carr
Unverified
32:36
do it but I do want to challenge the premise respectfully now seriously because I mean this this is this is a good conversation it's a serious conversation but the the the idea that 100% of the state's share for medicaid should be in the RSA would be a novel proposition because I look back 10 years in
the past 10 years not a single year have we put 100% of the state's share in the RSA and if we were to do that and we had a very hot year, I mean it's a hot year in general temperature wise but it was really a hot year for Medicaid for F-26 and the spend increased400 million. we really are talking about from a cash flow perspective more of an expenditure issue then we're talking about a revenue issue 40 $0 million in 19% increase in
one year the previous three years combined4%. so we shed a lot of cash in that one year. Now if I would have come to you when we were doing budget hearings for Fy26 and I would say to you you know there's a chance we may need400 million dollars for the state's share. let's increase DHS's budget by400 million dollars. I y'all would have thrown things at me I don't, I just don't think that we can really view what is a $10
billion insurance company as something that we fund 100% through ourA we've never done that we don't do that with Ebd we don't do that with retirement plans there needs to be a component to this that is recurring revenue in please hear me be in agreement with you that we do need to look at increasing the recurring revenue to medicaid. there needs to be a piece of it as well that is just in reserves and we have to have adequate reserves to deal with that too the conversation as to the relative mix of that I think is
appropriate for budget there's another category we haven't talked about it is the expense side and I said that two or three times during during fiscal session this cannot just be a conversation about revenue it needs to be a conversation about our expenses as well just one
Senator Jimmy Hickey, Jr
Unverified
34:48
more comment I know we've got to go that's your analogy of that's fine but this is what I'll say and maybe it requires legislation and and and DHS you're not the only one we can sit here and talk about the freedomccos because if we take those out of restricted reserve
and it appears that they're going to be recurring those those also are making it whenever we say state government hasn't grown as much that it really has. so maybe it's something that we need to look at as this legislature that if there are things like that and like the trust fund that if we are taking things out of restricted reserve for what we all know is recurring stuff that whenever we report those numbers out there to the public about how much
state government's grown that we need to include those. I think that's the most fair and transparent way, because we all know that it should be an RSA but maybe there are certain times but at least we need to report that and put that percentage in there that that took it up another whatever it whatever it does so anyway thank you sir thank you senator thank you senator members
we've got about4 members in the queue. I would like to remind you that the question we're really debating today is the transfer of this
200 million so Senator Flippo you're recognized thank you
Senator Scott Flippo
Unverified
36:10
Mr. Chairman and if you'll forgive my informalities Jim Janet you know I like you guys you've always been very honest with me. I'm not nearly as smart as ent hickey but I'm a little bit more in line with brevity so I'll get to it on a scale of 1 to10,10 being the most healthy how healthy is our Medicaid trust fund currently? you know our medicaid trust fund needs to be plussed up
Representative John P. Carr
Unverified
36:37
it needs to be plussed upive me a number to t that's going to be in the budget process this is the governor's budget you know is
Representative John P. Carr
Unverified
36:48
healthy or sick label on it this is math right? I think what we have to look at is the total resources that we have available as a state to meet meet our obligations and we have adequate more than adequate resources to be able to do that I'll take that as a4 or5.
Senator John Payton
Unverified
37:10
Senatoreyton, you're recognized thank you Mririr Mrhudson I hope I can articulate this well but I think I heard you say that we knew this was coming and planned on pulling it rather than including it in the budget so in regards to the two00 million dollars transfer is that something that we knew was coming and just decided to
Representative John P. Carr
Unverified
37:43
not mention it during the budget process that sorry senator that's not accurate. We we actually had the $200 million you know approved in the budget process we talked about the $200 million during fiscal session that there would be a need and I said at the table multiple times there would be a need to infuse cash in medicaid in this fiscal year. Now what I will say is different is they actually ran as I said earlier they ran a little hotter in terms of their expenses and
so they had a tremendous amount of expense that we do not foresee for fy 26 that is part of the issue that we
Senator John Payton
Unverified
38:22
have going on here so when you talk about looking back for 10 years and that we have depended on the trust fund or other means rather than include in RSA that's it's a mixture
Representative John P. Carr
Unverified
38:36
of both sir it's it's both you know they get 1.8 billion roughly let me get my question out
Senator John Payton
Unverified
38:45
so the question I've got is whether or not those upcoming transfers are known or unknown during the RsA and budget process I mean if if we're if we hold money and reserve and trust accounts that's smart expecting that there's something's gonna happen and we're gonna need that money or we might need extra money but if we know that there's an expense coming
and we're ignoring that in Rsa and not including it in the budget then I think we need to take a real close look at that practice that's all and I think
Speaker 116
39:27
that if if we would know exactly what our claims experience was going to be and we could plan that like
Representative John P. Carr
Unverified
39:33
if we're buying staples or or paper clips it would be much easier but we don't know until after the fact you know what the claims are you know what the acuity of the claims are the number of claims
you know we have trends but the recent trends did not point to a400 million dollars increase for fy 26 so you're saying mostly this was kind of unexpected in terms
Senator John Payton
Unverified
39:56
of the claim side of it there was a little
Representative John P. Carr
Unverified
40:00
bit of drop off in revenue from the FM map rate changing the federal F mapping rate changing but that's not the bulk of it the bulk of it is we we had an unfavorable year in terms of experience Well thank you
Senator John Payton
Unverified
40:12
I I may have misunderstood what you stated earlier but I appreciate you saying you was probably a poor
for that. right thank yousenator we have one last remaining question and I'm going to give this to Representative wooten if
you would please keep your remarks based on this $200 million transfer we're talking about to
Representative Jim Wooten
Unverified
40:34
the Medicaidrustund if you would please sir you're recognized thank you Mr Chairman and I'll maintain
that advice did I understand you correctly that the 200 million will be out of reserve funds
Speaker 130
40:51
will you pay that out of reserve funds the 200 million is in a
Speaker 116
40:57
set aside in restricted reserve the general assembly approved that during the fiscal session this would transfer that money to the medicaid program to be able to use for their current obligations.
Representative Jim Wooten
Unverified
41:07
yes sir. So give us the definition of where you're occurring. what what what reoccurring is that in other words it's not
in the RSA when I said we need to look at increasing recurring revenue for Medicaid
Representative Jim Wooten
Unverified
41:28
medicaid the question I had I have is it's not shown in RSA how how much money is offsa how much money is in there that's not not should that we actually don't see because I asked for a report on money outside of RsA how how many millions are we talking about and and is that
basically surplus money no sir the the bulk of state government is funded
Speaker 116
42:00
outside of RSA. it is a combination of special revenue and federal revenues RSA does not fund the majority of state expenses and I think you know
Representative Jim Wooten
Unverified
42:12
that really but what is the total dollar amount of what of reoccurring in the whole state budget
that's out of ourS a must the total amount of expenditures
Representative Jim Wooten
Unverified
42:37
200 million that you're that we approved that is not considered a part of RSA, ir. if you look at the act
Speaker 116
42:48
this general assembly passed the todddily act is the revenue stabilization actct. that is where it's at. now is it it's not in the RSA allocation for Medicaid but this general
Speaker 119
43:03
assembly when it approved the balanced budget for the state of Arkansas approved that $200 million set aside.
Representative Jim Wooten
Unverified
43:12
Y'all voted for that it's there Well I recognize it's there but is it going to be a reoccurring expenditure as indicated
Representative John P. Carr
Unverified
43:19
the the the governor will present her balanced budget. it's not my balanced budget it's her balanced budget she will present that according to statute in November what she's proposing to
Speaker 116
43:33
do for all RSa and then that'll be you know subject for debate obviously
as we get into session thank you thank youpresentativeooten members seeing no other questions thank you for coming down.ppreciate it. hang on just a second. Senator rice did you have
a question all right just a second Senator rice we
have a motion to adopt this report do you have a substitute motion? right
Senator Terry Rice
Unverified
44:10
the discussion on the medicaid and I think it shows budget hearings coming up that we've got some serious things to talk about my request is on the EFA's ond2 a lot of people our whole goal is to educate kids and we want to find the best way a lot of concern that we need to tap the brakes and come up
with some parameters so I would ask that d2 on the EFAs be pulled out for a separate vote my motion
right so the motion is to pull out the item d2 for the EFAs for a separate vote that we'll also include the the adoption of the report is that correct right
all right members you've heard that motion we have a 2nd 2nd all those in favor signify by saying aye all those opposed knows habitpresentative Wardlaw has the original motion to approve the entire report including the album we just mentioned. do you have a second? right you have a second in discussion seeing none all those in favor say aye opposed the ayes have it. right. thank you members that takes us down to item 12. we're going to recognize Senator Mcee at this time.
Senator Matt McKee
Unverified
45:36
Thank you Mr Chairman. The revenue subcommittee met on Tuesday and reviewed methods of finance alternative delivery method procurements discretionary grants one ratification RfQ approvals service contracts and received reports all items were reviewed. I moved the adoption of the report all right thank you senator members any questions on item 12 seeing
none we have a motion we have a 2nd 2nd any discussion seeing none all those in favor say aye oppose the ayes have it
I'm gonna recognize Senator Petty for the state insurance programme's report. you recognize. Thank you Mr chairir.
Senator Jim Petty
Unverified
46:13
The city insurance programmes oversight subcommittee met on Wednesday and they reviewed the employee benefits division contract amendment with Navidus Health Solutions Lllc subcommittee also heard a presentation from Doctor Wayne Weingarten with Pacific Research Institute. I may I move for adoption of this report. all right members you heard the report.
many questions? seeing none we have a motion. Can I get a second? I have a second any discussion saying none all those in favor say aye
opposed the ayes have it senator Davis you're recognized for the personnel report Mr Chair the personnel subcommittee met Wednesday
Senator Breanne Davis
Unverified
46:45
September 16th and reviewed the request and reports listed as items 1 through7 on the personnel committee report, I'll take any questions and have a motion for adoption at the proper time. all right members you've heard the report any questions? seeing
none we have a motion. Can I get a second? we have a second. any discussion seeing none all those in favor say aye
opposed the ayes have it members if you would please turn to page two of your agenda we have some review of communications there's no action to be taken on these so if there are no questions on any of those items I'd like to
Senator Missy Irvin
Unverified
47:29
recognize Senator Urvin for a moment. you're recognized so members a part of the executive subcommittee report if you look at that report
attached to that is a resolution the resolution was passed to executive subcommittee level. the resolution has to deal with our duck population there was a change at the federal level to a proposed change to some rules at the federal level that would have devastated the duck population to thanks to the good work of our director of the Arkansas Game and Fish, our game and fish commission and I think also the governor's office and others may have helped in this but to basically say no don't change
the language because it will be devastating to the state of Arkansas. so this interim of this resolution is really our opportunity as a legislature to also speak to that and be part of the public record at the federal level so that if these changes are considered in the future to that federal rule change then we are on record as to saying that we agree with our Arkansas game and fish commission and Arkansasame andish director that we need to keep the rule intact and and make sure that conservation
and our duck population can be as strong as possible because as you know that's very important to the economy of the state of Arkansas. so that is a that's the purpose of the resolution and I can take any questions but this was a report that came out of our subcommittee and I felt like it was a good thing for the legislature to also speak to this and be part of the federal public record thank you thank you
Senator Irvin. Members, there is no other business for this committee. thank you for your participation we are adjourned
Agenda
A. Call to Order.
B. Roll Call.
C. Approval of the Minutes of the Last Meeting, August 18, 2026.
D. Presentation of the August 2026 Revenue Report & FY2026 Annual Revenue Report – Dr. Carlos Silva, Legislative Economist
E. Report of the Executive Subcommittee — Sen. Justin Boyd, Rep. Les D. Eaves, Co-Chairs
F. Reports of Standing Subcommittees:
G. Reports of Interim or Special Committees: (none)
H. Review of Communications:
I. New Business: (none)
J. New Interim Study Proposals and Interim Resolutions: (none)
K. Business Carried Over: (none)
L. Adjournment.
Documents
Speakers
Representative Les D. Eaves Chair
Unverified
Speaker 9
Senator Matt Stone
Unverified
Speaker 19
Chair
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Senator Bart Hester
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Representative Jim Wooten
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Speaker 33
Senator Justin Boyd
Unverified
Speaker 37
Representative Tara Shephard
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Senator Jim Dotson
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Senator Missy Irvin
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Senator Joshua Bryant
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Senator Dave Wallace
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Representative Jeff Wardlaw
Unverified
Senator Clarke Tucker
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Speaker 67
Speaker 69
Speaker 75
Speaker 88
Speaker 89
Speaker 93
Senator Jimmy Hickey, Jr
Unverified
Speaker 24
Speaker 102
Senator Breanne Davis
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Speaker 107
Speaker 116
Speaker 119
Speaker 125
Representative John P. Carr
Unverified
Speaker 130
Speaker 132
Senator Scott Flippo
Unverified
Speaker 18
Senator John Payton
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Speaker 138
Speaker 158
Senator Terry Rice
Unverified
Senator Matt McKee
Unverified
Senator Jim Petty
Unverified