Arkansas Legislative Council (ALC)
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All right, members are calling this meeting to order. Good morning. Good morning, members. At this time, I want to recognize Senator Stone for a morning prayer. Senator Stone, where's it?
Senator Matt Stone
Unverified
3:01
Thank you. Praise your holy name, dear Lord. I just pray that everything that's said and done here in this committee meeting today will bring glory and honor to you. Dear Lord, just let us be mindful. Just ask that you be with our country and our nation's leadership, dear Lord. We just ask these things in
Jesus' name. Amen. Thank you, Senator. And members, in your packet is minutes from the last meeting. I need a motion to adopt those. We have a motion, a second. All those in favor say aye. Aye. Opposed? The ayes
have it. And at this time, we're going to recognize Dr. Carlos Silva for the presentation of the August 2026 revenue report. Dr. Silva, if you would please, you're recognized.
Speaker 19
3:53
of Legislative Research. 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 up $50 million from the last fiscal year today, those first two months of the last fiscal year, is around 3.9% above there. As we start looking down the line, we take all those off the tops, you're going to have $1.18 billion for this first two months of the fiscal year.
that is $57 million above fiscal year today, and that is 5.1% above those first two months. What we're going to see here in the bottom, we have included unemployment rate and labor force participation, the latest numbers we have at the time this report has been put out. As we look into the second page, we're going to see our cumulative deviation from the F&A latest forecast. We have a slight increase there of $4.5 million above forecast for this month, continuing that positive trend, but if you look into just the month, we're going to have
$14.1 million from the August to August difference. As we look into our page three and page four, we're going to have our general revenue collections. Our first page, as we talked about last month, the cigarette paper tax, you're going to see that difference there we had last month was a positive difference, and now we have negatives, just the adjustment. Last month, we have the overpayment, if you want to think about this on that specific account, how it has been adjusted, if you look into the year to today, you're not going to see that large difference.
And then as we're moving on to the other pages, you're going to continue to see the large difference on the DWI ring statement fees and fines and penalties due to the change by Act 969 of 2025. With that, I will take any further questions related to this report. Thank you. We have
Senator Bart Hester
Unverified
5:50
recognized hey thank you i'm on page four like line three the real estate
transfer tax it it looks like from 2005 to 2006 like they're they're consistent uh 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 residentially or that maybe big corporate things are selling do you have any breakdown on that? So that one is
Speaker 19
6:14
a specific tax. It gets capped if you want to think about it there. If you look into those two months difference, we're eventually going to reach that number of $2 million. But I do not have any insight right now specific for the real estate, but I'll be
happy to talk to you later
Chair
Unverified
6:32
on. Okay. Thank you. Thank you, Senator. Representative
Representative Jim Wooten
Unverified
6:36
Wooten, you're recognized. Thank you, Mr. Chairman. Doctor, on the inflation, how much, you know, gasoline is a dollar and a quarter or a gallon more, groceries are higher, food higher, utilities are increasing. How much of the 5.1% increase do you think is due to inflation?
Speaker 19
7:01
We do not have any breakdown specific to the inflation. Again, if there's something that you would like us to look into, 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 how that's
Speaker 33
7:17
been working on. But yes, sir, I'll be happy to look at that if that's what we'd like. Thank you. Thank you, Mr.
Chairman. All right. Thank you, Representative. Members, seeing no other questions, Dr. Silva, thank you for the report. Members, that takes us down to item E,
the Executive Subcommittee. I'm going to recognize my
Senator Justin Boyd
Unverified
7:36
co-chair, Senator Boyd. 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 attendance in 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.
Matters normally submitted to the other subcommittees that have been determined by the ALC co-chairs to have 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 its October 16 meeting. Agency imminent need requests for October should be submitted to the appropriate subcommittee staff who will convey it to the ALC co-chairs through Director Garrity. Reports and requests for action, usually submitted for consideration by the full ALC, should be provided to Director Garrity as usual.
Speaker 37
9:13
I move adoption of the report, including adoption of the interim resolution. All right,
members, any questions on this item? Seeing none, do we have a motion? Oh, we have a motion from Senator Bullitt in a second? All those in favor say aye. Opposed? The ayes have it. Thank you, Senator. It takes us down to Administrative Rules. Representative Shepard, you're
Representative Tara Shephard
Unverified
9:38
recognized. Thank you, Mr. Chairman. The Administrative Rules Subcommittee met on Thursday, September 17, 2026.
The subcommittee received agency updates on outstanding rulemaking from the 2023 and 2025 regular sessions. All rules were reviewed and approved, as noted in the report. I would also mention, since we have a number of agencies here today, that Senator Dees reminded the agencies to get their reports in by the first of the month so that those can be properly included by staff. And just as one to make that reminder here today. So I would move adoption of the report.
Thank you, Representative Shepard. Members, any questions on this item? All right. Seeing none, we have a motion and we 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. Aye. Opposed? The ayes have it. Item
Senator Jim Dotson
Unverified
10:36
three, claims review, I'm going to recognize Senator Dotson. Thank you, Mr. Chair. The claims review 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. Members, any questions on
this item? All right, 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. Down to Game and Fish, State Police, and recognize Senator Irvin at this time.
Senator Missy Irvin
Unverified
11:20
Thank you, Mr. Chair. The Game and Fish State Police Subcommittee met on Monday.
We heard testimony from the Arkansas Game 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? Second. A second. Any discussion? Seeing none, all those in favor say aye. Aye. Opposed? The ayes have it. I'm going to recognize Senator Bryant for the Hospital, Medicaid, and Developmental Disabilities Study. Good morning,
Senator Joshua Bryant
Unverified
11:52
Mr. Chair. The Hospital, Medicaid, and Developmental Disabilities Study Subcommittee met on Monday to hear testimony on the following items.
An update on the reimbursement rates under the Living Choices Assisted Living Waiver by DHS and presentation on WorkEd 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 item members all right seeing none we have
a motion can i get a second second no second any discussion all right seeing none all those in favor say aye opposed the ayes have it at this time recognize Senator Wallace for the occupational licensing review report you're recognized thank
Senator Dave Wallace
Unverified
12:50
you mr. chair mr. chair of the occupational licensing review committee met on Thursday and we received
reports from 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 none we have a motion can I get a second Any discussion? Seeing none, all those in favor say aye.
Aye. Opposed? The ayes have it. I'm going to
Representative Jeff Wardlaw
Unverified
13:21
recognize Representative Wardlaw for the peer report. Thank you, Mr. Chair. The peer subcommittee met on Tuesday, September 15th. The subcommittee reviewed reports, reviewed requests, and approved the following various temporary appropriations, American Rescue Plan Act, appropriations, Infrastructure Investment and Jobs Act, appropriations,
And appropriation transfers and restricted reserve fund transfers I moved adoption of the report All right, thank you represent board
Chair
Unverified
13:43
law. We have a couple of questions senator Tucker you reckon you're recognized Thank you, mr. I just have
Senator Clarke Tucker
Unverified
13:49
a couple of questions for someone from AD on the on the learns money All right, can
morning when you get settled in just introduce yourself for the record and
Speaker 69
14:21
Ford chief of staff Department of Education Greg Rogers Department Education Daryl Smith Department of Education all right thank you mr.
Senator Clarke Tucker
Unverified
14:26
chair I just I really have not the first time
you 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 being is for this 26 27 school year
how many approved students we have on the private school side and
Speaker 75
14:46
then the home school side thank you so right now we're looking at just over 28 000 students
Senator Clarke Tucker
Unverified
14:54
in private schools and just over 21 000 home schools okay so about 49 000 approved overall yes and then you know a question i've asked before, and we had had a little conversation about is, is comparing the costs. And I guess I'm curious from both a 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.
Speaker 75
15:35
So 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 an average, say, homeschool student versus private school student, because the law allows the equal amount for each. 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, and it will have it broken down by how much was used for tuition and fees, how much was used for curriculum, and so I think that will give us a good idea of where the majority of funding is going, and it will be good information for you all to have
if you wanted to look at putting any limits on anything that are not already in
Senator Clarke Tucker
Unverified
16:23
statute. Okay, that's helpful. Thank you. And so I understand that the law authorizes the same amount for both. Does
Speaker 67
16:32
it direct that? Does it mandate that? Yes, it provides that anyone who is approved for an EFA
Speaker 75
16:37
account gets 90% of foundation funding. Because of course, the 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 percent amount okay all right thank you very
Representative Jim Wooten
Unverified
17:08
much thank you senator representative Wooten is your question for this department all right you're recognized thank you mr. chairman um how much how much is the 70 million in addition to the 379 million or is it all how much money are you asking for i know you're asking you got 70 million here but how many wants the total amount
Speaker 67
17:29
all right so um with the addition of the 70 million it's 379 million total
Representative Jim Wooten
Unverified
17:36
total yes sir total so just short of 400 million yes sir okay how how much each one of them gets 90 percent of foundation foundation money okay what's the total amount of foundation money this year not not per student oh per student it's
Representative Jim Wooten
Unverified
18:10
How much? $8,034. $84. Last year it was $8,200 last year. $8,162. Okay. So there's a reduction in the amount of money that we're paying And we're
picking up the health insurance, correct? Correct.
Speaker 93
18:32
The foundation funding went down just because the state is picking up 100% of the employer portion of the state, of the teacher insurance.
Representative Jim Wooten
Unverified
18:45
Okay. What is the national average for public education on the foundation money? I don't know. It's $12,000. What is ours? 80, 84. That's just
Speaker 88
19:01
foundation funding. If you include the categoricals and everything else, we
Representative Jim Wooten
Unverified
19:06
get closer to 15. I know exactly what it is. It's $8,084 per student, and the national average is $12,000,
and we're spending $400 million. Can you justify that? I know that the governor supports that. Can you justify that? Can you justify $400 million going to private education and we're $4,000 per student chart below the national average for foundation money? Representative Wooten, the question before us today is
the transfer of that $70 million. We're not re-litigating learns at this point.
Representative Jim Wooten
Unverified
19:46
If you want to do that offline, you're welcome to. I realize that, Mr. Chairman, but I think it needs the fact that needs to be an explanation given to this body why we can spend $400 million on a recommendation and ask for $70 million more. Because the legislature approved
that with the Learns Act. Well, they're biased.
Representative Jim Wooten
Unverified
20:10
That's all I've got to say about it. All right. Thank you.
Senator Hickey, you're recognized. I'm assuming this is not the group you're looking for? No. All right. You guys are excused. Thank you. I believe we're going to need Secretary Hudson and someone from DHS. Is that right, Senator? Yes, that's correct. Just to kind
Senator Jimmy Hickey, Jr
Unverified
20:31
of give everybody an explanation, I in no way believe that we need to stop this. Of course, I think we all know that we did. I sit on a 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 I appreciate you all both being down here. If
you would, please just introduce yourselves. We'll have it on record,
Senator Jimmy Hickey, Jr
Unverified
21:11
morning, Janet Mann, Secretary of DHS. All right, I'll try to roll pretty quick. First of all, though, I guess for Ms. Mann, So, and Mr. Hudson.
So I went back and looked, and we know that the trust fund's been higher, but at the beginning of FY26, we're at $492 million, thereabouts. So, and the report that you always do that we have you 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 Ms. Mann is this. I went back and 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.
Senator Breanne Davis
Unverified
21:55
Yes, sir. We are current on the hospital assessment. We pay it every quarter. Matter of fact, this quarter's payment will occur
Senator Jimmy Hickey, Jr
Unverified
22:04
next week. Okay, so it's not out, but it's not out of the $120 is what I'm trying to say. So the $120 may be a little
bit high because what is that? normally 30 or 35 million
Senator Breanne Davis
Unverified
22:17
that's what it looks like look like yes sir the total payment for the entire year on the access payments to the hospitals is around 400 million so the state share is around
120 total so it would be about 30 million dollars a quarter
Senator Jimmy Hickey, Jr
Unverified
22:33
right so it looks like that we're a little 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
Senator Breanne Davis
Unverified
22:48
90 million on the hospital on the hospital fund they keep a quarter in in their fund so that they can we can draw it and pay it and then they will reimburse or pay back their assessment the
following quarter okay so it's an inflow and an outflow yes sir
Senator Jimmy Hickey, Jr
Unverified
23:03
so do you think the true net amount right now is still 120 million or are we closer
Senator Breanne Davis
Unverified
23:10
to 100? Well as of August 31st we were at 120. I can't tell
Senator Jimmy Hickey, Jr
Unverified
23:13
you what it is today. Okay I think it's probably supposed to be around 90 is the way I say 90 to 100 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
and it just showed up somewhere else but I just know that it has not been
Speaker 107
23:31
paid. It's not been paid for this quarter but it is current.
Senator Jimmy Hickey, Jr
Unverified
23:34
right yeah and i'm not trying to say us behind i'm just trying to i'm just trying to say that we're showing 120 the last one we made was in may
Speaker 116
23:45
yeah but i would say you know senator 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 i 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 trust fund in
Senator Jimmy Hickey, Jr
Unverified
24:07
that month okay again i'm i'm just trying to make sure that we've got about what it is because like i say we started and i'm going back a little bit further like i said at 26 we had 492 so now we're about 100 million you know it's ish 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 i'm just asking for round numbers approximately how much have we used of that say 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
25:00
it's $100 million. You know, I don't know for the past year if that's really been much 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 think there's an issue of having
Speaker 119
25:23
other funds out there that are holding large account balances that we're separately spending on. It
Senator Jimmy Hickey, Jr
Unverified
25:30
really should be a clearing account at this point. That's not 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 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 with 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
Speaker 102
26:07
how much i'm just trying to come up i'm not aware that i could give
Senator Breanne Davis
Unverified
26:12
you a balance or a dollar amount we we did work with 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 Medicaid every year. I mean, we would have to go back and scrub those to tell you exactly what was spent.
Representative John P. Carr
Unverified
26:51
the right things here because sometimes when we use the term fund, we're referring to traditional funds that all agencies have. For them, it really is reflected in that Medicaid trust report that has multiple funds in it. Their temporary paying accounts really were accounts that would receive funds 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 past couple of
Senator Jimmy Hickey, Jr
Unverified
27:42
years. 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 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 yeah okay since i've been secretary that's been my approach okay and again and the next question for you mr hudson i already you and i have 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 is what we discussed yeah i think
Representative John P. Carr
Unverified
28:37
we will use the 200 million in this fiscal year and it will get us into
Speaker 116
28:42
you know calendar year you know 2027 i can't really give you a date at this point but you know it will be it
Speaker 130
28:49
will not get us to the end of the fiscal year let me say that well the other
Senator Jimmy Hickey, Jr
Unverified
28:55
day or two days ago it was my
understanding that we're fully talking about calendar year that we think we're going to spend this 200 million in this calendar year again or or maybe into january so well that's i
Speaker 116
29:06
think against 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 and i don't expect you to and i
Senator Jimmy Hickey, Jr
Unverified
29:18
beyond that well 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 going to 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 june 30th so what what all are you going to be asking for you think to finish out that fiscal year again i think as you already
Speaker 116
29:46
noted we're going to go into budget hearings next month the governor's going to present her balance budget in November you know I think when she presents that she'll address all the needs that are required you know be able to fund state programs I'm not gonna
Representative John P. Carr
Unverified
30:01
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 two at the right time. I just can't speak to the particulars at this stage. I just
Senator Jimmy Hickey, Jr
Unverified
30:48
know that we're going to have to address it though since we're not towards the end of the fiscal year. So I'll quit asking my questions and just kind of say this 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 restrictive 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 picture out there of the public because, you know, whenever we say that state government's only grown X percent, actually it's more because this stuff for recurring expenses, and I think we're all going to say that Medicaid is recurring. It is. So is it going to be our intent to try to
get a very true picture during budget hearings to make sure that we're totally running all this in RSA into the future 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 that I think you and I are thinking 250 to 300 million I don't know what everybody else here is thinking, but we're still thinking that our goal is just to maintain that running balance of that $300 in there at all times and not put any more money in if we can.
Speaker 116
32:22
a stable balance in the trust fund that would have some oscillations in it, but largely a stable balance. That's something I'd love to see us
Representative John P. Carr
Unverified
32:31
be able to do. But I do want to challenge the premise respectfully. No, seriously, because, I mean, this is a good conversation. It's a serious conversation. But the idea that 100% of the state 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 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 FY26, and the spend increased $400 million. We really are talking about, from a cash flow perspective, more of an expenditure issue than we're talking about a revenue issue.
$400 million, a 19% increase in one year. The previous three years combined, 4%. 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 have said to you, you know, there's a chance we may need $400 million for the state share. Let's increase DHS's budget by $400 million. Y'all would have thrown things at me. I just don't think that we can really view what is a $10 billion insurance company
as something that we fund 100% through RSA. 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, and 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
34:43
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 freedom accounts 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 does. So, anyway, thank you, sir. Thank you, Senator. Thank you, Senator. Members,
we've got about four 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.
Senator Scott Flippo
Unverified
36:05
Thank you, 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 Senator Hickey, but I'm a little bit more in line with brevity, so I'll get to it. On a scale of 1 to 10, 10 being the most healthy, how healthy is our Medicaid trust fund currently? You know, our Medicaid trust fund needs to be plussed
Representative John P. Carr
Unverified
36:28
up. It needs to be plussed up. Give me a number, Jim. 1 to 10. I won't give you a number today.
That's going to be in the budget process. This is the governor's budget. Is it healthy? Is
Representative John P. Carr
Unverified
36:43
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 our obligations, and we have adequate, more than adequate resources to be able to do that. I'll take that as a four or five.
Senator John Payton
Unverified
37:05
Senator Payton, you're recognized. Thank you, Mr. Chair. Mr. Hudson, 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 $200 million transfer, is that something that we knew was coming and just decided to not mention it
Representative John P. Carr
Unverified
37:38
during the budget process? Sorry, Senator, that's not accurate. We actually had the $200 million dollars you know approved in the budget process we talked about the 200 million dollars 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 and 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
tremendous amount of expense that we did not foresee for FY 26 that is part of the issue that we have
Senator John Payton
Unverified
38:17
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 including it in RSA that's it's a
Representative John P. Carr
Unverified
38:31
mixture of both sir okay it's both you Do they get $1.8 billion, roughly? Well, let me get my question out.
Senator John Payton
Unverified
38:40
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 we hold money in reserve and trust accounts, that's smart, expecting that something's going to happen, and we're going to 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
Speaker 116
39:22
I'll say. Yeah, and I think that if we would know exactly what our claims experience was going to be, and
Representative John P. Carr
Unverified
39:28
we could plan that, like if we're buying staples or paperclips, 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 a $400 million increase for FY26. So you're saying mostly this was kind of unexpected. In terms
Representative John P. Carr
Unverified
39:55
little bit of drop off in revenue from the FMAP rate changing, the federal FMAP rate changing, but that's not the bulk of it. The bulk of it is we had an unfavorable year in terms of experience.
Senator John Payton
Unverified
40:07
Well, thank you. I may have misunderstood what you stated earlier, but I appreciate you saying it.
Speaker 138
40:13
I was probably a poor communicator, sir, so I'll just take the responsibility
for that. All right. Thank you, Senator. We have one last remaining question. 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
Representative Jim Wooten
Unverified
40:29
about to the Medicaid trust fund. If you would, please, sir, be recognized. All right. 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
40:45
Will you pay that out of reserve funds? The $200 million is in a set-aside
Speaker 116
40:52
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
Representative Jim Wooten
Unverified
41:02
their current obligations. Yes, sir. So give us the definition of reoccurring. What reoccurring, in other words, that's not
in the RSA? When I said we need to look at increasing recurring revenue for Medicaid,
Representative Jim Wooten
Unverified
41:23
for Medicaid. But the question I have is, it's not shown in RSA. How much money is off RSA? How much money is in there that we actually don't see? Because I asked for a report on money outside of RSA. How many millions are we talking about? And is that basically surplus money?
No, sir. The bulk of state government is funded outside
Speaker 116
41:55
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 that.
Representative Jim Wooten
Unverified
42:07
But what is the total dollar amount? Of what? Of reoccurring. In the whole state budget? That's out
of RSA. What's the total amount of expenditures? What's our RSA budget for?
Speaker 116
42:24
6.7 billion is the RSA budget for FY27. Okay. So the $200 million that
Representative Jim Wooten
Unverified
42:32
we approved, that is not considered a part of RSA? sir if you look at the act this general assembly
Speaker 116
42:43
passed the title of the act is the revenue stabilization act right that is where it's at now is it it's not in the rsa allocation for medicaid
but this general assembly when it approved the
Speaker 119
42:59
balance budget for the state of arkansas approved that 200 million dollar set aside y'all
Representative Jim Wooten
Unverified
43:07
voted for that it's there well i recognize it's there, but is it going to be a reoccurring
Representative John P. Carr
Unverified
43:14
expenditure? As I indicated, the governor will present her balance budget. It's not my balance budget. It's her balance budget. She will present that, according to statute,
Speaker 116
43:24
in November, what she's proposing to do for
all RSA, and then that will be subject for debate, obviously, as we get into session. Okay. Thank you. Thank
you, Representative Wooten. Thank you. Members, seeing no other questions, thank you for coming. down appreciate 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
Senator Terry Rice
Unverified
44:05
i appreciate the discussion on the medicaid and i I think it shows budget hearings coming up that we've got some serious things to talk about. My request is on the EFAs on D2, 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. That's my motion. All right,
so the motion is to pull out the item D2 for the EFAs for a separate vote, and that will also include the adoption of the report. Is that correct? Correct. All right.
All right, members, you've heard that motion. Do we have a second? Second. Second. All those in favor signify by saying, aye. All those opposed? No. Those have it. Representative Wardlaw has the original motion to approve the entire report, including the item we just mentioned. Do you have a second? Second. All right. Do we have a second? Any discussion? Seeing none, all those in favor say aye. Aye. Opposed? The ayes have it. All right. Thank you, members. That takes us down to item 12. I'm going to recognize Senator McKee at this time. Thank you, Mr.
Senator Matt McKee
Unverified
45:31
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 move the adoption of the report. All right. Thank you, Senator. Members, any questions on item 12? All right. Seeing
none, we have a motion. We have a second. Second. Second. Any discussion? Seeing none, all those in favor say aye. Aye. Opposed? The ayes have it. I'm going to recognize Senator Petty for the state
insurance programs report you recognize thank you mr chair the city insurance programs
Senator Jim Petty
Unverified
46:08
oversight subcommittee met on wednesday and they reviewed the employee benefits division contract amendment with navidus health solutions llc subcommittee also heard a presentation from dr wayne weingarten with pacific research institute i may i move for adoption of this report all right members you 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. Senator Davis, you're recognized for the personnel report. Mr. Chair, the personnel subcommittee
Senator Breanne Davis
Unverified
46:40
met Wednesday, September 16th and reviewed the requests and reports listed as items 1 through 7 on the personnel committee report. I'll take any questions and have a motion for adoption at the proper time. Members, you've heard the report. Any questions? Nope. Seeing
none, we have a motion. Can I get a second. Second. We have a second. Any discussion? Seeing none, all those in favor say aye. 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 recognize
Senator Missy Irvin
Unverified
47:24
Senator Urban for a moment. you recognize so members part of the executive subcommittee report if you look at that report attached to that is a resolution the resolution was passed at 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, 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 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 Arkansas Game and Fish Director that we need to keep the rule intact 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'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
Speaker 2
Speaker 5
Representative Les D. Eaves Chair
Unverified
Senator Matt Stone
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Speaker 18
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
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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
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Senator Clarke Tucker
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Speaker 48
Speaker 67
Speaker 69
Speaker 75
Speaker 88
Speaker 89
Speaker 93
Senator Jimmy Hickey, Jr
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Speaker 24
Speaker 102
Senator Breanne Davis
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Speaker 107
Speaker 116
Speaker 119
Speaker 125
Representative John P. Carr
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Speaker 130
Speaker 132
Senator Scott Flippo
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Senator John Payton
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Speaker 138
Speaker 158
Senator Terry Rice
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Senator Matt McKee
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Senator Jim Petty
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