ALC-JBC Budget Hearings (1:30-4:00PM)

Unity if you take your seats we're going to continue and we're starting with the insurance department and what we do have an audit findings so if the. Auditor would come forward. Give the report. And I believe if you look behind our agenda you will see the audit report. If you. State your name for the record and you're recognized. Thank you madam chair don Morgan field audit supervisor for legislative audit. Insurance department head to findings for the year ended June thirty two thousand eighteen. By number one the agency failed to retire timely for assets totaling two thousand nine hundred eighty seven dollars additionally to assist totalling one thousand five hundred eighty one dollars could not be located for observation. Funding number two review of receiving procedures revealed that the public employees claims division failed three C. six checks totaling fifty eight thousand seven hundred forty two dollars when received additionally liquidation division fail to deposit timely three checks totaling six thousand six hundred twelve dollars. I'm sure that conclusive findings. Any questions. Seeing none thank you very much thank you miss Hamilton you're recognized. Thank you madam chair we are still in volume two of the insurance department we're going to start with appropriations with changes on page three seventy six you can see the department appropriation summary there are twenty four appropriations nine of which have changes over all the executive recommendation is for a one point four million dollar increase over the biennium and just for the committee's notification there is no general revenue in this agency the majority of their funding sources are from special revenue trust funds some investments and some miscellaneous revolving funds. The first appropriation which changes is their operations appropriation if you look on page three eighty. This is funded by special revenues and improvise for the operations of the appropriation skews me the special revenues are derived from the additional fees that are assessed on insurers insurance agents brokers professional bail bond companies and other licensee or registrant. Agencies requesting a continuation of the current appropriation with the increase of a hundred fifty thousand capital outlay to replace their outdated equipment or vehicles during the biennium this was the request that was approved through peer April ninth of this year. On page three eighty one you'll see their appropriation summary you'll see the corresponding increases in regular salaries personal services matching and then the increase the requesting in capital outlay. Next appropriation with changes is on page three eighty two. This is our fraud investigation unit again as trust with it is funded with special revenues as the trust fund. The special revenues were collected by the insurance department in your marked for investigating allegations of fraud and workers compensation cases. Page three eighty three contains their appropriation detail we'll see cars bonding increases in regular salaries of personal services matching which is approximately thirty three thousand over the biennium which is the executive's recommendation. The next appropriation with pages I'm sorry which changes starts on page three eighty four. This is the criminal investigation division is also a trust fund that is coming from special revenues derived from the divisions annual anti fraud assessment and any other penalties or pay from license insurers. The uses to investigate suspected case of fraud over broad range of activities in the insurance division. On page three eighty five you'll see appropriation summary. Their requesting creases in regular salaries and personal services matching. The increase is going to be approximately a hundred twenty five thousand over the biennium which is the executive recommendation. The next appropriation with changes starts on page three eighty six this is their prepaid funeral benefits division is and also we trust fund. Funding consisting of revenues from investment income grants refunds gifts and you reports fees. The user to administer and regulate the sale of prepaid funeral benefit plans. Agency is requesting thirty thousand and capital outlay to replace outdated equipment and or vehicles over the biennium. The executive recommendation provides for that long page three eighty seven you'll see the increasing capital outlay currently they are not authorized anything for twenty twenty one bit looking over the by any of our twenty two and twenty three you'll see that thirty thousand dollar increase. The next appropriation which changes starts on page three ninety four. This is a public employees claim section and it's used to administer public employees workers compensation claims appropriation is funded by transfers from the public school fund county aid fund and municipal aid fund various treasury accounts from state agencies to the miscellaneous agencies fund and this is for workers compensation claims. The executive recommendation provides for the agency's request of one point nine million in appropriation there's not very much changes about an increase of about fifty four thousand dollars of the biennium. The next appropriation was changes were going to jump to page four sixteen. This is an appropriation that was established through miscellaneous federal grant it was originally approved back in two thousand fifteen. Skews me it's a federal appropriation. And a provide application assistance to people who are likely to be eligible for low income subsidy programs Medicaid part D. prescription drug programs and outrage this aimed at preventing disease in promoting wellness. The agency's requesting restoration and some regular salaries and personal services matching and operating expenses. They would also like some carpets and travel professional fees and promotional items appropriation. Also like increase of thirty thousand and capital outlay and this is for anticipated increases in federal funding that they expected to support the program. They did have one grant that expired in two thousand sixteen it was renewed for about two hundred thousand but has since expired we're planning to spend the last in the funding and they didn't request is procreation last year but they find that they need it this year on page four seventeen you'll see their appropriation summary so you'll see that they're not authorized anything for fiscal years twenty and twenty one but since they did receive through peer this appropriation they would like five hundred eighteen thousand dollars for fiscal years twenty two or twenty three which is the executive recommendation. Page four twenty one is the next appropriation which changes will start on page four twenty it's their funeral services cash and treasury appropriation it provides for the personal services and operating expenses of the board. Funding from the cash is derived from licensing renewal fees annual permit cost that pertain to burial associations cemetery maintenance embalmers and funeral directors. The request doesn't change much it's an increase on page four twenty one of approximately twenty one hundred dollars. You'll see the corresponding increases only and personal services matching and that's due to salary adjustments that were made during the nineteen twenty one by any of. On page four twenty two is our next appropriation with the changes to the market stabilization grant at the federal appropriation. Once again this is another one that was established through miscellaneous federal grant that was approved by peering council back. In June twenty first of nineteen. This provides for a study of the cost and utilization of market place plans that are derived from the state Arkansas all payer claims database an actuary is contracted to determine whether options exist they could lower premiums and stabilize the health insurance market in Arkansas through the use of a high risk pool reinsurance pool. The agency is requesting restoration of some regular salaries personal services matching some operating expenses conference and travel and some professional fees. It would also like some increases in professional fees and promotional items. And this is just so they could utilize anticipated increases in the federal funding that they're expected to receive to support the program so on page four twenty three again you'll see that the authorized amount is zero for fiscal years twenty and twenty one but they're asking for two hundred and thirty two thousand five hundred dollars for each fiscal year twenty two and twenty three which is the executive recommendation. At conclusory marks for this division ma'am. All right thank you first question Representative Boggs you're recognized thank you madam chair and I'm way over here again. I had to leave for a second but I'm back now and so what as I look at all of you all's conference and travel expands one of them goes up by a hundred thousand. Ones go one up from seven seventy eight hundred to thirty five thousand ones go one from. A forty three two hundred and fifty. A can you explain why you're. Conference and travel expenses jump in. I mean I can't add that fast but it's probably close to three hundred thousand. If you go to page three eighty five that the first one nope three eighty one attack that one conference and travel. It was a eighty six thousand and you want it to be one hundred eighty eight thousand. And then if you go to page three eighty five the it seven thousand eight hundred twenty nine and you want it to be thirty five thousand. If you go to page four seventeen nine. It's forty three thousand in Eure wanted to be a hundred and fifty thousand. And the. Page yes. Page four twenty three you're going from th six hundred fifty to three thousand. Quite a big jump in and from a conference and travel expenses especially with code going on. Helena claimed insurance commissioner and I'm going to the okay to start okay and then Mary Davis is our chief financial officer and I'm sure I'm going to allow her for some some more detail of each each of the divisions your age to the one you referenced were different divisions with different missions within the agency so and to those were some big job that I personally would like to look a little closer but most of the travel that the insurance department does is isn't reimbursed in some form or fashion by by the industry that we regulate and it's on a regulatory basis is very little of it is just you know conferences that we could compete continuing ed type of thing so there there would be The but you're you're right during during cope with it seems like it would but maybe maybe not be cool be quite so high May did you happen to see any of the notice of why that was the big job so we saw a merry Davis insurance department some of those have to do with the way that they were put in their federal grants and they're approve that way so that's how we add them in there some of the other ones we have to take a closer look at I'm not sure exactly why the travel is so high for this biennium I wish I would look at death and a reduced this to what feels more like what your actual actual expenses versus having that large jump I don't think it's probably that necessary so I would like for you all to look at adjusted my at AM madam chair I have one other question on page. Was it's page four seventeen can you tell me what promotional items that is it's going from ten thousand to fifty thousand. Page four seventeen. So that is promotional items that have to do with the myth of federal grant that. Information came directly from our grant manager that's how they submitted it and it was approved through their grant so we're just increasing appropriation to match what they requested. Okay can you get me some more information on that please I can't thank you thank you madam chair. All right. Representative Cavenaugh you're recognized for a question thank you madam chair my first question is on page three ninety three on the governmental bond operations the fidelity mantras fund. Down in your funding sources you have five point one million dollars and investments but that goes away what happened to that investment. The investments listed in the fund balance for the twenty twenty one. Twenty twenty. Twenty twenty two and twenty twenty three how come it's list not listed under investment any longer is that not I mean are still is a still not and investments. Or is it cash available to you. March and. Check the DFA office a budget that was put in there on the assumption that those investments would be cashed out for the at the twenty one fiscal year. Have they been cashed out. I'm not sure I can look into that for you. I'd like to know that because you're present none of a budget appropriation based on some information if you don't know it's accurate or not my second question is going to four fifteen which is the public's school insurance trust program. The twenty million dollar. And Jake you may need state for this but the twenty million dollar appropriation is that the twenty million that we were given to make sure that the fund was not in the red because we had that issue with it yeah came to us we authorized to get that additional funding is that that a funding there. You're talking about for employee insurance yes No that twenty million dollars for employee insurance would be in the public school fund this is that you'd be in a different a different budget all what is the public school insurance trust fund then. So this is apparently for. Insurance for public school cars. One. Public school pay premium into this trust fund to have their vehicles covered all across the state so if there's a claim on a school bus in a wreck or something they submit a claim actually through a two this trust fund this man is within the department of insurance risk management division and they they handle schools insurance that would that be so we're self funding basically the school the insurance on their buses is that what and that's what this funding as is the the risk management for that self funding yes okay thank you. All right. Representative Payton you're recognized for a question. Thank you madam chair. So going back to a page three seventy six and seventy seven which is the. Big summer. On three seventy six under funding sources. In nineteen twenty fiscal year you had special revenues of fifty four million. And then it seems like all the projections going forward after that is. Thirty nine million please tell me what's in that bucket and what what the drop was on a special revenue. So I think that that's just actual versus projected on of what we're going to Collect an insurance fees for the The license agents. And brokers. So if we look at the bottom line on page three seventy seven. Our next to the bottom line your fund balance jumped. Okay if you go to nineteen twenty fiscal year your fund balance started at thirty five million. The jump to ninety five million I would assume mostly because of that special revenue. But then were drawn it down as you go over the forecasted years here. Seventy two million than sixty two and then fifty four. I'm going it's great that were put in the fund balance to use but when you're out go exceed your income yup people the bigger downfall you know. yes Sir will certainly mindful of that the you know when we put together our our revenue forecast and you can see this in that difference between the actual expenditures in nineteen and the projected for twenty that big difference there we don't want to spend too much so we forecast a revenues conservatively across the agencies so what happens then of course is the because the conservative forecast were able to maintain lower spending keep a nice tight budget on it but then when it comes in above that forecast we end up with that fund balance so part of what you're seeing there is as trying to forecast conservatively and spend down that for that fund balance part of it also I think might be recognizing that at some point in time those conservative forecast might come in a little too conservative we might end up actually collecting more than anticipated I certainly appreciate that but that that's what generated my original question you know what is the revenue that makes up special revenue. That's fees on brokers and insurance companies on for. They're fees and assessments home insurance companies insurance agents Lysons and brokers and anybody who says nothing special about it is your is your full time revenue year after year. It is not one time funding right correct okay thank you thank you madam chair all right of Representative Wooten you're recognized for a question. The question is. A question has to do with your personnel and I respect affected. You operate own special revenues insurance companies and bonding and people like that. And. But we have a we have a stewardship responsibility. Do you have twenty four positions out there that have been vacant for Over two years. And that amounts to one point one million dollars all annual salary an average of forty five thousand. And I was interesting to also note the final position or the deputy director of the men vacancies twenty seventeen. Well one would you hold A deputy director position vacant. For. Three years. And still carry it. Good question about the deputy director position I'd like to look in that little closer to when use undue card I'm only been in the job since April but and we're all sort of new but I do want to look at that deputy director position the twenty four it's hard to know exactly what the best number to keep meal on the we we have massed on the thank you The We added twenty nine new insurance companies this last year and twenty two the year before and about that many the year before so there's a capacity concerns we try to be prepared for we've regulated insurance companies every day looking into their financials making sure they're solvents they can meet their obligations to the citizens so whether it's it's that said we like and like to keep some positions on I don't anticipate that growth I'll with twenty four the magic number Sir I'm I'm not sure but it it increases the the with the workload of our agency every time we bring on a new insurance company which we think is good for the state commission I can appreciate that. But the problem is these positions have been there for two years and you just said you had a twenty nine last year new companies I'm not I'm not you know art because we K. and I came we can take that money away is we could in the other state agencies but you certainly could perhaps use it then micromanaging but I just see money to that appear that they could be used and maybe other areas The. To hold on what would justification what time are you trying to fill a male if you had a twenty nine companies and we we have several of financial examiner positions that that stay advertised acts as a bill or the in this pool of twenty four the amend bucket yes Sir yeah. Then I have another question madam chairman known one is Trent transparency initiative della buddies. Health. Search for nineteen. What is a. So. The there is a database of of insurance company data that that is collected to do to do research I'm sorry total of my papers so the. That that the collects ensure that we Authorizing instruct insurance companies to protect to give data to the all claims payor database and so the the Arkansas transparency initiative does that and so they they you conduct research projects and and things such as that to me we had to pay people to be transparent to be truthful the open. That we have to spend five hundred eighteen thousand dollars. Well then speak well of our society. And. Of the of the the companies hi well I think the the the idea is to to get their data and to to use that data for better public policy and and legislative decisions for that matter so so it's it's the transparency was a term mmhm well for my time budget that's that made may or may not be the best term for to title this program. Right now the only on page three seventy six. You go to Ellen compare actual to several of your and I'll just point out. State employees State employee claims you spent twelve you're asking for sixteen million appropriation. Governmental. Governmental bonding board operations three hundred eighty four thousand were asking for three three million and it goes on and on public school employee claims eighteen thousand in your and your ego appropriation of four hundred thousand. I guess the most glaring one is a public school is in a school insurance fifty six eighty. Eight million expended and you're asking for twenty million that's that's twelve million dollars. Well what do we do that. In all those those teacher those I'm require little. Little explanation but they Those Ralph trust fund those role. Money in money out based on claims experience so our managers would have made that determination of what they needed based on on on on claims that they expected and the money they need to expected to pay the on going claims. What what school because the school public school fund over to John twelve million dollars. That would just be if there is some sort of catastrophic claim like if we had a tornado or excessive hail damage or something and there was a whole bunch of claims that one time we keep that appropriation so that we could in the event that that would happen fill those claims. The total budget fifty seven million to ninety six million as I am and chairman thank you. All right of a Senator hammer you're recognized for a question thank you Mr chair on the all payer claims database that was reference while ago they actually collect data from all the providers and produce a report that helps us when it comes to rate determinations and other aspects is that is that correct. Thank you senator that that's correct rate determinations of and just subject matter that you might need might be of interest of of public policy that to for regulation change a law changes right date they kind of their the data collection center FOR of rate. Rachel providers which allows us to go in and make an independent assessment of where we are as far as to the claims that it and the data that goes with the claim so we can adjust accordingly what might be an appropriate insurance premium to charges that a fair assessment thank. One of the things they would do is much more a date that would that would be one of things that would be used for exactly that the they would also take on particular subject matters of research that that that you might be interested in for proposing making right like to beer my contact them for information to get it from them in order for us to make policy decisions directly okay the the next thing I want to ask about is on It's on our page three ninety one it's the state employee claims. Yes Sir. I noticed. On the investments under the actual. That that is not carried forward and then I noticed on a couple other areas that where we had depended upon investments before it seems like we're not depending on the meat anymore can you can you explain why the investments have been removed from the funding sources. Get some help on that one I think it's the same thing as before there were projecting to show those is there being cashed out so they're moved into the fund balance for those. And what do we do that as opposed to leave them in investments because it would seem like that would be up. On going revenue stream or just help me understand the reasoning please the reason we catch them out is because we need to use that revenue to maintain operations so we would be showing that is cashing out out of the the investments and using that money down to meet the different commitment items that a list of a. Maybe this goes to represent of Peyton's issue a logo or not but. So are we just prolonging the inevitable or how are we making up long term what we're having to cash out now in order to mate meet our obligations. It seems to me like action or for one C.. I don't have anything left for retirement down the road appropriation my question is and I'm going to see if I can confirm this is this doesn't show us the were the investments that are we've got out there I need to confirm that this would only show fund balances right. So it doesn't necessarily sure the full scope of what might be available to that agency at any point in time. But but I guess go back to original argument if we have education investments because. We have to meet obligations that we're committed to. Are we going to have to continue that pattern of cation other investments down the road nor to meet our obligations and a that just doesn't seem like a logical approach to meeting our obligations that were cashing in investments. Thirty I understand I think you the purpose your question but when employee claims come up it can be somewhat per unpredictable and how all that works those investments are there for that purpose in that region so in this case at least it's not so much that were not of planning correctly were somehow another we're gonna run this into the gate you know for civil future I think it's more a matter of managing the risk associated with those claims. Okay what what will have a. Let's have a sidebar caused okay like you more information about that where where in the numbers of your budget do we see reflected taking over the of market place. That was moved over to the insurance agency word word we find that in your budget. And if you look on page three eighty one. There's a line item in our insurance trust fund for a him expenses of five hundred thousand per year. Okay but does not generate revenue to the. Insurance department. We did in twenty one moved their funding over to the insurance department I believe it was about four point six million dollars and that is sitting in a trust fund now. Is that trust fund listed in any what we got in front of ushers at some shepherd we need to ask for free one seat trust fund balances. I just wonder where the money went. I'm not sure it would be reflected in that on page three eighty one but I can confirm that for you to see if it was reflected in that fund balance. Okay I'd like to I'd like to see that and as far as the revenue that's being generated by L. handling those policies now. Does that money and up in your fund sources or is it going to that of trust fund account. And we're no longer generating revenue for the A. him one day moved a hand over or they got rid of the fees associated with that so that four point six million was the balance that we transferred over and there's no more revenue that's right generating art A just like to see the fund balances please okay alright thank you major. Right thank you Representative Cavenaugh you're recognized for a question. Thank you madam chair. All right my question is going to go back to page four fifteen. Back to the school bus insurance self funded. So the reason I'm asking this is I have a school district in my I have a school in my district they had a rendus accident last year. Kids were hurt but had to be cut open it was not good. When I spoke to the school they were have an issue getting money from the state for their crime. Can you send me a list. Of the claims that you paid and how much. four we will be happy to do that okay thank you. All right thank you seeing no other questions do I have a motion for executive brit okay motion do I have a second all right all those in favor say aye all those opposed motion passes thank you all right we're going to The security state securities department. It's Hamilton you're recognized. Thank you madam chair paged four three two. Is the state operations appropriations for I'm sorry were yes the state securities department. If three appropriations on page four thirty there's only one was changes so we're going to start with the investor educational procreation page four thirty three. half the fun that they use is designed to work with the various nonprofit economic education religious civic and community groups and they provide economic and financial education primary to junior high students through first year college students and senior citizen groups it's funded by fines and fees penalties levied by the department agency is requesting under ninety three thousand five hundred each fiscal year. This includes or an increase in our operating expenses of twenty five thousand so they can work on the public outreach and education programs. The executive recommendation allows for the agencies or question will just see that in the first line of the operating expenses increased. That's the conclusion of my remarks just that one appropriation changes ma'am all right thank you I have a question how many context did you make. The last millenium. Yes ma'am Eric months in the securities commission. We have made. Contact almost every school district by the email we also contacted civic groups we've actually been in the field speaking to groups my teen years I've been there five months in the first thing that hit my attention and visiting with the national Regulators and other securities partners is that we We got to get our financial literacy numbers up Arkansas this ties together so we're trying very aggressive efforts to educate and work with school districts committee group six clubs. other organizations to help educate the public and that's a great question because we've had the covert going on there's been quite the the numbers are rising with a covered scams we co code fraud schemes and our staff to spend what time with that we're seeing those numbers across the state we've actually has a few orders out for that and pursuing trying to educate the public about the importance of the the fraud well I think it's important as well and a notice that you were doing the A economic and financial education primarily to junior high through first year of college. And I think that's very important so all right we have a question of senator Elliott you're recognized for a question. I thank you madam chair or you got there quicker than I thought and so but my question I was trying to find how many people do you have that you can commit to this this program of the the financial investment literacy that's a great question Senator Elliott thank you we have one staff member there's dedicated that he's a has over thirty five years experience in investment industry a lot his efforts have been shut down because a cove it cannot get in the schools as an update also does lower the prisons and others have not personally I've stepped up so it's too it's the commissioner and other staff for we're trying to also bring on another staff person to help educate them train them to work in the financial have you made that request to bring on that other person do you have a slot that way for you can do that no. We have extra help positions I'll be from very Frank with you I've been on the job five months and evaluate everything's administrator yeah learn this in one place you can get represented would know your site It appears to me because I I do agree totally this is really important but I was just trying to get to the page were quickly I'm there now and clearly I can see that this is a big responsibility are I don't see we could. Even remotely have enough personnel to get this done with one but two people correct but we're trying to make our impact that we can with the dollars we have. Lot of this and is we were trying to develop partners we work with Arkansas right and this will work with the school district other civic groups that will maybe will help them and materials are. Partially fund where we can we need more people but I think to make this work is to build by hand and have other groups ever work to work with and I think that's absolutely crucial and it's just that I know because I've worked with programs like this year is as an educator where we would build out you know trained in the trainers and so forth but you do have to have some folks try eight out there so what that's why I wanted to be sure and have some folks who can do training because you obviously have another job you do I'm assuming. so anyway I I that's just something I I really would like to see us for sue and I might also add if you don't have Priorities of set up as opposed to people just a cop respond as a request I think you would really be a good thing to think about this in terms of what we know about our state and set some priorities pro actively from where you all are like geographical priorities because it's always going to be the case but so many times where people need it the most as not for the request so coming from because people are just trying to get through day to day life and this may be one of the things that's not that's not a they're not they don't have one of the skills to get through day to day life even so that's just a suggestion that's a question we have a speed on my staff and it reached out trying to reach rule Arkansas law schools and we have a the stock market game is was very popular for the young people we can learn it and they'll realize and that's been the best tool we have to do to get interest educate others and actually spoke to some other groups and again I give my own family my mother's a college professor education to roll that experts experience Burch and actually helped her a little bit now she's at home with the stock market game right so it it does teaches everyone of all ages. All right thank you very much thanks Adam chair thank you a Representative would you recognize for question. Thank you madam chairman of the commissioner do of the you mentioned the stock market game courses in conjunction with the economics Arkansas all right. The man and the senator Elliott that's one of the best I'm expenditures of state money that I know about relative to helping economics Arkansas who sponsors the stock market game throughout thank close to a hundred and fifty maybe more school districts where the thing and competition with each other teams within the school and then within the area of the Joan of the state and it's it's a tremendous program they'll have three or four five three or four hundred people attending the of rewards the bank with a they're not able to do that now because of the virus but it is a tremendous program and I commend you all for your help in work in that program thank you thank you madam chair all right seeing no other questions to have an executive brick so all right. All right second okay all those in favor say aye. All those opposed all right motion is adopted thank you very much thank you chairman thank you committee one back we're going on to Of the bill the developmental. Financial authority. A miss Hamilton you're recognized thank you madam chair this is development finance authority. You'll see on page four thirty eight that they have five appropriations there are three of them with changes. We're going to start with there cash operations appropriation on page four thirty eight and this is another agency that does not have general revenue they're funded primarily with federal revenue and cash funds. First operations. Is cash funds it provides for all their operational costs including the federal housing assistance program the head home program other financial programs that they administer. And as I mentioned before this is a cash fund but it's derived primarily for federal funds cash for every news from bond proceeds that they put in a cash account. Skews me the agency's request is for both changes of the biennium and reallocation day positions to provide sure services for the department and restoration of twenty three thousand capital outlay to replacement vehicles. On page four forty you'll see there appropriation detail. Some corresponding decreases the the executive recommend the executive recommends sorry. In regular salaries in personal services matching vision decrease from authorized appropriation fiscal years twenty twenty one A positions there's also a corresponding decrease. And operating expenses from six hundred seventy five thousand six hundred eleven thousand. Over all there's a seven hundred and fourteen thousand approximate reduction with by any of. Along with the a positions that are being transferred to share services. Next appropriation has changes. Feel moved to page four forty one. This is the Arkansas housing trust advisory commission appropriation is cash. We are providing a source of funds for the communities redressed affordable housing needs they work with housing. Homeless shelters in Fort Smith they do have some homebuyer education classes around the state and they do have programs to promote stable housing. They're funding is contingent on the housing trust fund advisory committing securing a dedicated source of funding right now they do not have one they have considered donations grants and federal home loan banks but they have not yet secured a stable source of funding they're asking to discontinue an appropriation about seventy six hundred of its reflect the current cash balances in here that the ending which is what the executive recommends and you can see that. On page four forty two that reduction there. Thanks appropriation changes you'll find on page four forty three and this is our operation of creation this is again funding with cash that are derived from investment SunTrust indentures which allow the authority to dry eighty basis points per and of the outstanding loan balance for their servicing program administration in general administrative costs and student loan interest. There are certain title changes that they're asking for but over all there's an increase proximately is the executive recommendation is for ten thousand each fiscal year. There are some salary and rate adjustments that happened during the biennium to reflect any regular salaries and personal services matching. That's the conclusion of our remarks for the changes in appropriations for this agency alright thank you a. Senator hammer you're recognized for a question. Thank you madam chair I think awhile ago I asked a question and they laid off on you all as far as the the. Home inspector. The home inspectors underneath hill. Hi Marco nine CFO of the development finance authority I'm the I I did hear that comment I'm not sure about a a home inspection board we don't currently administer that the we do do some home inspections on our single family and multi family programs out of our home a federal housing program that we contract with the home inspectors to do that type work but nothing as far as like the home inspectors council or board okay the shared services transfer on page four forty. What what all is included in that number that you transfer if I'm reading this right you're transferring that over to shared services so what all is wrapped up in that number please. A yes that is a eight positions that we're transferring over to shared services and that would Intel two different numbers it's a five hundred eleven thousand dollars in salaries and about a hundred and fifty eight thousand and personnel matching. Search it's all salaries and wrecked. Okay as far as any other costs associated with moving over to the auto building where do you account for those. those are that's a that's a great question actually we have purchased that building and then we had a management contract with the division of buildings services are DBA how to manage the building and so they would collect the rent and they would also use that rent to pay the expenses and then recently as a few months ago we did a what we call state facilities bond issuance where of that ad for the development finance authority bonds were issued to a pay AD for back and then the leases of the building support the the principal and interest on the new state facilities bond issue and so to answer your question those particular expenses it was kind of in and out deal we did non the building very long and so they would be shot shown in this appropriation because they were in and out within a year and they were taken from the netted against the revenue at a DBA under the management contract. So the building that after moved out of you you owned in the clear that building was also a nine hundred west capital is also what we call state facilities to hill and so the the way those work let me let me tell you how they work and so we retain title of the building and so there's bonds issued and then the laces of the building pay the interest and principal on the bond and then at the end of the bond deal when all the bonds are paid off the title reverts from us over to deviate. And FOR which building did you bond nine hundred west capital and then we also bonded the Verizon building. How much was the bond on the Verizon building at twenty say seven million dollars yeah about right at twenty seven. Okay okay bumps you manager thank you. Alright thank you of. Senator Elliott you were recognized for a question. Thank you madam chair of this of this I don't know who to get get this question trade might even be Jake out but I'm asking a question about the house interest If anybody knows in the administration why we can't get any kind of commitment to fund in the housing trust. I did brine Scoggins are seldom finance authority permit commerce it was a it was a appropriation from many many years ago that it'd been brought down but I I don't have an answer for your question as to why it hasn't received any additional funding we just brought balance down as we found those eligible projects. Is it something that is this something that. It just seems to be a useful tool that. Is not a useful to. Do you have any idea about for the not so useful to this state are have for not him well it was it was used to I think help utility deposits may be security deposits for that were more moving into homes and it's it's individual grants to various areas of the state so to the extent yes I think it was useful as to whether or not as priority would be to well that's obvious is a priority I'm asking is I'm I'm I will pursue it later you know during the sessions but We've had it and the the most we've ever funded it was What is a million dollars by one point with the general improvement funds and that came from the legislative side which no longer exist of course now. But it's something and we look at this carefully and think about what it's meant to do the very best we have ourselves in right now but that Kobe taxes and not just something like this could be very useful but it's also a good tool just for a dressing the housing needs that we have in this state so I I just want to put on your radar when you see me coming that you won't be surprised. All right thank you thank you madam chair. A ladies and gentlemen if you look we have another page left of our agenda and also look at the clock so A I'm going down to Representative would. Okay thank you. A. In a city where you're moving a positions. A. But I don't see him soon adjustment in year budget would you have you have the. Fifty six positions. Will earn twenty twenty your authorized sixty. Eight. At least fifty two which is what your budgeting but here's a situation the city I ask you about. Fifty four positions the the fifty six position ever have average salary of fifty four thousand. The fifty two positions around have an average salary of sixty two thousand. The benefits managing or sixteen thousand four fifty four. For fifty six positions and their nineteen thousand or twenty thousand you might say a year for the fifty two positions. Hello see we're we're is a half million dollars of the transfer and salaries. On the if you look on the twenty twenty one authorized we had a three point seven three five nine million authorized and then if in the biennium of twenty one twenty two twenty two twenty three and then are also our budget of a twenty twenty one you'll see it's right around three point two million and that's where we moved about half as. See that have million. The salaries go up from the actual okay three from three point zero to three point two four. Million in when wire the increasing from the leverage of fifty four thousand in your actual to your request of sixty two thousand and that's a great question I you know historically at those run a personnel of anywhere from fifty six to sixty people and we had a kind of a a period there we had people leave and we had people retired to replace those in the market it we do a lot of complex financing type work and from the time that those people were there to the time we had to retire in the market the you know to get someone to do the type of work that we do it's just a cost more. Call eight thousand more yeah just I mean to get qualified people to do the work that we need them to do yeah absolutely. Thank you manager hi thank you seeing no other questions who's your motion for executive bridge all right a motion the second all those in favor say aye all those opposed motion passes thank you very much thank you ladies and gentleman we are going on to good first of all we have a left on the audit findings and this is for work for service. The auditor would come forward. And it behind the intent to. Thank you very much. Thank you madam chair my name is David Webb I'm an audit supervisor with Arkansas legislative audit. There are two findings from the June thirtieth two thousand nineteen audit report for the department of workforce services they are attached as the last two pages to your agenda today. In our first finding we pointed out that in fiscal years two thousand and eighteen and two thousand and nineteen the agency paid a company twenty thousand dollars approximately for an independent assessment of computer software. The individual who owns the company that was paid for the assessment was also listed as a lobbyist for an IT company that had developed the software. We recommended that the agency discontinue the practice discontinue contracting with the vendors when there is conflict of interest. Our second finding disclosed to sufficiency than errors related to a contract between the agency and a not for profit organization that administer the Arkansas better dads program which used federal grant funds from the temporary assistance for needy families or TANF program. During the first year of his contract we noted duplicate reimbursements not disclosed related party transactions and payments for cost of an event that was hosted by another entity without clear evidence that the event was sponsored or supported by Arkansas better dads D. W. S. or tennis. Thank you madam chair that concludes the findings for the state agency right uh we have a question. Of represented Cavenaugh. Thank you madam. Chairman but this is really going to deal with the agencies on the the agency down. I'm sorry. David bell department of commerce. Okay this is dealing with the first on a finding yes ma'am okay so from what I understand is you had an independent person come to a value wait your software. That independent person worked for the company. And that company was a lobbyist for the person that got awarded your software package yes ma'am as a clear conflict of interest I I agree that package that that contract was nine point four million dollars. Yes ma'am I have the contract pulled do believe is the correct contract. What I find strange about it there was a no would disclosure statement in your package. At I would. Looking at it when I looked at it it was and. Was not a well procured Piece of software I wish they would and so right now within the department of commerce or doing a pretty thorough overview or evaluation of conduct some the procurement process is that I've seen since coming over but I would I would say that was a pretty serious procurement issue. I agree with you under percent on that yeah there's there's no doubt that this is a conflict of interest and it is a major issue yes ma'am. And we can try to resolve it but what we've gotten is we hired somebody just to steer us to a certain program and that company we have I know I have a ask about every contract they have because it's a large contract and we spend millions and millions. Probably close to a hundred million dollars with this company. This particular company that has this that have this contract over the state just buy the car did not know that across the board yeah ten million seem like a lot to me just looking at the single contract yeah well that they're used they were used everywhere and we've been trying to weed them out for awhile. But. I don't understand how this happens how when we have a set procedure. That is to stop these things. How how they're so blatantly not followed it just when that procurement was done it was there were significant step steps that were missed. Represented I get is an object to to her for David that's happened prior to transformation and when DWS was not part of commerce and myself David or Dr Childress were not part of the organization so we we get the information in the audit is as you all did too and it was just as disturbing to us as it is to you guys. And I did ask within the within the department for some background information because that I did find that to be a significant issue and did we find out who. Actually took care the procurement that didn't follow the guidelines and didn't do the procedures I response to who is the person responsible for this procurement hi I have not determine that it but I'm not asked that question either. madam chair I'd like to know that information. All right we'll see if we can get that information act thank you A just a curiosity did you recoup any of the funds. No ma'am I don't believe so the project was completed successfully but. The quality assurance piece of it which was the conflict of interest I don't I don't believe there was any effort made to. To. Do REDETERMINATION of the and all right a. Representative Hodges if you would the click on. Yellow button there we go. Recognized for a question. Thank you madam chair my quote my question is that you know do. Process we do you guys take competitive bidding from several different companies before you make a decision all wood with that the you know the first proposal you got and then it with it with a. Proof in this particular instance I'm not sure normal procurement process you have to certain thresholds what I tell people is even if it's a low threshold purchase even if you call three companies I really prefer that people competitively bid any sort of purchase that they're going to do if it's about the you know even a small amount the ten thousand dollars meant that if it's something that you know you can get. From multiple suppliers I encourage people to the Speaker phone call people so it is office of state procurement when you get into the larger thresholds were required to do those things a lot of times people try to do request for qualifications or requests for that's really the primary one I really prefer men the you look at price and qualifications and that's what I always tell people that's kind of my philosophy toward procurement and to be very transparent and very open and that's the main thing that tell people. Be aware that when you do something like this you you've got to be open and transparent and you've got a follow a process and you and when somebody comes behind it looks at it you need to be able to explain to them this was my thought process for how I did this. Apollo question thank you after so. You guys were aware of this prior to the prior to the finding yes Sir the first time I saw this is when I solved when I read the audit funding for the for getting ready for the meeting. The Representative what is this happened before DWS became department part of the part of commerce okay. Yes A correct this happened pre transformation okay thank you thank you Mr. Seeing no other questions need a motion for executive I'm sorry I'm so I'm getting ahead of myself of. All right to. We're going to workforce services miss Hamilton. Thank you madam chair were still in volume two we're gonna start on page four fifty two you'll see that the agency has twenty seven appropriations one of which is not requested for continuation there are thirteen appropriations however was changes so I'll go through those as quickly as I can starting on page four fifty eight. We've got their operations appropriations this provides for the personal services and operations of the division and the funding is from that vision of workforce services trust fund because revenues authorized by the US government for support of various programs in any interest that they recruit on their revenues. Skis me the agencies requesting continuation some growth will positions that were originally approved and A. Aussie and the positions are going to be necessary to meet the ongoing demand that they have for their your programs on page four fifty nine will see their appropriation detail. They are. Experiencing an increase in the regular salaries and number of positions and corresponding personal services matching. I also see that they've got two point four million capital outlay that they were authorized that they have not yet utilized. The executive recommendation overall is for increase the net of five positions in the decrease of approximately five and fifty two thousand fiscal year twenty two one five oh seven in fiscal year twenty three. Thanks appropriation changes on page four seventy three. This is a cash appropriation for their unemployment benefits and expenses. The utilize it for training allowances that pays allowances economically disadvantaged unemployed and underemployed individuals these are for payments to participate contractors to reimburse private nonprofit employees for costs incurred to train individuals there you advance repayment to repay loans taken from the federal employment employment Sharon's trust fund and FOR disaster relief payments appropriation is funded by federal dollars again it's deposit into a cash account the would like continuation to reallocate approximately a hundred fifty thousand that you'll see on page four hundred seventy four. From their T. A. a vendor payments appropriation to the payments to park contractors line this is approved back in December and a LC and you'll see the reallocation on page four eighty seven we get to it the executive recommendation allows for a request and you'll see the appropriation increase from there authorized in fiscal year twenty twenty one of eight million to about eight point one million in fiscal year twenty to a point one million fiscal year twenty three. Next appropriation changes is on page forty one. This is your building improvement land read ACT is a cash in bank appropriation. We wonder if a set excess funds collected under the federal unemployment tax act which is the food tax these are available for administration of their employment security programs. The agency is requesting that they continue their appropriation of three point one million dollars which is the executive recommendation you'll notice this is a federally funded appropriation and the purpose for the re ACT uses a so they can I have construction improvement of buildings rent lease costs paid for acquisition of any data processing equipment and our land and FOR any payment of salaries and related costs. Next appropriation changes on page four eighty five thirty WS federal grants appropriation. The purpose is to use future unanticipated for workforce development grants as they become available. They would like to be able to apply for any discretionary grants as the US department of labor releases them they would like to continue their current appropriation of nine million into the next fiscal year which is the executive recommendation. I'm sorry this agencies requests executive recommendations to cut it by half to four point five million I apologize. Thanks appropriation which changes is on page four eighty seven. This is an occasion treasury appropriation. It provides for payments of three U. I. benefits and expenses and I mention the reallocation to their trade adjustment assistance manners that's what you're going to see on this page on the next. A. Appropriation summary on page four eighty eight you'll see that reallocation at the request of the hundred fifty thousand dollars. So they're authorized appropriations gonna decrease approximately a hundred fifty thousand from a million to seven point eight million fiscal year twenty two and twenty three which is the executive recommendation. There are some appropriations and are not on this list but I'm I'm going to go through may have changes. It's all right thank you madam chair we're going to continue on to page four eighty seven. I'm sorry page four eighty nine. This is a supportive services Cassian treasurer appropriation that they Utilized because they require the US department labor requires two payment methods recipients of these reimbursements and they can receive funds either via electronic funds or an alternative method of payment so they've got to appropriations for the support of services the funding founder percent federal and they're requesting even though there's no authorization currently they did receive it through appear in a aussi they're asking for continuation of the hundred thousand dollars an appropriation that they receive from the cash on holding account transfer. At C. executive recommendation for the next fiscal year to fiscal years. Page four ninety one. And FOR ninety two with covered page four ninety three their adult education state operations there were a number of appropriations that came over from department of career education information so the use of the appropriations or going to go through next. The first one is there state operations appropriations in on page four ninety four you'll see that this appropriation provides for administration personal services and operating expenses of the adult ed program it's a general revenue funded program and they're asking for an increase of one position for thirteen fourteen and then the corresponding increases in regular salaries and match and those of the pretty much the only changes requested that of the executive is recommending in fiscal years twenty two and twenty three. Page four ninety five is our state appropriation FOR their adult basic education program it provides a state match requirements for the adult basic education federal appropriation that we saw earlier on on well what we're gonna sing on pages four ninety seven four ninety eight again corresponding matches and regular salaries in personal services a requested sentence an approximate increase of about twenty two thousand each fiscal year there's gonna be a title because a title change for positions and we classifications but basically that's the only change that we can say. Page four ninety seven four ninety eight the changes that I mentioned this is a federal appropriation again for adult basic education and the funding this required is a twenty five percent state match. Agencies requesting continuation of some miscellaneous federal grant positions that they received this was approved by LC back I think in February of two thousand nineteen and the like a continuation of one federal grant position. To utilize our town of funding for an adult education program. Executive recommendation allows for this and you'll see the changes on page four ninety eight or there's an increase in three positions with corresponding mansion increase federal dollars for regular salaries in personal services matching and operating expenses. There's also increase request in conference and travel. In all these results of the miscellaneous federal grant that they received a transfer from an account. Thank you recommendations for these requests to be approved. Next item is on page four ninety nine this is the adult literacy program covers commission is funded with the public school fund. It's a transfer from the department of education division of career and technical education. Your slight increases in salary and match adjustments and those are the only changes that are requested the very small. Thank you recommendation allows for the agency's request for these changes to continue into the next biennium. On page five a one we've got the adult basic in general education this is again funded with the public school fund and education excellence trust fund this was a transfer from division of career and technical education. There's a slight increase that they're requesting from nineteen point eight million to twenty point nine million for fiscal years twenty two and twenty three which is what the executive recommendation as this is general revenue funding. Expropriations on page five oh five this is for on. State services for the blind. Transformation transferred State services for the blind to workforce services were for services is now requesting that this division be changed or transfer to rehab services. they believe would be just be better situated within that division the services the provider for people who have visual on payments and they work with the lines grew the blinded veterans association lines world and the school for the blind. They would like to Transfer this appropriation and you'll see some activity on pages five twenty three of five twenty seven we get to them but this is a general revenue funded appropriation there's some reallocation of positions and some extra help positions are asking for. And corresponding changes in salaries manage extra help operating expenses and other things that they're going to need they believe that the shared services fiscal legal HR admin and I. T. for division of state services for the blind When working with we have services would make the process simpler more efficient you'll see on page five twenty five that currently there's no authorization that they would like all the appropriation six point three million in total to be utilized in fiscal years twenty two and twenty three which is the executive recommendations. And there's one appropriation we don't have to go over it it's up to you madam chair it's up appropriations of not requesting to be utilized during this biennium saw. Hi. As our that concludes my remarks all right thank you a Representative Kevin a you're recognized for a question. I thank you madam chair this is going to be on file for sixty three it's going to be very similar to the question I asked prior which is your investments disappeared again. And so you have him listed as a funding source but they're no longer a funding source so I guess. I want to find out the same thing Jake if I went up to cast out or. Okay that's then and then for sixty five if you can just educate me a little bit about what a stabilization taxi is. Thank you madam chair represented for the question of the doctor chillers and Brian hex from the DWS team come to the table now. All right introduce yourself for the record. Then you're recognized. I'm Brian Hicks assistant director for finance for for services. Sure Reese charters director division of work for services right did you understand the question did you hear it okay. Yes yes in terms of the investments for this account so those are invested at the of state treasury and I think what we're seeing in this may be the same situation from the other agencies that were sent is the state treasury is having difficulty finding of banks that would accept the are certificates of deposit we do and so won't those incentives of posit but no we are having difficulty finding banks that would accept them and in the cities of oil. In terms of the stabilization tax question of that is eight of tax for that the tax region for years are subject to based on state law based on the size of the of unemployment insurance trust fund there's a scale of so the the larger the balance to less the tax is and of the tax will remain a steady for it from two thousand to count your two thousand twenty two two thousand twenty one the denture questions ma'am. Follow up madam chair yes okay thank you on that one one final question is on for seventy six and it just really this goes to all your cash in the banks where is that money actually held is it held in private banks or is it held in the treasury. so. Money is held at either the US treasury or the state treasury depending on which phone you're referring to okay that's all we got cash in the bank there and some treasury yes ma'am okay thank you. All right the Representative Hodges you're recognized for a question. Thank you madam chair up what what can you tell me what the what what's the reason that banks won't accept. A fifth of the pod is. Of what we're told by state treasury is that the banks are concerned that if they except as a certificate a CD even at less than five point five percent interest that they would be unable to earn that themselves to make a profit so the so so we've been trying for several months now to get of funds invested in circuit two tickets of posit and. Right now I have been unable to do so they're not paying very much at all Sir okay thank you. Alright ladies and gentleman I don't see any other questions A need a motion for exit of imminent A seat eighteen who are you. All right to a Representative Wooten you're recognized for a question. Page four. Sixty. For sixty five. You show interest income of two hundred six thousand under actual. For twenty twenty with it all goes away. And rule where did it is that the same situation. Yes Sir he you came firm banks that will take the money or give you a CD of state care. Correct the money is at the state treasury and they are looking for a bank suit to accept that as a CD to try to. Get some return very quickly. You have eighty seven positions. Childress two men and therefore. Over two years the vacant. We're sorry well to. Four million dollars we're talking about. Four hundred and seventy thousand a year. And yes my phone rings off the hook everyday about people not being able to get process have contact or get their insurance payments and and all that and we're certainly we we have sixty vacant positions. I mean we've got a contradiction here and. One one eight one of those sixty positions vacant for over two years those positions are as was mentioned earlier today those were positions that those are approximately the amount of positions that we were looking at eliminating a going into the pandemic because of they were positions that we had during the recession that were needed but then were no longer needed because of the but that the economy being in a in a good state which meant that we did need as many employees unfortunately we still have those positions in thirty eight of those sixty are currently pending being advertised as we speak thirty eight No yes Sir. Question. If an employer gets a notice. An employee is still working. Yes they show up. As a claimant for unemployment and they're still working and they don't have any knowledge of course we know that for all. And then the employer fills out the form at the bottom the explanations since it back in what what do you all do and it will that employer be charged. For his fee when he states on there are he or she states on the form that it that it was a fraud or is a for all. A immediately we contact of the employer we follow up to do an investigation to make sure that that individual did not. Actually fall that of unemployment claim because believe it or not we have had employees file for unemployment while still being employed for an employer well the all up with that and then if it is determined that that was a fraud and filed by someone that you know we have no idea who file that we remove that from the employer's account and I will not be charged what about the employee's account. Well. There's no charge to the employee and we would definitely stop that from that payment no no stop payment immediately. Or one of my police departments to help me it's it's horrendous yes certainly just they've got a computer page at the computer page of reports the FBI involved in that with you all yes Sir FBI secret service inspector general. St city county local. Apartment yes Sir. Thank you Mr chairman all right. Builders thank you a seat number thirty three we have a little trouble seeing who that is. Okay a gardener Senator Gardner. Representative yes yes thank you up. A. State hitter button again please. Thank you thank you very much madam chair at thank you guys for being here I just need an update I too am getting messages from people daily about the weeks but it's taking to get the way an unemployment I just an update on what to tell these folks how the tribunal is going how long it's taking all those kinds of things because I mean I like Representative Wheaton said I've got folks that have already repossessed cars and are are now you know looking at being on the street so we've got to tell them something and I just would like to know what you suggest we tell them. A well first I would. I would recommend that you send their name to me so that I can follow up and see where they are in the process and make sure that they have all the information that they need if it's an adjudication obviously want to make sure we have all the information that is required by the employer and the employee and then if it's in appeals we want to make sure that they are prepared to for their hearing so so yes are either time of in the that time period in adjudication and appeals has has almost tripled but so have the you know the the number of claims have have a multiplied exponentially so I want to make sure that we give them an update so they know where they stand most of the time it is an adjudication of because of the separation issue where there's a there's a difference in a and reporting from the employee and the employer if it's an appeal status most of the time you know that again goes back to you know they they didn't Father claims there was just there was a difference in the amount of money that they were reporting or whether they were able and available for work except for so we want to make sure that they have all the information so that they're prepared and we have all the information so we can adjudicate. Very good thank you very much all right thank you seeing no other questions I need a motion for executive Rick all right in a second all those in favor say aye all those opposed thank you the motion passes thank you very much now we are going on to the rehabilitation services and the miss Hamilton. Thank you madam chair on page five ten you'll see the appropriation summary for this particular agency. You'll see that they have eight appropriations there are six of them with changes. First changes in our operations appropriations. See there funded primarily with general federal revenue. They're requesting. Transfer to positions into sure services that I mentioned the discontinuation of about hundred seven positions this is because the closure of the Arkansas career training institute hot springs was closed in September of two thousand nineteen the continuation of the committee. The contracts services and their professional fees they did receive a missing is federal grant that the guy to continue so the increase in two million in their contracts services in this is to increase their clients their costs and client services and the like to reallocate some other grants in aid appropriation for their projects search appropriation. That's a job training program that provides nine month internship programs for young adults with developmental disabilities and they would like to continue that the executive recommendation you can see on page five twelve there asking basically for slight decrease from the off price twenty and twenty one appropriation from fifty seven point eight million fifty five point six million per fiscal year. The next appropriation pages with changes on the next page this is there I can. Appropriation. It's a federal program designed to make the technology available to accessible to all who need it. It's assistive technology and they do maintain a database was with hunters items available for loan demonstration or give away. They do sponsor training events networking meant your around the keep the state up to date on the newest advances in this type of technology is a hundred percent federally funded in the executive recommendation is for them to increase their appropriation for approximately three hundred thirty seven fiscal year twenty twenty one two six hundred and thirty four thousand. For fiscal years twenty two and twenty three any changes in salary in match of conference travel any of that is due to the transfer that I mentioned previously from the miscellaneous federal. Holding account. Thanks appropriation pages on page five fifteen this is there to state wide disability telecom. This is appropriation that provides telecommunications devices for services FOR persons were deaf hard of hearing blind speech impaired. In the funding comes for special revenues as provided through the Arkansas public service commission there's a surcharge that the use. That accesses per line per month for working subject telephone numbers. Agencies requesting increase in operating expenses FOR casa supplies exit fee for the program and increasing competition travel to attend additional conferences in increasing grants and aid in this is to cover increases costs in new technological equipment for clients. See the executive recommendation is for an increase from the three hundred ninety seven thousand that they're currently authorized four hundred ninety five thousand fiscal years twenty two and twenty three. Thanks appropriation changes on page four I'm sorry five seventeen this is the Governor's commission on people with disabilities fund which provides scholarships to students with disabilities and educate citizens regarding accessible parking. this is all special revenue fund it fifty percent of all finds that are collected for violators to park in the spaces and then forty percent goes toward educating the public about the parking they do have sixty percent of it going to scholarship awards to persons with disabilities and on page five eighteen you'll see the appropriation detail there's a large increase all the operating expenses for about sixty three hundred to thirty thousand for fiscal years twenty two and twenty three you'll see this came from a transfer from the various temporary appropriation holding account as executive recommendation. Page five twenty four. Five twenty three and five twenty four this is the largest appropriation is our operations. I did mention that they would like to move services for the blind into this appropriation. I would also like reallocation seventy positions thirty extra help corresponding match operating expenses for regular salaries and appropriate. Fees. From work for services to rehab services for the vision services for the blind. They're going to reallocate some other general revenue. An increase the cap outlay so they can purchase federal funded equipment should to be in need of replacement so they can continue to run the program you'll see. That these changes. reflected earlier in their budget on page five oh seven. Executive recommendation sorry allows for the agency's request for this change. Last appropriation of we've got is the blind services grants this is something that used to be part of the previous appropriation but they pulled out so now it's a separate appropriation is approximately four point six million. That they utilize to provide grants for this purpose. This is a federal I'm sorry a general revenue fund it appropriation they do have some federal revenues that the utilize and they to use A to enable job seekers who apply to gain some independence secure gainful employment. The executive recommendation is to go ahead allow this line item to be pulled out into a separate appropriation for the next fiscal two fiscal years as a conclusion marks and chair all right thank you Representative Cavenaugh you're recognized for a question. Thank you madam chair my question is going to be on five twelve. Page five twelve which is rehab services operation. On the salaries are asking for an increase but a reduction of positions. And so your average cost of salary before that was thirty four seven your increases gonna be forty it's going to be the forty four thousand so that's the increase of about ninety five hundred per employee. And then on your personal match. Okay it doesn't go up from what you're spending is so there's no increase in that and I have. If you're increase in your salaries how come you don't have an increase in your personal latch. A good afternoon members on the Joe Baxter commission we have services you're exactly right there should be on the corresponding prison personal services matching only to check on my HR department specifically to see why that's not included. A Mr bleed do you have a something you'd like to add to the head. Okay can not do an increase it just with a two year. Another of reason that that could be is on the actual we have to count as an actual position a position that only work three months of the year so even if they worked the work full time fifty two hours a week of A they had some extra help positions for example in there we still have to count them as a full time position for purposes that count the deposition may not get match you may not get those wraparound benefits. Okay. Get because the positions go to three sixty. And what they had was for twenty six now they still have their extra help in a different line but the number of employees the number of employees listed positions is three sixty. There was also a the ACT I facility in hot springs would close down during this year so that was the number of positions that are no longer with the state. But if someone can also figure out why were given ninety five hundred dollar raise it looks like to everybody because our salary goes up a list employees. About ninety five hundred employee per average that goes back to kind of what we were talking about earlier where you're looking at the actual verses the authorized so the actual number of people who are being employed and getting paid verses the authorized which is the number of people who would be budgeted and the number of people would be appropriated at those actual as a at the act at the positions that they're authorized for not necessarily what they're employed. Thank you. All right a. Do you have anything else to add the gentleman that just that damn June two dishes for the record yes I'm Jamie's McKeon the chief fiscal officer for Arkansas rehab services do you have anything you'd like to add up not think they covered that and as regards to the match our actual budget for this year was the five point four million so it is the reflecting going up some for the new biennium years and that workers on the twenty twenty year on the actual part of that year was still reflective of when all of our positions at the ACT I location we're still there for part of that year it the we didn't begin at reduction at the first of the fiscal year so it was like of October and then there were some pay Allison's and so forth so the that's why that figure still law hired all right thank you ladies and gentleman there no other questions in the queue I need a motion for executive correct have a motion second all those in favor say aye. All those opposed motion passes thank you very much. We're going on we have two more of agenda items in their small so we will have the. A miss Hamilton you can get this started with felt waterways commission. Thank you madam chairman if you look on page five twenty nine you'll see that the waterways commission has three appropriations there's only one with changes so will be very brief on page five thirty this is a general revenue fund it appropriation. Support the development of the navigable waterways of Arkansas it also supports the Mississippi valley flood control watch tower river valley Red River valley Arkansas waterways and White River valley associations through the state's contributions line item they have their budget this is a general revenue funded appropriation has fifty thousand taxes and penalties collected from water transportation companies. The agency is requesting their appropriation be increased from their authorized amount and twenty twenty one of three hundred nine thousand two three hundred fifteen thousand each fiscal year on notice that all of the changes are in regular salaries and personal services matching and adjustments are due to matching rate adjustments during the twenty I'm sorry twenty nineteen to twenty twenty one by any of this is the executive recommendation conclude my remarks for this agency manner. All right. A Representative would. Page five thirty one. Agency the operating expenses going from forty seven thousand to ninety three thousand. What what is the increase. Let me check we got somebody here from the agency I believe. The seller. You state your name for the record. You're recognized many of the center Caldwell on the director of the Arkansas waterways commission. All right. What is your question Mr Wooten. All right of yes we're gonna have some staff. involvement here so are I mean the short answer is we did not anticipate that there would be an increase do what now. This. The short answer is we did not anticipate that there would be an increase in operating expense in that budget line item there there was an increase a to the advent warm tax collection that supports the agency of an additional fifty thousand and that represents the difference. A it Kevin Anderson has of something on that so let's listen to what he if the thank you madam chair when when you go across the manual on this you'll see that in their current appropriation act there authorized ninety three thousand eight seventy nine and they just the agency didn't change that level their actual expenditures as you stated or forty seven thousand acquired or less they just didn't change their authorized appropriation level to better match their actual expenditures. Yes good this was. Why do we not reduce that operating expenses for the forty seven thousand. Mostly average over ten years on that. Reducing. Representatives A so we need the ability to spend that ad valorem there was an additional fifty thousand ad valorem collected we would need additional fifty thousand to be able to spend that. Thank you all right. Seeing no other questions on the the motion for an executive director all right in a second. All those in favor say aye. All those opposed thank you or going on to the last one ladies into an incident and non ex. So miss Hamilton. We're we're ready for you thank you madam chair on page five thirty seven you'll see that the department of aeronautics only has to appropriations one of which has changes can be reflected on page five thirty eight five thirty nine in their operations appropriations. This is funded entirely by special revenues that are derived from the aviation sales and use taxes and provide for the examination rating in licensing airports landing field and air navigation facilities on page five thirty nine you'll notice that the increase is requested in the regular salaries and personal services line items overall the executive recommendations for an increase of approximately twenty five thousand he fiscal year and that is the conclusion my remarks for this agency mail all right thank you the new okay let's see. Absent the Wooten did you want to ask a question no ma'am all right seeing no questions of these into executive brick second all those in favor say aye all those opposed thank you so much. All right we start tomorrow at nine ladies and gentleman in the if you would just if you see that you have cups in water bottles and all bad at your place it be so helpful if you would take those thank you so much we are adjourned.