ALC-JBC Budget Hearings (9:00-11:30AM)

Ladies and gentlemen of the committee if you would take your seats we're going to start our meeting. If you take your seats we're going to start our meeting. All right we have the personnel report of senator eads you're recognized. Thank you madam chair the personnel committee met yesterday November seventeenth and review the personnel committee reports for the agencies listed as items one through twenty two this report includes reference the adoption of two letters from the office of personnel management the make changes to their previous executive recommendations the letter shown as attachment to specifically provides one increase in regular salaries in matching appropriation for the disability determination FOR Social Security Administration based on an increase in the number of authorized positions I'll be glad to take any questions recommend adoption of the report the proper time thank you all right any questions all right seat fifty three. Where are you eight okay art any questions. Seeing none we have a motion to adopt I have a second all those in favor say aye hi all those opposed motion. The motion passes all right the. Miss Hamilton. Committee members and Mildred Hamilton their work in the fiscal division of the bureau this morning we're going to be discussing the department of health's budget on my understanding is we're gonna be going over appropriations with changes only so we're going to start on page thirty six in your manual it's behind the tab this is volume one. This is their shared services paying account. The appropriations funded by transfer from their ministrations paying account which you'll see later on in the budget and it used to pay for the secretary of Arkansas department a house out in personal services matching I only mention it simply because it's new to this agency as a result of transformation you'll see the appropriation somewhere on page thirty seven. They're requesting continuation of the appropriation of two hundred seventy five thousand into the next biennium. The next appropriation I'm going to show you their summary first on page sixty six you'll see that they've got eight appropriations two of which have changes. The first page on sixty nine is there help operations paying account. This appropriation sponsor to central locations and ninety to local health units each of these units has telehealth capabilities that allow them to do real time video for their rural areas they also perform some laboratory testing and evaluation they educate the public and they provide accessible personal health services the kidney disease program is transferred into the department of health as were the nineteen medically related boards and commissions that we had discussed earlier the H. back program and the athletic commission were put transferred out of department of health and they went to the department of labor and licensing. This appropriation is funded with general revenue third party reimbursement some federal funding special revenues tobacco settlement funding and some other funding. The agency's requesting restoration to positions they would like restoration of about one point five million in capital outlay appropriation this is both years so they can go ahead and replace and necessary equipment for the local health units they also like to continue a miscellaneous federal grant that they received a fifteen point nine million for both years it's going to be used for covert testing. And contact tracing and some other testing. They would also like restoration of their general revenue category T. funding that was cut in the last budget this is approximately four point one million each year and they would like to use that for salaries and fringe expenses for some staff that they have at the local health units there are inns LPNs and health services specialist they would also like to utilize some of that funding for trauma related programming health service care initiatives their flu vaccine and charitable clinics and the council coalition. You'll see their appropriation summary on page seventy one will see all the change. Over all the executive recommendation has reduction of thirty seven positions and this is from the authorized twenty twenty one number so if we're looking at that con that's when I'm comparing this to there's an increase of approximately one point two for fiscal year twenty one and one point three million fiscal year two and the approximate increase of one point four million and both fiscal year one and two and matching. The next appropriation we have which changes we're gonna move to page seventy eight. This is the tobacco prevention and cessation program appropriation. Sensually it's used for community prevention youth programs and school education and prevention programs public awareness some tobacco related disease prevention programs I also have grants to several organizations and some contracts in house that they used to pay. The agency's requesting to continue their appropriation into next fiscal year with the exception of some regular salaries and personal services matching changes. If you look on page seventy nine you'll see their appropriation summary the changes request who are in there regular salaries personal services matching and nutrition and physical activity line items. You'll see over all the executive recommendation is for an approximate increase of twenty one thousand in fiscal year twenty to twenty thousand fiscal year twenty one. And then approximately three thousand dollars in their nutrition and physical activity all of this is funded with tobacco settlement proceeds. Those of the and the my comments for department of health Mr chair. Thank you like we've got some questions Senator hammer you are recognized. Thank you Mr chair this program with the agency if all right appropriate If we can get the agency at the table. If you would state your name for the record and then. Start with questions. Good morning I'm Chris set out from medal or mineral on and the secretary of health thank you good morning morning. Good morning Stephanie Williams chief of staff department of health good morning Senator hammer you're recognized thank you good morning on the portion of your budget related to cope with and to contact tracing is that of the current funds that are already designated to come to y'all or y'all anticipating a future funds coming into those categories. Senator hammer the the contact tracing funding has already been received from that cares ACT steering committee request that was approved a portion of that funding for the department and covers contact tracing cost up until the end of the year December thirtieth those funds will end unless they're extended at the federal level at that time funding for contact tracing will switch over to federal funding to the enhanced epidemiology and let capacity grant which we have funding for for the next thirty minutes I think through the end of July of twenty twenty two. Okay so that funding to continue of to continue the. Covert aspect and the contact tracing. Is coming to additional money other than what came through the tears act committee is that correct yes Sir the first six months of the one year contract for each of those vendors is paid by care sex during committee a pre funding that came through of the legislature and was approved and then the second half is federal funding from the CDC it that would pick up the second half the contract from January through Jean. Well we by the end of the year have exhausted all those funds that were given to you by the cares act committee or I know we initiated what to contract for that and well all that money have been exhausted by the end of the year will there being carried forward money or money left out there that's not used so we believe that we will use all of the cares funding that we were we were granted for departmental operations FOR coded by the end of the year and our intention is two eight two you use that money there's not an opportunity at this point for us to carry it forward. Okay chairman clinic was mentioned while ago what is the chair will clinic. So the terrible clinic grant program is state general revenue funding that comes to the department to provide funding support to qualifying a charitable clinic organizations I believe we currently have about eighteen of those in existence and operation that we provide funding for and I can give you the exact dollar amount but that that programs been in existence since late two thousand and nine. Okay and Mildred twenty all point out where that is in the budget please what page it was on the budget. Some pay seventy one of your budget. It is it listed as charitable clinic under which can. Which categories at listed under please no Sir this this is part of the on category the funding that they were talking about that they wanted restore to let's not listed as a line item budget I'm sorry I didn't understand is part of the budget that they wanted to do what no I'm saying it's not listed as a line item within a budget this is part of a group of programs that is received category for the funding and pass. Okay it is in the thirty four eighty. Part. Rye. Thirty it's in the thirty four P. budget. Yes Mister believe. Yes Sir. Available to come answer where that's an. The yes Sir Gigli DFA office a budget this doesn't this program doesn't have a separate appropriation so if you pull up the department of health appropriation act this would not have a separate standalone appropriation it would just be within their main operating appropriation. Then our which category is is it pulled from its two operating expenses is that right. So if you look on that that page on page seventy one. in the you see those commitment items on the left hand column there's an operating expense line that looks like it's about fifty nine million in actual scene FY twenty. That would have included those expenses would have been logged on that line. Okay alright thank you Mr chair I got just one more committee one more moment can you jump back in the queue again will thanks pretty long list here. and. Well we're all we're talking about cares act funding you mentioned that you expect to expend all that by the end of the year. But as of last week you'd expended less than half of it is there. Are you gonna lamp up that spending over the next six weeks significantly. I mean according to what I've got here. You have about a hundred and ten million dollars worth of Kerr's act funding available and order that was committed to you you committed forty two million. Expended thirty seven million and still have over thirty million in available budget under and that's not committed at the moment. Sir I do have a detailing we do have eight separate cares act funding awards and I can go three where we show that we are and commitments and expenditures for each one of those that that would be helpful could could you get that to staff so that. We can look through all that in. Thank you the. Representative Cavenaugh you're recognized for a question thank you Mr chair I'm over here. I have really two quick questions one of them is dealing with page seventy six on the trauma center the trauma systems you have a expense item called trauma systems expenses it's quite large with the. Large increase. Above the of what we actually spent for what you want appropriate it what what is actually what is that experience. Sorry represented Cavenaugh I'm I'm trying to page seventy six yes ma'am down at the bottom you head trauma systems expenses yes ma'am so that that dollar amount I believe the twelve million eight shows to be seventeen to yes ma'am or asking for twenty fourth two. I'm just curious what that is what is a common system expense what is what is that experience Sir we do have carry forward so twelve million of that is is is carry forward funding and the trauma funding operations the largest part of that funding goes to our hospitals that participate in the trauma system we also have special language authority that you all have granted us to use portion of the trauma funding to support the work that we're doing for stroke and steamy because those are also time critical issues and so portion of the funding is is being used for that they carry forward we project to last through the end of Thank fiscal year I think it's twenty three and twenty twenty three the hospitals how did they get that money do they apply it is it through reimbursement or is it grant process how do they get that money we grant that money to them they have to ask for you do it through a grant process though well it's it's not a competitive grant we award the money to them based on their assurance that they are continuing to meet the standards of the trauma program and will carry out certain activities we do monitor their activity through the year are both for just fiscal management of the dollars that they receive but also the programmatic standards that they are required to meet for the trauma program and so unless there's a problem they receive that okay the other question I had is on page eighty three dealing with the wick food. Can you just on your funding sources page eighty three it has rebates what actually is that a rebate of so the USDA requires all week programs to participate in in a in a rebate program for their their formula the milk based formula and the story formulas so we participate in a multi state contract with the state of North Carolina and the state of New Mexico USDA encourage states to group together to maximize the bulk purchasing power so through that rebate process we award the contract vendor and then they provide us the rebate so it adds about twenty two million dollars in additional food revenue to supplement that budget so it really is just a rebate what exactly what a rebate is is okay we've had since the increase with call that have you seen the increase in the use of wake no ma'am we've saying exactly the opposite we've decrease yes ma'am. That's odd at way we fund it ought to and we know we're not serve in the percentage of folks that qualify for that program we've ramped up our marketing efforts to try to make sure people know that that week is available that we you know can provide it to them in a way that's more convenient now I think some people think about weight being paper vouchers we've now gone to an EBT card that makes it easier the other thing with the EBT card instead of going in and having a ball all of your weight products at the same time you can go in you know multiple times throughout the month and you know get your gallon of milk when you nature gallon of milk so there's less food waste so we're trying to make sure people understand that it's it's a different program and more convenient for the user. If you don't mind could you send me some information send it to the whole committee about how they can use that way it can so we can get that information out to our constituents yes ma'am thank you thank you Representative Representative Ladyman you're recognized. Thank you Mr chair my questions on page seventy nine. The tobacco prevention and cessation programs. In if you look at the expenditures or were four point four million budget was seven point six million and then you're asking for nine point two million and. You know I understand the importance of tobacco cessation classes and you know awareness. So why are we spending more money I mean is there a problem and available classes people to teach those classes what's why are we spending more money on the health issue that that's that's that huge. So am Representative Ladyman you're absolutely right huge health issue and we intend to spend is spend that funding they were limited and they're appropriation and they have had some carry forward funding on the the bay well program we do offer support we actually offer more support now then we offered several years ago when we operated a traditional quit line we free tool that into wellness service so now in addition to dealing with tobacco the callers are able to talk with the wellness coach about hypertension and diabetes management as well so we are making efforts to expand those pro funds extend our programmatic operations we have utilized funding to all for tobacco treatment specialist training to other healthcare provider clinics hospitals private providers throughout the state so we have in the Anderson specialist coming to provide that training periodically to expand the reach of the program we've also done some new programs in collaboration with hospitals we have intervention program in place at children's hospital also new program it's being developed at you a mess and then also some programs to do out reach and specialized training and other small hospital so we're continuing to look for ways to expand the programmatic operations we now also have a new it's called baby in me program for pregnant women we still have quite a few pregnant women that smoke unfortunately this year the roll out of that program has been has been slow due to because of it but we do have to ramp that up so some of the spending that that didn't occur in the past year was was. Actually impacted by code unfortunately do you have any Programs are out reach through like industries large factories were you know maybe they could do programs I think in the past there's been programs like that because you could leave reach a large group of people through these large employment centers and maybe they can go through the chamber or whatever but I mean is is there anything being done in that arena I think that's a really good idea we haven't done that a number of years but I think that's a natural progression of the services that we could offer occupational health nurses in particular tobacco treatment specialist training I think we did offer it to occupational health but I'm not sure that we offered it in a way that we got up take that we want so that something would be happy to continue to look look at and if you have suggestions. Well all those facilities have our hands on site they're capable of doing that so I think there might be something good look into yes Sir thank you thank you Representative. All right. And just a quick question are any of these programs with tobacco cessation focused on in school risk avoidance type and behaviors. A so we do work with I'm for the name of the program it escapes me at the moment and I can't believe I'm having a mental block at this at this particular moment on this particular issue of it we do have a of a program that focused on you project prevent it just came to me I'm sorry the project prevent youth coalition program and that is managed by Arkansas children's hospital and they've expanded youth coalitions across the state and high schools I'm not sure that we're funding any and we also find some risk avoidance programs that focus more on other other wrist behaviors I'm not sure that they are being funded with the tobacco funds at this moment but I would certainly be glad to check on that because that is another opportunity would check on that and get yes Sir Representative Vaught. Thank you Mr chair I'm so I'm way over here on your conference and travel expense it went from two hundred twenty three thousand seven hundred. looks like seven hundred and one thousand is there a reason why I know that in the ten years it's not been over. Five hundred so is there a reason why we've. At that so much. I figure the two twenty three is due to come over do didn't do with much travel probably but I don't know why it went up to seven hundred one on page seventy one. Representative for I'm not sure that I can answer that question we do have John Adams who is our deputy director for administration he may be able to speak to that and now he's looked at this quite extensively. He would speak state your name for the record. And if you need the question repeated criminal. Yes my name is don Adams on the deputy director for administration with the health department yes could you please repeat the question and I'm way over here on this side yes for any feel go to page seventy one the conference and travel expense. You've not spent over five hundred in the last ten years and you're moving it from two twenty three to seven oh one. Unfortunately I do not have a good answer we can research that and get back with you I do think that we definitely our travel restrictions at the end of that year affected our expenses Allen I understand that but in the last ten years it's not been over five hundred yes ma'am we can research that and and get you an answer please get that to staff so they can get it to us all thank you. Thank you Representative. Representative. Della Rosa. Thank you Mr chair I had a couple questions one is on page seventy four. Excuse me the nuclear planning grants. It looks like the the funding for this it says it comes from an assessment against utilities operating nuclear generating facilities within the state which I assume would just be the one but it looks like you're accumulating excess funding in that it looks like you're spending I couldn't find it in the red book fast enough but you spent three hundred twenty five thousand this last year you're procreation going forward is for that so it looks like that's I'm gonna assume that's a pretty consistent amount back through time but you're bringing in a little over four hundred so my question for that is do you think that you should. Reduce the assessment fee that you're charging to the nuclear power plants to fund this program because it looks like it might be slightly too high. So that's a good point we can certainly explore that I don't believe that we set that rate I believe that it's charged to the utility in another mechanism that's not controlled directly by the department but we can certainly look at that we do provide currently at sixty five thousand to a to the county is that are in that planning some and then the the backup overflow county okay appreciate that that usually that's what I'm looking for is is when we might be charging slightly too much for a special revenue verses verses what we're actually need to conduct the program. And the second question I had was back on the tobacco prevention and cessation programs on page seventy nine it similar to avoid Representative Ladyman asked but again it my issue or my question is more to do with the funding for that I'm not familiar with the way the tobacco settlement money comes and it looks like about thirteen twelve million a year but again we're sitting on large fund balance and at the same time there's a request to drop a position so you're you're downsizing it just one position which may be an unused position and if you're doing that I really appreciate it because that's something that we've been getting on the people in here for for quite awhile is hanging on to and use positions so if that's the case that's great but if you could explain to me the money the way the money's flowing through this how you're using it I appreciate that because it looks kind of funny on paper yes ma'am so just in general terms the tobacco program at the department receives about twenty six twenty seven percent of the master settlement payment that comes to the state of Arkansas and all of the money that we receive is focused on prevention and control so we do have about a million dollars that goes to the tobacco control board for their enforcement activities then you know in the department we focus on prevention and cessation and then we also have a fifteen percent set aside portion that goes to the university of Arkansas AT pine bluff FOR them to focus on minority initiatives so just in broad terms that you know how the money is portion adult within the department are tobacco program has a small staff within the department that runs the B. will call center and also provides grants for local communities and also some of the state agencies. Like the lung association and then Arkansas children's which I mentioned to carry out their activities and and then also we use a portion that that funding for school focused efforts to support the community health nurse specialist so those are the other six significant position group with and that tobacco program and there are sixteen of those positions that are funded through the tobacco program. Yes to better explain my question is why do you have a thirteen point five million dollar fund balance sitting in the bank on this after. At the end of the year so it's after you've spent why is that much money sitting in there. So the tobacco program is now limited by appropriation they develop the fund balance a number of years ago that they have not been able to spend down also they fifteen percent set aside program at you a P. B. they also have a fund balance that accumulated so those are the the amounts that contribute to To that. carry forward. Well that doesn't make much sense because it looks like the appropriation was for fourteen point seven million and you actually spent eight point seven so it doesn't seem like an appropriation limitation you didn't spend is it in a line item somewhere that that we don't okay well and Mr believe he may be able to explain this better than I but the they have carry forward authority year to year or so the fund balance that accumulated was several years ago and they've continued to carry a large fund balance for word and more than just the past couple of years. Okay actually Mr could we ask Mister Lee to explain Mr believe what that is and and why were hang on to it come in well he's coming you may know the answer this what portion of that is the is the division. Of the thirteen point five million Carrie four you said there's two different sources occurring over. So it's it's the department and then you I paid the city at that rate. But check we DFA office a budget and I'll do my best to explain kind of from my perspective what's going on so this program was adopted years ago as part of our settlement with the tobacco companies part of all that litigation the was resolved I want to say fifteen twenty years ago. And it created a pool of money that is still coming in regularly it's a fair amount of funding and it can only be used for tobacco cessation and can be used for anything else. So and you see this a lot with other special revenue streams was a lot of money flowing into a program and they're gonna get that program regardless or they're going to get that funding regardless of whether or not there is a plan in place to really spend every last nickel and dime of. So if you look at some of the carry forward amounts over the years. It's fluctuated and then it looks like it's really jumped up here in the last couple years as a result of I would assume incoming revenues as a result of the tobacco settlement. It. If you say that at. Here's the gist of the question we have an issue in Arkansas with especially young people vaping we have an issue with tobacco usage and we're sitting on thirteen million dollars that was allocated for tobacco cessation programs sitting in the bank. That's my question why why do we have that scenario and can we not use that money to go especially aiming more towards younger people with vaping I would can I would put that in the same category I don't know if it qualifies under the exact legal terms but it just seems like we have all this money sitting here that we're you know in in you say you need the appropriation well that's that's what we're for that's what we do so I would encourage you to come back with the proposal and maybe in the next session for an appropriation to utilize some of that money towards stopping nicotine use in in younger people because that seems to be an issue that we have and there's money sitting here so I appreciate that. Thank you Representative Representative. Rye. You're recognized okay thank you thank you Mr chairman of really have to question Jill of all this money that that Representative Janice speaking about about the overage I just wonder on this covert nineteen money. Is that gonna be treated the same way I mean are we going have an overage that we carry follow orders that money going to be sent back to the federal government. So the the care sex during committee is currently looking at the expenditures of all of the funding not just the funding to the department of health I think they're trying to make sure that any of the funding that's not going to be spent including any funding within the department is pulled back for them to re allocate so that doesn't happen yes ma'am but if by chance you had four five maybe six million dollars left over in that fund would that money be kept here local on the state level or with the money go back to the federal government. If it was left over down the year. So based on the the discussion I've heard at the care thank steering committee any funds that are expended by the state of Arkansas would go back at the end of the year yes so by okay now I have one more of you know you mentioned earlier that the weight program was down yes Sir participation okay now. Is the birth rate down in Arkansas yes Sir it has gone down but the participation rate has is below it is not trending it's it's lower than the decline in the birthrate thank you. Right Senator hammer we're back to you. Thank you Mr chair let me pick up on where represent della Rosa was on the and I'm on page seventy nine. On the excess appropriation funding it's sitting at seventeen five twenty but it five in interpreting it correctly when you get over two twenty two twenty three that excess preparations drop down to four point two and not interpreting that right so far. Thank Mister Blay might have an answer for you. Yes Sir the you are entering act it correctly if we expend all the appropriation being requested okay so the. The conversation ago sounded like we were accumulating money faster than we're spending it because of programming I'm just curious in why is it that it is it's projected to drop that difference between four point two and thirteen point five might my guess from looking at it would be that we are requesting appropriation so we can deploy precisely the sorts of programs the Representative della Rosa and others have have have look fair get that money out there begin using it for what it was collected to do so there is a plan in place for how to seven to ten well there's a plan in place to request the appropriation and it does sound like we've got a plan in place to begin spending in of course we look forward to working with the General Assembly on anything that they'd like to see happen as well could we get a copy maybe if the chair would be receptive to the idea could we get idea or copy of what plan you've got currently in place a we could start looking at that because would like to be involved in that discussion yes Sir the bill at Mr you will get that if you can get that the staff will get up to the committee okay the the next question then would would be. Do you have the cost of the vaccine covered in your budget anywhere or second be a hundred percent reimbursed by the feds or can you give us comfort level about that. This weather cost election will be reimbursed by the feds there will be an administration fee that is allowable but the vaccine is already been paid for under the operation where she. Okay so we're we're good on the cost of the vaccine we don't have to do anything in the existing budget then that is correct the how much money do you have left. On contact tracing that has not been paid out. To the firms that were contracted to take care of Tracy. Seems like I remember those were about twenty million dollars each I may be wrong on that but. So the the contact tracing budget is. Thirty seven million we have expense for committed twenty seven million one hundred twenty three thousand nine hundred fourteen dollars and thirty eight cents so we still have an available balance of nine million eight hundred and ninety four thousand six hundred twelve dollars and five cents. Do you anticipate spending that all between now and the end of the year yes Sir. Is what I'd like to put a shout out for is based on the schools that I've talked to their point of contact that they were kind of given eight unfunded mandate to provide somebody to be the point of contact for the schools has run up a rather costly bill to the schools if there's any money left over so she would contact tracing nothing could be appropriate for them to be reimbursed for the calls because they are vital link in the chain of getting that information from the from the schools two it the tracers within have the responsibility to pick it up from then so if there's gonna be any money left over anything out of all of that I'd like to get a question that we look at doing that I think that would be the fair thing to do. What are the fund balances you mention fund balances wall go do you have a Lister could you send us a list of all the fund balances that are currently available for all programming in your budget please yes Sir all right thank you thank you Mr thank you senator. And with regards to the remainder of the carriage act funding if you don't get it expended by the end of the year do you have a plan to move that over within your. Budget to some other areas in order to expended by the end of the year or will that money be returned to the carriage acts during committee in order to be reallocated so the cares act funding all of that will be reported back to the steering committee for them to provide guidance on how they want to re allocate that funding and my understanding is if the department wanted to make a request if there was some other the pope would related made we would have the opportunity to go before the committee and present that request do you have it a deadline on when you'll be making that report back to them we are working on a report to right now all that was requested by the F. and I. I think actually we may have submitted it yesterday which was the funding projections through I think December first was the cut off time that they requested thank you the. Representative Wooten you're recognized. Thank you Mr Miller whom the several questions if I may a first of all the headlines this morning we're not real encouraging in in the paper. Of Washington is saying that we're not doing. What we need to be doing down here we need to do something different lists consider their mail for prayer book but that's what they're saying and then the governor says we can't do more with the more federal help so. A nongovernmental have just under which band would just help that is the situation what are what are we looking at you know and I keep hearing the conversation about thanksgiving and and students come on back to school and college and and I have a follow up Mr chairman with how bad is it hello it's real but. So the senator your represent your correct there is a situation here it is serious it is not we cannot it is not the point we cannot remedy at at this point our concern is that the numbers are growing and as they continue to grow a certain percentage of those of that will enter into the health care system that is will tax our hospitals over time we have enough beds the ICU beds to take these patients at this time when people are talking about the number of ICU beds being used up it's important to keep in mind that if the Arnold they're not all being used by covert patients they are the individual that had a stroke heart attack or the has had this party a procedure or neurosurgical procedure requires the use of the I. see you and so it would we have ways of decompressing for that but we will eventually run into a problem which you have heard of nationally if we don't bring under control the issue still resolves revolves around. The three D. W. that you've heard me say before wearing the mask washing the hands and watching your distance this is a controllable controllable pandemic but is we just don't seem to have the body in in our in our communities and we talk about thanksgiving Sir because I'm we now know that that that the the the the mechanism transmission has shifted over time and is now shifting within these within our small family units and we have good data from the CDC that these really that these reunions are serving as foci for transmission out into the community and other sites so that is why I hate to sound like the Grinch and and and and the party pooper but if this idea of thanksgiving this year may not be the best idea you know that that that you heard me say that that think about postponing your thanksgiving to later and and that is because we don't want to bring these family members in and and I could go on and on Sir but with the A if I've answered your question I'll stop there if not I'll add more to it. In the photo of question at this point one well coordination with the National Guard relative to field hospitals in that funding for the into dissipating the hospital situation were or we and we have a lot of medical units in in the state in the guard to be able to help us. Yes Sir so so we had early in the pandemic as it as it affected us made plans for these field hospitals if you will decompression sites for hospitals these plans were reviewed by my predecessor doctor needs miss and the governor they have been approved they are shelved they are ready to be pulled down when we need them so all the all the planning has already gone into effect it is a matter of the governor deciding whether it is time to activate them it is not time to activate them we have enough enough speaks at this point these hospitals will probably asked as decompression points we will move. Do not call the patients out leaving more room for the code patients in the critical care units. What about if I may Mister chairman one of what about the thank you making this year duration to Britain if you can wrap it up with this one we've got a long list after you get back in the queue if what about the A. What about the vaccine storage in that thing with that the load low temperature so it's got to be there yes Sir very good so so we have some good news on that front so there are currently two vaccines there are currently two vaccines that are going forward to you way one is a by a company called Fizer the other one by a company called the during. Of the original fallout about both of these vaccines was that they would quit require storage at temperatures not normally used by routine immunization programs. The first which is Fizer requires a cold storage that means that we need to use freezers that can get down to a hundred and ten or so degrees Fahrenheit seventy degrees centigrade so that clearly is going to require that the the good news if you will is that but they're not which today the last few days indicated that there vaccine was highly efficacious also at the same time inform the public inform the FDA the direct scene was able to be stored at standard temperatures to degrees centigrade so when that was when that vaccine becomes available it will be easier logistically to move out into the general populace population and other healthcare providers the state that we have AT H. has already established plans to have the original it the initial lot of vaccine which we think will be Fizer that is the minus seventy degree delivered to institutions that have the capability of of of of freezing it at that temperature the other is from my point of view opens the field I'm and we will be able to get it out into these community centers other places where we have the primary groups and if I may just add one more thing to that so The National Academy of medicine and engineering A has already issued what are called phases or tears for distribution of this vaccine the CDC's advisory committee on immunization practices a separate CIP we'll be issuing their both of them have identified a tear AS one a A which is dedicated to healthcare providers writ large that includes not just the doctors and nurses but also the respiratory therapist and those individuals in the hospital that may have contact with patients with because of it so the person that delivers the trade in the to cope with persons room the support staff on janitorial sever housekeeping staff they will also be eligible for that taxi so we are moving this faxing out into a larger population of of of it the population in our state it will be awhile before it actually hits the smaller clinics but it will get there what will you will you be able to choose which which affects saying or L. of. Yes very good question Sir I know we will not at the the the the federal government will determine which vaccines we get and that will become more complex in the future as you know there are currently four vaccines that are in what we call phase three trials or have completed trace to trust those that that is the stage immediately before they apply for licensure. There is a this so there's a few facts seen entering into a phase three trials what that means is that we will have at least five to six vaccines to deal with in the next six months. Thank you Mr chairman I'll have some more questions later from all right just jump back in the queue. senator Elliott you're recognized. I thank the chair I think I can extrapolate the rest of my answers and get one question and do for I'm I'm back on the tobacco settlement funds and I did not at some point in the last few years. Get rid of some of the programs that we had to work spending some of the some of those funds and those programs have not been replaced because at some point you just got to be real controversial about whether or not we could spend the money and I want to point and and I'm just wondering if that in any way led to some of those fund balances that we have that we kind of. I don't want to spend money and not efficacious ways I'm not suggesting that but I think that was part of our problem. Yes ma'am that's a good point but we did when we when we ended up the tobacco quit line program in read re envisioned it re developed it into the wall Arkansas we did cut the expenditures for that program by roughly half so we were spent in over three million dollars and now we're spend and about one point five to offer what I think is a much better service and so what I what I'm gathering from what we have and I'm with the balances that we have I think that and the needs that we have we will just be moving on to thinking about better ways we can use those funds and and address some of those needs that A been talked about here okay at that's all Mr chair thank you. Thank you senator Representative Ladyman. Thank you Mr chair of my questions on page seventy four the nuclear planning grants. And I know I represent the roast asked question about this open not duplicating but. Can you tell me the it says grants and aid that that money is used for this I mean what are some of the specifics what exactly is that money used for. So the the funding is provided to the county judge and for them to use for nuclear planning activities so they're required to exercise and do drills every year the required to post signage that clearly marked the regulation routes in their area and they're required to provide notification packets to residents that move in to their county to explain to them the steps that they would need to take if we did have a a nuclear event that required evacuation or required them to shelter in place so there quite a few activities that that they are required to do because of their proximity to nuclear one and so that's what those funds are used so is this only the county were nuclear one is located yes Sir the counties and that's or it's not the only that county and well maybe the surrounding counties it's that it includes Polk Johnson login and yell county and then also Conway county because it's an evacuation county. But all is funding is going to the county is none of this is is is given to the nuclear plant for. Preparations to prevent a live release or anything like that yes Sir this is to find that the county activities okay in I think represent all rose to ask this but I'm and I'm like to get the better clarification so the revenue comes from the nuclear facility fees that they pay per megawatt hour or something yes Sir it's fees levied against the utilities that operate nuclear facilities and we currently only have one with which is interesting okay I had another question on distribution of the vaccine doctor Merrill I think there's of federal contract I believe with CVS and Walgreens for distribution of in the nursing homes am I correct about that. That is correct for some states okay we your department be involved in that or is that is that gonna be typically one arms and handled by those private companies that will be what the handled by the private companies we we will not receive allocation it will be there the government will give them the allocation and they will distribute within that population and is primarily for nursing home residents it is not for the personnel itself by the healthcare personnel that is our responsibility. Okay but that is the the number one priority is that correct I mean that's that's the top priority for those vaccines to go to those nursing homes it is one of the top priority so so that that group falls under what we call one be at least in in the A. C. I. P. the Serbs recommendations so in that group would include if I may a little bit finer point individual sixty five and older individuals with significant comorbid conditions it would fallen into that group among others. Okay so you have any court nation with CVS at all the department because it looks right now those are all allocations will come from the federal government. Thank you. Thank you Representative senator hammer. Thank you Mr chair on up page seventy one I just needed the explanation of and try to read the supporting materials but. On regular salaries you were increased goes up over the years Between twenty nineteen twenty twenty two twenty three could you explain why those regular salaries are going up for what positions are being moved to increase that amount please. Yes Sir the currently we are authorized for two thousand five hundred and fifty positions but we have twenty one seventy one budgeted positions of those about nineteen nineteen hundred and fifty of those are currently field and we have a little over two hundred positions which are vacant two hundred twenty at this moment but that's that's offer us usually we have only about a hundred positions that are vacant in in recruitment in any one time the projected increase in positions is proposed good response archery and on positions has steadily declined we've actually decreased our positions by eight hundred fifty over the past five years about twenty five percent so this up tick is strictly for ongoing staffing support needs A. N. that's largely driven by the pandemic response. Do you anticipate that with the vaccine coming on that that will actually turned down so you would need that in twenty twenty two twenty three yes Sir that is our hope. But your budgeting for me as though that's not going to happen is that yes Sir that's what that's what we're doing right now it is to make sure that we're prepared. Okay so we'll we'll just put a check by that for next cycle that if the vaccines in and you you should need that supports that and is at support staff are the temporary are they funded by federal funds that if the funds go away the positions go away yes Sir there are they will be federally funded positions and actually we have that on the schedule to be presented it peer for your consideration tomorrow but those positions when we recruit and advertise will make it clear that those are part of the response and or federally supported grant funded positions that may not be continued after after the need is call may positions over the years have you seen gonna wait that were hired in under the pretense that those were federal funds when the federal funds go away the position goes why do you keep that data yes Sir we do track that we don't have a large numbers that are lost due to federal funding but but we do have some we and to track that and for instance in FY eleven you know going back ten years we had three thousand four hundred and twenty five positions that has steadily declined we did transition or in home service operation to the private sector that was a significant number of positions also we had a commit care program that we perform for DHS that transition and two different type of operation so those positions were eliminated at that time then the last question is on the contact tracing and let me let me preface my comments by saying we had a situation down swing county where a of football team last week had of one individual and as a result the whole team got knocked out of the playoffs to date as of nine forty five last night when I got a phone call. Nobody's been contacted by contact tracer that was in pro close proximity to that individual so that leads me to ask you the question if you're gonna ask for more money for contact tracing what are the quality control measures you have in place to hold the individual cop companies that have those contracts now. To the standard that's expected because I want want to give a more money if the system isn't working so what what's the quality control measures you have in place. So if I may serve we have a ongoing quality cue a cue I the program for those contact reason groups meets weekly benchmarks are being set have been set in are being constantly adjusted to insure that proper contact is made within a Appropriate length of time as we identify problems we institute remedies for the as with any program or any. A project and we expect to find a some glitches along the way and we expect to find economies of time and effort and we are to attempting to identify these as we go forward so this is a program that is constantly under scrutiny and under improvement. Thank you a copy of the what you just references farces standards and I think you're gonna be fortune public health on the thirty th upon not mistaken so we can expand consultation give us time to just the budget if we are satisfied at that point thank you we your brothers yeah please I get those to us and the thank thank you senator Each. Senator Chesterfield. Review. we've got a few more questions in the queue that is a proper motion at I'm not take that motion to we get through this list. Take it at the proper time. Senator Irvin. Sir I think I hit the wrong button Senator. Irving. Thank you thank you Mr chair good morning doctor Romero thank you hi this land thank you for being here and appreciate the appreciate what you're doing I have a question on the trauma systems if you could just give me a little update on a on page seventy six the outside of the personal services matching and operating expenses and the regular salaries the rest of those funds and go to the hospital that are in the trauma system is that correct. Yes yes ma'am okay and can I just get an update on that training and education I think we've brought that and house is that correct. Yes yes ma'am see. Yes ma'am of the training. Has been done differently and is bent over saying in house I don't think that I have a detailing on that but we do have Renee Mallory who said that the director for for programs is here and could join us and provide additional information we do provide funding for to the Arkansas ambulance association so that's one it's non hospital and I'm sorry I didn't mention that but. And then we are in the I do have the listing of the courses that we're continuing to support and those I can read off all of those. No that's okay I can get that from you later I just kind of I just wanna make sure is get an update on that and then have we had any hospitals lose their trauma. status. You know. Renee Mallory I'm to peer director programs at the health department in senator Irvin on the first question you know we do not use a vendor anymore we do that we maintain oversight over the training in house the second question on have we lost Hospitals to yes yes but we work with those hospitals to come back on in the program and you know do whatever we do need to do to make that happen okay I thank and I'll follow up Mr chair with them personally and the all right the smaller hospitals are really dependent a lot of times as critical access hospitals on those funds so and then finally I just wanna thank Dr amero for your messages to me while I was well and I appreciate that very much thank you thank you senator next we're gonna go to senator RAPERT and then represented wound will have the final question before I recognize senator Chesterfield for that motion. Thank you you're recognized thank you Mr chairman and appreciate the opportunity for eighty H. to be here and obviously presheaf of all efforts that are going for if we do have a couple questions number one on the contact rationing that's already been mentioned here. Do you happen to have the number I may have missed the number earlier do you have a number now what we spent on the in person or the call centers there doing the contact tracing. Yes Sir the the amount of money that has been expense in committed is twenty seven million one hundred twenty three thousand nine hundred fourteen dollars and thirty eight cents. Is that the total amount I know I've heard higher numbers than just discussions with members so it is that number a number that so lean caps lace all this been spent on that this is all that we pay to the to contract vendors it does not include any eighty eight staffing support that might have been contributed to the effort as well. A few weeks ago in and I'm going to close my comments on this first chairman of good just to probably two things to to close this line of questioning. A couple of weeks is maybe been more than a couple weeks ago now I'd sit down with some folks that were here that we're trying to get some attention within the administration about it least doing something to help on schools are college campuses it's a technology that is utilized by an apple on a volunteer basis which is being used in other states. for whatever reason there never seem to be an opportunity in this was an Arkansas company by the way it Mottola was the company that was bringing the idea that they were wanting to do it for Arkansas because they had the ability to get it running and they we're doing it other states and what it would allow is rather than as have these two ladies. That we keep talking about. It allowed people voluntarily on the campus to have that and it would automatically begin to notify between those people if they had been in close proximity to each other is not a mandate it was simply voluntary could you tell me why when that process I was told only cost five hundred thousand dollars to get going why would there be an absolute I don't know what you would say willful ignorance about the technology we're spending millions and millions of dollars and having people waiting to in three weeks I would like both of you respond to that. Service center RAPERT thank you so the the whatever I believe that they represent apple Google is that if I'm correct and at that act has been evaluated I think early on in the pandemic when we looked at that we received a lot to reports from other states that the uptake was not gonna be sufficient that people's concerns about their personal privacy head had not led to to the yield of we are currently re evaluating utilization of that add up Dr Austin Porter leads are technological I'm sorry our technology committee and I know that they're going back and looking at that act again with the thought that now may be the time I don't think anybody expected us to have such a prolonged experience in response to Covin so I I can't say that it's something that they're gonna recommend the adopted but I know they are looking at that now. Well the would be imported especially in light of the fact of the amount of money that's been spent and the problems I'll close my comments today by sharing with you since so often in this brown we don't get to hear the voices of people that are in our communities this was sent to me just yesterday it Representative of literally dozens and dozens and dozens that I get sent on a weekly basis this is a nurse in Arkansas she says. I'm a nurse myself I live in the real world my family's been recovering from cove it we tested positive ten days ago we were called yesterday by tracers who were extremely interested in me sharing more about our church so first off if you're tracing my contacts that needs to occur as soon as possible after diagnosis if you're going to call my contacts in one them two weeks after I test positive it's a little late for that until the tracer that my family had eaten in a couple of restaurants in the two weeks prior to diagnosis and I didn't remember them off the top of my head but if she gave me one minute I could look up my bank statement teller exactly where I had been she said and she says here I quote that won't be necessary but she grilled me on what was happening in my church the day before I woke up with symptoms I worked in a hospital I had no symptoms I had no idea I work very closely with another nursing care for multiple patients but no one cares about that they carry extremely that I was in church five days prior to diagnosis. I'm just you need to hear from the people in Arkansas. And you need to understand why my colleagues about ask questions on this and doctor remember it you know you and I didn't get off on a very good foot when you called me in the hospital I had a much different reception than my colleague here to the left. You called me and told me that you that I needed a letter and permission for me to be released when my doctor told me I could be released at that hospital you said you've got that you we can hold you twenty basis what you tell me on the phone. And I was astonished because I expected doctor Naismith you actually had a bedside manner and gave me the kind of reception that apparently you ultimately gave senator Irvin and so I'm just telling you that the people of Arkansas are absolutely fed up with with some of this trash it's going on if you're gonna have a contact tracer program you're gonna spend millions of dollars that could be used elsewhere Senator Rapert then you need to try to make sure that you're doing it in a proper manner senator RAPERT this is we need to try to keep this on budget. Related topics is specifically. The senator is up that I would be happy to address those questions that you stated that I'll or those comments but I will leave it to our chair to determine whether I should go on that at this amended or just determine the budget we're going to stick with the budget for the remainder of this and. we've got. Many go to senator to represent a Wooten for the final question and then we have a motion that will be on the floor. And the after that they'll be discussion on that motion. Thank you Mr chairman man deals with personnel I'm sure you've heard about my concerns and several of my colleagues you you you currently have a. Hundred and twenty three positions that have been vacant for over two years and several of those date back to twenty eleven and twenty fifteen. And the why is that. I mean you understand the labor pool but to home alone positions let me ask you this question it will have you all use positions for additional funding in other areas have you have you given up any positions to take the money and use it somewhere else in the agency. I guess what I'm saying are you using those other than twenty three positions to and increase your budget in other areas. my number is slightly different and then yours I have a hundred and fifty and budgeted vacancies and then when we've done our analysis we identified eighteen of those that had actually not been field for two years so we're going through and actually looking at the history of each one of those positions with the intention of of eliminating those if they're not going to be filled. We have the information is given me this morning from the personnel staff in BL or was one hundred and twenty three positions. That you have two hundred ninety four vacant budgeted positions as of a August report that you owe money to of the two BLR is that correct. That's slightly different than the number that I have but I'm gonna assume that your number is more correct than my number but The point being that a hundred twenty three positions being held and recognize you're paying the four hundred and twenty which is going to four hundred and fifty and insurance but will it be much better to not have those positions out there from twenty fifteen twenty eleven would be much better just to have a line item for insurance benefits we will make a decision. In state government how much money we're going to pay toward our employees health insurance here well ID which is you know drive the right you to well no the rate is going to be a it doesn't make any difference if we just took the twenty four or twenty five hundred employees you've got and divide it by the X. amount of dollars that's what you would be given to put your health insurance with of a pool of money would that work better yes Sir and and I didn't fully answer your question I apologize it tomorrow when we present our and if the request we will be reviewing the fact that we intend to return forty. To the pool or to well yes to a PM one more question Mister chairman of the to our final on okay the page seventy one you have the actual expenditures in twenty nineteen twenty twenty of ninety four point one million and there was two thousand and ninety nine positions and then over here you're asking for a hundred eleven million If for twenty to seventy five have there's a four thousand dollar difference in pay. Average the average was forty five thousand in twenty twenty and twenty twenty one is going to be forty nine thousand for those additional or for that number of employees is that pay increases for four thousand dollars or is that an increase in salaries I think that's the increase that's building and FOR any merit adjustments that happen or Or think it's my merit increase adjustments and then cost of living adjustments. Thank you Mr chairman thank you ma'am thank you with doctor thank you Representative senator Chesterfield resident I move immediate consideration of the health department's budget. I have a motion for immediate consideration and a second. Any disk well there's no discussion consideration so all in favor hi. Any opposed nay. Motion passes. Congratulations. Okay I need a motion for. The I've got a motion for executive rack and second. Any discussion on that. On favor I. Any opposed. Motion passes. All right miss Hamilton department of commerce. Into volume two. Once again a five understand correctly we're just gonna go over procreation with changes so we're going to start in volume to the department of commerce on page three seventeen. Page three sixteen this is there department procreation summary you see the guy six appropriations for which changes law offices skill development is first appropriation that they have that has changes. And this appropriation has the authority were grants to private and public organizations for the development and implementation of their workforce training programs they are required to consult with the Arkansas economic development commission reviewing applications for workforce training grants with reports to the governor in the country it's our Legislative Council this is post occur before October one of each year. As a result of ACT nine ten this office was transferred from the department of education division of career and technical education to department of commerce the funding comes for general revenue which is the skills development fund a two point five million dollar transfer that's required in statute from division of workforce services and if applicable and the work force two thousand development fund monies. Agencies requesting continuation appropriation the amount of twenty three point five million each fiscal year. And the executive recommendation if you look on page three eighteen. You'll see that over the biennium there's changes in the regular salaries in personal services matching appropriations their line items approximately twenty four thousand over the biennium. And that's the only change anything that's exceeding the authorized amount is due to salary matching rate adjustments that occurred that they would like to continue into the next by any. Thanks appropriations on page three nineteen. Skews me. This provides for the personal services and operating expenses for the administration of offices skills development again this is funded with general revenue. They're asking if you see on page three twenty reallocation of one position to their sure services appropriation over all the executive recommendation is a decrease in fifty one thousand seven hundred and seventy dollars each fiscal year. In addition this reallocation. The only other change is operating expenses they're asking for also a reduction. Four hundred and fifty one thousand two hundred and forty three thousand. The next appropriation with changes is on page three twenty seven. This is their shares services paying account. This provides the secretary of department of commerce personal services operating expenses their cabinet level staff. Including human resources fiscal IT and communications. This funding is from a mix of revenue sources this transfer from various divisions that you licensure services they do also have general revenue and cash. They're asking for number over allocations of positions eight from there Arkansas development finance authority division. Cars being. The allocation in. Regular salaries match and a little bit operating expenses and that's going to occur for both years the biennium reallocation from their rehabilitation services division again. Salaries match also are going to be reallocated than twenty three positions from Arkansas economic development eighteen of which are coming from your state operations appropriations. Five of which are coming from the division of science and technology state operations appropriations. And then learn from their offices skills development that's when we had previously mentioned. All of these are going to the shared services. Portion of the department of commerce on page three twenty eight you'll see the allocations are authorized twenty twenty one positions go from one to thirty five. And then you'll see their regular salaries John from a hundred and fifty three thousand two approximately two point four million. Personal services matching goes from thirty nine thousand to about seven hundred forty eight thousand and then operating expenses increases to two hundred seventy two thousand each fiscal year. At the conclusion farmers for the changes for department commerce Mr chair. Thank you a. Senator Chesterfield you're recognized for a question. Thank you madam chair on page three eighteen Mister the samples and could you tell me or is this question for the agency. The amount of authorized salaries goes one hundred and seventy three thousand seven seven seven two hundred eighty nine thousand eight forty six which is over sixteen thousand dollar increase in salaries could you tell me to whom these increases will go. I don't know the exact positions in titles there are a number of that were requested for only three people here yes I understand I'm saying I don't know exactly those three people I know that they were approved in council on Thursday those salaries were yes the salaries and the positions including increases in reallocation is the department would be able to provide specific detail on those three positions all right yes the specificity from the. From the agency please yes A is Mister Mike Preston. A would you come forward please. And by the way I did ask that this budget be healed but I assume during the pandemic we are holding budgets is that is that right. It will be held during the session nice. We usually hold on during the budget meeting so that we can visit with the agencies. with only have things we'd like to discuss yes ma'am Kevin Anderson madam chair of yeah I did get your request to a the flag and hold this budget and we're seeing it now to get a recommendation for us to draft the bill they have a something to hold and the Senate Senate bill is Senator to settle the center joint budget and a hold place with your name on it alright thank you right breaking if you would state your name and the the department you're from and for the record will continue sure take plea DFA office of budget this is. And David bell CFO department of commerce. I'd like to know how the sixteen thousand dollars a. At sixteen thousand dollars increase in salaries is going to be distributed over three people. As for talking about over five thousand dollars if we do it evenly A so what are we talking about here who is getting sixteen thousand nine dollars the increase would have come from a performance funding increase across those three people as far as the amounts that would have been distributed per person I don't have that necessarily in the budget manual but that's certainly something we can get you. This is John no. They're proposing a sixteen thousand dollar increase in salaries but three people and we're having difficulty getting salary increases with people who aren't making much money at all so I need to know where the sixteen thousand dollars is going to go. No unfortunately I've only been with the department for two months so I'm not as familiar with the budget as I should be because I just haven't had the opportunity to breach the look at it um. So I'm not sure. Well I would like to know before we move on where the money's going to go we giving people five thousand dollar raises across the board one first to sixteen thousand how is it being distributed that seems to me a substantial amount of money for salaries in a time when we are having difficulty getting salary increases but others of Mr believe may have an answer to that is to be late we will we have more detail on information on kind of the the funding for the different positions there looks like there's a GS ten a GS twelve and yet so for and then also in addition to performance funding there was a career service bonus that was paid out of but the question I think you're asking is how how can we how will the money be distributed over those three people it's a simple question we can get that for you share with staff at that the I appreciate it thank you madam chair And how then do we determine who gets skill development grants house that is determined. Please identify yourself for the record. eight side director for the office skills on the department of commerce. skills development grants are granted on a rolling basis to organizations businesses industry professionals associations community colleges for workforce development training and efforts for partnership's income a worker training programs and those types of things so individuals and organizations apply to our office FOR workforce training grants every two weeks review those grants with a committee of five individuals made up of members from the department commerce department of education and that's kind of the process in which we structure that how many women and how many minorities on the committee we have one two two women and then. Our guest zero item of minorities mean with two women. Okay that's what I thought you are the head of this department sure you know with sixteen thousand dollars is going to go. Sure it's going to go to an associate director a program coordinator and an administrative specialist if that's what you're and how much is going to go to each one I'm not exactly sure what that number would be based off their performance races and that career service recognition amount. Jimmy with the career services amount would normally equal what percentage of salary Yeah I mean is depending on how many numbers of years of service that individual is served and I believe she's been with the state for twenty plus years something like that. I'm not exactly sure what that amount would be I'd have to rely on someone from finance. All right I'm not gonna beat it to death is the tennis bar spent thank you very much but it is interesting that we come in here we ask for salary increases we don't we can't tell people what the amounts going to be and we're just supposed to just approve this with a nearly thank you very much. Thank you I think we need to take senator Chesterfield words to heart. A this is not a good performance today. All right to adopt a Representative would you have a question and then we're going to go to another Representative and I'll put you back on the quote key that you have a question it's important. Thank you when I'm sorry okay. I agree with senator Chesterfield we will ask about four five questions and then the usual answer one of this agency this this division this department. Has been one of the troublesome and the transformation I will know were secretary press to. This is a big budget this is a big operation and he's not here does he have the virus. No Sir he's here he's on a call with the governor but he's on a call with the governor right now on a call with the the governor Hutchinson well governor Hutchinson as governor Hutchinson this is a hearing he's he told the governor to be over there. Mister chairman I am I move that we have this budget until one we can get some answers and until the secretary the man is here to answer questions he is your your builder and look however you want to but this is not right it's not right he needs to be here the that's why we again the salary for the building he's just missed however I move we not consider this budget until he's here. we have a we have a motion on the floor we have a second all in favor say aye all those opposed all right we're going. Well if he's. He needs to come in and sit at the table in. Wouldn't take a five minute recess. Why he can get here. A. If these. Committee members would. Print punch but your button again. We've lost the list all right to a Representative Cavenaugh Representative Baltz Representative Sullivan Representative would. All right if you would. Introduce yourself for the record Mister Preston. Thank you madam chair Mike Preston secretary of commerce executive director of the Arkansas economic development commission thank you for taking of. A short recess and allows them to get together and and be here so I appreciate that. All right of senator Chesterfield you are recognized. I'm chair thank you so much secretary president. On page three eighteen. Under regular salaries first line it says that the authorized. Beginning is one seventy three seven seven seven and then the agency an executive wrecked is more sixteen thousand dollar increase in the line items for regular salaries could you tell me how that's going to be distributed. Over three people. So we did that budget is that we have normally have to go to pay plan because they're they're not have enough. Appropriation and so we had to supplement by coming to pay plan and so what we did in this budget is we've gone ahead and included everything that we would anticipate for salary expense that's why it's jumped up so high what we are actually being paid. So it's their base salary plus the two and a half percent increase. And so that we don't have to go to pay plan we've got ahead and make that into that number that's why I look so hi compared to like the run right now appropriate my simple question is how much the and would go to each person. I would have to pull it spread sheet look what each individual's making and then we'd have to calculate the two percent raise that we can tell you what that is. So we have that I mean it's in the POS system. The this is it it is extremely disturbing that we have this vast amount of preparation for budget. In a simple question of who gets what. Cannot be answered at that I just find it frustrating favor much frustrating I understand merit pay tell me how much would go to merit pay tell me how much would go to regular salaries what you said two and a half percent what is two and a half percent equal for those individuals three individuals you ought to be able to tell me decisively what you're talking about because right now it looks like people are going to be making if you just divided over three people over five thousand dollars per person that's rather unusual in the budgeting process so if you would please let me know do what you are referring and that would be helpful thank you Mr and secretary president. I'm trying to find out specifically I've asked this question over and over again of Cody and I'm asking of you. What determines this money he gives me that same smooth answer but people who come and ask for these grants are routinely turned down. And they feel that all the stuff tell me how this works in skills development how do you determine what we'll is needed for skill development and what is not needed for skills development. Thank you senator taken on the first one for to to Jake was going to attempt to answer I'll come back and answer your second question that's okay. So we've dug into this more and in answer to your specific question of how much is the sixteen thousand dollars going to be distributed across these three employees we can tell you how much the that is going to be distributed for the current fiscal year because of course we know how those performance funds and raises were handled we do not necessarily know that for a point twenty two and twenty three because we haven't gone through that performance funding process we have an evaluated the performance the employee's request that's in front of use for appropriation. Now one other thing that was apparently going on was in the past the eight we're not asking for enough appropriation to pay for the salaries and so consistently what was happening is at the end of the year they were running out of appropriation they were half and ask for pay plan. So what we're trying to do here is to correct that and get ahead of that a little bit. The third and final complicating things that one seventy three the seven seven seven number with a it's a wrinkle of our budgeting system where we in effect take a snapshot of salaries from a from a point I think was two years ago. So that number then is inflated for multiple percentage increases to get us up to that increase and I guess that inflation part is the part that bothers me yes tremendously how do you determine now you've you've not answer that question I still don't know who's gonna give blood but I I understand what you're saying and it it does not satisfy me but at least you've given me the best shot at it Mister president. A your division deals with skills development and somehow or other it seems that when we're talking about individuals will going into education that's not considered a skills development is that correct. No that's not correct gender that's that's that's the way it is come to me because each time institutions that I represent tried to get funding from the skills development we are told that we don't qualify for those funds so I'm trying to get a handle on exactly what is qualifying for those funds. Senate review have happy to take a look at the ones that are are saying the not qualified his I want to say it's close to ninety percent of the applications that come in are are approved through the office of skills development so there's a right way just how many minority contracts besides you a P. B. have been granted you will give me that madam chair I get out of the queue thank you so much miss engrossed in do you know offhand no ma'am I don't but will get you that information is the only one I've seen issue a PP okay thank you look at that. All right thank you. Right a Representative Baltz you are recognized for a question. Thank you madam chair and I'm way over here. And the line item industry training program that went from one point nine to fifteen million I know it's a new line item can you please tell me what this actually does. And if we spent one point nine are we trying to budget for fifteen. Page three eighteen. Industry training program. Any type of an increase like that would have to be associate with incoming federal funds may have a thirty weight from skills development to talk specifically about that line. Thank you I'm sure a good wage director of skills on that one point nine is what was actually expended right and so anytime we receive grants and FOR aid comes out of that what used to be known as S. K. L. skills development fund which is now renamed as M. S. D. zero zero zero zero so we have appropriation to fill those line I'm so every single year date that that fifteen million dollar line item was originally created back when the fund was created it just had his re re up every single year so that's why the budget those are actual expenditures out of that fund versus what's actually available to spend out of that fund and can you tell me what that line item does sure goes the fun just kind of conversation we're just having to workforce training grants so again companies organizations associations apply to our office a five person committee refusals application every two weeks the rules around what's what how we how we appropriate that how we approve those funds and so any grant that is approved right for income a worker training for an industry or for a bigger more more kind of complete project those funds get approved expended out of that out of that fund. Madam chairman I have a follow up real quick yes so is there a way for us to find out if these funds are being used in our districts and could you please get that to the chair so they can get it to all of us so we know where this money is actually going towards yes absolutely we have that we have a heat map that shows where the funds go all across the state of Arkansas and we can break it down by county by district by we owe a district however you want to look at it I would appreciate that madam chair. Thank you. All right Representative would be recognized for a question. Would you excuse me excuse me a hitter button again please. Now. Thank you madam chairman you all have a eighteen hundred and seventy seven positions authorized throughout from of the Arkansas development finance all the way through the bank securities all the way down to Service for the blind in work force and that you judge many labs in the state of Arkansas that you have eighteen hundred seventy seven positions. Fourteen hundred and thirty four your actual filled positions you had four hundred and forty three positions. That are vacant. And the a hundred and thirty three positions or over two years old. So consequently your time the. In paying seven hundred eighteen thousand dollars annually. For insurance premiums and your pay and sick in your time of six million dollars in those having thirty three positions my question is have you all ever looked at those positions so date back to twenty T. and someone date back to twenty eleven. Overview those positions yes Sir and I'm looking at those right now most of those positions are actually and workforce services the ones that I'm looking at that are showing as of So. And shown positions in the department of commerce one and economic development twenty four in the insurance department to the bank department. And I'm looking at the ones for economic development there. Total department department commanders is that is designed to include all these agencies the sum of the red and thirty three positions that have been vacant I will lead to for you to tell me what you have on to you what I can so for the three regulatory some of which is banking insurance and securities they do have a can positions that they're at right now trying to back fill because they will not be included within the shared services model and so some of those positions even though they're vacant or in the process of being filled right now or risk of twenty four positions have been vacant for over two years of al one position over there that was the deputy director's position it been vacant since twenty seventeen. What is the. Representative may address to with you ms mentioned a lot of these position the both of these positions of the within the department of workforce services and prior to the the pandemic we were actually looking at how do we right side because they're not been a right sizing of department of workforce services since the Great Recession in two thousand eight to really staffed up significantly at that time and it just stayed at that point we were looking at a plan and how do we actually bring those numbers down to get rid of some of those positions as you know when the pandemic it and we had to really staff back up and we're still in the process of of doing so to you get to the backlog a lot of. I'm showing you workforce services and is sixty vacant positions for over two years and the largest number of phone calls I received from my constituents is the the larvae and getting there but I had one the other day they're about to lose their home. They've already lost their call for. In their in their in severe financial trouble and they have yet to hear back. And the center the met Representative I mentioned that's where we're in the process of stuffing up and we've added stuff significantly within workforce services to address that and I know will have you have you all have you used those positions talking a taking the money out of that position in use and in other areas. The operation from work for services. With them. Now that's weird. No. The six million dollars is a large amount of money to be to have the. In funding. Are you. The law was passed. In the late nineties. To deal with exactly what we're talking about we've talked about throughout these budget hearings all these numbers of positions so in its wisdom of the legislatures and had a if you have a position your goal pay insurance benefits. Well we're we're to the. Forty million we're time three hundred and six million dollars. Two billion dollars in insurance premiums and we've already had the and the To keep insolvent through this year. Representative makes sense what you're saying makes sense in the night and I do appreciate I know. Foreman finance administration to yesterday and and spoke to this issue quite quite thoroughly others said that the you know because we have those vacant positions it did allow us to staff up within DWS fairly easily and we're still in that process so you know first on the claim side next on the adjudication and then through appeal so the whole process of unemployment I understand that you know it's for it's far from perfect and still needs work because people are you know still struggling out there and looking to to make ends meet to get those payments but having that flexibility certainly help there you know as a mention before going into the pandemic or prior to before we knew there was you know heard of of a nineteen we're looking at how do we right size that and shrink the department back down something that we're planning on moving forward but because we have that ability to do so we're able to to staff up but hello. I understand what you're saying Sir. Do you would you will live with Was a severe problem and burden burden upon your department. If you if you knew you had eighteen hundred nineteen hundred employees and you again X. amount to cover their insurance that you reported the number of employees and you had a line the. For insurance benefits for your employees would that be a horrendous. Task. A and it does say your body in this I five hundred dollars a month insurance premium for the benefit of the employees of this state. And we funded that in a pool and you told DFA we've got nineteen of positions we need and the cost of five hundred dollars. They brought that money to you you put it them and then you pay that out to the insurance is complicated I think the issue is. When you look at these different positions they're funded from different sources in so you may have a it it just you know especially some agencies have special revenue they may have a position that they're finding that they may not have filled from that special revenue if you go to a pool concept you'll have to you'll have to set up the revenue source the fund that pool positions once the mammograms were the positions most to go away yes but I I'm thinking right now on special revenue you do have revenues we're talking about we're just simply talking about like you that every time we go over this. Just asking you if you have another X. pool of money. Hello do you buy your number of employees that's what they're benefit with the is that. It was a huge problem a meeting at a high level no I think the issue that I've got like what I'm saying is like if your if you've got constitutional special revenue come in like a park Terrigen tourism if they've got certain positions that they're funding out of that special revenue it can only be used by that department from that revenue source I don't talk about that. Well what we're doing for employees is a study in total. Total about people that are. Revenue you got you got a. This fifteen hundred. Employees of the eighteen but you've got fifteen other employees your your insurance for you we're going to give a maximum. I pay X. amount of money on their insurance that's all were as I guess at a higher level what I would propose is that you do a a model of financial model that that redefines the way that you're doing ET de contributions and make sure that that you don't create a hole somewhere and that you got all the revenue sources covered and that you don't create another problem because we part of the issue with doing it this way is that in essence the agencies the department for helping to fund the healthcare expenses of the employees if the state at a high level takes on what you're gonna which is what a lot of companies do it is for a lot of companies it's a pretty significant financial commitment to fund those benefits the the retirement the in the so it really does it really goes back to the fact that we budgeted three hundred for sixty eight vacant positions the first of August. We budgeted three hundred six million dollars to cover those for a year the average salary of forty five thousand dollars. So really goes back that we're holding that money hostage to pay forty million in premiums what we need to do is a as a body is a legislature is come up with the exact amount of money that we're gonna play. Insurance coverage is gonna close calls does it we divided by the number of employees the thing you've got to remember is that that medical help that that liability for those benefits still exists it's just being shifted from the individual departments up to a higher level at like at this school concept you don't the expense doesn't go away the benefit liability the employees as a really go away you're just recalculated and looking at it differently. A. Thank you miss thank you madam chairman all right and let me make this suggestion of represent Wooten would you get with the department. And this A come up with some ideas the for it may be how we can make this better. A it seems the I like your ideas of but the we've got a long agenda so thank you if you would do that I would appreciate it thank you very much all right of ladies and gentleman we are only of. Two sections down since nine o'clock. So unless you want to stay here until maybe six o'clock fifth to noon we need to keep moving on and those of you there a lot of you on the Q. and we want to have you ask all your questions but if you could basis saying and to just straight forward I think that would help with the timing all right to represented Cavenaugh you're recognized for a question. Thank you madam chairman over here although I other side. My question also is really for secretary Preston. We're talking about salaries for everybody in August to Starbird. There is special language that allows for you to have extra pay outside of your state salary. This year you got a fifty thousand dollar bonus from Arkansas industrial and economic development foundation. I would like you to provide a list of who funds that foundation to this party to this committee please. We can do that thank you. All right. A next in the queue is the Senator hammer. Thank you ma'am chair first phone page our page three eighteen on the industrial industry training program you know what the fund balances in that right now you mention had a fund balance. Thirty. Leave us thirty two million at this point Is it a case of not have enough applications or applications being turned down that has allowed the fund balance to build up to thirty two million I think you have to look back at when it was first created and there is a there is a win win Nossa skills all in this final set up there is a huge influx of money and then over the first couple years as the as the process will be instead up in as the marketing everything started be outreach to different parts of the state you had you had you know revenues coming in our expenditures were meeting that need so that fund balance start to be built up and now that we're starting to see our expenditures actually exceed the revenues that are coming in we're gonna start to see that decrease but we also the over the last year and a half have been kind of planning for some things that we saw coming here this fiscal year in which we. Have a pretty strong of view of how we're going to spend that money and we intend to spend that down probably to our we're gonna gonna be in about eighteen nineteen million by the end of this fiscal year. And what are those things you're thinking about spending that money well we knew as of ACT one seventy nine we're gonna have to make payments to to make the transition to the new funding formula for career centers and so that's about a nine million dollar reimbursement to a lot of school districts around state for the training fees they paid to the secondary career centers so is either not pay those school districts back for the money they paid in good faith or reimbursed in that amount of money so that will be coming out of that fund okay page three thirty six the super project fund. It has. Actual expenditures of right under five point three million. But you requesting two hundred million and based on what I understood it you know for CQB position helps to project once last time we had a super project. What what what product we have that was successful was the big river steel twenty fourteen and twenty fifteen we had the Lockheed Martin and south Arkansas that we pursued and this body approved however the contract was not awarded to Lockheed Martin and went to a competitor Oshkosh so do not win that contract is just so that you can have bonding authority and I'm just trying to understand why you carry such a huge appropriation balance. A skis me for interrupting but to a Senator hammer that is next you're talking about economic development hello Sir okay I apologize Sir nature will wait until the next section to answer that but I'll put you at the top of the key okay can I ask one more this on I thank on this topic. The the boards and commissions if it's not on this one secretary just put me down to the next level then the boards and commissions that the you've taken over and the fund balances that were in those boards and commissions can you give me an update of where those balances are and one in particular was a home inspector board is that under this category is that coming down the line. I think that's out of at the. But in another section okay alright thank you manager. Eight a senator Chesterfield you're recognized for a question thank you thank you madam chair Mr wait state law requires that you keep track of contracts awarded to minority women and disabled veterans may I have that information from you because one last ask you said you didn't have it. Have that with me today but I mean I'd be happy to share that with you and I'm not exactly sure which section you're talking about but if if we can the nation to a staff to research whether or not because if we're looking at if you will notice in the budget each time and ask about state contracts over fifty thousand awarded to minority owned businesses and when I ask you and I think you'll recall I conversation any minority contracts had been granted you tell me to keep track of it we don't don't I don't know of any state contracts that we've done over fifty thousand dollars under it doesn't matter I just want the information if you would be so kind as to send it to me should I have to tell me here we're we're we're pressed for time absolutely A Mister president we have moved from a previous location to Verizon could you tell me that was a cost saving move. It was yes in what way. The building cost. I wish the weather would calculated the cost savings was the rent and lease payments that everybody was making and previous buildings that they were in verses where they are today and it's about a million dollars a year. How much the building cost and I think it was twenty six million I can find out twenty twenty six million. And so those state agencies that are in there have to pay rent. To help offset the cost of the twenty six million how many agencies are in there the centers. Right now all the sides the department of workforce services so just work forces and there's a workforce is the only one thing about workforce services will be moving into the first or second quarter of next year is the building at full capacity not until workforce services is in there that was the next to the last one on the move they were scheduled to move in April and with the pandemic kidding and the the U. I. issue coming up to that took precedence over being able to move that the rest of the men. So you can show me where one million dollars is being saved yes please do thank you. All right to host senator Elliott you're recognized for a question. Just one question madam chair are Mr weights it out has there been any the minority of group issued a contract on the skills development grants other than the U. APD. Are there other thanks Senator Elliot I to be quite honest with you I don't think we've ever provided funding to you a P. B. for grants or when center just feel mentioned earlier wasn't exactly sure which one she was talking about but yes we do have and have provided funding to minority owned businesses obvious our application previously did not ask if you were a minority owned business but we have since updated that application to request that if you are a minority owned business there's a place for you can does it designate not take that but we can certainly provide you a list of all grants of been awarded and we can try to track that and backtracked that information figure out which grants belong to minority owned businesses and I think it's good to know too that a lot of times these companies are either you know national global organizations and so the person who may own the company may not be a resident of the state of Arkansas so I just adds another layer of complexity one try to figure submit information about this feels grant to the the skill development grants now right that's what is so some of those go to companies outside of we'll go to entities outside of Arkansas to operate in Arkansas they may have a plan facility locations state of Arkansas employing our Kansans but that but it may be owned in Michigan or Europe or whatever the case may be okay all right so that's great if you just give it to me if you're going to get it to me that be great thanks madam chair. Senator Sullivan maybe. Thank you madam chairman rights of so we've had a lot of questions about the distribution and different groups I'd like to get a heat map as you described it of the distribution of all these awards from all these programs based on congressional district can you do that. Yes Sir and then just madam chair if you don't mind I'd like to see the same thing it does save a question on the next section in the economic development can it a commission we can do that same thing for all those listed there they would show regional distribution of the amount of dollars the number of awards the number of applicants and minorities so we could see all of that and have that in front of us as we approve the budget committee that we can do that is okay thank you thank you madam chair. All right thank you a. Senator hammer you're recognized for a question measure. Back on the question of the rise in building were there any agencies boards or commissions that were moved into the Verizon building that previously on their building out right and we're not making any any lease or payments on the buildings they were moved out of. No not currently DWS owns their building. But the other ones this is far as I know did not they were leasing it from either at the VA or from a third party. So is the W. S. moving over there. That's the plan yes Sir and what are they going to be charged that they're not having to pay now. Well they they in their federal funds there allow operating expenses and so some of that will pay for their ran and they do have some but there you know they can't pay in excess of what they would if they haven't they have expenses at the billing that they're in right now you know schedule maintenance you know pest control you know in infrastructure elevator maintenance things like that so it would be included in the and what they would be paying in the Congress building so for all the agencies boards or commissions that have been moved into the Verizon building are they utilizing federal funds you know they're using names using a variety different funds. Some of them were using special revenue banking insurance and securities they have their own revenue sources that they're that they're using some of them have federal funds some of them have state general revenue like economic development almost all their funds St Joe revenue. K. I'd like to get comparison list for what they were paying in rent or lease prior to moving in the Verizon building what how it compares to what and so we have that data we actually have that data was submitted in the October like audit report which center Chesterfield asking about so that is actually in that like on a report okay which provides a breakdown by each division over a period of time what was being paid now what they're paying what the what the impact was to their. cost structure okay I will find that thank you. All right thank you very much of we have one more question. A Senate to Johnson. Recognized for a question. Thank you madam chair of Mr secretary in the new building the Verizon building will call it up. Is there a GM or a fitness center. Those for those part of the Verizon building brown had that is one of their employee benefits they have that that building was originally up was developed by Alltel for their finance accounting group and then when Verizon bought at the set up is a call center and they had a different I'm familiar with the history of the the two companies I was just curious about the current status there is a a fitness center GM in the in the current building there is yes Sir is it is this used by employees of your department not currently no Sir with with clover there's no access to it so but there was before cove it before there was go over there was they pay anything for that the use there is a to a ten dollar a monthly fee ten dollars is there a is the equipment still there shall we say waiting. It is there but it is also down in and no access to it okay so is there a and again we don't have a crystal ball here but is it expected that it would be re opened when a. The back everyone gets vaccinated or whatever's at least your your your help or intention we have a look that far ahead senator to to see to get you know we're we're dealing with what's in front of us right now when we get to that point will probably make a decision on what I have but but been buying the building the state receive the equipment and everything it was in this fitness center as part of the deal the deal included all the epiphany all all furniture and equipment so included computers and drop down screens we have a a graveyard chairs to it it came with a lot of furniture equipment to the base the just kind of walked away from the building which is what the doubt that the west data centers same way okay so the the fee that the employees pay the ten dollars a month does that court is that goes I just a cash account or something that's done through building services okay alright thank you for your answers thank you madam chair thank you A senator Chesterfield. One quick question here Mr ways what's the maximum amount you have awarded for skill grant. I'm in a given disappear just a one time grace had less the largest Greek you've ever given up think it would be seven hundred thousand something along those lines rough seven hundred thousand and to whom was it given I thank it was given in partnership to a issue maybe Searcy and northwest technical institute and part of process that establish them as to leading institutions for diesel technology and so we awarded a skills development grant to help of skill their equipment that they have there at the facility to increase training opportunities and the second largest. I'm not exactly sure thought my head but I can beverage the average awarded grant somewhere probably in the tens of thousands. About ten thousand I've seen a lot of five thousand in the information you've given but you're sitting on fifteen million so I'm just trying to figure out as we sit on fifteen million how we can make sure that those grants a given to people to develop these skills especially in times like these thank you Matt I think if okay alright thank you a. Mr a Representative Wooten we're gonna let you have the last question. Get. Again thank you Mr chairman Mister secretary you indicated that The building was completely furnished is that not correct. It was the it had furnishings some department brought some of their own furnishings with them some of the more old and how many of those agencies has turned the furniture into the distribution or redistribution. Hello hello hello to. How many of those agencies had to send money to the re distribution center and what kind of income that you will realize from that furniture I thank all the furniture and stayed there I don't think well I think some other state agencies came and and. Took some of that furniture with them I don't I don't here here's what I understand I mean it's all been calendar I understand from all I have been to know that all the agencies it moved in their head to give their furniture up in order to maintain the furniture was in the building and it went to the distribution center to be re distributed or sold my question is how much money did you all realize that all that furniture and all those agencies insurance buying securities of and economic development list goes on of how much money did you all realize and income from the sale of that furniture there was being used before those agencies moved in their their furniture I think the way that building was set up it was actually a DBA building and so I think that the assets were just transferred to other state agencies that needed updated or new furniture so I don't I don't think we realized a sort of net profit from any of the furniture that was in the building I'll double check that. All right thank you okay thank you that was our last question and to I need a motion for executive read. Second all those in favor say aye all those opposed all right motion passes a. A. Rec two prestin you can stay at the table of the to new toward Hamilton is now going to do the second division economic development commission you're recognized St. Thank you madam chair still to we're going to move on to the economic development commission we're going to start on page three thirty seven. This agencies got nineteen appropriations only eight of these appropriations have changes in there are two discontinuation is dealing with accounts and workforce training and their carers act program that they don't anticipate carrying over into the twenty two twenty three fiscal year so we're not gonna discuss those so on page three thirty seven the sister state operations appropriation to provide FOR personal services and operating expenses for the agency it's hundred percent general revenue funding. As you can see the agencies requesting some transfer physicians and restoration capital outlay to replace some outdated equipment we allocation from the small business innovation research research line item to their Arkansas acceleration fund program they are just continuing some state and federal funds to the transfer that energy office to the department of energy and environment this was as a result of transformation. The executive recommendation has the position reduction just one and a net reduction of approximately three point six million an appropriation each fiscal year from the authorized also includes the transfers of positions that we mentioned earlier. They're on page three thirty eight will see their appropriation summary is the regular salaries skis me and matching. Decreases the requested. The position decreases the requested. The operations expense going down by approximately two hundred thousand each fiscal year. Skews me. The hundred thousand that the requesting continuation capital outlay. And in terms of the two million we discuss the reallocation to another line item. If we'll move to page three forty nine that is the next appropriation that they're requesting. Mr science and technology state operations appropriation provides for personal services and operating expenses once again funded by a hundred percent general revenue. Again there's the request that the agency has for transfers and reallocation so that we had mentioned this two million the weed mentioned just now came from their operations appropriations into science and technology and then the three point nine from Arkansas acceleration to the Arkansas acceleration fund program line item. They're asking for an increase in their general revenue the executive recommendation however provides for on some title changes in reductions in positions and a net increase of approximately about five point four million over the biennium. Appropriation details on page three fifty. Use Miller see the reductions in the regular salaries of personal services matching as well as the positions. But it increases in the Arkansas acceleration program fund line item. Next appropriations changes is their new AMS Cassian treasury. This is a line item that Deals with the program called Arkansas in manufacturing solutions what is is essentially a team of industry specialists that provide hands on business technical assistance and other services. Findings from cash revenues and these confirm client service agreements assistance in training class revenues. The executive recommendation overall is for an increase in regular salaries and personal services matching of the by any of approximately ninety seven thousand dollars. Any change budget exceeded in regular salaries are personal services matching grants has to do with the transfer that the agency received from the cash fund holding can. Page three fifty six the next appropriation which changes this Arkansas manufacturing extension network this is a federal appropriation. The program provides a statewide industry driven network for the delivery of technical and management assistance. And this part of the National Institute of standards and technology program. Findings a hundred percent federally funded. They also have some third party reimbursements that they get FOR feel services and technical support for manufacturer supported under the grant. Agencies requesting thirty five thousand grants in aid fifty one thousand dollars and feel services in this is to an increased or requesting in federal funding this awarded to the program. Page three fifty six year appropriation detail. With the corresponding increases in regular salaries match and grants in aid it's proximately hundred and thirty three thousand that. Increase which is with the executives recommending for the next biennium. Next appropriation with changes on page three sixty six. This is there a app score federal appropriation is funded by the National Science Foundation and what it does is support programs that strength in research and education in science and engineering in the state. Agencies requesting to continue their appropriation of about five million into the next biennium. And to change the appropriation title to escort to allow the agency to expense all the grants that they get the deal with and score. Agency is requesting using the executive recommends increase of regular salary and match about ninety six hundred each fiscal year. I think this is for my changes Mr chair thank you for the comment. All right thank you A Senator hammer you're recognized for a question. Thank you madam chair starting on page three thirty six on the super project the question I asked well go in I was in the wrong place so could you go in answered it five point two million five point three actual but appropriation level two hundred thousand. two hundred million. Is that is that so that you can you need to bond a program you've got the latitude to do it or just help me understand that I think that's really just set up as a launch pad in terms of appropriation I don't think there's any bonding associated with that because there would be any you have appropriation but you still have to have the money for it so that money probably have to come to the legislature for somebody else if a Superfund recommend or from another funding source so the funding source relied upon it but I don't think have the appropriation allows you just bond something. I think it's just it's just there in case you have to happen. In terms of appropriation the the funding source down below their shows a hundred ninety four million in bond proceeds. They would be presumably issued pursuant to the super project amendment. The refresh my memory do you have to come back for us for approval to do that by having that in the budget you've got the authority to do it without having to come back to us we have we have to come back to the legislature yes Sir okay so that's a place holder for a project case it has which still have to come back for us correct okay and then on page three fifty. The Arkansas xcelerated fund program the actual is four hundred and twenty four thousand but it goes up as you go across what's the what's the reasoning for creation appropriation into the twenty two twenty three. Yes yes professional that's the accelerator fund that would be moved from a rainy day to a request for general revenue in the second year the biennium it's the operationalized money that's been coming in from the governor from the rainy day fund for the various technology accelerators and innovate Arkansas work that we've been doing. So if there's a request for rainy day fund that the governor presented the other day I think that had like twenty five million may be off on that but it seems like there is about a block of money set aside for a rainy day fund there is and that was for that first year the biennium that still gonna be funded with the rainy day and there will requesting is for the second year of the biennium that we get general revenue appropriation to funded verses rainy day. So operationalize it will make a permanent part of the agency budget at that point so it if I can there were over the years because we did have surplus funds used to be the G. I. F. that it became the rainy day fund there are a number of programs that were really ongoing obligations there were things that we were funding from one year to the next they weren't one time they work temporary they were long term commitments by the state but we're paying for them with one time funds so we've been trying to work to get those into the budget so that we all have it on one piece of paper we can all see what's the state's doing how big government is the accelerator programs and others are a good example of that. So. So that twelve point four. Is it is actually going to be a permanent it's gonna be permanently in the budget but the source of funding Ford is going to come out rainy day fund. No Sir so the if you look across there I'm on page three fifty you can see the agency requests for general revenue down at the bottom on the funding sources. That goes up to eight point five million. So the funding would come as per as part of the RSA and if you look at the governor's balanced budget you can see an increase being provided to the department of commerce primarily for this purpose okay so can I get a list of those. Program Sir what it is that has driven the necessity to make them part of the permanent budget. Sure that. Okay and then. The on page three sixty one you've got file you have fish and wildlife conservation program in your budget why or why is it I'm just trying to understand why is it over with you and not a with game and fish. That was that was like a carrot so one of the agencies as part of economic development role role services and the role services division I guess under this Arkansas code section has the of. Wildlife fishing wildlife conservation program that they conducting collaboration with game and fish commission. It was moved their prior to the I think the twenty fifteen sessions maybe twenty thirteen from official allowed to rule services and will grow services moved into economic development a came along with it okay and then three sixty eight. On the quick action closing. I'm I'm trying of drama memory as far as like the sun paper project and you know any expenses that were spent up to them or like the CZ gun of facility you know waiting for it to come into fruition is this the fund were all those activities occur. That's correct Sir in in and in some paper there were not any closing fund committed to that though. So within the state in expend any money no Sir to them yes Sir okay and what about the about the CZ gun facility that I think we're still waiting for it to come to fruition is it is that money accounted for in in here or what's the status on it because I notice it will be accounted for and here yes Sir okay we'll down there in excess appropriation you start off at eighty six and I think that's money in the bank is it within you work your way across the line help me understand that line on excess appropriation funding and the changes that occur. So that would just be a request for the appropriation in the event the the quick action closing fund is needed and then funding would be provided through the quick action closing fund or other revenue sources is the money for the gun factory allocated in these numbers do we have the word we have that money parked or why is it that we're not able to help facilitate that project moving forward though the in the the current budget and so that the project is still going forward but you know it's it's the release of our closing fund is dependent on them performing so they actually have to you know build facility start paying wages before were able to utilize those funds so it would be accounted for that current budget is there anything we're not doing that we're supposed to be doing to help make that happen so we can get that place up and running and you don't have a have done it in their that support from the closing fund is what allowed us to win that project to come to the Arkansas. Mister hammer yes hammer let me put you at the end of the thank you I'm done thank you all right thank you. All right the chairman Dotson you're recognized for a question. Thank you madam chair This is kind of long similar lines of back I'll start with the page three eighty six answer on that page three in the the sixty eight eighty six three three sixty eight that quick action closing since we're right there had that and also talking about the Super projects page which I'll get to in a second but excess appropriation funding you said is eighty six million you're asking for seventy five million do we have plans currently I understand quick action so but do you have any projects in the works over the next year or biennium that you're planning at the moment to expend that entire seventy five million each year. A I'll let secretary press in speak to the specific plans I just wanted to jump in to say that it's typical for us to project to that being spent in the event that of course we we we are asking for the appropriation with the expectation that we may need to use it and if we need to use it we would rely heavily on that fund balances laid out there that's why it's presented in that way. And then to to the project yes we have a lot in the pipeline we're actually seeing a lot of activity pick up so we could use as much as seventy five million each of the two years of the biennium if if we do our job right hopefully okay so hopefully hopefully were in is there any further authorization it's needed once this appropriation is approved or do you just get to go after those projects and and then report to us afterwards the governor has to approve it given us okay. And then on page three thirty six is the super project. And Yes. Can you help me understand the bond proceeds is that hundred ninety four million seven hundred thousand. Available or do we have to and go out and requests bond DO bonds after legislation is passed in order to approve a super project yes the bonds would be applied would be tied to did you this the project in question I think amendment eighty four laid out all the super project amendment the requirements that number the two hundred million in the one ninety four seven hundred is just a place holder that's obviously not reflective of any specific project or any specific bond issue so we don't have anything in the pipeline T. for that right at the moment but if we did get one then we would have to come in to pass specific legislation for that particular project and at that point in time in Cumberland those funds yeah we would we would have to go through the whole bond issuing process identifying stream of revenue my guess is there will be multiple opportunities for the involved in the General Assembly that process so I'm I'm wondering why we need the two hundred million dollars an appropriation if we have nothing on the. In in the works over the next biennium specifically and we're going to have to pass legislation can't we authorized well I don't know that we necessarily pass legislation or have in terminal C. action to approve for example a contract in I think this is being brought to book today because as part of the biennial budgeting process we would like during the session to get that appropriation in place in the event that there is a super project during the biennium. Okay so. You can go ahead and do a contract without coming back and us having because all the previous ones I've seen we've had a special session in order to authorize it and that's very likely to be the case so if that's the case. Wouldn't we have the ability at that point time to approve the appropriation for whatever the amount is if it's a hundred fifty or two hundred million or three hundred million that would obligate is to to I mean I don't know how these things work but if in the event that we get something like that going this is a a request right now to do that appropriation if we didn't have that and had to have a special legislative session that would be of course be the decision the governor out to make okay. Thank you. Alright thank you have a Representative make sure recognized for a question thank you madam chair of my court I've got two questions hoping B. real quick on the page three thirty seven. When I talked about appropriation request change very last bullet point says increased general revenue funding by six hundred and twenty seven thousand dollars to utilize appropriation. So. Give me an explanation of that so we sent appropriation you're just wanting funding at the full level what's that section thousand going for you see what I'm talking about on three three seven. Page three thirty seven the very last bullet point increase from general revenue funding by six or twenty seven thousand dollars. So what that looks like is the category the funding so what happened was we cut five percent of the agencies across the border and current fiscal year when he did the budgeting process for twenty two and twenty three we told the agencies that if they wanted that category D. money restored they had to ask for it so it had to be reflected as a budget increase and so that's what that is is looks like they're asking for that to be restored and the funding is restored in the governor's balanced budget okay the other question I have is working to find the appropriation line item for the Arkansas real connect program the the broadband program. Is that included or looking at today or. Yes that's the original it's I think so five million dollars it's a budget line item in science and technology I think it's in that one. Right now of course that program so large because of the cares act funding but there are still the underlying St Joe revenue commitment for the program going forward and I think it's in science and technology right so that's well so what what I'm looking for is we've we've got the over on your far right so what I what I'm looking at is we obviously there's the administrative expenses but what I want to do is see the grants what's the preparation level for the amount of grants that we can push through that program okay and on that I'm not entirely sure I think it's around five million but but I'm not a hundred percent sure okay so if that's the case then five millions all we can spend on the broad bring grants in the next biennium it it could another's in some discussion or trying to increase that amount of funding which would be a good idea depending on what happens in DC with the cares that funding. But right now just by million. Well the way the governor you know allocated twenty five million he's talked about thirty million and obviously this is a. Multiple hundreds of millions of dollars. Program and I wanna make sure there's plenty of appropriation to accommodate that should funding become available there's this other page three fifty eight is the Arkansas acceleration fund that was that in the initial thirty million dollar allotment that's without appropriation would be and then we have it in two places actually three fifty would be the administrative costs that was associated with it was Yes to the restricted reserve one is three fifteen so those are the two places the Senate budget okay so right now at most we could spend thirty million dollars on broadband is a state in the next. Looks like we've got thirty million authorize this year and then. Alternately what I'm getting at is is according to the broadband office and some of my estimates were looking at a you know six hundred seven hundred fifty million dollar problem if all we're gonna do is throw thirty million dollars a year at is gonna be twenty years before we get and obviously I think and I'm not sure most my colleagues would agree we probably need to be investing in a much quicker rate to get this technology out for our citizens that's why I hate seeing us capped at thirty million and what would really love to push that number if there's an opportunity to I understand the represent agree completely since we've been able to utilize the funds to the cares what we realize that we're to scratch the surface with a long way to go. The the that being the and about and that is for sure. The the current cap so safe I want to put it at a hundred million dollars we may never get a hundred million dollars but I don't want us to. Come up with a hundred million dollars and not be able to have the appropriation authority to spend it. And and I appreciate that were also mindful that we're trying to keep our appropriation right at where are funding levels are so this is an issue that were were struggling with an eight and a we would love to see that much money being made available to fund that project all right manager I having a proper of the motion at the proper time then. Welcome back to you all right of. Representative Cavenaugh you're recognized for a question thank you madam chair over here I'm dealing on page three thirty eight. If you look at your regular salaries for sixty six employees who had an average salary of fifty four thousand one hundred and eighty six dollars I can't remodel riding but I think that's what it is but then when you get to twenty two and twenty three you're asking for an appropriation increase of the average salary salary over seventy thousand dollars that's a sixteen thousand dollar increase per employee. Why we are we increasing salaries that much. You're losing employees but you're increasing your salaries. So it looks like. The amount of appropriation requesting reflects a reduction in the number of positions over all right down. So some of the positions are number the positions in that fund or authorized at a higher grade than there actually been employed at under a class in contact if we have a GS twelve for example and we put out an advertisement and the person we want to hire actually doesn't meet the criteria for twelve we can downgrade that position to Senate eight or nine it means we can put that person in that position they can carry out the duties that position at the end of the day were saving money the one we put together the appropriation request we have to budget that position as a twelve to sometimes what happens in the I guess that's what's happening on this one in particular is the positions and up reflecting a request for more appropriations ultimately needed I think what would ultimately be required as we need to review go back and take a look at the qualifications of the the authorization for some of those positions and see if they need to be downgraded. I would appreciate you to do that because there's it doesn't make any sense to have fewer employees and going to pay them more and I understand about merit raises in that kind of stuff but not sixteen thousand dollars an employee more yes ma'am. Thank you. Thank you A senator Chesterfield you're recognized for a question. Thank you madam chair and thank you Representative Cavenaugh because I was looking at the six hundred forty five thousand seventy fifty one dollars more that were putting into salaries for sixty people as opposed to the sixty six and twenty nineteen twenty. Moving over to page three forty in regular salaries we are an increasing that amount with the same number of people that line item is increased to by one hundred seven thousand four hundred thirty seven thousand dollars. Please help me understand that. That looks like to be the same phenomenon where your actual expenses the amount of money that is actually going out the door would reflect how much those folks are paid verses the appropriation request for twenty one to twenty two would to be reflective of the budget request for it how those positions are authorized or grade a I understand what you're saying but it does not make sense if the increase is over a hundred seven thousand dollars for five people now how do we break that down and make that makes sense so what we would do is we would get you the five positions as they are authorized and then the five positions as their field and my guess is if we look at that the five positions that are as authorized would be fairly high graded positions tens eleventh and twelfth and then as they're filled they would be somewhat lower seven rates or nines. You made an average of twenty thousand dollars J. come on. With this I'm trying to get free if you can't you really don't know do you not on these particular does not know just tell me you don't know okay because that that makes sense okay we're talking about black people hundred seven thousand dollar increase in looking at an average of twenty thousand dollars per person and I want our state employees to be paid well but that just doesn't make sense A quickly madam chair on page three seventy we have the minority and women owned business loan but I see no salaries in here which means that nobody's working in that area how we how are we going to administer this if there's nobody assigned to work in the area. What's reflected on my we have a a team of. Three people working in that division If the positions would have been and will be paid or tight out of a different funding sources so for example this UP program revolves he uses a specific line of financing it looks like interagency fund transfers transfers adjustments and other funds so that money for example could be tied up and and only used for this program we might use other forms of revenue like general revenue eccentric center do we have anybody working at this all I need to know yes we have three people in that. And approximately how many grants have you provided for minority and women owned businesses. I have that up to the top of my head but the I can get that you I would appreciate it thank you madam chair. Thank you Representative Ladyman you're recognized for a question. Thank you madam chair. my first question back on page three thirty four which is the summary page. Then at the very bottom excess appropriation it shows a twenty twenty one eighty million twenty twenty two nine two million so is that the amount of carry over that the entire department would have in those two years. Or excess funds may be carriers not the right term. That's all the individuals that would be the access or unfunded appropriation and for the biennium for the entire party and tire department all budgets yes okay thank you. All right Sir on page five three fifty eight if I can I'm sorry just to jump in in front of that for example you look at the very top of that that table on page three thirty three. Two hundred million of that this is just an example but two hundred million of that is unfunded appropriation that we're requesting for the super projects like Representative Dotson request that's just an example right but you also have a hundred ninety four million new money in bond proceeds we already discussed so I don't I don't need you to discuss it again but that goes to that top line two hundred million that correct Sir your are correct on page three fifty. The assassin technology we're talk about Arkansas acceleration fund the bottom line there. On the expenses twelve point four million. can you give an example of what type of projects that goes for. So that's that covers the the ones we talked about moving from rainy day and to general revenue so there's innovate Arkansas that's one of the programs the SBIR which is small business innovation research matching grant then there's Arkansas research alliance and the business and technology accelerator grant program select on the accelerator is when we partner with FIS to do an excel writer we bring in ten companies that are in the financial services sector and I go through eight and an actual accelerator we match that up to two hundred fifty thousand dollars as a grant for them to actually run that accelerator program so then FIS will partner with the state and in this case the banter Center in little rock to run these companies through an accelerator program we do that and all different sectors across the state they'll be one example innovate Arkansas's one that helps meals smaller kind of start up companies that are just in the generation phase of you know one idea taking that into a some type of commercialization and getting them access to funding a kind of mentor in coaching them through the process and then the FBI arts to matching grant that they can drive okay thank you for them and so with that be an appropriate fund for one of our major universities to work on a grant to war study whether at commercial operation are in the would be appropriate I mean for a new business new scientific business would have been appropriate line for that type project I I think either through potentially through that I mean that's a little bit outside the scope of and of a and but possibly the research alliance which is part of that depending on the nature of what they're looking to do could be a possibility but being a university would not be a problem no Sir okay. Thank you okay on page three fifty six. Of manufacturing extension that work. This is the same question on the grants there's two arms and five thousand dollars but what type of grants are we talking about their. This is there are manufacturing extension partnership these are for manufacturing who are trying to work on improving the process that they need to go in and get some type of training with their and you know the. A lean six sigma or three so called it to go through a small project and improvement in a manufacturing operations something along that line yes Sir okay and then what about field services three and seventy six thousand can you tell me what that what what is that for. Just below the last line. Yes this is kind of similar to to that other program with that one would be a partnership with an outside one this is where we actually have our our team go in we'll come in and and bring in an additional partner and do it Training total the outside of the manufacturing but pieces that are in manufacturing still was in house type thing yes Sir I thank you. Thank you Representative Representative would. You're recognized for a question. Thank you. my first questions on page three fifty. Of. Under actual use the positions. Your requesting five through reduction of three but the salary the ballot remained. The same so that means it's thirty three thousand dollars more per person. So in response to be a similar situation to what we discussed earlier with some of the other positions where they've been downgraded it also looks like to some extent these have been the subject let me interrupt you here Mr chairman this is the department of commerce budget Jake your entered ever question we didn't ask the of lady come up here today we asked the department of commerce to the end of under do they not know what's going on out there I mean several members of as four five maybe ten questions fifteen and you've entered a mall do they not alone do they not know what's going on in that agency I wouldn't I would my next question is how many people do you have in in insured services. How many personnel you haven't shared services for the rest of the. Department. We'll give you that number. Are you service from economic development are you looking to come to a lot of the your central office will not call your central office. Many people of your gutters. On the payroll that are providing services to all the agencies and commerce how many people. I think we're. I thank I will know Representative we'll get that number are you referring to the the department of commerce that we already passed that one above this or just the economic development commission hello this is for the total department the central office where they've move these a positions and to. And numerous other positions that they moved into the. Senate and is shared services thank were backed through page three twenty eight. How many is there. But not all those are filled. Thirty five be back in page three twenty eight Representative. Thirty five thirty I'm sorry. Thirty five the more you go move. That's the full plan right now. Yes. Thirty five positions twenty one field sorry is on another sheet. Well I can understand thirty five positions twenty one field it was on a different sheet that are looking at. Back on the other one. Page three fifty the thirty three thousand dollar difference on average between. Eighty seven thousand eight hundred dollars. Five employees at four hundred thirty eight thousand and eighty eight four hundred and thirty eight thousand is fifty four thousand per employee. Well the difference. Yes Sir that's the same explanation before which is that it's a combination of trying to break in that performance pay plan calculate the that you're paying them thirty three thousand dollars. In performance improvement per employee okay and then the other part of the calculation is the gap between what the position is authorized to pay which is what it's budgeted for and then what we're actually paying an employee for so there's a gap in there too but you've got five you've got five in at any. And I'm. Like to thank. in this is been in almost every budget this is the first agency we really run into this on Jake so what's going on out there they are we are we both on a lot of people love given pay raises in order to I mean I don't understand in this is ever question is good well you know we did this to cover this and this is authorization and appropriation but yet this is money this time uh the. I mean in terms of this particular. Question I'd have to go to the exercise of analyzing what are people currently being paid what are they potentially authorized be paid was there a salary treatment that was forecasted and included within the budget and I could tell you more definitively what that question is at least in this one but you could do that same exercise for or these these eight as. Are are these five positions filled now. And that I do not know because do well at no Sir I don't know well these are just okay rights within but if the less they are filled you know the exact a male. Yes for those five positions and you know was you average it out two percent increase four years two years. So you know you would now you know what alone under Mr chairman up. Our greatest I thank you boards been made thank you Representative you know close to valuation Jake needs to be made of these positions out there and exactly where exactly where we are unfortunately the way these budget Manser set up they just don't provide that level of detail it's not that it's not there it's just not provided in this particular snapshot but you'd have to do that for now is still question why somebody be about eight thirty three thousand more it could be could be no a in my opinion no that's not hard to see that is not a hard question to ask is just going to the process of calculating it I certainly agree with your point of Sir thank you Sir thank you all right. Thank you Representative and. Senator hammer. Thank you Mr chair I want to go back to page three thirty six which is a super project. Does a firmer company have to come. To the department with the project or can you go seek out a project that would qualify to get the funding through the up super project either way it just depends on this open size the project we were hunting for projects you know every single day sometimes the we get lucky and they and they will fall into us or consultant brings into us that that would include the super projects so it could be either way but it would you know obviously need to be the size and scope of a requirements to be a super project which at minimum is a four hundred million dollar investment in at least four hundred jobs okay. Let me pitch an idea to unit that's got mer we'll talk off line why could we not make broadband a super project and go ahead and take care of that because there's there I mean it would meet a lot of needs of industrious I know rule locations can you get a dollar general store because they can't run their equipment have we thought about or is it feasible or could we create a platform to have that conversation that we would take broadband and classified as a super project in order to get the funding so we are doing this over the next ten years but we can get it done sooner. Senate certainly an option we could look at I mean I thank you through a lot of scenarios in my head I just need to troubleshoot that a little bit more but happy to talk in more detail off line because I mean it certainly would create jobs and would necessarily be permit on the the infrastructure and build out but the potential creating additional jobs in the future now there's always going to be you know someone accountable to those job just like you know bigger steals accountable we have to do checks every every year not exactly sure what up to that but again I'm kind of thank you have a myself me we should talk about more okay let's let's schedule that meeting thank you Mr thank you senator and on the super project aspect of things I guess question. Do you have to have two hundred million dollars in a preparation in order to be able to talk to entities for them to say oh you've got this available is that a factor in their consideration or. Is it necessary to have that much preparation when you don't have a project in mind for that. Thank that's probably secretary press question. It's certainly speed to a getting a project done is always an issue for company and the fact that they see that we have that available and I know what's on the books certainly helps us I think if we didn't have it it could be a detriment obviously we still to go through the process but just on the surface it does help within a recruitment effort. So it is the this is a determining factor fit in it is an advantage for us and and and having that ability to know that that's out there yes that's something the consulting companies would look at. represent Cavenaugh last question. Thank you Mr chair my question is on page three forty and then I've got a center one for three seventy two. On your line item for grants and aid. And I'm all for your help in communities because we are they all needed specially role Arkansas but your actual spent with seven point four you're asking for actually about twenty million more an appropriation and what you spent I realize it's based on federal funding do you really expect to have an additional funding of almost thirty million dollars from the federal government for this. Potentially yes because of a this is the community development block grant program additional funds of come out for a disaster relief so the flights from last year there's some additional funds are coming through for that and then obviously there's funds associated with the the current pandemic that have allowed us to some additional new ability to get more funds out into the communities for community development so we do anticipate having a much more significant impact in and utilizing those funds next this coming year next year okay the funds for the call that pandemic is been under the care package is that not correct. Is not this grant it's another grant it's another grant in another appropriation yes okay so that answer doesn't answer this question. But it would it say there's a an unexpected an unplanned version C. and so you have federal funds that would come in you'd have to have a appropriation line to spend the money out of so in that was some of the question about the super fund the and I think if I'm understanding the budgeting process at a higher level which is where Jake and his team are when you're budgeting you've got to have at least up a plan as to where you think you might spend money just because you have appropriation doesn't mean the necessary going to spend it I think the issue that from the legislative side as you've got all the sections appropriation you're kind of wondering well how much of this are we really gonna need but the the issues you gotta have a placeholder somewhere in your budget where you can either spend money or the you could plan to anticipate spending money even though you may not have all the facts available to you at this point time be able to make that kind of business decision I realize what the appropriation process is but I also understand the job I ask for excess of appropriation on a daily basis and the way that we first starts been cutting spending in government is to stop excess appropriation go that doesn't give you the authority to spend money you don't need to spend at that that's all I'm asking and I'm going to my second question I don't get in the bite about a. Creation if I can just jump in here's an area where you know if for example that grants in aid line was reduced if we needed federal appropriation of course we would still have the energy process in the event that we do get a specific federal grant feds calls up say we want to take this money we could then still come before L. seeing get energy appropriations we still have that I realized that and I'm just now it's just that it's a it's a twenty million dollar in that one particular area and if you really have in your FOR thought that you've got you know where this federal funds is coming from I'm I don't have any trouble with that I want you to help this the communities that's what we need I also want to make sure that we look at that we're not just asking for it I'll be honest with you a lot of times you ask for excess appropriation and then through the A. all state process you asked to move that reallocated to different areas and that does happen on a regular basis and sometimes. That's just I think some of the process you go through which is fine funds to with with and and what is referring to in the pandemic in the funds that we had funds in CD BG the because we got operation from far too to re utilize we shifted a portion of those to provide funds to rule hospitals during high the pandemic so there's opportunities like that that we see in the future that we are able to and as a something we never contemplate before the the rule hospitals and we're going to need to spend ten million dollars to help them keep their doors on when they can do elective surgeries that's something that we're able to do because of this okay the other one is really on three seventy two this is the for the grants FOR the law enforcement and we only we're asking five five million dollars. And we only granted out fifty thousand dollars and you say it's a cash fund so where we get five million dollars in cash. It's three seventy two to get there yes it's. I'm not really sure where the funds come from. Why are we asking for an appropriation of will not work. Have so sounds like this was transferred over from the attorney general's office. House. ended it was amended into the bill during the last session into the into their appropriation. And so they would have had the funding for it but it just got transferred over train the transfer and process that I you know not that this necessarily answers your question but it it is another one of those appropriations contingent upon available funding so if some funding is provided through if if for whatever reason we want to provide funding for law enforcement grants and in smaller communities this would be a mechanism to do that and I'm all for that but we only got about fifty thousand we did not help him very much. But we want to ask for five million I'm not real comfortable that don't really know where it comes from either. Thank you. Can I have this budget flag from a place. It is flag in your name. on those funds can the AG's office still funded. we take their money the send it to us the question is whether or not they could release it is possible if we we can yes we were good at that okay Senator hammer quick question then representatives Wooten and. Were go to Mr makes for a motion. Thank you Mr thing Mr back on super project. That two hundred million does does that. Create a conversation in the world that looks to come to Arkansas. Thank you Judy ability to and Tyson duster to they look at that and say well that's all they're willing to invest will look at somewhere else how big of a conversation pieces two hundred million when you're out trying to recruit super project. It it depends on the project I'd say get this in the game. What you get in a bigger game if that was raised because if you gotta come back before us as legislative branch in order to get approval to actually do it. Does that change the game as far as you being able to recruit super projects to Arkansas I think as long as we are able to get in the game and we can have a conversation and and know that we have the ability to come back and and ask for an additional preparation should no need more than certainly you know if you look at the Toyota Mazda deal that was done and Huntsville amended being about seven hundred million dollar incentive package so and as far as our bond rating in the state does that two hundred million have any impact on a we got the long term reserve that's intend to get our bond rating up but does this two hundred million have any effect on our bond rating if that number was lowered or changed. I don't believe so but after the first to. A on that in all the conversations that we've had with bond rating agencies over the years that's not come up okay thank you Mr senator represented wooden final question thank you thank you Mr chairman let. Five million dollars on page three seventy two for law enforcement. Would they make application for that. Yes Sir one for one spread have we made the the service departments in the lands city police departments or where the fact that moneys available that's Senator department of real services and they're very proactive in reaching out to a county judges planning development districts sheriff's department police office local police departments of getting that word out so they they are you know. Do a good job in marketing and putting that out there's so there's always room for more people aren't fully utilizing it. Mister chairman did the. A Representative Cavenaugh move the flag that part of the whole budget I think it was the whole budget okay the whole budget I agree with that. One thing is hammer has a good ideal relative to the infrastructure of broadband is the. view that is one of the keys to our future economic development and particularly for companies that already operating in one through will be visiting with so I think we need to flag this whole budget also thank you thank you Representative will add your name to the flag list Representative makes. Ready for that motion thank you Mr chairman I move executive racked with with the exception the Arkansas acceleration fund which broadband fund currently at thirty million dollars on about that too fifty million dollars for a both of the biennium to show how serious we are about getting the broadband done so to be my motion. And that that is page three fifty eight fifty eight appropriation you sixteen from thirty million to fifty million. All right I have a motion is second from senator Irvin. All right senator Irvin you're recognized to speak to the motion yes some of the speak to the motion I think this is that a good a good motion to make because it shows our priority and where we should be focused on robin is the game changing policy that we should be pursuing as the state of Arkansas that will make the greatest impact for our citizens in all areas economic development health care and education and add this I think is the right thing to do I appreciate that motion I'm happy to second that motion and so with that I would just ask for a good vote thank you. Thank you senator I have a motion and a second this discussion on the motion Senator Elliot I believe this yes Mister chair I I don't maybe I was dreaming this up but somehow I thought that motion is going to be a hundred rather than fifty that I just that are just totally misunderstand that when your your previous conversation I guess I'm asking to them maker of the motion three you Mr chair that I I I believe that the you heard that correctly yeah yeah I that the I I had considered the hundred million but if that money does become available that obviously they can bring it back through peer NALC we can approve up two hundred million I just want to make sure that we didn't. Create too high of a cap that wouldn't it would preclude legislative oversight so the fifty million was kind of a compromise number my mind that it would preclude legislative oversight if we headed. Too high but an amount what do you mean by that right I I don't want us to put too high amount I want to keep it is are fairly realistic level and then if opportunity allows and we can. Of course adjusted higher as the if that happens. It is an appropriation level that can be brought before a l'cie during the interim if necessary if funding becomes available yeah yeah I mean I would love it if we had a hundred million dollars and don't don't get me wrong but I yeah make sure I'll be realistic I understand yeah I understand but I think it's sometimes it is really a good idea to send the the message that we are aspirational and FOR real about it not get the reality the thing about it as well but we have beaten this horse for so long I really would like to see us just go ahead and give more voiced of what we really need and we're ever going to do this at some point we're going to have to be bold and at least say that we want more and so I don't I don't want to make a substitute motion if this but if the make of the original motion don't think that's a good idea because it the but I just think this should be a higher number on I'm happy to to substitute my motion will make a hundred million I think I think we should because at some point we have got to take a stand when I raise money for something and we're never going to get to where we need to be economically educationally whatever unless we take the stand so all right if you would do that I will just I will change my motion to change that appropriation amount two hundred million all right thank thank you senator so you withdrawn your original motion represented makes and my original motion and of any motion the motion to on a second by senator Irvin. All right so. That motion is on the floor. Doesn't look like there's any discussion anymore discussion all in favor I. Any opposed motion carries. All right so Here's where we're at we've got a long agenda still this afternoon and we need to be back here at one thirty after lunch but we also have about five minutes before twelve thirty. Without objection I'm gonna skip the next session section of insurance department and will go to the bank department. And see if we can get through a couple of these after the insurance department Hearing no objection Mildren if you would take us through that one. Thank you Mr chair was telling two were going to the bank department on page four twenty eight of forty four twenty seven years here operations appropriation the purpose is to ensure the safety and soundness of state chartered financial institutions and they oversee the examination regulation of banks bank holding companies trust companies and other entities they are funded with special revenues and agencies requesting continued appropriation of about ten point six million into the next fiscal year AZT increase in operating expense of about two hundred fifty thousand to replace outdated workstations for their main office restoration of the capital outlay an increase in capital outlay by a hundred thousand to replace a vehicle C. executive recommendation allows for the agency's request. That's it for the Bank department FOR the bank department see. Fifty five. Representative della Rosa you got a question A yes just a quick question on it with the fund balance I think it's page four twenty eight if I'm looking at the right page. it looks like the fund balances seventeen million was it and by the time the year ended now it's up to twenty one point seven million. And then even with the appropriation if we spend up to the appropriation every time it still appears to be increasing up to about thirty million by the twenty two twenty three. biennium so can you speak to where the special revenues coming from this and if the fees could potentially be adjusted because it seems like we're we're over funding the operation of this and we might be able to reduce. Some costs for these it looks like the the banks the charter fees assessments examination fees industrial loan institution assessments it's better it cetera seems to be where this money's coming from so seems like we might be over funding operations if you can speak to that please. Commissioner Frank's wealth. Thank you Mr chairman Marshall bank commissioner the state department department of commerce. Thanks retired effective sept October first of this year okay at yes yes ma'am your question is so we have always tried to maintain an appropriate fund balance to cover our expenditures. An amount equal to about two years of our operating expenses are so revenue sources from assessments derived from a regulated banks and other entities issue listed. Those assessments common basis and the calculated off of eight. The fee schedule on total assets we have had an extreme amount of growth in our banks over the last. Five to six years I banks are doing very well in Arkansas in so that growth has appointed to an increasing amount of assessment. The challenges. Time. Can choose to merge are set out and go away if that were to happen I have an immediate loss of revenue funding at that point in time. Never be able to recoup. Order for us to try to limit the amount of fees FOR certain not increased fees on our institutions we have to pull that I could lose. Number of banks at any moment in time and then I would be faced with a situation where I might have to increase fees and so we ballots that over many years. Had to increase fees for twenty years I certainly don't want to do that and it's important to note that our current seventy five state chartered banks we have four very large institutions. Comprise more than fifty percent of our total asset OR told revenue stream and so even a loss of one of those four would be a significant impact and we want to not have that to recover and recoup against or other institutions so I hope that answers it does so basically once you have approximately two years worth of fund balance accumulated then you would look at perhaps reducing some of the fees if you're if you go over by that much in the future but for comfort you know in security you're really looking for two years worth of fund balance which you're not you're not quite two yet but that that's why you're you're you're retaining that if I if that act like. I'm sorry I'd like to say that is the best answer I have heard to that question out of any agency in the entire time I have been asking these questions about fund balances that is the most well thought out and you actually have a target so I just want to commend you for actually keeping up with how much is in your bank account why you're retaining it in always looking at wind we reduce fees or wind we not what what gives us comfort level and why you're doing it because most of them have no idea why they've got a fund balance and you know what a target goal is or anything so I I commend you for that thank you for. It is the Bank department. Thank you the the let's see here. Representative back. Thank you Mr chair and. Enter represented the Rosses speech all full of that about ISIS question but. It actually looks like you will have achieved your goal. The next biennial or. You've got pretty close to pretty close to two years already so why would you continue it out in twenty twenty three so actually your question I'm happy to add this as well when we assess how. collection so June thirtieth and December thirtieth of each year this past December thirty the twenty twenty we took a hard look at what we had in total assets and I banks the pandemic resulted in a huge influx of assets from institutions largely those banks that participated in the paint tech protection program other types of federal stimulus monies that came in transportations so they have a lot of growth that I would say would be inflated it was not their normal projected growth in our industry and so for June thirtieth of this this previous six month and we did make an adjustment already in this calendar year we adjusted down their assessment fees that we collected so that we did not penalize them for this and planned growth that occurred due to the pandemic and so we've already done that once and we will continue to do that at each assessment period going for it's just too much of a balance to narrow then if I have somebody merge out of existence in the meantime. Thank you yes Sir thank you. Thank you Representative Representative Wooten. I have a question well I was curious. You have a two positions which is great that are that open over two years but I'd like to know what you're holding a position it's been vacant since twenty twelve yes Sir for that is administrative services position and our administrative staff totals currently six that would be a seven position it's very small in the round of our total amount of staffing and with the growth and the assets in the bank that I mentioned at any point time we we don't feel that we might have to add someone but if the banks keep growing and the management around those exam process and the ministry to process to give our office going keeps accelerating I would feel the need to to feel that if this this extraordinary amount of growth continues. So how much how much is your is your income. Twenty one million is that one of the will of the access was twenty one may how much is your income per year. Is from Sir. About thirteen million. Thirteen million. So is. So it was a five million dollars a year in excess. Last year over your actual expenses you have eight point seven and you collected thirteen million. Sir we have yes there are as of June thirtieth and the receipts over disbursements with about four point five million. Again our income over our expenses at a June thirtieth for that year was about four point five million so it's have of what your budget have for what you Smith yes Sir for that six month period. Okay did you say you had reduce fees we did yes Sir for the June thirtieth two thousand twenty assessment we we did not. We modified assessment so where they were not paying more because of their recent growth in assets I fees get bill you still you still feel like you're going. Garner thirteen million and assessment. If you reduce the fee because of the influx of cares money being deposited. You reduce the fee but you only did you reduce of the law of thirteen million level no Sir we made an adjustment to keep it level with two thousand nineteen the assessment. How much was. Twelve point eight million have meant twelve point eight million sure you could two hundred thousand. I would have the map but yes Sir At the what we we did it was time three days and not penalize the banks for that arbitrary arbitrate but that an expected growth in their total assets cares of the yes Sir and other other types of influx there is that there's a lot of money out the system and there's a lot of actual dollar asset growth for our banks right now. But over the past fifteen years what I have seen anyway is or. Reduction in the number of banks that have to be audited. Yes Sir so the total number of banks under our supervision has decreased dated consolidation but the total assets under supervision or the size of those banks has more than doubled in the last five years so you're you're saying that the deposits in the the all the responsibility financially. Has doubled in the bank so that's consequently you're still having to have the same number of employees yes Sir actually in has more than doubled and the the the the up the significant types of activities are mainstream gauged and their presence at the the complexity of our state chartered banks has grown they have succeeded in the market place we have done all that without truly increasing our budget or increasing in the staffing we have not asked for any type of increasing appropriation for staff levels in several years and we continue to map manage and and effectively or hopefully effectively maximize our staffing and our funding source and to manage these banks are we on financial good standing and and and our banks throughout the state yes Sir. Thank you yes Sir thank you Representative. The Senator hammer final question. Thank you Mr chair A are you are you all located out they'll tell center also yes Sir I noticed that you've got a increase in operating expenses appropriation by two or fifty thousand replace outdated workstations for the main office. Can you explain that are just talk about that a second certainly Sir when we moved to in January of this calendar year to the department of commerce we wanted to keep or moving expenses the as minimal as possible we certainly had did not have anything previously budgeted are allocated for that the worry very mindful of our expenses we adopted and chose to use the existing cubicle furniture the existing work workspace furniture and I are designated area it is approximately twenty years old and really there's no more part fifth out dated we are not able to make modifications to it to benefit our does the designated space for asking for money so we can enhance that work area make it more usable and I I'm more feasible for our staff okay a sector Preston is this the only department that's having because I I just caught this in this one maybe it's in the others but. Do the other. Agencies that have moved out there into the all auto center they having to upgrade their equipment as well or was ACT calculated in the cost of savings and loan I was calculating the cost of savings in in some floors were and you know much better condition so they moved into an area where the cubicles are still utilized in the bank departments the you know there's maybe a little bit more outdated so they're gonna need to to update and at some point so each for which is you know and in various state of you know this depending on how much utilization it received from the the previous tenant okay and then back to the functionality of what you do if you've got two major banks in the state that March okay we won't call names but you get to major state banks and they merge you no longer the reason you're saying that you're revenue gets cut is that whereas before you were able to assessed to but once they come under the same umbrella as a new banker under existing bank you can only charge the one is that is that the theory yes Sir that's correct you don't do it by physical location of each bank in the community you do it by where corporate is located correct an asset father that corporate institution does that apply to out of state banks as well or banks that whose corporate headquarters are out of state Mr weak point now faith and have no oversight of out of state banks that have a presence in Arkansas even though they've got banks in the state that is correct how do you regulate them then we don't that is delegated to their home state regulator just as our Arkansas banks if they have branches in Florida or Georgia or Mississippi they're regulation in those states is it comes back to us and we have a nationwide cooperative agreement with other state so that we can ensure that we have the authority should we need to address the in another state okay forget all right thanks for the explanation yeah sure thank you senator Representative Wooten. Lap last question make a very brief please Rick you have reciprocity yes Sir is that what you have with Florida for Arkansas for for the banks that have bridges here yes Sir okay. So you're spending or asking for around five hundred thousand to alter your work space in the Verizon bill of the blanket more adaptable or what you to. Yes Sir two hundred fifty thousand in each year the biennium okay alright. Thank you represent what about your what about your furniture cost. What did you get any income back from the money you follow all the furniture you had to turn in order to get any credit on your rent or your charge in commerce for that furniture that you have to dispose of we were able to bring a lot of our furniture with this and so we didn't have we had found that that was turned over to amend our or other state agencies directly one on one and then and and you know unfortunately our cubicle furniture that was in our old office it was also well over twenty years old and and they want us not to move it that it would simply not make that the move and so we we we did a bland we made efficient use of the furniture we did have an like that we brought a lot with this and others we went to do good sources I don't have a dollar amount of exactly what we may have I received from this this positions of our other old furniture but we could certainly get that if need be Representative if you look down at the Funding sources line item in our sales. They're shown seven thousand one hundred and sixty three dollars and revenue coming from in our. Thank. Thank you Mr chairman thank you Representative thanks I've need a motion executive director got at the second all in favor. Any opposed motion passes. Members have a quick lunch and be back here at one thirty we got a lot of a gentle of to go through we're answer we are recessed.