ALC - JBC Budget Hearings
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- October 7, 2026
Chair (Senator Justin Boyd)
Unverified
0:00
Uh, so welcome. Um, the first thing that we want to do is, um, make an announcement or a clarification, if you will, on the publications, the A book, the B book, tax handbook, they're going to remain at the desks for the entirety of the ALC joint budget committee hearings. that said the binders the white binders on your desk those get changed out every week
so you can't take the binder with you because that's state property that stays here but you can take the content so if you need to make notes you can take the entire contents of the binder you can take you know part of the contents of the binder each week but just uh wanted to clarify that the the white binders those will be changed out every every week so if there's something in there that needs to be part of your permanent record you need to to take
Speaker 2
1:02
it with you each week okay so with that said um is there anything on
Chair (Senator Justin Boyd)
Unverified
1:08
b okay so we're going straight to to c1 uh
so cameron witt if you'll come to the table and then uh renee mallory and team especially Matt Gilmore. You'll come to the table. And then once everyone is assembled, if each individual will introduce him or herself for the record, then Ms. Witt, you may begin after that, okay? Cameron
Senator Missy Irvin
Unverified
1:46
Renee Mallory, Secretary of Health, Department of
Chair
Unverified
1:58
Department of Health. Matt Gilmore, Department of Health. Thank you, Mr. Chair. As I said, Cameron Witt, Bureau of Legislative Research. I will start by presenting item C1 that's behind your agenda. This summary of the health-related boards and commissions show actual expenditures for the last fiscal year,
the current authorized appropriations, and the agency request and executive recommendation for the next biennium. It lists 19 agencies alphabetically along with the page number for more detail. Most of these boards are funded by cash revenue or special revenue. The spinal cord commission is the only general revenue receiving agency and they are requesting about 2.3 million in both years of the biennium across these 19 agencies you will be reviewing a total of 27
appropriations and 26 of these appropriations have no change levels the one appropriation with a change level is the arkansas social work licensing board they are requesting an increase of about 33 900 and extra help and personal services matching to support the effective management of licensure application processing and renewals. This funding is supported by special revenue from licensing fees and penalties. On the bottom of the summary you will see that the total agency requests come to
approximately 17.3 million in both years of the biennium and the executive recommendation provides for the agency's request. That concludes my presentation on the health boards and commissions. thank you for
Chair (Senator Justin Boyd)
Unverified
3:44
your presentation representative call on Collins your can ask a question thank
Representative Andrew Collins
Unverified
3:52
you mr. chair so I'm looking at your positions here and
really it looks like it's pretty much all on the health operations paying appropriation and I see obviously that in for this budget cycle you're back down to around 1,850 positions and 222 extra help. But I'm curious how we got to the point of having 2,203 appropriated positions when you only had 1,812 in fiscal 26.
Can you walk me through how we got
to that point? Because that's a whole lot more positions budgeted than you actually had. Representative Collins,
Representative Andrew Collins
Unverified
4:43
you're on just so I can make sure? Well, you know, you can look at the summary, but I think page 159 is
Don Adams
Unverified
4:52
probably the most direct way to look at it. So, the 1812 is the positions that we actually field in fiscal year 26 of the positions that are appropriated to us.
and then under budgeted expenditures for this fiscal year we've budgeted 1852 but of course appropriated 2200 a little over 2200 so some of the positions that were appropriated to us we did not budget and of course we make an evaluation on what we think we need and we don't need and then of course if we don't think we're going to fill that position we don't budget it And then, of course, moving into the next biennial, we are surrendering those positions that we didn't budget this fiscal year.
Representative Andrew Collins
Unverified
5:38
Right. I know that. But I'm saying, how did we get to the point where you guys were asking and we granted appropriation authority for
2,200 positions when you only needed 1,812? Representative Collins, can you hold that question?
Chair (Senator Justin Boyd)
Unverified
5:50
We're really on department boards and commissions. we're sure we're going to get in okay that could be answered in your present in the presentation that may be all right we come back to it thank you representative wooten do you have a question specifically on the boards and commissions or do you have a broader question that we can
come back to after we heard the entire presentation okay okay we're coming back to that when we when we get further yes yes and senator ervin i'm assuming you've got a question on boards and commissions you're recognized for your question thank
Senator Missy Irvin
Unverified
6:35
you i see just from this right here thank you good morning thanks for being here with us appreciate
looking forward to your presentation of your budget um reason to keep fund balance beyond three-year average running average everything is listed as a no would there ever be a reason to keep the fund balance would that ever be a yes and would there be a reason
Matt Gilmore
Unverified
6:59
provided i i don't think so and and they they bring in you
know consistent revenue um and we evaluate that every um every spring um i i do think we're trying to get those balances down and then we're probably
i want to have some conversations about lowering some of the fees lower and just to get those down to where we don't have to you know every year evaluate those and kind of and it fluctuates so much
Senator Missy Irvin
Unverified
7:27
right so just really yes ma'am receiving what you really need to send out versus keeping and building a fund balance i mean i think that's the goal here yes ma'am right from this data um And I assume all of these fees, well, not all of them. Most of them are
Matt Gilmore
Unverified
7:43
licensing fees. A few permit fees, but mainly occupational licenses.
Senator Missy Irvin
Unverified
7:46
Yes, ma'am. Okay. All right. And the Spinal Corps Commission, that one is? It's State
Speaker 45
7:52
General Revenue. Okay. It's SGR. Yes, ma'am. Okay. All right.
Senator Justin Boyd
Unverified
7:59
Thank you. Thank you. Seeing no other questions, do I have
Chair (Senator Justin Boyd)
Unverified
8:03
a motion to approve the executive? I've got a motion by Senator Irvin. Do I have a second? I have a second. All in favor, say aye. Aye. Any opposed? Motion carries. We're now moving on to D2. Representative Collins and Representative Wooten, after this presentation, if your question's
not answered, please go back in
Chair
Unverified
8:27
the queue, okay? Thank you, Mr. Chair. The Department of Health Secretary's Office Appropriation is on page 127. This appropriation is used to pay for the secretary salary, personal services matching, and support staff. It is funded by shared services transfers from the health operations paying account and from the health boards and commissions.
Changes in this appropriation include an increase of approximately $367,000 in extra help, $116,000 in personal services matching for the use of medical personnel. The agency said this increase is needed to support the seven extra help positions that were transferred in the 2025 Act from their operations for more flexibility to utilize these positions within the boards and commissions, especially nurses. There's also an increase of $1 million to ensure support for operational needs across the agency's divisions and programs.
Broken down, there is an increase of about $700,000 in operating expenses, $200,000 in professional fees, and $100,000 in grants and aid. This will allow the agency to better utilize the shared services transfers that are collected in this account. The total request and executive recommendation are approximately $1.9 million in both years of the biennium. If you'll turn with me to the department summary on page 153.
This is the department appropriation summary. The department has 10 ARPA appropriations that are not requested for the next biennium, as well as eight other appropriations they are requesting to continue. These are funded by a mix of general revenue, federal revenue, special revenue, fees, transfers, third-party reimbursements, manufacturer rebates, and tobacco settlement funds. Currently, the department has $439 million authorized in appropriation, and they are requesting a total of approximately $411 million in appropriation going into the next biennium.
This includes about $79 million in general revenue, which is utilized in the Health Operations and Trauma System Appropriations. Two of these appropriations have change levels, the Health Operations Paying Account and the Interpreters for the Deaf and Hearing Impaired. So if we'll go to page 157. This is the Health Operations Appropriation.
It is their largest appropriation. It supports the operations of the Department of Health, including multiple divisions, two central offices, and more than 90 local health units. It supports various programs, specifically those for kidney disease, breast and cervical cancer, epidemiology and laboratory capacity, and maternal and child health. It receives a combination of general revenue, federal funds, special revenue, third-party reimbursement, tobacco settlement proceeds, and other program support funds.
On page 159 is the appropriation summary. There are two change levels. The agency is requesting zero dollars in capital outlay to align appropriation with anticipated expenditures and to discontinue appropriation for infectious disease control due to the federal program funding ending that originated from the COVID-19 response. In total for this appropriation, the agency is requesting approximately $300.7 million
in spending authority, which is a decrease of about $28.3 million from the current authorized. The request includes approximately $59 million in general revenue, which is the executive recommendation. The next appropriation with changes is on page 173. It provides for expenses of the interpreters for the Deaf and Hearing Impaired Advisory Board. They are responsible for regulating and supporting the certification and professional
standards of interpreters for the deaf, deaf-blind, hard-of-hearing, and oral deaf community. Funding is derived from fees and penalties as authorized in Arkansas Code. The agency is requesting an increase of about $100,000 in appropriation for expenses in both years of the biennium or a total of 125,000 in order to modernize testing materials expand interpreter education and support administrative functions the agency says they are developing a new test
and this will allow them to utilize their fund balance as needed the executive recommendation provides for the agency request and that concludes my presentation on the department of
Chair (Senator Justin Boyd)
Unverified
13:41
health thank you uh i'm going to start with representative collins since i stopped him first and
then we'll go to representative wooten representative collins you are recognized thank
Representative Andrew Collins
Unverified
13:52
you mr chair um so yeah so my question and i understand that you guys are eliminating the unfilled positions which is good everybody should be good with that but i am curious about how we got to 2200 when
you only had 1,812 of the positions filled. Were they formerly filled? I mean, were people working in those positions before? And if not, I'm surprised that this committee wouldn't have asked, you know, why are we appropriating 400 extra positions more than we had if we did ask that at that time? What did you say? I'm just kind of curious how that was where we are coming from now. I'm glad we're eliminating them, but I mean, to the extent they're not filled and don't need to be filled, But why were we there?
Don Adams
Unverified
14:40
Yes, sir. So we did add positions during the pandemic, and some of that is returning the positions
Representative Jim Wooten
Unverified
14:45
that we no longer need. A lot of these positions have been vacant for a very long time. And so in years past, we may have carried those just in case we needed them, although there's a cost to carrying them on our budget. And so we are now surrendering those positions because we feel like that's the most fiscally responsible thing to do. Okay.
Representative Andrew Collins
Unverified
15:10
And then related to that question, I see that you actually only had 46 of the extra help positions filled, but you've retained the higher 222 number of positions that you're requesting. I guess why retain that if you don't have, you know, that
many of those filled? Yes, sir. So in years past, we have filled
Don Adams
Unverified
15:34
more than that. Of course, during the pandemic, we filled more extra health positions.
Representative Jim Wooten
Unverified
15:41
So it kind of depends what's going on as far as outbreaks and other things in the department. But to your point, we probably have more than we would use under normal circumstances.
Representative Andrew Collins
Unverified
15:54
So, OK, well, and I guess you guys have had a few rounds of layoffs and things like that, obviously, over the last couple months and beyond that. That, I assume, would all just kind of be, for the most part, that's in this budget category here, where you guys have had the layoffs, have people, you know, positions that you don't plan on refilling.
That's all in this appropriation, this health operations pay?
Chair (Senator Justin Boyd)
Unverified
16:23
Yes, correct. Thank you. Representative Wooten, you are recognized
Representative Jim Wooten
Unverified
16:29
for your question. Thank you, Mr. Chairman. Sir, thank you all for being here today. But my report shows that you have a total of 2,390 positions out there in the health department. 214 of them have been vacant or in the health Arkansas department, including tobacco in previous and recess in succession.
214 positions you don't need or, you know, you use the language in case you might need the vacant positions. Well, the taxpayers out here are suffering, and they don't have an in case. So why are we holding 214 positions in the health department that have been vacant for over two years? Representative Wooden, first,
just to clarify, we are surrendering those positions going in this biennium, so that's in our budget.
And the positions that we're surrendering, we did not budget. They're appropriated to us, but we did not budget those this fiscal year. So there's no expense related to, even though they're appropriated and authorized, there's no expense to the taxpayers by having those positions. But we are surrendering those and more going
into next fiscal year. How many are you giving back? Agency-wide, we're 368. 368 positions? Correct. That you're identifying that are over two years?
Representative Jim Wooten
Unverified
18:15
I think you mentioned earlier, those are the ones that have been vacant for over two years. But we're surrendering additional positions beyond those. They may have
been vacant for a year and a half or a year. Well, that's commendable. And are you reviewing them every year? You're reviewing each position? Yes, sir. That you have. Okay, one follow-up question. On this sheet of paper that we were given this morning, under the fund balances,
I see the medical board has a fund balance of $16 million, expenditures of $2.8 million, and $8.4 over three years. And there's several. Here's one. Representative Wooten, we've already approved that one. Can you take
Chair (Senator Justin Boyd)
Unverified
19:02
that question up after the fact? I mean, it's an important question, but we're now past that. Never mind.
Just forget it. I have just what I think will be a quick question, I hope. So you said something about infectious diseases. I just want to make sure that with.
Speaker 70
19:45
Representative Wooten, we'll. Representative Wooten, we've moved on.
Senator Justin Boyd
Unverified
19:55
Representative Wooden, we have moved on, and
Chair (Senator Justin Boyd)
Unverified
19:59
those are not general revenue agencies for the most part. So back to my question. So you said something about infectious diseases. I just want to make sure, you know, on occasion we have mosquito-borne illness diseases pop up.
We've had a mumps outbreak. There's discussion of measles outbreaks. Do we have what we need for surveillance and appropriate response to a historical, well-known concern of, you know, infectious disease outbreak? Yes, sir. Thank you. All right. Representative Hudson, you
are recognized for your question. Thank you, Mr. Chair.
Representative Ashley Hudson
Unverified
20:46
I wanted to go back to the WIC funding. I wondered
if you could give me some additional information about what assumptions about federal funding are built into this budget and what the plan is, if there are cuts or shortfalls at the federal level given some of the changes that we've seen to SNAP program and other funding. Yes,
Representative Jim Wooten
Unverified
21:10
been continuing level. And the particular funding we have in here is for our food packages, and so we have enough
Representative Ashley Hudson
Unverified
21:19
and you can meet that independent of any federal funding is that what you're saying no ma'am okay so my question is if there is a cut to federal funding what
Representative Jim Wooten
Unverified
21:32
contingency plans do you have in place well you know that's a federal program that dictates the food packages and along with receiving the money so if it was cut we could take a little cut and not hamper services so we have more food funds than we actually expense in a given year so there is some
cushion there even if there was a cut if it got below our current expenses we would have to evaluate shifting funding and you know making adjustments can you give me
Representative Ashley Hudson
Unverified
22:00
some idea of what that cushion is approximately well I
Representative Jim Wooten
Unverified
22:04
think last year I'd have to look at it we spent 51 million dollars in food package funds were appropriated for $60 million. I think we actually have more funding than even we have appropriations, so we have quite a bit of cushion. Okay, thank you.
Chair (Senator Justin Boyd)
Unverified
22:22
Thank you. And just as a point to help other members, if you could tell us what page number you're referring to and a question, that might help some of us stay engaged in the conversation. Senator Love, you are recognized for
Senator Fredrick J. Love
Unverified
22:39
a question. Thank you, Mr. Chair. And I'm going
to go back to the positions that were authorized and then the ones that you're surrendering. We talked about extra help positions. And so tell me, in these extra help positions, what is covered under that pool of positions?
Don Adams
Unverified
23:00
Senator, the extra help positions have a lot of flexibility. So we can fill those extra
Representative Jim Wooten
Unverified
23:06
help positions in different class codes kind of depending on the need. So they're not really specified as we've got so many nurses, so many clerks, so many health program specialists. They're more generic in nature, and then depending on our need, we can fill it in a certain class code. Okay, and are these the positions that we're going
Senator Fredrick J. Love
Unverified
23:25
to be surrendering? No, sir. Okay, so you're not surrendering the extra help positions. you're just surrendering specific positions that haven't haven't been filled for I guess over the
past two years correct okay and are we saying that we do not need any of those positions I guess that's what I'm trying because what I'm thinking about is when we talked about like outbreaks and different things and do we have those positions so are those the extra help positions that we're talking about that we can deploy if we need those at any given time i'm just trying to make sure that we have what we
Speaker 92
23:59
need correct so we're not at this point we're not surrendering any
Representative Jim Wooten
Unverified
24:05
appropriated extra help positions that gives us that ability that you were speaking of so the positions we're surrendering are regular positions that haven't been filled in a while and that
Don Adams
Unverified
24:15
we've evaluated and don't we don't feel like we need them moving forward okay all right
Chair (Senator Fredrick J. Love)
Unverified
24:20
i just wanted to make sure thank you thank you
Chair (Senator Justin Boyd)
Unverified
24:24
mr. chair Senate Irvin you're recognized
Senator Missy Irvin
Unverified
24:31
for your question thank you mr. chair page 163 so trauma system just want to talk about that for just one second at one time with I'll let you get there
so we were able to use part of this fund balance to assist with purchasing more LARC long-acting reversible contraception are we still doing that and if not why and because I see here that additional funding support for stroke STEMI and injury prevention programs which I'm very supportive of but I'd really like to see long-acting reversible contraception in there yes
Don Adams
Unverified
25:16
Yes, Senator, so this money is available.
The carry-forward funds are available for LARCs, as you mentioned.
Representative Jim Wooten
Unverified
25:22
And so that's evaluated on a year-to-year basis. We use multiple funding sources to buy LARCs. We have some reimbursement money. We have some federal money. And so if we need that, we can tap into this carry-forward funds.
Senator Missy Irvin
Unverified
25:37
Okay, is LARC listed in language in anywhere in your budget manual? Special language, I believe. Special language. So we'll see a special language section attached to this appropriation or just your general appropriation?
Don Adams
Unverified
25:50
This appropriation, the 0645 Health Operations. Okay. I'd really,
Senator Missy Irvin
Unverified
25:54
I'd love to see that just written. I mean, just because I think that it's a commitment that we need to state publicly. We are stating it publicly for stroke, STEMI, and injury prevention. But let's put that in the manual. Let's list that because we are doing it. And I think we as legislators need to see the commitment there, and it needs to be reflected in the budget manual.
Speaker 57
26:21
I do think it's specifically listed in special language. I'm not looking at it right now, but I do believe it
Senator Missy Irvin
Unverified
26:28
is, but we'll confirm that. Okay. Yeah, just in the budget manuals too I think
Chair (Senator Justin Boyd)
Unverified
26:37
would be a great thing. Thank you.
Thank you. Representative Garner, you're recognized for your question. okay representative Richardson you're recognized for your question no you
don't have one okay senator Tucker you're recognized for your question thank
Senator Clarke Tucker
Unverified
26:53
you mr. chair this is just a broad question we've had some excellent specific questions about WIC and Larks and I'm supportive of all of those there's clearly some health care changes taking place in the state right now our waiver for Medicaid expansion I understand that's in a different agency, but also other aspects of health care delivery in Arkansas, we're eliminating unfilled positions, which I understand the rationale for. By and large, the budget is being held flat in what you're proposing here. And it's just a big picture question. Given the dynamic and the
scope of the health care changes that are either happening or on the verge of happening in Arkansas, Is this budget request sufficient for y'all to deliver the services that the people of Arkansas need for the next fiscal year? So I'll start,
Renee Mallory
Unverified
27:46
Senator Tucker, and then I'll let the team enter in. But we, you know, we had a lot of funding come in during COVID. And so, but that funding allowed us to look at some infrastructure things that we need to do as far as technology and that kind of thing,
which has allowed us to look across the agency and try to be more efficient with what we have. So in short answer to your question, the answer is yes. We have enough to do what we think we need to do right now and in the future. You never know what's going to happen, but right now the answer to that is yes. Okay. All right. Thank you. Okay. Seeing
Chair (Senator Justin Boyd)
Unverified
28:33
no other questions, do I have a motion to pass this executive recommendation?
Oh, you do have a question, Senator? Okay. So I've got a motion. Do I have a second? I have a motion. I have a second. All in favor say aye. Any opposed? Motion carries. Moving on to item B, or D, is it D3? C3. Item C3. Ms. Witt, you are recognized. Thank you. Thank you,
Chair
Unverified
29:00
Mr. Chair the budget request for the health services permit agency starts on page 186
This agency operates under the direction of the Health Services Permit Commission and is responsible for reviewing applications and issuing permits of approval for designated health care facilities and services on On page 187, you will see that the operations of this agency is supported by general revenue and special revenue, which is derived from certificates of need applications. Pursuant to Arkansas code, these funds are deposited into one account that is designated
specifically for the agency, and you will see that carry forward amount on page 188 and in the budget detail. The agency is requesting to continue appropriation in the amount of approximately $478,000, which includes approximately $445,000 in general revenue for both years of the biennium. The executive recommendation provides for the agency request, and that concludes my presentation on the Health Services Permit Agency.
Chair (Senator Justin Boyd)
Unverified
30:15
Okay. Any questions? No questions? All right, with that said, do I have a motion to pass this executive recommendation? I see a motion. I have a second. Do I have a second, someone? Second. I've got a motion, a second. All in favor say aye. Any opposed? Motion passes. We are moving on to four.
Chair
Unverified
30:42
Thank you, Mr. Chair. The budget request for the Minority Health Commission begins on page 196.
This commission was established to study issues related to the delivery of and access to health services for minority populations in Arkansas and promote the prevention of diseases and conditions that disproportionately occur among minority populations. They have three appropriations. Funding for these appropriations are supported by tobacco settlement funds, fund balances, general revenue, and cash revenue from donations, grants, interest, and reimbursement for expenses associated with various public health initiatives.
The Minority Health Operations Appropriation on page 202 is the only one with changes. The agency is requesting to discontinue this appropriation alongside the general revenue funding it has received in previous fiscal years. The agency is requesting to transfer the associated expenses from this appropriation to the Minority health initiative appropriation on page 200 in order to enhance operational efficiency and utilize more of their fund balance in total the agency is requesting a continuing level of
appropriation of approximately 2.1 million in the next biennium in both years of the biennium and the executive recommendation provides for the agency request that concludes my presentation on the Minority Health Commission. Thank you for your
Chair (Senator Justin Boyd)
Unverified
32:11
presentation. Do we okay I see we've got some questions those were quick. Senator Love you are recognized for
Senator Fredrick J. Love
Unverified
32:20
your question. Thank you thank you Mr. Chair. Secretary Mallory now exactly tell me
exactly what are we doing because I just heard
that we're going to be transferring appropriations to the minority initiative so tell me exactly what we're doing. I think I can speak to it,
Matt Gilmore
Unverified
32:39
but it doesn't matter who speaks to it. I just want you to speak to it. So they have several with the minority health commission. They have a couple of different appropriations, but some of the positions were funded
with SGR. They've got a healthy fund balance. And so we, we, uh, suggested and made the recommendation to move those positions
over to, um, the tobacco settlement, uh, funds that they receive. They've got a healthy fund balance of that and just trying to be uh you know we've gotten comments in here before about using that fund balance and just wanted to you know try to do that and that's that's all that change is basically moving it from sgr to master settlement funding in their fund balance all right so we're
Senator Fredrick J. Love
Unverified
33:24
moving it from the state general revenue to to yeah
Matt Gilmore
Unverified
33:28
to master settlement funds most most of the positions are funded at the commission through master settlement funds and we're just putting
them all in the same appropriation and uh moving that those positions off sgr over to that okay but that's
Senator Fredrick J. Love
Unverified
33:41
still within the minority health commission because i thought i thought she she stated that it was moving to the minority initiative well the initiative is part of
Matt Gilmore
Unverified
33:49
the commission and it's i look at it as one big one large budget but it is two separate appropriations but it's we'll be moving those sgr positions that we're talking about here over to the initiative fund which is where the other six or seven positions are it's all part of the commission
Senator Fredrick J. Love
Unverified
34:06
though okay all right now what was let me
Chair (Senator Fredrick J. Love)
Unverified
34:12
let me let me see what was the fund
Speaker 125
34:15
balance as of right now uh at this moment it's about 5.7 million this fiscal year 5.7 million this fiscal year okay all right thank
Chair (Senator Justin Boyd)
Unverified
34:26
you thank you mr gilmore for that clarification representative collins you are recognized for
Representative Andrew Collins
Unverified
34:31
your question. - Thank you, it's related to that same line of questioning. So you're discontinuing the appropriation
to the Minority Health Commission from general revenue, spending down the fund balance. It looks like if you're going from 5.7, 4.1 to 2.4, by the end of this biennium, you'll be kind of near, I mean, you could do one more biennium and spend it all the way down. Is the plan to bring that appropriation back at some point and resume general revenue, or is the plan to just spend the fund balance down and do something else like discontinue the Minority Health Commission?
Matt Gilmore
Unverified
35:08
So I think the numbers you're seeing there is what we've certified, but there's annual payments still coming into the master settlement funds that help support this. They're spending pretty much what that annual payment is every year. And the fund balance, I don't see it going down very quickly at all. And so what I guess I'm trying to say is what we receive for the master settlement payment every year is covering their expenses and what they spend every year. So we are trying to whittle that fund balance down, but it's not going down as fast as I would like it to. But it is moving that direction.
It won't move as fast as you're seeing on the bottom of that. Okay. On page 196. So it's your belief that
Representative Andrew Collins
Unverified
35:46
without this appropriation of general revenue, we can continue the Minority Health Commission doing all the same things it does now. And hopefully more. yes sir all right thank you
Chair (Senator Justin Boyd)
Unverified
35:57
questions do i have a motion to approve this record exact oh you have a question yes you're senator ervin you're recognized for your statement thank you
Senator Missy Irvin
Unverified
36:07
and i'll make a motion for executive rec after this but i think it's a
really good discussion to have and i appreciate the discussion about and what you just did with that because those are the things that create efficiencies and eliminates and alleviates the pressure off state general revenue that's really really important for us to utilize funds it's not doing our citizens any good stacking up a bunch of money in these fund balances it's just not and so we've got to move that out get it off the shelf utilize it for the benefit of our citizens
and be smarter about how we're paying for our positions and really taking a keen look at that so i think it's a really good discussion point and i just wanted to highlight it because it it's an it's one that i think we need to be doing consistently throughout state government so i just wanted to make that statement and i have a motion for executive right thank you senator ervin for
Chair (Senator Justin Boyd)
Unverified
37:06
your comments and your motion do i have a second i've got a second all those in favor say aye any opposed executive recommendation
motion passes we are now moving on to five right to number five miss wick you're recognized thank you mr. chair this is
Chair
Unverified
37:29
Health the budget request for the tobacco settlement Commission starts on page 252 this appropriation provides for the commission's operation expenses and is funded by the investment earnings of the
tobacco settlement program fund. The commission is responsible for monitoring and evaluating expenditures made from the four program accounts established under the Tobacco Settlement Proceeds Act or initiated Act 1 of 2000. Those are the Prevention and Cessation Program Account, the Targeted State Needs Program Account, the Arkansas Biosciences Institute Program Account, and the Medicaid Expansion Program Account to ensure that the funds received are used effectively and responsibly.
They are also authorized to contract with an independent third party to evaluate these expenditures and to prepare a biennial report. On page 253, you'll see the agency is requesting to continue appropriation in the amount of three hundred and sixty three point five thousand in both years of the biennium which is the executive recommendation and that concludes my presentation on the tobacco settlement Commission
Chair (Senator Justin Boyd)
Unverified
38:48
thank you for your presentation representative wooden you are
Representative Jim Wooten
Unverified
38:55
recognized for a question yes mr. Gilmore you have
a fund balance of roughly
20 million expenditure budgeting of 23 million can that can that money be used elsewhere or is it designated for that particular line item it it the way the settlement was set
Matt Gilmore
Unverified
39:19
up and the initiated act that went before the people and it it needs to be
used towards health issues targeted
health issues and and appropriated by y'all but it is my understanding it should be used for health issues generally well I mean I meant in
Representative Jim Wooten
Unverified
39:37
the health department it could be used for other purposes yeah if this body appropriated that
Matt Gilmore
Unverified
39:41
yes sir but it's it is it's kind of locked where it is It's appropriated by us in that column. Yes, sir. That's a good way of
Representative Jim Wooten
Unverified
39:49
saying it, yes, sir. So if we
wanted to, we could use that money elsewhere. That would be
Chair (Senator Justin Boyd)
Unverified
40:01
All right. Thank you. Thank you, Mr. Chairman. Okay. Seeing no other questions, do I have a motion to approve this executive recommendation? I have a motion. Do I have a second? I have a motion. I have a second. All in favor say aye. Any opposed? Motion carries. We are now moving on to, so you're excused. We are now on number six, which is Parks, Heritage, and Tourism. We do appreciate you being here today and your information. So, Mr. Parrish, you're invited to the table.
And then Secretary Lewis and team, you're invited to the table as well. If everyone will introduce himself or herself for the record, Then, Mr. Parrish, you may begin once introductions have taken place. Good morning. Shea Lewis, Secretary of
Shea Lewis
Unverified
40:53
the Arkansas Department of Parks, Heritage, and Tourism. Jamie Fisher,
Senator Justin Boyd
Unverified
41:09
Mr. Parrish, if you'll recognize yourself, you may
Chair
Unverified
41:12
begin. Thank you, Mr. Chair. Billy Parrish with the Bureau of
William Parrish
Unverified
41:18
Legislative Research. we will start on page 254 this is the shared services section for the department of parks heritage and tourism the department is comprised of agencies and programs that make up three appropriation bills the first one is the capital zoning commission next is the division of heritage and then the last one is division of parks and tourism the cabinets were provided a shared
services section to eliminate duplication of services and provide efficiencies so in this page you'll see their employment summary and publications and on the next page is the analysis of the budget requests again this section provides for the shared services the department across all divisions of programs it's supported by a paying account on page 256 is their appropriation summary if you look in the third column for fiscal year 27 at the bottom the authorized appropriation is 10.9 million for the biennium and 28 the request is 12.1 million that's an
11% increase and in 29 again 12.1 another 11% increase there however there are no change levels other than salary adjustments carrying forward into the new biennium and discontinuing vacant positions the executive recommendation provides for this agency request mr. chair that is the shared services section thank you for
Chair (Senator Justin Boyd)
Unverified
42:34
your presentation uh what questions do we have if we have no questions do i have a motion to approve this executive recommendation
i have a motion i have a second uh all those in favor say aye any opposed motion carries we are now on seven capital zoning district uh mr paris you may begin thank you mr
Chair
Unverified
43:00
chair on page 257 this the capital zoning district commission and the commission regulates zoning development and design within the
William Parrish
Unverified
43:07
capital zoning district pursuant to a master plan formulated and maintained by the commission this page shows the employment summary and publications and the next page is the department
appropriation summary that's on page 258. the division has two appropriation requests the total authorized appropriation in fiscal year 27 again that's that third column at the bottom is 259 000 that's uh 259 000 spending authority there are no change levels the commission requests the same appropriation for the biennium the executive recommendation provides for this agency request the commission is funded from general revenue and cash funds in the form of civil funds mr chair that is the capital zoning district commission thank you mr parrish for this
Chair (Senator Justin Boyd)
Unverified
43:51
presentation i see no questions do i have a motion to pass this executive recommendation i have a motion i have a second all those in favor say aye any opposed most motion carries we are now moving on to number eight mr parish you may begin thank you
Chair
Unverified
44:09
mr chair we're at the division of heritage now this is on page 263 the division of heritage was created in 1975 to preserve and promote arkansas's natural and cultural heritage it consists of nine sections
William Parrish
Unverified
44:21
that's historic preservation program natural heritage commission state archives delta cultural center historic arkansas museum mosaic templars cultural center the old statehouse museum arts council and natural and cultural resources council this page shows an employment summary and publications the next page shows the division's appropriation summary so now we're on page 264. the division has 16 appropriation requests the total authorized appropriation in 27 is 59.9 million. The division requests $60.2 million for the biennium. That's a less than 1% increase.
The executive recommendation provides for the agency requests. There are no change levels from fiscal year 27 in this budget request. There are sections where there are requests carrying forward salary match adjustments into the new biennium or vacant unbudget positions to be discontinued. If you look at funding sources at the bottom chart, the division is funded from general revenue, federal grants special revenue and that's from nine percent of the one eight cent conservation sales tax they also get special revenue from gas royalties and cash funds that's from museums gift
shops and cultural center proceeds as well as natural area timber thins the division also received 20 million from the restricted reserve fund that is used to offset the income
Chair
Unverified
45:39
tax credits allowed under the arkansas major historic rehabilitation income tax credit act mr chair that is the end
Senator John Payton
Unverified
45:47
of the division of heritage thank you thank you for your presentation we have a number of questions uh senator payton you're recognized
Representative R. Scott Richardson
Unverified
45:56
for a question thank you mr chair you're not senator payton that's all right i'll fill in uh just uh some
clarification on uh the delta cultural cash and treasury right so that's at 19 it's going up to 120 is there a big project that's coming there something that increases that just curious so we allow for that appropriation um historically we try
Jami Fisher
Unverified
46:17
to we we have that authority but they historically typically only spend and bring in revenue between 20 and 25 but if they have a larger event or larger donations
it allows for that flexibility for them to have the operating expenditures at the museum okay and their special revenue for
Representative R. Scott Richardson
Unverified
46:37
cash and the same thing on uh natural
heritage federal program that actual was 131 and then i see over the next you're going up
Jami Fisher
Unverified
46:47
to 2 million correct they have appropriation there for land acquisition in the previous fiscal year we had no land
Chair (Senator Justin Boyd)
Unverified
46:56
acquisitions okay thank you just for clarity that was representative
richardson asking questions uh in case anyone online or somewhere else was wondering uh representative Wooten you're
Representative Jim Wooten
Unverified
47:07
recognized for a question. Thank you
Mr. Chairman. Clarification whoever wants to
answer it. Why do we have a budget expenditure of 60 million and an actual expenditure of 15.8 million and then the budget remains the same at 60 million.2. Why is that? Which page are you on Page 154, I'm
sorry, page 264. Okay, thank you for the clarification. Sure, you'll
Jami Fisher
Unverified
47:39
notice there a large portion of the appropriation is the $40 million
and the historic tax credits, and those are redeemed as the projects are finished, and we actually had our first transfer this fiscal year in 27, so that program, while authorized previously,
Representative Jim Wooten
Unverified
47:57
we're just now starting to see payments go out. Okay, a follow-up, Mr. Chairman, to the same question. The fund balance under a budget expenditure shows $47.6 million, but yet we have $90.82 million in excess funds.
Can you explain that, please? on page
264 at the bottom shows a budget expenditures of
forty seven point six million and excess funding of ninety point eight ninety point eight million or nine ninety point nine million
Jami Fisher
Unverified
48:46
the 26 for the actual I think that's because of the fund balance
that we do have available for the um historic tax credit 70 million yes we were actually given an additional 20
Representative Jim Wooten
Unverified
49:00
and your expenses are 15 million correct okay all right um under and i guess
this is the place to ask this question my report shows 975 positions all together is that correct and of those 76 positions are over two years old can do you look at those each and every year
and review them what what is the 76 positions and what and what's the average age of
Shea Lewis
Unverified
49:31
those so of that 76 positions uh 40 plus are uh 796 positions uh that we are either reviewing for But I review every single position when it comes vacant. We take a look closely at the need at the time for that position,
and I review every single position that comes vacant. Okay,
Chair (Senator Justin Boyd)
Unverified
49:57
thank you. Thank you, Mr. Chairman. Thank you, Mr. Secretary. Thank you. Representative Meeks, you're recognized for your
Representative Stephen Meeks
Unverified
50:05
question. Thank you, and I'm hiding right here by the column. My question is kind of, I guess, a follow-up to what Representative Wooten was asking on the fund balance. It shows $90 million this year. Then it drops to, like you said, $47 million planned expenditure, it looks like, in 28, and then $23 million down in 29.
So it looks like we are spending that down to almost zero. Curious, what are we spending the money on? and is that part of a plan so that looks like by the time we get to fiscal year 30 on that trajectory it's going
to be close to zero i think that those projections make the
Jami Fisher
Unverified
50:46
assumption that all appropriations will be expended and as you can see from 26 we don't historically expend all appropriations i do think the historic tax credits are significantly skewing that um as i as i stated we did receive an additional 20 million in cash so that's included
in the fund reserve there shown so the reserve for the
historic tax credits is actually 60 million okay
Representative Stephen Meeks
Unverified
51:08
so so while it just the way the accounting works it creates the appearance that it's drawing down reality is generally it's not going to and and the the money in that balance is it just generally used for operations or what do we generally typically use that that fund for outside of the historic tax
Jami Fisher
Unverified
51:27
credits yes sir um the general revenue in our amendment 75 conservation sales tax it is absolutely operating expenditures okay perfect all right thank you
Chair (Senator Justin Boyd)
Unverified
51:36
representative collins you're recognized for a question thank
Representative Andrew Collins
Unverified
51:40
you all the way over here to your right um so if you could go to page 279 with me um this is the well it looks like it was is being transferred out but this was where as i understand it some of the real estate transfer tax goes into this fund and then it goes to grants uh and so it looks like it's um for the most part cash and so what it looks like is that it's been moved to a different appropriation um which is fine
this main street program but my question is what what becomes of the fund balance the 7.8 million dollars if that's not even going to be in the same fund where we're going to make the grants anymore is that just going to sit there in perpetuity because that's kind of like what it looks like
here this funds a little unusual so the appropriation is actually transferred into it from the ncrc funding so there's actually a transfer that comes from one of our other
business areas into this to support the main street grants that you mentioned so you'll see the expenditures here the appropriation is not requested here it's requested in another place and transferred into it we'll see it in a subsequent appropriation
request here in a few minutes well understand that but i mean you are getting around four and a half million dollars in real estate transfer tax a year right and you're making contributions well two million it looks like this past
Jami Fisher
Unverified
53:14
year is this right uh yeah 3.2 total with operating
Representative Andrew Collins
Unverified
53:18
expenditures correct uh-huh so you still
do have this fund balance in there um and is that uh i mean you're not even making grants that equal the amount of um you know the amount of cash you're getting from the real estate transfer tax so are we just going to see this fund balance increase um is that what we're thinking um
Speaker 164
53:40
so we Unfortunately, what's not shown on the schedule is our commitments for outlays and
Jami Fisher
Unverified
53:45
expenditures that are committed to Main Street programs that are just not expended in this year.
Representative Andrew Collins
Unverified
53:52
Well, but I'm looking at the other one, which I guess is on page 311, and that appears to be where, you know, you have your expectation of $6 million in grants. Is that right? But, see, I guess I'm still confused, though, because if this is where this is, then you have a fund balance of $9.4 million in this one, and you have $7.8 million in the other. So am I supposed to add those two together?
I mean, what is the total fund balance? It is the combination of the two funds.
Jami Fisher
Unverified
54:35
So it's $16 million. It's really $17 million. Yes, the fund balance that's shown
on page 311 in Fund Center 481 is a combination for the total NCRC program for that business area. So,
Representative Andrew Collins
Unverified
54:49
I mean, okay, and I guess, like, these are grants, and is the demand such, like, is this something where we just have the money because the law has granted this percentage of real estate taxes to us?
It's burning a hole in our pocket. We've got to spend it somewhere. Or is the demand such that we're really meeting a need? I guess, I mean, this is more of a substantive question about this program. I
don't know anything about the program. But, I mean, is it just money that we have to spend,
Suzanne Grobmyer
Unverified
55:20
basically, so we don't have the fund balance continue to accrue? So the Main
Street program is a collection of Main Streets across the state. There are two categories of Main Street programs. There's the Main Street, I'll call it the main Main Street program, and then the affiliate for smaller towns.
This program goes to help them with their businesses, helping build streetscapes and overlay districts. The program itself is largely funded through real estate transfer tax, much like many of our historic preservation efforts in the department. we get a certain portion of those funds that go from real estate transfer tax to fund those programs it does vary year to year because of the real estate market and so those things are not
necessarily cut and dry from a from a fiscal perspective but we see it as a need and feel like communities across the state do benefit from that program well i'm sure it's a good program it just seems like there's a
Representative Andrew Collins
Unverified
56:24
lot of slack in it. And to be honest with you, with the amount that we're taking from real estate transfer taxes that people do have to pay. That's just a comment. Thank you. Representative Leibyman,
Senator John Payton
Unverified
56:43
The Main Street program, I think that's a very good program because I think it renews our downtown areas and it gives cities, small cities especially, funds that they don't have to to save their downtowns really so my question is do y'all know i know it's based on real estate fees but has that increased over the years uh are more cities being able to take the opportunity to use those funds has it stayed city or mr chair if it's okay we'd
Speaker 203
57:15
like to invite uh director marty ryle to the table from the heritage
Chair (Senator Justin Boyd)
Unverified
57:19
division director i'll please introduce yourself for the record and you may answer the
Marty Ryall
Unverified
57:32
question it's all heritage uh representative ladyman we have i believe it's 40 cities right now to participate i'm going to
be off by one maybe 39 but it's it's we roughly have 20 in the top tier and 20 in the affiliate tier and uh we have an application period every year where other cities can come in and apply it was just a couple of weeks ago that we had approximately 12 cities i
believe that came in and made a presentation and it's potentially going through the application process they have until march to complete that process and these will be new cities will be added to it and right now we only have the capacity probably to take four or five of these cities into the program right now so there's a vast need out there and we're trying to accommodate as many as we can well i
Senator John Payton
Unverified
58:21
agree with you um there's a need because 40 cities out of 500 that's not very many right and a lot of these smaller towns have no other no other income that they can use
for this so i think we should look at more instead of less here
Marty Ryall
Unverified
58:37
well there's some there's some qualifications for each city and that they have to have someone dedicated to implement the program at the city level. So there's certain criteria they have to meet so we can make sure that they have the infrastructure in place to take care of that. But you're right, there's plenty of cities out there that need it. And we try to encourage cities to take this step because it has helped
revitalize the downtowns of so many towns around the state. Mr.
Senator John Payton
Unverified
59:07
Chairman, just one more quick question are the people that apply for this is it
Marty Ryall
Unverified
59:13
mostly the smaller cities it varies um i mean just this uh last application period i know we had blivel uh came to uh make a presentation and then of course the city of keogh uh made a presentation so it varies from from you know moderate size cities i wouldn't i mean the larger cities are either in or run their own program but
it is the moderate or upper level down to some of the smallest
Chair (Senator Justin Boyd)
Unverified
59:43
ones. Thank you. Thank you for that clarification. Senator Flowers,
Senator Stephanie Flowers
Unverified
59:47
you are recognized for a question. Thank you, Mr. Chair. I guess Mr. Ryle might be able to
answer this. Representative Collins asked a lot of the questions that I had concerning the real estate transfer tax. I'd like to know, and I think I heard somebody say,
what the average amount is collected if there is an average amount collected per year and do we have a list of where these taxes are coming from yes so the real estate
Shea Lewis
Unverified
1:00:24
transfer tax is collected and levied when anybody in the state of arkansas buys or sells a
Jami Fisher
Unverified
1:00:36
Yeah, so it has increased over the last several fiscal years. Last year's collections were $40.8
Speaker 222
1:00:46
million to the department. $40.8 million, so just almost $41 million. And that's in our next section
Senator Stephanie Flowers
Unverified
1:00:53
that we'll cover in our appropriation request. And 10%
of that amount goes now into this Department of Heritage and Tourism for Main Street? Is that what
I'm understanding? Correct. So, at least $4 million goes in there?
Yes, ma'am. Do we have a list of cities that are participating or communities that are participating in that? And
I'd like to see a list of where those
Marty Ryall
Unverified
1:01:23
taxes are coming from. Yes, ma'am. Like I said, we have approximately 40 cities that
Senator Stephanie Flowers
Unverified
1:01:28
are participating, and I can get you that list. Well, participating in your Main Street program, but I'm talking about where are the taxes coming from? What counties are putting in more transfer tax money?
Jami Fisher
Unverified
1:01:40
I would have to defer to DFA, I think, on that question, because I'm not sure we have the details on. We just get the cash transferred to us from the tax.
Senator Stephanie Flowers
Unverified
1:01:50
I'm not sure that we're provided the details. Well, Mr. Chair, I'd like to request that DF&A provide a list of those amounts coming from the various counties. Mr. Parrish, do you
Chair
Unverified
1:02:01
Mr. Chair. Senator, I don't have the specifics about the counties, but I do have more history on that tax. If you go to the
William Parrish
Unverified
1:02:09
tax handbook on page 197, it gives you a history of the laws that went into this tax and how they changed.
and on page 198 you'll see the revenues generated and you can see it's fairly volatile and then the distribution of the tax how 80 percent of it goes to the natural and cultural resources grant and trust fund which again is the section we'll get to uh later in the presentation and 10 percent goes to the tourism fund account then another 10 percent goes to
Senator Stephanie Flowers
Unverified
1:02:38
the main street and historic preservation trust fund well in that manual that you've just cited does it list the amounts coming from the different counties for real estate
transfer fees no ma'am it doesn't provide that specificity well that's
Senator Justin Boyd
Unverified
1:02:56
what I'm asking for mr. chair Center flowers we are
going to work with DFA to see if that if there's any reason we can't provide that and if we can and unless we can't we're going to get that information
Senator Stephanie Flowers
Unverified
1:03:07
to you i'd appreciate and i think in the past it has been provided i think it came from dfna but i'd like to see a current list
Senator Justin Boyd
Unverified
1:03:16
yes ma'am we're going to get that to you
Chair (Senator Justin Boyd)
Unverified
1:03:19
unless there's some legal reason we can't but he's kind of signaling that
Senator Stephanie Flowers
Unverified
1:03:23
i don't see how that would have some kind of prohibition to yes
Representative Stephen Meeks
Unverified
1:03:29
disclosure yeah no we're we're good
Chair (Senator Justin Boyd)
Unverified
1:03:33
thank you thank you representative Springer you
Chair (Representative Joy Springer)
Unverified
1:03:38
are recognized for a question good morning thank you mr. chair my question relates to page 279 regarding historic preservation I am not originally from Pulaski County I'm from the south down in Ouachita County and
I'm very familiar with the historic parks down in that area and mr. Lewis and we've been having discussions with respect to historic preservations and I noticed here where on page 279 I'm going back to that page where you've previously allocated nine positions for physical year 26 and then you've decreased those positions down to seven for years 27 budgeted and authorized 7 then I notice that you've increased extra help positions up to hate to 8
you are you following me you see who I am so hopefully you will utilize those extra help positions to maintain certain parts within the areas is that can I count on that to be taking place so these
Representative Joy Springer
Unverified
1:04:48
positions are directly related to the arkansas historic preservation program that is headquartered here
Chair (Representative Joy Springer)
Unverified
1:04:53
in little rock not specific to field a lot of those positions do work out in the across
Speaker 239
1:05:00
the state in various parts but not
specific to a region yeah the
Marty Ryall
Unverified
1:05:06
historic preservation program is your national historic register which is of course getting a
building or a structure on the national historic register is the first step of getting it qualified to be able to accept grants and and restoration projects and then uh you know there's there's a cemetery restoration program within there there's uh but it it's not just the main street program and and it's uh i know you had some
questions about poison springs parks it's not related to the state parks it's more of your of your historic preservation of historical structures around the state oh is is partisan springs
Chair (Representative Joy Springer)
Unverified
1:05:45
not historical i mean some of the civil war uh no it is and it's within the state
Marty Ryall
Unverified
1:05:51
park but that would fall under the state parks oh okay
Chair (Representative Joy Springer)
Unverified
1:05:54
that's right you told me uh what was it white oak white oak state park okay so so what's the budget for white white oak is any of those funds
Chair (Senator Justin Boyd)
Unverified
1:06:05
been utilized for represent springer we'll get to that in
Chair (Representative Joy Springer)
Unverified
1:06:10
the next another section here okay all right so i mean i can talk to uh direct secretary lewis offline again so we
can get this taken care of i will say that these positions support the efforts of arkansas state parks through historic preservation it's just a kind of a different level of the way they operate
Chair (Senator Justin Boyd)
Unverified
1:06:31
versus directly well hopefully we can get this worked
Representative Jim Wooten
Unverified
1:06:34
out thank you representative wooten you are recognized for a question. Thank you, Mr. Chairman. Mr. Ryle, I assume that the $16.4 million in excess
funds, that's included in the $90 million on the first page. Which page are we on? We're on page one. Well, the amount I'm asking about is on page 267, but I think it refers back to the $90 million surplus, the $16 million is in that.
Is that correct? Yes, that's correct. That would be correct. Okay. Is the conservation tax producing more than we thought it would when we passed that tax?
And that's given for the excess money that's in there. That's correct. So that money is earmarked for conservation purposes, and the list under Mr. Ryle that you gave to us, that provides the income for that, along with the real estate and other things. Correct. Yes, we do. But the conservation tax is producing more money than we anticipated. Yes, yes. I would say, you
Speaker 138
1:07:51
know, since the inception of the conservation amendment, it has far exceeded, you know, our expectations and
Shea Lewis
Unverified
1:07:58
has been put to good use across our department, the state park system, Arkansas Game and Fish, keep Arkansas beautiful.
Chair (Senator Justin Boyd)
Unverified
1:08:08
Okay. Thank you, Mr. Chairman. Thank you. Thank
Senator Missy Irvin
Unverified
1:08:14
you. Senator Irvin, you're recognized for a question. Thank you. Asking on
behalf of Senator Payton, who's watching online, just wanting to know on the Main Street, Historic Preservation Main Street program, are there restrictions on what that money is used for
Marty Ryall
Unverified
1:08:33
or if that's just capital improvement? There are restrictions, but there
are funds that are beyond capital improvements, if I'm not mistaken.
I'd have to verify that. But, I mean, we provide, there are grants. Every participating city gets a grant. Like right now, on the top tier, each participating city gets $30,000 each year as a grant for them to use for their historic preservation programs. And it's not limited to capital improvements. It has to be used for the purposes of downtown restoration and improvements.
But I believe there's some areas in there that aren't capital improvements. But I had to get the details and get it
Senator Missy Irvin
Unverified
1:09:19
to you. Okay, if you don't mind getting those details and following up with Senator Payton on that, that
would be great. So it can be used for programs or programming or just let me know. Yeah, I just had to find out. I don't recall specifically programming that's allowed, but let me just,
Speaker 249
1:09:32
I don't want to say something correct, so I will get it to Senator Payton. Thank you. Appreciate it. Thank you for getting that to Senator Payton.
Senator Stephanie Flowers
Unverified
1:09:46
Senator Flowers, you are recognized for a
question. Thank you, Mr. Chair. Just for my clarification, so these different funding sources, like the conservation tax, the 10% that goes now from the real estate transfer fee to Main Street or the division, are these stacked for grants for preserving historic structures?
Could the real estate transfer 10% be used for preservation of historic structures? And is there more sources of funding for that purpose? I think you'll see in the next appropriation request that we'll get
Jami Fisher
Unverified
1:10:38
to in the next section, we do have more that is designated for historic structures within state agencies and state-owned facilities. So we do have a part of the real estate transfer tax, a larger portion that comes to us is designated for that purpose,
not reflected in Department of Heritage, but in a subsequent appropriation request we'll see
Senator Stephanie Flowers
Unverified
1:10:59
in a moment. Well, is there any way, since the division actually handles all of those applications and
grants, is that right? You're shaking your head yes, I guess. So it's at the
Shea Lewis
Unverified
1:11:14
department level or the division level, yes. well you're the head
of the department there is a there is also uh ncrc also has a council
that is responsible for the distribution of those funds but that's dictated through the act that created the law uh that outlines the role and purpose of
Senator Stephanie Flowers
Unverified
1:11:38
those funds specifically Well, can we get
a list or a total amount that is used for the purpose of historic preservation? Yes, yes, we can provide that.
Okay, and maybe Mr. Riles can say how much in those type grants have been allocated for this past year. Sure, we're
Marty Ryall
Unverified
1:12:10
talking about two different things here. You have the Arkansas
Natural and Cultural Resource Commission, which is a commission that's made up of, I think there's eight or nine members, that any state-owned facility is eligible for those grants.
But then within the Division of Heritage, there's further grants that are for historic preservation, historic restoration grants. I mean, there's several, but absolutely, we can get you
Senator Stephanie Flowers
Unverified
1:12:40
that list. I'd be happy to. So, well, from what the conversation has been, it sounded as if the real estate transfer tax, that 10% used to go to that natural resources with the board you just mentioned, but now it goes to the division? Is that right?
Jami Fisher
Unverified
1:13:04
A portion goes to state parks, a portion goes to Department of Arkansas Heritage, and then a portion stays in that the council manages for their awards. The larger portion
Senator Stephanie Flowers
Unverified
1:13:16
stays with the council. Well, is there a breakdown of that? Is that what our bureau person referred to? There is a separate
Senator Stephanie Flowers
Unverified
1:13:27
that tax handbook where we can see all these things? ncrc is
Chair (Senator Justin Boyd)
Unverified
1:13:33
a little bit later in the agenda so we we will get to that presentation i'm under i
Senator Stephanie Flowers
Unverified
1:13:40
understand that but i'm it just sounds like what we've done is changed where some funding goes and
it goes into this department of parks heritage and tourism but we're not getting the total amount i mean where all these funding sources
coming from is what i want to know mr. chair if i may yes you're
William Parrish
Unverified
1:14:10
it's on page 198 of the tax handbook and it'll show the distribution of the tax
and the previous pages show you all the different laws that changed how that tax was set up so it'll give you the history of where it went and where it's being moved to and it also shows you the revenues generated um since 2015. Since 2015? Yes ma'am. And that's
Speaker 252
1:14:33
on page 197 or 198? Page 198. Yes ma'am. Thank you. Thank you
Chair (Senator Justin Boyd)
Unverified
1:14:37
Mr. Chair. Thank you Senator Flyer. Senator King you're recognized. Thank you Mr. Chair and I'm
Senator Stephanie Flowers
Unverified
1:14:43
sorry I just walked in uh but and this may not be in necessarily the
Senator Bryan King
Unverified
1:14:48
budget but on the Buffalo River designation issue that caused the big crisis is there anything you are here and are any driver at all to change or work on the buffalo river designation change no nothing currently on
Shea Lewis
Unverified
1:15:01
our plates are associated with it is this natural state committee are they still
Senator Bryan King
Unverified
1:15:05
meeting and deciding things or do you know or you're a part of what are they doing sure i'm a member
Representative Joy Springer
Unverified
1:15:12
of the the natural state initiative uh we have a working group uh we're in the process
Shea Lewis
Unverified
1:15:18
of trying to schedule a meeting here between now and the end of the year. Have you been meeting this
past year? I'm trying to remember when our last meeting was. It has been a little while. Okay. If you could
Representative Joy Springer
Unverified
1:15:32
just provide me with – It was last September, I believe, was the last. Yeah.
Senator Bryan King
Unverified
1:15:35
If you could just provide me summaries of what's discussed there or your recollections of it. And you said you're meeting when? We're trying – we're in the
Shea Lewis
Unverified
1:15:42
process now of scheduling a meeting between now and the end of the calendar year. Is that a public meeting?
Senator Stephanie Flowers
Unverified
1:15:51
Are you about finished, Senator King? Yeah, I can see
Senator Justin Boyd
Unverified
1:16:13
I see. All right, seeing no further questions, Do I have a motion to pass this? Okay, I've got a motion.
Chair (Senator Justin Boyd)
Unverified
1:16:21
Do I have a second? I've got a motion and a second to pass this executive recommendation. All in favor say aye. Aye. Any opposed? Motion carries. We are moving on to
Senator Justin Boyd
Unverified
1:16:33
number nine. Mr. Parrish, you are recognized. Thank you, Mr. Chair. We're
William Parrish
Unverified
1:16:38
on page 298. This is for the Arkansas Arts Council. The council seeks to advance the arts in Arkansas. The council expands cultural and educational opportunities by investing in museums, theaters, symphonies, and other providers of artistic programming.
On page 298, this page shows their publication of an annual report. And the next page is their department appropriation summary. So now we're on page 299. The division has two appropriation requests. The total authorized appropriation for fiscal year 27, again, this is that third column at the bottom, is 1.19 million the division request for the next biennium is only five thousand dollars less that's a less than one percent change this is associated with discontinuing a vacant unbudgeted position the executive recommendation provides for the agency requests if you look at funding sources
the division is funded from federal grants from the national endowment of the arts and cash funds from registration fees sales and workshop sessions mr chair that is the arts council presentation Thank you
Chair (Senator Justin Boyd)
Unverified
1:17:41
for your presentation. Representative Meeks, you're recognized for a question. Thank you, Mr. Chairman.
Representative Stephen Meeks
Unverified
1:17:46
So a question I had is you said there was a $5,000 decline in the budget, and that was due to the elimination of one position. I'm just
kind of curious, one position, only $5,000?
Jami Fisher
Unverified
1:18:01
I believe it's offset with the pay plan implementations. I'd have to look at the
Representative Stephen Meeks
Unverified
1:18:07
details, but I think that's the difference. Okay, so we're spending more on the employee we're keeping, And so the difference between – and I'm assuming that employee were dropping probably was part-time. It would be a full-time position. Okay. Okay. I just – even with that adjustment, $5,000 still seems kind of small, but I'm assuming that everything's on the up and up.
Shea Lewis
Unverified
1:18:38
So as the new pay plan was implemented, salaries went up in other positions. That was an entry-level administrative analyst position. And so that's
Representative Joy Springer
Unverified
1:18:44
the difference that shows there. The other positions went up in pay, leaving that $5,000 difference. Okay. All right. Okay, thank you. Seeing no other questions, do I
Senator Justin Boyd
Unverified
1:18:54
have a motion to approve this executive recommendation? I've got a motion. Do I have a second?
Chair (Senator Justin Boyd)
Unverified
1:19:02
I have a motion. I have a second. All in favor say aye. Any opposed?
motion motion carries we are now moving on to 10. mr. parish you
Chair
Unverified
1:19:14
are recognized thank you mr. chair we are now on the natural and cultural resources council
William Parrish
Unverified
1:19:23
this is page 304 the council administers a grants program for the acquisition management and stewardship of state-owned properties acquired or used for council approved purposes grants for projects to protect and maintain state-owned natural areas, historic sites, and outdoor recreation. This page shows they have no publications, and their next page is the Department of Appropriations Summary.
That's on page 305. The division has three appropriation requests. There are no change levels. The total authorized appropriation in Fiscal Year 27 is $54 million. The council requests $54 million for the biennium. The executive recommendation provides for this agency request. The division is funded from proceeds from the state's real estate transfer tax. Again, that's page 197 of the tax handbook. Eighty percent goes to the NCRC state-owned lands program. Ten percent is for Main Street and state historic preservation programs.
The first appropriation is for zero dollars. This is to allow appropriation to be transferred in from the second section. The second section transfers appropriation to agencies throughout the state when grants are made by the council for the acquisition, management, and stewardship of state-owned property. The third section does the same for the Main Street and state historic preservation programs. You will not see actual expenses for the last few sections. Special language specifies that when grants are made to state agencies from these sections, the
corresponding amount of appropriation and funding may be transferred to the receiving state agency. Therefore, actual expenditures are reflected by the recipient agency. Mr. Chair, that is the ncrc budget presentation thank you
Chair (Senator Justin Boyd)
Unverified
1:20:59
uh mr parrish for your presentation senator ervin you are recognized for
Senator Missy Irvin
Unverified
1:21:05
a question thank you and it's primarily on page 310 i think it's another question about the main street program just to add to the request for senator payton to look at any funding that is going to main street programs wanted to see what exactly the use of those are
for if it's for capital outlay festivals programming whatever uh we just i just want to and you can copy me on that too um and so just wanted to see any program and if there are these funding non-profit organizations that are like main street hebrew springs or main they are okay so we just i want to just look at that and see what that money's being used for and uh thank you
Chair (Senator Justin Boyd)
Unverified
1:21:55
So we'll be glad to provide that. Thank you. Senator Mark Johnson,
Senator Mark Johnson
Unverified
1:22:01
you're recognized for a question. Thank you, Mr. Chairman. Mr. Secretary, thank you. I had a question. It's a little bit of a follow-up on Senator Irvin's question. And I don't know if it's under the Main Street program or if there's an affiliation with the – I'm having a senior moment. Bear with me, the museum on Broadway, Mosaic Templars.
Sorry, just a little quick clip there. I came down 9th Street yesterday, and there were containers in the street, and they had some signage on them and all this. And is this the kind of stuff that's being paid
Suzanne Grobmyer
Unverified
1:22:45
for out of that fund? And exactly what is that? There was a project that was done. It kicked off, I believe it was early spring, related to Studio Main. And they did a pop-up along 9th Street to bring up the historic nature of the street.
They did a street diet. It was not a program that we ran, but we had programming associated with Juneteenth out in 9th
Speaker 283
1:23:12
Street. But that's not our department. Well, I'm glad that they're doing
Senator Mark Johnson
Unverified
1:23:18
some things like that and awareness along 9th Street. But when you put something in the street, whether it's a bike path on 7th or containers on 9th, I start paying more attention to that. And I just want to know, is that permanent or is that a temporary thing or what?
Suzanne Grobmyer
Unverified
1:23:38
To my understanding, it should be wrapping up soon, but it is through a nonprofit, Studio Maine. And so that's, they're working with the city. dollars involved in the actual buying a container or anything like that.
Senator Mark Johnson
Unverified
1:23:51
Okay, great. All right. Thank you very much. Thank you, Mr. Chairman. Thank you. Representative
Chair (Senator Justin Boyd)
Unverified
1:23:57
Gonzalez, the other Justin in the legislature, you're recognized, except you went away. There you go. I didn't
Chair (Senator Justin Boyd)
Unverified
1:24:19
you are not recognized then. You're
Representative Jim Wooten
Unverified
1:24:22
good. Representative Wooten, you are recognized for a question. Thank you, Mr. Chairman. My question is on page 309 and page 311. And here again, it's excess appropriation funding on 309. It shows $70.7 million, and that's in the NCR, state-owned lands and historic sites.
And then on the next page, 311, it shows a balance of $18,000,000. Are we not using that money, or is that designated funds? Or how come we have such an excess balance in those two accounts? Yes, sir. So the awards that
Jami Fisher
Unverified
1:25:06
we've been talking about, the NCRC grant awards that go to general revenue, receiving agencies and state-owned properties, they're two-year awards. So it does have to do with the timing of the awards and the drawdowns that those recipients make.
And so while the fund balance looks large, the full amounts of the appropriation are
essentially warded out every year. So the
Representative Jim Wooten
Unverified
1:25:29
money is committed. Absolutely. But yet it's still in the fund. Yes, sir. Are we making, do you have that money invested? Yes, sir. And the interest earned
Jami Fisher
Unverified
1:25:37
on that trust fund is directly back into that fund for future awards. Do you receive the investment amount of money? Yes, sir. Do
Representative Jim Wooten
Unverified
1:25:44
you use that in that account? Yes, sir. Okay, thank you. Thank you, Mr. Chairman. Thank you.
Chair (Senator Justin Boyd)
Unverified
1:25:53
Seeing no more questions, do I have a motion to approve this executive recommendation? I have a motion. Do I have a second? I've got a motion. I have a second. All in favor, say aye. Aye. Any opposed? Motion carries. We are now on to
Chair
Unverified
1:26:08
number 11. Mr. Parrish, you may proceed. Thank you, Mr. Chair. We're on page 312. This is the Parks, Heritage,
William Parrish
Unverified
1:26:13
and Tourism, Parks and Tourism Divisions. The Parks and Trials and Division's mission is to enhance quality of life through outdoor experiences, connections to Arkansas heritage, and resource management. On page 312, it shows the employment summary and no publications.
The next page shows their department appropriation summary. So now we're on page 313. The Division has 15 appropriation requests. The total authorized budget in fiscal year 27 is $238 million in spending authority. The Division requests $202 million in fiscal year 28. That's a $35 million decrease, or about a 15% reduction, and $197 million for Fiscal 29. That's a $40 million decrease, or about a 17% reduction in budget. Four sections have a change level for something other than normal salary adjustments being
carried over into the new biennium. The executive recommendation provides four of the agency requests. The division is funded from general revenue, federal grants, special revenue from 45% of the one-eighth cent conservation sales tax and cash funds from sales and rentals at state parks
Chair
Unverified
1:27:14
so now we'll go through the change levels and the first one begins on page 321 on page 321 is
William Parrish
Unverified
1:27:26
their conservation tax section it provides for the special revenue administration
of the division and it's supported by a special revenue fund the next page 322 is the appropriation summary again that third column fiscal year 27 authorize appropriation the total amount is 83.5 million was authorized in 27. the request in 28 is 85.6 million that's a two percent increase and in 29 it's 80.6 million that's a four percent decrease from 27 and the executive recommendation provides for the agency requests those change levels begin with uh salaries and
match and those are just rate changes that are due to adjustments for the employees as authorized by law. Extra help is 2.1 million in 27. In 28, it's 1.9 million. That's a $200,000 decrease for about 9% reduction. This is to align with existing spend trends for seasonal staffing requirements. Operating expenses is 16.3 million in 27. The request in 28 and 29 is 18.3 million. That's a 12% increase. This is to accommodate increased prices for utilities, contractual services,
and supplies. Professional fees is authorized at $613,000. In 28 and 29, the request is $200,000. That's a 67% decrease. This is to align with the anticipated needs based on current spin patterns. And most of the movement happens here in the construction line item. What's authorized in 27 is $45.8 million. In 28, the request is $40.8 million. That's a $5 million difference. It's an 11% decrease, and in '29, it's 35.8 million.
That is a $10 million decrease, or 22% reduction. Look at, and again, that is to allow for the current spend trends to continue while maintaining support for current projects. If you look at funding sources, the fund balance going into '26 was 46.5 million. The fund collected special revenue in the amount of 48.99 million. Again, that's 45% of the 1/8 cent conservation sales tax. A transfer of $1.1 million was sent to Shared Services. The division spent $48.98 million in 2016.
That leaves a balance of $46.1 million going into 2017. The next change level is the next page, page 323. This is Keep Arkansas Beautiful. It provides for the Special Revenue Administration of this commission. It's supported by a special revenue fund. On the next page, 324, is their summary. Total authorized in 2017 is a little over a million. the request is for zero this is a request to discontinue the appropriation the executive recommendation provides for that request in the 2026 fiscal session special language transferred
all funding appropriation positions and responsibilities of the keep arkansas beautiful program to the department of transportation if you look at funding sources the balance going into 26 was 1.4 million the fund collected special revenue in the amount of a little over a million Again, that's 1% of the $0.18 conservation sales tax. The commission spent $735,026. That leaves a balance of $1.79 million going into $0.27. And again, that's over at the Department of Transportation now. The
Chair
Unverified
1:30:39
next change level is on page 333.
On page 333, this is the Outdoor Recreation Great Strides program. It's a grant program for local governments
William Parrish
Unverified
1:30:55
to encourage physical activity and provide health benefits at local parks. It's supported by a cash fund account. On page 334 is their appropriation summary. In 27, there was nothing authorized. The request for the biennial was for $500,000. The executive recommendation provides for that request. If you look at fund sources, the balance going into 26 was $587,000. The fund collected and the interagency fund transfer,
That line shows 540,000, that's from the Department of Health. The division spent 468,026, that leaves a balance of 684,000 going into 25. Members, appropriation for this program was established through PEER and ALC, so the division is now requesting to establish the spending authority in their Appropriation Act. Next,
Chair
Unverified
1:31:43
change levels on page 343. On page 343 is a Delta Heritage Trail construction program.
William Parrish
Unverified
1:31:56
This section spins a grant from the Walton Family Foundation and a federal-raised grant on the development of a Delta Heritage Trail State Park supported by a cash fund account. The next page, 344, is their appropriation summary. In 27, $37.8 million was authorized. The request for the biennium is zero. This is a request to discontinue the appropriation as the division anticipates construction completion before the start of the biennium.
The executive recommendation provides for that request. Mr. Chair, that is the end of the Parks and Tourism
Chair (Senator Justin Boyd)
Unverified
1:32:33
presentation. Mr. Parrish, thank you very much for your presentation. Representative Meeks, you are recognized for a
Representative Stephen Meeks
Unverified
1:32:40
question. Thank you, Mr. Chairman. So my question actually is on one of the appropriations you actually didn't touch, But on 326, we've got the tourism promotion section. It looks like as a state we spent $33 million to promote Arkansas, all for that. I'm just wondering where are we spending the money at,
and do we have any way of tracking the success on that investment?
Speaker 215
1:33:07
Mr. Chair, if it's okay, I'd like to invite Director Thomas to the stage or
Chair (Senator Justin Boyd)
Unverified
1:33:13
table here. Director Thomas, please come recognize yourself and proceed
Representative Stephen Meeks
Unverified
1:33:19
with answering Representative Meek's question. Good morning.
Speaker 294
1:33:27
Delaney Thomas with Parks, Heritage, and Tourism.
Thank you for the question. Yes, we
Delaney Thomas
Unverified
1:33:32
absolutely evaluate on an ongoing basis the performance of our marketing. So we, throughout this program, there is about $22 million that's spent on advertising. We evaluate the return on investment with that, and our last study showed that we returned about $140 million, or $140, excuse me, for every $1 spent. But our two primary ways that we look at the strength of the tourism industry is through our economic impact study that we produce annually.
In 2025, we set records for visitation to Arkansas with over 54 million travelers coming and contributing $17 billion in economic impact to the state. And what revenue,
Representative Stephen Meeks
Unverified
1:34:13
what avenues are you using to spend that? Are we digital advertising, commercial? Who are we targeting? Yeah, absolutely.
Delaney Thomas
Unverified
1:34:22
We have an ongoing basis of marketing, so we're always on. We adjust our markets based on seasonality to ensure that we're meeting the best traveler at the right time.
Our primary spend is on digital placement through streaming, online, everything that you would expect there. But we do also place some print media and TV media as well and radio where it makes sense.
Representative Stephen Meeks
Unverified
1:34:45
And where are we targeting? You know, Texas, Oklahoma, nationwide? Yes, we
Delaney Thomas
Unverified
1:34:49
separate our marketing into three primary categories. So in-state marketing is important for us because about 55% of travel in the state is from an Arkansan. Our primary spend is going to be in our short-haul markets, which are all of our touch states.
Texas is our number one travel market, so we have a deep level of spending there. And then we do have some longer-haul markets that are going to be reflected based on direct flights, as well as just travel patterns and where we're seeing some longer-haul markets come to the state. Excellent. All right. Thank you. Thank you,
Chair (Senator Justin Boyd)
Unverified
1:35:21
Mr. Chairman. Yeah. Thank you. Thank you, Representative Meeks. Director Thomas, I think you just answered this question, but I want to ask it directly. So could you help me understand on a very high level how we know again if someone is coming from out of state and spending out of state dollars in the state
versus you said there were 55% of our travel was in state. Could you, again,
Delaney Thomas
Unverified
1:35:43
high level, not down in the weeds? Yeah. We partner with a leader in economic impact studies, tourism economics, to produce that plan so we have ongoing research that's conducted throughout the year that helps us look at rural visitation to the state and then self-reported spending that is occurring from that traveler so that's going to be our very high level but then we do get more in the weeds on the digital
placements where we're able to look at where we're placing media and where there's a return on travel based on that media market does that answer
Chair (Senator Justin Boyd)
Unverified
1:36:17
your question so if tourism tax were increased it's not just because of inflation
we've we're looking at other factors besides inflation not that we're ruling inflation out but we are specifically okay that answers my question uh thank you very much for for that uh representative wooten you're recognized for your question thank you mr chairman
Representative Jim Wooten
Unverified
1:36:38
I'll be quick. On page 320, is that just a paying account to pay the employees? Yes, sir. Our general revenue for state parks and tourism is just ours. On page 340 and 342, concerning Warren Memorial Stadium, we're spending a million, roughly a million six each year. I assume that that's for maintenance. are we breaking even out there now that the university has decided to move their games to
federal no we're not breaking even how do you have an estimate of
Chair (Senator Justin Boyd)
Unverified
1:37:30
table so we deputy director jeff king king for arkansas state park you're welcome to come to the table Introduce yourself, and then answer the question.
Shea Lewis
Unverified
1:37:40
I believe our operating deficit is about $1 million a year.
Representative Jim Wooten
Unverified
1:37:45
About $500? About $1 million a year. And that's with Catholic High and Parkview using
the stadium? That's right. And any other event that may take place out there? That's right. So roughly it's costing us $500,000 a year? No, about $1 million a year. About a million dollars. Our income is roughly $500. Correct. That's correct. Okay. Deputy Director
Representative Stephen Meeks
Unverified
1:38:11
King, do you want to be recognized and try to clarify that?
Senator Ronald Caldwell
Unverified
1:38:17
Jeff King, Deputy Director for the Division of State Parks. I can gather that number. I don't have the exact figure from last year. I will say that, though, that the U of A game was a windfall for the stadium when we hosted in the last year and hosted the University of Arkansas versus Arkansas State. So without that game, our revenues are shorter, but also so are our expenses. So let me gather those numbers and get those to your representative.
Representative Jim Wooten
Unverified
1:38:44
Okay, well, that would be fine. That would be perfect. One more question.
It's kind of on the subject yet. it's not but
there's been a discussion about your about all agencies paying into the shared services of the state how much would that do you have an estimate what that would cost your agency to pay for services being provided and
Jami Fisher
Unverified
1:39:10
what are those services for shared administrative services for the shared human resources functions it's 270 per position to 326 per position and 270,000
Representative Jim Wooten
Unverified
1:39:19
for our department for your your department 260,000 that you're paying to the state and you haven't paid that before is that correct correct in other words this is an addition for services they say that they're providing to you can you tell a difference in
Shea Lewis
Unverified
1:39:38
services we can it's it has created an efficiency for us in the HR program specifically in shared services we have been able to not fill some vacant positions because of that.
And then it is also creating an efficiency and kind of lightened our responsibility level of knowledge where we were trying to maintain staff that were keeping the knowledge base that OPM was keeping at the same time. And so it kind
Chair (Representative Joy Springer)
Unverified
1:40:05
of makes OPM the subject matter experts on personnel. Okay, next thing,
Representative Jim Wooten
Unverified
1:40:10
I want to commend you and Mr. Chairman, I want to take the time to commend
you and your staff. You've been the most adequately prepared,
and you've been able to answer all the questions that we've put forth. Thank you
very much. Thank you, you and Mr. Riles and the secretary and your staff. Okay, so
Senator Justin Boyd
Unverified
1:40:32
hang on right there. Representative Ladyman has a question, and then as soon as
Chair (Senator Justin Boyd)
Unverified
1:40:37
Representative Ladyman has his question answered, Director Thomas, we've had a request for you to provide a little bit more detail. So if you'll come back, Representative Lightingman, you're recognized.
Senator John Payton
Unverified
1:40:48
My question is for Director Thomas, actually, or maybe, or anyone can answer this, maybe.
So you mentioned the Arkansas-ASU game, and I don't know, a million dollars is what I understand that that netted, but the people up at the U of A told me they lost $5 million. So ASU people made $900,000. So I'm confused about, you know, what is the financial benefit to the state when we do that? Because U of A loses money because it's a smaller stadium.
ASU gains money because it's a larger stadium for them. And it is an income for you all. So what's the net income that you
Chair (Representative Joy Springer)
Unverified
1:41:40
received on that game? So at War
Shea Lewis
Unverified
1:41:43
Memorial Stadium, it generated the game last year was $548,000 for the stadium itself specifically. When you think about the impact of a Razorback game across the region, though,
the impact that it has economically, back several years ago, it was estimated at $10 million economic return on investment to the
Representative Joy Springer
Unverified
1:42:06
central Arkansas or Little Rock area. But are we causing Northwest
Senator John Payton
Unverified
1:42:10
to lose money? I mean, that's the question. And I think Chairman mentioned that. But we really need detail on, is this good for the state or not? Because some of us have talked about wanting to do that game again,
but it needs to be a net income to the state. Is there any way you
Shea Lewis
Unverified
1:42:35
know if we know that specifically. I'll say on behalf of the stadium and the department, We would love to host the Razorbacks at War Memorial Stadium again. People at ASU probably would too. We would be glad to. The governor issued a letter to the universities, Arkansas State University as well as the University of
Chair (Representative Joy Springer)
Unverified
1:42:53
Arkansas, to work together to come up with a solution for that.
Senator John Payton
Unverified
1:42:57
Well, there would need to be changes at the stadium if we had that game again,
Shea Lewis
Unverified
1:43:02
as you well know. And we continue to make investments and repairs for that and to be prepared for a game there specifically. Thank you.
Chair (Senator Justin Boyd)
Unverified
1:43:12
Thanks. Thank you, Mr. Jim. Thank you. And we're going to go a little bit out of order, so everybody in the queue, I'm not skipping over you. Director Thomas, please come up here. But Senator Hill was in the queue
and then came out of the queue somehow. But Senator Hill, you're going to be recognized for your question.
Senator Ricky Hill
Unverified
1:43:28
Thank you, Director Thomas. If you would go into a little more detail on the research partnership that you do for the out-of-state tourism dollars how you how you get those i'd like to hear the who what when where why and how we determine that to make sure it's accurate that we're getting our money's worth on that i specifically would like to know how we
Delaney Thomas
Unverified
1:43:51
track tourism dollars versus in-state dollars absolutely we have through our digital marketing partnerships we partner with a company called adara they've also sojourn has acquired that company and it is
one of our primary tools that helps us look at the ads that we're placing in market. And when a consumer is exposed to that ad, if they then take some sort of action in terms of searching for a hotel booking, flight booking, and then all the way through the point of booking. We evaluate that on an ongoing basis with our ad agency partners to eliminate any markets that are not performing well. And then the annual study that I mentioned through tourism economics, which is a company that's under Oxford Economics, really well-renowned for their work in data and an economic impact.
They help us look at that on an annual basis in terms of travelers and who's spending money in the state. How accurate do you feel like that information is? I feel it's accurate. With all data, there's, in my opinion, there's a gut check as well that you associate with that, but there's no one silver bullet, so to speak, in terms of the data. We have to look across all of our platforms to look at who's coming to our website and then we compile all of that information to make our decisions in an informed way do you
Senator Ricky Hill
Unverified
1:45:07
feel like that's your most accurate information you're
Delaney Thomas
Unverified
1:45:09
receiving that is accurate the most accurate would be the two percent tax collections though that is the real number that shows overnight stays visitation to attractions in the state that is our main metric okay thank
Chair (Senator Justin Boyd)
Unverified
1:45:25
you very much thank you thank you director thomas for that explanation representative magruder you are recognized
Representative Jessie McGruder
Unverified
1:45:32
thank you thank you mr chair uh thank you uh for the to the commit you all for being here today i'm a freshman legislator so i'm really
not even qualified to ask a question because i have no understanding of what's going on but I'm on page 318 in regards to the Museum of Natural Resources seems if you have a four million dollar fund balance and I'm trying to get a better understanding of what's this for and also exactly what this museum is doing
Representative Joy Springer
Unverified
1:46:12
so while Jamie's looking for the related to the the tax collections there the Arkansas Museum of
Shea Lewis
Unverified
1:46:23
Natural Resources in smack over Arkansas and was created for the interpretation and promotion of the Arkansas natural resources primarily oil fields found in Union County specifically so it tells the story of the Arkansas oil fields and the great boom that happened here and interprets that as long as well as the timber industry today and brine collection and even into lithium now too
Representative Jessie McGruder
Unverified
1:46:49
okay so why do we have such a large balance remaining what are you on page 318 i believe this
Representative Jessie McGruder
Unverified
1:47:05
on 318 funding sources or there's the sources Rep. McGruder, will
Chair (Senator Justin Boyd)
Unverified
1:47:28
you get back in the queue and I'm going to move to Senator Caldwell
so we can keep things flowing is that
Senator Ronald Caldwell
Unverified
1:47:41
okay yes sir thank you senator caldwell you are recognized for a question thank you mr. chair uh secretary shay on the uh delta heritage trail uh project uh y'all are at watson arkansas going east to the levy of the arkansas river going blacktop road and build a park down there is this coming out of the grant or is the state of arkansas paying for that project.
So the the majority of the project that's funded the completion of
the Delta heritage trail has come from a combination of private grants and federal grants and we're using the our balance of those grants to complete to complete both the trail and and the roadway project we are supplementing some of some of the federal funds with state dollars and so I can get you an exempt breakout of that project if you'd like uh for the paving of the roadway we're partnering with rdott for that effort that's fine i'm
not but again the park itself the uh bath houses and so is that being paid for with the grant money or by state revenue that's that all it's all grant
funds right now at this point
Chair (Senator Justin Boyd)
Unverified
1:48:49
it thank you thank you mr chair thank you uh representative garner
Representative Denise Garner
Unverified
1:48:54
you are recognized for a question thank you mr chair I've got a
couple of questions. One is the outdoor recreation grants on page 328. We've gone from 3-6 to almost $10 million, 171%. I just would love to have an overview of what those projects are and where they are in the state.
Jami Fisher
Unverified
1:49:14
Just kind of an overview. Yes, ma'am. So the $3 million there that's reflected is the actual expenditures. We have quite a bit more that is committed that's not reflected on that schedule. is land water conservation funds that come to us they're federal dollars that are managed by our outdoor recreation team and awarded we do have a listing of those we could provide we do have we've we do have quite a bit still outstanding and committed
to to be paid out of that appropriation okay yeah I'd love to
Representative Denise Garner
Unverified
1:49:42
see just a list and kind of where they are in the state I'm excited about that and
then I just have a question because I have no idea what it is and that is on page 313 and just the department appropriation on the wine council tourism facility i just have a special interest in that facility and where it is and what it
Shea Lewis
Unverified
1:50:09
is director thomas if you want to join us back up here again for that the the wine council was moved to the department of parks heritage and tourism
about a year ago since that time director thomas
has been working uh and attending commit their commission meetings and you can get a bit update on
Delaney Thomas
Unverified
1:50:26
where we're standing yes as secretary lewis mentioned it was very recently moved over to our department so we've been working with that group um it's has commissioners from across the state obviously that are in the wine industry there is right now no wine building there's no wine tourism building that exists the funds are still being collected towards that so our primary conversations have been around how we can better partner to promote wine tourism and agri tourism
at large but that fund needs to grow a bit more before we could have infrastructure developed
Representative Denise Garner
Unverified
1:50:58
great thank you very much appreciate y'all
Chair (Representative Joy Springer)
Unverified
1:51:01
they have 4.1 million dollars in in their account currently representative painter
Chair (Senator Justin Boyd)
Unverified
1:51:08
you're recognized for a question thank you mr.
Representative Stetson Painter
Unverified
1:51:12
chair you said the 2% collections that we know from the out-of-state. What kind of increase have we seen the last couple of years in that 2% from out-of-state?
Delaney Thomas
Unverified
1:51:23
I wouldn't be able to give right now the out-of-state. We could work with DFA to see if that number is available. We get that based on county-level collection and we're able to see by category of expenditure for hotel stays, but we don't currently receive the number for out-of-state versus in-state. The 2% in its whole is at an all-time high, ended fiscal year 26, just under $27 million total in collections. Okay,
Speaker 340
1:51:49
great. Thank you. Appreciate it. And we're up 5.79% fiscal year to date.
Representative Stephen Meeks
Unverified
1:51:55
Okay. Thank you. Representative McGruder, did you want to continue,
Chair (Senator Justin Boyd)
Unverified
1:52:00
or are you good? Okay, great. Thank you, Senator Irvin, for that. Seeing no further questions, do I have a motion to approve? I have a motion. Do I have a second? I have a motion. I have a second. All in favor say aye. Any opposed? Motion carries. Seeing no other business for the day, we are adjourned. We will be back here tomorrow. Senator Irvin will be chairing, and Representative Ladyman will be the vice chair.
Agenda
B. Reports and Communications
Appropriation
C. Presentation of Budget Requests
D. Other Business
E. Adjournment
Documents
| Title | Type | Pages | Source |
|---|---|---|---|
| Agenda — ALC - JBC BUDGET HEARINGS, Oct 7, 2026 | Agenda | 3 | Official source ↗ |
| C.1 Health Boards and Commissions | Exhibit | 1 | Official source ↗ |
Speakers
Chair (Senator Justin Boyd)
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Speaker 2
Chair (Senator Justin Boyd)
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Speaker 5
Senator Missy Irvin
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Speaker 9
Chair
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Chair (Senator Justin Boyd)
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Representative Andrew Collins
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Speaker 22
Representative Andrew Collins
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Don Adams
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Representative Andrew Collins
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Chair (Senator Justin Boyd)
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Senator Missy Irvin
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Matt Gilmore
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Senator Missy Irvin
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Matt Gilmore
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Senator Missy Irvin
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Speaker 45
Senator Justin Boyd
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Chair (Senator Justin Boyd)
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Chair
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Chair (Senator Justin Boyd)
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Representative Andrew Collins
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Don Adams
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Representative Jim Wooten
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Representative Andrew Collins
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Don Adams
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Representative Jim Wooten
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Representative Andrew Collins
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Chair (Senator Justin Boyd)
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Representative Jim Wooten
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Speaker 69
Representative Jim Wooten
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Chair (Senator Justin Boyd)
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Speaker 70
Senator Justin Boyd
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Chair (Senator Justin Boyd)
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Representative Ashley Hudson
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Speaker 69
Representative Jim Wooten
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Don Adams
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Representative Ashley Hudson
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Representative Jim Wooten
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Representative Ashley Hudson
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Representative Jim Wooten
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Chair (Senator Justin Boyd)
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Senator Fredrick J. Love
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Don Adams
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Representative Jim Wooten
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Senator Fredrick J. Love
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Speaker 92
Representative Jim Wooten
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Don Adams
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Chair (Senator Fredrick J. Love)
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Chair (Senator Justin Boyd)
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Senator Missy Irvin
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Don Adams
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Representative Jim Wooten
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Senator Missy Irvin
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Don Adams
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Senator Missy Irvin
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Speaker 57
Senator Missy Irvin
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Chair (Senator Justin Boyd)
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Senator Clarke Tucker
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Renee Mallory
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Chair (Senator Justin Boyd)
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Chair
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Chair (Senator Justin Boyd)
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Chair
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Chair (Senator Justin Boyd)
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Senator Fredrick J. Love
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Matt Gilmore
Unverified
Senator Fredrick J. Love
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Matt Gilmore
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Senator Fredrick J. Love
Unverified
Matt Gilmore
Unverified
Senator Fredrick J. Love
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Chair (Senator Fredrick J. Love)
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Speaker 125
Chair (Senator Justin Boyd)
Unverified
Representative Andrew Collins
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Matt Gilmore
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Representative Andrew Collins
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Speaker 128
Chair (Senator Justin Boyd)
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Senator Missy Irvin
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Chair (Senator Justin Boyd)
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Speaker 5
Chair
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Chair (Senator Justin Boyd)
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Representative Jim Wooten
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Matt Gilmore
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Representative Jim Wooten
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Matt Gilmore
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Representative Jim Wooten
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Matt Gilmore
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Chair (Senator Justin Boyd)
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Shea Lewis
Unverified
Speaker 141
Speaker 142
Senator Justin Boyd
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Chair
Unverified
William Parrish
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Chair (Senator Justin Boyd)
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Chair
Unverified
William Parrish
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Chair (Senator Justin Boyd)
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Chair
Unverified
William Parrish
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Chair
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Senator John Payton
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Representative R. Scott Richardson
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Jami Fisher
Unverified
Representative R. Scott Richardson
Unverified
Jami Fisher
Unverified
Chair (Senator Justin Boyd)
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Representative Jim Wooten
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Jami Fisher
Unverified
Representative Jim Wooten
Unverified
Speaker 133
Jami Fisher
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Representative Jim Wooten
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Shea Lewis
Unverified
Chair (Senator Justin Boyd)
Unverified
Representative Stephen Meeks
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Jami Fisher
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Representative Stephen Meeks
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Jami Fisher
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Chair (Senator Justin Boyd)
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Representative Andrew Collins
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Jami Fisher
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Representative Andrew Collins
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Speaker 164
Jami Fisher
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Representative Andrew Collins
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Jami Fisher
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Representative Andrew Collins
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Suzanne Grobmyer
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Representative Andrew Collins
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Speaker 200
Senator John Payton
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Speaker 203
Chair (Senator Justin Boyd)
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Marty Ryall
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Senator John Payton
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Marty Ryall
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Senator John Payton
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Marty Ryall
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Chair (Senator Justin Boyd)
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Senator Stephanie Flowers
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Shea Lewis
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Speaker 138
Jami Fisher
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Speaker 222
Senator Stephanie Flowers
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Marty Ryall
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Senator Stephanie Flowers
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Jami Fisher
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Senator Stephanie Flowers
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Speaker 113
Chair
Unverified
William Parrish
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Senator Stephanie Flowers
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Senator Justin Boyd
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Senator Stephanie Flowers
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Senator Justin Boyd
Unverified
Chair (Senator Justin Boyd)
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Senator Stephanie Flowers
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Representative Stephen Meeks
Unverified
Chair (Senator Justin Boyd)
Unverified
Chair (Representative Joy Springer)
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Representative Joy Springer
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Chair (Representative Joy Springer)
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Speaker 239
Marty Ryall
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Chair (Representative Joy Springer)
Unverified
Marty Ryall
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Chair (Representative Joy Springer)
Unverified
Chair (Senator Justin Boyd)
Unverified
Chair (Representative Joy Springer)
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Chair (Senator Justin Boyd)
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Representative Jim Wooten
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Speaker 138
Shea Lewis
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Chair (Senator Justin Boyd)
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Senator Missy Irvin
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Marty Ryall
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Senator Missy Irvin
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Speaker 249
Senator Stephanie Flowers
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Jami Fisher
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Senator Stephanie Flowers
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Shea Lewis
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Senator Stephanie Flowers
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Marty Ryall
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Senator Stephanie Flowers
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Jami Fisher
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Senator Stephanie Flowers
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Speaker 222
Senator Stephanie Flowers
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Chair (Senator Justin Boyd)
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Senator Stephanie Flowers
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Chair
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William Parrish
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Speaker 252
Chair (Senator Justin Boyd)
Unverified
Senator Stephanie Flowers
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Senator Bryan King
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Shea Lewis
Unverified
Senator Bryan King
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Representative Joy Springer
Unverified
Shea Lewis
Unverified
Representative Joy Springer
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Senator Bryan King
Unverified
Shea Lewis
Unverified
Senator Stephanie Flowers
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Speaker 51
Senator Justin Boyd
Unverified
Chair (Senator Justin Boyd)
Unverified
Senator Justin Boyd
Unverified
William Parrish
Unverified
Chair (Senator Justin Boyd)
Unverified
Representative Stephen Meeks
Unverified
Jami Fisher
Unverified
Representative Stephen Meeks
Unverified
Shea Lewis
Unverified
Representative Joy Springer
Unverified
Senator Justin Boyd
Unverified
Chair (Senator Justin Boyd)
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Chair
Unverified
William Parrish
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Chair (Senator Justin Boyd)
Unverified
Senator Missy Irvin
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Chair (Senator Justin Boyd)
Unverified
Senator Mark Johnson
Unverified
Suzanne Grobmyer
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Speaker 283
Senator Mark Johnson
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Suzanne Grobmyer
Unverified
Senator Mark Johnson
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Chair (Senator Justin Boyd)
Unverified
Speaker 290
Chair (Senator Justin Boyd)
Unverified
Representative Jim Wooten
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Jami Fisher
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Representative Jim Wooten
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Jami Fisher
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Representative Jim Wooten
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Chair (Senator Justin Boyd)
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Chair
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William Parrish
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Chair
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William Parrish
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Chair
Unverified
William Parrish
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Chair
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William Parrish
Unverified
Chair (Senator Justin Boyd)
Unverified
Representative Stephen Meeks
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Speaker 215
Chair (Senator Justin Boyd)
Unverified
Representative Stephen Meeks
Unverified
Speaker 294
Delaney Thomas
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Representative Stephen Meeks
Unverified
Delaney Thomas
Unverified
Representative Stephen Meeks
Unverified
Delaney Thomas
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Chair (Senator Justin Boyd)
Unverified
Delaney Thomas
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Chair (Senator Justin Boyd)
Unverified
Representative Jim Wooten
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Speaker 300
Speaker 301
Chair (Senator Justin Boyd)
Unverified
Shea Lewis
Unverified
Representative Jim Wooten
Unverified
Representative Stephen Meeks
Unverified
Senator Ronald Caldwell
Unverified
Representative Jim Wooten
Unverified
Jami Fisher
Unverified
Representative Jim Wooten
Unverified
Shea Lewis
Unverified
Chair (Representative Joy Springer)
Unverified
Representative Jim Wooten
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Senator Justin Boyd
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Chair (Senator Justin Boyd)
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Senator John Payton
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Chair (Representative Joy Springer)
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Shea Lewis
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Representative Joy Springer
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Senator John Payton
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Speaker 313
Shea Lewis
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Chair (Representative Joy Springer)
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Senator John Payton
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Shea Lewis
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Chair (Senator Justin Boyd)
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Senator Ricky Hill
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Delaney Thomas
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Senator Ricky Hill
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Delaney Thomas
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Chair (Senator Justin Boyd)
Unverified
Representative Jessie McGruder
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Representative Joy Springer
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Shea Lewis
Unverified
Representative Jessie McGruder
Unverified
Speaker 322
Representative Jessie McGruder
Unverified
Chair (Senator Justin Boyd)
Unverified
Senator Ronald Caldwell
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Speaker 330
Chair (Senator Justin Boyd)
Unverified
Representative Denise Garner
Unverified
Jami Fisher
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Representative Denise Garner
Unverified
Shea Lewis
Unverified
Delaney Thomas
Unverified
Representative Denise Garner
Unverified
Chair (Representative Joy Springer)
Unverified
Chair (Senator Justin Boyd)
Unverified
Representative Stetson Painter
Unverified
Delaney Thomas
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Speaker 340
Representative Stephen Meeks
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Chair (Senator Justin Boyd)
Unverified