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

Governor Taylor do these members will grab you see we're going to start of. We're gonna take three items of outside of the agenda they get they got missed it be the governor's mansion and to be governor mention operations in grand hall mansion grounds so. Ms rook if you would if you wanna start with those three and then we'll move right into the governor's office. Thank you Mr chair. We're gonna start on page ninety one that's the governor's mansion. The commission is charged with the responsibility of the condition of the mansion and to solicit and accept gifts grants or donations for the mansion. On page ninety two is the department appropriation summary they do have to appropriations. The agency is requesting about two million each year of the biennium there is no executive recommendation. On page ninety three. Is there operations. It's funded from state central services. The agency is requesting about one point five million each year of the biennium. Salary and match adjustments made in the current biennium are requested to continue into the next biennium. On page ninety four is the grand hall mansion grounds appropriation. It is funded their cash funds from proceeds generated through the use of the grand hall. They requesting five hundred thousand each year of the biennium this is no change from the current fiscal year this concludes my presentation Mr chair. Do you have a question are represented Cavenaugh thank you Mr chair just a quick question what is the governor's mansion allowance is only like sixty thousand but what is that for. The minor. Of we can get someone from day of net aiming. Cassie Jake conversation so maybe he's figured that out. A Davy back Jake. Jake plea DFA office a budget it's good to be back that's an allowance that comes out of state central services fund the they use just for the maintaining the operations of the mansion itself. What do you mean by maintaining the operation that's what this whole thing is for is for maintaining the operations of the mansion yes ma'am and and the governor of course uses that as an office building he has a lot of meetings there there's periodically there are times when events are held there so there's expenses the date a current date are kind of outside the regular routine a utilities and what not that that revenue covers. So there's a B. for special events to help pay for special events that they have their. To an extent I hesitate to call a special events because of course this is the governor's office he has an office out there he has staff there he holds meetings there but yes it is to some extent that's that's what they're for. Paying for if they have to have dinners or things that would come out of their pocket normally that they would only have to pay because they're the governor correct in that position I hear any of that so that so if the governor for example has the hosts a dignitary or has somebody may perhaps the leadership of the General Assembly come at a meeting that help defray the cost of hosting that amount okay thank you. Six fifty five. Thank you Mr. Is that something I guess I'd I'd want to want to ask you really want to one do is make statement but I will put in the form of question is that I mean when you when you see that there is actually a question of of division of of authority division of of parents like from a legislative standpoint it's our job to appropriate but if we get into the point where we start meddling and and all of the different provisions of the executive branch and and how they do things and one thing is that you know last time we passed of past A bill that I think probably precipitates makes where you're required to come to us with these type of appropriations which I appreciate because there's only one branch that is that has allowed under the Arkansas constitution barring. Been submerged I guess that that is the appropriation branch. And so from the standpoint that I think you know I think for us all of us we realize that we were talking about appropriate something that is almost specifically in the and the executive it is our job to to basically write the check but they're not micromanage how that it that branch does that does that make sense. Yes Sir that does and we certainly present the budget here for all this agency like all the others out of a sense of transparency and and looking for the appropriating authority that is endowed with the legislative branch okay thank. I see no further questions do I have a motion. I have a motion second all those in favor say aye. All opposed as have it with that we'll move on to the office of governor and miss Ruth you're recognized. Thank you Mr chair. This is on page eighty seven. The governor is vested with the executive power of the state. Our department appropriations summary is on page eighty eight. They have to appropriations. The agency request is six point four million each year of the biennium there is no executive recommendation. They're appropriations start on page eighty nine this is their operations it's funded from state central services. Requesting about five point nine million each year of the biennium salary imagine just means made in the current biennium requested to continue into the next biennium. And on page ninety is the governor's emergency proclamation. Is funded from the miscellaneous revolving fund. They're requesting five hundred thousand for each year the same as authorized for the current fiscal year this concludes my presentation Mr chair. Mr can you give us the balance on page ninety. On that American governor's emergency parks Mason what that is today and what withdrawals we've had for me at this fiscal year and a last fiscal year. This fiscal year are they have not but last fiscal year I think it was like three hundred. Right at Jake you want to come to the. Jake plea DFA office a budget this is an old fund it's been on the books for a very long time in the past it was used for any number of different expenses but the express letter of the law limits how can be used to things like storm damage famine insurrection and various other items there's language which is adopted by the General Assembly a couple sessions back which requires a review of the executive committee made up of the leadership of the General Assembly before funds can be pulled out of that for any purpose other than insurrection storm damage eccentric center so the user that fund is really trailed off and it's really limited now to just storm damage and what. So how much was used in the last of fiscal year we've not used to in the current fiscal year to my knowledge and I believe this recurs corrected last year we may have used it the it really is helpful for us when you've got a storm damage out in the community the does not rise to the level of a emergency proclamation from the farmers the management but they're still damage on the ground so if if we have a store I I have my answer Jake there's two withdrawals one four hundred fifty thousand one for seventy in both FOR draw for storms correct thank you. Any further questions from committee. CNN we have a motion. I have a motion and a second all those in favor say aye. All opposed us have it thank you so with that we'll move on to the Attorney General and miss Ruth you're recognized again thank you Mr chair. This starts on page ninety five. The Attorney General is charged with the responsibility of acting as the attorney for all state officials departments institutions and agencies. The department appropriations summary is on page ninety seven. They have eight appropriations. Five of them have changed levels one is only for salary and match changes. The agency years requesting about forty eight point four million each year of the biennium there is no executive recommendation. And I'll go over those change levels the three appropriations them the first three I'm going to go over all have changed levels data receiving additional federal funds. The first is on page ninety nine is their Medicaid fraud federal. Is funded from federal fines the requesting about two point one million each year of the biennium. There is an increase of a hundred and thirty thousand and operating expenses to be able to use those additional federal fines. On page one hundred is Medicaid fraud state funded from state central services their requesting about seven hundred and sixty four thousand for each year of the biennium. Increase in operating expenses due to the receiving additional federal funds. Page one one is Medicaid fraud in direct cost. It is also federally funded. Requesting three hundred ninety five thousand each year of the biennium. Increase of sixty five thousand operating expenses to be able to use utilize those additional federal funds that they've received. On page one oh five this is the cooperative disability investigation program. It is federally funded they're requesting about three hundred ninety eight thousand each year of the biennium. Senate increase of nine thousand and operating expenses. An increase of five thousand two conference in travel expenses line item. They received additional federal finances are going to be able to utilize those by increasing that also in the conference in trouble one day is to cover the training that is required to Medicaid and this concludes my presentation Mr chair. Absent of had a Senator hammer do you have a question yes Sir Mr thank you do you like someone from the agency let me just ask staff first see if we get a short version yes Sir are there any are they required to return the unused federal funds back to the federal government or what happens to those if they don't use them. I'm gonna have to defer that to the agency if Mr. That's fine we'll get the agency to tell you I think I've seen Mr ****. We have quite a few questions. You guys would introduce yourself for committee and Senator hammer you're recognized. Mister chair court **** and chief of staff for the Attorney General. Deborah how. The route to fiscal officer the Attorney General. Thank you Mr chair so you heard the question to secure such you'll get these federal funds down I'm sure there's a spot what you can or can't use them for use or anything that's not used to get returned to the feds or worse a go it rolls back over senator April's we we keep it rolls over to the next to the next budget cycle. So once he gets to should never goes away so for the unused portion in the budget where is it found over there in the attorney general's office and how much was on used last year that was rolled over. Okay we can nine Chris this is on a federal year and we were operate on state years so it will roll over between the two state fiscal years a we do have to get approval to carry forward those funds and they will go into the next budget cycle just like any other moneys would and so they're they're approved each time they don't go into a certain category it's carry forward they get budgeted into the different commitment items as any other budget. So are the balances on here as far as what to carry forward balances are where would I find those. I can get that for you okay I'd like to get that if you don't mind please and Mister robot Hugo question was not about federal funds. Senator you good yes for now so I had a sidebar of. Representative Eubanks. Thank you Mr chair of Mr **** the next year the attorney general's office is going to be involved with redistricting does the just the cost of that just come under the administration appropriation yes Sir yes it we would just absorb the cost out of or out of or agency there or. I don't speak for the the other of constitutional officers but of course there are two other constitutional officers involved in that is will the governor and the secretary of state and the reason the state agencies involved as well so but we we've already started training it would. Paying for that is we go out of our budget and you have ample appropriation for that purpose yes Sir we believe we do thank you. Representative would recognize thank you Mr chairman of. I agree that will lead to. Madeline elected officials the. Budget to net constitutional officers but I'm I'm go quick two questions here sure in your general administration budget. Of your requesting two point two seven million more then you were budget is authorized in twenty one. And you only spent fifteen. One seven million that's that's a four million enquiries. Page ninety seven the first time. You use your actual expense was fifteen seven you budgeted seventeen for now you're asking for nineteen six eight. If it's salary match. Surrey one match I'm sorry it's hard done you may not be able to to hear me under a the mass but it's it's matching FOR salaries. Your your positions are not changing. No so we're not asking for any more money for positions but the if you're asking for two point four million more for positions. Your actual whose ten to your budget was ten a now you're asking for twelve million six hundred and fifty two for the next biennium. I don't understand how you could have a four million dollar increase in employee match. Can you answer that. I can give it a shot. The. We maxed out the employees coming to. I'm glad I've got here. The blade you're recognized thank you Sir I'm not familiar with this specific budget but a lot cross a lot of the agencies we we're seeing that that's a couple of different combinations one is you've got a performance funding increases that have compounded over the years but also with the employee benefits division of you all have heard from a lawyer members who have concerns about some of that part of the what went on when we adjusted those rates is we maximize the amount that the state is contributed on a per employee basis so some of that increase at least that you're seeing there as a result of those employee benefit changes to the rates. Is for the four hundred fifty dollar yes Sir it was four twenty four twenty and now it's moving up to four fifty. Per employee per month. We're funding on budget position where were funding we're funding vacant positions at four hundred fifty dollars these rights if they're budgeted for budget. Even though they're vacate the even though they've been taken back to two thousand and nine a yeah yes twelve thirty. This call is. Four million my my taxpayers folks in my county the work at heart there's a four million dollars more. In that budget or that budgets going cost four million dollars more. Yes Sir. This is sixty eight hundred one positions. Thank you August the first three hundred and six million dollars because we're playing games with the insurance we either need to live up to the fact that we're going to provide benefits to our employees or we're going to get out of the benefit business. Mister chairman of made this point time and time again to these hearings and I'm sorry that the my colleagues time with us the this is a serious problem and many. Jake many colleagues come to me and say Hey this is a problem we've tried to work it out for years I think the time is kinda. Particularly if we're gonna look at any kind of tax cut in the session. We need to look at three hundred and six million. In the last session you all tell me your Senate known three hundred and thirty three million in uncollected day at. In DFA that's over us almost to that's over half a billion dollars. Of taxpayers money this time of the one way or another. Either in vacant budgeted positions are over there that you all can't collect. Mister chairman I apologize but I just think it reckoning day is come and I think we need to deal with that Mr **** is not intended that the Attorney General is just so happens it K. came up today I didn't realize that the managing was going to run that amount of money. By Representative hundred dollars an employee per year. And we've got to thirty thousand employees Mister chairman arrest thank you thank you Representative. Senator hammer will recognize you for the last question thank you Mr I'm I'm looking at the I just need understanding what is for the cash funds settlement fees. In two thousand nineteen twenty shows zero but the budget. Is coming up as for twenty five million can you explain that to me please. I'm on page ninety seven of our region and these book. But I can tell you five there's an appropriation for twenty five million at the. Your past the with the a law last time that that sit cash the. Appropriations have to be the have to be a. Has to be in actual appropriation we can just spend cash funds without the appropriation so that's what that is that number was based on the most that we ever spent of the one year when we had to give a whole lot of money back to a bunch of the constituents that were cheated by A payday lender tap entity of and so we ask for that a male when we started out of out of fear that there might be some instance where we have to give a bunch of money back to constituents and we don't want to end up in a situation where we can't pay back people that were were cheated Now the question. The second part of your question. Is senator U. Raskin. Well there was nothing in there is that what you're can you repeat that park police sure enough I'll taking into the next one age is shown actual nothing out but you get twenty five million I guess I'm interpreting that right in appropriation a. A I just wonder in there's been nothing brought in that you had to pay out of trying to rationalize or understand like with all the litigation you got going on is that where the money's going to be dumped into to be re distributed out I'm told it's because it has gone into a service that we we have paid out money yes Sir but uh will have to check on that but eight and we honestly if it's a report being generated by the DFA I don't know that we do enter those we enter those in the asus when we pay we do. Three a we do transpose so with the three transparency I'm just not sure. Twenty twenty we've paid out five million. Four thirty six eight eight seven. So five million is is what's actually going through that appropriation okay but that's not reflected anything we've got handouts is that correct I might just miss I'm not I don't know what you have in your handouts of what we've gotten or is it is but I I will get you this if I want to meet me outside I'll give you the sheet here in a minute and. Well for me now site for the right reasons. No Sir you you would probably with me on. The last thing I saw all you've got like twenty five somewhere in here saw a budget for internet children's yes Sir and I I didn't see activity in that I'm just wondering if you could explain that because with all the issues going on with human trafficking in the files and all that kind of good stuff the best of what the can you just talk about that for a minute. If the CAC so his questions ones. The. We just we just seven spend anything on it we have the we are the I CAC reporting agency so we have as you know a unit that does crimes against children with them we don't call it child **** we call it child exploitation because it we feel that in order fee is legitimate in this is a legitimate but we we do spend money at from our operations and and we've got a lap going I think of some of you all have taken a look there to show it to you but it's a. We just haven't spent money on that particular appropriation it's not the money's not being spent it's just in that that instance we haven't paid any and all so the money is for that are they covered in your attorney general's administration over on your appropriations summary sheet day or a lot of different the yes Sir there but we also you settlement dollars for that so some of that five million that we were talking about some of that would have been been in there so it's its whatever we can spend of. You know following the the. Laws the John set up in with budget set up a it it just to so happens that we haven't used that particular appropriation okay alright thank you thank you Sir. So I misspoke per center Ballenger you have the last question and somehow your light went off you hit it again I will take a month. Go ahead thank you Mr this is I think of the another example and and you know I fought for the ability for the legislature to to make the preparations on these type of of cash funds because I don't believe that there should be any money spent that doesn't go through the legislative process however I think that this is another example where we need to be careful how far just like with the governor's mansion where we metal it so most of the state agencies that we go out and we we do NIT pick we said you know we probably need to cut here we need to but let's reduce your appropriation also they get their authority by virtue of the legislation we pass no they they're they're held accountable to the state by the elected representatives it it when you get into account different constitutional office they're held accountable by virtue of the the there was direct responsibility to the people as well now I don't know if they're any good way to handle the preparation the then make a public go through preparation possible process the the constitution of the state of Arkansas requires that too to be the case so the legislation passed it's good but we can turn it into a monster if we also want to be NIT picky of a not a constitutional office may do you agree a do you need to see it that way although you're probably a little more separate your in your positioning on that how do I say that to the legislature yeah I know that you don't even if yeah okay thank you Sir thank you for let me off the. I see no further questions we have a motion. I have a motion for agency wrecked and a second all those in favor say aye. All opposed us have it thank you guys will move on to the lieutenant governor's office. Miss Rhode you're recognized. Thank you Mr chair. Lieutenant governor starts on page one of six. Lieutenant governor serves as president of the Senate and if the governor is unable to feel fulfilled their duties serves as the governor. There is only one appropriation it's on page one of seven. This is their operations appropriations. The agency is requesting about three hundred and forty three thousand each year of the biennium. There is no executive recommendation. Match adjustments made in the current biennium requested to continue into the next biennium and this concludes my presentation Mr chair. Seeing no question is do we have a motion I have a motion and a second all those in favor say aye. Of those eyes have it with that we'll move on to the secretary of state. members I would say we have requesting sector state there some information that cannot be gathered for today's meeting we're going to go ahead and take the presentation on the budget but they are scheduled to come back on the last day of budget hearings so that be November seventeenth that week would be that Thursday. So with that miss rope you're recognized. Thank you Mr chair. Secretary of state's office starts on page one oh eight the primary responsibilities of the secretary of state or to maintain official records of the state of Arkansas as authorized in required by law they are the legal custodian of the state capitol in chief election officer. They're department appropriations summary is on page one ten. They have eleven appropriations only three have change levels they're requesting about thirty nine million each year of the biennium there is no executive recommendation. They're change levels are on page one eleven is their operations. Senate from state central services the requesting about twenty one point two million each year of the biennium. They're re allocating about two hundred forty six thousand from their operating expenses and moving it to building and grounds building and grounds maintenance lot line item in the special maintenance line item to be more in line with actual expenditures. They're also requesting an additional three hundred fifty thousand to be added to the election expenses one item this is for long term maintenance of election equipment. On page one thirteen is the capitol grounds monument preservation. Funded from trust fund. The requesting about seventy seven thousand each year of the biennium. They have requested a decrease of about seven thousand five hundred to match their current cash levels. On page one nineteen. Is the county voting system grant suspended from fees. There are questing about ten million for each year of the biennium this is a decrease of two million to be more in line with actual expenditures and this concludes my presentation Mr chair. Right do we have any questions on sector state. Once again members that date will be November nineteenth when they'll come back to committee with that additional information. See no questions will place this one on hold and move on to the commissioner of state lands this rule you're recognized thank you Mr chair. Appropriation starts on page one twenty two. The land commissioner is responsible for returning to private ownership lands which have been certified to the state of Arkansas for the non payment of real estate taxes. On page one twenty three is the department appropriation summary. Their father preparations. They're requesting about forty one million each year of the biennium. There is no executive recommendation. There have three appropriations that have changed levels. The first one is operations is funded from state central services. Salary imagine judgments made in the current biennium are requested to continue into the next minute. The second is island submerged lands suspended from cash funds and fund balance the agency is requesting an additional hundred and fifty thousand for the submerged lands appropriation. This is due to the river debris website up and running and they're starting to incur some cost. And the third one is the adopted document they are wanting to do away with this appropriation this concludes my presentation Mr chair. See no questions on the commissioner of state lands we have motion. I have a motion and a second all those in favor say aye. All opposed us have it so with that we'll move on to. The prosecutor coordinator office and we do have audit findings so will recognize legislative audit first. If you would introduce yourself a record you're recognized gives audit report thank you Mr chairman tumbling in Arkansas legislative audit. And what you have in your packet for the prosecutor coordinator the two thousand eighteen audit finding. During this report we reviewed expenditures and revealed that two transactions totaling ten thousand dollars or not properly recorded as employee benefits. Have been recorded employee benefits the AC would be exceeded their budget line item for that. They did request some additional funding for salaries during the year and if they had code is correctly they probably would requested additional budget for the matching as well and we have completed their two thousand nineteen engagement had no findings that concludes my presentation. Thank you I see no questions thank you and miss rock will recognize you at this time. Thank you Mr chair. This starts on page one twenty nine. The office the prosecutor coordinator provides a broad range of technical assistance and support services for prosecuting attorneys their duties and support staff. On page one thirty is the department appropriation summary they have to appropriations the agency is requesting about one point three million each year of the biennium and the executive provides for this request. Appropriation start on page one thirty two is the law enforcement and prosecutorial programs spend it from the administration of justice funds. The agency is requesting seventy thousand six hundred and sixty each year of the biennium. The executive provides for this request. On page one thirty four is the prosecutor coordinator operations spending from state central services. The agency is requesting about one point two million each year of the biennium the executive provides for the agency request. There's an increase of seventeen thousand five hundred in operating expenses and this is for C. only training and this concludes my presentation Mr chair. Senate questions drive a motion. I have a motion and a second all those in favor say aye. All opposed does have it with that we'll move on to legislative audit. Doesn't look like we have any audit findings for audit so we'll move on to ms rook. Starts on page one thirty five. Legislative audit provides the impartial auditing independent of executive branch of government of each office department institution board commission an agency of the state government. They have one appropriation it's on page one thirty six this is their operations. Expended from state central services ad valorem tax federal fines and lottery fees. They're requesting about forty two million each year of the biennium there is no executive recommendation. Salary adjustments made in the current biennium are requested to continue into the next biennium and this concludes my presentation Mr chair. Any questions from members. I have a motion. I have a motion and a second all those in favor say aye. All opposed us have it so with that we'll move on to the bureau and miss Rick you're recognized. Thank you Mr chair. The bureau's. Appropriation starts on page one thirty seven. The bureau of legislative research we are your staff we act as a service agency within the legislative department and its employees are employees of the Arkansas General Assembly the bureau also acts as the disbursing officer for the legislature. On page one thirty nine is the operations appropriation. It's funny from state central services. Requesting about eighteen million each year of the biennium. Salary imagine judgments made in the current biennium requested to continue into the next biennium. On page one thirty nine eighty BLR is requesting a reappropriation and the amount of two million as a contingency if needed. And on page one forty one you'll see where it's the disbursing officer there three appropriations requesting about two million each year of the biennium there no change of those from the FY twenty one. This concludes my presentation Mr chair. Represented makes recognized for a question A thank you Mr I'm fighting over her question that I have is with the the virus and you know the plexiglas and all these little extras I'm assuming bill arses are you all covering the cost for that and is that. Going to be covered in your budgets to make sure that. I believe so I Martie seven to the table to answer that are there. Miscarriages coming to the table to answer questions. Where to get up there for at least one question. Thank you Marty Garrity with the bureau of legislative research represent makes yes our budget has covered all of those costs and we don't anticipate needing additional funds for that all right thank you thank you Mr thank you. I see no further questions do we have a motion a motion a second all those in favor say aye. All opposed house haven't. Committee was seeing none. Of that is our business for the day was see you guys back in the morning stand adjourned.