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

You are ready you are recognized. Thank you madam chair and then we're gonna go for the over the request for the department of Human Services which starts in manual five on page one in the interest of time I am only going to go over the appropriations that have changes so it'll be a little bit shorter on my end. So hopefully that will be helpful for us and. And we're gonna start on page two with the shared services appropriation this is the one that was added across all cabinet level departments during the fiscal session and this appropriation is for the salary in personal services matching cost of the department secretary only if it's funded through interagency transfers in various programs support the agency's requesting the continuation of salary and that has been made in the current biennium for the next biennium for total appropriation of nearly three hundred fifty thousand dollars and the executive provides for the agency's request. I'm also going to go ahead to page for for the administrative services division of DHS and I would like to point out that the employment summary on page four and the minority owned businesses this contract information that's on page five it's for the entire agency they're not gonna see this and any other place it's not broken out by division. if you look at the division appropriation summary which is on page six you'll see there six appropriations which are funded from a mixture of general revenue federal revenue cash funds reimbursements in various programs support and the requesting that eighty three point four million dollars in fiscal year twenty two nearly eighty three point five million dollars in fiscal year twenty three with increases of about five point three million and the requesting changes in to their appropriation a continuation of current authorized amounts for the others. on pages seven and eight is the very is building construction appropriation in it funds the maintenance construction renovation repair and equipping of the state hospital in Arkansas health center human development centers and the general treatment centers it's funny from federal revenue reimbursements sorry general revenues transferred from the divisions and other funds as determined available the agencies are cutting an appropriation of a little over fifteen point nine million dollars for fiscal years twenty two and twenty three which is an increase of three point five billion dollars in each year and the agency state this is to ensure that the division of developmental disabilities services can utilize all available funds to continue maintaining the five HT sees and protect the health and safety of their residents in the executive provide to the agency's request the next item is the operations appropriations the secretary's office which is gonna be on pages eleven and twelve. This is fed pays for the administrative components of the division and is funded from a mixture of general revenues federal revenue and various programs support the agency's requesting appropriations a sixty six point four five million in fiscal year twenty two and sixty six point four nine million in fiscal year twenty. An increase of about one point eight million dollars in each year this request incorporates the position and associated salary extra help and personal services matching line item changes that were part of the reallocation separate resources that they are approved by the legislature in June of twenty twenty this includes an increase of two regular positions and a decrease of three extra help positions an executive recommendation provides for the agency's request and additionally recommends the discontinuation of two positions for net change of zero. An increase in salaries of nearly thirty six thousand dollars and a decrease of a little more than two thousand three hundred matching from the agency's request this concludes my presentation for this and I will be happy to answer any questions alright ladies and gentleman are there any questions. Seeing none it would like a motion for executive recommendation alright I have a motion to have a second. All right all those in favor say aye. All those opposed motion passes art please continue thank you madam chair the request for the division of aging adult and behavioral health services is on manual five starts on page twenty. A full ten page twenty one you'll see there it divisions appropriations which are funded from a mixture of general revenue federal revenue special revenue cash funds administrative action of justice funds and various programs support the division is requesting a total of two hundred twenty five point two million and fiscal year twenty two and twenty three which is a one point five million dollars increase from current fiscal year of these appropriations are requesting increases in one in the continuation of currently authorized amounts for the remaining. And if you'll turn to pages thirty three thirty two. And that's the operations appropriation for this division and it pays for the administrative components of the division including operations at the Arkansas state hospital in Arkansas health center it's funded from a mixture of general revenue federal revenue and various programs support in the agency's requesting appropriations of about one hundred nineteen point two million dollars in fiscal year twenty two and one hundred nineteen point three million dollars in fiscal year twenty three this request incorporate the position and associated salary and personal services matching let and changes that were a part of the reallocation of resources that was approved by the legislator inch later in June twenty twenty including a decrease of five regular positions and an increase in for extra help positions the executive provides for the agency's request and further recommends the discontinuation of three position for a total decrease of eight and decreases of nearly seventy seven thousand dollars and regular salaries and a little more than thirty four thousand dollars in matching and agencies request and this is the only one in with any changes to this concludes my presentation for this division and I'll be happy to answer any questions any questions from the committee. All right seeing none. A limit I'm sorry a. We need sit a seat sixty six who is sitting there. All right A represented by Vaught you're recognized for a question. The chair so the meals on wheels can you tell me if that's enough to cover what we have. Due to calibrate and them not being able to get out and go to the centers to get minerals. It's this point in time anyway. Sorry has. One on page twenty one I'm sorry. I say Mister five common. Mark what with the chess J. here with DHS division of aging adult behavior health. So if I if I may refer the bottle I just little bit and then the director who may want to add in some some as well we did receive some additional federal funding this year as a result of the cares active for levels most families first act that Congress passed all together it puts another leave six point six million towards nutrition programs for seniors and that's mine we've rounded out through the triple A.'s to be used by singer centers and others for meals on wheels and other nutrition programs we do not approve that those senior centers in this programs they are struggling with the inability to do so the fund raisers they typically do so they'll have the problems is not like they've gotten this how of money and have all that extra they there are struggles there but we've been working with them and I know that many of them and I have been to work through those issues and will certainly continue to do so and for the day the most when you add about that we did receive in families first funding which covers both congregate meals in a home delivered meal services we received about two point one two point two million dollars back in March the book of which carried over into this fiscal year in an S. aside from that another seven little over seven million cares act funding which the the majority of that also supports nutritional services adding that with our current funding we still have. But I would say is adequate funding we have about seventy to seventy percent of our nutritional services funding still available and and still being billed out by the triple A.'s buyer edges on aging and are set which they turn format our senior centers to provide the services can I have a follow up please. Thank you I'm so can I ask how that's disbursed. So how much of it is how's it been dispersed out to make sure that our role because I will community centers already suffer. Greatly and then it ACT hope it on top of that plus not being able to do fund raisers I'm just want to make sure that our rule centers are actually getting some kind of funding. So the the dollars for that come in three older Americans act are routed through us to the area agency on aging on the basis of a formula that takes into account population it also looks at how many older senior citizens are how many minority senior citizen citizens how many poor senior citizens systems there are in those areas and then in turn the triple ladies route those money to their individual senior centers most of them use either the same form or very similar formula to allocate that among their senior centers we do have believe one or two to place to do it use a different method because they're more rule and I think they have a more a little way of disturbing those funds and I'll mention that in public health yesterday resume Bentley and asked us to worked replaced with a report together explain exactly how they do that and so we've reached out to them and as we pull pull that together with them we'll be glad to provide you copy that. Madam chair I would ask that it comes to all of our budget an ALC members if that's at all possible is thanks to thank you madam chair thank you all right to a Representative Wardlaw. Thank you madam chair not I just wanna piggy back on represent of all of. I too am very concerned about our rule senior centers and I realized meals on wheels are basically ran out of those community center senior centers and I know there's a request to the care that committee. For some funding and and can you guys give us some insight on whether that's needed because we were council this this this committees will be counsel we're going to see those request in the next week or so so give us some insight on how much needed that is and what that amount should be looking like so I think that letter was for twenty million if I remember right. So mark gives a little insight yes Sir that the letter request was for twenty million the just give some context the total funding that we send down through triple A.'s for knowing interest in the other programs they operate is I want to say the neighborhood of maybe thirty million a year thirty four million two eighty seven this year so I guess you get is a sense of the scale of the funding that we provide to Tripoli's can at that thirty four million what was the impact to that thirty four million because my understanding there's a category there's a B. funding they get for seniors that actually come to the senior centers are not able to get right now because co that those people are coming. So what did that impact their budget offer that thirty four million Jay do you have that number the the total number was thirty eight million two seventy six they received thirty four to eighty seven so it was about a four million dollar set aside they went to be funding okay and so our senior centers were hit basically four million dollars due to seniors not being able to walk through the doors because appropriate there was a reduction in our state general revenue yes Sir the tears act in the family's first funding that we receive to compensated and then went beyond that and so. Course with the with the pandemic in there are there are greater needs additional these we know this year but senior centers were one of the entities that actually received greater amounts on the contracts this year than they were prior to cope with and because of the additional federal funds that we received and also add to that that we know some senior centers have they've adapted to this person example so we're doing like drive through meals where folks can come by and pick up a meal and medicine they can pay for out of that same part that usually would go for those congregate meals okay so hold on you have said like three different things is our. So we got thirty eight million they only got thirty four media centers for million dollar hit and now you're saying that the cares ACT money that was targeted for senior centers actually made up that gap so how much of that gap was made up from the funding our surplus what was made up. Do they get individual six million eight million ten million wanted to get it's the total for funding the came down through cares active families first for nutrition programs was six point six million so they actually were two million to the good. Yes I believe I believe that's correct they were to the good. Thank you thank you mentor. Representative would you recognized. Thank you Mr chairman I don't direct your attention on page twenty one to The division of aging adult and behavioral health. You budgeted at your actual expenses were a hundred and four million. The budget is a hundred and eighty roughly. You authorize a hundred and seventeen. Then you're asking for a hundred and nineteen million. Twenty one twenty two that's a sixteen million dollar increase above what your actual expenses were. Yes. Service open that's a good portion that relates to the budget for the state hospital and FOR the health center you that we do have some capacity there because publish their can fluctuate and I went to address those change conditions was facilities but that's yes for you are you are correct on that. and it is it is sixteen million additionally this in this Dick the increasing appropriation also compensate some of the grants that we received this year a particularly in our substance abuse area Sam so has has made available quite a bit of money to combat the opioid crisis this year and we have received tremendous increase in our funding or federal funding which which required us to increase our preparation quest. Thank you madam chairman. All right senator Irvin you're recognized. Thank you madam chair Mister help thank you so much I just wanted you to while you're sitting at the table talk about what your out reaches with our veterans and explain that situation I think it's really important that we have this information because. Many veterans think that the only assistance to them is there VA benefits but we know that that's not necessarily the case and I know that you have done a tremendous amount of work in this arena and I just wanted you to tell the members of the General Assembly about what is going on and and and how you have been able to fix that situation employed people and to get their services that they need. Yes ma'am so it is that's actually a very exciting program I thank you for asking we have the opportunity to we received five million dollars and cares ACT finding that after consultation with our sectors office we really looked at how this money could best be spent and we wanted to direct this towards Arkansas veterans we know suicide rates are already high as you go into the holiday seasons that that that problem even more it only worsens and when you when you add and coated this is a very difficult time a lot of families have had impact to their to their their employment status and so it was opportunity for us to tap into the public health system that we operate out of the division and really focused on a targeted group and so we've divided the five million dollars into three really three components one of those is a is a is a targeted our our call immediate campaign but it's really an information campaign that we are following through our community mental health centers. we are partnering with adverse to the department of Veterans Affairs here in the state to obtain names of veterans in the state to to mail them specific information of where they live about what behavioral health services are available to them in their area the veterans administration determines organization but the five hospitals that serve Arkansas one of them is located within our borders the other five are peripheral to the state and so even though those are services that are available to veterans and you have to travel there or immediate helps that are available in your county where you live and we are disseminated information and getting that message to them to let them know that here are services and because these are public this is the public mental health system if you have a pair source wonderful they can they can provide services if you don't have a pair source equally wonderful our our contract dollars pay for that so here is here is a resource to to to connect them with secondly we are channeling some of these funds through the process stabilization units which are licensed as acute crisis units with the state we're going to chess I say change we're going to relax some of the parameters under which they serve their primary populations and open those doors up to veterans that are in crisis and their need of services for for for this holiday period to allow them to come in to receive services in and to leave with a continuum of care if that if that is what is necessary if that will help them and then also with this crisis units and with our community health centers we're going to offer training to veterans service organizations. To anyone that is interested in receiving mental health first day this is a program that we work through we have a provider that has about a hundred classes a hundred slots that they can offer virtually two to train non professionals this is for non clinicians would be for a person who may take a call from a veteran who may be in crisis or even suicidal well what do you do what you know simply directing them to call nine one one is not always the best answer there or their or steps to take to ensure safety while you connect them to the help that they need and so we want to the for training to law enforcement entities to EMS as I mentioned to veterans service organizations to their staff the personnel and an offer just offered this is another tool another resource that they can put in there about to use when the occasion arises and then thirdly the bulk of the funding three point four million we are making available to veterans service organizations this this has to be an organization whose mission is veteran oriented whose leadership is Representative of that turns who have been in operation since March of twenty nineteen and that our license as a as a nonprofit with the state of Arkansas and so for those entities we have a tiered structure based upon the size the organization where they can make application to us for funding ranging from fifteen thousand two hundred thousand again based on the size of their operation. And it would offset costs for first aid supplies for trauma equipment for I. T. four naloxone we want to put naloxone in the hands of the hands of the veteran organizations for training for for for for opportunities to bring veterans and FOR group for for group sessions to offset shelter for veterans during the holidays and even nutritional services for vets and their families and so this is a really good good chance and in a way for us to partner with the veterans service organizations and I think long term I apologize I'm so worried about this I don't mean to help that's why I so the I'm going to do this one of the long term benefits is we now have connection with these organizations and you know as the as is our division very often we you know we we focus on mental illness in the state but to target this particular group is maybe something we haven't we could do a better job of and to allow us to get in the door and to make make introduction into this population in our state I think it's gonna be really helpful for us as we go forward. While the initiative Ian's technically ends December thirty first this year we'll move forward with these relationships and did that the girl the the ground game we don't tend to lose some of the really good afternoon partner with that they get to know some leadership over there and it's a that they've been really helpful thank you and just thank you for the the leeway and madam chair I just I want to challenge us and asked that question because that to me was one of the best five million dollar spends the cares money that we made the meat processing grants with another one and the when I some I bring this up because I want to make sure that we don't just do a one time you know throw something at the wall and that has long lasting effects and so I really want to challenge you and these other agencies to find in your budget where we can continue some of the good work that we've discovered that we've done with the care steering task force money and so where we can find additional funding or resources through federal grants or or or if we need to restructure our budgets to allow for some theme to continue those efforts I really hope that we can challenge ourselves to to do that so thank you for that latitude in the questions and I hope we'll do that all right thank you sounds like a great program I'm glad to were able to discuss it. All right to a Representative Cavenaugh. Thank you madam chair back to the Representative Baltz for quest I'd like to add two things to that if you don't mind I'd like to know what they're ad man calls the is and what their lobbying fees are. It's been what that two thank you. All right next we have. A Senator hammer. Thank you Mr chair. With regards to seems like this discussion comes up every once in awhile but as far as to trick plays having to be the middle man between the money and the Of. What sorry lost my train of thought the the senior del centers. Is it required under federal regulation with the money that comes down that there has to be a third party verifier such as to Tripoli that actually receives money then disperses about wars or any other mechanism that has been explored in order to be able to use the get money pipeline straight to the senior adults centers US was made to eliminate some that middle cost. House also for the older Americans act funding which is the bulk of that funding that as I said as required by the act to go through area agencies on aging that's better Blake on so as much north something that does some those established by the older Americans act federally and so that's system there those funds had go through that system in terms of state general revenue I think that is entirely up to you also legislature you know certainly in the past the legislature has used back when I general improvement fund and those things there there were money money that flowed directly to the senior centers and that is certainly some of the state could do with his own yes you are how much is G. R. as in do we have that goes to the senior adults centers. The more you look that up if I remember right when I first came down here there's some legislative audit findings as far as a going directly to some of the centers am I right or wrong on that or is is that what it's intended to do to help safeguard the money. I that I think there may have been that I'd go back and look to see about think there were smart findings. Not a part of the delivery details. So the senior centers receive four million three sixty seven six thirty nine as G. R.. So when you do in your other research which add to the list what percentage of that goes to the overhead costs that that's retained by the. Your place please service center part thank you thank you Mr. All right. A. Senator Stubblefield you're recognized. Thank you madam chair. Up. Mark you know I'm the one that requested that the twenty million from the steering committee not did so because I visited with a number of senior citizen centers over the past couple of months. Up for five months after the covert began and I began to realize real quickly that a lot of the center for suffering because of the fact that they could no longer meet they can no longer have any fund raisers they can no longer have any activities of which I can build against this be three fund because they're it they have to do some of this stuff is required by regulations it makes no difference how much money you have an account if they can access it these centers are hurting I talked to one just last week thanks Sir thirty four hundred mail so for November many of the seniors do not drop in these rural areas in Arkansas is a very real state many of the seniors do not drive a lot of them don't even have a cell phone much less access or the technical capability to get on soon which is required bodies be three funds. And I say this because I have these two with a number of legislators. You have to contacted covert in another a number of other peoples who contacted cope with we gave a hundred fifty million dollars to contact tracers a hundred and fifty million dollars. And it's my opinion that that money did very little if any good and and there's a lot a legislature legislators in here would agree with that so we if we cannot take care of the most vulnerable in our society then we've got a real problem. These seniors are relying on us we relied on them the biggest part of our life now the relying on us. So I would the and I'll be taking this before the steering committee today and request this because a lot of the center's or hurting their action they are hurting because I know what talk to the employees there they are driving their they've had at home if to rouse. Because nobody can come in therefore they have to use their own vehicles to deliver these meals which is the only meal a lot of these people get all week. If we if we can't do this we've got a real issue. Thank you madam chair. All right thank you. A Representative would. Thank you Mr chairman I've got a couple of quick questions have you all A bill then contacted relative to the vaccine distribution and that funding. If you heard from anyone yes Sir I know the health department is working on that I believe they're the lead agency they have reached out to us for DO discordant ation because as I as I understand it first is not is not our area of expertise but just for our understanding is this some of those first ways of actually will be targeted towards nursing home residents but also healthcare workers so the average judges tell Cordy so that with our health care workers okay this this the reason is exactly the reason that is the question was for the senior citizens the elderly and the nursing homes have you have you put anything in your budget to deal with the distribution is included anywhere. Yes Sir and FOR Medicaid we do have some dollars that are in that budget that are intended for costs related to code vaccine other recovered related cost I'm asking you just a moment I think I've got that here in front of me. All IT director Staley address that. Would you mind this week with your mask Dale hate to ask you to do that but. But here the age or having trouble. Yes Sir. sadistic just to clarify just follow up on what mark was saying we have been in contact with the health department is the lead agency it's our understanding that these vaccines are going to be coming in and so there's not actually the the Medicaid piece of it that mark was speaking to is not for the vaccines itself instead there are costs that we have built in the budget with regard to when there is a need to start purchasing vaccines around like the administration fee the lab because those types of things the federal government is has been working on trying to secure at least initial sets of vaccines to get out for distribution some of which would not actually require payment on the state side and so again we're working very closely with the health department with regard to that but but that just to differentiate between sort of what we built in in the Medicaid budget verses from a from a broader state perspective with regard to the coordination of those vaccinations what about the it's my it's my understanding that the federal government is going to bear the burden of the cost of the vaccine is that correct. Yes I certainly don't want to have to speak for the federal government but but it's my understanding that lease for the first round or however long that lasts that the federal government will be providing support for that either by directly giving out the vaccinations or allowing for payment for those back to nation so that way it would alleviate the burden on the states and providers but again I know a lot of that is still being finalized but but that's that's definitely the communications that we're receiving okay one one more question. It's it's my understanding that the vaccine has to be at ninety minus ninety four degrees and have you had any conversations with the health department I'm worried about ability to have that kind of refrigeration statewide particularly as it relates to nursing homes and others won't be an expensive of investment the UPS and fed ex or have an they're having a look at it yet have you all look at that yes Sir and again we're coordinating with the health department I know they have they have an effort where they've been looking to assess and look at it um for different facilities different providers across the state to what extent they have the cooling and storage capacity because obviously it's not just the cooling issue but then be able to store amassed number of vaccinations and so we've been involved in that both with regard to the services we provide but also with regard to our facilities and so assessing our own capability to be able to to store and properly You know help distribute were necessary but again the health department has been doing a great job of leading that and we're definitely working with them on it okay did you ever did you ever goes of dollar amount that you all have budgeted to to deal with the administrative side of this act yes and so it's so I was looking over my note here. Here this is pharmacy yeah so in up I'm sorry something that would get there is so we have we have budgeted approximately fifteen million dollars total four vaccines and then for for lab costs associate with Kobe nineteen. Thank you madam chairman thank you all right of just going back to the veterans issue one of the members of wanted to know if the. If. When you know when that money that a ward that one will be award the money for the veterans grant. The applications are coming in now and or do by the end of next week we've already made site may we receive three that we reviewed we have three more we know that are pending they're coming in and so they are actively coming out now we have emailed and called every via so that I can get a reference to and also working with that book add the we've got to veterans coalitions the state one of the central one of the northwest and so we're really at put the word out as as best we can and we made the application really. Pretty easy to fill out and to and to submit some electronically and the course as I said we reviewing those center as they come in and and when do you expect to award them after. There were. Accepted I mean there except in an approved and we should be rewarding those if not now within days okay is good alright thank you next on the queue is senator Elliott you're recognized. I thank you madam chair my question goes right back to the veterans as well by VSO is Senate bill Britt is that mean veterans organization and. Center I'm sorry it's veterans service organization do we have veterans service organizations in all parts of the state. We do we have representation across the state now the whether they have a physical location we probably don't have a. That every in all seventy five counties but you have large organizations like to be if that be the day the American Legion that are represented statewide okay and and the of the other but would you just describe for me just briefly what the information campaign looks like what I'm curious to know how people finding out about this we designed a flyer if you will of a mail out to go out it is specific to a community health center and then each one of them will have H. H. C. may seek unit house center has a as a what we call a catchment area summer larger summer for five county some larger northeast Arkansas we have our largest which is twenty counties but we have a cut out the the that with that we and that's probably not the right terminology is that we built in for each location to customize the information that goes out so that they can advertise that we have a provider in this in a particular county in Benton county Washington County Madison County in Boone County Carroll County just for reasons and here are the numbers here so you reach out okay all right of this man here thank you very much. All right. Fifty five. All right okay Senator Wallace you're recognized. Good afternoon how are you I'm fine thank I have a recommendation some of your VS souls. In some counties are gonna be part time. in they normally would have a staff of only one. it. It might help if we pass that information out to perhaps the socialists in the counties of the counties of the municipal league to get the water spread and if we have health organizations that we get that out to I have worked a lot with our VS those in a really good man. Most of my life me older than dirt and they don't understand computers that will they just have a big heart so this just some feedback from working with the Assoc thank you Sir thank you all right that concludes the questions for this particular division miss walls. A and thank Gwen I'm sorry got hit a massive player of I need to call a motion for executive recommendation all right have a motion and a second all right all those in favor say aye. All those opposed motion passes in thank you gentlemen for being here thanks walls thank you madam chair and the division of child care and early childhood education quest begins on manual five page forty fourth but next one we're going to discuss if you look on page forty six you'll see the division seven appropriations that are funded for a mixture of general revenue federal revenue special revenue cash funds in various programs support it's requesting approximately one hundred seventy four point three million dollars in bill fiscal years. Of the seven appropriations requesting increases into decreases in one and the continuation of current authorized any other for. And if you'll turn with me to pages forty seven forty eight we'll talk about the first item which is the child care development discretionary appropriations this appropriation is targeted to low income working families and those transitioning from the ten of program to assist them in obtaining childcare to allow them to work or obtain training or schooling necessary to secure employment this is one hundred percent federally funded the division is requesting nearly fifty five point five million dollars in fiscal years twenty two and twenty three which is an increase of twenty two million nineteen point three million of that is being transferred from the child care grants and aid appropriation which is another corporation will discuss in a few minutes and the remaining nearly two point seven million dollars is coming in from as an increase in appropriation in speaking with the division they stated that there was an increase in child care development fund grant funding so they needed this additional appropriation on the executive provides for the agency's request the next item with changes it's going to start on pages on page fifty one it's gonna be on pages fifty one and fifty two this is the operations appropriation for this division. And if funds the administrative components and it's been funded from a mixture of general revenue federal revenue various programs support special revenue the division is requesting a total appropriation of twenty five point seven million dollars in bill fiscal years which is an increase of nearly three million they're requesting a new line item the very bottom you'll see it it's data processing services for about two point three million and that's to assist in the procurement of new comprehensive and integrated systems for child care licensing it administration and residential licensing these systems are included in the divisions I. T. plan the remaining increases FOR salary match adjustments made in the current biennium requested to continue to the next biennium and the executive provides for the agency's request there is well. And the next item is gonna be a pages fifty three and fifty four and that's the child care grants in aid appropriation. A this appropriation allows for flexibility in developing child care programs that best suit the needs of children and parents in the state appropriation is funded from general revenue federal funds and special revenue the division is requesting an appropriation twenty million and fiscal year twenty two and twenty three which is a decrease of about nineteen point three million this nineteen point three million is being reallocated to the child care discretionary development discretionary appropriations on pages forty seven forty eight the I discussed at the very beginning. And speaking with the agency they stated that program was expense that was expense from this appropriation has ended so they requested to move the appropriation to the child care development discretionary appropriations what was needed in the executive provides for the agency's request this concludes my presentation I'll be happy to answer any questions all right the Representative Meeks you're recognized for a question thank you madam chair and and this may be better for the agency but it's about the two point three million for the data processing system there're new child care licensing and looks like the residential licensing systems what are they currently doing now and are they expecting you know if we spend is two million dollars what benefits will they see from. All right. You would introduce yourself for the record please. This offer the benefit of being able to be heard at Tonya Williams the director of the division of child care and early childhood education and we currently are using a very old platform of technology and so it's it's about twelve years old and what we'd like to do represented makes is moved to at platform that would allow our providers to also be able to input information as well so really just updating that system and we're really thinking it of it is more of an enterprise system for the agency to use just wanna make sure everyone's aware that not necessarily just for the division of child care but other parts of the agency that might need it could also use it currently for example and the division of provider services and quality assurance is on our platform which is a great efficiency but we would certainly be looking at how we could all use the same system if possible integration okay out not I like that and we can and will eventually because you you're you're using one system now will you I'm assuming that will be phased out and will see the savings will that a roughly equal each other or we can have a larger expense with this new system going forward and not necessarily against that if it's a gonna be beneficial to the citizens but I want to make sure that. I'm not I'm not a ninety expert I'm not expecting a huge increase in the new system I think there would initially be just because the cost building something they usually the development takes a little bit more funding but I think over time it would start to balance out hopefully equal out if that makes sense all right thank you thank you madam chair. The Representative was I'm sorry I'm sorry I believe it says a. Senator Elliott I'm sorry I was about to. Thank you madam chair ms Williams okay could you just give me a sense of an overall sense of our our ability to deliver services to all the families that term the child care and early childhood services for our we on that and what kind of budget implications that we have for that just for. And that's a great question so they're sort of before coveted and now we're in whole it hole that is the next part of my questions just Arapahoe it I'll start with sort of pre Kevin said there have been is if you hired lalate explain our budget we're really reallocating money that sent up mandatory a part of our a talker development block grant to discretionary federally we've received continual increases there over the past couple of years we're trying to match the letter of credit award that we receive in Arkansas to be exact we've been coming up for FOR miscellaneous federal grants in response to the number of families I will tell you that generally we've been able to serve about one in six nationally is what the number is of eligible children in childcare I would say that's probably improved with these increases we do not have a waiting list for childcare the way we have historically at with cove ID we've added a little over six thousand families that are essential workers that are over the income requirement with this one time care spending for the child care block grants so that will and roughly December thirty first there authorized through December and so those families will then again start to pay for their child care than now that we've notified them throughout the process but there are about six thousand families that we've been able to serve that are over our normal income requirements and and so I can't predict what will happen in December if that when that funding ends that's been explained to them and we are reminding them and will continue to remind them for the rest of the year do we have been a bit ability to I can't imagine the spam is going to be much better off just because December thirty first happens do we have any ability to waive any of the or requests waivers so that they can still be included now unfortunately the federal childcare block grant only allows for families that meet certain income requirements in the income requirement is roughly at where are state funded. We care about two hundred percent of federal poverty is about where those families land so if any of those families are eligible and we've tried to do that throughout the process if you think you might be eligible for our regular program please apply using this application versus the essential worker application so we may have some families that will in fact be eligible for the regular program that are part of the six thousand we've tried to route them throughout but there could be a few and we will continue to message that to these families and lastly I it appears that as we our approach in winter and more and more schools are closing is there any discussion between your division and our public schools a private any kind of schools. About a coordination that we know that will be needed because without more have more and more families within the child care as we close more schools is there any connection. So how will this rule there couple things were really are working with families who need the child care and so whenever there school closes even for temporary reasons we will put their school age child on the child care program for that period of time so by the end means they're still an income I have to meet the income yes gosh yes and yes ma'am all right okay thank you madam chair on that that's all thank you Representative Wooten. German. Three quick questions on page forty four. Publications. Regarding the childcare facility loan is so is the fun is unique in the allows those revision to place the money's in an interest bearing CD's across the state to support stored up on the expansion of child care facilities my question is are you paying a penalty for putting that money and no see days to the state treasury mail it back at the finance that I'm not aware that we pay any penalty for that but I'm gonna look at my CFO who handles that we have one outstanding guarantee loan that I'm aware of represent a point but I'm not aware of any penalties that we pay. Lara Abbasi a full division and attacking early childhood education. In no we have not paid any penalties you mean under the CD's itself on the loans okay have you paid anything to study for putting the money in a private money. The reason I'm asking is because there's a rule to that affect not only for the pelas to this but we've had several agencies of tone of this they're excess funds were within private banks but they also had to pay the state treasury a penalty for the fact will they don't call it penalty I'll do for putting their money in a private bank and I was just curious. Because it would within the reason why that the city these today is playing much and then you pay that plus and one to pay three or four percent to the state of well if you've got this quote that that's your number you not make anything on your money. We have not been paying any pen okay thank you next question on page fifty four the save the children they. You spend a hundred and twenty four thousand and you're asking for two million is. Is that a contract with them or or held. Hello to use the term in the service of between a hundred twenty four thousand actual expenses in two million dollar budget the let me the save the children was actually at part of an allocation from last session represented wooden that is not in this biennial request and that ended this this period. Agency requested. Was included because it was a not at his in the divisions at the two million dollars. Fifty four. Yes if you look at the analysis pilot point there's no funding tied to that that was part of the act from nineteen and I think it just carried over but we're not going to be we don't have funding for that do you control child care facilities were parents take their children well they're working is that under your control is kind of a strong. Let me restate that you're exactly right do you license though we do okay. Okay situation in my district is created a furor. Where the owner. House. Has been convicted of sex offense is on the register. Do you have any time or is there any licensing law rule this says that that facility the owner has to advise those people who are. Giving the care of their children to that facility that they have to be made aware that there is a reality that is a sex offender our. That there is an employee that is a sex offender the current law would prohibit that individual from being in the facility while children are present that's the protection when we are notified and and I I believe I'm familiar with that case we have a safety plan implies that reminds that director you cannot have your has been in this facility because he's prohibited and so that's what currently is now there is nothing in the licensing law or nothing in the law about sex offenders that requires the facility to notify all of the families at this point there isn't anything at this point right like that word at this point. Of. Stu would do you do you agree that DO you agree that the parents should have a right to know about the. And I'm aware of your plan that was written in twenty sixteen and then and I commend you for the way you handle that when they went back to amend the ladies in the annual deal that they have to sign off on that but it is really created a furor in in district because of the fact that they were not the parents were not informed of the. I'm certainly not opposed to families being informed about that care that they're receiving or anything related to the care for their safety thank you madam chairman. Alright thank you right there no other questions on the queue A I need a motion for executive recommendation I have a motion that need a second all those in favor say aye all those opposed motion passes thank you very much this wall was false thank you madam chair at the next we're gonna talk about is the division of children and family services and that request begins in on page fifty nine of manual five. And if you look on page sixty you'll see the division seven appropriations which offended from mixture of general revenue federal revenue special revenue in various programs support the division is requesting approximately two hundred and fifty five million in both fiscal years of these appropriations they're requesting the continuation of six and slight increases in one. if you'll turn with me page sixty five we are going to talk about the operations appropriation for this agency. This appropriation pays for the administrative component of this division and is funded from a mixture of general revenue federal revenue in various programs support. The division is requesting a total appropriation of one hundred and nine point two million dollars in fiscal year twenty two and twenty three. which is an increase of nearly two million they are requesting a new a new line item for data processing services. Also. Of nearly one point six million to assist in the procurement of the new comprehensive child welfare information system which they talked about this morning and and secretary Callistus presentation the system is included in the division's IT plan they're transferring the appropriation from the grants and AID light and of that is currently included in their budget into this line item in order to do that and they're also requesting the continuation of position salary and matching adjustments made in June twentieth twenty reallocation of resources the requested to continue into the next biennium which includes a total increase of I'm sorry total decrease of one position and the executive provides for the agency's request of this concludes my presentation for this division and I'll be happy to answer any questions all right we have one question from seat sixty seven. All right a yes okay a Representative Cavenaugh thank you madam chair this will probably have to be answered by the agency but it's dealing with paid seventy three which is your safe harbor fund. I see on this this is a special revenue. And it shows that we've had now spending on it but we do have an appropriation are you not getting any of that special revenue from these it should be from these finds that are being collected we we have started getting special revenues and this is a fairly new thing that started coming to DCFS and after last last legislative session as we were visiting on how to best use these funds we and created a partnership with the children's advocacy center's and have we have a sign in milieu assigned as of February but then co that hit and that imho you was really for them to conduct a lot of in person trainings work with the community and so co that hit and they haven't started expensing fines but I am excited about that partnership it's not a large amount of money that we've received so it is just that a PO between us and the CACC children's advocacy center's do you know how much fund you've collected. And and I checked in a sense a couple of days ago and it was a little over seventy thousand dollars. All right have you finished thank you all right of would you introduce yourself for the record please yes sorry Senator but I Mr Martin I'm the director of the division of children and family services alright thank you all right next question. Senator hammer you're recognized thank you Mr chair thank director or secretary Glaspie referred to this appointment could you explain the number on the foster care line please Farsi increase that I'm reading the exploitation of low we could you expand to please can you can you specifically tell me what page you're referring to what number your friends had just wanna make sure I answer your question appropriately sure it's appropriation eight eight three foster care. John R. manual yes. I'm at eight eight three and you want me to explain the increase yes ma'am so from actual spend the budget it's been is that what you're looking at page sixty four for the committee. Are you asking me the increase between actual spending budget in yes Sir and then up to twenty one twenty and twenty two twenty three it it goes. Correct so and so this is our are funds that we used to pay for foster care and so we have seen an increased number of children in foster care and so we need the appropriate additional appropriation to make sure that we have it in the right budget so whether that's in the right buckets for contract placement with that emergency shelter residential placement so we need enough appropriation to be able move money around between our contracts to care for the children who are in foster care and we have seen an increase in the number of children in foster care since code started and I know that's been the constant theme is forcing creations co which started that's eighteen million dollars when code goes way. The do you have any feeling for me we're gonna have this appropriation level do you think in a couple years we bill come back and lower it down or eight can you eighteen million dollars a lot I'm not saying it's not there we can you just five eighteen million dollars I think the other thing that you have to think about which is that a substantial portion of our budget which is actually greater than the number of kids in foster care is the number I have a finds that we pay an adoption subsidies and while I hope that as we shift money towards prevention and we get through because of it and see a decrease in children in foster care we will still continue to see an increase and our adoption subsidies and there's a state match to even even if it's a federal adoption subsea there's a state match and so kids are going to be in foster care there is a portion of those who are going to be in need to be adopted and the state will be responsible for a portion of that adoption subsidy to the family and I don't predict a decrease in adoption subsidies and in fact we predict the increase because we've seen increase pretty much every year okay and last question would be what's the percentage of increase of the number of children that you would directly attribute to cove it. So when Covin hit am I don't I don't do math well you know I'm a lawyer when it hit and we were at forty two hundred children in foster care and holding steady we've actually seen some minor decreases and we're now at forty six hundred so we've had about four hundred edition on children since cove it hit and that's not injuries let me be very clear we are not seeing a spike in the number of children who are entering foster care we're seeing a decrease and how quickly we are exiting children from foster care. Thank you Mr all right thank you a. Representative would you recognize for question thank you Mr chairman of. My question followers along with senator hammer almost three divisions of foster care division of children and family and foster care again that some fifty three million dollar increase between what your actual expenditures were and what you're requesting is that is that also all the. Because of the pandemic no no Sir and some of its related to placement like I've mentioned but will what was also mention our budget is we are planning for any case management system so we we need to increase appropriation to cover the expenses related to need case management system which some of you may know is actually over twenty years old was and put into place in nineteen ninety eight so this is a huge expenditure for us for the next three to five years to cover that that new technology system I'm said that preparations for that as well. What over the fifty three million increase between the three line alums how much would you attribute to the to a. Your management system and so I don't have that direct number and what I can and I have I happen to know what will expense but I'm not sure that I can actually say that because we're still in the middle of the pack of a procurement so I hate to give that specific number because we're literally in the middle of a procurement right now here if I can add to that we just posted the intent to award yesterday I believe I think that's got not the most the bidders button when on the protest period and so with there is certainly possible that one of the vendors may file protest that's fairly common for procure the size so the this poor little hesitant to put putting more information out there into window the that that procurement is final and we we can move for the do you think it's twenty million of that or twenty five million that or any case did you say you got bids it yesterday and I not be it's we we did the intent tell where yesterday so can I just say represent when it it is a substantial cost to put a new case management system across the division substantial. Well okay you might you use the word that after substantial okay what we need to what we need to learn if we haven't learned anything is we've got to keep pace with technology the stunning thing and workforce services and will run in the same thing in your agency to the larger and we we need to we we need to make a commitment to to the technology and it changes every day you can buy a new computer the in the mark itself date we here we are in that we're going to spend millions of dollars of taxpayers money were there are much more expensive today than they were fifteen years ago and you said yours or twenty in all ever so often we need to look at that thank you madam chairman I just appreciate the support on technology really can transform the work that we do for children all right thank you seeing no other questions I need a motion for executive recommendation. Going to have a motion and a second all those in favor say aye all those opposed motion passes all right miss walls thank you madam chair at the next one budget we're gonna look at is for the division of county operations and that request begins a manual five page seventy six. If you look on page seventy seven you'll see the divisions appropriations which refunded from a mixture of general revenue federal revenue cash funds tobacco settlement funds and various programs support the division is requesting approximately one hundred seventy one point nine million dollars in fiscal year twenty two which is an increase of about nine point seven million and then they're going to request one hundred sixty two point two million in fiscal year twenty three which will bring them within fifty thousand dollars of their current authorized levels of appropriation of these appropriations they're requesting the continuation of eight and changes in one. If you'll turn pages eighty eight through ninety with me well discuss changes to the operations appropriation which is the one thing the changes with this appropriation pays for the administrative component of this division including the operation of eighty six county offices across the state and as amended from a mixture of general revenue federal revenue in various programs support. Of the division is requesting total appropriations of one hundred and forty nine point eight million dollars in fiscal year twenty two and a hundred and forty point two million dollars in fiscal year twenty three which is an increase of nine point six million in fiscal year twenty two a decrease of nearly eighty four thousand dollars in fiscal year twenty three impose fiscal years this request includes the continuation of position salaried matter just sent mints made in the June twenty twenty reallocation of resources that are requested to continue to the next biennium and their additionally requesting the discontinuation of fifty positions for a total decrease of forty four in fiscal year twenty two the division is requesting increase the fifty thousand dollars in capital outlay to purchase equipment M.. And for a an increase of two point two million dollars in operating expenses in order to renovate the Pulaski south office and FOR an office in New for just furnishings for Jefferson County they're also requesting an additional nearly five point five million dollars in data processing services to support the system development of the Arkansas are integrated eligibility system Aries which was discussed this morning and secretaries lessees presentation along with other needed software licenses and supplies in fiscal year twenty three agencies requesting an increase of one point six million over create current authorized in the operating expenses line item in order to complete any renovations or furnishing. And they're also requesting a decrease of over three point seven million from current authorized in the data processing services line item in the dissipation of the completion of the development of the ares program which is included in the division's IT plan and the executive provides for the agency's request. All right thank you a. Is Mrs Franklin here today. Can you caller if she's back in the back out in the lobby. Page there you are all right come on up. If you would introduce yourself for the for the record please. Good afternoon I'm Mary Franklin director of the division of county operations for the department of Human Services all right to a Representative Cavenaugh I believe you have a question yes thank you madam chair over here. Mine is on page seventy nine it's a dealing with the county aid aged blind and disabled. You only have an appropriation requests for four thousand dollars what is this. This appropriation it it's a small appropriation that we keep and it is it is related to an agreement we have with the Social Security Administration over over the administration of the SS I program they determine eligibility for that program in this appropriation is in case when we settle up with them each year that we actually owe them money this is not something I've seen happen in in many many years but if it were to happen we would need an appropriation in order to pay that fee if if I'm absent Cavenaugh summer this this has come a couple times over the years this goes back to some situations Sir the next several years ago and I think as time passes it comes less like this will be needed but I think there are still some folks here in the program that it is possible that this could come up and and we do this preparation without perforation we would have in the means of meeting that federal requirement okay thank you. Right. There no other questions and the ladies and gentleman Anita you recommendation made a motion for the executive recommendation all right I have a motion to have a second. All right all those in favor say aye all those opposed thank you very much. This will. Thank you madam chair and the next division recognized discusses the division of developmental disabilities services and there were a request begin Emmanuel five on page ninety seven. divisions responsible for administering state programs for development fully and intellectually disabled persons and and they're also responsible for administering the children's medical services program for children her health fragile along with the the one hundred services for one hundred community providers and five human development centers located across the state if you look at page one I'm sorry not page one ninety eight page ninety eight we'll see the division's nine appropriations funded from a mixture of general revenue federal revenue special revenues in various programs support the division is requesting a little more than one hundred ninety three million dollars in both fiscal years and of these appropriations the request in the continuation of eight appropriations and increases in one. If you'll turn with me to pages one hundred and eleven three one hundred and thirteen. At the center this is the operations appropriation for the division and it pays for the administrative component of the division including the management and operations of the five HT seat and the coordination of community programs and services for those with developmental and intellectual disabilities it's funded from a mixture of general revenue federal revenue and various programs support the division is requesting total appropriations of one hundred and seventy three point five million dollars in both fiscal years. A which is an increase of about eight point eight million they're requesting the transfer of two million dollars from professional fees into the operating expenses line item to better utilize their operating expenses appropriation and they're also asking for the restoration of seven hundred fifty thousand dollars in capital outlay for maintenance and repair costs of aging capital M. equipment this request also includes the continuation of position salary and not to just minutes made in the June twenty twenty reallocation of resources that are requested to continue into the next biennium and there's a decrease of twenty positions that were part of a pool positions to render that occurred during the interim and the executive provides for the agency's request and this concludes my presentation for this division. All right thank you there no questions in the queue so ladies and gentleman in motion for executive recommendation there's a motion. The second all those in favor say aye. All those opposed motion passes this wall. Thank you madam chair and the next appropriation occurs because the division of medical services their request begins on page one hundred and sixteen. The division is responsible for administering the Medicaid program which includes the children's health insurance program also known as our kids first if you look on page one hundred seventeen you can see the divisions fourteen appropriations which are funded from a mixture of general revenue federal revenue tobacco settlement funds provider fees and various programs support the division is requesting nearly nine point three billion dollars in fiscal years twenty two and twenty three of these appropriations they're requesting the continuation of nine appropriations increases in three appropriations and decreases into appropriations. The first time we're going to discuss is the operations appropriations which is on pages one hundred and thirty three one hundred and thirty six The appropriation summaries on page one hundred and thirty six so that may help immensely did this appropriation pays for the administrative component of this division it's funded from a mixture of general revenue federal revenue and various programs support the division is requesting an appropriation of approximately twelve point five million dollars in both fiscal years and which is an increase of about two hundred seventy five thousand dollars in each year they're requesting an increase of nearly one hundred and sixty two thousand dollars a professional fees which is partially offset by a sixty thousand dollar decrease in conference fees and travel agencies also requesting a decrease of one position and its associated salary matching which is to be moved to the division of provider services and quality assurance the executive provides for these changes and also with the decrease of an additional position and it salary matching FOR total decrease of two positions and and a decrease as little over thirty one thousand dollars in regular salaries and almost thirteen thousand dollars and personal services matching from the amounts requested by the agency. And then the final answer going to discuss are the items that are individual items in the Medicaid grants paying appropriation and they're listed on pages one hundred and thirty seven three one hundred and fifty these items pay for the Medicaid program under funded through general revenues federal funds varies provider fees the Medicare trust fund and transfers and since they're listed together I'll share the page numbers for the analysis in the appropriation summary for each item that we discuss because they're not located right together. An first one that with changes the for the private nursing home care appropriation and it pays for the expenses of those who live in nursing homes you have chronic medical needs it's listed on pages one hundred and thirty seven and one hundred and thirty eight and a summary for is on page one hundred and forty two. The division is requesting an appropriation of eight hundred and forty two million dollars which is an increase of nearly seventeen point five million this increases supported by every allocation from the hospital medical services line item which will discuss shortly agency stated this is needed to better align the appropriation with the anticipated forecast of expenditures and executive provides for the agency's request. The next item that we're going to discuss is the hospital medical services line item which is listed on page one hundred thirty nine and a hundred and forty and summaries on page one hundred forty four the space for the bulk of services for the Medicaid program including waiver programs like them a community based services for the aging and developmentally disabled populations the agency's requesting an appropriation of seven point one four billion dollars which is a decrease of nearly seventeen point five million this decreases to two a transfer of appropriation to the private nursing home care line item which we discussed previously and the executive provides for the agency's request the next item is the public nursing home care appropriation as listed on pages one forty five in the appropriation summary it can be on page one forty eight. This item he's for services provided at the five human development centers the Arkansas health center and the thirty one fifteen bed or less I see if I ideas across the state the division is requesting an appropriation of two hundred fifty seven point five million which is an increase of over fifteen point three million this increases supported by reallocation from the infinite infirmary line item the agency stated this is needed to better align the appropriation with the anticipated forecast of expenditures and the executive provides for the agency's request the next item which is for the infant infirmary has listed on pages one hundred forty five one hundred forty six and the appropriation summaries on page one hundred forty nine this item pays for services provided to infants with special needs at private pediatric ICFI ID's the services are provided for children who are discharged from hospital and who need continuing medical attention and oversight but not ongoing medical treatment the agency's requesting an appropriation of eighteen point six million dollars which the decrease at fifteen point three million this decreases to two a transfer of appropriation to the public nursing home care line item which was discussed previously an executive provide for the agency's request this concludes my presentation for this division and I'll be happy to answer any questions all right thank you we do have a couple questions is the. Janet million Mrs man here. Okay if you come. Four would. Okay if. When you settled if you would introduce yourselves for the. A for the record. Senate Cholesky on the secretariat department of Human Services Janet man is available she is on them all right and that's why we all came up here in case you're hurt thanks for about four one Janet. All right good afternoon. All right in you are. Gene eight million. I was introducing you for the record that was it I was too yes ma'am and chairman this is Janet man V. as in thank you all right thank you. Sir. Chasing callin deputy Medicaid CFO K.. Dawn Staley deputy director in Medicaid director for DHS. I mark why to staff and cheap legislative internal affairs alright thank you all right Senator hammer you have the first question. Thank you and share a I'm on our page a hundred seventeen which is the department corporation summary. I guess one of the questions I would. Need explanation when I look at the funding sources there's a lot of movement as far as the. The numbers back and forth in some areas are increase summer decreased what are what are these projections made off of as far as looking at twenty one to twenty in. Like tobacco settlement for example is showing. Going from thirty nine million up to sixty three million. Certainly one happy to speak to sort of overall and then we can talk to some specifics but within the within the page one seventeen which you'll see is you'll see where because he's got a little bit this morning we have looked at both historical spending utilization within the programs and then looked it to how that compared based on both what we're seeing at national trends but also then actual experience for example over the past twelve months and then use that to be able to develop out the budget reflected of what you see here based on both as you look at you lies ation and enrollment within the program across those three category areas and so in terms of the tobacco settlement line are you looking at the funding sources at the bottom half of the page yes ma'am okay. and so the bottom half the page really speaks to you often hear us talk about other other revenues and so in this case the tobacco settlement is one of the other revenues that we receive separate and apart from our state general revenue and really the key difference that you're seeing here is that over the past couple years with the stage in revenue that we receive we didn't have to use as much of the tobacco I'm sorry and and the final match yes that we received we didn't have to use as much of the tobacco settlement funds that are dedicated to the division but going forward we are planning to then go ahead and fully utilize those funds with regard to the state and federal funds that we receive based upon the executive recommendation for twenty two and twenty three. This is going to take any money away from anybody that's currently depending on it by increasing your dependency upon the tobacco settlement money. No I mean we have we have a certain amount of funding that comes to the department each year obviously based upon the revenues that are available for that particular line item but on a yearly basis typically we do not fully exhaust that funding year to year and so but we are planning to fully budget in the upcoming biennium and then there was some discussion this morning about the ACA case being for the Supreme Court and that's really something that's out of our hands but if I remember right correct me if I'm wrong unless we pass legislation isn't there sunset clause on Arkansas works for this year that's that's correct the current law expires and so what it in terms of continuing some type of Medicaid expansion does require a re authorization by the legislature do you have that accommodated for the budget in the event that doesn't occur or whatever what's the backup plan. On and I think one of the points I was making this morning is that the budget we have put together presumes the continuation of Arkansas works obviously if it does not continue it would have a substantial change to the budget all right and you gave us to figure this one like forty two to forty five million is that considering the three hundred thousand I think is the latest number on Arkansas works or are we looking at a what refresh my memory what you base that number on or what population at I think there's a couple of things that are important if you don't mind if I just take a second to this to talk about it from the budget overall the Arkansas works portion of the budget right now is one point nine four five billion dollars alright so one point four five nine billion dollars is what goes away inter all of that except for a hundred and ninety four. Point five one hundred ninety four it's C. one hundred ninety four million five hundred thousand is what the state puts in of that so all the rest of that would no longer be if we do not continue Arkansas works. So that's I think important to understand the terms were overall budget when I say of substantial change that is a substantial change now we would then have the hundred ninety four point five million dollars in state general revenue if the legislature kept that in. That money could be used them to take the individuals in Arkansas works you might qualify for traditional Medicaid and move them into traditional Medicaid where that money would draw seventy percent federal match instead of thirty percent federal match. We are of course doing estimates at this point and we can walk you through what and why which populations are likely to wind up actually still being eligible but that's where you come up with. That's where you come up with the fact that those individuals if moved over would actually in a seventy thirty match situation costs does is it two hundred and twenty. Two hundred twenty point seven million dollars so a hundred ninety five point a hundred ninety four point five million dollars would not completely cover the. We also wish you know of Arkansas works was designed for we purchased insurance. Rather than pay direct fees direct claims in purchasing insurance we also Get Clint week also drop premium tax on that money we spent that premium tax for us is right at eighteen million dollars at seventeen point nine nine something so that we would also lose that eighteen million dollars so to continue coverage for those who would go into traditional Medicaid we would need some additional funding and then we would lose the eighteen million did that. So it is a much larger impact than just the the money that we were talking about this morning I realized I had not made it clear we would lose almost two billion dollars in federal revenue what I'd like you to do is prepare a bowl Ishida summary sheet in the event because that is going to have to come before says legislative branch to decide about the continuation of Arkansas works and I'd like you to prepare summary sheet of the what ifs and give us the scenarios and simple form if you would so there can be a clear dollar picture of what happens because that will have to come before solicit use not to act on it and then it goes away and we really need to be prepared to understand the impact of the and that's our we will we will we are working to prepare that and we will keep it very straight forward thank you ma'am thank you ma'am you would send that to the. Committee settling all right thank you. All right Representative Cavenaugh you're recognized. Thank you madam chair my question is dealing with page one twenty seven the nursing home closure. Fund. We have a four point five million in that. My question is is that going to be enough to provide FOR closures because through the call but we're seeing that are nursing homes are are act in financial crisis a lot of Ammar they're stressed. And there's a possibility that we could see several that we might have to take over. The four point five million is that going to be enough to address the issues that may occur because of that. Unfortunate situation a lot of them are in because the Calvin. It is certainly certainly it's a very it's it's it's obviously a very difficult situation right now and I think that that said we have had to access this in the past and I think just to get a little bit of context than what that might mean you know in terms of going forward so when when we have a situation where a nursing home is unable to continue operations there maybe you know a couple days right to a couple weeks where we would have to tap into potentially this funding source to help with the transition typically when we have a provider who is unable to continue operating we work very closely with the industry with others who may be involved in the management or ownership of that entity or and you know kind of surrounding entities to say would you be willing at least in the short term to be able to continue operating this facility until we can figure out whether or not it can transition ownership long term or if it's a situation where they may just have to close our doors and so this is here to help us to just in those first you know couple couple weeks literally in terms of being able to keep the lights on you know paying electricity you know getting meals in their until we're able to then go ahead work with the courts work with you know another operator to go in there and manage it you know through that transition again with that transition is to close or if that transition is to some other type of management arrangement so typically this is just kind of some starter funds to get the process going and then once were able to help transition that management then they're able to continue billing Medicaid which is how most of our nursing homes are primarily funded. Follows madam chair all right I realize that that's what happened in the past but because of the current situation amending nursing homes in the state of Arkansas because of the cold and that they're experiencing and the issues that they're having because the code. You may not find somebody wants to take another one over and that's just being quite honest with you is that you may find operators is I I'm barely able to hang on there's no way I can take another one over as a state do we have a plan for that. Yes and so we have been working closely even even today and you know we have had to work with facilities even if they don't anticipate to to close long term we have had situations where because of because of positive case the Covin among staff amongst residents were we have either had to temporarily say we are we are shuddering this facility temporarily transferring out residence or bring in staff to be able to help shore that up and so you know we we we work to work very closely with the industry with the department of health so we can identify where we do have capacity within other nursing homes and facilities across the state to be able to help transfer individuals if necessary that said we know that this this obviously is continuing to of all you know given the given the pandemic in so we're continually working with those groups to assess the situation determine where we have that capacity and hopefully be able to identify those situations in advance so that way we can try to get in their stabilizer situation and then begin transition before you know becomes we get a call on Friday at four o'clock and somebody says or shutting their doors so it's been a it's been a real team effort obviously is going to continue to you know involved as we go forward but we we are working very closely you know with with the health department and with the industry to be able to help plan for that as much as we can. one full of real quick so from that I understand that you're working with the nursing homes but you don't really tell me that you've got a specific plan that a case the worst case scenario happens and we have these nursing home shutting down we don't really have a plan set up for that we don't have a fund enough to set up to be able to take care of these people and the facility I guess that's that's my concern is with the way things this is twenty twenty and it's been a weird two years so you know do we have the ability to step in and be able to help provide that care for these people in these facilities. But I'll let a division director Jerry share speaks out a little bit more detail as he actually overseas are certification survey of our long term care facilities thank you. Thank you education director for the division of provider services and quality assurance the answer to your question is I think yes I mean this is a very stressful situation or last six months but each facilities required to maintain a emergency preparedness plan that they are required to have contingencies in place for staffing things like that we've been working closely with them is that if you director's stealing mentioned to work your staffing issues things like that but our plan would be just like when it whenever we are notified of any emergency whether via flooding from a couple years ago or last year me it's take receivership we get surveyors in the facility right away to make sure people are safe the the one the worst things we could do at the moment is to start transferring folks out and other facilities so what we would do as soon as we get notified the situation is we have surveyors on the ground in the facility already reaching out to neighboring facilities just like that facility is supposed to be doing on their own but to coordinate that level of care to make sure those folks are safe and there is I mean are receivership funds are funded through the civil monetary penalties that we collect and is about nine point four million left in that fund and the we believe is available for in the worst case scenario hopefully will have to use it at all hopefully everything goes to plan but our plan is to treat this emergency like we do all others and that is by getting people in the door as fast as possible A says making sure everybody's safe. Thank you. All right of Representative Tosh you're recognized for a question. Thank you madam chair let me direct your attention to page one forty. From the bottom of the page up go to the Next to the last sentence which starts out with an increase in general revenue funding. Are you there yes okay. He says an increase in general revenue funding from seventy five million to one hundred and twenty five million and the explanation for that fifty million dollar increase is to better align with the projected Medicaid for cast for post covert nineteen I guess I'm just curious what are you. What do you think would trigger a fifty million dollar increase in post covert nineteen for some of the factors involved. A I'll be happy to start it and then the others can certainly talk as well as well as. Our deputy Medicaid CFO we used I wanna explain something we use the phrase post code there just explained that we were not asking for additional state general revenue in those years because of who've it this is a budget build on the assumption we're going to return to a in a normal growth rate which would be for us the for an overall growth rate of four and a half percent and is what Medicaid grows by in general every year and that's just like what you see around every other type of healthcare and the way the The way those The assumptions that are underneath those budget projections are part of what I referred to a little bit earlier today some of it is based on historical trends that we have and again as I said Debbie CFO was here and he can speak to any of these that you want the some are based on historical trends some are where we have used national trend rates like for example around pharmacies were reviews the CMS office the actuaries healthcare expenditure gross for for for prescription drugs we've use their projections on the percentage growth for at why twenty two an FY twenty three in some places we've use the CMS office of the actuaries national health expenditure per capita growth rates in other places we've used our historical because it has been under but right now nationally the growth rate is five point five percent in this area we're projecting four point five overall and we can go through the different areas whether it's drugs institutional care out outpatient care all of those but each get their own projected percentage increase on a yearly basis and underneath that is I mean as as we all see in our own lives and everything else going on underneath it all is the continuing every year growth and what it costs to pay for healthcare and so that's that's what that is this reflects What what happens in Medicaid is because it is an entitlement and cannot be capped we project what we what we believe based on experts are is expenditures in these different areas are likely to be looking ahead for a year and two years. It's based off of but as I said this growth in healthcare costs it's based off of utilization how much will people use and it's based off of enrollment how many people we have been rolled. and so we look across all of those areas and then there's a fourth which is what percentage will the feds pay. And so And that's what drives what we believe will be the state share this needed. Verses the federal money that'll be come in to pay for these. And what state share what we look at then is how much do we have in these other sources of revenue which is part of what we were talking about. And how much than is needed by the state to fill in the gaps we have is a state moved away from trying to do one time monies in Medicaid I will I will say honestly that is partly because. It the end of the day unless you were cutting enrollment substantially healthcare costs don't go down on an annual basis so to pretend that somehow it's going to get cheaper every year. Is it realistic particularly when you have aging populations and everything else so we've tried to move away from one time money and instead moved to recognizing that what we spend in one year will be more the next year. If if all stays perfect and there's no additional enrollment just based off of the increased cost of drugs and health care and staying in a hospital like Senator and try to work with that we tried to bring down that growth through everything we can think of that it still provide good care for people care management you know different things but at the end of the day. That's what this reflects so The state has been for the last several years moving away from using one time money instead trying to address each year what we think the growth is likely to be and build that into our S. G. R. base we for twenty. One we had projected I need for another sixty five million dollars in S. G. R. that we is in the money. So that money we are not going to be getting and twenty one and because as we told you the federal government has come in with enhanced federal match they're giving us an extra match so the state dollar stretches further. We are able to not try to get that D. money this year. But for next year when that enhance federal match goes away. We still will have that cost. And now we're going to have to move to pay it so for twenty two we are asking for that sixty five million plus ten million. To be put in. And that is actually for us a very low growth of of ten million in additional growth at considering that we will still be working our way out of just a higher enrollment because of because of it is we try to move people you know through appropriately no longer eligible off the rolls. By twenty three what we're asking for then as you said is that additional fifty million on top of that which is right for us recognizing that growth in healthcare expenditures in that here a much longer explanation then you want to. But I hope it hope it was clear. Okay. Thank you a Representative would you recognize for question. The on Senate page one seven. One seventeen three items a child and family life I guess as it is to. But we didn't have anything budgeted are we head of budgeted one point two a. Two point one million. And actually we didn't spend any but we've got that in what is it shall. Life is to to. represent wooden thank you for the question that is kind of more of a holding fund for money that we use to fund hospital medical services for a children's hospital so that allocation is there every year and then to the course the reason for matching funds for children's and then that Mustafa medical to pay for that. Then. Infant infirmary isn't neonatal care the next. Not not specifically is in a hospital setting it's for actually one say a child that has specialized medical needs discharges from the hospital it allows for them to be able to receive treatment and is a specialized pediatric facility that can best serve their needs okay what do what do we authorized thirty three million. The agency request eighteen point five million and we only spent one point two million. That that transitioned over to the pass as of last year said that fund is not being utilized as much as it had in prior years. You have you shown revenue total your show the total funding of eight point seven million this a. And you spend seven point. Five million or seven point six million actually that we're is that additional one point one billion common for a. So in X. budget cycle yeah and sorry and FOR twenty we we were actually anticipating spend about seven point eight million at the towards in the year but then the public health emergency began in March and so a lot of the expenditures kind of slow down towards the end of the fiscal year and so looking into twenty one the reason why you see such a large increase in that P. request was that we built in additional appropriation to accommodate the growth growing enrollment and unforeseen cove it increases that we might have in our budget and then that trend continues on through FY twenty two and then hopefully getting back into normal growth and to twenty three. See where it. I don't see any items coming I mean it's going to give you. One point one billion I mean are you saying that federal funding may increase that merger. I look at it right yes no it's a it's a combination of so in terms of what we're seeing there's there's appropriation there's funding and then so for for for for the division of medical services are Medicaid More generally so the majority of the program is supported through federal funds and then there is the state general revenue that we receive and then there's the other revenues that you see kind of on the bottom half of the page that we use to help make up the state share of that and so but in totality what you're seeing is largely the federal revenues kind of broken out across the different areas where we expect to see that projected spend that that Mr callin was discussing. So you're you're budgeting nine point two what you're anticipating revenue of eight point seven. That the nine point two with the top was was our original recommendation and again this was before at that point this was before we knew that the the public health emergency was being extended into March and so we ended up realizing we'll end up realizing additional federal revenues which allowed us to reduce our ask for state revenues and so that's what you see the difference then between what the agency recommended it the agency initially requested verses the ultimate executive recommendation. Still those the the Hello see the six hundred million dollars. I understand what you're saying below see the six hundred million anywhere to cover your request so are you gonna cut under billion dollars out of your. I think I think that what you're seeing there is the unfunded appropriation between what was authorized in word shown is funding that that'll allow us to have the flexibility to be able to handle any unforeseen changes or increases in the budget through the years so we we did budget that we're gonna spend that a point six million in twenty two that we have that flexibility in case something unforeseen happens okay alright thank you madam chairman. Thank you up there no other questions on the the motion for executive recommendation have a motion and a second all those in favor say aye all those opposed all right. Its walls red ready for you. Thank you madam chair the next division we're gonna talk about is the division of provider services and quality assurance in their request begins on manual five page one hundred fifty one. if you look on page one hundred fifty two you'll see the division's three appropriations which are funded with a mixture of general revenue federal revenue tobacco settlement funds and various programs support divisions requesting a total of nearly twenty point five million dollars in the up coming fiscal years with thing increase of the three hundred thirty thousand from current authorized at these procreation third requesting continuations of two and changes in the other appropriation. that one with the changes can be on pages one hundred and fifty five three one hundred and fifty seven and it's for the operations appropriation for this division is appropriation pays for the administrative components of the division and it's funded from a mixture of general revenue federal revenue in various programs support the division is requesting total appropriations at eighteen point nine million dollars in both fiscal years which is an increase in about three hundred thousand in both years this request includes the continuation of position salary match adjustments made in the June twenty twenty reallocation of resources that a request to continue into the next biennium and the executive provides for the division's request this concludes my presentation for this division and I'll be happy to answer any questions. Thank you seeing no questions the I have a motion executive wrecked. A second any discussion on the motion on rye. The post motion passes. It's walls you're recognized continue thank you Mr chair DHS final request is for the division of youth services and it begins manual five page one hundred and sixty and if you look on page one hundred sixty one you'll see the divisions six appropriations funded from a mixture of general revenue federal revenue in various programs support the division is requesting approximately sixty seven point six million of both fiscal years which is an increase of about two point seven million of these appropriations the requesting the continuation of to increases in three and a decrease in one appropriation. the first one we're gonna do and we're going to discuss is the community services appropriation and on pages one hundred and sixty six three one hundred and sixty eight of mental five is appropriation purchases community based services for youth who that are being released OR diverted from the DYS facility and services for the families of youth currently in a D. Y. Sicily and the funding comes from general revenue and other revenues for fiscal years twenty two and twenty three the agency's requesting an appropriation of eighteen point eight million which is an increase of one million dollars. They're transferring the requested appropriation from the residential services appropriation in order to better utilize grants in aid and speaking with the agency in their most recent reform measures they're moving towards emphasizing community based solutions instead of committing used to the west to cities so they're moving the appropriation to emphasize that as well and the executive provides for the agency's request and the next item is for the federal child you service grants and it is on pages one sixty nine one seventy. Appropriation enables DYS to provide grants to various entities for local programs to prevent delinquency funding for this appropriation is one hundred percent federal and the agencies requesting an appropriation of a little more than five point eight million dollars which is an increase of seven hundred and fifty thousand there transferring the requested appropriation from the residential services appropriation in order to better utilize grants and AID anything to provide for the agency's request the next item that we're going to discuss is the residential services appropriation which is on pages one hundred and seventy one and one hundred seventy two with manual for this appropriation provides funding for the residential services for youth committed to D. Y. es or secure or specialized residential treatment. Funding for this appropriation is general revolute revenues in various programs support the agency's requesting an appropriation of a little over twenty eight million which is a decrease of one point seven five million this decreases to two transfers of appropriation to the community services and federal child you service grants preparations as discussed previously an executive provides for the agency's request the final item is the operations appropriation for this agency which is on pages one hundred and seventy three three one hundred and seventy five. This appropriation pays for the administrative components of this division and expended for a mixture the general revenue federal revenue and various programs support. The division is requesting total appropriations of about twelve point five million dollars will fiscal years which is an increase of about three hundred forty thousand this request include the decrease of one extra help positions with commensurate decrease not line item the restoration of the divisions one hundred and five thousand cash dollar capital outlay appropriation for possible maintenance needs and the continuation of positions salary and that to distance made in the June twenty twenty reallocation of resources that the requesting continue into the next by any of the executive provides for the agency's request this concludes my presentation for this division and I'll be happy to answer any questions alright thank you we do have one question. A Representative makes thank you manager with all the money we're talking about my questions actually on page one sixty five. The juvenile account and sent of block grants it's an appropriation for one thousand dollars no money is spent is there any purpose for us to continue that thousand dollar. Asian. Let's see a we have some people coming and if you would a. Senate state your name for the record please. I mark like DHS. A Michael crop director division you services. Alright you're recognized to. Answer the question. Thank you actually that's something we will be removing that was like a grant that actually ended two years ago and we had kept that open for any possible interest charges or anything that might come through but talking to my CFO we're comfortable in an ending that one okay so we can go ahead and exit right now and you guys to be comfortable that yes our thank you thank you madam chair I have a motion of proper time all right to that Kennedy. See seat sixty one. All right Senator hammer you're recognized thank you thank you madam chair. With the. There's a comment made this morning I think about the new programming and I. It was an articulate this way but what I think it is is regarding use that may be in high school or you know or in the in the high school aged have addiction problems separating them from the rest of the population you know maybe like at Alexander some of the other services can is that represented in this budget or Jim found one of the other budgets and it's actually it's a their diversion program with our our Lewisville campus that we recently closed it's it's a grant that the division of aging adult and behavioral health has secured so we have a sub grant to be able to provide a residential substance abuse services at that facility for twenty four beds to be able to keep those eight school kids that really their main issues substance abuse so rather than the court having to lock them up to get the services the kids are just really need substance abuse treatment residential we would be able to send those kids there if the court referred them okay and that that it that is the best to the facilities that we closed is that right as far as combinations. As far as for suited for this type of on secure type of more of a clinical setting yes it okay. And there were some repairs that were. To be done down at the Alexander you center one of them was the lock system that we had a meeting about like four five years ago and a tour that the other day in the locks are being installed what about the other improvements that the state's responsible for on that campus can you give me an update in is that covered in any of the budget you're proposing what it would be covered as far as any upkeep we don't have any other big projects planned there we've recently added offense and Alexander in addition to the locks second fence to be able to prevent many a walls at the facility and then you also we have some we have a lot of internet I. T. type projects that are ongoing we have live feed that should finally be available any day now so the facility will be able to see what's going on in everyone of the cottages with a live feed instead of having to go back and look at that after the fact fact we think that will help a lot with safety at the facility to have someone there we've actually order the screens for them to go to utilize that as well right and and that was with is going to ask about is the live feed to where it can be that there are no blackout areas as I would call them when do you anticipate that being done and installed I can get an update for you but honestly it any day now they when it would have been done more quickly but you know it's being older facility there was blood in some of the conduit and things that had to deal with but my teapot people told me that it would be done really quickly like within a couple weeks and we start that project couple weeks ago I'll get an update for you senator and and let you know when that will be done are thank you amend here I have a question the chair at the appropriate time please all right what's the request I'd like to put a flag on the entire DHS budget please thank you. All right with god. I had a I ask you a little bit of that the new residential treatment for the user. In the drug program is that going to be appointed with the county judge to point to that residential treatment center has that going to work Celek's it will be juvenile court judges so a lot of them have drug courts some don't but we're not going to limit it to just the drug court so we will when we have beds open up we will ask the juvenile court judges to send us referrals and we have a screening process to make sure that the kids are appropriate for the the grant for what this grant covers it covers children with the history of either stimulate or opioid abuse of so as long as they meet they have some sort of history that and there there's a bed available for them we were going to meet them to that the ninety day program with six months of after care once the juvenile completes the program and how many be is twenty four bits I'm I'm really excited about that program I hope we can get some really good feedback on the we are to thank you alright ladies and gentleman okay up missed wouldn't. One quick question what what is a gun court is there a where there's a gun use in a crime or I'm sorry drug court drug gun court no drug I I don't know anything do the Concorde. Is is here to allow gun court. Page one sixty four. El incentive block grants. The bill is down there's the juvenile gun courts that was part of the block grant I talked about earlier that we're going to be ending that that line it when that grant was out there and available a couple of years ago that was one of several types of things that the money could have been used for I don't believe anyone in Arkansas establish anything like that. Thank you Mr chairman all right of ladies and gentleman seeing no other questions I need a motion for executive recommendation. Right. Appropriation to our. We have executive wreck with the exception of the juvenile count incentive block grant on page one sixty five that that that motion includes that be deleted. Right you've heard the motion. Is there a second all those in favor say aye. All those opposed right motion passes and ladies and gentleman of I do have a couple things I want to remind you all there is no there are no meetings tomorrow it's veterans day and then the other thing is thirsty we will start at seven thirty with special language and nine o'clock FOR the department of education and with that ladies and gentleman we are turned.