ALC-JBC Budget Hearings (9a-11:30A)

Committee let's take our seats. The chair sees a quorum. All right so we have the special language report. A senator DISMANG. By somebody. Alright you're recognized okay thank you madam chair specialize subcommittee met on Tuesday November the tenth at seven thirty AM reports the following actions adoption of the agency's request to continue current language with no changes for the next fiscal year for the following agency. The department of finance administration department commerce ministry office of the courts and courts of appeal. A auditor of the state treasurer of state county a mute mutual aid. Of office of the governor governor's mansion Attorney General lieutenant governor's office sectors today. Legislative audit bureau of legislative research and part cation including hiring. Adoption of the exactly recommendations regarding changes to the language of the following agency department of finance administration department of commerce department education adoption of legislative recommendations regarding changes to the of the department of finance administration department of commerce department education the option of language approved as modified for the following agency department of commerce and the department of education I moved for adoption of this report alright ladies and gentleman we are going to adopt. We're going to adopt the report and we don't. Need a motion so with that we would just adopted thank you so much Representative fight. All right. All those in favor say aye. All those opposed. Motion passes. Now do you want to. All right then I'm going to recognize And he's going to walk us through a city. Thank you madam chair of let the committee know that we had a request from a member to bring up the department of agriculture veterinary medical board they've been asked to be here the committee has already acted on their budget with executive recommendation but. If it there now here to answer member questions. Della. All right Representative della Rosa. Thank you madam chair could the agency come to the table yes with some the okay come to the front please and introduce yourself for the record. Yes my name is Karen art veterinary medical examining board. West fort Arkansas department culture. It is the chief fiscal officer all right to a Representative della Rosa you're recognized thank you madam chair I'll apologize in advance I'm known for being extremely direct I don't speak subtlety so if I come across I'm way over here they're all the glass. so if I come across is you know a little harsh I apologize in advance it's I'm just known for it I don't speak subtlety I apologize so when we passed your appropriation last week it was so small and it was so quick that by the time I noticed I had a question we already passed it so that's why you're back today it's not because anything's been wrong it's just I had questions about it that I couldn't get answered because we had already passed through it. So the question that I have stems from I don't know if you have the same appropriation summary page that we do but basically I see that you have a very large large for your entity fund balance that seems to be growing each year and I I I've got the last five years worth of operating expenses verses laugh last five years purses revenue and it almost looks like you guys are bringing in about fifty percent more than you're actually spending and that's what's causing this large fund balance to accumulate to the point that it looks like you have a approximately seven years worth of operating expense in here. So that's what flag it for me and that was the original question in the meantime though I've talked to veterinarians because I'm not one and I don't know what it is you do and you don't hate for these guys valuable what it what they do they really like you guys they think that you provide a very valuable service and protection for them they didn't think that your fees were too high or anything like that and frankly they said they thought you needed more money so I'm in this weird situation of there's a large fund balance there's no request to spend it there's things that veterinarian say they think you need to do so my question to you is what is saving the money for. I will try to it to answer that question for you I think the explanation for why I've had I've held this position for six years that my predecessor who had been with the board for thirty years made a significant more the salary that I have so and there's been a decrease in expenses due to salary expense based on what my predecessor made versus what my salary is and so I think when you look at we have pulled a ten year view of from FY eleven two FY twenty and the the FY eleven through fourteen or fifteen at the cash from balance did not grow as significantly as it has since I've assume the position so that is one reason it that the cash from balance grows on each year and but I I do agree that there are probably some things that we could you know at. Find to do with that cash from balance I think there could be some options there on ways to spend that money okay one one suggestion that I was given was they pointed out that the board examinations are not given online in Arkansas that they're still that you're still having to do you are still having to do those in person are there any plans to convert that to an online system that you yes ma'am actually this is the first year this past June that we did conduct the exam online ow okay it'd so we did that through my national association which is the American Association of veterinary state boards as a member of that that association they have the ability to provide that service to its member boards and so we were able to do that this year due to cope it but yes prior to that. We were having an in person exam there are some benefits to the in person exam before we do that we have other and agencies coming give presentation so sometimes it may be the D. E. A. it may be USDA it and you know usually the department of health will come and so we'll have presentations of speakers prior to taking the exam and that does give the licensee some information and they know who they can contact and you know when they have different situations come up so there there is a benefit to it but the online format did work very well. Do you plan to continue that going for that option so the so my my my board likes the in person exam I think that is something that they are going to discuss I've let them know that it did go very well in that online format and and so you know it could be something where we could offer both options you know depending on what the licensee wanted to do but yes that's something that my board and will have to consider and just let me know what how they would like to move forward with that okay it just because we don't have any veterinary schools in Arkansas which means people have to fly here travel here to take a test so that's that's a that's a much greater cost of that it is in just the one hundred dollars for the for the test itself it is well thank you madam chair all this did with the suggestion of west you need to give her race. Seriously I mean it's it's forty percent more in revenue than once being spent and she's not making as much money and she sounds like somebody we really need to make sure we keep so I would make that suggestion for next year is you come and go this call right here he's a race so thank you very much madam chair thank you for coming to answer the question yes I have a question I don't think it on the sheet we passed out that the a reserve was a. You didn't say what that was so would you tell the committee what that resurface yes and and you see you may have that on one of the sheets that you have on the fund balance. The fund balance as of fiscal year twenty was a six hundred twenty four thousand eight fifty three and sixteen cents all right thank you. All right that Senate. Thank you for that of coming in answering those questions in your skis thank you so much all right to. All right. If you would come forward the she is so the bill lower staff input present the department of education report. Alright you're recognized thank you madam chair good morning members I'm Katie Walden I from the bureau of legislative research fiscal division today I'm gonna be going over with you all the divisions of the department of education. So we will begin. And this is all going to be out of manual five. We'll begin with the eighty E. shared services appropriation. And AS returning there I'll go ahead and give you a little overview the department of education administers the programs and financial assistance to the state's public elementary and secondary schools the constitution requires the state to maintain A general suitable and efficient system of free public schools and to adopt also will means to secure that the people of this state have all been ages and opportunities of education. The shared services appropriations on page one seventy seven a manual five. This is a paying account appropriation. And at the request totals five point two million dollars for each year this is funded with moneys an appropriation transferred in from the various divisions across the department of ed and it provides for the overall administration of this cabinet level agency. As you can see on the summary on page one seventy nine they're requesting to transfer in fifty five new positions from various divisions along with the corresponding salaries and matching costs for those positions. And they're wanting to and transfer hundred thousand dollars from various sources in operating cost and ten thousand dollars in conference and travel fees. And as I stated that will total five point two million dollars each year and the executive recommendation does provide for this request for transfers. The next appropriation. Well onyx subject to the department of education operations appropriation to this bill together if that's alright with you ma'am. The department appropriations summary for the operations of the cabinet is on page one ninety. You'll see they have seventeen total appropriations nine of which have changed level requests the requesting a total of eight hundred and forty five point five million dollars for each year of the biennium an appropriation this operations budget is funded with federal revenue cash funds general revenue fund balances trust funds educational adequacy funds and the educational excellence fund and they're requesting two hundred thirty five total positions and eleven extra help. So if if the committee doesn't mind I'll go over the appropriations with change levels. The first one is on page one ninety four. This is the vision screening program. This appropriation is for funding received from a one time transfer from the department of health to provide school based health services however the department has transfer the moneys to the public school fund to be used in school based health centers so there's no funding remaining in this account and they're requesting to get discontinue the appropriation the second recommendation provide to the agency request. On page one ninety seven you'll find the federal grants administration appropriation. This appropriation totals eight hundred and forty seven thousand dollars in fiscal year twenty two and a hearing forty nine thousand in fiscal year twenty three this provides for the administration accounting and purchasing of eighty ease federal programs. They're requesting to transfer to positions to the shared services appropriation. Along with the associated salaries and matching costs associated with these positions and executive recommendation provides for the agency request. On page one ninety nine. You'll see the Medicaid administration appropriation. This is a cash appropriation but it's actually funded through the Arkansas Medicaid program this provides Medicaid reimbursement to schools for providing therapy and health services and as you see on page one ninety nine they're requesting a total increase of thirteen point two five million for a new appropriation each year thirty one point two five million for each year. They state this is needed because in two thousand nineteen they change their sampling. A qualifying expenses to more accurately reflect school expenditures and the way they explained it to me was they had been including some weekend days as part of their sample and that wasn't accurately reflecting the reimbursable expenses so they changed it to now including weekdays only because that's when school is in session so that resulted in a forty percent increase in qualifying claims. So that's why they want the additional thirteen point two five million and executive recommendation provide to the agency request. On page two a one. See the professional licensure standards board appropriation this is funded with cash funds and provide for the activities of the professional licensure standards board including the establishment of standards for potential teachers an investigations of non compliance. They're requesting a total appropriation of one point four million dollars for each year the biennium. This includes a decrease in salaries in matching and ninety three thousand dollars this is also for the transfer of one position to the shared services appropriation. Additionally there asking for the restoration of fifty thousand dollars in capital outlay. For any unforeseen needs they may have. The executive recommendation provides for the agency request. Next is the state operations appropriation on page two or three. This is funded with general revenue and it provides for the operation cost of the department of education and this includes their central administration fiscal in an administrative services. Division of educator effectiveness licensure division of learning services academic accountability and research and technology. Their question twenty one point four million dollars each year. And that also include seventeen point one million dollars each year in general revenue funding. As you can see the requesting to transfer thirty three positions from this appropriation to shared services. That includes a reduction of two point one million dollars in salaries and six hundred seventy thousand dollars in matching FOR the transfer of those positions. They're also wanting to transfer sixty eight thousand in operating expenses and sixty eight hundred and conference and travel to shared services. They also requested for the restoration of a hundred thousand dollars each year in capital outlay and FOR their category D. finding that was previously cut to be restored. The second recommendation in the manual provides for the agency request and appropriation as well as the reclassification of six positions. Next on page two ten. You'll find the child nutrition appropriation. This is federally funded and provides administrative services and reimbursement to school districts that participate in the school lunch school breakfast and special milk programs. They request two hundred and twenty eight million dollars for each year the biennium. And the only changeable here is the requesting to restore fifty thousand dollars in capital outlay and to restore the appropriation to the previous level for unforeseen needs and the executive recommendation provides for the agency request. Page two twelve is the federal elementary and secondary education appropriation this house is the federal entitlement programs including special education early childhood programs education migrant education and in English language learner support and others they're requesting five hundred twenty three point six billion dollars each year and again the requesting for the restoration of their capital outlay appropriation for this appropriations two hundred thousand dollars and this is for and FOR scene needs an executive recommendation provide for the agency request. Page two sixteen is the multiple grant award cash and treasury appropriation. This provides for the spending and grants from sources other than the federal government. They're requesting one point five million dollars each year this total includes an increase of three hundred thousand dollars each year and operating expenses and and this is for the administration of state wide career and technical student organizations previously the administration for these organizations had been in a few different places but they're bringing it all under the department of ed under this appropriation to all state student organizations and schools will be administered from this appropriation and and some examples of these types are F. C. C. L. A. and skills USA. They're also requesting to increase a hundred thousand dollars each year and capital outlay to restore appropriation to previous levels and executive recommendation provide to the agency request. The final appropriation with change level is on page two twenty two. This is the succeed scholarship program. This appropriation provide scholarship payments to students across the state you have individualized education plans or are currently in state foster care this allows the students to attend private schools and to give flexibility to their families. The scholarship amount for each child is capped at the foundation funding amount FOR each year. And you may notice that this appropriation also includes the creation of a general revenue account. As well as a three hundred thousand dollar increase for each year of the biennium this is to Brock to provide FOR current demands on the program and to establish a mechanism for sustainable funding for the proof program prior to this year and they have been receiving one time funds for their operations from year to year. The executive recommendation provides for the agency request. Thank you madam chair this concludes my to park my remarks on the education operations appropriation. Thank you very much if those from the education department come forward please we have some questions. Are they out Senator in the end of the week all right to into introduce yourself for the for the record please. Johnny key department of education. Greg Rogers for education thank you all right to. Representative Wardlaw. Thank you madam chair. Senator Keith she mentioned earlier about the Appropriation that was moving and going away and moving into the school based clinic funding. What what what happens to all of our schools that don't have those of school based clinics and how is the I. screening and all that going to take place there is there still a means for the. Yeah that's still will take place this this funding was funding that we've been carrying on the books for how long correct. The year after year and it was of residual from a program that we had it so we wanted to get that money back we're can actually used the specific but I screening is still going vision screening still going that particular part of money was just to hang out there and we moved into school health so that we can actually use it for something okay thank you I make sense all right the Senator hammer you're recognized for a question. Thank you madam chair my question is going to be off or page one ninety six and it's dealing with the of of four thirty five federal grant administration. I just like up explanation of something if I understand this right you move to positions over to the shared services is that correct. Yes okay. When I look at the sheet on one ninety seven. Appropriation summary I don't see a reduction in those positions when you get over twenty twenty one over twenty twenty two should there be a reduction in those positions if they've been moved to shared services or can you help me understand that please. So if you look at the authorized positions there were eight authorized positions then we're going along only asking for six for the next two years so that's reflecting where those two that we've moved out of there are there were a total of six budget in there but were moved and one of them is fielding one of is not filled that were moved into church services right now. Okay with that. Should would that be the same then on page. To to. For you transferred thirty three positions over the shared services. Yes I'd be the same situation. So there should be a reduction from the authorized positions. Yes senator house correct okay and of my math may be off that for thirty three positions you are authorized for. Two hundred and sixty four. But only goes down to two thirty one. Yes. Okay and then as far as what you're going to receive in the way of benefit by transferring them over to shared services what are you going to receive as a benefit as an agency moving them over there. So when we refer when we structured the office of the secretary and the department of education there are a number of functions that we pull together their communications legal finance I. T. Those for the big ones say legal HR yeah I chart so five major functions that were being pulled in to the department of the office of the secretary us for the department of education to perform the shared services duties for all of the divisions within the Arkansas department of education. Okay alright thank you manager. Mmhm represented Cavenaugh you're recognized. Thank you madam chair over. I'm really two quick questions on one nine on page one ninety nine which is the Medicaid administration. So I make sure I understand so the way that we were calculating to reimburse the schools we were use an incorrect days we were including the weekends so when we really just include the date that they're actually in school they get a higher reimbursement is that correct. During a yes yes my caught it we were use in all the days instead of just when they were actually work and so if we go back down to just use in the week days and calculate and that was one of it another thing was that our system we've updated the system we can actually pull the data faster and be able to get them the reimbursement back out to schools faster as well that's one twenty and not a fiscal year twenty you saw the actual expenditures went up to twenty three point four million dollars when we were only authorized for eighteen so we had come you all to ask for more probation for last year to even go up that so getting the week days just to have calculated for the week days a set up for seven days also being able to pull those records and turn around faster all that is kinda let up to where the reimbursement claim for higher now. So actually our schools are able to get more money back for these claims that we because we've always heard that we're not getting enough Medicaid money to help us by these so this is actually going to help them be able to get more of that money yes Sir okay we've we've worked very hard the last probably for years now to get a better handle on through the our Max system to get those reimbursable claims in there were a lot of schools were missing out so with automated system of it was something we had formed out and we brought it back in house so number steps we've taken to really streamline the process to make it more. just. To make it a better situation for school districts and get more money coming into thank you and the other question I had was on page two a white it's dealing with the revolving loan. Just out of curiosity how many lines do we have outstanding and how are they repaid. I had to get with the exact number that we have we don't have a me I think we have. Seven or eight loans out right now and they're repaid in each year by the seven agreement with the district on what they're borrowing and whatever the current interest rate that the the treasury charging so we just get the treasury interest right and they have a payment plan on the aisles yes is that a short term pain repayment. or the long term it's long term okay thank you. Thank you Representative spring. Thank you madam chair good morning. I would like to know where can I find the appropriation FOR the pen depict assistance to the districts in the state. In the upcoming. Year. Pandemic assistance to the school districts are in the appropriation for the port what line item is that and I think the of Mr bleed has the two seventy two had something there that you wanted to. So I guess I'm trying to make sure I get so you're asking about the the Kerrs like money and one on the acid is is is the department of going to appropriating the funds for assistance to the US school districts out outside of that cares act that's my question are thank you the good morning Representative thank you for clarifying that there there's nothing included in the government's balanced budget extra for pandemic we are looking at well the answer funds the funds came in through that package of relief of on the federal side is. Part of our federal grants appropriation we had sufficient appropriation there to cover that of likewise if we see another relief package it comes from Congress we are trying to make sure we have sufficient for appropriation to address that so that as soon as the dollars hit the state treasury we can then turn around and get those out to the school district. Follow up madam chair all question yes thank you as you recall I inquired regarding the monitoring and assistance for the roll out plan to assist district's poorer we've broken I find that with the employees who are working with districts with respect to that I'm still on the pandemic side here so worried the appropriation will I find the employees that are assisting districts to implement this plan that we have yes ma'am there would not be a separate appropriation that the those employees are in our operations and they're not delineated separately as assistance for the pandemic of it is part of what they do so miss Kaufman is the the lead. A specific commissioner that that really is working with the teams that and that's one of our teams we have teams in learning services we have teams all through the agency that would be working with those districts one for madam chair have they created any reports regarding what their findings that being in in the assistance that they provided to the districts. A so we have reports of we are constantly updating surveys providing surveys those are up on our website and we can get that information to you thank you. All right to senator Elliott you're recognized for a question. Thank you madam chair I I'm going to get a clarification about the. There's real screenings is that are are those screen is still taking place per any instructions or requirements of the let the original legislation notwithstanding the funding. The vision screenings are yes they are cur obviously this year with some modifications but but yes that's part of the original in its ongoing and we're not losing anything that was required by the original legislation we just at which is not. Nothing that the where the it's it's it is as long as with sexuality that's all that that I want to know that we're getting it done and I had a question on page yes two oh two was about the succeed scholarship funding I want to be sure I understand what we're doing here. And I think I I think I think I heard from ms Walden that we are now this is permanent funding that we are proposing that we have and it's all tied down to the A basically to the to the regular school. District funding the or just explain to me what's going on here fund sure the wrong so that it always been a since its inception on appropriation that had to be funded with some source of one time funding in this year's of the governor's balanced budget he has proposed a new line item if you look in his executive recommendations and the listing of fund accounts there's a new fund account division of elementary and secondary education succeed scholarship for three point three million and again because under the statute that funding cannot come from the public school fund so as to not take away from anything going to the schools and he is provided a permanent source of funding in this budget this year but but the rationale is somehow the connected to the that funding that we do for the and it's a public schools like that is at twenty in the explanation I think I heard something about the Per people funding that yes this yes the scholarship amount is limited to the amount of foundation funding for that school year. So a parent or student cannot get a scholarship that exceeds this year seven thousand eighteen dollars and the current school year so that means it does as as the public school funding for people goes up foundation funding it continues to go up for succeed scholarship as well as Chris that is correct so I just want to be clear that I see how far afield we have come from when we first put this legislation in place as that now we have basically just created a nother school district in the state that we're going to continue to fund when it was supposed to be something that was cap to start with that is just a statement on on the spot a question for you because the legislators are the ones who do this we're the ones who can decide if we're going to fund this or not And I just I just wanted served the more we keeps gathering our money the less we're going to have to make sure any child in this state gets a world class education. You can't spend the same made by six houses and think they're all going to be this them to agree head don't you think that's an accurate description I'll just put it that way to. Ugh going on of senator Chesterfield you're recognized for a question. Thank. Thank you madam chair and good morning the secretary in a morning I am concerned too about the pandemic response we've had about from what people are telling me eleven or twelve people in education that died from called it is that correct. I've heard that as well but senator I can't confirm all of those. Individual situations they were educators or someone connected in some way to education either currently or in the past they may have been retired educators but. But there the twelve is the number that I'm aware of this well and I'm wondering since it's almost like hazardous pay. Are we providing anything in this budget for that hazard of them going into situations where we're seeing schools having to close down the virtual. Or go to virtual we're seeing students become ill we're seeing teachers and support staff becoming ill is there some hazardous pay in here somewhere no center there's not. So there's no recognition that this is something totally different than anything we've ever had to deal with an education before in this budget I think the recognition is in the flexibility that we provided without districts can spend their dollars that they're getting some of that is included the waivers of some of the limits for carryover funds that were as part of the governor's executive order those those limits are still waived so there is flexibility with the funds that they already have to be able to do different things in response to the pandemic what is there something in your budget that provides for families who lose family members as a result of being in the school system is that it I don't understand I mean I I'm trying to find out what we are doing to make sure that if people lose loved ones because they're trying to do what they should do for our children be they teacher be there the they teachers a support staff there's no provision in here that will allow them to bury their dead or whatever in this budget that's what you're saying. There's nothing in this budget okay A where would I find the funding for the Solution jury. What is that captain bill or is there a cap on it can grow what's the amount this year. Senator does that part it and we can that's it that will be presented in the public school fund appropriation next all right well thank you so much and I am concerned Mr keys you know about. Keeping people safe and if they put their lives on the line we need to be thinking about what we can do to help those families who lost loved ones as a result of this pandemic thank you. Senate senator of may just a dude I am aware that there is there are benefits connected with the teacher retirement system a death benefits and that sort of thing that but I don't know the details of those but those are available alright thank you all right thank you Representative will you're recognized for a question. Thank you Mr chairman I have questions regarding personnel which I'm sure you probably heard about the. In looking at the August report that your agency made to Bureau of legislative research you show nine hundred and sixty one positions authorized seven hundred and forty six that were filled two hundred and eleven Blake and. are you asking and I apologize I thought I heard this but are you asking for new positions new employees. No Sir we're not okay asking for any new position so. I have also. Would you hold two L. the agency not just your public education will Harry and all of them put together sixty three of the positions have been vacant for over two years. Is there a reason. One of those who have remained vacant. Yes Sir represent wooden of those positions of those sixty eight positions thirty nine of those positions are GSO four and below. so one is it's very difficult to fill those and what we do is we use those positions when we do need to identify someone for a higher level position that we're bringing on board if we don't have that position available then we can swap those positions in through the office of personnel management and we have done we have done that over the years this year we now have all of those the divisions of AT and working with those divisions as well to look at how our caps apply across all the divisions in a given example Arkansas state library. Before transformation had a cap they had openings and vacancies but because they were at their cap they were unable to fill some certain key positions that they needed of sense transformation we've been able to work with them and a lot some of the. Extra positions in other divisions so that we can give them some relief of their cap and get those positions so we're working through all of those and sometimes we use these all positions to to do that okay Mister secretary I understand that what do you need all do you need all two hundred and eleven thank you budgeted positions. Including those sixty eight to the men out there for two years is that the it. With the almost sixty three or sixty eight positions as costing about three hundred forty thousand dollars a year and ensure you all playing into the insurance your under that to yes Sir so the score from four to one is a four fifty which would be fifty four hundred employees that's three hundred forty thousand year plus in those sixty is three positions two point eight million tied up. For over two years that are of the in position for over two years so I understand the the swapping of the positions in that time and then upgrading in that bill I think that's good to be able to have that flexibility but we've already had to agencies come in and give up sixty six positions. That they have held for over two years and that's almost three point three million dollars that will be they'll available either in that agency or somewhere else and state government to utilize. Yes Sir and we'll be happy to look to see you one of those positions I mean to think about filling the GSO wander GS so to position in today's society it's very unlikely and will certainly look at that I would I would appreciate madam chairman I have one more question or two to more really. If it's all right go ahead of it in the cabinet level department of education cabinet level you have fifty one positions and then the department of eight which I assume includes that director there are fifty four that's a hundred and six positions between to the administrative offices are you all doing anything looking in would consolidate that operation of those would do you need to assume unit feel like you need a hundred and six but this seems like to me that was transformation the some of those could have been used eliminated or used in other other places yes Sir and that we are in the process of doing that many of the functions that have been separately. conducted separately under the division of higher education I have we've recently pull them into the shared services model so that fifty five that you spoke of under the office of the secretary some of those are now they were previously division of higher it. One more question. Go ahead. What is a gender support program this being told in one of our school districts just one that I know of what is a gender support pro. Representative I would have to research that I'm not aware of of that program but I'll be glad to make some enquiries that's not something that I'm familiar with their that anything that we have. Right now through the department. Let me share with you one situation it came up in another agency. a questionnaire. This is were being asked. What gender were you when you were born. And the next question was what gender do you claim today. I don't understand that up a question being asked of the citizens of this state I think that's ridiculous it's been dealt with the question's been withdrawal. But the if this program here and gender support has anything to do with that I would encourage you as secretary of and and I understand that the districts are independent relative to the school board but that is absolutely ridiculous. Stan well that's being involved in today's education process a gender support program there's other programs out there search is taking Christmas Christmas trees because it has the word Christ in. There's there's other situations where the thanksgiving is not being tall because of the fact. What effect would be. But I have a list of seven or eight things has been shared with me this morning if any of more true than is being taught in education it is absolutely ridiculous is subversive and his is of great detriment to our democracy thank you madam chairman thank you Mr key purchase. To Senator hammer you're recognized for a question. Thank you Mr chair on the subject of the Medicaid in the adjustments to accommodate for the forty percent increase are the Copa days where they are not in school counted against them or how does that factor into the spending of the money. Given the fact that schools had go virtual and if there's potentially may go back virtual how's that going to affect our spend. I want to thank you so the days that they're not in school I'm not sure I'm following with you well they only get they only get reimbursed they get reimbursed a daily rate and expected to cover all the costs associated with that can you explain that. Yes yes whatever the therapy or whatever Medicaid eligible thing that again the do they do get cover that daily right and if. And if it can be done virtual out how to check on that but I know that whatever state depend on the services that that that student is eligible to receive and when they are receiving it be the planet that students receiving and however that plan is going as long as they're meeting that and that at that Medicaid than that cost is eligible for Medicaid reimbursement. Add Senator when we last spring when governor made the decision to close for on site instruction one of the things that we made clear to districts was that they still had responsibility to provide the those types of services to students and work with their providers to find ways to do that sometimes that would involve maybe coming on site sometimes that could involve tell therapy if that was appropriate it would involve a maybe going to the home so I don't have we're not aware of any situations you reported by parents or by districts where they run into a problem with the Medicaid billing or anything like that for services rendered during that time that they've been out in this school year as well I mean we've we've had a different type of situation this school year some schools have been out temporarily but again we have not had any reports that the tech run into problems with billing or for providing services are accessing services so just because they go virtual. They still have the ability to be reimbursed for that they just have to be creative in the way in which they deliver the services is that a fair statement gets first statement okay and on and safe creative and safer I would I would want to add that right the I noticed that in your budget you have accommodated for and have used the term of anticipated retirement increase is associated with the of a medical cost or what is it that you're including when you use that phrase in your budget that's associated with the one percent increase for contributions over four years we're in year two I think we're anticipating your three and four of a quarter percent increase in each year of the biennium and the scholarship the succeed scholarship is just limited to two populations one those are in foster care and the other ones that have is is it five oh for that right. A IP's IPO they've been identified as having a sick days as a having a disability and so that could be IP but also for some of the younger kids that don't have eye peas or or ISPs that would apply so if a student is living in a public school district but opts to use that that succeed scholarship to go maybe to a private school does the district continue to receive that that per daily or that you know that per daily rate for that student well they take that money and go to a private school maybe that they feel can accommodate their needs better. No they that student once a or no longer enrolled in the school district. The district would not be receiving the funding for the ATM that a student would not be included in their average daily membership okay last question is how much is left out of the twenty million that was set aside for cares act funding to help accommodate teachers that had to miss school because of being diagnosed with COPD related illnesses you know what the balance of the twenty million is now the it's a little over ten million dollars as of the latest report because we re directed some of that money to go I think to the food yes but there's there's ten million left right there's ten million left and we're monitoring that closely because we know that districts have had other expenses and as I mentioned to the carriage tech committee earlier that we had reserve the opportunity to come back and ask for permission to redirect those funds so before we running into the deadline of the expiration date of that funding let's say we end up with just take a wild guess I wind up with five million left that does not look like we would spend we want to get authorization from the cares that committee to distribute that money to districts in another way. Well let ME office friendly suggestion taking on center Chesterfield comments while ago perhaps if there have been those that have died were the Kobe case originated in the school not outside the school but in the school that you might consider making accommodations for those families in some way we could do some offline discussions but if you would just kind of put that the back your mind if you don't if you don't mind please okay thanks and thank you Mr. All right to ladies and gentleman that took concludes the questions for this section and a. Secretary key if you would and wouldn't mind sitting there both ought to you until the next session section is over I'd appreciate alright ladies and gentleman you have heard of the questions and I'm looking for motion for executive wreck I have a motion to have the second all right all those in favor say aye all those opposed motion is adopted. All right to miss will no I'm sorry the. A Walton you're recognized thank you madam chair and the next section we're gonna review is the department of education public school fund you may notice on your table we put together this schedule for you it is legal size. This is to everything that was in the manual really need to the public school fund and put it in alphabetical order by line item so if you're looking for a specific line item you can find an awful order and then. On the far left you'll see up that page numbers for each line so you can turn to the specific detail and description for each line item as you have interest. Now moving to the manual the public school fund appropriation in the manual begins on page two twenty nine. And and you'll see they have almost seventy appropriations within the public school fund this request. Is for three point one billion dollars each year and they have fifty four authorized positions. Funding for this appropriation is comprised of public school funding general revenue educational adequacy funding is this existing fund balances the educational excellence funds and trains it taxes and eighteen of transfer this provides all state aid that is distributed to local school districts as well as various programs. And and if it pleases the committee I'm going to be reviewing that line items with change levels those are highlighted in green on the schedule. It's fun thank you ma'am. The first appropriation with change levels as detailed on page two forty nine this is the additional public school employee insurance this appropriation provides for the payment of insurance contributions for eligible employees electing to participate in the public school health employees program. The total request for the upcoming biennium is thirty five million dollars this total includes an increase of twenty million dollars each year. This is to increase the state share of insurance contribution and avoid increases FOR program participants this is based on eight the latest actuarial study and I recommendation of the E. B. D. board and the executive recommendation provides for this request. The next appropriation with changes is on page two forty one. This is the alternative learning environment appropriation. This provides funding to school districts for the establishment of alternative learning environments for students who cannot function the standard learning environment. Eighty is requesting an increase by reallocation of nine hundred thousand dollars in fiscal year twenty two from foundation funding appropriation an increase of two million in fiscal year twenty three this is to accommodate for projected growth of three point five percent in F. T. E. students each year. Executive recommendation provides for this request as well as an additional one point six million in the first year and three point four million in the second year and this was recommended by the educational adequacy study. The third appropriation is on page two thirty five this is the app skin appropriation asking mission is to provide a statewide data communication network that connects all public school systems within the state. As well as various entities connected to those districts. They're requesting a total appropriation of twenty three point four million for each year and general revenue funding of twenty three point two million this includes the transfer of one position to shared services along with about seventy nine thousand dollars each year in salaries and matching associated with that position. They're also requesting to restore two hundred thousand dollars in capital outlay free and FOR see needs an executive recommendation provides for this request. Next the computer science initiative. This is on page two fifty one. This line item is for the governor's plan to expand computer science education public schools the recruitment training and retention of computer science teachers. Agency request a total of three point five million dollars each year this includes a one million dollar increase to provide for additional expenses and growth in the program in the executive recommendation provides for this request. On page two thirty six you'll see the English language learners appropriation. This appropriation is what's known as a categorical line within educational adequacy it provides funding to school districts to provide specially trained staff materials and training for teachers of students who are identified as not being profession proficient in English language. Eighty E. request continuing appropriation of seventeen point nine nine million dollars for each year of the biennium and the executive recommendation provides for this request as well as an additional five hundred and sixty eight thousand. Appropriation for fiscal year twenty two and one point one million in fiscal year twenty three and again this is to align with the educational adequacy study recommendations. Page two fifty three. You will see the enhanced salary line. This new program was first recommended by the fiscal year twenty educational adequacy study. It's when I'm referring to the page numbers I'm referring to the budget manual it is detected the description right now it's on page two fifty three. But I am on and the second page on line if you look over on the far left hand column on line thirty five. Yes ma'am. You will see the the program name and in the description of what they're requesting yes ma'am. Thank you and this program is intended to provide schools with financial assistance to find staffing needs with consideration for improving equity and student achievement. This the recommended amount for this program by the adequacy study is fifteen million dollars for each year and also want to point out that this is separate from the sixty million dollar transfer that occurred for the educator compensation reform program that is already in place. And also explain it since the adequacy study was adopted after the production of this manual the agency didn't request this line but the executive does provided in their recommendation in accordance with the adequacy study recommendations. The next appropriation with changeable this on page two thirty nine. This is the enhance student achievement funding formerly known as a national school lunch funding. This categorical funding line provides additional funding to school districts annually based on prior your eligibility of students for free or reduced price meals funding is set on a graduated scale based on population eligibility that is codified. They're requesting two hundred and thirty eight million dollars in fiscal year twenty two and two hundred forty one million dollars and twenty three to accommodate for growth. This includes an increase of three million in fiscal year twenty two in five million and twenty three. The agency the executive recommendation does provide for this request as well as an additional increase of two point seven million in fiscal year twenty two and five point five million in fiscal year twenty three this is for and increases prescribed in the adequacy study. On page two fifty one of the manual you'll see the enhanced transportation line. This appropriation provides a separate transportation funding program for districts with high transportation costs. Eighty eight request the continuation of this program at five million dollars for each year of the biennium. An executive recommendation provides an additional one million. In fiscal year twenty two. And one point two million in fiscal year twenty three. And this is to align with the adequacy study recommendations. On page two thirty three you'll see the office of education renewals owns this appropriation provides for the operation of education renewals on which include the compact between public schools coop co ops and institutions of higher education collaborating for the purpose of higher educational attainment. There was one point three million dollars for each year which includes adjustments for salaries and match the executive recommendation provides for the agency request. On page two thirty nine you'll find the professional development funding. This appropriation is categorical funding line in the adequacy Funding and it provides schools with funding for professional development of teachers an online professional development system known as the Arkansas ideas program and also the establishment of professional learning communities this includes the contract with solution tree. Eighty E. request to continue this appropriation at three point one million dollars for each year. The executive recommendation provides for that request as well as an increase of two million in fiscal year twenty two and four million for fiscal year twenty three FOR professional learning communities this is per the adequacy study recommendation. On page two thirty seven you'll see the special education catastrophic line this line provides funding to local school districts for occurrences when costs for local school districts to educate ace a child was very specific and increase need when those costs exceed fifteen thousand dollars and all other reimbursement opportunities are exhausted. The agency request to continue the appropriation at thirteen point oh two million for each year of the biennium and executive provides for this request as well as an appropriation increase of four hundred eighty thousand dollars in fiscal year twenty two and nine hundred and seventy eight thousand in fiscal year twenty three and this is per the adequacy study recommendation. On page two thirty eight you'll see the state foundation funding appropriation. This is the main funding that is paid to local school districts for the education of students in the state funding is calculated by multiplying the average daily membership of each district times the adequacy established amount per student for the year. Eighty E. request two point one billion dollars for each year of the biennium for this funding and their quest includes very three allocations totaling eleven million dollars that I have previously mentioned for alternative learning English language learners and national school lunch funding in addition to that reallocation eighty E. request to increase the appropriation by twenty point three million for projected growth an ATM at the average daily membership. The executive recommendation provides for the agency request and also add an increase of twenty eight million in fiscal year twenty two and sixty six million fiscal year twenty three for increases recommended and the educational adequacy study. The final appropriation with change levels is on page two forty four. This is the teacher retirement matching line item. This one provides employer matching cost of the employees of the education service cooperative vocational centers Arkansas Easter skate seals and the department of education school department of corrections school as required by law. Eighty E. request thirteen point eight million dollars in fiscal year twenty two and fourteen point six in fiscal year twenty three these include an increase of one point nine million it's reallocated from foundation funding an increase of two point in fiscal year twenty two and a two point seven nine million dollar increase in twenty three to accommodate for growth projections and rate increases. Thank you madam chair these conclude my remarks on the public school fund. Thank you we have some questions Representative all you're recognized thank you madam chair I'm way over here and the other day this twenty million on page two forty nine and the public insurance I was asking D. F. and A how long is that gonna. Fix our teacher insurance a problem that we are we must be headed towards because were put money in it so can you explain to me they thought they could really explain it so I'm gonna ask gallons if you can. Well I'm not sure how tall do any better than that may tried to do but when we were notified earlier and and Mister Rogers here sets as my does in the on the eve B. the board so the when the actuaries gave their estimates of for the coming year it was based on the utilization based on the number of the factors that they calculate of the the teacher of school employee system I was looking at a significant need for increases in funding whether that funding came from state funding where that funding came from local funding or whether it came from some combination of of local contribution for some reduction of benefits mean that those are the things that you have to decide you gonna put money in it are you gonna reduce benefits U. gov raise premiums. And so to mitigate the increase to the premiums twenty million dollars additional from the public school fund was identified as the way to help offset that so there's twenty million dollars that we're going to be coming in requesting out of this current fiscal year because our fiscal year and our insurance here. Don't line up. so we need will be asking for a twenty man and then is twenty million four the next fiscal year and on going. So it'll be twenty million from here on out an additional twenty okay it unless you know there's some changes that happen other changes that reduce the premiums or reduce the amount of money that's needed to go into the system but you know we we've been putting and out of this line item to put fifteen million I think for. A number of years I think to twenty thirteen and then this twenty will just add to that and I'm good with that I just wanna make sure it was going to actually fix the problem thank you madam chair. Alright thank you next we have the senator Chesterfield you're recognized. Thank you Mr chair thank you madam chair Secretary Kate what is troubling to me is the continued growth and funding for alternative learning. It almost seems as if you were encouraging them to keep get kids at a regular classrooms into these alternative environments. What are we seeing that has made a difference when we send those key it's there are they behaving better because you remember when we put it in it was supposed to be a million approach response be putting this extra money and so they can have the extra canceling they could have the psychiatric help that they need if they indeed needed it and yet when we travel to some of these alternative programs we see none of that. So for an additional four thousand dollars or what will the amount be now for student. Was the additional amount now they can increase the amount. Forty four hundred forty four hundred eighty putting an additional forty four hundred on top of the seven thousand. And yet we don't see additional counselors going into those alternative schools unless that's changed are we seeing additional mental health providers going into those schools how are we holding people accountable for spending an additional four thousand dollars a forty four hundred dollars per child. Senator I share your concern and as a matter of fact I've directed my team as we've seen these numbers grow I've directed of the team at the department to start looking at Are there are other things that we can do better because you're right Jean. Alternative learning is not intended to be. A life sentence for the rest of the time and so it is to be temporary it is to be get the services you need to the assistance you need than so you can succeed now some districts have done a really good job of creating alternative pathways that the an essence keep kids in school and give them accelerated opportunities so that they can complete their studies in and move on to spy. whatever. Situate whatever life as his thrown at them but it is a concern I agree with you and we are looking to see what we can bring to the governor and to you at some point the future to help Get a better system in place based on the most current research so until we do that why we putting more money and we really don't have a grasp on what they're doing with the money well senator I because it's part of the adequacy of process and the recommendations and we have to come each year because we this is on a reimbursement basis so the the number of students that we are serving in these settings continues to grow and each year we have to come the in the summer and ask for additional. Appropriation to cover it so but but it is something that we are looking due to try to. put some performance metrics there that are. More along the lines of what you have expressed and hopefully we can be talking about that in the next few months I am always concerned about solution trees you know what was the budget last year for solution tree. Twelve. The contract so that the twelve million dollars twelve million dollars this year it's going to be thirty something million dollars is that right. No ma'am it would be a. Well if we add this these amounts that have been proposed it would. Go up to sixteen by the INS built by any let me I hope that it is as good as everybody says eighties. But we still don't have any concrete data indicating what it does when I ask for the form to be evaluations I got a lot of rah rah we're going to do this next year we're going to do this how long we had solution tree. A we are in your for we're in year four I have no formative evaluation. What difference it has made I have I have all kinds of subjective information yes ma'am about how great eighties. But I need some formative since some objective data that say is all of this investment in solution tree is making a huge difference for the population supposed to be serving. And I don't have that yet. When will we have concrete evidence rather than a row right evidence that all of this money we're putting over here is making a difference. Are there other entities that are doing good work that we could also be funding. There are moving our key its board and what provision a we making for that. So just this week I was a sent a report from education northwest it's a third party independent review or evaluator two researchers doctor Catherine tore is and Dr hello Hanson who have been working on this and we have a report on the cohort one. That we can make sure you get it has moved key the school districts from at schools to cease bills to whatever schools do we is that what we're dealing with that kind of data because I'd like to see that. Well we we do know that there have been some schools that moved from F. to see Fort Smith spreading elementary Bowman elementary had great success you have districts to are continuing to to sell show strong growth but what we have here are statistical analyses of in math in the LA and will be sure we get your copy of this and I'm a big fan of settlement as you know. Which is moved us from S. schools to see schools is there a provision that will allow them to do the work that they're doing as well as solution tree in your budget. There's not additional funding there are funding sources it districts have available to them either through the federal improvement funds or their local professional development funds that to that thank select other vendors and other providers. Thank you. Right to a Representative for you're recognized for a question. Yes ma'am thank you thank you Mr chair John. Back in. I believe it was two thousand Johnny amendment seventy nine was passed. And basically that call for re appraisals for all the county statewide is sequences of one third for each one. John question I have for your day Sir is that why the test finances on page two fifty three. Okay Johnny. Over the years that was put together amendment seventy nine was put together real fast John and what happened the seventy six percent that was paid that's being paid for by the schools that's very close John that's very close but only eight percent and the by cities. And six of sixteen percent by the counties. John I've had people question is for a pretty good while now and I just wondered John. Was that done by statute I was that done by the constitutional amendment is self Johnny if you wanted to a judge that because that the cities and counties are basically getting the same very close the same amount age with the counties is playing in something like sixteen percent in the cities are planned I. If you wanted to change it to something like twelve percent to break that even. what we have to do it John by a constitutional amendment are with that could that be done statute law sure. Representative rye I don't have that answer for you I would have to consult with the tourney's it to would have to look to see where that resides either the constitution and statutes okay Sir thank you Johnny thank you Mr chairman. All right Representative Dotson. Thank you madam chair I am looking at page two thirty five which is the app skin appropriation It looks like you're increasing or requesting an increase of. Fifty. Fifty seven thousand first year than sixty six thousand the next year but uh. In your operating expense line item. It looks like you've got an extra three million dollars appropriation in that particular line item that you haven't been using wired why do you need an increase in that. What do you anticipate having a lot of additional expenses in the operating expense line item they're not. Not reflected here in the past well so I'll I'll let to Mister Rogers jump in here too but I would say that that is a line item from which we pay for the internet connectivity for the districts around the state three D. I. S. in through the providers so that they have contracted and one so what we're seeing there is an increase in the speed. that they have access to with very limited increase in the actual dollars but there are also some other funds to get transferred out of that so let Mister Rogers talk about that. So yes for the budget at two point nine nineteen point two million dollars that was most most that is FOR D. I ask for is sector he said last year it did drop down to fifteen point nine because that's agreements that we have with the I. S. for the contracts on providing internet to the school district but it does fluctuate up and down so we have asked for reduction that because we need to be able for that were paying the I asked Ricky provide that internet service to schools so the it could go back up to the nineteen house not sure I hope not but I I I I just not sure no Sir okay thank you. All right senator bond you're recognized for a question. Just a just a few things do we have a report on our fund balances and how do we recognize this and hear what our film fund balance right now I'm in the adequacy fund I know Mister Rogers not talked about this. So for just adequacy fund yes that will start there. So for the adequacy fund looks like we ended FY twenty with two hundred twenty point eight million. And those balances over time with kept higher balances in adequacy fund if you look back for several years why is that why do we keep ending with the significant fund balances. Senator there are three parts it. The. Fund the public school fund of one of those parts bin at the actors who've adequacy fund one general revenue one being the the twenty five Migliore T.. So when we project right now you know back in the summer we had to submit to the F. and A our estimates and projections for the for the next year we we tend to fund two project pretty conservatively on the growth and you are T.. But as the year goes on and as the biennium goes on the growth in U. R. T. O. the last several years has been a lot higher than what we had anticipated and so when that money comes in the way the schools are funded that offsets the money that might be needed from general revenue from that see fund so in we recognize that over the last couple of years and tried to use try to hit a little harder hit the adequacy fund a little bit harder so we actually saw from FY nineteen FY twenty decline of sixty six million dollars in that fund we estimate that that's going to be hit by another sixty five million decline going into this fiscal year and we continue to work with the F. and A to to make sure that the adequacy fund is at the appropriate level of getting money into the schools all right I I just think that's appointed to point out that we do Kerry those fund balances and that there's been significant your to growth I'll move on and I I've I'm convinced that the we all sort of agree or most of us that we want to have higher teacher salaries including answer secretary Katie due to do we have a target for where we want to be on teacher salaries we brought this up and I know folks and hear more expert to me but are we trying to lead the region are we trying to beat surrounding states or we just kinda trying to be all right. Well I would say that you're going in the last session of the goal was to be higher among the highest in the surrounding states with respect to the minimum teacher salary that was a governor stated goal the one thing we can't control is what other legislators other legislatures do in our surrounding states and what we've seen is that uh they are also trying to raise the bar for salaries so we continue to to to. Our our goal yes general goal is to be are among the leaders in the region and then somewhere in a in the S. sorry be and some appropriate level we have Delaware necessary beats always gonna be hard to compete with Delaware. but. Just to say that that's something that the the governor has asked me to continue to look at on providing information with now that we have tackled the minimum salary which is a reminder one from two thousand nine to two thousand fourteen at twenty nine thousand dollars you all have worked with governor to raise that every every session since he's been in office but now we are looking to see how can we move the average teacher salary you're gonna move it a little bit by changing the minimum. But what is a. What what can be a bigger push to move that average and that's something that he is tasked me with providing him and one more can on and we could provide the legislature number if we did want to lead to the surrounding states which Texas Oklahoma jumped way ahead of us recently we can provide that number to legislature if we wanted to that's not a difficult calculation how much money it would take to raise our average to lead our surrounding states no it's it's not it's it's map that's it's a simple calculation. All right center Chesterfield brought up the idea of the teachers or great risk in we had in front of the cares that committee health and safety bonus for teachers if the money was available does the department of education secretary education support some form of health and safety bonuses FOR teachers from cares ACT money. A we're always looking for ways to help our teachers senator bond. Is that a is that a head sure yeah. I would certainly is US the secretary not want to get out from the governor on anything of that imports. All right Thank you very much thank you senator Ingram you're recognized for a question. Thank. Very. Of. Commissioner the of. Alternate the is there an overlap in spending and in a L. E. and the catastrophic fund. Are those two defined areas of of expending dollars or due date sometime we have students that that overlap. Senator I'm sure there are students that overlap but we would not have that data readily available I mean there there could be situations where a student needs but but I will say special education is not of alone is not a reason to assign a student to alternate learning so they're really there and I I won't say there's a lot of overlap but there could be instances in it in the past I think we've been. There's been some number shared on catastrophic of that the it was we were below what we really needed to be maybe six to seven to eight million dollars is is this catastrophic number it is that coming out of adequacy for a because of me this this expenditures been pretty flat for the last well as long as I've been here it's been pretty flat so will what was the relieve the felt like the real need of in catastrophic was. So you who is we brought to you all of real change Over a year ago now we had our first year of of data that we can look to see what the net effect was and is is we changed the the The methodology of eligibility for those expenses this year we had expenses that are claims a little bit in excess of sixteen million dollars so the thirteen million plus that to you all allocated for that we only have to pro rate about eighty percent of in the past we have been pro rating somewhere around forty percent because of the claims that were coming in exceeded thirty million dollars. Okay thank you madam chair thank you sector. A. Representative Richardson. I'm sorry Richmond. He's with the. A. Up all right of Representative lane Jean. Thank you madam chair sector you. Key I will just looking and I'm not I'm not on the ducation committee but I've noticed in that Of the agency request was of fifty million less than the executive request for a twenty one twenty two and a hundred million less than twenty two twenty three. Of the discrepancy is that the adequacy that was built in or. This is what Education Committee added that the executive branch added to it that that's correct we we have to have these age requests in of far ahead of the schedule of when that occurs committee completes its work so from the time that they finish their work until the time that we're here today the the additional funds get put in as part of the executive request my mother follow up question is. Yes is is that did you both the Education Committee of the department feel like the the requested shall may before the education adequacy came is that this will give adequate education and this is what legislative process added to it I'd say that's a fair assessment yes okay thank you. All right of. Representative Richardson. You're recognized thank you madam chair of could you guys tell me what is the special needs isolated funding. That is located in the public school fund go ahead Greg how. We we laughed because that's one of those old programs that it is very difficult to explain but great Mister Rogers can explain it as well as anybody. Before you before you explain what exactly that is also try to explain to me why that's almost three times with the budget is six oh mine there's two programs there's isolated funding is special needs isolated funding is we have Create we have a country to what set out for those us ladies schools what they can use of four who qualifies as an isolated school once we've made that calculation we pay out that money to for isolated schools any left appropriation and funds for that program bylaws transfer to special needs isolated funding so that's why you'll see that increase above the preparation because we don't know what it is until we do the calculation for the isolated funding the only go to special needs isolated funding there's three different categories the school issue can fall in and on the sides of on their ratio their duty population different things that they can the fall into and we pay out the special needs isolated to those districts that way there's a lot of different levels that you can pull to qualify for the special needs isolated funding in law but that's what it shows the seven million dollars rather than the the appropriate amount because it does transfer funds so isolated funding. Okay I think it's clear is mode. Thank you for your ten. Have you finished with the Senate. All right Representative Cavenaugh you're recognized for a question. I'm chair. I want to go to this special education catastrophic funding. think it's on page two thirty seven but I just wanted so basically this is kinda holding steady you're adding a little bit I think four hundred eighty and then nine hundred seventy eight it's not as much as I thought it would be is that because of the way that we spoke earlier about the Medicaid administration three calculation of that. The Aussie that that that's going to help lower this catastrophic the they have to get because you're recalculating the why Medicaid may read that they get reimbursed. Absent I don't know that it be a there's a dollar for dollar comparison that to say that it doesn't have any impact I wouldn't say that because it could but really you know when we think about the the Medicaid costs being backed out of this special the high cost catastrophic funding there could be some some interplay there but we have to do some digging to see how much to what level that really what was happening okay thank you. All right Senator hammer you're recognized for a question. Thank you Mr chair with regards to the increase in the funding for the free and reduced lunch the truth on the logo is that because we have a higher number going in for is it because of the increased of the of the food or a combination of both. Are you talking about the federal appropriation yes Sir. So we are it we haven't seen a steady increase a statewide in the number of students eligible but we also right now we have a situation where the federal government has as waive certain provisions and now there you you everyone can get treated as a free free lunch student so they have to it is very likely wouldn't surprise me if we even had to come back and make adjustments that appropriation later in the fiscal year and that's par wears lead is a budget based on this temporary allowance for what what do you are you taking in establishing your budget given or in unusual times well I think we've. We're not really trying to add that in because it was unpredictable and we didn't know at the time we have to submit our agency requests whether the USDA was going to conduct grant the continuation of of that waiver that's why I say I think there's very likely chance what come back. Okay and then a question special needs isolated funding. A if I read the description right this is for school districts that have special needs and it involves transportation costs and I noticed that it's gone down above the actual spending two thousand nineteen and twenty it's projected can is adjust a decreasing need or why it why is the amount budgeted going down when the actual is higher. Yeah that that the that reader that clears my thing I tried to so the them special needs isolated funding we're so the actual eight point six million dollars and in the authorized procreation three million as a sent earlier that isolated funding what is not used for the isolated funding that A programmers pression in funding transfers down to that program once we've done the calculation and that's not being used. So when we started this program Senator there were I think somewhere around fifty six isolated the the schools that were identified as isolated over the years through consolidations and other other things that number is decreased but in in statute a gentle simply did not want that money to get absorbed back into the first public school fund so they made the provision of that that money would be redistributed in those districts a qualified for the special needs isolated so that's why you see. The the difference in in the money is the. the transfer that happens to the course of the fiscal year okay and then the last one was in this came from one of my superintendents but the federal funds only allows for fifteen percent for the special education and and I guess we make up the rest of the of the state budget or how does that work as far as the funding that comes down to take care of the the special education needs in the school in and fill in the gap because one thing I have heard from several schools is about the the cost it takes year to provide to those needs but the amount of reimbursement doesn't seem to measure to the actual cost to take care of those needs. Are your fund to special ed yes generally yes Sir yeah well that's been an ongoing problem Senator Elliot and I've had conversations in the past about the failure it congressional level to fund IDA there's been. They're it it's it's a on going problem your superintendent is is correct I don't know fifteen percent is is because it's going to I think it's probably going to very depending on on from school district to school district but it's a very under funded from the federal level and yes districts have to make up because the districts are still responsible for a meeting the needs of those students as identified in their IP and yes state funds are used to open over. Offset that the state or any other categories within your budget that are of any higher priority than taking care the special needs that there's some adjustments need to be made and some of those other areas to help the schools get greater funding take care of that population. I think we're always looking at the. The categories of our budget to see what are the priorities are so that's something that will we always look at our thank you thank you Mr censure thank you a representatives Springer you're recognized for a question. Thank you madam chair of secretary key I am looking at the appropriation on page two fifty three for the fifteen million dollars that's related to financial assistance to fund staffing needs aimed at improve equity in student achievement. Would you kindly give me an example of what. Thirty il so what that fund is for. I knew it would go to a local school district but specifically give me an example of who would qualify for that absent Springer the formula for distribution of this funding was presented by the eight EA at a previous Education Committee meeting I cannot give you a specific example because it is new and we're still working with the Education Committee and Hey EA on all of the mechanism for how this money be distributed so I really don't have an answer for you to your specific question can you share the in when those meetings are going to take place in those discussions will take place so that I can have some type of idea of windows our citizens will be made yes I suspect that that's going to be a an important to the conversation in the education committee and the joint budget committee meetings in the session all right thank you. Senator Elliott you're recognized for a question. thank you madam chair I am they wanted to know a couple things here when I don't know where we are now actually secretary who I should be asking about pre K. funding is that you now or is it. It is okay okay and so it's it it we are the do you happen to know where we are regarding needs for pre K. A. or as I with be back there for a moment so I might have missed some discussion we are not I don't think I saw in the increase in pre K. funding that I know there's no increase in for so does that suggest that we are where we need to be we don't have outstanding needs or is that just to a decision made not to a height of any increase appropriation well senator I think you probably best answer is do the covert situation it's very difficult for us to know at this point we have tried to keep the pre case open. Of the that's that's been established the funding is there so please stay open but also we know that some providers have been and I am able to do that and then some parents have simply chosen not to engage not to send their their children when you look at just the impact of kindergarten for for instance on our we're significantly lower with number of kindergartners they've come this year to school and we're seeing that trend at the three four year old level as well A so act it just to say that the funding is is it is continuing to flow the positions are still being funded but as far as the any demander any additional growth that is needed be very difficult to us okay that money back for it let me back the pandemic out of it if we were at that level pre pandemic. Would we have needs free gay we are more demand typically at the end of the fiscal year there has been money that. Was not distributed We worked with DHS and ms Williams. And try to increase that to think was it a year ago or two years ago that we increased the. The rate two years ago two years ago that we increase the rate on a per student basis so to to say that we pre pandemic we knew that we need more of hi I really can't because the growth in the the provider numbers just has not been there you know that there's some communities where it's very becoming increasingly difficult to find providers to have proper facilities so the need is not necessarily on the per pupil amount the need is more of an infrastructure issue again I guess my and my last question on the pre K. issue of that's the other thing I've been concerned about the ability to have how providers you know in areas where we really need them because I have heard from a lot of folks who try to establish a pre K. programs the difficulties that they have and that's not to say that I don't know if they're that to say they're not narrative because what one person sees of the difficulty is something that's needed on the other hand but I was wondering if there's any been any survey of of folks who are either providing free K. or indicated interest to see are there things we could do that might inform us about any changes we can make a we could seek that that's something if we haven't died I just I've talked to you about that later but I but I see that that's something that's needed and my to my last question has to do with the recommendation that is come to us in the adequacy study and you and I've had this conversation many times and I've I've had it with myself maybe if nobody else in the adequacy committee many times about how for years and years we have assumed and acted as if we could. Create an education system without looking at all the other factors outside of the. So one of the recommendations from the from the study is that we create a legislative study group for task force or whatever to get our heads around order the other factors that are affecting education as we continue to the same thing over and over and kind of get the same results many times. Some question for the education committed because I think this is so important. If. We have legislation that would require us to do. Do you think there's funding in the within the education budget for something like that the site I I suggest the very first thing will be. That Hi how you can find it of course we can always locate the alarms well forget thoughts about that. Of. Obviously senator you know we we are willing to work with you all as we have. For years now as a department it to to ask if we have any funding set aside or anything like that for a a task force we do not so that I don't mean set so I know that would that would make sense at this point but will but obviously that's something that we would work with the General Assembly on if. Depending on how they had committee moves forward with that recommendation it is something that you still find out important. An informative for us to do. To to to have that kind of study so we will know what the factors outside of what we just doing the education committee that had been a huge effect. Think of the ongoing evaluation of adequacy is critical the court made clear think because this this body has made it clear time after time I think the debate is at how deep do we go and at what level so obviously there are things that we know that are different now than they were. Fifteen years ago of those have to be drawn out and an address from a public policy budgetary standpoint. I thank you of the secretary all right the senator Chesterfield you're recognized for a question yes thank you madam chair and following up on senator Elliott. Kelly's question about pre K. one of the things that always stays the transportation is the great equalizer. There is no provision in early childhood funding. To help those who would create childhood centers early childhood centers. For transportation. And many of the parents who would benefit from this program don't have it. Would you be interested in working to provide something in there that would allow the flexibility to use some of that funding to provide for transportation so that parents can access the early childhood centers. Senator I think that's definitely something we could look at I do I would also point to a in a response to some of those situations home visiting has be become a growing need as well and many of agencies are opting into that and I believe there is flexibility for for that already built in but those are all things that we can continue to look at alright thank you thank you madam chair hi thank you there are no other questions of secretary key we're gonna let you in you everyone at this table of maybe step aside this section is finished and then we're going to go on with another section but I need a motion for executive Rick. Motion on a second all those in favor say aye all those opposed motion passes in the. We are ready for Mrs won't. Thank you madam chair the next division that will be reviewing is the division of public school academic facilities and transportation. It begins on page two sixty one of manual five. The division of public school academic facilities and transportation is responsible for administering programs of state financial participation in support of A local academic facilities assisting all school districts with general academic facilities support providing oversight of their construction repair and maintenance of both academic and non academic facilities on public school campuses in the state and they administering conducts school bus safety inspections and driver training programs the department appropriation summary is on page two sixty two you can see they have it looks like they have five but that's all kind of combined into two appropriations that I will be going over with you. They total two hundred and eighteen million dollars each year of the biennium. They also have thirty one authorized positions and five extra help positions. The first appropriation for your review is the public school academic facilities appropriation this is on page two sixty four. This provides for the operations of the facilities partnership partnership program including their staff. As well as the development and implementation of the program and oversight of the districts the request is for two point six million dollars for each year this includes no change of a request and the executive recommendation does provide for this request. On page two sixty six you'll see the programs of the public school academic facilities and transportation this is the state financial participation of awarded projects for districts around the state. You'll notice that they are requesting base level appropriation of two hundred and fifteen point three million dollars for each year the biennium. In the executive recommendation does provide for this request. But you will also notice. If you look at page two sixty six. Under funding sources. The second line on that table says education facilities partnership fund you may recall yesterday in the governor's presentation of his balanced budget he recommended a one time transfer of twenty eight point five million dollars for facilities so if you look over under twenty two and twenty three you'll see that funding for the partnership program goes from forty one point eight million to seventy point three million dollars for each year and the fiscal year twenty two that's going to be a one time transfer but I think the the intention is to build that into on going funding each year so that's the executive recommendation. And this is just an effort to kind of level out funding for each year in years past and they've had a required funding that's much higher in the first year of projects a much lower in the second year so this is an attempt to provide a consistent funding amount each year for this program and as I stated the executive recommendation provides for that and those are my remarks alright thank you so much of Mr ten cane if he would come to the table. And we have some questions. Introduce yourselves for the record please. TM came director of facilities and transportation in. Part of it. garage apartments case. All right of. Represented spring for you recognize for question. Thank you thank you madam chair my question is are you aware of any requests for assistance for the up coming fiscal years from any school districts within the state of Arkansas and I guess. A specifically in Pulaski County. Representative Springer I am I don't have the specifics specifics in front of me but I do know they were they have applied for some partnership programs for the twenty one twenty three cycle. Is a part of this appropriation in consideration of their. Yes ma'am it is yes ma'am it's it's for Pulaski County well it's for the and it's for the entire stay with a lot of specifically speaking of Pulaski County. Is part of the appropriation requests taken in consideration Pulaski County Arkansas is the question represents for your the the projects that have been submitted there are projects and I believe little rock school district in Jacksonville North Pulaski has has projects that they have submitted so this appropriation I thank you the it's not specific to any such county or any district it is a dozen compass all of the the projects that have been submitted for that cycle okay so so I I just wanna be clear. Madam chair I just want clarification so there are some pending from little rock school district and Jacksonville office school district but not necessarily the appropriation is being considered for bills is that is that what you're saying the P. I'm saying the appropriation is not project specific the appropriation is program is for the program okay alright thank. Right to Senator hammer you're recognized for a question thank you manager would you refresh my memory about how it is that you make decisions as to which districts get access to this fund to the funds. The Senator hammer of the process works like this applications are submitted by district started vision the review we give tentative approval. For those projects and then it is sent to the commission every year before my first in day give final approval and funding. What what are the criteria so as far as determining. Which ones get recommended over the others. Right there is a prioritization process in the rules that we have senator and it's based on what the rules say so we don't there's no discretion that we use in the privatization it's also in real so for example a space projects have first priority space for placement have second property and then system replacement project at third party. If you don't mind the notion to me please or you just get with me when we get done but is there any consideration for of the community's economic situation or disparity. Or wealth index. Yes senator we each district has a wealth index and use the legislator change that formula so moving forward in twenty one twenty three that will be different and also take into account the local income averaging come of that community but for now to have the remainder of the nineteen twenty one cycle we're sticking use the previous definition yes Sir at the heart of the wealth index the more the district absorb the cost right kinda like redistributing the wealth. Well. A I don't know that I would agree with that necessarily by it but I guess you could say that all right thank you Mr all right thank you. All right Senator Elliot you're recognized for a question. Thank you madam chair how other than I guess applications that are made from school district do we have any other way of verifying what the needs are more in in a school district. Facilities. Date the day they are to be repeat that does that make sense what I'm asking you okay okay. Can Senator Elliot we as we review the applications. We do We don't have the resources to visit every location but we do make visits for visual inspection we also have our maintenance department that makes inspections so currently though it's based on at the applications come in now moving forward or hopeful to look at the parties from the statewide needs perspective that's what we're gonna do moving forward but right now we're still we evaluate projects as they come in. What what one of the concerns I have is that there are folks out there for good or ill. Who are seemingly confused about how the funding is is is allocated and prioritized that just. Well so we we have these bombing needs this is a problem this is a problem and restaurants are not working don't we don't up doors or whatever the case may be and they don't move forward because they will say we don't have the matching funds you know at the local level and then nothing ever happens for those kids in those districts that's why I was wondering is is anybody else putting an eyeball on especially in districts where we you know we have very under funded are under represented groups I'm really concerned about about that. and so if we're doing that I if we're not doing that I think we it's a really good thing and the other question I have is. Could you give me any specificity about how we came to the twenty eight million of the increase. Yes senator. Yes center ninety million dollars was up annually was the recommendation in the twenty from the twenty eighteen adequacy report we looked at the current revenue streams that are coming in for facilities of the generation who distribution from RSA as well as of the other bonded assistance programs that as they expire is the as a as is of money frees up from those programs it goes directly for facilities of the gap was twenty eight point five million dollars so the total amount was sixty eight point five sixty one forty five we ask for twenty eight point five to fill that gap to meet that Hexi recommendation seven just made the twenty eighteen recommendation hole is that yes because in twenty eighteen when we looked at the projects in and the funding available we did not need to make that request it now moving forward it's time to to make that the ninety million okay thanks thanks much. Represented Springer you're recognized for a question thank you madam chair of thank you senator hammer and senator Elliott for your questions I would I just have another follow up if a school district of applied for funding and they were denied in the previous school year is there anything that says that they cannot re reapply in subsequent screws fiscal years. No ma'am they can reapply for the next cycle they can't so again alright thank you ma'am. All right represented I'm sorry have you finished yet okay Representative wooden you're recognized for a question. Exactly hello Ashley is the. The property tax. We talk about redistribution of wealth. Do you all of you do you view the of property tax involvement by the schools as a. Difficult to deal with. A I think we would agree with the districts that are in those areas that it is a difficulty The ability for local districts to raise local funds is a challenge I think that is one of the reasons that Senator Blake Johnson and a number of others of you wanted us to look and revise the wealth index y'all accomplish that in the last session I think you're going to see that the benefit to some of these districts were the local wealth property wealth is very low it is an ongoing issue that requires us to keep an eye on. It is none of that is not of great detriment to the to the students in those low wealth. Districts relative to maybe the top of education that they receive or the facilities buildings everything is is just it creates a the like you said a difficult situation would be do you think we can ever achieve adequacy as long as we have the property tax involved in the determination of funding. Well you're asking for my opinion home yet in the and I don't know that I would. Want to give an opinion based on of the past because the challenge of adequacy is always looking what we have and what we need to fix it I think of the property tax system that we have with of the twenty five milliards de the the system we have that districts raise their own local millage to meet different needs I'm not sure how in the state of Arkansas we we move away from that but the part of adequacy that I think we have to be aware of is that when districts cannot do it on their own there's still a state responsibility to step in so I think the changes that we made the last couple of years are steps in the right direction of A and you know those are things that will continue to to monitor and bring to your attention of to the attention of the governor it when we see that what we've done is a quite getting there. Mister Kane mentions something represented that I think is is very important to. In the next cycle twenty three twenty five based on your legislation you all passed a the the division is going to be creating a statewide needs list all right and at that point that is going to be able to look at those needs that senator Elliott mention districts that have typically struggle and looking at prioritizing those on a statewide level A so what I think there are still things in the work that have not been fully implemented yet but they are on the way that will help those districts that you're concerned about I think about Lee County when when we had to take state action there are they had a facility that was out of service. And we put a lot of effort into Getting that back to where it was a usable building but one of the things that was so important that this fixing the restrooms. I was there when they had open house and the kids were coming out of those restrooms. And they were so proud of what had been done there because the the the decay and everything else that it happened it just it was horrible but those kids recognize in those teachers recognized that they have facility now that they could be proud of and and comfortable learning and teaching in so yes Sir it is highly important we have to keep our eye on that ball. Thank you makes a very point right there the the after as it relates to the involvement of property tax because the state has to step in then you have a district like little rock the last week voted millage extension and then you have a situation like B. B. where we just approved an extension the permit us to remodel and look at every building on our campus but Hey we are people were willing to do that the people of little rock we're not willing to do that and then impacts the children. And we have one of the oldest populations in the country house Florida and people do not like to put a property tax so my my solution would be to get the schools of the property tax business be calls it's clearly stated is the state's responsibility to provide equitable an adequate education for the students of this state. And as long as we continue the property tax involvement is not gonna happen unless we change it to where all the property tax money for education flows into. The fund at the state level you're still gonna have the inadequacies that exist the two lawsuits. The first finance committee that dealt with that first losses and we had it all worked out of fault but it but it was. A better word it was tampered with. And change was made and it put us right back where we were less the US leading to the second loss. By a lake view so we're gonna continue to have that problem would you agree. Well I can't speak to the history of all that I can say that I agree that it's an ongoing issue that we need to be always mindful and look to see how we can get better we need we it is as a body here we need to look at it is that not true that yes Sir I believe that court was clear thank you Mr chair I appreciate your forbearance Mr secretary proves your direct answer thank you. All right to hunt senator Ingram you're recognized for a question. Up to taking the fund balances that we have for like for instance educational facilities partnership. We always carry a big fund balance in that but is that used to cash flow the the the projects that are ongoing is that why we always have such a big fund balance yes Sir that that fund balances of their and reserve to meet the needs of those projects that have already been approved and fund. And then the the. Remind me on of the Fund balances for elementary and secondary education our our public school fund balances does all that money flow in in October and then we spend it down for the rest of the year. No that I believe this distributed throughout the year. The because it's. It's state that the local funds. Local taxes rye those do come in typically in October but the the public school fund is State funding that is distributed throughout the fiscal year well the reason I ask because I I the current fund balances we I had about a two hundred million dollar carry carryover we're carrying of over six hundred million dollar fund balance which in my limited memory is about twice of any fund balance that the house that I can ever remember it. And so I was just wondering what might be the reason for you of that Second education public school fund account balance. Being so liquid. A are you referring to public school fund the adequacy fund which all all the above well the J. aid fund balance public school fund it okay so the public school fund part of that balance this year is the fact that at the end of the last fiscal year the release of the digital forecast money that was cut and so part of public school fund U. SEC carry forward so this you're going in we carry a bigger fund balance and we normally would because we had to make adjustments to the budget gets more out adequacy to hold foundation funding where was currently funded at and then it in the year we got those funds back on so that balance is bigger this year which is why you see a less requested general revenue for twenty two going and then what we would have needed because we're trying to offset that bigger balance now with the needs that we're going to have been twenty two. Okay let's just say that the money was restored and so the money was stored in this fiscal year you wouldn't restored in last fiscal year Clark is clear that up to about twenty four so am I wrong so it was better. Two hundred million dollar carryover and so on top of that you received the the the the the additional funding but it's not six hundred million have we ever been anywhere near that. Finally sent me where the six hundred and ten million at this point. Senator will. Where you find in the six hundred million out of I'm not looking in your budget I don't looking at asus fund balances as of our. Okay so aces fund balance me that we're still in the middle of years so there's there's money that's gonna be coming out of that distributed to schools well acts I know but you answered. My first question that I ask you a. Senator was up or we at the high water mark at the end of October when when money comes in and you said no that that money comes in all through the year that was my very first question the the public school fund has funds to come through to the course of the year we distribute that now instead of. Eleven months we now have the twelve month distribution so I think what you're seeing there is just the nature of the cash flow and a moment in time. We will be monitoring these moments in time thank you yes sector. All right Representative rye you're recognized for a question. Yes ma'am thank you Mr chairman of. John. A few minutes ago we were speaking about this grant. There are. Mr Senator hammer was speaking about and we're talking about folks that actually receive and maybe some of your some don't receive from that is the available do you have all the people across the state all the schools asking for their or is it just a certain percentage. Districts request or put projects submit projects based on their master plan also they file master plan the update that master plan so no Sir not every district applies for partnership funding every year okay that John what I'll relax no here is we're talking about the well factor that's involved in this thing. Now one school. May generate on twenty five mills. Seven thousand R. for shall. One school may only produce a thousand dollars per child but your term back for your schools for your your children for each protector Chow is based on that form. Is the one that Mister hammer was speaking about while ago of for the grants it's sale of is it the ones that actually produce more per child our last for child according to the well what kind of factors the use to find out which one actually Nate amend either is it done by nays because it supported strict ours it just done according to the the great point or something or what do you come up with that so it it's a it's a different calculation altogether for is composed as opposed to student funding so it calculates the wealth index and wealth index looks at the local property wealth as well as now an element of the income. For the within that district okay. Okay personal income personal income within that district okay a follow up please Mister John one more of. You know we've checked this round about the property tax and you know twenty years ago we tried to do it you know you know it is one prostate to you know try to get rid of. And it was basically looking at one point eight or one point nine of sense sales tax to to take care of that but that's probably too low. Or is there another direction that we could go other than the sales tax if like for what Mr Werner Representative would speak about is there another Avenue which you go like to a portion of income taxes could go that direction instead of by senator strictly on sales tax. Of Representative I'd say that that's a policy decision that would be up to the General Assembly mean there are very with we know from current state revenues the big hitters our income tax and sales tax those are the biggest contributors and any policy that would offset property tax with any other tax would have to take all that into account. Senator hammer you're recognized for a question thank. The you were reference a minute ago that there's gonna be ongoing discussions about the partnership funding and how you're going to take an assessment list round the state and we've had the discussion about the wealth index number one when you kind of get your ideas formulated are you can bring that before the Education Committee or what's gonna be your channel where you're going to come before us before making final determination on that second require legislative action just house icon how's that going to play out. The rules process okay. And. I'm just curious because a sounds like a collision course between possibly the needs assessment that'll come back as you do your statewide analysis. And the wealth index do you have any idea at this point you can talk about about how you're going to balance those two. Senator hammer a. The statewide needs list will look at the actual physical needs at that facilities. And that will play a role in the prioritization of each project. Wealth index will also play a component part of that. Okay well that does have some discussions of one thank you manager thank you. A there no other questions on this section. Of so I would like to have a motion for executive brick motion second all those in favor say aye. Alright motion passes and secretary key and Mister Rogers. A if you want to sit there please do we have going to have this next session and then we hope to break before we take a higher it. All right to. This wall that you're recognized. Thank you madam chair the last of vision will review this morning is the eighty division of career and technical education it begins on page two sixty seven a manual five. This division is responsible for administering public secondary and post secondary vocational technical and adult education programs for the state and also serves as the Arkansas state approving agency for veterans training programs the department appropriation summaries on page two sixty eight of your manual. You can see there funded with federal revenue public school funds educational excellence fund transfers interagency fund transfers fund balances general special revenues and cash funds they have eleven total appropriations that total fifty three point one million dollars for each year the biennium they have forty six positions seven in the appropriations include requested change levels and I'll review those with you now. The first section with the change level it is on page two seventy three. Of the manual this is the vocational started grants. This appropriation is funded by the divisions public school fund and provides for grants awarded to schools for the purchase of capital equipment nonconsumable supplies in program software for starting at the occasional training programs. A request for point seven million dollars for each year the biennium. This includes an increase of one point nine million dollars each year for program expansion. They also request an additional two point three seven million in new funding also for program expansion and they want that to be reallocated from the next appropriation which is the vocational centre eighteen. The executive recommendation provides for the request an appropriation only and they do not provide for the reallocation of funding from a separate appropriation. On page two seventy five you'll see the vocational centre aid. Appropriation. This provides funding to vocational centers based on the number of full time students participating in eligible programs and this is also funded and using public school funding. They request twenty million dollars an appropriation. And also and twenty four million in funding and this total includes a change level reduction of two point three million dollars to allocate to the start of grants that's what I mentioned before but they're also requesting to increase the public school fund allocation. To the division of three point five million dollars this money is currently going to the division of work for services. The executive recommendation provides for the request but they do not an appropriation they do not provide for the reallocation of funding. The third appropriation is on page two seventy seven. Is the vote tech admin operations appropriations this provides for the administration of the division. The total appropriation is three point two million dollars for each year and it includes the following changes. First a transfer of two positions to shared services along with corresponding salaries in matching three thousand operating expenses and three oh five in conference and travel all that is going to shared services to pay for administration. Additionally there is a transfer of one position to the federal the occasional and technical education appropriation and one trance one position transferred in from the career coaches program. And the the position is transferred in from career coach is this just just to bring all those positions under the operations appropriation the executive recommendation does provide for the agency request and they also provide for reclassification of two positions. Thanks is the federal. Equipment and training appropriation. Actually I'm sorry the federal vocation education operations on page two seventy nine. This appropriation is for the federal the tech operations this is the federal piece of the operations appropriation and it totals fifteen point eight million dollars for each year this total includes for the transfer of one position that I mentioned just a moment ago from the state appropriation and the executive recommendation does provide for the agency request. Now on page two eighty one we have the federal equipment and training appropriation. This is used or it has been used for the sale of equipment M. in our equipment that was purchased using federal funds the division is requesting to discontinue this appropriation as they are no longer selling federal equipment. And executive recommendation does provide for the discontinuation of this appropriation. On page two eighty five you'll see a alternative retirement plan appropriation this is a cash funded escrow type appropriation it provided monies for employees to opt into alternate retirement plans that were made available through the old department of career education now that there under the department of education their encouraging all employees to participate in the state plan and that will be the course of action for any new employees that come to work for the division so the age the division division state that this is no longer necessary and the executive recommendation provides for the discontinuation. On page two eighty seven we have the career coaches public school fund appropriation. This is also funded using public school funding it provides grants to post secondary institutions education service co ops and non profits to provide career coaches for middle and high school students the agency requests almost five point two million each year this request includes the transfer of one position to the operations appropriation that I mentioned previously and the associated costs of approximately fifty six thousand dollars each year in salaries and match. Additionally the requesting an increase of one point four million dollars each year for growth of the program. An executive recommendation provides for the request an appropriation only. Thank you madam chairman. Alright thank you. Senator hammer you're recognized for a question thank you Mr chair of sick to hear you gonna take questions on this server. Yes Mister Rogers matter here and I think doctor Kramer's. Might be now okay so the US. The the first question is gonna be on our page two eighty seven which is the career coaches public school fund. Good job talk about that just a second it's got it's got one position but it's got a pretty hefty appropriation level and I'm a just try to get my mind around those numbers with only one position assigned to it. So yes we're we're asking that that position be transferred into operations. Because what we want to do to Really looking at the career coach program having that more aligned with the other components that are going on with three transformation with the division of curry ad with the department of ed having that position pull back in operations is where we believe that needs to be also looking at trying to expand the career coaches program in a way the reason being that when we looked at data students that participate in the career coaching program we saw significant increases in their ACT scores and other measures of academic success as well as preparation for career opportunities and so that serve that reflects in this request. And what is the and and I saw an increase if I'm interpreting it right increase appropriation but no actual dollars put with those appropriations in my correct in that my mission it. I thank you your correct I think is a preparation on okay so what will be the overall growth when you combine all these respective areas together what is what is the overall total additional investment. In career technical education. Not to procreation but the real dollars. Well in career technical education is and in the aggregate. I don't because we're we're still in a situation where we've got public school fund dollars going transferring out to workforce services I'm not sure that I can give you a complete assessment of that The with occasional eight and and the other components but I do know that we're working with continue to work with off the budget and with the other agency to make sure that the needs are met. Because here's here's my concern Career technical lead I think is something we've all been emphasizing for a long time I think it is here to stay at thank you know concepts are reshaping I'm not sure that the money based on the number of those that are participating is keeping up with the growth of so that the centers can operate efficiently and effectively four areas that have been identified as as growth areas in the work force. And and I can't see where the numbers are keeping up with that in mind in my missing it or. Or am I right. Well I can speak to what's in the governor's request enters a half million dollar increase to the line item in his balance budget for Kerr technical education I can also say just from my recollection and conversations with Dr Childress two years ago of one of the the elements of getting data to build a request additional funds from General Assembly had to do with the looking at what happens with the tiered funding and the new approach to how we we target of those how the man how wage programs of them that date is still coming in current this current school year is obviously a challenge because of the modifications that had been made and and different scheduling issues to the code so that's something we continue to work with Dr Childress Cody whites and the others on getting that information for you. Do you see do you see a connection between those that are choosing to go crear tech ed and maybe two year degree programs of our or higher programs you have any data that shows that once they get into that level they actually go on in and get a degree. Part of the benefit of transformation is the alignment of the data systems and and I'll say that that's something we're working of. Through the week we had a similar Perkins plan so their metrics that are attached to the federal Perkins plan and. Yeah improving our data system so that we can collect that data and understand what the the path Ford for those students are that's something that we we don't have it all complete yet but we're working this year to have a better system of collecting tracking and reporting on that date our thank you Mr. All right to senator Elliott you're recognized for a question. I just wanna get some clarification about I guess this page up to eighty five about the alternative retirement I have not heard from anybody about this but before I do is this something that everybody's on board with is not controversial is not in any way a negative impact on anybody. So no and most the employees that were using under alternative have already retired or moved on we only have a few that we're paying for their routine your time out of operation so we're just a line in it up and there's not any there's not any complaints because everybody who is still in one of those programs is still continue to do that until they either late the the department over time whatever they do so just moving forward for all CT employees were line it but those I think there's ten people still at the department and we're still paying those whatever everything for them to stand aside and is that is that their preferences well rather than being over yes ma'am okay alright thank probably is a function of how long when they started in programs were available when they started and the cost benefit or yes not moving that makes sense yeah alright thank you. All right to a senator bond you record recognized for a question. So on career coaches and I see doctor Markham out here also he'll be back. I guess this afternoon we know our college going rate has been declining and we've discussed and in different meetings hired subcommittee held that rate is declining to an abysmal level we have some data saying career coaches is it helps one not fund at the request of the agency at one point four million instead of just leaving it open ended we know we have to. Do better and it seems like we have data that says this program works so why are we not funding it fully. We have an ongoing discussions with the off the budget and the other agencies that are involved in this to try to make sure that we do by the end of the session we have a path forward on that. I assume since agency requests that you're in agreement with that I don't want my tone to sound name my understanding is this program we've required more input from the local districts to get the funding so we've the program is not been growing in my wrong about that the we've we've been losing career coaches well it's it's been funded from fund balances that's how we've been approaching it before and We say when when there is uncertainty about the future of one's position one looks for a position that has more future and certain so what we hope to do is is still on that that we do agree this is probably one of the better programs that as far as moving students and creating better options for their future and that's why we uh are are seeking to advance or I'm glad eight so glad to hear you say that I was make one other point and then these target students who may not have the support system ride that a lot of the career coaches are looking for kids these may not have parents or grandparents or whoever to maybe help them get on these different pass and so it's real helpful to a first time college goers and and different folks like that it's it's helpful it's helpful for the the high school counselors because there's someone to share the load of of providing the showing the pathways for the students connecting them to work study or or a point based learning those types of operations thank you thank you. All right to Representative Richardson. Thank you madam chair of my question is on two eighty seven could you guys what we do what exactly career coaches expenses are. What's all fallen into the. Those would be the grants that go out to the higher ed institutions that actually employee those career coaches. So there I believe is that Dr Martin is that you may not. Okay. So the so so it's it's at the expense of the program but but we don't actually hire the coaches the department with those those coaches are actually hired let's say a two year institution would hire those coaches and provide those with a partnership with the local school district A so so this with represent part of and then the they're they're also there other programs to their programs like ACT prep so there other expenses that go along with this program so when you look at the grants and eighty look to Kerr coaches expenses. Combined those really fund the the bulk of of this program. Okay okay thank you madam chair we can get your break down representatives were when we were happy to give you more information that will show of what those expenses are and the numbers of students impacted and that sort of that be great thank you Sir appreciate. All right the Representative would. Mr secretary continuing on that career coaching the increase is about four million which is been pointed out what what do you anticipate that increasing I may not agree with it but what's going to happen to make to make you think that you can expend that much money. What we're hoping to do is is. Close to double the number of career coaches that would be out there is a mention to the what we've What we funded that the past has been the fund balance and so we've really been limited as to any growth at all and then as this is been stated earlier has districts or schools lose career coach is it may be hard to to find anybody to take their place so what we anticipate with this is that it just provide stability and the opportunity for growing this there are yeah and I apologize I don't have the map we can provide that for you we have a map that shows the districts or not county session say where Kerr coach program exists in there are number of counties in the state where does not exist we are hoping to grow that so that all counties are covered. So you're hoping to increase the calories are the areas where there in yes Sir. What is what is the difference between the northwest technical institute. And and then the Vocational. Technical educate current technical education and the north west one of those two separated at one in education and other one and hiring. Of the northwest technical institute in their here and I think you'll be looking at their appropriation this afternoon but that is a standalone independent institution has its own board has its own director Dr Rollins now who is a long time to pretend Springdale is now they're they're press sorry not director president. but it's it's I guess kind of the last of of. The network of of institutions that have not been absorbed into a two year college so the other words this this they're part of what would have been the oval tech pro I think that's. Services was food heels and elects to guard had one so several their role with the study. That this isn't one this is one it's reminding from that when it was to. Two departments Votic and education yes Sir what okay thank you thank you madam chair. Right of I have a question that to have hope you spend a few minutes on secretary key because I think this is near and dear to the hearts of many on this here today but the vocational started grants a so that was a bump in in their funding but would you to speak to that and also vocational training of throughout the state input to. Those of us who have look for welders and all of that with that being able to find any A we just would love to know what's ahead. Senator what I think is ahead is of a definitely a big growth in the quality of programs and the availability of programs of we all been working very hard if you remember just a few years ago when you saw the map of areas that were served by a secondary center there were many holes and then my many gaps and we worked very hard to Orders ship with higher education career education will officer skills development and the department to fill in those holes of start up funds or critical and the one time expenses that it takes to buy the equipment to to get those programs going of those expenses are with us and to it will be as all as more of these. programs and satellites of these programs come online so the governor has has always had as a priority of the increasing our workforce education and I think this reflects his continued property in that vein. All right well thank you. Hi to Mister means Representative Wooten with only to have the last question alliance It's my understanding and following up what senator Bledsoe was emphasizing the tourism or around a hundred and fifty maybe two hundred major a construction jobs throughout of. Construction projects to help the study. That they can they can give the HVAC people they can get plumbers they can't get welders so. We I echo what she said the they are you hearing the same thing the. Yes Sir I'm here the same thing in here and that those those needs have to be met by bringing in outside out of state farm's or or technicians to build up to fill those gaps we need to have Arkansas fully prepared and ready for those types of jobs and roles in the future and I think that's what the governor would put to if you were sitting here that's that's been his priority for number years so so you know that's a critical to me that's critical part of the economic development the more the more you can the more you can build a more employees your goal have is it relates to the construction projects thank you thank you. And thank you secretary A ladies and gentleman I need a motion for executive brick. Have a motion second all those in favor say aye. All those opposed all right we are going to break for lunch now and then take up higher ed after lunch so we'll be back at one thirty thank you.